TRUCKS OPERATION EFFICIENCY WENT UP BY 250 KM A DAY POST GST- NCCD

The operational efficiency of trucks carrying agri and horticulture produce stored in various cold storages houses from beginning to end point has enhanced to an extent of 550 km a day post GST as most of inter-state and intra-state barriers have collapsed post GST implementation, the new taxation that has benefitted the most the logistics sector, according to CEO, National Centre for Cold Chain Development (NCCD), Mr. Pawanexh Kohli.

Mr. Kohli who is also Chief Advisor, Department of Agriculture, Cooperation & Farmers Welfare, however, stated that since a vast majority of agri and horti items are GST exempt, its ramifications on the cold chain sector so far have been quiet positive barring on a few fronts and his department is seeking their redressal with department of finance.

Speaking at a National Conclave on Cold Chain Development under aegis of PHD Chamber of Commerce and Industry here today, Mr. Kohli informed that the running efficiency of trucks have gone up by an average of 250 km a day post GST which used to be about 300 km a day pre GST on account of the fact that barriers relating to inter-state and intra-state trade have largely disappeared since July 1st this year.

According to him, the logistics sector has been beneficiary of GST implementation to a large extent but on account of higher service tax on certain segments, the logistics costs have gone up.  The tax  has also gone up considerably on equipment and other auxiliaries that go into making of cold chains and cold storages and since NCCD received certain inputs on these fronts, the Department of Agriculture is undertaking an exercise to seek their redressal with Department of Finance and other stakeholders so that the surfacing anomalies are corrected, he added.

Chairman, Committee on Logistics Management, PHD Chamber, Mr. R S Bedi in his welcome remarks emphasized on further expansion of cold storages adding that these need to be modernized with increased capacities as the growth of agriculture and horticulture also depend on these facilities to equip farmers with gains that are consumerate to their labour.  The Conclave was moderated by Director, PHD Chamber, Dr. Ranjeet Mehta.

Bitcoins potential tool to boost digital economy but fraught with risks: PHD Chamber

While releasing a survey study on Industry Perspective on Bitcoins, Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry said Bitcoins could act as a potential transaction and payment mechanism for businesses given proper monitoring and regulation of the currency.

However, absence of the information about counterparties in the bitcoins transaction is a major drawback and may lead to unintentional transactions such as money laundering, said Mr. Gopal Jiwarajka.

Bitcoins are fraught with risks and not backed by any tangible asset but by sheer demand, he said.

PHD Chamber of Commerce and Industry organized a roundtable discussion on Industry Perspective on Bitcoins to know about the industry perspective about the prevalence of bitcoins in the system.

The survey study released cited that though lot of awareness about bitcoins is there in the system but there are hardly any users of this formula.

The prices of the bitcoins jumped from USD 100 in June 2013 to USD 3025 in June 2017. The number of bitcoins increased from 5 million in 2010 to 17 million in 2017.

Bitcoins are a fascinating instrument however highly volatile and susceptible to high risk makes it a vulnerable instrument, said Mr. Jiwarajka.

Bitcoins have gained tremendous ground on global financial investments in the recent years, he said.

Proper vigilance and directives to regulate the crypto-currency could boost the digital ecosystem in the country, said Mr. Jiwarajka.

Low transaction cost for bitcoins makes it a highly demanded instrument for digital transactions in the recent times, said Mr. Gopal Jiwarajka.

There is a high possibility that the world of bitcoin may expand, on the back of greater acceptance rate for bitcoins in the recent years, said Mr. Jiwarajka.

Eliminating the risks and having a regulatory mechanism could make this a viable option for promoting it as a digital currency in the country, said Mr. Gopal Jiwarajka

​

MOVE ON & FORGE AHEAD WITH AFRICAN COUNTRIES, ADVISES GEN. SINGH TO INDIA INC. AT PHD CHAMBER

Minister of State for External Affairs, Gen. (Dr.) V K Singh on Friday asked India Inc. to move on and forge ahead their business ties with African countries as these offer tremendous business opportunities to scaling up business on grounds of mutual benefits.

The Minister also called upon the indigenous industry to come out with an exclusive solution map to further enhance on and facilitate the existing economic and business ties between India on the one hand and entire African union on the other rather than finding faults with terms of trade that may sometime hinder their trade prospects.

Addressing 3rd Annual International Conference & Exhibition on Africa – A Land of Opportunities under aegis of PHD Chamber of Commerce and Industry here today, Dr. Singh emphasized, articulating that there could be few loopholes in existing terms of trade so far as economic engagements between India and African countries are concerned.

However, these should not lead to halt the growing trade and economic ties between India and African countries even temporarily and that the businesses of both the sides should focus on moving on and forging ahead, said Dr. Singh calling upon the industry associations such as PHD Chamber to come out with a solution map so that such issues are resolved and businesses move on as usual.

Dr. Singh felt that the African countries provide for huge material resources to their Indian business counterparts with plenty of opportunities for wealth creation for both the peoples and Indian industry should reciprocate so that the business transactions acquire a conclusive proportion to the benefit of the two.

