Vol. 27 Nos. 1 & 2 - April & May 2013
MCCI's delegation at the Port of Antwerp's Pavilion at the Break Bulk Event Interactive Meeting with the Delegation from San Luis, Argentina
l to r: T. Shivaraman, President, MCCI, Hon'ble Claudio Poggi, Governor, San Luis, Argentina, Adriel Dalgaard Knott, Director, San Luis Commercial Tourism and Cultural Office in Chennai and Dr Vinod Surana.
IN THI S President’s Message Chamber’s Activities -
Meeting with H.E. the Ambassador of The Netherlands
Presentation on E-filing of ST-3 Returns
Visit to Chennai Container Terminal (DP World)
Programme on “Lean Awareness & Its Importance”
Visit of Delegation from the Province of San Luis, Argentina
Visit of Chamber’s Delegation to European Ports
Amendments in the National Food Meeting to assess the issues with regard to Security Bill introduced in the Lok Sabha clearance of consignments from Chennai Sea Customs Policy Watch
Trade Fairs & Exhibitions Economic Review
President’s Message recent Chamber delegation could say more authentically that modern seaports world over play this role very eﬀectively. The Disconnect with Connectivity! Dear Members, The Chamber recently took a delegation of members to a few modern ports in Europe. The members have come back wiser and also with a feeling of awe seeing the massive infrastructure and the size of operations in ports like Antwerp and Rotterdam. What they said struck them as an eye opener was the well thought out and planned Connectivity - Connectivity within the port and to the port, be it an inland port like Antwerp or a coastal port like Rotterdam. It is obvious that exim trade, an essential component of economic development, depends greatly on port infrastructure and connectivity. It is also becoming truer that a large part of domestic manufacturing depends directly or indirectly on the exim trade. India’s vast coastline stretching around 7,500 kms, is home to 13 major ports and around 200 non-major ports. Tamil Nadu alone has the second longest coastline of 1,076 km in India and has 3 major ports and 22 minor ports. Considering that about 95% by volume and 70% by value of the country’s international trade is carried on through maritime transport, ports in India are expected to demonstrate eﬃciencies that help to cut total logistic costs and improve the overall competitiveness of exported and imported products. Current developments in transportation dictate that the emphasis shifts to the ability of ports to fulfill new roles as logistics partners and operate within integrated global supply chains. The
It was also seen during this visit, how ports also act as manufacturing hubs and help in moving goods easily to their intended destinations. The dedicated facility for Tropicana in Zeebrugge or the Arcelor Mittal steel factory in Ghent or the massive refinery and chemical complexes within the Rotterdam Port are some of the examples of how these ports look beyond just transportation. There are lessons to be learned as to how even “dusty” cargo of coal is handled without creating pollution issues, proving the old dictum that “where there is a will there is a way!” All these world class ports have high level of connectivity by Sea, Barge, Road and Rail. This is one of the major diﬀerences between Indian ports and the advanced ports. The Indian Government has come out with an action plan in 2010 that aims to boost capacity augmentation of our existing ports and shipping sector, and to build an overall port capacity of 3,200 million Tons by 2020 to cater to the projected traﬃc demand. This is no doubt good news. But there can be nothing but chaos if sea traﬃc at the port is doubled while land connectivity sees no corresponding expansion. Connectivity to our major ports remains choked as the traﬃc has to compete with the growing requirements of the host city. The Chennai Port is a classic example of this. The last mile connectivity of EMRIP is pending for years now and in many cases there is no first mile connectivity too. In fact recently the Japanese investors in Tamil Nadu rightly escalated some key issues. It is understood that in the last meeting with the Prime Minister’s Adviser, T.K.A.
Nair, two issues were discussed by them – construction of new Road Over Bridge at Athipattu Railway Station to handle heavy loads and improving connectivity by roads and bridges to Ennore port. This only confirms that infrastructure issues are affecting the growth and prospects of our ports. Not surprising that the World Bank has ranked India’s port infrastructure at 3.90 in 2011, in a scale of 1 to 7, where 1 stands for extremely under developed. A senior consultant says that “When these ports were developed and conceived, there was no vision to develop them into a large-scale port to match global capability. This lack of vision has now begun to impede the growth of these ports.” What we require now is a special focus on port infrastructure with thrust on integrated connectivity through well planned road, rail and waterways. All these with a long term vision and with specific timelines for execution! The Tamil Nadu Vision 2023 Document has projected INR 1500000 crore of investment in Infrastructure with sizeable amount for port and roads. The setting up of the TN Infrastructure Board and the introduction of TN Investment Promotion Programme (TNIPP) with JICA are some silver linings. Focused investment by the State in this area could have a substantial multiplier eﬀect on the economy. Best wishes.
T. Shivaraman President
CHAMBER’S ACTIVITIES 3rd April 2013
Meeting with His Excellency Mr Alphonsus Stoelinga, Ambassador of The Netherlands to India His Excellency Mr Alphonsus Stoelinga who was appointed as the Ambassador of The Netherlands to India was on his maiden visit to Chennai on 3rd April and the Chamber took advantage of his visit in organising a meeting with him. The Netherlands is planning to boost its exports to India from 2.7 billion Euros to 6 billion Euros by 2017 said the Ambassador addressing the Chamber members. The Netherlands had exported goods worth 22 billion euros to Italy, 7 billion euros to China and 2.7 billion euros to India. While Chinese exports were in the region of 30 billion euros, India exported goods worth 7 billion euros. The Ambassador further said the time has come for The Netherlands to focus on new areas such as Asia, Brazil and India as the European Union is reeling under global recession. On FDI he said both India and The Netherlands shared the fifth spot, even though the quantum of investments was totally diﬀerent. Asked about their focus areas in Tamil Nadu, he said renewable energy, agro food processing, solid waste and water management were the key areas. On the opening up of retail sector recently by the Indian government, he said it oﬀered a huge opportunity for the Dutch companies in supply chain management. Tamilnadu could get a centre of excellence in the area of supply chain management and ripening of fruits with expertise provided by The Netherlands. The National Horticultural Mission and the State Government will also be involved in setting up the Centre. Mr Stoelinga said that Dutch companies would also be interested in areas like
integrated water management, harbour planning and life sciences.
Mr.D.Venkatakrishnan, Systems – ACES, Service Tax Department,
The Netherlands is the gateway to Europe. The Rotterdam Port which is one of the world class ports is located in The Netherlands. Over 150 Indian companies have their presence there.
This programme which was very well attended provided a good opportunity to get clarifications from the Department oﬃcials directly.
There are many opportunities for deepening the cooperation between our two countries.
11th April 2013
E-Filing of ST 3 Returns – Presentation & Clarifications The Chamber had been receiving many queries from its members that while filing ST 3 Returns, corporates are facing diﬃculties and there was a need to have proper understanding of the procedures and the system. The last date for E-filing of returns was fixed as 15th April (subsequently extended to 30th April).
19th April 2013
Visit to Chennai Container Terminal (DP World) The Chennai Container Terminal Ltd. (DP World) had extended an invitation to the Chamber to visit their terminal at the Chennai Port Trust and have an interactive session with them. The Chamber’s delegation which visited the Terminal on 19th April consisted of 15 members, including three from the Chamber secretariat. A warm welcome was accorded to the Chamber team by Mr. Ennarasu Karunesan, Director & CEO of CCTL and his team, Mr. T Sai Shyam and Mr Rajesh Ravi.
The Chamber therefore thought it fit to organise a presentation cum discussion meet on the ST-3 Returns with the officials of the Department being present.
Mr Ennarasu made a presentation on India’s trade growth and said in the last 2 years India’s trade has remained constant. We have not touched the trillion dollar mark yet.
