· answer to this question is a big no, ... such as integrated refinery expansion project of bpcl...

04|Kerala Chamber Business News|

06. Editorial

08. Cover Story-Kerala’s economy & migrant workers

12. The big loopholes in India’s smart cities plan

14. Trade deficit narrows import slideoutpaces export fall

15. China sets up agency to promote investments in India

16. As inflation, input costs ease factory output hits 13-month high

18. Major port authorities act seeks to boost port sector

19. Govt’s Direct Tax kitty swells 15% to Rs. 1,89,000 crore in Apr-Aug

20. How real is india’s economic recovery

21. Chamber events

22. Govt sees record foodgrain production despite deficit rain

23. India to build pulses buffer stock of 2 million tonnes

24. Office bearers of KCCI Ladies Form

25. Cabinet approves GST council and Secretariat

26. Refinancing project loans-common rules for BANKS and NBFCS

27. India slips 10 places to 112th in economic freedom index

28. Is India finally moving towards a less cash economy

29. Talk on GST

30. Merger of budgets not to ease railways financial and social costs

31. Emerging trends in business banking and cash management services

32. RBI to boost credit flow to MSMES

33. MSME trainging programme

33. Signing of MOU between KCCI & SIGN

34. INDIA-US annual trade crosses $ 105 BN

35. Students to Pitch in to Recycle Plastic Waste

36. Five signs you need a marketing make over

38. 7 mental blocks preventing your success

40. Brand Virat in; Dhoni diminishes

42. Why bollywood is not growing

44. Indian multinationals top transparency’s emerging market ranking

46. Electrotherm solar power house

47. Russia opens diary market but low prices make export unviable

48. Volvo to launch range of hybrids,electric cars in India

50. News makers

Managing Editor | K.N.Marzook

Editorial Board | Raja Sethunath

| K.M. Abdulla

| Dr.Thomas Nechupadam

| Rajesh Nair

| Lekha Balachandran

Secretary,KCCI | A.J.Rajan, I.A.S (Retd.)

Associate Editor | K.Balakrishnan

Chief Designer | M.J.Avarachan

Edited, conceived and designed [email protected]

Printed at Sterling Print House, Ernakulam

Vol. No. VI | Issue No. XI | Price Rs. 25

The views and opinions expressed herein are notnecessarily those of Kerala Chamber of

Commerce and Industry

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Can Kerala Do Away with Migrants?

Can Kerala think of abandoning migrants? The

answer to this question is a big no, because every

fourth employable man that you meet in the State

is a migrant. Our service economy, realty and allied sectors are fully

dependent on migrant workers from northern India.

If Kerala can boast of huge expatriates in the Middle East Countries,

the current migrant population in Kerala is a tad higher than our NRIs and

comes to around 25 lakhs.

Kochi and many more town can not live without them. The projects

such as Integrated Refinery Expansion Project of BPCL in Kochi are

employing migrants in thousands. On a single day, IREP needs twenty

thousand labourers and 95 percent of the count are from outside Kerala.

In view of the violent murders, widespread crimes, increase in alcohol

and drug abuse in areas of their higher concentration, authorities have

been trying to curb the migrant population. There have been efforts to

get a real count of them and authorities forced them to register at the

police stations. However, these efforts were not fulfilled.

It is a mere fact that we can not survive without migrant workers from

the north. The Tamil labour supply has diminished in the past years. The

construction sector, plywood industry, hotel industry and many more

sectors will come to a standstill without “Bhais.” If we need their service,

we are supposed to ensure their health and safety.

Though we need them badly for the very survival of our industries, the

public mentality is against accepting them. There is a general notion that

they are inferior, but the fact is that they are coming up by acquiring skills

and experience. Earlier they came as helpers in the construction fields,

and now they are into all the fields as expert hands.

The law of the land is applicable to migrants also. The local authorities

must come up to make sure that the migrant workers are getting proper

shelter and health facilities.

K.N.Marzook,

Managing Editor.

The stereotype Malayali is well known for presence across the globe.

They have roamed to far way lands, adapted to foreign cultures with

so much ease. With extraordinary they switched between the Mundu

and Suit and Puttu and burgers. Every time they catch a flight back to Kerala,

they transform back to quintessential Malayali’s. While Malayilis adapted to

foreign cultures, working hard there and bringing back valuable foreign

exchange. A reverse immigration has been happening in the God’s own

country. Kerala’s entrepreneurial backbone, its service economy, is now

largely powered by migrants because the literate Malayali does not want to

do jobs that are “beneath” his or her dignity. They refuse to do these jobs at

home, while willing to do them abroad. Migrants in Kerala, though, are still

seen as outsiders and interlopers who are “ruining” God’s Own Country . The

recent arrest of Assamese migrant Ameerul Islam in the brutal Jisha murder

case has become a tipping point in these anxieties. In its aftermath, there has

been much debate in the state about whether the growing migrant population

is straining Kerala’s social fabric.

The growth in migration to Kerala has been dramatic -in the last five years,

the migrant numbers here have swelled to over 7% of the population. A study

by the Gulati Institute of Finance and Taxation (GIFT), conducted three years

ago, showed that the state’s migrant population had touched 25 lakh.

Interestingly, an almost equal number of Malayalis -around 23.6 lakh -are

working outside the state, mostly in the Gulf, and the state’s cash flow is still

largely dependent on their remittances. In fact, the migrants who come to

Kerala send home only a quarter of the value of remittances that come into

the state, says the study.

Bringing into the context the fact that Kerala has an ageing population -the

state planning board estimates that by 2030, about 30% of Malayalis will be

over 60 -and with unemployed local youth leaving the state for greener

pastures, Kerala’s labour shortage is bound to worsen. Today, migrants are

employed across almost all the major sectors in Kerala -hospitality, transport

and construction. They work as masons, carpenters, waiters, drivers,

security guards and farmhands. They also work in infrastructure projects -

roads and metro rail -putting in the hard labour that a Malayali wouldn’t want

to undertake.

But on the flipside there is a steadily rising public chorus that demands the

profiling of migrants. They ask that workers from outside Kerala be asked to

register themselves at local police stations before taking up jobs. But experts

point out that the government cannot arm-twist people into submitting

personal details without a valid reason. “The question here is, are we already

assuming that migrants are worse than the local population and that they

need to be monitored? If yes, that point of view can be legally challenged,”

says advocate Harish Vasudevan.

Perumbavoor town, where Jisha lived with her mother and sister, is a

classic example of the migrant-local tussle. Located on the outskirts of Kochi,

the town is the unofficial migrant capital of the state. It has around 2 lakh

migrants living in a 20 sq km area. Most of them are from the northeast. They

>>>

The growth inmigration to

Kerala has beendramatic -in the

last five years,the migrant

numbers herehave swelled toover 7% of the

population. Astudy by the

Gulati Instituteof Finance and

Taxation(GIFT),

conducted threeyears ago,

showed thatthe state’s

migrantpopulation had

touched 25 lakh

|Kerala Chamber Business News|09

are employed in the 500-odd saw mill units owned by

Malayali businessmen who supply processed wood to the

booming furniture industry across the state. Others work

in infrastructure projects in Alwaye and Kochi.

Kerala has 2.5 million migrant workers. The state’s

population is 33 million. As per a 2013 study commissioned

by the government, every fourth male between the ages

of 20 and 64 in the state is likely to be a migrant. That

proportion can be attributed to the huge number of

Kerala men working in West Asia and elsewhere in India.

Migrant workers in Kerala live in cramped quarters,

sometimes 10 in one room. Sanitation is a big issue in

these quarters and workers fall sick quite often, especially

with water-borne and mosquito-borne diseases. Unlike

other states where migrant labourers live in ghettos and

slums, locals here accommodate migrants in their

backyards because the state is land starved. “It is a fact

that there is a lot of alcoholism and drug abuse among

migrants. This also has to do with the fact that they live

isolated, sub-human lives, far from their families,” says

Dr CJ John, former president of the Indian Psychiatric

Society, Kerala chapter. Experts point out that it is the

state’s responsibility to provide basic amenities to migrant

workers. “They are unaware of their labour rights and

obligations. They often live at their worksites,” says the

GIFT survey.

The government wants migrants to enrol in an insurance

scheme, supposed to be announced in this week’s state

budget, so that it will get to track information about

domestic migrants in the state. The government is

mindful of the unpopular effect any forced registration

could have. So, it is launching an insurance scheme for

migrants in the budget on 8 July, the idea being to

incentivize registration as well as working in Kerala. It

also plans to build shelters for migrants in some cities, to

ensure they are not pushed into poverty or crime. The

first such shelter, capable of accommodating 700

labourers, will be opened in Palakkad. But it is also at

pains to make sure its moves are not seen as a headcount

or a census of migrants — perhaps because of the

negative political message this will send out, analysts

say.

The Flip Side

Kerala, quite unexpectedly, is now in a dilemma after

having a chance to stop, look and ponder at the plight of

the scores of faceless migrants who land up in the state

in search of better opportunities, and dealing with a few

deviant ones who have

even committed murders

in the state . Over the

years, migrant labourers

have become an integral

part of industrial arena

of Kerala~ Especially the

construction sector.

Majority of them have

come to the state hoping

to make a better living

and escape their poor

circumstances back

home. Last year two

migrants from Andhra

Pradesh, Narasimham

and Bhaskar Rao, who

would have otherwise led

obscure lives in the state,

made it to the media headlines. They would not have

bargained for the attention because the two are dead,

after being suffocated to their life’s ends in a manhole

near Palayam in Kozhikode.

The deaths would have passed off with a nominal

mention in the media, had not a Keralite died trying to

save them. The social and political controversy that the

incident raked up also put these two in the limelight.

Kerala, quite unexpectedly, is now in a dilemma after

having a chance to stop, look and ponder at the plight of

the scores of faceless migrants who land up in the state

in search of better opportunities, and dealing with a few

deviant ones who have even committed murders in the

state. The local population is concerned over the inflow of

migrant labourers into the state for the latter’s

involvement in incidents of crime. The state, which

welcomed the migrants from Bengal and the north-

eastern states with open arms, has eventually adopted a

cautious approach. Despite the lingering apprehension,

the employers in Kerala depend on them owing to dearth

of local employees. The call for measures to ensure

security is growing louder with politicians joining the

debate.

Migrant workers in the hotel industry

Migrant workers are slowly replacing Kerala cooks and

have become adept at making the local fare. While the

quality of the food they make is suspect, they seem to

have created a niche for themselves in the food industry.


According to hotel owners, Keralites are not interested in

such jobs. Employees from Wayanad and Kasargod stay

hardly for six to eight months and then leave for the Gulf

countries in search of better jobs.