Ambassador, Embassy of the State of Eritrea & the Dean of Heads of African Missions in India, Mr. Alem Tsehaye who also spoke on the occasion stressed that since India and African countries enjoy the historic legacy, their trade multiplication should happen at rapid pace.

In his welcome address, President, PHD Chamber, Mr. Gopal Jiwarajka also felt that given the closeness of the peoples of India and African union, the pace with which the economic ties are growing currently, need a review so that the full potential is realized.

Among others who were also present on the occasion consisted of Interim Director General, International Solar Alliance, Mr. Upendra Tripathy; Chancellor, S-VYASA & President, VYASA, Dr. H R Nagendra; Chairman, International Affairs Committee for Africa & Middle East, PHD Chamber, Mr. Ranjeet Chaturvedi and its Secretary General, Mr. Saurabh Sanyal.

REMOVE GST ON INTERNATIONAL FREIGHT AS IT WILL STIFLE AIR CARGO GROWTH: PHD CHAMBER

PHD Chamber of Commerce and Industry on Wednesday urged the government not to impose GST on international freight as air cargo trade is already facing many challenges and that such a taxation is also not in vague in economies of scale and therefore, why make India an exception on this front.

The Chamber has argued that at a time when domestic civil aviation industry anticipates that India will be among the 10th largest international freight market by 2018, with domestic Indian air cargo increasing by 7.3% as per current estimates over the 2016 rate, subjecting international freight at 18% GST is totally unfair as it will stifle the growth of air cargo.

The aforesaid recommendations were made by the Chamber at its Air Cargo Summit-2017: Growth of Air Cargo Logistics in Changing Times which was presided over by Chairperson, Airports Economic Regulatory Authority of India, Mr. S Machendranathan and moderated by President, PHD Chamber, Mr. Gopal Jiwarajka in which Economic Advisor, Ministry of Civil Aviation, Ms. Vandana Aggarwal; Chairman, Civil Aviation Committee, PHD Chamber, Mr. K Narayana Rao and its Co-Chairmen, Mr. Vipin Vohra and Mr. Bhupesh Joshi were also present along with its Director, Mr. Yogesh Srivastav.

The Summit pointed out that all over the world,  International freight is not taxable adding that Indian exporters need not be burdened with wrongly interpreted GST tax on International freight.  This is based on well accepted principle that goods and services are exported but not taxed.

“Why would the government of India want Indian exporters to pay extra 18% GST on freight and make our goods non-competitive in international market”, asked the Summit,  stressing that even if GST to exporters are refundable by CENVAT credit, it is incorrect as again cost of export go up by financing GST and taking the refund as an administrative and financial cost.  Indian exporters are again at a disadvantage if this is the case. Hence GST should not applicable on international freight, further contended the Summit.

The Chamber further held that the aviation logistics in the country today, particularly for export cargo, and equally for the domestic cargo, is confronted with multitude of serious issues like inordinate dwell times, missing and non-traceable cargo, damaged cargo, lengthy cargo processing times and queues of trucks at the cargo terminals, etc. Air cargo infrastructure in India is woefully inadequate and overloaded.

It has further highlighted that the procedures mandated by multiple agencies stifle innovation and growth besides causing inefficiency in the system.  Existing procedures have not yet been aligned with the technological progress which has become international best practices. Missing Cargo/non-traceability of cargo in terminals has assumed undesirable proportions. This has serious implications for not only timely delivery of cargo but also in terms of security and image of the country in international trade.

Thus, the need of the hour, therefore, is to streamline the procedures for movement of domestic air cargo and simplification of procedures for safe transit and timely delivery. Also, the Govt. should encourage competition by introduction of Domestic Freighters on trunk routes, where at the moment only one airline is operating. This step will also reduce the cost of carrying the goods and the bottlenecks in the present system.

ELIMINATE COLLATERAL CONDITIONALITY FOR WOMEN ENTREPRENEUR AND REPLACE HONORIFIC ‘SENIOR CITIZEN’ WITH ‘WISER CITIZEN’ FOR ELDERS: PHD CHAMBER

PHD Chamber of Commerce and Industry on Tuesday asked the government of the day to remove collateral conditionality for women entrepreneur from the Redbook so that banks and financial institutions aggressively come forward to part finance their Startup ventures since a vast majority of these are ill equipped to submit such a documentation in their maiden attempts to seek fiscal aid from them.

In addition, it has also sought a replacement for honorific such as ‘Senior Citizen’ with a ‘Wiser Citizen’ for elderly people, exceeding age of 60 as this expression does not invoke the required veneration that the lot of this age amply deserves and many a time has a negative connotation to reflect on their mellowed wisdom.

The aforesaid recommendations were made by the President, PHD Chamber, Mr. Gopal Jiwarajka at a Women Startup Summit-2017 that was held here today under its ages in which the presiding officer was Chairperson of National Commission for Protection of Child Rights, Ms. Stuti Kacker among a few women startups as also Chairperson, Women & Child Development Committee, PHDFWF, Ms. Anuradha Goel.

