AAPI: November 2015

INDEX of this NEWSLETTER

INDIA

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NEWSLETTER, 20-XI-2015

INDIA

- GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, etc.

1.1. Civilization wouldn't have lasted 5,000 years without tolerance: President Pranab Mukherjee

TNN, Someswar Boral | Oct. 20, 2015

SURI (Birbhum): For the second time in a month, a visibly disturbed President has spoken out for tolerance and the importance of protecting diversity in the country. "Pluralism is key to our civilization and culture," Pranab Mukherjee said. He is here for Durga Puja and spoke at a felicitation function on Monday.

Mukherjee said what held India together was "tolerance" which "calls for respecting other religions and other views." In his 10-minute speech, he stressed that "pluralism and tolerance have held together for ages this civilization of many languages, races, religions, with diverse anthropological features."

The President said, "Tolerance is not a political cliche. We celebrate diversity, we are ready to accept other views." Without making a direct reference to the Dadri killing or the smear campaign against writers, he said, "We have heard about some untoward incidents recently. Some of these are being discussed in the media. They sometimes create confusion and uncertainty. A question comes to our mind - Are we on the right track?"

Preserve values of diversity, tolerance: President Pranab Mukherjee

Mukherjee is in his village, Mirati, for the Pujas. He said in Bengali, "Dhak bejechhe, kintu kichhu katha mone rakhte hobe (the drums are playing, but we should keep in mind certain things)". He said in his recent visit to Israel, Jordan and Palestine, he was asked what binds India together.

"They wanted to know the chemistry of a country of 123 languages, races, religions and diverse anthropological features. I am not sure why they asked me the question... Maybe, these countries are witnessing unrest," he said.

"Our collective strength must be harnessed to resist evil powers in society," the President said. His comments came on Shashthi, the day goddess Durga is welcomed during the pujas.

He said such unrest was also bothering India. "Some such questions bother our country also. We believe in Ramakrishna's saying 'jata mat, tata path' (ways are many, as are opinions). It is our inheritance," he said.

Recalling Rabindranath Tagore, Mukherjee said, "He had said 'sabar upor manush sotto, tahar upore nai' (humans are the ultimate, there's none above him). Our civilization won't have lasted for 5,000 years without tolerance... The Indian civilization has always accepted dissent and differences."

He also said, "Hope Mahamaya, the combination of all positive forces would eliminate the Asuras or divisive forces," adding, "We have a constitution that accommodates all these differences."

His comments came on shashthi, the day goddess Durga is welcomed during the pujas. He said such unrest was also bothering India. "Some such questions bother our country also. We believe in Ramakrishna's saying 'jata mat, tata path' (ways are many, as are opinions). It is our inheritance," he said.

He also said, "Hope Mahamaya, the combination of all positive forces would eliminate the Asuras or divisive forces," adding, "We have a constitution that accommodates all these differences."

1.2. Ex-Navy chief Admiral Laxminarayan Ramdas writes to President Pranab Mukherjee, slams attacks on minorities

TNN | Oct. 26, 2015

New Delhi: Former Navy chief and ex-AAP ombudsman Admiral Laxminarayan Ramdas has written an open letter to President Pranab Mukherjee and Prime Minister Narendra Modi condemning the attacks on minorities and Dalits under the rule of the current government.

"The Hinduism I knew and experienced was gentle, inclusive, and filled with extraordinary diversity," writes Ramdas in the letter. "Today, as a veteran in my eighties, I am forced to hang my head in shame."

Ramdas, who won the Magsaysay award for peace, also emphasised how certain communities are being "singled out for special attention". "Today, a Muslim has to prove his or her loyalty, and they are being repeatedly put in a situation where their places of worship are under attack, as indeed their eating habits, and other basic freedoms," writes Admiral (retd) Ramdas.

1.3. Grand victory for Grand Alliance

The Hindu, Business Line, Poornima Joshi | Nov. 08, 2015

The Grand Alliance of Nitish Kumar and Lalu Prasad on Sunday humbled the BJP and its allies in the Bihar Assembly elections, notching up a stunning 178 seats against 58 mustered by the National Democratic Alliance.

The Grand Alliance surpassed the NDA in all regions of the State, registering a margin of victory that confounded predictions that this would be a closely fought contest. Nitish Kumar, who will be Bihar’s Chief Minister for a third term, described the poll as a milestone, which will shape the national political discourse.

Vote share

The cumulative vote share of the Grand Alliance was 41.9 per cent while that of the BJP-led NDA stood at 34.2 per cent. Significantly, the BJP’s own vote share, at 24.5 per cent, was not a drastic reduction from the 29.86 per cent it secured over a year ago, in the Lok Sabha poll. Also, it was higher than the 16.49 per cent that the BJP notched up in 2010. In that election, it was enough to secure as many as 91 seats for the BJP. But this time the party managed only 53 seats despite increasing its vote share by about nine percentage points.

In contrast, two constituents of the Grand Alliance were able to secure more seats without corresponding increases in vote shares. The RJD managed to secure 80 seats with an 18.4 per cent vote share; in 2010, it won only 22 seats with a similar vote share (18.84 per cent). At 6.7 per cent, the Congress vote share was down two percentage points from its 2010 performance (8.37 per cent). But the seats it won increased from four to 27. As for the JD (U), it secured fewer seats (71 as opposed to 115 in 2010), but it did so with only 16.8 per cent of the vote as against 22.58 per cent in 2010.

Turnaround in trends

The initial trends put out by many television channels suggested either a cliff-hanger or a BJP victory, keeping politicians and analysts on the edge and unsettling Nitish Kumar, as he admitted later. But as the counting progressed, there was a gradual turnaround that culminated in a comprehensive victory, suggesting that the channels may have simply got the initial trends wrong.

Having won the election, both Nitish Kumar and Lalu Prasad were quick to underline the larger import of the election result, which they suggested was a catalyst that would alter the face of national politics. Lalu Prasad, who has resurrected the Rashtriya Janata Dal (RJD) to its former glory of being the single largest political party in the Bihar Assembly with 80 seats, did not miss the opportunity to outline his political agenda against the BJP.

“I will go to Varanasi where Narendra Modi claimed he has been summoned by Mother Ganges… I will light my lantern to find out what he has done for the holy city. That will be the beginning of our mammoth social movement against the BJP. Their communal agenda, playing politics on our sacred Mother (cow) and dividing Hindus and Muslims, have been rejected by the wise people of Bihar,” said Lalu, addressing a press conference with Nitish Kumar and Bihar Congress chief Ashok Chowdhury.

While questions were being asked on whether Lalu’s superior performance would push him to make unreasonable demands on Nitish Kumar, including seeking the post of Deputy Chief Minister for one of his sons, both leaders dismissed them as speculative. “Woh dono abhi bachche hain. Unko seekhne do (my two sons are still very young. Let them learn first),” said Lalu.

BJP leaders to meet

There was a complete hush at the BJP headquarters where Amit Shah was closeted for long with his campaign team and party general secretaries. The meeting of Home Minister Rajnath Singh with RSS Chief Mohan Bhagwat led to speculation about whether Shah would get a fresh term as party president; his tenure ends in December.

A meeting of the BJP’s highest decision-making body — the parliamentary board — has been called for Monday. Some senior leaders, such as party general secretary Murlidhar Rao, have sought disciplinary action against party MPs Shatrughan Sinha and RK Singh for making “damaging” statements during the campaign.

2.1. 100-day adult literacy scheme awaits CM K Chandrasekhar Rao's nod

TNN | Oct. 20, 2015

Hyderabad: The Telangana state directorate of adult education has charted out a 100-day action plan to educate over 50 lakh illiterates in the state through a training programme.

The state has the second-largest number of illiterates in the age group of 15-60 years in the southern region. Mahbubnagar has the most number of illiterates among the districts, followed by Medak and Nizamabad. Mahbubnagar has the least literacy rates on all fronts, be it male, female, SCs and STs.

The 66.46 per cent literacy rate in the state is much lower than the national average of 72.99 per cent. In female literacy, Mahbubnagar finished last followed by Adilabad and Nizamabad. In the SCs category also, Mahbubnagar has the highest number of illiterates, followed by Nizamabad and Medak while in STs, Mahbubnagar has the lowest literacy rates, followed by Medak and Nizamabad.

To reach out to these districts, local scholars with knowledge of linguistic and dialects spoken in Telangana districts have been enrolled to prepare the teaching material.

"It is a matter of concern that literacy rate is lower than in some of the lower income states like Odisha, Chhattisgarh and Madhya Pradesh. The literacy rate in the state varies from 55.04 per cent in Mahbubnagar (lowest) to 83.25 per cent (highest) in Hyderabad. There are also huge differences in literacy rates between males and females and that of SCs and STs. Improving the literacy rate in general and that of the SCs and STs in particular is a major challenge before the state government," the action plan document says.

The 100-day literacy programme includes teaching words, alphabets, government projects, welfare schemes and festivals like Bathukamma. "The 100-day action plan has been prepared and sent to chief minister K Chandrasekhar Rao for approval. Once we receive approval, we plan to complete the training programme by the end of February and send the trainees for the examination to be conducted by the National Institute of Open Schooling (NIOS) to be held in March 2016," said K Anand Das, director of adult education. "Currently, we are in the process of identifying 2 lakh volunteers for the massive training project," he said.

Adult education plan:

* Telangana has the second-largest number of illiterates in the age group of 15-60 years in the southern region

* The state has 66.46% literacy rate, much lower than the national average of 72.99%

* Among the districts, Mahbubnagar has the least literacy rates on all fronts, be it male, female, SCs and STs * Now, the directorate of adult education has charted out a 100-day action plan to educate over 50 lakh illiterates

* Local scholars with knowledge of linguistic and dialects spoken in the districts have been enrolled to prepare the teaching material

2.2. Industrial development along ports to get a push

Business Standard | Oct. 20, 2015

New Delhi: The shipping ministry is set to launch the National Perspective Plan (NPP) by January next year, aimed at comprehensive and integrated development of coastline. The proposed NPP will identify potential geographical regions to be called coastal economic zones (CEZs), a spatial-economic region around a group of major and minor ports, which could extend along 300-500 km of coastline and 200-300 km inland from the coastline.

Detailed master plans will be prepared for CEZs to identify projects. Officials said 14 CEZs have been identified across several states and perspective plans are under development.

The shipping ministry is in talks with state governments besides coordinating with the ministries of railways, road transport & highways, coal, power, steel, petroleum & natural gas, and department of industrial policy & promotion to provide necessary inputs for NPP and CEZ master plans. It has also asked McKinsey to prepare the plan.

"The plan is a part of Sagarmala initiative. While preparing the NPP, synergy and integration with the planned industrial corridors, dedicated freight corridors, National Highways Development Programme, industrial clusters and SEZs would be ensured," said a senior official in the ministry. The state industrial development agency will provide land available with major or non-major ports for industrial development.

According to experts, closer proximity of manufacturing centres to ports in China unlike in India where the main hinterland container depot is at an average distance of 700 km from the nearest port is the main reason why export costs in India are more than that in China. Thus, the development of CEZ will help in reducing the transportation cost substantially.

"After preparation of the NPP and detailed master plan of the coastal economic zones, specific projects will be identified in all the identified coastal economic zones covering the entire coastal region and islands coastline of the country. Thereafter, in accordance with the detailed project reports and the preparedness of the implementing agencies (state governments, state maritime boards and central line ministries) individual projects will be taken up. It would be region over which the influence of ports exists insofar as supporting industrial and other economic activities is concerned," he added.

As far funding of projects is concerned, it may be executed through private agencies, public-private partnership mode, budget of relevant ports, line ministries, central agencies, state government in accordance with NPP. The other financing models will be explored, including Viability Gap Funding. The proposed plan will give traffic forecast for five, 10 and 20 years and potential for coastal shipping and inland waterways for key commodities such as coal, containers etc.

The NPP will also undertake study to improve productivity, profitability, operational efficiency and future prospects of major ports. Earlier, Union minister for road transport, highways & shipping Nitin Gadkari stressed on the development of maritime sector and said approximately 50 million tonne per annum of inland coal movement can also be potentially shifted to national waterways. The shifting of coal movement to coastal shipping is expected to lead to annual savings of about Rs 8,000 crore in coal logistics cost by 2020.

Since logistic costs account for around 30 per cent of the overall cost of power, this will lead to a reduction of 50 paise a unit in power generation cost of plants sourcing through coastal shipping and generate Rs 4,000 crore as additional revenue for ports by 2025.

COAST IS CLEAR

The shipping ministry is set to launch the National Perspective Plan (NPP) by January next year, aimed at comprehensive and integrated development of coastline
The proposed NPP will identify potential geographical regions to be called coastal economic zones (CEZs), a spatial-economic region around a group of major and minor ports, which could extend along 300- 500 km of coastline and 200-300 km inland from the coastline.
The plan is a part of Sagarmala initiative. While preparing the NPP, synergy and integration with the planned industrial corridors, dedicated freight corridors, National Highways Development Programme, industrial clusters and SEZs would be ensured.

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

3.1. Indian steel industry will grow three folds in next 10 years, Sajjan Jindal says

TNN, Adarsh Jain | Nov. 13, 2015

Coimbatore: Indian steel industry is predicted to grow three folds in the next 10 years - from a capacity of 110 million tonnes (MT) this year to 300MT in 2025, said chairman and managing director of JSW Steel Ltd Sajjan Jindal on Friday.

The rising number of infrastructure and developmental projects have kept the demand for steel in the country rising, said Jindal during the inauguration of the international conference on global challenges and opportunities in steel industry organized by the Steel Authority of India Limited, Indian Institute of Metals and PSG College of Technology in Coimbatore.

In 2014, the capacity of steel production in the country was around 85MT and it increased to 110MT this year. "If our gross domestic product continues to grow at 8-9% every year, then we will be able to increase our capacity to 300MT by 2025. If not 300, at least 250MT," he said.

Speaking about the Chinese market, Jindal said due to the economic slowdown in China, the steel exports from the country had risen tremendously.

"China is export in excess of 10MT steel every month," said Jindal. In China, steel is a byproduct of electricity, steam or other products. "Steel productions are owned by provincial governments or municipalities. So, China cannot afford to stop steel production as it will affect its basic requirements," Jindal said.

China is overproducing steel, and due to the economic slowdown, it is selling steel at less than the production cost. "This has impacted the global market too. However, we will continue to grow as we are in the phase of development," said Jindal.

He said that despite China trying to export its steel at low prices, India should concentrate on developing its own industry.

"We do not want to see a day when we will have to buy steel from China in order to develop our country. We have, in a presentation to the Centre showed that the Indian industry has the potential to be competitive globally," Jindal said.

"Indian steel market is among the top five markets in the world. To help this growth, India has to increase the size of steel plants and blast furnaces. Steel industries should have a minimum production of 5MT," Jindal said.

