Friday 27 November 2015

India needs Rs.9 lakh crore yearly investment in energy: IEA


“India’s energy transformation requires three things: investment, investment and investment,” IEA executive director Fatih Birol said here releasing the agency’s “India Energy Outlook 2015″.
“India is set to contribute more than any other country to the rise in global energy demand over the next 25 years, underlining its ever-great influence in Asia and on the world stage; even so, its energy demand per capita in 2040 would still be 40 percent below the world average,” he said.
“A lot is being done already to overhaul the energy regulatory system and get the incentives in place. This is vital, as India will need to call upon a wider range of investors and sources of finance than it has in the past,” he added.
India needs around Rs.700,000crore ($110 billion) per year in energy supply, and a further Rs.200,000 crore ($30 billion) a year to improve energy efficiency, Birol said.
He also said that over the next 25 years, 315 million people, equal to the current population of the US, will be added to India’s urban population, raising the demand for energy exponentially.
India’s ministry of new and renewable energy (MNRE) said on Thursday that the country has added 2,311.88 MW of grid-connected power generation capacity from renewable energy sources like solar and wind till October of this financial year, against the full fiscal’s target of 4,460 MW.
India’s total grid-connected power generation capacity from all renewable sources at the end of October was 3,8096.49 MW.

Source : IndianMediaBook - Bussiness


Ready to cooperate on GST, but want cap on tax: Congress


“We (Congress) are ready to cooperate with the BJP over GST. But we have our differences. We want a cap on tax, and do not want the poor in the country to be taxed,” Gandhi told media outside the Parliament House.
Gandhi added that his party was the one which introduced GST draft legislation earlier.
Gandhi made the comments when he was asked about Prime Minister Narendra Modi’s invitation to Congress leaders Sonia Gandhi, Rahul himself and Manmohan Singh to meet over tea on Friday evening, with the GST on the agenda.
Meanwhile, Minister of State for Finance Jayant Sinha said on Friday the central government is seeking a consensus on the issue of levy of one percent additional tax for the proposed goods and services tax (GST).
“There are many opinions on the one percent tax on GST…states have another perspective on this,” Sinha told reporters on the sidelines of an event here by the Centre for Digital Financial Inclusion.
“We have to find a consensus on this. The finance minister has said we are in continuous consultations, particularly with opposition parties and are willing to consider any reasonable suggections,” Sinha said, adding that the situation arrived at this point was the result of continuous discussions with states and other stakeholders.
The central government has set the target for GST implementation from April next year, but the bill is currently stuck in parliament, especially over the cabinet’s nod to some changes recommended by a parliamentary panel, notably an extra one percent levy to compensate the states for potential tax losses.

Source : IndianMediaBook - Bussiness


Wednesday 25 November 2015

Modi reaches out to Singapore business community


Naren3Admitting that there were still a number of regulatory and taxation issues in India, Prime Minister Narendra Modi on Tuesday tried to hard sell the country’s business potential to Singapore’s corporate community and assured that he will do the hand-holding when they come to India.
“In the past few months, the interest of foreign investors in India has gone up tremendously. However, there were a number of regulatory and taxation issues which were adversely impacting on their sentiments. We have taken very decisive steps to remove many of the long-pending concerns,” Modi said.
He was addressing the Singaporean business community at the India-Singapore Economic Convention here in the city-state.
Referring that IMF chief Christine Lagarde has recently said that India is a bright spot in the global economy, Modi said: “I did not want to wait for that brightness to reach to you on its own. Hence, I am here. I am here to invite you to India in a bigger way. I have also come to assure you that I am there to carefully hold your hands.”
Modi was hopeful that the much-awaited goods and service tax regime will roll out from 2016.
He said India’s growth rate was 7.3 percent last year and the World Bank has projected even better growth this year.
“Indian economy is the fastest growing economy among major countries. We are also working hard that the benefits of this growth reaches to the common man.”
Modi observed that Singapore has emerged as the second largest source of foreign direct investment (FDI) in India. “Outward Indian FDI to Singapore has also increased in recent times. Singapore is now one of the top destinations for Indian investments.”
To take the partnership further, Modi said: “You have the habit of precision; India has the scope for expansion. You are fond of going vertical; India’s development is both vertical and horizontal. You are an exciting incubator; India is a vast laboratory. Thus, Singapore and India can work together in many promising areas.”
He also spoke of the potential of his pet projects like Digital India, Skill India and Start-up India Campaign. He also highlighted the various reforms that his government has taken.
“We are working hard to make sure that our tax regime is transparent and predictable. We are also keen to see that genuine investors and honest tax payers get quick and fair decisions on tax matters. To this objective, we have already made a number of corrections,” the prime minister said.
Modi said FDI inflows to India have gone up by 40 percent compared with previous year’s corresponding period.
Pointing out that the India was setting up a National Investment and Infrastructure Fund, Modi said: “We are also coming up with Tax Free Infrastructure Bonds with a view to broaden the corporate bond market. This will also provide long term finance for infrastructure.”
“For infrastructure, we have also decided to launch rupee bonds in some countries. Singapore could be among them. We are quite eager to work with Singapore in this regard.”
He also said that in the last 18 months of the National Democratic Alliance-run government, reforms were happening in a “big way” and were now reaching to the last mile.

