AAPI: 2016

LISBON, 20th December 2016

Index of this Newsletter

INDIA

INDIA & THE WORLD

21.1. How Indians triumphed in America
21.2. The bald truth is — the Raj ruined us
22. Adani Enterprises announces plan for 1,000 MW solar projects in Australia
23. MAN Truck & Bus expects India to be one of its top 5 non-European markets by 2020
24. India Signs Open Skies Agreement With Six Countries During ICAN 2016
25.1. Claris to sell Baxter its generic injectables business for US$ 625 million
25.2. Carlyle set to acquire stake in vaccine maker Bharat Biotech

* * *

LISBON, 20th December 2016

NEWSLETTER, 20-XII-2016

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1.1. India's solar capacity tops 10GW, shows study

Livemint | Nov. 21, 2016

Mumbai: India’s total installed solar capacity, including rooftop and off-grid projects, has crossed 10 gigawatts (GW), according to Bridge To India, a renewable energy-focused consultancy and research firm.

The country has a target of setting up 100 GW of solar energy capacity by 2022.

India is expected to add new solar capacity of 5.1 GW this year, which is a growth of 137% over last year, Bridge To India said on Friday. It expects annual capacity addition of about 8-10 GW from next year. “The pace of sector activity has picked up tremendously in the last two years because of strong government support and increasing price competitiveness of solar power. India is expected to become the world’s third biggest solar market from next year onwards after China and the US,” the consultancy said in a statement. Amongst states, Tamil Nadu has the highest installed solar energy capacity, followed by Rajasthan, Andhra Pradesh, Gujarat, Telangana, Madhya Pradesh and Punjab. These seven states collectively account for more than 80% of total installed capacity as of mid-November, Bridge To India said.

M&A (mergers and acquisitions) activity in the renewable energy sector, especially in the solar sector, has been on the rise with the entry of global clean energy firms and financial investors, including pension funds and sovereign wealth funds. SoftBank Group, ReNew Power Ventures Pvt. Ltd, First Solar Inc., Tata Power Co. Ltd, Adani Power Ltd, CLP India and Fortum Oyj are some of the prominent solar project developers in the country.

India raised its 2022 solar energy target five-fold to 100 GW from an earlier target of 20 GW as part of the Narendra Modi-led National Democratic Alliance (NDA) government’s efforts to reduce dependence on coalfuelled electricity.

Of the planned 100 GW capacity, 40 GW has to come from rooftop solar projects and 60 GW from gridconnected solar projects. India crossed 1 GW in total installed rooftop capacity last month. Dozens of rooftop solar energy start-ups in India are looking to raise equity funding at a time when the sector needs to speed up capacity expansion, Mint reported on 27 October.

The government’s solar park scheme has been instrumental in tackling the two major hurdles of land

acquisition and power evacuation for project development in the sector, Bridge To India said. “The government originally envisaged developing 20 GW of solar park capacity by 2020 but the scheme has had an enthusiastic response from the private sector and the government is already planning to double this capacity to 40,000 megawatts. Further, eight green energy corridors are under construction, with financial assistance from German development bank KFW, to evacuate and integrate growing share of renewable energy into the grid,” it said.

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

1.2. 99% Indian households are covered by a bank account

Livemint | Dec. 15, 2016

Ever since the government announced the scrapping of high value currency notes on 8 November, bank accounts opened over the past couple of years under the Jan Dhan Yojana (JDY) have become the subject of a raging controversy. While the government spokespersons and their supporters have cited the JDY numbers to stress the universalization of banking in the country, critics have questioned the credibility of those numbers, pointing out that many of the accounts may be fictitious, and may not belong to the true and deserving beneficiaries of the scheme.

Fresh data from an independent and large-scale, nationally representative survey may help put that controversy to rest. The ‘Household Survey on India’s Citizen Environment & Consumer Economy’ (ICE 360° survey) conducted this year shows that the JDY scheme has been a roaring success in getting people to open bank accounts. The survey also shows that a significant chunk of households which have access to banking still don’t use banking instruments to save or invest, which is also consistent with what the official data shows. 99% of households in both rural and urban India have at least one member with a bank account, the ICE 360° survey shows. 91% of urban households have their Aadhaar card linked to their bank accounts. The comparative figure is lower for rural India at 78%. The survey, covering 61,000 households, is among the largest consumer economy surveys in the country and captures data till July 2016.

The survey shows a big jump in banking access compared to 2011, when the last census was conducted. The census showed that only 58.7% households had access to banking. It needs to be kept in mind that while the 2011 figures were based on a complete census, the 2016 figures are estimates based on a survey and hence need to be interpreted with greater caution. Nonetheless, estimates such as these based on a nationally representative survey usually provide a fair sense of the direction of change even if they under-state or overstate the pace of change because of sampling errors.

The survey also shows that in 20% of households with access to banking, the breadwinner (or chief wage earner) does not use banking instruments to save. Some of them may not be using the bank account as it belongs to another member of their household and they may not want to deposit their hard-earned money in someone else’s account. Others may be thwarted by the lack of education. A large proportion (75%) of such breadwinners are either illiterate or have just attended primary school, the data shows. This suggests that the lack of education may be a serious impediment to India’s ambitious financial inclusion agenda.

A notable feature of the ICE 360° survey is that it is representative at the level of economic clusters. Urban India has been divided into four clusters: metros (population more than 5 million), boom towns (2.5 to 5 million), niche cities (1 to 2.5 million) and other urban towns (less than 1 million). Based on a district development index, rural India has been subdivided into three different clusters: ‘developed rural’, ‘emerging rural’, and ‘under-developed rural’. The first category includes districts such as Bathinda (Punjab) and Kangra (Himachal Pradesh). The second category includes districts such as Latur (Maharashtra) and Kamrup (Assam) while the last category includes districts such as Kalahandi (Odisha) and Bastar (Chhattisgarh). The survey shows that 42% of breadwinners who don’t use banks to save despite access to banking in their household belong to under-developed rural areas while only 5% of them belong to metros. Location seems as big a driver of banking usage as education.

The survey also shows that while a greater number of people in under-developed rural areas may save cash at home, a far smaller proportion invest in physical assets (such as gold, jewellery, property etc.,) compared to other regions. Over a quarter of households in metros invest in physical assets but in under-developed rural areas, only a tenth invest in such assets.

The richer income classes save much more than the poorer classes in banks but they also invest more heavily in capital markets (and/or insurance) as well as in physical assets. The survey shows that 65.5% of the bottom quintile had total financial savings (and/or investments) exceeding Rs1,000 during the response period (April 2015-March 2016). Among the top quintile, the proportion was 92.6%.

The median financial savings of the top quintile is 8 times that of the bottom quintile, as per the survey. About 27% of the top quintile reported investing in physical assets but only 5% of the bottom quintile did so, the survey shows. 58% of the top quintile have purchased either capital market products or insurance. The comparative figure for the bottom quintile is just 14%, as per the survey.

The ICE 360° survey was conducted by the independent not-for-profit organization, People Research on India’s Consumer Economy (PRICE), headed by two of India’s best-known consumer economy experts, Rama Bijapurkar and Rajesh Shukla. The urban sample of the survey is comparable to that of the National Sample Survey Office (NSSO) consumer expenditure survey conducted in 2011-12. While the NSSO surveyed 101,651 households, of which 41,968 (41.3%) were urban households, the ICE 360° survey covered 61,000 households, of which 36,000 (59%) are urban households. The rural sample of the ICE 360° survey is less than half of the NSSO sample. Nonetheless, all the estimates of each region have been derived by adjusting for the respective population of those regions.

Tadit Kundu in Mumbai contributed to this story.

This is the eleventh of a 16-part data journalism series on how India lives, thinks, earns and spends, based on the latest results from the ICE 360° survey (www.ice360.in/) conducted by the People Research on India’s Consumer Economy (PRICE) in 2016. The next part will look at indebtedness levels of households.

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

2.1. India has improved by 21 spots as per latest Gender Gap Report of World Economic Forum

Press Information Bureau | Dec. 09, 2016

As per the Global Gender Gap Report 2016 by World Economic Forum, India ranks at 87th in respect of Global Gender Gap Index (GGI) among 144 countries of the World. According to the Human Development Report 2015 brought out by UNDP, India ranked 130 on the Gender Inequality Index among 155 countries. As per the GGR, India has climbed 21 spots to rank 87th in 2016, which is an improvement from being ranked at 108th in 2015. The improvement in ranking has been driven largely by major improvements in education. On education attainment India has moved up from 125th rank in 2015 to 113th in 2016. On economic participation and opportunity too, India has moved up to 136th rank in 2016, from 139th in 2015. On health and survival, it has moved up by one rank over last year to rank 142nd. India ranks 9th on political empowerment in the world, which is a major achievement.

Government of India has taken several measures, interventions and strengthened Institutional mechanism towards the empowerment of women and for elimination of gender gap and inequality. ICDS is being implemented to address the nutritional needs of children and pregnant and lactating women, Matritva Sahyog Yojana for pregnant and lactating women to improve their health and nutrition status. Janani Suraksha Yojana (JSY), implemented with the objective of reducing Maternal and Infant Mortality. Sabla scheme aims at the empowerment of adolescent girls in the age group of 11-18 years, Sarva Siksha Abhiyan (SSA) and Rashtriya Madhayamik Siksha Abhiyan (RMSA) schemes are being implemented to universalize elementary and secondary education respectively, having a strong focus on improving enrolment and retention of girls. Support to Training & Employment programme for Women (STEP) scheme aims to ensure sustainable employment and income generation for marginalized and asset-less rural and urban women. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) helps in economic and social empowerment of women.

Government of India has given utmost priority to end the gender based inequities, reducing disparity between men and women, improving socio-economic status of women and increasing their participation in various fields. The Ministry of Women and Child Development is implementing the following schemes to reduce gender gap and promote gender sensitization; i)The Beti Bachao Beti Padhao has been launched to address the issue of declining Child Sex Ratio on a life cycle continuum basis. ii) One Stop Centres integrated with Women Helpline (181) have been established across the country to provide integrated support and assistance to women affected by violence, iii) Engagement of Mahila Police Volunteers has been initiated to act as a link between police and public.

Several steps and initiatives have also been taken up in school education system such as National Curriculum Framework (NCF) 2005 and flagship programme like Sarva Shiksha Abhiyan (SSA) and the subsequent Right to Education Act (RTE). Kasturba Gandhi Balika Vidyalayas (KGBVs) have been opened in Educationally Backward Blocks (EBBs). Gender Sensitisation is also done through Rashtriya Madhyamik Shiksha Abhiyan (RMSA) which includes Gender sensitization Module- part of In-service training, Construction for toilet for girls, Construction of residential quarters for female teachers and Curriculum Reforms.

This information was given by the Minister of State in the Ministry of Women and Child Development, Smt. Krishna Raj in the Rajya Sabha today.

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

2.2. A new dawn in Renewable Energy- India attains 4th position in global wind power installed capacity

Press Information Bureau | Dec. 19, 2016

The Ministry of New and Renewable Energy (MNRE) has taken several steps to fructify Prime Minister Shri Narendra Modi’s dream of clean energy. The largest renewable capacity expansion programme in the world is being taken up by India. The government is aiming to increase share of clean energy through massive thrust in renewables. Core drivers for development and deployment of new and renewable energy in India have been Energy security, Electricity shortages, Energy Access, Climate change etc.

A capacity addition of 14.30 GW of renewable energy has been reported during the last two and half years under Grid Connected Renewable Power, which include 5.8 GW from Solar Power, 7.04 GW from Wind Power, 0.53 from Small Hydro Power and 0.93 from Bio-power. Confident by the growth rate in clean energy sector, the Government of India in its submission to the United Nations Frame Work Convention on Climate Change on Intended Nationally Determined Contribution (INDC) has stated that India will achieve 40% cumulative Electric power capacity from non-fossil fuel based energy resources by 2030 with the help of transfer of technology and low cost International Finance including from Green Climate Fund. As on 31st October, 2016, Solar Energy Projects with an aggregate capacity of over 8727.62 MW has been installed in the country.

The government is playing an active role in promoting the adoption of renewable energy resources by offering various incentives, such as generation-based incentives (GBIs), capital and interest subsidies, viability gap funding, concessional finance, fiscal incentives etc. The National Solar Mission aims to promote the development and use of solar energy for power generation and other uses, with the ultimate objective of making solar energy compete with fossil-based energy options. The objective of the National Solar Mission is to reduce the cost of solar power generation in the country through long-term policy, large scale deployment goals, aggressive R&D and the domestic production of critical raw materials, components and products. Renewable energy is becoming increasingly cost-competitive as compared to fossil fuel-based generation. In order to achieve the renewable energy target of 175 GW by the year 2022, the major programmes/schemes on implementation of Solar Park, Solar Defence Scheme, Solar scheme for CPUs Solar PV power plants on Canal Bank and Canal Tops, Solar Pump, Solar Rooftop etc have been launched during the last two years.

Various policy measures have been initiated and special steps taken in addition to providing financial support to various schemes being implemented by the Ministry of New and Renewable Energy (MNRE) for achieving the target of renewable energy capacity to 175 GW by the year 2022. These include, inter alia, suitable amendments to the Electricity Act and Tariff Policy for strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO); setting up of exclusive solar parks; development of power transmission network through Green Energy Corridor project; identification of large government complexes/ buildings for rooftop projects; provision of roof top solar and 10 percent renewable energy as mandatory under Mission Statement and Guidelines for development of smart cities; amendments in building bye-laws for mandatory provision of roof top solar for new construction or higher Floor Area Ratio; infrastructure status for solar projects; raising tax free solar bonds; providing long tenor loans; making roof top solar as a part of housing loan by banks/ NHB; incorporating measures in Integrated Power Development Scheme (IPDS) for encouraging distribution companies and making net-metering compulsory and raising funds from bilateral and international donors as also the Green Climate Fund to achieve the target.

ESTIMATED POTENTIAL OF RENEWABLE ENERGY

The increased use of indigenous renewable resources is expected to reduce India’s dependence on expensive imported fossil fuels. India has an estimated renewable energy potential of about 900 GW from commercially exploitable sources viz. Wind – 102 GW (at 80 meter mast height); Small Hydro – 20 GW; Bioenergy – 25 GW; and 750 GW solar power, assuming 3% wasteland

TARGETS

The Government of India has set a target of 175 GW renewable power installed capacity by the end of 2022. This includes 60 GW from wind power, 100 GW from solar power, 10 GW from biomass power and 5 GW from small hydro power. A target of 16660 MW grid renewable power (wind 4000 MW, solar 12000 MW, small hydro power 250 MW, bio-power 400 MW and waste to power 10 MW), has been set for 2016-17. Besides, under off-grid renewable system, targets of 15 MW eq. waste to energy, 60 MW eq. biomass non-bagasse cogeneration, 10 MW eq. biomass gasifiers, 1.0 MW eq. small wind/hybrid systems, 100 MW eq. solar photovoltaic systems, 1.0 MW eq. micro hydel and 100,000 nos. family size biogas plants have been set for 2016-17.

The target set for the various renewable energy sources for the next three years are:

SHARE OF RENEWABLE POWER IN TOTAL INSTALLED CAPACITY

Economic growth, increasing prosperity, a growing rate of urbanisation and rising per capita energy

consumption has increases the energy demand of the country. In order to meet the energy demand, India has total installed power generation capacity of 307.27 GW as on 31.10.2016 from all resources. With 46.33 GW installed renewable power capacity, the renewable power has a share of about 15% to the total installed capacity.

ACHIEVEMENTS

The details of year round initiatives and achievements of the Ministry of New and Renewable Energy are as follows:

Green Power Capacity Addition

A total of 7,518 MW of grid-connected power generation capacity from renewable energy sources has been added so far this year (January 2016 to October 2016) in the country.

A total of 7060 MW of grid-connected power generation capacity from renewable energy sources like solar (3019 MW) and wind (3423 MW), Small Hydro Power (218 MW), Bio-Power (400 MW) has been added during 2015-16 in the country against target of 4,460 MW. During 2016-17, a total 3575 MW capacity has been added till 31.10.2016, making cumulative achievement 46,327 MW.

Sector-wise highlights of achievements

Largest ever wind power capacity addition of 3423 MW in 2015-16 exceeding target by 43%. During 2016-17, a total 1502 MW capacity has been added till 31.10.2016, making cumulative achievement 28,279 MW. Now, in terms of wind power installed capacity India is globally placed at 4th position after China, USA and Germany.

Biggest ever solar power capacity addition of 3,019 MW in 2015-16 exceeding target by 116%. During 2016-17, a total 1750 MW capacity has been added till 31.10.2016, making cumulative achievement 8728 MW.

31,472 Solar Pumps installed in 2015-16, higher than total number of pumps installed during last 24 years i.e. since beginning of the programme in 1991. So far, 92305 Solar Pump have been installed in the Country as on 31.10.2016.

Solar projects of capacity 20,904 MW were tendered in 2015-16. Of these, 11,209 MW capacity already awarded.

A capacity addition of 0.53 GW has been added under Grid Connected Renewable Power since last two and half years from Small Hydro Power plants.

Biomass power includes installations from biomass combustion, biomass gasification and bagasse cogeneration. During 2016-17, against a target of 400 MW, 51 MW installations of biomass power plants has been achieved making a cumulative achievement to 4882 MW.

Family Type Biogas Plants mainly for rural and semi-urban households are set up under the National Biogas and Manure Management Programme (NBMMP). During 2016-17, against a target of 1.00 lakh biogas plants, 0.26 lakh biogas plants installations has been achieved making a cumulative achieveme nt to 49.35lakh biogas plants as on 31.10.2016.

The sector wise achievements from January 2016 to October are as follows:

Programme/ Scheme wise Achievements in Year 2016 (January- October 2016)

Major Initiatives taken by Ministry

Solar Power

Under National Solar Mission, the target for setting up solar capacity increased from

20 GW to 100 GW by 2021-22. Target of 10,500 MW, set for 2016-17 which will take the cumulative capacity to 17 GW till 31st March 2017.

As on date, 19,276 MW has been tendered out, of which LOI issued for

13,910 MW/PPA signed for 10,824 MW.

34 Solar Parks of capacity 20,000 MW in 21 states have been sanctioned which are under various stages of execution.

As on 31.10.2016, a total of 90,710 solar pumps have been installed throughout the country.

