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BUSINESS DIGEST Vol No 10 Issue No 7 October 2013 Infrastructure Investment Trusts to de-risk long-term project management
Transcript of BUSINESS DIGEST - FujitsuReal estate asset monetization is the mantra to expand business & reduce...
BUSINESS DIGEST Vol No 10 Issue No 7 October 2013
Infrastructure Investment Truststo de-risk long-term project management
Cover Story
n
n
n
Infrastructure Investment Trusts soon for long term management of projects
FICCI suggests 'annuity' model for road projects
Regulatory authority for road sector in the offing
Chairman-Editorial Board
Dr. A Didar Singh
Member-Editorial Board &
Head-Communications
Vinita Sethi
Editor
Sukumar Sah
Assistant Editor
Sushmita Yadav
Marketing
Animesh Goswami
Advertising & Circulation
PL Joseph
Rakesh Arora
Veena Srivastava
Rahul Siwach
Anjana Rajwar
Design & Art
Visualeyes Communications Pvt. Ltd
Diamond Art Printers
c All Rights are reserved.
No part of this publication may be
reproduced, stored in a retrieval system,
or transmitted in any form or by any
means, Electronic, Mechanical,
Photocopying, Recording and/or
otherwise without the prior written
permission of the Publisher.
Statement about Ownership and other
Particulars about the Journal (FICCI
Business Digest) required to be published
under Rule 8 of the Registrar Central
Rules, 1956.
Printed and Published by Secretary
General on behalf of (or owned by)
Federation of Indian Chambers of
Commerce and Industry, New Delhi and
Published at Federation House Tansen
Marg, New Delhi - 110001
R.N.I No. DELENG/2004/13722
Federation of Indian Chambers of
Commerce and Industry,
Federation House, Tansen Marg,
New Delhi – 110001
Phone: 23738760-70(11 Lines)
Fax: 23320714, 23721504
E-Mail: [email protected]
Website: www.ficci.com
Printed by
We look forward to your feedback
We would like your feedback/comments to enable us to improve
our offering. Write to us at: [email protected] or
4
10
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20
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25
27
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29
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44
From the Secretary General's Desk…
New WTO Chief wants governments to show flexibility to forge consensus on
multilateral trade package
CLEANTECH: Belgium has the expertise to face global challenges
Time to enhance use of clean technology and bring about energy efficiency:
B K Chaturvedi
Businesses need to iron out real impediments in working of MBMs to address climate
change: Secretary(ER) MEA
'Vastra' now home to textile majors; industry headed for an upsurge
The Great Domestic Tourism Bazaar becomes big travel booster
Experts call for effective sports regulation to curb menace of betting
To avoid arbitrary changes in the new Land Act, FICCI suggests institutionalisation of
Rules Advisory Committee
Lack of urban land, finance & governance marring prospects of realty sector
Real estate asset monetization is the mantra to expand business & reduce debt
FICCI study suggests focus on exploration and relaxation of FI norms for loans to small
mine owners
HRD Minister suggests inclusion of minimum number of skilled hands for
manpower-intensive projects
Corporate accountability a pressing issue now
Where to invest: FLO event spotlights real estate, stock market, jewellery and art
International Initiatives
Africa-India Business Council's call to sort out visa and connectivity issuesRegional Comprehensive Economic Partnership Agreement
In the States
Macroeconomic Indicators
n
n
6BUSINESS DIGEST
Vol No 10 Issue No 7 October 2013
Infrastructure Investment Truststo de-risk long-term project management
Cover Story
n
n
n
Infrastructure Investment Trusts soon for long term management of projects
FICCI suggests 'annuity' model for road projects
Regulatory authority for road sector in the offing
Chairman-Editorial Board
Dr. A Didar Singh
Member-Editorial Board &
Head-Communications
Vinita Sethi
Editor
Sukumar Sah
Assistant Editor
Sushmita Yadav
Marketing
Animesh Goswami
Advertising & Circulation
PL Joseph
Rakesh Arora
Veena Srivastava
Rahul Siwach
Anjana Rajwar
Design & Art
Visualeyes Communications Pvt. Ltd
Diamond Art Printers
c All Rights are reserved.
No part of this publication may be
reproduced, stored in a retrieval system,
or transmitted in any form or by any
means, Electronic, Mechanical,
Photocopying, Recording and/or
otherwise without the prior written
permission of the Publisher.
Statement about Ownership and other
Particulars about the Journal (FICCI
Business Digest) required to be published
under Rule 8 of the Registrar Central
Rules, 1956.
Printed and Published by Secretary
General on behalf of (or owned by)
Federation of Indian Chambers of
Commerce and Industry, New Delhi and
Published at Federation House Tansen
Marg, New Delhi - 110001
R.N.I No. DELENG/2004/13722
Federation of Indian Chambers of
Commerce and Industry,
Federation House, Tansen Marg,
New Delhi – 110001
Phone: 23738760-70(11 Lines)
Fax: 23320714, 23721504
E-Mail: [email protected]
Website: www.ficci.com
Printed by
We look forward to your feedback
We would like your feedback/comments to enable us to improve
our offering. Write to us at: [email protected] or
4
10
12
15
17
20
24
25
27
28
29
30
32
34
35
36
40
44
From the Secretary General's Desk…
New WTO Chief wants governments to show flexibility to forge consensus on
multilateral trade package
CLEANTECH: Belgium has the expertise to face global challenges
Time to enhance use of clean technology and bring about energy efficiency:
B K Chaturvedi
Businesses need to iron out real impediments in working of MBMs to address climate
change: Secretary(ER) MEA
'Vastra' now home to textile majors; industry headed for an upsurge
The Great Domestic Tourism Bazaar becomes big travel booster
Experts call for effective sports regulation to curb menace of betting
To avoid arbitrary changes in the new Land Act, FICCI suggests institutionalisation of
Rules Advisory Committee
Lack of urban land, finance & governance marring prospects of realty sector
Real estate asset monetization is the mantra to expand business & reduce debt
FICCI study suggests focus on exploration and relaxation of FI norms for loans to small
mine owners
HRD Minister suggests inclusion of minimum number of skilled hands for
manpower-intensive projects
Corporate accountability a pressing issue now
Where to invest: FLO event spotlights real estate, stock market, jewellery and art
International Initiatives
Africa-India Business Council's call to sort out visa and connectivity issuesRegional Comprehensive Economic Partnership Agreement
In the States
Macroeconomic Indicators
n
n
6BUSINESS DIGEST
Vol No 10 Issue No 7 October 2013
Infrastructure Investment Truststo de-risk long-term project management
4 FICCI Business Digest October 2013n n
here is no gainsaying the fact that India faces a huge infrastructure deficit. This, however, also presents significant Tinvestment opportunities for both domestic and foreign players. Given the scale of this infrastructure gap, it’s no
wonder that India is one of the most attractive markets for companies in the infrastructure business. In short, India’s vast
infrastructure needs are expanding all the time, and this presents enormous business opportunities.
Specifically in the roads and highways sector, in the initial days of PPPs, there was strong optimism on toll-based
concessions and their ability to deliver on the Government’s as well as private sector’s objectives. Now, however, highway
projects are plagued by ‘lower than projected traffic density’ in many stretches, which has seriously impacted the pace of
development of highways through PPPs.
For the projects which are commercially unviable due to uncertain revenue-stream from tolling and hence unable to
attract BOT operators, one option to consider is the Annuity Concession Model, wherein private investors recover their
costs through series of a fixed, periodical payment (‘annuity’) from the Government over the concession period rather
than through toll proceeds. Our cover story delves into these issues in some detail.
FICCI had the privilege to host the new Director General of the World Trade Organization, Roberto Azevêdo, in early
October. Azevêdo was stern as he spelt out the way forward in trade negotiations leading up the Bali Ministerial in
December this year. “It was imperative”, he said, “that trade ministers actively engage with one another in the weeks
ahead to find a common ground, failing which plurilateral, multilateral and bilateral agreements will proliferate and
many countries will be denied the benefits of a rule-based approach to trade liberalisation.” We bring you a report in the
pages that follow.
FICCI believes that clean technology will be the answer to a sustainable future and building a Cleantech ecosystem will be
the solution to harnessing the potential for clean technology interventions at all levels of enterprise. As an industry body
it should be our endeavour to help government and industry to build an ecosystem to nourish and nurture the
development and diffusion of clean technologies, in industry, in agriculture, in service sectors, in infrastructure. There is
little doubt that clean technology will be the most important denominator in the coming years and will see greater
impetus from government, industry and the wider community of stakeholders. Read the report on the first India
International Cleantech Summit.
With the recent passage of the Companies Bill, which stipulates a spend of two per cent of net profits towards CSR,
corporate social responsibility will, indeed, become the core business operations of companies. Considering today’s
challenging and uncertain business environment, and with increased legislative and regulatory requirements, there is a
greater need for organisations to understand and address fraud and corruption risks, as well as being able to suitably
respond to these challenges. India is perhaps one of the first countries in the world to have mandated this, and it paves
the way for the corporate sector to play a big role in shaping communities and improving the national economy. A FICCI
report on ‘Corporate Resiliency: Managing the Growing Risk of Fraud and Corruption’ covers vital information on the link
between ethics and business, existing regulatory regimes in India and steps to combat fraud in business.
We welcome your feedback and suggestions.
A Didar Singh
From the Secretary General’s Desk…
4 FICCI Business Digest October 2013n n
here is no gainsaying the fact that India faces a huge infrastructure deficit. This, however, also presents significant Tinvestment opportunities for both domestic and foreign players. Given the scale of this infrastructure gap, it’s no
wonder that India is one of the most attractive markets for companies in the infrastructure business. In short, India’s vast
infrastructure needs are expanding all the time, and this presents enormous business opportunities.
Specifically in the roads and highways sector, in the initial days of PPPs, there was strong optimism on toll-based
concessions and their ability to deliver on the Government’s as well as private sector’s objectives. Now, however, highway
projects are plagued by ‘lower than projected traffic density’ in many stretches, which has seriously impacted the pace of
development of highways through PPPs.
For the projects which are commercially unviable due to uncertain revenue-stream from tolling and hence unable to
attract BOT operators, one option to consider is the Annuity Concession Model, wherein private investors recover their
costs through series of a fixed, periodical payment (‘annuity’) from the Government over the concession period rather
than through toll proceeds. Our cover story delves into these issues in some detail.
FICCI had the privilege to host the new Director General of the World Trade Organization, Roberto Azevêdo, in early
October. Azevêdo was stern as he spelt out the way forward in trade negotiations leading up the Bali Ministerial in
December this year. “It was imperative”, he said, “that trade ministers actively engage with one another in the weeks
ahead to find a common ground, failing which plurilateral, multilateral and bilateral agreements will proliferate and
many countries will be denied the benefits of a rule-based approach to trade liberalisation.” We bring you a report in the
pages that follow.
FICCI believes that clean technology will be the answer to a sustainable future and building a Cleantech ecosystem will be
the solution to harnessing the potential for clean technology interventions at all levels of enterprise. As an industry body
it should be our endeavour to help government and industry to build an ecosystem to nourish and nurture the
development and diffusion of clean technologies, in industry, in agriculture, in service sectors, in infrastructure. There is
little doubt that clean technology will be the most important denominator in the coming years and will see greater
impetus from government, industry and the wider community of stakeholders. Read the report on the first India
International Cleantech Summit.
With the recent passage of the Companies Bill, which stipulates a spend of two per cent of net profits towards CSR,
corporate social responsibility will, indeed, become the core business operations of companies. Considering today’s
challenging and uncertain business environment, and with increased legislative and regulatory requirements, there is a
greater need for organisations to understand and address fraud and corruption risks, as well as being able to suitably
respond to these challenges. India is perhaps one of the first countries in the world to have mandated this, and it paves
the way for the corporate sector to play a big role in shaping communities and improving the national economy. A FICCI
report on ‘Corporate Resiliency: Managing the Growing Risk of Fraud and Corruption’ covers vital information on the link
between ethics and business, existing regulatory regimes in India and steps to combat fraud in business.
We welcome your feedback and suggestions.
A Didar Singh
From the Secretary General’s Desk…
6 n FICCI Business Digest n 2013October
t COVER STORY
October 2013 n n 7FICCI Business Digest
t COVER STORY
from overseas and welcomed the
Canadian High Commissioner to
India, Stewart Beck's offer to bring
in pension funds to develop
Indian's infrastructure sector. Such
initiatives, he said, would
encourage Indian investors to
follow suit. Currently, individual
investors fight shy of allowing
investment of their long term
savings in the bond market for lack
of appetite.
He said that it was wrong to
conclude that the PPP in
infrastructure projects was a failure.
“An assessment of the PPP projects
showed a mixed picture. In fact, half
of such projects were doing well,”
he emphasized.
Dr. Mayaram also stressed the
the projects over a longer period of
time to do away with the current
practice of private players turning
into developers whose interest is
limited to merely contracting for
construction and are not attuned to
a 25-year relationship with the
Government. “A major reason why
some PPP projects in the
infrastructure sector have run into
problems is that many private
partners did not price the risk in
projects over a 25-year time frame,”
Dr. Mayaram said, adding that even
officers in the public sector do not
have the capacity to carve out a
long term relationship with the
private sector.
Dr. Mayaram underlined the
need to engage with pension funds
n a bid to stimulate
investments, develop and build Iinfrastructure projects and
nurture a strong long term
relationship between the project
sponsoring authority and the
private partner, the Government
will launch Infrastructure
Investment Trusts by November
end this year.
This was stated by Dr. Arvind
Mayaram, Secretary, Department of
Economic Affairs, Ministry of
Finance, while speaking at FICCI's
5th India Infrastructure Summit
2013 in New Delhi on September
23, 2013.
Like the Real Estate Investment
Trusts (REITs), the Infrastructure
Investment Trusts (IITs) will manage
Infrastructure Investment Trusts soon for long term management of projects
“We will continue to move forward,
continue to deepen the PPP universe and
private sector will have to continue to
play an increasingly important role in
infrastructure development in the
country.”
Dr. Arvind Mayaram, Secretary, Department
of Economic Affairs, Ministry of Finance
“I think it is extremely
important that we
invite and engage
with pension funds
from outside who
understand, because
once they come in, I
believe that the Indian
investors will follow
suit because they will
have much greater
confidence in what is
happening in the
market.”
B K Chaturvedi, Member, Planning
Commission, Government of India (right)
being welcomed by Dr. Arvind Mayaram,
Secretary, Department of Economic
Affairs, Ministry of Finance at the India
Infrastructure Summit in New Delhi. Also
seen are Hari Sankaran, Chairman, FICCI
Infrastructure Committee and Vice-
Chairman & MD, Infrastructure Leasing nd& Financial Services Ltd. (2 from left)
and P K Malhotra, Deputy MD, SBI.
“We need to develop the corporate
bond market. It is a little more
complex than the government
simply making a policy decision
because it also needs the appetite in
the minds of the investor. We have
allowed the Employees Provident
Fund for instance to invest a certain
percentage of their fund into
infrastructure projects. But the
question is, the board is not willing
to take that risk because the
employees don't have the appetite
to take that risk.”
6 n FICCI Business Digest n 2013October
t COVER STORY
October 2013 n n 7FICCI Business Digest
t COVER STORY
from overseas and welcomed the
Canadian High Commissioner to
India, Stewart Beck's offer to bring
in pension funds to develop
Indian's infrastructure sector. Such
initiatives, he said, would
encourage Indian investors to
follow suit. Currently, individual
investors fight shy of allowing
investment of their long term
savings in the bond market for lack
of appetite.
He said that it was wrong to
conclude that the PPP in
infrastructure projects was a failure.
“An assessment of the PPP projects
showed a mixed picture. In fact, half
of such projects were doing well,”
he emphasized.
Dr. Mayaram also stressed the
the projects over a longer period of
time to do away with the current
practice of private players turning
into developers whose interest is
limited to merely contracting for
construction and are not attuned to
a 25-year relationship with the
Government. “A major reason why
some PPP projects in the
infrastructure sector have run into
problems is that many private
partners did not price the risk in
projects over a 25-year time frame,”
Dr. Mayaram said, adding that even
officers in the public sector do not
have the capacity to carve out a
long term relationship with the
private sector.
Dr. Mayaram underlined the
need to engage with pension funds
n a bid to stimulate
investments, develop and build Iinfrastructure projects and
nurture a strong long term
relationship between the project
sponsoring authority and the
private partner, the Government
will launch Infrastructure
Investment Trusts by November
end this year.
This was stated by Dr. Arvind
Mayaram, Secretary, Department of
Economic Affairs, Ministry of
Finance, while speaking at FICCI's
5th India Infrastructure Summit
2013 in New Delhi on September
23, 2013.
Like the Real Estate Investment
Trusts (REITs), the Infrastructure
Investment Trusts (IITs) will manage
Infrastructure Investment Trusts soon for long term management of projects
“We will continue to move forward,
continue to deepen the PPP universe and
private sector will have to continue to
play an increasingly important role in
infrastructure development in the
country.”
Dr. Arvind Mayaram, Secretary, Department
of Economic Affairs, Ministry of Finance
“I think it is extremely
important that we
invite and engage
with pension funds
from outside who
understand, because
once they come in, I
believe that the Indian
investors will follow
suit because they will
have much greater
confidence in what is
happening in the
market.”
B K Chaturvedi, Member, Planning
Commission, Government of India (right)
being welcomed by Dr. Arvind Mayaram,
Secretary, Department of Economic
Affairs, Ministry of Finance at the India
Infrastructure Summit in New Delhi. Also
seen are Hari Sankaran, Chairman, FICCI
Infrastructure Committee and Vice-
Chairman & MD, Infrastructure Leasing nd& Financial Services Ltd. (2 from left)
and P K Malhotra, Deputy MD, SBI.
“We need to develop the corporate
bond market. It is a little more
complex than the government
simply making a policy decision
because it also needs the appetite in
the minds of the investor. We have
allowed the Employees Provident
Fund for instance to invest a certain
percentage of their fund into
infrastructure projects. But the
question is, the board is not willing
to take that risk because the
employees don't have the appetite
to take that risk.”
8 FICCI Business Digestn n October 2013
t COVER STORY
October 2013 9n nFICCI Business Digest
t COVER STORY
people to protect their cyber
systems. Canada can get involved
in training people through
vocational education to equip such
a vast army of cyber security
specialists, he said.
Subbu Narayanswamy, Director,
McKinsey & Company said that to
make better decisions on selection
of PPP projects, India could set up a
national level agency (similar to
Korea's Public and Private
Infrastructure Investment
Management Center (PIMAC) to
enhance efficiency and
transparency in infrastructure
development by pressure testing
project's business case and
reviewing past PPP project
performance.
For streamlining project delivery,
it could also set up IIT-level project
management institutes to create a
world class cadre of project
directors and strengthen dispute
resolution mechanism by setting up
dedicated fast track courts for
infrastructure related cases (similar
to Technology and Construction
court in England).
India could also launch
transformation programme to
improve operations and utilisation
of existing assets in National
Highway Authority of India, Indian
Railways, Airport Authority of India,
JNPT, etc and in select water
distribution and electricity
distribution boards,
Narayanswamy said.
Hari Sankaran, Chairman, FICCI
Infrastructure Committee and Vice-
Chairman & MD, Infrastructure
Leasing & Financial Services
Limited and Dr. A Didar Singh,
Secretary General, FICCI, also
shared their perspectives on the
subject. n
need for incentivizing Infrastructure
Debt Funds (IDFs). There are three
in operation today, many more are
expected to be formed. “I believe if
the IDFs really take off which I think
they will, there are already three
which are in operation, more will
come, then we will begin to see on
the debt side, the availability of
large amount of money on a long-
term financing basis for
infrastructure and which will
strengthen infrastructure in a big
way,” he declared.
Stewart Beck outlined four areas
where Canada could collaborate
with India for successful PPP
projects. These are food security,
energy security, education and
infrastructure. “We have one of the
strongest pension system in the
world and are willing to deploy
these in infrastructure building,” he
said.
Alluding to cyber security, Beck
said that India would need five lakh
Dr. Arvind Mayaram, Secretary, Department of Economic Affairs, Ministry of Finance, addressing the India Infrastructure Summit 2013.
Also seen on the dais are (L to R): Dr. A Didar Singh, Secretary General, FICCI; Stewart Beck , Canadian High Commissioner to India;
Hari Sankaran, Chairman, FICCI Infrastructure Committee and Vice-Chairman & MD, Infrastructure Leasing & Financial Services Ltd.
and Subbu Narayanswamy, Director, McKinsey & Company.
FICCI suggests 'annuity' model
for road projectsFICCI has suggested an 'annuity' model for road projects which are
commercially unviable due to uncertain revenue-stream from tolling
and hence unable to attract BOT operators. In the Annuity Concession
model, private investors recover their costs through series of a fixed,
periodical payment ('annuity') from the Government over the
concession period rather than through toll proceeds.
The Chamber has pointed out that in the initial days of PPPs in the
roads and highways sector, there was strong optimism on toll-based
concessions and their ability to deliver on the Government's as well as
private sector's objectives. However, several highway projects are
plagued by 'lower than projected traffic density' in many stretches,
which has seriously impacted the pace of development of highways
through PPPs.
The main advantage of the Annuity route is its implementability on
those stretches where the projected revenue based on traffic is not
sufficient for its viability on BOT (Toll) basis, and when the project is to
be taken up for various important considerations such as strategic
reasons or regional development and so on. n
Regulatory authority for road sector in the offing
The Government has decided to constitute a regulatory authority for the
road sector as was announced by the Finance Minister in his Budget
Speech of 2013. The regulator will perform an adjudicatory and advisory
role and would have financial, administrative and operational autonomy,
said Vijay Chhibber, Secretary, Ministry of Road Transport & Highways,
Government of India, while speaking at a session on 'Roads & Highways –
Hurdles & Solutions' during the summit.
The chairperson of the session, B K Chaturvedi, Member, Planning
Commission, Government of India, said that the roads and highways sector
witnessed a comparatively slow growth in the last five years owing to the
global economic downturn and domestic issues such as delays in getting
the relevant clearances for constructing roads, unclear mandate on
different taxes levied in various states and limited number of developers in
the country.
K K Kapila, Co-Chairman, FICCI Infrastructure Committee and CMD,
Intercontinental Consultants and Technocrats Pvt Ltd., underlined some of
the major issues that confront the sector such as stressed financial position
of the concessioners, lack of policy support, escalating cost of
commodities, pending disputes resulting in locking up of funds and delays
in acquiring various clearances for construction increasing the cost of
project.
D K Sen, Executive Vice President & Head - Transportation Infrastructure,
Larsen & Toubro Limited, said that the Indian economy was grappling with
unprecedented economic challenges such as rising inflation rate, decade
low annual GDP growth rate, low value of Indian rupee, sinking sentiments
of investors and balance of payment issues. For the road sector to grow, he
suggested that 80 per cent land acquisition should be completed before
the bidding opens, there should be single window clearance for all permits,
proper appreciation and due diligence and feedback from stakeholders
during the DPR, encourage innovations and value engineering by passing
on the first time saving to innovator and uniform taxation policy to be
formulated to realise exemption in true spirit.
Sudhir R Hoshing, CEO – Roads Business, Reliance Infrastructure Limited,
said in the true spirit of public private partnership, risk and rewards needs
to be shared by both the parties for ensuring effective implementation.
Stalled infrastructure projects must be fast tracked. Issues relating to
undue delay in land acquisition and statutory clearances causing severe
financial strain on the projects and developers asking for rescheduling of
premium to have some relief from financial distress must be addressed
without further delay.
Sanjeev Ghai, Chief General Manager, IIFCL, stated that the number of
developers was limited and there was a need to increase the number to
achieve the target of investing $1 trillion on infrastructure in the 12th Plan
period. The work done so far under the PPP model had yielded satisfactory
results but the partnership element has been missing, hence closer
cooperation was needed between the public and private bodies. n
8 FICCI Business Digestn n October 2013
t COVER STORY
October 2013 9n nFICCI Business Digest
t COVER STORY
people to protect their cyber
systems. Canada can get involved
in training people through
vocational education to equip such
a vast army of cyber security
specialists, he said.
Subbu Narayanswamy, Director,
McKinsey & Company said that to
make better decisions on selection
of PPP projects, India could set up a
national level agency (similar to
Korea's Public and Private
Infrastructure Investment
Management Center (PIMAC) to
enhance efficiency and
transparency in infrastructure
development by pressure testing
project's business case and
reviewing past PPP project
performance.
For streamlining project delivery,
it could also set up IIT-level project
management institutes to create a
world class cadre of project
directors and strengthen dispute
resolution mechanism by setting up
dedicated fast track courts for
infrastructure related cases (similar
to Technology and Construction
court in England).
India could also launch
transformation programme to
improve operations and utilisation
of existing assets in National
Highway Authority of India, Indian
Railways, Airport Authority of India,
JNPT, etc and in select water
distribution and electricity
distribution boards,
Narayanswamy said.
Hari Sankaran, Chairman, FICCI
Infrastructure Committee and Vice-
Chairman & MD, Infrastructure
Leasing & Financial Services
Limited and Dr. A Didar Singh,
Secretary General, FICCI, also
shared their perspectives on the
subject. n
need for incentivizing Infrastructure
Debt Funds (IDFs). There are three
in operation today, many more are
expected to be formed. “I believe if
the IDFs really take off which I think
they will, there are already three
which are in operation, more will
come, then we will begin to see on
the debt side, the availability of
large amount of money on a long-
term financing basis for
infrastructure and which will
strengthen infrastructure in a big
way,” he declared.
Stewart Beck outlined four areas
where Canada could collaborate
with India for successful PPP
projects. These are food security,
energy security, education and
infrastructure. “We have one of the
strongest pension system in the
world and are willing to deploy
these in infrastructure building,” he
said.
Alluding to cyber security, Beck
said that India would need five lakh
Dr. Arvind Mayaram, Secretary, Department of Economic Affairs, Ministry of Finance, addressing the India Infrastructure Summit 2013.
Also seen on the dais are (L to R): Dr. A Didar Singh, Secretary General, FICCI; Stewart Beck , Canadian High Commissioner to India;
Hari Sankaran, Chairman, FICCI Infrastructure Committee and Vice-Chairman & MD, Infrastructure Leasing & Financial Services Ltd.
and Subbu Narayanswamy, Director, McKinsey & Company.
