Volume 29, Nos. 10, 11 & 12 - January 2016 – March 2016
Interactive meeting with Justice Mr.R.V.Easwar. Justice Mr.R.V.Easwar answering a query from the participants. Others in the picture L to R : Mr. Sriram Seshadri, Chairman, Expert Committee – Direct Taxes & Mr. S.G.Prabhakharan, President, MCCI
Conference on Corporate Social Responsibility.
L to R : - Ms. K.Saraswathi, Secretary General, MCCI, Mr. P S Kaushik, Sr. Product Manager, Next Gen, Mr. Santhosh Jayaram Director, Climate Change & Sustainability, KPMG, Ms. Gayathri Subramaniam, Convener & Chief Program Executive, NFCSR, Indian Institute of Corporate Affairs (IICA), Mr.S.G.Prabhakharan, President, MCCI, Mr. Lakshmi Narayanan, Vice Chairman, Cognizant Technology Solutions, Ms. Rama Kashyap,Chairperson, MCCI Expert Committee – CSR &Head – CSR, The Indian Cements Ltd., Mr. Ashoke Joshi, Chairman, Srinivasan Services Trust, Mr. Ashesh Ambasta, VP, Head of Social Investments, ITC Ltd., Mr. V S Ramana, Member, MCCI Expert Committee – CSR & G M – CSR & Construction Skills Training, L & T Ltd., and Mr. V.M. Rajasekaran, Co Chairman, MCCI Expert Committee – CSR & CEO, ITC Ltd.
Workshop on Central Budget and the Finance Bill 2016-17 L to R: Chief Guest Dr. Sunder Ramaswamy, Officiating Director& Visiting Distinguished Professor, Madras School of Economics, Ms. K.Saraswathi, Secretary General, MCCI, Mr.K.Vaitheeswaran, Chairman, Expert Committee – Indirect Taxes, Mr. Ram Venkataramani, Vice President, MCCI & Mr. Sriram Seshadri, Chairman, Expert Committee- Direct Taxes
IN THIS ISSUE From the President’s desk Chamber’s Activities Flagship Activity
X Training & Practical session on New e-CTax Project by the officials of the Commercial Taxes Dept. Government of Tamilnadu
XWorkshop on Central Budget and the Finance Bill 2016-17
Doing the Honors
XInteraction Meeting with Hon’ble Minister of Trade, Industry & Tourism Mr. Faiyaz Koya
XConference on "Corporate Social Responsibility - The Next Phase"
Together we grow
Sowing the Seeds
XWorkshop on Crisis Management jointly with Deloitte
X Workshop on Domestic Enquiry X Certificate Course on Industrial Relations X Interactive Meeting with Justice Mr.R.V.Easwar X Program on Negotiation Skills jointly with Business Standard
XInternational Summit on Innovation & Leadership DNA'2016 - MOP Vaishnav College for Women XExim Bank Interactive Session on the GOIs new Guidelines of Credit (LOCs) to Overseas Govt. MCCI as Associate Partner
XProgram on Annual Change Makers Day jointly with Unltd & IIT XIndia South East Asia Relationship Business Summit 2016 - Jointly with LIBA XWater Expo 2016 XWorkshop on Health & Safety Measures for Automobile & Engineering Sector
General Committee Expert Committees Other Meetings Experts’ Corner Flash News Chamber in the news Fire up What’s happening?
Has the Union Budget 2016-2017 delivered on our expectations? In India presentation of Union Budget is like a festival! A lot of hype normally moves around that, before and after the same is presented. For the industry and business it is a signal as to which direction the Government wants to travel and what awaits the business to make their life easy or complex. The Union Budget 2016-2017 was tabled on February 29th by the Finance Minister, Mr. Arun Jaitley who was under pressure to deliver on promised reforms, after last year’s budget met with a cool response in many quarters for its lack of “big bang” announcements. The finance ministry had promised that the 2016-17 budget will be “growth-oriented” in the face of a global climate that appears significantly more challenging than last year. India is seen as a relative bright spot in the world economy, after a slowdown in China, collapsing commodity prices and recession in other big emerging markets which sent stock indexes tumbling. It was made clear by the Finance Minister that this year’s Budget agenda is to undertake transformative measures and outline several programs with the identified nine priorities of the Government. The first priority being, Agriculture and Farmer Welfare, the budget contained many positive initiatives for agriculture and rural development broadly relating to irrigation, rural infrastructure and marketing. A huge outlay of Rs. 17000 crores for the Pradhan Mantri Krishi Sinchai Yojana (PMKSY), apart from allocations for crop insurance and others, shows the encouragement given to this sector. Similarly, the rural sector had it share of allocation to strengthen the rural areas with 100% electrification, literacy scheme etc which is a welcome move. It is time for the country to move towards creating a social security net and the announcements like increased health cover for the elderly and individual families, LPG subsidy for rural households, setting up a fund for financing higher education, tax exemption for NPS, thrust for affordable housing are all moves in that direction. It is heartening to find education listed amongst the ‘9 pillars’ identified by the FM for this year’s Budget. Budget allocation of Rs 68,968 crore will play a significant role in the inclusion of entire education sector, from secondary schools to higher education and research centers. Further the focus on skilling, new job creation and research focused higher education would go a long way in the overall development of the Country. Containing the fiscal deficit within 3.5% is a very credible step for the financial markets. In the financial sector, the reforms to include allocation of Rs.25000 crore towards recapitalization of PSBs, the proposal for a Central Law to check unauthorized money raising schemes, NBFCs being made eligible for 5% deduction for provision against bad debts are all impressive proposals. A major positive of the budget is the thrust given to a robust transport. In addition to huge
outlays proposed, opening of road transport sector and the amendments to the Motor Vehicles Act, Introduction of Public Utility Bill, Renegotiation of PPP Concession Agreements, FDI liberalization will boost this sector. Higher spends on road infrastructure will improve supply chain efficiency and reduce the wastage of perishable commodities. Another major step is the government’s measures to incentivize the start-up ecosystem, by clearly recognizing that start-ups can be powerful problem solvers for the myriad issues facing the country and in turn generate employment as well. This is one of the favorite subjects of the Madras Chamber which launched SEE (StartUp Entrepreneur Ecosystem) end last year and actively pursuing activities under the same. The government’s decision to allow for 100% deduction of profits for three out of five years is certainly a welcome step that will boost start-ups. However, the continuation of MAT at the same rate is discouraging. Further, from the point of view of the Industries and with regard to the trade related transactions, the doing away of multiple and unproductive cess (though parallelly a new Krish Kalyan Cess has found a place), the decision to have a relook at the Companies Act, deferment of payment of custom duties for large exporters in line with Central excise duty procedure, implementation of single window clearances using the EDI platform for custom transactions with a view to reducing transaction time and cost, replacing physical control of bonded goods with technology to ease of doing business are all welcome moves. On the flip side, there is nothing innovative in the budget that could boost investment in the manufacturing sector to support the ‘Make in India’ agenda of the government. The real job creation and economic growth will come with boosting the manufacturing sector. But sadly, this sector including the auto sector has not received its due share of attention in this budget and this is Chamber’s one of the main concerns. Secondly, though the service tax is not increased, the much awaited reduction in corporate tax did not happen in any significant manner. The proposal to levy tax on non corporate investors on the dividend received is a retrograde step, since it amounts to double taxation and may not be equitable. Thirdly, the much awaited Goods and Services Tax (GST) is yet to see the light. Overall, this budget is a clear shift towards boosting the rural and social sectors and let us be positive that this, along with the thrust given to infrastructure would cascade the effects on the other sectors. In the backdrop of the prevailing global scenario, Budget 2016 is a good pragmatic balancing act, given the strong headwinds on both the global and the domestic economic front. Let us hope that the promises made in the budget are delivered through effective on the ground execution. Wishing all the members a very Happy Tamil New Year !
From the President’s desk
SG. Prabhakharan President
Chamberâ€™s Activities FLAGSHIP ACTIVITY Workshop on Central Budget and the Finance Bill 2016-17
s is the practice of the Chamber, a Workshop on Central Budget & Finance Bill 2016-17 was organized on March 2, 2016 at Hotel Raintree, Anna Salai , following the release of the Union Budget on 29th February by the Finance Minister, Government of India. Mr. Ram Venkataramani, Vice President, MCCI welcomed the audience and touched upon the impact of the budget in general and more particularly on the auto industry and its ancillaries. Dr. Sunder Ramaswamy, Special Guest for this program gave a global perspective of the budget. He made an analysis on select aspects which captured the essence of the budget, which when implemented would impact the growth of the economy not just in 2016-17, but continuously for a long term. His approach towards the budget was positive and he called it a pragmatic budget. He interacted with the participants and answered their queries. Mr. Sriram Seshadri, Partner, PWC and Chairman, MCCI Expert Committee on Direct Taxes made a succinct analysis of the entire range of issues concerning Direct Taxes which helped the participants gain a comprehensive understanding of the recent changes effected and their likely impact.
