Wish List to the New Government of Tamil Nadu The Madras Chamber conveys its hearty wishes to the Hon’ble Chief Minister Selvi J Jayalalithaa for the commendable victory in the recent TN Elections 2016. It is definite that with re-election and becoming the CM of Tamil Nadu once again, the stage is set for fulfilment of the targets of Vision 2023 and GIM 2015. Historically, Tamil Nadu has punched above its size in the economic sweepstakes at the national level, and the opportunity is ripe for Tamil Nadu to make its mark at the international level as well. As one of the responsible Chambers and as a credible voice of the Trade and Industry, the Chamber had a detailed brainstorming with the senior representatives of the member Industries on what the business and industry need from the State Government to take the State of Tamil Nadu to a more competitive position among the various other States . Arising out of the discussions, a few critical points were identified and a press meet was organised to highlight the imperatives for the new government. The meeting was well attended by numerous representatives from both electronic and print media, and I should say that we could well voice our expectations through many of them. The first priority was given to GST wherein the Government was requested to consider a whole hearted support for implementation of GST. Besides, being a leading manufacturing State in India, TN is also a State that leads in value addition and final consumption of goods and services. Therefore, implementation of GST will help TN consolidate its growth even as India becomes a unified market. There are several interim and pre-requisite steps for the smooth implementation of GST, for which the Chamber is well equipped to provide the necessary inputs and feedback from industry to the Government.
Apart from these major points, the other points in the wish list includes improving e-Governance and IT interface between the Government and business/citizens that would ensure transparency and improve the ease of doing Business. Further, the Government can project its action plan, investments, approvals, VAT approvals and other Industry related approvals through the Portal in a transparent manner, which would help the investors to understand the present industrial climate in Tamil Nadu. We have urged the Government to protect the interests of the MSMEs who have emerged as a vibrant and dynamic sector of the Indian Economy and foster their growth. Reinstating purchase and price preference to MSMEs and TANSIDCO allotting plots/sheds at affordable prices to the MSMEs and not on market price, would be beneficial to maximum number of SMEs who cater to the needs of big manufacturing establishments by being part of their supply chain. Corporate have issues/concerns while dealing with the Government, particularly in the areas of taxes, finance, approvals, power, pollution control, infrastructure etc. Hence the common platform to represent and highlight their issues and problems to the Government has been the Chambers. It is therefore important that the Government interacts with Chambers like ours frequently to understand the ground issues and to act immediately to redress the same. The Chamber has suggested that the Government machinery including the Chief Minister, Ministers and Senior Officials should meet the Chambers, periodically in order to foster the industrial development and economic development of the State. In the post liberal era, TN has witnessed a big explosion in the growth of auto and IT sectors. The new Government has been requested to identify the next set of sectors that would thrive in the domestic and export markets in the coming years. It could be agro based industries, aero space, electronic hardware, and defence and formulate policies for supporting their growth. To make Chennai highly resilient and deal with disaster, it would be ideal to maintain the water bodies and have proper drainage and storm water drains in the city. Further, an efficient solid waste management system should be put in place incentivising clean practices. With optimism and trust, that our suggestions would be considered favourably, we have presented the above, to the Government through a press meet which was covered widely in newspapers and television. I would like to place my sincere thanks to the members for their contribution, especially the Expert Committees who had given their suggestions with respect to their respective sectors.
From the President’s desk
Secondly, we are all aware that the power situation in Tamil Nadu has improved tremendously in the recent years and industry looks forward to a sustainable uninterrupted 24 X 365 quality power supply in the years ahead. The Chamber strongly feels that TANGEDCO should be speedily restructured to regain its prime position in the Needless to add, that the Chamber would be happy to join country, so that industrial progress of the state hands with the Government of Tamil Nadu in its mission continues unhindered. to take the State to the “Numero Uno” position and would participate actively in the promotion and growth of the Thirdly, the Chamber stressed on the development Industries. of programmes on Skill Development, which is part of Vision 2023 that would make the SMEs Best wishes, vibrant and establish Tamil Nadu as the leading innovation and knowledge centre of India. Tamil Nadu also has the highest number of higher educational institutions in the country, all of which make the State a prime candidate for SG.Prabhakharan becoming the knowledge capital of India. President
Chamberâ€™s Activities SOWING THE SEEDS 2nd April 2016
Visit to Coastal Guard Ship Sarang A team of representatives from the Chamber visited the Coastal Guard Ship Sarang on April 2, 2016. It was a memorable experience for the team who had a guided tour of the entire ship. They had a sumptuous dinner with the hosts from Sarang.
12th April 2016 Special focus on AEO & Single Window Project
he Chamber, under the auspices of the Logistics Committee, organised a Seminar with Special focus on Authorised Economic Operator (AEO) and Single Window Project. This was a unique program in which the business community could get a clear understanding of the schemes from the experts and derive innumerable benefits by making optimum use of these schemes. Mr. Uday Bhaskar Reddy, Chairman, Expert Committee on Logistics welcomed the speakers and the participants and gave a brief introduction about the importance of Authorised Economic Operators.
A view of the audience
Mr. K. Raghu N Chary, Principal Commissioner of Customs, Chennai VII Commissionerate was a
Mr. N Sankaranarayanan, Dy. Commissioner, Customs & Incharge of EDI addressing the audience.
Mr. U.Udayabaskar Reddy, Chairman, MCCI Logistics Committee welcoming the Chief Guest, Speakers and gathering. Others seen are (l to r : Mr.K.Raghu N Chary, Principal Commissioner of Customs, Chennai VII Commissionerate, Dr.K.Venkat Ram Reddy, IRS., Additional Director, Directorate General of Performance Management, Customs, CE & ST, Chennai, Mr.Pankaj Gadhia, Co-Chairman, Logistics Committee & Mr. N Sankaranarayanan, Dy. Commissioner, Customs & Incharge of EDI
special invitee who attended the meeting. He briefed the participants about the support that would be provided by the Customs for smooth transactions in EXIM Trade . Dr.K.Venkat Ram Reddy IRS, Additional Director, Directorate General of Performance Management,
Chamber’s Activities Customs, Central Excise & Service Tax, Chennai addressed the participants on the Authorised Economic Operators Scheme and encouraged the members to apply for the same. Mr. N Sankaranarayanan, Dy. Commissioner, Customs & Incharge of EDI, Chennai addressed the participants on the Indian Single Window Project in
Customs which has been made effective from April 1, 2016. He made a detailed presentation on the advantages of the Single Window project. Mr. Pankaj Gadhia, Co Chairman Expert Committee on Logistics proposed the formal vote of thanks. The program was attended by 70 participants and the feedback was excellent.
16th April 2016 Completion of IR Course
he Industrial Relations Course, which commenced on Jan 30, 2016 under the auspices of the Legal Committee headed by Mr. Anand Gopalan, concluded on 16th April 2016. The classes were conducted on every Saturday in the Conference room of the Chamber with IR Experts as core resource persons. Mr. Anand Gopalan, Mr. Akbar Khan, Mr. Sridhar Rajagopalan and Mr. Anto Vincent conducted the sessions.
During the valediction, Ms. Kalaivani, Joint Commissioner of Labour attended the meeting. Mr.T.S.Gopalan, Senior Advocate, Madras High Court, Chief Guest, addressed the participants and delivered the certificates to the 25 participants. Special awards were given to participants who managed to achieve 100 percent attendance. Based on the positive feedback, the Chamber has plans to repeat this program for the benefit of members.
29th April 2016 Workshop on Digital Marketing, Jointly organised with Business Standard
he Chamber, in association with Business Standard Ltd. organised a program on “Digital Marketing” on 29th April 2016 at the Conference room of the Chamber. This was part of the series of training programs organised by Business Standard under its banner “Primer” for the Trade Associations and Industry bodies focussing on skill development, particularly for SMEs. Mr. Barath Surendran was the Trainer and 18 participants took part in this program.
Participants along with the Speaker, Business Line & MCCI Official.
Chamber’s Activities 29sh April 2016
Session on Service Tax and Cenvat Credit – Recent Changes
he Chamber organised a timely Session on “Service Tax and Cenvat Credit – Recent Changes” to understand the amendments and impact of the recent changes on 29th April 2016 at Hotel Savera. Mr. K. Vaitheeswaran, Advocate, GC Member was the resource person. He made a detailed presentation which received a positive feedback from 60 + participants.
Mr.K.Vaitheeswaran making a presentation on Service Tax and Cenvat Credit – Recent Changes.
2nd June 2016
Discussion on Amendments in Warehousing Provisions under the Customs Act
he Chamber jointly with NACFS, under the auspices of the Logistics Committee organised a “Discussion on Amendments in Warehousing Provisions under the Customs Act” on 2nd June 2016 at the e hotel, Chennai. The Finance Act 2016 which was recently passed by both the Houses of Parliament, made significant changes under Chapter IX of the Customs Act 1962 particularly on Warehousing Provisions, effective from 14th May 2016. As these changes and Amendments would have a tremendous impact on Logistics, manufacturing, importers & exporters, CFS, Airline Operators, Customs Brokers and other related segments in the supply chain management, this discussion with the Senior Officers of the Customs was organised.
Mr.Balachandra Datta, Member, MCCI General Committee welcoming the Chief Guest Mr.P.K.Das, IRS, Chief Commissioner of Customs, Chennai with a bouquet of flowers.
Mr. Balachandra Datta, Vice President, Hyundai Motor India & Member, GC Committee gave a formal welcome address and briefed about the importance of this discussion. The Chief Guest Mr. P.K.Das, IRS Chief Commissioner of Customs in his inaugural address
A view of the audience
Chamber’s Activities stressed on the importance given to Warehouse keepers by the Government of India and described as to how they should take up the responsibility with due diligence. Mr. Ranjan Kumar Routray, IRS, Principal Commissioner, Chennai Airport addressed the audience on the important changes that would impact warehouse keepers Mr. Raghu N Chary, IRS, Principal Commissioner, Air Cargo, stressed on the responsibilities entrusted upon warehouse keepers by the new provisions of the act in his address to the participants. The team of Officers made 2 detailed presentations on the warehousing amendments which was followed by a lively interaction. Mr. M. S. Arun, Chairman, NACFS proposed the formal vote of thanks.
