ftapcci 2016/fr 2016 10 19...red hills, hyderabad - 500 004: 23395515 (8 lines) fax : 040-23395525...

Oct 19, 2016 || FAPCCI Review || 3

FTAPCCI

ESTD. 1917 Weekly Journal of the Federation of Andhra Pradesh Chambers of Commerce & Industry

Vol.XVI - No.42 Oct 19, 2016 Rs.15

Contents

PresidentRAVINDRA MODI

Senior Vice-PresidentGOWRA SRINIVAS

Vice-PresidentARUN LUHARUKA

Immediate Past PresidentANIL REDDY VENNAM

Managing Committee

VENKAT JASTIM.S.P. RAMA RAO

MANOJ KUMAR AGARWALARUN KUMAR DUKKIPATI

MEELA JAYADEV ANIL AGARWAL

C.V. ANIRUDH RAOB. P. SINGHAL

K. RAMABRAHMAMA. PRAKASH

ATHUKURI ANJANEYULURAMAKANTH INANI

SHYAM SUNDER AGARWALAVINASH GUPTADr .M. APPAYYA

SURESH KUMAR SINGHALRAJ KUMAR AGRAWAL

PREM CHAND KANKARIAK. BHASKER REDDYGOWRA L. PRASAD

ARVIND KEDIAV.V. SANYASI RAO

PRAKASH CHANDRA GARGSURESH KUMAR JAINABHAY KUMAR JAIN

RADHA KRISHAN AGARWALCHALLA GUNARANJAN

SHYAM SUNDER PASARIDR. K. NARAYANA REDDYJITENDER KUMAR GUPTA

SHIV KUMAR GUPTAR. RAVI KUMAR

RAJENDRA AGARWALKARUNENDRA S. JASTI

UMA GHURKA

Head Office

Federation House, FAPCCI Marg

Red Hills, Hyderabad - 500 004

� : 23395515 (8 Lines)

� Fax : 040-23395525

e-mail : [email protected]

� Website : www.ftapcci.com

The Federation of Andhra Pradesh Chambers of Commerce and Industry

Branch Office

38-5-4, G F-1 Satyavati Apts,

Punnamathota, 1st Lane,

Near Montessori College,

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e-mail : [email protected]

Editor : T. SUJATHA, Dy.Director

Editorial Advisory Board

M. GOPALAKRISHNA, I.A.S. (Retd.)

NITIN K. PAREKH Dr. C.V. NARASIMHA REDDY Member – FAPCCI Director, Dept. of Information & Public Relations, Govt. of AP (Retd.)

The views expressed by the authors in their articles published in this magazine aretheir personal views and do not necessarily reflect the views of FAPCCI.

NEWS

Appeal to all the Members 4

Power News 5

Economy Watch 7

Legal Digest 10

TS gets 31 districts 11

ARTICLES

Why Team Building Is Nonnegotiable for VirtualEmployees 12

National IPR Policy and Innovation 14

It’s a long haul for India’s exports 18

FTAPCCI EVENTS 20

FORTHCOMING EVENT 26

4 || FAPCCI Review || Oct 19, 2016

FTAPCCI

APPEAL TO ALL THE MEMBERS OF THE FEDERATION

Support for the Centenary Celebrations

Ravindra ModiPresident

Gowra SrinivasSr Vice President

Arun LuharukaVice President

Ravindra ModiPresident

FTAPCCI thanks its members for their unstinting support for over a hundred years, in all efforts towards thebetterment of Trade, Commerce and Industry. Today, FTAPCCI is one of the most respected – and perhapsone of the largest – chambers of commerce in the country. We have also started building strong linkages withacademies/universities to become a Knowledge Chamber, embarking towards “SHATHAK SHATHAKPRAGATI”.

FTAPCCI’s Centenary Celebrations were flagged off on July 4, 2016, by the Hon’ble Governor of Telanganaand Andhra Pradesh Shri E.S.L. Narasimhan. To commemorate the centenary, the Hon’ble Governor launchedits FTAPCCI’s Centenary Logo with numeric “100” depicted by wheels, which were extensions of thewheel used in the FTAPCCI Logo. In this event, he also launched FTAPCCI’s new website, featuring onlinemembership enrolment, gateway link for payments, online hall bookings and live video-telecast facility for theseminars & events.

Plans for the Centenary Year include several programs, showcasing Telangana & Andhra Pradesh to keystakeholders; cultural programs; and conferences, seminars, workshops & other knowledge-sharing platforms.The Hon’ble President of India, Shri Pranab Mukherjee, has kindly consented to participate in ourCentenary Celebrations in the month of December. FTAPCCI will cherish the moment and celebrate itevery year as the Annual Day. The Federation also looks forward to events graced by the Chief Ministersof Telangana and Andhra Pradesh. Details will be shared with you separately.

We look forward to your active participation in FTAPCCI’s Annual Day and all other upcomingprograms in the Centenary Year. Communications regarding the upcoming events will be sent to yourmailbox and also shared on the website.

I request to you to help commemorate and celebrate FTAPCCI’s Centenary Year in a befitting manner bymaking a voluntary contribution of an amount equivalent to one year’s membership subscription (or more)towards Centenary Celebrations. Those who wish to contribute more generously are urged to do so.Contributions can be made either in cash or through cheque/demand draft drawn in favour of ‘FTAPCCI”. The contributions will be thankfully acknowledged.

Looking forward to your support and active participation as we celebrate FTAPCCI’s Centenary Year in agrand manner…


FTAPCCI

Hardly any demand for power in country: Coalsecretary Anil Swarup

Expressing concerns over lack of demand for powerin the country, Coal Secretary Anil Swarup todaywondered as to what the government would do with itsambitious 1 billion tonnes of production target for fossilfuel by 2020.

“For me the serious concerns are: Number one, thereis hardly any demand for power. What we will do? Weare planning to produce one billion tonnes of coal by2020. What will I do with that coal,” he said.

“Someone has to look into these issues of how toincrease this demand of power. It is very importantbecause today per capita consumption of energy in Indiais equal to per capita consumption of the US in the late90’s. If that is the pace then the demand has to go up,”the Secretary said.

He further stated that the government is on a sticky-wicket where it doesn’t know what to do with the surpluscoal.

In fact, in the current financial year, there was cut downin coal production so the fossil fuel does not catch fireat the pit heads.

“On 31st of March this year we had a balance of 56million tonnes (MT) as inventory at pitheads and around32 MT at the power plants. People ask me how youmanage this situation of surplus,” Swarup said.

He, however, added: “I say I would rather be in thissituation than what I was a couple of years ago wheneveryone was running around ...to reach out coal tothese power plants. I am glad we are where we are.”

State-owned Coal India (CIL) which amounts for over80 per cent of domestic coal production is eyeing onebillion tonnes of coal production by 2020.

http://energy.economictimes.indiatimes.com/

Social security incomplete without energysecurity: Goyal

Minister of State (Independent Charge) for Power,Coal, New and Renewable Energy and Mines, PiyushGoyal has noted that India has its own developmentalimperatives in the near future; hence it cannot shunthe use of fossil fuels completely from its energy basket.He expressed happiness to see renewable energy

taking centre stage in discussions on power sectorrecently.The Minister noted that it is of primeimportance to achieve the goal of ‘One Nation, OneGrid, One Price’ at the earliest and create a robusttransmission grid network where affordable power isseamlessly available to the common man throughoutthe nation, at one price.

Goyal pointed out that the government, after takingcharge, has made the solar power target five times to100 GW by 2022.

Fossil fuel reserves would crush climate goals:report

Developed oil, gas and coal reserves, if exhausted, areenough to push Earth well past the threshold fordangerous climate change, according to a reportpublished

Fossil fuels from active fields and mines allowed tooperate through their projected lifetimes would punchthrough the two degree Celsius cap for global warminglaid down in the Paris Agreement, said the report, basedon industry data.

The analysis by Oil Change International was releasedthe day after world leaders gathered in New York tospeed the global climate pact, signed by 195 nations inDecember, into force.That is likely to happen beforethe end of the year, UN Secretary-General Ban Ki-moon said yesterday.

