AAPI: August 2016

LISBON, 20th August 2016

Index of this Newsletter

INDIA

INDIA & THE WORLD

21. Cabinet approves a MoU signed between India and the Swiss Confederation for cooperation in skill development
22. Dabur takes a small step in southern Africa
23.1. India-US launch innovative agriculture programme to address global challenges
23.2. India - US to collaborate for first time in R&D in traditional systems of medicine for various diseases
24. India seeks greater market access for pharma, marine products from Japan
25.1. India plans to set up SEZ in Myanmar
25.2. Cabinet approves signing of Air Services Agreement between India and Lao

* * *

LISBON, 20th August 2016

NEWSLETTER, 20-VIII-2016

INDIA

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

1.1. GST cleared: One nation, one tax gets going

Business Standard | Aug. 04, 2016

New Delhi: A high-pitched debate. Worry about the future. Voting. And, the Goods and Services Tax (GST) Constitution (Amendment) Bill was passed by the Rajya Sabha on Wednesday evening.

At final count, all the 203 members present in the upper House voted in favour of the Bill. The AIADMK, with 13 members, had staged a walkout over disagreements.

Now, a few more steps would enable the Centre and states to frame laws on the new indirect tax.

The GST regime would be a historic economic reform, making the country a unified market. But, it requires

further consensus on the GST Bills over which differing opinions were voiced by the Opposition and the

Treasury benches.

This indicates the road ahead for the GST - planned to be implemented on April 1, 2017 - will be challenging. The Congress tried and failed to get an assurance from Finance Minister Arun Jaitley that rates would be capped in the GST Bills and that the Central GST Bill would be a financial legislation - not a money Bill. The Rajya Sabha cannot reject a money Bill.

There were also divergent opinions on the dispute-resolution mechanism. Even as administrative control over

scrutiny and assessment of tax remained an issue, Jaitley assured the House it would be resolved. "The GST

Bill is the most reformative tax reform," he said, adding it would give the country an economic boost.

"Legislation of this kind cannot be based on partisan considerations. Almost every major party is a part of the power structure in the country. A larger political consensus was necessary. We have worked towards it."

There was a broad consensus, but unanimity remained elusive with the missing AIADMK members at the time of voting.

When the GST regime comes into force, it will subsume a slew of indirect central taxes, including excise duty, service tax, countervailing duty and those of the states, such as value added tax, sales tax, luxury tax and octroi.

The Bill was passed in the Rajya Sabha one-and-a-half years after the Lok Sabha cleared it. It became possible after the government yielded to some of the Congress' demands, such as scrapping a contentious one per cent additional levy on inter-state supply of goods. Other amendments related to compensating states for revenue loss for up to five years and requiring the GST council to establish a mechanism for adjudication of disputes between the Centre and states or among states.

The new Bill, with the amendments, will return to the Lok Sabha at the earliest - possibly by next Monday - to get its nod.

Former Union finance minister P Chidambaram wanted disputes other than those arising out of the proposed

GST Council's recommendations should also be taken up by the dispute-resolution mechanism that will come

up. Jaitley highlighted the co-operation of the Centre and states for the GST. "The Centre and the states will

have to work together. This will be federalism at play."

Jaitley added the GST would bring about the best economic management. "It will empower the states and

increase revenue. It will discourage and bring down evasion."

The finance minister allayed fears that the proposed GST would increase inflation.

Congress leader P Chidambaram said he welcomed the "friendly and conciliatory tone" of the finance minister Jaitley, who later said the amended Bill will be introduced in the Lok Sabha "very soon".

The debate on Wednesday saw divergent views on subsequent GST Bills.

Most political parties in the Opposition, including Congress, Communist Party of India (Marxist), Janata Dal

(United), Samajwadi Party and Trinamool Congress demanded the Central GST Bill and the Integrated GST

Bill be passed by both Houses - not as a money bill, which only requires approval by a simple majority in the

Lok Sabha.

Chidambaram said, "I want an assurance from the finance minister that GST will be brought as a financial Bill

and not a money Bill."

His party colleagues Jairam Ramesh, Gulam Nabi Azad, Kapil Sibal supported him.

However, Jaitley said he could not give an assurance as the proposed GST Council is yet to be set up. "It has not even framed the draft GST Bills."

Congress also pressed for a low GST rate, which is ring-fenced in the subsequent GST Act. "On behalf of my party, we demand the standard rate of GST - which applies to over 70 per cent of the goods and services - should not exceed 18 per cent," said Chidambaram.

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

1.2. GST could lead to 8%-plus yearly growth: Shaktikanta Das

Business Standard | Aug. 05, 2016

New Delhi: Economic Affairs Secretary and former revenue secretaryShaktikanta Das said on Thursday the

goods and services tax (GST) implementation may not necessarily lead to any short-term inflationary pressure. In an interaction with Arup Roychoudhury, Das also said that the uniform tax law could lead to growth exceeding eight per cent over the next two-three years, and expressed confidence that the deadline of April 1, 2017 will be met.

Excerpts:

How big is the GST reform and how will it impact the economy?

It is the biggest tax reform in independent India. It completely transforms the fiscal architecture in the Constitution. You had indirect taxation parallely being levied by the states and the Centre. Now, you will have common indirect taxation, where Centre and states are equal partners. GST places Centre and states on equal footing, with regard to levy and collection of indirect taxes.

It will infuse a lot of efficiency and energy into the economy, by way of reducing production costs. The benefit of input tax credit is now available across the country. India is one market. You may buy your raw materials in Maharashtra, you may have your manufacturing unit in Tamil Nadu or Gujarat; you will get the tax credit. Therefore, costs of manufacturing and logistics and transportation will go down. At present, the average waiting time for trucks can go up to 48 hours at checkposts. Now, there will be no barriers. There will be seamless movement of goods. These are the broad benefits. GST will revive the investment climate in India and, in the medium term, say two-three years, we can expect annual growth to be eight-plus per cent.

Passage of the constitutional amendment is a big step but there is still a lot to be done. Can the rollout target of April 1, 2017, be met?

It is doable. The critical factor is timely movement in all the steps that are yet to be taken. Which requires the

cooperation and active participation of all stakeholders. I think the states are also sufficiently sensitised to

work closely to make this happen. State governments are keen that it should come as early as possible.

To what extent will GST impact inflation over the short term?

As the finance minister explained on Wednesday in Parliament, the combined impact of central excise and

value-added tax is in the region of 27 per cent. In some states, it could be as high as 30 per cent, due to local surcharge. So, the combined Centre-state impact of taxation is 27-30 per cent. When we are talking about a rate, we are talking in the range of 18-24 per cent. In the public space, numbers in this range are the ones being discussed.

In the end, a balanced rate will be decided, which will protect the revenue interest of states, which does not

take the positivity out of GST, and which is non-inflationary and good for the consumer. If we are looking at a rate of 24 per cent and below as compared to 27-30 per cent, where is this talk of inflationary pressure coming from? India will become one common market. The benefit of tax credit will be available across the country.

Cost of manufacturing will go down. It might not lead to an immediate lowering of prices but, in the long run, it is expected to have a sobering impact on inflation.

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

2.1. Wind Solar Hybrid Policy to strengthen energy security of India

Press Information Bureau | Aug. 02, 2016

New Delhi: The Government has formulated draft National Wind-Solar Hybrid Policy with the objective to

provide a framework for promotion of large grid connected wind-solar PV system for optimal and efficient

utilization of transmission infrastructure and land, reducing the variability in renewable power generation and

thus achieving better grid stability. Further, the Policy aims to encourage new technologies, methods and wayouts involving combined operation of wind and solar PV plants.

Solar and wind being almost complementary to each other, hybrid of two technologies would help in

minimizing the variability apart from optimally utilizing the infrastructure including land and transmission

system and thus strengthening the energy security of the country.

This information was given by Shri Piyush Goyal, Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines in a written reply to a question in the Rajya Sabha today.

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

2.2. More than 44,235 MW accumulative capacity of renewable energy installed in the country

Press Information Bureau | Aug. 05, 2016

New Delhi: Shri Piyush Goyal, Minister of State (IC) for Power, Coal, New & Renewable Energy and Mines today informed the Lok Sabha in a written reply that total accumulative capacity of over 44235 MW have been installed in the country from various renewable energy sources. These sources include 27151 MW of Wind Power, 7805 MW of Solar Power, 4304 MW of Small Hydro Power and 4975 MW of Biopower.

Shri Goyal stated that Government of India is implementing several scheme for the promotion of Solar Power

in the country including hilly/ mountain states like solar rooftop Scheme, scheme on Off-grid & Decentralized

Solar Applications, solar Park Scheme for setting up of Solar Parks and Ultra Mega Solar Power Projects

targeting over 20,000 MW of solar power projects, scheme for setting up 1000 MW of Grid-Connected Solar PV Power Projects by Central Public Sector Undertakings (CPSUs) and Government of India organisations with Viability Gap Funding (VGF), scheme for setting up over 300 MW of Grid-Connected Solar PV Power Projects by Defence Establishments and Para Military Forces with Viability Gap Funding(VGF), pilot-cumdemonstration project for development of grid connected solar PV power plants on canal banks and canal tops, bundling Scheme - 15000 MW grid-connected solar PV power plants through NTPC Ltd./ NVVN and VGF Scheme for setting up of 2000 MW of Grid Connected Solar PV Power Projects through SECI.

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

3.1. NITI Aayog's Initiative to Create a Framework for Operating 500 Tinkering Labs Across India

Press Information Bureau | Jul. 19, 2016

New Delhi: NITI Aayog is organizing an Expert Consultative Group Meeting on Creating a Framework for

Operationalizing 500 Atal Tinkering Labs, ATL at Faculty Development Centre, Shankar Vihar in New Delhi tomorrow on July 19, 2016. The consultations during 9:30 am till 12:30 pm will provide a platform for exchange of ideas and knowledge among the experts to help create and put in place a framework for the 500 Atal Tinkering Labs (ATL) that will be established in schools all across the country. The technical support for the consultations is being provided by the Intel Technology India Pvt. Ltd. This meeting will be followed by NITI Aayog signing a Statement of Interest (SoI) with Intel to further innovation among school children during 3.30-5 pm at Niti Aayog . Atal Tinkering Labs’ initiative is a part of the Atal Innovation Mission (AIM), which is an umbrella platform to foster innovation and entrepreneurship in India. ATLs are workspaces where young minds can work with equipment and kits to understand the concepts of Science, Technology, Engineering and Math. The objective of setting up these labs is to foster curiosity, creativity in young minds; and inculcate skills such as design mind set, computational thinking and adaptive learning.

Makers, practitioners, schools and civil society are invited to discuss, deliberate and help create a Tinkering

Lab Framework (TLF) which would act as the guideline for all the selected schools to establish Atal Tinkering lab. The discussion topics would range from what needs to be there in a lab; do-it-yourself activities; content; engagement with the community; a hands-on workshop to series of educational lectures. Through the open forum, NITI Aayog will look forward to attempt to understand how the maker’s community can assist the ATL to accomplish the mission of fostering an innovation ecosystem at the school level.

CEO, NITI Aayog, Mr. Amitabh Kant, Secretary, Department of School Education & Literacy, MHRD, Dr. S. C. Khuntia, Senior Advisor, NITI Aayog, Dr. C. Muralikrishna Kumar, Vice President - Corporate Affairs at Intel Corporation, and President of the Intel Foundation, Rosalind Hudnell, and Director of Corporate Affairs Group, Intel South Asia, Kishore Balaji, will be present at the meeting.

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

3.2. Approval for setting up of IT/ITES SEZs

Press Information Bureau | Jul. 21, 2016

New Delhi: Government has approved the proposal for setting up of IT/ITES Special Economic Zones in

many parts of the Country. As on date, the Board of Approval (BoA) has approved 259 proposals for setting up of SEZ relating to Information Technology/Information Technology Enabled Services (IT/ITES)/ Electronic Hardware sectors SEZs in many parts of the Country.