Mr.K Raghu N Chary, Principal Commissioner of Customs addressing the gathering. Others seen are (l to r : Mr.U.Udayabhaskara Reddy, Chairman, MCCI Logistics Committee, Mr.M.S.Arun, Chairman, NACFS – Chennai Chapter, Mr.Ranjan Kumar Routray, IRS, Principal Commissioner – Airport, Mr.P.K.Das, IRS, Chief Commissioner of Customs, Chennai Customs Zone & Mr.B.C.Datta, Member, General Committee).
The program was attended by 110 participants and there was positive feedback.
4sh June 2016
Workshop on Domestic Enquiry @ Coimbatore(outreach program)
he Chamber, under the auspices of the HR & IR Committee organised a “Workshop on Domestic Enquiry at Coimbatore on June 4, 2016. This is an outreach program which was a repeat of the workshop held in Chennai.Mr. Muthu Velappan, Senior VP, HR, Sakthi Sugars delivered the key note address. Mr. Akbar Khan, HR Consultant, Mr.R. Malavannan, Chief People Office, PRICOL and Mr. Anand Gopalan, Chairman, HR & IR Committee made presentations to the 20+ participants. It was well received by the participants who had expressed their desire for more such programs.
Mr.S.Sankaranarayanan, Deputy Secretary, MCCI welcoming the Chief Guest and gathering. Others seen in picture are (l to r : Mr.Akbar Khan, Sr.HR Consultant, Chennai, Mr.Muthu Velappan, Sr.Vice President, HRD, Sakthi Sugars Ltd & Former Chairman, NIPM, Coimbatore & Mr.Anand Gopalan, Advocate & Partner, T S Gopalan & Co., Chennai.
Chamber’s Activities 17sh June 2016
Seminar on Transfer Pricing
he Chamber under the auspices of the Direct Taxes Committee organised one day Seminar on Transfer Pricing on 17th June 2016.
Mr.Sriram Seshadri, Chairman, MCCI Expert Committee on Direct Tax welcoming the gathering.
Mr. Soumitra Kumar Chakraborty, Director – TP, PWC, Mr. Ganesh Krishnamurthy, Director, BMR & Associates LLP making a presentation
The objective of this seminar was to understand how to manage the challenges in Transfer pricing in today’s business scenario and the impact of recent trends in Transfer pricing audits apart from other aspects of Transfer Pricing.
Mr Ashwin Vishwanathan, Exec. Director, TP, E&Y LLP
Mr.Jasdeep Singh, IRS., Commissioner of Income Tax, Transfer Pricing, IT Dept, Chennai interacting during the Q&A Session with audience.
The Resource persons were Mr. Soumitra Kumar Chakraborty, Director – TP, PWC, Mr. Ganesh Krishnamurthy, Director, BMR & Associates LLP, Mr. Jasdeep Singh IRS,
Mr.S.Sridhar, Director, TP, BSR & Co., LLP addressing the audience
Commissioner of Income Tax – Transfer Pricing, Income Tax Department, Chennai and Mr. Ashwin Viswanathan, ED,TP – E&Y. Mr. Jasdeep Singh answered the queries of all the participants in an exclusive one hour session moderated by Mr. Ashwin Viswanathan. The seminar was attended by 30 participants who gave a positive feedback.
24sh June 2016
Visit to Grundfos Pumps India Pvt. Ltd.
he Chamber under the auspices of the Expert Committee on Energy & Environment and under its Sustainable Chennai Forum(SCF) arranged an Exposure Visit to Grundfos Pumps India Pvt Ltd’s headquarters at Chennai, on Friday, June 24, 2016. This visit was arranged to have a firsthand knowledge on the good practices followed by Grundfos in maintaining the sustainability of their facilities, and understanding the Green Building Advantages. Mr.N.K.Ranganath, Managing Director, Grundfos made a presentation on the activities of Grunfos followed by an interaction. There was a guided tour of their facilities and the visit concluded with lunch
MCCI members visit to Grundfos.
hosted by Grundfos. The 18 participants from member companies gave a positive feedback.
Chamber’s Activities TOGETHER WE GROW 18th April 2016 4th Trade Meet with KPL
he 4th Trade Meet was jointly organised by the Chamber with Kamarajar Port Ltd on April 18, 2016 under the auspices of the Logistics Committee at Hotel GRT Grand, Chennai. The objective of the meeting was to convey the expectations and needs of the users of the Port and other stakeholders to the Port Authorities and to understand the upgraded facilities and services of Kamarajar Port Ltd. This meet was to facilitate interaction between the port authorities and the port users to enhance EXIM trade by taking advantage of the various facilities offered by the Port.
Mr.S.G.Prabhakharan, President, MCCI welcoming the gathering and speakers
Mr. S.G.Prabhakharan, President, MCCI welcomed all the representatives of the EXIM Trade. Mr.M.A.Bhaskarachar, CMD, Kamarajar Port Ltd. gave an account of the Kamarajar Port growth story and its future projected trajectory. Mr. V. Krishnaswamy General Manager, KPL made a brief presentation on KPL’s achievements. In the technical session, Mr. N.Suresh, Vice President, Chettinad International Bulk Terminal made a presentation on the proposed multi cargo terminal at KPL, major components of the project, current progress, the potential cargo centres which would benefit from this project and the Port users advantage in cargo operation. Mr Sanjay Kumar, Director – Operations, Kamarajar Port Ltd, made a presentation on the mode of Development of Free Trade Warehousing & Productivity Improvement in KPL and the salient features of the proposed free Trade warehousing zone. Capt C.V.Ramnath, Business Head, Adani Ennore Container Terminal Pvt.Ltd made a presentation on the connectivity and infrastructure facilities of the Adani Ennnore container terminal.
Mr.M.A.Bhaskarachar, Chairman & Managing Director, Kamarajar Port Ltd giving an overview of the Trade Meet
A view of the audience
Mr.M.Gunasekaran, General Manager – Finance, Kamarajar Port Ltd. proposed the formal vote of thanks There were vibrant interactions by more than 60 participants.
Chamber’s Activities 19th April 2016
Seminar on The Changing Landscape of Arbitration in India with NPAC
he Chamber in association with Nani Palkivala Arbitration Centre, Chennai organised a Seminar on “The Changing Landscape of Arbitration in India” on Tuesday, 19th April 2016 at Hotel Raintree Anna Salai, Chennai-600035. The objective of this Seminar was to understand and discuss the emerging trends of Arbitration in India, to understand the views from different stakeholders and also to make a critical analysis of Arbitration and Conciliation Amendment Act 2015. Mr. S.G. Prabhakharan welcomed the participants. Mr. M.S. Krishnan Senior Advocate & Director, NPAC gave an overview of the Arbitration and introduced the themes to be discussed. The Chief Guest Justice Mr. Ramasubramanian’s address was elaborate with anecdotes and case laws. A few case laws brought out the complexity of legal issues when agreements are drawn. He concluded his address by stating that if sound judgements are passed on cases meting justice by the Judges, then people will trust the Judges to pass good judgements as Arbitrators and will resort to Arbitration. Mr. Anand Gopalan, Advocate, Chairman, Legal Committee, MCCI proposed the formal vote of thanks. In the first session on Arbitration and Conciliation Amendment Act 2015 – Impacts, Mr. N.L. Rajah, Advocate, drew a comparison between Arbitration
Mr. N.L.Rajah, Advocate interacting with the audience. Others seen are Mr. Rahul Bajaj, Advocate (R) & Mr. Anirudh Krishnan, Advocate (L)
Mr. M.S.Krishnan, Senior Advocate and Director, NPAC giving an overview of the Seminar
Mr.T.T.N Sudharshan, Joint General Manager – Legal, L&T Construction addressing the audience
Mr.K.Pradeep, Manager – Legal, Sundaram Clayton Ltd. addressing the audience
and Panchayats and explained the advantages of Arbitration. Mr.Rahul Balaji, Advocate gave a succinct analysis of impact of the Arbitration Act while Mr. Anirudh Krishnan, Advocate in his presentation insisted upon Neutrality, cost and speed to streamline the arbitration process.
Ms Madhri Guruswamy introducing the Panelists. Other Seen are (l to r – Mr.K.D.Arcot, Engineer & Arbitrator & Hon’ble Justice Ms.Prabha Sridevan (Retd.,) Judge, Madras High Court
Chamber’s Activities In the Second Session on Effects of Arbitration Amendment Act –Arbitrators Perspective, Mr. K.D. Arcot, Engineer and Arbitrator made a detailed analysis of the Act based on what is good, not so good and what is missing.
Sudharshan, Joint General Manager – Legal, L & T Construction made a presentation on the issues prior to amendment with case laws, and on the impact of Arbitration process post amendment.
Hon’ble Justice Ms.Prabha Sridevan (Retd), Judge, Madras High Court addressed on how an Arbitrator should dispose the cases and explained about the cooperation required from both sides seeking arbitration.
Mr. K. Pradeep, Manager – Legal, Sundaram Clayton Ltd. elaborated on the issues of agreement while entering in a contract for Arbitration and added that capitalising on the leverages provided in the arbitration law, a comprehensive Arbitration Agreement can be entered into between the parties .
In the third Session on The Arbitration Process – “Is there any light at the end of the Tunnel?”, Mr. T. T. N.
There were 40 participants who gave an excellent feedback.
23rd April 2016
International Conference on Connecting Voices to Combat Corruption
he Chamber, in association with a few like minded organisations such as, Governance Regulation Anti Corruption through Education (GRATE), Anti Corruption Academy, (ACA) New Delhi and Institute of Directors (IOD) organised an International Conference on “Connecting Voices to Combat Corruption” on 23rd April 2016 at Hotel ITC Grand Chola, Chennai. The aim of this conference was to create a common platform to discuss this important subject among the different stakeholders including policy makers, businesses, professionals, Academia, and the civil society and suggest an action plan. The Conference had 4 technical Sessions where eminent speakers shared their perceptions and prescriptions for collective action to combat this systemic issue.