As climate change impacts — heat waves, deadlyflooding, storm surges fuelled by rising seas — hitearlier and harder than predicted, pressure has grownto accelerate the transition away from carbon-intensivefossil fuels.

The coal industry has been hit hardest, with moratoriumson new plants put in place this year in China andIndonesia, along with one covering federal land in theUnited States.

The Paris Agreement calls for holding global warmingat “well below” two degrees Celsius (3.6 degreesFahrenheit) compared to pre-Industrial Revolutionlevels, and under 1.5 C (2.7 F) if possible.

Existing reserves of oil and gas alone, even withoutcoal, would be enough to breach the 1.5 C barrier,according to the 60-page report.


FTAPCCI

“If the world is serious about achieving the goals agreedin Paris, governments have to stop the expansion ofthe fossil fuel industry,” said Stephen Kretzmann,executive director of Oil Change International.

Many of 200 climate scientists gathered in Oxford,England this week at a conference on the morestringent climate change goal have said that stayingunder 1.5 C may be out of reach.

The planet has already heated up 1.0 C (1.8 F), andcould see its first year above 1.5 C “within a decade,”said Richard Betts, head of climate impacts researchat the Met Office Hadley Centre in England.

The new analysis compares the projected emissions ofburning fossil fuels from current operations to thecarbon “budget” — the sum total of CO2 that can beemitted without exceeding the 2C limit.

Scientists calculate that budget to be less than 1,000billion tonnes of CO2. Previous studies of these limitshave focused more on the consumption of oil, gas andcoal rather than the potential for supply.

“Once an extraction operation is underway, it createsan incentive to continue so as to recoup investmentand create profits,” Greg Muttitt, lead author of thereport, said. This is how carbon emissions get “lockedin”, he added.

Some of the biggest projects in the pipeline are in theUnited States, Canada, Australia, India, Russia, Qatarand Iran.

For coal — the dirtiest, or most carbon-polluting, of themajor fossil fuels — two countries, Australia and India,are moving forward with large-scale new miningdevelopment.

Biggies to gain most from solar power

Consumers who are not entitled to the AAPgovernment’s 50% subsidy on power bills may benefitin the long run by investing in solar rooftop projects.About 15% of Delhi’s consumers don’t get the subsidyas they consume more than 400 units per month.

According to Delhi Citizen’s Handbook 2016, releasedrecently, the biggest consumers of power will benefitthe most economically from investing in solar rooftopsystems as they have the shortest payback period. Thepayback period of investment is 12 years for 400-unitsystems, 11 years for 600-unit ones and nine years for1,200-unit systems, the report pointed out. The per-unitcost of solar power is Rs 2.98, Rs 2.79 and Rs 2.75 forthese three categories compared to the current discomrates of Rs 4.98, Rs 5.75 and Rs 6.79 per unit. The

Delhi government’s solar policy, approved by the cabinetearlier this year, offers a generation-based incentive(GBI) of Rs 2 per unit to households generating morethan 1,000kWh power per year. But GBIs, the reportsaid, have minimal impact because the cost of procuringsolar panels and other equipment is high. “Given thathouseholds will take around nine to 12 years to recoverthe installation costs, an initial monetary push throughbigger incentive is desirable,” it recommended.

Since households with highest power consumption havethe best economic case to invest in solar rooftopsystems, households with lower power consumptionshould the main target group for the GBI incentive, thereport suggested.

It also recommended that resident welfare associations(RWAs) could assist in pooling money to buy solarpanels for a colony. This can marginally reduce theper-unit cost incurred by households and ease the burdenof the large initial investment. The report also foundthat the financing method—whether the household paysthe entire project cost or takes a loan for 60% of theexpenditure—has no impact on the payback period.

Authors also suggested that developing a portal with astep-by-step guide for installing domestic solar panelsand starting a helpline would be beneficial for theconsumers. The website should also provide a list ofcrucial information such as recognised dealers, costsof obtaining net meters, solar capacity calculators andfinancing options.


FTAPCCI

Steel industry owes Rs 3,00,000 crore to banks

The steel industry has outstanding loans of around Rsthree lakh crore in various banks, thus making the sectorone of the largest contributors to non-performing assets(NPA) in the country.

Steel Minister Birender Singh said in Lok Sabha thatefforts are on by banks and Reserve Bank of India torestructure the loans given to the steel industry so thatthe loans could be recovered. “Yes, it is true that thesteel industry has an outstanding loan of around Rs3,00,000 crore,” he said while responding to Congressmember Jyotiraditya Scindia’s comment that the steelsector was one of the largest contributors to NPA inthe country.

Expressing concern over the prevailing situation in thesteel industry, Singh said the government was makingefforts to revive the industry so that the steel companiesrepay the loans.

The Minister said during Question Hour that China hasproduced 25 to 30 per cent more steel than its domesticconsumption and the country has been trying to exportsteel to India where its demand is growing.

With Chinese steel in the market, the prices have fallen,resulting in the domestic steel producers suffering heavylosses.

To check this situation, the government has imposedMinimum Import Price (MIP) for steel with effect fromFebruary which helped the price again going upward inthe last 2-3 months, Singh said. “However, the globalsteel price continues to be low, which is a matter ofconcern,” he said.

The Minister said the Indian steel industry was currentlypassing through a severe downturn, due to globalovercapacity, resulting in major steel producing countriesselling their products in India at prices often lower thantheir cost of production.

“Consequently, domestic producers have had tosignificantly reduce prices, thereby eroding their profitmargins,” he said.

Representations have been received from IndianChamber of Commerce and Indian Steel Associationto consider working out a suitable package to supportsteel industry, he said.

http://www.thehindubusinessline.com

RBI to be divested of debt management role in 2years

The Centre has unveiled a two-year timeline for settingup an independent Public Debt Management Agency(PDMA) to oversee its borrowing programme.

The Finance Ministry has finalised the blueprint for aninterim arrangement, the Public Debt Management Cell

(PDMC), whichwill be part of theBudget Divisionin theDepartment ofE c o n o m i cAffairs. “Thisi n t e r i marrangement willallow separationof debt

management functions from the Reserve Bank of Indiato the PDMA in a seamless manner without marketdisruptions,” said the Ministry.

Last month, the government constituted the MonetaryPolicy Committee led by the RBI Governor to setinterest rates.

According to the Finance Ministry circular, the PDMCwill at present only have advisory functions to avoid“any conflict” with the RBI’s statutory powers.

To start with, it will plan the Centre’s borrowings,manage the Central government’s liabilities and monitorcash balances. It will also develop an Integrated DebtDatabase system.

The PDMC will have 15 debt managers from theFinance Ministry, the RBI and other units.

The establishment of the PDMA is a long-pendingreform measure that was backed by the FinancialSector Legislative Reforms Commission in its 2013report.

It will help relieve the RBI of its dual and oftenconflicting roles as the banker and manager of theCentre’s borrowing.

http://www.thehindubusinessline.com


FTAPCCI

IIP continues to fall, down 0.7% in August

Industrial production shrank 0.7% in August —recovering from a 2.5% fall in the previous month, butstill worse than a 2% expansion in June — asmanufacturing and mining continued to disappoint,dashing hopes of a rebound yet.

What is really worrisome is that capital goods — agauge for fixed corporate investment — contracted for10 months in a row, and without the 22.2% fall in thissegment, the index of industrial production (IIP) wouldhave risen 2.5% in August.

Interestingly, within the capital goods segment, rubberinsulated cable — which witnessed a massive 86.2%contraction —alone served to shelve slightly over 3percentage points off the IIP. Even consumer non-durables output grew just 0.1%, after witnessingcontraction for nine consecutive months through July,suggesting subdued rural demand.

The marginal growth in the overall consumer goodssegment (it grew 1.1% in August and 0.9% in the April-August period) has also been supported by the consumerdurables sector in recent months, which was reflectedin good auto sales as well. Although the country’sexcise duty collections surged an impressive 48.8%during the April-August period from a year earlier, muchof the rise was attributed to rate hikes.