Also, A total amount of Rs. 67.01 crore has been sanctioned for preparation of master plans, solar city cells, promotional activities and installation of renewable energy projects and an amount of Rs. 24.16 crore has been released, so far, under Solar City Programme.

Various departments and ministries under central government have collectively committed to deploying 5,938 MW of rooftop solar capacity for their internal power consumption. SECI is aggregating demand for a part of this requirement and helping in procuring rooftop solar systems. SECI has issued a tender for development of 1,000 MW rooftop solar capacity on pre-identified central government/department owned buildings. It is the largest such tender in India’s fledgling rooftop solar market.

Several schemes namely (i) Defence scheme (ii) Central Public Sector Undertakings (CPSUs) scheme (iii) Bundling scheme (iv) Canal Bank/ Canal Top scheme (v) VGF Scheme (vi) Solar Park scheme (vii) Solar rooftops, have been initiated/launched by the Ministry under National Solar Mission which are under implementation.

Under Defence scheme against a target of 300 MW, 347 MW sanctioned, under Central Public Sector Undertakings (CPSUs) scheme against a target of 1000 MW, all capacity sanctioned, under 3000 MW Bundling scheme, Tranch-I: 3000 MW has been tendered, under 100 MW Canal Bank/ Canal Top scheme, all capacity sanctioned, under 2000 MW & 5000 MW VGF Scheme, tenders issued for 4785 MW, and under 20,000 MW Solar Park scheme, 34 Solar parks have been approved in 21 States with aggregate capacity of 20,000 MW.

Solar Rooftop

A target of 40 GW grid connected solar rooftops to be achieved by 2022 has been set. So far, about 500 MW have been installed and about 3,000 MW has been sanctioned which is under installation. All major sectors i.e. Railways, Airports, Hospitals, Educational Institutions, Government Buildings of Central/State/PSUs are being targeted besides, the private sector.

A massive Grid Connected Solar Rooftop Programme launched with 40 GW target. State Electricity Regulatory Commissions of 30 States/UTs notified regulations for net-metering/feed-in-tariff mechanism. Rs.5000 crore approved for solar rooftops. About 500 MW solar rooftop capacity installed till 30.09.2016.

A total sanction of 1300 million dollars has been received from World Bank, KFW, ADB and NDB through which the SBI, PNB, Canara Bank and IREDA will be in the position to fund at the ra te of less than 10%.

Ministry has tied up with ISRO for Geo tagging of all the Rooftop plants using ISRO’s VEDAS Portal.

Wind Power

During the year 2015-16, wind power capacity addition of 3.42 GW was made, which is highest ever wind power capacity addition in the country during a single year. The present wind power installed capacity in the country is around 28.28 GW. Now, in terms of wind power installed capacity India is globally placed at 4th position after China, USA and Germany.

India has a strong manufacturing base of wind power equipment in the country. Presently, there are 20 approved manufacturers with 53 models of wind turbines in the country up to a capacity of 3.00 MW single turbines. Wind turbines being manufactured in India are of international quality standards and cost-wise amongst the lowest in the world being exported to Europe, USA and other countries.

The wind power potential of the country has been reassessed by the National Institute for Wind Energy (NIWE), it has been estimated to be 302 GW at 100 meter hub-height. Online wind atlas is available on NIWE website. This will create new dimension to the wind power development in the country.

India has long coastline where there is a good possibility for developing offshore wind power projects. The cabinet has cleared the National Offshore Wind Energy Policy and the same has been notified on 6th October 2015. Certain blocks near Gujarat and Tamil Nadu coast line have been identified. NIWE is in process of doing the wind resource assessment in these coastal areas.

Comprehensive Guidelines for Development of On-shore Wind Power Projects in the country have been formulated and issued on 22nd October 2016.

Guidelines for implementation of “Scheme for Setting up of 1000 MW Inter-State Transmission System (ISTS) - connected Wind Power Projects” issued on 22nd October 2016.

The Policy for Repowering of the Wind Power Projects has been released on 5th August, 2016 to promote optimum utilization of wind energy resources by creating facilitative framework for repowering.

Small Hydro Power

A capacity addition of 14.30 GW of renewable energy has been reported during the last two and half years under Grid Connected Renewable Power, 0.53 GW from Small Hydro Power.

Biomass Power

Biomass power includes installations from biomass combustion, biomass gasification and bagasse cogeneration. During 2016-17, against a target of 400 MW, 51 MW installations of biomass power plants has been achieved making a cumulative achievement to 4882.33 MW.

Family Size Biogas Plants

Family Size Biogas Plants mainly for rural and semi-urban households are set up under the National Biogas and Manure Management Programme (NBMMP). During 2016-17, against a target of 1.00 lakh biogas plants, 0.26 lakh biogas plants installations has been achieved making a cumulative achievement to 49.35 lakh biogas plants.

Off-Grid Solar Applications

A special programme for 1,00,000 solar pumps launched of which 31,472 Solar Pumps installed in 2015-16, higher than total number of pumps installed during last 24 years i.e. since beginning of the programme in 1991.

Amendments in Tariff Policy to promote Renewable Energy

Enhancement in Solar RPO to 8% by March 2022.

Introduction of RGO for New coal/lignite based thermal plants after specified date.

Ensuring affordable renewable power through bundling of renewable power.

No inter-state transmission charges and losses to be levied for solar and wind power.

Further, pursuant to the revised tariff policy, the Ministry of Power on 22nd July 2016 has notified the long term growth trajectory of RPO for solar and non-solar energy for next 3 years 2016-17, 2017-18 and 2018-19 as under:-

IREDA

Indian Renewable Energy Development Agency (IREDA) has been awarded Mini Ratna Status and the authorised capital of IREDA is increased from Rs.1000 Cr. to Rs.6000 Cr.

New Office Building of MNRE

Foundation Stone Laying Ceremony of ‘Atal Akshay Urja Bhawan’, an integrated headquarters building for the Ministry of New and Renewable Energy was held on 19th October, 2016. The Foundation Stone was laid by Shri Piyush Goyal, Hon’ble Minister of State (Independent Charge) for Power, Coal, New and Renewable Energy and Mines. Installation of 200 MW or more Capacity Solar Power Plant at the Central State Farm at Jetsar, Rajasthan

The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for utilization of 400 hectares of un-cultivable farm land at the Central State Farm (CSF), Jetsar in Sri Ganganagar District, Rajasthan for setting up of a solar Power Plant of capacity exceeding 200 MW. The land is presently in possession of National Seeds Corporation (NSC), a Central Public Sector Enterprise (CPSE) under the administrative control of the Ministry of Agriculture and Farmers Welfare. The Solar Power Plant will be set up by a CPSE, which would be selected through negotiation. The Project, by utilizing un-cultivable land for a Solar Power Project, will yield revenue for NSC and will also generate clean energy for the nation

Green Energy Corridor

Rs.38,000 crore Green Energy Corridor is being set up to ensure evacuation of Renewable Energy. Power Grid Corporation of India Limited (PGCIL) has sought a Loan assistance of US$ 1,000 million from the Asian Development Bank (ADB) comprising of Sovereign guaranteed loan of US$ 500 million and Non-Sovereign loan of US$ 500 million. the Loan would be utilized for funding of the following transmission projects including a project under Green Energy Corridor projects in next 3-4 years:

(i) HVDC Bipole link between Western Region (Raigarh, Chhattisgarh) and Southern Region (Pugalur, Tamil Nadu) - North Trichur (Kerala)- Scheme 1: Raigarh-Pugalur 6000 MW HVDC System.

(ii) HVDC Bipole link between Western Region (Raigarh, Chhattisgarh) and Southern Region (Pugalur, Tamil Nadu) - North Trichur (Kerala)- Scheme 3: Pugalur- Trichur 2000 MW VSC based HVDC System.

(iii) Real Time Measurement/ monitoring scheme.

(iv) Inter State Transmission System (ISTS) associated with Green Energy Corridor as under:

a) Ajmer(New) – Bikaner (New) 765 kV D/c

b) Bikaner(New) – Moga (PG) 765 kV D/c

c) LILO of one circuit of 400kV Bhadla- Bikaner (RVPN) line at Bikaner(New)

d) Establishment of 2x1500 MVA, 765/400 kV S/s at Bikaner (New)

Enhancement of Budget

Ministry’s budget enhanced from Rs.1500 crore to Rs.9,000 crore (Rs.5,000 crore gross budgetary support + Rs.4,000 crore in way of bonds to be raised by IREDA) by 2016-17.

LOWEST SOLAR TARIFFS

Solar tariffs have fallen to an unprecedented low of Rs. 4.34 / kWh through reverse auction for one of six projects of 70 MW each to be put up in Rajasthan under the National Solar Mission. NTPC on 18.01.2016 conducted the reverse bidding for 420 MW solar power projects However, the tariff had further fallen to Rs 3 per unit, which was quoted by Amplus Energy Solutions in an auction for rooftop solar power conducted by Solar Energy Corporation of India (SECI).

SKILL DEVELOPMENT

Surya Mitra Scheme has been launched for creating 50,000 trained solar photovoltaic technicians by march 2020. A total number of 5492 Surya Mitra’s have been trained as on 30.09.2016 and more than 3000 are undergoing training. A network of over 150 Institutions, spread all over the country, have been created for implementing Surya Mitra scheme.

In addition, short term training programmes for small hydro, entrepreneurship development, operation & maintenance of solar energy devices and boiler operations in co-generation plants, have been organised. About 7800 persons have been trained through these short term training programmes during the last two years.

Shri Piyush Goyal, Minister of State (IC) for Power, Coal and New & Renewable Energy launched “Surya Mitra” mobile App at National Workshop on Rooftop Solar Power on 07.06.2016. The GPS based mobile app has been developed by National Institute of Solar Energy (NISE) which is an autonomous institution of Ministry of New & Renewable Energy (MNRE). The Surya Mitra Mobile App is currently available in Google play store, which can be downloaded and used across India. This App is a high end technology platform which can handle thousands of calls simultaneously and can efficiently monitor all visits of Suryamitra’s. The trained Suryamitra’s who opts for entrepreneurship have joined in the Mobile App in several states. These Suryamitras are once again sensitized by NISE on soft skills Customer Relations Management, Punctuality and are now ready to deliver the services.

Other Initiatives

International Solar Alliance was launched as a special platform for mutual cooperation among 121 solar resource rich countries lying fully or partially between Tropic of Cancer and Tropic of Capricorn at COP21 in Paris on 30th November, 2015 to develop and promote solar energy, with its headquarter in India. On 25th January, 2016, the Foundation Stone for the proposed Headquarters of the ISA was laid at Gurgaon, Haryana (India) and its interim Secretariat was inaugurated. The International Steering Committee (ISC) of the ISA has held four meetings so far. The Framework Agreement of ISA has been finalized after discussions with various stakeholders. It was presented in the fourth meeting of the ISC of ISA. The Framework Agreement of ISA has been signed by 20 member countries including India, France, Brazil and others on 15th November, 2016 at Marrakech, Morocco on the side-lines of COP-22.

Bank loans up to a limit of Rs.15 crores will be given to borrowers for purposes like solar based power generators, biomass based power generators, wind power systems, micro-hydel plants and for renewable energy based public utilities viz. Street lighting systems, and remote village electrification. For individual households, the loan limit will be Rs.10 lakh per borrower.

Coal cess has been increased 8 times from Rs.50 to Rs.400/ton in last two years (2014-15) which will make available around Rs.40,000 crore/year for supporting and incentivizing development of Clean Energy projects in the country.

Foreign Direct Investment (FDI) up to 100% is permitted under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act, 2003.

In order to achieve the targets, various initiatives have been taken by the Government which interalia include:

amendments in the Tariff Policy for strong enforcement of Renewable Purchase Obligation (RPO) and for providing Renewable Generation Obligation (RGO);

setting up of exclusive solar parks;

development of power transmission network through Green Energy Corridor project;

identification of large government complexes/ buildings for rooftop projects;

provision of roof top solar and 10 percent renewable energy as mandatory under Mission Statement and Guidelines for development of smart cities;

amendments in building bye-laws for mandatory provision of roof top solar for new construction or higher FAR;

infrastructure status for solar projects;

raising tax free solar bonds;

making roof top solar a part of housing loan by banks/NHB;

incorporating measures in Integrated Power Development Scheme (IPDS) for encouraging distribution companies and making net-metering compulsory

raising funds from bilateral and international donors as also from the Green Climate Fund to achieve the target. and

creation of Surya Mitras for installation and maintenance of the Solar Projects.

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

3.1. India to be most digitised economy in 7 years, says Bill Gates

Economic Times | Nov. 18, 2016

New Delhi: The world will go cashless and India will move quite rapidly to a digital payments economy, said billionaire philanthropist Bill Gates, co-chair of the Bill & Melinda Gates Foundation. Gates, who co-runs the world’s largest private foundation, believes digital transactions will be a game changer, reducing inflation, interest rates and transaction fees. “Digital world lets you track things,” said Gates, pointing out that Nordic countries use very little cash and are now moving debit cards to cell phones. “The world as a whole will go cashless, but predicting for any country when that will happen is very hard,” he said when ET asked him about the future of cashless transactions and economies. “I could be wrong but I will make such a prediction,” said Gates. “Once digital payment banks are enabled in India, which should be any day, as there are eight applications from companies like Paytm and Airtel, combined with other things like direct benefit transfers, universal payments interface and Aadhaar, I think India will go digital quite rapidly. And I think it will be incredibly beneficial.”

On the government’s decision to discontinue Rs 1,000 and Rs 500 notes, Gates said he is favour of

digitisation. “That’s a good thing to do,” Gates told a group of journalists in New Delhi on Thursday. “I have no opinion on demonetisation. You know what it is far better than I do.”

Gates spoke on a wide range of issues, including the Donald Trump presidency. “I don’t have much to say. We will see how he governs. We are technocratic agents and work with any president, prime minister, chief minister. Some are interested, some are less interested. I have not met Trump. I will meet him and see if there are areas of common interest.” Technology titan Gates believes digitisation will be good for every sector—be it finance or healthcare. “If you want Rs 50 transaction to have less than 2% overhead, to be able to send money to relatives, get money when you sell crop etc., digital platforms will let us provide greater financial services than non-digital systems will let you do,” he said. On microfinance, Gates said, “Interest rates are very high and scalability very difficult.

There are modest benefits but not as dramatic as people would like. But as you digitise things, interest rates, transaction fees go down and ability to enable savings and smart savings goes up.” Citing examples of Kenya and other countries where digital payments have increased, Gates said, “The number of shops in Kenya that accept mobile payments has gone up super high. There are places in America where you can’t park your car even if you have cash. They will only take mobile or card payments. These things do take time, but when you have inflation, digital is very advantageous.” The Bill & Melinda Gates Foundation started in 2000 and came to India in 2003. In India, the foundation has worked towards HIV prevention, polio eradication, child health and nutrition and runs various programmes to help vulnerable communities. “Five years back, it looked tough to me, but now we are seeing results. The foundation has spent more than $1 billion in the last five years and that number is on a growth curve. In the next five years, we will spend even more,” said Gates. The government should spend more on healthcare, Gates said. “The government at the Centre and states should allocate more money to health. The numbers I am looking at show that spend on healthcare is very flat as a percentage of GDP. It has gone up, but still inadequate.”

On biometric identity Aadhaar, Gates said, “Today, Aadhaar is not being as widely used as it will be in 10 years from now. If you want to identify people in a way that it is hard to lie (like to transfer digital payments), Aadhaar is the foundation for that.”

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

3.2. India's currency-GDP ratio highest among BRICS nations

Times of India | Nov. 24, 2016

The scramble for cash is well and truly on following the demonetisation of `500 and `1,000 currency notes. But that isn't a surprise as India is increasingly becoming a currency driven economy.

Despite the huge increase in plastic cards and digital transactions in recent years, the currency in circulation as a proportion of GDP (gross domestic product) in India is the highest among emerging economies. The currency-GDP ratio stood at 10.6% at the end of March this year, the highest in 16 years. In fact, India has the highest currency-GDP ratio among BRICS (Brazil, Russia, India, China, South Africa) nations.

Interestingly, China has seen a steady decrease in the ratio over the last 16 years. China's currency-to-GDP ratio, which stood at 14.6% in 2000, hit a low of 9.1% at the end of 2015 for which data is available. The ratio was almost at the same level for India and China between 2008 and 2012. Though Russia's ratio, at 9%, is also quite high, it has also seen a decline over the last five years. The ratio has held steady at around 3% in Brazil for a decade. The ratio has also remained stable at 2.5% in South Africa, the lowest among BRICS nations. Developed countries such as the US, UK and Japan have however seen an increase in their currency-to-GDP ratios. This is because the ratio for developed nations also reflects currency held outside those countries.

The currency-GDP ratio for India, which crossed the 10% mark in 2007-08, has held steady above the double digit mark with the exception of 2009-10 when the global financial crisis roiled economies across the globe and resulted in a sharp slowdown in the Indian economy. The currency in circulation has been growing over the last few years.

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

4.1. 37 Waterways Projects to develop in the next three years

Press Information Bureau | Nov. 18, 2016

New Delhi: A decision to undertake development of National Waterways (NWs) declared under The National Waterways Act, 2016 is based on Techno Economic Feasibility Study and Detailed Project Report, commissioned on each of them, by the Inland Waterways Authority of India (IWAI). This Act has been enforced with effect from 12th April 2016. It has been decided to undertake development of 37 NWs in the next three years. Specified stretches of River Sutlej and Beas have been included in the list of declared NWs as NWs No. 17 and 98 respectively. As per a RITES Report of 2014 on “Integrated National Waterways Transportation Grid (INWTG)” the cost comparison between Inland Water Transport (IWT) mode and rail and road transport is given below:

The significant cost saving shows that the promotion of Inland Water Transport (IWT) would have positive impact on reduction of overall logistics cost. On NW-1 (River Ganga), works have been awarded under the Jal Marg Vikas Project for construction of Multimodal Terminals at Varanasi and Sahibganj and Navigational lock at Farakka and award of work for Multimodal Terminal at Haldia is in the final stage. On NW-2 (River Brahmaputra), Ro-Ro transportation between Dhubri and Hatsingamari has commenced and slipway facilities are being constructed at Pandu. Normal development works are ongoing on NW-3. On NW-4, award for tender for dredging of shoals between Vijaywada and Muktiyala on River Krishna is in the final stage. On NW-5, work for development of fairway in the non-tidal stretch between Erada and Padanipal has been awarded. Tendering for award for projects on the remaining 32 NWs to be undertaken in the next three years will begin from November 2016 and go on till December 2018.

