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Thursday 20 August 2015

NEWSLETTER, 20-VIII-2015

LISBON, 20th May 2016
Index of this Newsletter



INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC. 


1.1. Centre Committed to Support Steel Industry to Achieve Target of 300 Million Tonne PA Production by 2025: Minister of Steel & Mines Narendra Singh Tomar
1.2. IFC to put $700 million into logistics and transport projects in India
2.1. Women lead India operations of top IT MNCs
2.2. Seven ideas of freedom: I-Day tips from entrepreneurs
3.1. Govt to spend Rs 19,000 cr (-$3 bn) more on social sector over Budget estimates
3.2. Jan Dhan gives fillip to government's mission of financial inclusion as more people sign up
4.1. Canals to harness 1,000 Mw green energy in Punjab
4.2. Companies offer to build 4,981-Mw capacity
5.1. Government announces major highway development program worth US$ 93 billion
5.2. 273 road projects to be awarded in 2015-16
5.3 Govt to construct 1,000-km expressways


– AGRICULTURE, FISHING and RURAL DEVELOPMENT


6.1. Cabinet okays 3% interest subvention extension for crop loans
6.2. Government proposes direct subsidy transfer on fertilizers to farmers
7. Darjeeling's iconic Makaibari tea set to enter Dubai market
8. Centre to launch 'unified' insurance product for farmers
9. Govt plans to convert 101 rivers into national waterways: Amitabh Verma
10.1. Spices Board rolls out subsidy scheme to boost production, export
10.2. India to ship 10,000 tonne of rice bran oil this fiscal


– INDUSTRY, MANUFACTURE


11.1. GM drives out of Halol, to invest $1 bn in Talegaon by 2020
11.2. Exports to power Ford's India growth strategy
12.1. Indian medical device industry can grow to $7 billion by 2016: USIBC
12.2. GE targets to have 100 Made-in-India products by 2020
12.3. Boost for 'Make in India': Foxconn to invest $5 billion in Maharashtra
12.4. Make in India’: Cisco to invest $2 billion this year
13.1. Lupin buys US generics co for $880m
13.2. EU bans 700 generic drugs for manipulation of trials by GVK
14.1. Sony starts local manufacturing in India after a decade of imports
14.2. Micromax to enter developed markets; receives trademark protection for 111 countries
15.1 Foxconn on shopping trip for India partners
15.2. Taiwan electronic manufacturing cluster at Bengaluru
15.3. Taiwanese firms ink MoU for electronic cluster in Gr Noida


– SERVICES (IT, R&D, Tourism, Healthcare, etc.) 


16.1. Boeing open to investing in India, expands research centre
16.2. SpiceJet in talks with Airbus, Boeing to acquire over 100 planes
17.2. Growth in Indian startups has the Valley excited
18. Govt to soon notify special zone for diamond mining companies
19.1. Govt to start centres of excellence in Internet of Things push
19.2. Internet-enabled cars now a $30 bn market in India; companies like Infosys, TCS working with carmakers
20.1. Amazon readies $5 billion chest for bigger play in India, to launch subscription-based ecommerce services
20.2. Walmart India launches 21st cash and carry store in Agra


INDIA & THE WORLD 

India and Russia sign customs pact and aim to boost trade three times over the next decade
21.2. Pipavav Defense, Russian firm in joint venture to revamp Navy submarines
22. PM Narendra Modi eyes UAE’s $800 billion sovereign fund to boost infrastructure spending
23. Poland’s LOT to link Warsaw, Delhi
24.1. Indian exports to witness 10% jump on US GSP
24.2. 'India, US share more than buyer-seller relationship'
25. Modi, Pradhan step on gas over TAPI pipeline


* * *

LISBON, 20th May 2016

NEWSLETTER, 20-V-2016


INDIA


– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, etc.


1.1. Centre Committed to Support Steel Industry to Achieve Target of 300 Million Tonne PA
Production by 2025: Minister of Steel & Mines Narendra Singh Tomar 
Press Information Bureau | Jul. 23, 2015 

SAIL Capacity to Increase to 23 MT from Present 13 MTPA by Jan 2016 

SAIL’s MoU with Railways to Connect Raw Material Sites with Steel Plants

Union Minister for Steel & Mines Inaugurates 2 Day CII Steel Mart 2015 in Chandigarh 

New Delhi: “Our Government is fully committed to address every problem and bottleneck of the ailing steel industry and achieve the target of production of 300 Million Tonne Per Annum (mtpa) by 2025. To attain this target, we have set up a Steel Research & Technology Mission of India (SRTMI) along with industry to promote collaborative research programmes in steel sector so as to enhance their competitiveness, quality, R&D and production capacities. SRTMI will be steel industry’s contribution to ‘Make in India, Made in India’ initiative”, Shri Narendra Singh Tomar, Union Minister for Steel & Mines said while addressing senior industrialists and officials at two day Steel Mart organised by Confederation of Indian Industry CII in Chandigarh today. 

“To bring down costs of steel manufacturers, there is a need to bring down the interest rates, debt and transportation costs for steel industry. Proper rail connectivity of ports with raw material sites and steel plants, especially across north is highly imperative as well, to bring down the logistics costs and save time”, added the Minister. 

There is a critical and urgent need to promote and spread awareness about more and more usage of steel, especially in rural areas so as to boost its demand and hence to save the steel industry. Presently India’s per capita usage is just 59 kg as compared to 700 kg of China and World average of 215 kg. Both industry and Govt need to work together to increase this demand, he added. 

We understand that secondary steel producers are passing through a very tough phase and have some serious concerns. To address these, we have planned to meet both the small and large steel industry players in August and draw the roadmap for future by finding out common solutions, he further said. 

We have also planned Special Purpose Vehicles (SPVs) with four iron ore rich states i.e Karnataka, Jharkhand, Orissa, and Chhattisgarh and would soon set up plants to produce 3 mtpa of steel initially, which would touch 6mtpa very soon, adding 24 mtpa to the national production levels, he added. 

The modernisation of SAIL with an investment of Rs 70, 000 crore has been completed. This would enhance the production capacity to 23 mtpa from present levels of 13 mtpa by January 2016. We have planned to invest another Rs 125 lakh crore for next phase of expansion to achieve the target of 50 mtpa from SAIL alone. Further, SAIL has entered into an MoU with Railways worth Rs 2000 crore for a 240 km rail link from Raipur to Jagdalpur, which is rich in iron ore, he informed. Shri Narendra Singh Tomar said that the Govt is aware that the steel industry is passing through a tough phase presently and assured Govt’s full support to safeguard steel industry’s interests. 

Steel Mart 2015 organised by CII in Chandigarh endeavours to create a platform for both steel producers and consumers to interact and examine in detail the current and future dynamics of steel industry in India and to chalk out a focused action plan for aligning the interests of North India’s Steel industry viz-a-viz global markets. CII urged the Govt to speed up the infrastructure development projects, make steel corridors on the lines of freight corridors and earmark coal blocks for steel manufacturing in India so as to reduce dependence on imports. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


1.2. IFC to put $700 million into logistics and transport projects in India 
Livemint | Aug. 11, 2015 

Mumbai: International Finance Corp. (IFC), part of the World Bank group, plans to invest at least $700 million in existing transport and logistics infrastructure projects in India. IFC has also committed $100 million in equity to a joint venture with infrastructure investment managing firm I Squared Capital to buy operating road assets.

IFC’s total infrastructure portfolio in India with equity and debt is around $2.6 billion and the country constitutes largest portfolio exposure for IFC, Sujoy Bose, IFC’s global head of infrastructure and natural resources, said in an interview. 

“Transport and logistics infrastructure are key to envisaged GDP growth in India. With the government embarking upon reforms to boost GDP, the country needs the right transport infrastructure,” Bose said. “IFC is looking at investing in segments including logistics back-up of e-commerce companies, warehousing companies, operating road assets and container freight stations, besides renewable energy firms.” 

The National Democratic Alliance government has been trying to kick-start the investment cycle since it came to power in May 2014. It has sought to accelerate approvals so that work can start on projects stranded in previous years and has also worked on attracting more investment in manufacturing. Both, analysts say, remain works in progress. The Reserve Bank of India last week retained its economic growth forecast for the current year at 7.6%. 

Bose said IFC has picked up a 20% stake in Cube Highways & Transportation Assets Advisors (P) Ltd, promoted by I Squared Capital. I Squared Capital is a global infrastructure investment manager focused on energy, utilities, and transport in North America, Europe, and selects high-growth economies. 

“IFC has committed $100 million in Cube Highways. As part of this, the company is evaluating multiple toll roads in India,” Bose said. Cube Highways will primarily acquire operating road assets in India. It may also acquire other transportation and logistics assets, such as parking facilities. 

Bose said IFC is a long-term investor in India but focused on the profitability of its portfolio. “IFC is a long-term investor and risk-averse. It may not be able to invest in under-construction and stressed road assets which are up for sale,” said a consultant, who spoke on condition of anonymity. 

According to its website, IFC has invested in 346 companies in India since 1956, providing over $10.3 billion in financing from its own account and $2.9 billion in mobilization from external resources. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


2.1. Women lead India operations of top IT MNCs 
TNN Sujit John, Shilpa Phadnis & Avik Das | Aug. 8, 2015

BENGALURU: Silicon Valley is often criticized as being a boys' club. Men dominate the software industry, and hold most leading positions. The Indian software industry cannot completely avoid that tag. But here, women constitute a higher proportion of the technology workforce than in the Valley, and, extraordinarily, almost all of the biggest IT multinationals in India now have a woman at the helm. 

Accenture on Friday elevated Rekha Menon as its India chairman, and she will lead a workforce of over 1 lakh people, a third of Accenture's global strength. Menon joins a league that already has Vanitha Narayanan, MD of IBM India, Neelam Dhawan, MD of HP India, Aruna Jayanthi, CEO of Capgemini India, Kumud Srinivasan, president of Intel India, and Kirthiga Reddy, MD of Facebook India. 

Narayanan and Jayanthi too lead companies that have over a lakh employees. Dhawan leads a firm estimated, by IT publication DataQuest, to have $6 billion revenue. Biocon CMD Kiran Mazumdar Shaw said she was glad to see MNCs repose such confidence in Indian women professionals. "I welcome Rekha to this exclusive league of women chairpersons in India. I wish Indian companies would recognize women in leadership roles the same way," she said.



Archana Garodia Gupta, president of the FICCI Ladies Organization, noted that women broke the CEO barrier first in the banking sector. "Once women like Chanda Kochhar (ICICI Bank) and Naina Lal Kidwai (HSBC India) became heads of banks, the mental barrier that people had about the capability of women crumbled. Women are now being appointed not as figure heads, but because of their capability as business leaders. My batch in IIM-Ahmedabad earlier had just 10% women. Now it's 30%. This will give more women the option to try and make it to the top," she said. 

Such transitions do not happen naturally. Venkat Shastry, partner in executive search firm Heidrick & Struggles, said leadership outcomes such as this are a result of long/strategic investments companies like Accenture make in promoting innovation in leadership and management practices. 

Capgemini's Jayanthi said it's not so much about being an MNC or being Indian, but rather about how global, open and merit-based the culture of the organization is. "Perhaps MNCs are used to seeing women leaders in their international network, and accept them quite naturally, whereas in other companies it might require a very strong internal change management. There are several Indian organizations too with women in the corner office," she said. 

Work-from-home options, initiatives to encourage women to return to work after breaks (like for having a child), mentorship programmes and hiring policies that identify less-represented segments are some of the instruments used to strengthen diversity. 

Sucharita Eashwar, MD for India at WEConnect International, an organization that promotes women entrepreneurship, said Accenture was a pioneer in gender inclusion in both employee and supply chain policies and practices. 

Intel recently doubled to $4,000 the bonus for any employee referring a woman, a veteran or a minority candidate for a job in the company. Intel's chief diversity officer Rosalind Hudnell told TOI recently that the company last year started a home-to-office programme in India that encourages women who left the profession to come back as interns for six months and see if they fit in. "We were happy with the way they came to speed. We'll see if we can adopt this in other parts of the world," she said. 

(With inputs from Shalina Pillai)


2.2. Seven ideas of freedom: I-Day tips from entrepreneurs 
TNN | Aug. 14, 2015

Free thinkers, free wheelers, individualistic, risk-takers -- these are just some of the words used to describe entrepreneurs. It takes grit and determination to keep a young business afloat and tenacity of spirit to continue in the face of all odds -- a lot like the founders of the nation who took on the British, and triumphed, 68 years ago. 

Ahead of Independence Day, we asked founders of some of the most exciting enterprises about freedom and entrepreneurship, to get a sense of the kind of liberation startup bosses experience. Here's what they had to say:- 

You simply go where your imagination takes you, Swati Gupta, co-founder, Industrybuying 

An engineer from Delhi Institute of Technology, who holds an MBA from Carnegie Mellon, Swati Gupta left her job with a New York-based analytics company and moved to India to found Industrybuying, an online marketplace for industrial supplies, with brother Rahul in 2013. 

"Entrepreneurship has given me freedom...

*To imagine an idea/concept/thought without any boundaries and act on it to make it a reality, a process far more satisfying than having a mission defined for you. 
*To develop a complete set of skills, not limited by a role.On any day, one has to be a negotiator, an accountant, a psychologist, a motivator, a salesperson, a six sigma, depending on the situation. 
*From money. When you take the decision to go out on your own, you give up the lure of the pay-check and discover you can live on a lot less, and feel more satisfied, it's liberating. 
*From a fixed schedule.When you are your own boss, you flex the schedule to suit your life, your personality and constraints, and end up creating more value much faster than in an environment where office hours are fixed. 
*From fear. To be successful you have to face uncertainty, failure, obstacles, be fearless.Otherwise, it's not fun. 
*From expectations. When you become an entrepreneur you step off the treadmill of wanting that next promotion, that better job, better paycheck, better career, and so on. You simply go where your imagination takes you" 

Starting up is not for the faint of heart, Sandeep Aggarwal, CEO, Droom 

Sandeep Aggarwal studied at Kurukshetra University and Washington University.He worked at multiple investment banks in the US, and returned to India to start e-commerce portal ShopClues in 2011. He also founded Droom, an online marketplace for used automobiles, last year 

Freedom from a rigid corporate environment is essential. It is also freedom from work politics and all sorts of biases and nepotism. 

"Having worked for 15 years in four Fortune 500 companies in their global headquarters in the US, I realized it does not matter which geography, industry or functional area you work in; there is nothing like building a startup from scratch." 

"On Father's Day in 2011, I earned my freedom when I decided to resign from my close-to-$1-million annual job to launch ShopClues.com. For a nation, freedom comes with lots of responsibilities; for an entrepreneur, freedom comes with responsibilities too because, as an entrepreneur, you are not only responsible for yourself but also for all the people and investors who chose to team up with you.Entrepreneurship is certainly not for the faint of heart, you need to be ready to deal with ambiguity, rejection, highs and lows, fast pace, unstructured environment, and zero patronage" 

You balance responsibility and liberty, Neeraj Jain, CEO, ZOPPER 

Neeraj Jain, an alumnus of Lucknow University and IIM-Ahmedabad, worked with Hughes Software and two other companies before starting his own business advisory and financial consulting firm, Metalogos, with a friend in July 2006. In 2011, he started hyperlocal marketplace Zopper. 