Mr. R. Periasami, IRS., Commissioner of Service Tax delivered the inaugural address.
Speaking about DP World, he said it has 60 marine terminals across 6 continents; During 2012, the through put was 56 million TEUS; It is ranked third globally and has a global team of 30,000 staﬀ.
The Chamber had invited the Technical Officers of Service Tax Department, Chennai and requested them to present a live Demonstration on ST3 filing and clarify on ST 3 connected issues. The following oﬃcers were present at the meeting and made presentations and interacted with the delegates: Mr.R.Renukan, Superintendent, Service Tax Department, Chennai Mr.R.Vijay, Superintendent (Retd) from Service tax Department, Chennai Mr.V.Manoharan, Systems – ACES , Service Tax Department, Chennai
Chennai, the Detroit of India, is one of the top three fastest growing States in India and one of the three top FDI destinations in India. Chennai’s exim trade has been 60 billion dollars. He said Chennai is the investors’ preferred destination. Giving an overview of the terminal he said, it is India’s first Container Terminal built in 1983; DP world is committed to zero harm to people and the environment – their global benchmarks. During 2004, it introduced oﬀ dock CFS movement and in 2013,
CHAMBER’S ACTIVITIES online shipping bill transactions. It has come a long way from redundant processes to active processes. D P Wo r l d h a s s u p p l y d r i v e n infrastructure. Chennai was earlier connected to 5 ports whereas it is now connected to more than 60 + global ports. It is India’s first e-terminal with web enabled customer service. There has been excellent revenue sharing for the Chennai Port (Rs. 10060 crores to the Port from 2001 to 2012). This amount should be use for infrastructure development he felt. DP World is the recipient of many awards – the precious one being National Safety Award for ensuring zero fatality. Mr Ennarasu while thanking the Chennai Trade Coordination Committee for all their cooperation requested the support for: -
Conversion of iron ore terminal
8 lane gate complex; and
For the EMRIP project to be completed by December 2013.
During interaction, Mr J Krishnan pointed out that the only issue to be highlighted is the transaction cost. If this issue is looked into, the relationship between the trade and industry and the DP world would strengthen further, he said.
20th April 2013
Programme on “Lean Awareness & Its Importance” ‘Lean’ is part of the business aim to increase market share, customers and attempting to minimise the operating cost. Lean concepts focus on Quality, Cost, Delivery, Safety in Workplace etc. Lean Manufacturing is a theory which helps industries by way of process simplification, reducing waste etc. To understand more on these principles, the Chamber organised a Programme on “Lean Awareness & its Importance”
on 20th April at its Conference Room.
o Agricultural & Irrigation Equipment
Mr V.Prasant Rao and Mr. L S Kannan from SSA Business Solutions, Chennai handled the programme.
o Agro and Food Processing
The programme content covered the following areas: • Overview on History and Evolution of Manufacturing • Changing Business Scenario • Need for speed in processes • Value, Value Stream and Value Stream Mapping • Flow, Achieving flow • 3 Mus – 7 Wastes • Basic understanding of 5S, Kaizen, Visual management, Line Balancing and Kanban The programme was attended by 10 delegates.
9th May 2013
Visit of Delegation from the Province of San Luis, Argentina A high level delegation from the Province of San Luis, Argentina led by the Governor, Hon’ble Mr Claudio Poggi, and accompanied by Mr Adolfo Rodriguez Saa, National Senator and Former Argentinean President, and consisting of 25 Government oﬃcials and 30 business representatives visited Chennai from 7th to 9th May and the Chamber organized a meeting as well as B2B meetings on 9th May to enable the members and other corporates in Chennai to meet the delegation with a view to increase market access of Indian products and technologies. San Luis is an excellent hub for investment. Industrial growth in San Luis has been firm and constant in the last three decades and makes up 30% of the active population. Industries represent over 40% of the Province’s total production. The delegation consisted of the sectors in the following:
o Manufactured Products o “Green” Technology–Solar & Wind Power o Construction & Real Estate o Information Technology o Electrical Machinery o Mineral products o Pharmaceuticals o Chemical & Petrochemical products Mr T Shivaraman, President, MCCI extended a warm welcome to the Governor as well as other guests from Argentina. He mentioned that in the recent past, such a high level delegation from any country had not visited Chennai and MCCI was happy to host this programme for the delegates who have come travelling a long way. He also said that they made a right decision in opening a trade office in Chennai as Tamilnadu is one of the progressive and most performing States in the country. He highlighted a few special features of the State like it is the second largest economy in the country with a rich cultural and economic history and heritage. The State’s total population is around 72 million, larger than the Argentine population of 41 million. Tamil Nadu has lot of other plus points like high literacy rate of around 80% and the GSDP growth of around 9% +. The State leads in many key sectors such as automobile, textiles, leather, chemicals, IT, electronics etc. He further said that Tamil Nadu’s growth rate has always been above the national growth rate thanks to the vibrant industrial community here. Tamil Nadu has three major ports and 23 minor ports handling 100 mn tonnes of cargo. There are 6 airports and the Chennai Airport handles about 15 million passengers a year. Tamil Nadu is also an attractive investment destination standing second in the country in terms of FDI inflow. The industrial and economic development of
CHAMBER’S ACTIVITIES the State is well supported by a strong education sector. Nearly a lakh of engineering graduates and another 3 lakh graduates pass out every year. All these and more add to the strengths of the State. This is the State where things are happening and it is a wise decision for San Luis State to have the Trade Oﬃce in such a progressive State. He wished the Trade Oﬃce all success. He made a mention that the business community in Tamilnadu may take a longer time to decide on getting into partnerships with their counterparts from outside India but the positive factor is that once these partnerships materialize, they really look for long term sustainability in collaborations and joint ventures. The Hon. Consul General of India in Argentina, Dr Sergio Lais-Suarez highlighted the current status of IndiaArgentina relations. He said currently, the volume of trade between India and Argentina is as follows: Exports from India to Agentina
200 million US $
Imports from 500 million US $ Argentina to India
In his address, Hon’ble Mr Claudio Javier Poggi explained how San Luis is very strategically located for doing business with the rest of the world. He said new business prospects from Latin American countries, more particularly from South African countries are on the increase and from both sides there is a realization that there are a number of virgin areas to be explored apart from the already existing businesses. With Dr Vinod Surana proposing the Vote of Thanks, the meeting concluded. This was followed by B2B meetings during which an MOU was signed by Medi Biotek (India) Pvt.Ltd. with an Argentina company.
12th May - 19th May 2013
Visit of Chamber’s Delegation to European Ports The Chamber organized a visit to European Ports between 12th and 19th May. The delegation visited the ports of Antwerp, Rotterdam, Zeebrugge and Ghent. For more articles and pictures, please see from page 10 . . .
The aim is to reach nearly 5 billion dollars by 2015. He said more than 20,000 employment opportunities were provided by the Indian companies who have set up shops in Argentina. This is helping a great deal in the development of the economy of San Luis. He also said that San Luis has been the best performing State in Argentina and the credit should go to Hon’ble Mr Claudio Javier Poggi, Governor of the Province of San Luis. He thanked MCCI and Surana and Surana International Attorneys for organizing this visit. He said that the Trade Oﬃce which would function from the International Law Centre is the first such oﬃce in India and hoped that our relationships would get strengthened in the years to come and more business partnerships would emerge.