Mr.Ram Venkataramani, Vice President, MCCI welcoming the Chief Guest and gathering
Mr.K.Vaitheeswaran, Chairman, MCCI Expert Committee on Indirect Taxes making a presentation. The other speakers are Mr.M.R.Venkatesh, GC Member & Mr.Sriram Seshadri, Chairman, MCCI Expert Committee on Direct Taxes
Mr.K.Vaitheeswaran, Advocate & Tax Consultant and Chairman, MCCI Expert Committee on Indirect Taxes made the analysis of the gamut of complex issues in the Indirect Taxes proposals armed by Oscar films and other films analogy, which provided an interesting and easy understanding to the participants. Mr. M.R. Venkatesh, Partner, GSV Associates & Chairman, MCCI Expert Committee on Economic Affairs summed up the program and delivered the vote of thanks. The program was ver y well attended by 90 participants..
A view of the audience
SPECIAL PROGRAM Conference on “Corporate Social Responsibility - The Next Phase”
he Chamber, under the auspices of the CSR Committee organized a Conference on “Corporate Social Responsibility – The Next Phase” on Friday, 26th February 2016 at Hotel ITC Grand Chola, Guindy, Chennai. The objective of this Conference was to understand the path of CSR post 2013 regime and the challenges and opportunities faced by the Corporate and the other Institutions while carrying out their CSR activities. Mr. S.G. Prabhakaran welcomed the participants.
Ms. Rama Kashyap, Chairperson, Expert Committee on CSR gave an overview of the Conference. Mr. Lakshmi Narayanan, Vice Chairman, Cognizant Technologies inaugurated the Conference and addressed the audience. In his address, he stated that CSR should be based on 3Ts, namely Technology, Transparency and Trust. He further added that there has been a gradual evolution of CSR and the idea of CSR is to promote the growth of private involvement and turn into a development model along with social improvement.
Galaxy of speakers
Ms. Rama Kashyap
Mr. V S Ramana
Mr V M Rajasekaran
Mr. Santosh Jayaraman
Mr Lakshmi Narayanan
Mr Ashesh Ambasta
Mrs. Gayathri Subramaniam
Mr. P S Kaushik
Mr. Ashoke Joshi
Chamber’s Activities Ms. Gayathri Subramanian, Convener & Chief Programme Executive, IICA, made a presentation on the CSR applicability with effect from April 1, 2013, the implementation process of CSR and on the amount spent by the companies on CSR in the year 2014-2015. Mr. Santosh Jayaram, Director, Climate Change & Sustainability, KPMG made a presentation about CSR on the road travelled so far. He elaborated on why CSR became a part of the Companies Act. He stated that CSR was included to improve governance in Companies and develop trust with the public at large. He added that the mandatory 2% have to be spent in the local area and it is the effectiveness with which it is implemented that matters and not the amount spent.
Mr. Ashesh Ambasta, VP, Head of Social Investments, ITC Ltd., made a presentation on the CSR through Corporate lens and about ITC Ltd’s., CSR activities. Mr. P.S Kaushik Senior Market Manager, NextGen made a presentation on the Role of NGO’s in CSR followed by Mr Ashoke Joshi, Chairman, Srinivasan Services Trust, who made a presentation on the activities of the Srinvasan Services Trust and how to link corporate and beneficiaries through CSR. The questions and answers session was moderated by Mr.V.S.Ramana, G M – CSR & Construction Skills Training, L & T Ltd. and member of the CSR Expert Committee. Mr. V.M. Rajasekharan, CEO, ITC Ltd. and Co Chair of the Expert Committee summarized the day’s events and delivered the vote of thanks.
Sowing the Seeds Workshop on Domestic Enquiry
he Chamber organized a workshop on Domestic Enquiry under the auspices of the HR/IR Committee on 22nd January 2016 at Hotel Savera, Chennai This workshop was to understand the practical and field level procedures for scientifically handling domestic enquiries which is a very important component of Industrial relations. Mr. Anand Gopalan, Partner, TS Gopalan & Co & Chairman, MCCI Expert Committee on HRD & Legal, welcomed the participants and gave an introduction about the Workshop.
Mr.Anand Gopalan, interacting with Audience.
Mr.Akbar Khan, HR Consultant, Formerly General Manager (P & A),Ashok Leyland Ltd., Mr. Ravindran, Advocate and Mr. Anand Gopalan handled the sessions covering topics such as handling misconduct, to the nuances and procedures of conducting domestic enquiry. The feedback from 30 participants was excellent. The Chamber plans to conduct similar workshops in other places such as Madurai and Coimbatore as part of the outreach programs to benefit the Industries.
Mr.Akbar Khan making a presentation
Certificate Course on Industrial Relations
he Chamber under the auspices of the HR/IR Expert Committee is conducting a comprehensive cer tificate course on Industrial Relations on the theme - “Proactive Industrial Relations for Enhanced Productivity and Harmony.” The Course is covered in 36 sessions with each session for 90 minutes. The classes are conducted every Saturday for 3 hours commencing from 30th January to 9th April 2016. The varied topics covered include Factories Act, Industrial Democracy, ID Act and Collective Bargaining, Contract Labour Act etc. Ms. Kalaivani, Joint Labour Commissioner, Department of Labour, Government of Tamil Nadu inaugurated the course and addressed the participants on 30th January 2016 after which the
Ms Kalaivani, Joint Commissioner of Labour interacting with participants
first session commenced. Mr. Akbar Khan HR Consultant, Formerly General Manager (P & A), Ashok Leyland Ltd., handled the session dealing with major constituents of Industry, namely, Industry, Trade Union, Employers and Employees and State. The classes are being held regularly on Saturdays. The Course would be completed in the first week of April 2016. Experienced faculty in the field of Industrial Relations, like Mr. Akbar Khan, Mr. Anto Vincent, HR Consultant, Mr. Anand Gopalan, Partner, TS Gopalan & Co., & Chairman, MCCI Expert Committee on HR & and Mr. Sridhar Rajagopalan, Country Head, HR & LR, Caterpillar have been handling the sessions. 26 participants have registered for this course. The feedback on the sessions so far have been excellent.
Interactive Meeting with Justice Mr.R.V.Easwar
he Chamber organized an interactive meeting with Justice Mr. R.V.Easwar, Chairman of the Committee constituted for simplifying the provisions of the Income Tax Act 1961 on 10th February 2016 at Hotel GRT Convention Centre. Mr. S.G. Prabhakharan, President, MCCI welcomed the audience and gave an international perspective of Taxes and set the context for the discussion. Mr. Sriram Seshadri, Chairman, Mr Sriram Seshadri, Chairman, MCCI Expert Committee on Direct Taxes making a presentation Direct Taxes Committee made a presentation on the representations simplification. This presentation was a culmination of the efforts of the of the Chamber for income tax Direct Tax Committee which had a series of meetings/con calls with the
Chamber’s Activities committee members and external experts to include all concerns in our representation. Justice Mr. R.V.Easwar spontaneously answered all the queries during the presentation in the questions and answers session. He said that he was impressed with the informative session on tax reforms and expressed appreciation for the commendable work of the Direct Taxes Committee.
The memorandum containing the Chamber’s comments and suggestions was submitted to Justice Mr. R.V.Easwar. The participants took an active part in the questions and answers session and gave an excellent feedback for the meeting organized by the Chamber.
24th February 2016
Program on Negotiation Skills jointly with Business Standard
he Chamber in association with Business Standard Ltd. organized a program on “Negotiation Skills” on 24th February 2016 at the Conference room of the Chamber. This was part of the series of training programs organized by Business Standard under its banner “Primer” for the Trade Associations and Industry bodies focusing on skill development, particularly for SMEs.
Participants with Faculty, Business Standard Officials & Chamber Secretariat during the Workshop.
T h e Re s o u r c e p e r s o n w a s Mr. Balaji Bharadwaj, Director, AirSea Forwarders India Pvt. Ltd., There was positive feedback from
the 26 participants who took part in this program. The Chamber has plans to do a joint program with Primer every month covering varied topics relating to HR Skills.
20th February 2016
Training & Practical session on New e-CTax Project by the officials of the Commercial Taxes Dept. Government of Tamilnadu
he Chamber under the a u s p i c e s o f t h e VAT Committee, organized a Training and Practical session on New e-CTax Project by the officials o f t h e C o m m e r c i a l Ta xe s Department, Government of Tamil Nadu on 20th February 2016 at the E-hotel, Chennai. M r. P. R . S u b r a m a n i y a n , Chair man,VAT Committee
L to r : Mr. T. Amarnath, Mr. Venkat Prakash, Mr.D. Soundararajapandian, Mr. P.R. Subramaniyan & Mr. S. Ramaswamy
Chamber’s Activities welcomed the Officials of the Commercial Taxes Department and presented the concerns of Industries and suggested changes for easing the transactions and implementation. The following Officials from the Department took part in the training session. They made presentations and interacted with the participants and answered their queries. Mr.S.Ramaswamy, Deputy Commissioner (System), Commercial Taxes, Govt. of TN Mr.M.S.Ifthikar Ahamed, Deputy Commissioner (System), Commercial Taxes, Govt. of TN
Mr.Venkat Prakash, Tata Consultancy Services (TCS) Mr.Ramandeep Goyal, Tata Consultancy Services (TCS) The VAT Committee members agreed to consolidate the requests made by Industries and send a representation to the Officials to consider factoring the same in the software. The meeting was well attended by 97 participants and the feedback was positive as they had an opportunity to interact directly with the Officials.