Mr. S.G. Prabhakharan, President, MCCI (extreme right) and Ms. K. Saraswathi, Secretary General,MCCI (extreme left) with the dignitaries for the Inaugural function L to R : Mr. P. Murari, IAS Retd, President, IOD TN State, Dr.S. Satyamoorthy IAAS Retd, Chairman, GRATE, Justice Mr. M. M. Sundresh, Madras High Court, Mr. R. Swaminathan, IOD, Mr. G. Rajagopalan, Additional Solicitor General of India, Madras High Court
about GRATE and felt that the next generation have to be educated to fight corruption.
Mr.S.G. Prabhakharan welcomed the audience and set the tone for the Conference by giving a few ideas as to how to minimize corruption by using cameras in public places which is done by other countries and secondly, e-dealings which would minimise human intervention.
Mr. P. Murari, IAS (Retd), President, IOD, TN State Chapter gave the special address. He compared the corruption that is present in all the other countries and felt that corruption is a global phenomenon. He added that it would be worthwhile to fight corruption, if we could reduce and minimise the same first and then work towards totally eliminating it.
Dr. S. Satyamoorthy IAAS Retd. Chairman, GRATE gave an overview of the Conference. He gave a brief
T h e Ke y n o t e a d d r e s s wa s d e l i ve r e d b y Mr. G. Rajagopalan, Additional Solicitor General of
Chamber’s Activities India, Madras High Court. He stated that corruption exists everywhere and can paralyse the society. He quoted a few case laws to elaborate on corruption. He added that every professional should advise their clients to comply with law and there is a possibility that 50% of the corruption would come down. Further, the time limit for taking action against corruption by the Judiciary would have an enormous effect on bringing down corruption. Hon’ble Justice Mr. M. M. Sundresh, Madras High Court in his inaugural address stated that a social change is required to address corruption. He addressed on the misuse of power by the legislature & judiciary. He concluded by saying that mindset of persons should change to bring about a change in our society.
Mr.G.Rajagopalan, Additional Solicitor General of India, Madras High Court delivering his Keynote address.
Mr. Umar Siddique, President, Anti Corruption Academy proposed the vote of thanks. In the Business Session 1 on the topic “Business Ethics & Board Room Governance” the following eminent speakers shared their views with Mr. M.S.Sundararajan, Chairman IOD, TNSC and Former CMD, Indian Bank chairing the Session. •
Dr.Bhaskar Chatterjee, DG & CEO, Indian Institute of Corporate Affairs
Mr Nikos Passas, International Anti Corruption Academy, Vienna
Mr.G.Sivasubramanian, Associate Director, India Ratings & Research Pvt. Ltd.
In Business Session II on the topic, Anti Corruption – Legal Framework & Challenges, Mr. T. S Krishnamurthy, Former CEC, GoI chaired the session and stated that enforcement of laws is the weakest link in the fight against corruption.
Mr.G.Sivasubramanian making a presentation on Business Session-1. Others seen are (l to r : Dr.Bhaskar Chatterjee, Mr M S Sundararajan, Mr Nikos Passas)
Mr T.S.Krishnamurthy, IAS (Retd.) interacting with audience. Others seen are (l to r: Mr.Mohan Parasaran, Dr.Saleem Ali & Mr.Le Moignan)
The speakers included: •
Mr Le Moignan, Director, International Governance and Risk Institute
Dr K. Saleem Ali, Anti Corruption Academy
Mr. Mohan Parasaran, Senior Advocate
In Business Session III, on the topic, Securities, Investment & Market - Good Governance, Mr. V. S. Sundaresan, CGM (Investigation), SEBI, Mumbai chaired the session and the Speakers were •
Mr.Richard Stockdale, CEO of Lloyds TSB Global Services
Mr.R.Ramamurthy interacting with audience during the Business Session 4 (l to r) Rev.Dr.N.Casimir Raj & Mr.R.K.Raghavan
Chamber’s Activities •
Mr.M.R.Venkatesh, Partner, GSV Associates
to be commended.
Mr Sandeep Baldava, Partner & Leader (South) Fraud Investigation & Dispute Services, Ernst & Young
Dr. Satyamoorthy thanked all the speakers and agreed to join with likeminded individuals and organisations to continue fighting against corruption and enhance governance.
In Business Session IV, Mr. R.K. Raghavan, Former Director, CBI chaired the session on Crime, Law and Social Change. The speakers were •
Rev. Dr. N.Casimir Raj SJ, Founder & President, LIBA. –
Mr. R. Ramamurthy, Chairman, Cyber Security & Privacy Foundation –
Mr. Carroll B Correll, Principal, Training and AntiCorruption Company (CORSTRA, LLC) summed up the session and stated that the Organisers have taken a positive step to combat corruption which is
The entire session brought out important aspects such as to fight corruption, irrespective of laws, the mindset of individuals has to change, and awareness is necessary for the next generation to understand how corruption can affect the economy. It has to be imbibed in every individual to fight against corruption to bring a better society. The feedback for this program was positive and it was felt that such programs are an eye-opener to bring the necessary awareness about the existing systems and ways to deal with it. The meeting was well attended and the interactions were of highest order.
26th April 2016
Seminar on Doing Business with Netherlands
he Chamber along the Netherlands Business Support Office, Chennai (NBSO) organised a CEO lunch session with Senior representatives from select sectors with Mr.Alfonsus Stoelinga Netherlands Ambassador during his visit to Chennai to Chennai along with a team of 3 members.
Additional Chief Secretary Industries Department, GoTN. Mr. C.V.Sankar elaborated on the various infrastructure facilities available in Tamil Nadu which is congenial for the foreign investors to invest in India and welcomed the companies from Netherlands to set up business in Tamil Nadu.
M r. S. G. P r a b h a k h a r a n , M r. J. K r i s h n a n , Mr. Ramkumar Shankar, Mr. S. Venkatachalam, Ms. K.Saraswathi represented the Chamber and on Chamber’s invitation, Dr Sunder Ramaswamy, Officiating Director & Visiting Distinguished Professor, Madras School of Economics, and Mr. K.E. Raghunathan, Solkar Industries attended the luncheon meeting. A round table discussion over lunch was held as how the region witnessed such huge economic growth in the last 20 years and what is in store for the next 20 years. Further, the discussion revolved around the kind of economic development that is likely to take place and what the Netherlands, given its skills and expertise, needs to look out for to gain a foothold in the southern region.
Ms. Stans Kleijnen, Director India, Netherlands Foreign Investment Agency, Mumbai made a presentation of Advantage – Netherlands.
The Lunch meeting was followed by a joint Seminar on “Doing Business with Netherlands” at Hotel ITC Grand Chola. Mr.S.G. Prabhakharan welcomed the participants followed by a Special address by Mr C.V Sankar IAS,
The keynote address was by the Netherlands Ambassador to India Mr. Alfonsus Stoelinga who reiterated the advantages of doing business with Netherlands.
Mr. S.G.Prabhakharan, President, MCCI handing over the Coffee Table Book to Mr. Alfonsus Stoelinga, The Netherlands Ambassador to India. Others seen are Mr. C.V.Sankar, IAS, Principal Secretary, Industries Department & Ms. Stans Kleijneen, Director India, Netherlands Foreign Investment Agency, Mumbai
Chamber’s Activities •
The Inaugural was followed by a Panel Discussion with business experts from various sectors. Mr. Michiel Bierkens, Head of Economic Affairs, Embassy of the Kingdom of the Netherlands, New Delhi
Mr. Sudeep Sangameswaran, MD, Paques Environmental Technology India Pvt. Ltd
Mr. Toine van Megen, Co-Founder, Auroville Consulting
Mr. S. Chandramouli, Business Head, International Business, TAFE
Mr. S Venkatachalam, MD, Orient Green Power Co Ltd.
Mr. A. Shankar, National Director, Head of Operations - Strategic Consulting, JLL
Mr. N.K.Ranganath, Member, MCCI General Committee & Managing Director, Grundfos Pumps India Pvt.Ltd., interacting with audience during the panel discussion
shared their experiences in their respective sectors and briefed on the lessons they could draw from Netherlands. The Panel Discussion was well moderated by Mr. N K Ranganath, MD Grundfos Pumps India Pvt. Ltd & GC Member, MCCI Ms. P. Meenakshi, NBSO proposed the vote of thanks and the meeting was attended by 50 participants.
4sh May 2016
CCCCC Meeting – Trade Business Opportunities between India and USA
he Consultative Committee of City Chambers of Commerce (CCCCC), currently having secretariat under the Andhra Chamber of Commerce, scheduled a Presentation on “Trade & Investment Opportunities between India & USA” on Wednesday,4th May, 2016 at Hotel Savera, Chennai . The aim of this meeting was to enhance the existing relationship with the U.S. and improve trade and investment opportunities.
who agreed to extend their support to Chambers of Commerce and Industrialist in various ways to promote business relationship between the two countries. Mr. Syed Muneer Ahmed, President, National Chamber of Commerce briefed about his Chamber and proposed the vote of thanks.
Ms. Indira Dutt, President, Andhra Chamber of Commerce and Chairperson, CCCCC welcomed the Chief Guest and participants and briefed about the Andhra Chamber activities. Mr. V.Murali, President, Hindustan Chamber of Commerce gave an introduction about the Hindustan Chamber activities followed by Ms. K.Saraswathi, Secretary General briefing about the Madras Chamber activities. Mr. Chozha Naachiar Rajasekhar briefed about the Tamil Chamber of Commerce followed by Mr. Prasad David, Former Secretary, SICCI briefing about SICCI activities. H.E. Mr.Philip A Min, Consul General of United States of America in Chennai, was the Chief Guest
Ms. K. Saraswathi, Secretary General, MCCI, briefing the audience about MCCI activities. Others seen in the picture (l to r : Mr.P.Nandagopal,Secretary, Andhra Chamber of Commerce, Mr.V.Murali, President, HCC, H.E.Mr.Philip A Min, U.S. Consul General, Mrs.V L Indira Dutt, President, Andhra Chamber of Commerce & Chairperson, CCCCC, Mr. John Fleming, Principal Commercial Officer & Commercial Consul, US Commercial Service, Mr.Chozha Nachiaar Rajasekar, President, Tamil Chamber of Commerce & Mr.Syed Muneer Ahmed, President, National Chamber of Commerce.