25th May 2013
Meeting to assess the issues with regard to clearance of consignments from Chennai Sea Customs There has been considerable delay in clearing the consignments from the Chennai Sea Customs and the exporters and importers were facing diﬃculties in this regard. A number of representations had already been made to the concerned Ministries at the Centre but the situation had not improved. The Chamber therefore convened an urgent meeting of the members aﬀected by the delay in clearance of goods on 25th May at the Chamber. The meeting
chaired by Mr J Krishnan, Chairman of the Expert Committee on Logistics of the Chamber, was attended by Mr A V Vijayakumar, President, Chennai Custom House Agents’ Association, representatives of ACAAI etc. apart from members of the Chamber. Members pointed out that there is a shortage of oﬃcers and the Sea Customs was working at less than 40% sanctioned strength for the last two years. There is a drop of 30% in the volumes of containerised cargo. Movement of containers to CFS has become very problematic; They referred to the transaction cost and said this should be opposed. The discretionary powers given to the oﬃcers should be opposed as they have been misusing the same. It was further felt that there is no accountability at the Airport as well as at Customs. If there is a delay by Customs, the trade should not be penalised. Finally it was felt that unless the importers and exporters come forward, and their voice becomes loud, there can be very little that can change. Mr Krishnan said that the Chamber would invite the Revenue Secretary and make a presentation to him on the diﬃculties encountered; alternatively a team could meet the Revenue Secretary at Delhi and take up the issues with him. The Chamber would also address AERA on the equipment and performance deficiencies found at the Chennai Airport. As this meeting was convened at a very short notice, and most of the members could not attend, a further meeting is proposed to be convened shortly.z
Appreciation is an expensive gift which can be given freely. It costs you nothing but valued priceless by the receiver.
GENERAL COMMITTEE 13th April 2013
11th May 2013
The Committee at its meetings held on 13th April and 11th May considered the following::
Finalisation of MCCI Accounts for 2012-13:
Study on Creation of a Mega Port: The Consultants had submitted the revised report. Members felt that the mega port should look beyond Tamilnadu and also should provide inputs about railway linkages. It was informed that the study would initially be presented to the concerned State authorities and later on discussed at a formal Seminar.
Skill Development: Members were informed that a brief concept note and a proposal have already been submitted to the State Government and preparation of DPR is in progress. Simultaneously the Chamber is also trying to engage with other agencies like C-PAT to start a few joint programmes. Members pointed out to a recent article in the Times of India about the survey of Graduates V/s Employability. Tamilnadu has the highest number of graduates but lowest in employability, it was pointed out.
Finishing School Programme: The Chamber has developed a few modules on (1) Accounts (2) Foundation course on Logistics ( 3 ) I n d u st r i a l E n g i n e e r i n g a n d (4) Taxation which can be oﬀered to final year students to improve their employability.
Visit to Port of Antwerp: It was informed that 11 members would be joining the Chamber’s delegation to Antwerp and other ports. The Committee was also informed of other proposed activities like (a) Study on Ease of Doing Business (2) Certificate Programme on Global Trade Management (3) SWITCH Asia Project, etc. The Committee also noted the various programmes lined up during May/ June.
Since the Auditor was present, this subject was taken up first for consideration. He drew the attention of the members to some specific points like payment of service tax from members who had not paid the subscription for the last financial year, appeal pending with the Income tax Department, etc. After detailed discussions on these points, it was decided to take into account the views of members and finalise the accounts. With regard to the discussion on Skill Development Centre, members suggested that the Chamber should attempt at organising start up programmes in diﬀerent locations. The Chamber was exploring the possibility of working with the Association of Industrial Training Centres (ITCs) as also with C-PAT. An MOU has also been signed with RVS Institutions of Coimbatore and about 200 students are to be trained in Accounts initially. The course is likely to commence in the in June 2013. It is proposed to cover areas like Trichy, Dindigul, Chennai, etc.
Certificate Programme on Global Trade Management:
3-4 industrial sectors and go deeper into the issues faced by them. The study would look into both - issues in starting a new business and the ease of continuing to do business. The scope of work has been prepared. It was suggested that the Consultants should look at both State and Central Governments with regard to getting approvals, sanctions, etc.
Monetary Policy Statement – 201314: The Committee noted that the RBI had announced its annual policy for 201314. The RBI, on expected lines, cut the repo rate by 25 basis points and left the CRR unchanged, keeping in mind slow growth and high inflation. The Committee noted the programmes organized as well as the forthcoming programmes.
New Membership: Four new members were admitted. Their names appear elsewhere in this Bulletin.
Congratulations and Best Wishes to
A proposal has been forwarded to the concerned authorities at the University of Madras for their consideration and approval.
Switch Asia Project: The application has been forwarded to the Project Oﬃce and it may take about 2-3 months to know the status.
Ease of Doing Business – Study: The Chamber proposes to commission a study on the said subject, with the objective of highlighting the procedural h u rd l e s , o u td ate d l aws , u n d u e harassment etc. which hamper the business growth, and to come out with specific recommendations to improve the system. The Chamber will focus on
R Vittal Raj on being elected as a Director to the International Board of Directors of ISACA, USA for the year 2013-14.
Amendments in the National Food Security Bill Introduced in the Lok Sabha Hon’ble Minister for Consumer Aﬀairs, Food & Public Distribution Shri K.V.Thomas introduced amendments in the National Food Security Bill in the Lok Sabha today (May 2, 2013) for consideration and passing by the House.
India level, State wise coverage will be determined by the Planning Commission. The work of identification of eligible households is left to the States/UTs, which may frame their own criteria or use Social Economic and Caste Census data.
HIGHLIGHTS OF AMENDED BILL:
Special focus on nutritional support to women and children
The National Food Security Bill is a historic initiative for ensuring food and nutritional security to the people. It gives right to the people to receive adequate quantity of food grains at aﬀordable prices. The Food Security Bill has special focus on the needs of poorest of the poor, women and children. In case of non-supply of food grains now, people will get Food Security Allowance. The Bill provides for wide scale redressal mechanism and penalty for noncompliance by public servant or authority. Other features of the Bill are as follows: Coverage of two thirds population to get highly susidized foodgrains Upto 75% of the rural population and upto 50% of the urban population will have uniform entitlement of 5 kg food grains per month at highly subsidized prices of Rs. 3, Rs. 2, Re. 1 per kg. for rice, wheat, coarse grains respectively. It will entitle about two thirds of our 1.2 billion population to subsidised food grains under the Targeted Public Distribution System (TPDS). Poorest of the poor continue to get 35 kg per household The poorest of poor households would continue to receive 35 Kg food grains per household per month under Antyodaya Anna Yajna at subsidized prices of Rs 3, Rs 2 and Re 1. It is also proposed to protect the existing allocation of food grains to the States/UTs, subject to it being restricted to average annual off take during last three years. Eligible households to be identified by the States Corresponding to the coverage of 75% rural and 50 % of urban population at all
There is a special focus on nutritional support to women and children. Pregnant women and lactating mothers, besides being entitled to nutritious meals as per the prescribed nutritional norms will also receive maternity benefit at least of Rs. 6000/-. Children in the age group of 6 months to 14 years will be entitled to take home ration or hot cooked food as per prescribed nutritional norms. Food Security Allowance in case of non supply of foodgrains The Central Government will provide funds to States/UTs in case of short supply of food grains from Central pool. In case of non-supply of food grains or meals to entitled persons, the concerned State/UT Governments will be required to provide such food security allowance as may be prescribed by the Central Government to the beneficiaries. States to get assistance for intra-State transportation and handling of food grains
computerisation, leveraging ‘Aadhaar’ for unique identification of beneficiaries, diversification of commodities under TPDS etc for eﬀective implementation of the Food Security Act. Women Empowerment-- Eldest women will be Head of the household Eldest woman of eighteen years of age or above will be head of the household for issue of ration card, and if not available, the eldest male member is to be the head of the household. Grievance redressal mechanism at district level There will be State and Ddistrict level redressal mechanism with designated nodal oﬃcers. The States will be allowed to use the existing machinery for District Grievance Redressal Oﬃcer (DGRO), State Food Commission, if they so desire, to save expenditure on establishment of new redressal set up. Redressal mechanism may also include call centers, helpline etc. Social audits and Vigilance Committees to ensure transparency and accountability Provisions have also been made for disclosure of records relating to PDS, social audits and setting up of Vigilance Committees in order to ensure transparency and accountability.