"At one of my earliest jobs, I remember advising my supervising manager about a particular trend that was picking up in the market and suggesting he should deploy some resources with the end-motive of leveraging that trend for our benefit. He did not heed my advice at the time. When six months down the line every competitor was well prepared to take advantage, he blamed the team for being completely incompetent." 

"Being an entrepreneur does rid you of these archetypal superiors and gives you a free rein to operate as per your desires while taking your kind of calculated risk. And yet entrepreneurship, for me, is not synonymous with freedom. For me, entrepreneurship is about responsible liberty which allows one a lot of freedom to indulge in one's passions and explore the limits of one's capabilities while fulfilling one's duties towards the community, towards one's employees and stakeholders.An entrepreneur must strive to maintain a fine balance between responsibility and liberty to fully realize his potential and test how high his dreams can take him" 

It's individuals who shape all of history, Suchi Mukherjee, co-founder, LimeRoad 

Suchi Mukherjee studied at St Stephen's College, Cambridge University and London School of Economics. She worked at Lehman Brothers, eBay and Skype before founding LimeRoad, an online discovery platform for lifestyle products, in 2012. 

"LimeRoad believes in the individual. We believe that individuals, not institutions, shape history. We believe that individuals will transform the Indian lifestyle retail industry as we know it. And we at LimeRoad are going to help them do it. Entrepreneurship is the most powerful way to fulfill one's ultimate potential. It's the one context where you end up pushing yourself the hardest and the farthest to create magic. You remain answerable, not to some boss who got there before you, but to your team members who commit to you, to your shareholders whose money you build on, to your customers, and ultimately to yourself.It's in many ways a lot harder than a day job in a large matrixed company." 

"This wave of entrepreneurship has freed India in many ways from the shackles of crony capitalism and created the space for meritocracy. It's never been a better time to be an Indian, and I would highly recommend every one of my fellow Indians to follow their hearts, and go build something extraordinary. LimeRoad is our endeavour towards the extraordinary -- to create the ultimate discovery platform, where shoppers discover an endless stream of unique products and looks." 

It's also about giving freedom, Yogendra Vasupal, founder, Stayzilla 

In his fourth year of engineering in 2003, Yogendra Vasupal was earning Rs 1 lakh a month by designing websites, and monetizing Google's ad platform. Soon after he graduated, he founded Stayzilla, a marketplace for home stays, lodges, guesthouses, and hotels. 

"Entrepreneurship definitely denotes freedom. I have never been part of the corporate world and always knew I wouldn't be. I needed the freedom to take my own decisions and be on my own. The corporate world with its limited scope would have never suited me. 

With Independence Day round the corner, there is a message I have for the country's youngsters. Entrepreneurship is not only about freedom. Just as freedom comes with responsibility, every entrepreneur has a responsibility towards the country.India is at a stage where anything you take can be made better, be it work style or efficiency. In a sense, the country is experiencing a sort of social revolution. Along with freedom, one is entrusted with responsibility and must make sure one rises to it. 

If I have to give an example, I would start with the simple banalities of a 9-to-5 job. Most corporate jobs have fixed timings for employees. However, startups like ours do not enforce such a system. In our office, people are on their own and we do not mandate timings. Entrepreneurship is not only about having freedom, it is also about giving freedom to your people." 

It's all about who you work with, Azhar Iqubal, Founder, InShorts 

Azhar Iqubal started working on News in Shorts, now rebranded InShorts, in his fourth year at IIT Delhi. InShorts crunches news stories into 60-word items for busy readers. It became successful so quickly that Iqubal dropped out of IIT to focus on the venture. 

"For me, the most important part of being an entrepreneur is having the freedom to decide what I work on and who I work with. We are a 34-member team, and all of the people I work with are my friends. That is something that you don't find outside the startup ecosystem. I don't feel pressured to work with them, I work with the people I like." 

"This freedom has made me enjoy my work. I don't even realize when I end up spending more than 12 hours in office. Even if we need a break, we all go out for a few hours and come back again to work at our own time.With this freedom, everything else becomes secondary. I also get the freedom to make my own decisions, the freedom to design my own office, the freedom to create my own office timings. And this freedom has helped me take decisions more responsibly. I am more conscious of the decisions I take and don't want my company to suffer." 

We need products to solve problems, Richa Kar, founder, Zivame 

A BITS Pilani graduate, Richa Kar worked at Spencer's retail and SAP as a retail consultant, before launching online lingerie venture Zivame in 2011. 

"While building my own startup, I made my own decisions. I worked because I wanted to, not because I was forced to. It allowed me to take decisions faster since I could understand the big picture. I was free from corporate inertia and a lot more agile. I now have the ability to say, "I don't know how it will turn out but let me try it anyway." This would not have been encouraged in the corporate world. When I started Zivame, I didn't answer the `if, why, what' questions before starting up. In my office, everyone has the freedom to express their point of view. No one follows standard corporate protocol. This helps foster creativity. But as an individual, although we may believe we are our own boss, freedom also brings greater responsibility.You don't enjoy unlimited freedom. It comes with constraints.We don't become entrepreneurs to do whatever we want to irrationally. We become entrepreneurs because we are passionate about what we do. We are here to build a product that can solve a problem and that brings in more accountability."


3.1. Govt to spend Rs 19,000 cr (-$3 bn) more on social sector over Budget estimates 
Business Standard | Aug. 03, 2015 

New Delhi: The government has sought parliamentary approval for an extra Rs 18,995 crore social sectors during 2015-16, almost half of the total extra spending asked for over the Budget Estimates (BE). In a supplementary demand for grants, tabled in Parliament last week, the government placed additional expenditure for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), National Food Security Act (NFSA), Swachh Bharat Abhiyan, drinking water scheme, Pradhan Mantri Gram Sadak Yojana (PMGSY), Integrated Child Development Scheme (ICDS) and SABLA. 

The sum asked for these schemes constituted 46.5 per cent of the Rs 40,822 crore that the government wanted for extra expenditure over the BE. The government's expenditure would swell by only Rs 25,495 crore, as the remaining sum would be met by technical transfers and savings. The demand placed in Parliament sought its nod for Rs 7,000 crore increase in spending for MGNREGS , which, if approved, would take the total Budget for the scheme much higher than the 2014-15 Revised Estimate (RE). The increase would raise the allocation under the scheme to Rs 40,700 crore, an increase of 25.40 per cent over Rs 32,456 crore allocated in the 2014-15 (RE). 

The BE of 2015-16 had only a marginally higher sum allocated to the scheme at Rs 33,700 crore compared to RE of 2014-15. 

The increase in spending for MGNREGS could also be on account of the fact that the Centre expects higher demand for work from rural areas because of drought in some parts and pending demands from states. Rural distress is already taking a toll on revival of industrial growth. Industrial production in volume terms rose only 3.3 per cent in April and 2.7 per cent in May. 

Cumulatively, it rose three per cent in the first two months of the current financial year against 4.6 per cent in the corresponding period of last year. Buttressing the point of the impact of rural distress on the Index of Industrial Production (IIP), official data showed the decline in sales of tractors pulled down IIP by 0.17 per cent in May. Similarly, allocation for ICDS was sought to be raised by Rs 3,600 crore that would increasing the outlay to Rs 11,845.6 crore. However, the sum would still be less by almost 28 per cent than the Rs 16,520 crore given in RE of 2014-15. This is so because the finance ministry wanted states to bear the extra burden on Centrally Sponsored Schemes (CSS), as the latter got higher allocation of 42 per cent of divisible tax pool of the Centre - following the recommendation of the 14th Finance Commission (FFC) against 32 per cent earlier. 

Nonetheless, the rise in proposed expenditure for MNREGS and ICDS was higher than promised by finance minister Arun Jaitley in his Budget speech for the current financial year. "I hope to garner some additional resources during the year from tax buoyancy. If I am successful, then over and above the budgetary allocation, I will endeavour to enhance allocations to MGNREGS by Rs 5,000 crore, ICDS by Rs 1,500 crore...." 

Not only MNREGS and ICDS, but the government also sought additional sum for the NFSA to the tune of Rs 4,495 crore. This would take the total provision for the scheme to almost Rs 70,000 crore in 2015-16, which is 11.28 per cent more than the RE for 2014-15. The BE was just Rs 64,919 crore for 2015-16. 

NFSA seeks to provide legal entitlement for subsidised grains to almost 67 per cent of the population. Till date the 11 states have implemented the Act, while another 5-10 are expected to implement the state by the end of this financial year. 

For PMGSY, the additional funding of Rs 1,000 crore, if approved by Parliament, will increase the total budgetary allocation to Rs 7,637.50 crore, around 17 per cent more than the RE. For the Prime Minister's pet Swachh Bharat Mission, the allocation sought would increase the allocation by almost 80 per cent to Rs 5,125 crore in 2015-16, compared to Rs 2,850 crore in the RE of 2014-15. 

A scheme for drinking water and SABLA, a scheme for adolescent girls for self-development and empowerment, would however continue to see less allocation in 2015-16, compared to the previous year's RE (see chart). In fact, there was no allocation made for SABLA, but Rs 400 crore was sought last week, which would still be less than Rs 600 crore allocated last year. 

In total, the government sought to increase the expenditure on these schemes in 2015-16 over the RE of 2014-15, which was pegged lower in BE for the current financial year. The BE for 2015-16 had 8.4 per cent less allocation compared to the RE of the previous year but the additional expenditure sought would raise it by 6.2 per cent over the same comparable period. 

Tax collections indeed showed increase in the first quarter of 2015-16, even though most of it came from excise duty on petroleum. Gross tax revenues rose 17.53 per cent at Rs 2.15 lakh crore in the first quarter of 2015-16 against Rs 1.83 lakh crore in the corresponding period of the previous financial year.

However, due to higher devolution of tax receipts (42 per cent) recommended by the FFC for 2015-16 to 2019-20 compared to 32 per cent in the previous five years, the Centre's net tax receipts rose just over two per cent at Rs 1.01 lakh crore compared to Rs 99,087 crore during this period. 

In fact, it was the main argument of the finance ministry for not increasing much and in some cases reducing the expenditure in these CSS. It had said the states would get much higher untied funds that enabling them to spend in these schemes in the manner they wanted. 

Reetika Khera, associate professor, humanities and social sciences at IIT, Delhi, said, "Any increase in central allocation for social schemes is good as state Budgets for 2015-16 was framed assuming there wouldn't be any change in the funding pattern. But, suddenly the cuts were made after the FFC report was accepted, which states failed to supplement leading to reduction in the entitlements under programmes like ICDS for children." 

Ideally, she said the central allocation to social sector schemes should be more than last year's, but even if it is maintained at last year's then too it is good. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


3.2. Jan Dhan gives fillip to government's mission of financial inclusion as more people sign up 
Economic Times | Jul. 21, 2015 

Mumbai: The government's mission to provide a bank account for every household and social security schemes for the poor is slowly taking root, with more people signing up for them, improving the prospects of achieving financial inclusion for all. 

In addition, the share of bank accounts with a zero balance has fallen to about half of the total under this initiative compared with as much as 76% in October last year. According to data from the Pradhan Mantri Jan-Dhan Yojana website, 16.9 crore accounts were opened as of July 15 across public, private and rural regional banks with a combined balance of Rs 20,288 crore. The share of zero-balance accounts has come down to 50.6%, suggesting that account usage is increasing. 

"The implications are — one, a big push for the government's financial inclusion drive; two, advance the initiative to move towards a cashless economy," said Sugata Bhattacharya, chief economist at Axis Bank. "This will enable the government to implement direct transfers of subvention outlays, thereby reducing the extent of leakages. All of this should increase systemic efficiency adding to the country's growth prospects." There is a two-fold increase in the number of accounts opened from 6.87 crore accounts with a balance of Rs 5,180 crore at the end of October. 

"The Jan-Dhan initiative will slowly encourage the habit of saving," said Ashish Das, a professor at the Indian Institute of Technology Bombay, who steered financial education initiatives by the finance ministry. "The share of zero balance would go down further as the government moves towards complete transfer of subsidy funds into bank accounts, minimising leakages." 

Subsidy for liquefied petroleum gas (LPG), used for cooking, is now credited to the con consumers' bank accounts. Previously, LPG cylinders were be sold at subsidised rates. Three social security schemes — Pradhan Mantri Suraksha Bima Yojana (PMSBJ), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and the Atal Pension Yojana (APY) — have also got subscribers. 

As of July 14, about 2.7 crore people have registered for the Pradhan Mantri Jeevan Jyoti Bima Yojana, which provides life cover of Rs 2 lakh at an annual premium of Rs 330. The general insurance policy, or Pradhan Mantri Suraksha Bima Yojana, which insures accidental death and disability at Rs 12 a year for a cover of Rs2 lakh, has attracted 7.8 crore people, according to government estimates. About 4.7 lakh subscribers have joined the pension scheme. 

"Out of the three schemes, the general insurance policy is doing well under the Jan-Dhan programme because of low premium," said a senior executive of New India Assurance Co. The life insurance policy can be bought by people up to the age of 50 and the accident cover by anyone between 18 and 70 years. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


4.1. Canals to harness 1,000 Mw green energy in Punjab 
Business Standard | Jul. 23, 2015 

Chandigarh: Punjab plans to harness the extensive canal network in the state for generation of an estimated 1,000 Mw of solar power. Punjab Minister of New and Renewable Energy Bikramjit Singh Majithia told Business Standard the state has been allocated 20 Mw of solar power generation by the government under the pilot project, for which a grant of Rs 3 crore per Mw would be provided. The cost of canal top solar power generation is Rs 10 crore per megawatt. Projects worth 5 Mw under the tendering process would be allocated under a build-operate-own (BOO) basis. 

Punjab has a robust 5,000 km of extensive canal network, and the Punjab Energy Development Agency (PEDA) is aggressively mobilising investors to harness solar power. Punjab was also awarded the best performing state by the government of India for renewable capacity building for solar mission. 

The state leapfrogged from 9 Mw in March 2012 to 210 Mw in March 2014, and has a target to generate 541 Mw of solar power by March 2016. The construction of various projects is underway. “Since land cost was a major hiccup for solar power projects, we amended existing policies and offered incentives to lure investors. Solar projects in Punjab are exempted from pollution clearance, CLU charges, entry tax on equipment, registry and stamp duty charges on purchase and lease of land. Projects have been put up at the international border with Pakistan where industrial development is virtually nil. This has not only increased the return on land to farmers of backward areas, but has been backed by state-of-the-art infrastructure,” said Majithia. 

The non-resident Indians (NRIs) from the US and Slovakia, with roots in Punjab, have also invested Rs 655 crore in 91 Mw projects, out of which 42 Mw has already been commissioned. The state has mobilised Rs 4,000 crore of investment in solar energy, and projects worth Rs 1,500 crore have been commissioned. The remaining Rs 2,500 crore would be commissioned by March 2016. 

