The Indian agrochemicals market is currently poised at over Rs 16,000 crore, according to a study titled, ‘Indian Market for Agrochemicals,’ released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“Growing awareness about the positive impact and benefits of agrochemicals on the agri-produce and the need for crop protecting and growth augmenting chemicals amid farmers together with growing shortage of farm labour, need for self-sufficiency in food grain production, growth in organized retail segment and thriving domestic horticulture and floriculture industries are fuelling the growth and increased usage of agrochemicals in India,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the study.

“There is a huge growth potential for foreign investments in India’s agrochemicals market and the multinational companies operating in the sector can witness five to ten times more annual growth in India as compared to that in other countries thereby making India a global hub for agrochemicals,” said Mr Rawat. “Rapidly growing population is constantly putting huge pressure on arable land thereby making the use of agrochemicals inevitable to increase farm production in India.”

Besides, lower availability of natural fuels is also a significant reason behind growth of agrochemicals as the usage of the same can help boost agri-production, according to the ASSOCHAM study.

Considering the rampant growth prospects of agrochemicals, there is an urgent need to groom the farmers and inform them about their usage and application in terms of its quantity depending upon the nature of crops.

Indian agrochemical companies should leverage from their wide distribution network, superior abilities in process optimization and low-cost manufacturing skills, said ASSOCHAM. Besides, Indian companies in the sector should also increase their investment in research from current level of about two per cent to at least eight to 10 per cent to spur its exports and be more competitive in the global scenario, said ASSOCHAM.

Abundance of low-cost agrochemical products from China, high inventory owing to Indian farms’ dependence on monsoons, counterfeit products and long credit periods to farmers are certain key problems faced by India’s highly-fragmented agrochemicals market.

In terms of agrochemicals production, India ranks fourth in the world after USA, Japan and China respectively. Besides, the global agrochemicals industry is growing at about 12 per cent CAGR and is likely to cross Rs 13 lakh crore mark from the current level of about Rs 8.5 lakh crore, according to the ASSOCHAM study.

As per an estimate, crops worth about 20 billion dollars is lost due to lower usage of pesticides each year. ASSOCHAM has thus suggested judicious use of pesticides to prevent crop losses, reduce input costs and provide economic benefits to the farmers.

The ASSOCHAM delegation comprising Mr. Ravi Wig, Chairman, ASSOCHAM Punjab Development Council, Mr. Ashok Khanna, Chairman, ASSOCHAM National Council on Environment & Safety and TQM and Mr. D.S. Rawat, Secretary General, ASSOCHAM met Mr. Prakash Singh Badal today and suggested setting up of industiral clusters in Punjab   for small and medium enterprises involved in food processing, handicrafts, renewable energy and information technology to generate three lakh direct and indirect jobs over the next three years and help inclusive growth.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) recently signed a memorandum of understanding with the United Nations Industrial Development Organisation (UNIDO) to assist in establishing clusters of small and medium enterprises in two districts of potential states across the country.

The strategy paper on all-round Punjab development is a ready-reckoner for investors, the Centre and state governments to make it as one of the most attractive investment destinations in India with double digit SGDP growth, said Mr. Wig.  The chamber has also set up a dedicated Foundation for Development of Micro Industries and Clusterisation to promote micro, small and medium enterprises.

They said Punjab should rejuvenate agriculture, create manufacturing hubs and accelerate growth in services sector to emerge as land of opportunities. The agenda of new state government should be to prioritise building social and physical infrastructure and define role of all stakeholders and cover short-term and long-term goals to ensure speedy development.

The state may not have enough finances to develop infrastructure on its own which builds a good case for public private partnership (PPP) type of initiatives involving multilateral institutions like the World Bank and the Asian Development Bank. “The challenge before state government is to address the issue from a holistic perspective keeping in balance between agriculture and industry,” said Mr Rawat.

To encourage effective distribution of agro-commodities, initiatives should be taken to create hub-and-spoke model under which districts and towns identified act as a hub and villages surrounding them act as spokes. This will ensure efficient distribution, reduce transportation costs, increase competition and real price discovery, benefiting the farmers.

Farmers need technology upgradation, logistic support, market intelligence and should be able to compete in international markets. The industry looks forward to stable, transparent and responsive state government so that more investments can pour in, he said.

“We would also like the state government to promote irrigation, rural connectivity, health, education and non-farm rural activities. With rich natural resources and traditional industries, however, the state holds enormous unrealised growth potential,” said Mr. Khanna.

At the same time, industries clusters can be created for micro, small and medium enterprises to ensure common facilities, thus reducing operating costs and increasing competitiveness and skill development around that sector.

The state government must facilitate contract farming by attracting investments from the private sector. Irrigation systems can be improved by employing modern technologies which are a must to boost productivity.

Special economic zones (SEZs) can be created with organic farms for herbal and medicinal plantation. A definite roadmap needs to be drafted to improve storage facilities, transport infrastructure and marketing network so that food processing industries can develop value-added products for domestic and foreign markets.

Industry-specific SEZs for information technology, biotechnology, pharmaceuticals, textiles, gems and jewellery besides manufacturing of sports goods also hold potential for growth and employment generation, said ASSOCHAM.

State-level development finance institutes like erstwhile industrial development corporations should be revived to support long-term financial needs of small and medium enterprises. Developing strategic business services like IT, IT-enabled services, finance and insurance can be catalysts of growth and enhance the share of services in gross state domestic product (GSDP).

The private sector can contribute by promoting such projects to provide industry-relevant skills to rural youth. ASSOCHAM also called for creating an enabling policy framework to rejuvenate economic activity in the state.

The state government should spell out a clear land acquisition policy with sufficient room for buyers and sellers to negotiate directly with minimal government role for attracting fresh investments from the private sector.

On-Time Performance (%)

The efforts made by Air India to improve its load factor and also on time performance are: flights are monitored to improve seat Factors and Fares offered in the market to match competition; fares are reviewed constantly; schemes are launched from time to time to target specific market segments; special attention has been given to promote groups travelling to and from India for leisure, corporate, religious movements etc.

As regards improvement on-time performance, the integrated operations Control centre and Hub control centre have been set up to manage and control all movements of the entire airline. Air India has decided to reduce the Business Class seats in its 320 family aircraft to increase its revenues. 14 old A320 aircraft are to be converted to all economy, with 42 additional Y class seats in place of 20 J class seats for optimum utilization.

In order to attract more passengers, Air India came out with special offers, viz. get Upfront-Airport Upgrade-wherein passenger can buy an upgrade coupon at the airport before boarding;  Jaldi-Jaldi  scheme – to publicize the scheme of special rates if passengers buy tickets 7 days and 14 days before travel; Shagun Voucher – to gift wedding couples during the wedding season; Get Lucky – wherein every 100^th ticketed passenger would get special coupons of discount; Silver and Platinum Passes – To popularize the unlimited travel scheme within a deadline; a tie-up has also been developed with the Taj Group’s Gateways Hotels and Resorts to enable Air India passengers get a concessional coupon.

This information was given by Shri Ajit Singh, the Minister of Civil Aviation in Lok Sabha today in a written reply.

He also added that total commercial production of Coal Bed Methane (CBM) in the country during 2011-12 (up to February, 2012) is 74.833 million standard cubic meter (MMSCM) which is much less as compared to 19,971.253 MMSCM natural gas produced from conventional sources under Production Sharing Contract (PSC) regime.

Ministry of Food Processing Industries under its plan scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries extends financial assistance to food processing units in the form of grant-in-aid @ 25% of the cost of plant & machinery and technical civil works subject to maximum of Rs. 50.00 lakh in general areas and @ 33.33% subject to a maximum of Rs. 75.00 lakh in difficult areas such as Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Sikkim and North Eastern States, A&N Islands, Lakshadweep and ITDP areas. The Ministry under the various schemes provides financial assistance to increase the production of packaged food items which are considered to be more safe and hygienic.

This information was given by Dr. Charan Das Mahant, Minister of State for Agriculture and Food Processing Industries in written reply to a question in the Lok Sabha

People with lower incomes are also upgrading from the ‘affordable’ glucose biscuits to mass cream biscuits and mass cookies.

The biscuit industry, which consists of economy, middle, premium and super-premium segments, is likely to grow at 20 percent annually in the next few years.

But the premium and super-premium segments, according to industry experts, are believed to be growing at a much faster rate, probably more than 30 percent on a year-on-year basis.

“Currently, economy and middle segments (mass segment) comprise about 70 percent of the total biscuit market in India. I think in the next five years, the share of the mass segment would come down to 60 percent and the rest would be premium and super-premium segments,” Parle Products group product manager B. Krishna Rao told IANS over phone from Mumbai.

Parle, which is India’s largest biscuit maker with a 45 percent market share, said biscuit companies in the country are coming up with more products in the rapidly growing premium segments to tap the market.

“Competition in the economy segment is extremely difficult as it would put pressure on the bottom line (profit),” Rao said.

Explaining the reasons for the consumers’ growing preferences towards the premium biscuits than the mass products, he said smaller towns were now having modern trade centres with consumers possessing more disposable incomes, which resulted in spreading of mall culture.

“Currently, there are about 40 mini metros across the country. The scenario was different a few years ago. Smaller towns like Durgapur, Asansol, Surat and Rajkot now have modern trade centres like malls. Retail chains like Big Bazaar are coming up also in tier II and tier III cities,” he observed.

He said while the economy segment was likely to grow at a range of 15 percent to 18 percent annually, the premium segment was expected to clock 30 percent growth.

As a result, Rao said, a lot of companies would introduce products in the premium and super-premium biscuit segments in the days ahead.

Parle, which owns brands like Parle-G glucose biscuits and 20-20 in the mass segment, also possesses brands like Hide & Seek and Hide & Seek Milano in the premium segment.

While biscuits priced at Rs.100-150 per kg are categorised as middle segment, biscuits with an MRP of Rs.125-150 per kg fall in the premium category. Priced at below Rs.100 a kg are in the economy segment and above Rs.150 a kg in the super-premium segment.

Another biscuit major Britannia seconded Parle’s observation on the consumers’ preference shifts towards premium products.

“Over the last few years, the biggest shift that has been happening (in the country’s biscuit industry) is the premiumisation shift,” said Anuradha Narasimhan, category director, health and wellness, Britannia Industries.

“And this is best borne out by the reducing contribution of the glucose segment. The glucose segment used to contribute 33 percent by value a couple of years ago and this has dropped to 24 percent,” Narasimhan stated.

According to her, people belonging to the lower income group are upgrading to mass cream biscuits and mass cookies.

She said the current trend would not just continue but grow in magnitude and people would prefer not just ‘affordable delight’ but seek specific benefits in food products, including health needs.

“We see the benefits of health as well as indulgence being played out – these benefits will democratise and not just be the purview of top-end audiences. Health and convenience are primary drivers of food consumption – with the health need being very key,” she pointed out.

Narasimhan said the health wave in India was being fuelled by the high prevalence of diseases such as diabetes and hypertension as well as awareness driven by the media.

“We believe the biscuit market will continue to grow in the range of 20 plus percent – with premium segments growing much faster,” she added.

Britannia, which operates in both the mass and premium segments, has popular brands like Marie Gold, Little Hearts and Time Pass.

For faster growth of the MSME sector in the country, Ministry of MSME is implementing its programme through its Tool Rooms located at various places across the country.  The main objective for setting up MSME- Tool Rooms is to provide consistent, reliable, quality service for industrial growth based on its trained, skilled and innovative manpower capabilities backed by the state of the art tool room facilities and provide trained manpower through long & short term training.

These MSME-Tool Rooms are concentrating on an integrated development of the related segments of the industry by way of providing international quality tools, trained personnel, consultancy in tooling and related areas and are constantly crossing new frontiers in quest for excellence and beyond.

MSME Tool Rooms (MSME-TRs)

The 10 MSME-TRs set up under the  Indo-German and Indo-Danishcollaborations, assist MSMEs in technological upgradation. These tool rooms provide good quality tooling through design and production of tools, moulds, jigs & fixtures, components etc. These Tool Rooms also provide training and consultancy in the area of tool engineering.

The Name and Location of Different Tool Rooms are-

• MSME-Tool Room (Central Tool Room), Ludhiana;
• MSME-Tool Room (Indo German Tool Room) , Ahmedabad
• MSME-Tool Room (Indo German Tool Room), Indore;
• MSME-Tool Room (Indo German Tool Room), Aurangabad;
• MSME-Tool Room (Central Tool Room & Training Centre), Kolkata;
• MSME-Tool Room (Central Tool Room & Training Centre), Bhubaneshwar;
• MSME-Tool Room (Indo Danish Tool Room), Jamshedpur;
• MSME-Tool Room (Central Institute of Hand Tools), Jalandhar;
• MSME-Tool Room (Central Institute of Tool Design),  Hyderabad and
• MSME-Tool Room (Tool Room & Training Centre), Guwahati

These Tool Rooms & Training Centres provide production, training and consultancy services in the areas of tool engineering i.e. facilities for production of tools, moulds, dies, jigs & fixtures, etc. and providing skilled manpower to industry. These services help the industry to become more productive and competitive.

These Tool Rooms apart from conducting various short term courses and vocational training programmes for school dropouts, also organize different long-term courses such as ‘Post-graduate Diploma in Tool Design and CAD CAM’.  They have achieved nearly 100% placement for the trainees of their long- term courses in different industries.

Achievements of MSME Tool Rooms during 2011-12 (up to 30  November 2011)

*******

Foreign Exchange Earnings

15 CPSEs namely, Indian Oil Corporation Ltd., Mangalore Refinery & Petrochemicals Ltd., Bharat Petroleum Corpn. Ltd., Bharat Heavy Electricals Ltd., Air India Ltd., ONGCVidesh Ltd., Hindustan Petroleum Corpn. Ltd., Oil & Natural Gas Corporation Ltd., Shipping Corporation of India Ltd., MMTC Ltd., National Aluminium Company Ltd., Ircon International Ltd., Airports Authority of India Ltd., PEC Ltd. and  Air India Charters Ltd. had gross foreign exchange earnings of more than Rs. 1000 crore, during 2010-11.  Out of these fifteen CPSEs namely, Air India, BHEL, ONGC Videsh, NALCO, SCIL, IRCON International Ltd. and Airport Authority of India Ltd. have been net foreign exchange earners.  Hindustan PetroleumCorpn. Ltd. and PEC Ltd.  have shown reduction in their foreign exchange earnings during 2010-11.  The remaining CPSEs have  had foreign exchange expenditure more than their foreign-exchange earnings.  This is particularly so in the case of Oil Marketing Companies (OMCs).

Sources of Foreign Earnings

Export of goods and merchandise, income from Royalty & Consultancy Services and interest earnings are the major sources of foreign exchange earnings.  Export of merchandise was the major source of foreign exchange earnings in both the years 2009-10 and 2010-11.  Its share in total earnings, however, decreased from 89.08% of the total in 2009-10 to 88.40% of the total in 2010-11.

Foreign Exchange Expenditure

In terms of growth and change in foreign exchange expenditure during 2010-11 over 2009-10 there was a significant increase in foreign expenditure in the case of MMTC Ltd., Handicrafts & Handloom Exports Corporation of India Ltd., GAIL(India) Ltd. and Oil & Natural Gas Corporation Ltd.  In the case of other CPSEs, like MSTC Ltd., ONGC VideshLtd., Shipping Corporation of India Ltd., Power Grid Corporation of India Ltd., Bharat Electronics Ltd. and Rashtriya Chemicals and Fertilizers Ltd., on the other hand, there was a general reduction in the foreign exchange expenditure.

            There was a big increase in foreign expenditure of Handicrafts & Handloom Exports Corporation of India Ltd. during 2010-11 due to increased trading in bullion.  The Oil Marketing Companies (IOCL, BPCL, MRPL, CPCL, ONGC and GAIL) and others, namely, MMTC, SAIL, BHEL, RINL, SCI, BEL, HHEC, NTPC also incurred increase in gross foreign exchange expenditure during 2010-11.  Import of ‘raw materials’ and ‘capital goods’ have been the major items of  foreign exchange expenditure in both the years.

            The share of ‘raw materials’/crude oil continued to claim the largest share (around 90%) of gross foreign exchange expenditures in both the years of 2009-10 and 2010-11. Exchange rate fluctuation and change in commodity prices have been also impacting the earnings and expenditures of CPSEs.

International Finance & Investment

Sources of Funds

International finance refers mainly to external commercial borrowings, supplier’s credit, funds raised through the equity market abroad.  Shares of MTNL (ADR) are listed on the New York Stock Exchange and GAIL (GDR) and SAIL(GDR)  are listed on the London Stock Exchange.

Foreign Investments by CPSEs

Investment comprise off-shore investment by CPSEs through establishment of Indian subsidiaries abroad joint ventures (JVs) and mergers and acquisitions (M&A).  Several CPSEs have set up subsidiaries abroad for marketing their products, procuring raw materials and consolidating their international operations.  ONGC Videsh, in particular, has been successful in acquiring oil and gas assets abroad.  As on March 31, 2011, OVL has participation directly or through wholly owned subsidiaries/joint ventures in 33 exploration and production projects in 14 countries, comprising 9 producing assets, 4 assets under development and 19 exploration assets.  During 2010-11, the company produced 9.45 MMTOE, which accounted for 10.5 per cent of India’s total domestic oil and gas production.  The other CPSEs are following the lead given by OVL in international investments.  SAIL, CIL, RINL, NMDC and NTPC have together formed a JV in International Coal Ventures Pvt. Ltd. for acquisition of coal assets abroad.  (PIB Feature.)

Retail investors who find difficult to enter equity markets due to sharp upswings also do not want any lock-in on their investments. Thus the three-year lock-in period under Rajiv Gandhi Equity Scheme announced in the Budget needs to be reviewed and capped at six months, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The only way to attract and enlarge retail participation is to reserve at least 50 per cent of PSU divestment at a discount of five to ten per cent to market price. This will bring some stability and depth in the market. The recently-opted method of auction has upset retailers as it puts big investors and corporates to advantage due to their capacity to quote higher price.

The recent permission of SEBI in permitting no-frills demat accounts is a bold step in creating enabling environment towards broadening participation. However the base of 90 crore mobile phone subscribers could piggy ride to increase penetration of demat accounts.

“There can be a mechanism under which post-paid subscribers are issued free-of-cost demat accounts to popularise several financial instruments and broaden the financial market base,” said secretary general D.S. Rawat.

Less than two per cent of people in India invest in capital markets as against 35 per cent in the United States, 15 per cent in Britain and China, and 12.5 per cent in Germany. About 90 per cent of the liquidity comes from 10 cities and 100 listed companies.

Mr Rawat said the time is ripe to roll out more stock exchanges and encourage setting up of trading platforms in existing stock exchanges in securities of small and medium enterprise. SME exchanges have already started but there is a need to reduce the market lot from Rs one lakh to Rs 25,000. This opens up avenues for larger number of participants.

Companies which are not listed at home should be allowed to raise equity abroad upon compliance of regulatory requirements in the destination countries. Apprehensions that such companies will bring disrepute and default do not hold water as regulatory compliances in destination countries are tough and will take care as the issue size will be fairly large.

This will open up doors for Indian companies to raise equity abroad to meet the growing needs at home. The present dependence of debt as the largest component of funding – with bank funding dominating – leaves little for leverage and long-term funding.

Indian corporates require huge funds to invest in infrastructure, power and telecom sectors for which a dynamic bond market is essential. At present they are dependent only on banks.

The credit default swap which provides an insurance for due payment of a debt/bond on due dates needs to be popularised through participation of public sector insurance companies to create confidence and market makers to kick-start the scheme. Initially this could be for the AAA rated papers where banks and insurance companies could create the market.

Mr Rawat also called for improving dynamic markets for convertible instruments and warrants to inject more liquidity.

For undertaking various activities relating to the development and promotion of tourism, the Working Group has also recommended total outlay of Rs.22800 Crore for tourism sector during 12th Plan.

Development and promotion of tourism, including providing latest facilities to tourists, are primarily the responsibility of the State Government/Union Territory (UT) Administrations. However, Ministry of Tourism provides central financial assistance for the development of tourism infrastructure on the basis of proposals received from them which are complete in all respects as per the Scheme Guidelines, inter-se priority and subject to availability of funds.

To increase the tourist inflow, the Ministry of Tourism, as part of its on-going activities, releases print, electronic, online and outdoor media campaigns in the international and domestic markets, under the Incredible India brand-line, to promote various tourism destinations and products of the country. In addition, a series of promotional activities are undertaken in important and potential tourist generating markets overseas through the Indiatourism Offices abroad with the objective of showcasing India’s tourism potential. These promotional activities include participation in travel fairs and exhibitions; organising road shows, Know India seminars & workshops; organizing and supporting Indian food and cultural festivals; publication of brochures; offering joint advertising and brochure support and inviting media personalities, tour operators and opinion makers to visit the country under the Hospitality Programme of the Ministry.

The Ministry of Tourism also provides financial assistance to stakeholders for promotion of tourism in the international and domestic markets under the Marketing Development Assistance (MDA) Scheme.

There were no specific targets fixed for employment generation.

This information was given by Smt. . Panabaaka Lakshmi, Minister of State for Textiles in written reply to a question in Lok Sabha

This information was given by the Minister of State for Mines (Independent Charge) Shri Dinsha J.Patel in a written reply to a question in Lok Sabha

The Government has been facilitating the promotion and development of MSEs through implementation of various schemes/programmes relating to credit, infrastructure development, technology upgradation, marketing, entrepreneurial/skill development, etc. The major schemes include Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Performance and Credit Rating Scheme, Cluster Development Programme, National Manufacturing Competitiveness Programme and Prime Minister’s Employment Generation Programme.

Traditionally, the MSE sector has maintained a higher rate of growth than the overall industrial sector. The data on comparative growth rates of production is available up to the year 2007-08 which shows that the MSE sector has registered higher growth rates of 12.6% and 13% against 11.9% and 8.7% in overall industrial sector in 2006-07 and 2007-08 respectively.

This information was given by the Union Cabinet Minister for Micro, Small and Medium Enterprises, Shri Virbhadra Singh in a written reply to a question in the Rajya Sabha

Total central share of premium released under RSBY during last three years and the current year is as under:

Puducherry Administration and State of Madhya Pradesh have taken initial steps for implementation of the scheme.   Rajasthan had initially implemented the scheme but stopped after one year. It has once again initiated the process to implement the scheme. Goa and Tamilnadu had participated in the scheme but discontinued as they started their own scheme. State of Andhra Pradesh has so far not participated in RSBY as it has its own health insurance scheme, namely, Rajiv Gandhi Arogyashree Health Insurance Scheme. Respective States have to take a decision to implement the scheme.  Hence, a specific time frame cannot be given for implementation by all the States.

The Minister was replying to a written question regarding the the total number of families covered under theRashtriya Swasthya Bima Yojana  (RSBY) who have been issued smart cards so far, State-wise including Rajasthan.

*****

ST/-

    Annexure –I

Smart cards under RSBY.

Iron Ore

Quantity : Million Tonnes;  Value : RS. Crores

Exports of chrome ore/concentrate and manganese ore (excluding lumpy/blended manganese) are canalized through MMTC Limited. Manganese ore is also canalized through Manganese Ore India Limited (MOIL). State-wise details of export of chrome ore/concentrate and manganese ore during the last three years, quantum-wise are as under:-

   Quantity :  Lakh Metric Tonnes;  Value : Rs. Crore

Under the extant Foreign Trade Policy, export of iron ore with Fe content 64% and above (except iron ore of Goa and Redi origin) is under the State Trading Regime through MMTC Limited.  However, the feasibility of nodal agency operation, as an interim measure, to cover exports of most grades of iron ore as an accounting procedure is under examination, to enforce legitimacy and tighter regulation of iron ore exports and compliance with mining regulations.

This information was given by Shri Jyotiradiya M. Scindia,  Minister of State for Commerce & Industry   in written reply to a question in  Lok    Sabha

 In addition to seven Central Government Special Economic Zones (SEZs) and 12 State/Private Sector SEZs set up prior to the enactment of SEZ Act, 2005, formal approval has been accorded to 587 proposals out of which 380 SEZs have been notified. A total of 154 SEZs are already exporting. Statement containing state wise distribution of SEZs is annexed.

            In terms of Rule 6 of the SEZ Rules, 2006, validity of approval is for a period of three years within which time effective steps are to be taken by the developer to implement the approved proposal. Request for extension of the validity received from the Developer is considered by the Board of Approval (BOA) on case to case basis keeping in view the recommendations of the Development Commissioner concerned and progress made on the ground in implementation of the project.

                On the basis of inputs received from stakeholders on the working of the SEZ scheme, SEZ rules and procedures are reviewed from time to time to facilitate the speedy implementation of SEZ projects. The review of SEZ Rules and procedure is an ongoing process.

                     Annexure

STATE WISE DISTRIBUTION OF APPROVED SEZS

This information was given by Shri Jyotiradiya M. Scindia,  Minister of State for Commerce & Industry  in written reply to a question in  Lok    Sabha

The total fertilizers subsidy outgo in the year 2000-2001 and 2011-12 is:

(Figure in Rs. Crore)

This information was given by the Minister of State for Chemicals and Fertilisers, Shri Srikant Kumar Jena in a written reply in the Rajya Sabha

Under the Market Development Scheme of Ministry of Tourism financial support is provided only to approved Medical Tourism Service Providers, i.e. representatives of hospitals accredited by Joint Commission International (JCI) and National Accreditation Board for Hospitals and Healthcare Providers (NABH) and Medical Tourism facilitators (Travel Agents/Tour Operators) approved by Ministry of Tourism, Government of India and engaged in Medical Tourism subject to adherence to scheme guidelines and availability of funds. The Medical Tourism activity is mainly driven by private sector. The Ministry of Tourism only plays the role of facilitator in terms of marketing and promoting this in key markets.

This information was given by the Minister of State for Tourism, Shri Sultan Ahmed in a written reply in Rajya Sabha

(c)   The expenditure on campaigns released in the International and Domestic Markets is incurred from funds allocated under the “Restructured Scheme of Overseas Promotion and Publicity including Marketing Development Assistance (OPMD)” and “Domestic Promotion and Publicity including Hospitality (DPPH)” heads respectively. Details of funds allocated under these heads during 2010-11 and 2011-12 are given below:

                                                                (Rs. in crore)

*As on 29.2.2012

          The International media campaigns have been released globally in important and potential tourist generating markets, covering the Americas, Europe, Africa and Asia – Pacific regions.