In terms of Rule 6(2)(a) of the Special Economic Zones Rules, 2006, the letter of approval granted to a SEZ

developer is valid for a period of three years within which time effective steps are to be taken by the developer to implement the approved proposal. The Board of Approval may, on an application by the developer, extend the validity period of the letter of approval. SEZ developers have sought extension of validity period of the letter of approval granted to them for the execution of their projects for various reasons including adverse business climate due to global recession, delay in approvals from statutory State Government bodies, delay in environmental clearance, lack of demand for space in SEZs, unstable fiscal incentive regime for SEZs etc.

During the last four years and current financial year (upto 15th July, 2016), extension of time have been granted to 139 developers of SEZ including IT/ITES Sector across the country to complete their projects. This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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

4.1. Govt plans tech centres to meet chemical industry's technology, manpower needs

Livemint | Jul. 29, 2016

New Delhi: The government is planning to build several research and development centres in high-end chemistry that will help industries produce value-added items from refinery by-products and other chemicals, a government official said. The decision aims to help the domestic chemicals and petrochemicals industry move further up from being the sixth largest in the world and the third largest in Asia after China and Japan. Anuj Kumar Bishnoi, secretary in the ministry of chemicals and petrochemicals, said the government was working on a proposal to set up an advanced research and training institute in chemical engineering similar to the one that exists in of petrochemicals—the Chennai-based Central Institute of Plastics Engineering & Technology (CIPET).

The proposed institute to be called the Central Institute of Chemical Engineering & Technology (CICET) will offer support services to businesses in technology, design and testing and will train engineers and scientists

through its various centres in different parts of the country. Operations of CIPET will also be scaled up by

setting up more centres.

“The spirit of the Make in India initiative is built into the research programmes and in the large Petroleum,

Chemicals and Petrochemical Investment Regions (PCPIRs) being set up. This industry can develop products in which value addition from the basic building blocks can be up to 20 times. There can never be enough research and development,” said Bishnoi. Refinery by-products like ethylene, propylene and butadiene are the building blocks of the entire gamut of petrochemical derivatives that go into everyday use products, including detergents, paints, tyres, automobile parts, fashion accessories and cosmetics.

At present, four different PCPIRs are at different stages of development in the Vishakhapatnam-Kakinada

region in Andhra Pradesh, Dahej in Gujarat, Paradeep in Odisha and Cudalore-Nagapattinam in Tamil Nadu. The Central government provides road, port and rail infrastructure as well as viability gap funding to investors setting up factories, while state governments provide electricity. These investment regions, with a refinery and cracker complex surrounded by downstream chemical and petrochemical factories, are capital intensive projects which could take about 10-15 years to reach their full potential.

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

4.2. NSDC to open 50 India International Skill Centres across the country

Economic Times | Jul. 18, 2016

Lucknow: The National Skills Development Corporation will open 50 India International Skill Centres in the

country by the end of the year. In the initial phase 15 centres were announced open by the President Pranab

Mukherjee on Friday which will give training to domestic workers, healthcare workers, retail, security, capital goods, auto, construction tourism and hospitality. Of the 15 centres opened, six are in Uttar Pradesh, the largest beneficiary state.

The centres being set up by NSDC would be imparting training under the Pradhan Mantri Kaushal Vikas

Yojana (PMKVY) and Pravasi Kaushal Vikas Yojana (PKVY) to youth seeking global mobility or migrating overseas for jobs. The Ministry of External Affairs shall provide support for Pre-Departure Orientation Training, which includes language and soft skills training modules to the selected youths. Of the 15 centres, six are in UP, followed by two in Kerala, and one each in Jharkhand, Bihar, Andhra Pradhesh/Telangana, West Bengal, Maharashtra, Punjab and Rajasthan.

CEO, NSDC, Jayant Krishna said of the six centres in UP two will come up in Lucknow and Varanasi, and one each in Gorakhpur and Maharajganj. He said that the centre would help increase employability of youth in India and also abroad.

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

5.1. Government gives a push to port-led development

Press Information Bureau | Jul. 21, 2016

New Delhi: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the

incorporation of Sagarmala Development Company (SDC) under the Companies Act, 2013. SDC will be under the administrative control of the Ministry of Shipping. It will provide equity support to the project Special Purpose Vehicles (SPVs) and funding support to the residual projects under the Sagarmala Programme. SDC will be incorporated under the Companies Act, 2013, with an initial Authorized Share Capital of Rs. 1,000 Crore and a Subscribed Share Capital of Rs. 90 Crore.

Implementation of the identified projects will be taken up by the relevant Ports, State Governments / Maritime Boards, Central Ministries, mainly through private or PPP mode, provide equity support for the project Special Purpose Vehicles (SPVs) set up by the Ports / State / Central Ministries window and /or implement only those residual p cannot be funded by any other means / mode.

SDC will Identify port-led development projects and assist the project SPVs in project development and

structuring activities, bidding out projects for private sector participation, putting in place suitable risk

management measures for strategic projects cutting across multiple States / Regions and obtaining requisite

approvals and clearances. Since the Identified projects will be undertaken by multiple agencies, SDC will also work as the nodal agency for coordination and monitoring of all the currently identified projects as well as other projects emerging from the master plans or other sources. SDC will undertake the preparation of the detailed master plans for the Coastal Economic Zones (CEZs) identified as part of the NPP and provide a framework for ensuring the integrated development of Indian maritime sector.

As part of the coastal community development objective of the Sagarmala Programme, the Ministry of

Shipping is taking up a number of initiatives/projects. Notable among them are the coastal community skill

projects and projects for development of marine fisheries sector.

Skill development projects taken up' include coastal district skill gap analysis study/ cutting-edge skill training

in the ports & maritime sector, safety training in ship-breaking & repair sector, coastal districts skill training as part of Deen Daygl Upadhyaya Grarneen Kaushalya Yojana (DDU-GKY) and marine fishermen skill

development projects.

Ministry of Shipping, in collaboration with the Department of Animal Husbandry, Dairying & Fisheries (Ministry of Agriculture), will part-fund select fishing harbour projects under the Sagarmala Programme. While identifying the projects, priority will be given to those projects which are nearing completion. Ministry of Shipping is also preparing a coastal community development scheme, in convergence with the existing

Central/State Government schemes.

One of the important roles assigned to SDC is to manage the coastal community development scheme and

fund coastal community development projects identified under the Sagarmala Programme. The projects

considered would be specific time-bound local interventions and innovative in nature.

SDC will be raising funds as debt/equity (as long term capital), as per the project requirements/ by leveraging

.resources provided by the Government of India and from multi-lateral and bilateral funding agencies. SDC

will also aim to increase the scope of private sector participation in project development.

Background:

The Sagarmala Programme was launched with the approval of the Union Cabinet on 25th March 2015, with a view to achieve the broad objective of promoting port-led economic development in India. In order to harness India's 7,500 km long coastline, 14,500 km of potentially navigable waterways, and strategic location on key international maritime trade routes, the Government has embarked on the ambitious Sagarmala Programme which was approved by the Cabinet on 25th March, 2015.

As part of the programme, a National Perspective Plan (NPP) for the comprehensive development of the

coastline and maritime sector has been prepared. The NPP has identified more than 150 projects across the

areas of Port Modernization & New Port Development, Port Connectivity Enhancement, Port-led

Industrialization and Coastal Community Development.

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

5.2. Railways plans Rs 7,000 crore ($1,1 bn) investment in north-east

Livemint | Aug. 01, 2016

New Delhi: Railway minister Suresh Prabhu on Sunday flagged off Tripura Sundari Express, the first

passenger train that will connect Agartala with New Delhi. The train will run once a week with a journey time of 47 hours.

The railways will invest more than Rs.7,000 crore in the current fiscal year to develop its network in the seven north-eastern states, Prabhu said, adding, in 2014-15, only Rs.2,702 crore was spent for this purpose. Initiatives for better connectivity in the region will result in all-round development in the north-east and gradually, the region will have the highest per capita income in the country, Prabhu said. The minister also announced plans to start an Agartala-Kolkata train service.

“Increase of inter-state connectivity and connectivity between the region and the rest of the country are being

given the highest priority. Available connectivity will boost the region’s economy,” Prabhu said.

At a function in Agartala, the minister also laid the foundation stone for a 15km rail link that will connect the

capital of Tripura to Akhaura in Bangladesh.

If the facilities of the Chittagong port can be used, then trade and economy of both north-east India and

Bangladesh will flourish, he said.

The minister added that India is keen to increase railway connectivity with Bangladesh.

The Agartala-Akhaura link will facilitate trade and people-to-people ties. It is also expected to facilitate transit from Chittagong and Mongla ports in Bangladesh to Tripura and the north-east.

Bangladesh railway minister Mazibul Hoque, who attended the function, said Prime Minister Sheikh Hasina

had announced plans to revive all pre-1965 railway connectivity with India.

“We want very close connectivity between our two friends (India and Bangladesh) and closer people-to-people relation,” Hoque said, adding Prime Minister Narendra Modi and Tripura chief minister Manik Sarkar had also agreed to help Bangladesh curb terrorism.

While lauding Bangladesh for cooperation and help in establishing the rail link, Prabhu said more options for

connectivity with the country would be explored. Referring to the problem of land acquisition for railway

projects, he said the Agartala-Akhaura link is planned as an elevated line to minimize land acquisition.

Prabhu said the Indian Railways Catering and Tourism Corp. (IRCTC) would be advised to explore the

possibility of developing tourist packages including in the north-east and Bangladesh to connect more people

to the region.

Acknowledging the current fuel crisis in the state because of its poor road connectivity, the minister said he

had instructed officials to take steps to bring more fuel through railways.

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. Setting up of ripening chambers for the benefit of farmers and entrepreneurs

Press Information Bureau | Jul. 20, 2016

New Delhi: Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW) is implementing Mission for Integrated Development of Horticulture (MIDH) for holistic development of horticulture in the country including creation of post-harvest management infrastructure to reduce losses of perishable horticulture produce. Post-harvest management component includes establishment of setting up of pack house, precooling, primary processing, cold chain, refrigerated transport, ripening chambers etc.

These components are demand & entrepreneur driven for which credit linked back ended subsidy is available through respective State Horticulture Missions. An entrepreneur can avail assistance for establishment of ripening chamber @ 35% of admissible project cost in general areas and @ 50% in hilly and schedule area as credit linked and back ended subsidy. The admissible cost for ripening chamber is Rs. 1.00 lakh per MT limited to maximum of 300 MT capacity. State wise assistance sanctioned under MIDH for establishment of ripening chambers is given below in table.

Capacity building of field staff and farmers is one of the major components of MIDH. State Horticulture

Missions are organizing regular training programmes and workshops on Post-harvest Management (PHM)

including ripening chambers for the benefit of farmers and entrepreneurs. Further, National Centre for Coldchain Development (NCCD), an autonomous organization under Department of Agriculture, Cooperation & Farmers Welfare is holding workshops and training programmes in various parts of the country for ripening chamber operators and farmers for awareness and technical information for establishment and running of ripening chambers.

This information was given by the Minister of State for Agriculture and Farmers Welfare, Shri Sudarshan

Bhagat today in a written reply to a Lok Sabha question.