4.1. Odisha bets big on solar power, plans to set up 1,000-MW park

Business Standard | Oct. 19, 2015

Bhubaneshwar: Odisha has unveiled an ambitious plan to set up a 1,000-Mw solar park. "There is a proposal for setting up a 1,000-Mw solar park. The identification of land for the project is underway. For setting up such a park, about 5,000 acres are required. Since it is an uphill task to get a contiguous patch of 5,000 acres in Odisha, the park might be developed in clusters," said a government official in the know of the matter.

The park, to be developed on a public-private partnership mode, has been formally approved by the Ministry of New and Renewable Energy. It was likely to involve an investment of about Rs 6,500 crore, the official said. The state government is expected to commit a provision to buy 20 per cent of the power generated from the park. Power producers would have an option to sell the remaining power out of Odisha at bilateral prices, upon securing the first right of refusal from the state government.

To develop the park, Green Energy Development Corporation of Odisha Ltd (Gedcol) is likely to sign a pact with Solar Energy Corporation of India (SECI), after securing the approval of the state government. Gedcol is the nodal agency to explore renewable energy resources in the state. "We have not decided (on the solar park) yet. Idco (Odisha Industrial Infrastructure Develo-pment Corporation) has been asked to identify land. A decision will be taken after that," said Suresh Mohapatra, energy secretary, Odisha.

In August 2014, the Union renewable energy ministry had unveiled a plan to develop 25 solar parks, each with capacity of 500-1,000 Mw. Odisha planned to set up one such park, with 1,000-Mw capacity, said Swayam Prakash Baral, director (business development and strategy) at Canyon Consultancy, a Bhubaneswar-based renewable energy consultancy firm. Odisha received average solar radiation of 5.5kWh/sqm, with about 300 clear, sunny days every year and solar power potential of about 20,000 Mw, Baral added.

Due to high solar irradiance (measure of solar radiation) in districts such as Nabarangpur, Bolangir and Sundergarh, large solar power plants are likely to come up in these districts. Currently, Odisha had an installed solar power capacity of 64 Mw, Baral said.

According to the SECI website, states such Madhya Pradesh, Andhra Pradesh, Rajasthan, Uttar Pradesh, Gujarat, Telangana and Karnataka are keen to set up solar parks and ultra mega solar power projects. The central government has set a target of generating 175,000 Mw of power through renewable energy sources by 2022. Of that, solar power would account for 100,000 Mw, while 60,000 Mw would be generated by harnessing wind capacity. Besides, 10,000 Mw and 5,000 Mw would come from biogas and small hydro projects, respectively.

Finalisation of Odisha's renewable energy policy is in its last stages. In the draft policy, the state government had set an ambitious target of adding 3,000 Mw of renewable energy capacity by 2022 - 2,300 Mw in the solar sector, 350 Mw from wind sources, 150 Mw from small hydro electricity projects, 180 Mw from biomass and 20 Mw from municipal solid waste.

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

4.2. India's rooftop solar capacity to touch 6.5 GW by 2020: Study

Economic Times | Nov. 19, 2015

Kolkata: India's rooftop solar capacity has touched 525 mw this year, according to consulting and knowledge service provider Bridge to India.

In a report the firm said that over the past 12 months, solar capacity installation in the country was almost equal to the cumulative of what was added in the last three years.

According to Bridge to India, India's rooftop solar industry has grown 66% from last year despite lack of specific rooftop initiatives, unlike the utility-scale solar segment. This growth is directly linked to improved project economics and is expected to continue accumulating up to 6.5 gw of installed capacity until 2020, it said.

Among states, Tamil Nadu, Maharashtra and Gujarat lead in total installed capacity in that order. Tamil Nadu's good performance, especially in the industrial segment, can be attributed to high consumer awareness, high industrial and commercial tariffs, and wide gap between energy demand and supply in the highly industrialised state.

"The map also highlights that India is fast approaching nationwide grid parity for all rooftop segments, particularly the commercial and industrial segments. Six new states have achieved grid parity for commercial consumers, bringing the total number of grid parity states to 19. Similarly, six new states have also achieved grid parity in the industrial segment, increasing the total number of grid parity states to 17. However, while none of the states have achieved grid parity for residential segment, the gap between solar and grid tariffs has reduced substantially. The consultancy has identified rising grid tariffs and falling costs of solar to be the reasons for the reduction in gap between solar and grid tariffs," the study said.

Vinay Rustagi, managing director, BTI, said, "This capacity addition comes at a time when the government has gradually started withdrawing the capital subsidies and the market grew mostly on its own fundamentals. Going forward, we expect tremendous growth opportunities in the rooftop solar market in India in the next few years for both existing and new companies, fuelled mainly by reducing solar costs, increasing grid tariffs, increased customer awareness, robust policy support, and on-ground implementation of net-metering across all states."

BTI said the rooftop solar sector has the ability to grow independent of government assistance, and the increase in net-metering capable states from nine, as of last year, to 23 now and seven UTs this year will help accelerate the market's growth next year.

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

- AGRICULTURE, FISHING and RURAL DEVELOPMENT

5.1. Government is committed to higher growth rate in Agriculture - Radha Mohan Singh

Press Information Bureau | Nov. 18, 2015

New Delhi: The Government is committed to higher growth rate in agriculture through sustainable development. A number of schemes have been initiated for this purpose which include soil health card scheme, ‘Paramparagat Krishi Vikas Yojana’, through ‘Pradhanmantri Gram Sinchai Yojana’; enhanced water efficiency through ‘Per Drop More Crop’. This was stated by Union Agriculture and Farmers Welfare Minister, Shri Radha Mohan singh while addressing Asian Seed Congress, in Goa today. He said that the Government has also taken up continued support to employment guarantee schemes, creation of a unified national agriculture market to boost the incomes of farmers.

Full text of Union Minister of Agriculture and Farmers Welfare speech:

“I am very happy to be here on the occasion of inauguration session of the Asian Seed Congress, 2015 being organized by Asia and Pacific Seed Association. It’s a matter of great pleasure and privilege for us that APSA has chosen Goa as a venue for organizing this Seed Congress. This is very apt because India is now emerging as a big economic power and agriculture is one of the important sectors, which will substantially contribute to the growth of our economy.

It is well known that agriculture production and productivity is mainly dependent on quality seeds and organizing such an event would definitely help in increasing availability of quality seeds at regional, national and global level. The seed sector not only helps in improving the production and productivity of agriculture crops but it also helps in generating employments and growth of allied sectors like dairying, animal husbandry, fisheries, poultry, etc.

Agriculture is the focus sector for the Government the Hon. PM has given the clarion call on the need to increase agricultural productivity with overall welfare of farmers, therefore Ministry has been renamed as Ministry of Agriculture and Farmers’ Welfare with a view to develop a holistic approach. The Government is committed to higher growth rate in agriculture through sustainable development and has developed key schemes to address the natural resource management including soil health card scheme, ‘Paramparagat Krishi Vikas Yojana’, through ‘Pradhanmantri Gram Sinchai Yojana’; enhanced water efficiency through ‘Per Drop More Crop’ and continued support to employment guarantee schemes, creation of a unified national agriculture market to boost the incomes of farmers.

One of the important features of the seed sector in India is that it has equal and important role played by both public and private sectors. Organizing of such events not only provide business opportunities to the seed industries but also provides feedback and inputs researchers and scientists for initiating new research and technology to overcome those constraints for the welfare of the agrarian society.

The Indian agriculture sector has made commendable progress during the last four decades and from a food deficient country in sixties, today we have become a food sufficient country. Baring pulses and oilseeds, we are surplus in many food crops and are able to feed our growing population.

It is true that in some crops a yield plateau has been reached but this barrier can be broken by way of new and innovative technologies and also through an intensive agriculture extension effort. Seed is one of the key factors to increasing the production and productivity in agriculture crops and our efforts should be to invest more R&D in the seed sector for the development of new and better varieties which will not only have higher yield potential but will also have wider range of adaptability and resistance / tolerance to biotic and abiotic stresses. I applaud the efforts of the organizers to bring all such issues in the forefront for solution by policy makers, researchers and other stake holders of the Asia and Pacific countries.

It is a fact that well identified seed production area, professionally organized seed villages, and a vibrant private sector have made India a potential seed sourcing hub. All this would not have been possible without the policy support provided by Government of India, starting with the National Seed Production Programme, New Policy on Seed Development of 1988, which opened the gates for private sector participation in the seed business, to the National Seed Policy, 2002, opening up of FDI in seeds, the Protection of Plant Varieties and Farmer’s Rights Act, 2001 and the Biodiversity Act, 2002 etc. The adequate availability of quality seeds is one way ensuring the enhanced agricultural production and other hand supporting the entrepreneurship for while also providing opportunities excess quantity of quality seed of elite varieties to be exported to earn foreign exchange.

The potential of the agriculture sector for rural rejuvenation cannot be neglected as about 60% of our country’s population depends on agriculture for livelihood. Studies have indicated that one percentage growth in agriculture sector is two to three times more effective in reducing poverty than one percentage growth in other sectors. Therefore, Ministry of Agriculture and Farmers Welfare aims to achieve the rejuvenation of this sector for farmer’s welfare. The government has been taking various initiatives to counter the challenges faced by farmers.

At present, the size of the domestic seed market is around Rs.15,000 crore, while India’s share in the world seed market is less than 12%. However, the National Seed Policy aims to increase our share in the global seed trade to 10% of by 2020. The new Policy on Seed Development of 1988 has opened the gates for private sector participation in the seed business, to the National Seed Policy, 2002, opening up of FDI in seeds and India’s participation in Organization for Economic Co-operation and Development (OECD) guarantees that quality of seeds that can also be exported with less hurdles.

The Indian seed market is rapidly growing, during the recent past and the hybrid seed market of vegetables has shown remarkable growth. We also give equal attention towards the development of high volume low price food, cereal crops, which are mainly handled by our public sector. Indian seed industry can become a major supplier of seed for the global markets. India has high potential for hybrid seed production with special reference to high value vegetable seeds at cheaper cost as compared to other countries, of its diverse agroclimatic zones, skilled/knowledge human resource and enterprise which offer opportunity for diverse seed production for export especially that of high value hand pollinated vegetables, field crops and flower seeds.

Besides vegetables, the seeds of Hybrid corn, Hybrid paddy, Hybrid pearl millet and hybrid cotton have high potential for export in Asian and African countries. If any bottle neck or constrains are observed by the Seed Industry in achieving the enhanced target of quality seed production, they may bring such issues in to notice of my Ministry and we will try our best to resolve the issues, so that Indian seed industry of public and private sector may fulfill the domestic and international demand.

We are continuously attempting to streamline the seed quality regulatory framework, in order to make it predictable, transparent and progressive, I would like to assure that Government of India is making all out efforts to help seed sector grow more, both domestically and in the international arena. We are committed to see the growth of this sector in a transparent and sustainable manner at a much faster pace.

The APSA is certainly a great opportunity for all the stakeholders in seed sector to brainstorm and deliberate on how to create value to the farmers and the nations. As an international forum, it also provides a unique opportunity to resolve issues and address challenges and come out with action plans and recommendations to the Governments. I urge all the delegates and participants that for the next five days each one of us, should engage and come out with constructive plans to achieve our mission. I wish APSA 2015 all the very best and look forward to a great congress, which should set a new direction and contribute to the development of seed sector and agriculture.

I am sure that the Asian Seed Congress, Goa - 2015 will provide an effective platform for growth of seed business not only in Asia and Pacific regions but also across the continents at global levels”.

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

6.1. M&M debuts in branded pulses

Business Standard | Oct. 20, 2015

Mumbai: Tractor and utility vehicle market leader Mahindra & Mahindra (M&M) announced on Monday that it has forayed into pulses retailing under the brand ‘NuPro’ with a launch price of tur at Rs 210 a kg against the prevailing price range of Rs 180 and Rs 220 a kg.

The company entered the business-to-business (B2B) pulses segment three years ago and launched ‘NuPro’ mustard oil brand recently in Kolkata. Classified as a symbol of nutrition and progression, the brand promises high quality as unpolished, healthy, tasty and less cooking time; and hence, price competitive as well.

M&M created the agri-commodities vertical five years ago, which carries out business of ripening and selling of banana in Delhi market. It also exports grapes. In the last financial year, the company cloaked a turnover of Rs 600 crore, nearly one per cent of the company’s overall revenue. The company has recorded eight-fold growth in the past five years.

“The entire pulses market is estimated at Rs 2 lakh crore annually in India, of which branded players consist of one or two per cent. The largest players recorded the highest turnover of Rs 350 crore, which means huge potential lies ahead for organised and branded players,” said Pavan Goenka, executive director, M&M.

Going forward, the company plans to enter e-retailing and selling of dairy products, for which pilot trials are currently on in Madhya Pradesh. “We have engaged farmers on contract basis to provide end-to-end solution ‘Farm to Fork’ with 600 Samridhi (farmers’ advisory) centres. We did not commit any returns to farmers, but those associated with us have enjoyed good returns,” said Ashok Sharma, chief executive of M&M’s agri business.

The company plans to expand its network of pulses retailing with offerings in all pulses segment apart from branded besan throughout the country in nine months from now. The whole objective of M&M is to control the entire value chain of the products it offers including procurement, storage, transportation and marketing.

“This helps us minimise our post-harvest commodity management losses, which compensate three per cent higher input cost (at five per cent against two per cent by other players in the same field),” said Sharma. So, apart from providing sowing guidance to farmers, the company procures quality output from farmers for marketing. The firm is also looking at corporate farming.

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

6.2. Government allows 100% FDI in five plantation crops including coffee

PTI | Nov. 10, 2015

New Delhi: The government on Tuesday allowed 100 per cent FDI in five plantation crops, mainly coffee, rubber, cardamom, palm oil tree and olive oil tree via automatic route, a move hailed by the industry.

At present, 100 per cent FDI is allowed only in tea plantation through the government approval route.

"In line with this sector, the government has decided to open certain other plantation activity namely, coffee, rubber, cardamom, palm oil tree and olive oil tree plantations also for 100 per cent foreign investment," the Commerce and Industry Ministry said in a statement.

Foreign investment in the plantation sector would henceforth be under automatic route, it added.

Welcoming the decision, Mumbai-based Solvent Extractors Association (SEA) executive director B V Mehta said, "Allowing FDI in palm oil tree is a welcome step and will boost domestic production."

He, however, said that the benefit would be more if the government declares palm oil tree as a plantation crop and exempted from land ceiling act.

The country produces annually around 3 lakh tonnes of coffee, over 8-9 lakh tonnes of rubber and about 17,000 tonnes of cardamom.

6.3. Microfinance institutions grow in the country

TNN, Aparna Desikan | Nov. 17, 2015

Chennai: A report from Microfinance Institutions Network (MFIN), the Self Regulatory Organisation (SRO) of the RBI regulated NBFC MFIs shows increased outreach of the NBFC-MFIs across India. The client base of the MFIs has increased 28% over Q2 fy 14 - 15 which sums up to 2.63 crore clients, covered in over 30 states/union territories.