Chamber’s Activities 5sh May 2016
NECTO 2016 – Joint program - MCCI with Nextgen
he Chamber, in partnership with Nextgen ,organized NECTO- a Corporate NGO Connect on 5th May 2016. “NECTO” (Latin for connect) is a common platform for corporate bodies and NGO’s to share and discuss their experiences derived from CSR partnerships. Ms.Rama Kashyap gave the welcome address. Mr. Gupta from the Bombay Stock Exchange shared his views on CSR activities. Ms. Richa Bajpai, Co Founder of Nextgen moderated the entire session including the panel discussion which involved all the NGOs and Corporate present. Nextgen had organised for 12 presentations by NGOs who showcased their projects with an aim to foster potential collaboration with the Corporate. More than 22 Corporate invited by the Chamber had their CSR representatives present for the meeting. In the
Mrs. Rama Kashyap, Chairman, MCCI Expert Committee on CSR, Head – CSR, The India Cements Ltd & Ms. Mahathi Parashuram, Head-Public Affairs & Mktg, Grundfos Pumps India Pvt.Ltd., addressing the audience.
Panel discussion, the trends of CSR, the role of NGOs, Corporate, trust deficit that exists, how the relationship between the NGO and Corporate could be improved to take forward the CSR activities etc., were discussed. The participation from both Corporate and NGOs was good and there was a positive feedback for conducting such an event.
24th June 2016
Group Discussion on IMO’s Mandatory Container Weighing Regulations: Is the Trade Ready?
he Chamber partnered with the Exim Shipping Times for the Group Discussion on “IMO’s Mandatory on Safety of Life at Sea (SOLAS) Regulations which is effective from 1st July 2016”. held on 24th June 2016 at ITC Grand Chola, Chennai. It was part of the 8th South East CEO Conclave Awards 2016. Mr.M.Sundaram, ED – Corporate, Super Auto Forge interacting with audience during the Group Discussion
Mr. Sundaram from Super Auto Forge, a member company presented the concerns of the Industries in this session. Mr. Udayabhaskar Reddy, Chairman, Logistics Committee proposed the vote of thanks.
Mr.U.Udayabaskara Reddy, Chairman, MCCI Logistics Committee proposing the Vote of Thanks
The Chamber had already held discussion with the members from the Logistics, Manufacturing sectors and Exporters on the SOLAS regulations and has identified the impact of the same on the Industries. The Chamber would be making a detailed representation to the Directory General of Shipping.
Chamber’s Activities 11sh June 2016
FFT on “Will our Education system attain Global Standards “?
he Chamber under the auspices of the Education Committee organised an FFT on “Will our Education System attain Global Standards”?
invest in foundation of education compared to other countries. He concluded by stating that passion makes a person successful and not just mere education.
Dr. S. Venkataraman, Chairman, Education Committee welcomed the speakers and moderated the session.
Prof. Vaidy Jayaram from Great Lakes Institute of Management in his address stressed on Lack of industry – academia synergy, Lack of research funding and lack of benchmark institutions. He stated that our curriculum, pedagogy, faculty, continuous learning and values & ethics are vital to reach the global standards
Mr. Anand Sunderasan, VC & MD of Schwing Stetter, in his address compared the standards of our Education with Germany and stressed that communication skills is vital for the Students. He added that the Industries should play a major role in enhancing the education standards by providing hands on training. Prof. Sankaran Krishna, from the Department of Political Science, University of Hawaii, stated that the quality of a democracy of a country depends on the quality of education and stated that in India, we under
Dr S Venkataraman
Dr Vaidy Jayaraman
A view of audience.
Mr. S. Chandrasekar, Member Education Committee proposed the formal vote of thanks. The interaction by 60 participants who were a mixed group from Corporate, Academia, Universities, training institutions was lively and the feedback was excellent.
Mr Anand Sundaresan
Prof Sankaran Krishnan
General Committee 24sh June 2016
he Committee held its monthly meetings April, May and June and discussed the following among other issues. The Committee had a meeting on sending a memorandum to the new Government to include business friendly measures in the forthcoming budget. The Committee agreed that the Chamber would invite suggestions from members of the Chamber to give their inputs/ concerns on the following areas. •
To improve the investment climate and Ease of Doing Business in TN
Taxation - current issues – suggestions for improvement
Infrastructure improvement – Ports development, Power, Road, water Housing, Digital connectivity, etc
Sanitation and waste management
Healthcare and Education
Improving the overall competitiveness
Based on the suggestions received, the Committee agreed to release the memorandum in the press meet.
OTHER MEETINGS Ms. K.Saraswathi attended an interactive session with the key members of the Indo American Chamber of Commerce, North California on 16th June 2016 during her visit to USA.
The Chamber contributed Rs. 10 lakhs for the building fund of EFSI. Mr. N.Srinivasan, GC Member along with Mr. S.Sankaranarayanan, Deputy Secretary, MCCI handing over the cheque to Mr. Anand Sunderesan, President, EFSI. Others in the picture include : Mr. Manickam, Secretary, EFSI, Mr. Anand Gopalan, Partner, T S Gopalan & Co, Mr. T.S. Gopalan, Senior Advocate and others.
this space for articles from these Experts in this feature Expertsâ€™ Corner.
Amended Rule 8D â€“ A first step towards settling the controversy
Section 14A was introduced by the Finance Act, 2001 with retrospective effect from Assessment Year (AY) 1962-63. Simply put, the section seeks to disallow
Expenditure directly relating to exempt income,
Proportionate interest expense incurred on borrowings not directly attributable to any
expenditure incurred in relation to income not forming
particular income, computed by applying the
part of total income, i.e., exempt income. Further, it also empowers the Revenue to determine the quantum of expenditure to be disallowed in accordance with
prescribed formula, and 3.
(income from which does not or shall not form
the prescribed method if the Revenue is dissatisfied
part of total income) as on the first and last day
about the correctness of (i) claim of the taxpayer with
of the previous year.
regard to the quantum of expenditure in relation to exempt income, or, (ii) claim of the taxpayer that no expenditure has been incurred in relation to such exempt income. The effect of Section 14A is to widen the theory of the apportionment of expenditure. When the section was originally introduced in 2001, no method was prescribed as such to enable the
Issues in erstwhile Rule 8D: Sec. 14A and Rule 8D were subject to several litigations regarding their application and interpretation. Some of the renowned issues in this regard are listed below: 1.
Rule 8D cannot be mechanically applied. The Tax Authority can resort to Rule 8D only if
Revenue to compute the quantum of expenditure
after perusing the accounts of the taxpayer, it
incurred for the purpose of earning exempt income to
records dissatisfaction on the claim made by the
be disallowed. To overcome the deficiency, Rule 8D
was introduced vide Notification No. 45/2008 dated 24 March 2008 prescribing a mechanism to compute
Whether Rule 8D will apply retrospectively.
the expenditure to be disallowed under Sec. 14A.
Whether disallowance under Sec. 14A can exceed
First and foremost, the said Rule casts the onus on the
the expenditure incurred by the taxpayer i.e. the
Revenue to peruse the accounts of the taxpayer and
amount debited to the Profit & Loss Account.
record satisfaction about the correctness of the claim of the taxpayer that either only those expenditures that
the exempt income was not earned during the
or no expenditure has been incurred in relation to the exempt income. In the event of dissatisfaction, the computation mechanism prescribed under Rule 8D is to be applied, as per which, the disallowance under Sec. 14A shall be the aggregate of the following:
Whether expenditure incurred in relation to exempt income should be disallowed even where
pertains to taxable income are availed as a deduction
0.5% of the average of the value of the investment
previous year in question. 5.
Whether shares classified as stock in trade are to be considered while adopting the computation mechanism prescribed under Rule 8D(2) read with Sec. 14A.
Expert's Corner 6.
Whether interest expense disallowed under Rule 8D(2) read with Sec. 14A should be net of interest income.
To curb the litigations surrounding the interpretative differences between the taxpayers and Revenue,
Can interest expense be disallowed even if the
to simplify provisions and to achieve certainty,
taxpayer is able to clearly demonstrate that the
the committee inter alia made the following
borrowing and the investment generating tax free
recommendations specifically in respect of Sec.
income are not connected at all.
Can there be a disallowance on a presumptive
The Tax Authority should record in the assessment
basis even when the taxpayer claims that no
order his satisfaction or otherwise while dealing
expenditure has been incurred in relation to the
with the applicability of the section.
exempt income. 9.
Recommenda ons of Easwar Commi ee:
The quantum of expenditure pertaining to
Sec. 14A and Rule 8D deal with disallowance
exempt income determined by the Tax Authority
of expenditure – Can the same be extended to
as per Rule 8D should not exceed the total
disallow loss as well.
amount of expenditure claimed as deduction by the taxpayer.
10. Can Sec. 14A and Rule 8D be extended to disallow depreciation.
Share of profits of partnership firm (Sec. 10(2A)),
In line with the Union Government’s promise on ease
dividend income (Sec. 10(34)), income from
of doing business and simplification of provisions
buyback of unlisted shares held by the taxpayer
of the Income Tax Act, 1961, a committee was
(Sec. 10(34A)), income from units of Mutual
constituted in October 2015 under the chairmanship
Funds (Sec. 10(35)) and distributed income
of Justice R.V. Easwar (Retd.) with specific terms of
received by taxpayer from securitization trust
under Sec. 10(35A) should be deemed to be
taxable income for the purpose of Sec. 14A.
To study and identify the provisions/phrases in
Such income suffer economic taxation by way of
the Act which are leading to litigation due to
Dividend Distribution Tax (DDT) and therefore,
different interpretations; •
To study and identify the provisions which are
exempt income. And so, such incomes should be
impacting the ease of doing business;
deemed to be forming part of the total income of
To study and identify the areas and provisions
the taxpayer for the purpose of Sec. 14A.
of the Act for simplification in the light of the
from the economic sense cannot be construed as
Interest expense should not be disallowed if
the taxpayer is able to demonstrate that there
To suggest alternatives and modifications to the
is no direct nexus between the borrowing and
existing provisions and areas so identified to bring about predictability and certainty in tax
the investments from which the exempt income arises.
laws without substantial impact on the tax base
The Finance Minister, while presenting the General
and revenue collection.