A State-wise list of 111 NWs declared under the National Waterways Act 2016 is as follows

LIST OF 111 - NATIONAL WATERWAYS

This information was given by the Minister of State for Shipping Shri Pon. Radhakrishnan in written reply to a question in Lok Sabha today.

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

4.2. Clearance for 18 New Domestic and International Airports

Press Information Bureau | Nov. 23, 2016

New Delhi: As per the Greenfield Airports Policy- 2008, Ministry of Civil Aviation (MoCA) accords two stages clearances i.e. "site clearance" followed by "in-principle" approval for Greenfield airports. MoCA has granted 'in principle' approval for setting up of 18 Greenfield Airports across the country. Out of these 18 airports, the airport project at Pakyong ( Rs. 553.53 cr approx.) in Sikkim belongs to Airports Authority of India. The Airport projects at Navi Mumbai (Rs. 16704 cr approx.), Sindhudurg (Rs. 350 cr approx.), Shirdi (Rs. 320.54 cr approx. in Phase -I) in Maharashtra, Mopa (Rs. 3000 cr approx.) in Goa, Bijapur ( Rs.150 cr approx.), Gulbarga ( Rs. 13.78 cr approx. in phase-I), Hasan (Rs. 592.07 cr approx.) and Shimoga (Rs. 38.91 cr approx.) in Karnataka, Kannur (Rs. 1892 cr approx.) in Kerala, Kushinagar (Rs. 448 cr approx.) in Uttar Pradesh, Dholera (Rs. 1378 cr approx.) in Gujarat, Dagadarthi (Nellore) (Rs. 193.10 cr approx.), Bhogapuram (Vizianagaram) (Rs. 4502.03 cr approx.) and Oravakallu (Kurnool) ( Rs. 200.49 cr approx.) in Andhra Pradesh are proposed by the respective State Governments while the remaining three i.e. airport project at Durgapur (Rs. 670 cr approx.), Gwalior (Rs. 200 cr approx.) and Karaikal (Rs. 170 cr approx.) are promoted by private developers. The airport projects at Durgapur and Kannur have been completed.

Between 2014 to 2016, MoCA has received the following proposals for setting up of Greenfield Airports: Ankleshwar in Gujarat and Bhiwadi in Rajasthan, Dagadarthi (Nellore), Bhogapuram (Vizianagaram), Tadepalligudem (West Godavari), Oravakallu (Kurnool) and Kuppam (Chittoor) in Andhra Pradesh, Chingleput near Chennai, Gwalior and Singrauli in Madhya Pradesh, Hisar in Haryana, Kothagudem (Khammam) in Telangana, Noida International Airport near Jewar and Saifai (Etawah) in Uttar Pradesh. Out of the above proposals, Government of India has granted 'in-principle' approval to the projects at Bhogapuram,

Tadepalligudem and Oravakallu in Andhra Pradesh and 'site clearance' to Government of Rajasthan for setting up of airport at Bhiwadi and Government of Telangana for setting up of airport at Kothagudem. The Government of Goa has issued Letter of Award to the successful bidder for the new airport project at MoPA in Goa and foundation stone for the airport was laid on 13th November, 2016. The first phase of construction of the airport is likely to be completed in the year 2019.

This information was given by the Minister of State for Civil Aviation Shri Jayant Sinha in a written reply to a question in Rajya Sabha today.

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

5.1. Investment in social firms could rise 8-fold by 2025

Business Standard | Nov. 18, 2016

Social enterprises in the country could attract up to $8 billion in investment by 2025, eight times more than in 2015, due to the scale of social needs and available capital in the fast-growing economy, a study by consultancy firm McKinsey & Company showed.

Businesses designed to bring about social development have mushroomed in India over the last decade. Thousands of Indian start-ups have pioneered solutions aimed at improving services from water and sanitation to health, education and housing.

India has emerged as one of largest destinations in the world for investors keen to put their money into firms doing good, according to the initial findings of the research conducted by McKinsey.

“India is one of the world’s biggest markets for Impact Investing, given the nation's many pressing social needs and an abundance of global capital,” said Toshan Tamhane, Senior Partner at McKinsey, in a statement late on Wednesday.

“Assuming a growth of 20-24 percent based on global rates and strong growth of underlying sectors, we estimate that India’s Impact Investing sector could absorb $6 to $8 billion of capital annually by 2025, provided some critical barriers are addressed by the industry and the government.”Investments in India’s social enterprise sector grew by 15 percent annually from 2010 to 2015, bringing in investments of over $4 billion in social enterprises covering sectors such as microfinance, agriculture, health, education and clean energy.

At least 60 to 80 million lives have been impacted by these social enterprises, said the research, adding the sector had also shown a promising average rate of return of 10 percent, which it said was likely to increase further. “This eight-fold expansion of impact investing in India could make life better for millions and generate competitive returns for investors.”

The full report, “Impact Investing in India – Has the Time Come?”— which is based on interviews with funds, investors and social enterprises — will be released in January 2017.

Investors welcomed the study's initial findings, saying continued investment in India’s social enterprises would benefit millions more poor people as well as generate strong returns. “The findings from the McKinsey report validate our belief that India has the potential to emerge as the world's No. 1 emerging market for impact investing,” said Amit Bhatia, CEO of Impact Investors Council, an industry body.

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

5.2. 256,8 million accounts have been opened across the country till 23.11.2016 under Pradhan Mantri Jan Dhan Yojana (PMJDY)

Press Information Bureau | Dec. 13, 2016

The main objective of Pradhan Mantri Jan Dhan Yojana (PMJDY) is to cover all households with at least one bank account per household. Under the Yojana 25.68 crore accounts have been opened across the country till 23.11.2016.

Claims under PMJDY for life insurance cover of Rs.30000/- to those beneficiaries who open their accounts for the first time from 15.08.2014 to 31.01.2015 and for RuPay Card linked accidental insurance cover of Rs.1.00 lakh are disposed of expeditiously. As on 02.12.2016, 3883 claims under life insurance cover of Rs.30000/- have been received, out of which 3870 claims have been disposed off. As on 02.12.2016, 1675 claims under RuPay card linked accidental insurance cover of Rs.1.00 lakh have been received, out of which 1649 claims have been disposed off.

The performance of the scheme is continuously monitored in the Department through weekly video conference and any irregularity, if comes to notice, is sorted out in consultation with the concerned stake-holder. The Government is also monitoring the number of claims settled and sort out issues, if any, in consultation with concerned stake-holder.This was stated by Shri Santosh Kumar Gangwar, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

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

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

6.1. With 14.8 % average annual growth rate, India stood first in the world in the export of fisheries products

Press Information Bureau | Nov. 22, 2016

New Delhi: With 14.8 % average annual growth rate, India stood first in the world in the export of fisheries products

The aim of Blue Revolution scheme is to increase the fish production and productivity by 8 per cent annual growth rate and to reach 15 million tones mark by 2020: Shri Singh The Union Agriculture and Farmers Welfare Minister Shri Radha Mohan Singh has said that due to rapid increase in fisheries and aquaculture, the income of fish farmers and farmers is constantly increasing and in the coming days it will benefit fish farmers and farmers at a large scale. Shri Radha Mohan Singh said this on

the occasion of World Fisheries Day, today in a ceremony organized by Department of Animal Husbandry, Dairying and Fisheries, the Ministry of Agriculture and Farmers Welfare at Vigyan Bhawan in New Delhi.

Shri Radha Mohan Singh said that development of the livestock is the best strategy for doubling the farmers’ income. Due to this reason the budget for 2016-17 for this department is kept at Rs. 1700 crore, which is 21 % higher than the last year budget. The Union Minister said that it is the matter of pride that this year more than 72 % of the budget has been released for the development of the states, which has never happened in the past. Shri Singh said that now, it is the responsibility of the states to spend it properly and should not do fund parking.

The Union Minister said that fish farming will have three benefits firstly, increase in the farmers income secondly, there will be progress in the country’s export and GDP and thirdly it will ensure nutritional and food security in the country.

Shri Radha Mohan Singh told that from last six months, Department of Animal Husbandry, Dairying and Fishery is formulating many new schemes by its strenuous efforts. The department has launched “Rashtriya Gokul Mission” for the breed improvement of indigenous cows and for cattle, goats and sheep higher breed development; it has launched “National Livestock Mission”. Shri Singh explained that for the year 2014-15, production of milk was Rs. 4.92 lakh crore which was more than 37% from paddy and wheat combined. Accordingly to the estimate for the year 2015-16, there was about Rs. 1 lakh crore value fisheries production within the country.

The Union Minister said that in fish production, India is constantly at the second position after China. Fisheries are a big sector in the country and around 150 lakh people are engaged in fisheries business. India has first place in the world in the area of shrimp fish and it is the largest exporter of shrimp fish. Shri said that taking all fisheries production together, there was estimated 10.8 million tones fish production in the country in year 2015-16, which is around 6.4 per cent of total fish production of the world. India is the second largest country in the world to produce fish from aquaculture (42.10 lakh tones). It contributes about 6.3 percent in global aquaculture. From the last decade, where the average annual growth rate of export of fish and fisheries production in the world remaining 7.5 per cent, Indian remain at the first place with an average annual growth rate of 14.8 per cent in the export of fisheries product.

Shri Singh said in the last two and half years, his government has constantly made new schemes in the interests of fisheries sector and farmers and has implemented them successfully throughout the country. Agriculture Minister said that success of fisheries is also a result of constant efforts of the government. World Fisheries Day is also being organized from the last two years after the formation of the government. The Minister said that Hon’ble Prime Minister of India, Shri Narendra Modi has given the slogan and vision for the complete development of India-to double the income of the farmers. To achieve this target, government has laid emphasis on the development of the fisheries and its target is to double the income of the fishers, fishermen and farmers by 2022 through aquaculture and marine fisheries.

Shri Radha Mohan Singh told that with a fish production of 72.1 lakh tones from the Indian fisheries, India has second place in the world. India can achieve about 8 per cent growth rate in Indian fishery. The Minister said that looking at the large potential in the development of the fisheries, Hon’ble Prime Minister Shri Narendra Modi has called for “Blue Revolution” in the field of fisheries. Thereafter, ministry has merged all the existing schemes and started a Rs. 3000 crore umbrella scheme “Blue Revolution; Integrated Development and Management of Fisheries”. This scheme includes in land fisheries, aquaculture, marine fisheries comprising of deep sea fishing, mariculture and all the activities of national fisheries development board (NFDB).

Shri Singh informed that Department of Animal Husbandry, Dairying and Fisheries has prepared a National Fisheries Action Plan 2020 (NFAP) for the next five years to increase fish production and productivity and to achieve the target of blue revolution. In this Action Plan all the different fisheries resources of the country like ponds and tanks, wetlands, brackish water, cold water, lakes reservoirs, rivers and canals and marine sectors are included. All the states / UTs have been requested to prepare State Action Plan (SAP) for the next five years to achieve the objective of blue revolution according to NFAP 2020. The Minister said the aim of Blue Revolution scheme is to increase the fish production and productivity by 8 per cent annual growth rate and to reach 15 million tones mark by 2020. Efforts are being made to bring a “National inland fisheries Policy” along with new “National Marine Fisheries Policy”, which will decide an overall and integrated growth frame work in the area of inland fisheries throughout the country.

Shri Radha Mohan Singh said that around 26.869 hectares area has been developed for the aquaculture which has benefited 63,372 fishermen. He said that during the last two years, under fishermen welfare, construction of 9,603 fishermen houses have been assisted whereas 20,705 fishermen have been trained and around 50 lakh fishermen have been provided with annual insurance assistance.

The Minister of State for Agriculture and Farmers Welfare Shri Sudarshan Bhagat, Secretary, Department of Animal Husbandry, Dairying and Fishery, Shri Devendra Chaudhry and other officers of various Ministries and Departments were also present on the occasion

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

6.2. Mahindra to purchase Netherlands' OFD Holding for €5 million

Livemint | Dec. 06, 2016

Mumbai: Mahindra & Mahindra Ltd, through its unit Mahindra Agri Solutions Ltd (MASL), has agreed to acquire a stake of up to 60% in the Netherlands-based fruit distribution company OFD Holding BV for around €5 million (approximately Rs36 crore), it said in a statement on Monday.

The group has signed a definitive agreement to acquire the stake.

“…we have entered into a partnership with OFD Holding BV, which takes us closer to achieving our vision of being a significant player in grapes. We have been working with farmers in India for a long time and this association will bring a lot of synergy by giving access to new markets to our farmers,” MASL managing director and CEO Ashok Sharma said.

Mahindra and OFD already have a supplier-customer relationship which shall be further strengthened to address market needs. The acquisition will provide access to large sourcing base to both the companies across the globe i.e India, South American countries and South Africa as well as a distribution base in Europe and China.

The deal is expected to be completed by the end of January 2017.

Vikram Puri, executive vice president of Mahindra Agri Solutions said, “Our investment into OFD Holding BV gives us a presence in the European and Chinese markets, allowing us to reach new customers and strengthen our relationship with existing customers.”

OFD Holding is a fruit import and distribution company operating through its subsidiaries in Europe and China on the market side and South America on the sourcing side.

“India is an increasingly important supplier of grapes to our markets and Mahindra is one of the largest exporters, which is giving us access to a growing volume of excellent quality grapes. We are looking forward to intensifying our cooperation with the Mahindra team and the growers, to jointly develop innovations, new markets and customers,” said Corne van de Klundert, MD of OFD Holding BV & Origin Fruit Direct BV.

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

7.1. Byju's learning app in US, UK with Zuckerberg foundation support

Business Standard | Nov. 25, 2016

Bengaluru: Byju's, Bengaluru's multimedia educational content firm aimed at improving learning for high school kids in India, will take its product to markets such as the US and the UK, thanks to the Chan-Zuckerberg initiative, the investment arm of Facebook founder Mark Zuckerberg.

Byju's video tutorials have teachers simplifying concepts with help of animation aimed at improving learning in high school kids. The underlying analytics engine learns user habits, identifies gaps and suggest ways to improve learning, a contrarian approach to the traditionally focused rote learning.

The use of technology not just to deliver but improve learning got the Facebook founder's interest, whose arm that is focused on improving education is taking it to the Western markets. Byju's team in Bengaluru will customise and fine tune the India-focused content, as Raveendran says it is almost like redoing a movie, to appeal to K-12 and below equivalent students in the US. This would take as much as 24 months to launch.

"They (Chan-Zuckerberg Initiative) will give us reach and initial advantage in terms of recognition in those markets since most of the students are on Facebook. We expect good support both in terms of reach for international expansion and developmental support in terms of future technology," said Byju Raveendran, founder and chief executive officer of BYJU's. He expects the product to be launched within the next 18-24 months. "We have a digital library that can be customised for global markets in the K-12 segment."

In September, Zuckerberg's arm joined other investors to fund $ 50 million in Byju's, whose founder

Raveendran began as a tutor helping friends crack the competitive common admission test for Indian Institute of Management. Byju's expanded his role to lectures in stadiums, inspiring students to crack exams by understanding concepts than just by rote.

This also helped him to launch Byju's, whose engineers and content creators, have seen their smartphone app downloaded 6.5 million times, of which nearly 300,000 people pay an annual subscription fee to exploit the full features of the app. Raveendran, who says that nine out ten paid users repeat the purchase. It is used across more than 1700 cities and towns in India.

Byju's earned a revenue of Rs 115 crore in 2015 and is expecting to double the revenue this year.

Raveendran says his team would soon launch courses that would be aimed at primary school students. For Byju's, the fight is with the time. "In India, we fight with the school and tuition hours of the student," he explains. Currently, the average time spent on the app being 40 minutes a day. What a teacher can cover in a one-hour class, the company wants to do in one-third of the time. Raveendran claims that the most number of downloads of his app are done by students. The company's conversion rates have been more than five per cent historically and 6.5% over the last six months.

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

7.2. In order to facilitate the move towards cashless transactions, the Government has directed the banks to install an additional one million new PoS terminals by 31st March 2017

Press Information Bureau | Dec. 07, 2016

New Delhi: As part of the plan to expand the digital payments eco-system and facilitate the move towards cashless transactions, the Government has decided that an additional one million new PoS terminals should be installed by 31st March 2017. Towards this end, banks have already placed orders for 6 lakh PoS machines and another 4 lakh PoS machines are likely to be ordered in the next few days. The country today has about 15 lakh PoS terminals across different merchants to facilitate card based payments.

A special drive has also been undertaken jointly with Ministry of Labour & Employment and States’

Administration to open banks accounts for unorganized labour by holding camps at various locations. A total of 2,73,919 camps have been organized so far in which 24.54 lakh accounts have been opened. In the light of the Government’s decision to demonetize Specified Bank Notes w.e.f. the midnight of 8th November 2016, banks are making all out efforts to facilitate genuine transactions. Appropriate action is being taken against individuals involved in irregular and unauthorized activities. Since 3rd December 2016, action against 7 officials of Public Sector Banks (PSBs) have been taken. In addition, audit has been taken-up in few branches of Public Sector Banks (PSBs). The Concurrent Audit is also being initiated as per the requirement and under the extant guidelines of RBI.

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

8.1. Raymond partners with Khadi and Village Industries Commission to launch new clothing line

Economic Times | Dec. 07, 2016

Mumbai: Fabric and apparel major Raymond has partnered Khadi and Village Industries Commission (KVIC) to introduce a new line of clothing under the brand Khadi by Raymond, which will directly compete with Fabindia.

KVIC will certify Raymond to use Khadi mark to sell ready-made garments and fabric which will be available at KVIC and Raymond outlets across the country.

"Khadi is looking for an economic revolution and Raymond has technical expertise as well as significant global presence. This is a perfect match", said Sanjay Behl, CEO Raymond. "Our idea was really to own the complete value chain by getting directly into the source of Khadi in India and the most widest and proficient in Khadi is KVIC," he added.

The initiative is taken under the KVIC Act that permits it to promote the sale and marketing of Khadi or products of village industries or handicrafts and forge links with established marketing agencies.

As per the signed MOU, Raymond has agreed for a guaranteed initial procurement of a substantial amount of Khadi fabrics from the 2300 clusters under KVIC in the initial year.

Apart from retailing the brand, Raymond will provide technical and design expertise to Khadi manufacturing clusters for crafting readymade garments for its apparel brands.