The Chamber felt that producing collateral related documents to banks and financial institutions by most of women entrepreneurs is a tedious task due to cumbersome procedures relating to inheritance disadvantages and obstructions that follow thereafter and therefore, this age old rule needs to be given a handsome burial at an age in which startups and particularly women entrepreneurs have begun to outshine their male business counterparts.

Likewise, expression such as ‘Senior Citizen’ for elderly people should also be replaced with the suggested honorific ‘Wiser Citizen’ to broad-base its connotation and outreach in emerging and evolving times as a great deal of them are reigning in with great sense of responsibility and accountability both at policy making worldwide as well in terms of generating wealth with a nurturing sense, said Mr. Jiwarajka.

Among other who also spoke on the occasion comprised Proprietor, P‘n’A Industries, Ms. Anju Bajaj; Fashion Designer, Ms. Rina Dhaka; Partner, Little Farms Co., Ms. Niharika Bhargava; Co-Founder, SquadRun Inc, Ms. Kanika Jain; Invest India, Startup India Hub, Ms. Jasleen Kaur Lamba and Secretary General, PHD Chamber, Mr. Saurabh Sanyal.

A Good Time to Reduce the Repo Rate: PHD Chamber

We appreciate the efforts of the Government to tackle the inflationary scenario which has come down significantly from 6.1% in July 2016 to the level of 1.5% in June 2017. WPI inflation has also decelerated from 3.3% in January 2017 to 0.9% in June 2017, said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry.

However, despite the significant deceleration in inflation rate, the repo rate is still high and growth of industry and manufacturing sector is in the lackluster trajectory, said Mr. Jiwarajka.

Growth in industry output, as measured in terms of IIP, for the month of May 2017 grew only at 1.7% of which the growth of manufacturing sector stands at 1.2% in the same period, he added.

The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) fell to a four month low of 50.9 in June 2017 from 51.6 in May 2017, signalling a subdued improvement in the manufacturing sector.

So, at this juncture rate cut becomes inevitable to support the industrial growth and to enhance the competitiveness of the manufacturing sector, said Mr. Jiwarajka. 

Now, almost all the factors are favourable such as good monsoon behavior, inflation is under control and GST is implemented, he said.

Considering the good monsoon behavior supported by reforms in the supply side, we believe the inflation should not be more than 4% in the current financial year 2017-18, said Mr. Jiwarajka.

It is inspiring to know that India’s inflation rate is lower as compared to various advanced and emerging economies such as United States of America (USA), Germany, South Africa, Brazil and Russia, he said.

However, interest rates in India are much higher than USA, Germany, China and Singapore, he said.

It has been observed that USA have lower inflation rate (1.6%), but at the policy front, interest rates in the country is also low at 1.25%. Similarly in the case of China and Singapore, the inflation and interest rates are in the lower trajectory.

RBI reduced repo rate by 25 basis points in October 2016, however, industry was expecting a rate cut at so many junctures. Firstly, at the time of demonetization, secondly at the time of fiscal consolidation measures announced during Union Budget 2017-18 and thirdly at the time of good monsoon in July 2017, said Mr. Jiwarajka.

Going ahead, we expect atleast 25 basis points cut in repo rate from 6.25% to 6.0% in the forthcoming third bi-monthly Monetary Policy 2017-18 due on August 02, 2017 and further, 25 basis points cut in repo rate by December 2017.

Share of top ten export destinations increased from 49% to 51.6% : PHD Chamber

Despite slowdown in World exports, India’s export growth remained intact with USA

India’s exports to top ten destinations have gained strength as the share of top ten destinations has increased to 51.6% in 2016-17 from 49% in 2013-14 said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry.

The decline in exports growth rate was also less with top ten destinations as compared with rest of the economies.

Export volume to top ten export destinations declined 7.7% from US $ 154.05 billion to 142.55 billion in 2016-17 whereas export volume to rest of the economies declined 16.6% from US $ 160.36 billion in 2013-14 to US $ 133.73 billion in 2016-17.

India’s overall merchandise exports declined 12% during the same period from 2013-14 to 2016-17 from US$ 314 billion to US $ 276 billion.

Despite overall slowdown in exports growth, it is inspiring to know that India’s merchandise exports to USA grew from US $ 39.14 billion in 2013-14 to US $ 42.33 billion in 2016-17 showing a growth of 8.1% with the World’s largest economy, said Mr. Jiwarajka.   However, India’s exports to China declined 31% from US $ 14.82 billion in 2013-14 to US $ 10.2 billion in 2016-17.

Nearly 53% of the India’s  exports to USA are in the form of consumer goods, followed by intermediate goods (29%), capital goods (12%) and raw materials (6%).

India and USA have consistently increased their intra-industry trade over the last many years, said Mr. Jiwarajka.

Going ahead, scope for enhancing the present intra-industry trade between India and USA is immense, he said.

India’s products’ export pattern has grown tremendously in tandem with the import pattern of USA. The alignment has recently witnessed a jump in 2016 indicating the demand pattern of USA has been inclined more and more in favour of supply pattern of India, he added.