However, analysts say with the government expectinga record farm harvest this year following good monsoonshowers, rural demand could revive in the comingmonths, brightening prospects of an industrial recovery.

Consumption demand is set to improve appreciably inthe coming months, with the kharif harvest forecast atrecord levels, revised pay and pensions beingimplemented by the Central Government and theimpending festive season,” said Aditi Nayar, senioreconomist at Icra. However, she cautioned that whilethe confluence of such factors should aid higher volume

growth in various consumer goods sectors in the secondhalf of the current fiscal, its impact on the IIP may bepartly blunted by an adverse base effect for consumerdurables.

Some analysts have also cautioned against reading toomuch into the IIP data, based as they are on the oldseries, with 2004-05 as the base year. They expectsome revisions once the new series data, with 2011-12base year, are released.

Mining dropped 5.6% in August, compared with a 0.9%rise in the previous month, thanks to heavy downpoursof rains that affected coal production. Manufacturingcontinued to falter, with a contraction of 0.3% inAugust, compared with a 3.5% fall in the previousmonth.

The massive plunge in insulated cables output was alsoreflected in the index for electric machinery, whichdropped by as much as 49.4% in August, also recordingtenth consecutive month of contraction.

Electricity generation rose just 0.1% in August,compared with 1.6% in the previous month. Analystsblame the financial situation of some discoms and itsimpact on the offtake of power for the lack-lustreperformance of the electricity sector.

Basic goods rose 3.2% in August, while intermediategoods inched up 3.6%, keeping in pace with the growthtrend noticed in the index for six infrastructure industriesthat account for 38% of the IIP. These infrastructuresector grew 3.2% in August, against 3% in the previousmonth.

Jaitley concerned over growingprotectionism

Finance Minister Arun Jaitley on Thursday cautionedthat the spillover of protectionist policies of developedcountries to other parts of the world could be extremelyadverse.

“I do believe that there are trends in the world todaywhich on the surface do indicate that the world isincreasingly moving towards protectionism. Theseworries are real,” said Jaitley at a BRICS Seminar onInvestment Flows, organised jointly by the FinanceMinistry along with the Reserve Bank of India and theSecurities and Exchange Board of India.

The Minister felt that if developed countries persistwith this trend, the spillover impact of those policies onother parts of the world could be extremely adverse.The other example on protectionism which Jaitleymentioned was the tenor of the election debate in theUS.


FTAPCCI

“I think the fears are real because it (the debate) isbecoming increasingly more and more protectionist. Butas a participant in democratic elections my ownexperience has been that some statements are madeduring the elections but the burden of governancesuddenly, subsequently brings about a change,” he said.Jaitley underscored that every significant decision takenby the NDA government is aimed in one direction —to promote economic activity and to make the economymore investment friendly.

“I think the other silver lining seems to be that the Stateshave also become extremely competitive.

“A large number of state governments are alsobecoming increasingly investment friendly and each oftheir proposals is intended to attract investments andmake themselves more and more competitive,” saidJaitley. He said the country has learnt that throughdomestic reforms the impact of a global slowdown canbe neutralised to a large extent.

Budget date likely to be Feb 2

Looking at advancing the date of Budget presentationto February 2 or even earlier, the Finance Ministryyesterday briefed a Parliamentary panel on theproposed change as also the government’s decision tomerge railway budget with general budget. Explainingthe objective behind the proposed budget reforms,sources said, Finance Secretary Ashok Lavasainformed the members of the Parliamentary StandingCommittee on Finance of different aspects of the reformprocess.

As per the practice, the general budget is unveiled inLok Sabha on the last working day of February. Lavasaanswered queries of members about the pros and consof merging the Union and Railway budgets. Somemembers raised queries about the fate of dividendreceived by railways from its PSUs, sources said.Railway Board Chairman is scheduled to brief the panelheaded by former Union Minister and senior Congressleader Veerappa Moily on October 21. As per thesources, Finance Ministry is contemplating to presentthe general budget between January 30 and February2 with a view to completing the whole process by March31.

The ministry said that advancing budget presentationdate assumes significance as the GST would beimplemented from the start of the new financial yearfrom April 1, 2017, they added. There is uncertaintyabout the revenue collection of the central governmentas there could be teething problems in the initial phaseof the Goods and Services Tax (GST) roll out.

The government would need about 8-9 weeks forcompleting the budget process in Parliament. As pergovernment’s plan, the budget could be presented latestby February 2 and then Parliament would go in forrecess around February 10 and meet again aroundMarch 10.

Thereafter, the parliament would have time to discussand pass the Budget and Finance Bill by March 31, thelast day of the financial year.

The Cabinet last month approved the Finance Ministry’sproposal on landmark budgetary reforms relating tomerger of Railway Budget with the general Budgetand the advancement of the date of presentation fromthe last day of February.

The Cabinet has also given its permission to the mergerof the Plan and the Non-Plan classification in theBudget and Accounts.

The presentation of separate Railway budget startedin 1924, and has continues after independence as aconvention rather than under Constitutional provisions.

Without your involvementyou can’t succeed.

With your involvementyou can’t fail

A.P.J. Abdul Kalam

Words of Wisdom


FTAPCCI

LEGALDIGEST


FTAPCCI

Telangana State gets31 districts

Source : DC


FTAPCCI

When asked ”What is your most valuableasset?” almost every leader will say, ”Ourpeople.” At every level, employees are

contributing to success — working with customers,innovating, building products, and more. And while thereare many factors that affect output, the most importantones revolve around engagement and, by extension,camaraderie.

The Relationship Spectrum

In a traditional office environment, in-person interactionmakes it easy for employees to form relationshipsnaturally, across all parts of the relationship spectrum.From chatting about weekend plans with “work friends”while making their morning coffees to a casual smileor nod to that person whose name you’ve forgotten,they may vary in significance. All, however, areimportant parts of the workplace experience and senseof camaraderie.

Consciously or otherwise, companies are invested allthe time in strengthening relationships — holiday parties,philanthropy, intramural sports, and even the ping-pongtable are all opportunities for employees to interact andbuild connections around common interests.

Team building for virtual workers is much trickierbecause of the lack of in-person interaction (verbal andnonverbal) that helps people build rapport with theircolleagues and others within the company.

Virtual Teams

Virtual teams are the way of the future. In 2015, Gallupfound that 37 percent of Americans telecommute atleast some of the time. Nearly 70 percent of jobseekers said they’re more interested in companies that

offer remote work options, and 65 percent said the sameabout employee-supported social activities. The demandfor dynamic remote work arrangements is clear.

But you can’t just hire a bunch of virtual workers andcall them teammates. You must help them discovershared interests to build relationships. Withoutcommonality, employees will be less likely to help eachother, build trust, feel comfortable proposing new ideas,and more. Commonality imbues teams with a greatersense of purpose in their jobs, and trust is the mostpowerful way to reduce bureaucracy and increaseinnovation and overall output.

Creating Employee Bonds

How do you build community among employees wholive all over the map? You apply the same principlesyou use when cultivating relationships among in-personteams. The execution is a little different, but theconcepts ring true in both circumstances.

My soon-to-be stepmother recently told me about afive-star general in the military she knew. For theaverage cadet or marine, talking to a five-star generalwould almost be like talking to the president himself.Yet this general took the time to learn about the personallives of his soldiers — their names, their kids’ names,and their interests. This is a powerful way todemonstrate genuine interest in the people working withyou and build relationships.

There are a few ways you can create similar bondsin your virtual organization:

1. Invest in shared in-person experiences.

Why Team Building Is Nonnegotiablefor Virtual Employees

Mark Sawyier


FTAPCCI

Because relationships moveincrementally along the relationshipspectrum, it’s important to invest somemoney in bringing remote teams togetherat a consistent frequency. If you canafford it, fly your employees to a coollocation for an in-person retreat.