DOING THE HONORS 5th February 2016
Interaction Meeting with Hon’ble Minister of Trade, Industry & Tourism Mr. Faiyaz Koya
he Chamber organized an interactive meeting with Mr. Faiyaz Koya, Hon’ble Minister of Industry & Trade, FIJI, who was accompanied by Mr. Truman Bradley, Chairman, Tourism FIJI on 5th February 2016 at Hotel Raintree, Alwarpet, Chennai. Mr.S.N. Srikanth, Senior Partner, Hauer Associates, Member of Expert Committee on Logistics has been appointed as the Honorary Consul of FIJI. Mr. J.Krishnan welcomed the Hon’ble Minister. The Minister and the Chairman addressed the participants about the prospects of doing trade in FIJI and answered various queries relating to doing
Mr. Faiyaz Koya, Hon’ble Minister of Trade & Industry, FIJI addressing the audience. Others in the picture – L to R : Ms. K.Saraswathi, Secretary General, MCCI, Mr. J. Krishnan, GC Member, Mr. Truman Bradley, Chairman, Tourism FIJI, and Mr. S.N.Srikanth, Senior Partner, Hauer Associates
business with FIJI. They welcomed the participants to the “Paradise on Earth”.
TOGETHER WE GROW
22nd January 2016
Workshop on Crisis Management jointly with Deloitte
he Chamber had a Workshop on “Crisis Management in an Age of Uncertainty” as the first activity under the Back 2 Business Help Desk on 22nd January 2016 at Hotel GRT Grand, with Deloitte as the Knowledge Partner. The objective of the workshop was to obtain a holistic understanding of crisis management and to discuss practical aspects, particularly in the aftermath of the recent floods. The Resource person Mr. Amry
Ms.K.Saraswathi, Secretary General welcoming the speakers and the audience.
Junaideen, President, Enterprise Risk Services from Deloitte India, who has more than 20 years of diversified global experience shared his experiences of crisis management at different situations in different countries. Mr. Senthil Ramasamy, VP – Global Head of BCM at Cognizant Technology Solutions made a presentation followed by a panel discussion moderated by Mr.Ravi Veeraraghavan, Partner, Deloitte Haskins & Sells and Co Chairman, Expert Committee on IT/ITes . The Panel Discussion had the following speakers share their views on Crisis Management. Mr. R. Vaidyanathan, Director & Head - BCM CoE & Client Services, Cognizant Technology Solutions
Mr. S. Vaitheeswaran, Executive Director - Sales nd Support Services, Sundaram BNP Paribas Fund Services Ltd Mr. G. Ananda Narayanan, India Cements Ltd Mr. N. Ramakrishnan, Senior Vice President Computer Age Management Service India Private Limited Mr. George Ittyerah, Director, Enterprise Risk Services, Deloitte India The resource person and the panelists answered the queries of the participants. The general feedback was good and the participants expressed their interest to have more of such programs.
23rd January 2016
International Summit on Innovation & Leadership DNA’2016 MOP Vaishnav College for Women - MCCI Supporting Partner
he Chamber jointly with MOP Vaishnav College for Women, Chennai, organized the “Innovation and Leadership DNA Summit 2016” on 23rd January at MOP College Auditorium. The objective of this conference was to understand India’s leadership DNA and to educate and to
implement talent management tools and practices in an organization for identifying and investing in future leaders. In the Inaugural Session, Mr.S.G. Prabhakharan addressed on the topic” Innovative leadership – An evolving and dynamic process”. He stated that
Chamber’s Activities leadership evolved in two dimensions – Innovative thinking and Business Thinking and gave examples and set the tone for the Summit. The Chief Guest Mr. C V Subba Rao, Deputy Managing Director (Shipping) – Sanmar narrated a few live innovative leadership stories that focused on people centricity and simplicity. He made it clear that the unique innovative leadership traits required for success are responsibility, simplicity, inspiration and understanding customer needs. The first technical session on “Trait Identification in Leaders”, had two women leaders, Dr. Rekha Shetty, Managing Director, Minds Power and Ms. Gowri Thiyagarajan Mukherjee, CMO & Co-Founder – Creditmantri sharing very innovative insights on leadership traits such as commitment, perseverance, motivation and out of the box thinking.
Mr.S.G.Prabhakharan, President, MCCI delivering the special address.
The second technical session on “Leading Through change” by Mr. Venu Srinivasan, Managing Director – Leo Coffee, showed how social media has brought a changed to leadership. In the third technical session on “Crisis Management by Leaders”, Mr. T N Manoharan, Chairman MCA Group, clearly defined the solutions for managing crisis by highlighting a few cases. He highlighted the fact that determination and dedication is the key for a successful leader. The post lunch panel discussion on “Testing times – The Indian leadership forecast” hosted a dynamic array of speakers from fields of sports, media, spirituality, business, trading and education such as : Mr. N K Ranganath, Managing Director & CEO – Grundfos India Mr. Sunil Subramanian, Head Cricket Coach – TNCA Academy Mr. Arun Kumar, Assistant Editor - DT Next Dr. Goda Venkateswaran Sastrigal, Spiritual leader Mr. Y Rama Rao, CEO – Spark Capital Mr. Mahalingam Krishnamurthy, Partner & Director – TSM Group of Companies
Mr.T.Shivaraman, Immediate Past President, MCCI & Managing Director & CEO, Shriram EPC Ltd addressing the gathering at the valedictory session
All the speakers spoke about inspirational and influential leadership in their respective fields. The panel discussion moderated by Dr. Vaidya Subramaniam, Dean – Planning & Development, Sastra University rightly set the platform for the future Indian leadership arena. The Valedictory session topic was “Investment in future leaders” Mr. T. Shivaraman, Managing Director & CEO - Shriram EPC Ltd. & Immediate Past President, MCCI stated that the present generation should concentrate on teamwork to work towards the common objective of the organization. He further added that it is essential to learn about work discipline from the Western countries to balance work and personal life.
Chamber’s Activities 1st February 2016
Interactive Session on GOI’s new Guidelines for LOCs to Overseas Government organized by EXIM Bank
he Chamber was the supporting Partner for the “Interactive Session on GOI’s new Guidelines for LOCs to Overseas Government organized by EXIM Bank along with CII and FICCI on 1st February 2016 at Hotel Raintree, Anna Salai, Chennai. O n b e h a l f o f M C C I , M r. J.Krishnan, GC Member made a presentation on the Guidelines for New Lines of Credit and the Chamber’s role. He highlighted the advantages of the new LOC, elaborated on the priorities for selection under LOC, dissemination and the existing projects. He added that the Chamber could play a major role in dissemination of information to potential Industries for availing LOC through its c o n t a c t s. H i s p r e s e n t a t i o n was greatly appreciated by the Participants.
Mr.J.Krishnan, Member, General Committee, MCCI making a presentation
The other sessions had presentations on New IDEAS Guidelines, highlighting Changes and improvements by Shri Arun Sobti, Under Secretary [IDEAS], Department of Economic Affairs, Ministry of Finance, Government of India and Shri Ajit Gupte, Joint Secretary, Development Partnership Administration Division, Ministry of External Affairs, Government of India. Mr. David Rasquinha, Deputy Managing Director, Exim Bank concluded the session with a presentation on Operational aspects of New IDEAS Guidelines and Success Stories.
5st February 2016
Program on Annual Change Makers Day jointly with Unltd Tamil Nadu & IIT
he Chamber was the Industry Partner for the Annual Change Makers Day 2016 jointly organized by UNLtd Tamil Nadu and IIT on 5th February 2016 at IIT Madras. Ms. Saraswathi addressed the participants on the Chamber’s role in Change Process and briefed the participants about the SEE initiative of the Chamber. The Inaugural Session had the key note address by Mr.Sriram Iyer, Ashoka Fellow & Founder, Nalandaway Foundation followed by speakers from Ashoka Youth Venture, Associate Professor from IIT, speaking on the different dimensions, such as Youth, Gender, Technology, Health and Agriculture
Ms.K.Saraswathi, Secretary General addressing the Gathering
Chamber’s Activities Besides extending support for the program, the Chamber had also made available experts for the Content Carousel which was a platform for potential entrepreneurs to seek guidance and support in specific domains like marketing, resource mobilization etc on a one to one basis with experts. The following experts provided necessary guidance to potential entrepreneurs who sought clarification on taking their initiatives forward. • •
Mr. J. Raghunathan, Founder, KGIG and Chairman, Expert Commitee on IT/ITes Ms. Sareetha Sugunan, Founder, Pepercorn communications
Mr. J. Raghunathan, Chairman, MCCI Expert Committee on IT/ITes and Ms. Sareetha Sugunan, interacting with the participants during the Content Carousel
Mr. S. Gopal, Ex MD, Chemplast Sanmar Ltd.,
Ms. Rosy Fernando, Founder, Startup
The feedback received from UN Ltd Tamil Nadu for the guidance provided was positive.
