Volume 25 – No.3 – June 2011
In this issue 4 President’s message 4 Chamber’s activities Seminar on Revised Schedule VI and XBRL Investment & Business Oppor tunities in the Piemonte Region (Italy) Round Table Discussion on Fiscal policies for low carbon investments
4 175th AGM of the Chamber An organization that has been in existence and, by all indications, thrived for 175 years clearly knows a thing or two about sustainability...P2
4 MCCI-MMA Video discussion on Middle Manager as Innovator 4 General Committee 4 Expert Committees 4 SPOT LIGHT National Manufacturing Policy 4 Policy Watch 4 Trade Fairs & Exhibitions 4 Economic Review
growth over the past decade and energy, in all its forms, underpins both past and future growth. For the economy to continue on this growth trajectory, India needs to address its energy challenges across all sectors, immediately. India is one of the fastest growing countries in terms of energy consumption and is currently the fifth largest consumer of energy in the world, and will be the third largest by 2030.
Dear members, It is a pleasure to greet you, through this letter, after the grand 175th Annual General Meeting of the Chamber, held recently. I take this opportunity to thank all of you for your support in the past year and I am confident that I shall continue to be as fortunate this year, as well. You are all aware that the Chamber’s theme for the 175th year is “Sustainable Development”. We have been working around this theme and a number of initiatives and activities on the different components of Sustainable Development like energy, environment, skill and education, to name a few, are being pursued by the Chamber. Perhaps one of the important elements of Sustainable Development is the whole debate around climate change and reduction of the carbon footprint. Recently, the Chamber held a Round Table with the Climate Change Team of the British High Commission on the low carbon measures and initiatives. What is our role in this, as a responsible voice of industry? As people engaged in businesses and also as responsible citizens of the country, two issues stare at us now. On the one side, we have the grim reality of acute power shortages which have a direct impact on our business competitiveness as well as the quality of life. On the other side, there are the well articulated issues on climate change and sustainable development which are areas of concern for the entire world. As is well known, the Indian economy has been experiencing tremendous
At the same time, the country is heavily dependent on fossil sources of energy for most of its demand. Green house gases, a by-product of fossil fuels, are stated to be causing global warming which refers to the earth heating up at a faster pace than before. Experts warn that the consequences of this global warming are likely to be devastating. The obvious solution to both these problems seems to be developing and using green energy or clean energy. The goal of green energy is stated to be creating power with zero or minimum pollution. Today, India can well be identified as an energy guzzler. The demand for power is growing exponentially and the scope for growth of this sector is immense. India’s power supply-demand gap has averaged between 8 and 10 per cent over the last decade, where electricity access exists. By 2012, India’s energy requirements are projected to touch 975,222 MU (and peak demand 1,571,070 MU) an increase of 31.9% and 44.3% respectively from the current levels. India’s grid-connected power generation capacity will need to scale from 148GW currently, to 460GW by 2030 while the country’s primary energy demand is expected to grow from 400 million tons of oil equivalent to well over 1,200 million by 2030. It is feared that by 2030, the country will import 94% of its petroleum requirements. Clearly, renewable energy appears to be the answer, both from an economic and ecological perspective! However, this requires a concerted and aggressive push for alternative energy sources - solar, wind, bio fuels, small hydro and more. The Government’s renewable energy target by 2030 is said to be 200 gigawatts, estimated
to require US$200 billion in capital investment. That seems Himalayan when you consider that currently, only 3.5% of installed capacity is in the renewable sector, producing 3700 MW and is projected to reach 10,000 MW by 2012. On the positive side, the country has an estimated renewable energy potential of around 85,000 MW from commercially exploitable sources: Wind, 45,000 MW; small hydro, 15,000 MW and bio mass/ bio energy, 25,000 MW. In addition, India has the potential to generate 35MW per square km using solar photo voltaic and solar thermal energy. Wind energy has posted the highest growth and Tamilnadu is one of the leading States in wind energy production, with a share of more than 48% of the total wind energy produced in the country. The Jawaharlal Nehru National Solar Mission under India’s Action Plan on Climate Change, was launched to make the country a world leader in solar energy and aims to ramp up capacity of grid-connected solar power generation to 1000 MW within three years of launch, by 2013. India has tremendous potential to harness the much-needed energy from renewable sources and is considered one of the ideal investment destinations for renewable energy. However on the flip side, the prohibitive cost of setting up renewable energy plants like solar, the seasonality of sources like wind, non-availability of suitable technologies, economic viability and a host of other factors act as deterrents to the green energy movement. There is clearly a need for appropriate policies and political will, to go green in the energy sector while simultaneously encouraging energy efficient economic development. There are difficult choices that we must make, not perhaps for ourselves, but for the future generations who shall inherit our planet. With best Wishes
T T Srinivasaraghavan President
4th June 2011
Mr S Venkatesan, Chairman of the
Schedule Vl. He said the old Schedule
Seminar on Revised Schedule Vl and XBRL
Expert Committee on Company Law/
Vl has stood the test of time. Between
Corporate Matters, MCCI, giving the
2006 & 2011 there have been lot of
Chamber’s observations said MCA
changes and the Companies Act is
The Madras Chamber organized a
has been very happy since things have
under total revamp.
Seminar on Revised Schedule Vl and
been happening too fast . The MCA
within a year, the new company law
XBRL to inform the corporates about the
website needs to be Visited daily,
will be in place. Before that, the
recent changes made by the Ministry
else you are going to miss something
Government wants to align to new
of Corporate Affairs. Mr.D.K. Mittal,
he said. Everyday new circulars are
business environment and hence the
Secretary, MCA who was to inaugurate
uploaded on the website. The pace
need for new Schedule Vl.
the Seminar could not make it at the last
at which changes are taking place is
making the corporates breathless he
Mr T Shivaraman, Vice-president of the Chamber in his welcome said there have been lot of changes happening in the procedures and accounting standards for the corporates. IFRS had been in the air for quite some time now. We now have XBRL which stands to refer Extensible Business Reporting Language, which is a language for electronic communication of business and financial data. It is stated to help both suppliers and users of data. It
felt. Corporates have to take quick action to comply with these changes. MCA has been very pro-active and there are time bound implementations to be done. As regards Schedule Vl and XBRL he felt sufficient time has not been given for the corporates to understand the changes. Some clarifications are needed; however, even the interim accounts will have to be filed in the new format.
He hoped that
He said the accounting standards are becoming dominant in the preparation of the financial statements. Schedule Vl is part of the Act as well as the Rules. The balance sheet has to disclose more than what was required earlier. He said we are becoming global. Hence, we have to align with the world. New Schedule Vl is not very complex. There is no impact on basic records. 95% work gets undisturbed by new Schedule Vl. It will have impact on current ratio and debt equity ratio. There is need to exercise due care and
is mandated now for certain class of
On XBRL he said the Institute of
understand so that the presentation is
companies to prepare their financial
Chartered Accountants of India has
done without any hitch.
statements according to the Taxonomy
taken this as number one priority for the
developed for this purpose. This is set to
current year. XBRL is more complex and
become the standard way of reporting
a technical one. A circular was issued by
and sharing business information.
MCA on 31st March indicating that it is
On the other side the revised Schedule
applicable for everyone.
Earlier schedule Vl was only for Balance sheet but now it applies to Profit & Loss account as well. Summarising he said – it is better to remove the confusion between AS-4
Vl to the Companies Act, 1956 which
The Madras Chamber has already
deals with the Form of Balance sheet,
made a representation to MCA to
Profit & Loss Account and disclosures to
extend the time until the corporates
be made therein, is becoming applicable
were sufficiently educated. Though the
shortly. This introduces many new
Chamber’s voice is heard,
concepts and disclosure requirements
only slight postponement has been
and some of the classification
done. The Chamber will take it
Mr S A Murali Prasad, Director, SAM
requirements spelt out in the guidelines
up further with MCA the suggestions
Consultancy Services Ltd., made a
are apparently, more in line with IFRS.
emanating from this seminar to make
presentation on Analysis and Issues
Even the format of presenting the
the life of the corporates easier.
in XBRL. He explained XBRL to be
Balance Sheet and the P& L Accounts
Mr N. Ramanathan, Managing Director,
will be undergoing considerable
Ponni Sugars (Erode) Ltd., made a
presentation on Analysis & Issues in
and Schedule Vl. Clause 41 for listed companies needs to be amended. Clarification from MCA or ICAI to be requested on many issues such as what is “current” and “non-current”, etc.
Extensible Business Reporting Language. It is an open, royalty-fee, software specification, implemented by use of
tools based on XBRL. How does XBRL work? He said XBRL makes the data readable with the help
for doing the required pre-validation
On adding new elements in XBRL
and checks before the documents are
statement he said generally XBRL
finally accepted by MCA portal.
taxonomy is extensible but MCA taxonomy may not be extensible.
of two documents – Taxonomy and
We need to insist on MCA that
instance document. Taxonomy defines
whatever change is required in XBRL
The following points emerged from the
the elements and their relationships
implementation, we should be able to
based on the regulatory requirements;
see the output before filing the XBRL
By using the taxonomy, users map the
document. He said XBRL implementation
elements in the reports and generate a
in other countries provides for it.
valid XBRL instance document.
While welcoming the move to implement XBRL, it was the considered view of the participants that it should be voluntary
He said the MCCI should ask the MCA
initially before making it mandatory. In
He said ICAI published a taxonomy two
to commission some corporates to
the other jurisdictions the corporate were
years back. What is filed with MCA is
produce simple software or a simple
given a longer testing time. It was also
an instance document – a document
their experience that errors were noticed
which has been prepared on the basis of taxonomy.
With regard to tools available, he said XBRL– aware accounting software
in XBRL filings on implementation. It is new to India and needs training in the tools for XBRL conversion/re-conversion .
Companies will have to write a software
products are becoming available which
to map it with taxonomy.
will support the export of data in XBRL
Unlike in other jurisdictions, our XBRL
form. These tools allow users to map
taxonomy is not iXBRL enabled, which
charts of accounts and other structures
would let the user see their filing in
of XBRL tags. Financial statements can
readable format like html etc. They are
be mapped into XBRL using XBRL softer
also not extensible by the user.