State wise financial assistance sanctioned for establishment of ripening chambers under MIDH (NHM & NHB) till March 2016

(Rs. In Lakh)
State	No. of Projects	Assistance sanctioned
Andhra Pradesh	45	695.16
Assam	1	25.60
Chhattisgarh	1	19.36
Goa	2	31.00
Gujarat	52	1344.69
Haryana	11	542.32
Himachal Pradesh	2	31.22
Jammu & Kashmir	2	47.11
Jharkhand	1	12.50
Karnataka	40	457.83
Madhya Pradesh	5	171.06
Maharashtra	73	1628.62
Orissa	4	62.00
Punjab	17	669.12
Rajasthan	25	643.07
Tamil Nadu	14	340.27
Telangana	20	496.88
Uttar Pradesh	34	1008.77
Uttarakhand	1	24.00
West Bengal	1	30.00
Total	351	8280.58

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

6.2. ITC looking to invest in cold chains to grow agri-business

BusinessLine | 22 Jul. 2016

Diversified conglomerate ITC Ltd is planning to invest in “state-of-the-art” cold chains to cover farm produce that include fresh and frozen fruits and vegetables, said Chairman and CEO YC Deveshwar.

Addressing shareholders during the company's 105th annual general meeting here on Friday, Deveshwar said

the company would look to establish cost effective regional cold chains across the country.

“Your company will enhance its leadership in the farm-to-fork value chain,” he said, addressing in what is

supposed to be his last annual general meeting as the executive chairman of the company.

According to the Chairman, ITC has already launched “luxury chocolates” — targeting the premium segment

— under the ‘Fabelle’ brand.

The chocolates are currently available at its hotels in Kolkata and Bengaluru.

“Very soon the Fabelle chocolates will be available at all ITC hotels, before being extended more widely,” he said.

The company is also in the process of launching a premium variant of coffee ‘Sunbean’.

The launch is expected “shortly”. According to sources, the Sunbean coffee is currently available at the coffee shop in its Kolkata hotel.

A set of new “super safe” spices at par with European standards is also set to be launched shortly.

Deveshwar has reiterated that ITC had targeted a ₹1,00,000 crore turnover from its new FMCG segment by 2030 and that it aimed to be an “Indian MNC” brand in the days to come.

Around 81 per cent of the value addition created by the company accrues to the exchequer at central and

state levels.

Praising Baba Ramdev’s Patanjali as one such Indian brand to reckon with, Deveshwar said: “I am very proud that Patanjali has built an Indian brand, but, we will also compete with them. Competition is good for

consumers.”

Functional food

The company is also in the process of addressing widespread concern of Indian population in areas such as

diabetes, cognition, gut and cardiovascular health.

"Similarly, the product development in the personal care arena will be inspired from research focusing on

Indianness, namely a blend of Indian genetics and environmental factors of prime relevance to Indian

consumer of personal care products,” he added.

In the foods business, the company was “progressively entering” the health and wellness space. “A plethora of possibilities is being examined in functional foods and food fortification for better nutrition,” Deveshwar said.

These “science-led” innovations will be boost the food business.

The company’s plans to “cultivate medicinal and aromatic plants” have made rapid progress.

Tobacco biz upbeat

Growth of ITC's tobacco business was good for its shareholders, the Chairman said.

The comments came after some shareholders pointed out that the growth of the tobacco business should

ideally be less than that of others (non-tobacco and FMCG business).

“We are not competing within the company. The other FMCG businesses grew and along with that the tobacco business grew further. Growth of the tobacco business will be good for shareholders,” he said.

The tobacco business was increasingly coming under prohibition by various government regulations but continued to be the prime revenue driver of the company.

7.1. Production of Apple increases by about 36% in 2015-16

Press Information Bureau | Aug. 01, 2016

According to the information received from the states so far, there is likely to be an increase of about 36% in

apple production in the country during the year, 2015-16 as compared to the previous year, 2014-15.

The details of the production of apple during each of last three years and the estimated production during the

current year in major apple producing States, State-wise is given below.

Production of Apple in Major Apple Producing States
Production in '000 MT
STATES/UTs	2012-13	2013-14	2014-15	2015-16 (Provisional)
JAMMU & KASHMIR	1348.15	1647.69	1368.63	2003.07
HIMACHAL PRADESH	412.40	738.72	625.20	753.35
UTTARAKHAND	123.23	77.45	106.10	106.14
OTHERS	31.60	33.82	33.91	34.03
TOTAL (All INDIA)	1915.38	2497.68	2133.84	2896.59

Source: Horticulture Statistics Division, Department of Agriculture,Coopn & FW

This information was given by the Minister of State for Agriculture & Farmers Welfare, Shri Parshottam Rupala today in Rajya Sabha.

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

7.2. India produced 2.158 million tonnes of flowers during 2015-16

Press Information Bureau | Aug. 03, 2016

Due to favourable agro-climatic conditions prevailing in the country, India produces 2.158 million tonnes of

flowers during 2015-16. Flower crops are grown in almost all the States. The major flower growing States are Tamil Nadu, Karnataka, West Bengal, Madhya Pradesh, Mizoram, Gujarat, Andhra Pradesh, Odisha,

Jharkhand, Haryana, Assam, Chattisgarh, Himachal Pradesh and Maharashtra. Flowers are being exported

from India to about 150 countries in the world and India’s share in the world floriculture trade and exports is

less than 1%.

The Mission for Integrated Development of Horticulture (MIDH) provides assistance for development of

horticultural crops including flowers. Floriculture farmers are provided assistance @ 40% of the cost ranging

from Rs.40,000 per ha. to Rs.150,000 Rs.per ha. limited to 2 ha per beneficiary. Besides, the technological

support is provided by the Indian Council of Agricultural Research, which has established a full-fledged

Directorate of Floricultural Research at Pune to address the issues specific to floriculture research.

This information was given by the Minister of State for Agriculture & Farmers Welfare Shri Parshottam Rupala in Lok Sabha today.

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

8. AERA exempts small aircrafts from landing fee, will boost regional connectivity

Economic Times | Jul. 27, 2016

New Delhi: The Airports Economic Regulatory Authority (AERA) has corrected the anomaly in its earlier tariff orders and has exempted aircraft with 80 seats or less from being charged a landing fee, a move that's going to give a fillip to the regional connectivity plan.

According to an earlier tariff order, which is still in force, AERA had allowed airport operators of Delhi and

Mumbai to charge landing fee to aircraft with seating capacity of 80 or less. Norms exempt smaller aircraft

from landing charges at all airports and no other operator charges them.

The order will help boost the regional connectivity plan that pegs on making operations by smaller aircraft cost effective. The order is likely to benefit airlines that operate 70-seater aircraft and includes SpiceJet, Air India and Jet Airways.

Airlines such as Air India and SpiceJet had made several representation to AERA on the issue. "In the new

tariff order for Delhi, we have ordered that these smaller aircraft will be exempted from paying landing

charges. We have also informed Mumbai airport about the same," said a top AERA official, who did not wish to be named.

The official said the matter would have been addressed in the first tariff period itself if proper representation

would have been made by these airlines. "We received a lot of representations from airlines later and the

exemption was put in place," said the official.

AERA's order will not be implemented immediately because tariff order for Delhi airport is in the courts. Delhi International Airport Ltd (DIAL) in an email response to a query said the charge is on the basis of directions given by AERA under the AERA Act 2008.

"Exemption from landing charges for aircraft with maximum 80 seats capacity was given by Airports Authority of India ...dated February 11, 2004, which was applicable to only AAI airports at that point of time. The AERA Act 2008, came into force on January 1, 2009, according to which tariff for major airports has to be determined by AERA," the airport company said in an email response.

Airlines, however, complain that the exemption helps in running viable operations with smaller aircraft in the

country and should not have been removed.

"Since their aircraft are used for shorthaul flights, the cost of operations are very high. It is also becoming

increasingly difficult to continue operations with such high landing charges," said an Air India official, who did

not want to be identified.

He said the airline already had to pay a lot of money as landing charges in the past. "The government plans to

provide regional connectivity but at the same time smaller aircraft are being charged landing fee. How can it

implement its plan when such charges are only going to make operations by smaller aircraft unviable?" asked

the official.

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

9. Air traffic continues to post double-digit growth in India

Livemint | Jul. 27, 2016

New Delhi: Air traffic grew at double-digit pace in June, with airlines reporting robust occupancy figures,

according to data released on Tuesday by the Director General of Civil Aviation (DGCA).

Airlines carried 7.97 million domestic passengers last month, an increase of 20.81% from June 2015. IndiGo

had 37.9% of the market share—equal to the combined market share of Air India (15.5%), Jet Airways group (19.1%) and Vistara (2.8%).

SpiceJet (12.7%), GoAir (8.3%), Air Costa (0.8%), AirAsia India (2.2%) Air Pegasus (0.3%) and TruJet (0.4%) remained close to their May market share.

The overall cancellation rate of scheduled domestic airlines in June was 0.96%. Trujet, Air Pegasus, AirAsia

India and Air Costa had the highest number of flight cancellations at 21.73%, 19.33%, 10% and 3.06%

respectively.

Air India, GoAir, Trujet, Jet Airways were the targets of the highest number of passenger complaints. Bad

customer service and baggage mishandling were among the main complaints by passengers.

SpiceJet had the highest flight occupancy at 93% followed by AirAsia’s 90.2%, GoAir’s 84.6%, Air India’s 82%, Air Pegasus’ 82.2% and TruJet’s 81%. IndiGo, Jet Airways and Vistara flew their flights less than 80% full at 77.9%, 79.1%, 79%. JetLite’s occupancy rate was the lowest at 75.2%.

“The passenger load factor in the month of June 2016 has slightly decreased compared to previous month

primarily due to the end of tourist season,” DGCA said in its report.

The second quarter of the fiscal year starting July is considered the lean season for travel, when most airlines

lower their fares to attract passengers.

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

10.1. NDMC signs agreement with NEERI to develop sewage treatment plants

Times of India | Jul. 22, 2016

New Delhi: In a bid to develop green areas and revamp big and small parks under its jurisdiction, the New

Delhi Municipal Council (NDMC) has signed an agreement with National Environmental Engineering Research Institute (NEERI) to develop 12 sewage treatment plants (STP).

A senior NDMC official said that the council has signed a Memorandum of Understanding (MoU) with the

agency that has an expertise in the field and the project will help increase the green cover in NDMC areas and curb dust pollution.

"NEERI has an expertise in this field and the treatment plants will help NDMC to irrigate its parks. At times, we do not undertake any redevelopment project for our parks because of scarcity of water. But these plants, when installed, will help in revamping our big and small parks which will eventually help in increasing the green cover. NEERI is conducting a study on the locations, which will be fit for installing these plants and after they wrap up their research, NDMC will initiate installation of these plants," said a senior NDMC official. There are 200 small parks in several colonies under NDMC and five big parks including Lodhi Garden, Nehru Park, and Sanjay Jheel, where the footfall is huge.

"In the first phase, 12 STPs will be installed across our area. Each plant will have a capacity of treating sewage water ranging from 50,000-100,000 litres. All these plants will be connected to all our parks which will help the horticulture department to maintain the parks. These plants will be installed at schools also and after reviewing the first phase, we will expand it to other areas as well. The agreement that has been signed between the two parties has a clause that NDMC will bear only pumping cost which is economic and NEERI will bear the cost of the project," said the senior official.

He further said that barren lands that have no use under NDMC areas will be developed into green areas

under the same project. "We will identify barren lands across our jurisdiction and we will develop them into

green areas. Dust pollution is a menace across the capital and developing green area is important to ensure

we are able to curb dust pollution," said the senior official.

NDMC has already taken up a plantation drive during a period of six weeks and has set a target of planting

200,000 trees across their area. A senior official said that around 60,000 trees have been planted after the

initiation of the drive.

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

10.2. Over 2,5 million LPG connections released under PM Ujjwala Yojana

Press Information Bureau | Aug. 04, 2016

25.44 lakh LPG connections have been released to women of BPL families as on today under the Pradhan

Mantri Ujjwala Yojana. The scheme which was launched by Honorable Prime Minister in Balia, Uttar Pradesh on 01st May, 2016 is currently under operation in 553 districts of 24 States.

Under the scheme, 5 crores LPG connections will be provided to BPL families with a support of Rs. 1600 per connection in the next 3 years. Identification of the BPL families is being done through Socio-Economic Caste Census data.