FICCI suggests 'annuity' model
for road projectsFICCI has suggested an 'annuity' model for road projects which are
commercially unviable due to uncertain revenue-stream from tolling
and hence unable to attract BOT operators. In the Annuity Concession
model, private investors recover their costs through series of a fixed,
periodical payment ('annuity') from the Government over the
concession period rather than through toll proceeds.
The Chamber has pointed out that in the initial days of PPPs in the
roads and highways sector, there was strong optimism on toll-based
concessions and their ability to deliver on the Government's as well as
private sector's objectives. However, several highway projects are
plagued by 'lower than projected traffic density' in many stretches,
which has seriously impacted the pace of development of highways
through PPPs.
The main advantage of the Annuity route is its implementability on
those stretches where the projected revenue based on traffic is not
sufficient for its viability on BOT (Toll) basis, and when the project is to
be taken up for various important considerations such as strategic
reasons or regional development and so on. n
Regulatory authority for road sector in the offing
The Government has decided to constitute a regulatory authority for the
road sector as was announced by the Finance Minister in his Budget
Speech of 2013. The regulator will perform an adjudicatory and advisory
role and would have financial, administrative and operational autonomy,
said Vijay Chhibber, Secretary, Ministry of Road Transport & Highways,
Government of India, while speaking at a session on 'Roads & Highways –
Hurdles & Solutions' during the summit.
The chairperson of the session, B K Chaturvedi, Member, Planning
Commission, Government of India, said that the roads and highways sector
witnessed a comparatively slow growth in the last five years owing to the
global economic downturn and domestic issues such as delays in getting
the relevant clearances for constructing roads, unclear mandate on
different taxes levied in various states and limited number of developers in
the country.
K K Kapila, Co-Chairman, FICCI Infrastructure Committee and CMD,
Intercontinental Consultants and Technocrats Pvt Ltd., underlined some of
the major issues that confront the sector such as stressed financial position
of the concessioners, lack of policy support, escalating cost of
commodities, pending disputes resulting in locking up of funds and delays
in acquiring various clearances for construction increasing the cost of
project.
D K Sen, Executive Vice President & Head - Transportation Infrastructure,
Larsen & Toubro Limited, said that the Indian economy was grappling with
unprecedented economic challenges such as rising inflation rate, decade
low annual GDP growth rate, low value of Indian rupee, sinking sentiments
of investors and balance of payment issues. For the road sector to grow, he
suggested that 80 per cent land acquisition should be completed before
the bidding opens, there should be single window clearance for all permits,
proper appreciation and due diligence and feedback from stakeholders
during the DPR, encourage innovations and value engineering by passing
on the first time saving to innovator and uniform taxation policy to be
formulated to realise exemption in true spirit.
Sudhir R Hoshing, CEO – Roads Business, Reliance Infrastructure Limited,
said in the true spirit of public private partnership, risk and rewards needs
to be shared by both the parties for ensuring effective implementation.
Stalled infrastructure projects must be fast tracked. Issues relating to
undue delay in land acquisition and statutory clearances causing severe
financial strain on the projects and developers asking for rescheduling of
premium to have some relief from financial distress must be addressed
without further delay.
Sanjeev Ghai, Chief General Manager, IIFCL, stated that the number of
developers was limited and there was a need to increase the number to
achieve the target of investing $1 trillion on infrastructure in the 12th Plan
period. The work done so far under the PPP model had yielded satisfactory
results but the partnership element has been missing, hence closer
cooperation was needed between the public and private bodies. n
10 n FICCI Business Digest n 2013October
he Director General of World
Trade Organization (WTO), TRoberto Azevêdo, has
underlined the need for national
governments to show flexibility and
reasonability to evolve a consensus
on a multilateral trade package that
is 'meaningful and doable'.
Addressing a seminar on 'WTO,
Multilateral Trading System and Bali
Ministerial: Where Do We Stand &
The Way Forward' organised by
FICCI and Centre for WTO Studies
in New Delhi on October 7, 2013,
Roberto Azevêdo, Director General of WTO
with Naina Lal Kidwai, President of FICCI.
New wants governments to show to forge consensus on
WTO Chiefflexibility
multilateral trade package
It was imperative that
trade ministers actively
engage with one another
in the weeks ahead to find
a common ground, failing
which plurilateral,
multilateral and bilateral
agreements will proliferate
and many countries will be
denied the benefits of a
rule-based approach to
trade liberalisation.
September 2013 n n 17FICCI Business Digest
WTO-led multilateral trading system," he said.
"Although Bali is a priority, it is not the end of
the road. We are talking about taking the first
step. At Bali, what we want is a long term
strategy to govern global trade for the benefit of
all nations," he emphasised.
The WTO Chief spoke about three major
challenges for trade negotiators - trade
facilitation, agriculture and development issues.
He described trade facilitation as a challenging
area and ways were being devised to build in
predictability in trade. Various estimates show
that customs procedures alone formed 10 per
cent of the transaction costs of trade, he said,
and added that even a small reduction in this
number would add to billions of dollars to global
trade.
Azevêdo admitted that the special and
differential treatment accorded by the developed
countries to the less developed ones had
generated considerable amount of tension
between the donors and beneficiaries. While the
donors insist that technical assistance provided
by them is well targeted, the beneficiaries want
to avail of the assistance without providing a
commitment on implementation.
On the question of food security, an issue of
utmost significance to India, the WTO Chief
mentioned that there is a growing recognition
today that this is a legitimate issue. Although
there is no solution yet, the trade negotiators are
trying to figure out how to simplify this
contentious issue.
Expressing optimism on a balanced outcome
at the Bali ministerial, the WTO Chief said, "A
balanced agreement would emerge when at the
end of the day, everyone said we gave more than
we could and got less than what we deserve."
The seminar was also addressed by Naina Lal
Kidwai, President, FICCI, who flagged of issues of
concern to industry and Abhijit Das, Professor
and Head, Centre for WTO Studies, spoke of the
need to protect the vulnerable sections of the
economy while at the same time aiming for a
consensus on a rule-based multilateral trading
system governed by the WTO. n
Azevêdo said that time was running
out and it was imperative that trade
ministers actively engage with one
another in the weeks ahead to find
a common ground, failing which
plurilateral, multilateral and bilateral
agreements will proliferate and
many countries will be denied the
benefits of a rule-based approach to
trade liberalisation.
"The markets will then open on
non-MFN basis and the ticket to
admission into these agreements
will be far more expensive than a
10 n FICCI Business Digest n 2013October
he Director General of World
Trade Organization (WTO), TRoberto Azevêdo, has
underlined the need for national
governments to show flexibility and
reasonability to evolve a consensus
on a multilateral trade package that
is 'meaningful and doable'.
Addressing a seminar on 'WTO,
Multilateral Trading System and Bali
Ministerial: Where Do We Stand &
The Way Forward' organised by
FICCI and Centre for WTO Studies
in New Delhi on October 7, 2013,
Roberto Azevêdo, Director General of WTO
with Naina Lal Kidwai, President of FICCI.
New wants governments to show to forge consensus on
WTO Chiefflexibility
multilateral trade package
It was imperative that
trade ministers actively
engage with one another
in the weeks ahead to find
a common ground, failing
which plurilateral,
multilateral and bilateral
agreements will proliferate
and many countries will be
denied the benefits of a
rule-based approach to
trade liberalisation.
September 2013 n n 17FICCI Business Digest
WTO-led multilateral trading system," he said.
"Although Bali is a priority, it is not the end of
the road. We are talking about taking the first
step. At Bali, what we want is a long term
strategy to govern global trade for the benefit of
all nations," he emphasised.
The WTO Chief spoke about three major
challenges for trade negotiators - trade
facilitation, agriculture and development issues.
He described trade facilitation as a challenging
area and ways were being devised to build in
predictability in trade. Various estimates show
that customs procedures alone formed 10 per
cent of the transaction costs of trade, he said,
and added that even a small reduction in this
number would add to billions of dollars to global
trade.
Azevêdo admitted that the special and
differential treatment accorded by the developed
countries to the less developed ones had
generated considerable amount of tension
between the donors and beneficiaries. While the
donors insist that technical assistance provided
by them is well targeted, the beneficiaries want
to avail of the assistance without providing a
commitment on implementation.
On the question of food security, an issue of
utmost significance to India, the WTO Chief
mentioned that there is a growing recognition
today that this is a legitimate issue. Although
there is no solution yet, the trade negotiators are
trying to figure out how to simplify this
contentious issue.
Expressing optimism on a balanced outcome
at the Bali ministerial, the WTO Chief said, "A
balanced agreement would emerge when at the
end of the day, everyone said we gave more than
we could and got less than what we deserve."
The seminar was also addressed by Naina Lal
Kidwai, President, FICCI, who flagged of issues of
concern to industry and Abhijit Das, Professor
and Head, Centre for WTO Studies, spoke of the
need to protect the vulnerable sections of the
economy while at the same time aiming for a
consensus on a rule-based multilateral trading
system governed by the WTO. n
Azevêdo said that time was running
out and it was imperative that trade
ministers actively engage with one
another in the weeks ahead to find
a common ground, failing which
plurilateral, multilateral and bilateral
agreements will proliferate and
many countries will be denied the
benefits of a rule-based approach to
trade liberalisation.
"The markets will then open on
non-MFN basis and the ticket to
admission into these agreements
will be far more expensive than a
12 FICCI Business Digest October 2013n n
employs tens of thousands of
people.
According to official European
statistics, 75% of European
cleantech exports come from five
countries: Germany, United
Kingdom, France, Italy and, indeed,
Belgium.
Renewable Energy
Belgium made a commitment to
increase its share of renewable
energy to 13% of the total
energy generated by 2020. Given
the very limited potential of
hydroelectric energy in Belgium –
due the country's topography -, the
shift to green energy is achieved
essentially by wind turbines built
onshore as well as offshore in the
North Sea, followed by solar energy
(photovoltaic panels), and biomass
energy.
In recent years, public authorities
have implemented policies
encouraging investments in green
energy through financial incentives.
Public investment agencies such as
the GIMV in Flanders or the SRIW
in Wallonia also play a role in
encouraging this approach. At the
end of 2009, Belgium ranked eighth
in the WWF world classification of
technology sales linked to green
energy.
From wind to turbines...
Belgium has no petrol or precious
metals, but its temperate climate
means that it is very often swept by
strong winds. While it continues to
exploit the potential for onshore
wind turbines on the flat regions or
on the crest of the Ardennes, the
country plays also a pioneering role
in the use of offshore wind
turbines, in the North Sea.
Sandbanks off coastal cities
Ostend and Zeebruges are the
setting projects for seven wind
turbine farms that should
produce 25% of all renewable
energy in Belgium by 2020, or
almost 4% of the total energy
consumed in Belgium. AC-Power
and Belwind currently have around
60 wind turbines in operation.
These ambitious projects have
enabled a whole ecosystem of
Belgian companies to acquire the
precious experience required to set
up similar projects abroad: these
companies include talk to Tractebel
Engineering (engineering), CFE and
Fabricom (civil engineering) or
DEME (dredging).
But other Belgian champions
have not waited for offshore
developments in order to build up
a reputation abroad. Several cases
stand out: Hansen Transmissions
(world leader in the manufacture of
gearboxes for wind turbines),
Turbowins (small wind turbines) and
Electrawinds (independent supplier
of green electricity and owner of
wind farms all over the world).
CLEANTECH: Belgium has the expertise required to take up global challengesIt comes as no surprise to observers of the green technology market: Belgium has a concentration of 'clean tech' leaders who are already taking up environmental and climate challenges around the world. Belgian expertise is observed in a wide range of market niches and in particular in water treatment, soil decontamination and offshore wind turbines.
elgium is one of the most
industrialised countries in Bthe world; hence its very
rapid understanding of the
importance of moving towards an
environmentally friendly industrial
landscape. The major national
industrial companies - in the steel,
chemical, glass or automobile
sectors – have, under pressure from
public opinion and a strict
European regulatory framework,
acquired cutting-edge expertise in
the treatment of waste, recycling
and production processes that
pollute less. The result of this green
shift has generated a whole range
of environment management
companies with strong economic
potential, extending their reach far
beyond national and European
borders. This strong growth sector
Recybois, which has created an
integrated energy cogeneration
process (heat and electricity) from
saw dust. Biomass cogeneration is
also the specialty of Xylowat a
supplier of green energy, which
already supplies a number of public
institutions (hospitals, schools, etc.)
with 100% renewable energy. The
company now exports its expertise
to France and England in particular.
Vynche Energietechniek is another
cutting edge Belgian company that
specializes in generating energy
from industrial biomass.
BioWanze is the biggest producer
of bioethanol in Belgium that is
made from beetroot and cereals.
Water treatment
Water is an indispensable
element in the quality of life of
entire populations, and a major
political issue. Industrial
development, particularly in
emerging countries, puts certain
groundwater resources in danger.
We should focus on addressing
these situations by using new
technologies that are increasingly
effective and cheap for the
treatment and purification of waste
water. A number of Belgian
companies have mastered the art
of recycling wastewater.
Waterleau is one of the rare
companies in the world to manage
complete water treatment
projects for public and private
clients. The company – that has
managed around 250 projects
around the world so far – uses
cutting-edge water purification
techniques (last generation
membranes integrated into
bioreactors) and specializes in
generating energy from the
biomass produced by sewage.
Belgian construction company
Besix has also ventured into the
international arena. Its branch
Sanotec, in collaboration with
another Belgian company, Six
Construct, has won important
contract for the construction of
water purification stations in the
united Arab Emirate of Abu Dhabi.
This contract was named "water
deal of the year" for its level of
quality and strict requirements.
The wastewater treatment market
is complex and features a number
of innovative niches in which young
Belgian companies have acquired
an enviable position; such as
AppliTek (Real time monitoring of
water quality), Keppel Seghers
(desalination and sewage
treatment) or Vandezande
(mechanical technology for
purification and pumping stations).
A major supplier of
electromechanical equipment and
engineering solutions for the
treatment of wastewater is Suez
Environment, a branch of the
energy group Suez.
Soil decontamination
The new clean-tech economy
involves eliminating those scars left
behind by the preceding Industrial
Revolution that date back to the
19th century. Belgium, as the
second most industrialised country
in Europe, stood long at the
...to solar energy
The export potential of Belgian
companies that specialise in the
manufacture of photovoltaic cells
or assembling solar panels using is
in inverse proportion to the
amount of sunshine in the country.
The rising stars of this fast
growing sector include
Photovoltech, a manufacturer of
photovoltaic cells whose
shareholders include the energy
groups Total and Suez, or
companies from the building sector
who have integrated solar
innovations into their products,
such as Koramic (tiles), Recticel
(polyurethane insulating foam) and
Eternet (roof covering).
Upstream of solar panel
production processes, we have the
example of an important Belgian
industrial player - Umicore - that
produces new components using
raw materials such as silica or
germanium to improve the
ecological efficiency of solar cells.
...and biomass
Ever-increasing energy prices
have drawn growing attention to
energy that is produced from plant
waste, what we call biomass. The
most well-known form of biomass
is the residue from wood. A
number of players have emerged in
the south of Belgium with its vast
swathes of forest, who specialize in
promoting the advantages of
using wood residues to produce
energy. One such example is
October 2013 13n nFICCI Business Digest
12 FICCI Business Digest October 2013n n
employs tens of thousands of
people.
According to official European
statistics, 75% of European
cleantech exports come from five
countries: Germany, United
Kingdom, France, Italy and, indeed,
Belgium.
Renewable Energy
Belgium made a commitment to
increase its share of renewable
energy to 13% of the total
energy generated by 2020. Given
the very limited potential of
hydroelectric energy in Belgium –
due the country's topography -, the
shift to green energy is achieved
essentially by wind turbines built
onshore as well as offshore in the
North Sea, followed by solar energy
(photovoltaic panels), and biomass
energy.
In recent years, public authorities
have implemented policies
encouraging investments in green
energy through financial incentives.
Public investment agencies such as
the GIMV in Flanders or the SRIW
in Wallonia also play a role in
encouraging this approach. At the
end of 2009, Belgium ranked eighth
in the WWF world classification of
technology sales linked to green
energy.
From wind to turbines...
Belgium has no petrol or precious
metals, but its temperate climate
means that it is very often swept by
strong winds. While it continues to
exploit the potential for onshore
wind turbines on the flat regions or
on the crest of the Ardennes, the
country plays also a pioneering role
in the use of offshore wind
turbines, in the North Sea.
Sandbanks off coastal cities
Ostend and Zeebruges are the
setting projects for seven wind
turbine farms that should
produce 25% of all renewable
energy in Belgium by 2020, or
almost 4% of the total energy
consumed in Belgium. AC-Power
and Belwind currently have around
60 wind turbines in operation.
These ambitious projects have
enabled a whole ecosystem of
Belgian companies to acquire the
precious experience required to set
up similar projects abroad: these
companies include talk to Tractebel
Engineering (engineering), CFE and
Fabricom (civil engineering) or
DEME (dredging).
But other Belgian champions
have not waited for offshore
developments in order to build up
a reputation abroad. Several cases
stand out: Hansen Transmissions
(world leader in the manufacture of
gearboxes for wind turbines),
Turbowins (small wind turbines) and
Electrawinds (independent supplier
of green electricity and owner of
wind farms all over the world).
CLEANTECH: Belgium has the expertise required to take up global challengesIt comes as no surprise to observers of the green technology market: Belgium has a concentration of 'clean tech' leaders who are already taking up environmental and climate challenges around the world. Belgian expertise is observed in a wide range of market niches and in particular in water treatment, soil decontamination and offshore wind turbines.
elgium is one of the most
industrialised countries in Bthe world; hence its very
rapid understanding of the
importance of moving towards an
environmentally friendly industrial
landscape. The major national
industrial companies - in the steel,
chemical, glass or automobile
sectors – have, under pressure from
public opinion and a strict
European regulatory framework,
acquired cutting-edge expertise in
the treatment of waste, recycling
and production processes that
pollute less. The result of this green
shift has generated a whole range
of environment management
companies with strong economic
potential, extending their reach far
beyond national and European
borders. This strong growth sector
Recybois, which has created an
integrated energy cogeneration
process (heat and electricity) from
saw dust. Biomass cogeneration is
also the specialty of Xylowat a
supplier of green energy, which
already supplies a number of public
institutions (hospitals, schools, etc.)
with 100% renewable energy. The
company now exports its expertise
to France and England in particular.
Vynche Energietechniek is another
cutting edge Belgian company that
specializes in generating energy
from industrial biomass.
BioWanze is the biggest producer
of bioethanol in Belgium that is
made from beetroot and cereals.
Water treatment
Water is an indispensable
element in the quality of life of
entire populations, and a major
political issue. Industrial
development, particularly in
emerging countries, puts certain
groundwater resources in danger.
We should focus on addressing
these situations by using new
technologies that are increasingly
effective and cheap for the
treatment and purification of waste
water. A number of Belgian
companies have mastered the art
of recycling wastewater.
Waterleau is one of the rare
companies in the world to manage
complete water treatment
projects for public and private
clients. The company – that has
managed around 250 projects
around the world so far – uses
cutting-edge water purification
techniques (last generation
membranes integrated into
bioreactors) and specializes in
generating energy from the
biomass produced by sewage.
Belgian construction company
Besix has also ventured into the
international arena. Its branch
Sanotec, in collaboration with
another Belgian company, Six
Construct, has won important
contract for the construction of
water purification stations in the
united Arab Emirate of Abu Dhabi.
This contract was named "water
deal of the year" for its level of
quality and strict requirements.
The wastewater treatment market
is complex and features a number
of innovative niches in which young
Belgian companies have acquired
an enviable position; such as
AppliTek (Real time monitoring of
water quality), Keppel Seghers
(desalination and sewage
treatment) or Vandezande
(mechanical technology for
purification and pumping stations).
A major supplier of
electromechanical equipment and
engineering solutions for the
treatment of wastewater is Suez
Environment, a branch of the
energy group Suez.
Soil decontamination
The new clean-tech economy
involves eliminating those scars left
behind by the preceding Industrial
Revolution that date back to the
19th century. Belgium, as the
second most industrialised country
in Europe, stood long at the
...to solar energy
The export potential of Belgian
companies that specialise in the
manufacture of photovoltaic cells
or assembling solar panels using is
in inverse proportion to the
amount of sunshine in the country.
The rising stars of this fast
growing sector include
Photovoltech, a manufacturer of
photovoltaic cells whose
shareholders include the energy
groups Total and Suez, or
companies from the building sector
who have integrated solar
innovations into their products,
such as Koramic (tiles), Recticel
(polyurethane insulating foam) and
Eternet (roof covering).
Upstream of solar panel
production processes, we have the
example of an important Belgian
industrial player - Umicore - that
produces new components using
raw materials such as silica or
germanium to improve the
ecological efficiency of solar cells.
...and biomass
Ever-increasing energy prices
have drawn growing attention to
energy that is produced from plant
waste, what we call biomass. The
most well-known form of biomass
is the residue from wood. A
number of players have emerged in
the south of Belgium with its vast
swathes of forest, who specialize in
promoting the advantages of
using wood residues to produce
energy. One such example is
October 2013 13n nFICCI Business Digest
14 FICCI Business Digest October 2013n n
in the collection and treatment
of waste or in the design of
industrial processes that
generate less waste. They have all
realised that waste is worth its
weight in gold, in a world where
raw materials are limited.
Companies like Roltex, DS Textile
Platform or Desso manufacture
carpets and artificial turf using
recycled material. And these
products are themselves easy to
recycle or turn into compost the
result is an eternally renewable
product lifecycle. Futerro, a joint-
venture between the petrochemical
group TOTAL Petrochemicals and
Galactic, a supplier of lactic acids, is
a leader in the field of plant-based
plastic - using beetroot in
particular.
Belgian group Umicore, which
specialises in the manufacture of
catalysers for the automobile
industry, is also a world leader in
the recycling of precious metals
present in mobile phones and
other electronic items. Other
companies, like Indaver (toxic
waste) or Belgoprocess (nuclear
waste), have acquired international
expertise in treating very specific
waste.
Other creative green-tech uses
Some green technology sub
sectors – such air purification
systems using particle filters, or
hydrogen-based combustible
batteries – also feature Belgian
companies that are doing quite
well: Belgian bus manufacturer Van
Hool, for example, has succeeded
in capitalising on these different
fields of expertise to begin selling
non-polluting hybrid buses that
run on combustible batteries.
More info? Ask the Belgian
experts!
- Agoria Renewable Energy Club
(www.renewableenergyclub.be),
François de Hemptinne
(Manager); e-mail :
; tel.: +32 2 706 79 39.
- Flanders Cleantech Association
(www.fca.be), Carine Van Hove
(Manager);
e-mail: [email protected];
tel.: +32 3 295 22 72;
- Greenwin (www.greenwin.be) -
e-mail:[email protected] ;
tel.: +32 71 91 92 84.
This article is an edited version of an article
published in MADE IN BELGIUM, 28th edition,
pages 177-179, written by O. Fabes.
forefront of the steel industry. As a
result many soils have been
polluted by heavy metals:
decontamination projects are
needed to allow new industrial,
commercial or residential
properties to be built on that land.
These projects allowed Belgian
companies to develop a
technological expertise they export
abroad.
The Brussels company Deep
Green, for instance, has developed
a revolutionary soil
decontamination technique that
uses a patented technology to
isolate polluted particles, and
eliminates the need to dig or to
move ground. Belgian dredging
leaders such as Deme or De Nul,
have also acquired a great deal of
expertise in soil decontamination.
As have engineering companies
such as TPF Basse-Sambre, CMI
Nesa and Danheux Maroye.
Treatment of waste - recycling
Belgium is Europe's champion
when it comes to recycling:
recycling of domestic waste stood
at 93% in 2008 and at 78.4% for
industrial waste. The collection and
treatment of waste is currently the
largest source of employment
among the different environment
management sectors, followed by
the water treatment segment.
Given these lofty statistics, it
comes as no surprise that Belgian
companies play a pioneering role
Time to use of and bring about B K Chaturvedi
enhance clean technology energy efficiency:
Naina Lal Kidwai, President, FICCI,
presenting the FICCI-EY knowledge
paper on Cleantech to B K Chaturvedi,
Member (Energy), Planning Commission,
Government of India.
K Chaturvedi, Member
(Energy), Planning BCommission, Government of
India, has emphasised the need to
enhance the use of clean
technology and bring about energy
efficiency in industrial operations
and consumer durables. This was
imperative to meet the escalating
energy consumption as the country
marches towards becoming a
middle income nation by 2025-30.
Addressing FICCI's first 'India
International Cleantech Summit
2013' in New Delhi on October 8,
2013, Chaturvedi said that energy
efficiency is of utmost importance
to achieve economies of scale.
Hence, the government has
identified power guzzling industries
and is in the process of setting
standards for achieving energy
efficiency.
He said that a number of
measures have been initiated to
raise energy efficiency. Half of the
new power capacity to be added in
the 12th Plan will be super critical
thermal plants and in the 13th Plan,
only super critical power plants will
be set up. Also, efforts are being
made to develop ultra super critical
and advanced ultra super critical
technologies.
To increase energy efficiency of
consumer durables, production
norms are being tightened and
new techniques are being
developed to enhance efficiency.
Also, since India is fast moving
towards urbanisation hence,
efficiency standards for both
infrastructure and transportation
are needed, he added. He
suggested that there is a need to
focus on below average sectors for
energy efficiency.
Dr. Prodipto Ghosh, Chairman,
FICCI Climate Change Task Force
and Former Secretary, Ministry of
Environment & Forests,
Government of India, said that
availability of supporting
infrastructure such as electricity,
internet and highways; availability
of human and institutional capital;
October 2013 15n nFICCI Business Digest
Seminar on Clean Technologies,
Waste Management & Renewable Energy
On the occasion of the Belgian economic mission to India led by H.R.H.
Princess Astrid of Belgium, the Embassy of Belgium, together with FICCI,
is organizing a seminar on Clean Technologies, Waste Management &
Renewable Energy. The seminar will be held on 25 November 2013 at
9:45 am at the Taj Palace Hotel (Jehangir Hall) in New Delhi.
For additional information or to attend this seminar, please contact FICCI.
14 FICCI Business Digest October 2013n n
in the collection and treatment
of waste or in the design of
industrial processes that
generate less waste. They have all
realised that waste is worth its
weight in gold, in a world where
raw materials are limited.