"This is historic for us because a typical government organisation is joining hands with a private company like Raymond. Despite having the best products in the world, we could not take Khadi to the globe because of very limited resources. But this partnership will allow us to do that," said VK Saxena, KVIC chairman. According to KVIC this joint venture is also a step towards making a radical shift in people's perception of Khadi from a fabric that stands for nationalism to a fabric that stands for fashion.

The association will add an incremental employment of 2.1 lakh man hours for spinners and weavers. In the past, Raymond has had similar associations with the handloom sector which included hand-crafted khadi products as well but have never branded and marketed them on a scale this big.

Raymond has a near 60 percent market share in the Rs. 18,000-crore suitings segment.

Raymond plans to invest about Rs 500 crore to open 400-500 new stores across all its portfolios in the next 5 years. The company is also investing the same amount in setting up a new plant in Ethiopia to cater to its global markets like Europe and US.

The company, currently manufacture textiles from three manufacturing unit; Chhindwara in Central India, Vapi in Gujarat, near Mumbai and Jalgaon in Maharashtra is also ramping up its production capacity. In Feb, this year Raymond invested Rs 450 crore in a new textile unit at Nandgaon Peth in Amravati district in Vidarbha which will have an annual capacity of 20 million meters of cotton fabric.

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

8.2. Start-up Initiative: a ''Fund of Funds'' of INR 10,000 Crores to Support Innovation Driven Start-Ups has been Established to be Managed by Small Industries Development Bank of India (SIDBI)

Press Information Bureau | Dec. 19, 2016

New Delhi: Start-up India is a flagship initiative of the Government of India, intended to build a strong ecosystem for nurturing innovation and Start-ups in the country. For providing fund support for Start-ups, a ''fund of funds'' of INR 10,000 crores to support innovation driven Start-ups has been established which shall be managed by Small Industries Development Bank of India (SIDBI). The fund will invest in Securities and Exchange Board of India (SEBI) REGISTERED Alternative Investment Funds (AIFs) which, in turn, will invest in Start-ups. It will act as an enabler to attract private capital in the form of equity, quasi equity, soft loans and other risk capital for Start-ups. Rs. 500 crore has been released to SIDBI in FY2015-16 and Rs. 600 crore in FY2016-17. Further, a new trading platform called the “Institutional Trading Platform (ITP)” with simplified framework has been introduced on August 14, 2015 by SEBI making it easier for companies, including the Start-ups, to get listed either pursuant to a public issue or otherwise. In case of public offer on ITP, the minimum application size shall be Rs. 10 lakh and the minimum trading lot shall be of Rs. 10 lakh.

Thus the retail investors cannot buy or sell shares of the companies listed on ITP. No company has been listed on the ITP so far.

The Government of India has issued the Companies (Share Capital and Debentures) Rules, 2014, which lays down the procedure for issuance of shares and debentures, disclosures, filing requirements and other compliances under the Companies Act, 2013. These provisions are applicable to all companies including startups and seek to ensure that companies raise monies in a transparent and accountable manner. The modification in the Rules made under this provision for start-ups do not compromise on the basic premise of due disclosures, accountability and protection of interest of investors including minority investors.

The Start-up India Program is reviewed every month by a Monitoring Committee consisting of representatives from Department of Industrial Policy and Promotion (DIPP), NITI Aayog, Department of Revenue (Ministry of Finance), Ministry of Micro, Small and Medium Enterprises, Department of Science and Technology (Ministry of Science and Technology), Department of Electronics and Information Technology (Ministry of Communication and Information Technology), Department of Higher Education (Ministry of Human Resource Development) and SIDBI. Decisions taken by the Monitoring Committee are regularly followed up with various stakeholder departments/ organizations for implementation.

This was stated by Shri Arjun Ram Meghwal, Minister of State in the Ministry of Finance in written reply to a question in Lok Sabha today.

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

9.1. LED Retail Prices come down to Rs. 65 under UJALA Scheme; 17.90 Crore LED bulbs distributed across the Country

Press Information Bureau | Dec. 02, 2016

Achieving efficient implementation of the Unnat Jyoti by Affordable LEDs for All (UJALA) Scheme, the aggregation of demand and bulk procurement by Energy Efficiency Services Limited (EESL) has resulted in huge savings for the consumers across the country. This was stated by Shri Piyush Goyal, Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines, in a reply to a question in Lok Sabha today. Giving the details, the Minister informed that the e-procurement of LED bulbs through a transparent and competitive bidding process has resulted in reduction of approximately 88% in procurement prices of LED bulbs from Rs.310 in February, 2014 to Rs.38 in August 2016, the retail price being reduced from Rs.550 to Rs.65, which is passed on to the consumers.

As on 21.11.2016, 17.90 Crore LED bulbs have been distributed to households across the country, that resulted in avoided capacity generation of 4,656 MW and a saving of 23.25 billion KWh per year, Shri Goyal further added.

Prime Minister of India, Shri Narendra Modi, launched the National LED programme on 5th January, 2015, which is being implemented by EESL, a joint venture company of Public Sector Undertakings (PSUs) under Ministry of Power.

The Minister informed about the details of the programme and said that EESL aggregates demand across the country and procures LED bulbs for further distribution to domestic consumers at lower rates compared to retail market. EESL has developed an innovative business model in which the entire investment in these programmes is made by it and is paid back over a time from energy savings. This obviates a need for any government funding for this programme. There is no element of subsidy in the scheme.

In a reply to another question, the Minister said that UJALA Scheme covers Urban as well as backward, rural, semi-urban and remote areas. EESL has initiated nationwide implementation of the programme to replace 77 crore incandescent bulbs with LED bulbs by March, 2019. This will result in an estimated avoided capacity generation of 20,000 MW and save 100 billion KWh per year. Shri Goyal also informed that there is no proposal to revamp the funding and execution pattern of ‘LED distribution scheme’. The details of State/UTwise Street lights replaced and quantum and value of energy conserved under UJALA scheme, as on 25.11.2016, is given below:

Shri Goyal added that under the National LED programme, the Street Lighting National Programme (SLNP) has also been initiated wherein street lights respectively are replaced with LEDs. The details of State/UT-wise Street lights replaced and quantum and value of energy conserved under SLNP scheme, as on 25.11.2016, is given below:

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

9.2. We're investing aggressively and will continue to do so: Amazon's India head

Business Standard | Dec. 06, 2016

New Delhi: Amazon’s India business has experienced triple digit growth rates this year when rest of the ecosystem is either flat or on a lower growth path, country head AMIT AGARWAL tells Karan Choudhury at an event in New Delhi to announce the launch of a global start-up programme.

Edited excerpts:

What is your take on demonetisation?

The idea of cashless is good for the country, for customers, businesses, I welcome that intent. How you get there, this clearly is one step towards that. For 48 hours once the initiative was announced we switched off cash on delivery part of the business, because we did not want our logistics networks to be unstable. Since then we have seen a dramatic uptick of customers opting to use electronic payments method at the doorstep, even loading up their Amazon balances so that they can shop on our site. We are mostly back to normal and are seeing triple digit growth rates.

You as of now do not have a mobile wallet. Do you consider that as a hindrance? Is a wallet in the works?

Customers can load up their Amazon balance for shopping on the portal and many users are using this service. As far as the wallet is concerned, we do not really speculate on things we may or may not do. But yes, we had acquired a small company called EMVANTAGE Payments Pvt. Ltd, the whole focus of that is on same things we care about, we want to make it super easy for customers to buy on Amazon.in and payments is one of the areas where we definitely want to make it better for customers. A lot of the technology that this company has built has improved the payment experience at Amazon.in.

There have been quite a few downgrades in valuation of ecommerce companies this year. What’s your take on it? How is it going to be in 2017?

I do not have any view of e-commerce for other companies in 2017. What I can tell you is that our view for our business is extremely positive. We are exiting this year being the leader in every single dimension that customers care about. We are exiting 2016 with triple digit growth rates year on year, when the rest of the ecosystem is mostly seeing flat to negative growth. We are exiting this year investing aggressively, to offer customers with large selection, great prices and faster delivery. So I am very optimistic. But having said that, it is very early in the lifecycle of ecommerce in India and we will continue to invest over a long period of time.

What sort of dent did Amazon.in business make on your global financial numbers? How long is this sustainable?

We do not break the financials by country, we look at India as a fabulous long-term opportunity for Amazon globally and we would continue to invest aggressively in areas that matter to customers over a long period of time.

Any special sales being planned around Christmas? Are you planning to bring a version of Black Friday sales to India?

We are always focused on offering products at really low prices to our customers. Customers should continue to see great selections on our website. They would see sellers bring great offers to them. I am sure the sellers would bring Christmas specials to our customers. Customers can already shop for global products on Amazon today. As far as Black Friday type sales our concerned, we do not comment on what we may or may not do (smiles).

As far as Amazon Now is concerned, how are things panning out there?

Amazon Now is our specific two hour delivery service that offers popular consumer products. That service is active in Bengaluru and we have piloted it in Mumbai and Delhi. It is doing great, customers really love this service and we will ensure that they get more selection.

What are your plans for 2017?

Our plans would be exactly the same as they have been for the last three years. We would continue to add more selection, figure out how we lower the cost of operations, offer low prices, how we ship products to customers are low prices. It is exactly the same thing that we have been doing at Amazon for the last 20 years.

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

10.1. AYUSH Minister seeks suggestions from global experts to turn India into a global hub for Ayurveda practice & research: Shri Shripad Naik

Press Information Bureau | Dec. 06, 2016

New Delhi: The Minister of State (IC) for AYUSH Shri Shripad Yesso Naik has sought suggestions and inputs from Ayurveda researchers and practitioners world over which may be incorporated in the AYUSH Ministry’s works related to streamlining the study and practice of this traditional health science in the country. AYUSH Ministry is taking concerted efforts for systematic development of Ayurveda and other traditional medicines, stated the Minister. Shri Naik was speaking at the valedictory function of the 7th World Ayurveda Congress, held in Kolkata from 1st – 4th December 2016.

Earlier, the Minister administered an oath amongst Ayurveda practitioners and researchers for working concertedly to develop and popularise the practice of Ayurveda which is an ancient health care system developed through the ages. Shri Shripad Naik remarked that there has been a resurgence of interest in this traditional healthcare system world over in the last two decades. One of the reasons for it is that Ayurveda advocates preventive healthcare method of treatment. The Minister disclosed that Ministry of AYUSH has already signed a number of MoUs with institutions in different countries for bilateral co-operation in research and knowledge-sharing in the field of Ayurveda and other traditional form of medicines. The Ministry is working with other agencies, institutions and all concerned to turn India into a global hub for knowledge, research, practice and developmental projects on traditional medicines. Applauding the hard-work showcased by the organisers of the 7thWorld Ayurveda Congress, which is a platform that brought together Ayurveda experts from all over the world, he said, it supports the Government’s aim to build awareness and sensitise people about the uniqueness of Ayurveda. The Minister declared that the next World Ayurveda Congress will be held at Gandhinagar in 2017.

The dignitaries present on the occasion included Kerala’s Minister of Health, Smt Shailaja Teacher, Sri Lanka’s Provincial Minster of Health and Indigenous Medicine Shri Lakshman Wendaruwa, Vijanan Bharati’s National President Dr. Vijay Bhatkal among others .More than 500 delegates from different parts of the world participated in the event held first time in Kolkata, one of the few cities of India , where Ayurveda has been practised for the last 200 years or more.

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

10.2. Dabur aims to be leader in science-based Ayurveda space

BusinessLine | 4 Dec.2016 | Meenakshi Verma Ambwani

Demonetisation has had an impact on FMCG business with primary sales declining significantly, said Sunil Duggal, CEO, Dabur India. “We have been very proactive in not exposing ourselves to any credit risk and defaults from the trade partners who may become financially stressed. One will have to give some credit extensions no doubt but it is being done in a calibrated manner to credit-worthy partners,” Duggal said. In an interview with BusinessLine, Duggal shared the company’s strategy to lessen impact of demonetisation and also future growth prospects with particular focus on science-based Ayurvedic products and acquisitions.

Excerpts:

Has demonetisation impacted sales? If yes, how are you dealing with it at the supply chain end?

There has been a supply chain dislocation and destocking and obviously primary sales have been significantly impacted. Destocking impacts the primary deliveries, but the secondary deliveries continue. The momentum, in terms of secondary sales and actual consumer offtake, has slowed down but it is not as dramatic as the loss of sale due to primary billing numbers.

We have been protecting ourselves from any credit risk and defaults from the trade partners who may become financially stressed. We are giving credit extensions in a calibrated manner.

How is this impacting ad spends and consumer promotions?

In terms of cutting ad-spends, we felt it was prudent to take whatever we could off-air in November. But, the intent is to put it back on-air as soon as possible. Before resuming extensive media campaigns, we will analyse the consumer sentiment. We expect some clarity in next few days. However, we are extending consumer promotions by another month. So any direct benefits to consumers in terms of discounts and promotions continue in December.

Some analysts are saying it will take six months for complete normalcy to resume. What’s your view?

Once the liquidity in terms of hard cash availability comes back, which I believe it will in the next 2-3 months, we will start seeing normalcy returning. We are already seeing signs of liquidity improving in the Southern region compared to North and the East region. I do expect our business to revive quiet sharply. But, the question is can we get back to a normal growth rate in the fourth quarter? That is what we are trying to do. We are trying to slowly revive the curve. The process of normalcy will be slow but it will be visible and we hope to accelerate it so that we can have full normalcy by the end of fourth quarter.

Dabur is increasingly focusing on science-based Ayurveda. How do you plan to leverage this positioning?

We are putting all our ayurvedic products on the platform of science- based ayurveda. We seek to differentiate ourselves from many of our competitors which operate more on the faith platform. There are many consumers who would want validation before they buy a product. So we will seek to recruit these consumers for our products, who will be swayed by rational arguments of product efficacy, manufacturing quality and validation process. It’s important for us to take the leadership in the science-based Ayurveda platform. I don’t think any other company has that capability in terms of R & D facilities, testing protocols, product validation processes. We are looking at healthcare space in a much larger context. This will be substantially driven through our herbal, natural and ayurvedic products.

What are the new product launches that are on the cards?

We have pushed back new product launches and will not be launching new products in this quarter because of demonetisation. We will launch them in the fourth quarter or the first quarter of next fiscal year once the situation is normal. These will conform to the science-based Ayurveda philosophy. Some of these launches will be in the OTC, health supplements and personal care space.

The company has said that it is open for acquisitions. What segments will you look at for inorganic opportunities?

We will look at all the segments that we are present in for acquisitions, especially in the healthcare and personal care space. We also believe that due to the current economic conditions many of the smaller companies that are very-cash dependent might face issues in terms of their viability. So, we will be refocusing on the M& A space because perhaps the best deals are done in stressed economic conditions. We have the cash and there may be assets available now at comparatively knocked-down valuations compared to two months ago.

– INDUSTRY, MANUFACTURE

11.1. Sign me up, says GE's Jeffrey Immelt to India

Livemint | Nov. 21, 2016

New Delhi: General Electric Co. chairman Jeffrey R. Immelt said India is becoming a better place for business—he cited the government’s focus on infrastructure, the potential inherent in the unified goods and services tax that India is moving to, and increasing transparency as reasons for this.

The current government is “higher on the say-do ratio”, Immelt, 60, said in an interview on Friday.

In 2014, GE opened a first-of-its kind multimodal factory in India (located in Pune, it has manufacturing lines that can switch between a variety of complex products across the various businesses in which the conglomerate operates) and the success of that shows that “manufacturing can happen here and be much bigger for us than what it is today”, Immelt said.

Today, “making things in India is as productive as making things in China”, he added.

India’s big opportunity is to get its “micro—a strong entrepreneurial class” meet the “macro—governance” and he is increasingly seeing that, Immelt said.

Describing Prime Minister Narendra Modi as “honest and hardworking”, Immelt said these are qualities that increase his confidence in doing business in India. “I don’t judge policies. It is not up to me to judge policies.

But, if you look at somebody that is forceful, hardworking, honest and transparent, I would say sign me up.”

Edited excerpts from the interview:

How do you feel about India right now?

Good. I think business results are strong. There is a sense of confidence in the country. I think economic growth... higher on the say: do ratio—things that have been talked about are actually happening, things like GST (goods and services tax). So, I feel really good about India.

How about the rest of the world—Europe and the US?

I think we are on a slow growth, volatility, populism, uncertainty... I think that’s just the nature of the world today. Things in the US are a little bit better. Things in the Europe are a little bit better. Things in China are a little bit better. There are points of volatility when oil prices are down and they put strain on places like Nigeria and Brazil. I think there is enough growth out there for GE to accomplish what we need to accomplish. It’s not robust, but it is okay. India is good.

With Brexit and the US election, there is clearly an indication that people are not happy with the status quo. The numbers show that their incomes have not gone up since 2008. So, there is a reason for their unhappiness. Do you think this will have a medium-term impact on business in some way?

This is on everybody’s mind. Globalization has changed the way world works. Technology has changed the way world works in terms of productivity. If you think about a company like us, in the US context, we are a huge net exporter. We are the second-biggest exporter after Boeing. From the US standpoint, we are doing exactly what our country wants us to do. But, that does not mean that every factory in GE has been a winner. Some have closed, some have grown and that’s the nature of globalization, and at the same time, there is technology, productivity. Our output per employee has grown. So, even while our manufacturing jobs have expanded, our output has expanded more than that. So, those are things that factor into the way people feel. In certain industries in the US, such as coal, steel, the impact that you felt has been huge. Same way in Europe.

I think my job is to run GE, make it productive and to grow it. We have 330,000 employees around the world. We probably take that number and multiply it with 8, if we think about our suppliers. So, we probably have around 2 million people around the world who depend on GE. I will have to think mainly about them. I think what every CEO has to understand is that jobs matter. When you are adding jobs, you are a good guy, and when you are taking jobs, you are a bad guy. If you go back 20 years, may be business sometimes lost sight of the fact. It does not mean we don’t have to make tough decisions; we do. But, we have to prepare a sense of context and listen to what people are thinking and saying.

In some ways, GE set the trend in terms of globalization and you have been in charge for 15 years, which coincides with the most turbulent period for globalization because people have started to question whether it works. What is that one learning, one piece of wisdom about globalization that you have to share?