MARGARET SIDNEY HOSPITAL 13, 7th Street, Chennai 600061 t: 22672464, 22672466, e: firstname.lastname@example.org One of the many beneficiaries of RANE Group’s generosity originated in Nanganallur, a Chennai suburb, where a local NGO named Ganesh Mandali started a “Health Center” in 1970 in a hut to serve the residents of that area. Providentially, Rane’s Engine Valves operation was located nearby. The Head of Engine Valves’ UK Collaborator, Mr Sidney Lewis, happened to visit the area and helped establish a small hospital with a generous contribution, and named it after his wife. Thus came into being the Margaret Sidney Hospital, a small 4-bed unit at Nanganallur, supported and managed by the Ganesh Mandali Engine Valves Trust. The year 1983 brought the newly established Rotary Club of Madras Central and Ganesh Mandali Engine Valves Trust together, an arrangement was arrived at for Rotary Club of Madras Central to take over the responsibility of running the hospital on a day-to-day basis. Thirty-three years, numerous operational challenges, and financial crises later, Rotary Central Margaret Sidney Hospital is now a vibrant and financially sound 25-bed hospital. With three operating theatres, fully equipped laboratory, maternity, dental, ophthalmology units, 24-hour pharmacy and all other supporting facilities, it is now a full-fledged hospital serving the residents of Nanganallur and adjoining areas. A special feature is the “Clinic on Wheels”- a fully equipped mobile unit that visits remote areas every Sunday and conducts free health camps besides providing primary health care for those in need. A corpus fund of over Rs 1 million generates funds for treating poor patients free of cost. Almost 30,000 Out Patients, 1000 In Patients are treated annually including 500 surgeries. In addition, about 36,000 patients are treated absolutely free of cost annually through numerous hospital and field health camps.
12th February 2016
India South East Asia Relationship Business Summit 2016 - Jointly with LIBA
he Chamber was the Industry Partner for the Business Summit 2016 – India South East Asia Relationship: Business & Beyond organized by the Loyola Institute of Business Administration on 12th February 2016. This Annual Summit focused on India South East Asia Relationship – Business and Beyond. Dr.T.A Sivasubramaniam, Director, LIBA, in his Welcome address gave an overview on Global Economy and emerging opportunities for Entrepreneurs Mr. S.G. Prabhakharan, President – MCCI, addressed the gathering bringing to light the potential business opportunities that ASEAN countries offer. He added that it is time that we “Act East”.
Mr. Saut Siringoringo, Consul General – Republic of Indonesia, addressing the participants. Others in the picture : Dr. T.Sivasubramanian, Director, LIBA, Rev. Fr. A. M. Francis Jayapathy, Rector, Loyola College, - Dr Daniel Babu Paul, IAS - Former Chief Secretary, Government of Kerala, Mr. S.G. Prabhakharan, President-MCCI, Dr. Jebamalai Vinanchiarachi - Chairman, Experience Foundation and Former Principal Adviser to the Director General – UNIDO, Dr.U.Srinivasa Raghavan, Professor, Strategic Management and Marketing, LIBA
Guest of Honour Mr. Saut Siringoringo, Consul General of the Republic of Indonesia, drew attention to the current business ties with Indonesia and the future key prospects for business between the two countries. He highlighted the tremendous technological leaps achieved by sectors like IT, Biotech, Health Care & Automobiles. Special guest Dr. Jebamalai Vinanchiarachi - Chairman, Experience Foundation and Former Principal Adviser to the Director General – UNIDO deliberated on the East Asian model of Development and best business practices in Hong Kong, Singapore, Korea, Indonesia, Thailand and Malaysia. The key note address was delivered by the Chief Guest - Dr Daniel Babu Paul, IAS- Former Chief Secretary, Government of Kerala
The Business Summit had two sessions, one to share the business environment and policy of the South East Asian Countries and the other to share the best practices of doing business with South East Asia. Mr. A.M. Rafiq, AMR Energy who exports to Indonesia agreed to the Chamber’s request to share his experiences of doing business with Indonesia and addressed the participants. Faculty & Students of LIBA and delegates from various industries attended the summit. The Business Summit laid a path to business opportunities, job opportunities and social relations among India and South - East Asian countries.
3rd-5th March 2016
Water Expo – 2016
ater Today Pvt. Ltd. organized the 10th Edition of Water Expo from 3rd March 2016 to March 5th 2016 at Chennai Trade Centre, Nandambakkam, Chennai. The Chamber which has been one of the supporting organizations in the earlier three editions of water expo in Chennai, as part of its Sustainable Chennai Forum (SCF) activities, extended its support for this edition as well. MCCI had a stall space to showcase its activities under Sustainable Chennai Forum (SCF), which helped in creating awareness about the Chamber’s activities under SCF to the visitors. The Chamber had the opportunity to interact with the other exhibitors who are active in water management. Further, there were a few enquiries for membership which are being intensely followed up.
A visitor enquiring about Chamber’s activities in MCCI’s stall in Water Expo
Chamber’s Activities 16th February 2016
Program on “COP 21 - India’s commitments and Possible Business Opportunities”
Mr. S. Prabhakharan, President, MCCI welcoming the gathering. Others seen in picture l to r: Mr. Bhoovaraham Thirumalai, Dr. Sudhir Chella Rajan, Mr. Bharat Joshi, Dr. K.V. Swaminathan, Mr. V. Subramanian, Mr. K. Venugopal and Dr. C.K. Subramanian.
he Chamber joined hands with Waterfalls Institute of Technology Transfer (WITT), New Delhi and organized a Seminar under its SCF banner on “India’s Commitments in COP21 and emerging opportunities for Businesses” on 16th Feb at Hotel GRT Convention Centre. The initial talks made by Mr S G Prabhakaran, President of MCCI and Dr K V Swaminathan, founder-Chairman, WITT set the stage for fruitful discussions directed towards future actions. This was followed by Six Expert Lectures: (i) Mr. V.Subramaniam, former Secretary (MNRE, Govt. of India) “Updates from
the Paris Climates Summit 2015 and its impact in the Indian context”; (ii) Mr. Bharat Joshi, Dy. High Commissioner, British High Commission, “Highlights from COP21 deliberations and Global Cooperation Possibilities”; (iii) Prof. Sudhir Chella Rajan, Head-IGST (IIT-Madras), “Energy Transition initiative in Germany and their relevance to India”; (iv) Dr. C.K.Subramanian, Professor, VIT “Development in Solar power Technology and Distribution Energy System”; (v) Mr. K.Venugopal, Director – Kasturi & Sons, “Renewable Energy Sustainability”; and (vi) Mr. Boovarahan Thirumalai, CEO – Aspiration Energy & Solar, “Industry readiness to explore the opportunities and assessing the concerns”. These were followed by a panel discussion led by Mr N.R.Krishnan, former Secretary, Ministry of Environment, GoI, followed by Mr.P.B.Varadarajan, President-REHENA, Dr. S Gomathinayagam, Director, National Institute of Wind Energy, S. Venkatachalam, MD, Orient Green Power Co. Ltd., Mr V Subramaniam and Mr K Venugopal. Several participants interacted actively with the Panellists and Expert speakers. The discussions revealed several facets that need to be addressed in detail as Entrepreneurs,
Chamber’s Activities Academic Institutions and Industrial organisations enter the field to operationalise the technological advancements & developments and become gainful participants in the opportunities that have emerged. The program was attended by 100 participants The Seminar adopted the following recommendations for further action. (i) Since India’s per capita fossil fuel emissions are still very small in the global context, efforts should continue to optimally use our fossil fuel resource in future. (ii) In pursuing the renewable energy targets, India will continue to expand its nuclear power base; while installed capacity of Solar and Wind power will grow several folds in the next few years, the special problems relating to their being not 24 X 365 should be addressed not only technically but also in a market friendly manner. (iii) The potential for integration of Solar, Wind, Biomass and Gas, as may be appropriate, will strengthen the economic viability of each one of the sources. Special incentives at
Dr. K.V. Swaminathan interacting during the Q & A Session of the Panel Discussion (l to r: Mr. S. Venkatachalam, Dr. S. Gomathinayagam, Mr. N.R. Krishnan, Mr. K. Venugopal & Mr. P.B.Varadarajan
working level covering small investors are essential to facilitate their integration. (iv) Indian industries should lead the way ahead with Industry leaders investing early in renewable energy and their feedback should reduce the unit cost for future investment; they should also cover R&D at the Industry level to build a robust frame for development of future technologies needed not only in India but also in many other countries having high renewable energy potential. (v) R&D should be done not only in developing new technologies for power development, but also on aspects covering easy storage, distribution, metering and avoiding wastage of energy at the user end. (vi) Tariff rates should be carefully and favourably introduced encouraging the small scale large number of producers and consumers of renewable energy. (vii) While visionaries look at long term goals and gains, it is difficult for the average Industry to look beyond short term gains or losses. National policies should be framed on a realistic base, cutting across state priorities. Thus inter-state trading of renewable energy should be facilitated from a national perspective. (viii) Capacity building should be strategically planned. While we may wish for early rapid growth, is it likely that later investments will have the advantage of a more modern technology which may be more efficient & cost effective
11sh March 2016
Workshop on Health & Safety Measures for Automobile & Engineering Sector
he Chamber jointly with Directorate General Factory Advice Service & Labour Institutes (Mumbai), Ministry of Labour & Employment, Govt. of India (DGFASLI) organized a one day” Workshop on Health & Safety Measures for Automobile and Engineering Sector” at the Conference room of the
Chamber on 11th March 2016 The objective of the workshop is to understand the policy changes in the Health & Safety Act, the various precautionary measures to be followed at the workplace and responsibilities of the Employers & Employees at the workplace.
