Water likely to be driven out from ‘State List’ into Concurrent list : Joint Secretary, Ministry of Water Resources

Ministry of Water Resources, River Development and Ganga Rejuvenation has begun an exercise to bring in ‘water’ into the ‘concurrent list’ to better manage and regulate India’s water management and there is a political consensus on the matter, according to its Joint Secretary, Mr. Sanjay Kundu.

Addressing a Conference on Water Pollution and Waste Water Treatment under aegis of PHD Chamber of Commerce and Industry here today, the Joint Secretary also disclosed that the Centre has also commenced a process to bring in an exclusive ‘Waste Water Management Policy’ to manage country’s ground water situation which is already reached an alarming level.

“Lot of Parliamentarians and senior level polity have jointly voiced their serious desire and willingness both within and outside Parliament for putting in water into the concurrent list in view of multiple un-resolvable water disputes arising across the country including that of Cauvery dispute.  It is in view of this that the government is contemplating to do the needful so that the scarce water resources are managed well for drinking and other such purposes”, said Mr. Kundu.

He, however, did not specify the time limit to accomplish the intended job barring emphasizing that the Ministry of Water Resources has begun to work on it in consultation with other relevant stakeholders.

On the waste water management policy, Mr. Kundu said that work on it is progressing and not only this legislation would be introduced in the Parliament shortly but also the government of the day would make amendments in five Acts relating to water for which the Ministry has Cabinet approval and include Inter-State Water Dispute Act, National Water Framework Law, Model Ground Water Act and River Basin Management Act.

Earlier speaking on the occasion Additional Secretary & Director General, National Mission for Clean Ganga, Ministry of Water Resources, River Development and Ganga Rejuvenation, Mr. U P Singh also emphasized the need to reform India’s water sector, pointing out that reforms though have touched many a sector, its time now that India’s water properties go in for similar initiative.

Chairman, Central Water Commission, Mr. G S Jha in his observations laid emphasis on mapping the ground resources of water for their better utilization and water dispensation.

Among others who participated in the Conference consisted of Senior, Vice President, PHD Chamber, Mr. Anil Khaitan; Chairman, Water & Solid Waste Management Committee, PHD Chamber, Mr. Varun Gupta and Director, PHD Chamber, Dr. Ranjeet Mehta.

IIP growth at 5.7% in November 2016 inspiring: PHD Chamber

IIP growth rate at 5.7% in the month of November 2016 is inspiring and we look forward to the continuation of the momentum in the coming months too, said Mr. Gopal Jiwarajka, President, PHD Chamber of Commerce and Industry.

Despite the process of demonetization, growth at 9.8% in the durable consumer goods segment is encouraging. The growth in manufacturing sector at 5.5% is an indicative of steady industrial activity and reflecting the visible effect of various reform measures undertaken by the Government, said Mr. Jiwarajka.

Growth in capital goods at 15% envisages the uptick in investment activity and we can expect the investment regime to pick up in the coming months too, he said

The continuation of the reform measures would pave the way for a significant rebound in the industrial activity and overall growth of the economy, said Mr. Gopal Jiwarajka.

PHD Chamber organizing India business partnership summit at Bahrain on 7th February 2017

PHD Chamber of Commerce and Industry is mounting a high level business delegation away to Bahrain to organize a “India Business Partnership Summit” slated for 7th of February, the basic objective of which is to further cement the trade and economic ties between India and Bahrain in the emerging business scenario.

The Summit is coinciding  with two-days Gulf Industry Fair between 7th & 9th February, which is scheduled to be inaugurated by Prince Khalifa Bin Salman Al Khalifa, Prime Minister of Kingdom of Bahrain.

The delegation to be led by Senior Vice President of the PHD Chamber, Mr. Anil Khaitan will have representation of around 25 to 30 Indian companies, having diverse business interests with multiple products and services is likely to have intense and protected discussions and parleys with their counterparts at India Business Partnership Summit, said Mr. Khaitan in a press statement issued here.

Some of the key business sectors that would have representation in the delegation, consists of sectors such as energy including solar, real estate, financial services, venture capital funds, logistics, ports and maritime, startups, aluminium, manufacturing, industrial metals (steel and alloys) and academic and research bodies.