I think resiliency. So, the first thing I would say that I joined GE in 1982. When I first started with GE, in the 1980s, globalization in GE context meant moving factories for the purpose of selling in the US. Seventy-eighty per cent of the revenues were still in the US. Today, at least 70% of the revenues are outside of the US. It is about planning, building local teams and things like that. The first thing is people think about globalization as one moment of time or one idea. I am in my fifth idea for globalization. I still have people talking about outsourcing and that’s the farthest thing in my mind today. Now, resiliency. You have to see countries through cycles. You have to continue to stretch your brain in terms of what the country can be. I first came to India in the 1980s because my predecessor thought that it can be a great consumer market for GE; we used to sell refrigerators in India. That turned out to be a horrible idea. It did not even come close to working. While we were doing it, we discovered that talent here was huge and you could build laboratories here. In the 1990s, we were trying to build GE Capital in India. It was brutal and horrible. But, we did business process outsourcing as part of GE Capital, which became Genpact. So, it’s amazing. We have made an incredibly successful enterprise in India. Our team here is great and nothing ever worked the way we thought it would work. So, one door would close and another would open. Around 10-15 years ago, we thought China would be the most productive in terms of manufacturing in the world; now, we find making things in India is as productive as making things in China or in other places. We would not have thought about that 10 years ago.

I think this notion of resiliency, creativity, don’t get too set in terms of way of working and that’s what makes us a great company.

You have built a multi-modal facility in Pune. Do you think it is a model that can be replicated widely in the country?

I do. This is a country that thinks productivity every day. It had to because infrastructure has not been good. Other things have failed. So, you have this inherent DNA for productivity, access to materials and workforce. The challenges remain in infrastructure. How do you export until you get better ports, better roads, etc? But, this can happen here. It can be much bigger than what it is today, for us.

Has it become easier to do business here?

We opened this facility in Pune in 2014. That has been two years and it is amazing how quickly it is gone. I think the focus on infrastructure, GST, more transparency... step by step, India is becoming a better place for business and more straightforward place for business. It has still got some unique challenges, but the progress has been substantial. This is the country where if the micro ever meets macro or, in other words, strong entrepreneurial class and governance... If the government ever matches the entrepreneurial class in India, there is no stopping this country. I have seen more general progress on macro today than I can remember seeing in days gone by.

That’s also the function of leadership. Right?

I think PM (Narendra) Modi has been a good leader. I think you guys decide on your politics, we have got our own challenges in the US. I think as a world traveller, you admire leaders who are hardworking and honest. I don’t judge policies. It is not up to me to judge policies. But, if you look at somebody that is forceful, hardworking, honest and transparent, I would say sign me up. So, I see that in India today. I see a different pace of governance today. For a business person, that’s all you can ask for. Governments are not put in place to do favours for GE. Their job is to serve the country.

The period between 2012 and 2015 was one of rapid technological change. Solar, which was hugely expensive, has now become very inexpensive. Artificial intelligence has become a reality. 3D manufacturing is real. Desktop CNC machines are not being ruled out. Our kids could probably live until 100. How are you taking advantage of that?

First thing that I will say, which I say inside my company, is that the change will find you. In other words, no one is safe; no country is safe; no company is safe. So, you have to find your way in the world. When it comes to future technologies, the place where GE wants to play and win is this intersection between the physical world and analytical world and so there are two places where we are placing huge bets today. One is what we call industrial Internet or Internet of Things (IoT) right—a massive bet because we believe that our foundational asset is a huge strength and that we can recruit talent to do the analytics on the software side.

And the other place is manufacturing, because we have a kind of a generational strength in material science and we can add to that the laser technology, the systems integration, the part design to do manufacturing. So, when I say what’s the GE technical spot of ownership in the future? It’s at this intersection of the physical and the analytical. We want to be the company that the other people are looking at, not the other way around.

How has your whole Silicon Valley experiment worked out?

That is what we call industrial Internet; you know we have kind of been focused there for 5-6 years. We have got a business that is about $6-7 billion in revenue. Our aspiration is to be a top 10 software company by 2020. That would basically mean $15 billion of revenue by 2020, so we are halfway there. It wasn’t really about GE trying to think we were Microsoft or something like that. Our vision was that a good industrial company had to own analytical layer around their products and the only way to get there was through software. We went to Silicon Valley because that is where the talent is; not because we want to hang out with VCs or because I wanted to wear a blue jeans, a sweatshirt and a hoodie. You gotta go where the talent is. And you know if you want to build a space, the place to start was California, Silicon Valley and then go to Bangalore and then go to Munich and there are probably 15 cities around the world that you have to be based in if you want to win there.

So, when we first planned that in 2010, we couldn’t get A-level talent come to work for GE. They would think you are a lightbulb company, you are something else. Now, we get people from Google, Facebook or Amazon come to work for GE because they like the technology, they are attracted by, in some ways, we are the platform on which they can work on their next-generational skills.

And even while you do this, clearly you have not taken your eyes off traditional; this whole Baker Hughes (GE’s deal with Baker Hughes to create the world’s No. 2 oilfield services business)... What’s the logic? Why would you do something like that?

You know, we kind of define our business set around high-tech system engineering products in essential industries. So, when you think about essential industries, oil, gas, healthcare, transportation, that’s our set. We had our core oil & gas business and like every business we are in, it has been through cycles. Our aviation business has been through cycles, our healthcare business has been through cycles. Our power business, our renewable business. So, in businesses you like, the downcycle is the moment...

I always tell people when oil’s at $100/barrel, that’s a bad time to be buying oil & gas companies. When oil’s $40/barrel, that’s a great time. And so, in many ways, Baker Hughes was a great fit for our portfolio. The one piece we didn’t have was oilfield services. We really thought that the combination of oilfield services and analytics was critical; so, for us to drive our industrial platform in oil & gas, we needed what Baker Hughes brought to be successful. We did it in a unique structure mainly because we wanted to do it, we thought it is a good time in the cycle, Baker Hughes wanted to do it and I didn’t want to… we have so many investment opportunities right now, we didn’t want to put all of our capital in just one industry. So, we tried to create a unique structure that would allow for their investors to benefit, for us to get the synergies of an acquisition, but did it in a way that created a public float because we did not want to take all our capital in just oil & gas.

I think we can manage and navigate the complexity, but the strategic opportunity was too good to pass up. It was the only moment we could do this deal, so the door opened and we went through.

If you look at the entire portfolio of things that you do—and you do a lot of things—what are the threethings that excite you the most?

It’s always hard to answer such questions because they are all like your children, so I love each business for its context. So, let me just take one that I have already talked about—increasing the stack from analytics to add to manufacturing. It’s as big as anything I have ever worked on and I find it to be massively, massively exciting.

And it is a horizontal trend...

It is, it is a horizontal trend inside the company. Then, you know, there’s always a human element in business and in some ways, the human element of GE always gets brought out more in the healthcare business than in any other. I could go through a variety of different technologies we are working with on our healthcare businesses—from cell therapy to finding ways to serve markets like India or Africa—which are hugely important. If I had to pick a third one, I would have to say it’s taking a big, well-known company and navigating it around the world at a time when everybody hates globalization. I find things like that interesting, c hallenging, fascinating. And if you were to put yourself in my shoes, we don’t have to be perfect; we only have to be better than everybody else.

The world is not perfect today, people don’t like globablization today. So I don’t have to convince everyone that globalization is great. All I have to do is navigate the world better than our competitors and we are confident we can do that.

US president-elect Donald Trump has spoken about protectionism, and the majority of your business comes outside of the US. So, in the current scenario, is there going to be a change in strategy when you think about doing your business, especially in the context of India?

We have a big footprint in the US and we are a big exporter from the US. In some ways, I think his initial, at least in the speeches and things like that, targets are more people who manufacture things in other places and ship them into the US, car companies and things like that. But we need to see; he’s been president-elect for a week. Long before president-elect Trump, protectionism has been on the rise, in Europe, China, everywhere. We probably very judiciously over the last decade have localized the company, so we have a very local face everywhere. So, we can navigate a world with no trade deals, with more protectionism, we can navigate that better than anyone else because we can make almost anything almost anyplace we want to and I think that’s a big competitive advantage.

I think we are a good American company. We are exporters, we create a lot of jobs in the US, but we have also earned the right to do business in India and China or other places in the world, and I think to a certain extent, we can do that on our own.

See, I believe in trade deals, in NAFTA (North American Free Trade Agreement), in TPP (Trans-Pacific Partnership), but if they all went away, we would be okay, we would be just fine. Our job is to make our strategy fit where the people and governments are going to go.

We believe in globalization, we have teams across the world and I’m not going to turn my back on my team in India, or in Mexico, so we are not going to change what we believe in necessarily because elections change. So, we remain committed to India and our Indian team; I’m not going to turn my back on my team in India, I’m not going to run away from everything we have built here in India. I’m not going to treat this team any differently because we have a new president in the US.

And you know why I feel that way? Because it’s un-American! (laughs) In other words, this is what I was taught—Sunday school and things like that. I think he’s a shrewd businessman, what he’s done is amazing and it’s up to us to fit our strategy into the context that he creates for the US.

How has your move to Boston been—how do you feel about it? I’m told you have a really nice...

Crappy little office? (laughs) I have gone backwards in my career, I can tell you that much! (laughs)

We had kind of a classic conglomerate compound in the county in Connecticut and it was a nice community and things like that. But I thought it was important for the company to be in a city, to be around ideas, entrepreneurs. So, we moved into what’s called the Seaport—the entrepreneurial part of Boston. We are going to build a new building, but we are in a temporary office and the office is very open. My office was substantially bigger... but now I have this office with glass windows—and people can watch me work, first time in 15 years.

It’s horrible because I can’t sleep at my desk or anything like that! (laughs)

But the advantage is that everything is visual, I can meet with my CFO (chief financial officer) and we can meet openly and we just become faster. It’s given us a chance to reinvent what corporate should. How do we eliminate bureaucracy? How do we become faster and more purposeful as a company? So, I think it’s accomplishing all those things.

In India, to set the context, I am sure you have noticed this messy battle that has been going on in a large conglomerate. It is largely the case of succession planning gone wrong, and one of the finest case studies of succession planning is how you got the top job. Can you tell us how it works in your company?

I think we spend a lot of time around people thinking about people at different jobs. I spend a lot of time on developing talent, succession planning and things like that. I was a product of the system and in some ways, we always try to prepare ourselves for the change of leadership and how it works... Look, I know the Indian context. I have immense admiration for the company that you mentioned and the leaders involved. I think, the most important thing about how we do business is that the company always comes first and nobody is above the company. This is the place where I am a steward. That’s it. I am in a relay race. Somebody handed me the baton. I hand it to somebody else. So, GE is above everything else you do.

Have you thought about your successor?

We will do it in a different way. There is always a right time to do it. We want to make sure we have a great list of people.

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

11.2. Cummins to make India export base for BS VI equipment

Livemint | Nov. 22, 2016

New Delhi: India’s plans to leapfrog to Bharat Stage VI (BSVI) emission norms by skipping an intermediate stage had automakers in a tizzy but for Cummins Inc., manufacturer of engines and filtration technologies, the move marks the next phase of growth in India.

The company plans to bring all its top components and technologies, such as electronic fuel systems and after-treatment systems, to India and make the country an export hub for the world, global chairman and chief executive Tom Linebarger said in an interview Thursday.

“We see this as an opportunity for us. Not only can we bring new technologies, which means we can sell other things, we can (also) export (them) from India to other countries now,” Linebarger said.

“As part of Euro VI, you are now adding a lot of technologies, and that means investments in technology will create other jobs. Once you have these global technologies, then you can export them as well because all other countries are using them now,” he added.

The company is also setting up a technical centre in Pune, its second largest outside of the US, to augment these technologies and has plans to scale the centre to become the largest globally.

“Altogether, the investment is significant. I don’t have an exact figure,” he said. “Hundreds of millions of dollars. This is all new investment on top of what we have already invested.”

Emission is a global concern. While the Supreme Court temporarily halted the sale of passenger vehicles powered by diesel engines of 2,000cc capacity and above in the National Capital Region centred around Delhi in December last year (only to lift the ban in August), globally, Volkswagen AG was found guilty of using a “defeat device” in its cars that helped the firm manipulate emission data. In India alone, the company is expected to recall as many as 323,000 vehicles.

Linebarger said the Volkswagen fiasco has hurt the credibility of the global auto industry. “It makes people wonder about the claims that these companies make—are they true? It kind of drops trust for everybody in the industry and that’s a shame,” he added.

As a result, the Cummins board directed Linebarger to carry out a thorough check in-house.

“Before you start saying things, you first check your house. So we did a very thorough look through our company to make sure nothing like this was happening. Our board said we need to do that; so I went ahead,” he said.

The development has made the regulators wary across the globe. “Regulators are looking at things... and making sure there are no holes in the regulations,” he said.

However, that alone won’t solve the problem.

“You can just measure and say here is the culprit and we will take care of automobiles,” Linebarger said referring to the court ruling that banned larger cars.

“It feels good as you are sticking it to the rich people, but in actuality, it is not going to change the air. We need to have comprehensive action against all sectors,” he added.

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

12.1. Panasonic steps up India focus

Business Standard | Dec. 07, 2016

Mumbai: Japanese major Panasonic is upping its investment in India despite challenges the consumer electronics and durables market is facing in the wake of demonetisation.

In a conversation with Business Standard, Tetsuro Homma, senior managing director, Panasonic Corporation, said the pain triggered by demonetisation was short-term and would not last more than a couple of quarters. “We remain committed to the Indian market despite the disruption triggered by demonetisation. From longterm point of view, India still remains an attractive bet for us,” said Homma, who is also worldwide president of Panasonic’s appliance company, responsible for a $25 billion (or Rs 1.7 lakh crore) business.

The maker of the Viera brand of televisions and Econavi range of air conditioners will set up a new manufacturing facility for refrigerators in Jhajjar, Haryana, at an investment of Rs 115 crore. The plant will be operational by November 2017, with annual production capacity of 0.5 million units, Homma said. This investment figure along with previous amounts will take Panasonic’s total investment into India in the last few years to over Rs 300 crore, company executives said. “While local manufacturing of most of our products including televisions, air conditioners, washing machines and mobile phones had begun in India, refrigerators was a gap that needed to be filled,’says Manish Sharma, president and CEO, Panasonic India & South Asia. “That process has been set into motion now,” Sharma said.

The move to manufacture and assemble Panasonic products in India also comes at a time when the Japanese major is looking to shift its manufacturing and research and development (R&D) base here from China. This comes as China loses its advantage as a cost-effective base, market sources said, compelling consumer electronic majors to look at alternatives such as India.

Homma says that India will act as a regional hub not only for the south and west Asian markets, but also for Africa. The firm will also set up its first offshore advanced R&D unit in Bengaluru next year as it looks to widen its footprint in the country, he added. The advanced R&D unit will begin with 60 people, which is expected to be ramped up quickly over time. Exports from India into South & West Asia and Africa are also expected to increase over time, Homma added.

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

12.2. Nalco to invest Rs 12,000 cr in new smelter

Business Standard | Dec. 19, 2016

Bhubaneswar: National Aluminium Company (Nalco) plans to set up a new greenfield smelter in Odisha at Kamakhyanagar.

The site chosen for the new smelter is close to Gajamara in Dhenkanal district where Nalco is teaming up with power utility NTPC for setting up a 2,400 Mw coal-fired power station. The power project, estimated to cost Rs 14,000 crore, will be implemented by a joint venture company NTPC-Nalco Power Company.

The proposed smelter’s capacity is pegged at 0.6 million tonnes per annum. Power generated by the super thermal power station will feed this greenfield smelter.

Confirming the development, Nalco Chairman and Managing Director TK Chand said, “We need around 1,400 acres of land for the new smelter. Idco (Odisha Industrial Infrastructure Development Corporation) already has 1,500 acres of land ready at Kamakhyanagar, so we hope to receive possession of this patch of land. Also, the smelter’s location will be around 45 km from Gajamara, the proposed site of the 2,400 Mw power plant. That way, it will be easier for us to evacuate power and feed the smelter.”

The smelter’s location was also advantageous as water would be easily available at Gajamara, he said. The smelter is expected to go on stream in four years. This state-of-the-art facility will use the latest aluminium smelting technology.

Nalco is also going in for brownfield expansion of its existing 0.46 mtpa smelter project at Angul. The navratna company has planned capital expenditure of Rs 10,000 crore to add 0.5 mtpa capacity to this smelter. Land and associated infrastructure needed for this smelter’s expansion is in place. With the expansion, Nalco hopes to prune cost of production and achieve economies of scale . The company will also deploy the latest technology to ensure reduced energy consumption and high productivity.

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

13.1. Safilo Group looks to make eyewear affordable in markets like India, Brazil

BusinessLine | 18 Nov. 2016 | Meenakshi Verma Ambwani

Leading eyewear company Safilo Group aims to triple its India business in the next two-three years, as it gears up for a strong push with focus on strengthening its presence in the top 60 cities.

The company’s large portfolio of prescription glasses, sunglasses, fashion and sports eyewear includes its own brands such as Carrera and Polaroid, besides licensed branded collections of Gucci, Dior, Jimmy Choo, Fendi, Marc Jacobs, Tommy Hilfiger, Fossil, Saks Fifth Avenue and Pierre Cardin, among several others. By early next year, 24 of the company’s portfolio of 31 brands will have a presence in the country.

New brands

Talking about the new brands the company will introduce in the next few months, Safilo Group, CEO, Luisa Delgado, said: “We will soon introduce Dior eyewear range in India which will be an important image builder for us and we will retail these at select stores.

Also on the cards is bringing Elie Saab, a premium brand to be launched in limited quantities, as we will focus on establishing this brand with the highest standards and desirability. We will also focus on bringing the masscool brand Havaianas which is targeted at the millennials.”

The company will also focus on growing awareness of its brands, such as Polaroid and Carrera.

Delgado said: “The business in India is growing at double digits. Our focus is not just on whether all our 31 brands are here in the country…the focus is on what are we doing with all our brands and how we sell them. In the next two and half years, we have set targets for growing brand awareness, strengthening our presence in the top 60 cities by working with reputed retailers.”

Huge growth potential

She said in developing markets like India, branded eyewear in both prescriptions and sunglasses segment, is largely under-developed and offers a huge potential for growth as Indian consumers are increasingly opting for branded eyewear. But the company does not want to stop at selling premium and mass cool eyewear products to Indians as it has bigger ambitions. Delgado hopes to see a pair of glasses from the Safilo Group in every Indian household in the long term.