Essel Renewable Energy Limited, Azure Power, Welspun Solar Punjab Power Limited, Solairedirect Energy India (a French company) are among the 23 investors in solar power generation in the state. While the state has a huge potential for bio mass based power generation due to agrarian economy there is an ample scope for bio mass based power generation. The GOI, according to Majithia, should provide better incentives as the farmers burn the bio mass (wheat straw and paddy husk) that is an economical wastage and adds to global warming. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


4.2. Companies offer to build 4,981-Mw capacity 
Business Standard | Aug. 04, 2015 

New Delhi: The largest tender for solar projects in the country to build 2,000 Mw capacity in Telangana saw aggressive bids from sector majors offering to build as much as 4,981-Mw capacity. The lowest bidder turned out to be Mauritius-based SkyPower South East Asia Investments, which quoted Rs 5.17 a unit for a 50-Mw project. 

SkyPower was the lowest bidder in the 300-Mw solar power project tender floated by Madhya Pradesh last month, taking the price to a historic low of Rs 5.05 a unit. 

In Telangana, it has put four bids of 50 Mw each. US solar major SunEdison bid for the largest tranche of projects, totalling 580 Mw, by putting 26 bids in the range of Rs 5.93-6.23 a unit. 

Delhi-based Acme Power bid for projects totalling 510 Mw. It bid through three separate entities and put 17 bids ranging from Rs 6.21 to Rs 5.7 a unit. Adani Power put six bids for projects totalling 492 Mw with quotes in the range of Rs 6.1 to Rs 6.3 a unit. Marking its debut in the solar space, wind energy major Suzlon Energy put seven bids for projects of 260 Mw. 

The bids by Suzlon were aggressive and touched Rs 5.49 a unit. Another wind sector player, Mytrah Energy, put 18 bids for projects of 350 Mw. "The Telangana bids at the back of the ones received in Madhya Pradesh reaffirm that the new normal price for solar is Rs 5-5.5 per unit. Even more heartening is to see pure wind players such as Suzlon and Mytrah putting aggressive bids for solar projects indicating that solar has arrived," said Rupesh Agarwal, partner, BDO India. 

Sumant Sinha-promoted Renew Power bid for projects totalling 400 Mw for four large-scale projects. 

A leading player in the Indian solar space, the company's bids ranged from Rs 6.44 to Rs 5.67 a unit - with low price for large projects. Bridge To India, a consultancy firm monitoring foreign investment in Indian renewable energy space, said, "Competition remains intense because of increasing appetite of existing players and the entry of many new players. We expect this trend to continue as the sector continues to attract further players and project sizes grow resulting in more efficient procurement." 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


5.1. Government announces major highway development program worth US$ 93 billion 
IBEF | Aug. 03, 2015 

New Delhi: The Government of India has announced highway projects worth US$ 93 billion, which include government flagship National Highways Building Project (NHDP) with total investment of US$ 45 billion over next three years. NHDP envisages development of existing National Highways (NHs) into world-class roads in different phases. It is one of the largest government-led PPP development programmes in the world. 

There are 26,000 kms of NH projects, of which 20,000 kms are NHDP projects. Opportunities for investors include Bharat Mala project of US$ 12 billion for 6,000 kms, scheme for providing connectivity to 123 district headquarters for US$ 15 billion, construction of 350 bridges/Road over bridge (ROBs) in two years for US$ 8 billion, 'Char Dham' connectivity for 2,500 kms in mountainous terrains for US$ 8 billion and a strong network of roads in the North-East and Border areas for US$ 5 billion. 

The government plans to provide incentives like right of way (ROW) for project land being made available to concessionaires free from all encumbrances. The National Highway Authority of India (NHAI) will provide capital grant (Viability Gap Funding) up to 40 per cent of project cost to enhance viability on a case to case basis. The government will also provide 100 per cent tax exemption for five years and 30 per cent relief for next five years, which may be availed over a period of 20 years. 

The government is already facilitating investments through policy initiatives that include use of long-term sources of funds like pension and insurance funds in the sector in consultation with Ministry of Finance and RBI besides encouraging long-term debt re-structuring. Besides, government measures include regulatory clearances to 80 stuck projects and railway clearances for 85 projects with railway over-bridges, golden handshake with developers for 34 projects worth US$ 5.5 billion and fast-track dispute resolution which has resulted in reduction of disputed amount from US$ 2.3 billion to US$ 0.2 billion. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


5.2. 273 road projects to be awarded in 2015-16 
Press Information Bureau | Jul. 28, 2015 

Projects Ready for Awarding 

New Delhi: It is targeted to award 273 road projects covering a length of 12, 900 km (approx.) amounting to about 1,26,700 Crore during 2015-16 under various schemes of the Ministry. The State wise details are as below: 

Target for award of projects during 2015-16


This information was given by Minister of State for Road Transport & Highways, Shri Pon Radhakrishnan in a written reply to a question in the Rajya Sabha today. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


5.3 Govt to construct 1,000-km expressways 
Business Standard | Aug. 11, 2015 

New Delhi: The Union government has approved a plan for construction of around 1,000 km of expressways at an estimated cost of Rs 16.68 crore on a design-build-finance-operate-transfer (DBFOT) mode. Based on the traffic intensity and commercial potential, the project will be prioritised. The corridors approved for the development of expressways include 

Delhi-Chandigarh (249 km), Bengaluru-Chennai (334 km), Delhi-Jaipur (261 km), Vadodara-Mumbai (400 km). In addition to the above, the government will also take up the 135-km Eastern Peripheral Expressway at an estimated cost of Rs 5,763 crore. 

This information was given by Minister of State for Road Transport & Highways Pon Radhakrishnan in a written reply to a question in the Rajya Sabha on Monday. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.



– AGRICULTURE, FISHING & RURAL DEVELOPMENT


6.1. Cabinet okays 3% interest subvention extension for crop loans 
Business Standard | Jul. 22, 2015 

New Delhi: The Cabinet on Tuesday approved a proposal to extend a three per cent interest subvention scheme to banks to ensure farmers get crop loans up to Rs 3 lakh at seven per cent a year interest. An additional subvention of three per cent would be given to those who pay loans on time. 

The Cabinet approved an expenditure of Rs 18,110 crore for FY16 to enable banks to provide three per cent interest subvention on short-term crop loans to those who make timely repayment. Of the total amount sanctioned, Rs 2,332 crore would be provided to Nabard and the remaining to commercial banks. The subvention will be applicable to those farmers who repay their amounts within one year of disbursal and it will be restricted to Rs 3 lakh of short-term crop loans. The subvention would also be applicable for post-harvest loans taken by small and marginal farmers against their negotiable warehouse receipts. 

The Cabinet also approved Rs 374 crore for farmers with Kisan Credit Cards. The subvention would continue to be provided to farmers affected by natural calamities. The scheme was announced in the 2015-16 Union Budget. For 2015-16, the target of agriculture credit has been raised to Rs 8,50,000 crore, from Rs 8,00,000 in 2014-15.

MSIPS extended 
Among other decisions, the Cabinet extended the Modified Special Incentive Package Scheme (MSIPS) by five years and also expanded the scope of the programme to cover 15 new product categories. The decision was taken to promote Make In India and Digital India initiatives. The demand for electronics in India is expected to reach $400 billion by 2020. The electronics sector has the potential to attract $100 billion investment and provide jobs to 28 million people. The 15 new product categories in the MSIPS include smart cards, consumer appliances (washing machines, refrigerators, air conditioners etc), electronic product design, optical fibre and Internet of Things products, among others. The scheme was originally approved by the government in July 2012. 

It provides capital subsidy of 20 per cent in special economic zones (SEZ) or 25 per cent in non-SEZ units engaged in manufacturing of electronics items. The original scheme was for three years. 

Bulk exports of rice bran oil 
The Cabinet Committee on Economic Affairs (CCEA) allowed bulk exports of rice bran oil and removed quantitative restrictions on out-bound shipments of organic edible oils. Although India is a major importer of edible oils, the Centre has allowed bulk exports of rice bran oil to help small rice millers realise better price as demand of this cooking oil remains limited in the domestic market. India imports 10 million tonnes of vegetable oil - largely edible - annually, which is 60 per cent of the country's total demand. Edible oil exports have been prohibited since March 17, 2008. Certain exemptions have been allowed from time to time. 

Central agriculture university 
Ahead of the Bihar elections, the Cabinet gave its nod for the creation of a central agriculture university at Samastipur with an outlay of Rs 295 crore. The Cabinet gave an 'in-principle' approval for reviving the Banana Research Centre at Goraul in Vaishali. 

The decision was taken days before Prime Minister Narendra Modi's visit to the state to launch four new schemes at the 87th foundation day of Indian Council of Agricultural Research to be held at Patna on July 25. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


6.2. Government proposes direct subsidy transfer on fertilizers to farmers 
Press Information Bureau | Jul. 22, 2015 

New Delhi: The government proposes direct fertilizer subsidy transfer to farmers’ bank account. However, a major challenge in operationalizing this scheme lies in identification of beneficiary farmers as in many states the land records are neither accurate nor updated. Therefore, the Department of Fertilizers plans to have a phased approach and prepare a road map for pilot project in select districts to capture the details/identity proof of buyer’s (Aadhaar Number/ Land Details) at retail fertilizer stores in order to build a comprehensive database of beneficiary farmers over a period of time. 

Department of Fertilizers has issued Notification dt. 25.05.2015 whereby it has been made mandatory for all the indigenous producers of urea to produce 100% as Neem Coated Urea (NCU). Since NCU cannot be used for industrial purposes, illegal diversion of subsidized urea to non-agricultural uses would not be possible. By curbing this illegal diversion of Urea for non-agricultural purposes, the Government aims to prevent the subsidy leakages. 

The mechanism put in place to keep prices of P&K fertilizers at reasonable rates is as under: 

(A) It has been made mandatory for the fertilizer companies to submit, the cost data of their fertilizer products from 2012-13 onwards in prescribed format on six monthly basis. The Department has also appointed Cost Accountants/Firms to scrutinize the said cost data to ensure that the prices fixed by the fertilizers companies are reasonable.

(B) It has also been stipulated in the provisions that in cases, where after scrutiny, unreasonableness of MRP is established or where there is no correlation between the cost of production or acquisition and the MRP printed on the bags, the subsidy would be restricted or denied even if the product is otherwise eligible for subsidy under NBS Scheme. In proven case of abuse of subsidy mechanism, the Department of Fertilizers, on the recommendation of Inter-Ministerial Committee may exclude any grade/grades of fertilizers of a particular company or the fertilizer company itself from the NBS Scheme. 

The following steps are being taken by the Government to meet the requirement of fertilizers to the farmers in all State/UTs:- 
  1. The month-wise demand is assessed and projected by the Department of Agriculture & Co-operation Anchor (DAC) in consultation with the State Governments before commencement of each cropping season. 
  2. On the basis of month-wise & State-wise projection given by the DAC, Department of Fertilizers allocates sufficient/adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability through following system: 

  • (i) The movement of all major subsidized fertilizers is being monitored throughout the country by an on-line web based monitoring system(www.urvarak.co.in) also called as Fertilizer Monitoring System (FMS); 
  • (ii) The State Governments are regularly advised to coordinate with manufacturers and importers of fertilizers for streamlining the supplies through timely placement of indents for railway rakes through their state institutional agencies like Markfed etc. 
  • (iii) Regular Weekly Video Conferences is conducted jointly by Department of Agriculture & Cooperation (DAC), Department of Fertilizers (DoF), and Ministry of Railways with State Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State Governments. 
  • (iv) The gap in the demand and domestic production of fertilizer is met through imports. The availability of all the fertilizers in almost all the states is adequate. Department of Fertilizers has issued New Urea Policy 2015 on 25th May, 2015 with twin objectives of maximizing indigenous urea production and promoting energy efficiency in the urea units to reduce the subsidy burden on the Government. 


This information was given by the Minister of State for Chemicals & Fertilizers Shri Hansraj Gangaram Ahir in reply to an Unstarred Question in the Lok Sabha today. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


7. Darjeeling's iconic Makaibari tea set to enter Dubai market 
Economic Times | Jul. 22, 2015 

Kolkata: Darjeeling's Makaibari tea, which fetched a price ofRs 1.11 lakh per kg last year, is poised to enter the Dubai market. The tea company is in talks with Dubai's upmarket luxury food chain Bateel to sell its teas where demand for premium quality tea is rising. 

While coffee is considered the most favoured hot beverage in Dubai, tea sales are fast rising in the Gulf nation, helped by an influx of Arabic expatriates who are escaping countries like Syria, Lebanon and Egypt due to geopolitical tensions in those regions, said industry officials. 

"We are hopeful to clinch a deal with Bateel in a month's time," said Rudra Chatterjee, director, Makaibari Tea Company. Makabiari has also launched its new portal through which buyers can directly source its finest teas from the garden itself. 

"We have received a good response for this initiative," said Chatterjee. Makaibari is also being sold in dutyfree shops in Mumbai's international airport. Makaibari also re-launched its packet tea under the brand name Apoorva for the connoisseurs of premium Darjeeling tea. Makaibari Tea had created a record by booking orders at a record price of $1,850 per kg (Rs 1.11 lakh) last year. The orders had come from tea importers in Japan, the UK and US. "We are hoping for a similar price in the current year as well. 

Last time, the offer came around September, so there's still some time left," Chatterjee said. Makaibari tea estate in Kurseong area produces one lakh kg of tea and is one of the oldest tea estates in the district. Its factory, set up in 1859, is the oldest tea manufacturing unit in the hills. Makaibari Tea was owned by the Banerjee family for four generations. Its present owner, Rajah Banerjee, sold 90% of his stake last year to city-based Luxmi Tea Company. Meanwhile, Darjeeling tea exporters are going through a rough patch as foreign buyers are refusing to compensate them for exchange rate losses. 

About a year ago, the euro was at 80-84 to a rupee, but has slipped to about 69 at present. Though the pricing continues to be same in euro terms, in rupee terms, it means less income for sellers. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


8. Centre to launch 'unified' insurance product for farmers 
IBEF | Jul. 28, 2015 

Mumbai: The Central Government is planning to launch an all-in-one insurance scheme for farmers called the Unified Package Insurance Scheme (Bhartiya Krishi Bima Yojana). The proposed scheme will have various features like crop insurance, health cover, personal accident insurance, live stock insurance, insurance cover for agriculture implements like tractors and pump sets, student safety insurance and life insurance. 

The aim of the scheme is to protect farmers from financial risks, ensure food security, promote crop diversification and enhance growth and competitiveness of agriculture sector. The scheme will be implemented through a multi-agency framework under the guidance and control of Union agriculture & cooperation department, and the states concerned in coordination with various other agencies like commercial banks, cooperative banks and regional rural banks. 

The scheme would be offered through general insurers and will have a one year cover. The policy will protect farmers from losses occurring due to unforeseen events and provide insurance to personal assets of farmers like the dwelling, milch cattle, pump-sets and tractors. It will also provide protection to farmers and their family members in case of accidental death. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


9. Govt plans to convert 101 rivers into national waterways: Amitabh Verma 
Business Standard | Jul. 29, 2015 

New Delhi: Chroniclers of the infrastructure sector believe rail and road transport support came at the cost of inland water transportation in India. This government has renewed attention on this segment. Amitabh Verma, chairman, Inland Waterways Authority of India, talks to Vijay C Roy & Jyoti Mukul, on what’s ahead. 