In order to address the concerns of the States regarding additional financial burden, Central Government will provide assistance to the States towards cost of intra-State transportation, handling of food grains and FPS dealers’ margin. This will ensure timely transportation and eﬃcient handling of food grains.
Penalty for non-compliance
Reforms for doorstep delivery of food grains
At the proposed coverage of entitlement, total estimated annual food grains requirement is 612.3 lakh tons and corresponding estimated food subsidy for the Bill at 2013-14 costs is about Rs.1,24,724 crore.
Reforms have been initiated for doorstep delivery of food grains, application of Information and Communication Technology (ICT) including end-to-end
The Bill provides for penalty to be imposed on public servants or authority, if found guilty of failing to comply with the relief recommended by the District Grievance Redressal Oﬃcer (DGRO). Expenditure
POLICY WATCH IMG to enforce regulatory framework The Central Government has set up a high level Inter-Ministerial Group (IMG) for proper enforcement of regulatory framework for multi-level marketing companies,(MLMCs) nonbanking finance companies (NBFCs) and companies running collective investment schemes (CIS). The IMG consists of Joint secretary level officers from the Department of Economic Aﬀairs and the Dept. of Revenue in the Ministry of Finance, the Ministry of Corporate Aﬀairs and such senior oﬃcers from RBI and SEBI.
State to go in for its own stamp duty law: At present, the Indian Stamp Act 1899 is in force: To streamline and simplify transactions of immovable properties and securities, the State Government recently introduced its own Stamp Duty Bill in the Assembly. The move to enact an exclusive stamp duty law for Tamilnadu has been made, taking a cue from States such as Maharashtra, Gujarat, Kerala, Karnataka and Rajasthan. At present, the Indian Stamp Act 1899 is in force in the State. Since it is an existing law with respect to one of the matters enumerated in the Concurrent List, amendments to the Act, once passed by the State legislature, have to be sent to President for assent, eventually resulting in delay in the execution of the proposed amendments. To facilitate the process of bringing into force such amendments and regulate the procedure on the levy of stamp duty by the State government, it was decided to frame an exclusive law according to the statement of objects and reasons of the Tamilnadu Stamp Bill which was tabled by Commercial Taxes and Registration Minister.
Authority to regulate and control water uses coming – National Bureau of Water Use Eﬃciency will focus on irrigation, drinking water supply: The Centre will establish a National Bureau of Water Use eﬃciency as an
“Authority” for promotion, regulation and control of eﬃcient use of water in irrigation, municipal and industrial uses. This was decided in the first meeting of the Advisory Board of the National Water Mission that was established as part of the National Action Plan on Climate Change. It was also decided that for improving “water use eﬃciency” by 20 per cent, the Mission will review the National and State Water Policies and prepare Statespecific action plans for water sector through consultation process. T h e B u r e a u w i l l t a ke u p f i v e benchmarking irrigation projects in parts of the country to demonstrate water use eﬃciency through water supply on volumetric basis, empowering Water User Associations to price water and collect water charges and demonstrating state of the art technologies.
Import tariﬀ value cut: In keeping with the subdued price trend in global markets, the Government recently reduced the import tariﬀ value of gold to $466 from $ 472 per 10 gram pegged a month ago. Likewise, in the case of silver, the tariﬀ value which is the base price on which customs duty is determined to prevent under-invoicing, also stands marginally reduced to $761 from $ 762 a kg.
China pledges to fix trade deficit issue with India: China is sending an investment promotion mission and one of the biggest ever business delegations to India to accompany Premier Li Keqiang on his State visit to demonstrate that the government was taking very seriously the widening trade imbalance. Despite the rapid increase in overall trade, the increasingly unbalanced nature of the relationships has emerged as a source of concern with the deficit reaching a record $29 billion last year, in China’s favour. Indian imports of Chinese machinery and equipment, particularly in the power and telecom sectors, have emerged as a key driver
of trade, while India continues to export raw materials such as Iron ore. While India is pushing for greater market access for information technology and pharmaceuticals companies, it has had limited success so far.
New drug price regime to alter structure: The Indian consumer will benefit under the new Drug Pricing Control Order 2013 (DPCO2013) which has been notified and will replace the DPCO 1995. The new order will bring 652 drugs under price control and will enable the National Pharmaceutical Pricing Policy 2012 to regulate prices of 348 drugs covered under the National List of Essential Medicines 2011. The new policy diﬀers from the existing DPCO 1995 in that it is based on the simple average price for all brands with a market share above 1 per cent in their segment. The new policy also uses a market based pricing mechanism against the earlier proposed cost-plus method.
Anand Sharma seeks more market access from Japan: Commerce & Industry Minster has sought from Japan more market access for Indian exporters in sectors such as agriculture, marine and pharmaceutical products. He has also expressed concern over the mounting trade deficit. Mr Sharma raised the matter during his meeting with the Japanese Prime Minister and the Foreign Minister. The Japanese pharmaceutical market is projected to touch $ 100 billion and the Indian generics can play a key role in providing aﬀordable healthcare. India’s trade deficit with Japan stood at over $ 6 billion in 2012-13. It is very easy to defeat someone, but it is very hard to win someone. Dr. A.P.J. Abdul Kalam
POLICY WATCH Withholding tax norms eased Centre seeks to provide broad-based incentive to encourage investment:
It said the new guideline would take eﬀect immediately and would be valid until the end of September.
In a bid to encourage development of the domestic debt market and accelerate the pace of economic growth, the Government announced reduction in withholding tax rates along with simplification of norms to attract greater subscription in debt securities by foreign investments.
issued new guidelines for pharmaceutical makers to comply with the European Union (EU) Good Manufacturing Practice (GMP) standards.
Power deficit States can get electricity from surplus regions:
The Ministry said such a move will give a boost to pharma exports from India. India has demonstrated its keenness to meet international requirements for exports of pharmaceutical products yet again by taking timely action for complying with the new procedural requirements of the EU for import of Active Pharmaceutical Ingredients (API) into the EU.
Consistent with its policy of gradual easing of withholding tax norms and extending the benefit of lower rates at 5 per cent – instead of 20 per cent earlier – to a larger cross section of investors, the government has now sought to provide broad based incentives and encourage greater oﬀshore investment by foreign institutional investors and qualified foreign investors in the country’s debt market, including bonds issued by Indian companies and government securities.
Chidambaram calls for merger of banks: Finance Minister, P Chidambaram spoke in favour of mergers in the banking industry so that the country could have two or three global sized banks. There are other sectors that may well need restructuring. For example, some banks including public sector banks among 26 public sector banks. The need for two or three world sized banks in an economy that is poised to become one among the five largest in the world is rather obvious he said. He further said that while restructuring may be needed in some sectors, mergers may reduce competition in certain segments of geographies substantially and may alter competition between banks and non-banks.
RBI cuts time for exporters to repatriate earnings: The RBI said it had cut the time that exporters had to bring back into the country, the value of goods or software they had exported to nine months from 12 months.