He further said the XBRL is truly global as it is used by several jurisdictions in regulating financial reporting. The last date for filing for the year 2010-11 has been extended up to 30th September 2011 without additional fee. He said a new taxonomy will have to be prescribed next year when the new schedule Vl becomes operational and
tools designed for this purpose. Tools can transform data in particular formats into XBRL e.g. excel, word, etc. Some of these are add-on products while some of them are free.
possibly the following year when the IND
He said the product is unlikely to be
AS becomes operational.
cheap as they are bundled with training
Coming to cost of compliance he said
Keeping costs of compliance by corporates in mind, MCA should make available a basic, no-frill tool for converting data in word or excel format into XBRL – At present they have to incur significant costs for doing so. XBRL as sought to be implemented now is based on old Schedule Vl and new
people in the corporates need to be
On how long will it take to upload the
Schedule Vl is applicable from 1/4/2011.
trained and it will take sometime.
first XBRL document, he said:
This will require new taxonomy to be
l time for the tools based on the
As regards the tool, he said MCA is not implementing or recommending any particular software; vendors are developing such software and companies are free to choose the one that is suitable to them.
MCA taxonomy to be available in
the market. Tools presently
offered are based on other
taxonomies e.g. IFRS taxonomy.
Later Taxonomy has to be revised for IndAS standards (IFRS converged standards) to be implemented .
l Training the staff, time to evaluate
Investing in technology and training
the tools, doing the conversion;
in it every year with new taxonomy is
MCA has advised the stakeholders
validating against MCA validation
definitely costly and unavoidable.
and companies not to buy accounting
software before final rules are made
In short it should be made voluntary
l Uploading window of MCA
available to avoid any inconvenience.
now and mandatory after 2 to 3
which will be available by
MCA website will host a validation tool
years after new taxonomy for revised
Schedule Vl / Ind AS (IFRS converged
standards) schedule Vl are prescribed. As regards applicability, as per revised circular, MCA needs to clarify the wordings.
It is possible to interpret that subsidiaries
Financial sector is excluded, presumably
of listed entities having the paid up
because they may require a different
capital / turnover prescribed may be
taxonomy, but Housing Finance
required to file XBRL statements while
companies regulated by NHB should be
their listed parent companies are not
clubbed with NBFCs and Banks, as they
It is stated that it will apply to ‘listed
required if they belong to exempted
belong to the same category.
entities and THEIR subsidiaries with
sectors, which may not be the intention!
a paid up capital of Rs. 5 crore or
It should be clarified that it would
turnover of Rs.100 crore” - other than
apply to subsidiaries only where the
Banks, Insurance companies, NBFCs,
parent company is required to file XBRL
Power sector etc. It is inferred that all
The Chamber has sent a representation on this to the appropriate authorities.
conditions are cumulative.
16th June 2011
common in both our regions namely
beginning of November, there will be a
Investment and Business Opportunities in the Piemonte Region (Italy) – Meeting with Italian Delegation:
engineering, automotives, information
very important delegation of more than
technology, clean technologies, etc.
100 Italian companies visiting India. He
Tamilnadu is one of the fastest growing
said that will offer a bigger opportunity
economies and one of the most
for business for both the parties.
A high level delegation from Piemonte
Tamilnadu also is a leading player in
Region visited Chennai on the 16th June
sectors like IT, textiles, leather, non-
Invest in Tornio Piemonte on “Torino
and the Chamber organized a business
conventional energy like wind,
Piemonte, a welcoming region”
meeting with them. The Italian Trade
In her presentation, Ms Stefanis said that
Commission and the Piemonte Agency
He said the team from Piemonte can
Piemonte is the first and unique Italian
partnered with the MCCI in organizing
advise on every aspect of starting
region to have created a dedicated
and running a business in Piemonte,
financial tool for FDI and over 600 local
Piemonte Agency was created by
providing assistance at every stage of
units of foreign companies are located
Piemonte Region in 2006 as a reference
in Piemonte. It has good infrastructure
point for companies wishing to locate in
Our Chamber is happy to provide a
platform for interaction and identifying
Mr T T Srinivasaraghavan, President,
opportunities for both investment and
MCCI, welcoming the gathering said
business collaborations, whatever shape
today’s world is an integrated world.
of form they might take.
Businesses across the globe have
Delivering a special address, Dr Augusto
spread their wings. Alliances and
Di Giacinto, Italian Trade Commissioner
collaborations are the order of the
thanked the Chamber for organizing the
l The region’s competitive positioning
day and as a natural consequence,
seminar. He said Italian Associations
l The development of
Chambers like us have to act as bridges
for Leather have been working closely
between businesses of different regions.
with leather tanneries in India. He said
l The networking of new
He said there are leading sectors
there is lot more to be done. At the
industrialized and urban States. The auto and auto components industries sector is one of the most prominent players.
Presentations were then made by the Italian side as follows:
system and accessibility with 3 logistics hubs connected to the main European corridors. It has ecologically equipped production areas. She said the goal of Invest in Torino Piemonte unit is to attract high added value investment through:
attractiveness factors investments; and
CHAMBER’S ACTIVITIES l The consolidation of foreign
training projects; link with universities
companies already active
and centres of excellence; pre-feasibility
the automotive sector. Mr Fabrizio Righetti, CEO of Magneti Marelli UM Electronic Systems Pvt Ltd.
Mr Gianfranco Di Salvo on Investment
Mr Giuseppe Barile, Director General,
on “Piemonte – India: our business
Opportunities in Piemonte
Webasto S.p.A on
He said Piemonte Agency is the
Webasto and the mechatonics sector in
Mr Righetti mentioned about Magnetic
unique, free reference point for foreign
Marelli, the international company
companies that want to locate in
Mr Barile made a presentation on
committed to the design and production
Piemonte, providing confidential,
success stories. Referring to the
of hitech systems and components for
responsive and tailored assistance
company Webasto – manufacturers of
the automotive sector.
through all the phases of the
roofing systems for various applications,
he said the company has a presence in
It is the one stop shop for foreign
India – Webasto Motherson
companies providing advice on how to
set up a legal entity in Italy; support in
He also mentioned about Magnetic
identifying a location for manufacturing,
Marelli, the international company
services, research; selection of grants
committed to the design and production
and incentives for investment, R&D,
of hitech systems and components for
17th June 2011
Fiscal instruments and incentives have
The Chamber invited a cross section of
Round Table Discussion on Fiscal Policies for Low Carbon Investment:
been recognized as one of the important
people to have their Views. From the UK
tools for mitigating climate change by
side, Dr Philip Douglas, First Secretary,
Climate Finance and Technologies within
In response to a scientific consensus linking Greenhouse Gas (GHG) emissions from human activities to global climate change, many local governments globally have started
A round table discussion was therefore organized by the Chamber to explore interest in the following incentives offered:l capital investment subsidies
for installation of energy-saving
There was lively interaction during which the visitors replied to the many queries of the participants.The vote of thanks was proposed by Mr Bernard Prevete, Deputy Trade Commissioner. The programme was followed by cocktail and dinner.
the joint British Commission – DFID India Climate Change and Energy Unit and Ms Rachel Brass, First Secretary, Climate Change and Energy in the cross governmental unit of FCO, DEC and DFID of the British Government were present. Mr T T Srinivasaraghavan, President,
looking towards various opportunities to
l low interest rate loans to support
MCCI, welcoming the guests said this
reduce GHG emissions.
enterprises investment in energy
discussion is more relevant for the
Chamber which is in the midst of its
In the context of Government of India’s recent international commitment of reducing its GHG emission intensity of GDP by 20-25% between 2005 and 2020, it has become imperative for
l energy review subsidy –
reimbursement of fees towards
energy-audit and environment
audit and certification
all States in the country to individually
l Direct incentive for energy saving
chalk out their action plan to achieve
The aim of the discussion was to
this target within their jurisdiction to
facilitate climate friendly industrial
help the country as a whole achieve its
development in the State by developing
suitable fiscal instruments.
175th year. We have chosen sustainable development as our theme and this fits into our theme well. He said the Chamber was happy to co-host this round table jointly with the Climate Change Department of the British High Commission. He said we can jointly explore new ideas.
Mr P M Belliappa, (IAS Retd)
It was informed that the UK Government
an independent agency should be set
moderated the proceedings. He
has set apart 2.9 billion pounds for
up for this purpose.
said he had worked on environment
Low Carbon initiatives and that there
related subjects with the national and
will be good share of that available for
international bodies and was very much
countries like India to pursue some of
aware of the issues connected with it.
the initiatives in this regard. However
The speakers then explained in detail the subsidies offered by various energy related studies, capital investment subsidies, etc.
23rd June 2011 th
175 Annual General Meeting Business Session:
Dr Douglas indicated that the carbon credits are likely to continue beyond 2012.
since these findings are channelized
The Chamber was represented
from Government to Government,
by a good mix of climate experts,
there could be procedural hurdles and
management consultants, academicians
bureaucracy coming in the way of
and Government representatives.
speedier action. It was suggested that
gave an outline of the activities of the
add a substantial number of workers.
Chamber for the year. His address is
This is an opportunity to take over the
published at the end of this note.
mantle of the “factory to the world”
The theme of Dr Subir Gokarn’s address was “Economic Reforms for Sustainable
with hundreds of millions of relatively low cost workers producing goods that the rest of the world will consume.
The 175th AGM of the Chamber was held
Growth”. He said food, human capital,
on 23rd June at Sheraton Park Hotel &
infrastructure and financial sector
On Infrastructure the rapid growth
Towers. At the Business Session, Mr T T
development are critical areas for
has raised demand for infrastructure
Srinivasaraghavan, Managing Director,
reforms to achieve sustainable growth.
services far in excess of available
Sundaram Finance Ltd., was re-elected as the President while Mr T Shivaraman, Managing Director & CEO, Shriram EPC Ltd. was re-elected as Vice-president for the year 2011-12.
On food inflation, he said the enduring solution to the persistent demandsupply imbalances in food is to increase supply rapidly. Production of relevant items has to be increased, mostly
capacity. Meanwhile a combination of policy, regulatory and financial factors has slowed the pace of investment in infrastructure, leading to a persistence of the gap.
The list of those declared elected as
by increasing productivity. Cultivation
The impact of inadequate supply of
Members of the General Committee
risk has to be mitigated for farmers to
power and transport infrastructure,
appears in the proceedings of the
find these products more attractive.
among other things is quite significant
Transportation, storage and distribution
on manufacturing activity he said.
The Chairmen/Co-Chairmen were also appointed to the various Expert
efficiency has to be increased to keep losses and distribution margins down.
In a nutshell, the infrastructure problem has two dimensions – sectoral and
Committees of the Chamber. The
On human capital he said India is
geographic. Each needs distinct focus in
proceedings of the Business Session
the second most populous country in
order to arrive at meaningful solutions.
appear in the following pages.
the world and will become the most
populous in a couple of decades. It is also one of the youngest and will
The Public Session of the AGM was
remain so for some decades to come.
organized soon after the Business
This demographic dividend provides
Session. Mr T T Srinivasaraghavan,
an enormous opportunity. The Chinese
President, welcomed the Chief Guest, Dr
pool of workers is going to shrink as
Subir Gokarn, Deputy Governor, Reserve
the population ages over the next two
Bank of India and all those present and
decades during which period India will
Speaking about Financial sector, he said looking back over the past 20 years, there have clearly been massive changes in the financial sector, which have completely changed the nature of intermediation, the range of products and services available and the intensity of competition .