Get employees to discover sharedinterests through ice breakers.Encourage them to share stories abouttheir families, hobbies, and travelexperiences with fun virtual activities.Play “Little-Known Facts About Me,” agame in which everyone sharesanonymous trivia about themselves andguesses which statement matches whichteammate. You can also host virtualshow-and-tells (in which people sharephotos and stories unrelated to work) orinformal coffee hours. The time spentbonding will dramatically enhance theironline relationships and collaborativeoutput.

2. Use videoconferencing early andoften.

Digital communication might neverreplace the depth and meaning conveyedthrough in-person communication. Fromtonality and voice to facial expressions,in-person communication conveys a depthof meaning that technology will likely findimpossible to replicate. That’s whybringing people together is hugelyimportant.

However, videoconferencing allowseveryone to put faces to the names theysee in their chats and emails every day.They can also learn their co-workers’facial expressions and communicationstyles, which reduces the potential formisunderstandings. Schedule virtualholiday parties or brainstorming sessionsover video, too.

3. Invest in shared digital experiences.

Leverage communication tools that focus on engagement and buildingrelatedness, not just productivity. There are countless options. Youcould send people items through the mail — perhaps funny pictures ofcompany leaders. You can encourage employees to take pictures ofthe views from wherever they’re working — a library, a coffee shop,or their home office — and share them with the team.

Before national holidays, ask workers to share their plans. If anemployee volunteers, have him tell some of his favorite stories to hisco-workers. Above all, give permission and encourage employees tointeract with each other by sharing content about their lives. Thatpermission can only come from leadership’s recognition of theimportance of building relatedness.

Relationships are built and maintained through thousands of verbaland nonverbal interactions that can be lost through email and instantmessaging. A misinterpretation about the tone of an email can cause adeep rift. Instead of allowing mistrust and negativity to arise, createopportunities for your virtual teams to really connect and build therelationships that are so critical to forming trust and camaraderie.

Source: http://www.humanresourcesiq.com/hr-talent-management/articles/why-team-building-is-nonnegotiable-for-virtual


FTAPCCI

National IPR Policy and Innovation*

Introduction

The Government of India announced its first NationalIntellectual Property Rights Policy (IPR Policy) on 12May 2016. The IPR Policy is the outcome of theprocess that the Government had initiated by setting upthe ‘IPR Think Tank’ (the ‘Think Tank’) in 2014. Thepolicy was finalised after intense debates, discussionsand consultations on the draft National IPR Policy whichthe Think Tank had prepared in December 2014.

Major Features of the IPR Policy

The main objective of the IPR Policy, as reflected inthe Vision and Mission statements, is to create adynamic, vibrant and balanced IPR system in India. Itaims to use the IPR system as a means for stimulatingcreativity and innovation and for promoting advancementin science and technology, arts and culture, traditionalknowledge and biological resources. The Policyvisualises an India where knowledge is the main driverof development. It proposes various measures to realisethese goals - generation of more IPs in India,strengthening of IPR enforcement and adjudicationmechanisms, improving the administration of IPR lawsand encouraging commercialisation of IPs.

Commercialisation of IPs is an important aspect of theIPR Policy. Through conversion of IPs into marketableproducts, IPs would acquire economic value whichwould help the IPR holder to raise funds for furthergeneration of knowledge.

Innovation, the process which converts an idea orinvention into a commercial product, is thus implied inthe Policy. However, it does not specify how IPRs wouldbe used as a means of stimulating innovation. This isparticularly important because the relationship betweenIPRs and innovation is a highly contested one. Thispolicy brief seeks to analyse critically the relationshipbetween innovation and IPRs with a view to understandthe implications of the IPR Policy for India.

Innovation and IPRs

The IPR Policy assumes that ideas protected by IPRsget invariably converted into marketable products andservices and thus IPs acquire financial values.However, mere assigning of IPRs to new ideas neednot result in new products or services. If this strengthof the IPR regime was so critical for promotinginnovation, India should have been flooded withinnovative drugs in the pre-1970 period when thecountry allowed product patents in pharmaceuticals.But India had to wait till the introduction

of the Patents Act, 1970 which allowed only processpatents in pharmaceuticals and that too with a reducedperiod of protection to make modern life saving drugsavailable in the country. While the Patents Act, 1970played a significant role in the emergence of a stronggeneric pharmaceutical industry in India, it was theinnovation ecosystem created in India by theGovernment, public sector pharma industry anduniversities that actually helped innovations to happenin the field of pharmaceuticals.

The Indian Drugs and Pharmaceuticals Ltd. (IDPL)and Hindustan Antibiotics Ltd. (HAL), two public sectorpharma companies in India, obtained medicaltechnologies from foreign countries, internationalorganisations such as WHO and foreign companies.Government encouraged and facilitated the transferof technologies between these two companies. Whenthe technology collaboration agreements these two firmshad with their foreign collaborators prohibited transferof technologies between them, the Government foundsolution by transferring technologists from one companyto the other. When Merck & Co. of US which providedthe technology for streptomycin to HAL objected tothe sharing of the technology with IDPL and the SovietUnion (USSR) strongly objected to the application oftechnology of Merck & Co. in IDPL, the Government

* This Policy Brief is prepared by Dr. Reji K. Joseph ([email protected]), Associate Professor, ISID.The views expressed are of the author and not necessarily of the ISID. The author acknowledges thecomments and suggestions received from Prof. Biswajit Dhar, JNU, and the Policy Brief Advisory Com-mittee of ISID.

Dr. Reji K. Joseph


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appointed a senior technologist of HAL to work inIDPL’s antibiotics plant (Parthasarathy 2007). Thetechnologies developed in these public sector firms gottransferred not only between them but also to the privatesector through movement of people. Dr.Anji Reddy,the founder of Indian’s leading pharma firm Dr. Reddy’sLaboratories, had worked in IDPL. Contribution ofpublic sector companies in the development of humancapital and business development is noteworthy. Theyengaged with universities for development of syllabusto provide specialised training required for pharmasector. They created demand not only for skilled labourbut also for specialised capital and other services forthe development of upstream and downstreambusinesses (Smith 2000). It was this dynamism that ledto the creation of a bulk drug manufacturing industry inHyderabad where the synthetic drug plant of IDPL waslocated (Chaudhuri 2005). Innovation is an outcome ofthe harmonious interplay between a gamut of agenciesand the role of IPR regime in it is still not very clear.

Studies conducted in the United States (US) in the 1980sshowed that patents were effective as a means ofprotecting innovations only in selected sectors such aspharmaceuticals and chemicals1. However, theevidence coming out of late, from advanced countriessuch as the US, shows that proliferation of patents is infact hampering innovation. The Science, Technology,and Economic Policy Board of the National ResearchCouncil of the US noted that “proliferation of upstreampatents on scientific discoveries, especially in biomedicalscience, could impede research”2. The US, whichprobably has the most expansive patent system in theworld, is now facing the threat of lack of innovations incritical areas of medical care—antibiotics. The US Foodand Drug Administration had approved 16 newantibiotics during 1983-87, but it could approve only twonew antibiotics during 2008-2012. The pipeline of newantibiotics steadily declined over the period of last threedecades due to a variety of reasons such as scientificchallenges in discovering and developing new drugs andlow economic returns that antibiotics fetch comparedto drugs in other therapeutic areas such as cancer. It isstriking to note that the US President’s Council ofAdvisors on Science and Technology which dwelt onpossible mechanisms to encourage innovations in theantibiotics area, recommended ‘prizes’ as anincentivising mechanism and not further expansion ofpatent rights3. Thus, as the relationship between IPRsand innovation is not clear, it is not advisable for Indiato emphasise on IPRs as a means of promotinginnovation in the country.

When it comes to the specifics, the IPR policy focusesheavily on protection and enforcement of IPRs.Overemphasis on this dimension of IPRs can adverselyaffect innovation by curtailing the flow of knowledge.Publications are the most important channel for thedissemination of knowledge. The Policy propositionwhich links career advancement and fundingopportunities available to researchers with acquisitionof IPRs will result in the diversion of their energiesinto the acquisition of IPRs rather than using them fordisseminating their knowledge through publications.