Edited excerpts: 

How do you plan to develop 101 waterways when even the five declared so far are yet to be fully developed? 

Only five waterways were declared as national waterways in the past 30 years, owing to enormous delays in conducting pre-feasibility and techno-economic feasibility status, difficulties in land acquisition and coordination with state government. To overcome these delays and to accelerate the development of inland water transport, a decision was taken by the government to accord the status of national waterways to navigable water bodies and thereafter take up techno-eco feasibility studies on each. Depending on the outcome of the studies, a suitable development module will be worked out for development of fairways, navigation aids and terminal facilities, etc. 

Based on the data available on navigable waterways, compiled by the ministry of statistics and programme implementation, 101 water bodies with a minimum length of 25 km are proposed to be declared as national waterways. Twelve of these have good potential and we’ve invited tenders for eight, to create terminals and a fairway. For 44 waterways, we are inviting consultants for a feasibility study and engineering design. For the remaining 45, we are exploring a feasibility study. 

Has the sector got enough focus? 
After independence, the focus was on a faster and more modern mode of transport. Waterways were largely neglected. For 63 years, our focus was on agriculture, rail and road bridges, hydro electricity and so on. We obtained power generation and irrigation, agriculture production, road and rail connectivity but damaged the potential of navigation. It was in 1986 when we started looking at waterways and this organisation was set up. Even after that, till 2010, we spent only Rs 1,117 crore on inland waterways, too small an amount. 

Isn’t it difficult and expensive to make waterways navigable and maintain the draft? 
To develop waterways without sufficient vertical and horizontal clearance makes navigation difficult. We have to modify structures, demolish these in some cases. State governments have to be on board. We are looking at a water draft of 2.5-3 metres. We are also looking at the best design and combination of vessels, which can carry a larger load in lesser draft. We have electronic navigation charts in waterways. We also have differential global positioning systems (GPS) installed at national waterways 1 and 2. 

There has been a fall in cargo movement through waterways. Do you see potential for growth in volume? 
Cargo movement on national waterway 1 is around three million tonnes, followed by NW-2 with two mt and NW-3 with one mt. We see a huge potential to be tapped but the need of the hour is promotion. Unlike the National Highways Authority of India (NHAI), which creates infrastructure, here we have to create the infrastructure and promote waterways. A barge costs Rs 8-10 crore. Investing without commitment doesn’t make business sense. 

Are contracts annual or committed? How do you see the potential in the near future? 
Yes, they are committed. Initially, we looked at a public sector enterprise like NTPC, which has a huge amount of coal to transport. They use the railways but there are issues of congestion and non-availability of wagons. NTPC provided a commitment of transportation of three mt a year of imported coal for its Farakka thermal power station for seven years. So, we floated the tenders and gave a commitment to build and maintain the infrastructure by roping in private players. 

Based on the success, IWAI and NTPC last year developed another such project for transportation of three mt coal annually from the Bay of Bengal to the Barh power plant, over 100 km, for at least 10 years. But, upward of Farakka, we are having different issues. We have floated the tender but nobody bid for it, as there were issues related to wharfage, Kolkata port and the Farakka lockgate, which was not modernised. We have to provide a new lockgate. Obviously, the market has its own concerns. Even NTPC wanted a guarantee that the content would be the same as was loaded at the Bay of Bengal but this condition was not there in the Farakka power plant. We are soon going to re-bid the tender for movement of coal before Patna. 

There are 11 more power plants on the Ganga and 10 are at different stages of commissioning. We have 21 power plants, so their imported coal requirement can be handled by the waterways. Once these two experiments become successful, others will come on board. Some might be a bit difficult to handle but cargo for five to six power plants is easy. 

Is there enough cargo for a project to become viable, especially as the cost of maintaining the draft will be high?
 Draft will be maintained by the government. Nowhere in the world has a fairway been developed by a private party. It’s public funding. Besides, there are external benefits. It an environment-friendly mode of transport and the running cost is cheaper than road and rail, except for NW-1 and NW-2 as these are alluvial rivers and need dredging. In NW-3, only minuscule dredging is required. Besides, there are no social costs attached, since the land required is small. More, whatever capacity is being created for rail and road can be used for passenger movement, while the waterways can be used for cargo. 

Where will the funding come from? 
We are looking at enhanced budgetary support and funding from the likes of the World Bank, Asian Development Bank (ADB) and the Japan International Cooperation Agency (JICA). We are also exploring public-private partnerships. 

How far has the proposal moved for special purpose vehicles with state governments? 
About 20 states have shown interest in setting up inland waterways corporations, where the central government would have a stake of 74 per cent and the rest would be with the state government. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


10.1. Spices Board rolls out subsidy scheme to boost production, export 
Business Standard | Jul. 31, 2015 

Kochi: The Spices Board has launched a slew of steps to promote spice cultivation by offering subsidies and sensitize them about the need to undertake post-harvest quality enhancement techniques. The Board will also provide financial assistance to farmers for irrigation, land development, mechanization, replanting, soil conservation and organic farming of various spices. It will also give financial aid to purchase irrigation and farming equipment and tools. 

Spices Board Chairman A Jayathilak said the initiatives are part of the Board’s 12th plan to improve export-oriented production of small cardamom and post-harvest improvement of other spices across spice-growing regions in India. “The eligibility criteria for availing the benefits are based on land held by the grower and is different for each programme,” he pointed out. 

Availability of good quality planting materials of improved varieties for replanting/rejuvenation is the key to improve the productivity of cardamom. High-yielding and disease-free planting materials are to be made available to facilitate replanting. Subsidy at the rate Rs 2 per sucker and seedling for a maximum 10,000 suckers in Karnataka and Rs 2.50 per sucker in Kerala and Tamil Nadu is offered to the growers. According to growers, this would benefit roughly one lakh growers in the three southern states. 

Under the schemes, small cardamom cultivators in Kerala and Tamil Nadu will get up to Rs 70,000 for replanting, while farmers in Karnataka will receive up to Rs 50,000. They will also receive an aid for planting material production. Kerala’s Idukki district is having the largest cardamom plantations across the country and produces about 6,000 tonnes annually. 

For irrigation and land development, the Board will provide financial assistance up to 25 per cent of the actual cost for acquiring pump sets, sprinkler sets, equipment for gravity-fed irrigation system, and up to 50 per cent for water storage structure. The farmers will also get funding up to 25 per cent for soil conservation. Farmers have been facing a difficult situation due to decreasing prices in the last few months. 

Honeybees play an important role in pollination of cardamom flowers. By promoting bee keeping in cardamom plantations, the productivity can be increased and also this will give an additional income to farmers. The Board is providing assistance for the supply five bee boxes per hectare at 50 per cent subsidy, limited to Rs 1,880 per box. 

Besides, the Board will bear 33 per cent of the actual cost (limited to Rs 12, 000) for the construction of 200 cubic metre capacity tanks for rainwater harvesting. They will also get a maximum of Rs 1 lakh in subsidy for purchasing improved cardamom curing devices and 50 per cent subsidy for GAP (Good Agricultural Practices) kits and bee-keeping boxes.

It also provides assistance for post-harvest improvement process of the spices in Gujarat, Rajasthan, Madhya Pradesh, Andhra Pradesh, Telangana, Uttar Pradesh, Bihar, Himachal Pradesh, Maharashtra, Karnataka, Tamil Nadu, Kerala, West Bengal and North-eastern states. 

India exported spices worth Rs 14,899 crore (US$ 2,432.85 million) in 2014-15 as compared to Rs 13,735 crore (US$ 2,267.67 million) a year earlier. In 2014-15, a total of 893,920 tonnes of spices and spice products valued at Rs 14,899.68 crore were exported, registering 9 per cent increase in volume and 8 per cent in rupee terms in value as compared to 8,17,250 tonnes valued at Rs 13,735 crore in FY14. 

Spice parks in Kota, Rae Bareli 

The Spices Board will set up Spices Parks at Kota in Rajasthan and Rae Barely in UP. The Board has already set up Spices Park at Chhindwara in Madhya Pradesh, Puttady in Kerala, Jodhpur in Rajasthan, Guna in Madhya Pradesh, Sivaganga in Tamil Nadu and Guntur in Andhra Pradesh. 

The Rajasthan government has allotted 30 acres at Ramganj Mandi in Kota free of cost to the Board for the purpose. The Park is meant for processing and value addition of seed spices, especially for coriander and cumin. The Board had allotted 14 acres to 12 spices exporters for developing their own processing units. The UP government has allotted 11 acres. It will produce mint and mint products. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


10.2. India to ship 10,000 tonne of rice bran oil this fiscal 
IBEF | Aug. 10, 2015 

New Delhi: India is expecting to increase exports of rice bran oil to 10,000 tonnes this financial year as compared to 2,000 tonnes last year as the government has eased restrictions on its bulk sale. Mr B V Mehta, Executive Director for Solvent Extractors' Association of India (SEA) indicated that strong demand for rice bran oil from countries like Japan and Thailand and was hopeful that new destinations like Australia, New Zealand, US can also be explored for exports of rice bran oil now compared to earlier, when all output was absorbed in the domestic market due to restrictions. 

India has the potential to produce 8.76 million tonnes of rice bran and 1.53 million tonnes of rice bran oil. India was the highest producer of rice bran oil with an output of 0.95 million tonnes in FY 2014-15, followed by China with 0.2 million tonnes and Japan with 80,000 tonnes. 

India also produces the best quality rice bran oil with more than 150 solvent extraction units producing the oil. The total global production of rice bran oil is 1.5 million tonnes this year, out of which India is expected to produce 0.997 million tonne. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.



– INDUSTRY, MANUFACTURE


11.1. GM drives out of Halol, to invest $1 bn in Talegaon by 2020 
Business Standard | Jul. 30, 2015 

New Delhi: General Motors, the world’s second-largest automaker, plans to invest $1 billion in India by 2020. The announcement follows the company’s decision on Tuesday to invest $5 billion in global growth markets like Brazil, China, Mexico and India.

The fresh investment will be used primarily to expand the capacity at the Talegaon plant from 130,000 units a year to 220,000 by 2025. “GM cannot remain a global leader without making a serious investment in expanding presence in growth markets like India,” Chief Executive Mary Barra said. 

The company had invested $1 billion in the country since 1996, when the Halol (Gujarat) plant was set up, but its Indian operations remained marred by losses. India’s eighth-largest automaker on Wednesday also announced its plan to shut its Halol plant and expand capacity at the Talegaon facility in Maharashtra. The Halol unit had earlier faced labour unrest on two occasions — first, in 2010, when workers went on a strike that lasted three days; and second in March 2011, when their strike went on for six weeks. 

A senior official from Maharashtra Industrial Development Corporation told Business Standard the GM CEO was scheduled to meet Chief Minister Devendra Fadnavis on Thursday to make the company’s proposal to expand capacity at its Talegaon plant. The proposed expansion is for exports, for which Talegaon has good infrastructure and ecosystem. 

Maharashtra Industries Minister Subhash Desai said: “GM’s decision to expand its Talegaon site proves Maharashtra is the preferred investment destination for global players.” GM has a market share of 1.8 per cent in India and is the eighth-largest player here. Its announcements follow a meeting of Barra and company president Stefan Jacoby with Prime Minister Narendra Modi in New Delhi. This is Barra’s second visit to India since Modi took charge in May last year. She had last come to India and met Modi in September 2014. Barra said the company was restructuring and consolidating its Indian operations to have a sustainable business. 

She, however, did not specify a timeline by when the company is expecting to turn its Indian operations profitable. The new investments, the company claimed, would create 12,000 new jobs for GM and its suppliers in India. Despite expansion at Talegaon, the company’s India capacity will decline from 280,000 at two plants to 220,000 at one after restructuring. 

Operations at the Halol plant, which has a capacity of 110,000 units a year, will be stopped from the second half of 2016. This plant employs 1,100 workers. Jacoby said the company was working hard to find an alternative solution to Halol. According to the company, Halol’s 1,100 employees will have the option of applying for roles at the Talegaon plant. Temporary workers say contracts of nearly 250 of them have not been renewed this year. However, Nihil Mehta, president, Gujarat wing, Indian National Trade Union Congress (Intuc), says: “Workers at Halol will be paid only their basic wages, void of allowances. This is basically asking them to leave. If someone decides to stay back till June 2016, he or she would either be eased off with a month’s pay or transferred to the company’s Talegaon plant near Pune.” Workers are contemplating legal action. 

As for its India plans, GM said it would launch a completely new product portfolio by 2020 and the oldest vehicle then would be less than three years old. It would produce 10 vehicles locally over the next five years, beginning with the SUV Trailblazer in October this year. It also plans to launch its multipurpose vehicle Spin in early 2017. 

“The Indian market is expected to grow to eight million units by 2025. We want to be part of this growth”, Barra said. GM also aims to export up to 30 per cent of its production from India over the next decade. Last year, it exported just four per cent of its production. It categorically said there was no plan to export Indian products to mature markets like the US. 

Jacoby said the day’s announcement marked the beginning of a new GM in India, adding the company would change its way of doing business here. Growth, however, would not come easy for GM as competition in the multi-player Indian market will further hot up. GM’s operations have been hit by issues like large recalls. Early this month, it announced its biggest recall in India, of 155,000 units of the Spark, Beat and Enjoy, manufactured between 2007 and 2014, to address a potential safety issue related to remote keyless entry accessory. GM had earlier recalled 114,000 units of its sports utility vehicle, Tavera, in July 2013. 

Arvind Saxena, president & managing director of GM’s India operations, said the company had not done a good job in the past. “We are committed to fixing that. We are changing our behaviour”. GM’s sales volume declined sharp 36 per cent in 2014-15, while the industry grew four per cent. Sales also declined in the April-June, by 36 per cent, even as the industry grew over six per cent. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


11.2. Exports to power Ford's India growth strategy 
ToI | Aug. 3, 2015 

NEW DELHI: US car major Ford is targeting to export over 2 lakh cars from India by 2020 as it plans to make the country a hub for compacts, mini sedans and small SUVs. The plan is to export half of the cars it makes in India by that time — at 2.2 lakh vehicles — and sell them across Europe, Latin America and Africa. 

The company, which is in India since around 1995 but has failed to make deeper inroads, is planning products that appeal both to the domestic market as well as key export countries. 

Targeting a larger pool of countries will provide the company benefit of economies of scale and bring down its production costs, making the vehicles highly competitive, India president and MD Nigel Harris has said.
"These would be global B platform vehicles," Harris told TOI as the company now prepares to drive in a new entry sedan — Figo Aspire — into the Indian market. 

"We expect to have a production capacity of 4.4 lakh vehicles by 2020, and of this we expect half of the cars will be sold overseas in markets across Europe, Africa, Middle-East and Asia-Pacific," he said. "An export strategy gives you scale and can help you achieve certain cost targets."