The official website of the Yojana www.pmujjwalayojana.com contains the details about the scheme and the

form to be filled by the intended beneficiaries. It has been brought to the notice of the Ministry of Petroleum & Natural Gas that a number of fake and misleading websites have come up on the internet on the PMUY.

General public and other stakeholders may consult only the official website for any information with regard to

the scheme. In case of any doubt or clarification, contact can be made on the toll free number 18002666696.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for

any errors in the same.

– INDUSTRY, MANUFACTURE

11.1. Textile sector to grow at 6% to US$ 40 billion in FY2017

Economic Times | Jul. 19, 2016

After witnessing a degrowth of 2 per cent in FY2016, textile exports is expected to grow at 6 per cent to $40 billion in FY2017, driven by the expectations of growth in the apparel segment and higher fibre prices, says ICRA in its research update on the Indian textile industry.

According to Anil Gupta, VP, Corporate Sector Ratings, ICRA Ltd: "Despite volume growth in most of the

segments, degrowth in the value of textile exports during FY2016 was driven by lower fibre prices (cotton as

well as polyester). For FY2017, while raw-cotton export is expected to decline, however, other segments,

especially apparels, shall see positive volume growth, especially due to improved export competitiveness

supported by the recent financial package for the textile industry."

As per ICRA estimates, apart from the apparel segment, volume growth in textile exports is also expected in

other segments like textile made-ups and home furnishings. The average prices for fibre are also likely to stay

higher in FY2017 as compared to the previous year, which will support the growth in value of textile exports.

"While the outlook on volume growth is positive in all the segments except raw-cotton; however, yarn export

volumes may also come under pressure due to the recent spurt in domestic cotton prices. This spurt can also

partially offset the benefits of the recent financial package for the textile industry," Mr Gupta adds.

Polyester and cotton prices stood lower by 10 per cent and 4 per cent respectively (in US$ terms) till May

2016, which is reflected in the decline in value of exports. However, with the recent spurt in domestic as well

as international cotton prices, the growth in value terms is expected to turn positive in the coming months as

the higher input costs will partially be required to be passed on to the buyers.

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

11.2. Pepe Jeans to sell footwear, accessories in India from early next year

Livemint | Aug. 03, 2016

New Delhi: British denim wear brand Pepe Jeans London will start selling non-apparel products like footwear and accessories such as sunglasses from its international range in India from early next year. By the end of this year, Pepe Jeans will also start selling inner wear across top 20 stores of the company, Pepe Jeans India chief executive officer Kavindra Mishra said.

The company started expanding its product portfolio earlier this year with kidswear. At present, it sells kidswear in select stores in Kolkata, Ahmedabad and Bengaluru. “The Pepe Jeans Kids Wear sales, especially in large format stores, have even surpassed that of brands like United Colors of Benetton Kids and US Polo Kids,” he added.

For Pepe Jeans, India is one of the top two markets in value terms after it doubled its business in the past three years to Rs.730 crore (retail value). “Over the next three years, we aim to double our business,” said Mishra.

Pepe Jeans currently has 200 stores in India, and the brand adds this count by 10-15 stores each year. Its products are also sold across more than 700 multi-brand outlets and online marketplaces like Myntra and

Jabong. Denim wear market in India is projected to grow at a compound annual growth rate of 15% to reach Rs.27,200 crore by 2018, according to a report by retail consulting firm Technopak Advisors. Other major companies in the denim wear market in India include Levi’s, Lee, Wrangler, Spykar, Numero Uno and Killer. As part of its marketing initiative, Pepe Jeans has set up a custom studio in one of its flagship stores in the capital, where consumers can get their denims stamped with their choice of names or designs. The concept, which exists internationally and is being expanded throughout Europe, has been introduced in India for the first time. “We received a phenomenal response. We now plan to have a few more such studios in some of our flagship stores,” said Mishra.

The company sold 3.7 million pieces of apparels in India last year, most of which were imported from countries like China and Taiwan. “This year, we’ll sell around 4.5 million pieces,” said Mishra.

Pepe Jeans is also working on developing India as a sourcing hub. “We started sourcing from India at the end of last year. At present, Pepe Jeans sources products such as women’s topwear, woven and knitswear.

Gradually, this will increase,” he added. Last year, it sourced just about 1 million pieces from India.

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

12.1. India is of central importance to De Beers: CEO Bruce Cleaver

Times of India | Aug. 05, 2016

Surat: Bruce Cleaver, CEO of De Beers Group, said that India is one of the world's major markets for

consumer sales of diamond jewellery and it has perhaps more growth opportunity than anywhere else in the

world.

Cleaver, who was the chief guest at the five-days long 33rd edition of India International Jewellery Show

(IIJS), organized by the Gems and Jewellery Export Promotion Council (GJEPC) at Mumbai on Thursday,

said, "India is of central importance to De Beers' future and is at the very heart of the diamond pipeline"

Acknowledging that India was the world's first known source of diamonds, and has played a central role in the industry's history, Mr Cleaver noted that: "India represents the heartbeat of the industry's midstream sector, with the great majority of the world's cutting and polishing taking place here".

On this occasion, GJEPC signed a Memorandum of Understanding (MoU) with De Beers to undertake promotional activities to drive consumer demand for diamond jewellery in India. The marketing campaign will be run during the key selling season, and the funding will be agreed by both GJEPC and De Beers.

Hailed as one of the largest gem and jewellery trade shows in Asia, IIJS is a five-day B2B event and a great platform that allows the global gem and jewellery industry an excellent business opportunity to explore the various multi-faceted aspects of the Indian gem and industry.

The IIJS has 1,200 exhibitors, over 2,000 booths, 50,000 sq. ft., over 35,000 visitors from more than 800 Indian cities and towns and 80 countries around the world.

Chairman of GJEPC, Praveenshankar Pandya, said, "At IIJS 2016, we are hoping to increase the transacted business by at least 15% over and above that generated at IIJS 2015."

Manoj Dwivedi, joint secretary, Union ministry ofcommerce, government of India, who inaugurated IIJS said, "The most significant reform after the 1991 liberalisation - GST has become a reality and the key is seamless implementation. One country, one tax, one market will infuse new energy into the economy and growth will materialize. The Skill Council of India has targeted to train 5 million workers and upgrade skills. The other key initiative is to geographically map, tag and brand the unique jewellery of different parts of the country - be it jewellery from South or North East or Jaipur - to highlight the craftsmanship of that particular area."

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

12.2. Entrepreneurship is all about ideas

BusinessLine | 17 Jul. 2016

“To me, entrepreneurship is really about taking ideas to the market, shaping that idea, validating that idea and

commercialising that idea,” said Kiran Mazumdar-Shaw, Chairperson and Managing Director, Biocon. Speaking at the launch of Symbiosis Centre for Entrepreneurship Excellence Development (SEED) in Bengaluru, Kiran Mazumdar-Shaw said, “Once you validate and commercialise that idea, then you must think big. You must scale up that idea.”

She explained how she learned along the way while creating her company Biocon. “That was so exciting, so

interesting, which makes you stumble, which makes you fall, which makes you beat yourself up and then stand up and conquer everything else and move on,” she said.

“That’s what entrepreneurship is about. That’s the exciting journey that all of you who aspire to be

entrepreneurs is all about,” she added.

“I started my company in 1978, when nobody thought a business could be based on something like biotechnology. So, when I went looking for funding and investors, there were none in those days. I couldn’t find anyone to back my idea. Today, times are very different. At that time, my idea was to use biotechnology to create enzyme technologies that could replace chemical technologies of that time.”

Nobody wanted it at that time because it was all about “Is it cheaper than chemical technology?” she said. “But I would say no, it is not cheaper in the real sense but it is much cheaper in the long term because you don’t have to spend money on treating effluents and treating the kind of pollution you are creating, salvaging these pollutants.”

13.1. Mitsubishi Elevators sets up new plant in Bengaluru

Times of India | Jul. 20, 2016

Chennai: Mitsubishi Elevator India, a unit of Mitsubishi Electric, Japan on Tuesday announced the launch of their new plant in Vemgal, near Bengaluru, - its first in India. With an investment of 183 crore, the plant would manufacture pieces for the Nexiez Lite model of elevators.

Spread over 22 acres the plant has a capacity of manufacturing 5,000 units annually. The manufacturing would start in September and the elevators would be rolled out starting December.

"We aim to strengthen our product competitiveness in terms of price and cut down on delivery time from over 6 months to 90 days, by focusing on Nexiez Lite for mid and low-rise buildings. We also plan to offer more local products that fulfil local needs," said Iwao Oda, MD, Mitsubishi Elevator India. Customers would be able to save on the dollar fluctuation costs as well, he added.

Mitsubishi sells close to 1,000 elevators annually and hopes to increase its sales by 50% with the increase in production from the new plant.

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

13.2. Exide to pump in ₹1,400 cr to boost capacity

BusinessLine | 19 Jul. 2016

Automotive battery giant Exide Industries has launched a ₹1,400-crore technology and capacity augmentation programme to be implemented over the next two years, according to MD and CEO Gautam Chatterjee. Half the amount will be spent on adding a 1 million pieces-a-year automotive battery production line at Haldia, using mechanised punch-grid technology procured from East Penn of the US. The first phase of this project will be completed in January-March 2017.

“These are new-generation batteries manufactured through a mechanised process that ensures high degree of quality consistency, long (10-20 per cent more) life and durability. It will be sold in the after-market. Exide is

the first company to introduce such products in India,” Chatterjee told newspersons after the company’s AGM here on Wednesday.

Exide currently has the capacity to produce 12.2 million batteries a year. Haldia — arguably among the most

efficient of Exide’s seven battery manufacturing facilities in India — produces over 2 million pieces of automotive and industrial batteries a year.

Future expansion

The new production line is coming up at the surplus land available at the existing Haldia facility. Exide has lso

approached Kolkata Port Trust authorities for an additional 25 acres for future expansion.

Exide also has battery facilities at Shamnagare in West Bengal, Bawal in Haryana, Chinchwad in Maharashtra, Ahmedabad and Hosur. On the demand outlook for automotive batteries, Chatterjee said that after nearly five years the OE demand is looking up but is still behind the previous high. However, demand is increasing in the after market, ensuring 90 per cent capacity utilisation, he added “We are not planning any price rise and would try to increase margins by cutting costs,” he said.

Chatterjee today announced that the company has re-entered the telecom battery segment that it exited three-four years ago in the face of stagnant growth. “We have started introducing products in this segment and hope to capture a good market share by the year end.

Upbeat on GST

The introduction of GST will help the company source raw material (lead) from its own smelters, he said. “GST should help us. It should reduce the tax load on batteries manufactured by the organised sector from 28 per cent to 18 per cent and should bring the unorganised sector in the tax net,” he said.

14.1. Indian auto component industry to grow 5 times by 2026

Economic Times | Jul. 27, 2016

New Delhi: Global auto component market is pegged to be around $1.75 trillion. However, Indian auto component industry revenue stands at just $40 billion, which is just 2.3 per cent of the total Indian GDP and contributes $11 billion of exports.

"It is expected the market size and exports will grow by five times according to Automotive Mission Plan (AMP) 2026. This would require an investment of $25-30 billion. So we are not playing for today's market, we are playing for 2026" said Arvind Balaji, President, ACMA.

Top auto component manufacturers have invested $50 billion in the R&D and 50 per cent of innovation in the automotive industry is done jointly with auto component players.

According to industry leaders, the growth opportunities are tremendous and that is the reason everybody is

looking at this market. However, any opportunity comes with challenges. The first and foremost challenge is to deliver a better quality and technology products to OEMs.

Also, industry sees a lag in scaling-up, new technology implementation and shifty government policies which

are impacting the business. The reason that industry isn't able to scale is that RBI guidelines don't allow

companies to borrow money to buy companies.