Migrant labourers pour into Thalassery from different

parts including West Bengal, Tripura, Assamand

Maharashtra. Walk through the streets and you could

find migrant labourers in every nook and corner of the

city. It is the lure of pay that brings workers to Kerala in

hoards. The flow of migrants has become so organised

that many are brought to Kerala by labour contractors,

a system that reeks of exploitation. A boy from Kolkotta

has been working as a ‘shawarma’ maker for over five

years because he gets more pay than what he can expect

in his home state. In the construction sector, labourers

are paid at least Rs400 a day, which is accepted with glee

by them. At the same time, a local worker charges Rs

800-900. The shacks of the migrants are nothing to write

home about, while our workers are often supported by

the government’s housing and rehabilitation programmes.

Even though Kerala is increasingly dependent on

migrant labourers, the facilities offered to themare often

bad, bringing in an element of exploitation. While

employers reiterate that migrant labourers are provided

reasonable pay and decent accommodation, reality could

be far from what is claimed. In many places, construction

workers sleep in shacks at worksites. Toilet facilities are

minimal and they are not provided enough food and

clean drinking water. Since they do not demand

better living facilities, employers take that as an

opportunity to exploit them and extract more work

with lesser expenditure.

An employer said, “All my workers earn around

Rs 6,000 per month. They used to get not more

than Rs 100 per day in their state. Beside payment,

we have provided them food and lodging facilities.

I also heard that employers are giving cheaper

wages to migrants compared to locals. But I have been

giving uniform pay to my workers. They are willing to

work harder and devote longer hours. They have no trade

unions too.”

It becomes evident that the migrant community is

unfortunately very vulnerable to exploitation because of

their plight, lack of awareness and their willingness to

compromise for a comparatively better life. They face the

possibility of being sidelined by a group of employers who

see them as mere slaves who would not stand up for their

rights.

Kerala cannot do without migrants and in almost all

parts of the state, they dominate the work force. While

most of them get better living conditions, are they any

better here than in their homeland? Conversely, are we

under a threat from them? While Kerala has became a

thriving job market for workers hailing from Assam, West

Bengal and other states, the fact also hold true that the

story of migrants follows a script replete with opportunities,

exploitation, sacrifices, gains and hope~ a perfect plot

that has much in similarity to the stories of states and

cities that have already built their edifices on the lives,

contributions and atrocities of migrant labourers. Kerala

perhaps is treading the same path to so-called progress

at the cost of thousands of lives and

Their emotions on both sides of the cultural divide. As

a state with better-than-average human values and

humane sensibilities, can we afford it?

Bejoy George

Kerala cannot do without migrantsand in almost all parts of the state,

they dominate the work force. Whilemost of them get better living

conditions, are they any better herethan in their homeland? Conversely,

are we under a threat from them?


What is the progress made by the Smart Cities

project at the end of the first year of its five-

year life?

Are the right priorities driving the 100-odd cities chosen

by the Centre for the purpose?

Business Standard recently ran reports featuring four

smart cities and, for comparison, Lavasa, a smart city

conceived a decade ago under private initiative.

Bhubaneswar, Surat, Visakhapatnam and Pune – all

among the top 20 smart cities – are in a way not

representative of the whole.

They were already a bit smart, had a positive urban

persona, to begin with.

So how have at least the best among the smart cities

got off the ground?

They have just about got going. All have formed the

special purpose vehicles (SPVs) to oversee the project in

order to free it of the many constraints that inhibit a

government department.

All are in some stage of appointing consultants and

getting them to secure and approve plans for the individual

components of the project.

They have two positives: funding is in sight, a bit of it

already there, and at least two, Bhubaneswar and

Visakhapatnam, will get foreign assistance.

Being a high profile project, the various SPV boards

have capable members and will likely have in time

competent officials to run the show.

Thus these cities do not have several critical

shortcomings that plague most Indian cities like shortage

of managerial skills and resources and uncaring state

governments.

The smart cities have set out to be showpieces by

relying strongly on information technology solutions which

will hopefully bring about improvement in areas like

transport, electricity and water supply management.

A digitised control center to monitor and respond

promptly to developments will also be a great help. There

is nothing wrong with these initiatives but the top priority

should be something else.

India’s cities are bursting at the seams because poor

people are migrating to them in search of work and

finding a place to live only in slums, old and new.

The ratio of people living in "informal" housing or

under slum-like conditions is steadily rising.

It depends on how you draw the lines to define city

limits but realistically half of Mumbai lives in slums.

The growth of slums is the dominant feature of the

urbanisation that we constantly refer to as the engine

of growth which will take the entire economy forward.

But cities can function as engines of growth only if

they are not health hazards and cauldrons of social

unrest posing severe law and order challenges.

So the primary task is to retro fit slums so that they

cease to be so.


India’s cities are bursting at theseams because poor people aremigrating to them in search ofwork and finding a place to liveonly in slums, old and new

Business News Corporation

Instead, the specific areas chosen for development are in some cases

already quite developed, as in the case of Pune.

Bhubaneswar has more sensibly chosen the central area near its railway

station for concerted development.

The second priority needs to be a total garbage solution involving

segregation, recycling and composting.

This will drastically reduce the need for landfill space and thus address

the crisis being created by dwindling landfills in cities across the country.

Bengaluru, in many ways the symbol and hope of knowledge-driven

modern India (logically it should be the smartest city in the country), with

also a strong civil society presence (organisations like Hasiru Usiru are trying

to get citizens to take initiatives across urban issues), is literally stinking

because of its inability to clear all the solid waste in time.

To solve Bengaluru’s garbage problem, you don’t need highfalutin IT

solutions (the leitmotif of the smart cities project) proposed by vendors, but

the ability to counter entrenched interests and put in place common sense

solutions that can be worked by a minimum level of governance.

It is not as if Indian cities can’t do it. Pune has tackled solid in an exemplary

manner.

The third priority needs to be safe drinking water for all along with water

harvesting and treatment plants. Those who can pay should pay for their

water.

A major offender is Kolkata where the political dispensation refuses to

charge the well-off even in gated communities for the water they consume.

The slum dweller is already paying

with the time she has to devote to

fetch the water.

The fourth priority needs to be an

affordable (not costly tokenisms like

metro rail) and reliable non-polluting

public transport system (electric or

CNG buses) that does not choke the

city with its exhaust fumes.

Not only is air quality in Indian

cities among the worst in the world,

the economy pays heavily through

energy wasted (idling cars and

buses) and time lost in traffic jams.

The health and efficiency gains

reaped by cities which take care of

their solid waste the right way,

deliver safe drinking water to all and

have efficient non-polluting public

transport systems that make car

trips mostly unnecessary, will make

them proper engines of growth.

If you add to it the socially

uplifting impact on a slum dweller

(and the resultant rise in his economic

efficiency) who gets to live in non-

slum like conditions, you know where

to begin to make cities smart.

It is not that these issues are not

addressed under the smart cities

rubric (Surat talks of building just

4,350 affordable dwelling units!) but

the sense that they come before all

else is missing.

The lesson from Lavasa is that

even after 10 years, a text book

smart city can remain in limbo — be

just a weekend resort.


India’s trade deficit in the first

five months of the current fiscal

year has fallen by more than 40

per cent to $34.7 billion as imports

continued to register double-digit

decline outpacing the fall in exports

during the period.

Trade deficit for April-August 2016-

17 is estimated at $34.67 billion,

which is 40.61 per cent lower than the

deficit of $58.38 billion during April-

August 2015-16.

Merchandise exports from the

country contracted by 0.3 per cent

year-on-year to $21.5 billion in

August, while imports dropped 14.09

per cent to $29.2 billion, helping the

trade deficit for the month to narrow

to $7.7 billion from $7.8 billion in the

previous month, data released by the

commerce ministry showed.

Cumulative value of exports for

the period April-August 2016-17 stood

at $108,52 billion (Rs726,776.04

crore) against $111.85 bil l ion

(Rs713,808.46 crore), a negative

growth of 2.98 per cent in dollar

terms and a positive growth of 1.82

per cent in rupee terms over the

same period last year.

Non-petroleum exports in August

2016 are valued at $19.08 billion

against $18.75 billion in August 2015,

an increase of 1.79 per cent. Non-

petroleum exports during April-

August 2016 are valued at $96.98

billion compared to $97.49 billion in

Trade deficit for April-August

2016-17 is estimated at $34.67

billion, which is 40.61 per cent

lower than the deficit of

$58.38 billion during April-

August 2015-16.14|Kerala Chamber Business News|


the corresponding period in 2015, a

reduction of 0.52 per cent.

I m p o r t s i n t o t h e c o u n t r y

during August 2016 were valued

at $29.19 bill ion (Rs195,415.03

crore), which was 14.09 per cent

lower in dollar terms and 11.63

per cent lower in rupee terms

over the level of imports valued

a t $ 3 3 . 9 8 b i l l i o n ( R s .

221,126.92) in August 2015.

Cumulative value of imports for

the period April-August 2016-17 stood

at $143.19 billion (Rs959,102.25

crore) against $170.23 bil l ion

(Rs1,086.515.26 crore) registering a

negative growth of 15.89 per cent in

dollar terms and 11.73 per cent fall in

rupee terms over the same period

last year.

Oil imports during August 2016

were valued at $6.74 billion, which

was 8.47 per cent lower than oil

imports valued at $7.37 billion in the

corresponding period last year.

Oil imports during April-August

2016-17 were valued at $32.41 billion,

which was 22.08 per cent lower than

the oil imports of $41.59 billion in the


Non-oil imports during August 2016

were estimated at $22.45 billion, which

was 15.65 per cent lower than non-oil

imports of $26.61 billion in August

2015. Non-oil imports during April-

August 2016-17 were valued at

$110.78 billion, which was 13.89 per

cent lower than the level of such

imports valued at $128.64 billion in

April-August 2015-16.

India’s gold imports fell for a

seventh straight month in August to

$1.1 billion as sluggish demand

prompted banks and refineries to

reduce overseas purchases of bullion.

China is setting up a new trade body to promote and coordinate

Chinese investments and businesses with India, a first such

initiative taken by the government of the Communist country.

Chinese investments in India have crossed $4 billion till last

year, China’s vice minister for finance Yaobin said during India-

China Financial Dialogue last month.

The council, being set up by China Council for the Promotion of

International Trade (CCPIT) in China’s Hunan province, will remain

as a provincial unit for two years before being upgraded bon the

basis of progress achieved, He Jian, chairman of Hunan sub-council

of CCPIT, said in a communication to the media.

‘’My first important job on arriving at my new post is to establish

China India Business Council,’’ he said announcing the formation

of the council.

The Council will be based in the office of the CCPIT in Changsha,

provincial capital of the Hunan province, he added.

The council also plans to open offices in New Delhi and Hyderabad

to promote and coordinate Chinese investments in India which are

on the rise in recent years.

Bilateral trade between India and China stood at $71 billion in

2015-16, while the total export volume of China, the world’s biggest

trader, stood at $3.69 trillion (24.59 trillion yuan) in 2015.

Meanwhile, the Indian government in coordination with the

various state governments is also conducting campaigns to attract

Chinese investments.

In view of the growing trade deficit, India has been asking China

to convert much of the trade surplus into investments.