Source : IndianMediaBook - Bussiness


India, Singapore ink strategic partnership, 9 deals as Modi concludes visit’


He also pledged to make the Indian tax regime more transparent and predictable.
It was a packed schedule for Modi as he began the day with a breakfast meeting with Singaporean leaders, met President Tony Tan and Prime Minister Lee Hsien Loong, witnessed the signing of the accords, attended a lunch hosted by Hsien, laid a wreath at the INA marker, visited the Institute of Technical Education that is involved in skill development, addressed the India-Singapore Economic Convention, briefly met select CEOs and finally addressed the Indian diaspora, whom he praised for building up the country’s image.
Modi left for home late in the night. Singapore was the second leg of his visit that earlier took him to Malaysia for the ASEAN-India Summit and the East Asia Summit.
Modi and Hsien signed the joint declaration to elevate bilateral relations to a “strategic partnership to deepen and broaden engagement in existing areas of cooperation and catalyse new ones ranging from political, defence and security cooperation to economic, cultural and people to people contact”, an official statement said.
Besides this, two agreements on defence cooperation and loan of artifacts from India to Singapore, two executive programme/operationalisation documents on arts and culture, and white-shipping, and five memorandums of agreement (MoUs) on cyber security, civil aviation, knowledge exchange in the field of planning, urban planning, and combating drug trafficking were also signed.
The agreements were signed after talks between the two prime ministers here.
After the signing of the documents, external affairs ministry spokesperson Vikas Swarup tweeted that the two prime ministers noted the importance of culture between the two countries and encouraged more exhibitions, exchanges and interactions.
Modi and After the signing of the documents, external affairs ministry spokesperson Vikas Swarup tweeted that the two prime ministers noted the importance of culture between the two countries and encouraged more exhibitions, exchanges and interactions.
Modi and Hsien noted their shared interest in furthering cooperation in the areas of science and technology, particularly in space, biomedicine and ayurveda, the spokesperson added.
The two prime ministers also released two postal stamps showing Rashtrapati Bhavan and Istana, the Singaporean presidential palace, to mark 50 years of diplomatic relations between the two countries.
Speaking at the lunch hosted by his Singaporean counterpart, Modi described the city state Singapore as Asia’s economic lion which has been a major partner in India’s transformation.
“The Asiatic lion may now only be found in Gujarat. Asia’s economic lion is to be found here – in Singapore,” Modi said.
On his part, Hsien said the diverse Indian community in Singapore has played a large part in building the country.
Hsien said Singapore’s Indian pioneers include G. Sarangapany, who came here from Tamil Nadu in 1924. He founded the Tamil “Murasu” newspaper, and sold the paper at one cent a copy so that the poor could read it too, Channel News Asia report“d.
“Because of leaders like him, Singapore has today a thriving community of Indians who are well-integrated in our society and form an essential part of our multi-racial, multi-relig”ous mix,” Lee said.
Addressing the diaspora, Modi said: “The entire world is reposing a lot of faith in India today and the reason behind this is not Modi, but the Indians settled abroad.”
“Wherever you have gone, you have made that country your own, irrespective of circumstances,” Modi added.
Addressing the Singaporean business community at the India-Singapore Economic Convention, Modi admitted that there were still a number of regulatory and taxation issues in India and tried to hard sell the country’s business potential to Singapore’s corporate community, – and assured that he will do the hand-holding when they come to India.
“In the past few months, the interest of foreign investors in India has gone up tremendously. However, there were a number of regulatory and taxation issues which were adversely impacting on their sentiments. We have taken very decisive steps to remove many of the long-pending concerns,” Modi said.
Modi was hopeful that the much-awaited goods and service tax regime will roll out from 2016.
He said India’s growth rate was 7.3 percent last year and the World Bank has projected even better growth this year.
Modi observed that Singapore has emerged as the second largest source of foreign direct investment (FDI) in India. “Outward Indian FDI to Singapore has also increased in recent times. Singapore is now one of the top destinations for Indian investments.”
“We are working hard to make sure that our tax regime is transparent and predictable. We are also keen to see that genuine investors and honest tax payers get quick and fair decisions on tax matters. To this objective, we have already made a number of corrections,” the prime minister said.
He also said that in the last 18 months of the National Democratic Alliance-run government, reforms were happening in a “big way” and were now reaching to the last mile.
Modi also paid his respects at the Indian National Army (INA) memorial marker here.
“Remembering the valiant heroes of India’s independence struggle. PM pays homage at the INA memorial marker,” Swarup tweeted.
The prime minister bowed before the photograph of Netaji Subhas Chandra Bose placed at the memorial. Netaji led the INA which was dedicated to winning India’s independence from the British empire.