The sub 4-metre Aspire, which will be launched this month, has been designed with a special focus on the needs of Indian customers. But it debuts in one of the most intensely-competitive segment of the market, after the compact cars. Maruti Suzuki's Dzire dominates this category with average monthly sales of around 16,000 units, and other challengers are models such as Honda Amaze, Hyundai Xcent and Tata Zest. Harris said that Ford hopes to break into the segment as it looks at an aggressive pricing while also offering some segment-first features like dual airbags, which will come in as a standard fitment.

The company is hoping to attain the same success with the model that it had managed with the entry of the Figo hatchback in 2010 and the Eco Sport compact SUV in 2013.


12.1. Indian medical device industry can grow to $7 billion by 2016: USIBC 
PTI | Jul. 25, 2015 

NEW YORK: The Indian medical device industry has a potential to grow from current $4.4 billion to $7 billion by 2016, a premier US-India business body has said as it called for a dialogue with the government to address issues of ease of doing business. 

The US-India Business Council (USIBC) also stressed on Friday that there is a need for a separate regulatory framework for medical devices. 

The business body that led a three-day Medical Device Trade Mission to New Delhi and Gandhinagar from July 21 said there are opportunities for collaboration to attract investment and talent to the sector. The Indian medical device industry is currently valued at $4.4 billion, the fourth largest in Asia and the sector has the potential to grow to $ 7 billion by 2016 with a growth rate of 10-15 per cent annually, it said. 

Citing the NDA government's focus on 'Make in India', the USIBC delegation said India had strong potential in developing innovative industries in the medical devices sector. 

"Through this series of fruitful discussions, we have identified opportunities to continue collaborating with the Government of India in support of its priorities to attract investment and talent to the medical device sector," said Maulik Nanavaty, Senior Vice President and President for Neuromodulation at Boston Scientific. 

"India has made considerable strides in developing innovative industries across a number of sectors and maintains strong potential to do the same in medical devices," Nanavaty, who chaired the delegation, said. 

He cited India's engineering talent, experience in IT innovation and the Modi government's 'Make in India' focus to underscore the importance for the government and industry to work toward creating the proper ecosystem for medical device innovation. 

The delegation expressed its commitment to addressing India's most pressing public health challenges and called for further dialogue with the government on issues related to ease of doing business, disease management and the implementation of training programs for medical device regulators. 

The delegation encouraged the government to pass legislation that would provide specific regulations for medical devices, which are currently treated as pharmaceuticals under India's Drug & Cosmetics Act. 

"This will expedite the ongoing creation of research and development and product innovation that medical device companies offer India, leading to faster growth of medical device manufacturing in the country. The time is opportune to fulfil the government's mandate of Make in India and Innovate in India," Nanavaty added. 

USIBC director and Legal Policy Council Amy Hariani said the medical device industry, which forms a critical segment of the healthcare industry, is going through rapid transformation in India and is projected to grow at a higher rate as health insurance becomes more widely available and the country's consumers continue to demand better healthcare services.


12.2. GE targets to have 100 Made-in-India products by 2020 
Business Standard | Jul. 27, 2015

Ahmedabad: Having invested $200 million cumulatively into healthcare in India so far, and launched 26 made in India products, GE Healthcare is betting big on telemedicine in India. The firm plans to launch 74 new products that are developed and manufactured in India by 2020 that would be affordable compared to the conventional products. In a candid chat with Sohini Das, Milan Rao, President and CEO, South Asia of GE Healthcare shares the future outlook and the challenges. 

Edited excerpts: 

You have launched around 26 products under the Make in India banner. What is the plan going forward? 

We recently launched the Revolution ACT, which is the first computed tomography system designed and developed by GE Healthcare in India, these ACTs are manufactured in India for India and the world. This has been developed with an investment of around $20 million with around 75 engineers working on the project and four years of R&D. 

The result is the Revolution ACT is 40 per cent more affordable compared to previous generation four slice CT systems. Not only that it is 52 per cent lighter, consumes 47 per cent less power, and 36 per cent low radiation compared to conventional systems. We have 400,000 square feet of manufacturing space in India and a team of 1600 scientists working on things specific to India and also for the globe. There is scope for future expansion, we have space available. The target is to have 100 such made in India products by 2020 

What could be the tentative investment on developing these new products? 
I would not want to put a figure to it. Each of the products can be dramatically different; there could be products that could be brought about with an investment of around a million dollars, but there could also be a product like a CT that will require $20 million. So, the budget changes depending on what are the products that are brought about at any given time. You could start at a million dollars of investment and it could go up to $18-20 million dollars per product. The cumulative investment that has been done in India so far is about $200 million for healthcare. In India you do not need to invest as much money to develop a product as in many geographies. We are working on six to seven products that can come up this year. Adding 74 products by 2020 is an ambitious target. 

If you can mention some of the pathbreaking products that you have come up with in India? 
Fundamentally, some of the cardiovascular range of products, the maternity and infant care products would be some. The Mac range of products like the Mac 400 (2007) is a battery operated portable ECG system at 70 per cent lower costs than imported similar quality products. The New Mac I, which has the potential to reduce ECG price to as low as Rs 9 and is priced at Rs 25, 000.Then there is the Tejas XR 2000, which is a first of its kind high frequency x-ray system that is upgradable to digital x-ray, and it costs one-third of an imported digital x-ray system. 

The Lullaby range of products, like the Lullaby Baby Warmer, which costs 70 per cent less compared to a similar quality imported product. Affordable care is the prime driver; and making sure that the ruggedness of the product is such that it is able to survive in tough Indian conditions. We work towards at least a 30 per cent cost saver for a product, because I believe that drives affordable care in India. 

Affordable products would do wonders in the rural space. Are you seeing more traction from semi-urban and rural markets. 
Let me put it this way, the real scenario is that rural goes to district, a district goes to a tier-II, which then goes to a tier-I or a metro. It is typically a three to four wrung process of referral, and thereby the tier II and the tier III become very important as they are the first cogs in this hierarchy of providing quality healthcare. If your ability to provide quality healthcare products at affordable levels at this tier-II & III levels that impacts the healthcare outcomes far greater than if you are able to provide it at a metropolitan level. There is a very palpable shift of dependency from metro or tier I areas to tier II and III. It used to be a majority from metros earlier, now we are probably balanced (in terms of share in sale).

Many states are coming up big on telemedicine. Are you planning to come up with products that would have such remote transmitting and archiving technology in-built? 
Absolutely, yes. There are two major things we are working towards. One is how do we make sure that the image storage systems are available to doctors even if they are not available at the location. Part of tele-radiology is the picture archival and communication system (PACS) and the radiology information system (RIS). We are moving towards storage on the cloud so that it becomes ubiquitous. 

The second part is when you have doctors, but they do not have proficiency to handle critical situations like trauma. The concept of a tele-ICU is that you have a central hospital which is connected to smaller hospitals which may be 200 kms away or so. We have a mechanism by which all the parameters of the patient within the ICU are transported to a remote location and high quality video imaging at the remote location. Therefore, a doctor sitting at a command center can view the parameters and view the patient, and two way communication can happen. We are piloting this in many locations. 

What are the challenges to develop affordable and quality healthcare in India. Any plans for tele-medicine in line of PPPs? 
We are already in talks with state governments for telemedicine projects, like a hub-and-spoke model, lets say a PPP for radiology, tele-radiology etc. We run such a project in Gujarat for the last five years and we are actively looking at expanding such collaborations. 

We are talking a lot to the government now through forums, the medical device act itself needs change. One needs to create an ecosystem that would enable Make in India. There needs to be technology sops, R&D sops, motivation for people to manufacture in India, export promotion incentives, so that the companies get a supply chain. Something that has come up in the case of automobile industry, the ancillaries are here, as there has been a stimulus given to the entire industry. We export components and full scale systems to about 70 countries within the GE network. There is not anything specific that encourages people to set up R&D centers here. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


12.3. Boost for 'Make in India': Foxconn to invest $5 billion in Maharashtra 
PTI | Aug. 8, 2015 

MUMBAI: Global electronic manufacturing giant Foxconn has announced it will invest $5 billion over the next five years in Maharashtra, which has given the Taiwan-based company 1,500 acres of land for its plant. 

iPhone maker Foxconn to begin second innings in India 
Foxconn chairman Terry Gou said the facility in Maharashtra will focus on research and development as well as manufacturing, and the company has chosen the state for being a financial centre, availability of quality talent and software-hardware integration facilities. 

Foxconn will look for tie-ups with local partners for its presence in this state, Gou said, while adding that this MoU with the Maharashtra government was different from the already announced JV with the Adani group. 

India's Adani in talks with Foxconn for a JV 
At an event organized to announce the investment and a Memorandum of Understanding in this regard between the company and the state government, Maharashtra chief minister Devendra Fadnavis said Foxconn will be given 1,500 acres of land. 

Foxconn will create direct employment of 50,000 people through this MoU, Fadnavis said.

Foxconn plans to create over million jobs in India by 2020 
Gou said the MoU between Foxconn and the state government for setting up the plant follows two months of active discussions during which he met the chief minister seven times and a team of 60-70 people from Foxconn was working on this.


12.4. Make in India’: Cisco to invest $2 billion this year 
PTI | Jun. 18, 2015 

NEW DELHI: US technology giant Cisco on Thursday said that it is committed towards manufacturing in India and will invest $2 billion in the country this year. 

The company, which pumps in $1.7 billion every year, will invest additional $60 million in India on training and facility expansion. 

"We are investing big in India. We are committing manufacturing in India. We need to skill people here for the jobs. We plan to directly and indirectly invest up to $20 million to train additional 120,000 students by 2020," Cisco Systems chairman and CEO John T Chambers said here. 

'Make in India' drive to boost manufacturing 
Talking about India manufacturing, Chambers said that to accelerate the development of India's electronics manufacturing ecosystem, Cisco will organize a conclave of 75 of its key suppliers in Bengaluru in February, to drive collaboration on product development here. 

"... will start manufacturing in India within two quarters from regulatory issues and tax related corrections are put in place," he said. 

Chambers, however, did not explain regulatory and tax structure-related changes that company expects government should put in place. 

Modi's 'Make in India' campaign launch — who said what 
Cisco's CEO-designate Chuck Robbins said that company invests $1.7 billion every year, which includes $250 million on R&D in India. 

A company spokesperson said that while $20 million investment on training is spread over five years, the $40 million investments on expansion of facility is going on at the moment.


13.1. Lupin buys US generics co for $880m 
TNN Rupali Mukherjee | Jul 24, 2015 

MUMBAI: The country's third-largest drug company Lupin is buying privately-held US generics company GAVIS Pharmaceuticals and Novel Laboratories (Gavis) for $880 million to strengthen its presence in its largest market, the US. It will also give Lupin access to a host of specialty generic drugs and niche products, mainly in dermatology, gastro-intestinal and injectables. Specialty and complex generics is the hottest section of the pharma market globally, commanding steep valuations, with even Big Pharma chasing them. 

At over 9x market capitalization/sales, the deal is the biggest pharma overseas acquisition by a domestic company in recent years. Gavis had sales of $96 million in FY14 and over 250 employees. The deal, which is cash-free and debt-free, widens the company's pipeline in dermatology and controlled substance products. It will be funded by a bridge loan, with Rs 10 crore from existing cash reserves deployed for it.



Justifying the steep valuation, Lupin CEO Vinita Gupta said the "scale and calibre of the Gavis pipeline" needs to viewed, and complex generics are attractive in the US, with even higher multiples. Gavis' capabilities and pipeline are an "excellent complement to Lupin. The acquisition is expected to be accretive to the earnings from the first full year of operations. In addition to the compelling strategic fit, there is a strong cultural fit between Gavis and Lupin's entrepreneurial spirit and values". 

The deal is expected to triple Gavis' revenues by 2018 from $96 million last year. The company currently has 66 ANDA filings pending approvals in the US and 65 products under development. The pending filings have an addressable market value of $9 billion, while it has filed 25 Para IVs and eight first-to-file products, which will give it market exclusivity for some time. 

"The deal significantly boosts Lupin's existing business and growth prospects over the next few years," Gupta added. "It puts us in a tremendous position from the pipeline perspective to capitalize on generics opportunities." 

The deal follows three other acquisitions this year by Lupin aimed at building its presence in Latin America and Russia. It plans to look for more businesses in the specialty generics space in the US, she said. 

The combined company will have a portfolio of 101 in-market products, 164 cumulative filings pending approval and a deep pipeline of products under development for the US. The acquisition creates the fifth largest portfolio of ANDA filings with the US Food and Drug Administration (FDA), addressing a nearly $64-billion market. After the acquisition, Lupin will increase its market share in the US (5.3% market share by prescriptions, IMS Health). 

It would also provide a manufacturing base to Lupin in the US, which will help it to grow its business further and help the company to participate in the US government tender business. Lupin's US growth has been hampered by a slower pace of new generic drug approvals since the US FDA overhauled its generics review process as well as by consolidation between drug distributors there. 

The company has also recently run into regulatory troubles with the FDA expressing concerns about manufacturing processes at its Goa plant last month. However, the company's managing director Nilesh Gupta said none of the concerns were "serious" and the company had responded to the FD A. Sarabjit Nagra of Angel Broking said, "Prima facie, the acquisition looks very steep, coming in at 9.2x market-cap/sales, given the size of the company. Though funding will be not a problem, given that the company has very little debt on the books." Sujay Shetty, pharma leader at PwC India, ?said, "The steep valuations are not surprising given ?the fact that specialty generic pharma is a hot section globally right now, with all recent deals commanding high valuations


13.2. EU bans 700 generic drugs for manipulation of trials by GVK 
PTI | Jul. 25, 2015 

BERLIN: The European Union has banned the marketing of around 700 generic medicines for alleged manipulation of clinical trials conducted by India's pharmaceutical research company GVK Biosciences. 

The largest EU-wide suspension of sales and distribution of generic drugs ordered by the European Commission will come into effect on August 21 and it will be applicable to all 28 member nations, according to Germany's drug regulator, the Federal Institute for Medicines and Medical Products (BfArM). 

Medicines affected by the sales ban will lose their validity for use in the EU from that date and they should no longer be distributed or sold by pharmaceutical companies, wholesale dealers, drugs stores and other outlets, the agency based in Bonn said in a press statement on Thursday. 
Pharmaceutical companies have the possibility to appeal against the suspension of marketing approvals, but it will have no immediate effect and the ban will remain in force, the statement said. 

The commission's decision taken last week is in response to a recommendation by the EU drug regulator European Medicines Agency (EMA) in January that marketing authorisation of these drugs should be suspended as they were based on clinical trial data allegedly manipulated by the Hyderabad- based company. 

EMA's Committee for Medicinal Products for Human Use (CHMP) had examined the marketing authorisation given to over 1,000 generic drugs from EU member nations on the basis of bio-equivalence studies conducted by GVK Bio during the period between 2004 and 2014 after an inspection of the company's facility in Hyderabad by the French Medicines Agency (ANSM) in May, last year showed "systematic manipulation of clinical trial data." 

The inspection revealed "data manipulation of electrocardiograms (ECGs) during the conduct of some studies of generic medicines, which appeared to have taken place over a period of at least five years," London-based EMA said in a statement earlier. 

"Their systematic nature, the extended period of time during which they took place and the number of member of staff involved cast doubt on the integrity of the conduct of the trials at the site generally and on the reliability of data generated," the agency said.