“Serving the 250 million-strong middle class consumers in India will be just the beginning. Our real dream for markets like India, Brazil, Turkey and Russia is to democratise eyewear in a way that it becomes affordable and helps us serve consumers beyond the middle classes, so we can offer them quality products,” she said. The company has already started working on a project like this to design quality, yet affordable, eyewear products but Delgado did not give a timeline. “India is a priority for our global and strategic plan…. I wouldn’t measure our success in India only by the size of our business. I would also measure it by the progress we make in touching the lives of more and more Indians with our portfolio,” she added.

13.2. Indian auto after-market poised for double-digit growth curve

BusinessLine | 18 Nov. 2016

The Indian auto after-market is expected to enter double-digit growth curve in the coming years after being in negative zone for 2-3 years in the recent past.

“Presently, the size of the Indian auto after-market including all categories is estimated at about $7 billion. I expect the sector to achieve a growth of 10-12 per cent going forward if the industry maintained the projected growth rates,” R Dinesh, Chairman, Auto Serve 2016 and Joint Managing Director, T V Sundram Iyengar & Sons Ltd said here.

His optimism for growth despite technological changes and lesser repair trend in the auto industry stems from the fact that India has now enough vehicle population to drive business for after-market segment.

“In the recent past, pre-repair period of vehicles significantly extended and hence the after-market was impacted. Though vehicle growth was 5-6 per cent, utilisation levels of vehicles were not enough to drive growth. So, industry didn’t have growth for two years.

“Now, we have crossed the inflexion point and the market has enough vehicle population. It doesn’t matter whether the usage pattern or technology changes, but the repairs will automatically come and the service needs will increase,” said Dinesh. Meanwhile, he also indicated that auto after-market would undergo huge changes in the wake of infusion of new technology that will see more electronics in vehicles and rising digital influence.

Support needed

There is a need to support the after-market ecosystem with investment and technology and OEMs and auto parts markers should work jointly to create a platform to address the knowledge gap in vehicle servicing, he felt.

After releasing a CII and Frost & Sullivan report on After Market, K Pandiarajan, Minister for School Education, Sports & Youth Welfare, and Government of Tamil Nadu highlighted the State’s expertise in service of automobiles by referring to clusters such as Namakkal and Pudupet in Chennai.

CII Auto Serve 2016, which is the seventh edition in its series, showcases new trends and technologies in the Indian automotive aftermarket segment with special focus on automation, IT, environment and safety.

CII proposes to form a Task Force on the After-market segment for collaborating component manufacturers, vehicle manufacturers and individual participants for the benefit of the sector.

14.1. Ola may deploy 1 million electric cars, says SoftBank's Masayoshi Son

Livemint | Dec. 05, 2016

New Delhi: SoftBank Group chairman Masayoshi Son said on Friday that Indian cab-hailing company Ola, in which SoftBank is an investor, may introduce a fleet of one million electric cars in partnership with an electric vehicle maker and the government—a move that could transform the electric mobility sector in the country.

Son said he was bullish on the electric vehicle segment in India and would look at investment opportunities in this space. The vehicles will be locally manufactured to support the government’s ‘Make in India’ campaign, he added.

“I think this will be the biggest initiative for electric vehicles in India,” Son, who attended the Hindustan Times Leadership Summit, said in an interview on Friday.

Son, 59, also met Prime Minister Narendra Modi during the day and proposed to partner with the government in the initiative. “He was excited about it,” said Son, who wants to reach the one million electric cars target in the next five years.

According to Son, Ola, which currently has regular diesel and petrol (CNG in the National Capital Region) cars on its platform, can help reduce pollution by providing electric vehicles to its drivers.

To be sure, it is still an idea that is yet to be fleshed out. Son said the specifics are yet to be decided. Electric vehicles, the ecosystem required for them and the solar energy business are among the sectors he is betting on.

Mint reported in June that sales of electric vehicles in India rose 37.5% to 22,000 units in the year ended 31 March, citing industry lobby group Society of Manufacturers of Electric Vehicles. Only 2,000 units were fourwheelers.

Electric vehicles have made little headway in India because of the high cost of manufacturing and the lack of infrastructure such as battery-charging stations, dampening the interest of investors. That could begin to change if an investor as big as SoftBank places a bet on the sector.

“The introduction of 1 million electric vehicles will transform the mobility landscape in the country. We are privileged to have Masa-san and SoftBank’s commitment to back the shared vision that Ola and the government have, towards the future of mobility for India,” said Bhavish Aggarwal, co-founder and chief executive officer of Ola.

SoftBank, which has invested about $400-$500 million in Ola, India’s largest cab aggregator, continues to remain bullish on the company. “I am going to support Ola,” Son said when asked about the company’s struggle to find new investors despite significant business growth.

Son, who has committed investment of $10 billion in India over a decade, said he remains bullish on the country despite the recent funding slowdown in the start-up ecosystem and would expand his existing Internet investments.

“I see a lot of opportunity in Internet-related start-ups and second is the solar business. We are going to start building a solar plant that will be up and running in generating solar power by spring next year. We are on track for that,” Son added.

At the summit, he said that he expects to surpass the commitment of $10 billion that he made in October 2014.

“I have the funds, we are looking for opportunities,” Son said.

SoftBank has already invested $2 billion in India in the last two years. Besides Ola (ANI Technologies Pvt. Ltd), it has invested in e-commerce marketplace Snapdeal (Jasper Infotech Pvt. Ltd), budget hotels aggregator Oyo Rooms (Oravel Stays Pvt. Ltd) and hyperlocal start-up Grofers India Pvt. Ltd.

Son spoke about what the world would be like in 30 years. “Computer intelligence will surpass mankind intelligence by 2018,” he predicted.

Son claimed his investment in ARM Holdings will lead this change. ARM is a UK-based chip maker that Son acquired for $32 billion early this year. He claims to have paid a 40% premium for the listed company. “I told myself, I am the luckiest man, I got the company so cheap,” he said. Thirty years on, Son envisions it to be a trillion-dollar bet. “ARM sold 15 billion chips last year… and it will sell one trillion chips over the next 20 years.

If one chip is for $1, it is a $1 trillion bet,” he said in a conversation with R. Sukumar, editor of Mint.

Last month, Son along with the Saudi Arabian government, announced a $100 billion fund to make investments in technology, of which SoftBank’s share will be $25 billion.

Now the second richest man in Japan, Son made a fortune from his investment in China’s Alibaba Holdings Group Ltd. In 2000, he invested $20 million in the then fledgling Alibaba, which went public in 2014. The initial public offering valued Son’s 32% stake at $79 billion.

Arushi Chopra in Mumbai and Yuvraj Malik in New Delhi contributed to this story.

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

14.2. Uber betting on Bengaluru technology centre to drive product innovation

Livemint | Dec. 09, 2016

Bengaluru: Uber Technologies Inc. is striving to make its Bengaluru technology centre a hub of product innovation.

The centre, launched in March, will have a team of 50-odd engineers to introduce new products around payments, vehicle intelligence and mapping, among others for India as well as global markets, a senior Uber executive said.

Apart from the Bengaluru centre which is its first in Asia, Uber currently has engineering outposts in San Francisco, Amsterdam, Sofia in Bulgaria, Aarhus in Denmark and Vilnius in Lithuania.

The team in Bengaluru is working on initiatives around payments, both cash and third-party wallets, said Apurva Dalal, head of engineering for Uber India.

Incidentally, India was the first country where Uber introduced cash payments—a far cry from its seamless credit card payments worldwide—before it rolled out the option in Colombo, Singapore, Malaysia, the Philippines, Vietnam and Saudi Arabia.

In India, the engineering team is working on ways to dispense with small change while paying in cash. The idea is to credit the balance to the consumer’s Uber account, which not only makes for a seamless experience but also ensures the consumer returns to Uber to utilize the change.

“One thing is finding more partners (for wallets). Any company with a significant mass of people using their wallets becomes interesting for us,” said Dalal, who joined Uber from furniture retailer Urban Ladder in July. “We are also working on small change. You pay something to the driver but there is no change. Can we pass that on back as credits? This is something which has got a global application and also builds loyalty in some way. We are also revisiting the Paytm experience,” Dalal said.

Dalal did not comment on the specific tie-ups Uber is pursuing.

The India team is also working on ways to assess the health of a vehicle—condition of the engine and fuel efficiency—apart from a driver’s handling of the vehicle or location among others, even when the phone is switched off.

“We want to know enough about the Uber vehicle. So we have sensors. We started with saying that at any given time, where is the car located? Our app has enough signals that come back to us. But what if the phone is turned off? Can we still track the vehicle? There is a lot of interesting work happening from here in terms of vehicle intelligence,” Dalal said.

Vehicle intelligence and maps play a pivotal role in Uber’s self-driving cars project, said Dalal. In September this year, Uber rolled out self-driving cars in Pittsburgh. A month earlier, in August, Uber acquired self-driving truck company Otto for $680 million.

Among other initiatives, the team in India is working on three-dimensional maps, a key component in Uber’s quest to launch self-driving cars, apart from perfecting maps to improve last mile connectivity, for instance, route from the entrance of a housing society to a particular building.

“Expected time of arrival for cabs and the pickup experience entirely depends on the underlying infrastructure of maps. Map systems that have been built so far are fairly good, but they always do not suit Uber’s use case.

We need to perhaps get more knowledge around traffic than what we get today from the current mapping systems,” Dalal said.

Uber is competing with homegrown rival Ola (ANI Technologies Pvt. Ltd) to capture a lion’s share of the ride hailing market in India, especially after it sold off the China business to local rival Didi Kuaidi. Uber India president Amit Jain said in an interview in September that Uber’s completed trips rose from 165,000 a week in January 2015 to 1.6 million in January 2016 and 5.5 million at the end of August.

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

15.1. China's biggest carmaker to drive into India

Business Standard | Dec. 05, 2016

Mumbai: China’s largest automaker SAIC Motor (formerly Shanghai Automotive Industry Corporation) is finalising plans to invest about $1 billion in India by 2018. It would look to manufacture products that would suit local tastes and can also be exported. Governments of three states — Maharashtra, Andhra Pradesh and Tamil Nadu — have already made presentations to the company, with proposals of hosting its manufacturing unit. Sources in the sector said the company was keen to finalise its plans and could make an announcement in the first or second quarter ...

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

15.2. Make in Odisha: State bags Rs 60k cr investment intentions on Day 1

Business Standard | Dec. 02, 2016

Bhubaneswar: On the inaugural day of the ‘Make in Odisha’ conclave, its biggest showpiece event, the state government said it got investment intentions in excess of Rs 60,000 crore.

Chief Minister Naveen Patnaik said he’d had a one-on-one interaction with 19 major investors who’d

expressed interest to invest. Many existing investors — Tata, Adani, Aditya Birla, ITC, Vedanta — spelt out fresh investments.

Adani Group chairman Gautam Adani committed new investment of Rs 15,000 crore on a slew of projects, promising net employment for 10,000 people. The money would go into expanding the capacity of Dhamra port, with additional terminals for liquefied natural gas (LNG) and liquefied petroleum gas (LPG). An LNG terminal with 5.2 million tonnes per annum (mtpa) capacity is coming up there, for Rs 5,200 crore. The LPG terminal is planned at an investment of Rs 2,300 crore.

Adani Wilmar would be setting up a 2,500 tonne per annum edible oil refinery at Dhamra port, for Rs 2,300 crore. Crude oil for this would be sourced from Indonesia and Malaysia. Adani added: “By March 2017, we would be adding another berth at Dhamra, taking the port capacity to 50 mtpa. We are also setting up a two mtpa barge berth to facilitate coastal movement of coal through National Waterway-5.”

Vedanta group chairman Anil Agarwal says they’ve lined Rs 20,000 crore of investment over the next three years. Of this, Rs 12,000 crore is proposed to be invested on the Lanjigarh alumina refinery, to ra ise its capacity from two mtpa to five mtpa, and to remove bottlenecks at its smelting unit in Jharsuguda. The capacity of the smelter is to be expanded to two mtpa, from 1.7 mtpa. However, bauxite supplies to the Lanjigarh refinery is a key ingredient to facilitate this investment. The other Rs 8,000 crore investment would be made on a ‘world class university’ at Puri, where Agarwal intends to develop an Education City.

Tata Steel said it proposed to invest Rs 15,000 crore to scale up capacity at its Kalinganagar (Jajpur district) plant to eight mtpa, from three mtpa now.

“We will take the approval of the board (of directors) in six months. Investments worth Rs 3,000 crore are already under various stages of execution,” said T V Narendran, its managing director for India and Southeast Asia.

Terming Odisha a natural selection for industries, Satish Pai, managing director of Aditya Birla Group-owned Hindalco Industries announced Rs 4,000 crore of new investment for the state. These are to go into various companies — capacity addition at Aditya Aluminium’s rolling mill at Hirakud, UltraTech’s cement gr inding unit at Jharsuguda, recommencing Essel Mining’s captive mines and expanding the retail footprint of its apparel business.

He said the Group had already invested Rs 30,000 crore in Odisha, of which Rs 27,000 crore had gone into Hindalco’s operations.

S K Poddar’s Adventz Group has committed Rs 9,000 crore on expansion of a urea ammonia unit. He said after taking over of Paradeep Phosphates from the Government of India in 2002, the group had wiped out its previous accumulated loss and turned in a positive net worth of Rs 1,200 crore.

ITC, the foods & hospitality major, said it would invest Rs 800 crore on a five-star hotel under its ‘Welcome’ brand and a food processing plant to be set up on Bhubaneswar’s periphery.

“The hotel would have 110 rooms and give a boost to Odisha’s already dynamic tourism industry. The food processing unit would be a world-class facility. Both are testimony to the enabling business environment and the facilitation Odisha provides,” said Sanjiv Puri, operations head.

Hindustan Coca-Cola Beverages announced an investment of Rs 500 crore for the state in the next three years. JSW Steel expressed intent to set up a large steel plant but was quiet on the investment figure. Essar Group chief Shashi Ruia proposed to expand capacity of its Odisha iron ore pellet plant to 12 mtpa and said it would shortly commence mining from the ore block it bagged via auction.

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. Airtel launches India's first payments bank

Livemint | Nov. 24, 2016

Mumbai: Airtel Payments Bank Ltd on Wednesday became the first payments bank to start operations, offering services in Rajasthan in a limited scale.

The payments bank is testing systems and processes ahead of a full scale, pan-Indian launch, the company said in a statement. Customers will be offered an interest rate of 7.25% on deposits in savings account, higher than the 4-6% commercial banks are offering, it said.

The pilot will run at 10,000 Airtel retail outlets where basic banking services will be provided. Airtel Payments Bank is planning to expand its merchant network in Rajasthan to 100,000 by the end of the year, the statement said.

Bank accounts can be opened by customers without documents using Aadhaar based e-KYC. The subscriber’s mobile number would function as a bank account number and transfer from Airtel to Airtel phone numbers would be free.

The bank is not offering any debit card facility right now, it said. The bank was the first applicant to receive the final licence from the Reserve Bank of India (RBI) in April. Kotak Mahindra Bank holds 19.9% in the Airtel Payments Bank.

The retail outlets, which will act as banking points, will offer account opening services, cash deposit and withdrawal facilities. As a payments bank it cannot perform lending activities, except while giving loans to its employees on approval of the board. The bank can, however, accept deposits of as much as Rs1 lakh.

According to RBI guidelines issued in November 2014, a payments bank will maintain cash reserve ratio with the central bank. Apart from it, they will be required to invest minimum 75% of their deposits in statutory liquidity ratio eligible government securities with maturity up to one year and hold maximum 25% in current and time deposits with other scheduled commercial banks for operational purposes and liquidity management,the guidelines said.

In August last year, the central bank had given in-principle approval to 11 applicants to set up payments bank by February 2017. Out of the 11 applicants, Cholamandalam Investment and Finance Co., Tech Mahindra Ltd and billionaire Dilip Shanghvi have already given up their approvals.

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

16.2. Vodafone cash infusion, 4G expansion fuel FDI in telecom to an all-time high

Livemint | Nov. 28, 2016

New Delhi: Foreign direct investment (FDI) in India’s telecom sector crossed $10 billion in the first seven months of the financial year, an all-time high, thanks largely to a mega-investment by Vodafone Plc. At $7.2 billion, the inflow was the highest in October, when Vodafone invested Rs47,700 crore, or $7 billion, in its Indian unit, to cut debt and help expansion.

“The average FDI in telecom has been about $1.5-2 billion every year and we were expecting about $2 billion (this year). In 2015-16, the investments (foreign) were $1.3 billion, and in the seven months of 2016-17, it has touched $10 billion,” an official in the department of telecom said, requesting anonymity.

Total investment in the telecom sector from April 2000 to September 2016 was $21.16 billion, the official added.

Vodafone India had a standalone debt of Rs81,500 crore at the end of 2015-16, and the company used the infusion to trim its debt to Rs35,430 crore. To be sure, the British parent also wrote down the value of its Indian business by €5 billion (around Rs36,460 crore) on 16 November, citing increased competition in India, a measure that doubled its global first-half loss.

Apart from the Vodafone investment, aggressive tariffs from Reliance Jio Infocomm Ltd since September too have triggered an uptake of the 4G network and investments on the supporting telecom infrastructure by rivals.

After the launch of 4G services in Uttar Pradesh East and West earlier this month, Bharti Airtel Ltd now has 4G presence in 21 of the 22 circles. Vodafone India currently has 4G presence in nine out of 22 circles and recently said it would expand to 17 circles by the end of March 2017. Last week, Idea Cellular Ltd said it will have 20 circles with 4G network by March 2017.

Spectrum auctions concluded in October also fuelled foreign investments. Telcos bid for spectrum worth Rs65,789 crore, buying a total of 965 Mhz of bandwidth.

“The reforms in the sector like spectrum sharing, trading, harmonisation and large-scale spectrum auction have boosted investments. They appear to have increased the confidence of foreign investors,” the government official cited above said.

In August, Singtel (Singapore Telecommunications Ltd) invested $659.51 million for a 7.39% stake in Bharti Telecom Ltd. Singtel already held 39.78% stake in the firm and also directly owned 15.01% share in Airtel through its subsidiaries Pastel Ltd and Viridian Ltd. Bharti Telecom is the holding company of Bharti Airtel Ltd.

Amresh Nandan, research director at Gartner Inc., believes that Jio has definitely had an impact on telcos changing their business strategies. “The investments have primarily been driven by these two companies--Singtel increasing its stake in Bharti and Vodafone Plc. investing in its Indian subsidiary. Bharti is changing its business strategies and Vodafone is undertaking rapid expansion,” Nandan said.