"AS compared to the previous quarter the industry continues to retain a positive trend of growth. There has been a marked increase both in terms of clients and the loan portfolios of MFIs. This is despite the fact that the largest MFI Bandhan with a portfolio of 5000 crore plus has since become an universal bank," said Ratna Vishwanathan, CEO, MFIN.

The increase is reflected in the disbursements (loan amount), where an increase of 66% compared to Q2 FY 14-15 was seen. Total number of loans disbursed by MFIs grew by 42% and average loan amount disbursed per account is now Rs 16,738, while the figure for Q2 FY 14-15 was 14,590. Productivity ratios for MFIs also continued to move upwards. Average GLP per branch is now at Rs 4.25 Cr, up by 51% YOY and average GLP per loan officer is now Rs 81 lakh, 36% more from the last year i.e. Q2 FY 14-15.

7.1. Maharashtra looking to build a milk brand like Amul

The Hindu, Business Line, Meenakshi Verma Ambwani | Oct. 26, 2015

Maharashtra Chief Minister Devendra Fadnavis has a multi-pronged strategy to reinvigorate existing industries in the State and attract large investments for industrial projects, as it looks to surpass Gujarat on this front by the year-end.

To give a new lease of life to industries such as dairy, Fadvanis told BusinessLine that the State is bringing all stakeholders, including bureaucrats and ministers, together for real-time monitoring of projects and provide rapid clearances.

One such project close to his heart is building a new milk brand. He said Amul is able to sell milk worth ₹25 for ₹70 because it is a big brand. “We are working towards building our own milk brand similar to Amul, which can command a premium in the market,” Fadnavis said. For this, he said, the State is rebuilding its existing dairy farms such as Aarey Dairy and Mahanada with the help of new technologies.

Similar efforts are being taken to revive cooperative banks, to improve the credit framework in the State. “The entire credit framework of Maharashtra has collapsed, which is another reason for the agrarian crisis.” The cause of this collapse, he alleged, was corruption in the past four-five years. Fadnavis said the State will take every step to improve investor sentiment and begin extending automated clearances.

7.2. Competition may not affect Maggi’s market: experts

The Hindu, Businessline, Meenakshi Verma Ambwani | Nov. 6, 2015

Will Nestle India regain the lost market as it sets out to re-introduce Maggi sometime soon? Yes, believe industry experts and analysts.

Retailers and brand experts whom BusinessLine spoke to believe that the company will gain back its market share quickly.

Devendra Chawla, Group President-Food FMCG and Brands, Future Group, said: “I do not think Maggi will be coming back into a market that has seen an increase in competition. Existing brands may have had time to strengthen their position. But when a product that has been missed, and has a strong brand equity makes a comeback, we may all be in for a surprise.” In the past five months, rivals like Yippee Noodles and Wai-Wai have been stepping on the gas strengthening their marketing and distribution networks. According to estimates, the instant-noodles category which was pegged at about ₹3,500 crore, shrunk to about ₹1,000 crore, after the category was hit with the food scarcity scandal.

Brand expert Harish Bijoor said, “Once the company is back on the shelves, it will gain back 90 per cent of the consumer base immediately, as they are waiting for the product. There may be about 10 per cent of the consumers who may not buy into the Maggi that quickly and may still have questions.”

Nirvana Chaudhary, ED at CG Corp Global, which makes Wai-Wai, believes the instant-noodles market is expected to go back to the size of about ₹3,000 crore by next year. Indo-Nissin Foods, which makes Top Ramen Noodles and had gone off the shelves, has also embarked on a comeback strategy. According to sources, the company has started production and has been trying to revive its distribution network. After a print campaign in early October, the company recently launched its television campaign. Aman Mittal, COO at Savemax, said: “Based on interactions with consumers, we believe Maggi’s brand value and taste value is still intact.”

But, Maggi has to be ready for competition, the experts point out. Competition could come from even lesser known brands and new players. Baba Ramdev’s Patanjali has forayed in the instant noodles category. Malaysian firm Inbisco, which launched its Joymee noodles last year, has also been trying to grab the consumer’s attention with a TV marketing campaign and working on stepping up on the distribution. An e-mail sent to the company for comments went unanswered.

8.1. How Goa has become a hotbed for start-up activity and talent

ET Bureau, Ishani Duttagupta | Oct. 18, 2015

Goa is all about sun, sand, siestas and sundowners, right? Completely wrong is what a bunch of young entrepreneurs — mostly in their 20s and early 30s — are doing their best to prove. In fact, all of them are putting their money, talent and faith into setting up diverse startups in a place that is best known as India's tourism hub and party capital. Most have relocated to Goa to set up their businesses and are in various stages of scaling up.

So, why of all places, Goa? The answers vary from an ideal work-life balance to the perfect environment for innovation. Add to that connectivity and physical infrastructure that are fast improving, and a supportive state government that's trimming the red tape, and what you have is a startup paradise.

"While Goa has the advantage of availability of a large number of engineering graduates from the colleges here, there are other unconventional areas such as food processing, clean technologies and solid waste management that are focus areas for the state government and are attracting young entrepreneurs to the state," says DS Prashant, general manager at the Centre for Incubation and Business Acceleration (CIBA) in Goa, a public-private venture set up in April 2012 with support from Department of Science and Technology, government of India, and Department of Science, Technology and Environment, government of Goa.

Another incubator in Goa, set up by the Indian government's Department of Industries Trade and Commerce and the Goa Chamber of Commerce and Industry, is the Goa IT Innovation Centre (GITIC), which mentors and facilitates funding for startups through low-cost infrastructure and access to business networks. "Goa has a strategic location advantage with accessibility via road, rail, sea and airports, which is why entrepreneurs are setting up base here," says Jervis Pereira, director, GITIC. Informal estimates suggest that there are now over 250 IT startups that operate out of Goa.

Adwait Samel, who moved back from Australia a year back to set up a cloud-based IT services startup, Rightscope Technologies, obviously sees the advantages of being in Goa. "After living in Australia for eight years, first as a management student and then as an IT professional, I decided to move back largely because of the education of my two young boys. Here in Goa there are a lot of infrastructural advantages besides of course family support," says Samel, whose wife's family is from Goa. The fact that his company was bootstrapped by CIBA helped him to make up his mind in favour of Goa rather than Pune, his hometown.

Here are seven other startups that chose to bootstrap themselves amidst the surf and sand:

Smart City Slickers

When they were interns at Defence Research & Development Organisation (DRDO) as students of IIT Kanpur's civil engineering department, classmates Amarsh Chaturvedi and Ashwani Rawat realised the huge potential of hyperlocal information systems to make city planning and processes smarter. "We were in fact talking about smart cities and information systems that provided business logic to perform city tasks like municipal taxation, water supply and sanitation and asset management back then," recollects Chaturvedi.

Even though they know that dealing with government-related red tape would probably be their biggest challenge, the duo decided to go ahead. After stints at Jones Lang LaSalle (Chaturvedi) and Trimble Navigation (Rawat) in Gurgaon, the two took the plunge to set up Transerve in 2009. And that's where the Goa connection was made.

"This was our first choice because it made sense to be in a territory where we could easily find early adopters for our products. While in other states, it is typically difficult for startups to reach out to a customer base in the government sector, it was quite easy in Goa, where the bureaucratic structure is much leaner and people are far more accessible," he adds. To be sure, their product was accepted in various government departments including public works department, forest department and Mormugao Port.

Transerve now has clients outside Goa too including municipalities in Maharashtra (Beed and Kopargaon), Uttar Pradesh and Tamil Nadu. Arghyam, a non-profit run by Rohini and Nandan Nilekani, too, is a Transerve client. While initially the duo started up by investing their own savings, Transerve received Rs 20 lakh from IIM-Ahmedabad's Centre for Innovation, Incubation & Entrepreneurship and Rs 25 lakh from CIBA as seed funding, which helped rejig the business model from services to products.

Attracting talent from local engineering institutes is a big advantage of being in Goa. And, as Chaturvedi points out: "We have even started attracting international MBAs for long-term internships — Europeans feel very comfortable in Goa and many of them are looking at gaining work experience in an Indian startup," says Chaturvedi, though, he does add that hiring experienced people for senior roles is a problem.

A 360º Turn

Nikhil Hedge and Amit Bhardwaj shifted base a few months back from Hyderabad to Goa. With good reason: the founders wanted to be in a place where creativity and ideas would flourish. After all, their startup 6Degree is a technology platform for fashion professionals, students, bloggers, employers, designers and photographers — in short everyone who has anything to do with the world of fashion.

"The brand Goa is much more than the stereotypical tag of fun and leisure. Goa is the epicentre of the creative belt and with the presence of several prestigious technical and management institutions, it now boasts of high quality talent that can be comparable to any metropolitan city," says Hegde.

Hegde and Bhardwaj came across CIBA and made a pitch for incubation for 6Degree. The duo who met in Hyderabad where both worked for the Tata group have already got associated with India Beach Fashion Week, which is one of India's top fashion properties. 6Degree is also an official partner to several fashion events such as Lakme Fashion Week, Fiji Fashion Week, and Mysore Fashion Week.

6Degree was founded in Hyderabad in 2014 after Hegde returned to India with an MBA degree from University of Leeds in the UK; the business model of the startup is an extension of his student project there. "The concept of a network for the fashion community was part of my student project and was adopted by the incubator at Leeds University. It also helped me get an investor visa in the UK and I was assigned prominent UK investor Phil Wilson as a mentor," he explains.

6Degree's first round of funding of about $75,000 came from Wilson and Indian entrepreneur and investor Nitin Agarwal. Now CIBA has initiated the next round of funding with $1 million likely to be closed in the next few months. "Besides interacting with the fashion fraternity which has a strong presence in Goa, we are also looking at revival of traditional arts and crafts from this region," says Hegde, who is from Bengaluru and has also worked at KPMG and Bharti Airtel.

Eat, Pray, Work

He moved to Canada for higher education and then stayed on with a job but Luke Sequeira always considered himself a Goa boy. Which is why the return to home base was inevitable. "The immediate trigger for moving back was when a work permit for a cushy job I had back in Vancouver was declined," says Sequeira, who flew back into Goa and turned entrepreneur two years back. And now, funnily enough, he is close to the Canadian government and routinely connects other companies keen to enter the Canadian market.

Sequeira's first startup DCCPER, which works with entrepreneurs around the world to help them build scalable web and mobile apps, is a little less than two years old. "We bootstrapped the company and now have 21 clients in seven countries. Most importantly, we're profitable," he adds.

In 2015, Sequeira cofounded FleetRover, an enterprise fleet tracking and management platform for logistics and supply chain management companies, with partners Chris Atkinson, Hannah Bain, Joshua Silveira and Aprup Shet. "Now we have nine employees and clients in Canada. We plan to launch the product soon in the US and India," he says. Despite the intense involvement with his two startups straddling two continents, he still enjoys his life in Goa. "I no longer feel like I work. I just live in Goa," he says.

For Sequeira, the biggest challenge is about the perception among outsiders about the work culture. "Goa is usually portrayed as a party destination where you do drugs, gamble and drive an open air jeep to the bar," he rues. "I do my best to change this perception through the StartupGoa.org initiative we run, as well as by avoiding driving open air jeeps, especially during the monsoons," Sequeira says with a straight face.

Liqueur is Quicker

He likes to describe himself as Goa-born, Portugal bred and UK-educated. For former Deutsche Bank investment banker Oscar de Sequeira Nazareth, moving back to Goa — after having left for Portugal with his parents when he was just four — was really about "only so much of investment banking that one can take".

"From 8 am to 7 pm every day I was crunching complex equity derivatives products in the 'City' (the financial district of London). Honestly, I needed a break," he says. The break came during a vacation at his family home in verdant south Goa when he tried out an old family recipe for an orange and spice liqueur.

"The result was mindblowing; I had never tasted anything like that at any of Europe's top cocktail bars," he says. Nazareth was spurred into running a quick basic simulation on a spreadsheet, after which he decided to chuck up his high-paying job in the City, put up his tony apartment in London's hip Docklands on rent and move to Goa for good, in March 2012.

"I bootstrapped Armada and started it as a venture to commercialise my family's spice liqueur recipe. And obviously I must have got the formula right because we are now exporting the product to Finland and the UK and have won the spirits world's top medal twice in succession, a feat no Indian product has ever achieved," he proudly says.

Nazareth's challenge in the domestic market is to explain the difference between liqueur and liquor, and find takers for a product priced at Rs 840 a bottle. But he is willing to be patient, and educate people via tasting sessions and cocktail master classes.

The Homecoming

Tyrone D'Souza cut his teeth in the world of mobile advertising at InMobi where he worked for four years across different roles including ad operations and leading the account management team. He was also closely associated in setting up InMobi's China business.

So when it came to turning his dream of becoming an entrepreneur into reality, a mobile performance network was not a difficult business model to zero in on. And locating the business in Goa was even simpler since it was his hometown where he grew up and where his parents run a computer training and education business in Mapusa, a town in the north.

"At Mobobeat our USP is that we work on a cost per install basis, as compared to the traditional ad networks that operate on a cost per click basis," explains D'Souza who moved to Bengaluru for an MBA degree after his studies in Goa.

Mobobeat clients on the advertising side include app developers and ecommerce clients looking to promote their apps and on the publishing side include utility apps and game apps. Spanish investor Luis Martinez manages the tech side from Spain and D'Souza runs the sales and operations from Goa. D'Souza believes that there is no other place in the world offering the quality of life that Goa has.

"Working in Goa is stress-free," he says. Of course there are challenges such as erratic internet connectivity and power outages. Local talent is also reluctant to stay back, but D'Souza reckons that as the startup ecosystem takes shape, that outflow could be stemmed. "We have regular startup meetings where we meet and network with fellow entrepreneurs.

Many Goan entrepreneurs are moving back to set up businesses here. Besides, many foreign nationals too have tied up with local Goans." Clearly, D'Souza and his ilk are keen to bust the cliches of Goa being a land of siestas and sossegado (Portuguese word for a contented life).

In Vacation Mode

Back in 2006, IIT-Kanpur alum Saurabh Nanda had spent 11 months in Goa, working for Synapse Information Services, a marketing and advertising agency. Later, during a five-year stint in various roles at travel portal Cleartrip, he made at least 32 trips to Goa. So it wasn't really a tough decision for him to zero in on the coastal state when he decided to take the plunge as an entrepreneur.

"Since I was bootstrapping the startup initially, Bengaluru and most other places seemed to be too expensive

to set up shop," remembers Nanda, who moved to Goa early in 2012 and was later joined by his wife and fourmonth-old daughter. Between November 2013 and December 2014, Vacation Labs closed two rounds of angel funding in which Zishaan Hayath (of Toppr) and Abhishek Goyal (of Tracxn) participated. In May 2015, a seed round of about $1 million came from Sanjeev Bikhchandani's Info Edge.