14.1. Sony starts local manufacturing in India after a decade of imports 
TNN Pankaj Doval | Aug. 4, 2015 

NEW DELHI: Sony starts local manufacturing in India after almost a decade of imports and will source televisions from a company in Chennai that is owned by Taiwanese contract manufacturing major Foxconn. 

The company had long been planning to manufacture locally and decided to do it now after the government made it attractive to 'make in India' through a lower duty regime. 

"Sony India has commenced manufacturing of Bravia televisions on original equipment manufacturing partnership with Competition Team Technology (India) Pvt Ltd in Sriperumbudur in Tamil Nadu. In the initial phase, we will start manufacturing two models, both Android TVs," Kenichiro Hibi, MD of Sony in India, told TOI. 
TOI had reported about Sony's local manufacturing plans along with Foxconn in its July 3 edition. 

"India is an important, and a strategic market for Sony and this development underlines our continued commitment to this market as well as our alignment with the government's 'Make in India' programme," Hibi said. 

However, the company — which clocked revenues of Rs 10,600 crore last year — is yet to take a decision on the local manufacturing of mobile phones. 

The company had stopped local manufacturing in 2004 as a relatively-smaller business size in India at that time did not justify a production facility and the company found it more efficient to source from its factories overseas, especially in view of India's free-trade agreements with some of the countries.


14.2. Micromax to enter developed markets; receives trademark protection for 111 countries 
Business Standard | Jul. 21, 2015 

Mumbai: Mobile handset manufacturer Micromax Informatics on Monday secured trademark protection for 111 countries, paving the way for entering new markets. “We can now enter developed countries. They are looking for cost effective solutions,” said Vineet Taneja, chief executive officer of Micromax. The company is working to expand beyond the six countries it sells its smartphones in. 

Recently, Micromax entered Russia. Sources in the company said Micromax was eyeing South Africa, Nigeria and Indonesia. “These three are going to be very important markets because of their young populations,” a person with knowledge of the development told Business Standard. 

Micromax on Monday obtained the 1.25th million international trademark under the Madrid system, a widely accepted filing mechanism for registration of trademarks. The firm, which had an 18 per cent share of the Indian smartphone market last year, posted 60 per cent growth in its mobile devices business. 

It sells phones in India, Russia, Sri Lanka, Bangladesh, Nepal and Myanmar. “Now we expect to grow faster,” Taneja said. “We can be successful both in developed and developing countries because Micromax provides solutions at a lower cost,” Taneja said. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


15.1 Foxconn on shopping trip for India partners 
HT Business | Aug. 05, 2015

New Delhi: Taiwan’s billionaire businessman and Foxconn founder Terry Gou and his 30-member delegation met Union communications minister Ravi Shankar Prasad and secretaries of six ministries on Tuesday to thrash out an investment proposal that sources said could be worth $20 billion (128,000 crore). “Based on the discussion a final announcement along with Prime Minister Narendra Modi is expected to be made,” sources in the Gou’s delegation told HT. 

Gou refused to divulge details of his discussions with the minister, but unconfirmed reports said Foxconn, which makes Apple products such as the iPhone, is eyeing tie-ups, and is in talks with Micromax, Adani and Snapdeal among others. Government officials were positive on the outcome of the talks. “Today’s meeting is crucial since Foxconn has decided on the areas where it wants to invest,” a source in the commerce ministry said. 

Speculation is that Foxconn may make the iPhone in India, which could make the premium smartphone more affordable for Indians, at the same time helping the country take on China, the global hub for electronics manufacturing. Foxconn has already tied up with Sony to make its Bravia range of televisions in Chennai. In the last two months Gou has held meetings with chief ministers of Andhra Pradesh, Maharashtra, Gujarat and Telengana to finalise the land to set up a technology park. He also plans to invest in Bollywood and held an hour long meeting with Subhash Ghai during his visit last month. Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


15.2. Taiwan electronic manufacturing cluster at Bengaluru 
Business Standard | Aug. 13, 2015 

Bengaluru: The government of Karnataka is creating a Taiwanese electronic manufacturing cluster near the airport here, with an investment expectation of $500 million (Rs 3,200 crore). It has signed an agreement with the Taiwan Electrical and Electronic Manufacturers Association, a grouping that represents a little over 3,000 companies. Among these are Getac Technology Corp, maker of handheld devices and laptops for industrial and military use, MobileTron that makes automotive electronics and Waffer Technology, a maker of components and systems for laptops and smartphones. “Hundred acres is a conservative estimate; they want to expand to 1,000 acres,” said K Ratnaprabha, additional chief secretary. 

“The investments will begin in the next six to nine months.” India has been wooing Taiwanese investments, with top bureaucrats leading delegations over the past year. While Karnataka has lost to Andhra and Maharashtra on investments from Foxconn, the world’s largest electronic manufacturing service provider, both Karnataka and Taiwanese officials say the investment opportunity from other firms are huge. 

“Every state said, please take the land. It was difficult. In Karnataka, they have land that is developed and we can start a factory tomorrow,” said Francis Tsai, chairman of Teema. Taiwanese firms Mediatek, the world’s second largest fabless chip company (this is the design and sale of hardware devices and semiconductor chips while outsourcing the fabrication or 'fab' of the devices to a specialised manufacturer), Vistron, D-link and Delta Electronics have research and software development facilities in India, mainly in this city. 

“Nearly 98 per cent of Taiwanese companies are small and medium industries. India needs a lot of these industries, who in their specialisation are world leaders. These companies supply components to big companies,” said Kim Y C Tsai, chairman of Mobiletron Electronics, an automotive electronics firm. Kaushik Mukherjee, the state government's chief secretary, said Karnataka had emerged as a preferred investment destination for information technology firms. 

“I have absolutely no issues with other states like Andhra Pradesh, Maharashtra or Odisha taking investments. They need to come here and manufacture, grow and thrive here,” he said. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


15.3. Taiwanese firms ink MoU for electronic cluster in Gr Noida 
TNN Vandana Keelor | Aug. 14, 2015 

GREATER NOIDA: The Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) on Thursday inked an MoU with the Uttar Pradesh Development Systems Corporation Ltd (UPDESCO), under which it will invest $200 million to develop a 210-acre greenfield electronic manufacturing cluster in Greater Noida. 

With land formalities to be completed within the next month and ground work to begin in six months, manufacturing of electronic products could start within the next two years. 

"We have made a smart decision in Greater Noida. We will start construction without delay. Our products would include smartphones, semi-conductors, tablets, etc. We believe the Indian talent and manpower will prove to be a strong ingredient for the electronic manufacturing cluster (EMC)," said Francis Tsai, chairman, TEEMA's India Committee.

"UP has potential for being an electronics manufacturing hub. Our IT policies provide a congenial environment for investors," said Yasar Shah, minister of state for energy, UP, who presided over the event that was also attended by state chief secretary Alok Ranjan, R K Tiwari, the principal secretary of IT & electronics, and Rama Raman, the chairperson of Noida, Greater Noida and Yamuna authorities. 

Apart from Tsai, the 22-member delegation of TEEMA included D J Lee, the executive director of Taipei Economic and Cultural Centre in India and Tim Lin, the managing director of CINDA. 

The delegation represented Taiwanese firms such as Mobiletron Electronics Co Ltd, CTCI Corp, CINDA Engineering & Construction Pvt Ltd, Cal-Comp Electronics Communications Company Ltd and Waffer Technology Corp. 

According to officials, the EMC will be set up across two plots of land, measuring about 100 acres each. About 10 acres will be reserved for facilities. The Centre had in principle approved the setting up of the EMC on February 04, 2015. A final approval, along with an official application and detailed project report, was handed over on August 3. That followed a government order of November 13, 2014, which approved the establishment of an EMC by UPDESCO as chief promoter of the project through Greater Noida Authority. 

"The land has been allotted in Ecotech 6 and 7 in Greater Noida. While the Greater Noida Authority has allotted the land, UPDESCO will develop the land and then hand it over to TEEMA within six months. A special purpose vehicle (SPV) will be created of which Taiwan EMC will be members," Raman said. 

The total land cost for the project is estimated at Rs 277 crore. Some 5% of this cost, which is Rs 13.86 crore, has been collected by the Greater Noida Authority. "In the next phase of development, the EMC is likely to be expanded to about 800-1000 acres. We have already identified land for this," Raman said. 

The chief secretary said, "It will be a win-win situation. The EMC will usher an era of electronic industry in UP. It will bring in huge investments and also create employment for thousands."



– SERVICES (IT, R&D, Tourism, Healthcare, etc.)


16.1. Boeing open to investing in India, expands research centre 
Business Standard | Jul. 20, 2015 

Mumbai: Boeing is expanding its research centre in Bengaluru and has evinced interest in investing in Indian companies, manufacturing aeronautical components, with a view to bolster its supply chain. “Investment environment in India is improving. Given that background, we are open to make equity investments,” said Pratyush Kumar, president, Boeing India.

However, at present, Boeing is not engaged in active discussions for an investment in India, he added. On Saturday, Kumar and Boeing vice-president for research and technology Greg Hyslop, joined heads of aerospace of other Indian companies to unveil the advanced machining excellence cell at the Indian Institute of Technology (IIT), Bombay. 

The cell is a part of National Centre for Aerospace Innovation and Research, which is an initiative of the IIT, the government's Department of Science and Technology and Boeing. NCAIR works closely with companies, including DMG Mori, Delcam and Sandvik. NCAIR has also worked with Larsen & Toubro, Godrej & Boyce, Bharat Forge amongst others on aerospace research projects. 

“We are rapidly expanding supply chain in India and also helping create an aerospace eco system,” Kumar added. 
Earlier this week Boeing and Tata Advanced Systems Limited signed an agreement to collaborate in aerospace and defence manufacturing. Similarly the US plane maker collaborates with other Indian companies for manufacture of components and parts for its civil and military planes and choppers. 

Hyslop and other senior executives from Boeing met government officials and its suppliers in India to explore further collaboration and outsourcing opportunities. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


16.2. SpiceJet in talks with Airbus, Boeing to acquire over 100 planes 
Business Standard | Jul. 30, 2015 

Mumbai: SpiceJet is is in talks with Boeing and Airbus to acquire 80-120 planes in eight years. The airline has a fleet of 34 aircraft — 18 Boeing 737s, two wet-leased Airbus A319s, and 14 Bombardier Q400 turboprops. It hopes to expand its Boeing 737 fleet to 26 by the end of the year. It has on order 42 Boeing 737 Max jets valued at $4.4 billion in list price that are due for delivery from 2018. 

SpiceJet needs to expand its fleet expansion because leases of its current Boeing 737s will expire over the next four years. The airline plans to induct four or five Boeing 737 Max aircraft each year from 2018. By 2018, IndiGo which has 96 Airbus A320 aircraft now, expects its fleet to grow to 137 A320s. 

“When we initiated the revival plan, the targets before us were to clear all statutory dues, stabilise operations and work on long-term funding and fleet plans. We are carrying out market and traffic projection studies and are working on a long-term business plan. We are discussing with Airbus and Boeing about aircraft requirement,” said Chief Financial Officer Kiran Koteshwar. 

It made a Rs 72-crore profit in the June quarter, its highest ever first-quarter profit. Source said SpiceJet had delayed pre-delivery payments to Boeing for the 42 aircraft order, but Koteshwar denied it. “Pre-delivery payments become due from 2016 and so there is no question of delay,” he pointed out. 

Pre-delivery payments constitute 20-30 per cent of an aircraft’s purchase price and can be financed through borrowings, profits from sale and leaseback transactions, or other means. Unlike rival budget airlines, SpiceJet flies a mixed fleet. Budget airlines stick to a single fleet to minimise engineering, maintenance and crew costs. “We will select (Airbus) only if it makes business sense,” Koteshwar said in a response to a query on diversification. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


17.2. Growth in Indian startups has the Valley excited 
TNN Samidha Sharma | Jul. 31, 2015 

Gokul Rajaram of payments firm Square is one of the brightest minds in Silicon Valley. Having monetized search at Google, social at Facebook, he says the stage is set for transformational Indian tech companies to be created over the next decade. 

You are regarded as one of the best product brains in the Valley with a flair for monetizing platforms, a rare hybrid of product and business acumen. Tell us about your journey... 

It's always incredible for me to look back and realize I'm approaching my fifteenth year here. I moved to the Valley in 2001 to join a telecom startup.After a year, I came to Google and started working on a product that later became Google AdSense. After that, I started Chai Labs which was acquired by Facebook. Having led the ads product team at Facebook for a few years, I moved to Square, inspired by the mission of making commerce easier. After a few quarters of leading product and engineering teams, I moved to lead the Caviar team at Square which enables buyers to order from their favorite local restaurants which don't otherwise offer delivery .By managing the logistics of delivery, Caviar makes it easier for restaurants to expand their reach and grow revenues without additional overhead.We're growing rapidly and are now in 16 metros in the US. 

You've been supportive of early-stage entrepreneurs in the Valley, would your experience come to benefit young Indian entrepreneurs too? 

Throughout my career, I have been helped selflessly by dozens of mentors.I try to pay it forward and do the same for people who reach out to me. I reply to every person who contacts me (a large percentage of them are Indian entrepreneurs), and I try to do calls with as many as I can. I have the highest respect for entrepreneurs -they are trying to build something in this world that did not exist earlier. If 30 minutes of my time can make a difference, it's the least I can do. 

It's been an exuberant couple of years for tech startups. Where do you think India is in the cycle? 

If we plot the Indian startup ecosystem on an S-curve, I'd characterize it as exiting the early stage and entering the take-off phase, a period of rapid growth. India is one of the most exciting consumer markets in the world. With more than a third of the population between 10 and 24 years of age, a rapidly growing middle class, and a billion smartphone users, the stage is set for some truly transformational Indian companies to be created over the next decade.



You are a prolific angel investor. What factors come into play when you place bets? Would you take board positions in Indian startups? 

The one criterion I consider more than anything else is the quality of the entrepreneur. For early stage companies, the calibre of the founder is the single biggest factor correlated with success. What I mean by calibre, is their ability to create a compelling long-term vision, hire the best talent, build a remarkable and differentiated first product that becomes a "need" for a loyal set of early customers, and navigate the twists and turns of the marketplace. Time and again, I've seen up close that great entrepreneurs figure out (even in challenging markets) how to win and build great companies. A board role is a big commitment from both sides. I like to start working informally with companies, so we can both determine if there is a mutual fit. If it goes well, we transition to a formal advisory role. 

What's your take on tech valuations? 

Valuations globally are higher than they were a few years ago, but in most cases this is justified. The e market opportunity is massive as the internet continues to fundamentally disrupt ever mentally disrupt every industry. One metric that illustrates this: US e-commerce and ad revenues have increased 15x since 1999 (Indian e-commerce and ad revenues have increased significantly more) but is still only a fraction of total commerce. Partly due to availability of private capital, companies are taking their time to go public; they go public once they have the right financial met rics. So we don't have low-quality companies going public any longer, which used to be an issue earlier. 

How do Indian tech companies, like Flipkart, Ola and Snapdeal, stack up against the biggies in the Valley? 