This information was given by the Minister of State for Tourism, Shri Sultan Ahmed  in a written reply in Rajya Sabha

Under Plan (Science & Technology), schemes for (i) Modernization of Production Processes; (ii) Development of Machinery and Equipments; (iii) Product Development and Diversification; (iv) Development of Environment Friendly Technologies; and (v) Technology Transfer, Incubation, Testing and Service Facilities are implemented.

Under Plan (General), schemes for (i) Skill upgradation and Quality Improvement including Mahila Coir Yojana; (ii) Development of Production Infrastructure; (iii) Domestic Market Promotion; (iv) Export Market Promotion; (v) Trade and Industry related Functional Support Services; and (vi) Welfare Measures are implemented.

75% subsidy is provided under Mahila Coir Yojna for motorized ratts and motorized traditional ratts, subject to a maximum of Rs.7,500/- and Rs.3,200/- respectively.

In addition, the Coir Board is implementing the scheme of Rejuvenation, Modernization and Technology upgradation of Coir Industry (REMOT) and the Scheme of Fund for Regeneration of Traditional Industries (SFURTI).

40% subsidy is provided under REMOT for spinning units and tiny house-hold units, subject to a maximum of Rs.80, 000 and Rs.2, 00,000 respectively.

SFURTI envisages capacity building, development of common facility centres, market promotion efforts and product development and design interventions for the all-round development of coir clusters.

This information was given by the Union Cabinet Minister for Micro, Small and Medium Enterprises, Shri Virbhadra Singh in a written reply to a question in the Lok Sabha

There were 248 CPSEs in 2010-11, out of which 220 were in operation.  The remaining 28 CPSEs were under construction.  The main Highlights of the performance of CPSEs, during 2010-11 is mentioned below:

(i)                 Investment in CPSEs

• Total paid up capital in 248 CPSEs as on 31.3.2011 stood at ₹.1,55,433 crore compared to ₹1,48,367 crore as on 31.3. 2010 (249 CPSEs), showing a growth of 4.76%.
• Total investment (equity plus long term loans) in all CPSEs stood at ₹6,66,848crore as on 31.3.2011 compared to₹5,80,784 crore as on 31.3.2010, recording a growth of 14.82%.
• Capital Employed (net block plus working capital) in all CPSEs stood at ₹9,50,449crore as on 31.3.2011 compared to₹9,09,285 crore as on 31.3.2010 showing a growth of 4.53%.

(ii)               Turnover, Profit/Loss and Net Worth of CPSEs

• Total turnover of all CPSEs during 2010-11 was ₹14,73,319crore compared to ₹12,44,805 crore in the previous year showing an increase of 18.36%.

• Profit of profit making CPSEs stood at ₹1,13,770crore during 2010-11 compared to ₹1,08,434 crorein 2009-10 showing a growth of 4.92%.
• Loss of loss incurring CPSEs stood at ₹21,693 crore in 2010-11 compared to ₹16,231 crore in 2009-10 showing an increase in loss by 33.57%.
• Reserves & Surplus of all CPSEs went up from ₹6,05,637crore in 2009-10 to ₹6,55,488 core in 2010-11, showing an increase by 8.23%.

• Net worth of all CPSEs went up from ₹6,59,437crore in 2009-10 to ₹7,23,128 crore in 2010-11 registering a growth of 9.66%.

(iii)             Contribution of CPSEs to the Central Exchequer

• Contribution of CPSEs to Central Exchequer by way of excise duty, customs duty, corporate tax, interest on Central Government loans, dividend and other duties and taxes increased from ₹1,39,918 crore in 2009-10 to ₹1,56,124 crorein 2010-11, showing an increase of 11.58%.

(iv)             Foreign Exchange Earnings and Outgo by CPSEs

• Foreign exchange earnings through exports of goods and services increased from

₹84,224 crore in 2009-10 to ₹97,004crore in 2010-11, showing a growth of 15.17%.

• Foreign exchange outgo on imports and royalty, know-how, consultancy, interest and other expenditure increased from ₹4,24,207crore in 2009-10 to ₹5,22,577 crore in 2010-11 showing an increase of 23.19%.

(v)               Market Capitalization of CPSEs on Mumbai Stock Exchange

• Total Market Capitalization (M_Cap) of 45 listed CPSEs, based on the stock price in Mumbai Stock Exchange, increased from ₹14,26,212 crore as on 31.03.2010 to ₹15,06,698 crore as on 31.03.2011. Market Capitalisation of CPSEs during this period, therefore, increased by 5.64%

• M_Cap of CPSEs as per cent of BSE M_Cap decreased from 23.13% as on 31.3.2010 to 22.03% as on 31.3.2011.

 As per the information received from the Society of Indian Automobile Manufacturers  Association (SIAM), the production and export data of recent months is as under:-

In Apr. 2011-Feb.2012          Passenger Cars          UVs                Vans

Production                              2,257,505                    329,287           216,486

Growth rate (%)                      2.59%                          16.57%            10.40%

Domestic Sales                        1,786,249                    326,824           212,881

Growth rate (%)                      0.31%                          14.66%            10.01%

Exports                                    450,439                       4,606               1,803

Growth rate (%)                      16.21%                        34.40%            (-)18.60%

Various steps have been taken in pursuance of the Automotive Mission Plan (2006-16) and the new Foreign Trade Policy provides additional incentives which will expectedly boost the sales and export of vehicles in the country. 

 The above information was given by the Minister for Heavy Industries & Public Enterprises Shri Praful Patel in a written reply in the Lok   Sabha

 Today, along with cargo ships, many of the world’s renowned cruise liners regularly make port calls along India’s lengthy coastline. Cruising is fast becoming the choice of Indian travellers to explore the world for its all-inclusive nature, relieving the stress of constant packing and unpacking, checking-in and checking out. On a cruise, one unpacks on day 1 and packs on the last day whether travelling for days, weeks or even months.

 It also gives travellers the opportunity to meet new people, make new friends and indulge in interests and activities that one otherwise doesn’t find the time for, be it playing chess, scrabble, cards or picking up a book, CD or DVD from the well-stocked libraries on the ship.

 One such “premium” cruise line offering affordable luxury aboard its fleet of mid-sized ships is Holland America. Its MS Amsterdam this week anchored in Mumbai en route to Fort Lauderdale, Florida (US). It was on this majestic ship that this correspondent made her maiden sea cruise from Melbourne to Sydney a few months ago.

 The 12-deck ship’s classic interior, broad staircases and decks displaying Dutch heritage and tradition in original art deco pieces complement contemporary works. Built at the Fincantieri shipyard in Marghera, Italy, it blends the latest in shipbuilding technology and artistry with a signature sculpture at the epicentre, Planeto Astrolabium, soaring in a three-story atrium which tracks constellations, the planets, world time and ship time.

 With 700 cabins, guests have the option of an inside, balcony, ocean view rooms or suites, which are some of the largest on a cruiser liner ranging from 556 to 1,159 sq ft with a balcony. It was on the ship’s 12th deck, amidst the ruffle of dresses and couples swaying across the floor to the nostalgic notes of Sealed with the Kiss, that I met Shiv Charan, who is now Chief of Housekeeping on MS Amsterdam.

 Over Pina Colada and Australian Sauvignon Blanc, Shiv recalled the intensive training at the Pusa Institute of Hotel Management and then working at two leading five star hotels before making the move to joining the prestigious Carnival Corporation, which has nine different cruise liners, including Holland America, under its umbrella.

 “I have had the opportunity to manage staff from 85 different nationalities. Being on board together, sometimes for months at a stretch, involves constantly improvising ways to make the hospitality staff more productive”, says Shiv, who works every 4 to 5 months and takes two months off to be with his family in Delhi.

 MS Amsterdam has a crew ratio of 1:2.4 guests, living up to its name for high-endservice and hospitality. People are taking cruises for the relaxation and comfort they offer. For fitness enthusiasts, there are swimming pools, the gym, spa and salon offering a wide variety of wellness treatments.

 Internet is expensive and mobile phones can be inaccessible, giving one the opportunity to switch off from the wired world and enjoy nature’s wonders – sea birds and marine life, stars and shops. Shafi Saboowala, who worked at the Taj in Mumbai, is the Manager of a boutique jewellery store on the ship. “Grand voyages are good for business. It has been a great learning curve and I hope to start my own enterprise someday”, says Shafi, who misses home-cooked food on long travels.

 Although, MS Amsterdam  has elegant dining options and has established a Culinary Council comprising internationally renowned chefs including Chicago’s Charlie Trotter, Manhattan’s Marcus Samuelsson and David Burke, Jacque Torres and Holland’s top chef, Jonnie Boer.  Each night, the main dining room menu features signature dishes and desserts that showcase their expertise and specialties.

 It is also one of the first cruise liners to introduce full buffets for breakfast and lunch, where guests can request custom dishes prepared exactly to their specifications. At 11 p.m. each night, the Lido restaurant features a different theme, including the Chocolate Extravaganza, in which the on-board pastry chefs serve dazzling pastry displays, chocolate fondues and other sweet treats. For those not wanting to leave the comfort of their cabin, there is always the option of 24-hour complimentary room service.

 On its 112-day Grand World Voyage, MS Amsterdam is in Mumbai after circumnavigating Australia’s Top End, the dizzying skylines of Hong Kong and Singapore, south-east Asia, and Mangalore and Marmagao (Goa) in India. “Maiden ports on a world-cruise are always a challenge for navigators”, says Dominic Harrison, the 2^nd officer Navigation, who hails from Mumbai. He said everything from life-saving, safety, navigation is micromanaged on a cruise ship unlike a cargo ship. An Anglo-Indian, Dominic grew up in a building in Mumbai’s Fort area, where most people worked in the shipping industry. He joined merchant navy as a sailor after completing the seamen training from the Nhava Sheva port and then acquired a Nautical degree from the United Kingdom.

 While companies like P&O Cruises and Star cruises have been operating in India for a long period, Holland America is a new entrant. As their spokesperson told this correspondent, “With the economic growth that is occurring in the country and interest in cruising developing rather rapidly, we are definitely poised for growth.  In fact, our business has grown over 100 per cent and we are expecting to see similar growth again in 2012”.

 Holland America’s MS Rotterdam’s 37-day Passage to Asia departs Jan 9, 2013 and will make port calls at Marmagao (Goa), Mangalore, Cochin, and Port Blair, and the ship’s 90-day Passage to Far East will also stop at Mumbai, besides Marmagao (Goa), Mangalore, Cochin, and Port Blair.

 For Indians, shorter cruises within Asia are the most popular. “Alaska is becoming quite a popular destination which matches up with our strategies and deployment as a company as well. Unlike in some markets, language is not a barrier as most Indians speak English. However, the challenge really is food.  A large percentage of the population is vegetarian and prefers Indian style vegetarian preparations.  Beyond this, there are some even further stricter vegetarian diets which often require specific ingredients or the ability to bring along a trained chef.  We’ve been working with our culinary department to come up with a strategy to address these dietary requirements”, the spokesperson added.

 The number of global cruise passengers has increased from 13.6 million in 2005 to 18 million in 2010. By 2015, the total number of cruise passengers is projected to reach almost 23 million. It is estimated the Asia Pacific region will see some 1.5m passengers in 2012.

(Neena Bhandari is a Sydney-based foreign correspondent)

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It is barely 10 days since the Budget was presented and two significant announcements have already been made. The first was by the Petroleum Minister, Mr Jaipal Reddy, who ruled out any possibilities of diesel price deregulation. The second was by Maruti Suzuki, traditionally a petrol maker, which made known its intent to invest Rs 1,700 crore in a diesel engine plant.

What does this add up to? The queue for diesel cars is just going to get longer so long as petrol continues to be dearer. The price difference between the two fuels is already Rs 25/litre, which will only increase to Rs 30 once petrol prices are hiked in the coming days. Demand for petrol cars is already on the wane and this will be down to a trickle eventually.

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As per the revised estimate, the demand of coal in the Country in the terminal year(TY) of XI plan will be around 650 million tonnes against which indigenous availability would be around 545 million tonnes, leaving a gap of 105 million tonnes to be met through import. The demand is projected to increase to 980.5 million tonnes in the TY of XII Plan against which indigenous availability is projected to be 715 million tonne. The availability may increase to 795 million tonnes at the maximum, subject to availability of requisite land for coal mining and all clearances in time. Therefore, the gap between the demand and indigenous availability is projected to be in the range of 185.5 million tonnes in the minimum to 265.5 million tonnes in the maximum. This gap is to be bridged by import of coal.

This information was given by the Minister of State of Coal, Shri Pratik Prakashbapu Patil in written reply to a question in Lok Sabha

This has happened with reduction in airfares over the last seven years and introduction of new routes, which made air travel affordable for the common man.

The Minister further informed that the operations in domestic sector have been deregulated and flights are being operated by concerned airlines on the basis of commercial viability subject to adherence of Route Dispersal Guidelines. Government has laid down Route Dispersal Guidelines with a view to achieving better regulation of air transport services taking into account the need for air transport services of different regions of the country including North-East region. It is, however, up to the airlines to provide air services to specific places depending upon the traffic demand and commercial viability while complying with Route Dispersal Guidelines.

Ch. Singh said in his reply that Government has already introduced a category of Regional Airlines. A Civil Aviation Requirements Section 3, Serios ‘C’, Part VIII has already been issued by the Directorate General of Civil Aviation (DGCA) in this regard, which is available on the website of DGCA. M/s Freedom Aviation, M/s Indus Airways, M/s Religare Aviation, M/s Air Pegasus, M/s ABC Training & Aviation Pvt. Ltd., M/s LEPL Projects Ltd., M/s Deccan Charters Ltd. And M/s Karina Airlines International Ltd have been granted initial No Objection Certificate to operate Scheduled Air Transport Regional Services in different regions of the country, the Minister informed

The latest data on share of un-registered food processing industries in the GDP of food processing was 33.5% in 2009-10.

As per Annual Survey of Industries (2007-08), there were 26,221 registered food processing units in the country.

This information was given by the Minister of State for Food Processing Industries, Dr. Charan Das Mahant in a written reply in the Lok Sabha.

The Minister said, the export duty on all grades of iron ore (except pellets) has been increased from 20% to 30% w.e.f. 30.12.2011 with a view to discourage its export. He said, in view of changed economic environment, both globally as well as domestically, Ministry of Steel has initiated the process of drafting the New National Steel Policy in place of existing National Steel Policy 2005. An Apex Committee, headed by Secretary, Ministry of Steel and consisting of representatives of Planning Commission, Ministries/Departments of Central Government and concerned State Governments has been constituted for monitoring the process of formulation of the New National Steel Policy. Four Task Forces have been constituted under the Chairmanship of eminent experts to study, analyze, consult and formulate draft policy documents in different aspects of the subject.

As per the information received from the Society of Indian Automobile Manufactures (SIAM), the details of production of cars during the last three years and current year are as under:

(In number)

Category                    2008-09                 2009-10         2010-11         2011-12(Apr-Jan)

Passenger Cars          15,16,967           19,26,484        24,53,113       20,03,954

According to SIAM, many companies are entering the market with plans to expand their operations and invest over a period of next three to five years.

As per the information received from SIAM,  the sale of cars during the last three years and current year are as under:-

(In number)

Category                    2008-09                 2009-10         2010-11         2011-12 (Apr-Jan)

Domestic sales          12,20,475              15,28,337     19,82,702                    15,74,847

Exports                         3,31,535                 4,41,709       4,38,214                      4,15,965

The sale of cars has been showing growth over the last few years.  However, in recent months, it is showing a decline. Factors like rising interest rates and hike in fuel prices among other factors, are affecting the growth of this sector.

Various steps have been taken in pursuance of the Automotive Mission Plan (2006-16) and the new Foreign Trade Policy provides additional incentives which will expectedly boost the sale and export of cars in the country.

The above information was given by the Minister for Heavy Industries & Public Enterprises Shri Praful Patel in a written reply in the Lok Sabha

With a budget outlay of Rs 1.8 lakh crore, India imports nearly 70 per cent of its defence requirements. “We must be realistic and recognise that defence production is a capital and technology intensive sector. To develop a strong industrial base in the country, we need both – foreign capital and technology,” said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The 26 per cent cap on FDI has kept away both, said secretary general D.S. Rawat. “We must reconsider the cap. There is no reason why we should have one at all and not allow 100 per cent FDI.”

Nascent industry protection comes from high tariff barriers and investment incentives – not the other way as India has. Manufacturing within the country through foreign capital with full transfer of modern technology is a far better option than importing the equipment from abroad, he said.

The defence sector is like no other – it has a single buyer that invariably buys through competitive bidding and very long product development and procurement cycles. Both viability and competitiveness will be achieved if exports are allowed and encouraged.

India has an excellent law on special economic zones which should be leveraged to make it an important hub in the global supply chain on aerospace and defence production, said Mr Rawat.

The government should also reconcile contradictions and align all relevant policies. Clarity is needed on what a defence product is and this definition should cover the final product (not components) and have a direct link with lethality or high end technology.

Moreover, if a product or service is allowed foreign investment under FDI policy, it should not be disallowed or have a different cap imposed on it under the offset policy. “We need to introduce greater transparency in – as well as simplify – the offset approval process. The offset approval process should be centralised in one permanent committee of the Defence Offset Facilitation Agency.”

Growing at a compounded annual growth rate (CAGR) of about 30 per cent, the Indian eyewear market is likely to reach Rs 43,000 crore by 2015, apex industry body ASSOCHAM said today.

The eyewear market in India comprising of optical products including – contact lens, intraocular lens (IOLs), lasik, lens cleaning solutions, spectacle lenses, frames and sunglasses is currently poised at about Rs 21,000 crore, according to The Associated Chamber of Commerce and Industry of India (ASSOCHAM) study titled ‘Indian Optical Sector’.

Growing at a CAGR of about 20 per cent, the global eyewear industry is currently poised at about Rs 4.5 lakh crore and is likely to reach 7.5 lakh crore in 2015, according to the ASSOCHAM study.

“Ever-changing consumer preferences, rising per-capita income, growing awareness amid consumers and with eyewear becoming more of a fashion accessory and a lifestyle product the optical products’ industry in India is likely to see robust growth during the course of next few years,” said Mr D.S. Rawat, secretary general, ASSOCHAM while releasing the findings of the study.

“Long working hours leading to increased levels of exposure to digital screens causing strain on eyes and continuous stress due to work and deadline pressure resulting in poor eye health are also certain significant reasons behind the upward spiraling growth of eyewear trade in India,” said Mr Rawat.

Organised segement accounts for about 25 per cent of the overall domestic eyewear industry with a share of over Rs 5,200 crore. The unorganised segement has a huge base in tier II, tier III and rural markets.

With sales of about 45 crore pieces of glass lenses, the prescription eyewear market in India is currently estimated at about Rs 8,500 crore. Besides, about 80 per cent of this segement is in the unorganised sector, according to ASSOCHAM study. Spectacle frame manufacturers in the state of Gujarat manufacture nearly 75,000 frames daily.

High end branded eyewear market is largely dependent on imports. Most of the companies also import lenses from Europe, Hong Kong, Chinese Mainland and South Korea.

Nearly three crore pieces of sunglasses are sold annually across India and the sunglasses market in India is currently estimated at Rs 2,200 crore. Sales in premium sunglasses’ market consisting of international eyewear brands like Esprit, Giorgio Armani, Cartier, Tommy Hilfiger, Ray-Ban, Dolce & Gabana, Calvin Klein, Police and others are growing at a faster rate of about 40 per cent and the high end fashion eyewear account for about 30 per cent of the overall sunglasses market.

The contact lenses market in India is growing at CAGR of about 25 per cent. Besides, about 40 lakh pairs of contact lens are sold annually across India and the market is estimated at about Rs 700 crore. Growth in market for contact lenses is led by growing demand for daily disposables and frequent replacement contacts including coloured contacts amid youth especially, the college going crowd as they mix and match the colour of lenses with their wardrobe.

As per an industry estimate, sales of disposable contacts is rising at about 30 per cent as even ophthalmologists recommend frequent replacement of contacts to ensure a healthier and comfortable eye-view via contacts.

Penetration of eyewear market in India is confined only to the metros, tier II and tier III cities to a large extent and the share of eyewear in the rural sector is a miniscule 15 per cent mainly due to lack of infrastructure like eye-testing facilities and optical products.

There is huge scope for growth and development of eyewear industry as about 30 per cent of India’s population is suffering from one or the other eye ailments reflecting to the large untapped potential in Indian eyewear market.

With this, the company has maintained its impeccable track record of earning profits and rewarding investors by paying dividends uninterruptedly for over three decades without a break.

A cheque of Rs.450.85 Crore towards the interim dividend for the year 2011-12 on the equity (67.72%) held by the Government of India, was presented here today to Mr. Praful Patel, Union Minister for Heavy Industries and Public Enterprises by Mr. B.P. Rao, Chairman and Managing Director, BHEL, in the presence of Mr. S. Sundareshan, Secretary, Department of Heavy Industries.

Directors on the board of BHEL as well as other senior officials of the Ministry of Heavy Industries & Public Enterprises and BHEL were also present on this occasion.

The growth momentum achieved by BHEL in 2010-11 is likely to be accelerated in the current fiscal. The company has recorded significant growth in its turnover and achieved a quantum jump of 14% in profitability in the first nine months of 2011-12, with its Net Profit (PAT) at Rs.3,660 Crore, compared to Rs.3,213 Crore in the corresponding period in the year before. With this, BHEL has maintained its track record of earning profits uninterruptedly for four decades without a break.

With an order book position of over Rs.1,46,500 Crore, at the end of the third quarter, the company expects to achieve robust growth in 2011-12 and beyond.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself by way of contemporary technology, state-of-the-art manufacturing facilities and skilled technical manpower. The company has established the capability to deliver 15,000 MW per annum and further augmentation to 20,000 MW per annum is underway.

“The cluster approach has proved effective and successful tool for upgradation of industry all over the country in a cost effective manner. The cluster development initiatives in various clusters have reportedly delivered remarkable results. The small and tiny units of natural rubber cluster of Kottayam in Kerala would not have been able to process their materials in a common-to-all centrifugal mixer and calendering plant, at predetermined rates, if they had not come forward to form a cluster body and availed benefits of cluster development scheme. The Government has adopted the cluster approach as a key strategy for enhancing the productivity and competitiveness as well as capacity building of MSEs and their collectives in the country. The guidelines of the MSE Cluster Development Programme (MSE-CDP) have been comprehensively modified to provide higher support to the MSMEs. With this, a total of 477 clusters spread over 28 States and 7 UTs have so far been taken up for diagnostic study, soft interventions and setting up of CFCs under the programme. The efforts under the scheme are focused on covering more and more clusters from all the States/UTs. There has been a good response to the Cluster Development Programme from the southern States as evident from large number of proposals received from southern States. This indicates a greater awareness about the Cluster Development Programme in the Southern part of the country.

“Micro, Small and Medium Enterprises (MSMEs) are facing the challenges of globalization, higher cost of funds, knowledge management technology upgradation, infrastructure constraints. Ministry has been implementing several promotional schemes for a growth and development of small scale industries. These relates to technology, quality upgradation, support, marketing support and entrepreneurial and managerial development. For enhancing competitiveness of the Indian manufacturing industry Government has taken up the National Manufacturing Competitiveness Programme. There are 10 components targeted at enhancing the entire value chain of the MSME sector to make it competitive. The components are Lean Manufacturing Competitiveness Scheme for MSMEs, Promotion of Information & Communication Tools (ICT) in MSME sector, Setting up of New Mini Tool Rooms under Public Private Partnership (PPP) Mode, Technology and Quality Upgradation Support to MSMEs, Support for Entrepreneurial and Managerial Development of SMEs through Incubators, Design Clinics scheme for MSMEs, Enabling Manufacturing Sector to be Competitive through Quality Management Standards (QMS) and Quality Technology Tools (QTT), Marketing Assistance and Technology Up gradation Scheme for MSMEs, Building Awareness on Intellectual Property Rights for the MSME and Marketing Assistance/Support to MSEs (Bar Code).

“The Government has also recently announced a Public Procurement Policy. Therein every Central Ministry / Department / PSU shall set an annual goal for procurement from MSE sector at the beginning of every financial year. Objective is to achieve an overall procurement goal of minimum 20% of total annual purchases of products or services produced or rendered by MSE from the latter in a period of three years. After 3 years, overall procurement goal of minimum 20% will be mandatory. Further, out of 20% target of annual procurement from MSEs, a sub-target of 20% (i.e. 4% out of 20%) will be earmarked for procurement from MSEs owned by SC / ST entrepreneurs.

“The Skill and Entrepreneurial Development Programmes of the Ministry of MSME are the flagship programmes of the Government. Keeping in view the increasing number of youth joining the job market in coming years, this Ministry has been set a target of training 1.5 core persons within 2022 and more than 40 lakh persons during 12th Five Year Plan. India’s young demographic profile has the country favourably placed in terms of manpower availability. There is a need to equip the youth with skills and knowledge for giving them access to productive employment. The Ministry of MSME is recognized as a Nodal Ministry on Entrepreneurship Development by Government of India. At the uppermost echelon of this pyramid, the training provided by our state-of-the-art Tool Rooms and Technology Development Centres. In the middle of the pyramid, the Ministry provides training on entrepreneurial development skills coupled with specific skills relating to various trades which enable the trainees to try their own entrepreneurial skills, besides seeking wage employment at the middle level. At the bottom of the pyramid, the agencies of the Ministry of MSME, including the KVIC, Coir Board, MSME Development Institutes, etc., provide grassroots training to enable the bottom rug of the society in basic skill development. The Ministry of MSME is also providing free training to the marginalized sections of the society including SC/ST, women and physically challenged, along with a stipend of Rs.500/- per month per trainee.