Budget for 2016-17 in the Parliament, announced that the Union Government has proposed to accept a number of recommendations made by the Easwar
Expert's Corner Committee. Also, under the category ‘Reducing
relation to exempt income to be disallowed shall be
litigation and providing certainty in taxation’ (Tax
the aggregate of the following:
Reforms) in the budget speech, the Finance Minister proposed to rationalize the computation mechanism prescribed under Rule 8D, governing the quantification of disallowance of expenditure under Sec. 14A.
Expenditure directly relating to exempt income, and,
1% of the annual average of monthly averages of the opening and closing balances of the value of
Amendment to Rule 8D:
the investment, income from which does not or
In line with the budget announcement on rationalization
shall not form part of total income.
of computation mechanism prescribed under Rule
In addition, the amendment inserted a proviso to
8D for the purpose of Sec. 14A, the Central Board
Rule 8D as per which the amount so computed above
of Direct Taxes (CBDT) issued Notification No.
shall not exceed the total expenditure claimed by the
43/2016 dated 2 June 2016 seeking to amend Rule
8D. Pursuant to the said amendment, expenditure in A comparison of the amended Rule 8D and the erstwhile Rule 8D is tabled below: Pre – Amendment Rule 8D(1) Rule 8D(2)
Post – Amendment No change
Disallowance shall be the aggregate of:
Disallowance shall be the aggregate of:
1. Expenditure directly relatable to exempt 1. income
Expenditure directly relatable to exempt income
2. Interest expense incurred in relation to 2. borrowing not directly attributable to any particular income computed as per the prescribed formula
1% of the annual average of the monthly average of the opening and closing value of the investment (that yields exempt income)
3. 0.5% of the average value of the investment (that yields exempt income) as on the first and last day of the previous year Rule 8D(3)
Meaning of Total Assets for the purpose Deleted of calculation of the Interest expense to be disallowed under Rule 8D(2)
No such proviso
The disallowance shall not exceed the aggregate deduction claimed by the taxpayer
As a result of the amended Rule 8D, provisions relating to the disallowance of proportionate interest expense that has no direct relation with the exempt income have been removed. The amended Rule amounts to an increase in the disallowance from 0.5% of average value of investment to 1% of the average value of investment. Further, the computation of average value of investment as on the first and last day of the previous year has been replaced with the annual average of the monthly averages of the opening and closing balances of the value of investment. Lastly, by virtue of the proviso, a cap has been fixed on the maximum amount of expenditure that can be disallowed under Sec. 14A.
Expert's Corner Authors’ views: The inclusion of restrictive proviso in Rule 8D, will settle unintended scenarios that result in disallowance of expenditure exceeding the amount of expenditure claimed by the taxpayer in relation to exempt income. The amendment also addresses the often disputed disallowance of interest, especially in cases wherein the taxpayer is able to demonstrate on the basis of its books of accounts and other records that the borrowings were not utilized to make investments earning exempt income. However, discarding the interest disallowance and increasing disallowance from 0.5% of annual average of value of investment to 1% of the annual average of the monthly averages of the opening and closing value of the investment will result in an increase in disallowance especially for those taxpayers who do not have significant borrowings. While the recent amendment aims to conform to the recommendations of the Easwar Committee pertaining to limiting the maximum amount of disallowance under Sec. 14A, it does not address
Though more clarity is expected regarding the upper limit on the disallowance of expenditure under Sec. 14A imposed by the newly introduced proviso, the recent amendment to Rule 8D is definitely a welcome step in the arena of tax reforms towards simplification of provisions and reducing litigations arising due to different interpretations. If in a case, the amendment to Rule 8D is considered as clarificatory and curative in nature with the intention of removing difficulties, the taxpayer may avail retrospective application of the amendment (though the Notification No. 43/2016 comes into effect prospectively i.e. from FY 2016-17) to his benefit relying on extant jurisprudence, as per which, amendments that intend to remove difficulties shall have retrospective effect. While one has to wait and watch the effect of the intended benefits of the amended Rule 8D, the taxpayer community is gearing up for a fresh round of litigation on the issue of retrospective applicability of the amended Rule. The above article is contributed by T V Lakshmi Sankar (Manager) and Anushree Bansal (Associate) with Price Waterhouse & Co LLP.
the issue of economic taxation of income in the
Disclaimer: The contents of this article are personal
nature of dividend and the like. Hence, such income
views and opinions of the author, and do not in any
will continue to be considered for the purpose of
way necessarily represent or reflect the views of the
disallowance under Sec. 14A.
firm in which they are associated. The contents of this article are only for informational purpose and do not constitute professional advice or recommendation.
The Chamber condoles the sad demise of:Mr. C.S. Krishnaswami – Secretary, MCCI (First Indian Secretary of the Chamber) Mr. K.J. Chandran, Advocate – Special Invitee – VAT & Indirect Taxes Commi ee of MCCI & Regular Faculty for MCCI’s taxa on programs. Mr. V. Thirumal Rao, Director, Beardsell Ltd, Past Chairman of the Sales Tax (presently VAT Commi ee) Commi ee of the MCCI And conveys our hear elt condolences to the bereaved families.
Expert's Corner Corporate Digital Strategies – Needs “Hard wiring” and not just “vague statements” By J Raghunathan, Chairman, Expert Commi ee on IT/ITES & Founder-Director, KGIG time this segment started taking off, Netflix has garnered a major market share and their online subscriber base that was 40 million in 2013 has now become nearly 100 million.
“Oh I am digitizing my business; I am ready for the future!” When a CEO of a traditional business speaks these words, you know he is heading towards disaster! Digital strategies are way beyond vague statements. Putting the company’s web site active or selling a few products and services online does not make a company digital. Digital business requires a complete overhaul of traditional business mind set and not just technology investments. And it is not experimenting with digital technology and tools. The time of experimentation is over as far as digital business is concerned.
Digital businesses acquire capabilities from outside and not merely depend on in-house resource pool. Internal resource pool may be good but not good enough for the digital business transformation. Hence hiring appropriate resources from other industry segments is necessary. Emphasis on skill over experience is quite important in digital businesses. Even the current HR policies and practices may need a relook. Tesco, the UK grocery retailer, made three significant digital acquisitions over a two-year span: blinkbox, a video-streaming service; We7, a digital music store; and Mobcast, an e-book platform. The acquisitions enabled Tesco to quickly build up the skills it needed to move into digital media.
Digital businesses must seclude and nurture digital talent exclusively. Combining them with the rest of the team will not help. A company that acquires a five-person mobile-development firm and places it in the middle of its existing web operations is more likely to lose the team than to integrate it. Digital talent must be nurtured differently, with its own working patterns, tools and idyosyncharasies. Wal-Mart established @ WalmartLabs, as part of its growing e-commerce division in Silicon Valley—and not in the company’s Arkansas, headquarters. The group’s innovations, including a unified company-wide e-commerce platform, helped Wal-Mart increase online revenues by 30 percent in 2013, outpacing Amazon’s rate of growth.
While the overall global economic status is showing bleak progress, digital businesses are growing at a healthy rate and in Asia and India in particular digital businesses are booming. To take advantage of this momentum, businesses have to transform themselves into digital mode of thinking and executing. But this transformation is not easy. It is full of challenges touching every function while at the same time demanding investment of time and money in resources that are very different than those of a traditional business. This is what McKinsey calls as “hard wiring their organization’s structure, systems, processes and incentives”. Let us be clear – there are no silver bullets for successful digitalization of business. However, we can broadly enumerate some basic characteristics that a successful digital business would exhibit. 1.
Digital businesses must have very high ambitions and goals. Average or marginal targets would not suffice. It is no target if it does not make majority of the company nervous! Netflix is a classic case in point. Very quickly they realized even when they were successful in video rental business that the future lies in online and not in physical media. They made the right investments in real time entertainment technologies and processes. By the
A few more such attributes that define successful digital businesses are “challenge everything, do not accept historical norms, question status quo, be quick
Expert's Corner and be data driven, invest on value-based and not just on ROI and more importantly, be obsessed with the customer. A strong obsession with improving the customer experience is the foundation of any digital transformation. The leadership teams should aspire to fix every error or bad experience. Processes that enable companies to capture and learn from every customer interaction—positive or negative—help them to regularly test assumptions about how customers are using digital and constantly fine-tune the experience.
This mind-set is what enables companies to go beyond what’s normal and into the extraordinary. If online retailer Zappos is out of stock on a product, it will help you find the item from a competitor. It is no surprise that 75 percent of its orders come from repeat customers. Leaders of successful digital businesses know that it’s not enough to develop just one or two of these traits. They will be looking for new traits to learn and master from their daily businesses and that’s what determines their success. Note: Examples are drawn from a May 2014 article from McKinsey and co.
Digital India – Overcoming Security and Data Governance challenges By Deloi e Touche Tohmatsu India LLP One of the key initiative from the current Government of India is economic revival and inclusive growth. The Government aims to empower citizens by use of technology. The Digital India Initiative by the government spans across multiple ministries and government. As per the recent Gartner study, Indian Government is likely to spend $7 billion for buying Information Technology products and services in 2016. “The Digital India initiative continues to drive investments in the government, led by access of government services on mobile devices (part of the mobile government), and expansion on broadband services,” said Moutusi Sau, principal research analyst at Gartner. The Department of Electronics and Information Technology (DeitY) has been entrusted the role to implement the Digital India Initiative. Digital India includes nine pillars of growth areas, namely Broadband Highways, Universal Access to Mobile Connectivity, Public Internet Access program, e-Governance: Reforming Government through Technology, e-Kranti - Electronic Delivery of Services, Information for All, Electronics Manufacturing, IT for Jobs and Early Harvest Programs. A quick summary of the programs are given in table.
SECURIT Y AND DATA GOVERNANCE CHALLENGES The key driver to the Digital India initiative will be Technology. Security and Data Governance is one of primary challenges that needs to be addressed. Some of the key challenges include:
The country faces lot of challenges in implementation of Broad band access across the country. There are number of supply and demand side issues. The supply side issues include factors such as not having the right infrastructure, higher fees and delays in obtaining Right of Way (RoW) license, Complexity in regulatory environment, lack of content due to language barriers. The demand side issues limited awareness and limited affordability across the county. The key success factors to overcome the broad band challenge is to enter into Public Private Partnership (PPP) for implementation, encourage fair completion and efficient use resources, Enhance formation of robust network and information security systems and strictly adhere to international cyber-crime laws and regulations, encourage primary and secondary schools to use internet, Strengthen the skill development efforts for training and nurturing technical professionals and other talent.