Strong IPR protection and enforcement could indeedbecome a liability, if the ecosystem is not conducivefor innovation. A conducive innovation ecosystem iscritical for innovations to happen, as we have seen inthe case of the pharmaceutical sector of India. In theabsence of such an ecosystem, the IPs will remain assuch and the protection and enforcement of IPRs willbecome a financial liability.

Need to Identify the Missing Links in the InnovationEcosystem in India Investment in R&D is an importantindicator for assessing the quality of the innovationecosystem of a country. In a country where theinnovation ecosystem is good, the R&D investment willbe higher. The R&D expenditure in India was 0.9 percent of GDP in the mid-1980s. Even after theintroduction of economic reforms and modification ofintellectual property rights regimes in the country, theshare has not increased. China which had the samelevel of R&D investment in the 1980s and which had apoor record in IP protection increased it to more than 2per cent of GDP by 2013. Brazil also spends 1.21 percent of GDP on R&D. Lack of growth in R&Dinvestment in India could be a pointer to the criticalmissing link in the innovation ecosystem in India.


FTAPCCI

Gross Expenditure (Domestic) on R&D as Percentage of GDP of Selected Countries

Country Ratio (%)Israel 4.21South Korea 4.15Japan 3.47Sweden 3.30Taiwan 2.99Germany 2.85United States 2.73China 2.08Singapore 2.00Brazil 1.21Malaysia 1.07India 0.81

Source: National Science Board, Science and Engineering Indicators 2016, United States.

It is not that India does not have any capability in conducting R&D. If it was so, foreign investors would not havepreferred India as a destination for outsourcing R&D in engineering services as compared to countries like Chinaand Japan which fare much better in terms of overall R&D environment. The Science and Engineering Indicators2016 report4 shows that out of the $11.3 billion invested abroad by majority-owned affiliates of US firms in R&Din ‘professional, scientific and technical services’ and ‘information and communication’ (non-manufacturing),12.9 per cent was invested in India as compared to 6.4 per cent in China and 2.9 per cent in

Japan in 2012. The Global R&D Service Provider Ratings 20155 also shows that India attracted much moreglobal R&D in engineering services as compared to China— India $7.8 billion and China $1.6 billion. If India didnot have reasonably good capabilities, foreign investors would not have preferred India as a destination for doingR&D. This shows that India has some advantages which foreign companies are able to make use in their R&Dnetwork. What then prevents Indian firms from taking advantage of whatever capabilities we have; definitely notthe lack of awareness about IPRs or lack of protection for IPRs. To find the answer, one may have to delve deepinto the innovation ecosystem in the country to identify the missing links. Identification of the missing links andfixing them should, therefore, be the topmost priority.

R&D Abroad by Affiliates of US MNEs (as in 2012, US$Mn.)

Country Gross Total Mfg Services Within Services

Wholesaletrade

Information

(non-mfg)

Professional,scientific &

technical

Canada 2.86 1.70 1.16 d d 0.62Germany 8.03 6.63 1.40 0.52 0.07 0.71UK 5.21 3.17 2.04 0.20 0.22 1.39China 2.01 0.95 1.06 d d 0.72India 2.29 0.66 1.63 d 0.25 1.21Japan 2.31 1.93 0.38 0.05 0.12 0.20

Total 44.98 30.49 14.49 2.51 3.21 8.06incl.othercountries

Share of 5.1 2.1 11.3 7.7 15.0India inTotal (%)Note: ‘d’ means suppressed to avoid disclosure of confidential information.Source: National Science Board, Science and Engineering Indicators 2016, United States.


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Concluding Remarks

While the major thrust of the IPR policy is on IPeducation and enforcement of IPRs, it also makes acase for strengthening India’s innovation system, bothin the formal and informal sectors. However, the strongrelationship between acquisition, protection andenforcement of IPRs and promotion of innovations thatthe architects of the IPR Policy assume, hasincreasingly been challenged.6 Importantly, the IPRPolicy does not propose a road map to fix the missinglinks in the innovation ecosystem, especially the lowspending on R&D. This task is best left to the relevant

ministries and departments dealing with differentsectors. Unless the missing links are identified and fixed,Indian innovators will not be able to build on thecapabilities the country has acquired, and will continueto cede ground to their counterparts in competingcountries. The need of the time is a coordinated strategicintervention by the relevant ministries and departmentsin creating a conducive innovation ecosystem ratherthan giving precedence to protection and promotion ofIPRs.

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In 20 out of the last 21 months, India’s merchandiseexports posted negative growth. Services exports, whichwere earlier doing well have now started to decline —it fell 4.56 per cent (year on year) in July.

With a decline of just 0.3 per cent in August, Indianofficials claim that the export decline has bottomed outand hence it should soon pick up. However, that doesn’tseem a possibility because of the complex interplay ofglobal as well as internal factors that will continue toconstrain India’s exports, going forward.

Global factors

The slowdown in regions such as China, Japan andEU, along with the great commodity crash, will impedethe revival of international trade any time soon. Thatmeans there will be lower demand for imported goodsand services in most parts of the world.

Global trade liberalisation is progressing slow as tradepolicy now has to deal with contentious non-tariff issuessuch as labour and environment, tighter WTO-plus ruleson protection of intellectual property rights, publicprocurement and investment.

The growing sentiment against globalisation and tradein general rules out any serious change on the groundin near term. If that was not enough, Brexit is thenewest worry as the EU accounts for nearly a third ofthe global trade even though its share in global GDP is25 per cent.

To make matters worse, trade elasticity (that measureschange in world trade as a result of change in globalGDP) has gone down from 2 (1980-2011) to 1 (2012-15/16). And it’s likely to remain lower for quite sometime. It is falling both in China and the US — that’sroughly a third of the world economy, pushing downthe overall global trade elasticity.

For instance, the share of imported components inChina’s manufacturing exports has fallen from a peakof 60 per cent in mid-1990s to 35 per cent in 2014because of its policy of import substitution. This changeimplies lower demand for outside exporters. Similarly,

increased production of US shale gas has reduced thedemand for imported crude oil.

Thus, global trade, which on an average grew at doublethe rate of global GDP: 5 per cent versus 2.8 per centor so during 1980-2011, is now growing at either thesame or slower rate as global GDP i.e. sub-3 per cent.According to WTO, world trade is likely to grow at 1.7per cent in compared to world GDP at 3 per cent thisyear.

The share of services (which are mostly produced andconsumed locally rather than traded) in global GDP isincreasing sharply but the increase in services GDP isnot adding much to the global trade. Raghuram Rajanaptly says, ‘as countries become richer, non-tradedservices constitute a greater share of output causingGDP to grow faster than trade.’ Thus, a significantportion of global GDP growth is simply bypassing globaltrade.

Implications for India

Continued global growth slowdown, increasing shareof services in GDP and halving of global trade elasticityfrom 2 to 1 means lower demand for imported productsand services that is bound to adversely affect exportsof countries such as India even if India’s global tradeshare is not significant.

Slowing China will impact India’s exports directly —by limiting exports to China and giving tough competitionto India’s exports in third country markets as Indiacompetes with China in several products starting fromapparel and footwear to steel and chemicals. Indirectly,China, by limiting the growth of commodity exportingnations as well as Asean, Japan and Korea, will limitthe overall demand for Indian exports. OPEC, alongwith Brazil and Russia together, accounts for roughlyone-fourth of India’s merchandised exports.

Moreover, India’s dream of replacing China as theexporter of low cost manufactured goods as envisagedunder PM Modi’s Make in India initiative is going to beseriously challenged by ever-growing competition from

It’s a long haul for India’s exports

A Complex web of global and internal factors will continue to imperilexport growth plans


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LDCs which are likely to have labour cost advantageover India.

India will continue to be under pressure to keep hikingminimum wages despite having lower labour productivitycompared to countries such as Bangladesh and Vietnamin key manufacturing industries.

Further, the EU accounted for 17 per cent ($45 billion)of India’s merchandise exports in FY 2016 and 20 percent of that shipped to UK. Similarly, UK accountedfor half of $24 billion IT exports to the EU. Theseexports are likely to hit by Brexit and its after-effects.