“The MSMEs in India face several difficulties in their quest for growth. These relate mainly to easy access to capital, technology, marketing, infrastructure, availability of critical information and simplified systems and procedures. To address these issues, Prime Minister set up a Task Force on MSMEs which had given number of recommendations its report. The Report has been circulated to all concerned including the State/UT Government for implementation of the recommendations in a time-bound manner. Further, a Council on MSMEs under the chairmanship of Prime Minister has been constituted to lay down the broad policy guidelines and review development of the MSME sector. For ensuring timely/speedy implementation of the recommendations of the Task Force, a Steering Group under the chairmanship of Principal Secretary to the Prime Minister has also been constituted. Three meetings of the Steering Group have so far been held. The action on a substantial number of recommendations for its implementation has been completed.

“Availability of adequate credit is paramount to the success of the micro and small enterprises. The micro and small enterprises have traditionally relied on debt financing from banks and non-bank financial institutions. MSEs primarily rely on bank finance for a variety of purposes including purchase of land, building, plant and machinery as also for working capital. However, even for bank financing, they have to provide collateral security. To ensure better flow of credit to MSEs by minimizing the risk perception of banks/financial institutions in lending without collateral security, the Government is implementing the Credit Guarantee Scheme. The scheme provides guarantee cover of up to 85% on collateral-free credit facility extended by lending institutions to new and existing MSEs for loans up to Rs.100 lakh. More than 7.15 lakhs proposals have been approved under the Scheme so far. The Government is also implementing another credit linked scheme, namely, Prime Minister’s Employment Generation Programme (PMEGP) for assisting the young entrepreneurs to set up new micro enterprises in the manufacturing as well as the services sector. The Scheme provides for attractive subsidy for promoting self-employment and has the potential of providing employment to a very large number of people, especially in the rural areas. This is a very important scheme and needs to be pursued vigorously by the State Governments to support setting up of as many micro enterprises as possible”.

Source: Speech delivered by R.K. Mathur, Secretary, MSME  at MSME Summit organized along with FICCI.

As per the data available from Central Statistics Office, Ministry of Statistics and Programme Implementation, the estimated percentage share of Micro and Small Enterprises ( MSEs) sector in the Gross Domestic Product stands at 5.84,5.83,7.20,8.00 and 8.72 for the years 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09 respectively (latest available).

The Government monitors employment generation in MSME sector by conduct of All India Census of MSMEs periodically in the country. The latest Census (Fourth Census) was conducted with reference year 2006-07. The total employment generated by registered MSMEs, as per ‘Final Result Fourth All India Census of Micro, Small & Medium Enterprises 2006-07: Registered Sector’ is 93.09 lakh persons whereas the total employment generated by unregistered sector as per ‘Quick Results: Fourth All India Census of Micro, Small & Medium Enterprises 2006-2007’  is 502.57 lakh persons. As per ‘Economic Survey 2010-11’ total employment in organized sector of the economy, as on 31^st  March 2007, is 272.76 lakh persons.

The registration of MSMEs is a necessary condition for availing of the benefits of financial assistance schemes of the Ministry of MSME. However, the unregistered MSMEs are eligible for availing of assistance from the banking sector.

The Reserve Bank of India (RBI) has issued detailed guidelines to all scheduled commercial banks on lending to MSMEs which, inter alia, provide for a time frame for disposal of loan applications and loan limit for dispensing the collateral requirement for MSEs.

As per data available from RBI, outstanding credit   by   public sector banks to MSEs and its percentage share in total bank credit are as given below:

As per recommendations of the Task Force on MSMEs under the chairmanship of the Principal Secretary to the Prime Minister, RBI has advised the banks to achieve a 20 per cent  year-on-year growth in credit to MSEs and a 10 per cent annual growth in the number of Micro Enterprises accounts. In order to ensure that sufficient credit is available to Micro Enterprises within the MSE sector, as per the RBI’s extant guidelines to banks, 60 per cent of MSEs advances should go to the Micro Enterprises. The banks have been advised that the allocation of 60 per cent of the MSEs advances to the Micro Enterprises is to be achieved in stages viz., 50 per cent in the year 2010-11, 55 per cent in the year 2011-12 and 60 per cent in the year 2012-13.

This information was given by the Union Cabinet Minister for Micro, Small and Medium Enterprises, Shri Virbhadra Singh in a written reply to a question in the Lok Sabha

With the advent of globalization, the emphasis is on efficiency and customer satisfaction. There is a demand for quality services with stress on transparency and reliability in delivery of the services. The power sector reforms aim at achieving high customer satisfaction with the provision of uninterrupted quality power supply. However, the sector faces a number of challenges.  Some of the problems faced are old worn-out and poor distribution network. The tariff structure is skewed. There exist huge transmission and distribution losses due to theft and unmetered supply.

To combat these difficulties and to bring efficiency and commercial viability in the power sector, Restructured–Accelerated Power Development and Reforms Programme (R-APDRP) was launched by the Ministry of Power as a central sector scheme for improving the urban power distribution sector in the country with Power Finance Corporation (PFC) as the nodal agency for its operationalisation and implementation. The focus of the programme is on actual, demonstrable performance in terms of sustained loss reduction, establishment of reliable and automated system for sustained collection of accurate base line data, and the adoption of Information Technology (IT) in the areas of energy accounting as the necessary pre-conditions before sanctioning any project. The programme aims at reduction of AT&C losses upto 15% level through strengthening & up-gradation of Sub Transmission and Distribution network and adoption of Information Technology during XI Plan.

The roots of this scheme can be traced back to the Accelerated Power Development Programme (APDP) launched by the Government in the year 2000-01 when due to poor financial health of State Electricity Boards incurred huge losses. APDP aimed at (i) renovation and modernization, life extension, up rating of old thermal and hydel plants (ii) up gradation and strengthening of Sub Transmission & Distribution networks (below 33kV or 66kV) including energy accounting and metering in distribution circles. In 2002-03, APDP was renamed as Accelerated Power Development and Reforms programme (APDRP). APDRP had wider scope than the APDP. It aimed at increasing revenue collection, reduction of Aggregate Technical & Commercial (AT & C) losses, improving customer satisfaction and quality of power supply.

It was in 2008 that R-APDRP was launched as a Central Sector Scheme with a programme size of Rs.51,577 Crore. Its focus was on actual demonstrable performance by utilities in terms of sustained AT& C loss reduction. The projects under the scheme are taken up in two parts: Part A and Part B.

Part A:   It covers preparation of baseline data for the project area covering Consumer Indexing, Geographical Information System (GIS) Mapping, Metering of distribution Transformers and Feeders, automatic Data Logging for all Distribution Transformers and Feeders.

The scheme involves establishment of IT enabled system for achieving reliable and verifiable baseline data system in all towns having population more than 30,000 (10,000 in case of special category states), as per 2001 census and installation of Supervisory Control And Data Acquisition (SCADA) / Distribution Management System (DMS) for towns with population greater than 4 lakh and annual input energy  greater than 350 MU. In addition, in certain high-load density rural areas with significant loads, works of separation of agricultural feeders from domestic and industrial ones, and of High Voltage Distribution System (11kV) are also taken up. Part-A projects worth Rs.5196.50 crore covering all the eligible towns (1402) in the country have already been sanctioned. So far, 63 Supervisory Control and Data Acquisition (SCADA) projects worth Rs.1443.48crore have also been sanctioned for fifteen States (Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, Tamil Nadu, Andhra Pradesh, Madhya Pradesh, Kerala, Bihar, Punjab, West Bengal, Assam, J&K, Chhattisgarh and Uttarakhand) under Part-A.

100% funding is provided for the approved projects through loan from the Government.The loan is converted into grant once the establishment of the required system is completed within three years from the date of sanctioning and verified by an independent agency.

Part B: Its focus is on loss reduction on sustainable basis. It involves renovation, modernization and strengthening of 11 kV level substations, Transformers/Transformer centers, Re- conducting of lines at 11 kV level and below, Load Bifurcation, feeder separation, load balancing, High Voltage Distribution Systems (HVDS), Aerial Bunch Cabling in dense areas, replacement of electromagnetic electricity meters with tamper proof electronic meters, installation of capacitor banks and mobile service centers. In exceptional cases, where sub-transmission system is weak, strengthening of 33 kV or 66 kV levels may also be considered. 1086 projects worth Rs.24776.17crore have been approved for twenty States (Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh,Maharashtra, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Chhattisgarh, Uttar Pradesh, West Bengal, Bihar, Assam, J&K and Uttarakhand) under Part-B.

Successful implementation of R-APDRP will pave the way for further modernization of the field of power sector. The financial condition of DISCOMs is very poor. There is a need for good management and tight monitoring of the metering system, timely and correct billing, timely collection, better customer service and reliable power supply to enable DISCOMs restore financial viability. Further, it is very important to have focused implementation of both Part A and Part B of R-APDRP to reduce the AT&C losses and go for implementation of Smart Grids.

As per the data available from Central Statistics Office, Ministry of Statistics and Programme Implementation, the estimated percentage share of Micro and Small Enterprises ( MSEs) sector in the Gross Domestic Product stands at 5.84,5.83,7.20,8.00 and 8.72 for the years 2004-05, 2005-06, 2006-07, 2007-08 and 2008-09 respectively (latest available).

The Government monitors employment generation in MSME sector by conduct of All India Census of MSMEs periodically in the country. The latest Census (Fourth Census) was conducted with reference year 2006-07. The total employment generated by registered MSMEs, as per ‘Final Result Fourth All India Census of Micro, Small & Medium Enterprises 2006-07: Registered Sector’ is 93.09 lakh persons whereas the total employment generated by unregistered sector as per ‘Quick Results: Fourth All India Census of Micro, Small & Medium Enterprises 2006-2007’  is 502.57 lakh persons. As per ‘Economic Survey 2010-11’ total employment in organized sector of the economy, as on 31^st  March 2007, is 272.76 lakh persons.

The registration of MSMEs is a necessary condition for availing of the benefits of financial assistance schemes of the Ministry of MSME. However, the unregistered MSMEs are eligible for availing of assistance from the banking sector.

The Reserve Bank of India (RBI) has issued detailed guidelines to all scheduled commercial banks on lending to MSMEs which, inter alia, provide for a time frame for disposal of loan applications and loan limit for dispensing the collateral requirement for MSEs.

As per data available from RBI, outstanding credit   by   public sector banks to MSEs and its percentage share in total bank credit are as given below:

As per recommendations of the Task Force on MSMEs under the chairmanship of the Principal Secretary to the Prime Minister, RBI has advised the banks to achieve a 20 per cent  year-on-year growth in credit to MSEs and a 10 per cent annual growth in the number of Micro Enterprises accounts. In order to ensure that sufficient credit is available to Micro Enterprises within the MSE sector, as per the RBI’s extant guidelines to banks, 60 per cent of MSEs advances should go to the Micro Enterprises. The banks have been advised that the allocation of 60 per cent of the MSEs advances to the Micro Enterprises is to be achieved in stages viz., 50 per cent in the year 2010-11, 55 per cent in the year 2011-12 and 60 per cent in the year 2012-13.

This information was given by the Union Cabinet Minister for Micro, Small and Medium Enterprises, Shri Virbhadra Singh in a written reply to a question in the Lok Sabha

With this, the company has maintained its impeccable track record of earning profits and rewarding investors by paying dividends uninterruptedly for over three decades without a break.

A cheque of Rs.450.85 Crore towards the interim dividend for the year 2011-12 on the equity (67.72%) held by the Government of India, was presented here today to Mr. Praful Patel, Union Minister for Heavy Industries and Public Enterprises by Mr. B.P. Rao, Chairman and Managing Director, BHEL, in the presence of Mr. S. Sundareshan, Secretary, Department of Heavy Industries.

Directors on the board of BHEL as well as other senior officials of the Ministry of Heavy Industries & Public Enterprises and BHEL were also present on this occasion.

The growth momentum achieved by BHEL in 2010-11 is likely to be accelerated in the current fiscal. The company has recorded significant growth in its turnover and achieved a quantum jump of 14% in profitability in the first nine months of 2011-12, with its Net Profit (PAT) at Rs.3,660 Crore, compared to Rs.3,213 Crore in the corresponding period in the year before. With this, BHEL has maintained its track record of earning profits uninterruptedly for four decades without a break.

With an order book position of over Rs.1,46,500 Crore, at the end of the third quarter, the company expects to achieve robust growth in 2011-12 and beyond.

BHEL has been committed to the nation’s power development programme and has reaffirmed its commitment to the Indian Power Sector by equipping itself by way of contemporary technology, state-of-the-art manufacturing facilities and skilled technical manpower. The company has established the capability to deliver 15,000 MW per annum and further augmentation to 20,000 MW per annum is underway.

While presenting the Union Budget 2012-13 here today in LokSabha, ShriPranab Mukherjee, Finance Minister announced a financial package of Rs. 3884 crore for waiver of loans of handloom waiver and their co-operative societies. The Finance Minister has also announced setting-up of two mega handloom clusters covering Prakasam and Guntur districts in Andhra Pradesh, and Godda and neighbouring districts in Jharkhand. A powerloom mega cluster is proposed to be set-up in Ichalkaranji in Maharashtra with a Budget allocation of Rs. 70 crore in order to address the need of the local artisans and weavers.

The Finance Minister, Shri Mukherjee announced that a Rs. 500 crore pilot scheme for promotion and application of Geo-textiles will be set up in the North-Eastern region. In addition, three Weavers’ Service Centers are proposed to be set up in Mizoram, Nagaland and Jharkhand. These centers provide technical support to poor handloom weavers, he stated.

Further, considering the shortage of skilled manpower in the manufacture sector and in order to generate employment, the Finance Minister, Shri Mukherjeehas proposed to provide weighted deduction at the rate of 150 per cent of expenditure incurred on skill development in manufacturing sector in accordance with specified guidelines.

Providing relief to a large number of SMEs, it has been proposed to raise the turnover limit for compulsory tax audit of accounts as well as for presumptive taxation from Rs. 60 lakh to Rs. One crore.

The Survey has said that the challenge for the sector in the short term would be to shore up of business sentiments, spur investment in productive activities and identify bottlenecks that can be removed in a reasonably short period of time. With the easing of headline inflation, moderation in commodities prices in the international market, and revival of manufacturing performance in recent months in the major economies, India’s industrial sector is expected to rebound during the next financial year.

According to the Survey, the long term average annual growth of industries comprising mining, manufacturing and electricity has in general remained aligned with the overall GDP growth rate during the post reform period between 1991-92 and 2011-12, averaging 6.7% as against GDP growth of 6.9%. The share of industry (including construction) and manufacturing in GDP remained generally stable at 28% and in the 14-16% range respectively during this period. The share of industry in total employment, however, increase from 16.2% in 1999-2000 to 21.9% in 2009-10 largely on account of expansion of employment opportunity in the construction sector from 17.5 million in 1999-2000 to 44.2 million in 2009-10.

The Survey has highlighted that the industrial growth, measures in terms of Index of Industrial Production (IIP) during April-December 2011 reached 3.6% compared to a growth of 8.3% in the corresponding period of previous year. There was a contraction in production in the mining sector, particularly in the coal and natural gas segments. The electricity sector witnessed and improvement in its growth in the current year. Growth also moderated in the manufacturing sector from 9.0% in April-December 2010 to 3.9% in April-December 2011. The Survey also points out that the basic goods and non-durables goods had a relatively better growth at 6.1% compared to the growth in the corresponding period of previous year. There was a moderation in growth in other segments of IIP and negative growth was observed in capital goods and intermediates segments.

As per the Economic Survey 2011-12, the share of Gross Capital Formation (GCF) in industry as percent to the overall GCF, after peaking to a level of 54.9% in 2007-08, moderated to 48.3% in 2010-11 the manufacturing GCF growth rate declined to 7% in 2010-11 from 42% in 2009-10. In the current year, the rate of growth of banking sector credit flow to industries moderated significantly. On year-on-year basis, credit growth to industry decelerated to 19.8% in December 2011 from 31.6% in December 2010. Moderation in rate of growth of credit was particularly large for the infrastructure and manufacturing sectors.

The Survey has stated that in medium to long term several challenges remains for the sector. The Planning Commission has projected growth rates of 9.8% and 11.5% in manufacturing sector required to achieve 9 % and 9.5% economy growth respectively. Commenting on the National Manufacturing Policy (NMP) which has envisaged even higher growth of 14% per annum so as to take the share of manufacturing in GDP to 25% and increase the absorption of labour in this sector from 50 million as of today to more than 150 million by 2022. The Survey notes that to achieve this policy objectives, several policy measures will have to be pursued simultaneously such as resolving issues of land availability and infrastructure for the proposed national investment and manufacturing zones (NIMZs); strengthening backward and forward linkages of manufacturing sector with agriculture and services sectors respectively; acquiring depth in manufacturing sector by focusing on high value addition industries; and prompting FDI to fill the saving-investment gap etc.

India has the potential to take lead and provide a new meaning to the BIMSTEC engagement that has potential of generating trade worth 43 to 59 billion dollars under a proposed free trade agreement (FTA), they said at a conference organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Ambassadors and trade officials from Sri Lanka, Bangladesh, Myanmar and Bhutan were present for the launch of ASSOCHAM manual listing an overview and key sectors of each BIMSTEC nation.

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) brings together 1.3 billion people or 21 per cent of the world population, a combined GDP of two trillion dollars and a considerable amount of complementarities.

The sub-regional group comprises of India, Bangladesh, Sri Lanka, Thailand, Myanmar, Nepal and Bhutan. BIMSTEC has a trade negotiating committee which is
working on the list of goods regarding a framework agreement signed in 2004. An FTA is yet to be finalised.

“India is required to play a lead role by integrating trade and investments while promoting economic cooperation,” said chamber’s secretary general D.S. Rawat in his message. “The BIMSTEC member countries could jointly develop multi-sectoral infrastructure and technology.”

The regional grouping visualised as a bridging link between ASEAN and SAARC, and an important element in India’s Look East Policy. It adds a new dimension to the country’s economic cooperation with south-east Asian countries.

This settlement will set the pace for the rounds of wage negotiations in all those industries where five years tenure of last settlements have either expired or are likely to expire very soon. But, most importantly, this settlement has rested all the confusion which had shrouded the Public Sector workers movement on the question of ‘periodicity’ of agreement. It may be mentioned that the movement got itself divided on this issue into two distinct ‘compartments’ during the last course of negotiation. Despite the fact that the leaderships of major national trade union centres were originally in unanimity, for a smaller tenure of agreement but in the end, the leaders of all the national trade union centres, except CITU, had allowed them swayed away at the deceptive notion that longer tenure would provide better benefits. The way they had finally accepted the ten years’ periodicity in major public sector industries, reminds the Leninist understanding that the trade unionism lives in a state of spontaneity . In such eventuality the trade union leadership often allow themselves carried away by those vocal sections of workers who basically represents the backward and selfish consciousness. Now, even if the question of ‘risk’ lies with the longer periodicity factor is kept aside and the agreements of ‘two’ sets of periodicity is compared, it would be seen that the acceptance of smaller tenure has fetched better relief than any agreement signed on ten years term. However, present experience has proved beyond doubt that what has been considered better in class consideration, is bound to be appropriate in term of economic benefit too. In the contexts of high inflationary economics and volatile socio-polity, entering a longer industrial truce, always carry wider risk for the working class. The coal experience has been that if in case of first five years, it has attained a minimum guaranteed benefit of 24%, the next five years would add 25% over the gross which is 88% above since been drawn five years before and with all corollary accruals. Yet, for calculating the real benefit one has to add 4%, guaranteed for all the workers as special pay.

Further, in long term class perspective, the NCWA-IX has contributed moderately for widening class senses, class unity and an amount of social context. If it is considered that the Indian Trade Union movement has reached the time when it should look forward beyond the horizon, bring itself out of narrow sense of economism, one should consider that the present settlement has been a modest beginning. It has shown some wisdom at least to cover some areas of social aspect. In recent times, it became the common feature when wage settlements were getting restricted mainly with immediate economic benefit of permanent workers. Hardly any social aspects were taken into consideration in successive agreements in organized sector. Despite repeated call by CITU, very few trade unions had shown interest to take up the issues of contractor workers and mobilize the permanent workers. Once trade unions show reluctance even to organize contractor workers in trade unions, it was not expected that their issues will find prominence in the negotiation. One should not consider the issue of contractor workers as something outside the industry . The Coal workers movement has been failing even to take up the issues concerned with post retirement benefits and other social issues which are directly concerned with working class society. It was unthinkable to believe that the trade union movement has been failing to create a social guarantee for the education to average coal workers’ children, despite the fact that this section of workers represents the most socially depressed & backward section of Indian workers in the organized sector of industries. One would find it peculiar to note that when the industry has assured full reimbursement for those children who are placed in higher technical education, it has failed to address such reimbursement for those who are studying up to twelve standard. In such a scenario the agreement, has opened an avenue for post retirement benefits like medical and improvement of existing rate of pension as third retirement benefit.

Since the agreement has brought substantial relief to the workers, as it happens all the time the trade union leaders who were the parties in the agreement have been showing enthusiasm to take their share of credit for conducting effective negotiations. But, the AICWF would humbly submit that the basic reason behind the success lies with the fact that the workers could be roused with a sense of self-dignity and the only credit the Federation would claim that it could make some modest contribution in this dignified rousing. If the Federation takes the pain to introspect its recent past, it would find that a sustained continuity in rousing this sense of class dignity, in one end has provided them the crown of class leadership and in the process brought some financial relief as the bye-product. The process of consolidation which has been initiated though nationwide coal strike in 5th May 2009 which had been organized single handedly by CITU led Federation, got galvanized into a total strike on 10th. October, 2011 on Bonus. Only the veterans in the trade union movement would vouch that such an electrified strike cannot take place in massive industry only on economic issues, unless it is adequately charged with workers dignity and self respect. It is the credit of CITU that it could effectively, carry this sense into the negotiation table which owing to its huge composition and total representation had been almost an open negotiation.

The coal workers’ movement and this negotiation has broken the myth being built that the technology based mental workers do not consider themselves as the labour. The struggle has proved that if the leadership is capable to mix the content of social aspects into the economic struggle, this section of work force find reason to rouse themselves. 10th. October strike proved beyond doubt that no amount of strike struggle is capable to rouse class passion unless it is adequately charged by class intellectuality which is embodied only by the mental workers when the physical labour embodied courage, sense of unity, strength and emotion. In the way of combining these faculties CITU, viewed in the negotiation to bring the economic content in the context of principle. It took the position that if workers’ wage is settled on the basis of ground level performance , Executive’s wage should also be determined on the same standard. It viewed that the amount of bonus came , had been viewed quite substantial till fabulous sum of Rs. 26 lacks have been paid to ex-chairman as PRP. The matter of Perks came in the same context. It maintained once wage is settled both for the non-executive and executive, Government should not have introduced new content in the name of either the Rao commission or Mohon commission. Thus the way the struggle for common standard been carried the negotiation has advanced. The question of integrating the contractor workers and expansion of post retirement benefit came in the same context.

If the offer made on post retirement benefits is given an introspective look, would be found that the new commitment will take the post retirement commitment to around 30% at par with the executive. New Provisions made on social securities are as follows :

* Section “ 9.1.0 : The existing Life Cover scheme will continue except that the amount to be paid in addition to the normal gratuity shall be Rs. 1,12,800/- w.e.f. 1.2.2012

* Section “ 9.2.6 : In addition to the compensation payable under the Workmen’s Compensation Act, an exgratia amount of Rs. 84,600/- in case of death or permanent total disablement resulting on account of accident arising out of and in course of employment will be paid…..”

* Section “ 9.2.7 ……..an amount of Rs. 5 lakhs shall be paid to the next of kin of any employee dying out of fatal mine accident.”

Provision made for post retirement medical and for reviving the existing Pension fund is not so small :

* “Section , 13.8.0 Post Retirement Medicare scheme for retired non-executives and their spouses shall be finalized by the committee on the line of SAIL pattern or otherwise within three months.” It may be mentioned that this is an improvement over the decision taken in the first JBCCI meeting that retirees will be entitled to avail the facilities of Company’s hospital facilities.

* “Section 13.9.0. An actuary has been appointed by the BoT of CMPF. After submitting the report of actuary, a committee will examine lit and recommendation shall be sent to the BoT of CMPF including contribution from both sides.”

The way the agreement could bound the employer to take a fair view about the wages and social benefit, had its appeal beyond coal and into the entire organized sector of industries. It is the matter to be noted that the swelling of this workforce occupying permanent duty posts in organized manufacturing has been reducing all wage negotiations for the permanent workers, as almost a supernumerary status restricted for those workers who are in permanent role at present. Thus wage agreement for the permanent workforce, has turned illusory on the question of maintenance of real wages for average coal workers. However, the All India Coal Workers’ Federation could realize that unless improvement is ensured in the contractor workers’ wages, the real wage of coal workers will continue declining in the same percentage the existing work force will retire. The provision made for the contractor workers is significant in the above said context. It is all the more important, in view of the fact that at present more than fifty percent or more of the annual coal production comes through contractors. The coal agreement has been the first when any Public Sector Company carried such positive direction on the matter of wage and service condition for contractor workers. The positive aspect of the provision is as follows :

Section “13.7.0. The recommendation of High Power Committee on the issue of minimum wages and social security measures of the contractor’s workers engaged in mining operation by the contractor. In last meeting the management offered Rs. 367/- – Rs. 387/- & Rs. 430 for Unskilled, skilled and highly skilled respectively on the basis of mid point formula. However, the issue will be deliberated in the ensuing meeting and the recommendation shall be sent to the Ministry within three months.”

However, if it is believed that this provision by itself would resolve the agony of contractor workers, it would be over expectation. The wisdom and the direction which has been expressed in the agreement would fructify only when our movement would be able to use by way of creating required organizational guarantee. The platform built in the agreement will get activated only when the contractor workers will be mobilized around and powerful support from the permanent workers is ensured. One has to go by the belief that the accomplishment of this task would stand as the greatest trial of the time before the leadership of All India Coal Workers Federation.

The organisational structure should be redesigned for customer care and resource generation, increasingly become self-sufficient over the next 10 to 15 years and provide good profits for government revenues.

For this, a three-way split is essential with passenger and freight sections becoming separate entities and operations put under the direct control of the Railway Board, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) ahead of the Railway Budget on March 14.