Expanding the reach of financial
in September 2010, has evoked great
Logistic and strategic issues of the
services to those individuals who do not
interest and drawn wide appreciation
Chennai Port. Another important study
currently have access is an objective
from members. These discussions have
on the Entrepreneurial Eco System in
that is fully consistent with the people-
served to bring into sharper focus the
Tamil Nadu is also in the offing.
centric definition of sustainable growth.
burning issues of the day and helped
Going by the evidence there is a long
the Chamber reach out to a larger
way to go in achieving this objective.
audience. A number of spin off activities
He further said the Reserve Bank has
are being planned arising out of these.
An interesting and special task taken up during the year, was the commissioning of a Coffee Table book, which will be released at the conclusion of our 175th
been laying a great deal of emphasis
The flagship initiative of the Chamber
year celebrations in September this year.
on the expanding access to the banking
in its 175 year, is the establishment of
The Book traces the history and heritage
system. The broad objective is to ensure
a Skill Development Centre. It is a well
of the Chamber and its significant
access to all households in villages with
accepted fact that one of the major
contributions to the development of
a population of over 2000 by 2012.
problems faced by industry today, is
trade and industry in the region. The
the non -availability of manpower. As
Book is shaping up very well and I am
the debate on Unemployment versus
sure that it will be a collector’s item.
The full text of his address can be viewed from our website www. madraschamber.in
Employability continues, the stark reality is that there is a crying need
The vote of Thanks was proposed by
for formally trained manpower, to keep
Mr T Shivaraman, Vice-president of the
our factories running. It is in this context
that our Chamber has embarked on
Address by Mr T T Srinivasaraghavan, President:
an ambitious project to set up a Skill
Development Centre. Thanks to the foresight of my predecessors, we have the necessary land at a very strategic
It gives me great pleasure to welcome
location between Sriperumbudur and
you all for the 175th AGM of the
Thiruvallur. A significant amount of
Chamber. This is indeed a special
ground work has already been done
and momentous point of time, as we
towards this end and we are actively
commemorate 175 years of service to
talking to potential sponsors and donors
trade and industry. We have traversed
for setting up the facility. While, on the
a long and sometimes arduous road,
one hand, this would help our member
but through it all, we have remained
companies fill their manpower gaps, on
committed to the fundamental values
the other, it would provide meaningful
and objectives of the Chamber. Over the
career opportunities to young people
decades, the Chamber has come to be
from the neighbouring communities.
seen as a responsible and credible voice of trade and industry in Tamil Nadu.
Going back in history, the Chamber had been instrumental in the setting up
A number of important events such as India Corporate Week, All India Workshop on Indirect Tax Laws, Conference on Mainstreaming Green Energy, National Seminar on Emerging Role of Business – Not just for Profit, participation in high level discussions with Government authorities on GST and IFRS, the Parliamentary Standing Committee on Finance on DTC and the RBI Working group on NBFCs, improved networking and collaborative events with other organisations such as the British High Commission and Italian Trade Commission also marked the year. The Chambers’ Expert Committees with true expertise on different subjects have been our pillar of strength and have acted as think tanks for different issues we took up from time to time. The Chamber is also keeping updated with use of technology and our
The 175th year celebrations were
of the Chennai Port. Sadly, the port is
launched on September 29th last
today beset with several problems and
year, following which several new
has increasingly become a bottleneck
initiatives were flagged off. The ‘Food
for exporters and importers alike. The
For Thought’ (FFT) series, a monthly
Chamber has been active in voicing the
forum on wide ranging issues of
concerns of industry and has recently
In summary, I am pleased to report
topical interest, which we commenced
commissioned a study on the current
that the Chamber has had an activity
revamped website strengthens our links with the members and also provides a good platform to members to interact between them.
packed year. We are also working on
which proves our fundamentals are
the immediate crisis. The further reforms
a grand celebration for the completion
strong. Indian growth story is positive
now have to expand to meet the goal
of our 175 year which falls on 29
and economic development ushered
of sustainable development. There are
September, 2011. We are indeed
in by the economic reforms is sure to
current challenges like rising inflation,
fortunate to be part of this moment in
wide spread poverty, rural urban divide
What probably now the concern is the
etc. which are road blocks for the sustainability of our development.
I am confident that this momentum will
sustainable long term development.
take us far beyond September 2011. In
Economic Development has to be
As a Chamber we appreciate this fact
fact, this marks a new beginning and
inclusive, has to be balanced among
and we are concerned, and it is in this
together, we can lay the foundations for
sectors, regions and communities,
background we requested
the next 175 years!
has to foster present growth without
Dr Subir Gokarn, who is an economist
compromising on the future growth,
himself and also who is part of the
has to express concern for environment
policy makers, to address on Economic
and natural resources, has to improve
Reforms for Sustainable Growth. Dr Subir
the quality of human life. In all it has to
has been a friend of the Chamber and
strike an effective balance between
has been with us earlier in a different
various factors. We are now talking
With a long term Vision for the Chamber as well as for the economy, we took the theme for the 175th Year as Sustainable Development and many of our activities now are woven around this. No doubt India is recognised as one of the fastest growing economies, with speculations that India will reach 8.5 to 9 % in the current fiscal. There is also optimism that we may overtake China in the next few years. Our aim of reaching the double digit growth is still to be achieved. We
about equitable development as a component of sustainable development. Social infrastructures , Green businesses are gathering momentum and are
with us again on this important occasion and to address on this important theme.
becoming critical factors in sustainable
I am sure we are in for a Vibrant public
session and I take this opportunity to
have also shown great resilience during
When we initially introduced economic
times of recession while the rest of the
reforms, the objective might have been
world still struggles to come to terms,
short term and limited – to overcome
CONGRATULATlONS The Madras Chamber congratulates Surana & Surana International Attorneys, a Member of the Chamber, on being conferred the International Financial Law Review’s (IFLR) “Law firm of the year – 2011 Chennai” award.
The Chamber also wishes them many more awards in the years to come.
We are very happy to have him
once again welcome you all for this meet.
CHAMBER’S ACTIVITIES 29th June 2011
not competent enough, we will be
keep up the motivational levels
MCCI-MMA Video Discussion – Middle Manager as Innovator
left behind. Hence there should be
innovation always. She gave examples
recognise at the end of the
of Intel Processors and Gillette blades
where they do not rest on the best
give them a patient hearing
The monthly video discussion
features of their products but keep on
programme in June was on the theme
innovating. She said innovation is the
accept mistakes; and
“Middle Manager as Innovator”. The
end result of creativity.
give them a free hand
video was based on the path breaking
The video related to two different
article by Rosebeth Moss Kantger, Ph.D.
companies – Data General Corporation
Comfortable with change
In this tough new business environment,
and New England Telephone Company
innovation is the propeller for survival
– where the top management motivated
Thorough in their approach
and the aim of the discussion was
and nurtured their co-workers to
Participative and those
to learn the value of innovation, how
successfully complete innovative projects
to spot the opportunities and to get
under very different circumstances.
clear steps for achieving the increased
It was brought out that freedom should
involvement and implementation.
be given to the employees to innovate -
Ms Jerina Jahaffar, Consultant and
team work was important.
Corporate Trainer conducted the
It was also brought out that the quality
programme. She said the world is
of Managers should be :
changing every day and if we are
to protect his subordinate team
Successful innovators were those :
who are persistent
There is no specific time for innovation she said and no one is a genius innovator. On improving creativity, it was felt that one should take risks. With a brief Q & A Session, the programme concluded.
Rishabh Academy Private Limited Presents One Day Intensive Seminar on Labour Laws
Date 30.07.2011 12.08.2011 26.08.2011
Place Hyderabad Bangalore Chennai
Participants will be given a complimentary book on “Encyclopaedia On Labour Laws” authored by our faculty Rajkumar S. Adukia B.Com (Hons), FCA, ACS, AICWA, LLB, MBA, Dip IFR(UK), Dip LL & LW Participation Fees: Rs.7500/- per person + Service Tax (Includes cost of lunch & tea and Background material) Payment mode: DD or Multicity Cheque should be drawn in favour of “Rishabh Academy Private Limited” payable at Mumbai. For registration please contact Mr.Shiva Chaudhari +91 9773156653 / 8080240387 Meridien Apartments, Office 6, Building No. 1, Ground Floor, Veera Desai Road, Andheri (West), Mumbai-400058. Tel.No.022 26765506/65721420 Email: firstname.lastname@example.org, www.rishabhacademy.com
175TH ANNUAL GENERAL MEETING PROCEEDINGS OF THE BUSINESS SESSION HELD AT 10.15 A.M. ON 23RD JUNE 2011 AT SHERATON PARK HOTEL & TOWERS, CHENNAI - 600018 PRESENT
The Food for Thought (FFT) series, a
He said the Chamber has a number of
Mr. T T Srinivasaraghavan
monthly breakfast meeting, which
plans on the completion of 175th year
focuses on current topical interests,
celebrations as well.
Mr.T Shivaraman Vice President
was one of the successful events. Besides, the Chamber had organised many useful programmes such as
He then took up the agenda items for consideration.
celebrating India corporate Week with
1. To adopt the Report for the year
the then Minister for MCA, Meeting
REPRESENTATIVES OF MEMBERS
with RBI Working Group on NBFCs,
The President referred to the printed
Representations on various issues to
Annual Report containing the activities
the Government, associating with the
of the Chamber during the year 2010-11
British High Commission and Italian
which had already been circulated to
Trade Commission for joint events,
the members. He informed the General
meeting the Parliamentary Committee
Body that the Report had been well
on DTC, etc. The Chamber’s premises
brought out with a new look and its
were also given a new look. Another
contents were informative and excellent.
important initiative by the Chamber is
The General Body also appreciated
establishing a Skill Development Centre
the Report. In the absence of any
in view of the difficulty in getting trained
queries, he proposed that the Report be
manpower. This is being planned at
adopted. Mr.G.V.Raman seconded the
MCCI’s own place at Koppur village
proposal. Put to vote, the general body
in Tiruvallur district which is one of the
unanimously adopted the Report.