India’s peculiarities

India has a narrow export basket, both in goods andservices. The top 20 product categories account for 80per cent of India’s total goods exports. The export ofservices is even more skewed than goods. Servicessector accounts for roughly 60 per cent of its GDP(and global trade in traded services is growing fasterthan trade in goods), yet India is not able to benefitmuch as it has a narrow services export basket withinformation technology being its main export.

That’s not the only problem though. Over 62 per centof India’s IT export goes to the US alone, and onevertical, BFSI accounts for 40 per cent of total ITexport. Thus, we’re relying too much on one sub-sectorand one market that will complicate matters with DonaldTrump’s open defiance of commitment to global traderules setting the tone of political discourse in the US.

Despite its diverse geography and rich cultural heritage,India has not been able to tap its tourism potential

primarily because of infrastructural bottlenecks, lackof ethical business practice and women safety issues.Most of India’s exports are either commodities or, have‘commodity-like’ nature. For instance, contract exportof labour intensive items such as apparel or foot wear,have no pricing power and hence operate on thinnermargins.

Contrary to popular belief, gimmicks such as keepingrupee undervalued won’t help India’s exports. Rupeedepreciation usually leads to demand for steeperdiscounts from buyers in a sluggish global demandscenario.

Thus, we end up supplying more goods for the sameamount of dollars. It’s important to realise that fasterglobal GDP growth rather than discounts lifts India’sexports as India’s export basket is now more incomeelastic than price elastic.

Though, Modi government is trying to fix tradeinfrastructural bottlenecks, yet lots remains to be done.Obsessed with revenue collection targets, India’sfinance ministry has not shown any urgency inaddressing the problem of inverted duties that continues(and may be, will continue) to constrain India’s exportsby discouraging value addition within the country.

Badly conceived and poorly negotiated trade pacts arenot helping India’s exports either and for India’s badluck they are too difficult to fix once they are concluded.

http://www.thehindubusinessline.com/opinion/indian-exports-are-facing-a-crisis/

article9215934.ece


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FTAPCCI Events

Awareness Programme onIntellectual Property Rights

FTAPCCI, with the support of the Ministryof MSME, Government of India, organizedan “Awareness Programme on IntellectualProperty Rights” at FTAPCCI Auditorium,Federation House on 24th September, 2016

Sri Ravindra Modi, President, FTAPCCI,welcoming the delegates briefed about thenew IPR Policy announced by theGovernment of India, its importance, andrelevance to MSMEs. He stated thatFTAPCCI took up the initiative to createawareness on the intellectual property rightswith special reference to the micro, smalland medium enterprises to enable themface the present challenges of liberalization.He thanked the MSME Department forextending the support in conducting theseprogrammes.

Sri Abhay Kumar Jain, Chairman, ADR &IPR Committee, FTAPCCI in hisIntroductory Remarks stated that theinitiative of creating awareness onprocedures of using IPR is necessary forMSMEs as it helps in protecting their ideasand business strategies.

He said that the technical sessions coveroverview of IPR issues viz. Patents, TradeMarks, Copyrights, Industrial Design andGeographical Indications and asked thedelegates to gain utmost from the speakers.He stated that FTAPCCI is looking forwardto assist MSMEs by creating Facilitationservices in the area of IPR.

In the Technical Sessions

Sri S.L.N. Kumar, Deputy Director, MSMEDevelopment Institute, Hyderabad gave anoverview of the new IPR Policy, withspecial reference to the MSME Sector andthe facilitation services of the Ministry ofMSME. He also gave a detailedpresentation on various MSME schemessuch as CGTMSE, CLCSS, ISO 9000/14000 Reimbursement, SSI-MDA, BarCoding Reimbursement, MSE Cluster

Development programme, Marketing Support/Assistance toMSMEs, National Campaign for Investment in Intellectual Propertyand various liberalization and Globalization challenges faced bythe MSME Sector and need for a national IPR Programme.

Sri K. Varaprasad, Assistant Controller of Patent Designs, Officeof the Controller of Patents & Designs, Chennai, explained to theparticipants - the importance of patenting, patent laws: Procedurefor filing patents (domestic and PCT international patent), relevantsections and rules, patent granting procedure, term of the patentrights , flowchart of patent prosecution, and the enforcement ofrights. He also explained the consequences of the patentinfringement, administrative and civil remedies in case ofinfringement, the cases under which the patent may be revokedand a few related case studies and compulsory licensing of patentsin India.

Smt. B. Lakshmi, Senior Examiner, Trade Marks Office, Chennaielucidated on Trademarks Law, its legal administration, objects,functions and benefits of the trademarks as an IPR Tool, registrationprocedure, and major requirements to register trademarks, onlineand off-line filing of applications procedure, consequences andremedies for infringement and the importance of geographicalindication as a part of the IPR tools.

Prof. V.C. Vivekanandan, Head, N C Banerjee Centre for IPRStudies, NALSAR, Hyderabad spoke extensively on the relevanceof IPR in the transfer of technology with special reference toMSME Sector. He explained the concept very lucidly withnumerous examples. He also emphasized on the legal issuesinvolved in transfer of technologies.

Sri Ashok Ram Kumar, Advocate and Attorney and Head, WordictIPR Legal Services, Hyderabad explained the importance of theCopy Rights Act and it is one of the important tools of IPR and

Sri S.L.N. Kumar, Deputy Director, MSME Development Institute,Hyderabad addressing the seminar


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filing procedures. He also gave a detailed presentation on the step by step procedure of e-filing a copy rightsapplication and the procedure for registration.

At the end of the Sessions, there was an open discussion in which several queries on filing by agents and otherprocedural process of the Patents, Trade Marks, and Copy Rights, including online filing procedures of the participantswere answered by the speakers.

Customs Authorized Economic Operator AEOProgram for Enhanced Trade Facilitation

FTAPCCI jointly with the office ofCustoms, Central Excise and ServiceTax Hyderabad Zone organized aworkshop on Customs AuthorizedEconomic Operator AEO Program forEnhanced Trade Facilitationprincipally for Exporters and Importerson 27th September 2016 at 3pm atFTAPCCI.

Sri Ravindra Modi, President,FTAPCCI in his welcome addressstated that World over trade facilitationis a key Customs initiative and isinstrumental in providing an enablingenvironment for the smooth flow oftrade across the Globe. Central Boardof Excise and Customs (CBEC) hasannounced an ‘Authorised EconomicOperator’ (AEO) programme with aview to provide AEO-certifiedoperators certain preferential treatmentin terms of less Customs examination,relaxed procedural requirements, etc,subject to the operators maintainingprescribed security standards andcompliance requirements.

Sri B.B. Agrawal IRS., PrincipalCommissioner of Customs, Hyderabadin his address stated that the aim of theAEO programme is to enhance securitythrough granting recognition to reliableoperators and encouraging best practiceat all levels in the international supplychain.

Sri S.P. Sahu, IRS., Commissioner –Central Board of Excise and Customs, New Delhi inaugurated the workshopand explained the AEO Scheme.

Salient Features / Benefits of the Scheme:

The prominent features of the new programme (AEO) are:

* Inclusion of Direct Port Delivery of imports to ensure just-in-timeinventory management by manufacturers – clearance from wharfto warehouse;

* Inclusion of Direct Port Entry for factory stuffed containers meantfor export by AEOs;

* Special focus on small and medium scale entities – any entityhandling 25 import or export documents annually can becomepart of this programme;

* Provision of Deferred Payment of duties – delinking duty paymentand Customs clearance;

* Mutual Recognition Agreements with other CustomsAdministrations;

* Faster disbursal of drawback amount;

Fast tracking of refunds and adjudications;

* Extension of facilitation to exports in addition to imports;

* Self-certified copies of FTA / PTA origin related or any othercertificates required for clearance would be accepted;

* Request based on-site inspection /examination;

* Paperless declarations with no supporting documents;

* Recognition by Partner Government Agencies and otherStakeholders as part of this programme.