The Government said that power surplus States could transfer surplus electricity to ones grappling with shortage through a new system. “The surplus power from the States can be transferred to power deficit States through the Inter-State Transmission System from the source of supply between the point of supply and point of drawl”. The National Grid for evacuation of power from generating sources located in diﬀerent regions in the country and facilitating transfer of power from surplus to deficit regions, is in place. In addition, licences have been granted for trading of power. Power exchanges have also been set up for facilitating transfer of power. Power can also be supplied under bilateral arrangements. The Power System Development Fund has been constituted vide the Central Electricity Regulatory Commission (Power System Development Fund) Regulation 2010 which inter alia may also be utilised for establishment of inter-State transmission network.
Active Pharmaceutical Ingredients, commonly referred to as bulk drugs in the industry, are used in making medicines. The new legislation, which will come into force from July 2, requires a written confirmation by a competent authority nominated by the Government that the API has been manufactured in accordance with the EU GMP standards. The authority will also give a written confirmation that the manufacturing facility where the API is produced is subject to control and enforcement of GMP standards and is equivalent to those in the EU countries.
Inflation index bonds can be linked to CPI in future:
Available in over 50 countries
The RBI said the soon to be launched inflation index bonds could be linked to CPI in the future.
renowned product, famed for its
The Central bank may consider eventually linking IIBs to the consumer price index led inflation once the price measure stabilises. At present the RBI planned to initially index the bonds to the wholesale price index with a four month lag.
wood and environment.
New Bulk Drug Export norms to comply with EU Standards: The Commerce & Industry Ministry has
worldwide, OSMO is a world fine finish; made of natural oils and waxes, the very best for the For enquiries contact Osmo Lanka (Pvt) Ltd., 05A, Post Master’s Place, Mount Lavinia, Sri Lanka. 10370. Chathurika PRIYADARSHANI [mailto:email@example.com]
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Featuring Qualified and Competitive Products
Over visitor from over 100 countries
Visit of Chamber’s Delegation to European Ports (12th to 19th May 2013)
J. Krishnan Partner S. Natesa Iyer & Co.
refining facilities located in the port
Most of these ports have effectively
premises was the highlight of this port.
installed wind turbines to cater to their
The modern container terminals with
energy requirements to a large extent
evacuation by road, rail and barge
and to move towards a coal and carbon
demonstrate the ease of access and
evacuation from the port. At the port of Ghent, members were impressed to see the eﬀective pollution
Members also had an opportunity to see world’s heaviest floating crane structures, capable of lifting 14,000 tonnes and 8,000 tonnes of cargo. These
The Chamber organized a visit to
control on dry bulk cargo, especially
European Ports between 12th and 19th
coal and the effective use of water
May. The delegation which consisted
canons and silicon spraying to control
of 11 membes from companies such
dust pollution of dry bulk cargoes. The
The road infrastructure created by
as Kattupalli Port, Brakes India, Sattva
port of Ghent also has a port-based
the ports for access and evacuation
Logistics, S. Natesa Iyer & Co., Skylift
facility where liquid concentrated
effectively bypasses city traffic and
Cargo, etc., visited the ports of Antwerp,
juice is pumped into tanks, thereafter
Rotterdam, Zeebrugge and Ghent. These
blended and packaged and distributed
ports were chosen as they represent
various aspects of the maritime trade. Zeebrugge is the largest new car container facility in Europe; Ghent is a riverine port handling coal and iron ore
are the largest available lifting structures in the world.
Members also had an occasion to participate in the Break Bulk Conference
The Arcelor Mittal steel factory is also
held at Antwerp as well as visit the
located in the port premises at Ghent
Exhibition and interact with the
and the port eﬃciently caters to their
delegates from around the world.
raw material and fuel requirements. The visit was organized at the invitation
eﬀectively adhering to environmental norms; Rotterdam is the biggest port in
The short sea services provided by ports
of Mr Mark Peel, Chairman, Port of
Europe and Antwerp again a major port
of Antwerp and Rotterdam to connect
Antwerp who had led a Delegation
in Europe situated on the river Scheldt,
various European Ports was another
from the Port of Antwerp to Chennai in
both handling multi-commodities.
interesting learning experience for the
February this year. Excellent coordination
was extended by Mr Raj Khalid, India
Members of the delegation saw at first hand how a city based port of Antwerp effectively and efficiently handles break bulk and liquid bulk cargo ; the
Districts in UK and France are connected in a cost eﬀective manner from these ports using short sea services rather than their own home based ports.
Representative of Port of Antwerp based in Mumbai which facilitated the various visits/appointments.
Memoirs by Delegation Members
N. Sivasubramaniam Director Air connection Pvt. Ld. It was a pleasant surprise when Mr.Krishnan invited me to join the delegation to visit the sea Ports in Brussels and Netherlands. Though hesitant at the beginning having read about world class Ports in various countries, I decided to make this trip and I must confess that it was a good decision. Visit to the Ports of Zeebrugge, Ghent, Antwerp and Rotterdam was an eye opener; how the ports have evolved over the years to suit the requirements
of the changing times, is something we need to learn from. The cruise along the canals gave an insight on how well the ports have been designed and planned keeping in mind the future needs. It was interesting to note that all the Ports only lease the land leaving it to the users to build their own infrastructure. The wide range of industrial activities – petrochemical, steel, automotive, energy production and distribution that are located in the ports and the ease with which they operate makes one wonder where we have gone wrong. Special mention should be made on the hospitality of our hosts and the care taken to make our trip a memorable one especially the cruise in Ghent and Antwerp. I can go on with a list of places we enjoyed visiting and the names
of people to thank but that would be endless. It was a wonderful learning experience with lots of fun and good company to share the experience with and equally amused to note that some amongst us were very clear in their mind that they would not deviate from their daily diet of Idlies and dosas or sambar and thayir sadam which they finally managed, speaks volumes of their perseverance to sniﬀ out the Bhavans that serve them. End of the day the whole team was a happy lot having enjoyed each others’ company throughout the trip. When it came to saying adieu, it was with a longing of when the next trip would be.
K.G. Sathyanarayanan Senior Dy. General Manager Business Development L&T Kattupalli Port
V. Ramanan Divisional Manager – Commercial Brakes India Ltd.
T. Shanmugapriya Joint Managing Director Skylift Cargo (P) Ltd.
The visit was very interesting and informative more from the port planning and operations‘ perspective. The immaculate planning and arrangements made the visit a memorable one.
As a member from manufacturing industry,( handling both in-bound and out-bound international logistics), the trip was an eye opener. The details gathered and the knowledge gained during the trip will certainly enhance the performance.
Though we had an idea as to what we might get to see during our trip, the actual experience exceeded all expectations. I would like to thank the Chamber for this experience which is an unforgettable one in terms of knowledge and awareness and look forward to many more in the future.
guide), even while going on a wild goose chase!! Even though I must say we were mostly led by the tongue than by the hand!
Capt. N. Viswanathan General Manager (Marine) L&T Kattupalli Port It was a great pleasure to be a part of the delegation to visit sea ports. The pleasure was greater to have the wonderful company of a diverse group of delegates. All of us interacted as if we had known each other for decades. It clearly showed in the trust many of us reposed and walked with weary feet in the blind directions some of us gave (with the confidence of a seasoned
The patience of both Sankaranarayanan and Shanmugapriya in spite of our constant nagging while travelling and shifting platforms must have seasoned them for some of their most trying situations with painful clients - and we acknowledge their thanks. I perhaps travelled more than any one in the trip - not perhaps but definitely that’s because I went in the opposite direction on the metro rail - to confirm the speed and security - and came
4 KM breakwater that was constructed 4 years ago.
N.Pavithra Operations Manager S. Natesa Iyer & Co. I was quite excited to join the MCCI’s delegation to visit the European Ports. Here’s an account of our visit. Our first Port of call was Zeebrugge (Bruge by the sea). This is a coastal port of Belgium unlike Antwerp and Ghent. We learnt that Zeebrugge has a sister port agreement with Chennai Port. This port is strategically located and it takes only 30 minutes to reach The Netherlands, 60 minutes to France and 180 minutes to Germany by road. Hence the Port of Zeebrugge serves as an ideal entry/exit point to these European nations. 85% of the cargo at the Port of Zeebrugge is transshipped to other parts of Europe. This port has a
This port handles LNG, Food and Automotives and Containerised cargo as its major cargoes and the connectivity is by Sea, Barges, Road and Rail. The famous juice brand Tropicana has dedicated facility where juice extract is stored in tanks and subsequently blended and packed in cartons for distribution to parts of Europe. Juice extract is directly pumped from the vessel to tank farms on shore. The city of Burges is a well preserved medieval town dating back to the 13th Century and is a must see for every visitor to Belgium. Its quaint canals and imposing Churches must be experienced. The delegation members spent an afternoon exploring the town of Bruges.