M.V Ananthakrishna, R Anand, Bhavani Balasubramanian, R. Barath, Clynton Almeida, D P Devnath, K V V Giri, S Ganguly, N Ramadoss, K Vaitheeswaran, Rupa Gurunath, M C Kapur, N Vaishnavi, S Ramalingam, Srinivas Acharya, S Ravi, S Gopal, R Narasimhan, B Bhaskar, M V M Sundar, S Sasikumar, K L Parameswaran, N Srinivasan, P.K. Krishnakumar, V K Vijayaraghavan, M J Sivakumar, K V Rajendran, S. Subramanian, S Mohan, N Ramesh, V Sriram, A Sankarakrishnan, L Sabaretnam, G Srinivasan, M R Venkatesh, P R Sudhakar, J Krishnan, U Udayabhaskar Reddy, Vijay Chordia, G V Raman, R Mahadevan, S G Prabhakaran and S. Vaitheeswaran.
prominent industrial area. The Chamber had discussions with various corporate leaders, regulators, academic partners etc. and the project proposal is almost completed. Before converting the open land to a structured building for the training centre, the Chamber
2. To adopt the Audited Statement
of Accounts for the year 2010-11
The President referred to the audited Statement of Accounts for the year 2010-11 sent to members as part of the Annual Report.
would be commencing soft skill training
Since there were no questions,
Mr. T.T.Srinivasaraghavan, President,
programmes near Sriperumbudur from
Mr.N.Srinivasan proposed that the
chaired the meeting and conducted
rented premises. It is the Chamber’s
audited statement of accounts for the
the proceedings. Before taking up
endeavour to start the soft skill
year 2010-11 be adopted. This was
the agenda items, he apprised the
programme before September 2011.
seconded by Mr.G.Srinivasan.
The President thanked the members for
The President thanked M/s RGN Price
their support and active participation
& Co. for auditing the accounts of the
in the various events being organised
members about the activities of the Chamber during the year. He said, the 175th year celebrations were started on September 29th, 2010 and following this, several new initiatives were planned.
by the Chamber and hoped that they would continue to render their support.
3. To determine the Rates of
The Secretary General read out the
subscription payable by different
names of the elected members for the
Stone Colour EXIM Pvt.Ltd.
classes of members for the year
year 2011-12 as follows:
The President informed that there is no proposal to revise the subscription for the year 2011-12 and the rates as prevalent in the previous year would continue. He said that the Chamber had revised the subscription four years back
Auro Mira Energy Company Pvt.Ltd.
Sundaram Finance Ltd.
Surana & Surana International Attorneys
Kumar & Raj
Shriram EPC Ltd.
The General Body congratulated the
and also collected one year’s additional
President and other members of the
subscription last year in view of 175th
MEMBERS OF THE COMMITTEE
He then proposed that the present
Ernst & Young Pvt. Ltd.
rates of subscription be adopted for the
year 2011-12. This was seconded by
M K Raju Consultants Pvt. Ltd.
The President informed that M/s RGN
Price & Co. have been auditing the
Jumbo Bag Ltd.
Chamber’s accounts for the last many
Mr.R.Anand. 4. To declare the election of
Members of the General
Committee for the year 2011-12
The President informed the General
Mr.R.Arjun Durai San Media Ltd
General Committee on their election for the year 2011-12. 5. To appoint auditors for the year 2011-12
years and the Chamber has been paying a sum of Rs.20000/- per annum plus out of pocket expenses. The
Body that the Chamber had so far 10
President sought the concurrence of
members in the General Committee
India Pistons Ltd.
the General Body that the Auditors’
remuneration be fixed at Rs.30000/-
Vaishnavi Freight Logistics Pvt.Ltd.
per annum plus out of pocket
including the President, Vice President and 8 members. Considering the growth of the Chamber in all areas and also considering that there has been
increase in membership, this was the
Chemplast Sanmar Ltd.
opportune time to enhance and broad
base the General Committee to have
Viking Shipping (Chennai) Pvt.Ltd.
fruitful and sector specific discussions. Further, the Chamber had approval from the General Body at the last AGM held in 2010, to increase the size of the General Committee from 10 to
Auditors for the year 2011-12. The General Body unanimously accepted the revision of remuneration of Rs.30000/- plus out of pocket expenses
and also agreed for the re-appointment
Victor Grace & Co.
of RGN Price & Co. as Auditors for the
and 18 members of the Committee.
Neophyll Agrisciences Pvt.Ltd
overwhelming response from members.
General Body for their continuance as
I Sense Technologies P.Ltd.
Committee were called and there was
He also sought the approval of the
Mr.Joseph Eugene Uthaman
20 including President, Vice President Accordingly nominations for the
expenses from the current year 2011-12.
Mr.G.V.Raman Shriram Transport Finance Co.Ltd.
The President requested the Secretary
General to read out the names of
The India Cements Ltd.
the elected members of the General
Committee for the year 2011-12.
Schwing Stetter India Pvt.Ltd.
year 2011-12. The motion was carried over unanimously. 6. To declare the appointment of members of the Expert Committees The President informed the General Body that the various Expert Committees have been a source of
strength to the Chamber and the deliberations at their meetings have been fruitful. Under the auspices of the
Expert Committees, a number of
the year, including some programmes outside Chennai.
programmes were organised during
The Secretary General read out the names of the Chairmen and Co-Chairmen of the following Expert Committees appointed for the year 2011-12.
NAME OF THE COMMITTEE
Company Law / Corporate Matters
Ms.Bhavani Balasubramanian Deloitte Haskins & Sells
Mr.S.Srinivasaraghavan Simpson & Co.Ltd.
Mr.Sriram Seshadri BMR & Associates
Mr.M.R.Venkatesh GSV Associates
Energy Mr.P.Krishnakumar Orient Green Power Co Ltd.
Mr.N.Mani Shriram Capital Ltd.
Environment, Mr.R.Barath Pollution Prevention Wheels India Ltd. And Control
Mr.N.Ramadoss Industrial Waste Management Assn.
Financial Sector Ms.Subashri Sriram Shriram City Union Finance Ltd.
Mr.V.Sriram ICRA Management Consulting Services Ltd.
HRD & CSR
Mr.S.Ganguly Larsen & Toubro Ltd. (ECC Division)
Mr.M.Ramakrishnan W S Industries India Ltd.
Mr.K.Vaitheeswaran K.Vaitheeswaran & Co.
Mr.K.K.Sekar Ashok Leyland Ltd.
I ndustrial Development/ Infrastructure
Mr.S.Kanappan Larsen & Toubro Ltd. (ECC Division)
Mr.Clynton Almeida Redington India Ltd.
Mr. Malli J.Sivakumar Sundaram Infotech Ltd.
Mr.J.Krishnan S.Natesa Iyer & Co.
Mr U.Udayabhaskar Reddy Sanco Trans Ltd.
VAT Mr.P.R.Sudhakar Brakes India Ltd.
Mr.P.R.Subramaniyan Larsen & Toubro Ltd. (ECC Division)
The President informed the General
efforts in organising programmes in
He sought the opinion of the
Body that the Chamber’s existing
many areas relevant to our members.
General Body and the General Body
expert committees have been doing
Hence, it was time to broad base the
unanimously accepted the proposal.
very well in their respective areas.
expert committees and recommended
After taking the Members’ approval, the
The membership of the Chamber has
that 3 more expert committees be
motion was passed to constitute the
increased substantially and about 60
constituted as follows:
above 3 expert committees.
new members have been enrolled
during last year. Added to this, the
b. Health care & Pharma
Chamber has been pro actively taking
to send the same to the Chamber as 7. Any other business Code of conduct for General Committee
early as possible to enable the Chamber Secretariat to start the process. The President informed the General
The President informed the General
Body that the Chamber’s website has
27th July - 6.00 p.m. to 7.00 p.m.
Body that the Chamber’s activities were
been revamped and it provides a host
@ MCCI Conference Room
growing and presently the strength
of information to the members on its
of the General Committee has been
MCCI-MMA Video Discussion on
current activities; a separate page has
increased from 10 to 20. He said he was
been created titled “Ask the Experts”
“Between You and Me”
happy to note that representatives of
wherein members could post their
Faculty: Ms.Shripriya Srinivasan,
member companies have been taking
queries. He requested the members
keen interest to serve on the General
to see the website and make use of
Committee. To maintain the standards
the same effectively and also provide
This video discussion uses
of the General Committee, members’
suggestions to improve it further.
participation, the smooth functioning of the General Committee, maintaining confidentiality etc. the President informed the General Body that the Chamber needs to adopt a Code of Conduct / Governance to become a member of the General Committee. He gave broad details of the code and sought the views of the General Body and after clarifying some of queries raised by the members , he asked the concurrence of the General Body for the adoption of the code of conduct to become a member of the General Committee.
He then informed the General Body that the Chamber is in the process of bringing out a Coffee Table Book which would be released on 29th September 2011 at the Chamber Day.
believable, realistic role-plays to help employees embrace teamwork and solve their own conflicts without management intervention. Tea: 5.30 p.m
The book would explain the history of the Chamber right from its inception, the Chamber’s role in the development of railways, port, telecommunications, etc., and how it interacted with the Government and various stakeholders.
30th July – 9.00 a.m. (proposed) FFT on Land Acquisition Policy Raintree Hotel Anna Salai
It would also contain a number of photographs depicting the Chamber’s growth. He said the book would be a
19th & 20th August 2011
The General Body approved the
collector’s item and a great reference
Two day All India Workshop on
proposal and it would be suitably
point for the business community.
Indirect Tax Laws
Since there were no other issues to
Hotel Deccan Plaza
be informed to the General Body,
incorporated in the Memorandum of Association. Further, the President informed the
the President thanked the Members
General Body that the Chamber
of the Chamber, Members of the
will be bringing out a new Directory
General Committee, Members of the
Rs 4000 per delegate (Non-
of Members and the same will be
various Expert Committees and the
released on the Chamber Day on
Secretariat for the excellent work done
29th September 2011. The Chamber has
and requested their co-operation and
already sent circulars to all Members
support to the Chamber as hitherto.
27th & 28th August 2011(Proposed)
He then requested the Members to join
seeking the required information for the Directory. He said some of the members have so far not responded. The President requested the Members
Rs 3500 per delegate(Member)
the fellowship and attend the Public Session to be held at 11 a.m.
Chennai 27th June 2011
K.Saraswathi Secretary General
GENERAL COMMITTEE 23rd June 2011
taken on rent from 1st August. NTTF
the Act were discussed at
has offered resource support. Others
The President welcomed the members to the meeting and said there was one unfinished agenda and that was about updating on the progress made with regard to the Coffee Table Book. He said Mr V Sriram, historian and the author of the book, has been invited to give the highlights of the book.
like Everonn, C-PAT are also being approached. So far the progress has been good. Study of the Port Sector in Tamilnadu The President said the Port is one of the focus areas of the Chamber. Once the study is over, the Chamber will organise a Seminar in September to
The Vice-President who had presided over the meeting said it was a very good programme and the discussions were lively. The Vice-Consul, US Consulate informed about their Act “ No child Left Behind “. Comparing that with India, it was felt that not enough has been done in our country for primary education while higher education
Mr Sriram through his presentation,
discuss the recommendations
briefed the members about the
made by the Study and convey
current status and said the text and
it to the concerned Government
c. Seminar on Revised Schedule
picture sourcing, scanning, etc. has
been completed. The printing will be done in July/August.