“The Railways may consider withdrawing from non-transportation activities through corporatisation and outsourcing to focus on enhancing passenger safety. Private companies should be allowed to participate as joint venture partners to bring in substantial funds and improve services,” said secretary general D.S. Rawat quoting the study titled ‘Railway Challenges – Restructuring is the Solution.’

Services under the private sector could include catering, laundry, cleaning of trains, provision of entertainment and information systems within and outside trains, placing of advertisements, food courts, provision of wheel chairs and medical facilities.

Due to rapid urbanisation and rising incomes, the huge gap between demand and supply of passenger seats and berths is further widening which could lead to frustration among people. The Centre and states must prepare the public to share burden of rising operating costs.

To meet safety requirements, the Railways need over Rs one lakh crore over the next five years including Rs 20,000 crore for advanced signaling systems on 19,000 kilometres of trunk routes, Rs 50,000 crore for elimination of all level crossings and Rs 10,000 crore for manufacturing coaches with advanced designs.

“Our proposal is to let some space in each station be auctioned to private enterprises for various passenger amenities like hotels, food courts and retail outlets,” said the ASSOCHAM study. “At least 500 of over 7,000 stations will be attractive propositions for entrepreneurs.”

At the same time, the Indian Railway Catering Corporation should be converted into a joint venture with a reputed catering service provider. Rail stations need to be redesigned for easy movement of luggage trolleys on platforms. The work on high speed train corridor should be expedited. Various ongoing projects may be reviewed by a high-level committee to minimise cost over-runs.

“The core problem for Railways is that its losses mount with rising passenger traffic. In 2010-11 the loss was to the tune of Rs 14,000 crore or 18 paise per passenger. There is immediate need to lay down a precise roadmap for private sector collaboration if the objective of raising resources through public private partnership is to be achieved,” said the ASSOCHAM study.

Emphasis should also be laid on developing entrepreneurial and managerial skills that private sector can bring into rail transport with value addition for the end user, it said

Spurred by rising demand for herbal and perfumed colours the Holi colour industry is likely to reach Rs 4,500 crore this year, according to an analysis of the Associated Chamber of Commerce and Industry of India (ASSOCHAM).

“Considering the constant aggressive campaigns and rise in public consciousness against the use of low quality, adulterated, synthetic and harmful chemical laden colours has driven the growth in demand for herbal and environment-friendly colours during Holi festivities,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the analysis.

The Holi accessory industry consisting of water guns, colour spray cans, water balloons, cannons and toys is likely to reach Rs 7,500 crore this year.  Nearly 85 per cent of the Holi accessories market is abuzz with collection of Chinese goods. “Most of these goods lack in quality but are popular amid kids, youngsters and are dominating the market due to their attractive, innovative designs and colours,” said Mr Rawat.

To ascertain the extent of demand and supply for herbal colours and Chinese Holi accessories, ASSOCHAM Social Development Foundation (ASDF) conducted a random survey of about 300 Holi colour manufacturers and shopkeepers at Allahabad, Brij Mandal (Agra, Hathras, Mathura and Vrindavan), Delhi, Kanpur, Lucknow and Patna during the month of February.

Majority of the manufacturers at Hathras, Kanpur, Mathura and Patna said demand for herbal colours has been growing steadily at a rate of about 30 to 35 per cent year on year and they are gradually reducing use of chemicals, dyes and oil paint to make Holi colours. Most of these respondents also said they have in-house labs to monitor the safety standards of the herbal colours to be sold during Holi.

Many Holi colour manufacturers said they have been receiving negative feedback from clients and consumers that synthetic colours had been causing skin allergies, asthma, eye infections and other significant health problems which triggered them to shift their focus on making herbal colours.

“Though, costly but herbal colours are a hit amid people as they are made from natural ingredients and ayurvedic preparations and go through stringent quality control checks. Besides, herbal colours are eco-friendly, non-toxic, soft, emit natural aroma and fragrance,” said Mr Rawat.

ASSOCHAM representatives interacted with nearly 50 shopkeepers at wholesale markets of Sadar Bazar and Khari Baoli and retail markets of Karol Bagh, Shahdara, Rohini and Lajpat Nagar.

Most of the shop owners in the wholesale and retail markets said Chinese water guns and toys are selling like hot cakes and are a huge attraction amid kids while sales of traditional Holi accessories like the steel and brass water guns have gone south.

Over half of the respondents in Delhi markets said demand for herbal colours has been on an overdrive during the course of past few years and thus they have scaled up the supply of herbal colours.

Many wholesale dealers said demand for synthetic and dye based colours is more from retailers in north-east Delhi in Bhajanpura, Nand Nagri, Karawal Nagar and others where people from eastern UP and Bihar are residing more in numbers.

Overall Exports during 2011-12 compared to 2010-11

Export of Fr. Shrimp and Fish have registered a positive growth both in quantity and value. Similarly exports to South East Asia, Japan and USA have registered a positive growth both in quantity as well as in value terms. Frozen Shrimp continued to be the major export item accounting for 51.35% of the total US $ earnings.  Shrimp exports during the period increased by 17.67%, 34.77% and 32.98% in quantity, rupee value and US$ value respectively. There is a considerable increase in unit value realization (13.01%) also. Export of Vannamei Shrimp during the period increased tremendously by 272%, 326% and 318% in quantity, rupee value and US$ value respectively, when compared to the same period last year. Export of Fr. Shrimp to USA has registered a growth of 38.34% in quantity, 41.97% in rupee value and 41.07% in US$ terms. Fr. Shrimp export to Japan also showed an increase of 10.15%, 19.40% and 18.00% in volume, rupee value and US$ value respectively. Fish, the second largest export item in value term, accounted for a share of about 39.43% in quantity and 19.14% in US$ earnings.Fr. Fish exports during the period increased by 6.40% in quantity, 21.81% in rupee value and 15.96% in US $ earnings. Unit value realization also improved by 8.99%.

Fr. Squid and Cuttlefish exports decreased in quantity but showed an increase in value terms both in rupee as well as in US $ term. Fr. Cuttlefish showed a decline of 12.30% in quantity and showed a growth of 14.97% and 11.35% in rupee value and US$ realization. There is a considerable increase in the unit value realization 26.97%.
Fr. Squid exports showed a decline of 12.21% in quantity and showed a growth of 20.10% and 18.28% in rupee value and US$ realization. There is an increase in the unit value realization by 34.73%. Dried items export declined by 39.11% in quantity 55.08% and 56.53% in rupee and US$ value respectively. The exports of Chilled items improved in value but decreased in volume. Live items exports gone down both in value as well as in volume when compared to same period last year. For the first time, South East Asia became the largest market with a share of 25.75% in US $ realization and 39.58% in quantity.  Exports to S E Asia have shown a growth of 43.19% in quantity, 103.70% in rupee value and 95.99% in US$ realization.

EU slipped to second spot with a share of 22.02%, followed by USA 19.17%, Japan 14.09%, China 7.06%, Middle East 4.39% and other countries 7.51%.  Exports to EU registered a growth of 1.33% in US$ realization but declined in quantity by 13.66%.  Export to USA registered a growth of 31.33% in quantity and 39.05% in US$ realization. Japan also registered a positive growth of 19.25% in quantity and 18.12% in US$ realization. Exports to China have shown a drastic decline both in quantity as well as in value terms. The Surge in exports to SE Asia is attributed to shortage of raw material in that region as well as due to the Indo – ASEAN trade pacts.  The short supply from SE Asia and Indo – Japanese CEPA has also had a good impact on the exports to Japan.

 Export realization in rupee terms increased by about 22% and depreciation of rupee against US dollar and other major commercial resulting in better value realization in rupee terms also.  Considering the increase in exports experienced in hall 3 quarterly Indian seafood exports for 2011-12 are likely to increase by nearly 20% in US$ terms in comparison to 2010-11 to US $ 3.5 billion from US$ 2.8 billion last year.

In order to give further momentum to the export of marine products from India, the Marine Products Export Development Authority (MPEDA) along with the Seafood Exporters Association of India (SEAI) is organizing the 18th India International Seafood Show (www.indianseafoodexpo.com) at Chennai Trade Centre, Chennai from 29th February to 2nd March 2012.  The Event will be inaugurated by Dr K Rosiah, His Excellency Governor of Tamil Nadu on 28th February 2012 evening.  The function will be presided over by Shri Anand Sharma, Hon’ble Union Minister of Commerce & Industry and Textiles.  The Show will have more than 200 stalls spread over 4400 sq.m. area and over 1500 delegates and visitors.  Technical Sessions are also planned on the sidelines of the Show.

Training-cum-Incubators

Incubation i.e. providing hand holding support to MSMEs in selection and operation of selected enterprises is one of the best ways to nurture entrepreneurship.  NSIC has set up three such Training-cum-Incubator Centres (TIC) at New Delhi, Howrah and Guwahati for providing hands on training to small enterprises.  In addition to its own TIC, NSIC has started leveraging the resources available in the private sector by setting up NSIC -Training-cum-Incubation Centre (NSIC-TIC) in the Public-Private Partnership (PPP) mode to provide hands on training to MSMEs throughout the country.  43 such NSIC-TIC have been set up under PPP Mode.

Technological Facilitation Through NTSCs

 NSIC Technical Service Centres (NTSCs) provide common facility and support services through its various branches and Extension Centres in the area of material testing, machining, EDM, CNC facility, energy and environment services, classroom, practical training for skill upgradation, etc.

Infomediary Services

NSIC is providing information services with respect to tender and trade information, technological resources in India and abroad, national and international leads, joint ventures opportunities, Government schemes/programmes, large data base with respect to MSMEs etc.  These are on-line facilities provided by NSIC to its members.  In addition, NSIC has launched its web portal which is available at www.nsicindia.com and www.nsicpartners.comwhich contain information about 2,50,000 Indian MSMEs and also information about its counterpart organizations in 28 countries for B2B facilitation.

Raw Material Assistance Scheme

The Scheme aims at helping Small Scale Industries/Enterprises by way of financing the purchase of Raw Material (both indigenous & imported). This gives an opportunity to MSMEs to focus better on manufacturing quality products.

Credit Facilitation

NSIC facilitates MSMEs in preparing their loan proposals and sanction of loans from commercial banks. NSIC has entered into tie-up arrangements with several banks for sanction of term loan and working capital facilities.

Government Store Purchase Programme

The Government is the single largest buyer of a variety of goods. With a view to increase the share of purchases from the small scale sector, the Government Stores Purchase Programme was launched in 1955-56. NSIC registers micro and small enterprises (MSEs) under Single Point Registration scheme for participation Government Purchases.

Consortia Marketing Scheme

MSMEs in its individual capacity faces problem very often to procure & execute large orders, which inhibits and restricts the growth of MSMEs.  NSIC, accordingly adopted Consortia Approach and built groups/consortia of units manufacturing same products, thereby easing out marketing problem of MSMEs. The Corporation explores market and secures orders for bulk quantities. These orders are then farmed out to small units in tune with their production capacity.

Tender Marketing Scheme

The Corporation participates in bulk global tender enquiries and local tenders of Central & State Government and Public Sector Enterprises on behalf of small scale units. It is aimed to assist MSMEs with ability to manufacture quality products but which lack brand equity & credibility or have limited financial capabilities. Under this scheme, the Corporation has identified large number of items for which it actively participates in tenders of these Departments and Enterprises. On receipt of the orders, Corporation farms out these orders to the units on whose behalf it has quoted.

Marketing Assistance Scheme

NSIC is implementing the scheme on behalf of Ministry of MSME. NSIC acts as a facilitator to promote marketing efforts and enhance the competency of the small enterprises for capturing the new market opportunities by way of organizing/ participating in various domestic & international exhibitions/trade fairs, buyers-seller meets, intensive campaigns/seminars and consortia formation.

Performance  & Credit Rating Scheme

NSIC is implementing the scheme on behalf of Ministry of MSME. The Scheme aims to create awareness amongst micro and small enterprises (MSEs) about the strengths and weakness of their existing operations and to provide them an opportunity to enhance their organizational strengths and credit worthiness. The rating under the scheme serves as a trusted third party opinion on the capabilities and creditworthiness of the small enterprises. An independent rating by an accredited rating agency has a good acceptance from the Banks/Financial Institutions, Customers/Buyers and Vendors.

To extend the benefits of the various schemes and increasing its reach, NSIC has entered into Memorandum of Understanding (MoU) with various industry associations so that information about the schemes and their benefits can be extended to larger number of MSMEs through them. MoUs have been entered into with 57 Industry Associations out of which four have been signed during 2010-2011. (PIB Feature).

Acclaimed film-maker and creator of Munkeeman, Abhishek Sharma agreed that more children were now increasingly drawn to interactive media such as internet, than comic books. “This generation of kids is more tuned in to watch television or surf internet, than read comics,” he said.

However, he didn’t find this trend very strange.

“I’d say it is just organic growth. With increased avenues of entertainment, the kids prefer those which are more eye-catching. Most of the comic lovers are from our generation, who have grown on a staple diet of Pran and Anant Pai’s creations,” he told IANS.

From eight-page booklets to big graphic novels, the Comic Con presented a wide range of comics. The annual event celebrates the use of cartoons and comics in the ancient Indian tradition of story-telling.

The three-day event will showcase 80 participants and several interactive sessions and talks by renowned artists like Robert Crumb.

Indeed the comics with their increasingly darker themes and subjects seem to be catering more to young adults than kids.

From epic tales being told from the antagonist’s perspective, such as Ravanayana, to a graphic novel by Ari Jayaprakash based in Sonagachi, the world famous red-light district of Kolkata, the new comics seem to be breaking new grounds in story-telling.

Jayaprakash said this trend meant that comics were gathering acceptance even with more mature audiences.

“The central character of my story is an Aghori woman. It is based in an alternate Kolkata, which has become a dark place. Set in Sonagachi, the story has a lot of mature themes,” he said.

Incidentally, Aghoris were the central characters in more than one novel. Aghoris are devotees of Lord Shiva and are said to follow practices such as staying in charnel grounds and cannibalism.

Indian superheroes, such as the Avatars of Vishnu, were also a big subject for many books. However, while the stories largely followed the mythologies, the illustrations had a lot of western and Japanese-style Manga comic influences with elaborate costumes and character details.

However, despite the huge number of new books, the old favorites, Amar Chitra Katha and Raj comics titles such as Chacha Chaudhary, Billu and Pinki still drew a lot of connoisseurs.

“I love Tinkle and Chacha Chaudhary. I plan to buy several new titles,” said Shilpa Lal, 19, a self-proclaimed Pinki fan.

“I grew up reading Nagraj, Super Commando Dhruv and many other Indian superheroes. No new superheroes can replace them,” said Sanyam Kaushik, 26, a management professional.

A lot of content creators also showcased their comics as apps for popular smartphones and tablets. Amar Chitra Katha led the pack with all their titles available as apps for iPad.

Besides the comics, the Comic Con also hosted several events such as live entertainment, contests and a Cosplay competition. Cosplay is a Japanese concept where people dress up as their favourite characters and prizes are given for the best costumes.

In recent years, the global chemical and petrochemical industries have moved eastward towards Asia and the Middle East with major hubs being set up in these regions. This simultaneously represents a tremendous window of opportunity for Indian chemical and petrochemical industries, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

India can take advantage of this shift and attract large funds from investors keen to invest in the region near mega demand centres – India and China – it said in the study titled ‘Mark Up for Growth: PCPIR in Andhra Pradesh.’ With investments of 60 billion dollars, the Indian chemical industry employs one million people directly and indirectly.

The government has so far notified four petroleum, chemicals and petrochemical investment regions (PCPIRs) – Dahej in Gujarat, Haldia in West Bengal, Paradeep in Orissa and Vishakhapatnam in Andhra Pradesh. The proposal of Tamil Nadu government for a PCPIR at Cuddalore has been approved by the Cabinet Secretariat and forwarded to the Cabinet Committee on Economic Affairs. Another project at Mangalore in Karnataka is at planning stage.
The notified area of PCPIR in Andhra Pradesh is 603 square kilometres. There are five special economic zones (SEZs) including two multi-product SEZs, two pharma SEZs and one apparel SEZ.

Among major players who have expressed interest in setting up units here are: Hindustan Petroleum, LG Polymers, Coromandel Fertilisers, Andhra Petrochemicals, Rain Commodities, Pharma City with Pharma SEZ, Hetero Pharma SEZ, Godavari Fertilisers and Chemicals, and Nagarjuna Fertilisers and Chemicals.

With the setting up of Andhra Pradesh PCPIR, the state’s objectives of attaining growth, development and employment generation are aligned with the national objective of creating a world class infrastructure such as widening of national and state highways, rail links, upgradation of airports and seaports, improving power and water supply.

Strategic location and robust infrastructure back up the supports for domestic and global players to invest in setting up units in Andhra Pradesh PCPIR that consists of a processing and a non-processing area. The processing area occupies a minimum of 40 per cent of total area – that is about 100 square km – and includes manufacturing facilities along with logistics and other services with required infrastructure.

The non-processing area will hence occupy a maximum of 60 per cent of the total area – about 150 square km and include residential, commercial and other social and institutional infrastructure.

However, the Indian industry faces major competition from hubs in China, Singapore and the Middle East to grab a share of the investment pie. India needs to maintain certain levels of competitiveness and cost effectiveness to tackle this competition.

Thus PCPIRs – with their integrated and resource efficient approach – are vital for the Indian chemicals and petrochemicals industry, said the ASSOCHAM.

Growing at a compound annual growth rate (CAGR) of about 15 per cent the Indian footwear industry is likely to reach about Rs 38,700 crore by 2015 from the current level of about Rs 22,000 crore, apex industry body ASSOCHAM said today.

India produces nearly 300 crore pairs of footwear annually, exports over 10 per cent and accounts for about 15 per cent of annual global footwear production which is over 2,000 crore, according to a study titled ‘Indian Footwear Industry: An Analysis’ released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“The domestic footwear market is driven by growing fashion consciousness together with increased disposable income among India’s urban middle class which contributes about 45 per cent of overall footwear market making India the second largest global producer of footwear across varied segments after China,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the findings.

“Low cost of production, abundant availability of raw material, ever-evolving retail ecosystem, buying patterns and a huge consumption market are certain basic features that sets apart the Indian footwear market,” said Mr Rawat.

Driven by larger penetration into tier II, III cities and growing rural market various premium footwear brands are foraying into India’s non-metro market which holds enormous growth potential and account for about 55 per cent of the overall footwear industry.

Per capita consumption of shoes in India (number of footwear worn by an individual) is currently about 2.5 shoes per year, said the study.

The global footwear market which is growing at a CAGR of about five per cent is currently estimated at about Rs 10.15 lakh crore is likely to reach Rs 12.34 lakh crore by 2015, said ASSOCHAM study.

Indian footwear market is dominated by men’s segment which accounts for about 55 per cent followed by ladies’ and kids’ segement which account for about 30 per cent and 15 per cent respectively.

Nearly 70 per cent of the labour-intensive footwear industry in India is in the unorganised sector and employs about 15 lakh people majority of whom are rural artisans, cottage and household units, while the organised sector accounts for remaining 30 per cent and employs over five lakh people.

The footwear industry is divided into various segements – formal, semi-formal, casual and sports. Adidas, Bata, Balujas, Converse, Da Milano, Lee Cooper, M&B, Metro, Nike, Provouge, Puma, Reebok, Red Tape and Relaxo are certain well known footwear brands in India.

Most of these brands have their exclusive outlets and account for about 55 per cent of the footwear market while multi-brand retail outlets account for about 30 per cent.

In the non-leather footwear segment there is huge demand for slippers as it is cheap, convenient and suits the needs of the rural consumer as it can be used as multi-purpose footwear. Rural India accounts for about 60 per cent of slippers manufactured in Indian footwear market.

Online shoe shopping is a significant segement that is fast emerging in terms of footwear sale and currently accounts for about eight per cent of the overall industry and is expected to reach about 20 per cent by 2015.

“Consumers in India have become more fashion and brand conscious and due to fast changing fashion trends young professionals tend to update their footwear collection every two to three months and maintain a separate budget of their salary only for shoe shopping,” said the ASSOCHAM study.

ASSOCHAM interacted with about 1,000 young professionals in the age group of 21 to 30 years to evaluate their footwear purchasing tendencies in 10 cities (100 respondents in each city) of Ahmedabad, Bangalore, Chandigarh, Chennai, Delhi-NCR, Hyderabad, Kolkata, Lucknow, Mumbai and Pune.

The sample included equal number of male and female respondents with a monthly salary between Rs 15,000 and Rs 50,000. Nearly 40 per cent of respondents said they upgrade their shoe collection every two months and usually spend about Rs 6,000 to Rs 8,000 every four months on branded footwear.

Almost of all of these said they manage a separate budget of 10 per cent of their monthly salary for shoe shopping. Nearly 25 respondents said they spend about Rs 3,000 to Rs 5,000 every quarter on shoes. Remaining said they spend over Rs 1,500 every two to three months to buy new shoes.

An interesting aspect of the survey is that majority of women respondents (60%) of the total women interviewed said they buy minimum of two pairs at a time and are more concerned about style and looks than comfort and endurance and are not that brand conscious and throng local markets more often for the best deal. While nearly 45 per cent of men said they prefer buying branded shoes as they are more concerned about quality, price and strength of the product.

Respondents said they shop for shoes almost everywhere be it the traditional shopping markets, specialty stores, high-end designer stores, retail chains and the branded stores. Changing fashion trends, desire to look good and staying ahead in the peer group are certain reasons cited by the respondents to buy new shoes.

The value of trade in commodity futures market may exceed Rs 170 lakh crore in 2011-12 from Rs 119.5 lakh crore in the previous year and Rs 66,000 crore in 2002-03, he said while inaugurating a conference organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

A parliamentary standing committee examining The Forward Contracts Regulation Amendment Bill 2010 has supported participation by banks in the sector. “Once the bill is passed, requisite statutory provisions will be put in place to ensure more effective regulation and development of commodity futures market,” said Mr Agarwal.

This will generate greater confidence among stakeholders, encourage them to participate in futures market, improve market liquidity, strengthen true price discovery process and enhance the market’s economic utility.

Mr Agarwal said the proposed Goods and Services Tax will help create a unified national agriculture market for the benefit of farmers, consumers, traders, hedgers and banks by curbing irregular and manipulated practices which lead to price manipulations. He said the Forward Markets Commission should revive crop-specific exchanges and ensure fair and transparent trading.

Ms Ganga Murthy, principal advisor at the department of consumer affairs, called for launching massive capacity building programmes among bankers while the Reserve Bank of India is being persuaded to permit participation of banks and financial institutions in futures market.

The development of sound warehousing infrastructure backed with a well-developed receipt system will facilitate greater integration of futures market with physical commodity market, she said adding more efforts need to be made to conduct commodity-specific research so that retailers are aware of the risks involved in leveraged trading.

About 12 per cent of trading volume in future markets is in agricultural contracts, depicting trade to be highly skewed in favour of non-agricultural commodities like precious metals.

Mr Ramesh Abhishek, chairman of the Forward Markets Commission, said 14 lakh clients trading at national commodity exchanges indicate the increasing liquidity, depth and participation of the market.

“The participation of producers, consumers and others having exposure to physical commodity market need to increase considerably in futures market so that it functions as a tool for price discovery and price risk management.”

Mr V.V. Sadamate, advisor at the Planning Commission, said agriculture marketing reforms and liberal bank lending will be key growth drivers as the country achieves record 250 million tonnes of food production.

ASSOCHAM past president Anil Agarwal said India is one of the fastest growing economies and well-integrated with world markets. He called for foreign direct investments in developing warehousing infrastructure across the country and bank lending to be treated at par with priority sector lending.

Others present were Mr S.C. Aggarwal, chairman of ASSOCHAM capital markets committee, Mr Praveen Singhal, deputy managing director of MCX, Mr B.K. Sabharwal, chairman of the Federation of Indian Stock Exchanges, and ASSOCHAM secretary general D.S. Rawat.

Hotel and Tourism related industry has been declared as high priority industry and Foreign Direct Investment upto 100%, under the automatic route is permitted in ‘Hotels & Tourism Sector’, subject to applicable laws/regulations, security and other conditionalties.

To encourage the growth of hotels, on the request of Ministry of Tourism, a five Year Tax Holiday was announced in the Budget of 2008-09 for two, three & four star hotels that are established in specified districts which have UNESCO declared ‘World Heritage Sites’ except the revenue districts of Mumbai and Delhi. The hotel should be constructed and start functioning during the period April 1, 2008 to March 31, 2013.

The Government has also announced the extension of Investment Linked Tax incentive under Section 35 AD of the Income Tax Act to new hotels of 2-Star Category and above anywhere in India.

The Reserve Bank of India (RBI) has also issued revised Guidelines on Classification of exposures as Commercial Real Estate (CRE) Exposures. Thus, RBI has classified exposures to hotels outside the CRE Exposure.

In CIL, out of the 271 underground mines, 227 mines are at various stage of modernization and adoption of modern technology. Remaining mines which are not yet mechanized are in the process of mechanization.

Singareni Collieries Company Ltd. (SCCL) is also operating 36 underground mines. Out of these, semi mechanization (SDL and LHD) and mechanization (Long Wall/Blasting gallery/Continuous Miner/Short wall) has been introduced in 34 mines. In the remaining 2 mines Semi-mechanization / mechanization could not be introduced, because of difficult geological conditions, viz., steepness (gradient 1 in 3).

-         Check Posts have been established at the vulnerable points.

-         Wall fencing, lighting arrangements and deployment of armed guards round-the-clock has been done around the coal dumping yards.

-         Regular patrolling is conducted in and around the mine including Over Burden dumps.

-         Armed Guards have been deployed at Railway sidings.

-         Interaction and liaison with District Officials at regular intervals and holding meetings with District Collector & District Administration every month.

-         Challans for coal transportation by trucks outside the district are being issued after fixing hologram and putting signatures of authorized officials of Central Industrial Security Force (CISF) to check theft.

-         Regular FIRs are lodged by the Management of the collieries and CISF with local police stations against the theft of coal. A close watch on the activities of criminals is being maintained by CISF.

-         Management has been taking action for filling/dozing/scaling/blasting of the old/abandoned exposed coalfaces in passed manner.