Companies like Roltex, DS Textile
Platform or Desso manufacture
carpets and artificial turf using
recycled material. And these
products are themselves easy to
recycle or turn into compost the
result is an eternally renewable
product lifecycle. Futerro, a joint-
venture between the petrochemical
group TOTAL Petrochemicals and
Galactic, a supplier of lactic acids, is
a leader in the field of plant-based
plastic - using beetroot in
particular.
Belgian group Umicore, which
specialises in the manufacture of
catalysers for the automobile
industry, is also a world leader in
the recycling of precious metals
present in mobile phones and
other electronic items. Other
companies, like Indaver (toxic
waste) or Belgoprocess (nuclear
waste), have acquired international
expertise in treating very specific
waste.
Other creative green-tech uses
Some green technology sub
sectors – such air purification
systems using particle filters, or
hydrogen-based combustible
batteries – also feature Belgian
companies that are doing quite
well: Belgian bus manufacturer Van
Hool, for example, has succeeded
in capitalising on these different
fields of expertise to begin selling
non-polluting hybrid buses that
run on combustible batteries.
More info? Ask the Belgian
experts!
- Agoria Renewable Energy Club
(www.renewableenergyclub.be),
François de Hemptinne
(Manager); e-mail :
; tel.: +32 2 706 79 39.
- Flanders Cleantech Association
(www.fca.be), Carine Van Hove
(Manager);
e-mail: [email protected];
tel.: +32 3 295 22 72;
- Greenwin (www.greenwin.be) -
e-mail:[email protected] ;
tel.: +32 71 91 92 84.
This article is an edited version of an article
published in MADE IN BELGIUM, 28th edition,
pages 177-179, written by O. Fabes.
forefront of the steel industry. As a
result many soils have been
polluted by heavy metals:
decontamination projects are
needed to allow new industrial,
commercial or residential
properties to be built on that land.
These projects allowed Belgian
companies to develop a
technological expertise they export
abroad.
The Brussels company Deep
Green, for instance, has developed
a revolutionary soil
decontamination technique that
uses a patented technology to
isolate polluted particles, and
eliminates the need to dig or to
move ground. Belgian dredging
leaders such as Deme or De Nul,
have also acquired a great deal of
expertise in soil decontamination.
As have engineering companies
such as TPF Basse-Sambre, CMI
Nesa and Danheux Maroye.
Treatment of waste - recycling
Belgium is Europe's champion
when it comes to recycling:
recycling of domestic waste stood
at 93% in 2008 and at 78.4% for
industrial waste. The collection and
treatment of waste is currently the
largest source of employment
among the different environment
management sectors, followed by
the water treatment segment.
Given these lofty statistics, it
comes as no surprise that Belgian
companies play a pioneering role
Time to use of and bring about B K Chaturvedi
enhance clean technology energy efficiency:
Naina Lal Kidwai, President, FICCI,
presenting the FICCI-EY knowledge
paper on Cleantech to B K Chaturvedi,
Member (Energy), Planning Commission,
Government of India.
K Chaturvedi, Member
(Energy), Planning BCommission, Government of
India, has emphasised the need to
enhance the use of clean
technology and bring about energy
efficiency in industrial operations
and consumer durables. This was
imperative to meet the escalating
energy consumption as the country
marches towards becoming a
middle income nation by 2025-30.
Addressing FICCI's first 'India
International Cleantech Summit
2013' in New Delhi on October 8,
2013, Chaturvedi said that energy
efficiency is of utmost importance
to achieve economies of scale.
Hence, the government has
identified power guzzling industries
and is in the process of setting
standards for achieving energy
efficiency.
He said that a number of
measures have been initiated to
raise energy efficiency. Half of the
new power capacity to be added in
the 12th Plan will be super critical
thermal plants and in the 13th Plan,
only super critical power plants will
be set up. Also, efforts are being
made to develop ultra super critical
and advanced ultra super critical
technologies.
To increase energy efficiency of
consumer durables, production
norms are being tightened and
new techniques are being
developed to enhance efficiency.
Also, since India is fast moving
towards urbanisation hence,
efficiency standards for both
infrastructure and transportation
are needed, he added. He
suggested that there is a need to
focus on below average sectors for
energy efficiency.
Dr. Prodipto Ghosh, Chairman,
FICCI Climate Change Task Force
and Former Secretary, Ministry of
Environment & Forests,
Government of India, said that
availability of supporting
infrastructure such as electricity,
internet and highways; availability
of human and institutional capital;
October 2013 15n nFICCI Business Digest
Seminar on Clean Technologies,
Waste Management & Renewable Energy
On the occasion of the Belgian economic mission to India led by H.R.H.
Princess Astrid of Belgium, the Embassy of Belgium, together with FICCI,
is organizing a seminar on Clean Technologies, Waste Management &
Renewable Energy. The seminar will be held on 25 November 2013 at
9:45 am at the Taj Palace Hotel (Jehangir Hall) in New Delhi.
For additional information or to attend this seminar, please contact FICCI.
16 FICCI Business Digest n n October 2013 October 2013 n n 19FICCI Business Digest
FICCI-EY
greater large-scale adoptionnew clean technologies
paper suggests reworking of pricing models for
of
FICCI-EY knowledge paper on Cleantech has called for greater
utilisation of available cleantech resources along with scaling Aup of the present capacities, reworking of pricing models to
facilitate greater large-scale adoption of new technologies, and
government policies, incentives, tax-credit schemes, subsidies modelled
to phase out conventional sources of energy and replacing them with
the newer non-conventional ones.
The paper notes that Cleantech investment in India was US$ 6.9
billion for the year 2012 and was largely driven by sizeable energy
demand-supply gap due to rapid industrial growth, population growth
and urbanisation, abundance of untapped renewable energy resources,
environmental and social issues related to conventional sources of
energy. This makes India as one of the most active players in the
Cleantech market. However this opportunity comes with its own set of
challenges such as shortage of skilled manpower, adoption of new
clean technologies, grid integration and high capital expenditure.
For the Government, there are clear takeaways in the form of
increased energy supply and creation of livelihoods; for businesses,
there is a clear advantage to the first movers as they would enter an
otherwise unchallenged market. However, many players in the industry
are choosing to tread the path cautiously and are playing the waiting
game.
Cleantech is the technology and business model innovation that is
enabling a transformation to a more resource-efficient, and a low
carbon model - a shift that could signal a new industrial and
technological revolution. From start-ups to large corporations and
national governments, organisations across the globe are embracing
Cleantech as a means of growth, efficiency, sustainability and
competitive advantage worldwide. Since Cleantech enables a variety of
industries, old and new, to transform themselves and become a part of
this new journey. This has led to innovation in technology, business
models, financing mechanisms, cross-industry partnerships and its
adoption by corporate organisations.
n
market environment and
regulations and policies were some
of the essentials for the evolution
of clean technology ecosystem.
He also listed out the policies
and regulations for clean
technology dissemination. These
were public investment or support
to cross the 'valley of death'; public
investment and promotion of
private investment in supporting
infrastructure; technology
mandates; standards; subsidies for
initial dissemination; public
procurement mandates and
environmental taxes and tradeable
permits.
Naina Lal Kidwai, President,
FICCI, said, “Clean technology will
be the underpinning of inclusive
growth in India, besides its impact
on energy security, climate change
and environment. It has the
potential to bring about social
innovation and have a positive
impact on education, health and
livelihoods. Every sector of the
economy, be it industry, agriculture,
the service sector, infrastructure,
has potential for clean technology
interventions that will help in the
transition to a sustainable growth
path in the long term.”
“Clean technology interventions
will not only impact the urban
landscape but will create a
transformational shift in the rural
economy of India. We are at the
juncture where we must take a leap
of faith towards our future, a future
that will be sustainable and more
equitable. We need to create an
ecosystem that will incentivise and
nurture clean technology
innovation and diffusion, and drive
development and widespread
adoption,” she added.
Dr. A Didar Singh, Secretary
General, FICCI, said, “Investments
alone are not sufficient to create
the necessary environment for a
Cleantech ecosystem. Appropriate
policy measures, market
penetration and availability of low
cost finance are imperative.
Indigenous manufacturing
capabilities need to be supported
by appropriate finance,
technological expertise from
developed countries as well as a
strong supply chain. India can learn
a lot from the experience of the
West and it can also share its own
successes and innovative ideas with
developed as well as developing
countries.” n
inak Ranjan Chakravarty,
Secretary (ER), Ministry of PExternal Affairs, Government
of India, has exhorted the business
community to iron out the real
impediments in the working of the
market mechanism currently in
place to address climate change.
While addressing the 'India
Climate Policy and Business
Conclave 2013' organised by FICCI
in association with the Ministry of
Environment & Forest (MEF),
Government of India, the World
Bank and German Environment
Ministry in New Delhi on
September 19, 2013, Chakravarty
cautioned that the low ambition of
developed countries has
undermined Clean Development
Mechanism (CDM) and threatens to
undermine the future of carbon
markets. At the same, there are
efforts in organisations like the
International Civil Aviation
Organization (ICAO) to set in place
Market Based Measures (MBMs)
without examining their viability or
feasibility in international civil
aviation.
“We are convinced that MBMs
can only supplement and not
supplant actions and commitments
by developed countries. Also, these
MBMs have to be voluntary and
not obligatory, thereby ensuring
greater participation and
mechanism focused impact on
combating climate change,” he
said. Chakravarty emphasised that
it would be important to ensure
that we do not put in MBMs, which
are designed to fail due to the lack
of demand or due to their inability
to focus on climate change but
merely become revenue earning
sources.
He expressed disappointment
that the emission reduction
obligations undertaken by the
Annex-I Parties in the Kyoto
Protocol are not at all ambitious
and much more serious emission
cuts by Annex-I Parties are
required. “I hope that they will re-
visit their targets in 2014 as agreed
and enhance their ambition to
meet the requirement of science.
Those who have stayed out of the
Kyoto Protocol must also undertake
'comparable targets' since climate
change regime demands higher
ambition from all Annex-I parties
and not just those, who scribe to
the Kyoto Protocol,” Chakravarty
added.
Ravi Prasad, Joint Secretary,
Ministry of Environment and
Forests, Government of India, said
that climate change has really
climbed up in the ladder of
importance and industry has
emerged as a key stakeholder
effecting changes impacting
climate change. Also with the
coming of the CSR Bill, of which
environment is a key component,
we hope that the industry will
Pinak Ranjan Chakravarty, Secretary
(ER), Ministry of External Affairs,
Government of India (right) with
Dr. Jyotsna Suri, Vice President, FICCI
and Dr. Silke Karcher, Head of European
Climate and Energy Policy, New Market
Mechanisms, German Federal Ministry of
Environment, Nature Conservation &
Nuclear Safety.
Businesses need to in working of to address Secretary (ER) MEA
iron out real impedimentsMBMs climate change:
October 2013 17n nFICCI Business Digest
16 FICCI Business Digest n n October 2013 October 2013 n n 19FICCI Business Digest
FICCI-EY
greater large-scale adoptionnew clean technologies
paper suggests reworking of pricing models for
of
FICCI-EY knowledge paper on Cleantech has called for greater
utilisation of available cleantech resources along with scaling Aup of the present capacities, reworking of pricing models to
facilitate greater large-scale adoption of new technologies, and
government policies, incentives, tax-credit schemes, subsidies modelled
to phase out conventional sources of energy and replacing them with
the newer non-conventional ones.
The paper notes that Cleantech investment in India was US$ 6.9
billion for the year 2012 and was largely driven by sizeable energy
demand-supply gap due to rapid industrial growth, population growth
and urbanisation, abundance of untapped renewable energy resources,
environmental and social issues related to conventional sources of
energy. This makes India as one of the most active players in the
Cleantech market. However this opportunity comes with its own set of
challenges such as shortage of skilled manpower, adoption of new
clean technologies, grid integration and high capital expenditure.
For the Government, there are clear takeaways in the form of
increased energy supply and creation of livelihoods; for businesses,
there is a clear advantage to the first movers as they would enter an
otherwise unchallenged market. However, many players in the industry
are choosing to tread the path cautiously and are playing the waiting
game.
Cleantech is the technology and business model innovation that is
enabling a transformation to a more resource-efficient, and a low
carbon model - a shift that could signal a new industrial and
technological revolution. From start-ups to large corporations and
national governments, organisations across the globe are embracing
Cleantech as a means of growth, efficiency, sustainability and
competitive advantage worldwide. Since Cleantech enables a variety of
industries, old and new, to transform themselves and become a part of
this new journey. This has led to innovation in technology, business
models, financing mechanisms, cross-industry partnerships and its
adoption by corporate organisations.
n
market environment and
regulations and policies were some
of the essentials for the evolution
of clean technology ecosystem.
He also listed out the policies
and regulations for clean
technology dissemination. These
were public investment or support
to cross the 'valley of death'; public
investment and promotion of
private investment in supporting
infrastructure; technology
mandates; standards; subsidies for
initial dissemination; public
procurement mandates and
environmental taxes and tradeable
permits.
Naina Lal Kidwai, President,
FICCI, said, “Clean technology will
be the underpinning of inclusive
growth in India, besides its impact
on energy security, climate change
and environment. It has the
potential to bring about social
innovation and have a positive
impact on education, health and
livelihoods. Every sector of the
economy, be it industry, agriculture,
the service sector, infrastructure,
has potential for clean technology
interventions that will help in the
transition to a sustainable growth
path in the long term.”
“Clean technology interventions
will not only impact the urban
landscape but will create a
transformational shift in the rural
economy of India. We are at the
juncture where we must take a leap
of faith towards our future, a future
that will be sustainable and more
equitable. We need to create an
ecosystem that will incentivise and
nurture clean technology
innovation and diffusion, and drive
development and widespread
adoption,” she added.
Dr. A Didar Singh, Secretary
General, FICCI, said, “Investments
alone are not sufficient to create
the necessary environment for a
Cleantech ecosystem. Appropriate
policy measures, market
penetration and availability of low
cost finance are imperative.
Indigenous manufacturing
capabilities need to be supported
by appropriate finance,
technological expertise from
developed countries as well as a
strong supply chain. India can learn
a lot from the experience of the
West and it can also share its own
successes and innovative ideas with
developed as well as developing
countries.” n
inak Ranjan Chakravarty,
Secretary (ER), Ministry of PExternal Affairs, Government
of India, has exhorted the business
community to iron out the real
impediments in the working of the
market mechanism currently in
place to address climate change.
While addressing the 'India
Climate Policy and Business
Conclave 2013' organised by FICCI
in association with the Ministry of
Environment & Forest (MEF),
Government of India, the World
Bank and German Environment
Ministry in New Delhi on
September 19, 2013, Chakravarty
cautioned that the low ambition of
developed countries has
undermined Clean Development
Mechanism (CDM) and threatens to
undermine the future of carbon
markets. At the same, there are
efforts in organisations like the
International Civil Aviation
Organization (ICAO) to set in place
Market Based Measures (MBMs)
without examining their viability or
feasibility in international civil
aviation.
“We are convinced that MBMs
can only supplement and not
supplant actions and commitments
by developed countries. Also, these
MBMs have to be voluntary and
not obligatory, thereby ensuring
greater participation and
mechanism focused impact on
combating climate change,” he
said. Chakravarty emphasised that
it would be important to ensure
that we do not put in MBMs, which
are designed to fail due to the lack
of demand or due to their inability
to focus on climate change but
merely become revenue earning
sources.
He expressed disappointment
that the emission reduction
obligations undertaken by the
Annex-I Parties in the Kyoto
Protocol are not at all ambitious
and much more serious emission
cuts by Annex-I Parties are
required. “I hope that they will re-
visit their targets in 2014 as agreed
and enhance their ambition to
meet the requirement of science.
Those who have stayed out of the
Kyoto Protocol must also undertake
'comparable targets' since climate
change regime demands higher
ambition from all Annex-I parties
and not just those, who scribe to
the Kyoto Protocol,” Chakravarty
added.
Ravi Prasad, Joint Secretary,
Ministry of Environment and
Forests, Government of India, said
that climate change has really
climbed up in the ladder of
importance and industry has
emerged as a key stakeholder
effecting changes impacting
climate change. Also with the
coming of the CSR Bill, of which
environment is a key component,
we hope that the industry will
Pinak Ranjan Chakravarty, Secretary
(ER), Ministry of External Affairs,
Government of India (right) with
Dr. Jyotsna Suri, Vice President, FICCI
and Dr. Silke Karcher, Head of European
Climate and Energy Policy, New Market
Mechanisms, German Federal Ministry of
Environment, Nature Conservation &
Nuclear Safety.
Businesses need to in working of to address Secretary (ER) MEA
iron out real impedimentsMBMs climate change:
October 2013 17n nFICCI Business Digest
18 FICCI Business Digest n n October 2013
accord highest importance to it and
will also explore possible domestic
markets.
Neeraj Prasad, Manager, Climate
Change Practice, The World Bank,
remarked that India has been
negotiating climate change issues
but it simultaneously needs to
focus on scaling its growth and
developing in a smart way.
Dr. Silke Karcher, Head of
European Climate and Energy
Policy, New Market Mechanisms,
German Federal Ministry of
Environment, Nature Conservation
& Nuclear Safety, while explaining
the importance of increased use of
renewables to harness energy, said
that it would lead to raising
competitiveness, increasing energy
efficiency, stabilising the price of
fossil fuels and will also provide
energy security and long term price
stability to energy.
Dr. Jyotsna Suri, Vice President,
FICCI, said, “Businesses need policy
measures that will help in
channelling climate friendly
technologies and finance into
projects that focus on climate
change mitigation and adaptation.
Governments are the architects of
policy and private sector is the
vehicle to deliver the objectives of
these policies and therefore
policies should incentivise private
sector engagement in a way that
they can get returns on
investment.”
On the occasion, FICCI released a
report called 'Indian CDM Pipeline
Analysis'. n
he government has identified 600-odd power
guzzling industries such as fertilisers, steel, Tcement and paper for which standards will be
laid down for achieving energy efficiency. If these
industries fail to adhere to the prescribed norms, they
will be penalised, said B K Chaturvedi, Member
13th Plan focus super critical & ultra super critical thermal plants:
to on B K Chaturvedi
production and water efficiency. It is
critical to focus on planned development
of states and cities because 10 million
people are moving to cities every year in
India and creating intermediate cities.
Dr. Cord Meier-Klodt, Deputy Chief of
Mission (DCM) and Head, Department for
Economic and Global Affairs, Germany
Embassy, said as in Germany, India is also
looking at increasing energy efficiency and
massive expansion of renewables for
generating energy. Hence both can have a
fruitful partnership.
The Chief Secretary of Himachal Pradesh,
Sudripta Roy, pointed out the climate action plan of the
state and how it is being given a top priority in the
state government's agenda. n
(Energy), Planning Commission, while
addressing the curtain raiser conference
on 'States and Climate Change' of the
'India Climate Policy and Business
Conclave 2013'.
Chaturvedi said that it is imperative for
the states and cities to come on board to
improve energy efficiency and implement
the laws set out in the statutes. India, at
present, is witnessing 30 per cent
urbanisation which is set to reach 50 per
cent by 2040. Hence, planned
transportation is needed, particularly, for
intermediate cities and ways need to be
devised for making buildings in states and
cities energy efficient.
He stated that the government is looking to improve
the energy mix where a sharper focus would be on
renewables to reduce the dependence on fossil fuels.
The Planning Commission has set up a Task Force on
Solar Energy, and FICCI is a part of it.
Onno Ruhl, Country Director, The World Bank, said
that India needs bigger and cheaper solutions to deal
with issues of energy efficiency, increasing agricultural
B K Chaturvedi, Member (Energy), Planning Commission,Government fo India.
18 FICCI Business Digest n n October 2013
accord highest importance to it and
will also explore possible domestic
markets.
Neeraj Prasad, Manager, Climate
Change Practice, The World Bank,
remarked that India has been
negotiating climate change issues
but it simultaneously needs to
focus on scaling its growth and
developing in a smart way.
Dr. Silke Karcher, Head of
European Climate and Energy
Policy, New Market Mechanisms,
German Federal Ministry of
Environment, Nature Conservation
& Nuclear Safety, while explaining
the importance of increased use of
renewables to harness energy, said
that it would lead to raising
competitiveness, increasing energy
efficiency, stabilising the price of
fossil fuels and will also provide
energy security and long term price
stability to energy.
Dr. Jyotsna Suri, Vice President,
FICCI, said, “Businesses need policy
measures that will help in
channelling climate friendly
technologies and finance into
projects that focus on climate
change mitigation and adaptation.
Governments are the architects of
policy and private sector is the
vehicle to deliver the objectives of
these policies and therefore
policies should incentivise private
sector engagement in a way that
they can get returns on
investment.”
On the occasion, FICCI released a
report called 'Indian CDM Pipeline
Analysis'. n
he government has identified 600-odd power
guzzling industries such as fertilisers, steel, Tcement and paper for which standards will be
laid down for achieving energy efficiency. If these
industries fail to adhere to the prescribed norms, they
will be penalised, said B K Chaturvedi, Member
13th Plan focus super critical & ultra super critical thermal plants:
to on B K Chaturvedi
production and water efficiency. It is
critical to focus on planned development
of states and cities because 10 million
people are moving to cities every year in
India and creating intermediate cities.
Dr. Cord Meier-Klodt, Deputy Chief of
Mission (DCM) and Head, Department for
Economic and Global Affairs, Germany
Embassy, said as in Germany, India is also
looking at increasing energy efficiency and
massive expansion of renewables for
generating energy. Hence both can have a
fruitful partnership.
The Chief Secretary of Himachal Pradesh,
Sudripta Roy, pointed out the climate action plan of the
state and how it is being given a top priority in the
state government's agenda. n
(Energy), Planning Commission, while
addressing the curtain raiser conference
on 'States and Climate Change' of the
'India Climate Policy and Business
Conclave 2013'.
Chaturvedi said that it is imperative for
the states and cities to come on board to
improve energy efficiency and implement
the laws set out in the statutes. India, at
present, is witnessing 30 per cent
urbanisation which is set to reach 50 per
cent by 2040. Hence, planned
transportation is needed, particularly, for
intermediate cities and ways need to be
devised for making buildings in states and
cities energy efficient.
He stated that the government is looking to improve
the energy mix where a sharper focus would be on
renewables to reduce the dependence on fossil fuels.
The Planning Commission has set up a Task Force on
Solar Energy, and FICCI is a part of it.
Onno Ruhl, Country Director, The World Bank, said
that India needs bigger and cheaper solutions to deal
with issues of energy efficiency, increasing agricultural
B K Chaturvedi, Member (Energy), Planning Commission,Government fo India.
October 2013 21n nFICCI Business Digest
the industry was encouraged to set
up Common Effluent Treatment
Plants (CETP). Incentives are being
transferred to societies set up to
run these CETPs, he said, and
added that recently, 1200 bighas of
land was being transferred to the
society in Balotra.
According to Mahajan, “Besides,
participation from traditional
export markets like the United
States and West Europe, this year,
there was also an increase in the
participation from new markets
such as Latin America, Africa, China,
Australia and Eastern Europe. This
was in line with the efforts of the
Indian government in expanding
exports and making inroads into
newer markets. The apparel export
target for the current financial year
has been fixed at US$ 17 billion.”
Mahajan added that South
American countries from which
buyers come were Uruguay,
Colombia, Brazil, Chile, Panama,
Ecuador, Argentina, Peru and
Mexico. In addition, buyers from
Algeria, Palestine, Croatia,
Lithuania, Ukraine, Lebanon and
Slovenia also visited the fair. “Apart
from these countries, buyers from
USA, UK, Australia, Switzerland,
Denmark, Egypt, Turkey, Korea,
Italy, Czech Republic, Spain, South
Africa, France and China were also
at 'Vastra 2013',” he added.
According to Jai Singh, “'Vastra'
has created space in the
international calendar of
exhibitions on textiles and apparel
and promises to create a new
benchmark in showcasing the best
and latest in textiles and presents
enhanced business opportunities
for all stakeholders,” he added.
During the interaction, Prakash
said, “The objective is to showcase
the best and latest in textiles from
fibre to fashion, be it products and
accessories or technology and
machines. The event aims to
provide a platform to participants
and exhibitors for forming new
business relations, exports,
partnerships worldwide and
locations for setting up businesses
in India.”
The fair would contribute further
in projecting India as a prominent
sourcing hub and investment
destination. Products that were on
display during the four-day event
were apparel, made ups, home
textiles, fibre, yarn, fabric, fashion
accessories, machinery, carpets,
rugs and bags. Rajasthan's
traditional handicrafts were on
display by RUDA.
'Vastra' had a special significance
for Rajasthan as the state
government recently announced a
separate policy for the sector titled
the 'Special Customized Package
for Textile Sector Enterprises –
2013'.
Textiles is among the prominent
sectors in Rajasthan. The industry
has blended its rich and colourful
age-old traditional textiles with the
latest in technology, which are also
on display at 'Vastra 2013.' At its
first edition, 'Vastra''witnessed a
huge participation from local as
well as foreign players where
business worth US$ 62 million was
generated. 'Vastra 2012' saw 178
exhibitors, 361 foreign buyers from
61 countries and 36 buying houses
from India.
Vastra's fashion shows were also a
big draw with scintillating latest
trends and thread, designs inspired
by frescos of Shekhawati and pure
Indian fabric cut into western
designs. Buyer-seller meets were
also organised on October 4, 2013.
C K Mathew, Chief Secretary,
Government of Rajasthan, while
addressing the valedictory session,
said that the textiles industry
should support handloom weavers
and craftsmen of traditional textiles
in order to remove the
contradictions which exist within
the sector.