Considering the steady trade pattern with USA, our exports to USA are seen at US $ 50 billion by the next financial year 2018-19, said Mr. Gopal Jiwarajka

Exports to UAE also increased from USD 30.52 billion in 2013-14 to US $ 31.3 billion during the same period showing a growth of 2.5%, said Mr Jiwarajka.

Hong Kong has superseded China as the 3rd biggest export destination for India on the back of rising demand of Indian products in Hong Kong. 

India’s exports to Hong Kong grew 11.2% from US $ 12.73 billion in 2013-14 to US $ 14.2 billion in 2016-17, he said.

Going ahead, we are hopeful that our exports will touch US $ 325 billion mark in the current financial year 2017-18, said Mr. Gopal Jiwarajka.

“LONG TERM DISTRIBUTION PLAN” ON CARDS: UNION POWER MINISTRY

For the first time in the history of power sector, the Centre Government has indulged in an exercise of making a well documented and intensively comprehensive “Long Term Distribution Plan” to attack supply side constraints of the power sector to enable India access 24X7 power supply, especially all in its rural pockets, according to Director, Ministry of Power, Mr. Vishal Kapoor.

Mr. Kapoor who was speaking at a National Conference on Power Transmission & Distribution under aegis of PHD Chamber of Commerce and Industry here today added that the Union Power Ministry has already assigned this task on Central Electricity Authority (CEA) that would finish off preliminary work on it in next 3-4 months.

According to him, the CEA would initiate this exercise with intense interactions with all states, UTs including centre and other such stakeholders by addressing the issues relating to transformers, sub-stations and the like with existing and available technologies so that the power availability in India’s rural landscapes and its every nook and corner is not questioned.

He held that Union Power Ministry in the past came out with several documented details relating to generation, distribution power theft and whole lot of other policy issues but never made an attempt to document a long term detailed plans addressing challenges of distribution side of the power sector.

It is for the first time, this exercise is being undertaken, the sole objective of which is to make sure that India and its rural areas are fed with uninterrupted power supply under the present regime, the focus of which is to not only satisfy the power consumers with quality power but also to bring out the DISCOMS that’s financial health is under severe crisis out of their present mess, felt Mr. Kapoor.

With the launch of UDAY, the conditions and health of power distribution utilities have begun to improve significantly since its take off a year ago and even the plant load factor of state owned power generating utilities underwent a sea change with their improved efficiencies as a result of which the power tariff per unit came down by 40 paisa.

On the occasion, Chief Engineer, CEA, Mr. Ashok Kumar Rajput made a detailed presentation on host of issues that confront the power sector, prescribing solutions and initiatives of the CEA to attack those judiciously so that the power situation under goes a metamorphic changes. The conference was moderated by Director, PHD Chamber, Dr. Ranjeet Mehta.

CGWB UNDERTAKING MASSIVE SURVEY IN 21 STATES TO ASCERTAIN ARSENIC AND FLUORIDE IN GROUND WATER, SAYS ITS MEMBER

Central Ground Water Board (CGWB) under the Ministry of Water Resources, River Development and Ganga Rejuvenation is undertaking a massive arsenic and fluoride survey all over the country to ascertain their chemical contents in the ground water for potable purpose by digging a great deal of wells in almost 21 states in which patchy reports have surfaced for their chemical presence in such a water, according to its Member, Dr. Dipankar Saha.

Addressing a National Conclave on Drinking Water Quality under aegis of PHD Chamber of Commerce and Industry and Department of Science and Technology here today, Dr. Saha pointed out that we are going to recommend to the 21 states to avoid potable water extracted from ground wells immediately beneath the surface as their exist huge possibility of chemicals such as arsenic and fluorides that are utterly dangerous for human consumption.

The Survey would lay emphasis on digging wells below 300 meters the surface as arsenic and fluorides contents there are missing and such water taken out of the wells could be fitter for human consumptions.

The Central Ground Water Board is concentrating on a massing survey in states such as West Bengal, Assam, Chhattisgarh, Jharkhand, Karnataka, Uttar Pradesh, Punjab, Haryana, Rajasthan and the like as in those 21 states, excessive use of fertilizers have led to accumulation of arsenic and fluorides immediately beneath the surface in the last couple of decades, filling their ground water with these dangerous and injurious chemicals, he pointed out.

According to him, the focus of the survey would be to dig wells deeper below the surface of 300 meters in which possibilities these chemicals hardly exist as of now and the dug up wells would be handed over to the states concerned for necessary water supply for drinking purposes.

In the meanwhile, a report was also released on the occasion which was jointly prepared by the PHD Chamber and Water Aid which stressed that the challenging task at the hand of water managers remains to ensure adequate access to water resources without undue environmental degradation.

The report warned that India will become a water stressed nation by 2020, keeping in view the fact that the average availability of water is reducing steadily with growing population.

Therefore, the two have suggested a way forward for improving on water accessibility with an integrated approach of various government departments responsible for this task pointing out that water has been an issue in India which has been dealt with by policy makers in isolation.