Indian manufacturers enjoyed a

solid improvement in operating

conditions during August. With

demand from the domestic and

external markets picking up,

companies raised output

accordingly. Firms also recorded an

easing in cost inflation during the

month, which in turn resulted in a

softer overall increase in factory

gate charges.

Climbing from 51.8 in July to a

13-month high of 52.6 in August,

the seasonally adjusted

NikkeiIndiaManufacturing

Purchasing Managers’ IndexTM

(PMITM) - a composite single-figure

indicator of manufacturing

performance - showed a solid

improvement in the health of the

sector.

Contributing to this was a sharp

upturn in new business inflows,

which expanded at the fastest pace

since December 2014. Consumer

goods producers led the increase,

although solid growth was also

seen in the intermediate and capital

goods categories.

Manufacturers indicated that

both the domestic and external

markets had been sources of

incoming new work. Indeed, August

saw new export orders expand at

the quickest rate in one year.

Subsequently, companies

continued to raise output in August,

with growth picking up to the strongest in one year. Consumer goods

were once again the strongest-performing sector on this front.

Greater output requirements led some manufacturers to hire additional

workers in August, but the overall rate of job creation remained marginal

as the vast majority of firms left workforce numbers unchanged.

Buying levels were also raised, as companies attempted to build

inventory levels. The upturn in purchasing activity was moderate, but the

rate of growth was at a 12-month high.

Climbing from 51.8 in July to a 13-month

high of 52.6 in August, the seasonally

adjusted Nikkei India Manufacturing

Purchasing Managers’ IndexTM (PMITM) - a

composite single-figure indicator of

manufacturing performance - showed a solid

improvement in the health of the sector



Concurrently, holdings of pre-

production items rose in August. Having

eased since July, the rate of accumulation

was only marginal. In contrast, post-

production inventories declined for the

fourteenth month running and to a greater

extent. According to survey participants,

orders were often fulfilled directly from

stocks.

Higher prices paid for petrol and other

raw materials led overall cost burdens

faced by Indian manufacturers to rise

further. However, the rate of inflation was

only slight and the slowest since February.

Similarly, factory gate charges rose at a

softer pace that was weak by historical

standards.

Finally, survey data highlighted an

increasing degree of pressure on the

capacity of manufacturers’ operations as

backlogs rose to the greatest extent since

December 2013.

Commenting on the Indian

Manufacturing PMI survey data, Pollyanna

De Lima, Economist at IHS Markit and

author of the report, said: Manufacturing

PMI data show that the positive

momentum seen at the beginning of the

second semester has been carried over

into August, with expansion rates for new

work, buying levels and production

accelerating further. Moreover, the

sector’s growth dynamics for the near

term are encouraging as companies will

likely continue their efforts to replenish

stocks. In fact, IHS Markit forecast a

robust 7.5 per cent increase in real GDP

during the fiscal year 2016/17.

On the price front, survey data

highlighted softer increases in input costs

and output charges and, in both cases,

inflation rates were below their respective

trends. In light of these numbers, the RBI

has scope to loosen monetary policy in the

upcoming meeting to further support

economic growth in India.


The ministry of shipping has

prepared a draft bill to replace

the Major Port Trusts Act, 1963,

with a view to promote port

infrastructure and facilitate trade and

commerce.

The draft ‘Major Port Authorities

Act, 2016’, aims at giving more

autonomy and flexibility to major

ports and to bring in professional

approach in their governance. This

will help to impart faster and

transparent decision making which

will benefit the stakeholders, a

shipping ministry release stated.

The proposed bill was earlier

uploaded on the website of the ministry

of shipping for comments from

various stakeholders and the new

draft is based on the suggestions/

comments from the stakeholders.

The draft bill proposes a simplified

composition of the port’s board, which

will have 10 members, including 3 to

4 independent members, instead of

17-19 under the present Port Trust model. Provisions have been made for

inclusion of 3 functional heads of major ports as members in the board apart

from a government nominee and a labour nominee.

The regulation of tariff by Tariff Authority for Major Ports (TAMP) has been

removed and in future public-private partnership (PPP) operators will be free

to fix tariff based on market conditions and notify the port authority. The

board of the port authority has been delegated the power to fix the scale of

rates for other port services and assets like land.

The bill defines port related and non-port related use of land and a

distinction has been made between these two usages in terms of approval of

leases. The port authorities are empowered to lease land for port related use

for up to 40 years and for non-port related use up to 20 years beyond which

the approval of the central government is required.

For PPP projects the tenure of the lease of land would be as per the PPP

policy of the government.

The need for government approvals for raising loans, appointment of

consultants, execution of contracts and creation of service posts have been

dispensed with. The board of the port authority has been delegated power to

raise loans and issue security for the purpose of capital expenditure and

working capital requirement

The concept of internal audit of the functions and activities of the central

ports has been introduced on the lines of Companies Act, 2015.

An independent review board has been proposed to be created to carry out

the residual function of the erstwhile TAMP for major ports, to look into

disputes between ports and PPP concessionaires, to review stressed PPP



projects and suggest measures to revive

such projects. It will also look into complaints

regarding services rendered by the ports /

private operators operating within the ports.

At present, there is no independent body to

look into these aspects and the review board

will reduce the extent of litigation between

PPP operators and ports.

The bill provides for CSR and development

of infrastructure by port authority.

The status of port authority will be deemed

as ‘local authority’ under the provisions of the

General Clauses Act, 1887 and other

applicable statutes so that it could prepare

appropriate regulations in respect of the area

within the port limits to the exclusion of any

central, state of local laws.

Government’s direct tax

kitty swelled by 15.03

per cent year-on-year to

Rs 1.89 lakh crore during

the April-August period,

on the back of robust

flows of personal income

tax.

Collection of direct

taxes, which include

personal income tax and

corporate tax, in the first five months (till August

2016) increased by 22.30 per cent of the budget

estimates for the full fiscal.

“The figures for direct tax collections up to August

2016 show that net revenue collections are at

Rs1,89,000 crore, which is 15.03 per cent more than

the net collections for the corresponding period last

year,” CBDT said in a statement.

Gross collection of corporate income tax grew

11.55 per cent, while collection of personal income tax

increased by 24.06 per cent.

After adjusting for refunds, the net growth in

corporate tax collections stood at (-) 1.89 per cent

while that of personal income tax stood at 31.76 per

cent.

Corporates cornered most of the Rs77,080 crore

refunds issued during April-August, which is 22.18 per

cent higher than the refunds issued during the


The government hopes to collect Rs8,47,000 crore

from direct taxes and Rs7,79,000 crore from indirect

taxes, which includes customs, excise and service

tax, in 2016-17 fiscal.

The proposed billwas earlieruploaded on thewebsite of theministry ofshipping forcomments fromvarious stakeholders and thenew draft is basedon thesuggestions/comments fromthe stakeholders


Three recent events have brought back the debate

about the nature of an economic recovery into

sharp focus. One, the monsoon has come good

and brought cheer across the economy. The obvious

positive impact on agricultural growth is expected to

stimulate the rural economy.

Two, on the urban front, the increased payouts on

account of the Seventh Pay Commission’s award are

expected to do the same for raising overall demand.

The third factor is the coming together of political

parties to usher in the goods and services tax, which is

expected to pave the way for greater efficiency in the

market. Seen in this context, the rising valuations in the

stock markets may not seem odd.

True, corporate performance in the June quarter has

not been encouraging, but firms with a larger dependence

on domestic consumption are expected to do much better

going forward. Car and two-wheeler companies, for

example, have already started showing encouraging

sales growth.

Yet, the debate about recovery persists for a variety

of good reasons. In fact, looking at another set of data,

observers could be justified in asking: "What recovery?"

For one, there are several reasons why the uptick in

rural demand may not really happen to the extent hoped

for. That’s because of the deep-set indebtedness in rural

households.

The average per household debt has increased from

Rs 7,539 in financial year 2001-02 (FY02) to Rs 32,522

in FY12 - a jump of over 300 per cent. The droughts of

FY15 and 16 made matters worse. Given that nearly half

the rural borrowing still happens from non-institutional

sources, how much of the improved earnings from this

harvest will trigger consumption and how much would

be used to retire debt is an open question.

Corporate performance inthe June quarter has notbeen encouraging, but firmswith a larger dependence ondomestic consumption areexpected to do much bettergoing forward



On the urban consumption front, there are two

reasons why the expected consumption spurt may not

happen. One, the data from eight employment-intensive

industries had suggested a sharp fall in job additions

between FY15 and the first nine months of FY16.

Together with the urban wage growth being at a seven

year low, according to one index by Citi Research, it is

clear that there are structural reasons that may pull down

urban purchasing power.

But a consumption-driven demand spurt, to the extent

that it happens, will only result in a short-term recovery.

For a sustainable recovery, investment levels have to

go up. This aspect is brought out by the dramatically

different performance of two key indicators that one

expects to go together.

On the one hand, the core sector data show marked

improvement over the past two quarters, especially in

sectors like coal and cement. However, this is contrasted

by an equally anaemic index of industrial production.

The oddity, of course, is that the core sector accounts

for 38 per cent of the IIP and yet, as a Care Ratings

research shows, the two variables have moved separately

since the start of FY12.

What has essentially happened lately is that the core

sector, which in IIP terms, comprises basic and

intermediate goods, has grown on the back of the

government’s infrastructure push – roads and railways

– as well as more transparent mining auctions.

Yet, the capital and consumer goods indices within the

IIP, together accounting for 39 per cent, have contracted

in four years (capital goods) and three years (consumer

goods), respectively, out of the past five years.

As such, even while consumption may improve a little

this year, the expected recovery will peter out if capacity

utilisation rates do not go up significantly and fresh

investment does not happen.

A Seminar on the Business

opportunities for India companies

in Hong Kong Trade development

Council was held on 23-08-2016.

The Seminar named "Explore

business opportunities through

Hong Kong" was organized to

raise awareness of local

entrepreneurs and businessmen

about Hong Kong, an excellent

platform to expand their business

globally.

Chairman, KCCI, Mr. Raja

Sethunath, presided over the

meeting. Director, HKTDC

Ms.Vivienne Chee and Consultant

HKTDC, Mr. Rajesh Bhagat

shared insights on international

trade opportunities and the

practical assistance that HKTDC

can offer to assist Indian

Businessmen. The seminar

outlined ways and means for Indian companies to take their business to

the international markets via Hong Kong. HKTDC will impart value additions

such as providing marketing opportunities, business matching services,

market intelligence and SME development programmes that help Indian

businesses take the next step towards international business opportunities.

Directors and Executive Members of Ladies and Youth Forum attended the

programme.

A.J.Rajan IAS (Rtd), Secretary, KCCI addressing. Ms.

Vivienne Chee, Director, Singapore Branch HKTDC,

Mr.RajaSethunath, Chairman, KCCI and Mr.Rajesh Bhagat,

Mumbai Consultant, HKTDC are also seen.