Due to this, consolidation is not taking place. However, the global players can borrow money at 3 or 4 per cent to that enables them to consolidate and expand.

Further explaining the challenges, Balaji added, "At one hand, the government is talking about 'Make in India' but on the other hand, inverted duty structure is making cost of raw materials higher in India than anywhere else. So, the government says 'Make in India' but does not have policies in place for smooth functioning. The government is ready to listen, so we are giving them recommendations, as we must have policies to promote manufacturing."

At the same time, we are also recommending the government to encourage partners to invest in R&D. As government has removed some benefits in investing in R&D. Lastly, with new technology coming in, there is a huge danger if we don't invest in increasing our capabilities. In next 10 years, we will end up borrowing

technology through some FTA scheme. We are hopeful the government will respond.

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

14.2. India to be a five million car market by 2020: Maruti Suzuki's RC Bhargava

Livemint | Jul. 26, 2016

New Delhi: Maruti Suzuki India Ltd, India’s largest car maker, said that the local car market will reach 5 million units in annual sales by 2020, making the country the fourth-largest market in the world.

The estimates were given by Maruti Suzuki chairman R.C. Bhargava at an auto parts conference on Monday. “At five million cars by 2020, we will be just about number four (in the global pecking order),” Bhargava said in his address on Changing Trends in Automotive Supply Chain, organized by the Auto Components Manufacturers of India.

Maruti’s forecast is in line with the central government’s Auto Mission Plan II that forecasts the passenger vehicle (PV) market to more than triple to 9.4 million units by 2026 from 2.8 million now if the economy grows at an average rate of 5.8% a year. If the economy grows at an average yearly pace of 7.5%, the size of the passenger vehicle market is forecast to rise to 13.4 million units, making it the world’s second largest after China. Mint reported this first on 2 September 2015.

Bhargava added the Indian automotive sector is poised for solid growth and “demand for cars will grow faster than in the last two years” when a market slowdown impacted sales.

“Despite what NGT (National Green Tribunal) or others are trying to do, we’ll achieve higher growth than last year,” Bhargava said, referring to a recent order by the NGT that seeks to scrap diesel vehicles older than 10 years on Delhi roads.

To be sure, the NGT order is also likely to propel growth in vehicle sales as it will create a replacement demand in the market. As of 2014, Delhi had 8.9 million registered passenger vehicles. Of these, there are around 220,000 diesel passenger vehicles and 170,000 commercial vehicles that are more than 10 years old, according to industry estimates.

The process of de-registration of diesel vehicles in the National Capital Region will start with the scrapping of 15-year-old diesel vehicles.

Bhargava’s projections come at a time when the passenger vehicle sales are on a rebound in the country after the segment declined once and grew in lower single digits thrice in the last four years.

Sales have picked up largely because of a moderation in interest rates and lower fuel prices. Between July 2015 and June, car loan rates have come down by 65 basis points for public sector banks and 25 basis points for private banks.

One basis point is one-hundredth of a percentage point.

Hopes of faster growth have been fanned by predictions of better-than-average monsoon rainfall. The India

Meteorological Department (IMD) and private forecaster Skymet Weather Services Pvt. Ltd have predicted

above-normal rain in the June-September south-west monsoon, after two consecutive years of drought. A

pick-up in sales in rural areas however may take longer because of the extent of distress among farmers.

Latest data from IMD shows that the rainfall deficit in the entire country is now nil and that 75% of the country has received normal-to-excess rainfall so far this season.

Implementation of the recommendations of the seventh pay commission will also lead to a slight spike in

demand.

Maruti Suzuki’s vehicle sales grew 11.5% to 1.3 million in 2015 -16, outpacing the Indian passenger vehicle

industry’s aggregate 7.24% growth during the year. Including exports, Maruti sold a total of 1.42 million units. For 2016-17, the car maker has forecast that sales will grow at lower double digits. Maruti’s car sales,

including exports, grew just 2.1% to 348,443 units in the first three months of this fiscal because of a disruption in production.

Maruti will look to sell more than 1.5 million units in the current year. With new production capacity being

added through its manufacturing agreement with its parent Suzuki Motor Corp. in Gujarat, the car maker will

be able to sell 1.75 million units in 2017-18, said another top Maruti executive.

“By 2020, Maruti should be doing 2 million units every year,” said Deepak Sethi, executive director (supply

chain) at Maruti Suzuki.

On Monday, shares of Maruti rose 3.11% to Rs.4,550.60 on BSE while Sensex advanced 1.05% to 28,095.34 points.

The company will announce its financial results for the quarter ended 30 June on Tuesday.

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

15. Warburg Pincus invests US$ 125 mn in Stellar Value Chain Solutions

Livemint | Aug. 04, 2016

Mumbai: Third-party logistics company Stellar Value Chain Solutions Pvt. Ltd on Wednesday said it has received a $125 million investment from Warburg Pincus Llc, a global private equity firm.

“This is a very exciting stage for the $130 billion Indian logistics and warehousing industry, which is rapidly transforming and growing whilst also offering a number of consolidation opportunities. Over the next few years, we are looking to provide integrated logistics solutions which will include modern distribution centres and warehousing facilities at strategic locations across India,” Anshuman Singh, founder and chief executive officer of Stellar Value Chain said in a statement.

Stellar Value Chain serves customers in the food and beverages, fast moving consumer goods, consumer durables, electronics and technology, lifestyle, automotive, pharmaceutical and engineering industries, the statement said.

Warburg Pincus, which has more than $40 billion in private equity assets under management, has invested more than $3.5 billion in 50 Indian companies. Its current logistics investments in India include Continental Warehousing Corporation (Nhava Seva) Ltd, Ecom Express Pvt. Ltd, Embassy Industrial Parks, Gangavaram Port Ltd and IMC Ltd.

In 2011, Warburg invested $100 million in logistics firm Continental Warehousing Corporation (Nhava Seva). As of 31 March 2015, Warburg held a stake of around 43% in Continental, according to shareholding data available with the Registrar of Companies (RoC). Continental is planning an initial public offering to raise as much as Rs.1,000 crore, which will give a partial exit to Warburg, Mint reported in April.

“We believe there is a shortage of high quality providers of outsourced logistics services such as warehouse management and distribution to a wide range of sectors in India. We are excited to partner with Anshuman, and look forward to building Stellar Value Chain Solutions into a world-class logistics company with a strong focus on technology and customer satisfaction. We will also seek to drive further consolidation of the third party logistics sector in India through this platform,” said Viraj Sawhney, managing director, Warburg Pincus.

Stellar Value Chain founder Singh previously set up and led Future Supply Chain Solutions for Future Group. He also served as an executive board member in the Future Group. Before that, he was chief executive officer of Welspun India’s domestic business from 2004 to 2006, and developed a pan-India home furnishings speciality retail chain.

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. CSIR Ranks 12th in the World Among Government Institutions: Scimago Institutions Rankings

Press Information Bureau | Jul. 27, 2016

New Delhi: The Council of Scientific & Industrial Research (CSIR) has been ranked 12th in the world among the government institutions in the world, improving its position after being at 14th spot for three consecutive years, according to 2016 report of the prestigious Scimago Institutions Rankings. The overall global ranking of CSIR also improved from 110 to 99th position.

CSIR leads the country at the top spot and is the only Indian organization to have found a place among the top 100 global institutions.

The Scimago rankings is a classification of academic and research related institutions ranked by a composite

indicator that combines three different sets of indicators based on research performance, innovation outputs

and societal impact measured by their web visibility. The ranking measures areas such as:

Research

Output, international collaboration, normalized impact (leadership output), high quality publications, excellence, scientific leadership, excellence with leadership and scientific talent pool.

Innovation

Innovative knowledge and technological impact

Societal impact

Web size and domain’s inbound links

The constituent institute of CSIR, the CSIR-National Institute for Interdisciplinary Science and Technology (CSIR-NIIST) has been ranked first among Indian government research institutions, improving its global overall ranking from 425 to 353. The CSIR-NIIST became the first among 59 ranked government institutions in the country, followed by CSIR-National Chemical Laboratory (CSIR-NCL), Pune and Indian Institute of Chemical Technology (CSIR-IICT), Hyderabad.

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

16.2. Jan Aushadhi 3000 stores to be opened

Press Information Bureau | Aug. 03, 2016

New Delhi: To make quality drugs available at affordable prices to people under Pradhan Mantri Jan Aushadhi Yojana (PMJAY), it has been decided to open 3000 Jan Aushadhi Stores (JAS) under the Yojana across the country by the end of March 2017.

In order to open JAS proposed within Government hospital premises, a one-time financial assistance is provided to the extent of Rs. 2.50 lakh (Rs. 1 Lakh for furnishing, Rs. 50000/- for computer and peripherals, refrigerator etc and another Rs. 1 Lakh worth medicines to commence operation). The margin available for the retailers is 20% so as to ensure a reasonable level of profitability for them.

In addition to the retailers’ margin upto 20%, incentive @ 15% of monthly sales subject to a ceiling of Rs.

10,000/- per month upto a total of Rs. 2.50 lakhs, is also given to the JAS opened outside the government

hospitals. For the stores opened in North Eastern States and other difficult areas i.e. Naxal affected

areas/Tribal areas etc., the rate of incentive is 15% of monthly sale subject to a ceiling of Rs. 15,000/- per

month up to a total limit of Rs. 2.50 lakhs.

State Governments / Local bodies / individuals entrepreneurs / pharmacists / Doctors/ Registered Medical

Practitioners / Non- Governmental Organisations (NGOs) / Trusts / Social / Charitable institutions / Private

Hospitals / Self Help Groups, having B.Pharma degree or D.Pharma diploma are eligible for opening of JAS.

Applicant should have own or hired space of minimum 120 sq. ft. Detailed guidelines are also available at the

website janaushadhi.gov.in

This information was given by the Minister of State (MoS) in the Ministry of Chemicals and Fertilizers Sh. Mansukh L. Mandaviya in the Lok Sabha today.

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

17.1. Digital payments in India seen touching US$ 500 billion by 2020

Livemint | Jul. 26, 2016

Hyderabad/Mumbai: India is headed for an exponential increase in digital payments over the next four years, according to a new study by Google (Alphabet Inc.) and Boston Consulting Group released on Monday. The digital payments industry in Asia’s third-largest economy will grow by 10 times to touch $500 billion by 2020 and contribute 15% of gross domestic product (GDP), the report predicted.

Ever-increasing penetration of smartphones, the entry of several non-banking institutions offering payment services, consumer readiness to adopt digital payments, progressive changes in the regulatory framework will power the trend, it said.

“Spurred by smartphone penetration, and supported by progressive regulatory policy, the digital payments industry is at an inflection point and is set to grow 10x by 2020,” said Rajan Anandan, vice-president of Google, South-East Asia and India.

“It is telling that half of India’s Internet users will use digital payments and that the top 100 million users will

drive 70% of the GMV (gross merchandise value)—a clear indicator of the growing importance of the digital

consumer,” Anandan added.

The contribution of non-cash modes of payments, i.e. cheques, demand drafts, net-banking, credit/debit cards, mobile wallets and unified payment interface (UPI), is seen doubling to 40% of the consumer payments segment by 2020.

Non-cash transactions will exceed cash transactions in the economy by 2023, the report forecast. The trends should benefit a plethora of start-ups in the digital payment space as well as traditional banks, promote online commerce and boost financial inclusion in India.

Online shopping, utility bill payments and movie ticket purchases were identified as the top three services for

which Indian users make digital payments.

Online payments through digital wallets and debit/credit cards have been emerging as a preferred transaction

mode over the past few years, mainly due to the ease of transaction, availability of smartphones and affordable Internet, and enhanced security and encryption methods, which led to greater confidence among customers.

Online ticketing firms, such as IRCTC (railways), Makemytrip, Yatra, Cleartrip (airlines), redBus and Abhibus (buses) and Bookmyshow (movie and event ticketing) also played a crucial role in giving a leg-up to digital payments by getting customers to transact online.