Among those that released the report comprised Chief Engineer, Central Water Commission, Mr. R K Sinha; Scientist, Department of Science & Technology, Dr. Neelima Alam and Director, PHD Chamber, Dr. Ranjeet Mehta also emphasized that a policy is urgently needed to regulate water consumption by all stakeholders.

The Chamber has, therefore, recommended that a political consensus needs to be created for judicious use of water and recycling technologies need to be brought in from advanced nations such as Israel and the like in India for the intended purposes.

It was felt that 85 per cent of India’s drinking water needs are fulfilled by aquifers and 62 million people are suffering from various levels of fluorosis.  Out of the total 17,13,303 water habitations in India, 176,177 are found to be  contaminated.

DY. CM, NCT OF DELHI PLEADS FOR LOWER GST RATES FOR HIGHER COMPLIANCE ALSO ANNOUNCES A ‘BUSINES CONCLAVE’ TO IMPROVE ON EASE OF DOING BUSINESS AT PHD CHAMBER

Deputy Chief Minister, Government of NCT of Delhi, Mr. Manish Sisodia on Wednesday announced that the government would hold a ‘Business Conclave’ in collaboration with industry associations such as PHD Chamber of Commerce and Industry to collectively identify issues and seek solutions that still obstruct the ease of doing business in the national capital.

The proposed ‘Business Conclave’ to be hosted in next 30-40 days following its conclusion would notify issues that require immediate policy intervention for improving ease of doing business in national capital be brained stormed within multiple government departments of national capital so that a relevant policy making is done and national capital becomes a hub of ease of doing business, he emphasized.

Addressing an Interaction Session on Ease of Doing Business and GST Gearing up for Change in Delhi NCR under aegis of PHD Chamber of Commerce and Industry here today, Mr. Sisodia observed that improving on ease of doing business in national capital is the foremost priority of the state government.

Alluding to recently GST Laws, the Deputy Chief Minister reiterated his commitment to industry recalling that he would still voice his concern for bringing down the higher slabs of GST to considerably lower rates in GST Council’s forthcoming meeting, arguing that the focus of Delhi Government would be to increase business without enhancing the GST slabs so that the tax compliance increases with increase in tax compliance basket.

According to him, the higher slab of GST at 28 per cent is still uncalled for as so long as this slab is not moderated, the GST cannot be termed as one of the most influential tax reforms in the history of post independent India.

In his welcome address, President, PHD Chamber, Mr. Gopal Jiwarajka also reminded Mr. Sisodia that taxing consumer durables and other such items at 28 per cent is too harsh and a review of this is called for in subsequent GST Council’s meetings.

Among others who also spoke on the occasion comprised Sr. Vice President, PHD Chamber, Mr. Anil Khaitan; Chairman and Co-Chairman, Delhi NCR Committee of the Chamber, Mr. Dhiraj Dhar Gupta and Mr. Pradeep Multani; Secretary, DFOF, Mr. Sameer Nayyar; Director, PHD Chamber, Mr. Vivek Seigell.

10-15% OF ROADS AND HIGHWAYS PROJECTS OF NHIDC ARE RUNNING RISK OF BAD VENTURE, SAYS ITS DIRECTOR (A&F)

Between 10% to 15% of National Highways’ & Infrastructure Development Corporation (NHIDC) roads and highways projects are turning out to be the bad performing ventures on account of contractors’ fault due to their inability to arrange for necessary working capital to initiate work on them, alleged its Director (A&F), Mr. Sanjay Jaju here on Thursday.

This is despite of the fact that such infrastructural projects have been awarded to various contractors in north eastern and other strategic areas of the country for building roads and highways with 90% completion of land acquisition formalities with eliciting firm commitment from them to finish off the projects well within the deadline, further declared Mr. Jaju.

Inaugurating a National Roads & Highways Summit 2017 under aegis of PHD Chamber of Commerce and Industry here today, Mr. Jaju claimed that NHIDC has been building roads and highways of around 2,000 km in multiple locations of north east and other bordering areas with strategic importance with an investment of Rs.35,000 crores.

“Though, most of such projects are progressing fairly well but 10% - 15% of them are suffering and even decaying purely for the fault of contractors because of their share lethargy in terms of raising the necessary working capital.  The corporation has already issued notices to non-performing contractors for the revival of such projects, failure to respond to the notices already served, the necessary punitive action might follow since working capital requirement is entirely the onus of the contractors and the corporation cannot fund this”, indicated Mr. Jaju hoping that the persuasive attempts of the corporation would yield desired results in terms of issuance of notices.

“Land acquisition is definitely an issue for building roads and highways in various parts of the country but the corporation such as ours, awards roads and highways projects to bidders only after 90% of land acquisition formalities are accomplished and therefore, those contractors that have generating working capital capacity should only come forward for winning roads and highways projects”, clarified Mr. Jaju.

In his welcome remarks, Sr. Vice President, PHD Chamber, Mr. Anil Khaitan also emphasized on criticalities of roads and highways for economic uplift of the country and particularly so when such projects are undertaken in bordering and strategic areas where the objective is to connect the country with its neighbours such as Nepal, Bhutan, Myanmar, Bangladesh and the like.