The government expects record

foodgrain production of 265-

270 million tonnes in 2016-17

despite a slowdown in the intensity of

south-west monsoon as a delay in

monsoon’s withdrawal revives hope

of production hitting target.

Earlier forecasts of an above-

normal monsoon had raised

expectations of achieving a target of

270.1 million tonnes of foodgrain

production in 2016-17 against the

previous record output of 265.04

million tonnes achieved in 2013-14.

“A record production this year

would mean an output of 265 MT to

270 MT,’’ reports quoting agriculture

ministry officials said.

“Overall, the monsoon has been

favourable to farmers this year. We have received good rains, and the

distribution was also good. I am sure we will have record production this

year,’’ agriculture minister Radha Mohan Singh said, addressing a conference

on rabi crops on Thursday. He, however, did not quantify the likely

production.

Foodgrain production fell in the past two years to 252.02 million tonnes in

2014-15, and 253.23 million tonnes in 2015-16 owing to drought.

This year, the centre had set an ambitious target, encouraged by the

Indian Meteorological Department’s (IMD) forecast of an above-normal

monsoon, with rainfall at 106 per cent rainfall of the Long Period Average (LPA).

Although rainfall was 5 per cent lower than average during the period from

1 June to 15 September, the IMD expects its initial prediction to hold, given

the delay in the monsoon’s withdrawal, which usually begins early September.

Kharif sowing since the monsoon arrived in June has been satisfactory due

to the good spread of rainfall countrywide.

The minister noted that pulses production was expected to be a record in

the kharif season as sowing had risen 29 per cent to 143.95 lakh hectares.

“Since much of pulses output comes from the rabi season, we need to

continue encouraging farmers to grow pulses,’’ Singh said. Farmers should



get the minimum support price (MSP)

for pulses so as to incentivise planting

in the rabi season as well, he added.

Government agencies have begun

procuring kharif moong in Karnataka

and Maharasthra at the MSP. Other

pulses like tur and urad will be

procured once their arrival begins on

large scale, Singh said.

The centre has decided to raise buffer stock of pulses to 2 million

tonnes from 8 lakh tonnes now, which will be sources through

domestic procurement and imports in order to keep the prices

stable and encourage farmers to grow more.

Retail prices of pulses that have skyrocketed

since last year, have since softened in the last

few weeks and are currently in a range of

Rs115-170 per kg across major cities. This,

however, is still on the higher side for most

consumers.

The Cabinet Committee on Economic Affairs

(DDEA) on approved a proposal by the

Department of Consumer Affairs for enhancing

the buffer stock for pulses to 2 million tones

Of this 1 million tonnes will be imported

while the remaining will be procured

domestically. The specific variety of pulses

and their respective quantities for the buffer

stock, their phasing/procurement will be

decided based on price and availability position,

both domestic and global, and changes, if any, in the procurement

plan for the current and subsequent seasons will be with due

approvals.

Releases from the stock and procurement in subsequent year

would be based on the prevailing pulse scenario as well as buffer

stock position. Requisite funds for this operation would be provided

to the ‘Price Stabilisation Fund’ Scheme of the Department.

Domestic procurement operations will be undertaken by the

central agencies such as FCI, NAFED and SFAC or any other agency

as decided by the committee at the prevailing market prices if the

prevailing market prices are above minimum support prices (MSP),

and at MSP, if otherwise. In addition, state governments may also

be authorised, wherever possible, to undertake the procurement in

a manner similar to decentralized procurement of food-grains.

Import of pulses under PSF to meet the buffer stock requirements

would be undertaken through G2G contract and/or spot purchase

from the global market through designated Public Sector Enterprise

of Department of Commerce or any other agency designated by

PSFMC. Business News Corporation

Earlier forecastsof an above-normal monsoonhad raisedexpectations ofachieving atarget of 270.1million tonnes offoodgrainproduction in2016-17 againstthe previousrecord output of265.04 milliontonnes achievedin 2013-14

The Cabinet

Committee on

Economic Affairs

(DDEA) on

approved a

proposal by the

Department of

Consumer

Affairs for

enhancing the

buffer stock for

pulses to 2

million tones


The union cabinet

approved the setting up of

a GST Council, which will

decide the rate of tax under the new

goods and services tax (GST) regime,

which is likely to kick in from 1 April

2017.

The GST Council will be headed by

union minister of finance and will

have the minister of state in charge of

revenue and state finance ministers

as members.

The union cabinet also approved

the setting up of GST secretariat,

following the ratification of the GST

amendment bill by state governments

and signing it into law by the President.

The cabinet approved the creation

of the GST Council Secretariat, with

its office at New Delhi and the

appointment of the secretary

(revenue) as the ex-officio secretary

to the GST Council.

The chairperson of the Central

Board of Excise and Customs (CBEC)

will be included as a permanent invitee

(non-voting) member to all

proceedings of the GST Council.

The cabinet also approved the

creation of the post of an additional

secretary to the GST Council in the

GST Council Secretariat (at the level

of additional secretary to the

Government of India), and four posts

of commissioner in the GST Council

Secretariat (at the level of joint

secretary to the Government of India).

The cabinet also decided to provide

for adequate funds for meeting the

recurring and non-recurring expenses

of the GST Council Secretariat, the

entire cost for which will be borne by

the central government. The GST

Council Secretariat will be manned by

officers taken on deputation from both

the central and state governments.

The steps required in the direction

of implementation of GST are being

taken ahead of the schedule so far.

The finance minister has also

decided to call the first meeting of the

GST Council on 22 and 23 September

2016 in New Delhi.

The GST Council will be a joint

forum of the centre and the states and

will have the union minister of finance

as chairperson with the union minister

of state in charge of revenue and

state minister of finance or taxation

or any other minister nominated by

each state government as

members,

The council wil l make

recommendations to the union and

the states on important issues related

to GST, like the goods and services

that may be subjected or exempted

from GST, model GST Laws,

principles that govern place of supply,

threshold limits, GST rates, including

the floor rates with bands, special

rates for raising additional resources

during natural calamities/disasters,

special provisions for certain states

etc. Business News Corporation

The cabinet approved

the creation of the

GST Council

Secretariat, with its

office at New Delhi

and the appointment

of the secretary

(revenue) as the ex-

officio secretary to the

GST Council

Election of the Office Bearers of KCCI Ladies Forum held

on 24.08.2016 at the Chamber Hall of the KCCI. After

Election, the Oath taking of the newly elected office Bearers

also held. Ms. LekhaBalachandran and Ms. Nirmala Lilly

elected as Convener and Joint Convener of the KCCI Ladies

Forum. Ms. Lekha

Balachandran

(Convenor)

Ms. Nirmala

Lilly

(Jt. Convenor)



The passage of a new goods

and services tax and

streamlining of the banking

sector together with revival of stalled

infrastructure projects will drive India’

economic growth, finance minister

Arun Jaitley said today, adding that

banking sector reforms does not

mean selling off state-owned banks.

In fact, the finance minister said,

the government has no plans to relax

ownership in banks as it would be

contrary to state interest.

Public sector banks control 70 per

cent of assets in the financial system and

hold the lion‘s share of India‘s Rs800,000

crore ($120 billion) in bad loans.

“I don`t think that public or political

opinion has converged to the point where

we can think of privatisation in the

banking sector,” Jaitley told The

Economist India conference on the

Income Declaration Scheme in New

Delhi.

Jaitley said his top priority is the

passage of a new goods and services

tax (GST) this autumn. He said he was

determined to stick to a “very stiff”

schedule that foresees passing critical

enabling legislation for a new goods and

services tax (GST) this autumn.

He said the government will press

ahead with repairing the banking

system and getting stalled

infrastructure projects moving to drive

growth, but it is not yet ready to sell

off state banks.

The government is consolidating some of the public sector banks to

strengthen their finances and management, as most of these banks are laden

with bad loans and their lending capacity has been constrained.

The government currently holds 60 to 86 per cent in nearly two dozen

state-run banks, but, Jaitley said, it has plan to reduce the state‘s share below

a threshold of 52 per cent.

However, the banks need money to recapitalise themselves and this has

to come mostly from the market and the best way to tap market is to sell

equity. On the new GST legislation, Jaitley said once implemented, it would

even out the layered tax structure and will have a “transformational” impact

by creating a common market in India.

Since the new tax regime will be revenue neutral, it will, at the same time, act

as a transfer mechanism that would aid poorer states in the federal structure.

Without stating the proposed rate under the GST regime, Jaitley said, the goal

of the federal and state governments would be for the tax to be revenue-neutral

and, and as the tax becomes established, for its rate to come down over time.

In fact, he said, the rate should come down over a period as the spread

of the tax net widens.


Reserve Bank of India (RBI)

has decided on uniform norms

for refinancing of project loans

by banks and non-banking finance

companies (NBFCs), thereby bring-

ing all rules governing refinancing of

project loans, sale of NPA and other

regulatory measures common for

banks and NBFCs.

This has been done in view of the

references received from NBFCs and

on the basis of instructions contained

in RBI’s own circulars issued in

February and August 2014 on

refinancing of project loans for

revitalising stressed assets in the

economy, RBI stated in a release.

Accordingly, NBFCs may refinance

any existing infrastructure and other

project loans by way of take-out

financing, without a pre-determined

agreement with other lenders, and

fix a longer repayment period, the

same would not be considered as

restructuring.

For loans to be eligible for

refinancing,

NBFCs should ensure that such

loans are ‘standard’ in the books of

the existing lenders, and should have

not been restructured in the past;

Such loans should be substantially

taken over (more than 50 per cent of

the outstanding loan by value) from

the existing financing lenders; and

The Repayment period should be

fixed by taking into account the life

cycle of the project and cash flows

from the project.

For existing project loans where the aggregate exposure of all institutional

lenders is minimum Rs1,000 crore, NBFCs may refinance such loans by way

of full or partial take-out financing, even without a pre-determined agreement

with other lenders, and fix a longer repayment period, and the same would

not be considered as restructuring in the books of the existing as well as

taking over lenders, if the following conditions are satisfied:

The project should have started commercial operation after achieving

date of commencement of commercial operation (DCCO);

The repayment period should be fixed by taking into account the life cycle

of and cash flows from the project, and, Boards of the existing and new

lenders should be satisfied with the viability of the project. Further, the total

repayment period should not exceed 85% of the initial economic life of the

project / concession period in the case of PPP projects;

NBFCs may refinance any existinginfrastructure and other project loansby way of take-out financing, without apre-determined agreement with otherlenders, and fix a longer repaymentperiod, the same would not beconsidered as restructuring



Such loans should be ‘standard’

in the books of the existing lenders at

the time of the refinancing;

In case of partial take-out, a

significant amount of the loan (a

minimum 25 per cent of the

outstanding loan by value) should be

taken over by a new

set of lenders from the existing

financing lenders; and

The promoters should bring in

additional equity, if required, so as to

reduce the debt to make the current

debt-equity ratio and Debt Service

Coverage Ratio (DSCR) of the project

loan acceptable to the NBFCs.