Digital transactions began booming after the advent of e-commerce firms, such as Flipkart, Snapdeal, Amazon, Myntra, Jabong and others, that began offering attractive discounts to woo customers. As smartphone penetration increased in the country, mobile wallet companies, such as Paytm (One97

Communications Ltd), Mobikwik (One Mobikwik Systems Pvt Ltd), Oxigen Services (India) Pvt. Ltd, Citrus Payment Solutions Pvt. Ltd, Freecharge and others, sought to make life easier for consumers by encouraging them to store money in their online wallets to transact more easily.

Convenience has emerged as the most important factor that is driving this growth, followed by availability of offers, while opting for digital payment methods, the report noted, adding that Indian consumers are 90% as likely to use digital payments for both online and offline transactions.

Some digital wallet firms such as PayTm, Mobikwik and Freecharge are now encouraging their customers to transact using their mobile devices at select local grocery stores, restaurants and petrol filling stations in the offline world. These offline points of sale will contribute to 60% of digital payments eventually, the report said. But ensuring universal acceptance of digital payment methods and reliable speed of transactions during peak hours are two key concerns highlighted by merchants which could inhibit their growth and usage. The Indian digital payments story will be dominated by micro-transactions, which will form a substantial portion of the industry. Over 50% of person-to-merchant transactions are expected to be under Rs.100. The report predicts that the value of remittances and money transfers that will pass through alternate digital payment instruments will double to 30% by 2020.

A bulk of small ticket transactions, which take place in retail, are not digitized because of poor acceptance network in India, said Govind Rajan, chief executive officer of Freecharge. There are only 1.2 million point-of-sale (POS) terminals in India, for example, compared to 13 million in the US.

“With mobile becoming ubiquitous, these transactions will happen mobile-to-mobile. As a result, most small payments, which either have a problem of time or a problem of change, will actually move to mobile,” Rajan said. “That will be the single biggest driver.”

The report, Digital Payments 2020’, is based on research conducted by researcher Nielsen AG with more than 3,500 respondents, combined with BCG and Google’s industry intelligence.

Sure enough, digital payments have proved to be addictive. The study noted that 81% of existing digital payment users preferred it to other non-cash payment methods.

Reserve Bank of India (RBI) data shows that mobile wallets have already surpassed mobile banking in volume terms. The volume of mobile wallet transactions doubled during April 2015-February 2016 period to cross Rs.55 crore, noted M. Sinha, chief operating officer of Mobikwik, which sees its user base growing five times to 150 million in two years. “Mobile wallets are the first financial technology services or applications that they use as they are easy to operate, are secure, and in our case, also have a cash loading option,” Sinha added.

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

17.2. E-commerce biz may create 12 mn jobs over 10 years

HT Business | Jul. 28, 2016

E-commerce business has the potential to add 12 million new jobs in India over the next decade, according to a new study by HSBC Global Research.

The country needs as many as 80 million new jobs in the next decade, said the report titled “India: More jobs per click - The employment potential of e-commerce”.

Nearly three-fourths of these new jobs in the e-commerce sector are expected to be in broad supply chain

activities -- logistics, warehousing and courier -- and the around 30% would be in customer care, information technology and management, the report said.

The study warns that the country may fall short by 24 million, or 30%, out of the 80-million jobs target. However, if enabling factors work to the advantage of the e-commerce ecosystem in the country, half-of-the expected shortfall can be mitigated by the new tech-based businesses, the report added.

The e-commerce business in India is already showing potential to support the projected growth for new job

opportunities. At present, India, according to this report, has 330 million internet subscribers, almost all of

which, or around 94%, are wireless. This means mobile phone-driven e-commerce activities will be a major

force for growth in the future.

At present, there are one billion mobile phone subscribers covering 75% of the current population, one billion biometric identities (Aadhaar cards), and 220 million new bank accounts, created since the present

governments launched the financial inclusion programmes in 2014.

The report counts on the countries’ demographics, particularly the fact that the generation born after 1990, or the start of the internet age, accounts for 25% of the population now and is expected to swell to 45% by 2025. There is also immense potential in the retail sector in India, which could be brought under the organised retail framework, creating sufficient headroom for growth in e-commerce. At present, organised retail accounts for only 8% of the overall retail pie in India against China’s 25% and 85% in the United States.

E-commerce as an element of overall consumption in India is still less than 2% of the total number, against 14% in China, indicating a magnitude of catching up India needs to do to realise its job potential.

The report recommends setting up of digital market places in rural India, which could further strengthen the job opportunities in the e-commerce business.

There are working benchmarks for India to adopt, such as Taobao villages in China created by Chinese internet giant Alibaba. From 20 such villages in 2013, they have grown to 780 by 2015. These digital villages are spread over 17 provinces of China and cover more than 200,000 active online shops, the report said.

“In India, the potential for e-commerce in rural areas is promising given similar infrastructure inadequacies as in China. The market potential is sizeable as well. For example, more than 800 million people live in 640 villages (in India),” it said.

The biggest challenge for this rural transformation is the internet penetration in the country’s villages.

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

18.1. Carlson Rezidor plans 120 hotels in India by 2020

Business Standard | Aug. 01, 2016

New Delhi: Carlson Rezidor, the largest foreign hotel brand in India by number of hotels, aims to maintain its lead over rivals with a pipeline of 40 properties which will come on stream in the country by 2020.

This will take its total active inventory to 120 hotels by the turn of the decade, from 77 properties at present. A senior company official said the international group would open eight new properties on an average every

year.

Tata Group-run Indian Hotels, the country's largest hotel company that operates Taj, Vivanta by Taj, Gateway and Ginger brands, has 110 properties in India at present. Raj Rana, chief executive (south Asia) at Carlson Rezidor, said: “We have seven brands globally, of which five are already present in India. The remaining two brands will also be brought here. While we’ll have at least 120 hotels operational by 2020, we will have 50 more properties in the pipeline by then. India provides a great opportunity for growth as the market remains under-supplied when you compare the tourist inflow.” A third of its properties are running under the Radisson Blu brand, including a resort opened on Saturday at Karjat, Maharashtra.

While Radisson Blu, Radisson, Park Plaza, Park Inn by Radisson and Country Inns & Suites by Carlson are already open, the remaining two brands — Radisson Red and Quorvus Collection — will make their debut over the next two years in India.

While a Radisson Red will open in 2017 in Mohali, the company is holding talks with investors for the Quorvus brand, which will be positioned in the luxury category.

“We are talking to suitable partners and I think in the next two years, we should be able to launch the Quorvus brand in India. Most probably, it will be an existing property getting converted to Quorvus,” added Rana. This year, Carlson will open eight new properties including a 300-plus room Radisson Blu in Powai, Mumbai. Other properties are spread across Faridabad, Pune, Bengaluru, Karjat and Srinagar.

According to a recent report by rating agency Icra, hotel sector revenues are likely to improve 9-10 per cent in 2016-17, aided by improved occupancy.

Last year, India-wide occupancy stood 62 per cent. In the first quarter of this year, occupancies rose to 66-67 per cent, according to Rana. For Carlson, the occupancy level stood at nearly 70 per cent.

Three-fourth of Carlson's inventory in India runs on management contract while the balance runs on franchises.

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

18.2. AccorHotels partners with Australia India Travel & Tourism Council

Economic Times | Aug. 02, 2016

New Delhi: Australia's largest hotel operator, AccorHotels has announced it has signed an agreement with the Australia India Travel & Tourism Council (AITTC) to strengthen the opportunities for promoting tourism

between Australia and India.

As part of the new partnership, AITTC will endorse AccorHotels Optimum Service Standards program for

Indian visitation.

AITTC will facilitate a service training program to help AccorHotels staff better understand cultural practices

and learn basic greetings so they can respectfully serve guests. Training is expected to commence in Sydney

and Brisbane this August and AITTC will issue hotels with a certificate of accreditation once completed.

AccorHotels launched its Optimum Service Standards for Indian visitation program to better cater to the

specific cultural needs and growing numbers of Indian travellers to Australia and New Zealand. Accredited

hotels have adopted services to meet the needs of this emerging travel market including the translation of

hotel welcome kits, menus and business cards, Indian meals in the restaurant, Indian adaptor plugs, TV

channels and newspapers to make guests travelling from India feel at home.

In addition, AITTC and AccorHotels will be working together on promoting both inbound tourism from India as well as outbound opportunities to India.

"Our goal is to see growth in bilateral tourism and this partnership with AccorHotels, which has strong presence in both India and Australia, so it will be win-win for both organisations," says Sandip Hor, chairman of AITTC.

Chief Operating Officer, AccorHotels Pacific, Simon McGrath said: "We have been very fortunate to develop a great relationship with the Australia India Travel & Tourism Council, and look forward to working with them to better equip our hotels with the skills and knowledge to welcome visitors from India.

"Since the launch of the Indian Service Standards our hotels have experienced an increase in growth from this market, and in particular incentive groups have been on the rise over recent months, a trend we expect to

continue," concluded McGrath.

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

19.1. M/o Tourism sanctions 25 projects worth Rs. 2048 Crore to 21 States and UTs sanctioned under Swadesh Darshan scheme

Press Information Bureau | Jul. 25, 2016

New Delhi: Ministry of Tourism has sanctioned 25 projects under the Swadesh Darshan scheme worth Rs. 2048 Crore so far to 21 States and Union Territories since its launch of in January 2015. These States and UTs include Jammu and Kashmir, Uttarakhand, Rajasthan, Maharashtra, Kerala, Puducherry, Andhra

Pradesh, Telangana, Madhya Pradesh, Chattisgarh, Bihar, West Bengal, Sikkim, Assam, Meghalaya, Mizoram, Arunachal Pradesh, Nagaland, Manipur and Tripura.

(a) For North Eastern States, the Ministry has sanctioned 9 projects worth Rs. 821 Crores covering all the 8 states.

(b) For Tribal areas, the Ministry has sanctioned 3 projects for Rs. 282 Crores to the SG of Nagaland, Chhattisgarh and Telangana.

(c) For Buddhist Circuit, the Ministry has sanctioned 2 projects worth Rs. 108.11 Crore to the SG of Bihar and Madhya Pradesh.

The Ministry of Tourism has launched the Swadesh Darshan Scheme in 2014-15 with an objective to develop theme based tourist circuits in the country on the principles of high tourist value, competitiveness and

sustainability in an integrated manner by synergizing efforts to focus on needs and concerns of all stakeholders to enrich tourist experience and enhance employment opportunities. Under this scheme, 13

Thematic Circuits have been identified, for development namely: North-East India Circuit, Buddhist Circuit,

Himalayan Circuit, Coastal Circuit, Krishna Circuit, Desert Circuit, Tribal Circuit, Eco Circuit, Wildlife Circuit, Rural Circuit, Spiritual Circuit, Ramayana Circuit and Heritage Circuit.

The aim of the scheme are:

To position tourism as a major engine of economic growth and job creation;
To promote India as a global brand and a world class tourist destination;
To develop world class infrastructure in varied thematic circuits and pilgrimage sites;
To showcase full potential of wide range of unique products;
To provide complete tourism experience by enhancing tourist attractions;

Responsible Tourism Initiative- active involvement of local communities , pro-poor approach in a sustainable

and inclusive manner.