Among others who also spoke on the occasion comprised Chairman, Raods, Ports & Other Infrastructure Committee, PHD Chamber, Mr. Ashish Mohan Wig and its

Director, Dr. Ranjeet Mehta.

PROPAGATE INTAKE OF ‘SLOW FOOD’ WHICH IS GOOD, CLEAN & FAIR AND SOURCED DIRECTLY FROM MOTHER EARTH

PHD Chamber of Commerce and Industry on Tuesday sought to propagate a liberal intake of ‘Slow Food’ in every nook and corner of the country to revive consumption of seasonal traditional food to keep India healthy and physically stronger in the globalized economy to have sufficient space for good, clean and fair food which defines the slow food and is directly sourced from mother earth.

Its President, Mr. Gopal Jiwarajka while speaking at a discussion on the Concept of Slow Food under aegis of PHD Chamber of Commerce and Industry here today not only made the aforesaid observation but also called for promotion of “Food Tourism” with special emphasis on revival of indigenous and traditional cuisine as their usages and consumptions are almost fast disappearing.

In the concept of Slow Food in which host of Chefs from leading hospitality industry such as ITC Hotels, Taj Group, JP Hotels and the like had assembled under umbrella of Slow Food Chefs Alliance, it was unanimously agreed that in the age of increasing consumerism, indigenous foods with aroma of its multiple spices and traditional cooking applications have vastly dissipated.

Therefore, the revival of traditional foods is the need of hour to keep India healthy with its farmers and their produce directly and thickly associated with the movement as with their participation in it, the food would not only be tastier but also healthier with all seasonal produce of domestic agriculture as well horticulture.

The above views were collectively expressed by the participants in the workshop which comprised Chef Rajdeep Kapoor, President, Slow Food Chefs Alliance & Executive Chef ITC Hotels; Ms. Gunjan Goela, Vice President, Slow Food Chefs Alliance & corporate Food Consultant; Chef Rahul Wali of Restaurant Practicing Slow Food; Mr. Puneet Jhajharia, Co-Founder and Director Ms. Ishira at Crop Connect; Ms. Anuradha Goel, Chairperson, Women & Child Development Committee, PHD Chamber and its Secretary General, Mr. Saurabh Sanyal.

Safety of Gelatin Capsules vs HPMC Capsules

The PHD Chamber of Commerce & Industry ( PHDCCI) has submitted a representation to the Expert Committee headed by Dr. C. K. Kokate, Chairman, Expert Committee, Directorate General of Health Services, (DGHS), Ministry of Health and Family Welfare, Govt of India, in regard to the replacement of Gelatin Capsules with Cellulose Capsules as also the safety and vegetarian or non vegetarian aspects concerning Gelatine capsules versus HPMC capsules.

It may be noted that the DGHS vide notice dated June 02, 2017, had sought views of various stakeholders to address all the technical issues pertaining to replacement of gelatin capsules with cellulose based capsules for encapsulation of drugs.

The notice states that “A proposal has been received to replace gelatin capsules with cellulose based capsules which are of plant origin and are safe for use as compared to animal based gelatin capsules”.

Ministry of Health and Family Welfare vide order dated 20.03.2017 has constituted an Expert Committee to address all the technical issues pertaining to replacement of gelatin capsules with  cellulose based capsules for encapsulation of drugs.

The Committee has desired that views of stakeholders including manufacturers/marketers of HPMC capsules as well as NGOs who are working in this area or involved in this subject may also be obtained so that a considered view can be taken in the matter.  In order to examine the pros and cons of the proposal, suggestions/comments are invited from the Stakeholder/NGOs/Consumers within 21 days.

“In the meanwhile, soft gelatine capsules have been given a go-ahead, therefore there is no prima facie issue with the raw material and hence the replacement of the hard gelatine capsules being non-vegetarian is totally misplaced and uncalled for”, said Vivek Seigell, Director, PHD Chamber of Commerce & Industry said that the PHDCCI,

In this connection, at a meeting of the Technical Advisory Board (DTAB) of the CDSCO (the apex body to decide on technical issues) on May 13, 2016, a proposal to label cellulose based capsules with a green dot to indicate its vegetarian origin was considered. The DTAB turned down the proposal for the required amendment of the Drugs & Cosmetics Act on the basis that unlike in the case of food items, the choice of drugs is not that of the consumer (the patient) and is based on the prescription of the doctor where considerations of vegetarian origin or animal origin has no relevance. DTAB also recorded its observation that HPMC capsules are made from a semi synthetic chemical and hence cannot be considered of vegetarian origin.

The Supreme Court, in its order dated March 07, 2013, Case No. 641, had ordered that there is no need for non-veg or veg labels on drugs or cosmetics and hence even the red dots which are printed on non-veg products was not implemented for medicines.