The top Indian tech startups are right up there with any global company in terms of vision and execution. Over the last year, I've been impressed to see how self-aware the CEOs founders of these companies are about where they need to plug leadership holes. That's the mark of strong entrepreneurs - being realists and not deluding themselves about where they need to up their teams. Product management is one of the needs CEOs of Indian startups are looking at. Many product leaders in the Valley are excited about the growth and opportunity at Indian companies, and so we are seeing a trend of product, data science and engineering folks moving to India. 

You were behind the evolution of Google and Facebook's ad platforms.What do you think of Indian e-commerce firms looking to monetize through ads? 

The lifeblood of ads is data. Amazon has quietly built a large and high margin advertising business based on the tremendous purchase data they have. The same holds true for scaled e-commerce companies. E-commerce firms have arguably the best data on what people have bought and want to buy . So it stands to reason that they are considering building advertising businesses on the back of this data.


18. Govt to soon notify special zone for diamond mining companies 
Business Standard | Aug. 07, 2015 

The central government is working on resolving the tax hurdles for global rough diamond ('roughs' in sector parlance) mining companies which sell in India at the proposed Special Notified Zone (SNZ) in this regard. While the tax on import and export of roughs is nil in India, a cumbersome reporting process to the customs department has proved a major hurdle for global companies setting up auction offices here. 

On the sidelines of the India International Jewellery Show here, Rita Teotia, Union commerce secretary, said: “We moved quickly following the announcement by Prime Minister Narendra Modi last year to set up an SNZ. The customs and Directorate General of Foreign Trade issued the necessary notification. But, some complex taxation issues remain, for which we will work with the industry, so that a reasonable outcome emerges and the SNZ can get operational at the earliest.” 

Taxation has been a major deterrent for global miners to set up auction offices in India, in terms of re-export of unsold roughs. Despite India being the largest cutting and polishing hub in the world, processing 11 of every 13 roughs mined, global miners De Beers, Rio Tinto and Alrosa have been servicing their Indian clients from offices in Dubai, Singapore and Israel. 

Teotia hinted a separate code for synthetic diamonds was also under consideration. 
According to industry sources, existing laws permit global miners to bring roughs into India and pay one per cent of income tax on the value they sell. The valuation of the goods, however, might differ between the price miners sell to their Indian customers and what the customs assesses. Mining companies want a transparent policy. The industry has suggested a presumptive tax. his means an assessment by companies which would be acceptable to the customs, on the fair value. 
Meanwhile, India’s first SNZ dedicated to the gems and jewellery sector is to be become operational in a week, at the Bharat Diamond Bourse (BDB) here. It will allow global miners to set up a trading office in India and service their clients through auctions here. “We will have our SNZ premise ready in the next five to seven days,” said Sabyasachi Ray, executive director, Gems & Jewellery Export Promotion Council. De Beers has already indicated it was ready to set up an auction office in India’s SNZ once the taxation issues are resolved. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


19.1. Govt to start centres of excellence in Internet of Things push 
Livemint | Jul. 23, 2015 

New Delhi: The government is looking to set up a network of centres of excellence to give a push to the Internet of Things (IoT) over the next five years. The initiative got a boost on Tuesday with the cabinet deciding to extend capital subsidy to 15 new electronics products. 

Starting with Bengaluru this year, information technology industry body Nasscom, the implementing agency for the project, will establish six centres which will allow entrepreneurs and start-ups to use the tools and platforms for developing, testing and verifying connected devices and products. 

IoT is a network of “things” that include identifiable devices, appliances, equipment, machinery of all forms and sizes with the intelligence to seamlessly connect, communicate and control or manage each other to perform a set of tasks with minimum intervention. 

“Our aim is to make India a hub for Internet of Things,” said K.S. Viswanathan, vice-president, Industry Initiatives, who is in charge of the initiative at Nasscom. “The Internet of Things market is expected to reach $300 billion by 2025 and India’s aim is to grab 20% of it. By 2020, there are going to be 50 billion IoT devices on the planet, with India having a fair share. India will be among the largest consumers of IoT devices,” he said. 

According to the current estimate by Department of Electronics and Information Technology , the IoT industry in India is expected to be a $15 billion market by 2020. It is expected that India will have a 5-6% share of the global IoT industry by then. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


19.2. Internet-enabled cars now a $30 bn market in India; companies like Infosys, TCS working with carmakers 
Economic Times | Aug. 13, 2015 

New Delhi: Internet-enabled cars now present a $30-billion market for a bunch of sectors in India. By 2020, that market is poised to grow nearly six times.

IT services firms: $55 billion 
Indian IT companies such as Infosys, TCS, Wipro and HCL are working with major global carmakers, auto parts suppliers, insurers and content providers to integrate technology and find solutions for the connected car. "It's a very big bet for us," says Sudip Singh, global head, engineering service, Infosys. "We are making significant investments and recruited around 500 in the recent past." 

Infosys has customised a telecom solution it developed called Application Platform for connected cars. This is how it works: as a customer gets into the car, the dashboard interfaces with the mobile phone to access apps. Infosys has also partnered a tech startup to monitor driving behaviour using a Telematics Dongle as an aftermarket solution to auto insurers. The company is also working on an R&D joint venture with Microsoft and Japanese carmaker Toyota to deliver driver safety solutions. The aim is to keep the driver focused on the road without sacrificing any benefit offered by on-board information systems. On the cards are advanced driver assist systems such as drowsiness detectors, fatigue detectors, back seat entertainment etc. "This would be the next wave of value to the consumer," says Singh. 

Rival Tata Consultancy Services (TCS) has begun integrating navigation systems, smartphones and external devices such as memory sticks to help consumers gauge the health of the vehicle and offer customised solutions, even as it retains control over safety and security. Regu Ayyaswamy, global head, engineering and industrial services, TCS, says the IT content in cars has increased tremendously — almost 10 times the old-generation cars'. TCS is also working on next-gen infotainment systems for carmakers such as BMW and Mercedez. 

Wipro is specifically working on an infotainment system. The system aims to give the driver an interface as good as his phone for entertainment. Through analytics, it will also alert the driver to potholes, traffic and over-speeding. HCL, for its part, is working on a service that will predict consumer driving habits which can help insurers decide on premiums. 

Auto parts firms: $30 billion 
The lure of the connected car is pushing automotive engineering companies to hone skills in web technology, chip design, and embedded systems, starting with smartphone integration. According to officials of German engineering company Bosch, automated driving will be ushered in by the booming market for driver assistance. In 2016, sales of driver-assisted cars are expected to exceed one billion euros. Last year, Bosch set a record by selling more than 50 million surround sensors for driver assistance systems. The number of radar and video sensors sold doubled in 2014 - a feat poised to repeat in 2015. 

A pilot for automated driving on freeways has been targeted by the year 2020. Dirk Hoheisel, a member of the Bosch management board, says with this system, his company will make the transition from partly to highly automated driving. "Drivers will become passengers. That will mean greater comfort, and above all greater safety." 

According to forecasts by Bosch accident researchers, increasing automation can significantly reduce accident figures even further - by up to one-third in Germany alone. 

Telecom firms: $30 billion 
The ability to surf the web on the go is just one aspect of automobile connectivity. A far significant advancement lies in the communication between cars, between cars and other devices, as well as services delivered over the internet, sometimes referred to as the socalled "car-to-x" communication. Today, only a small fraction of cars are web-enabled. But in less than a decade, that number will grow significantly. 

Telecom providers are prepared to cash in on this opportunity by improving their network infrastructure. For example, Vodafone is working with Accenture, Huawei and Porsche to integrate machine-to-machine (M2M) technology to power internet applications. The Porsche Panamera is being equipped with telematics systems for vehicle management, safety, and security and even tracking mileage, speed, and other factors for usage-based auto insurance. The car is synchronised with a smartphone so that users can monitor automotive
diagnostics, mileage, streaming music, playing audio books, navigation aids and security improvements to their vehicles. 

Vodafone recently bought Cobra Automotive Technologies, which will help improve car security, telecommunications and vehicle tracking. 

Insurance firms: $15 billion 
Insurance companies spend nearly 65% of the money from premiums on clearing claims and after deducting agent commissions, and other overhead expenses are left with a 5-10% profit. The connected car will change that. Examining driving behaviour can transform the way insurers make underwriting and pricing decisions, help them respond faster after accidents and collect forensic data for investigating claims. 

"With this technology insurance companies have a proven measurement and this can reflect in pricing over a period of time," says Segar Sampathkumar, general manager, New India Assurance. Usage-based insurance (UBI) will be a key driver to cars becoming internet-enabled. Safe driving habits are likely to have an even bigger role in driving UBI, or "pay as you drive" as it's often called in Europe. Progressive Insurance in the US has collected over 10 billion miles of driving data with Snapshot, its Pay As You Drive program after introducing its first wireless device. 

Also, sensors in cars will provide data about the location and usage patterns of the vehicle and therefore a more accurate fix on the risks of theft and accidents. 

Chipmakers: $40 billion 
Chipmakers are at the forefront of the innovation push towards creating connected cars. Microprocessors or chips of companies such as Freescale, NXP, Renesas Electronics, Texas Instruments, Nvidia, Infineon Technologies are the lynchpins of a variety of services such as improving fuel efficiency, safety, security, infotainment or the climate in cars. 

Basic micro-processors are used in cars to carry out tasks such as operating windows and determining the fuel mix. The more complex ones continuously scan the roads for hazards by processing information from onboard cameras and satellite systems to make the drive safe. 

Early this year, Dutch chipmaker NXP acquired American Freescale and the combined entity, Freescale NXP, is now the largest supplier of chips to the auto industry. The current focus areas for Freescale include technologies to enable Internet of Things and Advanced Driver Assistance Systems (ADAS). "ADAS is the first step to a driverless car. To achieve that, cars have to mimic the human brain. That's possible with automobile radar and vision systems working together," says Sanjay Gupta, director for R&D, Freescale Semiconductor. A radar continuously informs about traffic around it. The car's vision comes from onboard cameras. 

Nvidia recently launched DrivePX, an autopilot computer which takes data from 12 cameras around the car to sense and interpret what is going around the car. Not surprisingly, for future cars, selecting the right silicon chip will be as critical to performance as selecting the right quality of steel. 

That's the global story. The India story could play out differently. "Globally we are at the beginning of a connected car revolution. In India, it's about a decade away," says Gupta. The dim scene is because of infrastructure bottlenecks — such as the lack of digital maps and GPS systems in cars. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


20.1. Amazon readies $5 billion chest for bigger play in India, to launch subscription-based ecommerce services 
Economic Times | Jul. 20, 2015

Bengaluru: Amazon, the world's largest online retailer, is readying a $5-billion war chest to grow India into its biggest market outside the US, according to two people directly familiar with the company's decision. It is also set to add instant video and subscription-based ecommerce services for high-end buyers, called Amazon Prime, in India later this year. 

Amazon will invest most of the additional Rs 31,700 crore — a year ago, it committed to invest $2 billion in its India operations — in expanding its network of warehouses and data centres and beefing up its online marketplace to compete better with the likes of Flipkart, Snapdeal and Paytm, the people aware of its plans said. 

Amazon, which turned 20 last week, has completed two years in India, where its business is now worth at least $2 billion in gross merchandise value on the ecommerce side, and includes fast-growing revenue from top Amazon Web Services (AWS) customers in the country. 

"Our biggest financial backer (Amazon founder Jeff Bezos) doesn't need a fresh pitch while deciding every new investment — we are really long on India, investment figures are easily in multiples of billion dollars," said a person aware of the company's plans. 

Amazon plans to launch its ambitious Amazon Instant Video (AIV) service in India this year and has started conversations with music labels and producers for sourcing content. In December, it hired Nitesh Kripalani, a former Sony Entertainment executive, to lead its new initiatives. 

An Amazon India spokeswoman declined to offer specific comments for this story, citing the company's financial earnings coming up next week. For India's three biggest ecommerce firms — Flipkart, Snapdeal and Paytm —Amazon's fresh investments and aggressive new launches will result in cutthroat rivalry and pile pressure on their valuations as they seek more funds from venture capital investors. 

Already, the top three Indian ecommerce giants have raised around $5 billion among them, with Flipkart garnering nearly $3 billion in more than one dozen funding rounds. Investors are often enthused by the Indian Internet market, which according to a Morgan Stanley report in February, could rise to $137 billion by 2020. "Unlike us, Amazon doesn't have to get worked up on upcoming valuations, or getting a fresh investor in every round — they can keep funding to ensure the others in the market bleed," said an executive at one of the Indian ecommerce companies. He also pointed to high cash burns for Flipkart, which is estimated to be around $2 million daily. 

Kartik Hosanagar, professor at The Wharton School, said some of Amazon's new bets such as Amazon Prime could take longer to take off in India. "Overall, the bet on India will pay off well for Amazon — it's a high-volume, low-margin business in the US; Amazon India will be similar. I don't expect high profits from India but definitely good scale. So, while we shouldn't expect Alibaba-like financials from India, Amazon will find that India nicely complements its efforts in the US," said Hosanagar. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


20.2. Walmart India launches 21st cash and carry store in Agra 
TNN Priyanka Singh | Aug. 13, 2015 

LUCKNOW: Walmart India, the wholly-owned subsidiary of one of the world's largest retailer, Wal-Mart Stores has opened its 21st Cash and Carry store in the country. The company claims it to be the second best price modern wholesale store in Agra and the fourth one in Uttar Pradesh. The new store has been simultaneously integrated with the e-commerce platform, making it the 21st best price store to go online, company said. 

The store is spread over 60,000 square feet area at Sikandra Industrial Area in Agra and offers a large assortment of products at competitive prices and quality. Thousands of Walmart India's business members of
Agra and nearby areas will be able to access both stores seamlessly as these are one-stop-shops for businesses such as kiranas, restaurants, hotels, caterers, fruit and vegetable resellers, offices and institutions and other businesses. The assortment, service and store layout of the store is customized to specific needs of members who can walk in and source high quality products in the quantities they need and at the time they require. 

Announcing the store's launch, Krish Iyer, President and CEO, Walmart India said, "While growing the business, we will continue to invest in the supply chain infrastructure and supplier development, focusing on the growth of small and medium manufacturers, helping grow our farmer suppliers and creating thousands of local jobs." The wholesale store stocks over 5000 items, including a wide range of fresh, frozen & chilled foods, fruits and vegetables, dry groceries, personal and home care items, hotel and restaurant supplies, apparel, office supplies, electronic goods, and other general merchandise items. 

Company's officials said that Uttar Pradesh is an important sourcing destination for Walmart India. The company sources food and non-food items including staples and commodities, plastic-ware, glassware, decor items, brooms, mattresses, among others. The company works with several small and medium enterprises in UP to manufacture and supply private label products under the umbrella of Walmart's own private brands. 

Environment friendly practices like usage of green energy (natural gas), LED lights, water recycling through sewage treatment plant and ground water recharging through collection of storm water have been incorporated in the store.