Chairman, Housing and Urban Development Committee, PHD Chamber, Mr. Manish Aggarwal would be the deputy leader of the delegation, however, pointed out that the real estate and construction sector which is growing leaps and bound in India particularly with emphasis on ‘Housing for All’ could attract partnership from Bahrain for smart cities in India.

Mr. Khaitan further emphasized that it is for the first time that such a diverse business delegation is being mounted by the PHD Chamber to a country, with which variety of business and economic relations could be carved out for mutual gains as also spur up two-way economic and bilateral trade, the potential of which is so large as to be realized sooner than anticipated.

The Chamber holds that this unique summit which is happening for the first time also aims to combine the strengths of Bahrain and GCC countries with the vibrancy & scale of India to discuss new ways of cooperation between Industries and to further build partnerships for mutual business cooperation.

India and Bahrain enjoy excellent bilateral relations characterized by cordial political, economic and cultural contacts. The upward trend demonstrated in the latest trade figures surpassed one billion US dollars. The recent resurgence in trade volume, interestingly, is based on non-oil sector. Financial services, real estate, plastics, and automotive components are major contributors to the current uptrend. Key initiatives such as opening doors to FDI, 100 Smart Cities, Make in India, Digital India, Oil & Gas sectors are critical to boost India’s efforts to revitalize the economy. These initiatives have generated much interest from Bahrain companies seeking opportunities in India & Indian companies exploring partnerships with Bahrain companies.

Tendering for 2,300 MW of Solar Energy in offing with emphasis for domestic content in it : Solar Energy Corporation of India

Solar Energy Corporation of India has signed Power Purchase Agreements (PPAs) with various stakeholders to an extent of 3,200 mw of solar power and would shortly finalize and float tenders for putting up of solar power projects with a total additional capacity of 2,300 mw to generate solar energy in next few years, according to its MD & Director Solar, Dr. Ashvini Kumar.

The corporation is committed to finalize 5,500 mw of solar energy in next few years for which PPAs to produce 3,200 mw are already in place and tendering process for remaining 2,300 mw of solar power projects are at various stages of implementation, clarified Dr. Kumar emphasizing that his corporation has fixed up a particular percentage for domestic content in these proposed 5,500 mw of solar energy to spur up ‘Make in India’.

Addressing a Conference on Roadmap to Achieve 175 GW Renewable Energy by 2022 under aegis of PHD Chamber of Commerce and Industry here today, Dr. Kumar also disclosed that tendering for 100 mw of roof top solar power has already been approved for government buildings as a separate package by the Ministry of New and Renewable Energy.

“Following encouragement from the government to spur up and promote Make in India, the solar power corporation has been specifying in its tendering documents a domestic content in solar power plants to also ensure level playing field for indigenous developers of such projects”, said Dr. Kumar.

According to him, Tamil Nadu has taken a lead in putting up solar power projects to the total capacity of 1,590 mw until now followed by 1,370 mw and 1,158 mw Rajasthan and Gujarat respectively whereas Andhra has succeeded in creating a substantial solar capacity in its geographical landscape.

VC&MD, New & Renewable Energy Development Corporation of AP, Mr. M Kamalakar Babu who also was present on the occasion, however, informed that a world standard energy university is going to come up in the State for which a draft bill would be produced in the State Assembly in its Budget Session.

According to him, Andhra is one state which has already committed to produce 10 per cent of the total solar capacities of non-conventional power as is being visualized under the Prime Minister’s favourite project which has been encouraging production of clean and green energy.

Among others who were present at the Conference comprised Senior Vice President, PHD Chamber, Mr. Anil Khaitan; Senior Vice President & Co-Head Corporate Sector Ratings, ICRA, Mr. Sabyasachi Majumdar; Co-Chairman, Renewable Energy Committee, PHD Chamber, Mr. Vijay Kumar Goel and its Director, Dr. Ranjeet Mehta.

Mixed Response to Demonetization: PHD Chamber Survey

While releasing the survey on demonetisation to remonetisation process, Mr. Gopal Jiwarajka, President, PHD Chamber said that there is a mixed response from the economists, businesses and people.

Majority of the economists (81% Respondents) have cited a significant impact on India's economic growth in the shorter term but the benefits of demonetization will help in sustaining economic growth in the longer term.