The President then reported on the various meetings organized by the
With regard to the title of the book,
Chamber since the last meeting of
he said for the time being it could
the committee as follows:
be “Championing Enterprise”
has been getting due attention.
This programme organised on 4th June was well attended. Mr D K Mittal, IAS., Secretary, MCA who had confirmed his participation as Chief Guest could not make it
a. MCCI-MMA Video Discussion on
due to unavoidable circumstances.
“The Miracle Man”
However, the programme
These joint programmes by the
was held as scheduled. Mr N
Chamber and MMA are going on
Ramanathan, Managing Director
every month and the response has
of Ponni Sugars (Erode) Ltd. and Mr
been quite good.
S A Murali Prasad, Director, SAM
b. FFT on Right to Education -
Consultancy Services made excellent
presentations on Schedule VI and
Dr Vasanthi Devi, former Vice-
Though the Chamber had already
Sundaranar University, Ms Aruna
made a representation to the
Rathnam, Education Specialist, Mr C
Government on these issues, a
Sathish, Senior Principal, RMK Group
number of issues emerged during
of Schools and Mr David Brock,
the Seminar and the Chamber
Vice-Consul, American Consulate
will be sending a further
addressed the meeting.
on to do the soft launch of the
The salient features of the Right
The Committee felt that there is
project. A facility has been identified
to Education Act and also serious
no uniform format and this makes
near Thirumazhisai and it will be
concerns in the implementation of
with subtitle “The 175 years of The Madras Chamber of Commerce & Industry”. However, this will be finalised shortly since the Chamber has received a few suggestions from members. The President said Mr Sriram’s commitment to this project has been extraordinary and thanked him for his presentation. Members appreciated the efforts put in by Mr V.Sriram.
Skill Development Initiative Progress The President said that efforts are
EVENTS IN PICTURES Public Session
175TH ANNUAL GENERAL MEETING Business Session
l to r: K Saraswathi, T T Srinivasaraghavan & T. Shivaraman
T T Srinivasaraghavan delivering the welcome address
T T Srinivasaraghavan welcoming Dr Subir Gokarn
Dr Subir Gokarn addressing
T Shivaraman proposing the Vote of Thanks
A view of the audience
GENERAL COMMITTEE 2011-12 PRESIDENT
Mr T T Srinivasaraghavan Managing Director Sundaram Finance Ltd.
Mr T Shivaraman Managing Director & CEO Shriram EPC Ltd.
Mr R Anand Partner Ernst & Young Pvt. Ltd.
Mr M V Ananthakrishna Executive Director M K Raju Consultants Pvt. Ltd.
Mr G S Anil Kumar Director – Finance Jumbo Bag Ltd.
Mr R Arjun Durai Managing Director San Media Ltd.
Mr Gautam Venkataramani Executive Director – Corp. Affairs India Pistons Ltd.
Mr K V V Giri Managing Director Vaishnavi Freight Logistics (P) Ltd.
Mr S Gopal Managing Director Chemplast Sanmar Ltd.
Mr Ishwar Achanta Managing Director Viking Shipping (Chennai) Pvt. Ltd.
Mr Joseph Eugene Uthaman Director I Sense Technologies P. Ltd.
GENERAL COMMITTEE 2011-12
Mr V Murali Senior Partner Victor Grace & Co.
Dr K V Rajendran Advisor Neophyll Agrisciences Pvt. Ltd.
Mr G V Raman Executive Chairman Shriram Group of Companies
Ms Rupa Gurunath Director The India Cements Ltd.
Mr A R Subramanian Chief Financial Officer & Company Secretary Schwing Stetter India Pvt. Ltd.
Mr Vijay Chordia Director Stonecolour Exim Private Ltd.
Mr V K Vijayaraghavan Vice-President â€“ Finance Auro Mira Energy Company Pvt. Ltd.
Dr Vinod Surana Partner & CEO Surana & Surana International Attorneys
Mr R Vittal Raj Partner Kumar & Raj
Mr Srinivasan K Swamy Chairman & Managing Director R K Swamy BBDO Pvt. Ltd.
EVENTS IN PICTURES Round Table on Fiscal Policies for Low Carbon Investment
Video Discussion on Middle Manager as Innovator
A view of the meeting
Ms Jerina Jahaffar making a presentation
Investment & Business Opportunities in the Piemonte Region (Italy)
A view of the dignitaries on the dais
T T Srinivasaraghavan welcoming the gathering
Ms Stefanis Novelli making a presentation
it more complicated and costly.
High Commission-DFID India Climate
Further, it was suggested that the
Change and Energy Unit and Ms
Chamber should organise one more
Rachel Brass, First Secretary, Climate
programme with the participation
Change and Energy in the cross
of Secretary, MCA as this is an
Governmental Unit of FCO, DEC
important issue affecting the
and DFID of the British Government
joined the round table discussion.
d. Investment and Business
Dr R Mahadevan who had attended
Opportunities in Torino Piemonte
the programme said that UK
- Meeting with the Italian
Government has set apart
Delegation – 16th June:
2.9 billion pounds for Low Carbon
The Italian Trade Commissioner
initiatives and that there will be
in Mumbai and senior officials
good share of that available for
from Government of Italy made
countries like India to pursue some
presentations on the investment and
of the initiatives in this regard.
business opportunities in Piemonte,
However since these findings are
India-Italy relationships, incentive
channelized from Government
schemes offered, etc. which were
to Government , there could be
impressive. The President said a
procedural hurdles and bureaucracy
bigger team will be visiting India
coming in the way of speedier
in November and the Chamber
action. It was suggested that an
should invite representatives of
independent agency should be set
TIDCO,SIPCOT, etc. to the meeting
up for this purpose.
which will be organised by the Chamber to learn from them some of the best practices in attracting investments to the State. e. Round Table discussion on Fiscal Policies for Low Carbon Investment This programme was held on 17th June in association with Climate Change Team of British High Commission. Dr Philip Douglas, First Secretary, Climate Finance and Technologies within the joint British
b. Business Immigration – Getting a Green Card through Investment –EB5 immigrant visas This programme is to be held in association with Fox Mandal Associates at Hotel Savera commencing at 3.30 p.m. on 1st July. The aim of the Seminar is to talk about securing a US Green card via EB-5 programme. The US Congress created the EB5 programme to encourage foreign investment in the US to create jobs and to provide expeditious US residency and citizenship to qualified foreign investors. Mr Gregory Win and Mr Satish Khalay will be making presentations. c. Chamber Day – 29th September 2011 The President informed that the closing of the 175th year celebrations will be on 29th September and this will be celebrated in a befitting manner.
Dr Douglas indicating that the
Code of Governance for Committee Members
carbon credits are likely to continue
The President stated that there is a
code for becoming members of the
Chamber. However, there was no
He also mentioned about
Members were informed that the following programmes were scheduled to take place: a. MCCI-MMA video discussion: 29th June A joint video discussion by the Chamber and MMA on 29th June on “Middle Manager as an Innovator”. Ms Jerina Jahaffar will be the trainer for this programme.
such thing for becoming a member of the Committee. Assocham and other organisations follow a code of governance and it was time our Chamber also introduced this. The draft code of governance was tabled and the President informed members that he will bring it before the Business Session of the AGM for adoption.
Assocham Managing Committee nominations
30th June 2011
The Secretary General informed
The first meeting of the reconstituted committee was held on 30th June. While discussing the terms of reference, members gave some suggestions which will be incorporated.
IT / ITES
that Assocham has called for nominations to the Managing Committee by 8th July and the Chamber would be sending its nominations shortly. This being the last meeting before the AGM, the President thanked the Vice-President, Mr T Shivaraman and all the members of the Committee for their unstinted support during the year. He said their attendance and participation in the meetings made the proceedings of the Committee lively and purposeful. He sought their cooperation and support in the ensuing year as well. Members of the Committee reciprocated the sentiments and expressed their happiness at the leadership shown by the President.
The Committee dwelt at length on its work plan for the year and decided as follows:l take the web portal to the next level and make it more inter active; also see how best the Chamber could market it l Increase the membership base by bringing in more IT/ITES companies l Identify 2/3 programmes for the year – first event to be held in the first quarter.
felt that IT programmes should be conducted in Tier II cities like Madurai, Coimbatore,Trichy,etc. MCCI – revamped website – suggestions Members made a few suggestions as follows: l Members of the Chamber could be given 3-4 additional ids to enable them to view all the details l Online updation should be made possible l There should be an online directory of members l A s and when the bulletin is uploaded, a message could be constantly flashed l Most wanted question to be highlighted
The committee came out with a proposal to have an exclusive e-newsletter.
l Sectoral reports when uploaded will be for the use of members only
The Committee felt that the Chamber should on its own, under the guidance of the Expert Committee, organize some programmes. The Committee also
l Job Board – only members could post their job requirements. l After 2 months, the website needs to be revisited
NATIONAL AWARDS FOR EMPLOYMENT OF PERSONS WITH DISABILITIES The Ministry of Social Justice and Empowerment has invited nominations of disabled persons for National Awards on the occasion of International Day for Disabled Persons falling on 3rd December 2011. Various categories for these awards and other details can be seen on their website www.socialjustic.nic.in Companies/individuals who have done commendable work for the empowerment of lthe persons with disabilities and need to be recognised may send the nominations to the Ministry. The last date for receipt of nominations is 16th August 2011.
NATIONAL MANUFACTURING POLICY The draft National Manufacturing
of manufacturing in GDP to 25%
and other services and required
Policy has received in principle nod
infrastructure will be located,
from the government. The policy is
l To double the current
and a non- processing area, to
aimed at creating 10 crore additional
employment level in the sector
include residential, commercial
jobs by 2025. The implementation
l To enhance global
and other social and institutional
is expected to increase the share
competitiveness of the sector
infrastructure. The processing area
of manufacturing sector in the GDP from the present 16 per cent to 25 per cent in the next 14 years.