According to Vivek Seigell, Director, PHD Chamber of Commerce & Industry, Gelatine Capsules are consumed by people at large as carriers of important medicines used to cure many terminal and lifestyle diseases. The consumption of medicine is more curative than out of personal choice. Looking at basic fundamental, it is not prudent to enter the Vegetarian and Non-Vegetarian debate in this matter. It may further be noted, that Gelatine used in the manufacture of empty capsules are derived from an extraction process wherein no animals are harmed or killed for this specific purpose. Only the left over bones having hydroxide and collagen, which is a protein widely found in animal bones (and is not more than 2% of the total value of the dead animal) is extracted through sophisticated machineries in WHO GMP approved extraction and manufacturing plants. Accordingly it is misplaced to have any notion that Gelatine Capsules are non-vegetarian in origin.

Gelatine capsules are totally safe for human consumption. WHO as per evidence certifies Empty Hard Gelatine Capsules for its total safety for Human Beings. And so do the Pharmacopoeia of USA, Japan,  European Union, United Kingdom, Australia and India.

When a scientific body of the Government of India, the Indian Pharmacopoeia Commission, publishes a monograph on gelatine and empty gelatine capsules how can it then be unsafe?  Presumably, the ultimate test of safety of a product is if it conforms to the specifications given in a pharmacopoeias, Several other pharmacopoeias around the world, including the British Pharmacopoeia, the United States Pharmacopoeia, and the Japanese Pharmacopoeia have confirmed its safety.

Inspite of the repeated requests Professor Kokate’s committee has not yet replied to stakeholders as to why gelatine capsules are less safe than HPMC (cellulose) capsules and what is the scientific and technical evidence for the same, if any.

“Across the globe over 95% of capsule formulations are gelatin capsules and even among the rest 5%, HPMC is primarily used for nutraceutical formulations. In India only around 2% capsules are HPMC based and almost all of them are nutraceuticals”, said Vivek Seigell. He further added that no cellulose capsules are used for products such as antibiotics, oncology, anti-infectious, painkiller and other medicinal categories. Nor have any tests been carried out by the DCGI in India whether such medicinal products would maintain their stability, bio-availability, bio-equivalence and other properties if filled in Cellulose capsules.

Technically speaking:

·        Pharmacokinetics and Pharmacodynamics properties of the drug has to be tested before it is put in to the market if the drug is encapsulated in Cellulose Capsules

·        Bioequivalence study for each drug would have to be carried out also

·        HPMC capsules are not suitable especially if the medicine has Potassium ions.  Similarly for a few of the drugs, Cellulose capsules were better than Gelatine capsules

·        At the same time a study of end of shelf life performance for cellulose based capsules needs to be conducted and, hence, the issue of replace of Gelatine should not be taken hastily

·        The time taken for the above tests of bioequivalence of thousands of drugs and combinations and Pharmacokinetics and Pharmacodynamics properties will take several years followed by the long process of approval from the drug authorities and any such move could mean devoiding the 1.2 billion people of this country of basic medical and health services for that many number of years.

 Following are the pointwise clarifications detailing the Myths and the Reality:

MYTH -1

HPMC CAPSULES ARE USED EXTENSIVELY IN MANY COUNTRIES

Reality

Over 95% of capsule formulations are  gelatin capsules and even among the rest 5%, HPMC is primarily used for nutraceutical formulations the World over . In  India only around 2% capsules are HPMC based and almost all of them are nutraceuticals.

MYTH -2

HPMC IS SAFER THAN GELATIN

Reality

Gelatin has been used for hard and soft capsules over the last 100 years and so far there has been practically  no reports of severe or even moderate adverse effects. On the other hand HPMC for Hard Capsules are of recent origin. Unlike in the case of production of Gelatin, HPMC manufacture involves use of reagents and chemicals, some of which are potential carcinogens,  in a multi step process..  The track record of HPMC use is just a decade or even less and therefore it is difficult to predict safety over time.

MYTH -3

HPMC OF THE RIGHT GRADE IS READILY AVAILABLE

Reality

The limited use of HPMC in India is dependent on imports (mostly from China) and it is not clear whether new generation HPMC, recommended for capsules is readily available and if they are, at what prices.

MYTH-4

REPLACEMENT OF GELATIN BY HPMC DOES NOT REQUIRE NEW REGULATORY APPROVALS

Reality

Any change of formulation and introduction of a new material or excipient is considered a New Drug under Schedule Y of the D&C Act. That means that every replaced formulation (with HPMC) of every API needs to be validated for safety, efficacy and pharmacokinetic parameters of dissolution, disintegration, release and  stability  through fresh pre clinical and/or clinical investigations. In fact if all hard gelatin capsules in the market ( close to 20,000 packs) are to be replaced, it will take several years to get them tested and approved and costs would be enormous  and that too at a time when every one is attempting to reduce healthcare costs  to make it more affordable for the masses.

MYTH- 5

CHANGE OVER TO HPMC WILL NOT ADD TO HIGHER COSTS OF THE CAPSULE FORMULATIONS

Reality

At present prices of HPMC , it is estimated that the costs  of production of HPMC capsules will be considerably  higher and so too prices. The new generation HPMC which is preferred for use in capsules is still patent protected and hence patent holders will have monopoly on prices.