Chamber’s Activities Dr. R K Elangovan, Deputy Director General, DGFASLI, Mumbai and his team were the faculty The range of topics covered included Overview of the Factories Act 1948 •
National Policy in Workplace
Safety & Robots
Concerns on Electrical safety
Fire safety requirements
Welding gas & Cutting safety • measures
Machine operations, grinding The workshop was attended by 21 participants from the manufacturing & safety measures sector and the feedback was positive. Joint Certificate was issued to the Overall Plant and Machinery participants. safety
Dr.R.K.Elangovan, Deputy Director General, DGFASLI interacting with participants
Noise elimination & vibration
other meetings 11th January 2016
24th March 2016
Site Visit to Chennai Port Trust with Global Trade Management Course Participants
Diploma in Global Trade Management – MCCI with University of Madras, Chennai. – Certificate Distribution at Conference room, MCCI
he Chamber had made arrangements for site visit to Chennai Port Trust for the participants of the Global Trade Management Course conducted jointly by the Chamber and University of Madras, Chennai
Students of Global Trade Management Course during their field visit at Chennai Port Trust
he Chamber in association with the University of Madras had arranged for a meeting with the participants for distribution of certificates. Dr. S. Gurusamy, Professor and Head, Department of Commerce, University of Madras distributed the certificates to the participants.
Dr. S. Gurusamy, Professor and Head, Department of Commerce, UNOM distributing the certificates to the participants.
Chamber’s Activities 28th January 2016
Meeting with IIT Professors regarding Chennai Floods – Short and Long Term Measures
r. K. Murali, Professor, Department of Ocean Engineering, IIT Madras, Chennai and Dr. Balaji Narasimhan Department of Civil Engineering had a discussion with Mr. S.G.Prabhakharan, President, MCCI, Mr. T. Shivaraman, Immediate Past President, MCCI, Ms. K.Saraswathi, Secretary General, Mr. P.B. Varadharajan, Co Chairman, Expert Committee on Energy and Mr. S.Sankaranarayanan, Deputy Secretary, MCCI at the President’s office on 20th January 2016 regarding the Chennai Floods - Short and Long term measures. Dr. Balaji made a presentation on the quantity of water on the land and overflow from reservoirs and Dr. Murali made a presentation on flood simulation, drainage and coastal flooding.
4th February 2016
Discussion on Recent Amendments on the Payment of Bonus Act 2015
he Chamber had organized a meeting under the auspices of the Legal Committee on the Recent Amendments on the Payment of Bonus Act 2015 on February 4, 2016. Mr. Anand Gopalan, Chairman, Expert Committee on Legal made a presentation and had a discussion with 35 participants from different sectors.
Mr. Anand Gopalan, Chairman, MCCI Expert Committee on HR & Legal interacting with the participants
23rd February 2016
Discussion with the State Planning Commission
he Chamber, represented by the key members of the Logistics Committee, had a meeting at the State Planning Commission which was chaired by the Vice Chairperson of the State Planning Commission and attended by few other Senior Officials including Mr.Rajiv Ranjan, IAS, Principal Secretary to Government, Highways & Minor Ports Department, Capt. M.Anbarasan, State Port Officer, Tamil Nadu Maritime Board, Mr. Cyril George, Deputy Chairman, Port of Chennai on 23rd February 2016. The presentation was a follow up of the Chamber’s study carried out in 2014 for the SPC , to identify a Multi user non major green field port in Tamil Nadu. While the Government seemed to favour a brown field port at Cuddalore, the Chamber wanted to reiterate that Silambimangalam , an ideal location identified by the Chamber would be more advantageous looking at it from a long term perspective. A detailed presentation was made by Mr. Ishwar Achanta whose firm had helped the Chamber in
conducting the study and the discussions were assisted by Mr. J.Krishnan, GC member. The pros and cons were discussed in detail and whether there would be adequate volume of cargo for the port to be economically sustainable was questioned keeping in mind the huge investments required for the Greenfield port. The other concern was regarding the environmental issues that may arise. On the other side, it was pointed out that we had to look at it at a long term perspective in terms of draft depth and hinterland size, as infrastructures like development of ports have to be planned keeping in mind the future needs for at least 15 -20 years ahead. The Vice Chairman SPC thanked the Chamber for the extensive and in-depth analysis presented and said that the final decision by the Government might take some more time as the elections are round the corner. Nevertheless, the views of the Chamber would be closely studied, she said.
26th February 2016
SEE meeting at the Conference room, MCCI
r. S. G. P r a b h a k h a r a n , President, MCCI had a discussion with select members regarding the rules and norms for the functioning of SEE Boards on 26th February 2016 and it has been agreed to have the meetings with potential entrepreneurs from the month of April 2016.
SDC Meeting The Action Committee of the Skill Development Activities had a meeting on March 29th 2016 to discuss the way forward for the Skill Development Activities. Mr. Narayanan, National Education Vertical Head, KPMG, made a
Mr. S.G. Prabhakharan interacting with the SEE Board Members
presentation on the current landscape of Skill Development Activities and Mr. Santosh Sridhar. Avalon Consulting P. Ltd shared the background work and study done in 2010, when Skill Development Activities were initiated.
Ms.K.Saraswathi, Secretary General, MCCI attended the following meetings/programs from January 2016 to March 2016 at Chennai • •
• • • • •
Annual General Meeting 2016 organized by the Indo German Chamber of Commerce at Hotel Hyatt Regency on 21st January 2016 29th K Gopalakrishnan Endowment Oration hosted by Chatnath Trust at Hotel Hyatt Regency on 25th January 2016. Dr. Isaac Mathai from Bangalore was the Guest Speaker Workshop on Carbon Emissions in Tamil Nadu organized by the Forest Department at their Conference hall on 27th January 2016 IACC’s Conference on Smart Cities – The way ahead on 11th February 2016 at Hotel Crowne Plaza. Birthday Celebrations of Her Majesty Queen Elizabeth II on 18th February 2016 at BDHC, Chennai. Indian Institute of Material Management’s Annual Mega Event Spectrum on 19th February 2016 at Hotel Raintree, Anna Salai. N a n i Pa l k iva l a M e m o r i a l L e c t u r e b y Mr. S.Ramadorai, Chairman, Skill Development Agency on 27th February 2016 at Narada Gana Sabha, Chennai
• • • •
Post Budget Talk by Dr. Parthasarathi Shome on 4th March 2016 at Hotel ITC Grand Chola held under the auspices of the United Way WCC Centennial National C colloquium on 7th March 2016 at WCC Auditorium Madras Management Associations Women Manager’s Convention on 12th March 2016 at Hotel Taj Coromandal. Ms. K. Saraswathi addressed 400 students from WCC on the topic Women Empowerment at the International Women’s Day celebrations by WCC on 4th March 2016
Ms K.Saraswathi represented the Chamber in the meeting of the Secretary Generals and Director Generals of ASSOCHAM and Promoter Chambers at Mumbai on 28th January 2016. Ms. K.Saraswathi addressed on the “Breaking Business Barriers – South India Conclave on 11th March 2016 held at Cochin by Centre for Public Policy and Research.
Mr. S.Sankaranarayanan, Deputy Secretary, MCCI addressed the audience about MCCI and its activities at the Basic Cargo Awareness program held on 11th February 2016 at the Airport Authority of India Complex,Chennai Ms. Madhumathi.C, Deputy Secretary, MCCI attended the Post Budget Analysis by Mr.P. Chidambaram at LIBA on 10th March 2016.
General Committee The Committee held its monthly meetings in January, February and March and discussed the following among other issues.
he Action Committees for the Skill Development and the Startup Entrepreneurial Eco system(SEE) had their respective meetings and the follow up action was discussed in the GC meeting to take these initiatives forward.
Expert Committees The following Expert Committees had their meetings in the month of January, February and March and discussed their plan of action.
this space for articles from these Experts in this feature Experts’ Corner.