His experience at Cleartrip explains why Nanda chose to start up in the travel and tourism business with Vacation Labs. "We are the Shopify (a Canadian firm that provides a platform to online merchants) for travel and tour operators and provide them with an online marketplace for a range of activities. Our customers are empowered with a website for their travel business within minutes, complete with an online booking engine, various digital marketing and distribution tools," says Nanda.

And while Vacation Labs thinks scuba diving and weekend getaways on behalf of its customers, the company runs out of Sky Villa, an idyllic bungalow in Goa's Porvorim district amidst verdant forests, birdsong and balconies with mind-blowing sunset views. Nanda is upbeat about the engineering talent in Goa and hires from the local engineering colleges.

"We also have a lot of interest from young engineers to relocate — for freshers below 27, Goa is almost a dream destination to work in." Nanda, however, points out that finding senior people is not as easy with people not wanting to relocate from the cities where they live as their spouses would not find suitable jobs in Goa." Nanda's wife Rati Bajpai, a classmate from IIT, had no such problems, though; she is now a yoga teacher.

Game for Goa

The idea of starting an online marketplace to cater to the sporting needs of youngsters got wings when Kavita Naik, one of the cofounders of Zooter and a graduate from Agnel Polytechnic in Goa, was trying to find the best cricket coaching academy for her son in Goa. It wasn't proving easy as there was no platform that provided verified reviews or information about such facilities.

This set her thinking and a lunch-table discussion with her friend Aditya Chintawar, an alum of engineering college BITS, Pilani's Goa branch, led to the two kicking off Zooter.

Bootstrapped with funds from friends and family, the two are actively pitching to investors. "India is the capital of the world but there is a lack of intelligent, validated and structured information about coaches, academies, training facilities and the like.

This is the primary reason for building this product — to revolutionise the way cricket (and other sports) is learnt, played and enjoyed not just in India but across the globe," says Chintawar, who gave up a job with Deloitte and moved to Goa from Mumbai to start Zooter. Besides training facilities, the product, which is currently in beta-testing stage, also helps locate sports equipment shops nearby and even sports bars. Users can add their own profiles and reviews and share photos. The decision to move back to Goa for Chintawar was more instinctive than strategic, driven by the years spent on the BITS campus.

While the startup has got off the ground, it is facing teething troubles some of which are related to the lack of a startup ecosystem. "We do miss quality startup events and an exposure to current industry trends. Besides, finding quality talent in terms of coding as well as business skills is also a problem in Goa," says Chintawar. But it looks like he's here to stay. "We're out to prove that despite the problems in Goa, there are also reasons to be here and the entrepreneurial energy is growing," he says.

9.1. India to become the largest cotton producer in the world

IBEF | Nov. 02, 2015

Coimbatore: India is expected to become as the largest cotton producer in the world in FY 2015-16, replacing China, with estimated cotton production of around 400 lakh bales, according to sources in Southern India Mills’ Association (SIMA), the apex body of spinners in the Southern Region. Cotton output in all other major producing countries in the year is anticipated to be lower than the previous season. Global cotton production has been estimated at 23.68 million tonnes during FY 2015-16 which is 8.6 per cent lower than previous season production of 25.90 million tonnes.

Cotton production in China and the US has fallen by 13.3 per cent and 17.7 per cent, respectively compared to previous year. India’s anticipated cotton yield is expected to be lower than last year (524 kg per hectare vs 527 kg last year) due to deficient monsoon. However, overall production may surpass other countries, leading to India emerging as the largest producer next year.

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

9.2. Spices Board eyes US$ 3 bn from exports by 2017

Business Standard | Nov. 02, 2015

Chennai: Union Commerce Minister Nirmala Sitharaman had recently said that it was high time the performance of various boards, which were set up to boost exports, were reviewed given that many of them were not performing as expected.

However, Spices Board seems to be an exception.

Set up to develop and promote Indian spices worldwide, the Spices Board has initiated various programmes to improve the quality, value addition, grading methods, upgradation of processing techniques, and storage facilities, among others.

These measures have been giving good results. Spices exports from India touched Rs 3,976.65 crore ($626.81 million) in the first quarter of 2015-16, compared to Rs 3,059.74 crore ($511.22 million) in the yearago period, a 30 per cent increase. During the first quarter of the current financial year, 215,215 tonnes were exported, compared to 213,443 tonnes a year ago.

In FY15, a total of 893,920 tonnes of spices and spice products valued at Rs 14,899.68 crore ($2.43 billion) were exported, compared with 8,17,250 tonnes worth Rs 13,735.39 crore ($2.27 billion) in FY14. "The substantial increase in exports is the result of market promotion activities by the Board to promote Indian spices globally," said Spices Board chairman A Jayathilak.

Last year, exports were worth $2.4 billion, which the Board expects to touch $3 billion by 2017. At present, India exports 52 kinds of spices. The Spices Board wants to raise the share of value addition, which grew from 10 per cent in 1987 to 52 per cent last year. The target is to make it 100 per cent in 20-25 years. Rejection levels from the European Union dropped to 16 consignments last year from 180 consignments in 2010-11. In the next two years, the target is to bring it to zero.

"Due to stringent measures and testing, we could bring down the rejection rates. Our aim is to make to zero in two years," said Jayathilak. He said his team checks the entire supply chain because contamination can happen anywhere. The samples are routinely sent to foreign labs and the results are compared to the tests in India. All the labs of the Board are internationally accredited.

While the traditional markets remain stagnated, Latin America and Africa markets are growing fast. The Board recently opened two stores in Delhi and two in Kerala. It plans to increase the number of stores through the franchisee model. Jayathilak, however, declined to say how many stores would be added. "We are not here to make profit. We are a statutory body and not a company. We are here to regulate and promote spices," said Jayathilak, adding the Board is also talking to major chocolate companies, including Amul. "We can provide the technical know-how and it is up to them to take it forward. We don't want to get into manufacturing."

THE ECONOMICS OF SPICES' EXPORT

Spices exports from India rose to Rs 3,977 crore ($626.8 million) during the first quarter of 2015-16, against nearly Rs 3,060 crore ($511.2 million) in 2014-15
During the first quarter of FY16, the country exported 215,215 tonnes, compared with 213,443 tonnes in the corresponding period last year
Exports are getting doubled every five years. Last year, it touched $2.4 billion and by 2017, the target is to achieve $3-billion exports
Around 52 different spices are exported from the country
Rejection levels from the EU dropped to 16 consignments last year, from 180 consignments in 2010- 11. In the next two years, target is to bring it to zero.

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

9.3. US plan to mandate FDA audit of farm imports irks India

The Hindu, Business Line | Oct. 28, 2015

India has raised serious concerns over a proposed US legislation that will require agriculture imports to be mandatorily inspected and audited by the US Food and Drug Administration (USFDA). New Delhi fears that once the law is implemented — in about a year from now — it will raise costs for Indian exporters sharply, making exports unfeasible in many cases.

Commerce Minister Nirmala Sitharaman is expected to take up the issue in her meeting with US Trade Representative Michael Froman at the Trade Policy Forum in Washington on Thursday. “The Agriculture Ministry, at a recent dialogue on plant and animal health with US officials, has already pointed out the difficulty that exporters would face if all consignments were to be inspected by USFDA officials. India wants either the law to be repealed or some relaxations made in terms of allowing Indian agencies to carry out the inspection,” a Commerce Ministry official said.

The legislation, called the US Food Safety Modernisation Act of 2011, includes several Bills that would come into force one after the other. The Act requires large-scale exporters to register themselves with the USFDA for inspection and audits by 2017 and medium- and small-scale exporters in the following two years respectively.

Exports on the slide

India’s agriculture exports to the US is already on a downslide, falling to less than $2 billion last year compared with $3.7 billion two years ago, due to an overall slowdown in demand and falling commodity prices. “It is a serious issue for Indian exporters, as getting consignments physically inspected by USFDA officials would require resources for their travel, stay and other expenses, including inspection fee. Inspections may also delay shipments. Moreover, getting audits done by the USFDA would require exporters to furnish information in a way many are not used to,” the official quoted above said. Some small exporters may have to shut shop as the additional costs may make their transactions unfeasible.

Confirmatory assessment

New Delhi wants that if the US goes ahead with the law it should have a confirmatory assessment system, whereby a certification of quality given by India’s local standards bodies such as the Export Inspection Council (EIC) or Food Safety and Standards Authority of India (FSSAI) should be recognised.

“We want that exporters following globally recognised systems, such as the GMP (Good Manufacturing Practices) and the HACCP (Hazard Analysis and Critical Control Points), and certified by the FSSAI, should be recognised by the USFDA,” the official said. India’s primary agriculture exports to the US include guar gum, basmati rice, honey, cereals, processed/fresh fruits and vegetables, milled products, non-basmati rice and jaggery.

- INDUSTRY, MANUFACTURE

10.1. Boeing, Tata Group announce aerospace JV in India

PTI | Nov. 9, 2015

New Delhi: US aviation major Boeing and Tata Advanced Systems on Monday announced a joint venture that will manufacture aerostructures for AH-64 Apache attack choppers, recently ordered by India, and collaborate on integrated systems development opportunities in India.

The joint venture will initially create a manufacturing centre of excellence to produce aerostructures for the AH- 64 Apache helicopter and compete for additional manufacturing work packages across Boeing platforms, both commercial and defence.

"Boeing and Tata Advanced Systems intend to grow the JV partnership in the future with a focus on opportunities to collaborate on development and selling of integrated systems," a statement by Boeing said. Boeing had recently received an order for 22 AH-64E Apache attack helicopters and 15 CH-47F Chinook heavy-lift helicopters. Both are the newest models of these aircraft.

"This partnership will capitalise on India's industrial capability, innovation and talent to contribute to Boeing's long-term competitiveness and position us for future growth in the global marketplace," said Chris Chadwick, president and CEO of Boeing Defense, Space & Security.

Boeing India President Pratyush Kumar said that over the last 12 months, the company has doubled its sourcing from India.

"We are committed to continue that journey," he said.

Boeing and Tata group companies have established partnerships in India to manufacture aerostructures for Boeing's commercial and military aircraft.

Tata Advanced Materials has delivered composite panels for the power and mission equipment cabinets and auxiliary power unit door fairings for the P-8I long-range maritime surveillance and anti-submarine warfare aircraft.

TAL Manufacturing Solutions is manufacturing complex floor beams out of composite materials for the Boeing 787-9. It also provides ground support equipment for the C-17 Globemaster III strategic airlifter.

10.2. Jet orders 75 Boeing 747 MAX at Dubai Air Show

TNN, Saurabh Sinha | Nov. 9, 2015

New Delhi: Signalling ambitious growth plans, Naresh Goyal's Jet Airways has placed an order for 75 Boeing 737 MAX-8 aircrafts. This is the biggest order for Boeing aircraft by an Indian carrier in years. The 737 MAX is Boeing's answer to Airbus' highly successful A-320 NEO.

Jet placed the order at the ongoing Dubai Air Show.

"The announcement marks the largest order in Jet Airways' history and supports the airline's replacement strategy to have the most modern and environmentally progressive airplane fleet. The order, previously attributed to an unidentified customer, includes conversions of 25 Next-Generation 737s to 737 MAX 8s, as well as options and purchase rights for an additional 50 aircraft," a Boeing statement said.

"Incorporating the latest design and technology features, the highly efficient 737 MAX will allow us to drive our operational efficiency and reaffirms our commitment to providing a best-in-class full service travel experience to our guests," said Naresh Goyal, chairman of Jet Airways. "This order is an endorsement of our confidence in the long-term prospects of the Indian aviation sector, which reflects the positive forecast for the country's economy and offers tremendous potential for growth and development."

"Boeing is proud that Jet Airways will be the first airline in India to take delivery of the 737 MAX," said Boeing Commercial Airplanes President and CEO Ray Conner. "The 737 MAX will bring new standards for fuel efficiency and economics, and a premium passenger experience to Jet Airways."

The 737 MAX incorporates the latest technology CFM International LEAP-1B engines, Advanced Technology winglets and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.

The new single-aisle airplane will deliver 20 percent lower fuel use than the first Next-Generation 737s and the lowest operating costs in its class - 8 percent per seat less than its nearest competitor.

11.1. GE, Alstom land $5.6-billion deals to supply Indian Railways

Reuters | Nov. 10, 2015

New Delhi: General Electric and Alstom have won contracts worth a combined $5.6 billion to supply Indian Railways with new locomotives, as the vast but dilapidated state-owned network looks to foreign companies to help it modernise.

France's Alstom has been picked to supply 800 electric locomotives and will also build a factory in Bihar, railways spokesman Anil Saxena told Reuters on Tuesday. The total value of the contract and the new factory is about $3 billion, he said.

GE will meanwhile provide the railways with 1,000 diesel locomotives over the next 11 years, as well as investing $200 million in a plant and maintenance sheds, in a deal worth $2.6 billion that is the US company's biggest in India.

The contracts are two of the first and the largest to be awarded to foreign firms since India last year allowed 100 per cent foreign direct investment in certain parts of its railways, and comes as New Delhi embarks on a huge modernisation programme to overhaul the world's fourth-largest train network.

"In most of our growth markets, localisation is typically a key part of any infrastructure deal we do," Jamie Miller, chief executive officer of GE Transportation, told Reuters on Monday.

GE and Alstom won against competition from rival manufacturers such as Canada's Bombardier Inc and Germany's Siemens.

Keen to upgrade the country's creaking infrastructure, Prime Minister Narendra Modi's government has said it will invest $137 billion on its railways by 2020.

It has also opened up limited parts of the state-owned network to private and foreign investment, luring manufacturers hungry for contracts.

"It will bring this technology to a market that needs it. For them, this is really aligned with 'Make in India,' " GE's Miller said.

The railways is a lifeline for the more than 23 million people who use it every day. It also offers some of the world's cheapest fares to help poor people travel across the country.

India has, however, struggled to generate money to invest and modernise, leaving an ageing and congested network where trains run at an average speed of just 50 kilometres (31 miles) per hour.

GE said the company had received a letter of award from India, and it would now sign a formal agreement before beginning construction of the new factory.

The factories will be built through a public-private partnership model and structured as joint ventures with Indian Railways, which will own stakes in the plants.

Alstom and its Indian subsidiary were not immediately available for comment.

11.2. India must adopt broad gauge for high-speed rail: Siemens Mobility

Mamuni Das, with Tilak Raj Seth | Oct. 19, 2015

Decision-making is getting faster, procurement more decentralised now, says Executive Vice-President The Indian Railways should adopt broad gauge for its proposed high-speed network of over 250 kmph, said Tilak Raj Seth, Executive Vice-President, Siemens Mobility, a division of Siemens Ltd. Siemens has provided signalling and electrification products to the Railways, Delhi Metro, Chennai Metro, Rapid Metro, and is now eyeing business potential in the Railways’ plans for semi-high-speed and high-speed trains, Seth told BusinessLine.