Highlights of
Vastra 2013
vParticipation by 221
exhibitors
v421 foreign buyers from 66
countries and 43 Indian
buying houses showcased
their presence
vBuyers from countries like
Australia, Chile, South Africa,
Brazil, Mexico, Argentina,
USA, Bahrain and Saudi
Arabia were present
vDuring the event 5336 buyer-
seller meets took place
vBusiness worth US$ 69.30
million was generated (as
reported by foreign buyers)
vThree state governments
participated with their state
pavilions - Rajasthan, Gujarat
and Jharkhand
Textiles is among the
prominent sectors in
Rajasthan. The industry
has blended its rich and
colourful age-old
traditional textiles with
the latest in technology
“We are hoping that the next
edition of 'Vastra' will be even
bigger with higher targets. We aim
to increase the exhibition space to
accommodate 550 buyers and
transact a business worth US$ 100
million,” added Sunil Arora. n
20 FICCI Business Digest n n October 2013
ast year, when the Rajasthan
State Industrial Development Land Investment Corporation
Ltd. (RIICO) with the Federation of
Indian Chambers of Commerce and
Industry (FICCI) conceptualised
'Vastra', country's one-of-its-kind
international textiles and apparel
fair in Rajasthan, the writing on the
wall was loud and clear. Vastra is
here to stay.
'Vastra', a journey that
successfully took off in 2012
continued and RIICO and FICCI
organised the second edition in
Jaipur from October 3 to 6, 2013.
A few years ago, the textiles
industry in Rajasthan was
languishing and that was when,
under the guidance and vision of
Rajasthan's Chief Minister, the state
machinery went into 'mission
mode'. Today, because of
innovative schemes, textile-friendly
policies and infusion of new
technologies in the state, the
industry has been resurrected and
is headed for an upsurge.
“The new textiles policy
announced recently by the state
government is comprehensive. We
expect to receive Rs. 10,000 crore
worth of investment under the new
package,” said Rajasthan's
Industries Minister Rajendra Pareek.
The other dignitaries present
were Sunil Arora, Additional Chief
Secretary (Industries) and
Chairman, RIICO; Naveen Mahajan,
Managing Director, RIICO; Rajeev
Arora, Vice Chairman, Rajasthan
Foundation; Rajesh Yadav,
Commissioner (Industries);
Siddharth Mahajan, Commissioner,
Bureau of Investment Promotion
(BIP); Maharaj Jai Singh, Chairman,
FICCI Rajasthan State Council and
Gyan Prakash, Director, FICCI
Rajasthan State Council.
“The decision to organise 'Vastra'
was a leap of faith, which has paid
off as it has been a huge success.
Also, the new textile policy
announced before the
commencement of Vastra has been
received well by the industry,” said
Arora.
“Rajasthan had emerged as a
major territory in the textiles sector
and this was reflected in the
turnout at 'Vastra'. All textile majors
from the state were there and 421
buyers made their presence felt
from 66 countries,” he added.
Arora said that environmental
issues were being resolved for the
continued growth of the sector and
'Vastra' home to textile majors; industry headed upsurge
now for an
L to R: Sunil Arora, Additional Chief
Secretary, Industries, Government of
Rajasthan and Chairman, RIICO;
Maharaj Jai Singh, Chairman, FICCI
Rajasthan State Council; Rajendra
Pareek, Industries Minister, Government
of Rajasthan; Naveen Mahajan,
Managing Director, RIICO; Rajesh Yadav,
Commissioner- Industries, Government of
Rajasthan and Gyan Prakash, Director,
FICCI Rajasthan State Council.
October 2013 21n nFICCI Business Digest
the industry was encouraged to set
up Common Effluent Treatment
Plants (CETP). Incentives are being
transferred to societies set up to
run these CETPs, he said, and
added that recently, 1200 bighas of
land was being transferred to the
society in Balotra.
According to Mahajan, “Besides,
participation from traditional
export markets like the United
States and West Europe, this year,
there was also an increase in the
participation from new markets
such as Latin America, Africa, China,
Australia and Eastern Europe. This
was in line with the efforts of the
Indian government in expanding
exports and making inroads into
newer markets. The apparel export
target for the current financial year
has been fixed at US$ 17 billion.”
Mahajan added that South
American countries from which
buyers come were Uruguay,
Colombia, Brazil, Chile, Panama,
Ecuador, Argentina, Peru and
Mexico. In addition, buyers from
Algeria, Palestine, Croatia,
Lithuania, Ukraine, Lebanon and
Slovenia also visited the fair. “Apart
from these countries, buyers from
USA, UK, Australia, Switzerland,
Denmark, Egypt, Turkey, Korea,
Italy, Czech Republic, Spain, South
Africa, France and China were also
at 'Vastra 2013',” he added.
According to Jai Singh, “'Vastra'
has created space in the
international calendar of
exhibitions on textiles and apparel
and promises to create a new
benchmark in showcasing the best
and latest in textiles and presents
enhanced business opportunities
for all stakeholders,” he added.
During the interaction, Prakash
said, “The objective is to showcase
the best and latest in textiles from
fibre to fashion, be it products and
accessories or technology and
machines. The event aims to
provide a platform to participants
and exhibitors for forming new
business relations, exports,
partnerships worldwide and
locations for setting up businesses
in India.”
The fair would contribute further
in projecting India as a prominent
sourcing hub and investment
destination. Products that were on
display during the four-day event
were apparel, made ups, home
textiles, fibre, yarn, fabric, fashion
accessories, machinery, carpets,
rugs and bags. Rajasthan's
traditional handicrafts were on
display by RUDA.
'Vastra' had a special significance
for Rajasthan as the state
government recently announced a
separate policy for the sector titled
the 'Special Customized Package
for Textile Sector Enterprises –
2013'.
Textiles is among the prominent
sectors in Rajasthan. The industry
has blended its rich and colourful
age-old traditional textiles with the
latest in technology, which are also
on display at 'Vastra 2013.' At its
first edition, 'Vastra''witnessed a
huge participation from local as
well as foreign players where
business worth US$ 62 million was
generated. 'Vastra 2012' saw 178
exhibitors, 361 foreign buyers from
61 countries and 36 buying houses
from India.
Vastra's fashion shows were also a
big draw with scintillating latest
trends and thread, designs inspired
by frescos of Shekhawati and pure
Indian fabric cut into western
designs. Buyer-seller meets were
also organised on October 4, 2013.
C K Mathew, Chief Secretary,
Government of Rajasthan, while
addressing the valedictory session,
said that the textiles industry
should support handloom weavers
and craftsmen of traditional textiles
in order to remove the
contradictions which exist within
the sector.
Highlights of
Vastra 2013
vParticipation by 221
exhibitors
v421 foreign buyers from 66
countries and 43 Indian
buying houses showcased
their presence
vBuyers from countries like
Australia, Chile, South Africa,
Brazil, Mexico, Argentina,
USA, Bahrain and Saudi
Arabia were present
vDuring the event 5336 buyer-
seller meets took place
vBusiness worth US$ 69.30
million was generated (as
reported by foreign buyers)
vThree state governments
participated with their state
pavilions - Rajasthan, Gujarat
and Jharkhand
Textiles is among the
prominent sectors in
Rajasthan. The industry
has blended its rich and
colourful age-old
traditional textiles with
the latest in technology
“We are hoping that the next
edition of 'Vastra' will be even
bigger with higher targets. We aim
to increase the exhibition space to
accommodate 550 buyers and
transact a business worth US$ 100
million,” added Sunil Arora. n
20 FICCI Business Digest n n October 2013
ast year, when the Rajasthan
State Industrial Development Land Investment Corporation
Ltd. (RIICO) with the Federation of
Indian Chambers of Commerce and
Industry (FICCI) conceptualised
'Vastra', country's one-of-its-kind
international textiles and apparel
fair in Rajasthan, the writing on the
wall was loud and clear. Vastra is
here to stay.
'Vastra', a journey that
successfully took off in 2012
continued and RIICO and FICCI
organised the second edition in
Jaipur from October 3 to 6, 2013.
A few years ago, the textiles
industry in Rajasthan was
languishing and that was when,
under the guidance and vision of
Rajasthan's Chief Minister, the state
machinery went into 'mission
mode'. Today, because of
innovative schemes, textile-friendly
policies and infusion of new
technologies in the state, the
industry has been resurrected and
is headed for an upsurge.
“The new textiles policy
announced recently by the state
government is comprehensive. We
expect to receive Rs. 10,000 crore
worth of investment under the new
package,” said Rajasthan's
Industries Minister Rajendra Pareek.
The other dignitaries present
were Sunil Arora, Additional Chief
Secretary (Industries) and
Chairman, RIICO; Naveen Mahajan,
Managing Director, RIICO; Rajeev
Arora, Vice Chairman, Rajasthan
Foundation; Rajesh Yadav,
Commissioner (Industries);
Siddharth Mahajan, Commissioner,
Bureau of Investment Promotion
(BIP); Maharaj Jai Singh, Chairman,
FICCI Rajasthan State Council and
Gyan Prakash, Director, FICCI
Rajasthan State Council.
“The decision to organise 'Vastra'
was a leap of faith, which has paid
off as it has been a huge success.
Also, the new textile policy
announced before the
commencement of Vastra has been
received well by the industry,” said
Arora.
“Rajasthan had emerged as a
major territory in the textiles sector
and this was reflected in the
turnout at 'Vastra'. All textile majors
from the state were there and 421
buyers made their presence felt
from 66 countries,” he added.
Arora said that environmental
issues were being resolved for the
continued growth of the sector and
'Vastra' home to textile majors; industry headed upsurge
now for an
L to R: Sunil Arora, Additional Chief
Secretary, Industries, Government of
Rajasthan and Chairman, RIICO;
Maharaj Jai Singh, Chairman, FICCI
Rajasthan State Council; Rajendra
Pareek, Industries Minister, Government
of Rajasthan; Naveen Mahajan,
Managing Director, RIICO; Rajesh Yadav,
Commissioner- Industries, Government of
Rajasthan and Gyan Prakash, Director,
FICCI Rajasthan State Council.
24 FICCI Business Digest n n October 2013
this sector and accounts for around
30 per cent of trade and services.
The potential is immense for the
domestic tourism since India has a
billion Indian domestic tourists.
Subhash Verma, President, ADTOI,
said that domestic tourism must
grow steadily and holistically. GDTB
will introspect, deliberate and
discuss how India can boost
domestic tourism and demand for
it can be created.
Dr. Jyotsna Suri, Vice President,
FICCI, announced that a new
platform titled 'India Travel Bazaar'
which will retain the flavour of 'The
Great Indian Travel Bazaar' will be
organised on April 8-9 2014 at The
Ashok Hotel, New Delhi, by India
Tourism Development Corporation,
Ministry of Tourism, Government of
India and FICCI. The USP of India
Travel Bazaar would be the
intensive and sharp focus on
inbound tourism and buyer-seller
meet spread over two days.
A FICCI-Roots Research study on
'Domestic Tourism in India' released
at the occasion, states that the
target of 1450 million domestic
tourist movements by 2016 could
be achieved if the suggested 10-
point package of measures is
adopted in earnest, which are
sharpening the focus on
community involvement; safety &
security; training & education;
research & market segmentation;
up selling; leveraging technology;
increased marketing initiatives;
policy reforms; infrastructure
development and promotion of
niche products. n
The Great Domestic Tourism Bazaar becomes big travel booster'India Travel Bazaar' to woo inbound
tourists to be held in April 2014
n a bid to make India a 365-day
destination for the travellers, the IGovernment launched the '777
days of Incredible Indian
Himalayas' campaign to attract
tourists to India during the lean
summer season, said Parwez
Dewan, Secretary Tourism,
Government of India, while
addressing the third edition of 'The
Great Domestic Tourism Bazaar'
(GDTB) organised by the Ministry of
Tourism, Government of India and
FICCI with the support of
Association of Domestic Tour
Operators of India (ADTOI) in New
Delhi on September 27, 2013.
The state governments of Andhra
Pradesh, Madhya Pradesh,
Maharashtra, Gujarat and Delhi
participated as partner states and
the states of Tripura and Himachal
Pradesh participated as exhibitors.
The exhibition had around 54
exhibitors comprising state
governments, hotels, spa, resorts,
tour operators and travel agents.
These exhibitors had direct B2B and
B2C meetings with buyers and
consumers. Over 400 buyers and
tour operators from the travel
industry registered for the
meetings.
In the present global downturn,
domestic tourism is the driving
force of the tourism industry in
India. In 2012 alone, the number of
domestic tourism visits rose to
1036 million as compared to 865
million in 2011 and 748 million in
2010. This is an increase of 19.87
per cent over 2011 as compared to
an increase of 15.6 per cent in 2011
over 2010.
Amitabh Kant, Chief Executive
Officer & Managing Director, DMIC
Development Corporation, said
that the tourism sector contributes
almost 7 per cent to the global
GDP, 1 out of 11 jobs is created by
Parwez Dewan, Secretary Tourism, Government of India (left) with Amitabh Kant, Chief Executive Officer & Managing Director, DMIC Development Corporation.
October 2013 25n nFICCI Business Digest
Experts sports regulation
curb menace betting
call for effective
to of
sporting fraud and restore the
credibility of sports. Despite so
many attempts to enforce a ban,
betting incidents have continuously
increased and illegal betting
syndicates are flourishing.
Absence of regulation in sports
betting has led to money
laundering, increase in illegal and
criminal activities in sports and loss
to the exchequer. Moreover, in the
absence of regulation, it is
increasingly becoming difficult to
conduct investigations on match
fixing and spot fixing and to punish
the guilty because of lack of
evidence, politicisation and
geographical spread of the
problem. Advent of information
technology is also posing a
challenge as foreign websites
operating from regulated markets
offer Indian citizens chance to
gamble and remote gambling
transcends physical boundaries
with ease requiring only transfer of
n 2012, after a spate of incidents
of fraud in sports, FICCI initiated Ia debate on regulating sports
betting in India. Since then, much
has happened and, in particular, a
public debate has been raging on
whether the time has come for
India to revisit its gambling laws,
especially, in the wake of
controversies related to spot fixing
case in cricket in IPL 2013.
On October 12-13, 2013, FICCI
organised the second conference
on 'Regulating Sports Betting and
Sports Law' in association with
Commonwealth Lawyers'
Association with the support of All
India Federation of Lottery Trade
and Allied Industries (AIFLTAI).
Eminent personalities, subject
matter experts and important
organisations from India and
abroad participated in the
conference. All echoed that
regulation is the way forward to
counter match fixing, prevent
L to R: Santhaan Krishnan, Advocate, Supreme Court of India; Dr. Manju Kalra Prakash, Assistant Secretary General, FICCI; Carl A
Rohsler, Partners, Squire Sanders (UK), LLP & International Gambling Laws Expert; Dr. A Didar Singh, Secretary General, FICCI;
Kamlesh Vijay, Group CEO, Sugal and Damani Group of Companies & VP-AIFLTAI; Justice Mukul Mudgal (Retd.), Chief Justice, Punjab
and Haryana High Court and Chairman, SC-Probe Panel, IPL 2013 Betting and Spot Fixing Scandal; Kapil Khanna, CEO, Future
Gaming Solutions India Pvt. Ltd. & VP-AIFLTAI; Alex Ward, Vice President, Commonwealth Lawyers' Association, Australia; Vidushpat
Singhania, Principal Associate, Lakshmikumaran and Sridharan Attorneys; Vishwanathan, Additional Solicitor General of India and
Rajpal Singh, Director, FICCI.
information and money.
It is pertinent to mention that
gambling regulation is not new to
India with lotteries already being a
regulated business under state
control.
On one hand, Kerala is getting
net revenue of US$ 113 million (FY
2012-13) through lottery. It has
been estimated that the potential
revenue for all the states from
lotteries would not be less than
US$ 1600-2000 million.
On the other hand, according to
a KPMG study, unregulated betting
market in India is estimated to be
US$ 50,000 million. With a possible
rate of tax of 20 per cent on profit,
regulation can bring possible
revenue of US$ 120-190 million to
the exchequer.
Moreover, globally funds from
regulated sports betting and
gambling are being utilised to
generate funds for good causes
and promotion of sports. Likewise
24 FICCI Business Digest n n October 2013
this sector and accounts for around
30 per cent of trade and services.
The potential is immense for the
domestic tourism since India has a
billion Indian domestic tourists.
Subhash Verma, President, ADTOI,
said that domestic tourism must
grow steadily and holistically. GDTB
will introspect, deliberate and
discuss how India can boost
domestic tourism and demand for
it can be created.
Dr. Jyotsna Suri, Vice President,
FICCI, announced that a new
platform titled 'India Travel Bazaar'
which will retain the flavour of 'The
Great Indian Travel Bazaar' will be
organised on April 8-9 2014 at The
Ashok Hotel, New Delhi, by India
Tourism Development Corporation,
Ministry of Tourism, Government of
India and FICCI. The USP of India
Travel Bazaar would be the
intensive and sharp focus on
inbound tourism and buyer-seller
meet spread over two days.
A FICCI-Roots Research study on
'Domestic Tourism in India' released
at the occasion, states that the
target of 1450 million domestic
tourist movements by 2016 could
be achieved if the suggested 10-
point package of measures is
adopted in earnest, which are
sharpening the focus on
community involvement; safety &
security; training & education;
research & market segmentation;
up selling; leveraging technology;
increased marketing initiatives;
policy reforms; infrastructure
development and promotion of
niche products. n
The Great Domestic Tourism Bazaar becomes big travel booster'India Travel Bazaar' to woo inbound
tourists to be held in April 2014
n a bid to make India a 365-day
destination for the travellers, the IGovernment launched the '777
days of Incredible Indian
Himalayas' campaign to attract
tourists to India during the lean
summer season, said Parwez
Dewan, Secretary Tourism,
Government of India, while
addressing the third edition of 'The
Great Domestic Tourism Bazaar'
(GDTB) organised by the Ministry of
Tourism, Government of India and
FICCI with the support of
Association of Domestic Tour
Operators of India (ADTOI) in New
Delhi on September 27, 2013.
The state governments of Andhra
Pradesh, Madhya Pradesh,
Maharashtra, Gujarat and Delhi
participated as partner states and
the states of Tripura and Himachal
Pradesh participated as exhibitors.
The exhibition had around 54
exhibitors comprising state
governments, hotels, spa, resorts,
tour operators and travel agents.
These exhibitors had direct B2B and
B2C meetings with buyers and
consumers. Over 400 buyers and
tour operators from the travel
industry registered for the
meetings.
In the present global downturn,
domestic tourism is the driving
force of the tourism industry in
India. In 2012 alone, the number of
domestic tourism visits rose to
1036 million as compared to 865
million in 2011 and 748 million in
2010. This is an increase of 19.87
per cent over 2011 as compared to
an increase of 15.6 per cent in 2011
over 2010.
Amitabh Kant, Chief Executive
Officer & Managing Director, DMIC
Development Corporation, said
that the tourism sector contributes
almost 7 per cent to the global
GDP, 1 out of 11 jobs is created by
Parwez Dewan, Secretary Tourism, Government of India (left) with Amitabh Kant, Chief Executive Officer & Managing Director, DMIC Development Corporation.
October 2013 25n nFICCI Business Digest
Experts sports regulation
curb menace betting
call for effective
to of
sporting fraud and restore the
credibility of sports. Despite so
many attempts to enforce a ban,
betting incidents have continuously
increased and illegal betting
syndicates are flourishing.
Absence of regulation in sports
betting has led to money
laundering, increase in illegal and
criminal activities in sports and loss
to the exchequer. Moreover, in the
absence of regulation, it is
increasingly becoming difficult to
conduct investigations on match
fixing and spot fixing and to punish
the guilty because of lack of
evidence, politicisation and
geographical spread of the
problem. Advent of information
technology is also posing a
challenge as foreign websites
operating from regulated markets
offer Indian citizens chance to
gamble and remote gambling
transcends physical boundaries
with ease requiring only transfer of
n 2012, after a spate of incidents
of fraud in sports, FICCI initiated Ia debate on regulating sports
betting in India. Since then, much
has happened and, in particular, a
public debate has been raging on
whether the time has come for
India to revisit its gambling laws,
especially, in the wake of
controversies related to spot fixing
case in cricket in IPL 2013.
On October 12-13, 2013, FICCI
organised the second conference
on 'Regulating Sports Betting and
Sports Law' in association with
Commonwealth Lawyers'
Association with the support of All
India Federation of Lottery Trade
and Allied Industries (AIFLTAI).
Eminent personalities, subject
matter experts and important
organisations from India and
abroad participated in the
conference. All echoed that
regulation is the way forward to
counter match fixing, prevent
L to R: Santhaan Krishnan, Advocate, Supreme Court of India; Dr. Manju Kalra Prakash, Assistant Secretary General, FICCI; Carl A
Rohsler, Partners, Squire Sanders (UK), LLP & International Gambling Laws Expert; Dr. A Didar Singh, Secretary General, FICCI;
Kamlesh Vijay, Group CEO, Sugal and Damani Group of Companies & VP-AIFLTAI; Justice Mukul Mudgal (Retd.), Chief Justice, Punjab
and Haryana High Court and Chairman, SC-Probe Panel, IPL 2013 Betting and Spot Fixing Scandal; Kapil Khanna, CEO, Future
Gaming Solutions India Pvt. Ltd. & VP-AIFLTAI; Alex Ward, Vice President, Commonwealth Lawyers' Association, Australia; Vidushpat
Singhania, Principal Associate, Lakshmikumaran and Sridharan Attorneys; Vishwanathan, Additional Solicitor General of India and
Rajpal Singh, Director, FICCI.
information and money.
It is pertinent to mention that
gambling regulation is not new to
India with lotteries already being a
regulated business under state
control.
On one hand, Kerala is getting
net revenue of US$ 113 million (FY
2012-13) through lottery. It has
been estimated that the potential
revenue for all the states from
lotteries would not be less than
US$ 1600-2000 million.
On the other hand, according to
a KPMG study, unregulated betting
market in India is estimated to be
US$ 50,000 million. With a possible
rate of tax of 20 per cent on profit,
regulation can bring possible
revenue of US$ 120-190 million to
the exchequer.
Moreover, globally funds from
regulated sports betting and
gambling are being utilised to
generate funds for good causes
and promotion of sports. Likewise
26 FICCI Business Digest n n October 2013
it can be regulated in India and
funds from sports betting and
lottery could support development
and funding of sports like in
countries such as the UK, China and
South Africa.
Eminent Indian and international
panellists gave several compelling
reasons for bringing in regulation
than criminalising sports betting.
Experts urged for regulation of
betting in sports through
appropriate laws after extensive
consultation with the stakeholders.
They also cautioned that technically
aping the West could be suicidal
since the social and moral fabrics
are different of both the societies. It
was a general consensus that an
extensive pan-India survey of
gambling in India will help in better
understanding of the numbers
involved.
Mohan Parasaran, Solicitor
General of India, mentioned about
The Prevention of Sporting Fraud
Bill, 2013, which is a step in this
direction jointly developed by the
Ministry of Law and Youth Affairs
and Sports.
It was suggested that the
government should set up an
Independent Regulatory
Commission, which can study the
various aspects in-depth and come
out with solutions with the
objective of eliminating the bookies
and fair conduct of sports betting.
All that may be said for certain is
that while there are a large number
of people who do not wish to
gamble and who frown on such
activity. But there is no denying the
fact that gambling is omnipresent
and a basic human instinct and it is
better to regulate it than
criminalise it.
Some of the eminent speakers
who addressed the conference
were Arjuna Ranatunga, Former
Captain of Cricket Team, Sri Lanka;
Soli Sorabjee, Former Attorney
General of India; Justice Mukul
Mudgal (Retd.), Chief Justice,
Punjab and Haryana High Court
and Chairman, SC-Pro be Panel, IPL
2013 Betting and Spot Fixing
L to R: Arjuna Ranatunga, former Captain, Sri Lankan Cricket Team; Mohan Parasaran, Solicitor General of India; Rajpal Singh,
Director, FICCI and Sunita Godara, Former Asian Marathon Champion and National Convener on Drug Abuse Prevention, Clean
Sports India.
Scandal; Dr. A Didar Singh,
Secretary General, FICCI; Alex
Ward, Vice President,
Commonwealth Lawyers'
Association, Australia; Kamlesh
Vijay, Group CEO, Sugal and
Damani Group of Companies &
VP-All India Federation of Lottery
Trade and Allied Industries;
Michael O' Kane, Business Director,
Ladbrokes Plc; KTS Tulsi, Senior
Advocate, Supreme Court of India;
Patrick Nally, President,
International Poker Federation;
Kapil Khanna, CEO, Future Gaming
Solutions India Pvt. Ltd. & VP-All
India Federation of Lottery Trade
and Allied Industries and Nigel
Mawer, Vice Chairman WPBSA,
Chair of the Disciplinary
Committee. n
Jairam Ramesh, Union
Minister for Rural
Development (left)
responding to a query on
the new Land Acquisition
Act. Sidharth Birla, Senior
Vice-President, FICCI,
looks on.
To avoid arbitrary changes in the new FICCI suggests
Land Act, institutionalisation of Rules Advisory Committee
determined by states.
Voicing industry's concerns,
Sidharth Birla said, “We need to
ensure the long term sustainability
of purpose by not diluting
economic development. This is the
natural and central concern of
industry. In essence, the Act must
create an environment that rewards
equity on both sides of the table
yet helps the nation generate new
economic value as opposed to
simple redistribution. A related
issue here is the need to temper
any unrealistic expectations at the
ground level.”
Sanjay Bhatia, Chairman, FICCI
Manufacturing Committee and
Managing Director, Hindustan Tin
Works Ltd, said, “Consent
requirement of 70 per cent to 80
per cent and that too of project
affected families and not just of
land owners creates vagueness and
uncertainties, more so when the
country's land records are not in
the best of shape. It is to be seen
how best the social impact
assessment can identify genuine
cases of affected people.” n
t an interactive meeting
organised by FICCI on A'Right to Fair Compensation
and Transparency in Land
Acquisition, Rehabilitation and
Resettlement Act 2013' in New
Delhi on September 19, 2013,
Jairam Ramesh, Union Minister for
Rural Development, noted the
suggestion of Sidharth Birla, Senior
Vice-President, FICCI, for creating a
Rules Advisory Committee,
consisting of relevant government
departments, industry, and
appropriate stakeholders, which
could be institutionalised so as to
avoid arbitrary changes.
Highlighting the main features of
the new Land Acquisition Act,
Ramesh said that consent,
compensation, rehabilitation and
resettlement and process and
procedure form the core of the new
Act. Explaining the four
components, he said that under no
circumstances, forcible land
acquisition would be allowed.
Given the inaccurate nature of
circle rates, the Act proposes the
payment of compensation of up to
four times the market value in rural
areas and twice the market value in
urban areas, he said.
Ramesh stated that rehabilitation
and resettlement is the most
important innovation of the new
Act. This is the very first law that
links land acquisition and the
accompanying obligations for
resettlement and rehabilitation.