Source : IndianMediaBook - Bussiness


‘Construction equipment industry on growth path again’


“Coming out of three years of de-growth, the industry is stabilizing this year to gather momentum over the next two years, thanks to reforms and policy measures in the infrastructure sector,” Excon chairman and JCB India Ltd. chief executive Vipin Sondhi told reporters here.
Excon is a biennial expo of the earthmoving and construction equipment industry, whose eighth edition is being held this year from Wednesday at the Bangalore International Exhibition Centre (BIEC) to showcase its products and technologies for stakeholders in core sectors of the economy, especially infrastructure.
“Initiatives of the new (central) government have made the macro parameters favourable to the industry. With the economy reviving and inflation under control, some reforms such as opening up the insurance and defence sectors for more FDI (foreign direct investment) will lead to more infrastructure projects requiring our equipment,” Sondhi said.
Recent decisions to allow the road transport and highways ministry to clear projects worth Rs.1,000crore excluding the land cost, compensation for developers for delays by other stakeholders and allowing developers to exit a project after two years from the built-operate-transfer route will help the users of the industry’s equipment to fast track several projects that were held up for various reasons.
“Though de-growth has dipped our industry’s market size to $2.8 billion from over $3 billion three-four years ago when the GDP (gross domestic product) was growing at eight percent, we are setting a $5-billion target for 2020 in anticipating of huge investments in the core sectors of the economy, including infrastructure, which requires about $1 trillion,” Sondhi said.
Organised by the Confederation of Indian Industry (CII) in partnership with Indian and overseas associations, the five-day South Asia’s largest international construction equipment and technology trade fair will focus on “Make India – Building Infrastructure, Building the Nation”.
To be flagged by Union Road Transport, Highways and Shipping Minister Nitin Gadkari, the expo has attracted about 800 exhibitors, including 270 overseas firms.
Spread over 220,000 square meters of display area, the fair will witness launch of about 200 products and participation by 22 countries, including Britain, China, Finland, Germany, Italy, South Korea, Spain and Turkey.
“The scope and reach of Excon has been growing over the years and we hope to see more number of industries and visitors to make it the biggest construction equipment industry expo in South East Asia,” Sondhi added.

Source : IndianMediaBook - Bussiness


Pfizer, IIT-Delhi collaborate for healthcare incubation


For innovators seeking comprehensive support to translate their healthcare ideas into patents, the programme will provide two years of residential incubation at IIT-Delhi, funding of up to Rs.50 lakh for each innovator, mentoring support from IIT-Delhi’s faculty, access to infrastructure and prototyping laboratories, IP search and filing services, guidance from Pfizer’s global experts, and access to venture capitalists and other industry linkages.
For innovators who already have a ready proof of concept and are seeking to obtain a patent, the programme will provide access to IP attorneys and services and cover the patent fee.
The programme will invite two rounds of proposals during 2015-2016. Call for proposals for the first round will open from November 27 until January 15, 2016.
An independent panel of subject matter experts will review and shortlist the potential incubates while the Technology Business Incubator Unit board at IIT Delhi will make the final selection of individuals and startups.

Source : IndianMediaBook - Bussiness


SunEdison to terminate pact to acquire Continuum Wind Energy


In a statement issued here, the company said the Continuum portfolio consisted of 412.5 MW of wind power projects.
SunEdison and the shareholders of Continuum are in amicable discussion to complete termination related documentation.
According to SunEdison, the announcement is in line with its decision to optimise its business in line with current and future market opportunities.
In June this year, SunEdison said it has has signed a definitive agreement to acquire Continuum Wind Energy, Singapore with assets in India.