Edited excerpts from an interview:

Siemens is present in the high-speed rail segment across the world. What are your views as India embarks on the high-speed rail project?

Siemens has done high-speed rail works in Europe (Germany, France, the UK), Russia, China and Spain. High-speed rail can change economic growth, as seen in China, Japan and Europe. India is close to what Europe has done, as it is geographically polycentric. Also, India has 25,000 km of electrified tracks (out of 67,000 km of rail network). So, when you have such a network, you also want to create inter-operability. Moreover, if you have a high-speed network, you want trains to run limited times a day. Tracks not getting used in the remaining part of the day can be used to move freight. For instance, Germany runs high-speed trains in the morning and freight at night, because they have a common track gauge.

While India is yet to decide on the gauge — though there seems to be a semi-concrete decision to have standard gauge — we feel India would need broad gauge. Otherwise, the high-speed network will exclude the 67,000-km rail network. Also, inter-operability will help lower unit transportation costs for high-speed. In due course, India’s existing tracks need to be upgraded for higher speeds, and inter-operability will help this.

When Delhi Metro adopted broad gauge, there was a furore as the costs were getting pushed up.…

Delhi Metro wanted to do standard gauge, and the Railways wanted them to have broad gauge to ensure inter-operability. Metros, which are intra-city networks, never become inter-operable with the mainline. But, high-speed is a mainline case. Historically, other countries have high-speed standard gauge network because their legacy networks were so. Also, coaches and locomotives of the mainline network are heavier and have higher crashworthiness than Metro rail cars. Even high-speed trains have high crashworthiness. All this together indicates why high-speed rail should be broad gauge.

As far as the cost is concerned, if China, Spain and Russia are using gauges broader than the standard ones and have tackled the cost element, so can India. As we walk into a national high-speed programme, we must address core issues such as inter-operability. India should also look for alternative methods of funding instead of only aided loans.

Many high speed projects, such as in Taiwan or Channel Tunnel between London and Paris, adopted public-private partnership but had to fall back on government support. What is the most reasonable funding route then?

I think funding is not the issue. The issue is risk distribution between the State and private investor. As long as the revenue, fare box revenue, risk is not put on the private partners, the projects will find a place.

If there is revenue risk, why should a project be put together? And, if there is no revenue risk, why should the State not take it over?

While soft loans may not be available, there are other options, such as supplier finance, multi-lateral funding. The main thing is that cost over the lifecycle cannot be very different even if it is a soft loan, as no lunch is free. Soft loans can also be tied-loans, which limit the vendor pool.

Wouldn’t the same happen in supplier finance?

There could be more than one vendor. If you take European funding, there could be more than one supplier. Funding will have to be a basket of commercial funding and soft funding from wherever the supplier comes.

That would mean a lot of heads together on project structuring…

When the German delegation met the Indians recently, there was an agreement to have a German initiative on high- speed rail, which would mean a lot of heads coming together, including from German government, on technology, operation, financing and training.

Have you seen any change in the functioning of the Indian government of late?

One critical change is that procurement has become decentralised. So, the Minister and Board members take pride in that. Also, decision-making is getting faster and has improved significantly.

12.1. Cluster in Tirupati to make 70 million smart phones a year

The Hindu, Business Line, KV Kurmanath | 21-Oct. 2015

Four major domestic brands are joining hands to set up units at the country’s first phone manufacturing hub – Sri Venkateshwara Mobile and Electronics Manufacturing Cluster – coming up in Tirupati.

Micromax, Celkon, Karbonn and Lava will invest ₹2,000 crore in phases in the 120-acre hub located near Renigunta airport. Indian companies account for 45 per cent of the 24 crore phones sold in the country. Prime Minister Narendra Modi will lay the foundation stone for the hub on Thursday. The hub, which is expected to commence production in the next six months, would have an aggregated capacity of 7 crore smart phones a year.

The hub will also house all the players in the ecosystem that includes manufacturers of earphones and adopters.

“The hub would provide 45,000 direct and indirect jobs when fully completed in the next two years. A couple of Chinese firms Vikin Communications and Gaungdong Wivtak Technology too are setting up units to support the mobile manufacturers,” Celkon Mobiles Chairman and Managing Director Y Guru told BusinessLine.

“Mobile phone manufacturing in 2015-16 will grow by more than 110 per cent compared with 2014-15. The Tirupati hub will create more than 10,000 jobs within a year and we expect this hub to contribute at least 5 per cent of our all-India target to create 15 lakh jobs by the year 2019,” said Pankaj Mohindroo, National President of Indian Cellular Association (ICA).

The ICA had been scouting for a location to set up the hub and had been in talks with various State governments.

Mohindroo, who is also the Chairman of Fast Track Task Force (FTTF), set up by the Centre to promote mobile handset manufacturing eco-system in India, said suitable regulatory interventions and proactive support provided by Andhra Pradesh clinched ICA’s decision in favour of Tirupati.

Sudhir Hasija, Chairman of Karbonn Mobiles, has said that the company would invest ₹250 crore to set up 30 lines, each having a capacity to produce 2,500 smart phones in a single shift. “It is not an assembly facility. We are manufacturing the complete phone. In the first phase, we will build 3 lakh sq ft space,” he said.

12.2. Nasscom partners SAP India to set up 25 NDLM centres

Livemint | Nov. 18, 2015

New Delhi: Nasscom Foundation, a non-profit organisation that’s part of software services industry lobby group Nasscom, on Tuesday said it had partnered with SAP India to establish 25 national digital literacy mission (NDLM) centres in 12 cities across India.

Nasscom Foundation is the government’s industry partner for NDLM, which aims to make more than five million individuals digitally literate in India over the next four years. Part of the Digital India initiative, it envisages making one person in every family digitally literate, imparting IT training to 5.25 million Indians. Under NDLM, a digitally literate person is one who is able to operate electronic devices including mobile phones and tablets, send and receive emails, use social media and search the Internet for information, among other things.

Under the collaboration, SAP India, through Nasscom Foundation will impart basic computer skills at the NDLM centres in Delhi, Uttarakhand, Jammu & Kashmir, Karnataka, West Bengal, Gujarat and Tamil Nadu among others.

The SAP professionals will teach young men and women from underprivileged communities how to send mails, use social media and leverage the Internet to avail of online government services like registering for Aadhaar cards, ration cards and PAN cards, among others.

People who do well in the course will be provided further employable skills and advanced training in topics including coding, HTML5, SAP Lumira and Internet of Things. SAP India also plans to bring 15 of its existing training centres under the NDLM umbrella in the next couple of months, the company said. This is in line with the company’s commitment to train 100,000 individuals in digital literacy over the next three years.

“SAP is committed to the vision of Digital India and strongly believes that it is key to transforming India into a technology-driven entrepreneur superpower,” said Dilipkumar Khandelwal, managing director, SAP Labs India and executive vice president and global head of suite engineering, SAP SE.

The foundation has launched over 75 NDLM centres across India including SAP centres and plans to take this number up to 125 centres by March 2016.

Shrikant Sinha, CEO, Masscom Foundation, said, “The Foundation is well on its way to achieve digital literacy for 5 lakh citizens as earmarked by the government... We are launching a nation-wide digital literacy volunteering campaign wherein each volunteer will train at least two individuals on digital literacy skills through the newly created NDLM-MyKartavya mobile app.”

Last month, Nasscom Foundation partnered with the Indian arm of European digital services provider Atos SE to open four training centres under NDLM.

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

12.3. Lenovo aims US$ 6-bn revenue from India in next 3 years

IBEF | Nov. 19, 2015

New Delhi: Chinese tech major Lenovo is aiming to become one of the top 20 companies in India in the next three years and has set a target of US$ 6 billion annual revenues as compared to the present revenue of US$ 2.5 billion. Lenovo has committed to invest in not just manufacturing but also research and development (R&D).

The company had recently announced manufacturing of smartphones in India, which in future are planned to be exported to other markets. Lenovo also plans to move beyond just manufacturing devices but also software and provide total solutions to sectors like education and health care. Post its acquisition of Motorola Mobility from Google last year, Lenovo and Motorola together have six per cent market share in the Indian handset market.

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

13.1. Anil Ambani-led Reliance Group to further invest Rs. 46,000 cr in Madhya Pradesh

PTI | Bhopal | Oct. 22

Strengthening its presence in Madhya Pradesh, the Anil Ambani-led Reliance Group will invest around Rs. 46,000 crore in sectors such as defence, IT, electronics and energy. The company has also decided to set up a Rotary Wing Helicopter Unit in Bhopal.

In a meeting with state Chief Minister Shivraj Singh Chouhan here, the Reliance Group Chairman committed to invest Rs. 46,000 crore in key areas like defence, information technology, electronics development and energy, an official release said.

Chouhan also briefed Ambani about efforts being undertaken by the government with regard to implementation of the new investor-friendly policy aimed at enhancing investment climate in the state. Madhya Pradesh government will ensure that no problem will come in the way of investments, Chouhan said adding that industries are being encouraged in the state in order to reduce people’s too much dependence on agriculture.

On his investment plans in the state, Ambani said the Reliance Group will invest in Pithampur industrial area near Indore and Bhopal in the defence sector, the release quoted him as saying. “An Integrated Land System Defence Manufacturing Hub in Pithampur and a Rotary Wing Helicopter Manufacturing Unit in Bhopal will be set up with an investment of nearly Rs. 6,000 crore,” it said.

In the area of information technology, the company will set up a world class data storage centre in Pitampur with an investment of Rs. 1,500 crore. These units will be accorded facilities as offered in the Special Economic Zone (SEZ) area, the release said.

The company will invest nearly Rs. 27,000 crore for making ingots and polysilicons used in solar panels. Besides, the group has plans to further invest Rs. 12,000 crore in Sasan Power Project. These projects will generate direct and indirect employment for nearly 70,000 people.

The company has also proposed to set up management institute International School of Business (ISB) in Bhopal, the release said. The group has already marked a significant presence in the state and invested Rs. 35,000 crore in the areas of cement, telecom and financial services.

Reliance will be allotted 400 acres of land in Pithampur and 70 acres in Bhopal for its projects.

14.1. Cera forms jt venture for tile making unit

The Hindu, Business Line | Ahmedabad | Oct. 23 2015

City-based tile and sanitaryware maker, CERA Sanitaryware Ltd has entered into a joint-venture agreement with an Andhra Pradesh-based Anjani Tiles Ltd to set up a ceramic vitrified tiles facility in Nellore, Andhra Pradesh.

CERA will hold 51 per cent stake in the project that is estimated to cost around Rs 68 crore. The plant will have an initial capacity of 10,000 square meters per day of tile manufacturing with further possibility for expansion.

The JV partners would fund the project with a mix of equity of around Rs 36 crore and balance in debt to the tune of Rs 32 crore. The plant will be commissioned by March 2016.

"South is a major market for us. And with new capital of Andhra Pradesh, Amaravathi being announced we see greater scope with increased construction activity there. Also, Andhra Pradesh has announced subsidies to encourage businesses to grow," said Vikram Somani, chairman, CERA Sanitaryware Ltd.

"Of the total production at new facility, about 50 per cent will be consumed in Andhra Pradesh, driven by boost from new city Amaravathi," said Somani adding that he will also explore a possibility to set up another manufacturing facility in Rajasthan to cater to the North Indian market.

"There is a location near Vijaynagar in Rajasthan. We have applied for land and based on the success of this new JV, we will plan the Rajasthan plant," he added.

Till recently, CERA outsourced its tiles manufacturing, which has 12 per cent share in the total revenues of the company.

"Amaravathi will be a big boost for the demand. Also, The plant is close to Ennore and Krishnapatnam ports, hence exports too would be conducive in future," said K V V Raju, chairman of Anjani Tiles Ltd.

Tile industry in India is estimated at Rs 22,000 crore, of which 55 per cent sales come from South India. Even as Cera has expressed its seriousness about the tiles business, out of its turnover of Rs 822 crore for the year 2014-15, about 60 per cent came from sanitaryware, 16 per cent from faucetware and 12 per cent from tiles and rest from lifestyle products.

On Friday, the company posted 13 per cent rise in sales at Rs 225 crore for the second quarter ended September 2015, and a 14 per cent increase in net-profit at Rs 18 crore as against Rs 16 crore in the same period last year.

15.1. ABB India rolls out first 800 kV converter transformer

The Hindu, Business Line, Anil Urs | Oct. 26, 2015

ABB India rolled out the first 800 kilovolt (kV) converter transformer manufactured at its Vadodara facility in Gujarat for the ultra-high voltage direct current (UHVDC) transmission link.

The transport weight of the transformer is around 300 tonnes and it will be installed at PowerGrid’s Agra substation, part of the North East-Agra 800 kilovolt (kV), 6,000 MW, 1,750 km long, UHVDC transmission link. “It is a privilege to be working on such a landmark project. UHVDC is the technology of choice for longdistance bulk power transmission and enables evacuation and transmission of clean energy from the North East to load centres of North India. It also brings cheaper power from the states of Madhya Pradesh and Chhattisgarh to the North Eastern Region with minimal losses,” said Pitamber Shivnani, President, Power Products Division, ABB India.

“We continuously invest in and develop our local capabilities to enable us to make and deliver leading edge technologies in India.”

15.2. Tesla may set up battery unit in India: Elon Musk

Business Standard | Oct. 28, 2015

Bengaluru: Tesla founder Elon Musk has said the company might set up a Gigafactory in India to make lithium ion batteries. “Given the high local demand, a Gigafactory in India would probably make sense in the long term,” Musk tweeted.

The plan, if it materialises, will give a boost to Prime Minister Narendra Modi’s push to get Tesla to share battery technology for powering homes in rural India.

During his visit to the Tesla campus in Silicon Valley last month, Modi had discussed with Musk the potential of setting up a battery-making facility, as well as initiatives in other renewable energy technologies, to address India’s power woes. Modi has set an ambitious target of generating 100 Gw of solar power by 2022.

As of October 22, India had commissioned solar power plants with an overall capacity of 4.57 Gw. The country has the potential to generate 759 Gw of solar power, according to a study by Deloitte and the Confederation of Indian Industry.

Tesla manufactures a power storage device, the PowerWall. But its cost is high and production capabilities relatively low. Still, with India pushing renewable energy technologies such as solar, it is imperative to support such initiatives with low-cost and efficient power storage.

A Gigafactory, which will produce more batteries than the world’s overall production this year, is being built in Nevada in the US. The lithium-ion batteries to be produced there will power Tesla cars, as well as PowerWalls.