The National Manufacturing and Investment Zones (NMIZs) would reap the benefits of co-
Extracts from National
sitting, networking and greater
Manufacturing Policy -
efficiency through the use of
common infrastructure and support
The discussion paper focuses on 1. National Manufacturing & Investment Zones: Concept 2. Exit Policy 3. Green Technologies: New Avenue of Growth 4. Incentives and Benefits for units in NMIZs 5. Simplified Clearances & Approvals for Setting up units in NMIZs 6. Skill development programme to cater to the needs of Manufacturing Sector.
services. They would have highclass infrastructure, and provide a competitive environment conducive
Economic Zones, Industrial Parks & Warehousing Zones, Export Oriented Units, DTA units duly notified under the relevant Central or State legislation or policy. All the benefits available under the relevant legislation or policy will continue to remain available to the said Zones
for setting up businesses. They
The internal infrastructure of the
would thus provide a boost to
NMIZ will be built and managed
by a Developer, or a group of Co-
of exports and generation of
developers. The external linkages
will be provided by Government
CONCEPT OF NMIZ
of India and the concerned State government. The users of external
An area would be specifically delineated for the establishment of manufacturing facilities for domestic and export led production, along
1. National Manufacturing and
with the associated services and
Investment Zones( NMIZ) -
may include one or more Special
as well as internal infrastructure will pay for its use, except to the extent that the government supports the service through budgetary resource. The NMIZ would have a governing body, which would be in the form
The NMIZs would be a combination
of production units, public utilities,
l T o promote investments in the
logistics, environmental protection
manufacturing sector and make
mechanisms, residential areas
the country a hub for both
and administrative services. It
domestic and international
would have a processing area,
where the manufacturing facilities,
l T o increase the sectoral share
along with associated logistics
of a Special Purpose Vehicle (SPV) formed with the constituents of that specific NMIZ. The SPV would have delegated authority from the State Government, Ministries in the Central Government and other Government Agencies for issuing necessary clearances, as may be necessary
for the inception and continuation of
companies in NMIZ will be obliged
state/ central government; and
business ventures inside the NMIZ.
to take a job loss policy from any
l ‘Best Green Unit’ awards to
encourage, recognize and raise
3. Green Technologies
Indian manufacturing needs to
l If the SPV in a particular NMIZ
focus on four areas:
decides to have an IPP based
l E xplore opportunities in the
on renewable green technology,
rapidly growing carbon trading
an investment subsidy to cover
the additional interest cost per
l Drive “greening of operations” to
mega watt may be considered.
reduce their carbon footprint.
4. Incentives and Benefits for
l E xplore opportunities in
units in NMIZs
“greening of products”.
The NMIZs would be a combination
l E xplore emerging “green
of production units, public utilities,
technologies” with opportunities
logistics, environmental protection
to build local and global
mechanisms, residential areas
and administrative services. It
Special Incentives for Green
would have a processing area,
Technologies and Manufacturing for
where the manufacturing facilities,
units in NMIZs
along with associated logistics
l Low-interest loans for
and other services and required
manufacturing to invest in new
infrastructure will be located,
plans to produce clean /green
and a non- processing area, to
technology or invest in new
include residential, commercial
plants to produce green
and other social and institutional
infrastructure. The processing area
l Creation of a central fund for
may include one or more Special
supporting research in the area
Economic Zones, Industrial Parks
of green manufacturing;
& Warehousing Zones, Export
l Mandatory to get a certain
Oriented Units, DTA units duly
percentage of its electricity mix
notified under the relevant Central
or State legislation or policy. All the
l Provides grants for workers
benefits available under the relevant
training that will lead to an
legislation or policy will continue to
expanded energy efficiency
remain available to the said Zones.
The key feature of the NMIZs would be a more business friendly policy, procedures and approval ecosystem, combined with superior physical infrastructure.
INSTITUTIONAL FRAMEWORK 1. The Department of Industrial Policy and Promotion (DIPP) will be the nodal department of the Government of India for the NMIZs. 2. A High Powered Committee constituted by the Government of India will scrutinize applications for setting up the NMIZ, and subsequently monitor and expedite the progress of implementation. 3. The SPV would be constituted for each NMIZ and will be responsible for its development and management. It will also be empowered to issue/expedite approvals and pre-approvals.
2. Exit Policy for units in NMIZs It is proposed that the closure of a unit in NMIZ should be made easier by settling the dues of the labour in time. There should be a fast mechanism for settling the assets of a sick company so that they are redeployed for production. For settling labour dues independent of other creditors claim a sinking fund should be created for each NMIZ to be maintained by the SPV which would be built through a contribution out of the profits of all the units in NMIZ. Alternatively the
and renewable energy industry workforce;
General Incentives for units in
l Preference to green units/ green
products during procurement by
l In order to encourage industrial
units in taking on training/
Wherever exemptions are possible
retraining of the workers, such
under the Act, the same should
expenditure be treated at par
be granted in NMIZ subject to SPV
with R&D expenditure.
having a self regulated alternative
l T ax exemption on expenditure
mechanism to achieve the objective
incurred in taking national
of the Act.
Where exemption is not possible,
the authority under the Act should
ISO 9000, BIS 14000, BEE, IS,
be vested in the SPV or in a single
CSA, UL, VDE, etc.
l 5 0% of the expenditure incurred
6. Skill development programme
in filing international patents to
to cater to the needs of
be shared by the Government.
l S ubvention of interest on working
The SPV for the NMIZ will
capital by 4% to create parity
continuously review the requirement
with international counterparts.
of skilled manpower and take
l I n government purchases
necessary steps to meet the
preference be given to units
demand for skills at three broad
located in the NMIZs.
levels â€” a very large pool of
l I n order to encourage supply
minimally educated human resource,
chain development, Income Tax
a large pool of skilled persons,
exemption to suppliers in
and a small yet significant pool of
proportion to the supplies made
personnel with highly specialized
within the NMIZ.
skills. A training centre for the zone
l S pecial incentives for certain
would be set up as a Public-Private
crucial industries where import
Partnership initiative with courses
dependence is very high.
being tailored to the demand of
specific industries in the zone.
The State Government may also
Trained personnel would then
notify a package of incentives
be placed suitably in these units.
for the development of the NMIZ,
Appropriate technical assistance
including moratorium on all
tie-ups for the centre with agencies
municipal and other local taxes for
abroad would be facilitated for state
10 years, for the NMIZ developers as
of the art training infrastructure and
well as the units which are located
in the Zone.
Full text of the discussion paper can
5. Simplified Clearances &
be had from
Approvals for Setting up units
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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: firstname.lastname@example.org
INDIAN MANUFACTURING MUST LEVERAGE AUTOMATION By Raja Bahadur V Arcot, Vice President & General Manager, ARC Advisory Group
Macro global forces such as
look upon automation as a business
include design and engineering.
globalization, emergence of
enabler and not as a technology
Companies are seeking design,
knowledge economy, the narrowing
enabler. It is necessary for Indian
operate, and maintain (DOM) inter
divide between developed and
manufacturing companies also to
operability. The DOM inter operability
developing economies, and
leverage automation for achieving
ensures continuous iterations to
demographic changes are ushering
overall business goals, and they
reduce costs by continuous review
cannot ignore the imperatives of
and evaluation mechanisms
While this transformation is taking
leveraging enabling technologies.
relating to products or processes,
place, consumers are increasingly
operational and maintenance
demanding value for their money
and instant gratification. While
From a historical perspective,
the influence of these forces may
manufacturing, which essentially is
vary from industry to industry and
a series of operations that transform
In the present day world, business
company to company, at the macro
inputs, such as raw materials/
is done at the speed of thought,
level almost all companies are
components by deploying human
and therefore it is necessary for
subject to time-to-market and cost
and financial resources through
manufacturing companies to be
pressures and other associated
processes, sprung up close to
agile both in spotting opportunities
challenges. Although the overall
demand or raw material centres,
and in competitively responding to
growth of the world economy
dictated largely by the value-
them. While opportunities are global,
continues to spur manufacturing,
addition criterion. As the global
in many manufacturing segments,
only companies which continually
economy expanded resulting in
the world is awash with excess
discover ways to reduce costs and
demand spurt, manufacturing
capacity, and in that scenario, what
tightly couple all activities along
responded by transforming itself.
is important for manufacturing
the value chain have a chance to
Whether it is process, hybrid,
companies is in achieving
succeed in the fiercely competitive
or discrete, manufacturing
world. Manufacturers are squarely
transformation is a continuous
Role of Automation
addressing these challenges
saga of change. Manufacturing
by thinking out-of-the-box to
companies are moving away from
The success of a manufacturing
optimize manufacturing processes
vertically integrated structure to
company will be determined by
and identify afresh controllable
horizontally linked network models.
their ability to become globally
cost centers. Global companies
Spanning countries and continents,
competitive and successfully
extensively leverage automation to
companies are becoming an
integrate with the emerging globally
ensure productivity, improve plant
extensive network of enterprises,
extended enterprises. Companies
availability, product consistency and
with networks extending beyond
wanting to become agile,
quality, and such others, and they
manufacturing supply chain to
competitive, and globally networked
must extensively deploy automation.
While the automation at the plant-
by Collaborative Production
opportunities through mergers and
level deals with real-time decisions
Management (CPM) Systems.
acquisitions. The pharmaceutical
that impact shop-floor operations,
Automation helps a manufacturing
industry has witnessed many M
automation at the enterprise-level
company to efficiently deploy
& A deals. These trends clearly
relate to business decisions that
its resources — men, material,
indicate that Indian manufacturing
are mostly transaction based. Since
and finances. Automation brings
companies are plugging themselves
today’s business is done at the
within the company’s sphere of
into global networks. Their success
speed of thought, the enterprise-
influence the factors that affect
will be largely determined by their
level support decisions have a direct
the deployment of these resources.
ability to achieve convergence
bearing on the production and
For achieving this, synchronized
among people, processes, and
scheduling decisions that cascade
technology; and this convergence
down to the shop floor operations.
is the key.
is achieved through collaborative
Actionable Information and Realtime Per formance Management
Indian Manufacturing Landscape
Therefore, manufacturing companies
with a surging domestic demand
have to invest in automation to
and global growth opportunities
become more agile, gain visibility
are spurring India’s manufacturing
across the extended supply chain,
companies to expand. Let us take a
and synchronize their production
look at some of the manufacturing
and business decisions. They
verticals, where Indian companies
require synchronized actionable
are moving beyond targeting the
information which comes by
domestic market. These companies
deploying collaborative production
are going beyond exploiting factorial
management systems including
advantages and are seeking
manufacturing execution systems
sustainable competitiveness. And in
(MES) that link plant floor systems
these endeavours, automation has
to enterprise solutions. With
an important role to play.
actionable information at its command, the company can seek Operational Excellence (OpX) or Continuous Improvements (CI). OpX is an on-going journey, and companies have to constantly work at it, year after year. Real-time Per formance Management (RPM) is the key to achieve continuous improvement or OpX. Real-time Per formance Management (RPM) is taking decisions based on Actionable Information provided
The booming Indian economy
The automobile industry in India is going at full throttle. Spurred by domestic demand, India, the third largest manufacturer of compact passenger cars and the fifth largest commercial vehicle manufacturer in the world, is emerging as a major automotive market. The automotive industry in India, with its industry hardened homegrown vehicle manufacturers, the large number of quality conscious auto component suppliers, abundant supply of knowledge workers, and management talent, facilitates the
Some companies in India, having
growth of automotive companies.
made a successful transition from
India is emerging as a global
operating in a sellers market,
manufacturing hub for compact
have emerged as global-sized
cars and auto components. The
world class companies capable
success of the automotive and auto
of competing in a free market.
component industry will largely
Examples, such as the recent
depend on companies’ ability to
take-over of Corus by Tata Steel
competitively design, engineer,
and the bid by India’s aluminium
make, and supply them on time.
major Hindalco for Novelis, show
Automation plays a crucial role in
how some of these companies are
the success of automotive industry
aggressively pursuing global growth
living up to the promise.