INDIA & THE WORLD



21.1. India and Russia sign customs pact and aim to boost trade three times over the next decade 
IBEF | Jul. 20, 2015 

Moscow: India and Russia seek to increase trade to US$ 30 billion by 2025 from US$ 9.5 billion last year, by overcoming challenges of inadequate connectivity, language barriers, visa barriers and regulations. Both countries recently reached an agreement on customs to provide rapid clearances of imported goods at ports, on both sea and land. Further, both India and Russia recently concluded an agreement to set up a Joint Study Group which will recommend the framework of a Free Trade Agreement (FTA) between India and the Eurasian Economic Union comprising Russia, Kazakhstan, Belarus and Armenia. 

To improve transportation of goods easily, both countries are working on a North South corridor that will facilitate trade between India and Russia. Similarly, an agreement on exports of dairy products from India to Russia is expected soon. Indian companies are interested to invest in fertiliser, coal and pharmaceutical sectors in Russia. On the other hand, Russian Railways and Russia’s Investment Fund are looking forward to work with Indian companies. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


21.2. Pipavav Defense, Russian firm in joint venture to revamp Navy submarines 
Livemint | Jul. 22, 2015 

Mumbai: Pipavav Defense and Offshore Engineering Co. Ltd and Russia’s JSC Ship Repairing Centre Zvyozdochka have agreed to jointly refit and certify submarines of the 877EKM category at an estimated Rs.11,000 crore.

The Anil Ambani-controlled Reliance Group is in the process of acquiring a majority stake in Pipavav Defence through an open offer, subject to necessary approvals. In a statement, Pipavav Defence said the company proposes to execute the programme in a joint venture with the Russian firm, in which it will hold 51% stake. 

“This will also mark the first time the work for refit of submarines is being considered for the private sector in India,” Pipavav Defence said. “The skills and experience developed by the joint venture will position Pipavav Defence favourably for undertaking similar work for large submarine forces of similar class deployed by countries such as Algeira, Vietnam and Iran, with potential additional revenues of approximately Rs.20,000 crore,” the company said. 

Prime Minister Narendra Modi’s emphasis on defence equipment manufacturing in his Make in India campaign has led several companies to scramble for licences. India currently has a fleet of nine EKM submarines, an export version of Russia’s kilo-class vessels. Of these, eight were bought during 1986-1990 and have completed 25 years of designated service life. 

Refit and life extension will provide an additional 10-15 years of operational life, bringing great relief to the Indian Navy, facing serious depletion of its underwater assets due to delay in new inductions. According to the Indian Navy website, Sindhughosh-class submarines or EKM-class submarines, designated 877EKM, were built under a contract between the Indian government and Rosvooruzhenie, Russia’s intermediary agency for exports/imports of defence-related and dual-use products. 

The submarines have a displacement of 3,000 tonnes, a maximum diving depth of 300m, top speed of 18 knots, and are able to operate solo for 45 days with a crew of 53. On 12 June, Hindustan Times reported that five Indian shipyards, including Pipavav Defence, have been shortlisted by a top government committee to compete for a Rs.64,000-crore project to build high-tech submarines for the navy, citing unnamed government officials. 

Six advanced submarines will be built under project P-75I. One of the costliest projects under the Make in India programme, it is expected to scale up the navy’s undersea warfare capabilities and is critical to counter the rapid expansion of China’s submarine fleet. 

The shipyards shortlisted by the high-powered panel are Mazagon Dock Ltd, Hindustan Shipyard Ltd, Cochin Shipyard Ltd and private sector yards Pipavav Defence and Larsen and Toubro Ltd, Hindustan Times reported. “The refit for Indian Navy will open up more opportunities in the world. There are similar submarine programmes across the world,” said a senior Reliance Group executive. 

On 16 July, Press Trust of India reported that Anil Ambani will invest an “additional Rs.5,000 crore” over the next few years in Pipavav Defence, pitching it as a one-stop shop for all requirements of the Indian Navy. India will see a defence budget allocation of $620 billion between FY14 and FY22, of which 50% will be capital expenditure, according to a February report released by Federation of Indian Chambers of Commerce and Industry (Ficci) and financial services firm Centrum Capital Ltd. The annual opportunity for Indian firms—both state-owned and private—is expected to be $41 billion by FY22 and $168 billion cumulatively, the report said. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


22. PM Narendra Modi eyes UAE’s $800 billion sovereign fund to boost infrastructure spending 
ET BureauBy Dipanjan Roy Chaudhury | 13 Aug. 2015 

NEW DELHI: Narendra Modi, whose foreign visits over the past year was aimed at attracting much needed foreign investment to boost the economy, would try to lure a share from $800-billion sovereign fund of the UAE for infrastructural needs as well as give momentum to Bilateral Investment Protection Agreements (BIPA) that has not functioned to its potential to attract investments. 

Buoyed by the oil economy, UAE sovereign wealth fund is estimated at over $800 billion and Modi would like to attract part of this fund, imperative for the country's infrastructural needs estimated at one trillion dollars, officials hinted. 

The Abu Dhabi Investment Authority (ADIA) is the sovereign wealth fund owned by Emirate of Abu Dhabi (in the UAE) founded for the purpose of investing funds on behalf of the Government of the Emirate of Abu Dhabi. It manages the Emirate's excess oil reserves and is one of the world's largest investment funds. 

The two sides had signed the BIPA two years back but it has not functioned smoothly. It is also expected that Modi's first visit to the UAE on August 16-17 can give confidence to UAE's investors, some of whom did not have a smooth run here. 

The deal was signed in December 2013 to ensure protection of crossborder investments by India and the UAE. It was aimed at accelerating investments and giving a fresh impetus to stalled joint venture projects. External Affairs Minister Sushma Swaraj during her visit to the UAE in November 2014 had assured that the Modi government is committed to implementing the BIPA. The two-way trade has declined from a record high of $75.45 billion in 2012-13 to $59.54 billion in 2013-14 due to curbs on gold imports Currently, the UAE investments in India are estimated to be $8 billion of which around $3.01 billion is in the form of foreign direct investment, while the rest is portfolio investment. UAE's investments in India are concentrated mainly in five sectors: construction development (15.52%), power (13.09%), metallurgical industries (9.90%), services (9.58%), and IT (4.90%) sectors.


23. Poland’s LOT to link Warsaw, Delhi 
TNN | Saurabh Sinha | Jul. 23, 2015 

WARSAW: Indian travelers to Europe will soon have more choice. Poland's state-owned LOT airline is going to link Warsaw to Delhi early next year with a Boeing 787 Dreamliner. 

"There are a lot of Polish companies in India as well as a strong Indian business community in Poland. There has been a demand from both these groups for a long time that we fly to India. We have plans to fly to Delhi next year. The question is not if but when and the decision will be taken by the end of this year," LOT CEO Sebastian Mikosz told TOI here. 

With a relatively small fleet that is at present under 50 aircraft, eastern Europe-based LOT could have either chosen Delhi or Mumbai and has opted for the former. The Polish airline, which used to fly to Delhi earlier but stopped some years ago, is relying on its Star Alliance partner — Air India — to provide good connectivity to its flyers once they are in India as well as to have a good schedule in Delhi. 
As his airline's USP, Mikosz promises faster connections within Europe to people flying from Delhi to Warsaw. "The big hubs in Europe offer connecting time of one to two hours. Warsaw is a niche airport and we will provide connection (within Europe) in 40 minutes to an hour. Warsaw is just six hours' flying time from Delhi. That is going to be our key advantage," he said, while reiterating that LOT's India flights will be in "close partnership" with AI. 

LOT will be latest addition to the long list of European carriers that fly to India. This includes marquee names like Lufthansa, British Airways, Swiss, Austrian, Air France-KLM, Turkish and Finnair. Star Alliance is trying to get the flight schedules of its member airlines flying into India aligned as closely with AI as possible. The idea: offer India connection to incoming passengers as well as have AI flights fly into metros at times closer to Star airlines' departures from there. 

This is part of Star Alliance strategy to take on the unrelenting challenge posed by Gulf carriers.


24.1. Indian exports to witness 10% jump on US GSP 
Business Standard | Aug. 07, 2015 

New Delhi: With the US renewing generalised system of preferences (GSP) benefits on retrospective basis from July 29, India's merchandise exports can see a 10 per cent jump in the present fiscal of 2015-2016. Of the total exports of $310.57 billion in 2014-2015, US accounted for $42.44 billion. Under the US GSP, 3,500 product lines will be eligible for the benefits. Some of the main ones in these are engineering goods (mechanical machinery, electrical machinery and equipment, tools, agricultural implements), organic and inorganic chemicals, plastic and copper, among others. 

"In some of the sectors the GSP benefit is as high as 10-11 per cent. Keeping in mind the sectors that have been covered under the US GSP review this time, we expected total exports to go up by 10 per cent this fiscal," said Ajay Sahai, CEO, Federation of Indian Export Organisation (FIEO). 

Export of engineering goods, which constitutes 24 per cent of the country's total exports and US being its biggest market, is expected to jump by 15-20 per cent. The average duty on engineering imports in the US ranges from three to four per cent. "Our exports meant for the US markets are now going to go up by 15-20 per cent on annual basis due to this as we are now expecting a quantitative jump. This will also help in gaining the competitiveness that Indian exporters lost," said Sanjay Budhia, managing director of Kolkata-based Patton International Ltd, engaged in exporting steel stampings, locknuts and other fittings to the US. 

Budhia, who is also chairman of Confederation of Indian Industry's (CII) National Committee on Exports and Imports, said that the move was long due and delay in renewing the benefits has had an adverse impact on engineering exports. "This renewal has been effected at a very crucial time for India, when exports have dipped for the seventh consecutive month. One of the major reasons for this decline is a slowdown of demand in the US, which has been India's traditional export market. The renewal of GSP will help pick up demand by the US firms, and help Indian exporters regain some of the lost ground," said Chandrajit Bannerjee of CII. 

According to the Engineer-ing Export Promotion Council (EEPC) engineering exports might see a turnaround from the second quarter itself. In the first quarter of the financial year, engineering exports stood at $15 billion, out of which $1.7 billion accounted for the US. Chemical exports are also likely to see a rise as it will experience a cost saving of two to eight per cent in the US. 

"It will have a positive impact but it is difficult to quantify because we have seen a decline due to duty barrier, weak demand and volatility in crude prices and currency. But I am definite that chemical sector might see a double digit growth in this financial year," said B R Gaikwad, chairman, Chemical Export Promotion Council (CHEMEXCIL). The US GSP, which expired in July 2013, has been extended with retrospective effect from August 2013 till December 2017. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.


24.2. 'India, US share more than buyer-seller relationship' 
PTI | Jul. 30, 2015 

WASHINGTON: India and the US have decided to move away from a "buyer-seller" relationship to co-development and co-production, Indian envoy Arun K Singh has said, underlining that there is a huge opportunity for bilateral cooperation in various areas including in the economic sector. 

The most important fact that provides firm basis to the Indo-US relationship is the "people-to-people interaction," the Indian ambassador to the US said.

In an interaction with local Indian-American media in the Silicon Valley last week, Singh said, India has the strongest relationship with the US. 
He said the defence cooperation with the US is strong. In the last four years, India has bought about US $ 10 billion worth of defence supplies from the US, which is more than from any other country. 

"It is the reflection of our relationship but what is new is that the two governments have announced to move away from the buyer-seller relationship" to co-development and co-production, Singh said. 

"We have identified six pathfinder projects for co-development and once that is in progress that will further deepen defence cooperation. As far as the joint military exercises of India and the US, it has been said that the largest number of military exercises both India and the US had with any country in the world, is with each other," the ambassador said. 

He also said that at present, there are more than three million Indian-Americans in the US and with about 110,000 Indian-American doctors; one in every seven patients in the US is being treated by the Indian-American doctors. 

While about 100,000 Indian students are pursuing studies in various US universities, he said, and claimed approximately 40 per cent of the hotels in the US are owned or managed by the Indians. 

The situation reveals that there is a huge engagement at people-to-people level with the US and it is on this basis that India wants to take forward the relationship with the US, the Ambassador said. 

Both India and the US, he said, share democracy, pluralism and rule of law and there is a huge opportunity in different areas of cooperation including in the economic sector. 

Referring to India visit of US President Barack Obama in January and US visit of Prime Minister Narendra Modi last September, he described this as a clear reflection of progress of the current day relationship between the two countries. 

He referred to Obama's statement that "the Indo-US relationship can be one of the defining partnerships of this century", and Modi's statement that India and the US are "natural allies". 

Responding to questions, Singh said, there are no plans for India to open an additional consulate in the US. In addition to the Indian Embassy in Washington DC, India has consulates in New York, Chicago, Atlanta, Houston and San Francisco.


25. Modi, Pradhan step on gas over TAPI pipeline 
TNN | Aug. 11, 2015 

NEW DELHI: From being considered a $10-billion pipedream for decades, the idea of piping gas from Turkmenistan to India through rebel-infested areas of Afghanistan and Pakistan is inching towards reality, notwithstanding the complexities of relations among the three South Asian neighbours. 

PM Narendra Modi's visit to Turkmenistan in July and India last week agreeing to joint ownership has lent a new impetus to the project. Representatives of national gas companies from the four countries are scheduled to discuss the shareholding pattern of a consortium they plan to form for laying and operating the 1,800-km pipeline. 

The talks are scheduled for August 18 and 19 in Dubai and follow Turkmenistan's assurance to lead the consortium with at least 51% stake. Oil minister Dharmendra Pradhan also expects a substantial Japanese involvement in the project, based on his discussions during last week's steering committee meeting at Turkman capital Ashgabat. 

"We are the buyers. Turkmenistan is the seller. So if the seller is taking leadership role in the consortium, it is a big assurance for (the success of) the project. They (Turkmenistan) are also discussing co-operation in the oil and gas sector with Japan. So Japanese involvement (in TAPI) is also expected. All this will only strengthen the project," Pradhan said on Monday.

Pradhan was last week in Ashgabat for the project's 22nd steering committee meeting. At that meeting, oil ministers from the four countries decided to form the consortium after efforts to rope in a global major as consortium leader failed. 

Global energy majors such as Total of France, which came forward initially with the condition that it be given stake in the gas field. But after Turkmenistan said its law did not allow giving stake in oil and gas fields to foreign firms, it backed out. 

On the pipeline's safety in Pakistan and Afghanistan, Pradhan said international processes would be followed. GAIL will represent India in the consortium. The Turkman leadership is eager to hold the ground-breaking ceremony in December but Pradhan remained non-committal. 

Since the four state-owned firms, including GAIL of India, neither have the financial muscle nor the experience of a cross-country line, an international company is needed to build and operate it in hostile territories of Afghanistan and Pakistan. 

The TAPI pipeline will have a capacity to carry 90 million standard cubic metres a day (mmscmd) gas for a 30-year period and will be operational in 2018. India and Pakistan would get 38 mmscmd each, while the remaining 14 mmscmd will be supplied to Afghanistan. 

TAPI will carry gas from Turkmenistan's Galkynysh field, better known by its previous name South Yoiotan Osman that holds gas reserves of 16 trillion cubic feet. 

From the field, the pipeline will run to Herat and Kandahar province of Afghanistan, before entering Pakistan. In Pakistan, it will reach Multan via Quetta before ending at Fazilka (Punjab) in India.

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