On Tesla cars, Musk said, “Auto import duties are prohibitively high. Hoping for a special category for EVs (electric vehicles)…Most of our discussion (with Modi) was on batteries.”

Industry experts say a lithium ion battery factory at massive scale will bring down prices and increase mass adoption, crucial for storage of renewable energy generated through solar or wind. Vineet Mittal, managing director of Welspun Energy says India has the biggest requirement for battery technology for storage than even the developed nations.

"Anyone with disruptive technology for battery storage whether it is Tesla or Panasonic which can provide at price point that is cost effective is welcome. India needs this for distributed power generation in renewables and electrification in rural areas," said Mittal, who is also the chairman of the Assocham Solar Task force. Ather Energy, a Bengaluru-based electric vehicle maker that has investments from Flipkart founders Sachin and Binny Bansal, expects a Tesla factory could spur more battery factory investments in the country.

“In fact Tesla coming to India will be a bigger PR thing. If you take a 5 year window which Tesla will need to setup a Gigafactory in a place like India, we’re going to be seeing a lot more activity. It’s not going to be just Tesla alone. We will see a lot more players getting in,” Tarun Mehta, co-founder and CEO of Ather Energy. “Without many people realising it, battery production that is cell production is going to be the biggest industry to exist over the next decade.”

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

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

16.1. Media & entertainment sector to touch US$100 bn by 2025, says BCG report

Business Standard | Oct. 19, 2015

New Delhi: India's media & entertainment sector will be worth $100 billion by 2025, according to a new report by Boston Consulting Group (BCG) and Confederation of Indian Industry. The sector, currently valued at $17.85 billion, has grown 10 per cent annually in the past five years. It has the third largest TV audience, second largest print circulation, and produces the highest number of films worldwide. The report points out that while contributing 1.7 per cent of the country's gross domestic product (GDP), the media & entertainment segment employs nearly five million people directly and indirectly. Unlike in the West, India's markets retain vast absorption capabilities for new products and businesses.

The report notes the sector in India has been underperforming with advertising providing 0.33 per cent of the GDP compared to the global average of 0.64 per cent. It also falls far behind the immediately larger market of China, which has reached a 'billion media hours a day'. It urges businesses to leverage new consumer and digital trends, pointing to changing patterns of consumption, advertising and operation.

According to the report, there has been a shift in media distribution from conventional television and movie theatres to some 250 million digital screens (smartphones, tablets, laptops and PCs). This number is projected to reach 600 million by 2020. The report warns that new consumption behaviours characterise optimum availability and seamless on-demand, pick-where-you-left models. This will affect advertising.

Advertisements constitute two-thirds of revenue for the print media, which witnessed a six per cent annual growth in the past five years. The report also says the Rs 27,000-crore sector is also disproportionately becoming dependent on regional language circulation, which represents 80 per cent of circulation revenue. Indian markets are reflecting the global trend with the time spent on reading newspapers coming down over the years. Globally, the fall between 2010 and 2014 was 25 per cent. Less than 15 per cent of consumers in developed markets use print as the main source of news, as they compete with social networks.

The report says print media can be a Rs 39,500-crore sector by 2020 if it is able scale up digital operations. Without this, there could be a yearly contraction of five per cent. Broadcast news dominates both access and viewership. Having grown by 10 per cent in the past five years, it currently stands at Rs 60,000 crore. Subscription revenues grew at 10 per cent while advertising income rose nine per cent.

Over-the-top and direct-to-home services offered by companies will also change the revenue structure, the report notes. Among the major hindrances are complicated entertainment tax regime and bitter-sweet relations between the industry and regulators.

Currently, Indians spend 21 hours a week on live television, nominally less than the global average. The report suggests greater investment on content and digitisation. The report takes note of the sheer volume of usergenerated content, which is cheap and challenging. The report places stress on collaboration rather than the dismissive attitude major media establishments have portrayed against them.

Among the sub sectors, the film sector has been made to stand out with relatively brighter prospects. Currently estimated at about Rs 13,000 crore, the sector has grown at the rate of 13 per cent a year in the past five years.

Expansion of screens, increasing multiplexes as well as cable and satellite rights have been cited as the prime reasons for growth. Screen density in India is amongst the lowest in the world (nine per million versus China's 15 and US' 125) indicate potential for further growth, it says.

The report is, however, silent on the growing competition from international news and entertainment media outlets, which have been the first to position themselves in the digital space in the absence of Indian competition.

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

16.2. Online recruitment up 60%: Monster Employment Index

Times of India | Nov. 06, 2015

Chennal: Online recruitments across sectors posted a year-on-year increase of 60% in October, according to the Monster Employment Index, a monthly analysis of online job posting in India.

Production and manufacturing tops the list of industries registering a 112% growth YOY, followed by banking and finance, IT hardware and software, automotive, healthcare (biotechnology, pharmaceuticals and life sciences). Government, PSU, Defence and Oil and power industries showed negative growth.

Geographically, Baroda registered robust growth of 75% in online recruitment, followed by Ahmedabad. Steady growth was observed in all the major cities with Delhi-NCR (36%), Mumbai (62%), Chennai (50%) and Hyderabad (52%) and Bengaluru (54%).

"This observation blends well with the overall focus by the government in enabling an ecosystem of creating more and more jobs. Industry-wise, hiring activity was led by production and manufacturing. It has more than doubled in the past one year with 112% growth in opportunities year-on-year, making it the steepest among industries. This growth, therefore, complements the focus towards building the manufacturing space in the country," said Sanjay Modi, managing director, Monster.com (India, Middle East, South East Asia and Hong Kong).

"The long-term growth momentum between September and October improved by 11%percentage points. This may be attributed to the proposed transformation in reforms such as ease of doing business, and therefore encouraging more FDI" he added.

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

17.1. Govt eases FDI norms in 15 major sectors

Livemint | Nov. 12, 2015

New Delhi: The National Democratic Alliance (NDA) government eased foreign direct investment (FDI) norms across 15 sectors, including defence, civil aviation and broadcasting, to attract overseas funds and boost economic growth, signalling that the ruling coalition will not allow the electoral debacle in Bihar to come in the way of economic reform.

The steps include allowing foreign investment under the automatic route subject to caps in key sectors including defence and removing restrictions in sectors such as construction and single-brand retail. The Narendra Modi government is banking on the measures to improve India's ranking in the World Bank's ease of doing business index and, coupled with measures introduced in recent months, help accelerate job creation-a key electoral promise of the NDA.

India ranked 130 out of 189 countries in the index released last month. It's also seeking to allay concerns that the Bharatiya Janata Party's debacle in the Bihar assembly election may set back the government's economic reforms agenda. On Monday, the government awarded two key railway projects to be built in Bihar to General Electric Co. and Alstom SA.

"FDI is an additionality of resource. This is required if the cycle of economic activity has to go on," said finance minister Arun Jaitley. "Reforms are an ongoing process. There is no finishing line. As and when sectoral requirements so warrant, we will look into it," he said when asked about which sectors will see such changes in the future.

In a move that could help foreign single-brand retailers such as Ikea and Hennes & Mauritz AB, the government said the mandatory 30% domestic sourcing condition will come into force at the time of opening of the first store rather than at the time of receipt of FDI. It also permitted these entities to undertake ecommerce.

The government has also relaxed sourcing norms for single-brand entities that require state-of-the-art technology, a move that could potentially help companies such as Apple Inc. to manufacture in India. The government also raised the FDI limit in news and current affairs television channels and FM radio to 49% from 26% under the government approval route.

In the defence sector, the government allowed foreign investment up to 49% under the automatic route. Also, the cap on foreign portfolio investment and venture capital investments in this sector has been raised to 49%, from 24%, again under the automatic route. Any foreign investment more than 49% or an investment that results in change of ownership will need government approval.

To boost manufacturing, companies will also be permitted to sell their products through the wholesale channel and retail routes including the e-commerce channel without needing any government approval. For foreign investments in private banks, the government has allowed so-called full fungibility. This means that foreign institutional investors or foreign portfolio investors or qualified foreign investors can invest up to the sectoral cap of 74%, provided that there is no change in management and control.

To encourage investments in limited liability partnerships (LLPs), 100% FDI has been allowed under the automatic route in LLPs in sectors where 100% overseas investment is allowed. "The crux of these reforms is to further ease, rationalize and simplify the process of foreign investments in the country and to put more and more FDI proposals on automatic route instead of the government route where time and energy of the investors is wasted," the department of industrial policy and promotion said in a statement.

Further, only foreign investments of more than Rs.5,000 crore in specified sectors need to approach the foreign investment promotion board for approval. That is higher than the previous cap of Rs.3,000 crore. It has also relaxed the requirement for seeking government approvals in case of transfer of ownership and control of Indian companies.

"An extremely welcome step which will go a long way in reviving the investment cycle which is the real need of the hour if India has to be placed firmly back on the high growth path. Some of the changes could go a very long way in promoting ease of doing business and creating an environment to support job creation," said Pranav Sayta, tax partner, EY India.

The government has also brought in some large-scale changes in the construction sector, making it easier for foreign investors to enter and exit. It has removed the restriction of a minimum floor area of 20,000 sq. m in construction development projects and minimum capitalization of $5 million to be brought in within the period of six months of the commencement of business.

A foreign investor will be permitted to exit and repatriate foreign investment before the completion of a project, subject to a lock-in period of three years. However, the lock-in period condition will not apply to hotels, hospitals, special economic zones, educational institutions, and investment by non-resident Indians. The government has also permitted 100% FDI under the automatic route in completed projects. Further, each phase of the construction development project would be considered a separate project for the purposes of FDI policy.

It has also clarified that leasing and rental activities will not come under the definition of real estate. Companies owned and controlled by non-resident Indians will enjoy the special dispensation of being treated as domestic investment.

"There has been a slowdown in the construction sector. Now that interest rates have started falling, we hope that with these measures this sector will see a revival," Jaitley said.

"It may not open the floodgates of investments immediately, but it helps in creating a significant macro impact on the ease of investing in Indian real estate," said Shashank Jain, partner, transaction services, and real estate deal leader, PwC.

Anuj Puri, chairman and country head of real estate consultant JLL India, said the government has done away with both the restrictions with regards to size and minimum capitalization to enable FDI to come into the construction sector in any amount and for any size of project.

"This will have a huge positive impact on the housing sector as a whole, but much more so on the affordable housing segment, which was so far not been a beneficiary of FDI in any significant manner," he said. Other sectors where FDI has been increased to 100% from 74% include non-scheduled air transport service, ground handling services and credit information companies. FDI in regional air transport service will also come under the automatic route.

The government has allowed 100% foreign investment under the automatic route for the plantation sector, allowing foreign investment in coffee, rubber, cardamom, palm oil and olive oil. Only tea plantations are allowed foreign investment as of now.

Vidhi Choudhary and Shrutika Verma in New Delhi and Madhurima Nandy in Bengaluru contributed to this story.

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

17.2. New FDI norms will boost affordable housing segment’

PTI | Nov. 10, 2015

New Delhi: The real estate sector has hailed the government's decision to relax FDI norms for construction industry, saying the move would boost investment in the affordable housing segment.

The government relaxed foreign direct investment (FDI) norms in the construction sector by removing two major conditions related to 'minimum built up area' and capital requirement. This means that any project under construction, regardless of size, can have access to FDI.

It also eased the rules for foreign investors to exit and repatriate their investments.

"This is a very good decision. We expect that a lot of money will flow into the construction sector, which will boost the overall economy and provide jobs," realtors' apex body CREDAI president Getamber Anand told PTI.

CREDAI's president sought more clarity on the requirement of completion of trunk infrastructure for foreign investors to exit from their investments. He demanded that exit should be allowed for phase-wise development of trunk infrastructure.

When contacted, DLF CEO Rajeev Talwar said this would be a "game changer" for the real estate sector, and improve liquidity of developers. "This is a very good package of economic reform which will give huge boost to growth and employment," he said.

Property consultant JLL India's chairman and country head Anuj Puri said, "The government has really liberalised the FDI rules for construction sector. This will bring a lot more excitement and interest from foreign equity players to invest into real estate for development of residential and commercial buildings." The removal of restriction on minimum development area will not only boost affordable housing but inner-city development, he added.

"This will have a huge positive impact on the housing sector as a whole, but much more so on the affordable housing segment, which was so far not a beneficiary of FDI in any significant manner," he added.

18.1. Wyndham to add 42 new hotels in India

TNN, Reeba Zachariah & Shubham Mukherjee | Oct 19, 2015

Mumbai: Stephen Holmes, chairman and CEO of Wyndham Worldwide, the world's largest franchiser of hotel brands, including Ramada and Howard Johnson, prefers checking in as a mystery guest at the company's hotels, spread across multiple countries. The seasoned hotelier knows that, being a mystery guest, he can scrutinize the various touch points that make up a customer's stay at the hotel. But unfortunately, most of the times, he says the hotel staff recognize him, giving away the game.

But the latest trip to Mumbai is for a different purpose. The $5.3-billion company is working with Mahindra Holidays, which is part of Wyndham's RCI time-share exchange network. Wyndham — the biggest seller of time-share properties — has a long association with the Mahindra Group in India. It had launched the Days Inn brand through a joint venture with the Indian conglomerate in 1989.

Though the New Jersey, US-based hospitality chain has been in India for a while (on its own), its presence on the ground is thinner compared to rivals like Carlson Rezidor, owner of the Radisson brand. Wyndham currently has 25 hotels in Asia's third-largest economy compared to Carlson Rezidor that operates over 100 properties. Knowing that it "is present in a small way", the 58-year-old intends to change this as India's growing economy, rising incomes and increasing aspirations of people point towards a boost in business.

"The next-generation Indians have become dedicated to vacations, unlike earlier when there were few takers even in the US and Europe," says Holmes, recalling how the concept of vacation has evolved over the decades. Indians are now ranked among the top travellers, boosting the tourism and hospitality business of not only other nations but also locally. While foreign tourist arrivals into India stood at 75 lakh, domestic travellers were estimated at over 1 billion in 2014.

Wyndham plans to open 1,000 hotels in India in the next 10-25 years, says Holmes. The chain has already touched that figure in China where it had entered at the same time as India - in the 1980s.

Though the India number is ambitious, Holmes, who earlier built his career as a deal maker, has signed 42 properties that will come up over the next three years. He also intends to bring to India the chain's mid-scale brand Super 8 in the near future, a segment which has found traction in India.

The head honcho of hospitality, who has been a regular flyer to India for quite some years, points out that though there are infrastructure challenges, he has noticed a marked improvement in airports and roads. He is optimistic about the country's growth potential and the company's business prospects here. "The time is now and not future. I would like to see it with rose-coloured glasses."

The global slowdown may be a concern for global businesses but Holmes insists that it hasn't shown up in Wyndham's performance, including in some of the most stressed markets of Europe.