With about 18 per cent growth during the first three quarters of 2011-12, aircraft exports including component parts stood at about 1.31 billion dollars against 1.11 billion dollars in the corresponding period of previous fiscal, according to The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Parts and components have contributed a whopping 96 per cent of the total aerospace exports, highlighting India’s manufacturing capability in aerospace sector oriented towards tier I, II and III suppliers as against aircraft Original Equipment Manufacturers (OEMs).

In the interest of top level private defence equipment manufacturers and exporters, ASSOCHAM has sought an exemption from input tax and levies for their contractors and sub-contractors by issue of customs and excise duty exemption certificates on the lines of Defence Public Sector Undertakings (DPSUs).

“Issuance of customs and excise duty exemption certificates to DPSUs to claim exemption from input tax and levies is making the exports by private sector exporters uncompetitive by about eight per cent,” said ASSOCHAM.

Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) chapter 5 and 6 must be populated, while, India Harmonised Code System (ITC-HS) description of Defence and Aerospace is inadequate, said ASSOCHAM.

There is also a need to link SCOMET codes to the items listed in the Defence Procurement Procedure (DPP) export of which is considered to be offsetable. List of countries to which A&D trade is not encouraged be made available to industry on request.

Besides, there is a lack of proper definition for a defence product which is imperative for Aerospace and Defence (A&D) sector to be able to access policy support and incentives for exports. In the absence of list for identification of defence products, the government support remains adhoc, lengthy and unnecessarily litigative.

A long and delayed clearance process of about three months for genuince exports of defence products to qualified countries from India is a pain for majority of A&D exporters.

Sops like incentives and benefits on taxation dues and levies to A&D sector has been limited and skewed against private players. Besides, the government outlook on structural and taxation benefits to dedicated aerospace and defence manufacturing hubs also remains non-commital, said the chamber.

According to ASSOCHAM, the current rate of indirect taxes on Maintenance, Repair and Operations (MRO) activities are quite high making them uncompetitive as customs duty is exempt on parts imported for MRO of aircraft subject to specified conditions which if not satisfied would impose customs duty in the range of 19 per cent to 27 per cent on the imported parts.

First time exports must be provided with incremental offset multipliers and impact of duties and indirect taxes must be reduced for the export oriented production by the private sector.

ASSOCHAM has also suggested the government to introduce defence as priority sector for export promotion councils like Engineering Export Promotion Council (EEPC India). A Defence Export Award must also be set up to acknowledge significant exports and must be categorised in the National Export Awards.

Indian Coal sector during post nationalization period has seen tremendous growth in production and productivity. Coal India Limited (CIL), a state owned coal company and the single largest coal producer in the world, has focused on excellence in technological advancements. This includes use of underground and opencast mining equipment, eco-friendly mining concept, introduction of satellite surveillance, e-marketing of coal and awareness on quality front. It has adopted best mining practices that take into consideration environmental-forestry-societal well being.

Innovation to optimize the available coal resources has been the key strategy of the Ministry of Coal. The thrust areas for development of coal sector include opening up new mega underground and open cost projects in potential coalfields. Not only large scale deployment of clean fuel technologies, but also use of modern techniques like GPS, remote sensing, satellite surveillance etc.are being adopted for effective resource management. Cost reduction measures through deployment of modern techniques are also being implemented to remain cost-competitive against international volatility in coal prices.

Pursuant to nationalization of coal sector in 1972-73 and subsequent formation of Coal India Limited in November, 1975, Indian coal sector has witnessed a growth in production from a level of 70 million tonnes (1973-74) to a level of 533.07 million tonnes in 2010-11, with Coal India’s contribution of about 431.32 million tonnes, representing a share of 81%. The underground & opencast production shared a ratio of 75:25 in 1974-75. Over a period of almost 37 years, the trend in coal production has undergone a drastic change with opencast mines contributing to 90% of the total coal production while a meagre 10% is extracted from underground mines. Overall labour productivity, referred to as “Output per Manshift” (OMS) in mining parlance, has reached a level of 4.73 T (2010-11) from 0.58 T reported in 1974-75. The underground productivity has mostly remained stagnant over last 5 years, hovering in the range of 0.70 – 0.77 from a level of around 0.55 – 0.60 T in the early 80’s. The productivity of the opencast mines at the early stage of technological development in 80’s was of the order of 0.76 – 1.20 T which has subsequently attained a level of 10.06 T in 2010-11, largely because of higher degree of technical advancement and deployment of HEMM of higher configuration. It is, therefore, imperative that sluggish growth in underground productivity calls for some measure of technological advancement with our ability to innovate the same to suit to our specific geo-mining conditions.

The opencast mines in India usually deploy shovel-Dumper combination of various configurations. Measures like upgradation and standardization of HEMM namely, upgradation of dumpers of various sizes ranging from 35T to the standard 60 T, 100 T, 190 T and 240 T and standardization of Electric Rope shovels to 5 m3, 10 m3 and 42 m3 have been our decision in the recent past. Apart from the above, higher capacity Crawler Dozers of 850 HP have been inducted in Mega opencast mines of CIL. Gradual introduction of such higher capacity HEMM, which are technically advanced, introduction of Maintenance practices have resulted in overall improvement in productivity, which in turn have vastly improved profitability of mines of CIL.

Smaller mines have been amalgamated to form bigger capacity projects to enhance the life of the mine with enhanced production and productivity. Productivity improvement does not mean taking care of the various measures, as suggested above only. It also needs to be ensured that the equipment introduced and the skilled manpower deployed is able to perform uninterruptedly. Recent experience of introduction of large size equipment in some of the mega size open-cast mines has shown that non-availability of sufficient land and or obstruction in their operation results in effective utilization, thereby reducing their productivity. It is, therefore, necessary to create a situation, which is socially acceptable for application of any technology.

Future outlook

An ILO analysis of labour markets shows that skills development is central to improving productivity. Effective skills development systems – which connect education to technical training. HRD wing of Coal Indian is entrusted with the great responsibility of upgradation of technical and managerial skill of employees, both executives and non-executives.

CIL has organized HRD infrastructure comprising Technical Training Institutes, Management Training Institutes and Vocal Training Centres at subsidiary level and Indian Institute of Coal Management for organising In-company training. Employees are frequently nominated to attend training organized by other renowned Professional institutes within India and abroad. Annual training plan for each subsidiary is formulated and training target is set under MOU with the Government every year. Importance is being attached to Formal Training on Project Management and Training of Medical professionals on Occupational Health. New areas like new technology and IT, Contract Management and Awareness on sustainable Development etc. have touched upon to groom the necessary training for upgradaiton of skill. Unskilled and semiskilled workers and contractor’s labourers are attending training at Vocational Training Centre at subsidiary companies. Safety training is another important aspect which is statutory for an industry like mining and is given due weight-age.

It is felt that women empowerment is critical for productivity enhancement and their participation should be encouraged in the development process. The strength of female employees in CIL is around 28000 out of total manpower of 375851 (as on 1.11.2011). There are instances in various mines of Coal India where female employees have been trained to work as Switch Board attendants, Shovel and drill operators, telephone operators etc. and are leading role models with their performance.

Conclusion

Role of enhancing productivity is vital for the Indian coal sector. Advanced technology, sophisticated training programs and skill development programs are now considered to be the best possible measures to improve production, productivity and in turn the profitability. The productivity improvement in the coal sector depends not only on the resources, but on many other factors such as improving policy guidelines, development of environmentally acceptable technologies, and exploitation of the available energy resources with adequate attention towards commercial viability, which are now focus points of the agenda.

 Addressing a Special Plenary Session on Andhra Pradesh at the The Partnership Summit 2012, an international business event organised by the Confederation of Indian Industry, in association with the Department of Industrial Policy & Promotion, Government of India, and Government of Andhra Pradesh, with the theme of “New Age Innovation Partnerships”, the Chief Minister said that Andhra Pradesh has the highest conversion rate in terms of approving and implementing projects. It is the first State in India to have a single window clearance mechanism enabled by an Act to provide clearances in a timely manner.

 He announced that in the next three months, Andhra Pradesh will roll out a Government to business (G2B) portal to enable businesses apply for various government clearances that are required throughout the life cycle of its operations, completely online. This one-stop shop portal for businesses would be the first of its kind in India, and would become a role model in eGovernance. He said that the government would give special packages with tax incentives, and concessions in land cost, stamp duty, etc., to industries that are promoted with an investment of US$ 50 million and above, and those that provide employment to over 2000 people.

 The Chief Minister pointed out that 54% of the State’s population is under the age of 25. The government aims to create 5 lakh job opportunities in the public, and private sector, every year for the next three years. It is keen to promote skill development programs in association with the industry. “Tell us what type of skills you want, we will impart training to the students on them, and offer you industry-ready employees,” he said. Andhra Pradesh produces about 2,80,000 engineers from over 700 engineering colleges and 26 universities.

 He appealed to the industry to recruit as many people as possible from the local communities, who have given their land for the promotion of industry, and said that soon the State Government would come up with a policy in this regard. He noted that on its part, the government will be issuing offer letters for government jobs to 1,16,000 people, who are selected in a transparent manner based on their merits, before end of the current year.

 Mr Reddy said that the government can assure that the power cost for the industry in Andhra Pradesh would be the lowest in the country. The State would soon have the largest installation base in the country. Currently, it has the installed capacity of over 15,750 MW, and projects to add about 17,000 MW are being envisaged or in the pipeline.

 The Chief Minister said that the government is keen to promote not only the industrial sector, but also farmers, MSMEs and Self Help Groups. The Government of Andhra Pradesh is all set to arrange loans to the tune of Rs 10,000 crore at 3% interest that would benefit close to 50 lakh Self Help Groups in the State. For the first time in the country, the State has offered interest free crop loans of about 31,000 crore to 95 lakh farmers, he added.

 Technology must benefit citizens. Andhra Pradesh has successfully completed a pilot an eGovernance project at Chittoor district. The project would be implemented in all the districts in the State by April, 2012. The citizens do not have to go to government offices but to nearby e-government centres to get over 50 different types of government services like issuance of birth, and death certificates within about 15 minutes. This online initiative can help the citizens avoid paying bribes to the tune of Rs 2,500-3,000 crore.

 In her address, Dr J Geeta Reddy, Minister for Major Industries, Commerce & Exports, Government of Andhra Pradesh said that the State has quality infrastructure, enabling environment, and proven track record to promote industries in the areas of agro & food processing, automobiles, pharmaceuticals, textiles, IT and ITeS, power, tourism, mineral, and petrochemical & chemical industries.

 She pointed out that with US$ 118 billion, Andhra Pradesh is one among the top three economies in India. It has got the second largest mineral resource, and coast line. About 85 of the top 500 global companies have their presence in this State. Andhra Pradesh has the highest number of 74 notified SEZs in India. The total projected investment of US$ 15,393 million is approved. About 32 notified SEZs are operational providing employment to around 1,25,000 people, and exporting products and services worth US$ 2.71 billion. Over 85% of the country’s natural gas reserves are in the Krishna-Godavari basin in Andhra Pradesh.

In its pre-budget memorandum submitted to the Finance Minister, Mr Pranab Mukherjee the chamber has also suggested the government to consider extending service tax net to other items for increased revenue generation.

“The government can consider selective increase in customs duty on import of items other than input materials and capital goods, besides, stake sale in PSUs  is another feasible option to generate additional revenue and reduce soaring fiscal deficit,” said ASSOCHAM.

“Central sales tax (CST) rate must be cut from 2 per cent to 1 per cent to accelerate implementation of the Goods and Services Tax (GST) which is likely to push the country’s economic growth by 1.4 per cent to 1.6 per cent and might add Rs.1.50-lakh crore annually to the government’s kitty,” the chamber said while stressing upon the need for tax reforms.

ASSOCHAM has also urged the government to restore the CENVAT (Central Value Added Tax) credit of input taxes paid on setting up new manufacturing units, service establishments, on materials and services used in civil construction for installing machinery.

“Restoration of CENVAT credit is imperative to encourage fresh investments as it is also a fundamental principle of GST,” said ASSOCHAM.
The chamber has also emphasised that apart from services mentioned in the negative list and which are currently taxed by the state governments under constitution like entertainment, rent and others, all other services must be taxed comprehensively to add to the government’s revenues.

The ASSOCHAM has also recommended the government to provide tax sops to sectors with a high employment generation potential like – civil construction, IT, ports, roads, telecom and textiles.

Natural gas must be listed in the list of ‘Goods of Special Importance’ under Section 14 of the Central Sales Tax Act so that it is uniformly taxed at a lower rate across all states on the lines of commodities like crude oil, coal and steel. More so, as natural gas is a significant input in industries like fertilizer, power and gets transported throughout the country, said the apex chamber.

Apart from this the government should also do away with indirect taxes on inputs and services used in setting up infrastructure projects during investment phase to attract investment.

Surcharge and education cess should be removed as it will generate more surpluses in the hands of companies with consequential impact on investments and growth in view of the global recession.

In case there is a delay in the enactment of the Direct Taxes Code which is to be introduced from April 1, ASSOCHAM has urged the government to maintain the Personal Tax rates as per the proposed DTC.

Exemption limit of reimbursement of medical expenses for employee and his/her family should be enhanced to Rs 50,000 per annum from the present ceiling of Rs 15,000 per annum in view of the rising cost of healthcare in India.

Exemption limits in respect of house rent allowance, transport allowance, kids’ education allowance and rent free accomodation should be enhanced considerably as expenses incurred in respect of above have increased significantly due to rising cost of living in light of the high rate of inflation.

The chamber has advocated introducing a weighted deduction of 150 per cent of the expenditure incurred on Corporate Social Responsibility (CSR) activities specifically covering critical areas like education, health, animal husbandry, water management, waste management, women empowerment, poverty eradication, rural development and even companies with a dedicated CSR trust or foundation.

Exemption limit for payment of leave encashment as notified by the Central Board of Direct Taxes (CBDT) in accordance with powers given under section 10 (10AA) of Rs three lakhs (since 1988) should be raised to Rs 10 lakhs with immediate effect.

Discrimination between domestic companies having Indian subsidiaries and those with overseas subsidiaries be removed as it is leading to uncertainty and risk of double taxation on income from overseas investment in the absence of a well defined foreign tax credit system.

A simplified scheme for obtaining PAN in case of expatriate Indians should be introduced.

The overall limit of Rs one lakh under The Finance Act, 2006 must be increased to at least Rs 2.5 lakhs to accommodate for the expanded list, this would also act as a fillip to boost investments especially, as standard deduction has been removed.

The chamber has also stressed upon levying safeguard and anti-dumping duty to protect Indian industry from dumping of goods by other countries due to low demand in European Union and the United States, especially in case of imports from China.

Private sector must be encouraged to build storage infrastructure for agri-produce and imported commodities including petro products by providing fiscal incentive as this will help moderate inflation and spur economic growth. Besides, interest rates should also be moderated since the inflation has started abating.

The study analysed four major imported commodities crude oil, thermal coal, fertilizers and vegetable oil. It was observed that the importers had to pay an additional Rs. 489.8 per barrel to import the same quantity of crude oil though the dollar price of crude had significantly declined.

While in the case of thermal coal, the importer has to pay an additional Rs. 684.6 per metric tonne to import the same quantity of coal, for fertilizer Rs. 3658.3 per mt. and for vegetable oil imports Rs. 6,941.6 mt.

The benefits of the decline in crude and thermal coal prices could not be passed on to the consumers and contrary to that power and fuel became much costlier due to rupee depreciation. These factors, said the Chamber President, Mr. Dilip Modi, have significantly contributed to fueling the inflation both for the industry and consumers.

The chamber found that the import bill of crude oil increased by Rs. 5676.7 crore when exchange rate was varying during the respective month (April – December), the import bill of crude oil decreased by Rs. 4405.9 crore when exchange rate was fixed during the respective month. Import value in terms of international currency has declined in December as compared to April 2011. However, in terms of domestic currency import costs of Crude oil have increased.

A sharp decline in the value of the rupee is bound to affect the power generation capability of power plants that are heavily dependent upon imported coal for electricity generation. Moreover, a fall witnessed in power generation capacity is likely to have an adverse affect on all the three sectors of the economy namely agriculture, industry and services. Another dimension to the rupee depreciation episode is that not only has the expenditure on imports increased but this coupled with an inflexible tariff structure means that the power companies are going to suffer huge losses.

Import bill for coal, coke & briquettes with the respective exchange rates for the months of April and December 2011 the increase in import bill for coal, coke & briquettes comes out to be Rs. 4443.4 crore.

Using April 2011’s exchange rate to calculate the import bill for April 2011 and December 2011, the increase in import bill for coal, coke & briquettes would have been Rs. 2928.3 crore.

Due to rupee depreciation the import bills in the above situation differ by Rs. 1515.1 crore.

The combined effect of a depreciation rupee and an increase in dollar prices of DAP fertilizer has meant that the importer has to pay an additional Rs. 3658.3 per mt to import the same quantity of coal.

The effect of rupee depreciation becomes more evident when we see that had the rupee stayed at May 2011’s level then the additional amount the importer would have to pay would have been Rs. 9445 per mt. Therefore due to rupee depreciation the importers’ burden has increased by Rs. 2713.3e per mt.

With the respective exchange rates for the months of April and December 2011, the increase in import bill for fertilizer manufactured comes out to be Rs. 13922.1 crore said the chamber chief.

Using April 2011’s exchange rate to calculate the imprt bill for April and December 2011, the increase in import bill for fertilizer manufactured would have been Rs. 11568.4 crore. Due to rupee depreciation the import bills in the above two situations differ by Rs. 2353.7 crore.

The global prices of vegetable oil in November 2011 were lower than that in April 2011. Vegetable oil global prices have declined by $ 157.6 per metric tonne. However, due to rupee depreciation the import cost in domestic currency has increased by Rs. 6941.6 per metric tonne.

A similar a 125 million dollar line of credit (soft loan) was signed in 2008. “We are looking for Indian investments in mining, traditional and renewable power generation, transport, agriculture, fisheries and food processing,” he said while addressing a joint business meeting organised by industry bodies ASSOCHAM, CII and FICCI.

Mr Toure, who is in the national capital on a three-day state visit along with a 53-member delegation, said Mali will give concessions to Indian companies interested in the mining sector. The country is rich in iron ore, cement, limestone, bauxite and manganese. It is the continent’s third largest producer of gold after South Africa and Ghana, and second largest producer of long staple cotton after Egypt.

He called for ramping up bilateral ties across other sectors as well to take the 77 million dollar two-way trade with India to the next level. Indian exports to Mali include electricity transmission, cotton fabrics, cycle parts, machinery and machine parts, transport equipment, drugs and pharmaceuticals, and processed food items. The imports from Mali are limited to raw cotton and few agro products like shea nuts.

India has provided several lines of credit to a swathe of infrastructure projects to Mali. These include 15 million dollars for rural electrification, 12 million dollars for agro-machinery and tractor assembly plant, 11 million dollars in three tranches for electricity transmission and distribution projects from Cote D’Ivoire to Mali, 20.62 million dollars for acquiring railway coaches and locomotives from India and 15 million dollars for development of agro-industries.

Mali is a member of the West African Economic and Monetary Union which provides link with 330 million potential customers. That gives scope for Indian small and medium businesses to collaborate with companies in Mali.

Among those present during the meeting were ASSOCHAM’s senior member V.B. Soni who has been Indian ambassador to Mali, member of CII’s Africa committee S. Kuppuswamy and FICCI’s senior member Amitabh Agrawal.

Sourcing at least 30 per cent of the products from micro and small enterprises will benefit a large number of businesses. “We hope political consensus will soon be evolved to allow 100 per cent FDI in multi brand retailing as well,” said secretary general D.S. Rawat.

“That will be a big step as it will create lakhs of new jobs, curb agricultural wastages, benefit farmers with better remuneration for their produce and bring down prices of many commodities.” FDI in many sectors like information and communication technology have resulted in enormous spin-off benefits including introduction of efficiencies and modern management practices, he said.

This will facilitate emergence of airports as hubs and lower tariffs for passengers. The Indian aviation industry is being adversely affected as tax rates on ATF vary substantially from state to state.

“ATF comprises nearly one-third of an airline’s operating cost and hence may be brought under the ambit of Goods and Services Tax (GST),” said Mr D.S. Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM), in proposals for the Union Budget 2012-13.

He also called for clarity on applicability of GST for imports meant for warehousing to be sold at duty free shops in airports. Emergence of low cost carriers has led to a boom in air travel and the number of passengers at Indian airports is expected to grow to 450 million by 2020.

Thus huge investments are required to develop, modernise and expand the airport infrastructure. Tax holidays for initial years, concession tariff for certain services like electricity use and moderate rates of customs duty, excise duty, value added tax and sales tax will attract investments.

There should be exemption from customs duties on all security systems like X-ray baggage inspection systems, explosive detectors, robots scanning bombs or suspected baggage, parameter security intrusion systems, hydraulic bollards, boom barriers and cameras for closed circuit televisions.

Under the Foreign Trade Policy, airport operators are eligible for Served From India Scheme (SFIS) scrips and development projects are eligible under Project Import benefits. The customs Electronic Data Interchange system may be amended to allow use of SFIS scrips for payment of duties.

To promote tourism, Mr Rawat called for encouraging purchase from Indian duty free shops by increasing duty free allowances for incoming international passengers from Rs 25,000 to Rs 50,000.

He said there should be exemption or deferment of minimum alternate tax (MAT) applicability by at least five years of commercial operations of infrastructure projects of national interest like airports. Or else, the MAT rate should be halved to 10 per cent of book profits.

“The driving forces are multitude, ranging from ease of doing business, availability of abundant English speaking workforce at lower wages, better infrastructure to government incentives. It is imperative for Governments at the Centre and States to quickly initiate remedial measures on war footing to stem the loss as the capital flight will not only severly affect the growth and employment but threaten India’s leadership in the knowledge industry,” said Mr D.S. Rawat, national secretary general of ASSOCHAM.

According to the ASSOCHAM Eco Pulse (AEP) Study titled “Sustaining India’s IT/ITeS Leadership”, the prevailing macroeconomic and sectoral conditions have been resulting in a shifting of ITeS/BPO industry away from India to Philippines-especially from Hyderabad and Bangalore. Such a trend is yet not being noticed in the National Capital Region and Pune.

The chamber study said, it is an undisputed fact that in India has evolved as a major GDP contributor and plays a vital role in employment generation and export promotion. The sector helped the nation to create Brand Equity. As a proportion of national GDP, the IT/ITeS sector revenues have grown from 1.2 per cent in 1997-1998 to an estimated 6.4 per cent in 2010-2011. Its share of total Indian exports (merchandise plus services) has increased from less than 4 per cent in 1997-1998 to 26 per cent in 2010-2011.

India is presently a premier destination for the global off-shoring market of IT/ITeS, accounting for almost 55 percent in 2010 as compared to 49 percent in 2005. The country has emerged a dominant player in global IT services outsourcing with increase in its share to 70 percent in 2010 from 52 percent in 2005. On the other hand, India’s share in BPO sourcing market has declined from 45 percent in 2005 to 34 percent in 2010, albeit it continues to be the leader in this space.

Mr Rawat said that the country’s prominence as an IT/ITeS hub is declining owing to diminishing employable talent pool, high cost of doing business due to inefficiencies of power, transport, security, concentration in metros due to inadequate infrastructure in other towns etc. Currently, over 90 per cent of total revenues of the sector are generated from Tier I locations, which are nearing peak capacities in terms of infrastructure support. Therefore, there exists a pressing need to fast-track the development of alternate delivery locations in Tier II and III cities.

Indian IT/ITeS sector has invested and developed world class facilities, extensive talent development initiatives, disaster recovery and business continuity, high cost of transport, enhanced security, captive power generation, UPS and other equipments which have over all created a cost disadvantage of 10 – 15 percent as compared to other emerging markets. Hence, India is hard pressed to manage its competitiveness in the wake of rising costs and increasing competition.

The IT/ITeS sector is essentially that of less capital intensive and has lot of flexibility in operations, thus, it can be relocated in a very short time. Therefore, there exists a real threat to the country in terms of its swift relocation to other competing locations like Philippines, Vietnam, China, Poland, Hungary, Mexico, Brazil, Egypt, to name a few. Already, many MNCs and Indian companies are setting up centres in these countries.

Presently ITeS/BPO firms are finding the retention of the suitably trained employees a big problem. Apart from this, the deficient infrastructure, law & order issues, and shrinking margins in the light of increasing costs have forced the Indian firms to explore emerging geographies. Among all the available alternatives, Philippines is presently offering most suitable alternative to Indian IT/ITeS firms. These smaller firms typically employs 15 to 18 people, both technical and support staff, each. Thus flight of each small firm would result in a loss of about 12 to 15 jobs. In addition, there is a loss of their contribution to the GDP.

Additional job creation in the Indian IT/ITeS sector was estimated as 2.4 lakhs during the 2010-11 fiscal. This was about ten percent of the present level of employment in the sector. Therefore, the flight of smaller software firms outside the country would affect the growth and employment prospectus enormously.

The 12th Five Year Plan Working Group on Information Technology Sector has indicated a number of measures to promote the industry. ASSOCHAM, however, identified that widening the Software Technology Parks (STP) networks to semi-urban and rural areas and extending the income tax benefit to STP units beyond March 2011 would become the single most effective policy measure to stem the flight of small IT/BPO firms away from India.

STPs provide basic infrastructural support and state of art plug & play facilities to new firms. These facilities allow new and smaller firms to set up operations at minimal investments. However, owing to high costs of metros, deficient physical infrastructure likes power, transport and security many units registered with STPs have been de-bonded. Moreover, the income tax benefit on exports by STP units was withdrawn with effective from April 2011. At the same time the alternative policy of IT-ITES SEZs announced by the government of India has not been fully operational.

In view of the above, there is a strong need to widen the STPs network further to semi-urban and rural areas. This would address most of the immediate concerns of the Indian IT/ITeS sector and ensures the proliferation and growth of the industry further. The government, in view of the criticality of the issue, needs to act immediately.

He was speaking as the Chief Guest at the Seminar on Solar Energy:

Investment and R & D. The seminar is being held as part of the 10thPravasi Bharatiya Divas (PBD) 2012 organized jointly by Ministry of Overseas Indian Affairs (Government of India), Government of Rajasthan and Confederation of Indian Industry (CII) at Jaipur.