He said the process and
procedures of the Act will be
accompanied by social impact
assessment with detailed
exposition of timelines. In case of
non-adherence, the parties
concerned would be penalised.
To overcome the shortcomings
of the old Act, the three guiding
principles of the new Act are
providing adequate compensation
by way of transparent set of
guidelines; protecting interest of
landowners, landless and those
who will lose livelihood and
introduction of rehabilitation and
resettlement of displaced people.
On leasing being introduced in
the Act, Ramesh said, states have
been given an option through a
new clause to lease land instead of
acquiring land and the rules will be
October 2013 27n nFICCI Business Digest
Prevention of Sporting Fraud Bill, 2013This is a comprehensive bill for preventing sporting fraud and to combat frauds in relation to domestic national and international sporting event developed after extensive consultation between Sports and law ministry. Different aspects from different laws are been adopted in drafting this bill. There have been serious deliberations on insider information and sporting fraud, manipulation or attempt to manipulate a sports result (s), irrespective of whether the outcome is actually altered or not, will be a jail crime. Punishment for different categories of offenses with fine up to 3 to 5 times the economic benefit derived from the guilty is mentioned in the bill.
26 FICCI Business Digest n n October 2013
it can be regulated in India and
funds from sports betting and
lottery could support development
and funding of sports like in
countries such as the UK, China and
South Africa.
Eminent Indian and international
panellists gave several compelling
reasons for bringing in regulation
than criminalising sports betting.
Experts urged for regulation of
betting in sports through
appropriate laws after extensive
consultation with the stakeholders.
They also cautioned that technically
aping the West could be suicidal
since the social and moral fabrics
are different of both the societies. It
was a general consensus that an
extensive pan-India survey of
gambling in India will help in better
understanding of the numbers
involved.
Mohan Parasaran, Solicitor
General of India, mentioned about
The Prevention of Sporting Fraud
Bill, 2013, which is a step in this
direction jointly developed by the
Ministry of Law and Youth Affairs
and Sports.
It was suggested that the
government should set up an
Independent Regulatory
Commission, which can study the
various aspects in-depth and come
out with solutions with the
objective of eliminating the bookies
and fair conduct of sports betting.
All that may be said for certain is
that while there are a large number
of people who do not wish to
gamble and who frown on such
activity. But there is no denying the
fact that gambling is omnipresent
and a basic human instinct and it is
better to regulate it than
criminalise it.
Some of the eminent speakers
who addressed the conference
were Arjuna Ranatunga, Former
Captain of Cricket Team, Sri Lanka;
Soli Sorabjee, Former Attorney
General of India; Justice Mukul
Mudgal (Retd.), Chief Justice,
Punjab and Haryana High Court
and Chairman, SC-Pro be Panel, IPL
2013 Betting and Spot Fixing
L to R: Arjuna Ranatunga, former Captain, Sri Lankan Cricket Team; Mohan Parasaran, Solicitor General of India; Rajpal Singh,
Director, FICCI and Sunita Godara, Former Asian Marathon Champion and National Convener on Drug Abuse Prevention, Clean
Sports India.
Scandal; Dr. A Didar Singh,
Secretary General, FICCI; Alex
Ward, Vice President,
Commonwealth Lawyers'
Association, Australia; Kamlesh
Vijay, Group CEO, Sugal and
Damani Group of Companies &
VP-All India Federation of Lottery
Trade and Allied Industries;
Michael O' Kane, Business Director,
Ladbrokes Plc; KTS Tulsi, Senior
Advocate, Supreme Court of India;
Patrick Nally, President,
International Poker Federation;
Kapil Khanna, CEO, Future Gaming
Solutions India Pvt. Ltd. & VP-All
India Federation of Lottery Trade
and Allied Industries and Nigel
Mawer, Vice Chairman WPBSA,
Chair of the Disciplinary
Committee. n
Jairam Ramesh, Union
Minister for Rural
Development (left)
responding to a query on
the new Land Acquisition
Act. Sidharth Birla, Senior
Vice-President, FICCI,
looks on.
To avoid arbitrary changes in the new FICCI suggests
Land Act, institutionalisation of Rules Advisory Committee
determined by states.
Voicing industry's concerns,
Sidharth Birla said, “We need to
ensure the long term sustainability
of purpose by not diluting
economic development. This is the
natural and central concern of
industry. In essence, the Act must
create an environment that rewards
equity on both sides of the table
yet helps the nation generate new
economic value as opposed to
simple redistribution. A related
issue here is the need to temper
any unrealistic expectations at the
ground level.”
Sanjay Bhatia, Chairman, FICCI
Manufacturing Committee and
Managing Director, Hindustan Tin
Works Ltd, said, “Consent
requirement of 70 per cent to 80
per cent and that too of project
affected families and not just of
land owners creates vagueness and
uncertainties, more so when the
country's land records are not in
the best of shape. It is to be seen
how best the social impact
assessment can identify genuine
cases of affected people.” n
t an interactive meeting
organised by FICCI on A'Right to Fair Compensation
and Transparency in Land
Acquisition, Rehabilitation and
Resettlement Act 2013' in New
Delhi on September 19, 2013,
Jairam Ramesh, Union Minister for
Rural Development, noted the
suggestion of Sidharth Birla, Senior
Vice-President, FICCI, for creating a
Rules Advisory Committee,
consisting of relevant government
departments, industry, and
appropriate stakeholders, which
could be institutionalised so as to
avoid arbitrary changes.
Highlighting the main features of
the new Land Acquisition Act,
Ramesh said that consent,
compensation, rehabilitation and
resettlement and process and
procedure form the core of the new
Act. Explaining the four
components, he said that under no
circumstances, forcible land
acquisition would be allowed.
Given the inaccurate nature of
circle rates, the Act proposes the
payment of compensation of up to
four times the market value in rural
areas and twice the market value in
urban areas, he said.
Ramesh stated that rehabilitation
and resettlement is the most
important innovation of the new
Act. This is the very first law that
links land acquisition and the
accompanying obligations for
resettlement and rehabilitation.
He said the process and
procedures of the Act will be
accompanied by social impact
assessment with detailed
exposition of timelines. In case of
non-adherence, the parties
concerned would be penalised.
To overcome the shortcomings
of the old Act, the three guiding
principles of the new Act are
providing adequate compensation
by way of transparent set of
guidelines; protecting interest of
landowners, landless and those
who will lose livelihood and
introduction of rehabilitation and
resettlement of displaced people.
On leasing being introduced in
the Act, Ramesh said, states have
been given an option through a
new clause to lease land instead of
acquiring land and the rules will be
October 2013 27n nFICCI Business Digest
Prevention of Sporting Fraud Bill, 2013This is a comprehensive bill for preventing sporting fraud and to combat frauds in relation to domestic national and international sporting event developed after extensive consultation between Sports and law ministry. Different aspects from different laws are been adopted in drafting this bill. There have been serious deliberations on insider information and sporting fraud, manipulation or attempt to manipulate a sports result (s), irrespective of whether the outcome is actually altered or not, will be a jail crime. Punishment for different categories of offenses with fine up to 3 to 5 times the economic benefit derived from the guilty is mentioned in the bill.
South India Real Estate Conference
Lack of urban land, finance & governance marring prospects of realty sector
28 FICCI Business Digest n n October 2013
ICCI organised the second
South India Real Estate FConference (SIREC) on
September 19, 2013 in Bengaluru
on the theme 'Building New
Dimensions for Real Estate Growth'.
S V Ranganath, Chief Secretary,
Government of Karnataka, while
releasing the FICCI and Ernst &
Young LLP white paper, 'Building
New Dimensions for Real Estate
Growth', said that in India,
urbanisation is taking place at a
rapid pace. Between the years 2020
to 2025, five states - Karnataka,
Tamil Nadu, Punjab, Karnataka and
Gujarat - will see urbanisation
levels rising by 50 per cent.
The Chief Secretary added that
the major challenge for the real
estate sector is cost cutting without
compromising on the quality.
Problem of scarcity of urban land,
governance issues, financing and
the challenges in attracting and
retaining right talent are some
other issues.
Dr. Arbind Prasad, Director
General, FICCI, said that in the last
few years south Indian realty
market has made remarkable
progress, which encouraged us to
create such a platform in this part
of the country. Our objective is to
bring together experts from across
the country, to exchange ideas,
innovation and knowledge on latest
concepts, trends, technologies and
policy issues that can influence the
business of real estate in this
region.
V P Baligar, CMD, HUDCO, in his
presentation on 'Financing Options
for the Real Estate Sector',
highlighted the fact that the Indian
real estate and housing sector has
strong 'backward' and 'forward'
linkages with more than 250
ancillary industries and is a key for
income and employment
generation. However, the sector is
facing difficulties in financing in
terms of non-availability of cheaper
and long tenor finance, high cost of
capital, formal sector not
comfortable in lending to private
real estate players, high NPAs &
Credit Risk and rising inventories of
unsold units across big cities.
Baligar further highlighted some of
the financing options that can be
accessed by the sector.
J C Sharma, Chairman, FICCI Sub-
Committee on South India Real
Estate & VC & MD, Sobha
Developers Ltd, stated that the real
estate sector is a sun rise sector
and is a major contributor to India's
GDP. The economic survey 2012-13
pegged the share of this sector
including ownership of dwelling
and business services at 10.8 per
cent with the housing sector
contributing 5.9 per cent of GDP in
the financial year 2012 and the
same is expected to increase to 6.3
per cent in the financial year 2013.
Ranjan Biswas, Partner & Director
– Technology, Media, Telecom and
South, Ernst & Young LLP, said that
the white paper seeks to
understand the general paradox
and real drivers of the real estate
market. It also covers changing SEZ
guidelines, funding paradigms,
fraud mitigation, work force
management and use of
technology. n
L to R: Mousumi Roy, Senior Director,
FICCI; Ranjan Biswas, Partner & Director
– Technology, Media, Telecom and South,
Ernst & Young LLP; Dr. Arbind Prasad,
Director General, FICCI; S V Ranganath,
Chief Secretary, Government of
Karnataka; V P Baligar, CMD, HUDCO;
J C Sharma, Chairman, FICCI Sub-
Committee on South India Real Estate &
VC & MD, Sobha Developers Ltd. and
Venu Gopal, ED – Transaction Advisory
Services, Ernst & Young LLP.
October 2013 29n nFICCI Business Digest
D. Diptivilasa, Additional Secretary
(Urban Development), Ministry of Urban
Development, Government of India and
Vice-Chairman (centre), Delhi
Development Authority, addressing
FICCI-C&W Knowledge Series seminar.
He shared the policies of the
Government of India for unlocking
values of real estate assets owned
by it as well as future schemes of
DDA that would be a part of the
monetization exercise by the land
owning agency in New Delhi.
Sanjay Dutt, Executive Managing
Director-South Asia, Cushman and
Wakefield and Diwakar Rana,
Director-Capital Markets Group,
Cushman and Wakefield, were the
lead faculty for the programme.
The programme had panel
discussions where some of the
leading industry professionals
shared their knowledge and
experience on why should
companies go for asset
monetization, challenges
Through monetization companies can convert their existing real estate assets or fixed assets into liquid capital or income.
Real estate is the mantra to &
asset monetizationexpand business
reduce debt
associated with it, due diligence
process, methods of monetization,
legal and tax implications of asset
monetization. Case studies of asset
monetization by corporate houses
were also discussed for better
understanding of the concept. n
ICCI in association with
Cushman & Wakefield (C&W) FIndia, a leading international
property consultant, organised the
second knowledge series on the
theme 'Monetization in Real Estate'
in New Delhi on September 27,
2013.
Companies are considering asset
monetization as a strategy for
business expansion and debt
reduction. In the current market
scenario, debt raising and servicing
is becoming expensive for
companies. Besides, investors and
shareholders are consistently
demanding incremental returns on
their investments. This is making
many corporate houses to rethink
their business growth plans and
strategies.
The objective of this seminar was
to share insights and knowledge on
the strategy of real estate asset
monetization. Through
monetization companies can
convert their existing real estate
assets or fixed assets into liquid
capital or income.
D. Diptivilasa, Additional
Secretary (Urban Development),
Ministry of Urban Development,
Government of India and Vice-
Chairman, Delhi Development
Authority (DDA), said that the
government is the biggest
monetizer of real estate assets in
the country.
South India Real Estate Conference
Lack of urban land, finance & governance marring prospects of realty sector
28 FICCI Business Digest n n October 2013
ICCI organised the second
South India Real Estate FConference (SIREC) on
September 19, 2013 in Bengaluru
on the theme 'Building New
Dimensions for Real Estate Growth'.
S V Ranganath, Chief Secretary,
Government of Karnataka, while
releasing the FICCI and Ernst &
Young LLP white paper, 'Building
New Dimensions for Real Estate
Growth', said that in India,
urbanisation is taking place at a
rapid pace. Between the years 2020
to 2025, five states - Karnataka,
Tamil Nadu, Punjab, Karnataka and
Gujarat - will see urbanisation
levels rising by 50 per cent.
The Chief Secretary added that
the major challenge for the real
estate sector is cost cutting without
compromising on the quality.
Problem of scarcity of urban land,
governance issues, financing and
the challenges in attracting and
retaining right talent are some
other issues.
Dr. Arbind Prasad, Director
General, FICCI, said that in the last
few years south Indian realty
market has made remarkable
progress, which encouraged us to
create such a platform in this part
of the country. Our objective is to
bring together experts from across
the country, to exchange ideas,
innovation and knowledge on latest
concepts, trends, technologies and
policy issues that can influence the
business of real estate in this
region.
V P Baligar, CMD, HUDCO, in his
presentation on 'Financing Options
for the Real Estate Sector',
highlighted the fact that the Indian
real estate and housing sector has
strong 'backward' and 'forward'
linkages with more than 250
ancillary industries and is a key for
income and employment
generation. However, the sector is
facing difficulties in financing in
terms of non-availability of cheaper
and long tenor finance, high cost of
capital, formal sector not
comfortable in lending to private
real estate players, high NPAs &
Credit Risk and rising inventories of
unsold units across big cities.
Baligar further highlighted some of
the financing options that can be
accessed by the sector.
J C Sharma, Chairman, FICCI Sub-
Committee on South India Real
Estate & VC & MD, Sobha
Developers Ltd, stated that the real
estate sector is a sun rise sector
and is a major contributor to India's
GDP. The economic survey 2012-13
pegged the share of this sector
including ownership of dwelling
and business services at 10.8 per
cent with the housing sector
contributing 5.9 per cent of GDP in
the financial year 2012 and the
same is expected to increase to 6.3
per cent in the financial year 2013.
Ranjan Biswas, Partner & Director
– Technology, Media, Telecom and
South, Ernst & Young LLP, said that
the white paper seeks to
understand the general paradox
and real drivers of the real estate
market. It also covers changing SEZ
guidelines, funding paradigms,
fraud mitigation, work force
management and use of
technology. n
L to R: Mousumi Roy, Senior Director,
FICCI; Ranjan Biswas, Partner & Director
– Technology, Media, Telecom and South,
Ernst & Young LLP; Dr. Arbind Prasad,
Director General, FICCI; S V Ranganath,
Chief Secretary, Government of
Karnataka; V P Baligar, CMD, HUDCO;
J C Sharma, Chairman, FICCI Sub-
Committee on South India Real Estate &
VC & MD, Sobha Developers Ltd. and
Venu Gopal, ED – Transaction Advisory
Services, Ernst & Young LLP.
October 2013 29n nFICCI Business Digest
D. Diptivilasa, Additional Secretary
(Urban Development), Ministry of Urban
Development, Government of India and
Vice-Chairman (centre), Delhi
Development Authority, addressing
FICCI-C&W Knowledge Series seminar.
He shared the policies of the
Government of India for unlocking
values of real estate assets owned
by it as well as future schemes of
DDA that would be a part of the
monetization exercise by the land
owning agency in New Delhi.
Sanjay Dutt, Executive Managing
Director-South Asia, Cushman and
Wakefield and Diwakar Rana,
Director-Capital Markets Group,
Cushman and Wakefield, were the
lead faculty for the programme.
The programme had panel
discussions where some of the
leading industry professionals
shared their knowledge and
experience on why should
companies go for asset
monetization, challenges
Through monetization companies can convert their existing real estate assets or fixed assets into liquid capital or income.
Real estate is the mantra to &
asset monetizationexpand business
reduce debt
associated with it, due diligence
process, methods of monetization,
legal and tax implications of asset
monetization. Case studies of asset
monetization by corporate houses
were also discussed for better
understanding of the concept. n
ICCI in association with
Cushman & Wakefield (C&W) FIndia, a leading international
property consultant, organised the
second knowledge series on the
theme 'Monetization in Real Estate'
in New Delhi on September 27,
2013.
Companies are considering asset
monetization as a strategy for
business expansion and debt
reduction. In the current market
scenario, debt raising and servicing
is becoming expensive for
companies. Besides, investors and
shareholders are consistently
demanding incremental returns on
their investments. This is making
many corporate houses to rethink
their business growth plans and
strategies.
The objective of this seminar was
to share insights and knowledge on
the strategy of real estate asset
monetization. Through
monetization companies can
convert their existing real estate
assets or fixed assets into liquid
capital or income.
D. Diptivilasa, Additional
Secretary (Urban Development),
Ministry of Urban Development,
Government of India and Vice-
Chairman, Delhi Development
Authority (DDA), said that the
government is the biggest
monetizer of real estate assets in
the country.
30 FICCI Business Digest n n October 2013
FICCI study suggests focus on exploration and relaxation of FI norms for loans to small mine owners
as an ancillary raw material
industry. The mining legislation
always gave accent to regulation,
which emphasised management
of the mines rather than on
exploration and development.
The exploration within the lease
holds were confined to the
barest minimum to take care of
future production schedule as
per the market scenario. This left
only the Geological Survey of
India (GSI) to do regional
exploration whereas the detailed
exploration could not be carried
out in all identified potential
areas. The future therefore now
lies on deployment of latest
technologies as well as
interpretation of geological data
to its best advantage for opening
up of new mines. As mineral
exploration is a key to attracting
investment in the mining sector,
separate legislation and
espite liberalisation of
licensing and grant of Dleases for most of the
minerals and introduction of an
open sky policy on non-exclusivity
for reconnaissance work, large area
prospecting license, seamless
transfer and security of tenure to
the entrepreneurs, the mining
sector has witnessed a negative
growth for two consecutive years
now. In 2011-12, the growth
outlook turned negative to register
a minus 0.6 per cent contraction. In
2012-13 too there was no
significant improvement, and the
sector contracted by 0.6 per cent.
This negative rate of growth is
having serious repercussions on the
economy and contributing to the
widening current account deficit
and resultant weakness of the
rupee.
According to a FICCI study on
'Development of Indian Mining
Industry – The Way Forward', India
needs an evolving and growth
oriented mineral development and
mining policy that can foster
systematic and sustainable growth
in the sector.
The time is therefore right for
mineral development and mining
to be given its long over-due
recognition as a core industry as is
the case in developed countries
such as Australia, Canada and USA.
Emphasis should be on exploration
to continuously augment the
resource and reserve base of the
country and harness the existing
resources through scientific and
sustainable mining including
beneficiation technologies and
focusing on zero waste mining. This
is possible only through an
investor-friendly regulatory regime
that provides for security of tenure
and encourages investment in
exploration and critical
infrastructure for development of
the mineral and mining industry.
The study identifies the critical
issues faced by the Indian mining
sector and suggests the following
way forward:
lMuch greater emphasis is
required on development of
mineral deposits by way of
prospecting and zero-waste
mining. The Indian government
does not formally define mining
as a core industrial activity.
Rather it is viewed as more often
L to R: Tuhin Mukherjee, Chair, FICCI
Mining Committee; Arun Kumar, Joint
Secretary, Ministry of Mines; Dr. Arbind
Prasad, Director General, FICCI and
Professor K L Rai, President, Association
of Economic Geologists & SAAEG.
October 2013 31n nFICCI Business Digest
procedure for grant of
prospecting and exploration
licenses is required. At present,
the same procedure is being
adopted as that of a mining lease
in grant of prospecting licenses
whereas mineral investigation
does not involve acquisition of
land, it being a temporary
activity for a short period.
lComparison of estimates of
mineral inventory of 2005 and
2010 indicates that the reserves
of important mineral have
decreased and the proven
reserves are only 5-10 per cent of
the total resources. This reflects
lack of exploration efforts to
build up additional mineable
reserves required for
augmentation of production
levels in most of the cases. The
Government needs to put in a
strategy to systematically invest
in exploration and build up the
inventory.
lThe Indian mining sector (non-
fuel) consists of large number of
small mines and their
contribution is significant in total
mineral production of metallic
and non-metallic minerals,
besides having export potential.
But somehow, the production is
nearly stagnant for the want of
capital required for expansion of
the mining activity. The banks
and financial institutions are
generally reluctant to give loans
to small mine owners without
having heavy equipment and
machinery and this is coming in
the way of augmentation of
mines capacity. Therefore, some
relaxation by the financial
institutions to small mine owners
need to be considered based on
the valuation of mineral reserves.
lA large number of small miners
are not able to employ qualified
mining engineers and geologists
and this has led to unscientific
mining in number of cases in
violation of MMDR Act and rules.
The respective state governments
and Indian Bureau of Mines may
have to be proactive in this
regard.
lThere is a large number of non-
working mines in various mining
belts in the country due to
uneconomic working, high
stripping ratio, grade and
recovery constraints and also
forest and environment
clearances and poor
infrastructure facilities. A critical
analysis of small mining sector to
address various reasons behind
non-working and dormant
situation of small mines needs to
be undertaken by the state
governments.
lThough the National Mineral
Policy (NMP 2008) has envisaged
cluster mining approach in small
mines but the same remains
unimplemented. Operation of
cluster mining over large
mineralised areas like limestone,
dolomite, bauxite, slate, clay
belts, can be considered in
respect of following identified
type areas – a) Indrawad –
Jaitaram Chinaclay belt in Nagaur
district, Rajasthan; b) Kolayat -
Mudh-kotri – Guda fireclay belt
in Bikaner district, Rajasthan; c)
Quartz feldspar mica belt of
Ajmer - Bhiwara in Rajasthan; d)
China clay belt of Singhbhum
district in Jharkhand; e) Graphite
mines in Bolangir districts,
Odisha; f) Jangir – Chopa lime
stone belt in Chhattisgarh; g)
Limestone of katni – Jhukehi and
Satna belt in Madhya Pradesh
and Bhagokot area of Karnataka;
i) Bauxite leases in Jamnagar and
Kutch districts in Gujarat; j)
Limestone mines in Yeotmal
district and Western Ghat bauxite
in Maharashtra; k) Soapstone
and Baryties mines in Andhra
Pradesh; and l) Gypsum and
quartz- feldspar mines in Tamil
Nadu.
lA mechanism for amalgamation
of small leases into one single
lease needs to be evolved along
with the modalities for some
relaxation in forest and
environment clearance. It is
noteworthy that till 2010, small
mines of less than five hectare
areas were exempted from
environmental clearances. The
same rule needs to be applicable
again.
lGranting of very small leases by
sub dividing of a large deposit
should be avoided by the state
governments in the interest of
mineral conservation and
minimum land degradation.
lThe minimum area for grant of a
mining lease for major mineral
needs to be enhanced to 10
hectares. n
L to R: Koldo Gutierrez Boada, Ennera;
Ashok Parija, Senior Advocate, Supreme Court of
India; Syedain Abbasi, Joint Secretary, Ministry of Steel; A N Joshi,
Sesa Sterlite Limited; M Sengupta, Indian Bureau of Mines and S B S Chauhan,
Adviser, FICCI Mining Committee.
30 FICCI Business Digest n n October 2013
FICCI study suggests focus on exploration and relaxation of FI norms for loans to small mine owners
as an ancillary raw material
industry. The mining legislation
always gave accent to regulation,
which emphasised management
of the mines rather than on
exploration and development.
The exploration within the lease
holds were confined to the
barest minimum to take care of
future production schedule as
per the market scenario. This left
only the Geological Survey of
India (GSI) to do regional
exploration whereas the detailed
exploration could not be carried
out in all identified potential
areas. The future therefore now
lies on deployment of latest
technologies as well as
interpretation of geological data
to its best advantage for opening
up of new mines. As mineral
exploration is a key to attracting
investment in the mining sector,
separate legislation and
espite liberalisation of
licensing and grant of Dleases for most of the
minerals and introduction of an
open sky policy on non-exclusivity
for reconnaissance work, large area
prospecting license, seamless
transfer and security of tenure to
the entrepreneurs, the mining
sector has witnessed a negative
growth for two consecutive years
now. In 2011-12, the growth
outlook turned negative to register
a minus 0.6 per cent contraction. In
2012-13 too there was no
significant improvement, and the
sector contracted by 0.6 per cent.
This negative rate of growth is
having serious repercussions on the
economy and contributing to the
widening current account deficit
and resultant weakness of the
rupee.
According to a FICCI study on
'Development of Indian Mining
Industry – The Way Forward', India
needs an evolving and growth
oriented mineral development and
mining policy that can foster
systematic and sustainable growth
in the sector.
The time is therefore right for
mineral development and mining
to be given its long over-due
recognition as a core industry as is
the case in developed countries
such as Australia, Canada and USA.
Emphasis should be on exploration
to continuously augment the
resource and reserve base of the
country and harness the existing
resources through scientific and
sustainable mining including
beneficiation technologies and
focusing on zero waste mining. This
is possible only through an
investor-friendly regulatory regime
that provides for security of tenure
and encourages investment in
exploration and critical
infrastructure for development of
the mineral and mining industry.
The study identifies the critical
issues faced by the Indian mining
sector and suggests the following
way forward:
lMuch greater emphasis is
required on development of
mineral deposits by way of
prospecting and zero-waste
mining. The Indian government
does not formally define mining
as a core industrial activity.
Rather it is viewed as more often
L to R: Tuhin Mukherjee, Chair, FICCI
Mining Committee; Arun Kumar, Joint
Secretary, Ministry of Mines; Dr. Arbind
Prasad, Director General, FICCI and
Professor K L Rai, President, Association
of Economic Geologists & SAAEG.