Holmes also doesn't see new-age hotel consolidators as a threat, but thinks of them as an additional distribution channel. "We work with them. But at the end of the day, a guest will expect a certain level of service only from the hotel," says Holmes, whose favourite 'hotel' in the world is his home.

18.2. Marriott deal creates world's biggest hotel chain

TNN, Saurabh Sinha | Nov. 17, 2015

New Delhi: The country's largest hospitality player in terms of number of rooms — the Tata Sons-promoted Taj group of Hotels — has been displaced from its top position by the global merger of international hotel chains Marriott and Starwood.

Marriott International Inc's acquisition of Starwood Hotels & Resorts Worldwide Inc. for $12.2 billion would enable the combined entity to not only create the world's largest hotel chain but also the biggest hotel chain in India by rooms. Till August 2015, Marriott and Starwood individually stood at number four and five in the pecking order in terms of room inventory in India with the Taj Group with almost 13,200 rooms cutting across all segments — from luxury to budget — being the market leader. With the merger between the two global chains, the two together would now have 13,500 rooms in India — overtaking Taj, said Manav Thadani, chairman Asia-Pacific of HVS, a hospitality consulting major. Globally, the two have 5,600 hotels with 1.1 million rooms.

Together Marriott and Starwood will offer 13 different brands in India. The top brands for Marriott in India include Ritz Carton, JW Marriott and Marriott, while the top brands for Starwood include St Regis, Westin, Sheraton and Le Meridien. The marquee brand for Marriott in India is Bengaluru's Ritz Carlton and for Starwood, the flagship is Mumbai's St Regis. While St Regis is India's tallest hotel, the JW Marriott Marquis in Dubai is the world's tallest hotel.

"We can expect to see a lot of synergies in each of the markets they operate in and this would potentially include streamlining of operations for both of them. We believe this is a good start and potentially a start to a few more mergers expected to take place around the world," Thadani said.

The biggest impact on the Indian hospitality landscape will come from the huge loyalty programmes these chains run. Marriott Rewards and Starwood Preferred Guest have 5.4 crore and 2.1 crore members, respectively. Marriott will have 30 hotels operational in India by next month, with 45 in the pipeline. "This will be a big pull for guests and make a huge difference for other hotels in India," said a senior official of a leading Indian hotel chain who did not wish to be identified.

18.3. The Lalit announces tie-up with Worldhotels to increase its international visibility

Economic Times | Oct. 19, 2015

New Delhi: Facing stiff competition from international hotel companies offering strong loyalty programmes, The Lalit announced a tie-up with global hotel referral organisation Worldhotels to increase its international visibility.

In exchange for a fee, Worldhotels has added the Bharat Hotel's Delhi, Mumbai, Bangalore and Kolkata properties to its existing portfolio of 450 hotels. The company, which offers services including global marketing, sales, training, e-commerce and distribution and technology, claims to increase The Lalit's sales from international clients by recommending the hotel to business and leisure travellers.

"This will bring a much higher rate and a mix of nationalities," Worldhotels' executive vice president for Asia Pacific, Roland Jegge told ET. This move comes in after hotel companies in India have been paying hefty fees to online travel agency sites like Yatra and Make-MyTrip. "Hotels really want to bring customers back to their own website and networks like ours help them do that at a better value proposition," added Jegge.

Worldhotels is among a growing number of international brands with plans to expand in the Indian hospitality market. "India's GDP, China is cooling down, more businesses setting up," said Jegge. While this tie-up will establish the company's presence in four Indian cities, it is looking at alliances with other Indian hotel brands where The Lalit doesn't have any presence, he added.

With 40% of hotels in India currently part of international chains like The Marriott, Starwood and The Four Seasons, upperupscale Indian brands are struggling to maintain their grip on the Indian hospitality space. The Lalit's centrally located Delhi hotel sees an average occupancy of 65-70% annually.

The Lalit's Keshav Suri added that the company has over 30% of its business coming from international clients.

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

19.1. NTT opens India's largest data centre

Times of India | Oct. 29, 2015

New Delhi: Action is heating up in India with the world's top names like Oracle, Microsoft and Amazon queuing up to open data centres here. NTT Communications, the world's largest data centre company and a unit of the $112-billion Japanese giant, NTT, also has mega plans in the country. On Wednesday, the company, which entered India in 2012 with the acquisition of Netmagic, opened its ninth facility spread over 3 lakh sq ft, the largest in the country, entailing an investment of Rs 700 crore. Tetsuya Shoji, president & CEO, NTT Communications, talks to Christoph Kober & Reeba Zachariah about the Indian data centre scenario.

Excerpts:

What are the factors driving the Indian data centre space?

Data centres are an important part of infrastructure. Several sectors are spurring growth, for instance, ecommerce. Also, a new set of banks is coming to play while the existing ones are becoming more aware of disaster recovery, resulting in them approaching data centres.

What challenges do you see?

Securing reliable access to electricity is the biggest challenge. Other than Mumbai, power supply is a challenge in Bangalore, Chennai, Delhi and Noida where we have our data centres. It is also an opportunity as people are unwilling to invest in fuel and generators to maintain their own data centres. And so, they are more likely to outsource the data centres to us.

Globally, NTT is No. 1 in data centres. How do you see yourself in India?

It is important to be No. 1 but we are not pursuing only scale. We also consider quality to be important. We want customer satisfaction and we want to provide it at a price where we can make appropriate profits.

Netmagic is the fastest growing company in India. We were No. 3 but today we are No. 2 - depends on how you judge. India is where we want to make strategic investments. The latest Mumbai facility is not the last. We plan to have three more data centres in the near future. Whether our growth strategy will be organic or through M&A is a matter of calculation and consideration.

The government has insisted on hosting data centres in the country as data sovereignty is a concern... Data sovereignty rules for some sectors are present almost everywhere in the world. In India, it is for some select sectors like banking wherein you have to host facilities within the country. In Indonesia, data centres for almost all sectors have to be within the boundary. One of the reasons why NTT recently made an acquisition there.

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

19.2. Tata Communications building world’s largest IoT network in India

The Hindu, Business online, Varun Aggarwal | Nov. 03, 2015

Tata Communications is building India's first Internet of Things (IoT) network that will allow millions of connected devices such as smart meters to talk to each other wirelessly even if the device is placed deep inside a building or 50 meters under water.

The company is deploying the Internet of Things network with the help of Low Power Wide Area Network based on LoRa technology for connected devices and IoT applications across Mumbai, Delhi and Bengaluru. “This will be world's largest IoT network,” Tri Pham, chief strategy officer at Tata Communications told BusinessLine. “We see a massive need for a new smart network to enable intelligent solutions for a variety of M2M applications to facilitate a simpler and smarter way of life and at a lower cost of ownership. These trials are just the beginning; we intend to deploy this network across India and invite customers with IoT projects to work with us to test it, end-to-end.”

LoRa is a wireless communication technology dedicated to the IoT / Machine to Machine (M2M) communications network. The new network is a super low-power, secure, bidirectional, communication solution, the company said. The first phase targets to cover 400 million people across Tier 1, 2, 3 and 4 cities. IoT is getting widely adopted across sectors where enterprises and government agencies are using it to monitor electricity meters, industrial machinery, leakages in oil pipelines and even in improving the efficiency of electrical grids.

Gartner forecasts that there will be 4.9 billion connected things globally in 2015, reaching 25 billion by 20202 - more than three times the number of people on earth today.

Unlike GSM and WiFi networks, the LoRa network can enable communications in deep water and up to 50 metres underground. This makes it suitable for use in metro stations and car parks. The signal of the network is extremely strong, cutting through up to seven walls inside buildings and has a 15km range.

20. Venture capital firms continue to step up India start-up investments

Livemint | Nov. 13, 2015

Mumbai: Sequoia Capital, Tiger Global Management Llc and other venture capital (VC) firms have invested a record $4.6 billion so far this year in Indian start-ups, led by consumer Internet companies. The investment, spread across 385 transactions, compares with $2.4 billion that VC companies infused into Indian firms across 385 deals in all of 2014, according to data from VCCEdge, the financial research platform of VCCircle, and Grant Thornton India Llp.

“The investment frenzy in e-commerce and digital Internet companies has really picked up over the last 18 months, and whilst several companies are well-capitalized post these liquidity rounds, we expect continued activity in niche business models, backed by entrepreneurs who have had a successful history,” said Vikram Hosangady, head of transactions and restructuring at consulting firm KPMG India. Still, the pace is expected to slow because “the mood is now more to consolidate and focus on putting in sustainable business models”.

The most active investors in 2015 include Sequoia Capital, Tiger Global Management, Accel India Management Co. Pvt. Ltd, Kalaari Capital Advisors Pvt. Ltd and Helion Venture Partners Llc. In terms of transactions, Sequoia maintained its lead, investing in 48 companies, 17 more than last year; it has invested around $116.92 million, VCCEdge data shows. The deal value includes the total value of the transaction in which Sequoia participated.

Tiger Global leads the table in terms of deal value with investments of $183.73 million (the deal value includes the entire size of each transaction). With 30 deals, it ranks second in the deal volumes chart. Tiger Global has significantly increased its exposure to India this year; it did not rank among the top five investors’ list last year, VCCEdge data show.

Tiger Global and Sequoia capital declined to comment. Emails sent to Accel Partners and Kalaari Capital went unanswered.

“This year, mainly we have seen Sequoia and Tiger Global putting their bets in newer teams and areas like intra-city logistics, food-tech investments, home services, etc.,” said Vishal Pereira, managing director at advisory firm CreedCap Asia Investors.

Logistics firms, financial technology (fintech)-focused companies and hyperlocal business—food and grocery ordering services, home service providers and logistics enablers—also saw heightened deal activity. Until 30 September, investors had pumped $153 million into 20 deals in the financial technologies space (roughly the same they had in food tech, the other flavour of the year), according to data from Venture Intelligence, a research service focused on private company financials.

“We continue to be excited about the consumer online segment and also enterprise software coming out of India. Several of our companies are seeing very strong customer traction in these consumer and enterprise segments,” said Ashish Gupta, senior managing director at Helion Venture Partners, which has invested in 17 firms this year.

The start-ups in which Helion has invested this year include travel app Railyatri.in, analytics firm MoEngage Inc. and online recruitment company Talentpad. Another fund that has been actively investing in Indian start-ups is Blume Ventures, which is raising money for a $60 million second fund.

“We like the possibilities that the smartphone penetration is throwing up and anticipate a surge in fin tech, edu tech, local services and evolution of classifieds into full end-to-end service plays continues to be exciting; media plays in gaming, audio and video continue to be even more exciting in anticipation of data-augmenting smartphones,” said Kartik Reddy, managing partner at Blume Ventures. To be sure, deal activity has slowed in recent months and start-ups have found it difficult to raise sums from VC fund managers.

“During the early part of this year, investors had spread their investment pool and had invested across multiple segments, even competing businesses, but of late they are trying to pick out the winners in the segment and investing in their own portfolio firms to make them stronger,” said Sudhir Dash, managing director at Investec India.

For example, Sequoia has aggressively bet on hyperlocal starts-ups, some of which compete with each other. Sequoia has bought stakes in Grofers (Locodel Solutions Pvt. Ltd), PepperTap (Nuvo Logistics Pvt. Ltd), TinyOwl Technology Pvt. Ltd, Zomato Media Pvt. Ltd, Roadrunnr (Carthero Technologies Pvt. Ltd), Goodservice Labs Pvt. Ltd and Helpchat (Coraza Technologies Pvt. Ltd).

“As the entire market place becomes mature, investors’ point of view towards which companies to invest in is also changing. VCs are looking for companies with profitable margins or models where there is a scope for margins to start improving, revenue generating firms, etc., and the whole euphoria regarding the sector is settling down,” Dash added.

Apart from investments, the industry is experiencing a degree of consolidation. Small start-ups that have found it difficult to scale up or haven’t managed to raise capital, but have products that complement the business of larger rivals have been up for grabs.

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

INDIA & THE WORLD

21.1. Japan offers India soft loan for $15 bn bullet train in edge over China

The Hindu, Business Line | 22 Oct. 2015

505-km project will link Mumbai with Ahmedabad

Japan has offered to finance India's first bullet train, estimated to cost $15 billion, at an interest rate of less than 1 per cent, officials said, stealing a march on China, which is bidding for other projects on the world's fourth-largest network.

Tokyo was picked to assess the feasibility of building the 505-kilometre corridor linking Mumbai with Ahmedabad, the commercial capital of Prime Minister Narendra Modi's home state, and concluded it would be technically and financially viable.

Fast facts

Japan offers loan at less than 1 pct interest

China preparing feasibility study on Delhi-Mumbai route

India planning 10,000 km of high-speed trains

Critics say should improve existing network instead

The project to build and supply the route will be put out to tender, but offering finance makes Japan the clear frontrunner. Last month, China won the contract to assess the feasibility of a high-speed train between Delhi and Mumbai, a 1,200-km route estimated to cost twice as much. No loan has yet been offered.

Japan's decision to give virtually free finance for Modi's pet programme is part of its broader push back against China's involvement in infrastructure development in South Asia over the past several years.

"There are several (players) offering the high-speed technology. But technology and funding together, we only have one offer. That is the Japanese," said AK Mital, chairman of the Indian Railway Board, which manages the network.

The two projects are part of a 'Diamond Qaudrilateral' of high speed trains over 10,000 km of track that India wants to set up connecting Delhi, Mumbai, Chennai and Kolkata. Japan has offered to meet 80 per cent of the Mumbai-Ahmedabad project cost, on condition that India buys 30 per cent of equipment including the coaches and locomotives from Japanese firms, officials said.

Japan's International Cooperation Agency, which led the feasibility survey, said the journey time between Mumbai and Ahmedabad would be cut to two hours from seven. The route will require 11 new tunnels including one undersea near Mumbai. "What complicates the process is Japanese linking funding to use of their technology. There must be tech transfer," said Mital.

Rickety rail

JICA declined to comment on the details of its offer. "The report has already been handed over to India, and the Indian government is now in the process of making a consideration," a spokeswoman said. Toshihiro Yamakoshi, counsellor in the economic section of the Japanese embassy, said Japanese companies were keen to collaborate with their Indian counterparts on the rail project as part of Modi's Make-in-India programme. He said it was too early to provide details of the cooperation.

Tokyo's push in India comes just weeks after it lost out to China on the contract to build Indonesia's first fasttrain link.

Beijing offered $5 billion in loans without asking for guarantees, an Indonesian official said, ending a months long battle to build the line linking Jakarta with the textile hub of Bandung.

Japan's NHK broadcaster quoted Transport Minister Keiichi Ishii as saying that Prime Minister Shinzo Abe had instructed him to step up exports of transport systems to India and Southeast Asia.

"It is very regrettable that a high-speed railway project in Indonesia was awarded to China," he said. China won the Delhi-Mumbai survey after securing clearance from Indian security agencies long worried about China's involvement in Indian infrastructure.