Port of Ghent This is a riverine port in Belgium located 30 Km inland. This port can receive Panamax vessels due to the deep draft of the canal system that connects this
back to pick up the others at the same station on the return train. Please don’t mis-understand my attempt to break the doors and try to jump out while others got out. It was only for the team spirit!! The spiritual upliftment that some of us had, gave us all high spirits. The effort of the hosts to arrange vegetarian food specially for us must be appreciated. Mr Raj Khalid’s special eﬀorts in chaperoning us around- even to competition terminals - needs to be applauded. Looking forward to the next one!
port to the sea. The port of Ghent handles approximately 50 Million Tonnes of throughput per annum. This port specializes in handling of bulk cargoes - both dry and liquid bulk (64% of the cargoes handled). This port is a major European port for scrap and iron ore and fertilizers. The Arcelor Mittal steel factory is located in this Port and draws all its requirements of Coal and Iron ore through this port and exports steel products ,iron coils etc. from the port. This port handles a large quantity of timber and grains as well. It is interesting to note that the value addition achieved at this port is Euro 7 billion and generates employment both direct and indirect for 70,000 people. As this port is located inland, it is not aﬀected by tides and continuously oﬀers a minimum draft of 12.5 meters and vessels up to 95,000 Dwt can berth at this port. The pollution control methods employed in this port is a lesson for environmental z
protection and in spite of vast amounts of coal and iron ore being handled, there was very negligible coal or iron ore dust in the Port. The delegates had the privilege of a water front view of this Port and its various docks as the Port Authorities had arranged for a small boat to sail around the Port. The canal access to this port is from The Netherlands.
Port of Rotterdam This is one of the world’s largest Ports with the docks spread over a 40Km radius. This Port is owned by the City of Rotterdam and the Dutch State in a 50:50 partnership. This port is 700 years old and is still the major European hub. This Port can receive the largest Container vessels ever built as it can oﬀer a draft of 25 Metres. There is an Oil and Chemical Industrial area situated within the Port. Any VLCC or ULCC (Very Large Crude carrier or Ultra Large Crude carrier) can dock in the Port of Rotterdam. This is a landlord Port where the docks and on shore facilities are leased to shipping lines and other business enterprises. Currently it handles 12 Million TEUs of containerized cargo per annum. It has plans to raise it to 25-28 Million TEUs by 2030. There are 9 container terminal in Rotterdam operated by 4 companies AP Moller, ECT, Dubai Ports & Steinbucks. The Port directly employs 1100 people. It has 3 major Container Terminals. The oil refining facility is situated in the Port. ATF is pumped directly from Port of Rotterdam to Amsterdam Airport. Windmills inside the port currently generate 170 MW of power and this is to be scaled up to 500 MW. Rotterdam is the Gas hub and is keenly involved in promoting LNG as fuel for ships and is a fuelling hub for vessels
using LNG as a fuel. The Port, in order to reduce its carbon footprint, has successfully diverted the entire inland movement of Heineken beer from the brewery to the Port from Road to barges (100,000 TEUs per annum). Port of Rotterdam runs regular dedicated rails to Germany. Port is actively involved in storage of CO2 in deep sea caverns and has set itself a target to emerge as the CO2 hub in the world. 90 vessels arrive at Port of Rotterdam every day. The team also had the opportunity to visit the Car terminal operated by Broekman and visited the multi level storage facility, the Pre- Delivery Inspection facility, etc. and also saw the latest Hyundai i40 cars at this terminal.
Port of Antwerp This port was inspired by Napolean Bonaparte in the 17th Century. Unlike Rotterdam Port, the Antwerp Port is located inland and not on the coast. The Port area is 13057 hectares and boasts of 163 Km of quay lengths. (This is greater than all the Quay lengths in Indian Ports). It has a railway network of 1061kgs for cargo movement and oﬀers 556 hectares of covered storage.
out from the Port of Antwerp. The quay length to handle fruits in the port is 6 Km. Other major commodities handled are Sea Food, Forest Produce, Automotive, Dry and Liquid Bulk, and Break Bulk and containers. There are 2 container terminals operated by PSA (Port of Singapore Authority) and DP world. Members of the delegation were hosted for a water side tour of the main areas of the Port of Antwerp which lasted 3 hours. At Antwerp members also spent a day at the Break Bulk conference and exhibition and appraised themselves of state of the art equipments in handling Break Bulk cargoes. The Conference also provided great networking opportunities amongst 5000+ delegates who attended the Conference and Exhibition. The visit was indeed an eye-opener and has certainly made us more educative. I wish more members join such delegations in the future. Vincent De Saedeleer, VicePresident, Port Authority, Zeebrugge writes…….
Short Sea services is a major activity at Antwerp. The geographical location of the Port of Antwerp oﬀers a more efficient and economical option for cargoes meant for Scandinavian ports. Food is a major commodity handled at this port and there are extensive air conditioned storage facilities at various temperatures to facilitate the cool chain transportation.
We were honored and pleased to receive you at the Port Authority of Zeebrugge on Monday 13th May and we would like to thank you for your visit.
All fruits imported to Europe except Kiwi can be handled at the Port of Antwerp. Kiwi fruit is handled exclusively at the Port of Zeebrugge. The entire Banana requirement of Eastern Russia is sent
We are available for all further information you might need and in the meantime we wish you safe travelling.
It is our pleasure to send you a link to the Port Authority website where you can find lots of information on the port:Port of Zeebrugge
At Brussels Town Hall
MCCI delegates on the first leg of the tour
at Zeebrugge K. Saraswathi and J. Krishnan with Vincent De Saedeleer, Vice President, Port of Zeebrugge
Zeebrugge Port oďŹƒcial welcoming MCCI Team
Zeebrugge Port oďŹƒcial interacting with MCCI delegates
At dinner hosted by Flanders Investment & Trade
J. Krishnan presenting a memento to John Verzeele, Director, Inward Investment, FIT
Presentation on Port of Ghent to MCCI Delegates J. Krishnan and K. Saraswathi seen with Ghent port oﬃcial in the cruise
Car Terminal at Ghent Port
MCCI delegates with Port oﬃcials in Ghent boat tour
J. Krishnan, K. Saraswathi and S. Sankaranarayanan with Ghent port oﬃcials in the cruise J. Krishnan and K. Saraswathi presenting a memento to Frans van Keulen, Chief External Relations Oﬃcer, Port of Rotterdam
MCCI Team at Rotterdam Port Oﬃce
Team at Rotterdam Port
Worldâ€™s heaviest floating crane structure capable of handling 14,000 tonnes
A view of the Port
A view of the port.