October 2013 31n nFICCI Business Digest
procedure for grant of
prospecting and exploration
licenses is required. At present,
the same procedure is being
adopted as that of a mining lease
in grant of prospecting licenses
whereas mineral investigation
does not involve acquisition of
land, it being a temporary
activity for a short period.
lComparison of estimates of
mineral inventory of 2005 and
2010 indicates that the reserves
of important mineral have
decreased and the proven
reserves are only 5-10 per cent of
the total resources. This reflects
lack of exploration efforts to
build up additional mineable
reserves required for
augmentation of production
levels in most of the cases. The
Government needs to put in a
strategy to systematically invest
in exploration and build up the
inventory.
lThe Indian mining sector (non-
fuel) consists of large number of
small mines and their
contribution is significant in total
mineral production of metallic
and non-metallic minerals,
besides having export potential.
But somehow, the production is
nearly stagnant for the want of
capital required for expansion of
the mining activity. The banks
and financial institutions are
generally reluctant to give loans
to small mine owners without
having heavy equipment and
machinery and this is coming in
the way of augmentation of
mines capacity. Therefore, some
relaxation by the financial
institutions to small mine owners
need to be considered based on
the valuation of mineral reserves.
lA large number of small miners
are not able to employ qualified
mining engineers and geologists
and this has led to unscientific
mining in number of cases in
violation of MMDR Act and rules.
The respective state governments
and Indian Bureau of Mines may
have to be proactive in this
regard.
lThere is a large number of non-
working mines in various mining
belts in the country due to
uneconomic working, high
stripping ratio, grade and
recovery constraints and also
forest and environment
clearances and poor
infrastructure facilities. A critical
analysis of small mining sector to
address various reasons behind
non-working and dormant
situation of small mines needs to
be undertaken by the state
governments.
lThough the National Mineral
Policy (NMP 2008) has envisaged
cluster mining approach in small
mines but the same remains
unimplemented. Operation of
cluster mining over large
mineralised areas like limestone,
dolomite, bauxite, slate, clay
belts, can be considered in
respect of following identified
type areas – a) Indrawad –
Jaitaram Chinaclay belt in Nagaur
district, Rajasthan; b) Kolayat -
Mudh-kotri – Guda fireclay belt
in Bikaner district, Rajasthan; c)
Quartz feldspar mica belt of
Ajmer - Bhiwara in Rajasthan; d)
China clay belt of Singhbhum
district in Jharkhand; e) Graphite
mines in Bolangir districts,
Odisha; f) Jangir – Chopa lime
stone belt in Chhattisgarh; g)
Limestone of katni – Jhukehi and
Satna belt in Madhya Pradesh
and Bhagokot area of Karnataka;
i) Bauxite leases in Jamnagar and
Kutch districts in Gujarat; j)
Limestone mines in Yeotmal
district and Western Ghat bauxite
in Maharashtra; k) Soapstone
and Baryties mines in Andhra
Pradesh; and l) Gypsum and
quartz- feldspar mines in Tamil
Nadu.
lA mechanism for amalgamation
of small leases into one single
lease needs to be evolved along
with the modalities for some
relaxation in forest and
environment clearance. It is
noteworthy that till 2010, small
mines of less than five hectare
areas were exempted from
environmental clearances. The
same rule needs to be applicable
again.
lGranting of very small leases by
sub dividing of a large deposit
should be avoided by the state
governments in the interest of
mineral conservation and
minimum land degradation.
lThe minimum area for grant of a
mining lease for major mineral
needs to be enhanced to 10
hectares. n
L to R: Koldo Gutierrez Boada, Ennera;
Ashok Parija, Senior Advocate, Supreme Court of
India; Syedain Abbasi, Joint Secretary, Ministry of Steel; A N Joshi,
Sesa Sterlite Limited; M Sengupta, Indian Bureau of Mines and S B S Chauhan,
Adviser, FICCI Mining Committee.
October 2013 33n nFICCI Business Digest
many proposals in the offing such
as increase in stipend by 40 per
cent, more vocational training
centers for women, PPP mode will
be adhered for training-the-trainer
programme, sanction of more
funds for skilling and upskilling
workforce, domestic skill
competitions and amendment in
the Apprenticeship Act, which will
be implemented soon.
Jan Henderson, High
Commissioner of New Zealand to
India, said that shortage of skilled
labour is a global challenge but
India needs to address this issue
urgently because of its
demographic dividend. She added,
New Zealand has rich experience in
skill development and can share its
expertise and partner with India in
skilling its workforce.
Naina Lal Kidwai, President, FICCI,
said, “In view of the difficult
economic situation that we are in, I
believe this is the right time to
focus on skills development to
minimise wastage and improve
productivity. I urge the industry to
whole-heartedly support the Sector
Skill Councils to become more
effective. Through the Sector Skill
Councils, India Inc. needs to reach
out to the aspiring unemployed.”
The FICCI Chief said that for
facilitating the skilling process and
for industry to participate whole
heartedly, conducive policies are
required. “We need to create a pull
factor both for the youth and
industry participate. Recently, some
of the notifications received on the
issues of removing private training
partners affiliated to NSDC from
the negative list of service tax and
the industry getting left out of the
provisions of section 35 CCD need
to be reviewed. The enthusiasm
now being shown by industry to
take the lead should not be
dampened,” Kidwai cautioned.
Tine Staermose Director, ILO
Decent Work Team for South Asia
and Country Office for India, said
that the rate of unemployment in
India is at an unacceptable level
and the labour conditions have
either marginally improved or
remained the same. Effective
leadership is needed to overcome
this situation. There must be a link
between leadership, needs of
labour and organisation's
performance, which is missing at
present.
J P Rai, Director General, National
Skills Development Agency, said
that there is a need to inculcate the
value of skills in today's youth. We
must recognise the importance of
training providers and they must
reach out to the district level.
According to Siddhartha Das,
National Skills Leader, EY, “It is time
to join hands with India Inc. to
stimulate and nurture the
entrepreneurial ecosystem. The
industry sector in India is now
poised to step up its role in the
country's skill development
initiatives.”
K Venkataraman, CEO and MD,
Larsen &Toubro Ltd, suggested
that the government should set up
Centres of Excellence in various
sectors to combat the shortage of
highly skilled workers.
RCM Reddy, Chairman FICCI Skills
Development Forum, MD and CEO
IL&FS Skills and Education, said
that when it comes to skill
development policy initiatives,
availability of jobs, supply side
management and demand side
issues were some of the major
challenges ahead for India.
Sanjeev Duggal, Co-chairman
FICCI Skills Development Forum
and CEO & Director, Centum
Learning Limited, presented the
vote of thanks. n
32 FICCI Business Digest n n October 2013
jobs but through preferential
employment, increased
salaries/wages and creating an
atmosphere within their companies
for employees to get skilled and
upskilled.
On the occasion, Dr. Raju along
with other dignitaries released a
FICC-EY white paper and another
white paper on 'India New Zealand
Partnership on Skills'.
Dr. Raju and other dignitaries
presented the '2nd FICCI LeapVault
Skills Champion Awards'.
While highlighting the work of his
Ministry, Shikhar Agarwal, Director
General, DGET, Ministry of Labour
& Employment, said that there are
r. Pallam Raju, Union
Minister for Human DResource Development
(HRD), has suggested that industry
could include a minimum
percentage of skilled workforce in
the tendering process of every
manpower intensive project and
increase the minimum percentage
every year by a reasonable margin
based on the life of the project. At
a local level, the industry could
enforce it by ensuring that their
ancillary services like drivers,
housekeeping and security are
certified skilled, besides ensuring
that the people at the shop floor
are certified skilled.
Inaugurating the '6th Global Skills
Summit 2013' in New Delhi on
September 4, 2013, Dr. Raju called
for concentrated efforts to create
an ecosystem that assigns dignity
to vocational education. He said a
massive campaign is required to
ensure that youth in India take up
vocational education and technical
training as a serious career choice
and not as a chance.
The summit was organised by
FICCI in association with the
Ministry of Human Resource
Development, Ministry of Labour &
Employment and National Skills
Development Corporation. Ernst &
Young was the knowledge partner
and New Zealand was the partner
country.
The Minister said the skilling
challenge is further magnified by
the fact that 70 per cent of this
population falls in rural and tribal
India. The numbers are huge and
solving the same is almost
impossible unless there is
integration of skill development
and the formal education system. It
demands a collective effort by
varied government initiatives, PPP
initiatives to set up schools and
training institutes (Public Private
Partnership), National Skills
Qualification Framework and large
and small private players.
He urged FICCI to take the lead in
bringing the industry onboard to
recognise skills not only through
Dr. Pallam Raju, Union Minister for
Human Resource Development (third
from left)and Naina Lal Kidwai,
President, FICCI (on his right), along with
other dignitaries presenting the 2nd
FICCI LeapVault Skills Champion award
to a winner.
HRD Minister suggests inclusion of minimum number of skilled hands for manpower-intensive projects
Category: Skills Training Providers
Centum Learning Limited
Orion Edutech Ovt Ltd
Jetking Infotrain Ltd
Category: Industry
OP Jindal Community Colleges
Shri Ram Industries
Trident Group
Category: Academia
National Institute of Fashion Technology New Delhi
Aliah University
Centurion University
Category: State Government and Body
Rajiv education and Employment Mission in Andhra Pradesh
(REEMAP)
Footwear Design & Development Institute
n
n
n
n
n
n
n
n
n
n
n
Winners of 2nd FICCI LeapVault Skills Champion Awards
October 2013 33n nFICCI Business Digest
many proposals in the offing such
as increase in stipend by 40 per
cent, more vocational training
centers for women, PPP mode will
be adhered for training-the-trainer
programme, sanction of more
funds for skilling and upskilling
workforce, domestic skill
competitions and amendment in
the Apprenticeship Act, which will
be implemented soon.
Jan Henderson, High
Commissioner of New Zealand to
India, said that shortage of skilled
labour is a global challenge but
India needs to address this issue
urgently because of its
demographic dividend. She added,
New Zealand has rich experience in
skill development and can share its
expertise and partner with India in
skilling its workforce.
Naina Lal Kidwai, President, FICCI,
said, “In view of the difficult
economic situation that we are in, I
believe this is the right time to
focus on skills development to
minimise wastage and improve
productivity. I urge the industry to
whole-heartedly support the Sector
Skill Councils to become more
effective. Through the Sector Skill
Councils, India Inc. needs to reach
out to the aspiring unemployed.”
The FICCI Chief said that for
facilitating the skilling process and
for industry to participate whole
heartedly, conducive policies are
required. “We need to create a pull
factor both for the youth and
industry participate. Recently, some
of the notifications received on the
issues of removing private training
partners affiliated to NSDC from
the negative list of service tax and
the industry getting left out of the
provisions of section 35 CCD need
to be reviewed. The enthusiasm
now being shown by industry to
take the lead should not be
dampened,” Kidwai cautioned.
Tine Staermose Director, ILO
Decent Work Team for South Asia
and Country Office for India, said
that the rate of unemployment in
India is at an unacceptable level
and the labour conditions have
either marginally improved or
remained the same. Effective
leadership is needed to overcome
this situation. There must be a link
between leadership, needs of
labour and organisation's
performance, which is missing at
present.
J P Rai, Director General, National
Skills Development Agency, said
that there is a need to inculcate the
value of skills in today's youth. We
must recognise the importance of
training providers and they must
reach out to the district level.
According to Siddhartha Das,
National Skills Leader, EY, “It is time
to join hands with India Inc. to
stimulate and nurture the
entrepreneurial ecosystem. The
industry sector in India is now
poised to step up its role in the
country's skill development
initiatives.”
K Venkataraman, CEO and MD,
Larsen &Toubro Ltd, suggested
that the government should set up
Centres of Excellence in various
sectors to combat the shortage of
highly skilled workers.
RCM Reddy, Chairman FICCI Skills
Development Forum, MD and CEO
IL&FS Skills and Education, said
that when it comes to skill
development policy initiatives,
availability of jobs, supply side
management and demand side
issues were some of the major
challenges ahead for India.
Sanjeev Duggal, Co-chairman
FICCI Skills Development Forum
and CEO & Director, Centum
Learning Limited, presented the
vote of thanks. n
32 FICCI Business Digest n n October 2013
jobs but through preferential
employment, increased
salaries/wages and creating an
atmosphere within their companies
for employees to get skilled and
upskilled.
On the occasion, Dr. Raju along
with other dignitaries released a
FICC-EY white paper and another
white paper on 'India New Zealand
Partnership on Skills'.
Dr. Raju and other dignitaries
presented the '2nd FICCI LeapVault
Skills Champion Awards'.
While highlighting the work of his
Ministry, Shikhar Agarwal, Director
General, DGET, Ministry of Labour
& Employment, said that there are
r. Pallam Raju, Union
Minister for Human DResource Development
(HRD), has suggested that industry
could include a minimum
percentage of skilled workforce in
the tendering process of every
manpower intensive project and
increase the minimum percentage
every year by a reasonable margin
based on the life of the project. At
a local level, the industry could
enforce it by ensuring that their
ancillary services like drivers,
housekeeping and security are
certified skilled, besides ensuring
that the people at the shop floor
are certified skilled.
Inaugurating the '6th Global Skills
Summit 2013' in New Delhi on
September 4, 2013, Dr. Raju called
for concentrated efforts to create
an ecosystem that assigns dignity
to vocational education. He said a
massive campaign is required to
ensure that youth in India take up
vocational education and technical
training as a serious career choice
and not as a chance.
The summit was organised by
FICCI in association with the
Ministry of Human Resource
Development, Ministry of Labour &
Employment and National Skills
Development Corporation. Ernst &
Young was the knowledge partner
and New Zealand was the partner
country.
The Minister said the skilling
challenge is further magnified by
the fact that 70 per cent of this
population falls in rural and tribal
India. The numbers are huge and
solving the same is almost
impossible unless there is
integration of skill development
and the formal education system. It
demands a collective effort by
varied government initiatives, PPP
initiatives to set up schools and
training institutes (Public Private
Partnership), National Skills
Qualification Framework and large
and small private players.
He urged FICCI to take the lead in
bringing the industry onboard to
recognise skills not only through
Dr. Pallam Raju, Union Minister for
Human Resource Development (third
from left)and Naina Lal Kidwai,
President, FICCI (on his right), along with
other dignitaries presenting the 2nd
FICCI LeapVault Skills Champion award
to a winner.
HRD Minister suggests inclusion of minimum number of skilled hands for manpower-intensive projects
Category: Skills Training Providers
Centum Learning Limited
Orion Edutech Ovt Ltd
Jetking Infotrain Ltd
Category: Industry
OP Jindal Community Colleges
Shri Ram Industries
Trident Group
Category: Academia
National Institute of Fashion Technology New Delhi
Aliah University
Centurion University
Category: State Government and Body
Rajiv education and Employment Mission in Andhra Pradesh
(REEMAP)
Footwear Design & Development Institute
n
n
n
n
n
n
n
n
n
n
n
Winners of 2nd FICCI LeapVault Skills Champion Awards
34 n FICCI Business Digest n 2013October
ith a plethora of
allegations surrounding Wcorporate misconduct,
fraud and bribery; corporate
accountability has become a
pressing issue today. Amongst
others, legislations such as the
Companies Act, 2013 has raised the
bar of how companies need to
evaluate themselves. The Act has
brought the subject of Corporate
Social Responsibility (CSR) to the
forefront.
The Act makes it mandatory for
certain companies to spend
specified amounts on CSR
initiatives and activities with
appropriate disclosures of the
spend. In addition, the Act would
now change the way India Inc.
looks at corporate governance,
since fraud and wrongful gain have
been defined for the first time in
the Act, apart from penalties and
punishment for fraud involving
imprisonment. The Act, thus makes
companies and its officers more
accountable and brings new
concepts to better regulate
companies. Therefore, dealing with
elements of ethics, transparency
and fraud in business is thus not an
option anymore.
Considering today's challenging
and uncertain business
environment, and with increased
legislative and regulatory
requirements, there is a greater
need for organisations to
understand and address fraud and
corruption risks, as well as being
able to suitably respond to these
challenges.
To address this issue, FICCI Aditya
Birla CSR Centre for Excellence and
Deloitte Touche Tohmatsu India
Private Limited along with a
dedicated section of legal experts
from AZB & Partners have come
together to create a report that will
help stakeholders with actionable
points to mitigate fraud and
corruption risks. The report
'Corporate Resiliency: Managing
the Growing Risk of Fraud and
Corruption' covers vital information
on the link between ethics and
business, existing regulatory
regimes in India and steps to
combat fraud in business.
The report was released on
September 26, 2013, during a
round table discussion organised
by FICCI Aditya Birla CSR Centre for
Excellence and Deloitte Forensic
India. Some of the experts present
were Percy Billimoria, Partner from
AZB & Partners; Pooran Pandey,
CEO, GCN; Gordon Smith, Senior
Director and COO, Financial
Advisory, Deloitte (India) and Brig.
Rajiv Williams, Corporate Head-
CSR, Jindal Stainless Limited.
For a copy of the report, please send
your request to [email protected]
n
Corporate accountability a pressing issue now
L to R: Pooran Pandey, CEO, GCN India; Gordon Smith, Senior Director and COO, Financial Advisory, Deloitte (India); Dr. K K
Upadhyay, Head-CSR, FICCI; Brig. Rajiv Williams, Corporate Head-CSR, Jindal Stainless Limited; Percy Billimoria, Partners from AZB
& Partners and Veena Sharma, Director, Deloitte Forensic India.
October 2013 35n nFICCI Business Digest
here should you invest
in these challenging Wtimes? That's the
million-dollar question that agitates
the minds of all who have the funds
to make their money grow. Should
it be real estate, the stock market,
jewellery or art?
The fact is there is no answer that
is beyond question. Yet, experts
from the business of real estate,
jewellery, stock market and art,
vigorously advanced their areas of
activity as the preferred investment
choice while cautioning against the
pitfalls and giving tips on safe
investments at a FICCI Ladies
Organisation (FLO) programme in
New Delhi on September 30, 2013.
Gagan Singh, CEO Business,
Jones Lang Lasalle, cautioned
against putting all investible
surplus in one basket. “Spread the
risk and invest in real estate now
and take advantage of the lower
values”, she said and added that in
the NCR region, investment in
residential segment in Gurgaon and
Noida are good with a projected
increase in appreciation ranging
between 35 per cent and 45 per
cent in the next three years.
Subhash Bhola, Partner,
Bholasons Jewellers, advocated that
investments in gold, emerald and
ruby would yield high returns in the
coming years. He said, “One must
always buy certified stones and
hallmarked gold with an invoice
because it assures one of safe
investment and later makes selling
of the asset easy.”
Roshini Vadehra, Vadehra Art
Gallery, said that art can be one of
the best investments but one needs
to exercise care as the market is not
transparent and fakes are aplenty.
While buying a piece of art one
must undertake in-depth research
and have the understanding of the
artist, collection and genre of the
work.
Neena Prasad, Singapore Stock
Exchange, said that the smart way
to invest is in all asset classes.
Wealth management is a science
and an art and one should not
attach themselves emotionally to
their investments. An investor
needs to take a disciplined
approach for asset allocation and
must track their investments to take
advantage of the volatility of the
market. n
Where to invest: real estate, stock market, jewellery art
FLO event spotlightsand
Panellists at the FICCI Ladies
Organisation programme.
Wealth management
is a science and an
art and one should
not attach
themselves
emotionally to their
investments.
34 n FICCI Business Digest n 2013October
ith a plethora of
allegations surrounding Wcorporate misconduct,
fraud and bribery; corporate
accountability has become a
pressing issue today. Amongst
others, legislations such as the
Companies Act, 2013 has raised the
bar of how companies need to
evaluate themselves. The Act has
brought the subject of Corporate
Social Responsibility (CSR) to the
forefront.
The Act makes it mandatory for
certain companies to spend
specified amounts on CSR
initiatives and activities with
appropriate disclosures of the
spend. In addition, the Act would
now change the way India Inc.
looks at corporate governance,
since fraud and wrongful gain have
been defined for the first time in
the Act, apart from penalties and
punishment for fraud involving
imprisonment. The Act, thus makes
companies and its officers more
accountable and brings new
concepts to better regulate
companies. Therefore, dealing with
elements of ethics, transparency
and fraud in business is thus not an
option anymore.
Considering today's challenging
and uncertain business
environment, and with increased
legislative and regulatory
requirements, there is a greater
need for organisations to
understand and address fraud and
corruption risks, as well as being
able to suitably respond to these
challenges.
To address this issue, FICCI Aditya
Birla CSR Centre for Excellence and
Deloitte Touche Tohmatsu India
Private Limited along with a
dedicated section of legal experts
from AZB & Partners have come
together to create a report that will
help stakeholders with actionable
points to mitigate fraud and
corruption risks. The report
'Corporate Resiliency: Managing
the Growing Risk of Fraud and
Corruption' covers vital information
on the link between ethics and
business, existing regulatory
regimes in India and steps to
combat fraud in business.
The report was released on
September 26, 2013, during a
round table discussion organised
by FICCI Aditya Birla CSR Centre for
Excellence and Deloitte Forensic
India. Some of the experts present
were Percy Billimoria, Partner from
AZB & Partners; Pooran Pandey,
CEO, GCN; Gordon Smith, Senior
Director and COO, Financial
Advisory, Deloitte (India) and Brig.
Rajiv Williams, Corporate Head-
CSR, Jindal Stainless Limited.
For a copy of the report, please send
your request to [email protected]
n
Corporate accountability a pressing issue now
L to R: Pooran Pandey, CEO, GCN India; Gordon Smith, Senior Director and COO, Financial Advisory, Deloitte (India); Dr. K K
Upadhyay, Head-CSR, FICCI; Brig. Rajiv Williams, Corporate Head-CSR, Jindal Stainless Limited; Percy Billimoria, Partners from AZB
& Partners and Veena Sharma, Director, Deloitte Forensic India.
October 2013 35n nFICCI Business Digest
here should you invest
in these challenging Wtimes? That's the
million-dollar question that agitates
the minds of all who have the funds
to make their money grow. Should
it be real estate, the stock market,
jewellery or art?
The fact is there is no answer that
is beyond question. Yet, experts
from the business of real estate,
jewellery, stock market and art,
vigorously advanced their areas of
activity as the preferred investment
choice while cautioning against the
pitfalls and giving tips on safe
investments at a FICCI Ladies
Organisation (FLO) programme in
New Delhi on September 30, 2013.
Gagan Singh, CEO Business,
Jones Lang Lasalle, cautioned
against putting all investible
surplus in one basket. “Spread the
risk and invest in real estate now
and take advantage of the lower
values”, she said and added that in
the NCR region, investment in
residential segment in Gurgaon and
Noida are good with a projected
increase in appreciation ranging
between 35 per cent and 45 per
cent in the next three years.
Subhash Bhola, Partner,
Bholasons Jewellers, advocated that
investments in gold, emerald and
ruby would yield high returns in the
coming years. He said, “One must
always buy certified stones and
hallmarked gold with an invoice
because it assures one of safe
investment and later makes selling
of the asset easy.”
Roshini Vadehra, Vadehra Art
Gallery, said that art can be one of
the best investments but one needs
to exercise care as the market is not
transparent and fakes are aplenty.
While buying a piece of art one
must undertake in-depth research
and have the understanding of the
artist, collection and genre of the
work.
Neena Prasad, Singapore Stock
Exchange, said that the smart way
to invest is in all asset classes.
Wealth management is a science
and an art and one should not
attach themselves emotionally to
their investments. An investor
needs to take a disciplined
approach for asset allocation and
must track their investments to take
advantage of the volatility of the
market. n
Where to invest: real estate, stock market, jewellery art
FLO event spotlightsand
Panellists at the FICCI Ladies
Organisation programme.
Wealth management
is a science and an
art and one should
not attach
themselves
emotionally to their
investments.
October 2013 37n nFICCI Business Digest
engagements at bilateral, sub-
regional and pan-Africa level to
further trade, investment,
technology transfer, skills
development, capacity building,
SME development etc.
The members also took note of
the various activities like setting up
of country desks, developing
business guides, developing
business directories, regularly
organising roundtables with the
relevant stakeholders in India and
Africa.
The members of the council
strongly felt that visa and
connectivity are two important
aspects that have to be worked
upon on priority to deepen the
engagement between both sides.
They emphasised that
considering the importance that
both sides hold for each other, the
governments should consider
providing long term (1-2 year)
multiple entry visa to bonafide
businessmen on the
recommendation of the apex
chambers of commerce and
industry of India and recognised
private sector bodies in Africa.
The members would recommend
more self-reliant and economically
vibrant.
The members recognised that
India and Africa have undergone
significant economic
transformation, in particular over
the last decades. Linked by history
and civilisations, India and Africa
have been close allies and this
should continue.
The council took note of the
progress made since its first
meeting held in March 2012 at New
Delhi, India and appreciated that
the Africa-India engagements have
intensified with substantial progress
achieved across the board on
different areas.
The members noted that five
working groups have been
constituted to explore and promote
the agenda of the business council.
It was felt that increased
cooperation in the focus sectors of
five working groups has the
potential to provide a new thrust to
bilateral trade, investment and
economic cooperation.
The members of the five working
groups discussed their agenda for
the coming year and recommended
concrete action plan to promote
government/s of both sides to
make renewed efforts to bring
about greater connectivity between
India and Africa, especially, by air
and sea.
The council decided to share the
data on investments between India
and Africa on a half-yearly basis.
This shall be done by DIPP from
Indian side and AUC from Africa.
Recognising the need for
promoting African industrialisation,
the members agreed to explore
opportunities for value addition at
source in their agenda for
investment cooperation.
The Council members agreed to
interact regularly for a focused and
result oriented plan of action under
the umbrella of the working
groups.
The Africa-India Business Council
members also interacted with the
Trade Ministers from Africa and
India and discussed with them the
shared vision of industry on both
sides. They assured the policy
makers their full support in
achieving the vision that the
leaders have set for mutual growth
and also sought the support of the
governments to achieve the true
potential for economic growth.
Supplementing on-going and
future programmes of India and
Africa at the bilateral, regional and
other levels, the Africa-India
Business Council members agreed
to meet alongside the next Africa-
India Trade Ministers meeting in
India.