Banking, Finance and Insurance
POWERING TO A GREATER TOMORROW
COP21 Summit at Paris
S. Venkatachalam, Managing Director, Orient Green Power Co. Ltd. & Chairman, - Expert Committee – Energy
Indian Energy Scenario The installed capacities as on 31.01.2016 are Source Coal Gas Oil Hydro Nuclear Renewable energy sources (Small Hydro,Wind,Biomass Gasifier, Biomass, Urban & Industrial wastes) Total
1,75,238 60.8% 24,509
42,663 14.8% 5780
In 2015 COP21 Summit at Paris,global leaders aimed to achieve a legally binding universal agreement on climate, to keep global warming below 2°C. Government of India has committed to set an ambitious and comprehensive target to reduce emissions by 33~35% of 2005 levels by 2030.121 countries have chosen to join The International Solar Alliance, wishing to cooperate in the field of solar energy.It has been estimated that an investment of about US$100 billion per year will be required to implement these projects.Apart from this GOI has set itself a target of 175 GW of renewable by 2022 consisting 100 GW-Solar, 60 GW-Wind, 10 GWBiomass, 5 GW-Small hydro.
UDAY (Ujwal DISCOM Assurance Yojana) 2,88,005 100%
The UDAY scheme was launched by the government in November 2015.The scheme is aimed at improving the health of the ailing DISCOMs.
Expert's Corner DISCOMs in the country have accumulated losses of approximately Rs. 3.8 lakh crore and outstanding debt of approximately Rs. 4.3 lakh crore (as on March, 2015). The scheme has so far met with a good response from the states (16 states representing more than 90% of DISCOM losses has joined) and from industry observers. As per the Scheme, 1. States shall take over 75% of DISCOM debt as on 30 September 2015 2. Principal debt taken over will not be included in fiscal deficit of States. However, interest will have to be serviced within FRBM limits
The Indian Wind Power Association has conducted a Workshop on Forecasting and Scheduling of wind power with experts from Europe,recently in Chennai, to create an overall awareness among key personnel in utilities. Further, the Central Government is amending the Electricity Act to include waiverof interstate charges & Losses for RE transmission, which will help RE evacuation andwill enable RE starved states to meet their RPO.
Solar tariffs slide Recently there have been noteworthy slides in auctions in the solar power industry,seen as a breather for consumers. Capacity Tendered (MW)
Winning Bid ( Rs. per kWh)
Telangana â€“ I
Telangana â€“ II
3. States will issue non-SLR bonds (SDL) with maturity period of 10-15 years with a moratorium on principal up to 5 years apart from numerous other measures Forecasting and Scheduling (F&S) regulations for Solar and Wind Generators CERC has notified these regulations which will be applicable on all wind and solar generators with individual or combined capacity of 5MW and above that are connected to the state grid. The generators are required to forecast their generation, on a 15 minutes slot the previous day itself. Thismeasure is aimed to achieve grid evacuation and easier Scheduling. States of Tamil Nadu, Karnataka, Rajasthan, Madhya Pradesh have mandated F&S.
This has mainly come about due to cost reduction in solar PV panels and access to lower interest debt. One will have to wait and see if this downward trend is sustainable.
Rural Poor versus Urban poor in Tamil Nadu Prof. Lakshmi Kumar, Chairperson, Expert Committee on Economic Affairs & Chairperson, PGDM IFMR The rural and the urban poor in Tamil Nadu are not homogeneous in nature. Their livelihood activities, access to basic services like health care, education and financial services are different. Consequently their financial behaviour and needs also differ. Hence
these two heterogeneous groups of poor which were researched must be served with different financial product-mix which is commensurate with their needs. When we explore how the poor save and insure and examine the differences between the urban and
Expert's Corner rural poor in Tamil Nadu, it is pertinent to visit the following questions:
1. How do the poor manage their small savings? Most of the small savings of the poor SHG members goes to compulsory savings with the MFI. Rarely woman members accessed formal banks but a small percentage of them preferred to save with the post office. Without doubt, if innovative and suitable savings products are offered then SHG members would tend to use those to achieve their various financial goals.
2. Do the poor have access to funds for livelihood purposes? MFIs have successfully lent small business loans at a reasonable interest rate in the form of micro credit to the poor women in our study areas. Such loans not only met their working capital needs but also helped them expand their business.
3. Can the poor realize the value of their assets? Is it enabling or exploitative? A lion share of large savings of the poor is in the form of gold or silver. In the event of a crisis these jewellery are pledged to secure a loan and hence often their true value is not realized. Inability to repay such loan compels them to forego the pledged jewellery for ever. As a result, their large savings often get eroded without facilitating them to secure productive assets.
4. Can the poor have access to current value of future savings (e.g. ROSCAs)? Most of them trust and hence invest in local chit funds and use the accumulated corpus to finance known expenditures like school fees, temple visits etc. The trust in local chit funds is common both in urban and rural areas, but more so in the rural areas. The findings of our study are very much in line with “savings up” and “savings down” theory propounded by Rutherford (2000). When we look at our sample households’ major assets or savings, it seems like a case of classic “saving up” technique. However due to abysmally low level of financial literacy poor
households are unable to make the right choice of investment. We also found that our sample members resorted to “saving down” approach whereby they borrowed money to tide through known or unknown expenditures such as an emergency medical expenditure. Hence the poor households very rarely access formal financial institutions and more so in rural Tamil Nadu compared to urban Tamil Nadu. Most of them manage their small savings and access credit for livelihood purposes from MFIs only. They also save with local chit funds we found in our study. However, in case of an emergency they rely on local lenders to borrow even at exorbitant interest rates. The main assets they try to build in the short run are gold and/or silver which are highly liquid. Else they buy a mobile which they find very useful for communication. About 65 per cent of our sample households had a mobile. However, savings predominantly in the form of jewellery (gold or silver) is not a wise idea (Mas,2010a). Holding jewellery is risky because it is more prone to pilferage and its value is market driven. So a rational individual ideally should diversify savings strategies to mitigate risk. But as our analysis shows, poor households have very limited means to diversify. Hence when they are in dire need of cash, they desperately borrow and eventually fall into a debt trap. We found that the poor households do have the potential to save and most of them also possess a mobile but they have very limited options to save. Government of India (GoI) has tried to speed up the rate of financial inclusion by directing banks to open “no frills account” for the poor, launching of Unique Identification Programme, and provisioning of broadband internet connectivity in rural areas. One possible way to expedite the rate of financial inclusion is to promote Business Correspondent (BC) Model as envisaged by Thorat, Srinivasan, Santhanam and Rathore (2010). In India mobilisation of savings should be led by bank, and hence the BC model can work as it is a bank led model. Thorat et al. (2010) proposed the following models of partnerships between banks and for-profit companies: 1. Bank– Corporate as BC – retail agents as BC sub-agents
Expert's Corner 2. Bank– Retail agents as BCs in a network – Corporate as network manager 3. Bank– Retail agents as BCs in a network – Bank staff as network manager 4. Bank– Retail agents as BCs in a network – outsourced network manager supervised by the bank. We argue that the BC model has the potential to be successful in providing much needed financial services is because of the following reasons. Firstly, the model involves trained local agents who have much greater acceptance into the local poor community and hence can easily tap their savings and offer necessary financial services virtually at their doorstep. Secondly, the BC model effectively exploits the already available mobile technology. The ubiquitous mobile can be used for offering savings as well as remittance products. BASIX
(an MFI in India) has successfully piloted the same. Thirdly, from the financial institutions’ perspective, the model opens up scope for having more business with the people who are otherwise left out. Fourthly, within BC model several self liquidating need based ROSCA like schemes or commitment savings product a la SEED account experimented by Ashraf, Karlan and Yin (2006) can be offered. This will make the BC model not only popular but will also help the poor households to meet both known and unknown lump sum expenditures. Moreover, provision for overdraft facility in case of an emergency which can be verified by the local BC agent will reduce their dependence on local money lenders and consequent tyranny. Finally, we argue that BC agents can create better awareness and can sensitize the poor about insurance through workshops on financial literacy and can offer this essential financial service to them.
TRADE CREDIT INSURANCE – COMMERCIAL RISKS Mr. Nataraja Murthi, Member, Expert Committee on Banking, Finance & Insurance & Director, Zeal Direct & Reinsurance Broking Services Private Limited.
rade Credit Insurance Policy is an insurance product designed specifically to protect medium to large businesses including exporters, against bad debts including non-payment by overseas debtors. The policy provides cover across the whole of the debtors’ ledger and can be structured with varying levels of excesses and indemnity, to suit the specific requirements of particular trades and sizes of business. The policy also provides cover across an exporter’s whole turnover but may be adapted to cover debtors in nominated countries or on specified terms of payment for either Commercial Risks only or for Commercial and Political Risks together. The Insurer will pay maximum of 85% of the Invoice Value.
Why Trade Credit Insurance? Protect your liquidity and cash flow. Preserve your profit and allow you to grow sales with confidence in your domestic market and in
overseas markets. New markets may be attracted by offering better credit terms. Manage your credit policy and enhance your management information base. Enhance your credit or trade finance facilities and provide options to look at alternative Financing structures with your bankers. There are Payee Clause under which the money will be paid to the Bankers only. Allow you to consider alternatives to seeking letter of credit terms.
What assistance the Insurer will provide ? On referring a New Buyer, the Insurer will revert in three working days whether they can extend Credit for them and the limit thereon. You will be the first to get notification, if any of your existing Buyer has not honoured any payment to any person or Corporate.
Expert's Corner They will also provide you with a DCL (Discretionary Credit Limit) up to which you can start selling your Products or Services without referring to the Insurer.