The work on all sanctioned projects during 2014-15 & 2016-17 has started and Ministry is monitoring the work rigorously. List of Updated Sanctioned projects are as follows :

(Amt. in Rs.crore)
Sr. No.	Circuit	State	Name of Project	Year	Sanction Amt.	Release Amt.
1.	Coastal	Andhra Pradesh	Development of Kakinada- Hope Island- Konaseema as World class Coastal & Eco Tourism Circuit in Andhra Pradesh	2014-15	69.83	13.96
2.	North East India	Arunachal Pradesh	Development of Bhalukpong- Bomdila-Tawang in Arunachal Pradesh	2014-15	49.77	10.00
3..	Buddhist	Bihar	Construction of Cultural Centre at Bodhgaya, Bihar	2014-15	33.17	6.63
4.	North East	Manipur	Development of Tourist Circuit in Manipur: Imphal- Moirang-Khongjom-Moreh	2015-16	89.66	17.93
5.	North East	Sikkim	Development of Tourist Circuit linking - Rangpo (entry) - Rorathang - Aritar - Phadamchen - Nathang - Sherathang - Tsongmo - Gangtok - Phodong - Mangan - Lachung - Yumthang - Lachen - Thangu - Gurudongmer - Mangan - Gangtok - Tumin Lingee - Singtam (exit) in Sikkim	2015-16	98.05	19.61
6.	Eco	Uttarakhand	Integrated Development of Eco-Tourism, Adventure Sports, Associated Tourism related Infrastructure for Development of Tehri Lake & Surroundings as New Destination-District Tehri, Uttarakhand	2015-16	80.37	16.07
7.	Coastal	Andhra Pradesh	Development of Coastal Tourism Circuit in Sri Potti Sriramalu Nellore in Andhra Pradesh	2015-16	60.38	12.08
8.	North East India	Arunachal Pradesh	Integrated Development of Adventure Tourism in Arunachal Pradesh	2015-16	97.14	19.43
9.	Eco	Kerala	Development of Pathanamthitta – Gavi – Vagamon – Thekkady as Eco Tourism Circuit in Idduki and Pathanamthitta Districts in Kerala	2015-16	99.22	19.84
10.	Desert	Rajasthan	Development of Sambhar Lake Town and Other Destinations under Desert Circuit in Swadesh Darshan Scheme	2015-16	63.96	12.79
11.	Tribal	Nagaland	Development of Tribal Circuit Peren –Kohima-Wokha, Nagaland	2015-16	97.36	19.47
12.	Eco	Telangana	Integrated Development of Eco Tourism Circuit in Mahaboobnagar district, Telangana	2015-16	91.62	18.32
13.	Wild Life	Madhya Pradesh	Development of Wildlife Circuit at Panna – Mukundpur-Sanjay-Dubri- Bandhavgarh-Kanha-Mukki- Pench in Madhya Pradesh	2015-16	92.22	18.44
14.	Wildlife	Assam	Wildlife Circuit of Assam	2015-16	95.67	19.13
15.	North East India	Tripura	Development of North East Circuit : Agartala - Sipahijala - Melaghar - Udaipur - Amarpur - Tirthamukh - Mandirghat – Dumboor- NarikelKunja - Gandachara –Ambassa	2015-16	99.59	19.92
16.	Eco	Mizoram	Integrated Development of New Eco Tourism under Swadesh Darshan – North East Circuit at Thenzawl & South Zote, District Serchhip and Reiek, Mizoram	2015-16	94.91	18.98
17.	Coastal	West Bengal	Development of Beach Circuit – Udaipur - Digha – Shankarpur – Tajpur – Mandarmani – Fraserganj – Bakkhlai -Henry Island	2015-16	85.39	17.08
18.	Coastal	Puducherry	Development of Union Territory of Puducherry as Tourist Circuit under “Swadesh Darshan” Scheme	2015-16	85.28	17.06
19.	Tribal	Chhattisgarh	Development of Tribal Tourism Circuit Jashpur- Kunkuri-Mainpat-Ambikapur- Maheshpur-ratanpur-Kurdar- Sarodadadar-Gangrel- Kondagaon- Nathyanawagaon-Jagdalpur- Chitrakoot-Tirthgarh in Chhattisgarh	2015-16	99.94	19.99
20.	Coastal	Maharashtra	Sindhudurg Coastal Circuit	2015-16	82.76	12.79
21.	Coastal	Goa	Development of Coastal Circuit (Sinquerim-Baga- Anjuna-Vagator-Morjim-Keri- Aguada Fort and Aguada Jail) in Goa under Swadesh Darshan Scheme	2016-17	99.99	20.00
22.	Himalayan	Jammu & Kashmir	Integrated Development of Tourism Infrastructure Projects in the State of Jammu and Kashmir under Himalayan Circuit of Swadesh Darshan Scheme	2016-17	82.97	16.59
23.	Tribal	Telangana	Integrated Development of Mulugu-Laknavaram-Tadavi- Damaravi-Mallur-Bogatha waterfalls as Tribal Circuit in Telangana under Swadesh Darshan Scheme	2016-17	84.40	16.88
24.	North East India	Meghalaya	Development of Umiam Lake- Ulum Sohpetbneng- Mawdiangdiang under North East Circuit of Swadesh Darshan Scheme	2016-17	99.13	19.83
25.	Buddhist	Madhya Pradesh	Buddhist sites of Madhya Pradesh (Mandsaur- Dhar- Sanchi- Satna- Rewa)		74.94	14.99
Total					2047.77	402.82

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

19.2. Govt planning rating system for homestays, guest houses

Livemint | Jul. 19, 2016

New Delhi: To give e-tourism a boost, the commerce ministry is pushing for developing a database of certified guest houses, paying guest and bed-and-breakfast accommodation across the country that online market aggregators like Airbnb and Stayzilla can use, after doing their own due diligence.

The ministry has asked the NITI Aayog to anchor the plan and develop a rating system after discussions with

state governments.

A commerce ministry official said that for back-end certification of properties on their platforms, online aggregators have to work with state governments. “If the state governments have not done the survey and certification, then it is far more difficult for the market aggregators. They can do it for select cities, but if you want to do it pan-India, then we need to develop a rating mechanism,” he added.

Currently, a homestay requires a licence from the state government, which is valid for two years and needs renewal thereafter. It also mandates the hosts to reside at the property being rented out.

The official said the idea emanated from consultations with stakeholders as part of the commerce ministry’s global exhibition on services. “For hotels, the rating system is quite well known, but for accommodations other than hotels, such as bed-and-breakfasts, guest houses, paying guest accommodation, there has to be some mechanism that needs to be developed. So, all this is meant to make India ready for e-tourism,” he said.

After consultations with state governments carried out by NITI Aayog, the ministry of tourism will work out the parameters so that state governments take a uniform approach, the official said.

“If we develop a rating system in sync with international practices, then when somebody claims I am providing a three-star accommodation, then the traveller broadly understands what to expect,” he added.

The official said the exercise is similar to what the government has done for medical tourism. “The Services

Export Promotion Council now has a mechanism by which various hospitals have got their accreditation done, so anybody who is a medical value traveller to India for some particular treatment knows the ratings of the hospitals and has some quality assurance,” he said.

Chetan Kapoor, a research analyst at industry research firm Phocuswright Inc., said the mechanism would

help intermediaries offer standardized accommodation. “It will help a consumer understand what the offering

exactly means and what it will include,” he explained.

Yogendra Vasupal, founder and chief executive officer, Stayzilla, said what’s needed is not just a database but full-fledged support from the government, including law enforcement authorities.

“The current database which is there is not really of value to us because we are expanding the market. What

will help us is not just the database but the government supporting us in making homestays mainstream,” he

added.

To boost its services export earnings, the government extended its e-tourism visa to 150 countries in November 2014. This has started yielding results, with more than 434,000 foreigners availing of the facility of e-tourist visa on arrival in the first five months of 2016, a 293% growth in comparison to the same period last year, according to the data released by the ministry of tourism. The government is working to further liberalize its visa regime, including allowing multiple-entry tourist and business visas, as part of an effort to increase services exports.

Nathan Blecharczyk, chief technology officer an co-founder of Airbnb, told Mint in May that his firm has 18,000 properties across about 100 Indian cities. The number of Indian listings, however, indicates it is still a relatively small market for the firm, which has as many as 2 million listings across 190 countries.

Stayzilla, another online aggregator of budget hotels and homestays, currently offers 33,000 properties, including hotels, lodges, homestays and guest houses across 4,500 cities.

The travel and accommodation space has seen more action in the past year. Blecharczyk said that by 2020, the Indian travel market is expected to be worth $40 billion, adding that India has become one of Airbnb’s fastest growing markets in the world.

Online travel company Yatra and Stayzilla launched homestays in September last year. Earlier this year, MakeMyTrip Ltd said it will get into non-hotel alternatives such as dharamshalas, homestays and bed-and breakfast accommodation.

Additionally, a handful of start-ups such as Deyor Rooms, Wudstay and The Hosteller offer travellers experiential homestays and short-stay packages.

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

19.3. Restaurant sector to contribute Rs 22,400 cr in taxes in 2016

PTI | BusinessLine | 20 Jul. 2016

The Indian restaurant industry will contribute Rs 22,400 crore by way of taxes and create 5.8 million direct jobs in 2016, Indian Food Services Report (IFSR), 2016, revealed today.

The report, prepared by industry body National Restaurant Association of India (NRAI), said the country’s food services market is worth over Rs 3.09 lakh crore and is estimated to reach close to Rs 5 lakh crore by 2021. The report estimates that the restaurant industry will contribute close to 2.1 per cent to India’s GDP by 2021, NRAI Honorary Secretary Rahul Singh said here. “Total food services today stand at Rs 3,09,110 crore and has grown at 7.7 per cent since our last report in 2013. It is projected to grow to Rs 4,98,130 crore at a CAGR of 10 per cent by 2021,” NRAI president Riyaaz Amlani said.

He further said, “This year alone, the India restaurant sector will create direct employment for 5.8 million people and contribute a whopping Rs 22,400 crore by way of taxes to the Indian economy.”

Releasing the report, Niti Aayog CEO Amitabh Kant said India has been on a high growth trajectory over the last couple of years. “India’s exponential growth and consumption in terms of frequency of eating out and

experimentation with cuisines and concepts have given the F&B services sector such a fillip that the industry is currently estimated to be worth USD 48 billion in terms of overall market size,” he added.

The report also revealed that the organised sector accounts for just 33 per cent of the total market. “This is

largely due to over regulation of our industry, the complex maze of approvals and licenses required and high

tax brackets. It is about time that our industry’s socio-economic impact is recognised by the government and it initiates immediate steps to unlock the true potential of this behemoth,” Amlani said.

The report said the industry faces challenges such as high real estate and manpower costs, inadequate supply chain, infrastructure and financing issues, among others.

20.1. Apple picks north Bengaluru for design accelerator

Business Standard | Jul. 26, 2016

Bengaluru: Apple has identified a location in North Bengaluru, closer to the airport, to set up its design and development accelerator. It joins rivals such as Google and Microsoft in harnessing local talent in the country's technology capital.

Through this centre, Apple hopes to encourage more developers to build applications for its iPhone, a strategy for it to justify the high sticker prices for its devices. Globally, such apps are considered of gold standard because of the customers' ability to pay more.

India, the world's second largest smartphones market, is dominated by Google's Android software. Apple expects to wean a slice of the high-paying customers of Android to its own ecosystem.

Apple is also looking at India as a strategic market since iPhone sales in China and the US stagnate. "India is home to one of the most vibrant and entrepreneurial iOS development communities in the world," said Tim

Cook, Apple's chief executive officer. "With this new facility, we're giving developers access to tools which would help them create innovative apps."

The decision to locate in Yelahanka in Northern Bengaluru goes against the conventional grain for global technology majors.

Through this centre, Apple hopes to encourage more developers to build applications for its iPhone, a strategy for it to justify the high sticker prices for its devices

These majors have set up offices in and around Whitefield, outer ring road and Sarjapur - a hub which has witnessed nearly a fifth of the country's office absorption in the past few years.

The Economic Times reported Apple finalising its office in RMZ Galleria, first on Monday.

This would be the second comeback for Apple, a secretive company, which backed out of setting up a development centre in Bengaluru a few years ago after newspaper reports.

It also shut its call centre operations, outsourced to a local firm, after complaints of poor service from customers.