AIBC members also agreed Africa
related issues and initiatives should
be flagged to the AUC which in
turn will refer them to RECs and
Member States respectively. n
Participants at the 2nd Africa-India Business Council meeting in Johannesburg.
he members of the Africa-
India Business Council, Trepresenting the voice of
industry in Africa and India met on
October 1, 2013 in Johannesburg,
South Africa, for the 2nd meeting
the Council to deliberate,
consolidate and explore mutually
beneficial economic engagement
between the two sides.
The business council was led by
Dr Bright Chunga, Acting Co-Chair,
AIBC from Africa and Sunil Bharti
Mittal, Co-Chair AIBC from India.
The meeting was attended by
leading industry and institutions
from Africa and India.
The business leaders from both
sides expressed satisfaction on the
deepening and comprehensive
politico-socio-economic relations
between Africa and India. As long-
standing strategic partners in
progress of each other, both sides
reaffirmed their commitment to
work together with a balanced and
rewarding approach, bearing in
mind each other's development
priorities, based on common
shared values.
The business council, with
members representing industry of
both sides, discussed the possible
partnerships at bilateral, regional
and continental level. The council
deliberated on the issues that are
bottlenecks in achieving the true
potential of Africa–India
partnership and suggested the
possible mechanisms to address
the same. The members felt that
such mechanisms will inter alia,
strengthen economic cooperation
and facilitate a coordinated
approach to undertake initiatives to
steer economic growth in the
current challenging times.
While the trade and investment
relations between Africa and India
have helped the two sides in their
socio-economic capacity building,
the members realise that with the
economic developments around
the globe, it is time to build upon
the positive achievements and
support each other in becoming
36 FICCI Business Digest n n October 2013
t INTERNATIONAL INITIATIVES
Africa-India Business Council's visa connectivity issues
call to sort out and
INTERNATIONAL INITIATIVESt
L to R: Dr. Bright Chunga, Acting
Co-Chair, AIBC from Africa; Dr Anthony
Maruping, Commissioner of Economic
Affairs, AUC and Sunil Bharti Mittal,
Co-Chair AIBC from India.
October 2013 37n nFICCI Business Digest
engagements at bilateral, sub-
regional and pan-Africa level to
further trade, investment,
technology transfer, skills
development, capacity building,
SME development etc.
The members also took note of
the various activities like setting up
of country desks, developing
business guides, developing
business directories, regularly
organising roundtables with the
relevant stakeholders in India and
Africa.
The members of the council
strongly felt that visa and
connectivity are two important
aspects that have to be worked
upon on priority to deepen the
engagement between both sides.
They emphasised that
considering the importance that
both sides hold for each other, the
governments should consider
providing long term (1-2 year)
multiple entry visa to bonafide
businessmen on the
recommendation of the apex
chambers of commerce and
industry of India and recognised
private sector bodies in Africa.
The members would recommend
more self-reliant and economically
vibrant.
The members recognised that
India and Africa have undergone
significant economic
transformation, in particular over
the last decades. Linked by history
and civilisations, India and Africa
have been close allies and this
should continue.
The council took note of the
progress made since its first
meeting held in March 2012 at New
Delhi, India and appreciated that
the Africa-India engagements have
intensified with substantial progress
achieved across the board on
different areas.
The members noted that five
working groups have been
constituted to explore and promote
the agenda of the business council.
It was felt that increased
cooperation in the focus sectors of
five working groups has the
potential to provide a new thrust to
bilateral trade, investment and
economic cooperation.
The members of the five working
groups discussed their agenda for
the coming year and recommended
concrete action plan to promote
government/s of both sides to
make renewed efforts to bring
about greater connectivity between
India and Africa, especially, by air
and sea.
The council decided to share the
data on investments between India
and Africa on a half-yearly basis.
This shall be done by DIPP from
Indian side and AUC from Africa.
Recognising the need for
promoting African industrialisation,
the members agreed to explore
opportunities for value addition at
source in their agenda for
investment cooperation.
The Council members agreed to
interact regularly for a focused and
result oriented plan of action under
the umbrella of the working
groups.
The Africa-India Business Council
members also interacted with the
Trade Ministers from Africa and
India and discussed with them the
shared vision of industry on both
sides. They assured the policy
makers their full support in
achieving the vision that the
leaders have set for mutual growth
and also sought the support of the
governments to achieve the true
potential for economic growth.
Supplementing on-going and
future programmes of India and
Africa at the bilateral, regional and
other levels, the Africa-India
Business Council members agreed
to meet alongside the next Africa-
India Trade Ministers meeting in
India.
AIBC members also agreed Africa
related issues and initiatives should
be flagged to the AUC which in
turn will refer them to RECs and
Member States respectively. n
Participants at the 2nd Africa-India Business Council meeting in Johannesburg.
he members of the Africa-
India Business Council, Trepresenting the voice of
industry in Africa and India met on
October 1, 2013 in Johannesburg,
South Africa, for the 2nd meeting
the Council to deliberate,
consolidate and explore mutually
beneficial economic engagement
between the two sides.
The business council was led by
Dr Bright Chunga, Acting Co-Chair,
AIBC from Africa and Sunil Bharti
Mittal, Co-Chair AIBC from India.
The meeting was attended by
leading industry and institutions
from Africa and India.
The business leaders from both
sides expressed satisfaction on the
deepening and comprehensive
politico-socio-economic relations
between Africa and India. As long-
standing strategic partners in
progress of each other, both sides
reaffirmed their commitment to
work together with a balanced and
rewarding approach, bearing in
mind each other's development
priorities, based on common
shared values.
The business council, with
members representing industry of
both sides, discussed the possible
partnerships at bilateral, regional
and continental level. The council
deliberated on the issues that are
bottlenecks in achieving the true
potential of Africa–India
partnership and suggested the
possible mechanisms to address
the same. The members felt that
such mechanisms will inter alia,
strengthen economic cooperation
and facilitate a coordinated
approach to undertake initiatives to
steer economic growth in the
current challenging times.
While the trade and investment
relations between Africa and India
have helped the two sides in their
socio-economic capacity building,
the members realise that with the
economic developments around
the globe, it is time to build upon
the positive achievements and
support each other in becoming
36 FICCI Business Digest n n October 2013
t INTERNATIONAL INITIATIVES
Africa-India Business Council's visa connectivity issues
call to sort out and
INTERNATIONAL INITIATIVESt
L to R: Dr. Bright Chunga, Acting
Co-Chair, AIBC from Africa; Dr Anthony
Maruping, Commissioner of Economic
Affairs, AUC and Sunil Bharti Mittal,
Co-Chair AIBC from India.
October 2013 39n nFICCI Business Digest
concessions which might not be in
favour of the domestic industry,
and that could have been tackled
at the negotiation stages
favourably.
The conclusion of RCEP is
expected to open greater
opportunity for India to invest in
these countries and at the same
time increase the potential for FDI
inflows into India. This also
provides an opportunity for India
to be a part of the regional value
chain and access to growing
markets.
According to the recently
published joint report of OECD,
WTO and UNCTAD, Global Value
Chains (GVCs) have become a
dominant feature of world trade
and investment, offering new
prospects for growth, development
and jobs. India has already missed
the bus in being part of the global
value chain revolution that took in
this part of the world in 1990s and
early 2000. It is time now for India
to capitalise and integrate herself
with regional value chain. Some of
the members of the RCEP are
leading players of the value chain
in some of the segments.
There are challenges, too, that
would come with the conclusion of
RCEP negotiations. Some of the
domestic Indian industry may get
affected by implication of tariff
reduction. Negotiations always
have a trade off. India shall have to
compromise on some areas to gain
in others. The Indian negotiators
have an arduous job to balance
losses with gains emerging out of
this negotiation.
India's total trade with RCEP
countries accounts for 24.5 per cent
of its global trade in 2012-13. It is
interesting to note that percentage
of ASEAN and China to India's total
trade with RCEP countries is quite
close. The main beneficiary of this
RCEP negotiation appears to be
China, the only country in RCEP
with which India does not have an
FTA or negotiating FTA. Many
experts have advocated that
ASEAN+1FTAs to be the baseline
for negotiation in RCEP. That means
for each member country having an
FTA with ASEAN, in its existing
framework, would act as a baseline
for further negotiation under RCEP.
Under this criterion, India would
be expected to negotiate on India-
ASEAN FTA as a baseline for
negotiations under RCEP. China,
with which India does not have an
FTA, under this arrangement would
automatically gets preferential tariff
with India, even if Indian does not
make any further concession which
is very unlikely.
The six FTA Partners of ASEAN
have committed to eliminating
more than 90 per cent of tariff lines
with respect to ASEAN+1 FTAs,
except India which has left this
figure at 78.8 per cent. Under RCEP
it could well be 95 per cent. The
commitment made under
ASEAN+1 FTAs is challenging even
for FTA between two countries. The
negotiations under RCEP, therefore,
seem challenging. However, if
completed and once in force this
would usher in a new model of
regional trading. RCEP agreement
would bypass all negotiations that
exist among the member countries
of RCEP and subsume them into
one regional agreement.
India has a trade deficit of over
US$ 38 billion with China. It is
feared that once the RCEP comes
into being, the region market
would be swept away by Chinese
goods. Other RCEP member
countries are also wary of this fact.
Unless India identifies and
enlarges its trade basket with
China, India's trade deficit might
increase. Nevertheless, it also
provides an opportunity for India to
get more access into Chinese
t INTERNATIONAL INITIATIVES
market for Indian goods.
The fear that China will gain a
larger share in the region's market
could not be taken as an excuse to
abstain from joining the RCEP
negotiations. With the world
working towards the Trans Pacific
Partnership (TPP) and Transatlantic
Trade and Investment Partnership
(TTIP), it makes even more
important for India to join the
regional grouping to balance the
impact of other trade negotiations
taking place in the world. As these
arrangements would have direct
bearing on countries not part of
these trade agreements, the only
way to counter any imbalance
arising out of these is to be a part
of a strong regional trading
arrangement: some of the
members of TPP are also members
of RCEP and this could bring in the
element of TPP into RCEP. Instead
of dealing individually with these
trade negotiations, collective
efforts would enhance the
negotiating power.
* Amit Prasad is Deputy Director,
FICCI. (Views are personal.)
n
38 FICCI Business Digest n n October 2013
ndia was recently at the
negotiation table with other Imembers of the Regional
Comprehensive Economic
Partnership Agreement (RCEP),
which comprises 10 countries of
ASEAN +6 i.e. China, India, Japan,
Korea, Australia and New Zealand
with which ASEAN has bilateral
trade negotiations in the form of
FTAs. This is a not a classical FTA
but an attempt to forge an
economic integration agreement.
India has FTAs with all RCEP
members except with China,
Australia, and New Zealand.
However, India is in bilateral trade
negotiations with Australia and
New Zealand.
The first meeting of the RCEP was
held in Brunei in May this year,
followed by the second meeting of
Trade Negotiating Committee in
September 2013 in Brisbane,
Australia. The next round of
negotiations will take place in
Malaysia in January 2014. The
negotiations are expected to
conclude by 2015.
RCEP offers both challenges and
opportunities for India. Should
India have decided to keep herself
away from this regional negotiation
process? That would have meant
keeping herself at bay from the
rule-making processes that would
reshape the trading rules in the
region. Non-participation at the
negotiating process, now, would
have closed the door for India for
safeguarding her interest and could
have had negatively impacted its
domestic market and exports
potential. Later, if India decides to
join the group, she would be
expected to make several
t INTERNATIONAL INITIATIVES
Regional Comprehensive Economic Partnership Agreement
Opportunity and challenges Amit Prasad*
The fear that China
will gain a larger share
in the region's market
could not be taken as
an excuse to abstain
from joining the RCEP
negotiations.
October 2013 39n nFICCI Business Digest
concessions which might not be in
favour of the domestic industry,
and that could have been tackled
at the negotiation stages
favourably.
The conclusion of RCEP is
expected to open greater
opportunity for India to invest in
these countries and at the same
time increase the potential for FDI
inflows into India. This also
provides an opportunity for India
to be a part of the regional value
chain and access to growing
markets.
According to the recently
published joint report of OECD,
WTO and UNCTAD, Global Value
Chains (GVCs) have become a
dominant feature of world trade
and investment, offering new
prospects for growth, development
and jobs. India has already missed
the bus in being part of the global
value chain revolution that took in
this part of the world in 1990s and
early 2000. It is time now for India
to capitalise and integrate herself
with regional value chain. Some of
the members of the RCEP are
leading players of the value chain
in some of the segments.
There are challenges, too, that
would come with the conclusion of
RCEP negotiations. Some of the
domestic Indian industry may get
affected by implication of tariff
reduction. Negotiations always
have a trade off. India shall have to
compromise on some areas to gain
in others. The Indian negotiators
have an arduous job to balance
losses with gains emerging out of
this negotiation.
India's total trade with RCEP
countries accounts for 24.5 per cent
of its global trade in 2012-13. It is
interesting to note that percentage
of ASEAN and China to India's total
trade with RCEP countries is quite
close. The main beneficiary of this
RCEP negotiation appears to be
China, the only country in RCEP
with which India does not have an
FTA or negotiating FTA. Many
experts have advocated that
ASEAN+1FTAs to be the baseline
for negotiation in RCEP. That means
for each member country having an
FTA with ASEAN, in its existing
framework, would act as a baseline
for further negotiation under RCEP.
Under this criterion, India would
be expected to negotiate on India-
ASEAN FTA as a baseline for
negotiations under RCEP. China,
with which India does not have an
FTA, under this arrangement would
automatically gets preferential tariff
with India, even if Indian does not
make any further concession which
is very unlikely.
The six FTA Partners of ASEAN
have committed to eliminating
more than 90 per cent of tariff lines
with respect to ASEAN+1 FTAs,
except India which has left this
figure at 78.8 per cent. Under RCEP
it could well be 95 per cent. The
commitment made under
ASEAN+1 FTAs is challenging even
for FTA between two countries. The
negotiations under RCEP, therefore,
seem challenging. However, if
completed and once in force this
would usher in a new model of
regional trading. RCEP agreement
would bypass all negotiations that
exist among the member countries
of RCEP and subsume them into
one regional agreement.
India has a trade deficit of over
US$ 38 billion with China. It is
feared that once the RCEP comes
into being, the region market
would be swept away by Chinese
goods. Other RCEP member
countries are also wary of this fact.
Unless India identifies and
enlarges its trade basket with
China, India's trade deficit might
increase. Nevertheless, it also
provides an opportunity for India to
get more access into Chinese
t INTERNATIONAL INITIATIVES
market for Indian goods.
The fear that China will gain a
larger share in the region's market
could not be taken as an excuse to
abstain from joining the RCEP
negotiations. With the world
working towards the Trans Pacific
Partnership (TPP) and Transatlantic
Trade and Investment Partnership
(TTIP), it makes even more
important for India to join the
regional grouping to balance the
impact of other trade negotiations
taking place in the world. As these
arrangements would have direct
bearing on countries not part of
these trade agreements, the only
way to counter any imbalance
arising out of these is to be a part
of a strong regional trading
arrangement: some of the
members of TPP are also members
of RCEP and this could bring in the
element of TPP into RCEP. Instead
of dealing individually with these
trade negotiations, collective
efforts would enhance the
negotiating power.
* Amit Prasad is Deputy Director,
FICCI. (Views are personal.)
n
38 FICCI Business Digest n n October 2013
ndia was recently at the
negotiation table with other Imembers of the Regional
Comprehensive Economic
Partnership Agreement (RCEP),
which comprises 10 countries of
ASEAN +6 i.e. China, India, Japan,
Korea, Australia and New Zealand
with which ASEAN has bilateral
trade negotiations in the form of
FTAs. This is a not a classical FTA
but an attempt to forge an
economic integration agreement.
India has FTAs with all RCEP
members except with China,
Australia, and New Zealand.
However, India is in bilateral trade
negotiations with Australia and
New Zealand.
The first meeting of the RCEP was
held in Brunei in May this year,
followed by the second meeting of
Trade Negotiating Committee in
September 2013 in Brisbane,
Australia. The next round of
negotiations will take place in
Malaysia in January 2014. The
negotiations are expected to
conclude by 2015.
RCEP offers both challenges and
opportunities for India. Should
India have decided to keep herself
away from this regional negotiation
process? That would have meant
keeping herself at bay from the
rule-making processes that would
reshape the trading rules in the
region. Non-participation at the
negotiating process, now, would
have closed the door for India for
safeguarding her interest and could
have had negatively impacted its
domestic market and exports
potential. Later, if India decides to
join the group, she would be
expected to make several
t INTERNATIONAL INITIATIVES
Regional Comprehensive Economic Partnership Agreement
Opportunity and challenges Amit Prasad*
The fear that China
will gain a larger share
in the region's market
could not be taken as
an excuse to abstain
from joining the RCEP
negotiations.
t IN THE STATES
he third seminar under
ICRIER-KAS series 2013 on T'India's Regulatory
Framework and the Twelfth Five
Year Plan (2012-17)' was organised
by ICRIER, KAS and FICCI on
September 25, 2013 in Kolkata.
Regulatory issues are both a
challenge and a priority for the
government to achieve targets
under the 12th Plan, and in order
to continue attracting private
investments, the government has
to undertake reforms that ensure
transparency and reduce
uncertainty in the regulatory
environment.
Partha Chatterjee, Minister,
Commerce & Industry, PE, IR, IT
and Parliamentary Affairs,
Government of West Bengal,
highlighted some of the thrust
areas of West Bengal Industrial
Policy 2013. To eliminate systemic
bottlenecks in the process of
industrialization, the state
government has introduced 'Shilpa
Sathi', a single window clearance
for the industrial proposals.
The state has also undertaken the
largest IT-driven reform process,
which include major steps in
simplification of tax structure and
creating a tax-friendly regime. The
Minister mentioned that 'The West
Bengal State Support for Industries
Scheme, 2013' has been declared
by the government to provide an
array of incentives to industry. The
state will pay eight per cent annual
interest on the monetary incentive
due to a unit, which is a landmark
step. The government will develop
a 'State Manufacturing
Competitiveness Programme' to
boost the manufacturing industry
and a State Policy on PPP mode to
facilitate private investment in
infrastructure.
Arun Maira, Member, Planning
Commission, Government of India,
in his key note address, pointed out
some strategies to convert plans to
results such as ramping up the
business regulatory environment,
utilising human assets, focus on
MSME sector, correct policies with
respect to industry and trade.
Maira mentioned that there was a
clear mismatch between theory
towards regulation and its practical
application. There was a special
need to convert reforms in to
results. The key strategies and
recommendation include follow up
with previous administration and
regulatory reforms, systemisation
of regulation and governance, e-
business mission mode, regulatory
impact assessment, developing
ongoing process of stakeholder
consultation and capacity building
to carry out regulatory reforms.
States of India are needed to be
consulted, if we want good
governance.
Gaurav Swarup, Chairman, FICCI
West Bengal State Council, said
that the regulatory climate in India
can still be described as one that is
in transition. He stressed on the
need to drive the manufacturing
growth in the country. Though
Indian economy had recorded
impressive growth rates over the
past decades, most of the growth
came from the service sector
whereas manufacturing sector had
underperformed.
Dr. Rajat Kathuria, Director &
Chief Executive, Indian Council for
Research on International
Economic Relations (ICRIER),
mentioned that the regulatory
environment had suffered from
weak institutional architecture,
fragile implementation record and
relatively weak consultation
between the government and
business. India was a
heterogeneous country and this
should be accounted for in the
design of the regulatory
framework.
Mareen Haring, Deputy
Programme Coordinator, KAS,
highlighted the initiatives of KAS
foundation, which is active in India
since 1968. n
40 FICCI Business Digest n n October 2013
L to R: Arun Maira, Member, Planning Commission, Government of India; Dr. Rajat
Kathuria, Director & CE, Indian Council for Research on International Economic
Relations; Partha Chatterjee, Minister, Commerce & Industry, PE, IR, IT and
Parliamentary Affairs, Government of West Bengal; Gaurav Swarup, Chairman, FICCI
West Bengal State Council and Mareen Haring, Deputy Programme Coordinator, KAS.
Transparent regulation necessary to meet
12th Plan targets: Arun Maira
October 2013 41n nFICCI Business Digest
t IN THE STATES
truly believe, this is the golden
period for the Indian textiles Iindustry,” stated Dr. K S Rao,
Union Minister for Textiles, while
inaugurating the 5th edition of
FICCI-TAG 2013 Summit in Mumbai
on October 11, 2013. Dr. Rao
further mentioned that the textile
industry was facing challenges in
terms of skilled manpower,
uninterrupted power supply and
fluctuation in prices of cotton and
yarn.
He suggested that the industry
should also take initiatives on its
own such as setting up of captive
power plants, training facilities and
R&D centre with the help of the
Central and state governments. Dr.
Rao added that labour laws needed
to be revised and a night shift for
women should be permitted in
textiles and apparel industry as
permitted in IT & ITeS industries.
Zohra Chatterji, Secretary-Textiles,
said that the continuation of key
government schemes such as
Technology Upgradation Funds
Scheme (TUFS), with an additional
allocation of Rs. 11,952 crore as per
the 12th Plan would propel
investment of more than Rs. 2 lakh
crore. The Ministry of Textiles has
also launched Integrated Skill
Development Scheme (ISDS) with a
target of training 10 million people
by 2022 in the textiles industry.
Chatterji was happy to see FICCI
work diligently in technical textiles
industry, which is growing at a
robust rate of 20 per cent and
expected to reach 1.58 lakh crore
by 2016-17.
Manoj Saunik, Principal Secretary,
Textiles, Government of
Maharashtra, stated that the main
feature of the new Maharashtra
Textile Policy was the provision of
interest subsidy over and above all
subsidies being provided by Central
government schemes. He informed
that the state government would
soon be coming out with a new
scheme, and delink the TUFS with
state policy in order to provide
more incentives to textile industry
and make them globally
competitive.
Suresh Kotak, Chairman, Sub-
group on Textiles of FICCI
Maharashtra State Council,
suggested that in order to
maximise the incentives being
given by the Central government
for technical textiles, a clear
distinction between technical
textiles items from conventional
textiles should be done on the
basis of HS codes. He also
suggested that the latest industry
standards should be put in place
for technical textile items in order
to instil confidence in consumers'
purchase.
Rashesh Shah, Chairman, FICCI
Maharashtra State Council,
suggested that since the textile
sector was the second largest
employment generating industry
with indirect employment of 100
million people, it should be given
status of 'priority sector' so that the
resources to fund its expansion
plans, which is around US$ 60
billion, can be accessed through
banking and financial institutions.
The Union Minister along with
other dignitaries released the
FICCI-Technopak report on the
textile industry, focusing on
'Building Competitive Advantage:
Challenges & Way Forward'.
A B Joshi, Textile Commissioner,
Ministry of Textiles, also attended
the event. n
Need to re-visit labour laws to boost textiles sector
“ L to R: Amit Gugnani, Senior Vice
President, Technopak; Dr. Arbind Prasad,
Director General, FICCI; Manoj Saunik,
Principal Secretary-Textiles, Government
of Maharashtra; Rashesh Shah,
Chairman, FICCI-MSC; Dr. K S Rao, Union
Minister, for Textiles, Zohra Chatterji,
Secretary, Ministry of Textiles,
Government of India; A B Joshi, Textile
Commissioner, Government of India and
Suresh Kotak, Chairman, Subgroup on
Textiles & Technical Textiles, FICCI.
t IN THE STATES
he third seminar under
ICRIER-KAS series 2013 on T'India's Regulatory
Framework and the Twelfth Five
Year Plan (2012-17)' was organised
by ICRIER, KAS and FICCI on
September 25, 2013 in Kolkata.
Regulatory issues are both a
challenge and a priority for the
government to achieve targets
under the 12th Plan, and in order
to continue attracting private
investments, the government has
to undertake reforms that ensure
transparency and reduce
uncertainty in the regulatory
environment.
Partha Chatterjee, Minister,
Commerce & Industry, PE, IR, IT
and Parliamentary Affairs,
Government of West Bengal,
highlighted some of the thrust
areas of West Bengal Industrial
Policy 2013. To eliminate systemic
bottlenecks in the process of
industrialization, the state
government has introduced 'Shilpa
Sathi', a single window clearance
for the industrial proposals.
The state has also undertaken the
largest IT-driven reform process,
which include major steps in
simplification of tax structure and
creating a tax-friendly regime. The
Minister mentioned that 'The West
Bengal State Support for Industries
Scheme, 2013' has been declared
by the government to provide an
array of incentives to industry. The
state will pay eight per cent annual
interest on the monetary incentive
due to a unit, which is a landmark
step. The government will develop
a 'State Manufacturing
Competitiveness Programme' to
boost the manufacturing industry
and a State Policy on PPP mode to
facilitate private investment in
infrastructure.
Arun Maira, Member, Planning
Commission, Government of India,
in his key note address, pointed out
some strategies to convert plans to
results such as ramping up the
business regulatory environment,
utilising human assets, focus on
MSME sector, correct policies with
respect to industry and trade.
Maira mentioned that there was a
clear mismatch between theory
towards regulation and its practical
application. There was a special
need to convert reforms in to
results. The key strategies and
recommendation include follow up
with previous administration and
regulatory reforms, systemisation
of regulation and governance, e-
business mission mode, regulatory
impact assessment, developing
ongoing process of stakeholder
consultation and capacity building
to carry out regulatory reforms.
States of India are needed to be
consulted, if we want good
governance.
Gaurav Swarup, Chairman, FICCI
West Bengal State Council, said
that the regulatory climate in India
can still be described as one that is
in transition. He stressed on the
need to drive the manufacturing
growth in the country. Though
Indian economy had recorded
impressive growth rates over the
past decades, most of the growth
came from the service sector
whereas manufacturing sector had
underperformed.
Dr. Rajat Kathuria, Director &
Chief Executive, Indian Council for
Research on International
Economic Relations (ICRIER),
mentioned that the regulatory
environment had suffered from
weak institutional architecture,
fragile implementation record and
relatively weak consultation
between the government and
business. India was a
heterogeneous country and this
should be accounted for in the
design of the regulatory
framework.
Mareen Haring, Deputy
Programme Coordinator, KAS,
highlighted the initiatives of KAS
foundation, which is active in India
since 1968. n
40 FICCI Business Digest n n October 2013
L to R: Arun Maira, Member, Planning Commission, Government of India; Dr. Rajat
Kathuria, Director & CE, Indian Council for Research on International Economic
Relations; Partha Chatterjee, Minister, Commerce & Industry, PE, IR, IT and
Parliamentary Affairs, Government of West Bengal; Gaurav Swarup, Chairman, FICCI
West Bengal State Council and Mareen Haring, Deputy Programme Coordinator, KAS.