The two neighbours fought a war in 1962 over a border dispute that remains unresolved, though trade between them is booming.

Decision soon

India's cabinet will take a decision on the Japanese proposal over the next few weeks, an Indian railway official said. He said there were lingering concerns about whether the billions of dollars required for high-speed rail might be more usefully spent in modernising the railway system.

"There is a lot of money involved in this. The different departments are weighing the implications. Should we be committing all our resources to a single high-speed line," the railway official said on condition of anonymity."

"The railways have not attempted anything as big as this before in terms of costs," the official said.

India's rickety state-controlled rail system, which moves 23 million people a day, has a poor safety record and is in desperate need of funds to modernise it.

The average speed of trains is 54km/hour, and rail experts have argued that the priority ought to be to improve the speed and safety on existing trains and routes.

21.2. Japan's growing generic market woos more Indian pharma firms

Livemint | Nov. 16, 2015

New Delhi: Four years after the last buyout, more Indian pharmaceutical firms are eyeing acquisition opportunities in Japan, the world’s second largest drug market.

Except Mumbai-based Lupin Ltd, which made its second buyout in 2011 in Japan, none of the Indian drug makers have been able to establish a footprint in the $115-billion Japanese pharma market. Last Friday, ET Now television news channel said Sun Pharmaceuticals Industries Ltd was planning to acquire the Japanese drug portfolio of Swiss firm Novartis to make its entry into Japan.

Mint could not verify the information, and a Sun Pharma spokesperson declined to comment.

Sun Pharma, which acquired Ranbaxy Ltd for $4 billion last year, also plans to raise up to Rs.12,000 crore through convertible debentures or a qualified institutional placement (QIP) for expansion and acquisitions. Japan, where drug sales were estimated at $115 billion in 2013, accounts for nearly 10% of the global pharma market, compared with 38.4% for the US and 20.7% for western Europe, according to a 2014 Deloitte report. “The growth will mainly come from higher generic penetration. The government is keen to have a larger generic share to reduce their healthcare costs,” said Kewal Handa, a former managing director of Pfizer Ltd, the Indian unit of the largest US drug maker.

An ageing population and mounting health costs have prompted the Japanese government to try and increase the presence of generic drug makers, bringing the Japanese market under the radar of Indian pharmaceutical companies.

“Japan’s rapidly ageing population—just over a quarter of the population was aged 65+ in 2013, up from 12% in 1990, and accounting for over 50% of the country’s healthcare costs—is expected to drive demand for pharmaceuticals in 2014-2018,” the Deloitte report said.

The state-funded National Health Insurance scheme covers every citizen in Japan. In 2010, as part of efforts to increase the generic penetration, the government launched a series of reforms targeting 30% of the drug market by 2014 and 60% by 2017, from 18% in 2010.

Besides the reported move by Sun Pharma, other Indian generics makers, including Dr Reddy’s Laboratories and Glenmark Pharmaceuticals Ltd, are exploring options for entering Japanese generics market with their formulation drugs.

“Currently, the Japanese government is pushing heavily for the consumption of generic drugs, from 30% in 2014 to 60% in next couple of year,” said Nilesh Gupta, managing director, Lupin Ltd in his interview in August.

“We see tremendous potential in areas of central nervous system and cardiovascular (drugs) in Japan, and are keen for more acquisition,” Gupta added.

Lupin is the only Indian pharma company to have a presence in the Japanese generic market from which it currently earns about 12% of annual revenue. Till date, Lupin Ltd has made two buyouts in Japan: Tokyobased I’rom Pharmaceutical Co. Ltd in 2011 and Kyowa Pharmaceutical Industry Co. Ltd in 2007. In July, Lupin got shareholder approval to raise up to Rs.7,500 crore via issue of securities.

However, Indian drug makers have several concerns about the Japanese market. “It’s difficult to get higher launch prices unless the drug is innovative and cost effective. The margins are coming down and prices don’t rule high. The Japanese pharma industry has been self-sufficient with many domestic companies and they prefer their local companies over global companies,” Handa said.

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

22.1. WD to acquire SanDisk, co-founded by India-born Mehrotra, for $19bn

TNN & Agencies | Oct. 22, 2015

Hard disk drive maker Western Digital said it would buy SanDisk, led by India-born Sanjay Mehrotra, in a deal valued at about $19 billion, to expand its business that makes flash memory storage chips used in smartphones and mobile devices.

Earlier known as SunDisk, the company was co-founded in 1988 by Israeli immigrant Eli Harari and Mehrotra, both former colleagues at Intel, along with Jack Yuan, a Taiwanese immigrant who had worked with Harari at Hughes Microelectronics.The company changed its name to SanDisk in 1995.

Harari retired as chairman and chief executive officer on December 31, 2010, and was succeeded by Mehrotra as SanDisk's president and CEO. Analysts have said while Western Digital is a major player in the traditional storage industry, it needs access to SanDisk's NAND technology to better compete in the solid-state drive (SSD) market. SSDs are used in cloud computing, data centres, smartphones and laptops."We have been thinking about the opportunity to vertically integrate in terms of NAND," Western Digital's CEO Steve Milligan said on a call with analysts.

The value of the transaction depends on the closing of an investment from Unisplendour, a unit of China's state-backed Tsinghua Holdings, in Western Digital. However, the investment is expected to draw intense scrutiny from both US and Chinese regulators as accusations of cyber snooping increase between the two countries.

The SanDisk acquisition is not expected to impact the closing of the Unisplendour investment, Western Digital said. The hard disk drive maker also said Toshiba, with which SanDisk has an intellectual property-sharing joint venture, is supportive of the deal. SanDisk also uses the Japanese conglomerate's foundries for making chips.

Toshiba was not immediately available to comment. Shares of Western Digital, which suspended its share buyback programme, fell 3% in morning trading. Earlier on Wednesday, semiconductor equipment maker Lam Research agreed to buy rival KLA-Tencor in a deal valued at about $10.6 billion.

23.1. Sunil Bharti Mittal calls upon G20 leaders to commit to internet access for all

TNN, Surojit Gupta | Nov. 15, 2015

Antalya: Sunil Bharti Mittal, chairman, Bharti Enterprises and vice chairman of the International Chamber of Commerce (ICC), on Sunday urged world leaders to commit and invest in developing digital infrastructure to deliver a brighter and more prosperous future to their citizens. He said internet can become the cornerstone of a more inclusive global economic growth.

Mittal underlined the urgent need to bridge the global digital divide and provide easy and affordable access to Information Communication Technologies to millions across.

"If we want to help people feed, heal, educate and employ themselves, we need to ensure they can connect to the internet. The challenge of connecting the world will require us to take many different and complimentary actions in the coming years," said Mittal.

He also stressed the need to support the growth of Small and Medium Enterprises (SMEs), which generate 60% of the world's private sector employment. "Globally, 95% of the enterprises are SMEs and these should be at the core of the global growth strategy outlined by the G20 nations. The SMEs can become a major source of employment opportunities for youth and support a more inclusive economic growth," he said.

He stressed on the need to bring more women and youth into the mainstream economic growth to ensure balanced growth within economies. Skilling and education infrastructure must be developed through enhanced public-private partnerships to ensure a viable talent pool for SMEs. "The global economy is facing considerable headwinds and the unemployment rate amongst youth across the world is at a high of 13%. We must create meaningful opportunities for the young people to avoid social unrest."

Given the challenges facing the global business, Mr. Mittal also highlighted the four-point agenda outlined by the ICC B20 for the revival of the global business environment, to the G20 leaders.

These include ratifying and implementing the World Trade Organization's Trade Facilitation Agreement (TFA).

New WTO research suggests that the TFA could boost global trade flows by an unprecedented US$3.6 trillion, creating more than 20 million jobs in the process. The impact of implementing the TFA would be greater than eliminating all remaining tariff barriers the world over-and could lead to an increase in SME exports by up to 80% in some economies as the internet opens up new market opportunities.

Although 51 countries have ratified the TFA to date, 108 are required to do so for the agreement to enter into force. IBAC members are calling on the G20 economies to do all they can to speed effective implementation of this landmark agreement in the months ahead. Mittal also called for taking taking concrete actions to create more opportunities for women and young people in the labour market.

The global unemployment rate stands at 5.9%. For young people it's 13.1%. Women are also much more likely to be unemployed, under-employed or in less secure jobs. All of this has a major economic as well as social cost.

The global business community is therefore calling on the G20 to commit to a comprehensive strategy to boost youth and female participation.

He also calked for establishing country-specific infrastructure strategies to boost investment in much needed infrastructure projects worldwide.

The world's leading economies need to articulate coherent national strategies to repair and invest in their infrastructure. The launch of the Global Infrastructure Hub under last year's Australian G20 presidency was a major step in the right direction, but more needs to be done to build on this important platform.

Mittal also backed the idea to improve SME access to finance.

Recent research shows that the enormous potential of small businesses is being held back by limited access to reasonably priced finance. To take just one example: SMEs often rely on bank credit to allow them to export, but ICC new data shows that over 50 percent of SME applications for trade finance are now turned down by banks.

23.2. India, Africa trade ministers discuss WTO, economic issues

The Hindu, Business Line | 23 Oct. 2015

`India and African nations discussed issues related to the forthcoming World Trade Organisation (WTO) ministerial meeting in Nairobi and areas of common economic interest at the India-Africa Trade Ministers’ Meeting on Friday.

“India sees Africa as a natural partner and together, we can have a positive influence on the future global economic order,” Commerce & Industry Minister Nirmala Sitharaman said speaking at the meet.

The meeting was attended by trade ministers and officials from 29 countries including Egypt, Algeria, Angola, Zimbabwe, Tunisia and South Africa and eight regional economic councils, according to an official release. Speaking at a joint press conference, Zimbabwe trade minister Mike Bimha said that both India and Africa believed in the strength of the multilateral trade process and had several common interests.

New Delhi is trying to garner support for its demand that the Nairobi ministerial in December should come up with a permanent solution with respect to subsidies given under public procurement programmes for food do not attract penalties.

Bimha, however, did not clarify what position Africa would take on the matter.

Deliberating on areas where India and Africa could gain from each other, Bimha said India had an advantage in areas such as pharmaceuticals, health, technology and small & medium enterprises. “Africa has its natural resources and the capability of its people, which is to our advantage,” he said, adding that India could help Africa in the process of industrialisation, valued addition and infrastructure creation.

Sitharaman pointed out that India had made an announcement of granting duty free tariff preference to Least Developed Countries (LDCs) to open the Indian market to greater exports from African countries.

Since April 2014, the scheme has been further expanded and as of now India provides duty free market access to LDCs for 98.2% of all tariff lines (products). In addition, India has been one of the first countries to provide a services package for LDCs and has also waived visa fees for businessmen from LDC countries travelling to India, the minister said.

23.3. Prez Zuma welcomes Maruti's proposal to make cars in South Africa

HT Business | Oct. 29, 2015

New Delhi: South Africa President Jacob Zuma said on Wednesday that there was a possibility of setting up a joint-venture with Maruti Suzuki to manufacture small, low-cost cars in his country.

Replying to a proposal by Maruti Suzuki chairman RC Bhargava, Zuma said, “this is important because it addresses a particular issue citizens, who are not very rich. Is it possible to form a joint venture? I think there is a possibility.”

Zuma, who was speaking at an interaction with top Indian CEOs, welcomed the investment proposals, saying that his government’s ambitious National Development Plan 2030 offers much potential for Indian businesses. “We must continue to prioritise our business and trade partnerships to address our shared challenges,” he said.

When Rajan Bharti Mittal of Bharti Airtel raised issues related to setting up telecom infrastructure in South Africa, Zuma said he would follow that up. Titagarh Wagons MD Umesh Chaudhary said the company is investing in SA for a rail coach factory.

Highlighting finance as a big issue, Zuma said BRICS bank can address it. He said he will invite Prime Minister Narendra Modi next year, and urge him to bring more businesses.

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

24.1. Essar Projects, Saipem JV bags US$ 1.57 bn contract in Kuwait

Economic Times | Oct. 27, 2015

Mumbai: Essar Projects, in a joint venture with Italy's Saipem S.p.A, has won a $1.57 billion order from Kuwait National Petroleum Company (KNPC) for setting up Al-Zour Refinery Project, Package-4, in the State of Kuwait, the Essar Group's engineering, procurement and construction company said.

The project is expected to be completed by 2019.

"The project marks Essar's entry into the Kuwait project market with the biggest EPC contract by an external client. It also signals a quantum growth in our overseas business, showcasing our capability to collaborate with leading international EPC companies and our competitiveness in the face of tough global competition," said Shiba Panda, Managing Director and Chief Executive Officer, Essar Projects.

The order is a part of the new refinery project at Al Zour in Kuwait, which will have a crude processing capacity of 615,000 barrels per day. KNPC has awarded four contracts for the refinery's construction, worth over $13.2 billion to successful international bidders.

Essar Projects has begun to mobilise resources for the project. With this order, Essar Project's order book is worth $2.8 billion, with projects being executed in nine countries

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

25.1. India, UK to sign deals worth £9 billion

The Hindu, Business Line, Vidya Ram | Nov 12, 2015

The signing of a civil nuclear deal, deeper cooperation on clean energy and climate change, the release of a Railway rupee bond, and the conversion of London into a centre for rupee-denominated Masala Bonds are among an estimated £9-billion worth of deals to be concluded during Prime Minister Narendra Modi’s threeday visit to the UK.

Following bilateral talks at 10 Downing Street with British Prime Minister David Cameron, on Thursday soon after Modi touched down in London, the leaders spoke of their firm intention to take the “bold and ambitious” vision of the strategic partnership to the next level.

Discussions encompassed British involvement in the development of digital cities, and roads, and developing London into a finance centre for the offshore trading of rupee-denominated bonds, as well as cooperation on low carbon, low-cost energy.

“We have very big ambitions for the relationship between the two countries, a central partnership defined and fuelled by the modern and diverse countries we are today,” Cameron said during the meeting.

The relationship with Britain was of “immense importance,” to India, Modi said. “We have decided and agreed to hold regular bilateral summits,” he added. The civil nuclear agreement signed on Thursday was a sign of mutual trust between the two countries.

He also welcomed Britain’s vocal support for making India a permanent member of the UN Security Council. He appreciated the greater cooperation in the areas of finance and business, including the revival of the UKIndia CEO Forum.

“We are looking to increasingly raise funds in London’s financial market… we are pleased that we will issue Railway rupee bonds. This is where the journey of Indian Railways begin.” Modi added that India looked forward to greater cooperation across areas from smart cities, skills and education, to technology research, and security.

Asked about concerns over growing intolerance in India, Modi said that India was a vibrant democracy, which protected “the values of every citizen in accordance with the Constitution. We are committed to that.” He added: “Every incident is a serious incident for us. We do not tolerate such incidents of violence at all.”

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