Northern Bengaluru is becoming attractive to locate offices for global organisations such as IBM and ABB. This is mainly because of it being on the outskirts of the central business district and its proximity to the

airport.

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

20.2. SBI partners Oracle to support Digital India

Times of India | Jul. 29, 2016

New Delhi: State Bank of India and tech giant Oracle have come together for corporate India's largest volunteering programme to bring 'digital fluency' among underprivileged school students. Under the programme - D-Change - both the organisations will deploy resources, including staff and equipment, to train students in the basics of using information, communication and technology (ICT) tools.

"This is a joint employee volunteering initiative aimed at skilled workforce development in the country. Driven through the SBI Foundation, the program will focus on three key areas of education, women empowerment and rural upliftment," said Arundhati Bhattacharya, chairman, State Bank of India.

She said that the partnership was unique for three reasons, it is the first CSR initiative supporting digital India and is corporate India's largest volunteering initiative. This is also the first time that companies from two

diverse sectors - IT and finance are coming together.

Oracle's president emerging markets, Middle East and Asia pacific Loic Le Guisquet who was in India for the program said that Oracle employees across the world have been volunteering for more than two decades. "We extend our 20-year old relationship with SBI to support India's mission of creating a digitally empowered society. We are bringing together our core strengths and a very large employee volunteer strength, to make this a reality," said Guisquet.

Besides students the programme also includes parents. "They will receive training from these students, that will help them learn how to, easily and independently, access electronic delivery services and, online services. To encourage parents to practice their newly acquired skill sets, schools will keep their computer labs open over the weekends," said Bhattacharya. This program will be launched in Rotary Bangalore Vidyalaya in Bengaluru and Mandal Parishad High School, Kondapur in Hyderabad on Aug 6, 2016.

"Our employees have always been into volunteering. Even during the Chennai floods when all the ATMs were down, they went door to door helping people withdraw money using mobile point of sales terminals. With this partnership we will be putting in place a structured and sustained system of volunteering," said Bhattacharya. She added that the bank's objective was to scale up the programme to 100 schools soon.

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

INDIA & THE WORLD

21. Cabinet approves a MoU signed between India and the Swiss Confederation for cooperation in skill development

Press Information Bureau | Jul. 21, 2016

New Delhi: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its ex-post-facto approval for a Memorandum of Understanding (MoU) signed between India and the State Secretariat for Education, Research and Innovation of the Swiss Confederation for cooperation in skill development. The MoU was signed on 22.6.2016 during the visit of a delegation led by the Minister of State (Independent

Charge) for Skill Development and Entrepreneurship to Switzerland from 20th – 22nd June, 2016.

The MoU broadly focuses on capacity building and exchange of best practices in the area of skill development. The MoU envisions the establishment of Joint Working Group (JWG) to create, monitor and review the implementation framework for the MoU. The MoU will establish a framework for bilateral

cooperation between the two countries in the area of skill development and will formalise and deepen this partnership.

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

22. Dabur takes a small step in southern Africa

Business Standard | Jul. 19, 2016

New Delhi: An acquisition worth a mere Rs 4,700 is rarely expected to give rich dividends, especially if it means venturing into a market as big as Rs 30,000 crore. However, home-grown fast-moving consumer goods firm Dabur is trying something similar.

The company recently acquired a newly incorporated company in South Africa and is planning to set up a manufacturing unit in that country. The move would help it expand its presence in the southern parts of the

African continent, sources said.

Dabur India on Monday informed the BSE that it acquired Discaria Trading, registered in South Africa, for Rs 4,679 (1,000 South African Rand). Dabur’s wholly-owned subsidiary Dabur International acquired 100 per cent of Discaria, it informed the BSE. “Discaria Trading (Pvt.) Ltd. has been acquired to do the business of manufacturing and trading of cosmetics products in South Africa,” it said.

Currently, Dabur has two manufacturing plants in the continent — one each in Nigeria and Egypt. The acquisition cost of the company, incorporated on March 30, 2015 to trade and manufacture cosmetic products, is lower than any such recent acquisition by Dabur. The real value of the company lays in its potential to become a gateway for Dabur in the crucial southern African markets.

Earlier, Dabur made its first foreign acquisition by buying Hobi Kozmetik Group, a leading personal care products company in Turkey, for $69 Million (Rs 462 crore). In 2010, it also acquired Namaste Laboratories in the US for $100 million (Rs 670 crore).

However, Dabur’s recent acquisition was aimed at setting up production units in South Africa, sources said.

Dabur is also considering expanding its presence with its international personal care brand Namaste.

The cosmetics markets in the southern parts of Africa – South Africa, Zimbabwe, Namibia and Mozambique - is estimated in excess of Rs 30,000 crore and is growing in double digits. Dabur currently gets a third of its Rs 8,454-crore revenue from foreign markets.

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

23.1. India-US launch innovative agriculture programme to address global challenges

Press Information Bureau | Jul. 26, 2016

New Delhi: The Ministry of Agriculture and Farmers Welfare and the U.S Agency for International Development (USAID) launched today the second phase of the Feed the Future India Triangular Training Programme, bringing specialized agriculture training to 1,500 agricultural professional across Africa and Asia. The Secretary of Agriculture and Farmers Welfare, Shri S.K Pattanayak and U.S Ambassador to India Shri Richard R. Vera launched the programme together at the National Agriculture Science Complex in New Delhi.

Speaking on the occasion, Secretary of Agriculture and Farmers Welfare said that in order to continue our successful partnership programme covering more countries in Africa and Asia, MANAGE as lead institution representing Govt. of India and USAID representing US Government signed a Limited Scope Cooperation Agreement( LSCA) on 7th November, 2005. The new programme will be called as “Feed The Future: India Triangular Training Programme”, in which 32 Training programme of 15 days duration will be conducted in India and 12 Training programs of 10 days duration will be conducted in selected African and Asian Countries during 2016-20 i.e., for 4 years. The entire expenditure including participants travel, insurance, lodging, boarding, local travel and programme fee will be met by USAID and MANAGE. The training areas will be identified based on demand analysis conducted in participating countries.

Shri S.K Pattanayak informed that 17 countries covered under the programme are Kenya, Malawi, Liberia, Ghana, Uganda, Rwanda, Democratic Republic of Congo, Mozambique, Tanzania, Sudan, Botswana, Ethiopia in Africa and Afghanistan, Cambodia, Lao PDR, Myanmar, Mongolia, and Vietnam in Asia. Also faculty of MANAGE visited Cambodia and Vietnam in Asia and Tanzania and Mozambique in Africa as part of Demand analysis.

The U.S Ambassador Shri Richard R. Verma said that by harnessing the expertise and innovation of out two great countries, we are unlocking new opportunities to address global development challenges, bringing us closure to our shared objective of eliminating global poverty and hunger.

Shri Richard R. Verma emphasized that the United States and India remain committed to their partnership of working, together to break the vicious cycle of poverty and hunger. Through sharing agriculture innovations worldwide, the U.S and India will help other countries develop their agriculture sectors, helping promote global prosperity and stability.

The Deputy High Commissioner, Kenya High Commission in India, Ms. Belinda A. Omino, Mission irector,

USAID in India, Ambassador, Shri Jonathan S. Addleton and Director General, MANAGE, Ms. V. Usha Rani 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.

23.2. India - US to collaborate for first time in R&D in traditional systems of medicine for various diseases

Press Information Bureau | Jul. 27, 2016

New Delhi: The Ministry of AYUSH is mandated to promote and propagate AYUSH systems of medicine across the globe. To achieve the objective, the Ministry of AYUSH signs Memorandums of Understanding (MoUs) for ‘Country to Country’ cooperation in the field of Traditional Medicines; sets up AYUSH Academic Chairs in foreign Universities/ Educational Institutes; establishes AYUSH Information Cells in the premises of the Indian Missions abroad or Indian Cultural Centres for dissemination of authentic information about AYUSH Systems of medicine and enters into MoUs with foreign institutes for undertaking collaborative research.

As a result of concerted efforts, for the first time India has successfully engaged USA in the field of Traditional Medicine. An India-US workshop on Traditional Medicine with special focus on cancer was organized on 3-4 March, 2016 at New Delhi. A US team comprising of experts from National Cancer Institute (NCI) took part in the two day exhaustive deliberations that have resulted into significant leads.

This information was given by the Minister of State (Independent Charge) for AYUSH, Shri Shripad Yesso Naik in 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.

24. India seeks greater market access for pharma, marine products from Japan

Economic Times | Aug. 01, 2016

New Delhi: India has sought greater market access for its pharmaceuticals and marine products in Japan as part of expanding trade with Tokyo.

Besides items of high potential such as sesame seeds, India also sought recognition of the Indian Organic Standards by Japan.

"Though there have been an increase in the number of work visas issued by Japan, after the cooperation agreement come into force, the market share of Indian IT companies in the Japanese IT market is yet considered below potential and ways to improve this were discussed," said the commerce department in a release after the third meeting of the Joint Committee at the Secretary Level under the India-Japan CEPA (Comprehensive Economic Partnership Agreement) here.

The talks happened as India-Japan trade shrank 6.4% to $14.5 billion in 2015-16, with India's exports declining 13.2% to $4.7 billion and Japan's exports contracting 2.8% to $9.8 billion.

The decision of Japan to reduce its increasing health care costs on account of its aging population and its decision to switch over to a higher share of generic medicines was seen as a potential opportunity for the Indian pharma industry, which is strong in generics.

As per the release, the Japanese side raised several issues relating to taxation and investment concerns by the Japanese companies who are investing in India.

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

25.1. India plans to set up SEZ in Myanmar

Economic Times | Aug. 02, 2016

New Delhi: It is not just Iran's Chabahar port and connectivity to Eurasia that has caught attention of the Modi government.

India plans to set up a SEZ in Sittwe in Myanmar where it has already built a port. The proposed SEZ by India will rival Chinese SEZ located 80 km down of strategically-located Sittwe as Delhi plans to make it as an economic hub.

The aim of the SEZ is to help expand India's footprints in South East Asia amid China plans for massive road and port connectivity projects in the region as part of its One Belt One Road initiative. India's plan for SEZ was explained by MoS external affairs VK Singh at the India-Asean Foreign Ministers meet at Laos earlier this week.

"India remains committed in its support for implementation of the master plan on Asean connectivity as well as and the post-2015 agenda for Asean connectivity. Even as we work to enhance our physical connectivity and explore the extension of the India-Myanmar-Thailand Trilateral Highway into Lao PDR, Cambodia and

Vietnam, I urge Thailand and Myanmar to join hands and find solutions for the conclusion of the motor vehicles agreement and I would like to invite Asean countries to participate in the Sittwe SEZ," he said.

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

25.2. Cabinet approves signing of Air Services Agreement between India and Lao

Press Information Bureau | Aug. 04, 2016

New Delhi: The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has given its approval for signing of new Air Services Agreement (ASA) between India and Lao People’s Democratic Republic (Lao PDR).

The Agreement is expected to spur greater trade, investment, tourism and cultural exchange between the two countries bringing it in tune with the developments in the civil aviation sector. It will provide enabling environment for enhanced and seamless connectivity while providing commercial opportunities to the carriers of both the sides ensuring greater safety and security.

Under the agreement, the designated airlines of the two countries shall have fair and equal opportunity to operate the agreed services on specified routes. The routes and frequencies shall be decided subsequently.

ASA is the basic legal framework for any air operation between the two countries.

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

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Pages

Tuesday 9 August 2016

NEWSLETTER 20-VIII-2016

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING and RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

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

NEWSLETTER, 20-VIII-2016

– GENERAL POLICY, INFRASTRUCTURES, COUNTRY FINANCES, ETC.

– AGRICULTURE, FISHING & RURAL DEVELOPMENT

– INDUSTRY, MANUFACTURE

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

INDIA & THE WORLD