Source : IndianMediaBook - Bussiness

‘Withdrawl of tax exemption to negatively impact innovation’


While welcoming the move to simplify taxation laws, Reddy’s said withdrawal of R&D weighted deduction is potentially counter-productive and likely to negatively impact India’s innovation efforts.
The Central Board of Direct Taxes (CBDT) has proposed to reduce the tax exemption offered on investments made for scientific research from the current 200 percent to 100 percent.
“Countries across the world have been introducing various measures for promoting R&D initiatives in form of R&D credit, R&D weighted deduction and Patent Box etc. The R&D weighted deduction must continue, so as to provide India level playing field in an increasingly competitive global innovation environment,” said Saumen Chakraborty, President and chief financial officer (CFO) of Dr. Reddy’s Laboratories.
He said the proposal to reduce corporate tax from 30 percent to 25 percent over next four years, coupled with phasing out the investment linked and profit linked deductions, is a step in right direction.
He, however, said the government should also consider a reduction of Minimum Alternate Tax (MAT) in a phased manner.
“The Introduction of a sunset clause for Special Economic Zones (SEZ) with effect from March 31, 2017, seems to be at odds with the ‘Make in India’ objective. This could be deferred for a few more years, considering the significant investments by the companies, as also the impact SEZs encountered due to the MAT levy,” he added.

Source : IndianMediaBook - Bussiness


Foreign car sales in South Korea to top 250,000


This would maintain an almost double-digit growth, Xinhua quoted Korea Automobile Importers and Distributors Association as saying.
The KAIDA held a press conference in Seoul to mark the 20th anniversary of its establishment, forecasting this year’s foreign auto sales would reach 235,000.
For the first 10 months of this year, 196,543 units of foreign luxury brands were sold here, posting a market share of 15.8 percent.
It was a surge from 0.004 percent in 1987, when the government introduced import liberalisation of commercial vehicles with engine displacement between 1,000 and 2,000 cc.
Demand for foreign car brands kept a sharp upward trend, rising from 156,497 units in 2013 to 196,359 in 2014.
German luxury brands have led the growing popularity of imported cars. Sales of German brands, including BMW, Mercedes Benz and Volkswagen, took up for 68.7 percent of the total imported car sales here in October, up from 54.3 percent in 2003.
The portion of gasoline models to the total sales plunged from 97.8 percent in 2003 to 27.7 percent in October this year, indicating a surge in the percentage of imported diesel cars.

Source : IndianMediaBook - Bussiness



Afghanistan, India overland trade chances dim: Pakistani daily


An editorial “Regional connections” in the Dawn said that the latest Joint Economic Commission session between Pakistan and Afghanistan has ended without any breakthrough, and that is regrettable.
This was the 10th JEC session, and the first one following Afghan President Ashraf Ghani’s visit last year.
Kabul voiced disappointment at the pace of progress in implementing the 48-point agenda agreed upon during President Ghani’s visit, while Islamabad pointed to thorny “security issues” as the main sticking point.
The daily said that the “raft of agreements that now await implementation between the governments of Afghanistan and Pakistan makes an impressive list now, but the situation on the ground stubbornly refuses to budge”.
This makes for a sad sight because both parties involved have much to gain from advancing the mutually agreed agenda for enhancing connectivity between their countries.
The editorial said: “Kabul has long demanded access to New Delhi for its trucks, as well as permission to carry commercial cargoes back. India too has long asked for overland access to Kabul from the Wagah border.”
“The matter remains stuck due to Pakistani fears that such connectivity could be the means of expanding the Indian presence in Afghanistan, with security implications for Pakistan,” it added.
The editorial noted that the deep irony is that “greater regional connectivity is the best guarantor of regional security, while at the same time it is perceived as a potentially destabilising element”.
“Given the extreme reluctance of the government in India to engage with Pakistan at the moment, it appears that hopes for a breakthrough in the near future in the matter of overland transit trade between Afghanistan and India are dim,” it observed.
The daily went on to say that the relationship between Afghanistan and Pakistan “goes beyond India”.
It went on to say that talks to advance the import of electricity and natural gas from Central Asia to Pakistan appear to have made much more progress than the question of transit trade, but thus far the projects in question – Casa 1000 and TAPI – also have large security-related question marks hanging over them.
“The success of these projects is closely linked to that of the reconciliation process in Afghanistan. And once again, the stakes that are being held hostage by security considerations are far too large to ignore since the energy surpluses of Central Asia are a natural solution to the energy deficits of South Asia.
“Crucial to the logjam is the fact that both India and Pakistan feel they can get what they want without engaging the other, a perception that has the potential to freeze the status quo indefinitely into the future.”