MYTH – 6

ANIMALS ARE SLAUGHTERED FOR RAW MATERIAL (BONES, HIDES, FISH SCALES ETC. ) TO MANUFACTURE GELATIN

Reality

Raw materials used are waste products  of animals and animal derived foods, which  are environmentally unsafe and difficult to dispose off . Converting them to Gelatin and derived products adds value to waste material and offers solution to waste disposal issues. No animal is slaughtered for manufacture of Ossein, Gelatin and derived products

MYTH – 7

HPMC IS PLANT BASED AND THEREFORE NATURAL

Reality

While HPMC is based on Cellulose to start with, it undergoes chemical reactions involving building of new covalent linkages and hence is a chemical by definition and not a natural material

MYTH – 8

PRESENT PLANT AND MACHINERY CAN BE UTILIZED FOR MANUFACTURE OF HPMC CAPSULES

Reality

The process being different, considerable modification and fresh investments in new machinery would be required to produce HPMC capsules  

With the stoppage of Gelatine Capsules, both Cellulose capsules and Cellulose raw material will have to be imported at huge foreign exchange cost mainly from China, there by further increasing our dependence beyond the APIs which itself is quite precarious.  Additionally the capacity to supply HPMC capsules simply does not exist from overseas manufactures.

Vivek Seigell also pointed out that if it is an issue of non-vegetarian versus vegetarian capsules, then it should be noted that there has never been a bias against non-vegetarian sources in the manufacture of medicines. Products from non-vegetarian sources are currently widely used in many segments of pharmaceutical industry.

Gelatine is used in Blood plasma substitutes, Haemostatic sponges, Surgical implants, Hydrocolloidal dressings, Collagen for skin cream and Dietary supplements, certain food colours, vaccines, apart from auxiliary treatment for degenerative arthritic diseases and many other products, including a large number of food products.

95% of the Gelatine manufactured in India is produced by the PHDCCI Association members.  

PHD CHAMBER AND PAN IIT ALUMNI INDIA SIGN MOU TO EXPLORE AND DEVELOP OPPORTUNITIES IN RURAL DEVELOPMENT AMONG OTHERS

PHD Chamber of Commerce and Industry and Pan IIT Alumni India have signed a Memorandum of Understanding here to jointly advise and assist the governments and its agencies, private sector and the community with “Technology” led solutions to explore and develop opportunities in the Rural Development and Rural Enterprises in India and more specifically in the targeted states.

The MoU signed between the Secretary General of the PHD Chamber Mr. Saurabh Sanyal and General Secretary, Pan IIT Alumni India, Mr. Sanjay Govil will also identify need based opportunities in the selected thrust areas such as development of rural infrastructure and services, upgradation and establishments of rural enterprises, participation in the value chain of rural produce, access to technology and skills development, access to markets and access to funds.

In addition, the two organizations will also work for capacity building of stakeholders and local partners and make collaborative efforts to jointly support development of rural technology parks, rural incubators and rural enterprises based projects in the targeted states of India and its replication thereafter.

Both will jointly facilitate in funding local partners to implement specific projects as may be agreed upon as also provide necessary technical support and training to local partners for the implementation of projects, besides exploring the funding for project design and development, implementation and monitoring from central government, the state government and also foreign bilateral and multilateral sources.

In a statement issued here today, Mr. Sanyal said that PHD Chamber and Pan IIT will constitute a taskforce to jointly prepare a programme, project outline by 31 August 2017 which will also formulate the tentative schedule for implementation of specific projects identified in the thrust sectors.

PHD Chamber welcomes GST roll out and looks forward to fruitful results at the ground level

While welcoming GST Mr. Gopal Jiwarajka, President PHD Chamber said we look forward to reduction in the cost of doing business and improvement in the ease of doing business in the coming times.

Businesses are expected to perform more efficiently vis- a -vis. simplification of indirect taxes; consumers are expected to be benefited by reduction in the prices of goods and services viz. a viz. elimination of the cascading impact of indirect taxes he said.

Whereas, economy is expected to gain from efficiency of the businesses, enhanced production possibility frontiers and investors attraction towards India, he added.

We appreciate the taxes on the commodities of mass consumption in the rationalised trajectory of 5% - 12%, however, we look forward towards rationalisation of the taxes on the white goods and other consumer goods under the ambit of 28%, said Mr. Jiwarajka.

Though there is a lot of awareness at the top level, however, training of the officers at the lower levels will go a long way for the fruitful outcome at ground level, said Mr. Jiwarajka.

PHD Chamber will be continuously organising programmes on GST awareness vis-a-vis. industry , government interactions on various developments in the GST arena, he said.

We look forward to a proactive role of the government in resolving the issues and challenges faced by trade and industry under the ambit of GST, since it is the biggest tax reform ever in the history of India, issues and challenges in the implementation process cannot be ruled out, he said.

We expect fruitful outcomes would come soon and economy would head towards high growth trajectory, said Mr. Gopal Jiwarajka.