A lender who has extended only

working capital finance for a project

may be treated as ‘new lender’ for

taking over a part of the project term

loan as required under the guidelines.

The above facility will be available

only once during the life of the existing

project loans.

Despite having a supposedly business-friendly Narendra

Modi-led BJP government in place, India has slipped by as

many as 10 positions to 112th out of 159 countries and

territories in terms of economic freedom, as it ‘’fared badly’’

across categories including legal system and regulation,

according to the Economic Freedom of the World: 2016 Annual

Report.

Although China, Bangladesh and Pakistan lagged behind

India at 113th, 121st and 133th ranks respectively, Bhutan

(78), Nepal (108) and Sri Lanka (111) were better placed on

the World Economic Freedom Index.

‘’India has fared badly in all categories, i.e. legal system

and property rights (86), sound money (130), freedom to

trade internationally (144) and regulation (132) - except on

the size of the government (8),’’ the report said.

At the top of the index were the usual suspects: Hong Kong

has the highest level of economic freedom worldwide, followed

by Singapore, New Zealand, Switzerland, Canada, Georgia,

Ireland, Mauritius, the UAE, Australia, and the UK.

The 10 lowest-ranked countries are Iran, Algeria, Chad,

Guinea, Angola, Central African Republic, Argentina, Republic

of Congo, Libya and lastly Venezuela.

India’s leading public policy think tank, Centre for Civil

Society, has published the report in collaboration with Canada’s

Fraser Institute. The report is based on data from 2014 and

measures economic freedom by analysing the policies and

institutions of all 159 countries and territories.


The UnifiedPayment Interfacecould propelbanking systeminto a new era

The Unified Payment Interface (UPI), which was

launched recently, should considerably ease the

process of retail transactions and thus, help move

the economy closer to the Reserve Bank of India’s (RBI’s)

ideal of a "less cash" economy.

If it works as envisaged, the UPI will offer great

convenience and enhanced security. Many transactions,

including e-commerce payments, cab fares, road-toll

payments, medical emergency payments, and so on,

can be managed instantly without the need to carry cash,

or risk being hacked.

The free app is currently available for the account

holders of 19 private and public sector banks. Any

android phone user may download it from Play Store.

The user may set up an account with a "virtual id"

(that is a username) and a secret mobile PIN (personal

identification number).

Money can be transferred from any virtual id to any

other virtual id. There is an upper limit of Rs 1 lakh per

transaction, with no lower limit.

Each transaction is confirmed by text messages. The

confirmation and reconciliation of transactions are done



by the National Payments Corporation of India (NPCI),

an umbrella organisation set up by the RBI.

NPCI has every commercial bank as a member.

Another 20-odd commercial banks are expected to

release versions of the app soon.

The users of the UPI system need not reveal bank

account details, PAN, etc, to each other; all they need is

the virtual id of the counter-party.

The costs are minimal, working out to an SMS per

transaction (users must have a working data connection).

The system operates 24x7 and the transfer is

instantaneous, unlike with a cheque payment, or even a

conventional electronic bank transfer (NEFT/RTGS).

Once the app is rolled out by all banks, anybody with

an android smartphone – about 250 million Indians at

the moment and growing fast – and a bank account could

be a user.

This vastly increases the catchment population for

cashless transactions. Currently, less than 25 million

Indians have credit cards and about 125 million have

mobile wallets.

The UPI app supersedes mobile wallets since it is more

convenient. The utility of the UPI will be enhanced as its

popularity grows; the more entities there are utilising

the UPI, the more useful it will become.

This system could profoundly alter the transaction

landscape. Roughly two-thirds of India’s GDP by volume,

or about Rs 95 lakh crore, is estimated to be generated

in cash transactions. Many of these transactions could

be more conveniently settled this way.

That would reduce the need to print and circulate

expensive paper currency. The UPI system will also

generate huge data, which would help to accurately map

the cash economy and identify areas of tax leakage.

Over time, it would also be possible to develop credit-

profiling models that are more accurate and dynamic.

The UPI will need robust security. Apart from strong

authentication for end-users, the NPCI server will have

to be very secure and completely backed up.

There must also be end-to-end encryption to prevent

messages being read in transit and fail-safe measures

to deal with theft of mobiles, and loss of connectivity

during a transaction, etc.

Assuming those pre-conditions are met, the UPI could

be a disruptive technology that propels the banking

system into a new era.

The Kerala Chamber of Commerce and Industry conducted a talk on GST. Adv. Mr. Jose

Jacob Head of Indirect taxes and Corporate Law of Fosbury Consultants dealt with the

session. The gathering was welcomed by Chairman Mr. Raja Sethunath and vote of thanks

was delivered by Mr. Antony Thomas,Director , KCCI. Directors Mr. Mathew Kuruvithadam,

Mr. K.S.Usman, Members of KCCI Ladies Forum and Youth Forum attended the programme.


A merger of the railway budget with the union budget will not relieve

the Indian Railways from paying dividend to the government and

bearing the cost of social obligations and pension liabilities.

On the contrary, say commentatore, the railways will increasingly be seen

as a cash cow to derive revenues for the union government. The new status

will further aggravate the financial woes of Indian Railways, which has been

losing both freight and passenger revenues.

Indian Railways pays around Rs10,000 crore a year to the finance ministry

as dividend. Also, there are around 1.4 million pensioners under the railways

who draw Rs8,000 crore per year. To top it all, the Railways will have to bear

an increased financial burden of Rs40,000 crore per annum once the 7th

Pay Commission recommendations are implemented.

The railway ministry might have thought of unburdening itself from social

obligations, except perhaps for corporate social responsibility, but a joint

committee set up by the new planning body NITI Aayog says Indian Railways

may have to continue paying dividend to the ministry of finance, bear its

social obligation cost and pension liabilities even after the rail and the union

budgets are merged.

A joint committee comprising members of the National Institution for

Transforming India (Niti) Aayog and the finance ministry to look into the

modalities of the budget merger, has submitted a 20-page note titled

'Dispensing with the Rail Budget'.

The committee has two members from the railway ministry and three

members from the finance ministry.

The note jointly authored by Niti Aayog members Bibek Debroy and Kishore

Desai, has recommended against dividend waiver and concessions on social

obligations.

"Though we have not received any official report, the finance ministry

officials in the joint committee have discussed that they are not in favour of

giving waiver on dividend. They have also discussed that they are not in

favour of paying for the railways'

social obligation costs and pension

liabilities,'' reports quoting a railway

ministry official as saying.

The joint committee is reported to

have submitted detailed

recommendations on the merger to

the finance ministry on 9 September

Railways will nowhave toconcentrate onincreasing itsrevenue as that isthe only way itwill be able tomake up for costsof taking care ofits socialobligation cost,pension liabilitiesand dividendpayout



The railways will now have to make good the

Rs33,000-crore loss incurred in its passenger

business in 2014-15 on account of its social

service costs. The pension outgo in the current

financial year has been pegged at Rs45,500 crore.

Social obligation cost includes the losses

incurred by the railways due to running services

below operating cost, as in the case of suburban

services, where the operating cost is as high as

750 per cent.

The social obligation cost also includes staff

welfare and law and order costs.

Railways will now have to concentrate on

increasing its revenue as that is the only way it

will be able to make up for costs of taking care of

its social obligation cost, pension liabilities and

dividend payout.

Passenger earnings of the Railways is expected

to grow at 12.4 per cent under an earnings target

of Rs51,012 crore for financial year 2016-17. It

plans to invest Rs8,500,000 crore in the next five

years with a total capital for infrastructure for

the current financial year set at Rs.1,210,000

crore.

The rail ministry will have autonomy on fares,

tariff revision and market borrowing.

and the ministry will give nod to the final report submitted by

the joint committee.

The railway ministry, however, has not much say in the

recommendations with the finance ministry members

outnumbering railway representatives in the panel.

A Session on

‘Emerging Trends in

Business Management

services’ was held on

07-09-2016 at

Chamber Hall of the

KCCI in association

with the ICICI Bank,

Edapally Branch. The

Function was

inaugurated by Mr. Raja

Sethunath, Chairman,

KCCI.

The gathering was welcomed by Mr.

A.J.RajanIAS(Rtd), Secretary, KCCI. Key

note address was delivered by Mr.

VivekKadam, Regional Manager, ICICI

Bank, Bangalore. Mr. Ramdas Nair, Chief

Manager, ICICI Bank, Cochin also spoke on

the Occasion.


Reserve Bank has included factoring transactions

under priority sector lending with an aim to

increase cash flow to small and medium

enterprises.

Factoring is a type of financial transaction and debtor

finance in which a business sells its invoices to a third

party, called a factor, at a discount. Companies sometimes

factor their receivable assets to meet their immediate

cash needs.

“To increase liquidity support for the MSME sector, it

has been decided that factoring transactions on ‘with

recourse’ basis shall be eligible for priority sector

classification by banks, which are carrying out the business

of factoring departmentally,” RBI said in a notification.

RBI said the factoring transactions taking place through

TReDS will also be eligible for classification under priority

sector upon operationalisation of the platform. TReDS is

an exchange-based trading platform to facilitate financing

of bills raised by such small entities to corporate and

other buyers, including government departments and

PSUs, by way of discounting.

RBI said banks may classify their outstanding factoring

portfolio on the reporting dates under MSME category as

per its Master Directions on PSL, wherever the ‘assignor’

in the factoring transaction is a micro, small or medium

enterprise, subject to the corresponding limits for

investment in plant and machinery/ equipment and other

extant applicable guidelines for priority sector

classification.

RBI said the bank should also obtain from the borrower

periodical certificates regarding factored receivables to

avoid double financing/ counting. Further, the ‘factors’

must ensure to intimate the limits sanctioned to the

borrower to the concerned banks and details of debts

factored taking responsibility to avoid double financing.


“To increase liquiditysupport for theMSME sector, it hasbeen decided thatfactoringtransactions on ‘withrecourse’ basis shallbe eligible forpriority sectorclassification bybanks, which arecarrying out thebusiness of factoringdepartmentally”


The MSME Ettumanur Training

division in association with KCCI

Calicut Region conducted a one day

Training programme on Industrial

motivation PMMY. About 300

persons participated in the

programme. The programme was

formally inaugurated by the District

Collector, Calicut.

Sri. P.M.A Gafoor, President, Kerala State Small Industries Association(KSSIA),

District Chapter, Calicut and Sri.G S Prakash, Deputy Director In Charge, MSME

Training Institute, Ettumanur, lightening the lamp. Sri. N. Prasanth, IAS. District

Collector, Calicut, Sri. G.Balagopal, Assistant Director, MSME Training Institute,

Ettumanur, Sri.SimonZackaria, General Manager, District Industries Centre (DIC),

Calicut are also seen

Signing OF MOU Between Kerala Cham-

ber of Commerce and Industry and So-

ciety for Integrated Growth of the Nation

(SIGN) held on 29-08-2016 at Gokulam

Park Inn, Kaloor.SIGN is an NGO which

has the objective of active integrated de-

velopment in various sectors. The SIGN

is joining hands with the Kerala Chamber

of Commerce and Industry for implement-

ing a dream project ‘Make in Kerala’. Mr.