Sri Ravindra Modi, President, FTAPCCI addressing the seminar


FTAPCCI

Compliance Requirements for Grant of AEOstatus:

1)Anyone involved in the international supply chain thatundertakes Customs related activity in India can applyfor AEO status irrespective of size of the business.Those who are not involved in Customs related workare not eligible e.g. banks, insurance companies,consultants and the like.

2) In order to apply for AEO status the applicant mustbe established in India. The applicant should providewhich may include

* A certificate of registration issued by the Registrarof Companies.

* Details of places/locations where goods are beinghandled, e.g. loading, unloading, storage etc., in thecourse of supply to/from international supply chain.

* Proof that the business has its own accounts.

3)Entities having business activities for at least threefinancial years preceding the date of application.(Thesame can be reduced in deserving cases)

4)Entities should have handled at least 25 documentsi.e. Bills of Entry or Shipping bills during the last financialyear.

5) Entity should not have been issued with show causenotices during last three financial years involving fraud,

forgery, outright smuggling, and clandestine removalof excisable goods or cases where Service Tax hasbeen collected from customers but not deposited to theGovernment.

6) No prosecution proceedings are contemplatedagainst the applicant or its senior management.

7) Entity should have satisfactory system of managingcommercial and, where appropriate, transport records.

8) Entity should be financially solvent during thepreceding three financial years.

9) Entity should have in place appropriate internalcontrols and measures to ensure safety and security ofprocedures, viz., Procedural Security, PremisesSecurity, Cargo Security, Conveyance Security,Personnel Security, Business Partner Security, SecurityTraining and Threat Awareness.

Sri Gowra Srinivas, Sr.Vice-President, FTAPCCI alsoparticipated in the workshop.

Sri M. Srinivas-IRS, Sri. Sunil Jain IRS, SriRavindranath IRS, Sri A.S.R.Kumar IRS,Commissioners of Customs, Central Excise and ServiceTax –Hyderabad I, II, III and IV respectively, andAdditional Commissioners also participated in theworkshop. The presentation was followed by interactionwith the Commissioner-CBEC and PrincipalCommissioner, Customs-Hyderabad.

Sri B.B. Agrawal IRS., Principal Commissioner of Customs, Hyderabad addressing the gathering


FTAPCCI

Buyer Seller Meet CumVendor Development Program

Federation of Telangana and AndhraPradesh Chamber of Commerce andIndustry (FTAPCCI) in associationwith National Small IndustriesCorporation (NSIC) and with thesupport of Vizagapatam Chamber ofCommerce and Industry (VCCI)organized a “Buyer Seller Meet CumVendor Development Program” on30th September, 2016 at HotelDaspalla, Vizag.

Sri Veera Mohan, Hon. Secretary,VCCI, welcomed the delegates andthe Guests and congratulatedFTAPCCI and NSIC for organizingthe Meet at Visakhapatnam for thebenefit of MSME units.

Sri Ravindra Modi, President,FTAPCCI, in his Welcome addresssaid that a strong SME sector is vitalto a buoyant economy, creating jobs,providing the foundation for largecompanies of the future andcontributing to the country’s long termgrowth. In fact, SMEs arefundamental building blocksmanufacturing strength of a country.He expressed his concerns that theevidence of success in nurturingSMEs to effectively fulfill theirimportant future role in generatingemployment opportunities, earning ofexport revenues and strengthening ofindustrial linkages is disappointinglylow. He stated that the purpose of thepublic procurement policy is fulfilledonly when the CPSUs and PSUscomply with the mandatoryprocurement of 20% that gives a bigboost to the demand for the goods andservices of MSEs. But it is noticedthat the PSUs fail to comply with itsighting the example that there are notenough suppliers who can supplyquality goods to their specifications.On the other side, the MSEs complainthat PSUs are not really coming

forward to procure the goods from them and are favoring large industriesonly.

He explained that the program is a small effort to bring the buyers thatare PSUs and the Sellers that are MSEs onto one platform and to providean opportunity to MSEs to understand the requirement of PSUs.

Sri Ravindra Nath, CMD, NSIC, Chief Guest of the program explainedthat NSIC is offering various services to industrial units, particularlyMSME units and urged MSMEs to utilize the services of NSIC and getbenefitted. He said that the opening of Finance Facilitation Centre atNSIC Hyderabad made it a one stop for the requirements of industrialunits – marketing, raw materials supply, technology up gradation, andFinance. He also requested every MSME unit to register with MSMEData portal so that government could formulate suitable policies for thegrowth of the sector.

Smt.Sobhana K.S.Rao, Development Commissioner, Vizag SpecialEconomic Zone, Guest of Honor at the program in her address explainedthe various incentives offered to the units in SEZs. She also said thatMSMEs should focus more on exports and get the benefits of all theincentives offered to the exporters by the Government of India. Sheinvited the entrepreneurs to set up the units in SEZs and avail the specialincentives offered to the under SEX Policy and become more competitive.

Sri Durga Prasad Babu, DGM, Dredging Corporation of India ltd, SriVV.Ravi Kumar, Chief Manager, Hindustan Petroleum CorporationLimited (HPCL) and Sri Prabhakara Rao, National Thermal PowerCorporation (NTPC) Ltd participated in inaugural session. In theTechnical Session, all the three companies- Dredging Corporation ofIndia ltd, Hindustan Petroleum Corporation Limited (HPCL), NationalThermal Power Corporation (NTPC) Ltd have given detailedpresentation about the Tendering System, eligibility criteria, details ofitems that are procured by the respective companies and the method ofprocurement.

Technical Session ended with interactive Q & A session.

Smt. Sujatha, Dy. Director, FTAPCCI presented the vote of Thanksand concluded the event.

Sri Ravindra Nath, CMD, NSIC addressing the gathering


FTAPCCI

Seminar on “e-Commerce”The Federation of Telangana andAndhra Pradesh Chamber ofCommerce and Industry(FTAPCCI) in collaboration withthe Vizagapatam Chamber ofCommerce and Industry (VCCI)conducted Seminar on “e-Commerce” on 1st October at HotelDaspalla, Visakhapatnam. About 90delegates participated in the Seminar.

Sri Ravindra Modi, President,FTAPCCI welcomed the chiefGuest, other dignitaries and delegatesand stated that e-Commerce hasemerged as an engine to India’sgrowth – by fuelling commercethrough a dynamic digital platform.He emphasized that the objective ofthe session is to provide an insightinto all the aspects of an e-Commerce industry to students,entrepreneurs and general public aswell creating awareness amongst theIndustry, Trade and Commerce.

Sri AV Monish Row, President VCCI in his address stated that e-commerce as a catalyst between theIT and other businesses. By e-commerce we are to able to connectand reach across the globe, even toremote places. He concluded bystating that e-commerce and IT havemade life easier by saving time andmoney. He said that FTAPCCI andVCCI collaborated to organize thisseminar at a right time when there’sa dire need of brining awarenessabout the opportunities, challengesand solutions relating to e-Commerce.

Sri Praveen Kumar,IAS., Collector,Visakhapatnam District was ChiefGuest and inaugurated the event. Inhis Inaugural address, he said thatthere are many benefits for bothbuyers and sellers using e-Commerce. The products ofdifferent companies, facilities

qualities and many other aspects can reach to people sitting at home. Heemphasized that e-Commerce is the most efficient way of conductingbusiness; e-Commerce reduces the workload and makes it convenient toconduct business with anybody and at anytime in the world. He alsotalked about growing competition in e-Commerce and suggested to delivertop-notch quality in time to develop the business. He communicated to allthe stakeholders of e-Commerce to follow all the rules and regulation ofthe government. He concluded by saying that as the usage of internetand mobile increase, the scope of e-Commerce would also increase andhence there is a need to look into these e-transactions.

Sri C.V. Atchut Rao, Advisor, Andhra Pradesh Consultative Committeeof & Past-President, FTAPCCI and Smt. Anu Sr Santhanam, ASG,FTAPCCI also participated in the inauguration. Sri Veera Mohan, Hon.Secretary, VCCI presented the vote of thanks. He thanked dignitaries onthe dais and delegates for attending the seminar.