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

17. Apple plans to set up a distribution centre in India

Economic Times | Dec. 02, 2016

Kolkata: Apple will move to a dedicated distribution centre for its products in India for the first time, consolidating its logistics operations to ensure common pricing for offline and online sales and acquiring greater control over the supply chain.

Apple’s global logistics partner DB Schenker will own and operate the centre, which will come up at Bhiwandi near Mumbai, two senior industry officials said. DB Schenker, one of Europe’s largest logistics companies, has signed an agreement to run the Indian centre, which will help to ensure that Apple products are rarely sold out at the retail level, as it happened after the launch of the iPhone 7 and 7 Plus in October.

Currently, iPhones, iPads and Mac computers are brought into India through Chennai, Bengaluru, Mumbai, Chandigarh, New Delhi and Hyderabad – where value-added tax rates vary – and transferred to distributors from the airport itself.

Online sellers often source the devices from low-VAT markets, gaining a price advantage over their offline rivals.

“The distribution centre will allow Apple to stock its products adequately, will ease operations and streamline its logistics and supply chains. It will also help in maintaining uniform price for its products, which will become much easier under the Goods and Services Tax regime,” said one of the executives.

Email queries sent to Apple and DB Schenker seeking comment did not elicit any immediate response. Apple is expanding in India, widening distribution to the smaller cities and working with application developers.

The company was the country’s second-largest smartphone maker by revenue in 2015-16, pipping local rival Micromax Informatics after sales increased 54% to Rs 9,997 crore.

One industry executive said the distribution centre will help Apple provide hardware such as Mac computers tailored to the needs of business customers.

“Earlier, this flexibility was not there. The company is currently reviewing this and any such effort will be for enterprise clients only,” he said. Apple allows customisation only for consumers who place orders through its online store, which would require retail foreign direct investment approval from the government. Its retail and online store plans are still stuck after the government revised its FDI policy this year.

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

18.1. Govt and Intel join hands for developing solutions for real-time air and river water quality monitoring

Economic Times | Dec. 09, 2016

New Delhi: Indian government and the US multinational technology company, Intel, on Thursday joined hands for development of state-of-art solutions for real-time air and river water quality monitoring.

Aim of this initiative of the department of science and technology (DST) and the Intel is to develop key technologies for sensing, communication and analysis of large-scale data collected from autonomous networks. This will be followed by integration and deployment for water and air quality monitoring in real-time. Under the joint initiative, proposals from academic and research institutions are invited on developing online 'Water and Air Quality Monitoring' (WAQM) systems. The selected submissions will be provided grant-in-aid support. An amount of Rs 33 crore has been set aside for the project.

Elaborating on the DST-Intel collaboration, minister of state for science and technology YS Chowdary said, "I hope global experience will come in handy to tackle local challenges".

The programme will be administered by the Indo-US Science and Technology Forum (IUSSTF). This will eventually lead to development and deployment of low-cost, low-power, autonomous wireless sensor networks to provide a fine-grained view of several critical water and air quality metrics over large geographic areas (cities, rivers and watersheds).

The minister said this programme was very critical for the restoration, conservation and preservation of the environment. "Under the leadership of Prime Minister Narendra Modi, top priority is being given to R & D in science and technology to come out with appropriate solutions to challenges facing the nation", he said.

These online sensor networks for river water and air quality monitoring will provide the pre-remedial quality status. It is expected that the real time data will significantly strengthen and complement the missions of national priority like Namami Gange Programme and others by serving as critical data feeders for pre and post treatment analysis.

"Such networks may also eventually replace the current paradigm of environmental quality management via localized stations. The development of such an Internet of Things (IoT)-based solution will require innovations in sensor technology for miniaturized platforms for continuous, always-connected multi-modal sensing, ultralow power radios for efficient communication and energy harvesting technologies to enable very long or perpetual operation of sensor nodes", said a statement of the ministry of science and technology.

It said, "These key blocks will need to be woven together by a data analytics framework that spans edge devices, gateways and cloud-based analytics, to enable inferencing and sense-making in a low-latency manner".

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

18.2. RIL, GE in partnership to deploy industrial IoT

Livemint | Nov. 18, 2016

New Delhi: Reliance Industries Limited (RIL) and US-based GE on Thursday signed a global partnership agreement in the industrial Internet of Things (IoT) space to work together to build applications for GE’s Predix platform.

Predix is a cloud-based platform that helps firms develop apps and connect people with industrial businesses. Industrial IoT essentially uses the connected-devices technologies in manufacturing.

The partnership between RIL and GE will provide industrial IoT solutions to customers in industries such as oil and gas, fertilizers, power, healthcare and telecom.

“GE will provide its Predix cloud offering, industrial internet applications and data science expertise. RIL will develop solutions on Predix as an independent software vendor (ISV), bringing to bear its over 30 years of data, process and operational expertise,” RIL said in a press statement, adding that while it will offer nationwide 4G connectivity infrastructure to customers through its telecom venture Reliance Jio Infocomm, GE will offer the security and monitoring aspects of the platform to RIL and its customers.

“The potential for other revenue streams includes telecom, healthcare and agriculture,” RIL said.

“India needs to rapidly move to the next level of smart manufacturing which leverages big data, algorithms, and sensor technology. The presence of ubiquitous high bandwidth connectivity and cloud services enabled by Jio will be a key enabler for the rapid growth of industrial IoT within India,” said Mukesh Ambani, chairman and managing director, RIL.

The benefits include driving operational efficiencies, profitability and new revenue streams by making use of data and analytics. “A 1% productivity gain for companies creates $250 billion value over 15 years, across these key energy and infrastructure industries,” said the statement.

“The partnership with Reliance Industries will shape the future of the industrial internet not just in India but globally. The possibilities that it opens to develop solutions on our Predix platform for the industrial sector are endless,” said Jeff Immelt, chairman and chief executive of GE.

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

19. India key to our team for product development: Mark Papermaster, AMD chief technological officer

Economic Times | Dec. 05, 2016

New Delhi: Mark Papermaster took charge as the chief technological officer at semiconductor-maker AMD in 2011, bringing with him three decades of experience across companies like Cisco, Apple and IBM.

His time at the chipmaker has seen it reposition itself to a more rounded technology- and graphics company with a strong focus on the gaming sector. In an interview with Priyanka Sangani, Papermaster said AMD has worked for several years to strengthen tech arsenal and create compelling products.

AMD has R&D centres in Hyderabad and Bengaluru, housing about 1,000 of its 6,000-strong global tech team.

Excerpts:

What has AMD’s focus been after you took over?

This is an exciting time for AMD. We’ve been working for several years to strengthen our tech arsenal in CPUs and graphics and create compelling products. We looked at where the industry is going — augmented reality (AR) and virtual reality (VR) both need high performance CPUs and graphics, and we are bringing out our new products, which have been in development for the past three-four years.

What role do the centres in India play?

India is a key element of our development team and every aspect of product development. We have over 1,000 engineers here. The AMD strategy is focused on three pillars: gaming and immersive apps, which is VR and AR, compute – which is data centres, high-performance computing and high performance graphics – and semi-custom solutions, where we work with partners on products like the Xbox 1or PS4. The India design centre does a lot of key software and IP development with gaming and graphics, chip design and software as well as to create tailored solutions.

How do you see technologies like VR growing?

As with any new technology, some people are skeptical but there are always early adopters who are trailblazers and over time, we will see demand take off. We already have head mounted displays that provide high-end experiences and are seeing sufficient amount of content being created in the travel and education space. We are at the very beginning and as more content is created, will see it take off. Just like in c onsumergoods, there are tech cycles. Every 12-18 months, we will see new product revisions … it could be better screens or a wireless headset. As it becomes more affordable, more content is likely to be created and apps will take off. All it takes is one killer app for something to become popular.

What kind of work are you doing with the movie industry?

For movies, we are focusing on India because it is quite progressive and an early adopter of technology. Our chief graphics architect has created partnerships to leverage new technology to digitally render and deliver VR to bring this to the movies. We are starting with small but deep partnerships with the early adopters to prove the technology, like the movie Bahubali. In the first movie, a lot of the work was digitally rendered using AMD Radeon and for the second movie, we’ve created a VR trailer, shot using 360 degree capture.

Any specific areas that you’d like to focus on in the future?

There are a couple of areas that we expect to be high growth. One is compute: AMD products are very well suited for machine learning applications as they need CPU and GPU. Immersive computing is another area. Early applications like Bahubali are just the surface. It’s a nascent industry and will see significant growth for AMD to develop and support products.

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

20.1. No future for jobs in the info-tech sector

BusinessLine | 27 Nov. 2016 | Rajalakshmi Nirmal

The IT sector, country’s largest private sector employer with a total headcount of 3.7 million, may not offer as many jobs in the years to come.

Business growth has been teetering. From 13.9 per cent in 2013-14, IT export growth has dropped to 10.2 per cent in 2015-16 and is estimated to fall further to 8-10 per cent in 2016-17. Also, new-age technologies, including automation and artificial intelligence, are trimming manpower requirement. In the past five years, while IT exports have grown at an average 13.7 per cent annually, the headcount growth has been only 8 per cent.

In a report in June, HFS Research said that by 2021 India could lose 6.4 lakh low-skilled positions in IT services and the BPO industry because of the automation of support and back-office processing work. Taking into account the new medium/high-skill jobs that will be created, it forecast a net job loss of 4.8 lakh. The loss in jobs will be largely in middle-level positions, says Pareekh Jain, Research Vice-President, HFS Research.

“The industry is very top-heavy now, and it can’t sustain like this. In 2001, the distribution of junior-, middleand senior-level positions in the Indian IT services industry was 67 per cent, 31 per cent, and 2 per cent, respectively.

“But, now, the count of junior-level positions is less than half of the combined count of middle- and senior-level positions. This is leading to higher cost for companies and, since growth is falling, they are not able to pay for these high-cost employees… Every industry faces this problem, heavy recruitment in boom years creates problems in the mature phase.”

Not many jobs

If the intake of freshers by the IT industry drops and there is job loss too, it may push up the country’s unemployment rate. The IT sector is likely to add 5-6 lakh jobs between 2015-16 and 2018-19, or about two lakh jobs in a year, according to Nasscom. In the last five years, the industry generated 2.3-2.5 lakh jobs annually.

The employment scenario in other sectors is no better either. Labour Ministry data show that in 2015, the eight large sectors for employment — textile, leather, metals, automobiles, jewellery, transport, handloom/powerloom and IT/BPO — added only about 1.35 lakh jobs, a sharp drop from 4.21 lakh jobs in 2014. Baij Nath Rai, President, Bharatiya Majdoor Sangh, says, “We see job loss across sectors, especially in textile, handloom, and tea.... Now, if the IT sector is also going to trim its workforce, it may have a serious impact.” Employees in the IT sector need to be open to learning new skills, says Nasscom. Between 2015-16 and 2018-19, 1-1.5 million of the IT workforce will have to be re-skilled to be competitive.

External environment

In an interview to PTI, former Infosys CFO TV Mohandas Pai acknowledged that IT companies may have underestimated the hostile external business environment and the speed of change in the technology space. “The external environment is hostile... and change has been more rapid,” he said.

20.2. India is fastest-growing market for Altair: Brett Chouinard

Economic Times | Nov. 29, 2016

Pune: India, besides China, is the fastest-growing market for Altair, the world's largest privately held USbased developer of computer-aided software and high-performance computing technology. Brett Chouinard, chief operating officer of Altair, said each contributed about 10 per cent to the overall global revenues of the company. Chouinard recently visited the company's facilities here which has 600 employees in field as well as development operations.

Altair conducts physics-based simulation testing for the auto and aerospace industry and has been advocating a shift towards simulation-driven design. "If you use simulation to drive the direction of design, you end up reducing the overall development time," he said. "Simulation is becoming very important to our customers, as the development of products gets more complex. Simulations replace the actual physical testing required and make it more feasible and economical to develop a product in a shorter period of time and at a reduced cost." Chouinard said the work the company did was being impacted by a number of factors, mainly the rapid evolution of technology. "Technology is changing very fast and we have to keep up with the big changes. Connected cars, the internet of things, lightweighting and electrification of automobiles are all changing the content of the products we help our customers develop. It is encouraging us to develop new technologies for the customers," he said. The company has made a few acquisitions globally in recent months to gain the capabilities needed to help customers develop connected products. For instance Winprop, a company it acquired earlier this year, enables communication between a car and stationary things around it, as well as with pedestrians and other cars.

Chouinard said there was a move towards multi-physics simulations globally. "Earlier, the simulations would focus on only one aspect - fluid, electrical or mechanical flow. With multi-physics simulations, you have to concentrate on various aspects simultaneously, which leads to a reduction in development time and an increase in the introduction of technology," he said.

A significant change Chouinard sees in India is the MNC technical centers here turning decision makers from mere service providers. "With more products being created specifically for India, the amount of decision making and buying happening here has changed," he said.

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. How Indians triumphed in America

The Economist | Nov. 26th 2016, Sanjoy Chakravorty, Devesh Kapur and Nirvikar Singh.

America needs to consider what it might lose if it curbs the influx of clever, hard-working, entrepreneurial Indian immigrants IN THE early 20th century just a few hundred people emigrated from India to America each year and there were only about 5,000 folk of Indian heritage living in the United States. That was more than enough for some xenophobes. A government commission in 1910 concluded that Indians were “the most undesirable of all Asiatics” and that the citizens of America’s west coast were “unanimous in their desire for exclusion”. Today Indian-born Americans number 2m and they are probably the most successful minority group in the country. Compared with all other big foreign-born groups, they are younger, richer and more likely to be married and supremely well educated. On the west coast they are a mighty force in Silicon Valley; well-off Indians cluster around New York, too. “The Other One Percent” is the first major study of how this transformation happened. Filled with crunchy analysis, it exudes authority on a hugely neglected subject.

India’s diaspora is vast, with 20m-30m people spread across the world from the Caribbean to Kenya. In colonial times many moved as labourers after Britain abolished slavery in 1833, to build the east African railway, for example. In the 1970s a second wave of workers went to the Gulf during the oil boom. Perhaps the least well known flow of Indians abroad is the one to America. It picked up after 1965, when American immigration rules were relaxed, and surged after 1990. Three-quarters of the Indian-born population in America today arrived in the last 25 years.

Like all immigrant groups, Indians have found niches in America’s vast economy. Half of all motels are owned by Indians, mainly Gujaratis. Punjabis dominate the franchises for 7-Eleven stores and Subway sandwiches in Los Angeles. The surge in Indians moving to America is also intimately linked to the rise of the technology industry. In the 1980s India loosened its rules on private colleges, leading to a large expansion in the pool of engineering and science graduates. Fear of the “Y2K” bug in the late 1990s served as a catalyst for them to engage with the global economy, with armies of Indian engineers working remotely from the subcontinent, or travelling to America on workers’ visas, to make sure computers did not fail at the stroke of midnight on December 31st 1999.

Today a quarter or more of the Indian-born workforce is employed in the tech industry. In Silicon Valley neighbourhoods such as Fremont and Cupertino, people of Indian origin make up a fifth of the population. Some 10-20% of all tech start-ups have Indian founders; Indians have ascended to the heights of the biggest firms, too. Satya Nadella, Microsoft’s boss, was born in Hyderabad. Sundar Pichai, who runs Google, the main division of the firm Alphabet, hails from Tamil Nadu.

The authors of “The Other One Percent” have been careful to avoid the trap of explaining Indians’ success in America through their particular culture. Instead they argue it is “at its core a selection story”. Indians cannot walk across a border to America. Because of the filters of caste, class and a fiercely competitive education system, only those with above average financial and human capital get the chance to move to America. Most have travelled either as students or holders of H1-B working visas, which require a university degree, and then acquire residency. This visa system acts as a further filter.

Despite the light that the authors’ data-driven approach casts on this little-known story, there are some disadvantages. One is that it leaves little scope for exploring the dark side of India’s diaspora. Readers keen to peek at the underbelly should buy “The Billionaire’s Apprentice”, by Anita Raghavan, which was published in 2013. It is a brilliant account of the insider-trading ring that led to the downfall of Rajat Gupta, the former boss of McKinsey, a consulting firm. Fittingly he was pursued by a much-admired prosecutor of Indian descent. But the authors do touch on the most fascinating question of all: how this gilded corner of the diaspora influences India itself. Diplomatic relations between the two giant democracies have long been testy. But in other realms the bond has grown closer. The stars at the pinnacle of American society are celebrated back in India alongside rather un-American figures such as spin-bowling masters and Bollywood maidens. The American-educated children of India’s governing elite probably helped push India to open up its economy in 1991. The tens of billions of dollars of income earned in America by India’s big technology firms is crucial for its balance of payments. And a new generation of entrepreneurs who have led a boom in e-commerce in India in the last five years are almost all American educated, or have worked for American technology firms.

If, under its new president, America clamps down on immigration, the mutually beneficial movement of Indians will surely slow—they were the largest group of new immigrants in 2014, exceeding even arrivals from China and Mexico. That will be a loss, both to America and to India. In this new era of populism, “The Other One Percent” is a rigorous, fact-based analysis of how cross-border flows of brainy and ambitious people make the world a better place. Politicians and policymakers in both America and in India should make sure they read it.

(This article appeared in the Books and arts section of the print edition under the headline A model minority)

21.2. The bald truth is — the Raj ruined us

Book Review, Uday Balakrishnan, BusinessLine, 27 Nov. 2016

In a gripping but perhaps overly grim account, Shashi Tharoor argues that British rule had no redeeming features Shashi Tharoor’s latest, An Era of Darkness, is one breathless read. In it, he aggregates all the arguments required to establish that British colonial rule was an awful experience for Indians and he does so with a consummate debater’s skill. His book is, in fact, an expanded take on British exploitation of India that famously carried the day for Tharoor in an Oxford debate not too long ago.

According to Tharoor, there was nothing redeeming in British rule of our country. What India had to endure under them was outrageous humiliation on a humongous scale and sustained violence of a kind it had never experienced before. In short, British rule was, according to Tharoor, an era of darkness for India, throughout which it suffered several manmade famines, wars, racism, maladministration, deportation of its people to distant lands and economic exploitation on an unprecedented scale. An indignant Tharoor even demands a token restitution and public apology from the British for all the harm they had caused India. This is something, as his debate established, wildly popular in India.