A.N. Radhakrishnan, President , SIGN

delivered Keynote address.

Cmde.MR.Ajay Kumar NM VSM (Rtd),

Mr.RajaSethunath, Chairman, KCCI,

Mr.T.P. Muraleedharan Nair Director and Sec-

retary, SIGN also spoke on the occasion.

Mr. A.N.Radhakrishnan, President, SIGN addressing. Cmde. MR Ajay

Kumar, NM VSM (Rtd), Mr. Raja Sethunath, Chaiman, KCCI, Mr. T. P.

Muraleedharan Nair, Director and Secretary, SIGN are also seen.


Bilateral trade between India and the US has

gathered strength rising to more than $105 billion

during the 2015-16 financial year, amidst an

otherwise sluggish scenario in global trade, commerce

and industry minister Nirmala Sitaraman said at the

annual India-US strategic and commercial dialogue.

While this figure is much below the potential, as the

trade complementarity between the two large democracies

is very high, the minister said the improvement in trade

volume speaks amply for India-US trade ties.

She said the two countries have been engaged in the

use of institutional dialogues like Trade Policy Forum and

Strategic and Commercial Dialogue to address the issues

being faced by the trade and to look at broader economic

policy initiatives and I must mention that such

engagements have been highly productive from the point

of view of both the countries. These mechanisms have

provided appropriate platforms for sustained interaction

between public and private sector to work together to

identify newer areas of cooperation and to work around

challenges and impediments to smoothen the flow of the

relationship, she said.

The commercial track of S & CD was led by Nirmala

Sitharaman on the Indian side and Penny Pritzker on the

US side. The two ministers also presided over the CEO

Forum along with Tata group chairman Cyrus Mistry, and

Honeywell chairman Dave Cote, the two co-chairs from

India and United States, respectively.

Sitaraman said Prime Minister Narendra Modi and US

President Barrack Obama had set an ambitious target of

taking the bilateral trade to levels around $500 billion and

this would require both the sides to work in close

cooperation and resolve impediments to trade.

‘’I would like to assure you that we remain strongly

committed to make India a better place to do business

and to progressively liberalise our economy to facilitate

greater investment,’’ she told the CEOs Forum.

She cited the numerous changes in FDI policy to bring

FDI from theUS has also

shown a positivegrowth trend

from $804million in 2013-

14 to $4.19billion in 2015-

16, Sitaramanpointed out



more activities under the automatic route and

easing conditionality for foreign investment.

New sectors like defence, railways etc have

been opened to foreign investments.

Reforms undertaken in the recent months

have shown positive results and FDI inflows

into India have increased at a time when

globally, there is decline in the investment

flows. ‘’Total FDI inflow into India which was

at $36 billion during 2013-14 increased to

$44.2 billion in 2014-15 and further to $55.4

billion during the year 2015-16.

FDI from the US has also shown a positive

growth trend from $804 million in 2013-14 to

$4.19 billion in 2015-16, Sitaraman pointed

out.

India, she said, has been taking persistent

efforts towards simplification of the tax regime

and the passage of the GST Bill is expected to

provide the required boost for a simplified

indirect tax regime. The bipartisan support

for this initiative augurs well for the Indian

economy, she added.

Combined with initiatives like improving

the ease of business the initiative in bringing

about the insolvency and bankruptcy code

that would overhaul the existing framework

for dealing with insolvency of corporates,

individuals, partnerships and other entities,

introduction of Single Window Interface for

Facilitating Trade (SWIFT) which allows the

importers/exporters to fi le a common

declaration on the customs’ ICEGATE portal,

have resulted in slashing the documentation

requirement for exporters and importers, she

pointed out.


As part of its Corporate Social Responsibility, the Kerala

Chamber of Commerce and Industry is coming up with a

recycling project which will be implemented across schools

in Trivandrum city in association with Malayala Manorama

The initiative is titled ‘Plastic to Money’. As part of the

initiative, the chamber in association with five of the city

schools plans to conduct a mass recycling of plastic

waste.

One of the major issues in the city is waste disposal.

While organic waste and others can be burnt or buried

without harming the atmosphere or health of the public,

it is not the same case with plastic waste. It cannot be

burned nor can it be buried, organisers said.

As part of the project, students with the help of parents

can collect plastic materials from their home like empty

milk covers, carry bags, bottles and even bits of plastic

covers.

These, after being cleaned and dried thoroughly, can

be collected in cloth bags distributed in the schools. Once

this is completed, KCCI personnel will arrive at the

schools to collect the materials at Rs 10 per kilogram.

The event was inaugurated by Minister K T Jaleel, at

Govt.VHSC Manacaud

The project is aimed at creating a sense of social

responsibility and awareness among students. This is a

one-of-a-kind event where a corporate social

responsibility event has been done in collaboration with

schools.

If you can identify any of these red flags,

then it’s probably time to retool your

business’s marketing strategy

Your business is rolling along and you think your brand strategy is

working. But is it? Are your marketing messages and materials

driving the results you need? If not, it might be time for a

marketing makeover.

You’ll know it’s time to go back to the marketing drawing board if you

can identify any one of the following red flags happening at your small

business. The trick may be to rebrand, adjust your value proposition or

simply modify your existing strategy before these danger signs turn into

unavoidable catastrophes.

1. Nothing matches.

Strong brands consistently deliver on their promises to consumers in

every brand interaction. Inconsistent messages and visual imagery can

confuse consumers, forcing them to turn away from your brand in search

of one that does continually meet their expectations. If your website,

signage, ads and marketing materials look like they come from multiple

companies, then you need to redesign them so you communicate a

consistent brand at all times.

2. You don’t know what you want.

If you haven’t mapped out your one-year and five-year goals, then

your marketing efforts might not be helping your business. Take some

time to determine your business objectives and then revamp your brand

and marketing efforts to help you reach those goals.

3. You don’t know how to connect with customers.

If you don’t know who you need to connect with and where to find

them, then you could waste a lot of time building relationships with people

and spending time in places that won’t drive the business results you

need. Instead, define your target audience and determine what benefits

and messages matter to them. Only then can you find where your target

audience spends time (for example, watching television, listening to the

radio, on social media, reading blogs, and so on), so you can connect



with them and deliver the kind of valuable information

and conversations they want and need.

4. You’re talking only about yourself.

It’s important to strike a balance between being

social and only self-promoting. Socially, if you talk only

about yourself all the time, no one will want to hang out

with you. You should take the time to get to know

people — in person and on social media sites like

Twitter, Facebook and LinkedIn — and build

relationships with them. Cultivate these relationships to

help build brand loyalty and advocacy. You shouldn’t

interrupt people with marketing messages. You also

need to engage them with meaningful content and

conversations.

5. The competition looks better than you.

If your competitors’ message and look outshine

yours then you might need to make a change. The idea

is to stay ahead of the curve without copying your

competitors’ marketing for the sake of keeping pace. If

you don’t look and sound equal to or better than your

competitors, then there is no reason for consumers to

do business with you. Determine what differentiates

you from your competitors and what benefits you can

deliver to consumers that your competitors cannot.

Once you know what those differences are, make sure

the world knows them, too through your branding and

marketing efforts.

While first impressions can be crucial, online

consumers can move quickly. If they can’t determine

who you are, what you do and how you can help

them in three seconds or less, they’ll pass you by.

Make sure the first impression you make is clear,

concise and quick.

Marketing makeovers offer significant

opportunities to stay current, jump ahead of your

competitors, and appeal to wider consumer

audiences. Don’t risk alienating your existing

customers with a marketing makeover that makes

your business and brand unrecognizable to them.

In other words, invasive plastic surgery of your

brand can do more harm than good. Instead,

pursue smaller changes that enhance your brand

and business rather than completely reconstructing

it.


You don’t have to let self-doubt, fear

and lack of focus complicate your life

and stagnate your business growth.

The shortest distance between two

points is a straight line. Unless our brains get

involved. Then we’ll find a way to roam the

world looking for complicated alternatives.

The mind can catapult us to our greatest

hopes and dreams, or it can confuse and

torture us until we give up in disappointment.

Here are the most common mental battles

entrepreneurs face, plus a quick prescription

for each.

1. Little think.

“You don’t think big enough. I think of

writing scores of books, a body of work, you

procrastinate over a blog post.” — Alan

Weiss

We never will hit our milestones if we allow

each step to stall us. Overthinking the small

things traps us, preventing us from achieving

the big things.

The enemy of procrastination is now. Make

a quick but solid decision, and move forward

by leaps.

2. Doubt fires.

“Thinking will not overcome fear, but action

will.” — W. Clement Stone

When doubt fills our minds, fear dominates

our thoughts. Take action and realize that

most of your fears are imagined. Self-

imposed nightmares conjure the worst

possible results.

Perhaps you can’t take the “massive

action” so often encouraged. But you can

take a step and then another step. You can

move toward your goal.

3. Future failures.

“It is impossible to live without failing at

something, unless you live so cautiously that

you might as well not have lived at all, in

which case you have failed by default.” — J.

K. Rowling

When we fail to profit, we often become

prophets. We start seeing failure in advance,

even if there’s no evidence our venture is

headed for disaster. When the mind foresees

failure, it can lead to paralysis.

Fight future failure by reminding yourself

of past successes. Use evidence from your

past to predict your future.

4. Dataless decisions.

“Economics is everywhere, and

understanding economics can help you make

better decisions and lead a happier life.” —

Tyler Cowen

Emotional decisions can be dangerous, but

dataless decisions can be fatal. By nature,

most entrepreneurs are risk-takers. We have

a little bit of gambler in us, so it’s easy to

make gut decisions even when the odds are

against us.

Instead of rolling the dice on pure instinct,

consult the figures on the spreadsheets or

“You don’t think big enough. Ithink of writing scores of books,a body of work, you procrastinateover a blog post.” — Alan Weiss

Emotionaldecisions canbedangerous,but datalessdecisions canbe fatal. Bynature, mostentrepreneursare risk-takers. Wehave a littlebit of gamblerin us, so it’seasy to makegut decisionseven whenthe odds areagainst us



your group of trusted advisors. Make decisions based on

solid facts, not just the excitement of the moment.

5. Fuzzy focus.

“You can’t depend on your eyes when your imagination

is out of focus.” — Mark Twain

The ability to go where you want begins with the ability

to envision it clearly in your mind. Yet our imaginations

seem drawn to clutter and often end up overwhelming

us.

Find clarity by compartmentalizing your thoughts.

Create mental “buckets” and sort the various facets of

your business. Spend time thinking separately about

sales, marketing, revenue and expenses, or the

convergence will become unbearable.

6. Complicated calculations.

“Clarity comes with simplicity.” — Brendon Burchard

This mental block falls right in line with the last one.