He expressed the need for increased efficiency and better technology in the sector for harnessing its true potential. He appealed to the overseas Indian diaspora to look at investments in generating capacities and R & D.

He added that the sector has potential for profits.

Praising the efforts of Government of Rajasthan on renewable energy, Dr Abdullah said that Rajasthan has huge potential for solar energy. Solar energy is already playing a vital role in Ladakh in street lighting, illustrating the solar energy potential of the deserts, he added.

Addressing the session,* Mr Vayalar Ravi*, Union Minister for Overseas Indian Affairs said that “Energy is the real force behind any development”

He highlighted the advantages of solar energy especially in satisfying the basic requirements of rural India, generating employment opportunities and preventing migration to the cities.

While delivering the keynote address, *Mr Ashok Gehlot*, Hon’ble CM, Rajasthan, outlined the advantages that Rajasthan enjoys vis-à-vis solar energy generation – land availability, availability of solar radiation at 6 – 7 kWH/m2 and availability of raw materials used in solar energy sector – Zinc, molten salt and solar glass.

Outlining Rajasthan Government’s initiatives to promote solar energy generation he highlighted the salient features of Rajasthan’s Solar Energy Policy. He informed that 722 companies have so far registered for setting up solar power projects, with a cumulative capacity of 16,900 MW. Including the projects already registered and the additional projects proposed, the sector is expected to attract investments to the tune of Rs 16,000 crores.

Four solar parks are being set up in the State– Bikaner, Jodhpur, Jaisalmer and Barmer, he added.

*Mr Pervez Diwan*, Secretary, Ministry of Overseas Indian Affairs, Govt of India reiterated the environment benefits of solar energy and the solar potential of Rajasthan.

Mr Tarun Kapoor*, Joint Secretary, Ministry of New & Renewable Energy, gave a brief outline of the Jawaharlal Nehru National Solar Mission, which envisages 20 billion households to have solar lights by 2022.

Earlier in his opening remarks* Mr Deepak Puri*, Co-Chairman, CII National Committee on Renewable Energy & Chairman, Moser Baer Ltd pointed out that India receives 70% more solar radiation than Germany, the world leader in solar power. However solar power currently accounts for only 0.5% of total power generated in the country. Pointing out that 60% of rural households in India do not have access to electricity he urged for innovative models such as Pay per use and community charging to make solar energy popular and available to all.

The seminar also included sessions on Investment Opportunities & State policy and R & D and Manufacturing Technology development.

He complimented the entrepreneurial capabilities of the Indian diaspora. Citing the example of China, wherein Chinese diaspora has been a significant contributor to FDI in China, he urged the Indian diaspora for greater participation. He acknowledged that alternate models need to be evolved for attracting investments, which are socially and economically balanced and interesting enough for the diaspora to participate.

He added that, while 2011 has been a difficult year for the entire world, it marks two decades of liberalization that has catapulted India to being one of the fastest growing nations in the world. As a consequence, what started as a brain drain in early years has now become brain gain not only for India but the world, with many NRIs returning to their homeland bringing back with them valuable knowledge and international exposure.

The Finance Minister also proposed creation of a Rs 500 Crore Women’s Self Help Fund for empowering women and facilitating their inclusion in the economic growth

Moderating the session, Mr Vayalar Ravi, Minister for Overseas Indian Affairs, Government of India expressed the need to share the benefits of India’s economic growth achieved in the two decades of reforms with its most important stake holders: the rural population. Only then can the target of Inclusive Growth be achieved, he added.

Dr C P Joshi, Minister for Road Transport & Highways, Government of India, highlighted the opportunities available for overseas Indians to invest in the roads and highways sector and its potential benefits to the rural community in

Expressing his appreciation for the contributions made by the Indian community living abroad, he highlighted some of the Government initiatives for the diaspora. On their long pending demand for participation in the country’s election process, Dr Singh informed that the Government has issued notifications for registering NRIs under the Representation of People Act, 1950. This is a first major step to enable Indian residents abroad to participate in the election process, he added.

He further highlighted the introduction of a Bill to merge People of Indian Origin and Overseas Citizen of India schemes by amending the Citizenship Act. He elaborated that this would rectify the anomalies in the schemes and also provide for Overseas Indian Cards to foreign spouses as well.

Sharing the measures taken to ensure the safety and well being of Indian workers abroad, Dr Singh said that the Government has decided to introduce and sponsor a new Pension and Life Insurance Fund which will provide social security benefits and a low-cost life insurance cover against natural death. He elaborated on the expansion of the Labour Mobility Partnership Agreements to cover students, academic and professionals as well. Such agreements are also being negotiated with Netherlands, France, Australia and the EU as well, he added.

Dr Singh complimented the Government of Rajasthan on its proposal to build a Pravasi Bhartiya Bhawan at Jaipur, which will also house the offices of Protector of Emigrants and Migrant Resource Center.

Prime Minister also launched the website of India Development Foundation of Overseas Indians(IDFOI), a trust under the aegis of MOIA providing a credible window for Overseas Indian Philanthropy for India’s social development. He also released a OIFC– MOIA publication “Returning Indians – All you need to know”.

Delivering her address, H E Ms Kamla Persad Bissessar, Prime Minister, Trinidad & Tobago & Chief Guest at the 10^th Pravasi Bharatiya Divas (PBD) 2012 complimented India for its leadership in diaspora engagement, a model which could be emulated by many other countries with large diaspora. She said that PBD represented a spirit of unity and cooperation and provided a pragmatic and effective platform for Diaspora engagement.

Elaborating on the important role of the diaspora, she said that the contribution is not just limited to investments and socio economic development. The diaspora helps create positive images of the country of origin which in turn strengthens the image of the country on the international scene.

Describing the relations between the two countries as excellent and historic, she invited Indian entrepreneurs to invest in Trinidad & Tobago particularly in manufacturing and services sectors where Trinidad & Tobago offers many incentives. She also mooted the idea of organizing a Mini PBD in the Carribean nation

Addressing the gathering Mr Ashok Gehlot, Chief Minister, Government of Rajasthan said that the diaspora from Rajasthan is recognized for its entrepreneurship and hard work and has done the country proud. He emphasized on the need for ensuring that the younger generation of the diaspora remains ‘connected’ with India. He announced “Apne Rajasthan ko Janiye” scheme, under which every year 50 youth from the diaspora would be invited by the State Government to visit and experience Rajasthan.

Mr Vayalar Ravi, Minister for Overseas Indian Affairs (MOIA), Government of India elaborated on the key initiatives of his ministry for the welfare of the overseas Indian workers. The Indian Community Welfare Fund (ICWF) providing onsite welfare services to overseas Indians in distress, including food, shelter and legal assistance; bilateral social security agreements with over dozen countries; an Indian Workers Resource Centrer at Abu Dhabi operating shelter and helpline for workers in distress. He added that similar centers would soon set up in other Gulf countries and Malaysia.

Highlighting the success of PBD, he said that the event has evolved over the last 10 years, gaining stature to become a internationally recognised platform for the Diaspora to engage with India and it leadership. He added that this edition of the PBD has attracted more than 1,900 delegates from 60 countries.

Delivering the Vote of Thanks, Mr B Muthuraman, President, Confederation of Indian Industry (CII) said that CII has played an important role in strengthening India’s engagement with its Diaspora. He added that CII is the operating agency for the Overseas Indian Facilitation Center, an MOIA intiative.

Also present at the Inaugural Session were H E Mr Shivraj V Patil, Governor, Rajasthan and Mr Parvez Dewan, Secretary, Ministry of Overseas Indian Affairs, Government of India.

From crowd management, efficient traffic control, ticket distribution, space allocation to cleanliness and every other nitty-gritty that is important for smooth functioning of the event, the organizers are leveraging full synergies and thoughtful planning to ensure that this gala event turns into an affair to remember.

In fact, in a bid to a ensure smooth sailing experience for the visitors, the organizers have put a cap of one lakh visitors a day. Auto Expo 2012 would be spread over 1.15 lakh square meters of space in 16 permanent halls and 10 hangars besides 9 state pavilions. Along with provisions to ensure smooth and easy traffic flow, special gates, away from the main road at the venue have been allotted for ticket distribution. Further, to avoid rush at the counters, the tickets for the expo have been made available for purchase through online bookings.

Auto Expo 2012 would witness launch of about 50 vehicles besides a display of world class vehicles and designs. India-specific products are also to be unveiled simultaneously for the first time. Component manufacturers will be announcing major innovations in their respective fields, especially their efforts in the area of green technology. Auto Expo has been used as a platform to showcase the latest vehicles and display the new technologies available for the sector from world over.  In the recent editions, global manufacturers have used Auto Expo as an important platform for launching their global and Indian products.

The event has been a networking platform for vendor development, sourcing groups and traders from all over the world.  The current event has already got a registration of over 500 delegates from 16 countries.

To ensure smooth organisation of Auto Expo 2012, the organisers have offered a number of facilities like Dedicated Ticket Counters at the venue (Bhairon Road Gate 1 & 2) , Park & Ride Facilities from key locations in the city, Ticket sales through select Metro Stations , Information & Visitors guidance signages and LED Screens within the venue , Exclusive Media and Protocol facilities, Exclusive Food Courts, Shuttle Services inside pragati maidan for convenience of participants and a Specially organised visit for physically challenged children.

Foreign investors will now be able to invest directly in Indian capital markets for the first time. “However, authorities must ensure that funds flow from KYC-compliant countries,” said ASSOCHAM secretary general D.S. Rawat.

“It is a positive signal to high net worth individuals who have been routing their investments through mutual funds or FIIs by way of participatory notes. It should reverse the perception of policy paralysis in governance for the time being,” he said.

FDI in pension funds will further increase the volume of assets that can be invested into infrastructure. India requires one trillion dollars (about Rs 52 lakh crore) for infrastructure investments during the 12th Five Year Plan (2012-17).

The global funded pensions market (both occupational and work related) is estimated at 24.6 trillion dollars of which 16.2 trillion dollars are held by pension funds. Permitting FDI in pension funds will give access to global pension fund companies to the vast untapped Indian market, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in its recent study titled ‘Case for Allowing FDI in Pension Funds.’

A 2.1 per cent allocation of total pension fund assets to India will increase its reserves to 342 billion dollars – about the same in Brazil in 2010. “Going by the world trends, equity allocation of these could be as high as 160 billion dollars. A CAGR of 16.5 per cent as witnessed in Brazil will result in total pension assets of 734 billion dollars of which equity will be 345 billion dollars,” said secretary general D.S. Rawat quoting the study.

Even if one-third of it goes into infrastructure development, it will mean an investment of over 100 billion dollars – or one-tenth of total requirement in the 12th Plan period. At present, pension and insurance funds have a limited presence in the Indian markets due to regulatory restrictions.

In 2011-12, only 4.7 per cent of funding requirement – or Rs 13,289 crore – is likely to have come from pension and insurance funds compared to 10.5 per cent or Rs 29,851 crore from external commercial borrowings. The estimated debt requirement is to the tune of Rs 2.84 lakh crore in current fiscal and Rs 9.88 lakh crore in the 11th Five Year Plan.

High levels of investments cannot be financed by traditional sources of public finance. Amid falling corporate sector performance, even the private sector has monetary constraints to fund huge infrastructure projects. Also, global risks like the current Eurozone crisis need to be countered.

The allocation of pension assets typically is 47 per cent in equity, 33 per cent in bonds, one per cent cash and the remaining in other areas. In India, 22.9 per cent could be in equity, 16.1 per cent in bonds and the rest in others.

If pension funds are diverted to infrastructure projects, they bring long-term income streams, stability, predictable cash flows, low default rates, project diversifications and societal benefits. “It is imperative that financial sector reforms continue to offer products and services for meeting financing and risk management needs of infrastructure projects,” said the ASSOCHAM study.

A vast majority of India’s population is not covered by any formal old-age income scheme and is dependent on their earnings or transfer from family members. The unorganised sector has no access to formal channels of old-age economic support. Only 12 per cent of the working population in India is covered by some form of retirement benefit.

The implications of demographic dynamics for pension planning become more evident when one takes into account the average life expectancy of 77 years which is likely to rise to 80 in the next three decades. The population above 60 years of age by 2030 will approach 200 million.

“Large-scale reforms are thus required to ease the pressure on treasury to provide for a social security net for growing number of senior citizens as well as growing workforce.”

According to a sector specific analysis of The Associated Chambers of Commerce and Industry of India (ASSOCHAM) a sharp depreciation in the value of rupee and new packaging norms from July 1 are going to have a drastic effect on the FMCG industry which is likely to increase cost of regular products like biscuits, coffee, tea, toiletries and personal care items by about 10 per cent and more by first quarter of the next financial year.

“Input cost inflation, persistent rise in raw material price, rising fuel costs, fluctuation in the currency, dipping industrial growth, slowing global economy together with an overall moderating consumer sentiment might lead to a slow volume growth of FMCG segment in 2012,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the chamber’s analysis titled FMCG Sector: An Outlook for 2012.

“All of these factors might pinch the FMCG industry which will go for a fresh round of price hikes as we usher in the New Year,” said Mr Rawat. “The sector might take a hit of about 10 to 15 per cent in sales including the semi-urban and rural market as the burden might be shifted to the price-conscious end consumers or else companies will have to opt for down trading.”

“Based on emerging market scenario and overall macro-economic expectations the Reserve Bank of India (RBI) may go in for a reduction in interest rates to boost the sagging economy, improve demand momentum and investment climate,” said Mr Rawat. “With interest rates peaking off we expect RBI to reduce the cash reserve ratio (CRR) and the repo rate nearly by 25 basis points each in the forthcoming monetary policy review in January, 2012 and FMCG will turn out to be the biggest beneficiary of the same.”

ASSOCHAM interacted with about 100 industry experts, analysts, economists and FMCG companies’, firms’ officials and sought their opinion on what the next year holds for the sector.

Over half of the respondents reckoned that FMCG companies are showing signs of consolidation and might not be able to sustain the strong volume and sales growth momentum in the next two to three quarters.

Majority of those interviewed cited weakening rupee against the dollar and the imported inflation as the primary reason that might hamper the growth of FMCG in the year ahead.

Rest of them said that government notification on revised norms for packaging of FMCG products will propel the companies to increase their prices due to high raw material costs eating into their already stressed profit margins.

Many industry experts said that the consumption pattern will moderate as price sensitive Indian consumers will tighten their budget and keep a close watch on their expenses and might even switch over to cheaper variants, regional or local brands to save money.

While nearly 35 out of 100 respondents agreed that soaring inflation and rising interest rates have been adversely impacting the margins of FMCG companies.

About 30 per cent said that interest rates and inflation will abate gradually and the growth will continue despite certain hiccups.
45 out of the total respondents said that the industry will rebound after the last quarter of the current financial year.

He said Japan can contribute to India’s rapidly growing manufacturing sector which is being driven by a large middle class income people. A total of 421 Japanese companies have established their presence in India and created 1.5 lakh jobs.

“We need to step up cooperation at all levels. In the economic sphere, there are mutual complementarities with India. Japan can contribute a lot by entering into a new era of partnership,” said Mr Noda.

Earlier, minister of commerce and industry Anand Sharma said both countries need to work closely to address current global challenges and have a defining influence in Asia and beyond. The two-way trade can reach a level of 25 billion dollars by 2014, up from 13.82 billion dollars in 2010-11.

Mr Sharma said Japanese companies have a major opportunity in India’s infrastructure and manufacturing. The country plans to invest one trillion dollars in the 12 Five Year Plan (2012-17) to build infrastructure.

The Delhi Mumbai Industrial Corridor and Dedicated Freight Corridor are the most ambitious infrastructure projects conceived so far which will have integrated townships. At the same time, the National Manufacturing Policy aims to boost production in sectors like electronics hardware, information technology, agro food processing and green power technologies.

On the other hand, India has great capabilities in healthcare sector and its pharmaceutical industry can help the Japanese health programmes, said Mr Sharma.

ASSOCHAM president Dilip Modi said the time is ripe to strengthen bilateral cooperation in environment, energy, education, healthcare and high-technology investments. “India’s young workforce and Japan’s technology, our agriculture and your food processing capabilities, our infrastructure andJapan’s edge in green initiatives – there are limitless possibilities of synergising.”

He said the Indian industry is keenly looking forward to implementation of the Comprehensive Economic Partnership Agreement (CEPA) that will help both countries realise full potential in trade and commerce.

Mr Hari Bhartia, Past President CII and Co Chairman & Managing Director of Jubilant Life Sciences Ltd, welcoming Prime Minister Noda said that the technological strength of Japanese industry could be combined with India’s skills in related services sectors including IT, design, R&D and others to mutual advantages to innovate in manufacturing technology and R&D together. CEPA has set a new trajectory of bilateral cooperation and we should intensify our proactive efforts to make it the centerpiece of economic engagement between our two friendly nations, said Mr Bhartia. Indian industry would also like increased cooperation with Japan in power sector including nuclear power to meet the growing demands for clean energy, said Mr Bhartia.

FICCI president Harsh Mariwala said the share of manufacturing in India’s GDP is set to rise from 16 to 25 per cent in the next ten years. This provides a great opportunity for widening economic cooperation, he said.

A report of Joint Forum of Indian and Japanese CEOs who met earlier, was presented to the Prime Minister Noda and Mr Anand Kumar Sharma, minister of Commerce and industry.

“Rising interest rates, steep and steady rise in input costs, unregulated price hike in raw material, sudden depreciation of rupee against major currencies together with labour pangs are certain key reasons behind the alarming drop in passenger car sales which shrunked to just over four per cent between January and November and dramatically rose to nearly seven per cent in November,” said Mr D.S. Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM) while releasing the chamber’s analysis on ‘Indian Auto Industry: The Year Ahead’.

“Besides, global disturbances like a slow pace of economic recovery in the United States, a soverign debt crisis in the Eurozone, sluggish economic growth in Japan and a slowing Chinese economy are other significant reasons due to which automakers in India have been finding it difficult to keep their margins intact,” said Mr Rawat.

“The growth of car sales in the current fiscal is likely to stay about four to five per cent as against nearly 30 per cent in the previous year,” said Mr Rawat.

Despite the rising input costs most of the carmakers reduced the prices and offered a plethora of discounts to spur car sales in 2011 amid rising competition in the auto industry.

“To make up for the losses incurred due to discount offers and inflationary pressures resulting in sharp rise in lending rates for car loans by banks, the Indian automakers are all ready to hike prices of their passenger cars by one to nearly 10 per cent in the first half of the next year,” said Mr Rawat.

ASSOCHAM interacted with nearly 50 experts from the auto industry including the former chiefs of various leading automobile manufacturers, dealers, auto parts’ traders and auto industry analysts across cities like Ahmedabad, Bangalore, Delhi, Mumbai and Pune to ascertain their views on the prospects of the auto sector in the year ahead.

Many respondents opined that the industry is likely to reel under the pressure unless the situation improves globally.

While over half of the respondents said that the profit margin of the industry might shrink further amid negative consumer sentiments due to soaring fuel prices and overall inflation.

Ten out of the total respondents seemed optimistic about the growth of the automobile industry on the back of sound fundamentals of Indian economy and hoped for improved industrial growth in the months to come.

Almost all of those interviewed said that shocking and sudden decline in India’s industrial production, rampant inflation and sharp fall in value of rupee vis-à-vis the US dollar are drastically affecting the margins of the auto industry.

Many industry experts said that manufacturers with diesel variants of their car models will have better prospects in 2012.

“Automakers must revise their marketing strategies, launch diesel variants, promote easy availability of finance options to woo the customers and keep a tab on tier II, III cities and the rural areas as these markets are going to spurt the car sales in the recent future,” said Mr Rawat.

Agricultural credit can be a means of furthering financial inclusion as it would be linked to economic activity, it said. Of 148 million rural households, 89 million are farm households and 46 million of these are outside the financial services net, according to a study done by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) and global consulting firm Ernst & Young.

“However, reforms and clear policies are required to effectively direct credit flow to the agriculture sector. Or else, it will end up burdening banks and the state exchequer,” said the study titled ‘Trillion Dollar Economy – Opportunities and Challenges for Banks.’

A total of 9.1 million new farmers were provided bank credit in FY 2010. Banks – including cooperative banks and regional rural banks – met nearly 113 per cent of the government’s target of Rs 3.25 lakh crore while the recovery-to-demand was over 76 per cent. About 18 per cent of credit goes toward corporate entitites or organised units.

“Corporates can play a vital role in risk management and providing an assured market for agricultural produce which can benefit farmers, banks as well as the rural economy, said the study. “The participation of corporate sector in farming segment will play a crucial role in technology transfer and capital inflows.”

At present, India has the second highest number of financially excluded households in the world. About 40 per cent of the country’s population has bank accounts and only 10 per cent have any kind of life insurance cover while a meager 0.6 per cent has non-life insurance cover.

There are six lakh un-banked villages and only 38 per cent of all bank branches are in rural areas. Although efforts have been made to expand the branch network from 8,700 at the time of nationalisation in 1969 to 87,000 now, only 32,000 branches are present in rural India.

ASSOCHAM said non-banking financial companies which account for 11.67 per cent of advances in the total financial system can also play a major role in furthering financial inclusion. “Public investment in less favoured areas not only offers substantial poverty reduction per unit of spending but also boosts economic returns.”

The agriculture sector accounts for 14 per cent of the country’s total GDP with 235.88 million tonnes of food grain production in 2010-11 on the back of all-time high output of pulses and wheat. Some two-thirds of India’s people depend on rural employment for a living.

It employs 52 per cent of the total workforce and – despite a steady decline of its share in the GDP – is still the largest economic sector and plays a significant role in overall socio-economic development.

Most segments of the Indian industry have traditionally been quite fragmented, which has led to fragmented capacities. This will change as new business models evolve and companies consolidate to scale up operations and maximise long-term value of stakeholders, he said while addressing a conference organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“The inter-play of market forces calls for a broad regime to avoid adverse practices and improve businesses for consumer satisfaction. We would like to encourage creation of entities which can deliver faster and better goods and services,” said Mr Chawla while addressing the conference titled ‘Changing Dimensions of Corporate Restructuring.’

However, he said the current global economic conditions are not robust which have led to reduced M & A activities. How the Eurozone sovereign debt crisis unfolds and slow recovery in the United States and Japanrebounds will determine activities in India.

Meanwhile, minister of state for corporate affairs R.P.N. Singh said emerging markets are compelling places to be in for international companies. “M & A activity is likely to pick up worldwide in years to come due to higher growth and the desire of companies to invest the cash hoarded during recession.”

Mr Singh said there is a growing perception about the widening gulf between India’s reality and its immense potential. There is need to move beyond comfort zone. “Industry leaders must gather confidence, and facilitate regulators and policymakers to ensure sustainable inclusive growth for the well-being of all stakeholders in the society.”

ASSOCHAM secretary general D.S. Rawat said the main purpose of M & A is to add value to stakeholders based on the assumption that it will produce higher corporate value than the value of two separate entities. Sometimes, the reverse action of division or segregation of two different businesses can also help in unlocking the hidden value.

M & As lead to economies of scale, increased competition and better quality for consumers at low prices, he said.

Chairman and managing director of SMC Global Securities S.C. Aggarwal said the M & A activity (inbound and outbound) was down 43.7 per cent this calendar year and totaled 37.4 billion dollars in value terms. In deal count, the drop was 27 per cent over previous year.

With valuations of many companies dipping in the United States and the European Union, India companies have excellent opportunities to acquire them, he said.

Among others present were Mr Pavan Kumar Vijay, chairman of ASSOCHAM M & A Council, Mr V. Lakshmi Kumaran, managing partner of Lakshmikumaran & Sridharan Attorneys, and Mr K.C. Mehra, senior managing committee member of ASSOCHAM.

Providing them networking platforms is also essential in the current globalised world, said member of Parliament Najma Heptullah while addressing a seminar organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The seminar titled ‘Fostering Women Entrepreneurship – The Way Forward for South Asia’ was held ahead of the ASSOCHAM delegation of business leaders visiting Islamabad, Karachi, Lahore and Rawalpindi from January 9 to 14, 2012.

National Youth Congress leader Alka Lamba said both countries have many commonalities and traditional linkages. Business leaders should unleash entrepreneurial urge and forge ahead with economic partnerships between the neighbouring nations to promote core values of unity and peace.

Ms Harbeen Arora, founder and chief executive officer of Creative Living Organisation, said formation of women associations and support groups should be encouraged to provide them bandwidth for both critical thinking and also critical mass. “There is need more than ever for having more examples of successful entrepreneurship by women and inspiring role models.”

Pakistan’s minister of social welfare Nargis Khan said women can play an important role in developing societies and nations. “The country is exploring new channels to promote entrepreneurship with micro loans. Pakistani women are more empowered now after a prolonged dictatorship in a male-dominated society.”

Ms Qadim Moosarat, executive director of Paiman Trust in Pakistan, said space for women in economic and political spheres is essential for equitable development and peace in south Asia. India and Pakistan should divorce legacies of the past to repel prejudices and discriminations.

Mr Tajuddin Khan, general secretary of Pakistan’s Awami National Party, called for putting an end to atrocities on women and gender discrimination. He said liberal visa regimes in India and Pakistan will promote friendly relations and bilateral trade.

This, he said has been necessitated in view of fluctuations in the currencies and need for PSUs to adopt new strategies to acquire assets overseas and leverage their huge intrinsic assets while continuing to fulfill their socio-economic obligations.

“PSEs have been an integral part of the economy in its growth and development process. They will continue to focus on what role they may be required to play in future as well,” said the minister.

Despite a fast-growing private sector, said Mr Patel, the role of PSEs cannot be undermined as the Indian economy integrates with the global marketplace and the resultant challenges. “They should look at acquiring more assets abroad in future. However, to take PSEs to the next phase of growth, competitiveness and sustainability will be key driver for corporate transformation.”

The minister said PSE managements must be strengthened so that they have flexibility to take radical decisions rather than take comfort in safety zones. This is essential in present difficult economic conditions globally and currency fluctuations.