Transparent regulation necessary to meet
12th Plan targets: Arun Maira
October 2013 41n nFICCI Business Digest
t IN THE STATES
truly believe, this is the golden
period for the Indian textiles Iindustry,” stated Dr. K S Rao,
Union Minister for Textiles, while
inaugurating the 5th edition of
FICCI-TAG 2013 Summit in Mumbai
on October 11, 2013. Dr. Rao
further mentioned that the textile
industry was facing challenges in
terms of skilled manpower,
uninterrupted power supply and
fluctuation in prices of cotton and
yarn.
He suggested that the industry
should also take initiatives on its
own such as setting up of captive
power plants, training facilities and
R&D centre with the help of the
Central and state governments. Dr.
Rao added that labour laws needed
to be revised and a night shift for
women should be permitted in
textiles and apparel industry as
permitted in IT & ITeS industries.
Zohra Chatterji, Secretary-Textiles,
said that the continuation of key
government schemes such as
Technology Upgradation Funds
Scheme (TUFS), with an additional
allocation of Rs. 11,952 crore as per
the 12th Plan would propel
investment of more than Rs. 2 lakh
crore. The Ministry of Textiles has
also launched Integrated Skill
Development Scheme (ISDS) with a
target of training 10 million people
by 2022 in the textiles industry.
Chatterji was happy to see FICCI
work diligently in technical textiles
industry, which is growing at a
robust rate of 20 per cent and
expected to reach 1.58 lakh crore
by 2016-17.
Manoj Saunik, Principal Secretary,
Textiles, Government of
Maharashtra, stated that the main
feature of the new Maharashtra
Textile Policy was the provision of
interest subsidy over and above all
subsidies being provided by Central
government schemes. He informed
that the state government would
soon be coming out with a new
scheme, and delink the TUFS with
state policy in order to provide
more incentives to textile industry
and make them globally
competitive.
Suresh Kotak, Chairman, Sub-
group on Textiles of FICCI
Maharashtra State Council,
suggested that in order to
maximise the incentives being
given by the Central government
for technical textiles, a clear
distinction between technical
textiles items from conventional
textiles should be done on the
basis of HS codes. He also
suggested that the latest industry
standards should be put in place
for technical textile items in order
to instil confidence in consumers'
purchase.
Rashesh Shah, Chairman, FICCI
Maharashtra State Council,
suggested that since the textile
sector was the second largest
employment generating industry
with indirect employment of 100
million people, it should be given
status of 'priority sector' so that the
resources to fund its expansion
plans, which is around US$ 60
billion, can be accessed through
banking and financial institutions.
The Union Minister along with
other dignitaries released the
FICCI-Technopak report on the
textile industry, focusing on
'Building Competitive Advantage:
Challenges & Way Forward'.
A B Joshi, Textile Commissioner,
Ministry of Textiles, also attended
the event. n
Need to re-visit labour laws to boost textiles sector
“ L to R: Amit Gugnani, Senior Vice
President, Technopak; Dr. Arbind Prasad,
Director General, FICCI; Manoj Saunik,
Principal Secretary-Textiles, Government
of Maharashtra; Rashesh Shah,
Chairman, FICCI-MSC; Dr. K S Rao, Union
Minister, for Textiles, Zohra Chatterji,
Secretary, Ministry of Textiles,
Government of India; A B Joshi, Textile
Commissioner, Government of India and
Suresh Kotak, Chairman, Subgroup on
Textiles & Technical Textiles, FICCI.
t IN THE STATES
ICCI and Gujarat Chamber of
Commerce & Industry (GCCI) Fin association with the
Austrian Trade Commission
organised a 'Round Table on
Business Opportunities between
Gujarat and Austria' on September
13, 2013 in Ahmedabad.
Dr. Wolfram Moritz, Austrian
Trade Commissioner, led a
delegation comprising companies
from the sectors such as
engineering consultancy, industrial
health and sanitation, machine
tools, thermoplastic, sanitary ware,
technical textiles and aluminium
slugs.
Rakesh Shah, Senior Vice
President, GCCI and Kanubhai Patel,
Secretary (Regional), GCCI, briefed
the delegates about the activities of
GCCI.
Bhagyesh Soneji, Chairperson,
Foreign Trade Committee, GCCI,
highlighted the potential of
bilateral trade between India and
Austria. She underlined the
opportunities for engaging with
companies in their respective
countries through partnership to
foster business ties, skills &
education and technology transfer.
Nayan Parikh, CEO, Nayan Parikh
& Consultants, the guest of honour,
said that Austria was strong in
sectors such as construction and
infrastructure development
technology, environment
technology, geo consultancy,
renewable energy, water, sanitation,
agriculture and education. He said
that the companies should have
joint ventures in the field of
ceramic, energy, machinery and
paper.
Param Shah, Head, FICCI GSC,
highlighted the potential of trade
between the two countries.
Suggesting the way ahead for
Gujarat and Austria, Shah said
cooperation in political, economic
and cultural spheres exists but the
overall engagement has much
untapped potential, thus promising
tremendous scope for expansion.
The bilateral trade between
Austria and India stands at Euro
549 million as per the fact sheet.
Dr. Moritz explained that there are
120 Austrian companies operating
in India but less than five in Gujarat
as they have not been very active
in the region till now. However with
the growth of Gujarat and success
of several FDI investors, they want
to increase trade ties with Gujarat-
based industries.
n
42 FICCI Business Digest n n October 2013
Speakers and delegates from various companies from Austria.
Austrian companies look to Gujarat
October 2013 43n nFICCI Business Digest
t IN THE STATES
s part of Vibrant Gujarat
Summit 2015 pre-Aconferences, FICCI Gujarat
State Council and Gujarat Chamber
of Commerce and Industry (GCCI)
in association with the Government
of Gujarat organised a conference,
the third in the series, on 'Financing
SMEs' on September 23, 2013 in
Ahmedabad.
The objective was to address the
challenges and opportunities faced
by the SME sector, with the aid of
experts and policy makers from the
state government, banking and
financial domain.
While inaugurating the
conference Saurabhbhai Patel,
Minister for Energy and
Petrochemicals, Mines and
Minerals, Labour and Employment,
Cottage Industries, Salt industries,
Planning, Tourism and Civil
Aviation, Government of Gujarat,
said that the manufacturing
sector's contribution to the state
GDP will grow from 27 per cent to
32-33 per cent in short to medium
term. While there are many factors
contributing to the manufacturing
growth story, one of the key factors
is continuous power supply. He
suggested that there was a need to
create an institutional system by
industry associations and the state
government where in case of
inappropriate rejection of loan by
the banks, interventions could be
initiated with the bankers on behalf
of the members.
Patel assured the participants that
the government would continue to
introduce various facilitation and
support mechanisms, which will
help sustain the growth of the
sector.
Shankerbhai Patel, President,
GCCI, said that SMEs were facing
problem of lack of funds. “Funding
to SMEs is 95 per cent secure and
banks will be at less risk compared
to large industries,” he added. He
said that with focus on SME and
agriculture, GDP growth can be
taken from 4.5 per cent to 7 per
cent or more. The Chairman of
GCCI's SME Committee Jaimin Vasa
pointed in his theme address
towards financing issues that SMEs
are facing in contemporary time.
ISED MSME Report 2013 was also
launched, which is the first initiative
of its kind in India, offering insight
into key issues and opportunities
concerning the SME sector.
With a view to providing the
advantage of this value driven
programme to SMEs located in
other parts of the state, a series of
such programmes is planned to be
organised by FICCI Gujarat State
Council in association with regional
chambers at Surat, Rajkot ,
Gandhidham, Jamnagar, Morbi and
Vadodara. n
Move to make access to bank loans
easy for Gujarat SMEs“
Saurabhbhai Patel, Minister for Energy
and Petrochemicals, Mines and Minerals,
Labour and Employment, Cottage
Industries, Salt industries, Planning,
Tourism and Civil Aviation, Government
of Gujarat addressing the Conference on
Financing SMEs.
There are opportunities for companies from India
and Austria to engage with one another so as to
foster business ties, skills & education and
technology transfer.
t IN THE STATES
ICCI and Gujarat Chamber of
Commerce & Industry (GCCI) Fin association with the
Austrian Trade Commission
organised a 'Round Table on
Business Opportunities between
Gujarat and Austria' on September
13, 2013 in Ahmedabad.
Dr. Wolfram Moritz, Austrian
Trade Commissioner, led a
delegation comprising companies
from the sectors such as
engineering consultancy, industrial
health and sanitation, machine
tools, thermoplastic, sanitary ware,
technical textiles and aluminium
slugs.
Rakesh Shah, Senior Vice
President, GCCI and Kanubhai Patel,
Secretary (Regional), GCCI, briefed
the delegates about the activities of
GCCI.
Bhagyesh Soneji, Chairperson,
Foreign Trade Committee, GCCI,
highlighted the potential of
bilateral trade between India and
Austria. She underlined the
opportunities for engaging with
companies in their respective
countries through partnership to
foster business ties, skills &
education and technology transfer.
Nayan Parikh, CEO, Nayan Parikh
& Consultants, the guest of honour,
said that Austria was strong in
sectors such as construction and
infrastructure development
technology, environment
technology, geo consultancy,
renewable energy, water, sanitation,
agriculture and education. He said
that the companies should have
joint ventures in the field of
ceramic, energy, machinery and
paper.
Param Shah, Head, FICCI GSC,
highlighted the potential of trade
between the two countries.
Suggesting the way ahead for
Gujarat and Austria, Shah said
cooperation in political, economic
and cultural spheres exists but the
overall engagement has much
untapped potential, thus promising
tremendous scope for expansion.
The bilateral trade between
Austria and India stands at Euro
549 million as per the fact sheet.
Dr. Moritz explained that there are
120 Austrian companies operating
in India but less than five in Gujarat
as they have not been very active
in the region till now. However with
the growth of Gujarat and success
of several FDI investors, they want
to increase trade ties with Gujarat-
based industries.
n
42 FICCI Business Digest n n October 2013
Speakers and delegates from various companies from Austria.
Austrian companies look to Gujarat
October 2013 43n nFICCI Business Digest
t IN THE STATES
s part of Vibrant Gujarat
Summit 2015 pre-Aconferences, FICCI Gujarat
State Council and Gujarat Chamber
of Commerce and Industry (GCCI)
in association with the Government
of Gujarat organised a conference,
the third in the series, on 'Financing
SMEs' on September 23, 2013 in
Ahmedabad.
The objective was to address the
challenges and opportunities faced
by the SME sector, with the aid of
experts and policy makers from the
state government, banking and
financial domain.
While inaugurating the
conference Saurabhbhai Patel,
Minister for Energy and
Petrochemicals, Mines and
Minerals, Labour and Employment,
Cottage Industries, Salt industries,
Planning, Tourism and Civil
Aviation, Government of Gujarat,
said that the manufacturing
sector's contribution to the state
GDP will grow from 27 per cent to
32-33 per cent in short to medium
term. While there are many factors
contributing to the manufacturing
growth story, one of the key factors
is continuous power supply. He
suggested that there was a need to
create an institutional system by
industry associations and the state
government where in case of
inappropriate rejection of loan by
the banks, interventions could be
initiated with the bankers on behalf
of the members.
Patel assured the participants that
the government would continue to
introduce various facilitation and
support mechanisms, which will
help sustain the growth of the
sector.
Shankerbhai Patel, President,
GCCI, said that SMEs were facing
problem of lack of funds. “Funding
to SMEs is 95 per cent secure and
banks will be at less risk compared
to large industries,” he added. He
said that with focus on SME and
agriculture, GDP growth can be
taken from 4.5 per cent to 7 per
cent or more. The Chairman of
GCCI's SME Committee Jaimin Vasa
pointed in his theme address
towards financing issues that SMEs
are facing in contemporary time.
ISED MSME Report 2013 was also
launched, which is the first initiative
of its kind in India, offering insight
into key issues and opportunities
concerning the SME sector.
With a view to providing the
advantage of this value driven
programme to SMEs located in
other parts of the state, a series of
such programmes is planned to be
organised by FICCI Gujarat State
Council in association with regional
chambers at Surat, Rajkot ,
Gandhidham, Jamnagar, Morbi and
Vadodara. n
Move to make access to bank loans
easy for Gujarat SMEs“
Saurabhbhai Patel, Minister for Energy
and Petrochemicals, Mines and Minerals,
Labour and Employment, Cottage
Industries, Salt industries, Planning,
Tourism and Civil Aviation, Government
of Gujarat addressing the Conference on
Financing SMEs.
There are opportunities for companies from India
and Austria to engage with one another so as to
foster business ties, skills & education and
technology transfer.
Sources – Central Statistical Organization, Ministry of Commerce and Industry, Ministry of Finance, Reserve Bank of India, *based on Provisional
numbers, some numbers have been rounded to one decimal place.
Key macroeconomic indicatorsAug Sept Oct Nov Dec Jan Feb Mar Apr May June
2012 2012 2012 2012 2012 2013 2013 2013 2013 2013 2013 2013 2013
Index of industrial production (YoY %)
July Aug
Industrial growth as per use-based classification (YoY %)
Growth of core infrastructure industries (YoY %)
Monetary indicators (YoY %)
Inflation (YoY %)
External sector indicators
External sector indicators (YoY %)
Exchange rate and Forex reserves
Industry 2.0 -0.7 8.4 -1.0 -0.6 2.5 0.6 3.5 1.5 -2.5 -1.8 2.8 0.6
Mining -0.3 2.2 -0.2 -5.5 -3.1 -1.8 -7.7 -2.1 -3.4 -5.9 -4.3 -2.5 -0.2
Manufacturing 2.4 -1.6 9.9 -0.8 -0.8 2.7 2.1 4.3 1.8 -3.2 -1.7 3.2 -0.1
Electricity 1.9 3.9 5.5 2.4 5.2 6.4 -3.2 3.5 4.2 6.2 0.0 5.2 7.2
Basic goods 3.0 2.7 4.3 1.1 2.2 3.7 -1.8 3.2 1.4 -0.3 -1.5 1.5 1.5
Intermediate goods 2.7 1.7 9.6 -1.4 -0.2 3.5 -0.8 2.1 2.5 1.1 1.3 3.1 3.6
Capital goods -4.4 -13.3 7.0 -8.5 -1.1 -2.5 9.1 9.6 -0.3 -3.7 -5.8 15.6 -2.0
Consumer goods-Durables 1.0 -1.5 16.7 1.1 -8.1 -0.7 -2.6 -4.9 -9.6 -18.3 -10.4 -8.9 -7.6
Overall Index 2.9 5.1 4.5 2.2 2.9 3.7 -2.4 3.2 2.3 2.3 0.1 3.1 3.7
Coal 11.0 21.4 10.9 -4.4 -0.2 2.3 -8.0 0.3 3.1 -3.3 -3.0 1.2 5.5
Crude Oil -0.6 -1.7 -0.4 0.8 1.0 -0.2 -4.0 0.2 -1.2 -2.4 -0.6 -2.3 -1.5
Natural Gas -13.5 -14.8 -14.9 -15.2 -14.9 -16.8 -20.1 -17.7 -17.4 -18.7 -16.7 -16.1 -16.1
Refinery Products 8.4 10.3 20.3 6.6 5.0 10.5 4.3 5.6 6.1 5.5 2.3 5.1 4.9
Fertilizers -2.1 5.7 2.0 5.0 -3.8 -9.1 -4.0 3.6 -2.4 -2.0 11.3 0.4 1.7
Steel 2.9 1.3 -4.7 7.8 3.6 1.9 0.5 6.6 1.9 4.0 3.4 7.0 4.3
Cement 4.7 18.3 11.1 -0.4 9.5 10.2 3.1 8.3 5.2 2.4 2.3 0.8 5.5
Electricity 1.9 3.9 5.6 2.4 5.2 6.3 -3.7 3.5 3.5 6.2 -1.2 5.2 6.7
Money supply (M3) 14.1 13.6 13.3 13.6 11.2 12.9 12.1 13.3 12.4 12.1 12.8 12.5 12.2
Aggregate deposits 14.7 13.8 13.4 12.8 11.1 13.1 12.7 14.3 13.3 13.4 13.8 13.4 13.0
Total bank credit 16.9 15.7 16.0 17.0 15.1 16.0 16.3 14.1 14.5 14.1 13.7 14.9 17.1
Non-food credit 17.5 15.5 17.9 17.8 14.9 15.9 16.1 11.7 14.9 15.5 13.9 15.2 16.3
WPI 8.0 8.1 7.3 7.2 7.3 7.3 7.3 5.7 4.8 4.6 5.2 5.9 6.1
Primary products 11.2 9.2 7.8 9.6 10.6 11.4 10.5 7.4 5.1 5.7 8.8 9.7 11.7
Fuel group 8.7 12.0 11.6 10.0 10.2 9.3 10.6 7.8 8.3 7.3 7.5 11.4 11.3
Manufactured products 6.4 6.5 5.9 5.4 5.0 4.9 4.8 4.3 3.7 3.3 2.9 2.6 1.9
CPI (IW) 10.3 9.1 9.6 9.6 11.2 11.6 12.1 11.4 10.2 10.7 11.1 10.8 10.8
Exports ($ mn) 24902.00 24878.0 24026.8 23250.2 25519.7 25679.5 25761.7 30742.2 24191.8 24587.9 23551.3 25288.4 26135.94
Imports ($ mn) 42051.45 41751.9 44660.8 41332.0 43362.9 45670.2 41251.8 40,548.2 42098.5 44722.8 35851.7 37922.9 37053.85
Oil imports ($ mn) 12805.7 14188.2 15764.1 14169.1 14655.8 16094.7 15175.4 13,393.5 14,151.0 15053.9 12,762.3 12,709.4 15095.3
Non-oil imports ($ mn) 24501.6 27563.6 28896.7 27162.9 28707.1 29575.4 26076.3 27,154.7 27961.1 29675.9 23138.7 25393.2 21958.6
Trade balance ($ mn) -17149.45 -16873.9 -20633.9 -18081.8 -17843.2 -19990.6 -15490.1 -9,805.9 -17906.8 -20134.9 -12300.4 -12634.5 -10917.9
Gross inflows / Investments 3,856 5,117 3279 2,431 2,561 3,672 3,108 3,002 3,518 2,870 2,354 2,478 2,383($ mn)
FII ($ mn) 1566 4190 2937 2026 4,882 6,117 4,176 1,246 1,542 6,704 -8,726 -3,014 -409
Exports* 0.5 -6.3 1.7 -0.1 0.6 1.2 2.3 6.6 1.7 -0.9 -5.5 9.5 13.0
Imports* 5.1 5.0 8.5 5.7 8.3 6.3 2.8 -4.3 10.3 6.0 -0.8 -6.6 -0.7
Re / Dollar 55.55 54.60 53.02 54.68 54.64 54.31 53.8 54.4 54.3 55.0 58.4 59.77 63.2
Re / Euro 68.87 70.12 68.75 70.15 71.66 72.12 71.9 70.5 70.7 71.3 77.1 78.20 84.2
Re/ 100 Yen 70.68 69.90 67.23 67.60 65.28 61.18 57.8 57.4 55.7 54.5 60.0 60.0 64.6
Forex reserves ($ billions) 290.4 294.8 295.3 294.5 296.6 296.1 291.9 292.6 296.3 287.8 284.6 280.1 275.4
44 FICCI Business Digest n n October 2013
Sources – Central Statistical Organization, Ministry of Commerce and Industry, Ministry of Finance, Reserve Bank of India, *based on Provisional
numbers, some numbers have been rounded to one decimal place.
Key macroeconomic indicatorsAug Sept Oct Nov Dec Jan Feb Mar Apr May June
2012 2012 2012 2012 2012 2013 2013 2013 2013 2013 2013 2013 2013
Index of industrial production (YoY %)
July Aug
Industrial growth as per use-based classification (YoY %)
Growth of core infrastructure industries (YoY %)
Monetary indicators (YoY %)
Inflation (YoY %)
External sector indicators
External sector indicators (YoY %)
Exchange rate and Forex reserves
Industry 2.0 -0.7 8.4 -1.0 -0.6 2.5 0.6 3.5 1.5 -2.5 -1.8 2.8 0.6
Mining -0.3 2.2 -0.2 -5.5 -3.1 -1.8 -7.7 -2.1 -3.4 -5.9 -4.3 -2.5 -0.2
Manufacturing 2.4 -1.6 9.9 -0.8 -0.8 2.7 2.1 4.3 1.8 -3.2 -1.7 3.2 -0.1
Electricity 1.9 3.9 5.5 2.4 5.2 6.4 -3.2 3.5 4.2 6.2 0.0 5.2 7.2
Basic goods 3.0 2.7 4.3 1.1 2.2 3.7 -1.8 3.2 1.4 -0.3 -1.5 1.5 1.5
Intermediate goods 2.7 1.7 9.6 -1.4 -0.2 3.5 -0.8 2.1 2.5 1.1 1.3 3.1 3.6
Capital goods -4.4 -13.3 7.0 -8.5 -1.1 -2.5 9.1 9.6 -0.3 -3.7 -5.8 15.6 -2.0
Consumer goods-Durables 1.0 -1.5 16.7 1.1 -8.1 -0.7 -2.6 -4.9 -9.6 -18.3 -10.4 -8.9 -7.6
Overall Index 2.9 5.1 4.5 2.2 2.9 3.7 -2.4 3.2 2.3 2.3 0.1 3.1 3.7
Coal 11.0 21.4 10.9 -4.4 -0.2 2.3 -8.0 0.3 3.1 -3.3 -3.0 1.2 5.5
Crude Oil -0.6 -1.7 -0.4 0.8 1.0 -0.2 -4.0 0.2 -1.2 -2.4 -0.6 -2.3 -1.5
Natural Gas -13.5 -14.8 -14.9 -15.2 -14.9 -16.8 -20.1 -17.7 -17.4 -18.7 -16.7 -16.1 -16.1
Refinery Products 8.4 10.3 20.3 6.6 5.0 10.5 4.3 5.6 6.1 5.5 2.3 5.1 4.9
Fertilizers -2.1 5.7 2.0 5.0 -3.8 -9.1 -4.0 3.6 -2.4 -2.0 11.3 0.4 1.7
Steel 2.9 1.3 -4.7 7.8 3.6 1.9 0.5 6.6 1.9 4.0 3.4 7.0 4.3
Cement 4.7 18.3 11.1 -0.4 9.5 10.2 3.1 8.3 5.2 2.4 2.3 0.8 5.5
Electricity 1.9 3.9 5.6 2.4 5.2 6.3 -3.7 3.5 3.5 6.2 -1.2 5.2 6.7
Money supply (M3) 14.1 13.6 13.3 13.6 11.2 12.9 12.1 13.3 12.4 12.1 12.8 12.5 12.2
Aggregate deposits 14.7 13.8 13.4 12.8 11.1 13.1 12.7 14.3 13.3 13.4 13.8 13.4 13.0
Total bank credit 16.9 15.7 16.0 17.0 15.1 16.0 16.3 14.1 14.5 14.1 13.7 14.9 17.1
Non-food credit 17.5 15.5 17.9 17.8 14.9 15.9 16.1 11.7 14.9 15.5 13.9 15.2 16.3
WPI 8.0 8.1 7.3 7.2 7.3 7.3 7.3 5.7 4.8 4.6 5.2 5.9 6.1
Primary products 11.2 9.2 7.8 9.6 10.6 11.4 10.5 7.4 5.1 5.7 8.8 9.7 11.7
Fuel group 8.7 12.0 11.6 10.0 10.2 9.3 10.6 7.8 8.3 7.3 7.5 11.4 11.3
Manufactured products 6.4 6.5 5.9 5.4 5.0 4.9 4.8 4.3 3.7 3.3 2.9 2.6 1.9
CPI (IW) 10.3 9.1 9.6 9.6 11.2 11.6 12.1 11.4 10.2 10.7 11.1 10.8 10.8
Exports ($ mn) 24902.00 24878.0 24026.8 23250.2 25519.7 25679.5 25761.7 30742.2 24191.8 24587.9 23551.3 25288.4 26135.94
Imports ($ mn) 42051.45 41751.9 44660.8 41332.0 43362.9 45670.2 41251.8 40,548.2 42098.5 44722.8 35851.7 37922.9 37053.85
Oil imports ($ mn) 12805.7 14188.2 15764.1 14169.1 14655.8 16094.7 15175.4 13,393.5 14,151.0 15053.9 12,762.3 12,709.4 15095.3
Non-oil imports ($ mn) 24501.6 27563.6 28896.7 27162.9 28707.1 29575.4 26076.3 27,154.7 27961.1 29675.9 23138.7 25393.2 21958.6
Trade balance ($ mn) -17149.45 -16873.9 -20633.9 -18081.8 -17843.2 -19990.6 -15490.1 -9,805.9 -17906.8 -20134.9 -12300.4 -12634.5 -10917.9
Gross inflows / Investments 3,856 5,117 3279 2,431 2,561 3,672 3,108 3,002 3,518 2,870 2,354 2,478 2,383($ mn)
FII ($ mn) 1566 4190 2937 2026 4,882 6,117 4,176 1,246 1,542 6,704 -8,726 -3,014 -409
Exports* 0.5 -6.3 1.7 -0.1 0.6 1.2 2.3 6.6 1.7 -0.9 -5.5 9.5 13.0
Imports* 5.1 5.0 8.5 5.7 8.3 6.3 2.8 -4.3 10.3 6.0 -0.8 -6.6 -0.7
Re / Dollar 55.55 54.60 53.02 54.68 54.64 54.31 53.8 54.4 54.3 55.0 58.4 59.77 63.2
Re / Euro 68.87 70.12 68.75 70.15 71.66 72.12 71.9 70.5 70.7 71.3 77.1 78.20 84.2
Re/ 100 Yen 70.68 69.90 67.23 67.60 65.28 61.18 57.8 57.4 55.7 54.5 60.0 60.0 64.6
Forex reserves ($ billions) 290.4 294.8 295.3 294.5 296.6 296.1 291.9 292.6 296.3 287.8 284.6 280.1 275.4
44 FICCI Business Digest n n October 2013