How to avail this cover? •
Corporates should decide, whether they want this Cover for Whole Turnover excluding Sale by LC for Exports and Cash for Domestic Buyers.
What is covered?
Commercial Risks of non payment by the buyer for sales made by you up to the amount specified in the credit limit approved by the insurer.
Corporates can avail this Policy either for Domestic Turnover (Excluding cash sales) or for Exports (Excluding LC Sales) only.
The Questionnaire provided by the Insurer should be submitted along with the Individual Buyers list with required Credit Limit for each Buyer.
What is not covered? Major exclusions are: •
Disputes between you and the Insured Buyer. (Most of the debtors will falsely allege that the quality of the product is not up to the promised level and to ensure cover, the Corporate needs to put a condition in the Invoice that the Buyer should revert on quality issues within 14 days on receipt of receiving the Goods). You or your agent’s failure to fulfil any of the terms and conditions of the contract with the buyer.
Sales to private individuals.
Sales to any parties related to you
You or your agents failure to comply with local laws and regulations of which you should reasonably have been aware unless prevented from so doing by a law, order, decree or regulation in force.
Deliveries made outside the terms of the policy.
Currency fluctuations and/or devaluations.
Government entities unless specifically endorsed to your policy.
What can be covered on payment of additional premium?
What are your obligations after taking the Cover? •
You are required to declare your turnover on a quarterly basis.
You are required to report buyers that have exceeded their terms of payment.
You are required to exhaust all reasonable means to recover the Insured Debt.
When can you lodge a claim? When the Insured Buyer is insolvent and is not able to meet its obligation to you. When there is a Protracted Default by the Insured Buyer. When payment is not received by you due to a Political Risk event as outlined in your policy (provided you have Political Risks endorsed to your policy).
What to do in the event of a claim? If an event happens which may give rise to a claim under this Policy you must: Inform the incident to the Insurer as soon as possible. You will be provided with advice on the procedure to follow. Act as a prudent uninsured; Please supply all the information the Insurer require to settle the claim;
For a large limit sought on a specific buyer, additional cover may be availed by paying Additional premium. This, amongst other credit factors, would be subject to the availability Of capacity by the Insurer.
Take all reasonable precautions to prevent further loss; and
For Exports, Political risk cover is available and this includes non payment by a government buyer, non payment due to currency inconvertibility, import/ export licence cancellation and political risks associated with military or civil war, insurrection, rebellion and/or revolution.
It is suggested to avail this product to have in place a better Credit Management system with the assistance of the Insurer and especially with the changed business and risk environment in running the affairs of the Corporate.
Please furnish required documents and any clarifications that may be sought.
flash news Intro: New Members Name of the Company
Logistics Sector Skill Council
“Logistics Sector Skill council is a development council to address issues through a structured skill development program with various objectives. Through this initiative, over 40 lakh logistics workers are to be trained and certified by the SSC in the next ten years. www.lsc-india.com”
Aspire Systems India Pvt. Ltd
IT / ITES
“Aspire Systems is a Software Development Services Company with presence in US, UK, BeNeLux, Middle East and India. (Chennai, Hyderabad, Gurgaon, Chicago, San Jose, London and Dubai. It offers services including Outsourced Product Development, Software Testing, Infrastructure Application Support & Oracle services. www.aspiresys.com”
Transsys Solutions Pvt. Ltd
“TransSys Solutions is an Oracle Platinum Partner with a vision and deep understanding of the industry, technology and market that have a real-world impact on business operations. www.transsyssolutions.com”
Steinbach & Partner
Aachi Cargo Channels Pvt. Ltd.
Freight Forwarder - Undertakes Forwarding, Customs clearance, warehousing and transportations.
Sheng Long Biotech India Pvt. Ltd.
“Sheng Long Biotech India Pvt. Ltd., is a subsidiary company of Guang Dong Haid Group., which is specialized in aquatic feed & premix manufacturing, fish and shrimp breeding and animal health products. www.shenglongindia.com”
Praxair India Pvt. Ltd.
“Praxair provides a supply of industrial gases via advanced air separation plants and delivery systems that are both cost-effective and safe. Besides catering to the atmospheric gas requirements in various industries, Praxair also has other active lines of business such as specialty gases, carbon dioxide, health care, surface technologies and hard goods. www.praxair.co.in”
Bilfinger Neo Structo Pvt. Ltd
“Bilfinger SE is an engineering and services group. The company offers customized services for industrial facilities and real estate. www.bilfinger.com”
European Flavours & Fragnances Pvt. Ltd.
“European Flavours & Fragrances also known as “EFF” is a UK-Based fragrance manufacturer. EFF creates original fragrances and flavours to enhance every kind of product from luxury perfumes to everyday consumer brands. www.effgroup.com”
Uniphore Software Systems Pvt. Ltd
IT / ITES
“Uniphore’s solutions extend the power of speech to revolutionise human-machine interaction. Their solutions allow any software application to understand and respond to natural human speech, thus enabling humans to use the most natural of communication modes, speech, to engage and instruct machines.www.uniphore.com”
Petronash Manufacturing Engineering Services Pvt. Ltd.
“Petronash manufactures Chemical Injection Systems, Well Head Control Panels, Process Equipment, with their flagship product being the Modular Well site Packages. It is a services company to serve and maintain existing Oilfield Equipment supplied by various global companies to the Middleast Oil & Gas industry. http://www.petronash.com/”
“AGX Logistics is an international logistics service provider. They offer a wide range of services including; Freight Forwarding, Customs Brokerage, Land Transportation, Warehousing, Local Distribution, Door to Door, Exhibition Logistics, Project Cargo, Dangerous Cargo, Valuable Cargo, AOG, VOR, Perishable Cargo, Marine Insurance, Chartering, Packing and Removals at any worldwide destinations. www.agxlogistics. com”
he Chamber congratulates Mr. Srinivasan K. Swamy, Chairman and Managing Director, RK Swamy BBDO, and Past President, MCCI for being conferred the Distinguished Service Award by the Advertising Club, Madras for his meaningful contribution to the Advertising Industry on 3rd March 2016 at a function held in Taj Club House, Chennai
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press releases Railway Budget 2016-17 The Madras Chamber welcomes the overall focus and consistency of the Railway budget ,centering on the safety, cleanliness and convenience of the customers. Announcement about India’s first rail auto hub up in Chennai, is a pride for Chennai. Also, the proposal to have a new freight corridor between Delhi – Chennai, is going to open up the market for Tamil Nadu Industries and is likely to reduce the transaction cost. The boost given to freight movement through Freight trains on time table for the first time, Rail side logistic parks with warehouse and parking terminals, setting up a separate company for cargo, all would cheer the manufacturing and logistics community. The use of technology in railway services and the vision to make railways a major global manufacturing hub are in the right direction. The slight disappointment is the non rationalization of freight charges and leaving it to the railway Development Board which is yet to be formed. Given the current economic situation, it would have been better had this been focused now. Also, achieving 92 % operating ratio which is nodoubt a very good indicator, may depend on achieving a substantial overall growth which may not be an easy task. Moreover, specific timelines need to be there for many proposals like the freight corridor, auto hub etc. for monitoring and effective implementation. However the hope is, as the minister quoted, that they would go all the way and continue to complete the journey and the various proposals announced in the budget” says Mr. S.G. Prabhakharan, President, Madras Chamber of Commerce & Industry. 25th February, 2016 S.G.Prabhakharan President
Union Budget 2016-17 The Chamber welcomes the decision of the Government to persist with the commitments on Fiscal deficit for FY16 and FY17. The increased focus of the Budget on Rural, Social, and infrastructure sectors, referred to as some of the main pillars for transformation of the economy by the FM is very welcome. Huge allocations to these sectors including a spending projection of Rs 97000 crore for the road sector are very heartening. It is time for the country to move towards creating a social security safety net and the announcements like increased health cover for the elderly and individual families, LPG subsidy for rural households, setting up a fund for financing higher education, tax exemption for NPS, thrust for affordable housing etc are all moves in that direction. The Aadhar Act proposed would help in ensuring that the subsidy efficiently reaches the right pockets. Plan to mobilize additional resources through raising bonds by NHAI, NABARD, PFC, REC and etc which would be backed by sovereign guarantee is a welcoming thought. Under infrastructure there were more reasons to cheer about, in addition to the huge outlays proposed: opening the road transport sector and the amendments to Motor vehicles Act, introduction of Public Utility Bill, Renegotiation of PPP Concession Agreements, FDI liberalization will boost this sector. Plan to augment investment in nuclear power generation in the long run and incentivizing deep water gas production will give a push to the power sector. The other impressive proposals for Financial sector reforms include Allocation of Rs 25000 crore towards recapitalization of PSBs; the proposal for a Central Law to check unauthorized money raising schemes; NBFCs being made eligible for 5% deduction for provision against bad debts; From the Industry and business points of view, the following proposals are salutary: doing away with multiple and unproductive cess; the decision to have a relook into the Companies Act. We welcome the following measures from the point of view of boosting trade related transactions: Deferment of payment of custom duties for large exporters in line with central excise duty procedure; Implementation of single window clearances using the EDI Platform for customs transactions with a view to reducing transaction time and cost; Replacing physical control of bonded goods with technology to ease doing business. The raising of the threshold limit under the presumptive taxation scheme under the IT ACT to Rs 2 crore would help large number of small Assessees and will bring down litigation. Basic reduction in customs and excise duties on select commodities and simplifying cenvat credit rules are welcoming moves. While the lower rate of tax for the start ups is a welcome step, the continuation of the MAT at the same rate is discouraging. Thankfully, service tax rate is not increased but the much awaited reduction in corporate tax did not happen in any significant manner. The proposal to levy tax on non corporate investors on the dividend received is a retrograde step since it amounts to double taxation and may not be equitable. Also, we feel that the manufacturing sector, including the auto sector has not received its due share of attention in this budget, as we could not see any special proposal to give a fillip to that, despite the push for Make in India. On the whole, the budget makes a clear shift towards boosting the rural and social sectors and it is hoped that this, along with thrust to infrastructure, should cascade the effects on the other sectors. We can expect that many of the reforms talked about under taxation, finance etc, if implemented in letter and spirit, should improve the so called ease of doing business. 29th February, 2016 S.G.Prabhakharan President
chamber in the news CSR model must be based on 3Ts DECCAN CHRONICLE Published Feb 27, 2016, 6:37 am IST Updated Feb 27, 2016, 6:38 am IST Trust between community and corporates is of paramount importance.