Broekman Car terminal at Rotterdam Port
Danny Decker explaining the topography of Port of Antwerp while travelling in the cruise
A view of car trashing facility inside the port
MCCI delegates being welcomed in Antwerp Port OďŹƒce by Wim Dillen, Senior Business Development Manager, Port of Antwrep
S.G. Prabhakharan with Marc Peel, Chairman, POA at the dinner hosted by Port of Antwerp
Luc Arnouts, Chief Commercial OďŹƒcer, POA interacting with MCCI delegates
A view of Antwerpen Station
A view of Paris
Abu Dhabi World Financial Market Recently a Federal Decree was issued by the President of United Arab Emirates Sheikh Khalifa bin Zayed Al Nahyan as Ruler of the Emirate of Abu Dhabi on May 1, 2013 to create the Abu Dhabi World Financial Market (ADWFM), on Al Maryah Island formerly known as Sowwah Island of Abu Dhabi. The newly established Abu Dhabi World Financial Market (ADWFM) is the first Financial Free Zone in Abu Dhabi. ADWFM is located on Al Maryah Island near downtown Abu Dhabi and covers an area of around 1.6 million square meters. It will be Abu Dhabi’s fifth free zone (the others being Khalifa Industrial Zone Abu Dhabi, the media hub twofour54, Masdar City and Abu Dhabi Airport Free Zone). ADWFM is expected to be operational before end of 2013 with 100 per cent foreign ownership, tax and
capital repatriation. According to the text of the law: • The market is created to promote the right economic environment to attract financial investments • The market eliminates the time gap among global financial markets. • It provides all kinds of services for financial institutions, trade institutions and producer institutions for goods and minerals from all sources. • The new market helps on producing prices. It doubles the size of trading currencies and commodities and raw materials prices being issued. • It provides an integrated legal system that conforms with financial markets regulations as well as having its own courts, Registration Bureau & the Financial Services Regulations Bureau.
Trade Fairs & Exhibitions 20th-22nd June 2013
Malaysia Showcase Exhibition
29th, 30th and 31st August and 1st September 2013
This will be held at the Chennai Trade Centre. Malaysian companies from the following sectors will be featuring their products and services: - Automotive, parts and components - Building Materials - Infrastructure - Furniture - Education
23rd Sri Lanka International Gem & Jewellery Show
- Healthcare/Cosmetics For business meetings, please contact MATRADE, Chennai @ 24313722/24
FACETS Sri Lanka Organised by Sri Lanka Gem and Jewellery Association, this event will be held at the Sirimavo Bandaranaike Memorial Exhibition Centre, Colombo. Further details can be had from firstname.lastname@example.org
India Trade Promotion Organisation (ITPO) will be organising the following events overseas: 5-9 June 2013
11th Global Indian Festival @ Multi-product Kuala Lumpur, Malaysia show
30th June – 2nd July 2013
Summer Fancy Food Show @ New York, USA
June 30 -July 8, 2013
Dar-es-Salaam International Trade Fair @ Tanzania
INXS Technologies Ltd to
July 24-26, 2013
34th India Garment Fair @ Osaka, Japan
Market Simplified India Ltd.
July 24-26, 2013
24th India Home Furnishing Fair @ Osaka, Japan
Doha Trade Fair @ Doha Qatar
Multi products show
Name Change TTK LIG Limited to
TTK Protective Devices Ltd.
ECONOMIC REVIEW CONTENTS 1. 1.1 1.2 1.3
Macroeconomy Gross Domestic Product, Q4 2012-13 Quarterly Report on Public Debt Management, January-March 2013 Central Fiscal Situation for April 2013
2. 2.1 2.2 2.3
Corporate Sector Index of Eight Core Industries, April, 2013 Consumer Price Index Numbers for Industrial Workers, April 2013 Sectoral Deployment of Bank Credit – April 2013
1. Macroeconomy 1.1 Gross Domestic Product, Q4 2012-13 GDP at factor cost at constant (2004-05) prices in the year 2012-13 is estimated at Rs. 55,05, 437 crore (as against Rs. 55,03,476 crore estimated earlier on 7th February, 2013), showing a growth rate of 5.0 percent over the First Revised Estimates of GDP for the year 2011-12 of Rs. 52, 43,582 crore. In the agriculture sector, the third advance estimates of crop production showed a slight upward revision as compared to their second advance estimates in the production of rice (104.22 million Tonnes from 101.80 million Tonnes), wheat (93.62 million Tonnes from 92.30 million Tonnes) and sugarcane (336.15 million Tonnes from 334.5 million Tonnes) for the year 2012-13. Due to this revision in the production, ‘agriculture, forestry and fishing’ sector in 2012-13 has shown a growth rate of 1.9 percent, as against the growth rate of 1.8 percent in the Advance Estimates. In the case of ‘mining and quarrying’, the Index of Industrial Production of Mining (IIP-Mining) registered a decline of 2.5 percent during 2012-13, as against the decline of 1.5 percent during AprilNovember, 2012. Production of coal and crude oil registered growth rates of 3.3 percent and (-) 0.6 percent in 2012-13
whereas during April to December, 2012, the growth rates were 5.7 percent and (-) 0.4 percent. The growth of ‘mining &quarrying’ is now estimated at (-) 0.6 percent, as against the Advance Estimate growth of 0.4 percent. Similarly, the IIP of manufacturing registered a growth rate of 1.2 percent during 2012-13, as against the projected growth rate of 1.9 percent for AprilMarch, 2012-13 for the Advance Estimates. Due to this, the growth of ‘manufacturing’ sector is now estimated at 1.0 percent, as against the Advance Estimate growth of 1.9 percent. The key indicators of construction sector, namely, cement and consumption of finished steel registered growth of 5.6 percent and 3.3 percent, respectively in 2012-13 as against 6.1 percent and 3.9 percent, respectively during April-December 2012. The growth of the sector is revised downward to 4.3 percent as against 5.9 percent in the Advance Estimates. The key indicators of banking, namely, aggregate bank deposits and bank credits have shown higher growth of 14.3 percent and 14.2 percent, respectively during 2012-13 over the corresponding period in 2011-12, as compared to growth of 11.1 percent and 15.2 percent as on December 2012. Indicators of Railways sector, namely, Net Tonne Kilometres and passenger Kilometres have shown growth of 0.3
and 2.4 percent respectively during 2012-13 .The Trade, hotels and transport sector have registered a growth of 6.4 percent in 2012-13 as against 5.2 percent in the advance estimate released in February, 2013 as the private corporate sector registered significant growth in the Trade, hotels and restaurant sector in 2012-13. The Gross National Income (GNI) at factor cost at 2004-05 prices is now estimated at Rs. 54,49,104 crore during 2012-13, as against the previous year’s First Revised Estimate of Rs. 51,96,848 crore. In terms of growth rates, the gross national income is estimated to have risen by 4.9 percent during 2012-13, in comparison to the growth rate of 6.4 percent in 2011-12. The per capita net national income in real terms (at 2004-05 prices) during 2012-13 is estimated to have attained a level of Rs. 39,168 (as against Rs. 39,143 estimated on 7th February, 2013), as compared to the First Revised Estimates for the year 2011-12 of Rs. 38,037. The growth rate in per capita income is estimated at 3.0 percent during 2012-13 as against 4.7 percent during 2011-12.