Instead of making fast, minimal decisions, we tend to

make slow, maximal decisions. There are times we could

“It is impossible tolive without failingat something, unlessyou live so cautiouslythat you might aswell not have livedat all, in which caseyou have failed bydefault.”— J. K. Rowling

simply ask a friend for quick feedback, but we allow

issues to fall to a committee. Too many calculators only

complicate the process. Ask yourself, “What is the fastest,

safest way to reach X results?” Then do it.

7. Motivational manipulation.

“Whatever the mind of man can conceive and believe,

it can achieve.” — Napoleon Hill

Maybe. Sometimes the mental block is not a negative,

but a positive. We become so convinced we’ll reach a

goal that we expect the entire team to adopt our thinking.

This motivational manipulation might help in the short

term. But we can’t ignore accruing evidence that signals

we might be headed for disappointment.

Motivate without the manipulation. Be honest about

the ground you’ve gained or lost with the current strategy.

Reality is not a curse word; it’s the word that forms our

world.

The mind will never be fully tamed, so continue

fighting these mental blocks with courage and consistency.


In December 2014, MS Dhoni decided to take himself

off playing test cricket in India pointing to ”the strain

of playing all formats”.

“The demands of Test cricket have taken a big toll on

my body. And I have decided that the best way to serve

my country is to play the shorter formats. Test cricket has

always been a great challenge and I enjoyed the ride

while it lasted. I hope the next captain enjoys captaincy

as I did,” he said in a statement after playing the third

test in Australia.

Not only did Dhoni pass his baton to the next captain

but it seems the advertisers too have followed suit.

According to an Economic Times report, soft drinks

major PepsiCo has discontinued its 11 years of association

with 35-year-old Dhoni and chosen 28-year-old Kohli as

its brand ambassador.

The issue assumes significance when people focus on

the cricketer or the brand ambassador and not the brand.

For, as Harish Bijoor, Chief Executive Officer of brand

and business strategy firm Harish Bijoor Consults Inc

points out, a brand ambassador is not important simply

because it is the brand that comes first and the story that

is woven around it. “A brand needs a person to lead that

endorsement,” says Bijoor. In that scheme of things, for

a brand in the cola category, it is important to have

someone in sync with its image. However, that does not

mean Dhoni is not an icon anymore, says Bijoor. He has

been around for 11 years and his earnings from

endorsements have earned him $27 million dollars. “But

the cola brand is about youth and so it has a new brand

icon from cricket which is Virat Kohli now,” says Bijoor.

According to Forbes magazine, Sachin Tendulkar was

the highest paid player in cricket before Dhoni took

over. He is believed to have endorsed 50 brands with an

estimated endorsement fee of over Rs 500 crore.

Tendulkar dropped out of the world’s top 100 post his

retirement in 2014. According to ET, Dhoni had endorsed

18 brands in 2014 which fetched him a remuneration of

$27 million which has come down to 10 brands in 2016.

Dhoni charges Rs 1.5 crore per day unlike Kohli and

Tendulkar who charge Rs 2 crore per day.

Advertising guru Piyush Pandey, Executive Chairman



and national Creative Director of Ogilvy & Mather

India and and Vice-Chairman of O&M Asia-Pacific, sees

the choice of Kohli as someone who resonates more with

the brand. “Dhoni has reduced his exposure in cricket by

50 percent and it reflects in his brand endorsements,” he

says. Terming the change of ambassadors or brand

icons as a life cycle and an eventual outcome of the

cricketer choosing not to play all formats of cricket,

Pandey, however, asserts that Dhoni’s brand value will

continue.

The Pepsi brand is all about GenNext and that

it is what the brand is driving at as it chooses

younger icons to represent it. As younger icons

come on the scene, they replace the earlier ones

who have matured. “For the average youngster,

Virat Kohli is the role model now,” says Alpana

Parida, Managing Director, DY Works, a Mumbai-

based brand strategy and brand design.

She feels that anyone who is doing well and is

a celebrity in his or her field, will be the person in

demand for advertisements and brand

endorsements. As icons age and are past their

hey days, they get replaced by the next well-performing

youngster. Parida says that like cine actress Madhuri

Dixit who has made a comeback with advertisements

unlike anyone of her generation, Dhoni can and should

make himself relevant in brands that will reflect and

resonate his value as well.

Though Dhoni’s earnings from endorsements have

come down considerably, it does not reflect poorly on

the cricketer. Pandey and Parida say that this is the time

for Dhoni to reinvent himself. Pandey who has worked

with Dhoni in advertisements finds him a ‘very good

actor’, and a respected individual. “I feel, like Mr

Bachchan, Dhoni should reinvent himself. As his child

grows, you may see Dhoni as a parent in advertisements,”

says Pandey. Perhaps.

Not only did Dhoni pass his baton to the next

captain but it seems the advertisers too have

followed suit. According to an Economic

Times report, soft drinks major PepsiCo has

discontinued its 11 years of association with

35-year-old Dhoni and chosen 28-year-old

Kohli as its brand ambassador


'Aamir Khan, Shah

Rukh Khan and

Salman Khan now

act in only about

one film each

year, and made

money through

advertisements

and television.

This meant that

many people,

even if they had

the money to

spend on a movie

and wanted to go,

often had nothing

available for them

to watch'

A few years ago, Bollywood

asked for help in financing

its movies. At that time

banks were not allowed to give loans to

producers. This was probably because

things like scripts and actors' dates were

not considered to be collateral.

This meant that producers often

raised money from other sources,

and sometimes that involved the

underworld. It was not uncommon,

about 20 years ago, to read reports

of filmstars and producers being in

touch with criminal figures.

That seems to have stopped in

recent times and there are other

ways for filmmakers to raise money

today. This would indicate that

Bollywood should now become a

major industry and grow much faster

than it has ever before. The reality

has been different.

A few weeks ago, the famous

producer Karan Johar was

interviewed on the business of

cinema and he said something that

insiders have known for a long time,

that the number of people watching

movies in India was actually falling

every year.

Some of the reasons for this are

to do with infrastructure. India has

only one screen per lakh of the

population. The United States, the

world's biggest film industry, has 12.

China, which through Hong Kong has

the second biggest film industry, has

about 2.5 screens per lakh.

As cities in India begin tearing

down old cinema halls and build malls,

the number of screens is set to go down even further. The other problem is

that the multiplex screens in new malls are too expensive for most middle

class families.

Tickets are around Rs 250 and taking a family to see a movie regularly would

severely dent household incomes. Service tax and entertainment tax rates are

high and there is not that much scope to reduce the prices of the tickets.

And it is not as if the producers and studios are being greedy. In fact one

major producer, Walt Disney, announced recently that it would exit the

Bollywood movie production business after it made big losses.

Some of the reasons for the decline in movie watchers have to do with

the industry. A friend of mine said to me that the big Bollywood stars did not

make enough movies and there was little to watch.



Aamir Khan, Shah Rukh Khan and Salman Khan now acted in only about

one film each year, and made money through advertisements and television.

This meant that many people, even if they had the money to spend on a

movie and wanted to go, often had nothing available for them to watch.

Bollywood is one of only three major film industries, along with Hollywood

and Hongkong and each of these three has a star system. This means a list

of famous and recognisable actors who can guarantee a film will attract a

certain number of viewers.

The problem has been that Bollywood, though it makes the most movies

(if we include the films also made in the south Indian languages of Tamil,

Telugu, Kannada and Malayalam) per year, has a limited number of big

name stars. Hollywood has many more people who can star in a big movie.

The other issue is that unlike

Hongkong's movies, Bollywood's are

not universal. Why do I say this?

Hongkong's martial arts movies are

quite physical. Their stars like Bruce

Lee and Jackie Chan have become

famous heroes in America and also

in India.

The Hongkong movies, because

they are action-oriented, do not lose

much of their quality when they are

dubbed.

Indian movies are not action

oriented, and the quality of the action

is not as high as in Hongkong movies.

Because there is music and dancing,

the dubbing is not as easy to do and

the loss of quality is much more.

This is the reason why the export

earnings of our movies is much less

than Hollywood and Hongkong

movies. It is mostly people of South

Asian origin which like and watch our

movies.

Even here, the audience may be

narrowing. In Pakistan, there is a big

market for Indian movies in their

multiplexes. For decades this

revenue was lost to Bollywood

because the movies were pirated.

Under former president Pervez

Musharraf, the official screening of

movies was allowed, benefiting both

nations. Today all Bollywood movies

are shown there. Unfortunately, the

current state of ties between the two

countries has been allowed to

deteriorate so much that we should

not be surprised if Musharraf's wise

decision is reversed.

It is because of all of these reasons

that Bollywood is not growing though

it has great potential. It seems

destined, along with the rest of India's

economy, to be showing promise that

it cannot match through delivery.


India maintains a clear leadership

in Transparency International’s

rankings of emerging economy

multinationals, taking 16 of the top 20

slots in a list of 100, in which Chinese

companies take the bottom slots.

Tata group companies take six of

the top 10 slots in a list topped by

Bharti Airtel with Tata Communications

in second position and Mahindra in

the third.

Tata Consultancy Services, Tata

Global Beverages, Tata Motors, Tata

Steel, Wipro, Petronas and Tata

Chemicals complete the top 10

rankings.

All the Indian

companies score

higher in the

organisational

transparency

dimension. This is

because legislation

in India requires

companies to

disclose all their

subsidiaries and the

percentage

ownership



Bharti Airtel and Petronas achieved perfect scores in

corporate reporting, while three other companies,

including one from China, achieved 88 per cent, the

second-best average score.

At the bottom of the ranking, nine companies, eight of

them Chinese, scored zero.

With an average score of 9 per cent, emerging market

multinationals achieved a higher average for country-

by-country reporting than the world’s largest

multinationals, evaluated in the 2014 report at an average

of 6 per cent.

According to Transparency International, state-owned

companies managed a weak but nevertheless higher

score (18 per cent) than privately owned firms (14 per

cent).

Nineteen Indian state-owned companies achieved the

best score of any country in the sample of state-run

entities, with an average of 77 per cent.

Publicly listed emerging market multinationals

performed significantly better than the publicly listed

firms in the Transparency International 2014 report

assessing the world’s largest companies, with an average

score of 59 per cent versus 39 per cent.

Maintaining its 2013 leadership in the country-by-

country reporting, Chile’s Falabella comes in first with a

score of 60 per cent, registering a solid improvement of

10 percentage points over its 2013 score.

At the bottom of the scale, 43 companies scored zero.

These include 26 Chinese firms and seven of the 12

Brazilian companies covered in the report.

Publicly listed companies, with an average score of 12

per cent, outperformed privately owned firms and state-

owned companies. State-owned companies achieved a

paltry score of 0 per cent.

With an average score of 9 per cent, emerging market

multinationals achieved a higher average for country-

by-country reporting than the world’s largest

multinationals evaluated in our 2014 report (which had

an average of 6 per cent).

Emerging market multinationals, however, continue

to fall short of the corporate transparency standards that

are expected of multinationals operating internationally,

says the report.