Chennai: Corporate Social Responsibility (CSR), includes responsibility of business and the company’s impact on environment, employees, surrounding communities and all stakeholders. It is here that the concept needs to be passion driven and not about profits and making money, said panelists at MCCI (Madras Chamber of Commerce and Industry) conference on CSR . The field offered great opportunity. The CSR model can be successful if it is based on technology, transparency and trust. Lakshmi Narayanan, Vice-Chairman, CTS, said, “There has been a gradual evolution of CSR and it is the impact that matters. The idea is to promote the growth of private involvement and turn into a development model along with social improvement.”
Lakshmi Narayanan, vice-chairman, CTS, addressing the audience. (Photo: DC)
Ashoke Joshi, former Secretary, Union Ministry of Road Transport and Highways and Chariman of Srinivasan Services Trust, emphasised on addressing the needs of various communities. Trust between community and corporates is of paramount importance.
Economic Review What’s happening? updates on economy
Govt. hopes to pass Bankruptcy, GST Bills The National Democratic Alliance government hopes to press the accelerator on reforms and pass the landmark Constitution (122nd Amendment) Bill for a national Goods and Services Tax (GST) and a separate Bill for Bankruptcy and Insolvency Code, 2015, in the second half of the Budget session beginning April 20.
SEBI bans wilful defaulters from tapping capital market In an attempt to tighten the regulatory framework, the Securities and Exchange Board of India (SEBI) has barred ‘wilful defaulters’ from accessing the capital market or acquiring another listed entity. The capital and commodity market regulator has decided that if a listed entity or its promoter has been declared a wilful defaulter, it will not be allowed to make a public issue of equity shares, debt or any other convertible securities. The decision was taken by the SEBI board in New Delhi, based on Reserve Bank of India (RBI) regulations which lay down safeguards to be exercised by banks to contain the financial activities of a wilful defaulter. The RBI defines a wilful defaulter as an entity that defaults on its payment obligations even if it has the capacity to pay back debts.
RS passes long-awaited Bill to protect homebuyers The Rajya Sabha passed a landmark Real Estate Bill on Thursday with a promise to secure the interests of homebuyers and developers in equal measure and remove corruption and inefficiency from the sector. Real estate contributes nine per cent to the national GDP and the Bill’s passage was seen as crucial to ensuring better regulatory oversight and orderly growth in the industry.
EPF tax to be withdrawn Union Finance Minister Arun Jaitley announced the withdrawal of the budget proposal on taxing Employees Provident Fund. The proposal had sought to make up to 60 per cent of savers’ corpus withdrawn from the EPF tax-free if invested in annuity. The period return on the annuity was to be taxable.
The objective of encouraging people to join the pension scheme could be achieved through other ways on which the government has received suggestions. The 40 per cent exemption given to subscribers of the National Pension Scheme (NPS) at the time of withdrawal remains.. This would make the NPS, which gives returns of over 11 per cent, more attractive to pension savers than other options.
SEZs may not see investor interest The tax incentives proposed by the government for new units in Special Economic Zones (SEZ) in the FY’17 Budget may not actually revive investor interest unless it either withdraws or reduces the Minimum Alternate Tax (MAT) on these tax-free enclaves, according to the Export Promotion Council for Export Oriented Units and SEZs (EPCES). The SEZ sector, which is export-oriented, has been experiencing a slowdown in terms of exports, investment and employment generation following the imposition of an 18.5 per cent MAT on SEZ developers and units as well as Dividend Distribution Tax (DDT) on developers by the previous UPA Government in the FY12 Budget. The imposition of MAT and DDT on SEZs has led to reduced number of SEZ notifications, slower operationalisation of SEZs and increased number of applications for de-notification of approved SEZs. It has also dented the investor-friendly image of SEZs and created uncertainty in the minds of foreign and domestic investors, EPCES said. It said MAT should be totally withdrawn or reduced to its original rate of 7.5 per cent. The finance ministry (the Central Board of Direct Taxes) was initially considering a proposal to abolish all direct tax benefits for SEZs not operationalised before April, 2017. The commerce ministry and representatives from the SEZ sector had pitched for extending the ‘Sunset Clause’ on SEZs up to 2022-23.
Central bank issues draft norms for NBFC– AA The Reserve Bank of India has issued draft norms for the creation of a new entity in the non-banking financial sector, namely NBFC – Account Aggregator (AA) and proposed that the minimum capital for start such an activity will be Rs. two crore. NBFC –AA will act as an account aggregator to enable the common man to see all his accounts across financial institutions in a common format. The idea of such an NBFC had emanated from the Financial Stability and Development Council (FSDC).
Economic Review At present, a person holding financial assets such as, savings bank deposits, fixed deposits, mutual funds, insurance policies, do not get a consolidated view of their financial asset holdings, especially when the entities fall under the purview of different financial sector regulators. “Account Aggregators would fill this gap by collecting and providing the information of customers’ financial assets in a consolidated, organised and retrievable manner to the customer or any other person as per the instructions of the customer.
Centre to sign pacts worth over Rs.72,000 cr at shipping summit The government is expected to sign agreements worth over Rs. 72,000 crore with private players on portrelated projects at the Indian Maritime Summit to be held in Mumbai next month. The Ministry of Shipping has identified 109 projects worth Rs.72,864 crore on which agreements will be signed during the event to be held from April 1416. South Korea will be the partner country for the Summit,
The sectors identified for investment include shipbuilding, ship repair and recycling, port modernisation, new port development and multi-modal logistic hubs among others. Under the Sagarmala Project, the major development programmes identified by the government include port modernisation (Rs. 90,000 crore), port connectivity (Rs.1.20 lakh crore) and port-led industrialisation (Rs.90,000 crore) besides coastal community development.
Chennai Port starts refuelling service for ships at anchorage Chennai Port Trust on Friday commenced supplying bunker fuel to ships at anchorage. Till recently, international vessels that were passing various Indian sea ports had to go either to Singapore or Colombo for bunker fuel. Chennai Port has started supplying bunker fuel through barge to vessel berthed at five nautical miles from the port.This facility was started with the aim of converting Chennai Port into a bunker hub in the East Coast.
Adopt a Change Maker with UnLtd Tamil Nadu UnLtd Tamil Nadu is a social entrepreneurship incubation cell that specializes on finding grass root change makers and nurturing them to manifest their dreams for a better India. Most of the social start-ups are very small and in the very first stages of their journey. UnLtd Tamil Nadu provides them the necessary know-how, moral support and connections with peers, advisers and funders. Till date 38 projects have been supported, impacting the lives of 100,000 people.
for. So I asked myself: what is the difference between a social entrepreneur and a social worker? What makes this movement different from traditional NGO’s and charities? The profiles are so varied and inspiring. Their energy and determination to develop our society is contagious and I must admit I got infected! In the monthly meetings where all the start-ups come together and exchange ideas and get advice from the UnLtd Tamil Nadu team you get a sense of a powerful movement of solution providers emerging.
As part of my course at IIT Madras I’ve had the pleasure to work with the UnLtd Tamil Nadu team and the founders of the ventures in their portfolio. They are highly passionate individuals who see the desperate need to change the world around them and commit their life to the cause –be it health, environment, education and disability. Often they have a personal story that has motivated them and personal gain is the last thing that these people look
UnLtd Tamil Nadu is currently working in and around Pondicherry, Chennai, Villupuram, Kanchipuram and Thiruvallur. They plan to spread this to the rest of the state and I am sure any MCCI member will find them a worthy partner. To learn more about UnLtd Tamil Nadu work log on www.unltdtamilnadu.org I wish them all the best and recommend them to the MCCI community to adopt a change makers. Tryphena Tuddley Student of Social Innovation and Entrepreneurship, IIT Madras
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