1.2 Quarterly Report on Public Debt Management, January-March 2013 For Fiscal Year 2012-13 (FY13), Gross and Net Market Borrowings were higher than previous year by 9.4 per cent and 7.1 per cent respectively. Auctions during Q4 of FY13 were held in accordance with the pre-announced calendar apart from the cancellation of one auction Rs.12,000 crore scheduled in February 2013. The weighted average maturity of dated securities issued during Q4 of FY13 at 13.50 years was higher than 13.38 years in the previous quarter while weighted average yield (cut-oﬀ) of issuance during the quarter declined to 7.95 per cent from 8.26 per cent in Q3. Weighted average yield of
ECONOMIC REVIEW issuance during FY13 at 8.36 per cent was lower than 8.52 per cent in the previous fiscal year, while weighted average maturity at 13.50 years was higher than 12.7 years in FY12. The cash position of the Government during Q4 was comfortable and remained in surplus mode during the quarter. The total public debt (excluding liabilities under the ‘Public Account’) of the Government at end-March 2013 increased on a quarter-on-quarter (Q-o-Q) basis by 0.4 per cent compared with an increase of 4.0 per cent in the previous quarter (Q3 of FY13). Internal debt constituted 91.1 per cent of public debt and marketable dated securities accounted for 75.0 per cent of total public debt. About 31 per cent of outstanding dated securities have a residual maturity of up to 5 years, which implies that over the next five years, on an average, slightly more than 6.0 per cent of outstanding stock needs to be rolled over every year. In the secondary market, bond yields eased during the quarter due to policy easing by a total of 50 bps as well as OMO purchases by RBI, decline in inflation rate, slowdown in GDP growth rate and reduced supply of securities. Trading volumes increased significantly during the quarter driven by falling yields. Outright transactions during FY13 increased by 89.0 per cent over FY12. The annualised outright turnover ratio for Central Government dated securities for Q4 of FY13 went-up to 6.0 from 3.2 during the previous quarter.
1.3 Central Fiscal Situation for April 2013 Centre’s fiscal deficit stood at Rs. 5.2 lakh crore which is 94.0 per cent of the fiscal deficit target during the financial year 2012-13. In the corresponding period of 2011-12, the fiscal deficit stood at 98.9 per cent of the Budget Estimate. Estimate of the 2012-13 fiscal deficit as percent of GDP accounted for 4.9 per cent of GDP at current price.
For April-March 2013 revenue deficit stood at Rs. 3.91 lakh crore that is 92.9 per cent of the Budget Estimate, against 99.9 per cent in the corresponding period last year. Plan expenditure stood at Rs. 4.14 lakh crore which is 96.5 per cent of the budgeted Rs. 4.29 lakh crore. In the year-ago same period, Plan expenditure stood at 96.7 per cent of the Budget Estimate. Non-Plan expenditure in April-March stood at Rs. 9.95 lakh crore, 99.4 per cent of the Budget target of Rs. 10.01 lakh crore for the entire financial year. In the year-ago period, it stood at 100.0 per cent of the Budget Estimate. Government’s revenue collection stood at just Rs. 8.78 lakh crore which is 100.8 per cent of the Budget estimate of Rs. 8.71 lakh crore, while tax collections stood at Rs. 7.41 lakh crore, 99.9 per cent of the Budget estimate.
2. Corporate Sector 2.1 Index of Eight Core Industries, April, 2013 (see table) 2.2 Consumer Price Index Numbers for Industrial Workers, April 2013 The All-India CPI-IW for April, 2013 rose by 2 point and pegged at 226 (two
hundred and twenty six). On 1-month percentage change, it increased by 0.89 per cent between March and April compared with 1.99 per cent between the same two months a year ago. The largest upward contribution to the change in current index came from Food group which increased by 2.08 per cent, contributing 2.07 percentage points to the total change. This was followed by Fuel & Light group with 0.91 percent increase contributing 0.12 percentage points to the change. At item level, largest upward pressure came from Rice, Wheat & Wheat Atta, Arhar Dal, Milk (Cow), Ginger, Root & Green Non-leafy vegetables, Tea Leaf, Tea (Readymade), Snack Saltish, Cigaratte, Electricity Charges, Medicine (Allopathic) etc. However, this was compensated by Mustard Oil and Petrol putting downward pressure on the index. The year-on-year inflation measured by monthly CPI-IW stood at 10.24 per cent for April, 2013 as compared to 11.44 per cent for the previous month and10.22 per cent during the corresponding month of the previous year. Similarly, the Food inflation stood at 12.39 per cent against 13.21 per cent of the previous month and 10.66 per cent
Growth Performance of Eight Core Industries (Base: 2004-05=100) April 2013 Sector
Source: Oﬃce of Economic Adviser, Ministry of Commerce & Industry, Govt. of India.
during the corresponding month of the previous year.
Gross Bank Credit by Major Sectors Sector
2.3 Sectoral Deployment of Bank Credit-April 2013 On a year-on-year (y-o-y) basis, nonfood bank credit increased by 13.8 per cent in April 2013 as compared with the increase of 16.6 per cent in April 2012. •
Gross Bank Credit
Apr.20, 2012 / Apr.22, 2011
Apr. 19, 2013 / Apr. 20, 2012
Industry (Micro & Small, Medium and Large )
Commercial Real Estate
Non-Banking Financial Companies (NBFCs)
Food Credit Non-food Credit
Credit to agriculture increased by 10.5 per cent in April 2013, as compared with the increase of 14.1 per cent in April 2012. Credit to industry increased by 15.5 per cent in April 2013 as compared with the increase of 19.9 per cent in April 2012. Deceleration in credit growth to industry was observed in all the major subsectors, barring food processing, wood & wood products, cement & cement products, chemicals & chemical products, infrastructure, paper & paper products, glass & glassware, textiles and leather & leather products.
Outstanding as on Rs. billion
Agriculture & Allied Activities
Source: RBI 2013 as compared with the increase of 15.0 per cent in April 2012. •
Credit to the services sector increased by 11.6 per cent in April
Credit to NBFCs increased by 5.2 per cent in April 2013 as compared with the increase of 34.4 per cent in April 2012.
New Members The Chamber welcomes the following new members into its fold: Iﬀco Tokio General Insurance Co.Ltd. Business: General Insurance
NAV Indus Food Machines Pvt.Ltd. Business: Manufacture of Plant & Machineries & spares for Poultry feed, cattle feed, etc.
PRIST University (aﬃliated member) Business: Educational Institution
British Business Group Chennai Trust (aﬃliated member) Business: Forum/Network of UK & UK related companies
Personal loans increased by 14.8 per cent in April 2013 as compared with the increase of 12.8 per cent in April 2012. Source : ASSOCHAM
Forthcoming Programmes 21st June 2013 (4 to 6 p.m.) Programme on Doing Business with Indonesia
Venue: Hotel Raintree, St. Mary’s Road, Chennai 600018.
25th June 2013 Annual General Meeting 10.15 am Business Session 11.30 am Public Session
Venue: Taj Coromandel Hotel, Chennai
27th June 2013 (9.30 a.m. to 4 pm) Management Development Programme on Occupational Health, Safety and Environment
Venue: Hotel Savera, Dr Radhakrishnan Salai, Chennai 600004.
29th June 2013 (9.00 a.m. to 4 pm) Management Development Programme on PF, ESI Contract Labour, etc.
Venue: Hotel Savera, Dr Radhakrishnan Salai, Chennai 600004.
Meeting with H.E. Mr. Alphonsus Stoelinga, Ambassador of The Netherlands to India
E-Filing of ST-3 Returns Demo & Interaction
R.Periasami, IRS , Commissioner of Service Tax delivering the Inaugural Address. Seated K.Vaitheeswaran and K.Saraswathi
A view of the Meeting
Visit to Chennai Container Terminal Ltd (CCTL)
A view of the audience
Programme on Lean Awareness & its importance MCCI team members interacting with oﬃcials of CCTL
A group photograph of the delegation with CCTL oﬃcials A view of the Meeting
Visit of Delegation from the Province of San Luis, Argentina
The visitors with the Coﬀee Table Books presented to them
B2B Meetings in progress
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