Expert's Corner S.No. 1.
Broadband Highway 1.
To provide high-speed broadband coverage highways connecting about 250,000 villages, various government departments, universities, etc.
To provide an integrated information infrastructure with integration of State Wide Area Network (SWAN), National Knowledge Network (NKN) and National Optical Fibre Network (NOFN)
Universal access to mobile
To provide mobile connectivity to about 42,300 villages
Public Internet Access Programme (PIAP)
To make 250,000 CSCs operational at Gram Panchayat level for delivery of government services
To convert 150,000 post offices into multi-service centres
To use business process re-engineering to transform government processes and make them simple, automated and efficient
To use technology for service delivery such as e-education, e-healthcare, technology for planning, farmers, security, financial inclusion, justice, etc.
Information for all
10. To provide open access to government information and documents online 11. To provide two-way communication between citizens and the government through online platforms and social media
To target net zero imports by 2020, through various actions in areas such as taxation/incentives, economies of scale, skill development, government procurement, etc.
IT for jobs
To provide necessary skills and training that enable the youth to avail jobs in IT/ITes sector
Early har vest To focus on execution of project within short timelines, such as IT platform programmes for messages, e-greetings from the government, biometric attendance, Wi-Fi in all universities, etc.
The Government has been encouraging citizens to do number of online transactions today. The number of e-transactions sine 1st Jan 2016 is 3,15,52,20,920 (Source: http:etall.gov.in). The Government has been encouraging citizens to do on-line payments by using RuPay debit cards etc. There are number of initiatives to link Bank account to Aadhaar card. Data analytics is being used by Government in a big way to capture spends of customers. As part of the smart city initiatives, there is extensive use of technology for authentication of citizens, monitoring of traffic, education, health, crime, energy and waste management etc. In all the e-Governance initiatives
technology is the key player and security over the data is a critical point that Government should consider. A good security framework should be developed and adopted.
Security and Privacy Awareness
The initiative aims at connecting people from all walks of life and all cities and villages. The security and privacy awareness among people are not still matured. We have seen number of instances when Personal Identification Information (PII) information such as Aadhaar card numbers are written in the visitorâ€™s registers that are made available in the entrance of buildings is an example of lack of awareness among people to share PII information.
The government must ensure effective regulations which addresses the following with respect to PII:
Source: DeitY on â€œDigital India, A programme to transform India into a digitally empowered society and knowledge economyâ€?
Cloud compu ng
Cloud computing is one of the technology that is to be used in the Digital India Initiative. The key risks in cloud computing environment is that it provides less direct control on applications, systems and data security. The key factor that needs to be considered while data is hosted in cloud is to ensure that the cloud provider uses sophisticated security protocols, periodic audits are performed on the cloud provider and ensure the data resides only within India. It will be important to understand where the data is stored, implement stringent framework on cloud provider and also do the required due diligence in selecting the right provider and also perform periodic review on the provider. Unauthorized access and unauthorized secondary use of Personally Identifiable Information (PII) are the major privacy risks to be considered. Personally identifiable information can be defined as a collection of information regarding a particular individual and can include tax or bank account numbers, physical features (e.g. eye colour, height, etc.) and biometrical information, and even behavioral information (e.g. shopping habits, colour preferences, etc.). However, Technology alone wonâ€™t protect the data. The processes and methods must work with the technology and constantly evolve as the requirements and threat landscape change.
Lawful collection of data
Individual consent for collection and disclosure
Secure storage and disposal.
State-of-the-art encryption technologies need to be applied to a cloud solution to increase the security and privacy control over data. The choice of encryption needs to align with the capabilities of the technology and application in use and the cloud service provider being employed. The impact on end-user performance also needs to be considered, as different mechanisms may have significant impact on the user experience.
Summary The government should implement highest level of security protocols and privacy policies. Security awareness campaign will also be important success factor to the Digital India initiative combined The key success factors to overcome the broad band challenge is to enter into Public Private Partnership (PPP) for implementation. The introduction of WiFi in Tier 2 and Tier 3 city railway stations is a good example of a successful PPP. The Government should also encourage fair completion and efficient use resources, Enhance formation of robust network and information security systems and strictly adhere to international cyber-crime laws and regulations, encourage primary and secondary schools to use internet, strengthen the skill development efforts for training and nurturing technical professionals and other talent. For each of the Digital India project it is important that reasonable security practices as intended under Section 43A and Rules therein of the IT Act should be implemented.
Expert's Corner Amendment to the India-Mauritius DTAA By Mr. Bharat P, Senior Manager, Tax and Regulatory Services Ernst & Young LLP. While Mauritius has been the fulcrum for investment flows into India since easing of the foreign investment norms, the India-Mauritius Double Taxation Avoidance Agreement (‘the DTAA’), which was entered into about 33 years ago, continues to be the epicentre of high-pitched tax disputes. Capital gains arising to a foreign investor on sale of investments in an Indian company is taxable in India as per the domestic tax laws. Certain DTAAs (ie Mauritius, Singapore, Cyprus) provide an exemption to the investors from capital gains tax in India. The capital gains tax exemption provided by the relevant DTAAs continues to be a point of contention between the investor community and the Indian tax authorities. Despite the CBDT issuing circulars and clarifications assuring the investors of the benefits of capital gains tax exemption as per the India-Mauritius DTAA, the tax authorities continue to question the substance of the entities in Mauritius thereby leading to disputes on the eligibility to claim capital gains tax exemption. The difference between ‘tax planning’ and ‘tax avoidance’ or ‘look at’ and ‘look through’ principles has been discussed in several judicial precedents. The Supreme Court in the case of AzadiBachoAndolan and Vodafone Holdings International B.V has upheld the validity of the circulars/ clarifications issued by the CBDT and consequently the benefit of the capital gains tax exemption. The Courts have consistently held that every taxpayer is entitled to arrange his affairs in such a manner so as to optimise his tax outflow. The economic scenario and the principles of international taxation have definitely evolved since 1983 when the India-Mauritius DTAA was entered into. After several years of negotiations, India and Mauritius have announced the signing of a protocol effectively withdrawing the most significant benefit enjoyed by the investor community i.e the capital gains tax exemption on transfer of shares of Indian companies.
As per the amendments to the DTAA,investments made in shares of Indian companiesuptoMarch31, 2017 would continue to enjoy the benefit of capital gains tax exemption as per the India-Mauritius DTAA. India gets taxing rights on capital gain income arising on transfer of shares of an Indian company acquired on or after April 1, 2017. Subject to satisfaction of Limitation of Benefits clause (ie motive test and bonafide business test), a concession of 50% of the domestic tax rates has been granted upto March 31, 2019. It is not just the capital gains article that has been amended. A reduced rate of tax of 7.50% has been introduced on interest income from debt claims. Income in the nature of ‘fees for technical services’ would also now be taxable in India. The ‘Other income’ article of the DTAA has also been amended to provide taxing rights to India if such other income arises in India. Exchange of information and assistance in recovery of taxes have been streamlined as well. The capital gains tax exemption under the IndiaSingapore DTAA is also dependent on the exemption under the India-Mauritius DTAA. Recent press articles also suggest that India is in the process of renegotiating the DTAA with Singapore which is another jurisdiction through which significant foreign investments are made. The Supreme Court has observed that certainty in economic and tax policy is crucial fortaxpayers (including foreign investors) to make rationaleconomic choices in the most efficient manner. The prospective amendment to the India-Mauritius DTAA is definitely a welcome move and will provide much needed clarity to the foreign investors. The inclusion of the Limitation of Benefit clause in the India-Mauritius DTAA is also a step in the right direction as it provides an objective threshold for determining the eligibility of an investor to avail the benefits of the India-Mauritius DTAA. The Finance Ministry has also set up a working group to examine consequential issues arising out of the amendments to the India-Mauritius DTAA.
Expert's Corner With the easing of foreign investment norms for various sectors and the amendment to the treaty network, the message of the government is loud and clear – invest in India for the returns which investment in the country provides and pay taxes on such returns. It will be interesting to watch out the impact that the amendments to the treaty network and the GAAR
regime which is likely to be effective from 1 April 2017would have on foreign investment flows into India.With all major economies tightening screws of aggressive tax planning and tax avoidance and the Base Erosion and Profit Shifting (‘BEPS’) project of the OECD,instances of double non-taxation, artificial profit shifting and reaty shopping could soon become things of the past.
SOLAS Regulation and Implementation in India By
Mr.Pankaj Gadhia, Co Chairman, Expert Commi ee on Logis cs & CEO, Lee & Muirhead Pvt Ltd.
Recent amendment by International Maritime Organisation (IMO) of SOLAS (Safety Of Life At Sea), 1974 Convention,applicable for container traffic effective 01 July 2016, has been the most discussed and debated subject in the Exim Trade not only in India but world over. This has become such a hot topic because most Shipping Lines have stated “ NO VGM = NO LOAD! Why this amendment? Reason being that world over there has been several accidents, relating to container cargo, which has caused loss to human life, environment, goods, equipment including ships, transport vehicle, etc because of wrong declaration of weights by shippers. Maintaining stability of the ship while loading containers plays an important role in safety of all cargo in a cargo ship. The cargo is stowed with heavy weight containers on deck or under deck and lighter containers upwards. Wrong weight used while planning therefore can cause avoidable disastrous damages to men, environment and material. Directorate General of Shipping has issued a detailed Merchant.Shipping Notice on 11 May 2016 giving guidelines on implementation of the new amendment in India, where submission of VGM (Verified Gross Mass) becomes mandatory. This notice has been issued by authorities after deliberation with the Exim trade in Mumbai and in some Gujarat areas. Regretfully, the Exim trade in Chennai, which accounts for throughput of almost 19% of the containerised traffic handled by
the 12 major ports in India.in 2015-16, has not be been adequately consulted till very recently. To summarise the recent guidelines issued by DG Shipping on 11th May 2016, it is the responsibility of all Shippers/Exporters to provide correct VGM details of each container before they can get accepted for carriage by the Shipping Lines. There are two methods which has been described as to how the VGM can be calculated. Method 1, upon the conclusion of packing and sealing a container, the shipper may weigh or have arranged that a third party weigh, the packed container. Method 2, weighs all packages and cargo items, include the mass of pallets, dunnage and other packing & securing materials to be packed in the container and add the tare weight of the container to the sum of the single masses of the container’s contents. In both the above methods, the weighing equipment used must meet the applicable accuracy standard and requirements of the State, i.e. Department of Metrology. The maximum error permissible by DG Shipping is + or – 1,000 kgs. Of course a VGM exceeding the permitted limits of a container is not acceptable. Penalties for wrong declaration by the shippers have not been defined as yet. However, such containers will definitely get offloaded at the risk & cost to the account of the exporters.