The following topics were taken up by the Speakers.

� E-Commerce, Fulfillment and Logistics & Implications on SMEs byMr. Chandrasekhar Boddu, Director of Technology, Amazon: In hissession, Chrandrasekhar Boddu highlighted the importance of eCommercein India and AP at this juncture. More importantly, he opined that it wasespecially important for small businesses to get onto the eCommercebandwagon.

� E-Regulations – Tax & Legal implications by Mr. Janardhan RaoBelpu, PwC, Director – Mergers & Acquisition - Tax & RegulatoryService : Mr Janardhan Rao touched upon the interesting aspect of howglobal eCommerce giants virtually avoid tax liabilities due to the complicatedmatrix of multi-locational operations. He also educated the audience onhow the Indian Government has been successful in pegging taxes ontothese entities for articles sold in India. This was an evolving topic, withdecisions yet to be tabled, but the writing seemed to be on the wall.

� Manufacturers: Is E-Commerce a Strategy? Or an AdditionalDistribution Channel? & Transformational role of Fintech in E-Commerceby Mr. Shankar Vaddadi, CEO and Founder,

Sri Praveen Kumar,IAS., Collector, Visakhapatnam District lighting the lampin the inaugural sesssion


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i-lend.in : Mr Vaddadi’s session helpedmanufacturers relate to the eCommerceworld and understand how to leverageit. His session on Fintech was a revelationto the audience.

� Contribution of Social Media for E-Commerce and Future Trends by HarishKotra, Cofounder, Fests.info: Thissession took the audience through theissues pertaining to social mediamarketing, its future in India and itsrelevance to eCommerce platforms.

� Leveraging 360 degreecommunication for E-Commerce by Mrs.Anuradha Srinivasan, Former Vice ofPresident, Summer Rain Advertising, a360 degree Brand Advertising Agency:This session challenged the myth thateCommerce platforms could only bepromoted through digital advertising. Thecurrent campaigns by Amazon.in andSnapdeal’s Unbox campaign were usedas case studies.

� How Analytics is changing the of E- Commerce & Crowdfunding:How startups and small businesses can benefit by Mr. AyyappaNagubandi, Co-Founder and CEO - Broadcast Wearables Pvt Ltd:With these two sessions Mr Ayyappa explained to the audience howto measure the performance and how to pre-sell a product.

� Importance of localization in E-Commerce byMr.ManikantaRacharla, CEO, Shoptap: In this session, Mr Manikantademonstrated how visitors to an eCommerce site need to be able to“relate” to what they see there - and how sites that fail to localisecould lose their interest.

Smt. Sujatha, Dy. Director, FTAPCCI presented the vote of Thanksand concluded the event.

The Federation of Telangana and Andhra PradeshChambers of Commerce & Industry (FTAPCCI) inassociation with ECGC has organized a seminar onExport Business – Procedures & Documentationon 27th September 2016 at Hotel Jaya ResidencyKakinada.

The objective of the program is to present an over viewof various areas relating to exports- documentationexport finance, Foreign Exchange Management Act &Regulations covering Export Transaction, Schemes ofEXIM Bank and ECGC, Foreign Trade Policy andSchemes for exporters etc.

Eminent speakers and officers from office of JointDirector General of Foreign Trade (DGFT), Banks,Export Credit Guarantee Corporation (ECGC) andCustoms were invited to participate and lead thesessions.

Sri Atchut Rao, Past President FTAPCCI hasdelivered welcome address. He spoke about the Missionand Vision of FTAPCCI in its centenary year. He briefedabout the importance of export business and the growthof Foreign Trade over the years.

The inaugural session was chaired by Shri SadhuNarasimha Reddy IRS Joint Commissioner customsKakinada. He showcased a presentation on CustomsRole in Export Import Duty. His deliverables weresignificant to participants for doing business in Exports.

Shri Alok Divedi, Deputy Director, Director Generalof Foreign Trade (DGFT) Vizag was the Guest ofHonor at the program. He briefed the role of DGFT,Foreign Trade Policy and about Niryat Bandhu Schemeof DGFT.

Sri A V Patel GM DIC, Kakinada has spoke on theemerging business opportunities in East GodavariDistrict and the Government policies for Start-upbusiness

Sri N Kameswara Rao, Branch Manager, ECGC Ltd.has beautifully explained various risk coverage schemesof ECGC to participants.

Sri Sampath Kumar, Trainer & Consultant,International Trade & Banking, Hyderabad hasexplained finance management in export business

Seminar onExport Business - Procedures &Documentation

Sri Ravindra Modi, President, FTAPCCI, Sri AV Monish Row, President VCCIpresenting a memento to Sri Praveen Kumar,IAS., Collector, Visakhapatnam

District


FTAPCCI

FTAPCCI is organizing a one day State LevelWorkshop on “Sustainable Livestock Development &Dairy Management in the State” on 9th November,2016 at Federation House, FTAPCCI, Red Hills,Hyderabad.

Sri Talasani Srinivas Yadav, Hon‘ble Minister for AnimalHusbandry and Dairy Development, Government ofTelangana has been requested to be the Chief Guest and inaugurate the Workshop.

The objective of the Workshop is to familiarize theprospective entrepreneurs who are intended to developlive stock and to start Dairy Industry with all relevantinputs and also to address techno managerial issuesrelated to entire Dairy Industry with a view to enhanceoverall performance.

During the course of deliberations, the following issues will be discussed

* Opportunities and Challenges for Dairy industry

* Role of quality Livestock Management – Impact oneffective production and yielding Management

* Conceptual Framework for Dairy Development andEmerging Economics

* Advanced automated packaging Technology forvalue added Dairy products

* Implementation of FSSAI Regulations Laws and itsimpact on domestic and export market

* Scope for Dairy Development through InstitutionalFinance

State Level Workshop on “Sustainable Livestock Development &Dairy Management”9 November, 2016 at Federation House, FTAPCCI, Hyderabad

* Hygienic Standards in Dairy Industry and Measuresrequired to ensure the standards

* Utilization and value addition of By-products fromDairy industry

* Commercial Outlook of Dairy Farming – Perspectivesand Key Drivers

Further, the Workshop will also provide presentationsby the Machinery Manufacturers of the latesttechnology changes and their application to dairyindustry.

Who can participate: Senior level functionaries ofState Department of Animal Husbandry and DairyDevelopment, Food Processing, Agriculture, DairyIndustries, Milk Unions and State Federations,Veterinary Universities, Equipment and PackagingMachinery Manufacturers, Vaccine and MedicineManufacturers, Cattle Feed Manufacturers, FinancialInstitutions and prospective entrepreneurs who areintending to start Dairy Industry. Participation fee ofRs.500/- (Rupees Five hundred only) (including ServiceTax) per each participant is charged. The fee is to bepaid by way of Cash or Cheque/DD in favour ofFTAPCCI, payable at Hyderabad.

Members are requested to participate in theWorkshop and reap the benefit. Please confirmthe participation.

For further details please contact Sri L. Girijapathi,Asst. Director, FTAPCCI,. Mob: 8008700258,e-mail: [email protected]

PRESS NOTE

The Commissioner of Labour, Telangana, Hyderabad and the competent Authority under the Minimum WagesAct, 1948 has declared the average State Industrial Workers Consumer Price Index Numbers for the halfyear ending June - 2016, as 1271 points (Base year 1982=100 series) for Industrial Workers under Part-I and939 points (Base year 1986=100 series) for Agricultural Workers under Part-II which are applicable for theperiod from 1.10.2016 to 31.03.2017 in various Scheduled Employments notified under the Minimum WagesAct,1948, in the State of Telangana for the purpose of calculation of Variable Dearness Allowance.

Sd/-Ahmad Nadeem

Commissioner of Labour

ftapcci 2016/fr 2016 10 19...red hills, hyderabad - 500 004: 23395515 (8 lines) fax : 040-23395525...

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