Publicly-listed companies performed better in all

dimensions than state-owned enterprises and privately

held companies.

The performance of Chinese companies continues to

be disappointing overall, but there are a few notable

exceptions, particularly with regard to the disclosure of

anti-corruption programmes.

Chinese entities have different standards of disclosure:

levels of transparency for China-based state-owned parent

companies are lower than those adopted for their publicly-

listed foreign subsidiaries and associated entities.

A solid majority of assessed companies (84/100) state

publicly that they are committed to compliance with the

law, including anti-corruption statutes.

Sixty-seven companies publicly state their zero

tolerance of corruption.

At the other end of the spectrum, only 19 companies

declare that they prohibit facilitation payments.

Business relationships are a weak area of compliance

for emerging market multinationals; only 34 companies

state that their code applies to third parties such as

agents.

Only 10 companies said that both employees and

members of the board of directors have received training

on the company’s anti-corruption policy.

Publicly-listed companies achieve an average score of

56 per cent, well above the average for the sample as a

whole.

Companies in the technology sector achieve the highest

score of all industry sectors, with an average of 74 per

cent. This compares favourably with the 65 per cent

achieved by 35 global telecommunications firms assessed

in a special sectoral report published in 2015.

All the Indian companies score higher in the

organisational transparency dimension. This is because

legislation in India requires companies to disclose all their

subsidiaries and the percentage ownership. Indian

companies also do subsidiary-by-subsidiary financial

reporting, which earns them higher scores on the country-

by-country reporting dimension as well.

As companies that are increasingly operating in the

global marketplace, emerging market companies should

recognise that they have an obligation to demonstrate

more transparency to all their stakeholders, both at home

and abroad. Unlisted companies and state-owned

enterprises are subject to fewer mandatory reporting

requirements. Consequently, their levels of transparency

tend to be lower.


Solar Power House (SPH) is a consolidated smart

solution of DC Inverter circuit & AC Power circuit

placed together under the same roof confined in a

thermally insulated outdoor container. The combined solution

can easily be transported to a Solar Park and generate MW

capacity of Power in no time. Due to the extremely poor

availability of resources at the remote villages where the Solar

Park is usually located, the supply of Sensitive Instruments

like Power Inverter and associated power products and control

instruments and their respective power & control cable

connections are not only a challenge in today’s world but

needs skilled labor and substantial integration time. Due to

this, site integration of control & Instruments becomes a

daunting task in Solar field. Moreover, after completion of

terminal connections of various instruments, each of them

need to be tested to ensure overall equipment performance.

Thus it is highly difficult to get required amount of output at

site within a extremely tight project completion schedule.

Electrotherm having its strong R&D background in Solar

Inverter Transformer and Solar EPC solutions with it’s state

of the art manufacturing facility in Gujarat for Power and

Various other Transformers has taken the initiative to introduce

it’s most reliable & smart substation solution to cater to Solar

Power Generation Industries which help Solar industries to

build Power stations in record time. The solution is just a plug

& play device and best in class design. This robust & high

tech container solutions are easy to ship and commission at

remote site without any dependence on skilled manpower or

equipment suppliers. Each AC & DC container together with

associated auxiliary equipment can handle Power up to 2.5

MW within a smart dimension of L ( 11000

mm ) X B (2800 mm) X H ( 3200 mm). The

DC container accommodates Solar Inverters

of reputed make along with separate

standalone Scada Solution.

The Factory built product is completely

integrated and tested in combination with DC

circuit and the AC circuit before shipment

which is the biggest challenge in any solar

project. It also helps reducing the integration

cost at site and dependency on so many agencies.

There is an add-on advantage attached to it, all the

critical components are pre mapped in the container

solution to make it fail safe and accordingly Alarm

and Trip circuits are designed and signals are wired

up to the scada panels which then send the

hierarchy signal to Central Scada server for

preliminary data management and necessary

proactive actions. With intelligent door devices and

smart communication facility, the Solar Power House

helps customer to know about each container power

output with a time axis while sitting at a remote

distance.

The biggest advantage is that all under one roof

and no connection to be done at site . This is the

most proven and compact solution as against

conventional substation which involves huge cabling

work at site and dependence on so many

agencies.The Single Window solution also extends

up to site commissioning assistance to help

customer commission the Power Plant without any

hurdle. ET Solar Team also offers complete turnkey

solution up to 300 MW single Solar Park.

Contact details;

Electrotherm (India) Ltd.

72, Palodia (via Thaltej)

Ahmedabad – 382 115

Phone : +91 2717 660550

E-mail : [email protected]


Russia has loosened its stance

on the minimum size of cattle

population for dairies to

export milk products from India,

though a near halving of product prices

in the international market has made

export of dairy products from the

country unviable.

Russia has revised its import

protocol allowing exports by dairy co-

operatives like Amul, but on condition

that the dairies collect milk directly

from producers and not from collection

centres.

Russia’s Federal Service for

Veterinary and Phytosanitary

Surveillance (FSVPS), which in April last year was insisting

that dairies should have their captive cattle farms with at

least 1,000 cattle to qualify for exports, has now relented,

but insists that milk should be directly procured from

producers and not from collection centres.

Under the earlier rule only Parag Milk Foods and Shreiber

Dynamix Diaries were the only plants approved by the

FSVPS to export dairy products to Russia.

“The Russian agency for ensuring food quality and

safety, FSVPS, has now signed the protocol and will upload

on its website the names of the dairies that meet the strict

conditions laid down by it to qualify for exports,’’ a Hindu

BusinessLine report quoted a government official as saying.

While Russia is a huge market for dairy products, which

is currently being served by Western countries, including

the European Union, the easing of rules is unlikely to benefit

India at a time when prices of dairy products have nearly

halved, especially in the aftermath of the sanctions imposed

on Russia.

Russia’s annual cheese consumption is estimated at

230,000 tonnes and India has been eyeing a $40-billion

market for food and agricultural items, including dairy

products.

In fact, Amul has trebled its cheese production

capacity to 120,000 tonnes a day from the earlier

40,000 tonnes per day, at an investment of Rs600

crore, with an eye on the Russian market.

Russia dropped the captive farm condition earlier

this year, but retained the clause that exporters must

be collecting milk directly from farms and not from

collection centres, but this too may not help Amul

much.

The Russian agency dropped the requirement based

on a detailed briefing on veterinary inspection processes

followed by dairies to ensure that cows are disease-

free and a inspection carried out by FSVPS.

However, with current price of skimmed milk powder

(SMP) of around Rs350 per kg against international

prices of around Rs180 a kg, hard cheese being quoted

in Indian markets at around Rs400 a kg and Rs200 a kg

abroad and butter sold at $5,000 a tonne here against

less than $3,000 elsewhere, export prospects for milk

products are dim.



Swedish carmaker Volvo Car Corp said it

wil l introduce plug-in hybrids across

relevant products in its portfolio and an all-electric

vehicle in India to address concerns related to rising air

pollution in the country.

“Volvo has the capability of launching its entire range in

plug-in hybrid version. India will look to launch all the plug-

in hybrid variants of the car line portfolio relevant to the

market here, which will be launched globally over the next 4-

5 years,” said Volvo Auto India managing director Tom Von

Bonsdorff.

The company launched XC90 T8 Excellence, the first plug-

in hybrid sports utility vehicle (SUV) in India, priced at Rs1.25

“Volvo has the capability oflaunching its entire range inplug-in hybrid version. Indiawill look to launch all the plug-in hybrid variants of the carline portfolio relevant to themarket here, which will belaunched globally overthe next 4-5 years,”



crore (ex-showroom Delhi). The vehicle comes with radar-

equipped safety features, which include collision warning

with full auto braking, adaptive cruise control with stop-go

function and pedestrian, cyclist and large animal detection.

On full charge, the SUV can cover a distance of up to 40

km. Bonsdorff said the company has already received

orders for 50 units of the XC90 T8 Excellence.

Globally, Volvo has decided to have newer energy

alternatives for all car lines developed on the new common

module architecture (CMA) platform. The company is working

at unveiling an all-electric car, with a range of 350 km, by

2019.

The all-electric vehicle too will find its way to Indian

shores. “Globally, our ambition is to have one million

electrified cars cumulative by 2025. If taxation is favourable

for green cars, India will contribute to this ambition,” said

Bonsdorff.

Volvo Auto India is looking to grow sales by 25 per

cent in 2016 to around 1800 units. The carmaker has

posted this growth despite the slowdown in sales in

the luxury car segment, because of the diesel ban.


Edited, Printed and Published by K.N.Marzook, Published at Kerala Chamber ofCommerce and Industry, Chamber Corner, Shanmugham Road, Cochin,

printed at Sterling Print House, Ernakulam


Pink’, the Amitabh Bachchan-Taapsee starrer is not only

garnering critical acclaim but has also earned acclamation from

the audience. Bachchan, who played the role of a lawyer in

the fi lm, admits to being a l ittle surprised about the

overwhelming response. The megastar was quoted as saying,"

There are difficulties in performing every role. The challenge

is to do justice with the director’s vision. I still get nervous to

act in front of the camera. I feel audience is very smart these

days. We have showed a mirror to the society through this

film". For a film with a reported budget of around Rs 14

crore, Pink already emerged as a superhit.

Japan's recently-selected

representative for the Miss World

beauty pageant this year has

already caused quite a stir on

social media. Priyanka

Yoshikawa, born of Indian

father and a Japanese mother

has been subject to a lot of

criticism for her win as Miss

Japan due to her bi-racial

heritage.Yoshikawa's victory was

reportedly discouraged by

several critics who felt that a

'pure' Japanese should represent

their country at the beauty

pageant, leading to outrage on

social media on racial inequality.

Yoshikawa also said just because

she was proud of her Indian

roots, it did not mean that she

was not Japanese. She was

congratulated on her win by the

Indian Embassy in Tokyo, and

will be representing the country

in Washington this December.

Bollywood actoress Disha Patani, who

will share screen space with Chinese

superstar Jackie Chan in Kung Fu Yoga,

has said she was blessed to be part of the

project. "I feel very lucky and fortunate

to work with a legend like Jackie Chan and

to be part of a film based on an icon like

MS Dhoni at the beginning of my career,"

Disha said. Disha will launch her Bollywood

career with director Neeraj Pandey’s MS

Dhoni: The Untold Story, the biopic of

Indian ODI captain Mahendra Singh Dhoni.

Kung Fu Yoga is a multi-lingual action-

adventure comedy and also stars Amyra

Dastur, Aarif Rahman and Sonu Sood. The

film is a Chinese-Indian co-production and

it will release in cinemas next year.

Kerala Chamber Business News (Monthly) September, 2016 - Price Rs. 25.

RNI No: KERENG/2008/25119 Postal Registration No: KL/EKM/683/2016-18.

Posted at Kochi PSO, Kochi - 682 016 on 30th of every month

· answer to this question is a big no, ... such as integrated refinery expansion project of bpcl...

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