Mr S. Sundareshan, secretary at the Department of Heavy Industries, said PSEs should capitalise on their intrinsic assets to unlock values by forging joint ventures with other PSEs and expand with a new vision, direction and dynamism.

He said the government will strive to revive as many financially sick PSEs, rather than close them.

Mr M.H. Khan, secretary at the Department of Disinvestment, said the 1991 economic liberalisation process compelled all PSEs to compete in a free market economy and their transformation is still rolling out.

He said PSEs must participate more vigorously in capital markets to leverage cash balances and sustain shareholders’ value.

Meanwhile, ASSOCHAM president Dilip Modi said the aggregate income of 106 central PSEs totals Rs 15,085 billion or 24.6 per cent of India’s GDP at current market prices. PSEs have also played a vital role in financial markets as evident from the total market capitalisation of Rs 19.84 trillion.

“Business process re-engineering – especially in global best practices like total quality management for customer satisfaction – are essential for them to compete efficiently with others in liberalised markets.”

Mr Modi said acquiring the latest technology and its effective use will be the key to control costs and ensure high productivity. “Global challenges today compel us to consolidate our competencies and identify right markets for diversifying. It is essential to enter into strategic alliances in production and through public private partnership in emerging areas.”

Mr S.K. Roongta, chairman of ASSOCHAM National Council on Public Sector Enterprises, said PSEs are major employment generators and employ 1.5 million people. The private sector and PSEs could explore win-win partnerships while many countries are galloping with partnerships in new and emerging gas-rich countries of Africa and West Asia.

They should focus more on strategy moves rather than operation orientation, he said.

Mr B.B. Singh, director of personnel department at SAIL, said PSES were set up for self-reliant economic growth and have followed the path of inclusive development with sustainable environmental practices.

However, they now face new challenges of corporate governance, audit compliances and bureaucratic red-tapism.

Mr A.K. Purwaha, chairman and managing director of Engineers India Limited, said PSEs should re-mould business models to become lean and profitable. There is need for them to invest more in research and development, and develop a culture of innovation to face current dynamic business environment.

“New and innovative business models will enable PSEs to focus on their core competencies,” he said.

Mr K.C. Mehra, ASSOCHAM senior managing committee member, said PSEs have been a strategic lever for India’s economic development in pre-Independence and post-Independence eras. The number of CPEs last year was 249 with investments of Rs 5.8 lakh crore.

Foreign earnings by PSEs in 2009-10 were to the tune of Rs 78,000 crore and their contributions to central exchequer were Rs 1.4 lakh crore.

Subsequently, the organisation grew enormously, particularly under Sir Mortimer Wheeler, who infused a scientific basis on the investigation of our ancient past.  He also introduced full-fledged conservation, chemical preservation and horticulture wings in ASI which have contributed enormously in various ways.  Further, the exhaustive field training imparted by Wheeler to Indian students paved a way for them to take over the organisation, once the British left.  Some of the students attained the position of Director General of ASI speaks of the methodical and prolific nature of the training imparted by Wheller.

The ASI expanded enormously post-independence in several ways.  A novel approach of surveying the entire country was devised under the “Village-to-Village Survey of Antiquarian Remains” which enabled in extensive survey of remote corners of India. This enabled in the discovery of large number of sites of different periods, starting from the prehistoric to medieval times.  A monumental task of salvaging the archaeological remains in the Nagarjunakonda Valley was carried out successfully under the patronage of our first Prime Minister, Pandit Jawaharlal Nehru.  The salvaged remains are still on display in an island museum.  The surveys along the dry bed of River Ghaggar and Gujarat led to the discovery of a large number of early, mature and late Harappan sites, the hallmark among them are the sites of Dholavira, Lothal, Banawali and Rakhigarhi.

The ASI also expanded its activities in the protection, conservation, preservation and environmental upgradation of nationally protected monuments numbering 3677 in a major way.  The reputation of this organisation enabled its participation in conserving monuments in other countries like Afghanistan, Cambodia, Laos, etc.  The Epigraphy branch of ASI contributed tirelessly in surveying site after site to document and takes an impression of the inscriptions which led to the discovery and copying of nearly 80,000 inscriptions in various languages and scripts.

The contribution of ASI and heritage preservation in the modern era is more relevant as site after site is destroyed due to indiscriminate and rapid urbanisation, lack of knowledge on the necessity to preserve our past.  The ASI is aiming at spreading the message of protecting and preserving our past which can contribute in a major way towards local tourism, employment opportunities of the locals and also infuse a sense of pride among the mass of their rich heritage. After becoming an active member of World Heritage Convention of UNESCO, India has so far 28 World Heritage Properties inscribed with UNESCO out of which 19 are under ASI.

The major activities of the Archaeological Survey of India are:

(i) Survey of archaeological remains and excavations;

(ii) Maintenance and conservations of centrally protected monuments, sites and remains

(iii) Chemical preservation of monuments and antiquarian remains;

(iv) Architectural survey of monuments;

(v) Development of epigraphical research and numismatic studies;

(vi) Setting up and re-organization of site museums;

(vii) Expeditions abroad;

(viii) Training in Archaeology;

(ix) Publication of technical study reports and research works

There are 24 circles through which the Archaeological Survey of India administers the work of preservation and conservation of monuments under its protection. Recently, one Mini Circle was set up with headquarter at Leh, for administrative convenience. Besides, there are six excavation branches, two temple survey projects, one building survey project, one prehistory branch, one science branch, two Epigraphy branches (one for Arabic and Persian and the other for Sanskrit and Dravidian) and one horticulture branch in the ASI through which various research and other works in different fields are undertaken.

The ASI celebrated its centennial year of its founding in 1961 through a series of events like seminars / conferences, exhibitions, film shows, commemorative stamps, etc. Special publications were also brought out.

Keeping in view of the sesquicentennial year of the founding of ASI in 2011, the ASI has planned a large number of activities in order to highlight the necessity of heritage education and management in a modern scenario, and would also urge the younger generation in the active participation.  The ASI has planned the following activities.

(i)             Inaugural function in the month of December, 2011 to initiate a yearlong events and functions

(ii)          Special Lecture of Lord Colin Renfrew, renowned archaeologist in December, 2011

(iii)        Four international conferences, viz.,

1. Archaeology of Buddhism in South Asia
2. Early Agro-Pastoral Cultures of South Asia
3. Harappan Archaeology, and
4. Medieval Architecture

(iv)        Release of commemorative postal stamps, medals, philatelic exhibition on monuments, etc.

(v)          Special publications, monographs, brochures and booklets

(vi)        Publication of ASI Journal, Ancient India – A New Series

(vii)     Upgradation of 10 Archaeological Museums of ASI

(viii)   Relocation of Central Archaeological Collection (CAC) from its present location in Purana Qila to Red Fort

(ix)        Organising a series of exhibitions, both at the national and regional levels

(x)          Documentaries on ASI monuments and heritage

          These celebrations will have a deeper impact on the masses and the public in large to take notice of the relevance of preserving our past.  They can be urged to help ASI and foster a relation with the monuments and sites in their location for their better preservation and maintenance.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) conducted a random survey of exporters with a well diversified presence across Asia, Africa, Europe, US and other prominent centres across the world.

ASSOCHAM interacted with nearly 500 exporters based out of Ahmedabad, Bangalore, Chennai, Delhi and Mumbai during mid September and November to ascertain the impact of global economic slump on India’s exports more so as US and the European Union together account for about 35 per cent of India’s aggregate exports.

“Consequences of slowdown in global economy on exports from India are very much apparent as the growth of exports from India fell to a meagre 11 per cent in October 2011 as against about 36 per cent in the last quarter of the current fiscal,” said Mr D.S. Rawat, secretary general of ASSOCHAM while releasing the findings of the survey.

“Exporters across India are finding it extremely difficult to fulfill their export obligations due to a grim scenario in the global markets and have urged the government to come to their rescue as the situation is going beyond their control,” said Mr Rawat.

“In order to stimulate exports and check trade deficit the government should provide finance to exporters especially those from small and medium sectors at concessional rates,” said Mr Rawat.

Nearly 75 per cent of the respondents said that their exports have been suffering a severe downfall ever since the sub-prime crisis of 2008-09 and are looking forward to certain significant steps by the government to boost exports from India.

About 40 per cent of respondents said that exports might slow further and demand might slacken amid persisting global economic crisis.

Majority of exporters said that current global economic turmoil has pushed the trade deficit to record low hurting the demand for Indian goods in advanced economies.

Nearly 25 per cent of exporters said that government’s efforts to promote exports to markets like that in Africa have definitely eased the pressure a bit but demand contraction in traditional markets like the US and Europe is the crux of their worry.

Besides, nearly 30 per cent of respondents also said that recent sudden depreciation of rupee against major currencies might help Indian exporters maintain their competitiveness to some extent.

“Indian manufacturers must take an advantage of weakening rupee and downward movement of global economies like China and must exploit this opportunity to boost exports and make Indian goods globally more competitive more so as manufactured goods account for over half of India’s total exports,” said Mr Rawat.

About 55 per cent of respondents said that inflation might rise further and will lead to unregulated price hike in input costs and push the price of labour upwards.

According to an ASSOCHAM analysis India’s share in global exports is likely to fall from 10 per cent in the current fiscal over the last fiscal.

Companies dealing with fast moving consumer goods (FMCG) have often resorted to tinkering with pack sizes to manage the slippage in operating margins during a high raw-material inflationary scenario.

If this regulation is implemented, then these companies will have to stick to standard pack sizes. Also, some companies according to the notification may have to introduce new pack sizes in few product categories.

“It is a welcome step which was long overdue. Consumer interests will be protected when the new regulation comes into effect,” said Mr D.S. Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Several FMCG companies normally do not tinker with price points but make changes in the pack sizes in order to protect the fall in margins when witnessing high raw material prices.

“This is against fair play and amounts to price rise in a guise,” said Mr Rawat. “FMCG companies have robust sourcing strategies and play on turnovers so that input costs per unit get spread over. They also make huge profits.”

There has been at least 20 per cent increase in raw material costs due to interest rates moving up and rising inflation. Product categories where this regulation may have an adverse impact are biscuits, tea and soaps and detergents.

If this regulation is implemented, FMCG companies may have to do away with popular price points as taking price hikes by reducing the grammage at these price points will no more be possible. These pack sizes have become popular in rural markets, which for all FMCG companies have become a sizeable market.

The term ‘royal wedding’ was followed by ‘iPhone 5′ and ‘Fifa 12′ in the list of the search engine’s annual survey of the most inquired-about new terms, Sky News reported.

Kate, the Duchess of Cambridge, was also one of the most Googled celebrities in the country.

American reality TV star Kim Kardashian was the most searched-for celebrity in 2011, followed by former Spice Girl Victoria Beckham and actresses Emma Watson and Scarlett Johansson.

The ‘X-Factor’ and ‘The Apprentice’ topped the list of most-searched-for TV programmes in Britain.

Top searches for ‘How to…’ included revise, draw, sleep, flirt, pronounce and wallpaper.

The most searched for ‘What is…?’ list included AV, scampi, 4D, Apple iCloud, truffles and piles.

The top searched-for travel destination was Las Vegas, with New York and Disneyland Paris making up the top three.

During his meeting, Sri Lankan President asked India to help bridge the trade gap and bring in more investments. He also invited CII to train people in creating self-employment.  The focus of his Government is on nation-wide development, not only restricted to Colombo.  

The CII delegation also met with the Minister of Economic Development, Mr Basil Rajapaksa and Minister of Commerce & Industry, Mr Rishad Bathiyutheen.  During these meetings, it was agreed that CII will depute a Consulting Firm to identify and develop investment proposals in Sri Lanka. 

The Sri Lankan Ministers also wanted CII to promote rural entrepreneurship, Self Help Groups and job creation through home based micro enterprises which could be set up in rural areas of Sri Lanka.   It was agreed that CII will work with Ceylon Chamber of Commerce to develop cluster programs for SMEs and expose their members to CII Centres of Excellence delaing with Quality, Sustainable Development, Energy, Green Business, Manufacturing and Leadership.   

In the area of IT Skills, it was decided that CII and Infosys will train about 200 Sri Lankan students (in two batches) over the next one year by  using the Infosys training facilities at Mysore. 

To further develop the Tourism sector  in Sri Lanka, CII will identify suitable partners for capacity building and training of staff for hospitality industry.  They would also invite Indian companies to open a chain of vegetarian restaurants and 3 / 4 Star Hotels across the country. 

The Mission comprised of Mr T T Ashok, Chairman, CII Southern Region, Mr S Chandrasekhar, Chairman, CII – Karnataka State Council and other senior leaders from the Indian industry. 

The Mission also had a meeting with Ceylon Chamber of Commerce. 

Mr Kris Gopalakrishnan Vice President, CII and Mission Leader in his meeting with the President of Sri Lanka reiterated that Sri Lanka is a priority country for Indian Industry. The visit was fruitful and several follow up activities were identified and will be taken forward.”

“If you look at the past, you see that we had touched 12-14% growth in a few short periods. The challenge is to make it steady and sustainable for 10 years. I think this is very much doable”, Mr Shankar added. He opined that considering that we have firms across the spectrums that have shown themselves to be globally competitive and serious, higher aspirations by the government on this front is obvious.

Mr Shankar further observed, “The Policy recognizes that land is an issue and hence talks of making land-banks. He suggested releasing these land banks with sick and unproductive units and using those for productive purposes, besides providing external facilities like infrastructure.”

Addressing the session, Mr Jamshyd N Godrej, Past President, CII & Chairman - CII Manufacturing Summit 2011,said, “The challenges are tremendous, viz. lowering of growth rate, delaying of important legislations including the one on GST, infrastructure, skill development etc. Yet this is also an inherent opportunity and we should see internally on how we can raise our standards, become green and improve quality to take advantage of the situation.” He added, “GST is an important legislation which we have all recognized as essential for improving tax and cost structure in manufacturing. Yet there is a lack of information about GST and we need to move rapidly to spread awareness on its benefits.”

Prof Pankaj Chandra, Director, Indian Institute of Management, Bangalore observed, “Manufacturing does not happen in the Centre but in the states and in individual firms. So while talking about manufacturing policies we will have to deal with states and capabilities of firms.” He added, “The uniqueness of Indian manufacturing sector lies in practices that create high volume, high variety, high precision and are flexible. A lot of successful firms lie in this zone of excellence and follow these practices. The challenge lies in getting other firms to this zone. In this context, he suggested building levels of enterprises where a considerable number of large, medium and small enterprises thrive to make up a sustainable eco system. This will change the manufacturing industry and the nation dramatically.” Prof Chandra further recommended that one of the action points for the industry would be to create three offices viz. ‘Office for Manufacturing Data and Productivity’, ‘Office for Commercialization of Technology’ and ‘Office for Technology Diffusion’.

Speaking at the Summit inaugural, Mr. Ajay Piramal, Chairman, Piramal Healthcare India Ltd. shared his concerns saying, “Today to start a manufacturing unit, you have so many impediments right from acquiring land to environmental approvals. This poses constraints in expanding capacity. It takes five years to start an industry in India while it takes two in China. The drop in production that we see can be attributed to these problems.” He also indicated that there are opportunities galore for a bright future but we are not doing enough. We need to bridge the infrastructure deficit in the country and create the right policy framework. He observed that banks don’t have adequate capital and hence FDI needs to be encouraged. On an optimistic note, he said, “Globally growth is slowing down. India is looked upon by people as a country with high quality manufacturing. We thus have several opportunities but we also have to address the problems.”

A background note on the Summit co-authored by The Boston Consulting Group (BCG) and CII was released by Mr. Ajay Shankar during the Summit. Mr. Arindam Bhattacharya from BCG briefed the august audience about the background paper. It outlines the aspirations, challenges and trends that would shape the Indian manufacturing sector. It also discusses the National Manufacturing Policy and views that it may work as a “game changer” for the industry if implemented aptly.

Mr Pradeep Bhargava, Deputy Chairman, CII – Western Region & Managing Director, Cummins Generator Technologies India, talked about the manufacturing industry standing up for itself. He said, “Once we were shy to admit that we worked for the manufacturing sector while today the sector is flexing its muscles”. Mr Bhargava opined that when it comes to issues like innovation, competitiveness, going green and skill development, industry has to be self reliant and not depend on the government.

He said mutual funds must increase their penetration in smaller cities and rural areas while financial literacy should spread among the uneducated also.

“The focus should be on small investors so that the base widens. Financial education should be sector-specific and product-neutral,” he said. Most of the money parked in mutual funds comes from institutional investors which include corporates, banks and foreign institutional investors (FIIs).

Mr Saran said many financial products are becoming complicated and it is not easy for even an educated person to understand and analyse them. At the same time, financial structures across the world do not command as much respect as they used to in the past.

Financial inclusion and investor education thus become crucial for equitable distribution of assets under management (AUMs), he said. There are 44 mutual funds operating in the country with assets under management of Rs 7.13 lakh crore compared to Rs one lakh crore in December 2001.

ASSOCHAM secretary general D.S. Rawat said the countrywide mutual fund penetration is abysmal with over 75 per cent of assets being held in top five cities of Mumbai, New Delhi, Bangalore, Chennai and Kolkata.

“It is important to make investors aware about their benefits – professional management, low costs, transparency, liquidity and a strong regulatory framework,” he said.

Mr S.C. Aggrawal, chairman of ASSOCHAM Capital Market Committee, said all schemes – except equity oriented schemes – have seen a high participation from institutional investors. Corporates dominate the institutional segment with close to 90 per cent share of AUM.

Retail participation is more in equity oriented schemes and is slowly picking up in gold exchange traded funds. Mutual fund industry’s net assets as percentage of India’s GDP are 7.23 as compared to 84 for the United States. On a global scale, mutual fund assets touched 25.92 billion dollars at the end of second quarter of 2011.

Others present during the meet were Mr B.K. Sabharwal, chairman of the Federation of Indian Stock Exchanges in India, Mr V. Ramesh, deputy chief executive of the Association of Mutual Funds in India, and Mr Mukesh Agrawal, chief executive officer of CRISIL Research.

They said a modern investment management style with a delivery model towards retail investors will be a new paradigm for the wealth management industry. With growing disposable incomes, rising cost of living, improving lifestyles and growing aspirations, there is a noticeable shift in preference for mutual funds – though they still have a long way to go.

Nearly 65 per cent of assets are deployed in debt on an average. Liquid and ultra short term debt funds consume 80 per cent of all debt funds. The ban on entry loads in 2009 has shifted focus of mutual funds from sales-based models to advisory-based models using platforms and research from various vendors.

“We have about five months to complete the process,” he said while inaugurating the conference titled ‘Air Cargo as Engine of Economic Growth’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The new policy will encourage private sector investments and lay emphasis on setting up an air cargo promotion board, Mr Zaidi said. With GDP growing annually at nearly eight per cent, the air cargo industry has been averaging annual growth of 12 per cent.

The total cargo handled by Indian airports in 2010-11 was 2.33 million tonnes, up from 0.5 million tonnes in 2005-06. While the domestic cargo is expected to increase from 0.8 million tonnes to 1.7 million tonnes by 2016-17, the international cargo traffic is projected to move up from 1.5 million tonnes to 2.7 million tonnes in the same period.

The air freight stations at Mumbai and Chennai will be operationalised soon to keep up with the booming traffic, said Mr Zaidi. “We need to decongest cargo terminals with simplification of customs procedures, greater use of mechanised handling and speedy clearances of shipments. India has the potential to emerge as a global trans-shipment hub.”

Mr Najib Shah, chief commissioner at the Central Board for Excise and Customs, said authorities have put in place a risk management system for self-declaration by exporters. Efforts are being made to upscale infrastructural facilities and reduce dwell time.

Mr K. Narayana Rao, chairman of ASSOCHAM Civil Aviation Committee, called for reducing transaction costs with technological improvement like paperless e-enabled transactions, improving systems, processes and technology, developing common IT platforms covering all stakeholders for speedy flow of information.

“We must have modern integrated cargo terminals, cargo villages, automated storage and rack systems, cold chain facilities to support pharmaceuticals and perishable cargo.”

ASSOCHAM secretary general D.S. Rawat said in his message cargo services are set to chart a new course with domestic and foreign airlines expanding their networks and capacities after the government raised foreign direct investment limit in cargo airlines from 49 to 74 per cent.

Among others present were Mr Joeri Aulman, regional manager for south Asia at Netherlands Airport Consultants, Mr Amber Dubey, director at KPMG India, and Mr Babu Lal Jain, senior member at ASSOCHAM and senior advisor at United Nations Office for Partnership.

They said air freight stations will eventually need to move to tier 2 and tier 3 cities to offset limitation of space and decongest warehouses at existing main airports.

As the key infrastructure sector expands to keep up with rising passenger and cargo traffic, investments of Rs 1.5 lakh crore will be required in the next 15 years. India’s scheduled airlines have 430 planes now. According to a recent ASSOCHAM study, this figure is likely to go up to 1,500 by 2025.

With a stagnant annual growth rate of a meagre one per cent, the primary sector comprising of agriculture, animal husbandry, forestry, fishing, mining and related activities is the second highest contributor to the GSDP accounting for about 18.5 per cent during the course of past five years, according to the study titled “Tapping Growth Potential in Bihar – Emerging Issues & Possible Solutions” released by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Clocking a CAGR of about 17 per cent, the secondary sector comprising of manufacturing and construction sectors is the third major contributor to the GSDP with 18 per cent share.

While public administration grew at a CAGR of about 14 per cent it accounted for a share of about 16 per cent in the GSDP whereas banking, insurance and real estate sectors growing at a CAGR of about 17 per cent contribute nearly 10 per cent to the state gross domestic product.

With a total installed power generation capacity of about 1,855 mega watt (MW), Bihar is lagging behind other states in power generation which is pivotal for the industrial development in the state.

“The state has considerable potential for new and renewable energy sources, hydropower projects and biomass-based power projects have the potential to generate about 300 MW of energy,” said Mr D.S. Rawat, secretary general, ASSOCHAM.

Major investments have been made in thermal power projects in the state, which account for 70 percent of the total investment in Bihar’s power sector, according to ASSOCHAM study.

Sugar industry being the largest agro-based industry in the state employs nearly five lakh farmers and holds huge potential in the new Greenfield sugar mills. Besides, the private sector can also play a significant role in capacity expansion of sugar mills and manufacturing sugar based confectionary items.

Textiles is another significant sector which offers a lucrative investment opportunities to investors as the state is second highest jute producer, largest producer of tasar silk.

“Availability of raw jute, cheap labour, sufficient power, water and transportation are certain lucrative incentives to invest in the state’s textile sector,” said Mr Rawat. “There is huge potential in setting up raw material bank, dyeing centres, post-weaving, packaging and finishing centres.”

Clusterisation of industries in the state is imperative for industrial development to provide various benefits to the industry.

ASSOCHAM recently signed a memorandum of understanding with the United Nations Industrial Development Organisation (UNIDO) to establish clusters of small and medium enterprises in a few districts of the state.

The chamber has also set up a dedicated Foundation for Development of Micro Industries and Clusterisation to promote micro, small and medium enterprises (MSMEs) across the country.

Private sector participation is pivotal for development of infrastructure, rapid modernisation and faster development of Bihar.

Development of local industries like food processing, textiles, construction and leather is very significant as it acts as a growth engine, drives economic growth and spur employment scenario across the state.

ASSOCHAM calls for developing a business-friendly environment, creation of special economic zones (SEZs) with favorable policies to attract foreign direct investment (FDI) in sectors like agriculture, textile and leather.

Instead of reducing repo rates, there is a strong case for the central bank to cut CRR by 50 basis points from six per cent. This will release about Rs 30,000 crore into the system, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) ahead of the RBI’s third mid-term quarterly review on December 16.

Banks currently continue to withdraw from the RBI’s repo window to cope up with growing shortage of funds, said secretary general D.S. Rawat. “Slashing CRR will improve the profitability of banks and enable them to pass on more funds to the industry.”

The central bank should also consider lowering SLR by one or two per cent to ensure that funds flow at reasonable cost to the infrastructure sector, he said. This will give impetus to the fund-starved sector which is facing huge challenges.

With economic growth slowing and the threat of contagion from Europe strengthening, there should be some monetary action, said Mr Rawat. Moreover, liquidity in the system is under stress with banks borrowing substantially more from the liquidity adjustment facility (LAF) of RBI than what it desires.

Banks have been drawing an average of Rs one lakh crore daily since November 24 using the LAF window at 8.5 per cent repo rate. The regulator’s comfort level is one per cent of net demand and time liabilities which is about Rs 60,000 crore.

The mid-year economic review projects a slashed-down growth rate of between 7.5 and 7.25 per cent for the current year, down from the budget projection of nine per cent or more.

Along with this, the trade deficit is projected to balloon to between 155 billion to 160 billion dollars. “Funding current account deficit will surely be a problem as this was being comfortably met so far from capital inflows. The fiscal deficit is also shooting with government revenues rising by seven per cent and expenditure going up by ten per cent,” said Mr Rawat.

The rupee is depreciating as funds flow from overseas has abated because of global uncertainty. This will further fuel domestic inflation as India is import dependent country and chronically imports more than it exports. “On the whole, a rather bleak economic situation and prospects for 2012,” he said.

The economy has been experiencing a slowdown with GDP growth dipping to 6.9 per cent in the second quarter, the lowest rate of expansion in over two years. The eight key infrastructure industries witnessed dismal growth of 0.1 per cent in October, the lowest in the past five years.

Headline inflation, which also factors in manufactured items, has been above the nine per cent mark since December 2010. The RBI has hiked interest rates 13 times since March 2010 to tame demand and curb inflation.

In its second quarterly review of the monetary policy last month, the central bank had said it expects inflation to remain elevated till December on account of the demand-supply mismatch before moderating to seven per cent by March 2012.

“There is a strong case for RBI to bring down interest rate so that it gives some relief to the industry which has seen slowed demand and rising input costs,” said Mr Rawat.

 
Source: FICCI Survey

Precision Equipments (Chennai) Pvt Ltd, Chennai and Formulated Polymers Ltd, Chennai have won the First Places in the medium and small scale category respectively.