Globally Extended Enterprises The Indian steel industry, the ninth largest globally and producing around 38 million tons of steel per annum, is on the upswing. Additionally with rich bauxite ores, the country is also a leading producer of aluminium. Indian
refining processes among others.
it is time for them to evaluate how
With some of the companies in
well they are leveraging automation
the refining segment emerging
technologies to achieve agility,
as significant exporters of refined
supply chain efficiencies, and
products, these companies have to
productivity improvements across
adopt automation in a major way
globally extended and networked
to manage their assets to maximize
companies in the metals segment
Indiaâ€™s pharmaceutical industry,
realize that the way forward for
presently ranking fourth globally in
them would be to segregate
terms of volume and thirteenth in
value chain into primary metal and
terms of value, is growing. Domestic
finished products. The demand for
pharmaceutical companies, keeping
high-value added finished products
abreast with global developments
is beginning to expand in Asia,
and adopting new technologies
while the production facilities for
with relative ease, have created
the same already exist in NA and
good manufacturing practice (GMP)
Europe. Their strategy is to integrate
compliant facilities to produce and
their facilities in India with the
formulate drugs. Although some
already existing finished products
of them have taken strides along
production facilities in the mature
the drug discovery path, their main
l The success of a manufacturing
markets where the demand still
forte continues to be generic drug
company will be determined
exists for finished products. While
market. With generics pipeline
by their ability to become
this strategy helps them to meet
worth around $30-40 billion
globally competitive and
the growing demand for finished
remaining full, Indiaâ€™s pharmaceutical
successfully integrate with
products in India and Asian
companies have ample growth
the emerging globally extended
countries by maximizing the return
opportunities. Wanting to seize
enterprises. Companies wanting
on existing assets by integrating
growth opportunities, some of the
to become agile, competitive,
them vertically, their ultimate
pharmaceutical companies in India
and globally networked must
success depends on integrated and
have taken the route of growing
extensively deploy automation.
synchronized automation across all
through mergers and acquisitions.
l Manufacturing companies have
geographically dispersed plants.
While Indian manufacturing have
to invest in automation to
The companies in the oil and
done well in adding production
become more agile, gain visibility
gas segment have challenges
capacities and building economies
across the extended supply
which include sourcing crude,
of scale, it is time for them to
chain, and synchronize their
its transportation, refining it and
evaluate how well they are
production and business
distributing the refined products.
leveraging automation technologies.
They have to squeeze their margins
While they are extending their reach
by efficiently scheduling their crude
beyond the Indian shores with
supplies and by optimizing the
export earnings growing robustly,
l Global companies extensively leverage automation and they look upon automation as a business enabler and not as a technology enabler. Indian manufacturing companies have to leverage automation for achieving overall business goals, and they cannot ignore the benefits of leveraging enabling technologies.
DEPB Scheme extended for three months The DEPB scheme has been in existence for the last 14 years and has been the most popular schemes especially engineering
This class of investors, called
in several segments including
qualified foreign investors (QFIs) but
not FIIs will be able to invest money
dairy products, research and
in domestic mutual funds through
development, tourism and films.
unit confirmation receipts or through the depository participant route.
including automobile sector. The
QFIs could be individuals and
objective of the DEPB scheme has
bodies including pension funds and
been to neutralise incidence of
cumulatively they could invest up to
customs duty on import content of
$10 billion (about Rs 45,000 crore).
export product. Neutralisation has
EPFO-like body for small sector on the anvil
been provided by way of grant of duty credit against export product.
Seeking to address the concerns
NEW MEMBERS The Chamber extends a warm welcome to the following
According to reports, DEPB scheme
of the small scale sector, the
has been covering nearly 52 percent
Department of Policy and Promotion
of exports. This scheme was due to
(DIPP) is planning to come out with
end on 30 June 2011. Government
a strategy paper to evolve a
has recently extended the scheme
framework for privately-run body on
Business: Fruit pulp, concentrates,
for limited period of three months
the lines of the Employeesâ€™ Provident
juices, processed foods and
upto 30 September 2011.
Fund Organisation for managing
The implication of this amendment
retirement funds and insurance.
is that no DEPB shall be issued on
India-New Zealand FTA likely by 2012
export after 30th September 2011. There is no change in the validity of DEPB as indicated therein, meaning the validity as stated in DEPB shall remain operative till its expiry.
Visiting New Zealand Prime Minister
Origin Foods Ltd., Chennai
Fiducial Insurance Brokers India Pvt.Ltd. Business: Insurance Broking
who arrived on a three day visit to India recently said that India and
Maveric Systems Ltd.
New Zealand were likely to sign the
Business: Software testing
Foreign investors can invest up to $10B in MFs
Free Trade Agreement (FTA) by early
The ceiling is subject to review
The negotiations for a New
depending on the response.
The Central Government has
Cooperation Agreement or popularly
announced that it was making a
known as FTA started last year. The
move to allow foreign investors,
Commerce and Industry Minister
other than foreign institutional
Mr Anand Sharma who visited
investors (FIIs) to invest up to $10
Auckland in May had said that
billion in domestic mutual funds.
the two countries could cooperate
iData Systemtech and Consulting Pvt.Ltd. Business: IT Consultants
TRADE FAIRS & EXHIBITIONS
Trade Fair Accenta, Ghent (Belgium) September 10th - 18th 2011 The India Trade Promotion Organisation is organising India’s national level participation in the above Trade Fair. Trade Fair Accenta is a B 2 C multi Products Event and ITPO has taken an area of 468 sqm, in which 30 - 35 booths of 9 sqm each will be built. Rent for this event is expected to be around Rs.90000 + tax for a 9 sqm booth. If you wish to participate in this Fair, please contact Mr V Narayanan, Manager, ITPO, Chennai at Tel: 28524655 email: email@example.com
India Show – Toronto-Canada October 17th - 20th 2011
objective of the “India Show” is to
International Fair to be held at
promote India’s image and provide
Lagos (Nigeria) from November 4th
a platform for Indian organisations
-13th 2011. Lagos is a gateway and
to showcase their strengths and
commercial nerve center of Nigeria.
capabilities in a developed country
It is also the hub of Nigeria’s
business and economic activity as
“India Show” in Canada will be
well as the main port of entry.
organised in conjunction with the
The fair is likely to attract over 5
Canadian Manufacturing Technology
lakh visitors within and outside
Show (CMTS 2011). CMTS is a
the country which include
premier engineering exhibition
businessmen, investors, consumers,
in Canada and more than 600
top government officials and
companies from various countries
representatives of Nigeria, important
are expected to participate. India
trading houses and those seeking
has been declared a “Strategic
joint venture partnerships.
Partner” for the Show.
ITPO offers a package of services
EEPC India’s endeavour is to
which include fully constructed
showcase the SMEs of India.
stands, wall to wall carpeting,
For further details please contact Mr R Maitra, Executive Director, EEPC India – Phone: 011-23711124/25 email: firstname.lastname@example.org
adequate lighting, furniture, standard display aids, visa recommendation and general publicity support. This event has been approved under MDA scheme of the Department
‘India Show” Canada is an initiative
Show will be organised by EEPC
Lagos International Fair, Lagos (Nigeria) November 4th -13th 2011
India with the support of Indian High
ITPO is organising India’s national
Mobile: +91 98183 9922
Commission at Canada. The main
level participation at Lagos
of the Ministry of Commerce & Industry, Government of India. The
For further details, please contact: Mr V P Malik, Deputy Manager, ITPO
The India Chamber of Commerce, USA invites businesses, officials and educational institutions to attend its Global Trade Summit, August 25th - 26th 2011 at the River Centre, Saint Paul, Minnesota, USA. This is an opportunity to reach the US markets, to meet with potential partners and distributors and to explore markets in Mexico, Brazil, Canada and other countries. For more information please visit the summit’s website http://www.indiachamber.org/GlobalTradeSummit/index.php
ECONOMIC REVIEW ECONOMY Fuel price hike, duty cut to stem the cash losses faced by PSU oil Marketing companies India, US to expand trade and investment links India’s core industries output growth up 5.3 percent in May India’s Exports up 56.9% in May, trade deficit too widens to $14.9bn Food inflation declined sharply to 7.78%
CORPORATE Vodafone finalises India mobile subsidiary buyout
Economy Fuel price hike, duty cut to stem the cash losses faced by PSU oil Marketing companies
reduction of Rs.250 billion (US$5.5
government has ever funded,
bn) in FY12 losses, which could still
and can continue to pressure
be of the order of Rs.1.1-1.2 trillion
government finances. Unless the
(US$25bn). Given the nearly 58%
States agree to tax cuts, more retail
consumption of HSD, LPG and SKO
price hikes cannot be ruled out, if
The government on 24th June
of the total petroleum products
crude remains high.
increased the price of diesel (HSD)
consumption, the reduction in tax
by 8% (Rs.3 per litre), kerosene
collections (Rs.490 bn, US$11 bn
(LKO) by 16% (Rs.2 per litre) and
per annum) will be higher than the
domestic liquified petroleum gas
reduction in losses.
(LPG) by 16% (Rs.50 per cylinder),
However, the reduction in overall under-recoveries is a positive for all oil PSU companies. ONGC, OILI and GAIL should theoretically earn 33%
The Empowered Group of Ministers
of the reduction in under-recoveries.