Expert's Corner The notice further states that the information should be made available in a tamper proof method by the electronic weighbridge operator to the shipper. It will be shipperâ€™s responsibility to upload information as stated in Annexure -1 of the circular along with VGM details on a dedicated secure website that can be accessed by all concerned.The notice further recommends that this is digitally signed by the shipperâ€™s authorised and presented to the shipping line who would in turn keep the terminal operator informed. The above process sounds logical and cannot be debated considering that spirit of same which is to save human life, property and environment. However, when it comes to implementation there is a huge challenge in India considering export cargo getting originated throughout the length and breadth of the country with limited infrastructure available for the purpose. The exporters ranges from organised large manufacturers to small & medium exporters & traders. Important aspect to note is that the main concerned parties are the shippers and the shipping lines. The others who facilitate the transaction like the CFSs, terminals, forwarders, weigh bridge operators etc automatically have to play a supportive role. However, regretfully the participation from the exporters or shippers in the discussions on this subject has been poor and it is the logistics service providers, CFSs, terminals and shipping lines who are seen in the forefront.Further, the trade discussions appears to be taking place only in the major port cities while the implication is national. The biggest challenge today is availability of certified weight bridge facilities. While most CFSs located near major port have upgraded themselves to meet the new challenges, it is the containers which gets originated in interior parts of India where there is a challenge. Such exporters have to either rely on their
own weigh bridges, which may not be practical for all, or rely on outside weight bridges. Unfortunately, quite a number of these weight bridges are not reliable as several of them are assembled locally with inadequate maintenance & upkeep.Understand only 30% of containers moving through JNPT moves thorough CFSs. So now the balance 70% either has to find suitable and dependable weighing facilityenroute or move via CFSs which will create capacity problems. After 01 July 2016, definitely, there will be a congestion and confusion which will affect the transit time of consignments. The DG Shipping is aware of this and is expected to come up with some relaxation but the implementation date set by IMO will not be compromised. In Chennai more than 90% of the containers move through CFSs who apparently appears to be better equipped to handle this challenge. The interaction among the trade in Chennai has been very positive. Thanks to the various associations who with their active involvement and participation has been able to find a working methodology in a very short time to handle this new DG Shipping requirement. Your Chamber has played a key role in this regards. Any change or new requirement takes time before operations stabilise and hence delays cannot be ruled out. The cost of transaction is likely to increase for the exporters who are already finding the going getting tough with global recession. It may appear that the ease of doing business is being compromised. However, one has to remember that this is being done for the safety of human life which under no circumstances can be compromised. Further, if world over correct weights were being declared by the trade, this amendment in the SOLAS regulation would not have come about.
FLASH NEWS Intro: New Members Name of the company
Ventureast Fund Advisors India
Ventureast is a pioneering Indian VC fund manager with close to $300 million under management. We have a rich history of investing in innovative businesses across multiple sectors, and multiple stages of a business - from seed and early to growth stages. Ventureast has enabled over 60 businesses in Technology, Life Sciences and emerging sectors to become leaders in their individual spaces. The company has a proven track record of investments and exits, aided by a strong founding team which has been with Ventureast for over 15 years and who understand the entrepreneurial ecosystem well.
Globeliz Travel Services (P) Ltd
Travel & Tourism
Globeliz Trave is a Non-govt company and is registered at Registrar of Companies, Chennai. It is inolved in Supporting and auxiliary transport activities; activities of travel agencies.
Tirupati Tradewing Pvt. Ltd
Construction & Trading
Tirupati Tradewing has a vast range of products such as Coal, Structural, Steel, TMT Bars, TMT Square Bars, TMT Round Bars, Square, Round Bars, HR Steel, MS Plat, Bloom, MS Ingot, Billet, Sponge Iron, Iron Ore, and more. Their products are made at our in-house production unit by the most proficient engineers, technicians, and skilled labors having vast knowledge and experience in the domain. They design and develop these products in compliance with the market norms ensuring due features such as durability, efficiency, lasting performance, corrosion resistant, and low maintenance requirement owing to which, they are reckoned in the market as manufacturer, supplier, and trader offering high quality products at competitive prices.
Mackmorn Vanijya Pvt. Ltd
Investment in Shares , Trade in Commodity
Mackmorn Vanijya Pvt Ltd is classified as Indian Non-Government Company and is registered at Registrar of Companies, Chennai. It is inolved in Wholesale on a fee or contract basis. [Includes commission agents, commodity brokers and auctioneers and all other wholesalers who trade on behalf and on the account of others. Activities of self employed auctioneers are included in 74991.]
K Gaurav Kumar & Associates
Company Secretary Practice Firm
Practicing Company Secretary Firm
Transcend India Impex
Transcend India Impex is the one stop Supplier, Distributor, Exporter, Wholesaler and Retailer of Fasteners, Iron and Steel, Structural Materials, Pipes, Pipe Fittings, Valves, Bearings and Industrial supplies. We provide A to Z of Industrial needs. In addition to this, we also provide world class Industrial Fabrication Services as per the exact requirement of the clients. We Supply Studs, Bolts, Nuts, insulation rod, washers, etc.
S V Global Mill Limited
S V Global Mill Limited is the resultant Company from Binny Limited, based on the Scheme of De-merger as approved by the High court of Judicature of Madras. They are in to various businesses like property development, construction of multiplexes, commercial complexes and dwelling houses , warehousing etc.
Ceego Labs Pvt. Ltd
CeegoLabs Pvt Ltd are Manufacturers and exporters of Nutraceuticals,Pharmaceuticals Products in Tablets, Oral Liquid, Powder and Capsule forms; for Indian & Global Market. Good Manufacturing Practices and Superior quality products as a cardinal principle, Ceego Labs manufacturing facility is available in a eco friendly vast area at Majamedu (SH 120) 14 Km from Sriperumbudur, Chennai, India.
Sapcle IT / ITES Technologies Pvt. Ltd
Sapcle Technologies Private Limited is classified as Non-govt company and is registered at Registrar of Companies, Bangalore. It is inolved in Other computer related activities [for example maintenance of websites of other firms/ creation of multimedia presentations for other firms etc.]
Farida Leather Company
Manufactures and markets high quality men & women footwear and finished leather. They operate through three main business segments: tanneries, uppers and shoe manufacturing units. Products are sold under popular brand names in more than 40 countries Globally.Our major products are finished leather for the fashion industry, uppers, and men & women formal and casual shoes.
FIRE UP THE MADRAS CHAMBER OF COMMERCE & INDUSTRY INDUSTRY WISH LIST TO THE GOVERNMENT OF TAMIL NADU By MR. S.G. PRABHAKHARAN, PRESIDENT, MCCI
PRESS RELEASE 31st May 2016 The Madras Chamber of Commerce & Industry (MCCI) conveys its hearty wishes to the Hon’ble Chief Minister Selvi J Jayalalithaa for the glorious victory in the recent TN Elections 2016. The President of the Madras Chamber, Members of the General Committee, Members of the Expert Committees and the Members of the Chamber jointly convey their congratulations for the wonderful success & victory. MCCI opines that with her re-election and becoming the CM of Tamil Nadu once again, the stage is set for fulfilment of the targets of Vision 2023 and GIM 2015. Historically, Tamil Nadu has punched above its size in the economic sweepstakes at the national level, and the opportunity is ripe for Tamil Nadu to make its mark at the international level as well. As one of the oldest chambers of commerce & industry, MCCI feels that a special focus on the following agenda will project Tamil Nadu’s business friendly environment and its competitiveness as a leading investment destination in Asia:
Extending a whole hearted support to implementa on of GST: Besides being a leading manufacturing state of India, TN is also a state that leads in value addition and final consumption of goods and services. Therefore, implementation of GST will help TN consolidate its growth even as India becomes a unified market. There are several interim and pre-requisite steps for
the smooth implementation of GST, for which MCCI would be willing to provide the necessary inputs and feedback from industry to the Government.
Power: Power situation in Tamil Nadu has improved tremendously in the past few years and industry looks forward to a sustainable uninterrupted 24 X 365 supply in the years ahead. A few years back, Tamil Nadu’s Electricity Board was the best in the country, but it has since lost that position. MCCI feels that TANGEDCO should be speedily restructured to regain its prime position in the country, so that industrial progress of the state continues unhindered. Besides the Power industry, MCCI urges the Government of Tamil Nadu to accelerate the investment under Infrastructure for Ports, Roads, Industrial townships, modern cities, and Water aggregating to Rs 15 lakh crore over the next decade.
Skill Development: Speedy implementation of Vision 2023, in particular, the programmes on Skill Development, making SMEs vibrant, and establishing Tamil Nadu as the leading innovation centre of India. Tamil Nadu has the largest number of SME units in the country and arguably the best educated workforce as well. On top of this, Tamil Nadu also has the highest number of higher educational institutions in the country, all of which make it a prime candidate for becoming the knowledge capital of India.
FIRE UP THE MADRAS CHAMBER OF COMMERCE & INDUSTRY INDUSTRY WISH LIST TO THE GOVERNMENT OF TAMIL NADU SUPPLEMENTARY POINTS
PRESS RELEASE 31st May 2016
Build infrastructure to create an enabling and facilitative environment. Identify, prioritise and implement the infrastructure projects for better connectivity to port and airport.
Improve e-Governance and IT interface between the Government and business/citizens to improve
Ease of doing Business.
Specific concerns with regard to Infrastructure includes
Reduce human intervention and increase transparency in dealing with the government.