Looted with impunity

Everything the British did in India, Tharoor asserts, was for their own benefit and never for that of the Indians. They also had, Tharoor tells us, perfected a policy of divide and rule, breaking treaties at will and making war and looting with impunity. Tharoor is right, of course. There are few Indians who would not have heard of the treachery that enabled Clive to triumph at Plassey or of the incredible amounts of ill-begotten wealth the East India Company officials hauled back with them to England. “One official,” Cyril Radcliff informs us, “was said to have pocketed 1,200,000 sterling in bribes from the Nawab of Carnatic: another pocketed 200,000 pounds.”

Given the opportunities he had to enrich himself in India, Clive was “amazed at his own moderation”.

There was scant appreciation, Tharoor tells us, of India’s contributions in men, material and money, to the wars that the British fought within India and overseas, especially the two World Wars. The well-known historian and Nehru’s biographer, Judith Brown, acknowledges that “British taxpayers contributed not a penny to the Raj”. Even Niall Ferguson, not one of Tharoor’s favourites, accepts that Indians paid for the “privilege of being ruled by the British”.

That British rule in India was bad in parts has never been denied by anyone, least of all by the British. Their archives are full of accounts of British depredations, covering the entire period of their rule in India. Several of their historians have brought out the suffering the British inflicted on India and Indians throughout their rule of our country. What Tharoor, however, seeks to establish through his book, is that British rule was unremittingly rotten and indefensible by the standards of its time and ours. He makes his points with bare-knuckle indignation and irresistible passion.

Tharoor mourns the annihilation of a gentle social order across the country which he believed was sustained through dialogue and held together by consensus. He also condemns the introduction of harsh and formal legal systems by the British, replacing much kinder, more accessible and personalised traditional ones. In his book, Tharoor is particularly derisive of parliamentary democracy, asserting that what was fine for a small number of people of a much smaller country, is wholly unsuited for a large and raucous one like our own.

Since we have traditionally been poor at archiving our past, practically all the sources that Tharoor rolls in, in support of his contention that British rule was ruinous to the country, are foreign and mostly British. One of them, the eminent economist, Angus Maddison, established that India’s significant share of the world’s trade (27 per cent) evaporated to single digits in no time at all under British colonial administration.

In the most interesting chapter in his book, ‘Did the British give India political unity’, Tharoor advances novel arguments to convince us that India would have emerged united, strong, modern and literate without British help and that claims to the contrary are false and made by apologists for British rule. Here, Tharoor is clearly on slippery ground. Venal as it was, British rule by most accounts, was not all bad.

It is not just the British who thought that their rule benefited India, quite a few Indians hold such an opinion too. One of India’s most respected scholars, the late MS Rajan, is clear that, “Perhaps the single greatest and most enduring impact of British rule over India is that it created an Indian nation, in the modern political sense.”

The makers of India

Kartar Lalwani’s very well researched book, The Making of India — The Untold Story of British Enterprise, is a compelling account of the great infrastructure the British created in India — the railways being one of the most important ones.

Manmohan Singh in a speech in Oxford hailed the British contribution to the making of India. “Today with the balance and perspective offered by the passage of time and the benefits of hindsight it is possible,” he said, “for an Indian Prime Minister to assert that India’s experience with Britain had its beneficial consequences too. Our notions of the rule of law, of a Constitutional government, of a free press, of a professional civil service, of modern universities and research laboratories have all been fashioned in the crucible where an age-old civilisation of India met the dominant Empire of the day. Our judiciary, our legal system, our bureaucracy, and our police are all great institutions, derived from British-Indian administration and they have all served our country exceedingly well.’’

We must not forget that by the time British rule ceased in India, the country had one of the most extensive railway networks in the world, a thoroughly professional army and an administrative system that has endured to this day. Under the British, most of the subcontinent has also been mapped and counted as never before. It was the British who made us aware of our rich cultural and linguistic heritage. The only two Nobel prizes awarded to Indians — Rabindranath Tagore and CV Raman — for quantifiable and verifiable achievements, came through during the British phase of our history. Some of our country’s finest educational and research institutions, as well as some of its biggest industrial houses, like the Tatas and the Birlas, were established when India was still a British colony. The era of darkness indeed had more light than Tharoor cares to acknowledge. However, the book has a significance that needs to be recognised.

In writing this book, it is obvious that instead of being even-handed, Tharoor has chosen to present the arguments against British rule in India with strength and force, and he is right in doing so. Until An Era of Darkness came along, there was no single work that clearly and unambiguously catalogued all the harm done to India under British rule.

Tharoor admirably fills the gap by holding a mirror to the British, and the West, that they have a case to answer. And answer they must, as old imperialisms, with renewed vigour and with the same specious ‘civilising’ arguments, have never really ceased devastating the world, from faraway places like now wellforgotten Grenada and present-day West Asia and the Middle East.

The reviewer is visiting faculty at the Centre for Contemporary Studies, Indian Institute of Science, Bengaluru

22. Adani Enterprises announces plan for 1,000 MW solar projects in Australia

Livemint | Nov. 28, 2016

Ahmedabad: Gautam Adani-led Adani Enterprises plans to develop 1,000 MW of solar power capacity in Australia over the next five years, the company said in a stock exchange statement on Friday.

The announcement came on a day the apex court in Australia’s Queensland state dismissed appeals by some environmental groups against granting of mining lease and environmental clearance to Adani Enterprises’ $7 billion coal mine project. The project has faced delays in execution because of lawsuits by environmental groups.

Welcoming the court’s decision, a company spokesperson said the ruling would pave the way towards starting work in 2017 on the Carmichael mine and associated projects, which include a railway line and expansion of port activities at Abbott Point.

The company, in its stock exchange filing on Friday, also said it had reached an agreement with The Whyalla City Council in South Australia to develop a $200 million solar generation project in the northern part of Whyalla.

The project would involve a 100MW solar generation plant, with potential capacity of up to 150MW, which would make it one of the largest in Australia on one site, it said.

The solar projects are in addition to Adani’s $16.5 billion investment in the planned Carmichael coal mine in Queensland’s Galilee Basin as well as rail and port facilities, it said.

Construction of the Whyalla solar project is due to start mid-2017 and be completed in around 12 months. The workforce will peak at 350 employees, with full-time operational staff to number up to five. A land purchase agreement has been signed with the council for the site, which is in an industrial land estate.

Adani currently has solar generation projects in India planned or operational totalling more than 1,400MW, including one of the world’s largest solar plants in Tamil Nadu which has a capacity of 650MW.

The CEO of the company’s Australian operations, Jeyakumar Janakaraj, said Australia presented enormous solar opportunities in Australia were enormous because it had the highest solar radiation per square metre of any continent in the world.

“Coupled with the company’s $3.3 billion dollars of investment to date across its mine, rail and port projects in Queensland, Adani’s plans to pursue solar investment opportunities reflect the confidence the company has in the Australian market,” Janakaraj said.

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

23. MAN Truck & Bus expects India to be one of its top 5 non-European markets by 2020

Economic Times | Dec. 19, 2016

New Delhi: India has the potential to grow into one of the top five non-European markets for MAN Truck & Bus AG by 2020, says the company's global CEO Joachim Drees. In an interview to Sharmistha Mukherjee, he says demonetisation has hit sales, but the situation should improve by the second half of 2017.

Edited excerpts:

How important is the Indian market for MAN Truck & Bus?

India is a key market and I come here often to focus on operations. We strengthened our management team here. Joerg Mommertz (appointed India CMD earlier this year) has been with MAN for years. He knows MAN really well, but more importantly, he knows the customer and the needs of the market. We put one of our most experienced managers here to increase volumes and also to improve exports out of India.

What has kept overseas firms from dislodging domestic players in India's commercial vehicle market?

Indian competitors have the right products and are very strong in the budget segment, which is big. But as the market becomes more sophisticated, there will be more opportunities for global truck makers to grow. Efficiency has to grow, total cost of ownership has to go down, tonnage has to go up. We will see similar behaviour in the Indian market; it is just a question of time.

We were just discussing the regulations coming into place such as the new law that all trucks have to be provided with air-conditioning. Then the new regime on GST, the demonetisation drive, all these me asures will lead to changes in business models. And we have localised our trucks and are very well prepared to meet the changes in the market here. We know that our competition is very strong but we can gain volumes and improve our market share in India.

You started operations in India through a joint venture that you terminated in 2012. How has the solo journey been for the company?

I think it was the right move. We are now in the process of increasing our footprint in the market by bringing in new products. We unveiled the CLA EVO range of trucks, offering our customers the benchmark in fuel efficiency. These trucks are close to 100% localised and designed at our R&D centre in Pune.

What role does the R&D team here play in the company's global operations?

Globally, we have two hubs in Germany for engines and truck development. For buses, we have some engineers in Turkey and Poland. And then, we have the centre in Pune, India. They develop trucks for the local market and also for exports. Besides, sales responsibility is also split region-wise. Some products are built only in India, so Mommertz and his team also have the responsibility to drive exports out of India , incollaboration with local partners and importers.

There are countries where we import both European-made premium trucks and trucks from India, so we have to streamline processes.

How has demonetisation impacted the company?

This year, we have to take a little bit of a downturn in November and December because of the demonetisation. But for us, India is one of the markets which are growing the most right now. I think the initiatives taken by the government will enhance growth further, maybe not in the very short term. These are very bold steps, but right steps which the government is taking.

When do you expect the Indian market to revive? What kind of growth are you expecting in 2017?

We are more ambitious for 2017. The market should pick up in the second half of next year. Four weeks ago, I could have given you the numbers, but given all the changes to predict market trend in 2017 is a bit challenging.

Does India have the potential to emerge as one of your key production bases?

We look at Europe as one market and then we look at markets out of Europe and there India can break into top five, domestic market plus exports, by 2020.

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

24. India Signs Open Skies Agreement With Six Countries During ICAN 2016

Press Information Bureau | Dec. 16, 2016

New Delhi: International Civil Aviation Negotiations (ICAN) - 2016 were held recently in Nassau from 5th to 9th December, 2016. In an informal conversation with media persons Shri R.N. Choubey, Secretary, Civil Aviation said that the Conference was attended by 106 countries out of ICAO membership of 191 countries. India held negotiations with 17 countries and “Memorandum of Understanding” was signed with 12 countries. The major issues resolved at these negotiations as per the directions in National Civil Aviation Policy (NCAP 2016) are:

1. Increase in traffic rights:- India renegotiated traffic rights with Oman increasing the entitlements with 6,258 seats effective from Summer 2017 as the existing entitlements were nearly exhausted. The points of call remained unchanged.

India agreed with Saudi Arabia to increase the capacity by 8000 seats per week from IATA season when Indian carrier’s utilization reaches 80%. This was in response to the needs of increasing traffic between the two countries where Indian carriers have been utilising open sky in Damman to mount more flights than the Saudi Arabian side.

Indian also agreed with Ghana to increase the present allocation of 2 frequencies to 7 frequencies per week to encourage connectivity between the two countries.

2. Open Skies agreement as per NCAP 2016 :- allows unlimited number of flights to six metro airports namely Delhi, Mumbai, Hyderabad, Kolkata, Bengaluru and Chennai, was signed with six countries namely Jamaica, Guyana, Czech Republic, Finland, Spain and Sri Lanka. The new arrangement will encourage connectivity and passenger travel between India and these countries.

3. New Air Service Agreements were signed with Jamaica and Guyana.

4. Code Shares:- In the present scenario code shares provide seamless connectivity to the travelling passengers and make possible connectivity between far off destinations not served by direct flights. As per NCAP 2016 code shares are to be encouraged and keeping this in view, negotiations were completed with 9 countries to enable the legal framework between the governments of these countries to make possible code shares between the airlines of two sides. The negotiations have enabled domestic code shares with Czech Republic, Portugal and Malaysia, domestic and international code shares including third country airlines with Guyana, removal of restriction of counting of capacity in case of code share with 3rd country carriers and domestic code share to additional two points to Mauritius, code share with 3rd country carriers and 4 additional domestic code share points with Saudi Arabia and Spain and code share with 3rd country carriers with Sri Lanka.

5. Resolution of other issues relating to Air Services Agreement was also completed with Ghana, Israel, Japan, Malaysia, Portugal, Hong Kong, Ethiopia and Bangladesh.

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

25.1. Claris to sell Baxter its generic injectables business for US$ 625 million

Livemint | Dec. 16, 2016

Ahmedabad: Claris Lifesciences Ltd will sell its global generic injectables business to US-based Baxter International Inc. for $625 million (Rs4,238 crore), the Ahmedabad-based company said on Thursday. The company said it intends to share a significant majority of net cash proceeds from the sale (post expenses and taxes) with shareholders.

The deal size is twice Claris’s market capitalization of Rs1,956 crore at Thursday’s closing prices. The transaction is expected to close by the second half of 2017. While the firm hasn’t specified how much it will return to shareholders, even if 50% of the money from the sale is shared, that translates into a one-time cash bonanza of Rs388 per share, higher than the current share price of Rs358.45.

But in return, shareholders are also signing away a good portion of the company’s earning capacity. For the last fiscal year, the global generics injectables business generated revenue of Rs623 crore in the year ended March 2016, contributing 78% to the consolidated sales of Claris. At the end of March, Claris had gross debt of Rs602 crore and net debt of Rs205 crore, according the firm’s investor presentation.

“The plan to return cash to shareholders is likely to boost sentiment. The stock price is expected to get adjusted to the per share amount the shareholders will actually get from the deal and how much earnings the company will give up,” said an analyst with a domestic brokerage, declining to be named.

In the fiscal year ended 31 March, Claris operated the global generic injectables business through several wholly owned subsidiaries. It has a total of 40 abbreviated new drug applications filed with the US Food and Drug Administration (FDA), of which 16 are approved, the firm said in a statement. The company markets its products in more than 75 countries.

The injectables business has also been one of the fastest growing for Claris expanding in double digits annually over the last several years driven by new product launches and geographic expansion. In 2016, Claris Injectables’s revenue is expected to be in excess of $100 million.

Thus, the deal has been valued at 6.25 times sales.

“Globally, the capacity of injectables assets is experiencing a shortage. Therefore, there will be a demand and premium for high-quality and scaled assets like Claris,” said Gautam Kothari, associate director at Equirus Capital.

The demand for injectable generic drugs in the US is likely to surge as injectable drugs worth $16 billion are expected to go off-patent in the US during the 2015-19 period. A July report by rating agency Icra Ltd said that the US generic injectables market will grow at an annual average of 10% over the next five years.

Indeed, Claris has been trying to sell its injectable business for the past two years. Sale talks were held up after the US FDA issued a warning to its Ahmedabad plant in May 2015.

There have been a couple of other big deals in this space. In 2013, Strides sold its injectables unit, Agila Specialties, to US-based Mylan for $1.6 billion. In July, Shanghai Fosun Pharmaceutical (Group) Co. Ltd said it will acquire India’s Gland Pharma Ltd, an injectables specialist, for $1.3 billion (Rs8,700 crore).

In a separate statement, Baxter said that the acquisition will provide it with a robust pipeline, marketed portfolio, research and development expertise and three FDA-registered manufacturing units. Claris Injectables will add proven capabilities in production of essential generic injectable medicines, such as anesthesia and analgesics, renal, anti-infectives and critical care in a variety of presentations including bags, vials and ampoules.

With the addition of Claris’s portfolio, Baxter plans to launch seven to nine new products annually over the next few years and 10-15 per year beyond 2019.

Credit Suisse and Jefferies acted as the financial advisers to Claris; Herbert Smith Freehills LLP, Veritas and AZB were legal advisers.

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

25.2. Carlyle set to acquire stake in vaccine maker Bharat Biotech

Livemint | Dec. 16, 2016

Mumbai: US-based private equity firm Carlyle Group is set to acquire a minority stake in Hyderabad-based vaccine manufacturer Bharat Biotech International Ltd, according to two people familiar with the development.

The investment, which will be made through Carlyle Asia Growth Partners, is around Rs250-300 crore, said one of the two, asking not to be identified. The size of the stake being acquired isn’t known.

Carlyle will buy the stake from existing investors ICICI Venture, International Finance Corp. (IFC) and Subhkam Ventures, which had invested in Bharat Biotech between 2005 and 2007.

“The term sheet between the parties have been signed two weeks ago and the deal is expected to be closed in a month’s time,” said the second person on condition of anonymity.

A Carlyle spokesperson declined to comment. Spokespersons at Bharat Biotech, ICICI Venture, IFC and Subhkam Ventures did not respond to emails.

The deal has been in the making since at least the beginning of the year. At the time, media reports had said that the deal could involve a 30% stake sale.

Bharat Biotech specializes in research and development, manufacturing, marketing and distribution of vaccines and bio-therapeutics.

Set up by Dr Krishna Ella (chairman & managing director), who worked as research faculty at the Medical University of South Carolina, Charleston, Bharat Biotech has 50 global patents to its name, of which five are for new molecules.

Bharat Biotech has received about Rs300 crore funding from various government agencies and NGOs such as the department of science and technology, department of biotechnology, Council of Scientific and Industrial Research and the Bill & Melinda Gates Foundation.

The vaccine maker has been in the news following its work on a vaccine candidate to prevent the Zika virus infection in humans. The company has completed pre-clinical studies and has sought government approval to begin phase 1 trials.

Carlyle, which has been an active investor in the Indian pharmaceuticals and healthcare space, also invested in Naresh Trehan-owned Global Health Pvt. Ltd, which manages and operates the super-specialty hospital Medanta the Medicity in the national capital region of Delhi.

In September 2015, Carlyle Asia Partners IV acquired about a 38% stake in diagnostic chain Metropolis Healthcare. Carlyle Group was also in talks to acquire the injectable drugs business of Claris Lifesciences Ltd, Mint reported in August.

According to Investec, a global specialist banking group, private equity investors in the Indian healthcare sector will exit close to $3 billion of primary investments in the next two-three years through secondary sales and public market listings.

Between 2011-12 and now, 233 healthcare companies have received a little more than $4 billion in funding from private equity funds and strategic investors, making India’s healthcare sector one of the most soughtafter destinations for domestic and global investors.

India’s pharmaceutical market may reach $20 billion this year and about $55 billion by 2020 from about $18 billion in 2014, clocking a compound annual growth rate of over 22%, according to a joint study by the Associated Chambers of Commerce & Industry of India (Assocham) and TechSci Research released in June.

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

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