(EGoM) under the chairmanship of
If benefits of only the retail price
the Finance Minister considered the
increases were passed on, ONGC’s
alarming situation arising out of
EPS would benefit by Rs.5 (16%),
projected massive under-recoveries
OILI’s by Rs.23.7 (18%) and GAIL’s
of the Oil Marketing Companies
by Rs.2.9 (9%) (at 33% upstream
(OMC) of Rs.1,71,140 crore for the
subsidy sharing). Also, at least the
year 2011-12 in the wake of high
four controlled products are currently
international crude oil prices and
priced on a trade parity basis,
finally passed a slew of measures
which relies on only an 80% parity
The government said that the retail
to stem the cash losses faced by
to import prices. The 5% reduction
price hikes should generate Rs.240
PSU oil companies on retail sales.
in crude and product duties should
excluding State levies such as VAT. Also, the excise duty on diesel has been reduced from Rs.4.6 to Rs.2 per litre. Moreover, the prevailing 5% custom duty on crude oil has been eliminated. The custom duty on all petro-products has also been reduced by 5 percentage points to 2.5% only.
billion (US$5.3 bn) in Financial Year 2011-12. On the other hand, the tax cuts do not generate additional revenue, but will lead to another
Despite these large retail price increases, residual FY12 underrecoveries are still the largest the
therefore lead to a small expansion in refining tariff protection, and should be a positive for stand alone
refiners that sell into India.
had made significant progress in
commitments of both governments
India, US to expand trade and investment links
recent years. Over the past decade,
to work hard to expand deepen the
trade and investment between
trade and investment relationship
the two countries had expanded
was the most important outcome
across a variety of industries and
of the bilateral meeting. The joint
sectors. Between 2000 and 2010,
statement said that the United
Indian exports to the United States
States is committed to making the
had grown by nearly 180 percent
investments in technology, skills and
and American exports to India
infrastructure necessary to maintain
had increased over four times.
and enhance US competitiveness in
Meanwhile, the combined bilateral
the global economy.
India and the United States will work together to expand trade and investment links between their economies and will further develop and strengthen their financial systems. They will also work together in the G-20 on an effective mutual assessment process to bring about strong, sustained, and balanced global growth. This statement was declared in a joint statement at the Second meeting of the US-India Economic and Financial Partnership in Washington, D.C on 29th June 2011. The joint statement was signed by both U.S. Secretary of the Treasury Mr Timothy Geithner and Indian Finance Minister Shri Pranab Mukherjee. The US wants India to become one of its top 10 trading partners, treasury secretary Timothy Geithner said as the two countries agreed on improving access to each other’s markets. India is currently the US’ twelfth largest trading partner, with bilateral trade of almost $50bn. “In the United States, we aren’t just watching India’s rise as an economic power, we support it. We encourage it. And we want to help advance it,” Mr Geithner said. “India’s growth is good for us, just as our growth is good for India,” he added. US-India economic relationship
US-India foreign direct investment had grown by nearly 165 percent between 2005 and 2009.
The meeting also discussed the challenges that both economies faced in ensuring a strong recovery
Despite this progress, and especially
and price stability in the short term,
given the size of the two respective
as well as the range of policies
economies, the joint statement
necessary to reach growth at their
recognized that there remained
full potential domestically. Moreover,
untapped potential and opportunity
both countries agreed to a robust
to expand trade and investment
roadmap for the coming year that
linkages to the benefit of both
included deeper engagement
in the partnership areas of
“American companies still face barriers in India in sectors such as banking, insurance, manufacturing, multi-brand retail and infrastructure,” Mr Geithner said. Mr Geithner added that not only were these barriers limiting growth, they were also a hindrance to job creation in both the countries. However, Mr Mukherjee said that given the political situation in India it was not easy to introduce reforms in key sectors. “We do not have a simple, single-party majority in legislature and in parliament,” he said.
macroeconomic challenges, financial sector reforms and infrastructure finance.
India’s core industries output growth up 5.3 percent in May The Index of Eight core industries having a combined weight of 37.90 per cent in the Index of Industrial Production (IIP) with base 2004-05 registered a growth of 5.3% in May 2011. However, the growth of eight key infrastructure industries slowed in May compared to 7.4% during the same year-ago period. During the period of first two months
Despite the limitations expressed
of this financial year (April-May),
by the Indian finance minister, the
growth in the core industries slowed
to 4.3% compared to 7.9% in the
year. Petroleum refinery products
exports growth momentum that
corresponding period of the
registered a growth of 4.5 percent in
began last fiscal. However, the
May, as against an increase of 7.7
imports too went up by 54.1% at
percent during the same month
US$40.91 billion during the month,
pushing up the trade deficit to
The key reason for the slowdown is the fall in output of natural gas and
US$15 billion during May 2011.
cement sectors. Cement has posted
The new entrant, natural gas
a decline for the second month in a
production fell 9.6 percent in May
The imports grew highest in the last
row. In the past, the RBI has raised
compared with a growth of 34.4
four years, as the country’s demand
interest rates 10 times since March
percent in May 2010. On the other
for oil, gold and industrial machinery
2010 to tame inflationary pressures.
hand, fertilizer production rose 7.3
soared. This also raised concerns of
Consequently, the sharp increase in
percent in May compared to a
widening the trade gap for the fiscal
borrowing costs has severely hurt
negative growth or contraction of
year despite a strong rebound in
investment plans of the industries.
6.7 percent in May 2010.
exports. According to the provisional
Also, the high global commodity prices have acted as a barrier to the industry‟s faster expansion.
In addition to fertilisers, the remaining three sectors also reported better growth during the
data released by the Commerce and Industry Ministry, crude oil imports in May rose 18.57 percent to US$10.1 billion from $8.5 billion in
The government has added two
month. Coal output registered
more sectors - natural gas and
a growth of 1.1 percent in May,
fertilisers to the existing six industry
2011, compared to 0.3 percent in
segments. With the inclusion
May 2010. The growth in Crude oil
of these two sectors, the core
production expanded by 9.7 percent
industries now cover the sectors
in May, compared to 5.8 percent
such as crude oil, petroleum refinery
expansion in the corresponding
Export growth in May led by
products, natural gas, fertilisers,
period of 2010. Also, the electricity
engineering as well as electronic
coal, electricity, cement and steel.
which account for maximum index
goods consignments which went up
Also, its weightage now account for
weightage of 10.3, showed an
by 120 percent. Export of petroleum
37.9 percent in the overall index of
improved output growth of 10.3
products grew by 75 per cent, while
industrial production, as compared
percent in May this year, as against
those of ready-made garments as
to 26.7 percent earlier.
6.4 percent in the same month of
well as yarn and fabric, which have
traditionally been strong export sectors for India, rose by about
cement contracted again by 2.3
India’s Exports up 56.9% in May -trade deficit too widens
percent in May this year, as against
For the fiscal year so far, the trade
According to provisional data released today, production of
a growth of 8.6 percent in the same month of 2010. Growth of finished steel production slowed down to 6.1 percent during the month under review, compared to 9 percent expansion in May last
India’s exports during May, 2011 grew by an impressive 56.9% year-on-year to US$25.9 billion (Rs.75730.31 crore). The rise in demand from Western markets (the US and Europe) help maintain the
the same month last year. Non-oil imports also went up by 71 percent to US$30.7 billion in the month under review from US$17.9 billion in the same period last fiscal.
deficit stood at US$23.9 billion. During the first two months of 2011-12, exports increased by 45.3 percent to US$49.8 billion while imports grew 33.3 percent to US$73.7 billion. The sectors which
registered healthy growth in the current fiscal include engineering (115 percent), electronics (80 percent), drugs (68 percent), petroleum (64 percent), gems and jewellery (23 percent), readymade garments (31 percent), and chemicals (44 percent). However few segments like tobacco, iron ore and fruits and vegetables recorded negative growth.
each) have moved up. The index for Non-Food Articles sub-group also declined by 0.4 per cent owing to lower prices of flowers and raw cotton (3% each), and cotton seed (2%). However, the prices of gaur seed (9%), sunflower (7%), copra (3%), and fodder (2%) have moved up. The index for
The deal that originally announced in March, ends a relationship with Essar that had become increasingly strained. The two firms had clashed publicly over plans by Essar to reorganise its ownership of the Indian business in a way that Vodafone claimed would not value the company correctly.
‘Minerals’ group also rose by
Essar had accused Vodafone of
Food inflation declined sharply to 7.78%
trying to force it out of the company,
India’s food inflation rate based
major category fuel, power, light &
on the Wholesale Price Index (WPI)
lubricants rose by 0.2 percent on
stood at 7.78 per cent (%) for the
account of higher prices of aviation
week ended June 18, 2011 as
turbine fuel (3%), naphtha (2%)
compared to 20.12 per cent during
and furnace oil (1%). However, the
the corresponding period of the
prices of bitumen (2%) declined.
previous year. Food inflation for
The annual rate of inflation under
the previous reported week was
this category for the week ended
recorded at 9.13 per cent on a year-
June, 18 stood at 12.98 percent as
compared to previous week level of
Among the major groups, the index for Primary Articles‟ declined by
On the other hand, index for another
12.84 per cent.
while local Indian newspapers reported that the Indian partner had been trying to get Vodafone to pay more for its exit. Vodafone has faced a string of problems since entering the joint-venture in 2007 after it bought majority stake of Hutchison. It includes a £2.3bn write-down, about 25% of the business’s value due to rising spectrum costs, and US$2.6bn tax bill from the Indian authorities. Commenting on the deal, which
has given over $400 million dollars extra to Ruias, Essar Group
inflation for this group was 11.84 per
Vodafone finalises India mobile subsidiary buyout
cent, down from last week’s level of
Vodafone has finally agreed terms
12.62 per cent. It was 19.58 per cent
for the buy-out of its partner Essar
for the corresponding week of the
from its Indian mobile phone
business. The UK firm will pay
The index for ‘Food Articles’ sub-
US$5.46bn to its Indian counterpart
group declined by 0.8 per cent,
to take Essar out of its 33% stake
due to lower prices of poultry
in the Indian subsidiary. It will leave
chicken (4%), masur (3%), and tea,
Vodafone owning 74% of the Indian
condiments & spices and jowar (2%
business, while the other 26% will
each). However, the prices of egg,
be owned by Indian investors, in
gram, urad, ragi and fish-marine (2%
compliance with Indian law.
0.4 percent as compared to the previous week levels. Annual rate of
Chairman Shashi Ruia said, “We were one of the early entrants in the telecom space in 1995 and we are really pleased that VodafoneEssar has grown to become one of the premier telecom companies in the country with over 140 million subscribers.” “We have also enjoyed an extremely successful relationship with Vodafone and wish them success in the future.” Source: Assocham
4MCCI-MMA Video discussion on Middle Manager as Innovator Round Table Discussion on Fiscal policies for low carbon investments Volume 25 – N...
Published on Dec 7, 2011
4MCCI-MMA Video discussion on Middle Manager as Innovator Round Table Discussion on Fiscal policies for low carbon investments Volume 25 – N...