EMRIP – (Ennore Manali Road Improvement Project) to be completed soon. It takes average 15 hours to reach Chennai Port for the Containers from Manali CFS.
Maduravoyal Corridor – link to Chennai Port – to be completed on a priority basis
Government can project its action plan, investments, approvals, VAT approvals and other Industry related approvals through the Portal in a transparent manner, which would help the investors to understand the present industrial situation in Tamil Nadu.
Ensure energy security; improve availability of natural gas
Approach from Madavaram to Ennore Port to be developed from existing 4 lanes to 6 lanes to ensure free flow of container movements Railway connectivity from Sriperumbudur/ Maraimalai Nagar to Chennai Sea Port is to be explored (as Railway lines are already exists) which would help in reduction of transactions cost substantially Roads, lighting, power and water infrastructure in Industrial Estates to be well developed and maintained
Expansion of metro connectivity connecting, Sri City, Sriperumbudur, OMR and ECR.
Roads to be laid without increasing the height and with proper water outlets
City infrastructure like pavements, roads, crossings, to be comfortable for all citizens including the seniors, differently -abled and children.
MSME: Protect the interests of the MSMEs and foster their growth •
Reinstate Purchase and Price Preference to MSMEs
Plan sanction for TANSIDCO industrial Plots/ Sheds to be done by TANSIDCO and not by the local authorities
TANSIDCO to allot plots/sheds at affordable prices to the MSMEs and not on Market price
Our State has the maximum number of SMEs who cater to the needs of big manufacturing establishments by being part of their supply chain. However, due to policy issues such as taxation, power, lack of infrastructure, connectivity issues, increase in compliance and working capital and other interrelated problems, the MSMEs find it difficult to meet the needs of big manufacturing units and hence there is disruption in services rendered. This leads to big manufacturing units shifting their operations to other States which will lead to tremendous impact on the growth of MSME’s in the State.
FIRE UP ? Industry – Government Interface: All the Chambers in Chennai, particularly established the Madras Chamber which is a 180 year old industrial association has huge number of corporate as members in the Chamber. Corporate has issues/concerns while dealing with the Government, particularly in the areas of taxes, finance, approvals, power, pollution control, infrastructure etc. It would be ideal to have a common platform to highlight their issues and problems to the Government by the Chambers. We appeal to the Chief Minister to meet the Chambers periodically for the betterment of Industries and the State. In the post liberal era, TN has witnessed a big explosion in the growth of auto and IT sectors. The new Government should identify the next set of sectors that would thrive in the domestic and export markets in the coming years. It could be agro based industries, aero space, electronic hardware, and defence and formulate policies for supporting their growth.
To make Chennai highly resilient and deal with disaster, it would be ideal to maintain the water bodies and have proper drainage and storm water drains in the city. Further, Strict measure to reduce use of plastic and an efficient solid waste management system that provides recognition and dignity to people who work in garbage removal.
Conclusion The Madras Chamber would be grateful, if the Government could consider the recommendations given above in the upcoming budget and while formulating new policies, regulations for realizing the State’s vision of inclusive growth through investment inflows, growth in employment, balanced regional development and environmentally sustainable long term development. The Madras Chamber would be happy to associate with the Government of Tamil Nadu in its mission to take the State to the “Numero Uno” position and would participate actively in the promotion and growth of the Industries.
CHAMBER IN THE NEWS NT Bureau Chennai, June 1: The MadrasChamberof Commerce and Industry (MCCI) has come out with a 'Progress Wish List' to the new government, in a bid to solve problems faced by industries in general and draw up an action plan to promote industrialgrowth. In a statement, MCCI said, besides being a leading manufacturingState of India, Tamilnadu is also one that leads in value addition and final consumptionof goods and services. 'Therefore, implementation of GST will help the state consolidate its growth even as India becomes a unifiedmarket. There are severalinterim andpre-requisitesteps for thesmooth implementation of GST, for which MCCI wouldbe willingto provide the necessaryinputs and feedback from government,' the state-
ment said. The MCCI also to Chief Minister J meet the chambers periodically lor betterment of the industries. cording to the MCCI, the the Ennora Manali Road Improvement and the Maduravoyal Corridor lo link the Chennai Port infrastructure have to be completed soon while railway connectivity from Nagar to port is to be explored (as railway lines already exist). These would help in reduction of transactionscost substantially. The MCCI also urged the State government to expand metro connectivity linking Sriperumbudur, Old Mahabalipuram Road (OMR), East City, an Coast Road (ECR) and integrated industrial township in AndhraPradesh around70kilometre from here.
Economic Review What’s happening? UPDATES ON ECONOMY
Chennai Port has resolved issues related to dredging’ Chennai Port has emerged as the deepest among the major ports in the country with a capacity to handle vessels with a draft of 15.5 metres. Mr. Cyril C. George, chairman of Chennai Port Trust (CPT) said the draft, indicative of the depth to which a loaded ship can sink, at Ambedkar dock and CITPL is 15.5 metres and now, the port is capable of handling container vessels as much as 8,000 TEUs (twenty foot equivalent units). He added that “It is a major achievement. We have resolved the past issues related to dredging”.
Govt. clears civil avia on policy, makes ﬂying cheaper In a big push to its reform agenda, the National Democratic Alliance (NDA) government approved the country’s first National Civil Aviation Policy for increasing air connectivity, allowing new domestic airlines to fly abroad quickly and opening up the skies for European and South Asian Association for Regional Cooperation (Saarc) countries. New airlines, such as Vistara and AirAsia, will no longer have to wait for five years before starting operations on international routes. Start-up airlines can now fly abroad after operating at least 20 planes or 20 per cent of their total flying capacity, whichever is higher, on domestic routes. According to a 2004 norm, which is also known as the ‘5/20 rule’, a domestic airline is allowed to go international only after flying for five years to domestic destinations and operating at least 20 aircraft. “Connecting the unconnected and serving the unserved is the motto of the civil aviation policy. The questionable legacy of the ‘5/20 rule’ has been thrown into the dustbin today,” said Information Technology and Communications Minister Ravi Shankar Prasad.
Centre may spend $7 bn on IT’ Domestic information technology (IT) spending in the government sector is expected to grow 3.1 per cent in the year 2016, fuelled by a ‘Digital India’ initiative. According to a report released by global IT research and advisory firm Gartner the government will spend about Rs.4,700 crore ($7 billion) for various IT products and services. The forecast by the firm includes expected spending by various governments including State, Centre and local governments in the country. The IT spending for the year includes internal services, software, IT services, data centres, devices and telecom services. Gartner predicted that the growth of the software market will be led by growth in the infrastructure.
Centre may appoint independent regulators for professional services The government is planning to appoint independent regulators for services such as medicine, law, chartered accountancy, cost accountancy and company secretaryship. According to sources in the commerce ministry, the existing structure of a regulator-cum-professional body for these services has resulted in several alleged instances of conflict of interest. This hurt the credibility and reputation of these bodies and hampered India’s attempts to secure Mutual Recognition Agreements (MRA) with other countries to enable easier temporary movement of skilled workers and professionals across borders, according to sources.
Govt may set up 29 port-based coastal corridors The government has suggested setting up 29 portbased coastal industrial corridors across 14 coastal economic zones to boost exports and employment. These corridors, envisaging a total investment of Rs.1 lakh crore, would provide employment opportunities to nearly one crore people and boost exports by $110 billion in the next 10 years, according to a statement from the Shipping Ministry.
The project is part of the National Perspective Plan 2016.
to make compliance under the forty-four labour laws completely electronic over the next two years.
Govt. starts UBIN drive for budding entrepreneurs
The companies argued that every year 500 crore sheets of paper went into complying with the current labour laws and maintaining physical registers were proving to be a huge administrative burden for the employers.
The government has started the process for issuance of Unique Business Identification Number (UBIN) to enable budding entrepreneurs set up their business without any delays, a top official said.
Renewable energy projects got loans of over Rs. 29,000 cr “Department of Industrial Policy & Promotion (DIPP) has begun an exercise for issuance of UBIN for budding entrepreneurs to start their new businesses without any delay,” DIPP Secretary Ramesh Abhishek said.
E-commerce sector to grow 51% for next four years The e-commerce sector in the country is expected to grow at 51 per cent annually to $120 billion by 2020 on the back of increasing Internet penetration, young demographic profile and relatively better economic performance, according to a joint study by Assocham and Forrester. “Increasing Internet and mobile penetration, growing acceptability of online payments and favourable demographics has provided the e-commerce sector in India a unique opportunity connect with customers,” according to the study.
Make labour law compliance fully electronic: Corpora ons Mahindra & Mahindra, Hewlett Packard and Tata group companies are among the more than 800 firms which have submitted a petition to Labour Minister Bandaru Dattatreya urging the government
Banks and non-banking financial companies (NBFCs) disbursed Rs.29,529.60 crore for renewable energy projects between February 2015 and March 21, 2016 or 41.5 per cent of the Rs.71,201.54 crore sanctioned for the period, the government said. “Over the last few years, some private banks in India have signed deals with development banks to provide loans at concessional rates,” according to a statement from the government
Loans at low rates “The Indian Renewable Energy Development Agency (IREDA) is also providing loans at low rates following its recent agreements with banks like KfW, Nordic Investment Bank, World Bank, Asian Development Bank, the European Investment Bank, and Japan International Cooperation Agency,” according to the statement. “It may be recalled that during RE-INVEST 2015, 40 major banks and NBFCs committed to provide debt funding to renewable energy projects aggregating to over 78.75 GW during the span of the next five years,” the government said. “Loans sanctioned by these banks and for renewable energy projects are 18.63 per cent of commitments made,” it said.
FACILITIES The Chamber has a conference co room which can accommodate 25 persons which can be used as a training hall for a nominal rent. LCD Projector with screen is available for use. For more details, contact the Chamber vide email : email@example.com or call 044 24349452/24349871.
Published by The Madras Chamber of Commerce & Industry, Karumu u Centre, I ﬂoor, No. 634, Anna Salai, Nandanam, Chennai 600 035 Tel 044-24349452 Fax 044-24349164 Email firstname.lastname@example.org URL www.madraschamber.in
Mcci intouch april may 16