Ashok Leyland Ltd – CPPS, Hosur; Carborundum Universal Ltd, Maniyar Unit, Kerala; Shahi Exports, Bengaluru and Cognizant Technology Solutions, Pallikkaranai Unit, Chennai received the Sustenance Award.

Mr T T Ashok, Chairman, CII  Southern Region in his inaugural address said that Japanese management concepts such as 5S would help organizations to achieve well maintained workplaces, which enhances productivity and quality and thereby achieve cost reduction which can ensure sustainability of growth, One of the versatility of 5S is that it could be deployed in any type of environment, he added.

Mr Ashok said that while a 5S system is low cost to implement, it will require changes to the work habits of employees and needs the support and reinforcement of management to reap maximum benefit.

Mr V Narasimhan, Co Chairman CII Southern Region Manufacturing Competitiveness Sub Committee in his address said that the objective of the Award is to motivate and recognize excellent 5S practices in the member organizations. The fully implemented 5S practices would create positive impact with customers, increase morale, increase efficiency, less waste, better quality and faster lead time that will make an organization more profitable and competitive in the market place.

Out of the 32 entries received from across Southern Region, 15 companies have been shortlisted for the final case study presentation, said Mr Narasimhan.

High-volume sourcing of components and final products has hampered the growth of electronics manufacturing base in recent years, said Mr R. Chandrashekhar, secretary at the ministry of communications and information technology while addressing a national conference organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“Growth trends show the demand for electronic products to cross 400 billion dollars by 2020,” he said. “A national strategy has to be formulated through discussions with key stakeholders including existing manufacturers and members of the MSME sector, industry associations, respective government departments and regulatory bodies.”

This is important as excessive dependence on imports could involve national security issues in future. Mr Chandrashekhar called for creating industrial clusters to meet the need for fostering innovation and manufacturing in electronics sector.

Mr Ajay Shankar, member secretary at the National Manufacturing Competitiveness Council, said domestic manufacturing is essential to sustain GDP growth momentum and generate mass employment.

“There is a growing consensus that electronics industry needs a special emphasis. It will encourage value generation, revenue generation and employment generation,” he said adding practical and implement-able solutions should be worked out.

ASSOCHAM secretary general D.S. Rawat called for establishing centres of excellence for incentivising collaborative research and development initiatives between MSMEs and MNCs.

Absence of feeder industries is the biggest hurdle for electronics manufacturers to set operations, he said. “The government needs to take quick steps to start developing an ecosystem which will attract manufacturing investments.”

Among others present on the occasion were Mr Lakshmi Narayan, advisor at the Videocon Industries, Mr P.K. Sandell, chairman of Eltec Systems, Mr Ajai Chowdhury, chairman of HCL Infosystems.

According to a knowledge paper prepared by ASSOCHAM and Frost & Sullivan, the 2020 guidance is expected to catapult India’s contribution to the 1.8 trillion dollar global electronics industry to 15 per cent from the current low contribution of 2.5 per cent.

Rising localisation of electronics manufacturing is a bellwether for propitious future of local semiconductor industry. Increasing assembling and manufacturing activities bode well for the semiconductor market as it awaits the dormant opportunity to turn active.

The past decade has been remarkable from a consumption perspective: 18 million mobile phones in 2003 to 172 million units in 2010, shipment of three million personal computers to over 8.2 million in the same period, from a non-existence LCD TV market in 2003 to rapidly growing sales of 3.5 million units in 2010.

The mobile revolution, an expanding middle class, growing emphasis on quality healthcare to the masses, increasing government spending on aerospace and defence, and enhancing significance of energy efficiency are all key trends influencing the growth of Indian electronics industry.

The demand for skilled labour should be addressed through establishment of specialised training centres with courses in electronics design, surface mount technology and floor automation.

Success stories from some of the best practices in industry development adopted in other electronics strong economies like Taiwan, the Philippines and Malaysia are worth revisiting.

The global electronics industry reported at 1.75 trillion dollars is the largest and fastest growing manufacturing sector. It is expected to reach 2.4 trillion dollars by 2020.

“The continued fall in the manufacturing sector has been a worrying factor,” said ASSOCHAM secretary general D.S. Rawat. While manufacturing performance has been a cause of concern for a long time, mining also started posting subdued growth in the recent past.

The electricity sector only has posted some growth. However, this has no consequential effect on the prevailing under achievement of planned targets in this sector. Financial markets and performance services sector are the immediate casualties of this trend.

Considerable fall in the capital goods production (-25.5 per cent) coupled with the decline in production of intermediate goods (-4.7 per cent), basic goods (-0.1 per cent) and consumer non-durables (-1.3 per cent) testify the appalling state of industrial activity.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has been highlighting the issue for quite some time and looking forward to seeing corrective measures from policy makers.

“It strongly feels that till the hyper inflation conditions are reversed in India and normalcy is restored in developed economies, policy makers need to take more responsibility to make a realistic assessment and follow it up with appropriate policy measures,” said Mr Rawat. “Policy dynamism is the need of the hour.”

In a communication to the Nair Committee constituted by The Reserve Bank of India (RBI), the chamber said that there is a high degree of necessity to include sectors like infrastructure, logistics, health and services in the definition of ‘priority sector.’

Infrastructure has been the biggest hindrance during the past decade and has the potential to outperform other sectors during the next decade. Besides power and roads, infrastructure in agriculture like warehouses and cold storage must also be included in the definition.

“Presently considering the fragile and sensitive current account position, foreign exchange position thrust should be laid on exports and export oriented loans must also be included in the priority sector,” said Mr D.S. Rawat, secretary general of The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“There can be allocations towards manufacturing in the priority sector, enabling India to compete with China as we have been lagging behind in this segement, therefore there is an urgent need to focus on manufacturing to generate employment opportunities,” said Mr Rawat.

ASSOCHAM has further stated that focus towards ‘new ventures’ in the definition of priority sector is the need of the hour and is critical to encourage entrepreneurship in the country as it will encourage new ideas and spur employment.

This is important to provide priority sector status, as we don’t have dynamic bond market. New ventures cannot raise funds through bond market and the priority sector status might prove to be fruitful in this regard.

As per the recent RBI legislation that loans given to non-banking financial companies (NBFCs) for on-lending to priority sector will be removed from the definition of priority sector loans and this will encourage NBFCs (Non-Banking Financial Companies).

ASSOCHAM calls for timely and proper checks and balances on such NBFCs to ensure proper on-lending mechanism to intended categories. RBI can also fix certain interest rate caps on NBFCs, for such on-lending loans to ‘priority sector.’

“Such caps can be in terms of interest rates, and can also be in terms of interest rate spreads (over and above the borrowing rate from RBI),” said Mr Rawat.

Loans granted to NBFCs, housing finance companies, agriculture co-operatives by banks for on-lending to beneficiaries be classified under the priority sector only if they stick to eligibility criteria as applicable to such beneficiaries.

Besides, the basic calculation of 40 per cent as priority sector advance should be based on domestic Average Net Bank Credit (ANBC) and not the entire ANBC of the bank which includes foreign credit aswell.

“Wherever the loans can be availed in foreign exchange, the limit should be marked in US dollars to avoid wild fluctuations in exchange rates as it might disturb the cost of significant programmes like education loan for studying abroad,” said Mr Rawat.

ASSOCHAM welcomes inclusion of micro-finance institutions (MFIs) under the priority sector lending but calls for a high degree of vigilance to ensure that intended objectives are met effectively, more so as a number of MFIs have emerged during the course of past few years.

Homeland security has come into enhanced focus since the 26/11 Mumbai attacks which highlighted gaps existing in the country’s internal security apparatus, said Mr D.R. Kaarthikeyan, chairman of ASSOCHAM National Council on Installations, Premises and Personnel Security.

“Security is a difficult topic and everybody’s business. It will be achievable only with everyone’s cooperation, an intelligent policy and consistent practices,” he said at the Homeland Security India Conference. The two-day meet is supported by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

Mr Kaarthikeyan, former director of the Central Bureau of Investigation (CBI), called for speeding up work on the proposed National Information Grid (NATGRID) – a networked intelligence database being set up for investigating and intelligence agencies to provide real time information on terrorists.

Terror threats have pushed the country’s security needs into limelight and accelerated calls for better security technologies, he said. Efficient, reliable protection and security systems are high on the agenda.

ASSOCHAM secretary general D.S. Rawat said there has to be an inclusive effort and hand-holding approach of public and private stakeholders to protect India’s national sovereignty and security. “It is not merely a function of the state. The private industry is fully geared to supplement government initiatives.”

There is need to create a national database, beef up intelligence gathering networks, ramp up staff at intelligence agencies, introduce police reforms to empower beat constables, absorb meritorious and retired intelligence officials in the system, and tighten border maritime security, he said.

Security is a crucial driver for economic growth and national development. The Indian industry is beginning to take note of the potential growth offered by the evolving security framework, said Mr Rawat.

According to a recent ASSOCHAM study, the homeland security market is expected to expand from Rs 36,000 crore to Rs 60,000 crore by 2014 and Rs 74,000 crore by 2018.

Over 280 exhibitors are participating in the International Fire and Security Exhibition (IFSEC) India coinciding with the Homeland Security India Conference. About 4,000 security experts from various industries – including financial services, infrastructure, public safety, law enforcement, retail, realty and hospitality – are expected to converge for the events.

In tune with the country’s growing requirements, the government is re-addressing its internal security strategy by boosting its budget in an effort to upgrade and modernise police and paramilitary forces.

Mr Wang Xuefeng, Minister at the Embassy of China in India, said the country has several competitive advantages in manufacturing and infrastructure construction. “The Indian government’s plan to invest one trillion dollars on infrastructure projects offers excellent opportunity for Chinese companies to participate.”

He was addressing delegates at a roundtable conference titled ‘India China Economic Cooperation: Win Win Situation’ organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

“In the past three years, Chinese enterprises have completed India infrastructural projects with a total value of ten billion dollars. The two-way investment is also showing a booming trend. China’s ever-growing market also means huge space for Indian companies.”

Mr Wang brushed aside fears of hike in tariff and non-tariff barriers on imports of some Chinese goods by India or a complete ban on specific items like power and telecom equipment. China has already raced past the United States, Britain and Japan to become India’s largest trading partner.

Trade between the world’s most populous nations with 2.5 billion people jumped 20-fold from 2.9 billion dollars in 2000 to more than 60 billion dollars in 2010. It is likely to cross 70 billion dollars this year and reach 100 billion dollars in the next four years.

Dr Subramaniam Swamy, president of the Janata Party who did doctoral research on the Chinese economy at Harvard University, said India and China should identify complementarities in manufacturing, services, innovation, research and development, banking and finance, energy, and environment.

For instance, he said, hydrogen fuel cells have a great future and can reduce dependence on hydrocarbons. “We must create an atmosphere of negotiated settlements as stable economic cooperation requires complete and clear political understanding.”

After the United States, China is the world’s second largest economy with a GDP of 5.6 trillion dollars in 2010 and growing at ten per cent in the past five years. India is the fourth largest economy in terms of purchasing power parity and expected to become the third largest by 2040.

Indian exports to China jumped 68.8 per cent to 19.6 billion dollars in 2010-11 from 11.6 billion dollars in the previous year. The imports also increased 41 per cent to 43.5 billion dollars from 30.8 billion dollars in the same period.

Most Indian exports to China comprise of metals, ores, iron and steel besides cotton while imports are of electrical machinery and equipment, nuclear reactors and boilers, organic chemicals, fertilisers, iron and steel.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) study titled ‘Organic West Bengal: Ushering New Era of Prosperity’ was released by Mr Arup Roy, agriculture marketing minister, Government of West Bengal along with D.S. Rawat, national secretary general of ASSOCHAM and Debmalya Banerjee, co-chairman, Eastern Regional Council here in Kolkata today.

Over six lakh additional jobs can also be generated if farm storing, processing, value addition, packaging and marketing facilities are included, considering organic farms provide more than 30 per cent more jobs per hectare as against non-organic farms.

“Adoption of organic farming can increase net per capita income of a farmer in the state by a whopping 250 per cent to over Rs 15,680 per month in next five years thereby, arresting the migration of people from West Bengal to other states in search of jobs,” according to the ASSOCHAM study.

At least 35 per cent of cultivable land can be converted into organic farms, in next five years, thereby converting seven per cent cultivable land annually into organic farming.

“The state government must emphasise on organic farming in their agriculture policy to overcome constraints like unproductive plantation, low crop productivity, poor crop management, high degree of pests and diseases,” said Mr Rawat. “It is imperative to adopt modern practices, technologies and scientific management in agri sector.”

Considering rising health consciousness and growing awareness among people, the demand for organic food products is likely to increase rapidly, thus ASSOCHAM calls for setting up organic farming clusters across the state.

West Bengal can attain the top spot in organic farming among competing states by focusing on potential crops in a phased manner and cash in on organic aquaculture (pisciculture) by raising fish seeds organically for earning higher export revenues.

Growing at a robust annual growth rate of over five billion dollars, the global organic market currently stands at around 65 billion dollars.

Growing at a steady annual rate of about 40 per cent, organic farming in India is likely to be worth Rs 10,000 crore by 2015 from current levels of about Rs 2,500 crore. Nearly 4.5 million hectares area is currently under certified organic farms, points out the ASSOCHAM study.

Certified organic products including all varieties of food products namely basmati rice, pulses, honey, tea, spices, coffee, oil seeds, fruits, processed food, cereals, herbal medicines and their value added products are produced in India. Apart from edible sector, organic cotton fiber, garments, cosmetics, functional food products and body care products are also produced.

Although, organic farming is picking up pace in India but the sector has been jostling with lack of awareness, knowledge and confidence about organic farming, food products among both farmers and consumers.

Organic agriculture should be recognised and integrated in main policies of the central government like those on agriculture, food, health and environment. This will ensure that all needs of organic sector are properly addressed and considered in government programmes and budgetary allocations, says ASSOCHAM.

Considering the questions being raised on quality of Chinese organic products, more emphasis must be laid on maintaining quality control while promoting exports of domestically produced organic products, says the chamber.

ASSOCHAM has proposed formation of a national commission for organic agriculture with participation of all stakeholders including private sector. Besides, an organic food council can also be set up to institutionalise policy dialogue between the government and the organic sector.

Highlighting the role of West Bengal government, the study says that mapping the status of organic farming and certification along with agro-climatic zones must be carried out to tap the potential of organic crops and understand micro level production potential. Interventions must be carried out to raise production levels.

The area under crops may be increased through cluster approach to generate marketable surplus and provide economy of scale in marketing the production.

Regional action plans should be developed for organic farming stating direction and target for adoption and combination of specific measures including direct income support, marketing and processing support, certification support, consumer education and infrastructure support, says the study.

The state government should promote a concept to set up an organic village in each district to encourage usage of organic fertilisers to protect land from residual affect of chemical fertilisers, suggests ASSOCHAM.

A niche market of organic products be developed to exploit advantage and tap the potential of organic farming. This will help strengthen domestic market and support export of organic food.

Organic certification is imperative for adding value to default organic system and enable farms to explore domestic and export markets for fetching better prices.

ASSOCHAM suggests formation of a state organic institution for training, certification, production, packaging, processing and marketing through PPP model for setting up a value chain and consultations especially with bodies like Agricultural and Processed Food Products Export Development Authority (APEDA). Many recommendations on organic certification are also mentioned in the study.

To further facilitate expansion of organic farming sector and to increase its production capacity, information related to new technologies must be imparted to farmers, says ASSOCHAM.

State government must provide rural credit through co-operatives, commercial, regional rural banks thereby playing a proactive role in providing institutional credit to enhance adoption of organic farming in the state.

ASSOCHAM will work along with farmers to promote organic farming at different levels by adopting potential clusters and will convert them into organic farms.

The chamber will organise development programmes to nurture entrepreneurial skills of farmers and will help linking them with certification agencies, markets both domestic and international.

ASSOCHAM also plans to organise product fairs and buyer-seller meetings to enable farmers to get premium pricing for their produce.

 India needs domestic and foreign capital to build infrastructure and re-balance its widening current account deficit, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM). “This decision will send a very negative message to foreign investors,” said secretary general D.S. Rawat.

 “It is a clear case of missed opportunity which would have created over 10 million of new jobs in three years, curbed agricultural wastages, benefited farmers with better remuneration for their produce and brought down prices of many commodities for consumers.”

 Foreign direct investments in many sectors like information and communication technology have resulted in enormous spin-off benefits including introduction of efficiencies and modern management practices besides creating new jobs, he said.

The Special session on “The Economic Impact Of Competition In The Current Turbulent Times” outlined the economic consequences of the ensuing market competitions. This session was chaired by Mr Narendar Pani, Former Editor, The Economic Times and Professor, National Institute of Advanced Sciences. He appreciated that it was the stable financial management practices of corporate houses which had enabled them to not only to survive but also grow. Echoing similar thoughts, Mr T C A Ranganathan, Chairman and Managing Director, Export-Import Bank of India felt that the need of the hour was to think out of the box under challenging times. Mr Bijou Kurien, President and Chief Executive, (Lifestyle), Reliance Retail felt that the current political crisis in India was compounding the current economic situation. As the current difficult times were expected to last for the next four years, innovative practices would be the key to survival saidMr Ganesh Natarajan, Vice Chairman & Chief Executive Officer, Zensar Technologies and Co-Chair, CII Knowledge Council 2011-2012.

The session “Value Chain Quality: Shifting The Focus From Product To Flows” covered the changing organisationalfocus, as part of the new thinking on Quality, to achieve and sustain high levels of competitiveness for growth. It requires organisations to design suitable manufacturing strategies addressing supply chain constraints effectively. It also enables delivery of Value to multiple stakeholders in the Value Chain as different from mere product quality. Issues relating to the integrating of Quality and Growth into Business Strategies; the new emerging definition of Value Chain Quality and the new elements that need to be factored into it and managing the contradictory needs of different stakeholders in a Value Chain were some of the points of discussion. Delivering the Keynote Address Mr C K Ranganathan, Chairman & Managing Director, Cavinkare Pvt Ltd  said that it was important to maintain quality across the complete value chain which if not managed well would create challenges for the organization and cause loss of value to customers. In his Special Address Professor ManMohan S Sodhi, Executive Director, Munjal Global Manufacturing Institute, Indian School of Business and Head of Operations and Supply, Chain Management Group, Cass Business School, City University, London opined that traditional perspective of quality needed to be changed and focus needed to be shifted from product to flows across the complete value chain besides ensuring that existing quality tools needed to be continuously leveraged. In his address Mr Madhu Kannan, Managing Director and Chief Executive Officer, Bombay Stock Exchange (BSE) while mentioning that quality would be the differentiator in the long run, laid emphasis on the creation of Market Infrastructure Institutions.

The panel discussion on “Factory Of The Future: Next Practices” covered the key ingredients that would constitute the roadmap to help manufacturing enterprises to adapt to global competitive pressures by developing the necessary enabling technologies to constitute the “Factories of the Future”. It would meet the increasing global consumer demand for greener, more customised and better quality products through the necessary transition to a demand-driven industry with lower waste generation and energy consumption. Technologies like Nanosciences, Nanotechnologies, Materials and New Production Technologies would be some of the competencies, tools and technology that would be needed for creating Factories of the Future. Mr M Lakshminarayan, Managing Director and Country Manager, Harman International India Pvt Ltd as the Session Chairman speaking on issues pertaining to environment, customer and logistics, wondered if it was possible to move and then sustain a zero defect level. The Keynote Address was delivered by Mr Michael Boneham,President and Managing Director, Ford India who said that the factory of the future should evolve around flexibility, automation, environment sensitivity in an interactive mode, supported by instantaneous feedback mechanism by customers and would essentially be a fun place to work. In his address, Mr Ashok Sharma, Executive Vice President-Agri & Engine, Application Business – Farm Equipment Sector, Mahindra and Mahindra Ltd emphasized the creation of a green factory which would not only reduce waste, but also recycle and reuse it leading to sustainable development. The mind set of the future manufacturing professional needed to be customer centric, with an emphasis on people management, business strategy, world class benchmarks and innovative practices while focusing on people, process and partnerships. Mr M R Sundaresan, Executive Director, Dell India Pvt Ltd spoke on creating brand owners with the support of suppliers and customers with a distinctive shift from “made to stock” to “made to order” as part of the efforts to predict market demands. He also emphasized on the virtual managing and operations of the business supply chain, involving customers in the value chain process to create proximity to customers.                                                                                      

The Panel Discussion on “Achieve Business Excellence Today- Future Proof For Tomorrow” endeavored to bring about a paradigm change in how corporates need to adopt the “Pursuit of Excellence” as their Boardroom agenda. It would help them integrate Sustainable growth into their Business Strategy and not just pursue financial success and profits. Business Excellence would help them embrace the 21st century management concepts and engage their stakeholders more effectively; maintain growth, manage risks, become more capable and yet deliver better value in a sustainable manner. The Keynote Address was delivered by the Session Chairman Mr N G Subramaniam, Executive Vice President & Global Head- Emerging Business, Tata Consultancy Services Ltd who mentioned that leadership should focus on agility, innovation, risk management and succession planning as part of process excellence. He stressed on the importance of self-governance amongst leaders. Mr J J Patel, Vice President- Global Technology and R&D, Crompton Greaves Ltd noted that while business strategy should be in line with technology strategy, the three pillars for sustainability were eco-satisfaction, environmental satisfaction and societal satisfaction.  Mr C K Venkataraman, COO-Jewellery Division, Titan Industries suggested that top management should involve themselves in understanding customers through regular interactions. Mr Puneet Bhatia,  Director – IBSG, Cisco Systems India Pvt Ltd underlined the need for organizations to have a balanced focus and constant benchmarking and not get into a paralysis by analysis syndrome.

The session “Changing Lifestyles In India: Common Opportunities And Challenges Facing Industry” identified the fast changing trend in the industry favouring high ended, technologically superior and branded products resulting from the growing middle classes’ disposable income especially of the younger generation. The resultant “Consumer Preferences” has triggered a wave of product innovations, new distribution networks, business models and marketing strategies. This had led to new price points, increased co- creation and rage for branded products. The session deliberated whether the customer had really become “King”. The Keynote Address was delivered by the Session Chairman Mr Harish Bijoor, Brand-expert and Chief Executive Officer, Harish Bijoor Consults Inc. who while speaking on the significance of understanding young consumers and the need to remain healthy, spoke of the importance of businesses to be green and inclusive. Mr Vishal Bali, Chief Executive Officer, Fortis Healthcare while expressing concern on the nation’s deteriorating health conditions, raised the issue of affordability and accessibility of healthcare facilities. He also mentioned the changing consumer expectations of deliverables. Mr Sidharth Singh, Vice President-Foods, Hindustan Unilever Ltd spoke of the need to design products which consumers love by synthesizing the various taste requirements across the country. The emergence of packaged food items in the wake of more and more women joining the work force was an important issue for marketers. 

The Panel discussion on “Examining How Current Economic Trends Impact Manufacturing”  deliberated on the current economic trends impacting Manufacturing Industry and the strategies being adopted by the Manufacturing Industry to meet the challenges. The debate on the benefits of outsourcing vs in- house production, the need for plants to be geographically close to suppliers and most importantly the need to reconfigure the supply chain besides theorganizational capabilities needed and the changes in management concepts to meet the present challenges and adapt to the new Manufacturing Policy just announced by the Government, were also discussed. The Session Chairman, Mr R Srinivasan, Past Chairman, CII Karnataka while commenting that the current economic trend was highly disturbing, felt that flexibility in management was the need of the hour.  Mr Thimmaiah N P, Managing Director, Honeywell Turbo (India) Pvt Ltd   mentioned the high borrowing cost of capital, globalization and increased competition and demand volatility as the three economic constraints faced by any organization and suggested that while an organization needed to plan as per forecast, it had to produce as per demand. Mr Rajendra R Deshpande, Executive Director, Kirloskar Oil Engines Ltd opined that manufacturers needed to change their focus from improvement to innovation keeping customer delight as their objective. Mr C D Gunjal, Director-Quality Operations-Asia Pacific, Johnson and Johnson noted that while quality was taken for granted, manufacturing should be customer centered.

India having emerged as the world capital for talent and manpower in the recent years, had also shown that employability and skills shortage having emerged as the key challenges that India and Indian Industry would need to tackle with long term and well thought out strategies. The Panel Discussion “India Together: Labour & Employment Issues In India” will discuss the employment related challenges facing the country and how they were being addressed. Issues relating to the key elements of an employee centric business strategy, its capabilities, opportunities and policies and whether enough was being done to leverage the demographic dividend would also be discussed. The Session Chairman Mr C Mahalingam, Executive VP and Chief People Officer, Symphony Services & President, NHRD Network noted that 78% of employees in the unorganized sector had given rise to challenges in the worker rights for decent wages and though employment opportunities were rising, so was unemployment which was pegged at 9.8%. Mr A K  Padmanabhan,President, Centre of Indian Trade Unions speaking on the topic “Indian Worker” felt that labour issues were not discussed seriously either by managements or Government and that the youth needed to be harnessed to achieve employability and growth. Mr Ashok Reddy, Managing Director, TeamLease Services speaking on the topic “Indian Employment Scenario” expected a skill deficit in the future for which employment, employability and education needed to be focused.

The session “Understanding Risks And Leveraging Productivity” focused on certain key elements relating to Risk Management as affecting the Indian corporates. With threats emerging from unexpected sources, and organizations becoming more vulnerable due to dependence on key and often single resources, identifying, evaluating and mitigating risks have become a business imperative for all organizations irrespective of sector and size. ISO Standard on Risk management and the statutory requirements for risk reporting by the SEBI listings clause, mark the growing relevance of risk management in the corporate world. Gaps in Global and Indian practices leading to the creation of an effective Risk Strategy were also discussed. The Keynote Address was delivered by the Session Chairman Mr Glenville da Silva,Chairman, Indian Earthmoving & Construction Industry Association Limited (IECIAL) and Vice President Business Development Asia, Volvo Construction Equipment  said that though we needed to exercise some risk in order to be alive, response to risk was important for recovery. Mr Venkatesh Balasubramanian, Professor, IIT Madras said that low cost automation could reduce the risk of operators. Mr Venkataram Arabolu, Managing Director, British Standards Institute (BSI) said that the absence of a risk management system was the root cause for failure.