Survey of economists, businesses and people on a structured questionnaire was undertaken by the PHD Research Bureau of PHD Chamber of Commerce and Industry during the month of December 2016.

The survey got responses from more than 50 economists and analysts, 700 business firms and 2000 people.

In the business segment, 73% respondents are facing huge cash crunch due to demonetization as they are unable to fulfill their daily cash requirements to pay wages to daily wagers and contractual workforce.

Production process not only in the informal sector but also in the formal sector has been impacted directly or indirectly, said the survey.

Cash driven segments such as fruits and vegetable markets, horticulture and floriculture, agricultural and food processing, construction activities, among others have been impacted.

But the immediate effect would probably be short-lived and the long term effect will drive the Indian economy to new areas of growth in the coming times, said the survey study

Though the contraction in GDP cannot be ruled out due to fall in economic activity, growth in demand will start gaining momentum once the economy moves out of the transition stage of demonetization to remonetisation, said Mr. Gopal  Jiwarajka

It is expected that removal of black money from the system would create a good scope for reduction in interest rates via-a-vis lower inflationary expectations and reduce the incidence of direct taxation, he said

While assessing the impact on people, 92% Respondents said that the major impact of currency crunch is seen on daily needs of the people such as purchase of eatables, dairy products and other necessities, according to the survey

58% Respondents are facing high level of difficulty in fulfilling their day to day activities. 89% Respondents reported unavailability of cash at banks and ATMs as a major hurdle in withdrawing/depositing cash from the bank/ATMs, said the survey study.

There is a need of setting up of digital literacy booths outside banks majorly in rural regions for spreading digital literacy across all sections of the nation, said Mr. Jiwarajka

Government should incentivize RTGS (Real Time Gross Settlement) and NEFT (National Electronic Funds Transfer) under the ambit of digital transfers so that more and more people adopt the available facility and are less dependent on cash transactions.

The threshold limit of Rs. 2,00, 000 for transactions under the RTGS and Rs. 50,000 for transfers under NEFT should be exempted from the service tax.

Also, removal of service tax charged while making payments through credit/ debit card or any other payment card up to Rs. 2,000 in a single transaction is a good start for the transformation of cash transactions to the digital transfers, however, the limit could be revised to Rs. 10,000.

Government should print more and smaller denominations such as Rs. 50, 100 and Rs. 500 notes so that there should be sufficient circulation of money in the market. Government needs to ensure that the sufficient quantity of money is being transported to the banks and ATMs in both rural and urban areas on time, he said

Facility of mobile ATMs in the Government, public sector and private corporate sector offices having more than 25 employees in their establishments, he added

Cash driven sectors such as constriction sector and Small and Micro Units (SMEs) should be facilitated by expanded cash limits for the payment of salaries of their daily wage and contractual workers, said Mr. Gopal jiwarajka

There is a need for low interest rates to propel a boom in Housing and Real Estate. This will substantially increase Employment as well as contribute towards GDP growth, he said

Invest in Germany with great deal of homework : PHD Chamber

Seminar on Doing Business in Germany-Potentials and Challenges jointly organized by the PHD Chamber of Commerce and Industry and Konrad Adenauer Stiftung (KAS) here on Friday felt that two way trade between India and Germany needs to be expanded to its full potential which yet to be realized.

The Seminar also recommended that a great deal of homework is required to explore the real potential of Germany especially when Indian corporates are looking to park their surpluses in Germany as it is a country which make sure that compliances of its laws by any foreign investors are strictly adhere to under all circumstances.

Therefore, foreign investors need intense collaboration with those that understand and comprehend the German laws before foreign investors intend to commit their investments in its land.

The perspective areas in which foreigners can look up to investing in Germany consists of automobile, IT enable services, digital economy and disposal of nuclear waste with cutting edge technology as Germans have decided to discard all its nuclear fed power plants in view of its commitment to environment and green energy.

The experts that expressed the aforesaid recommendations for investing in Germany comprised Dr. Caroline Silva-Garbade, Economic Counsellor, Embassy of Germany; Mr. Markus Hoffmann von Wolffersdorff, Rechtsanwalt Mediator, Dorschner & Hoffmann Rechtsanwalte; Ms. Arashveer Brar, Partner, Maheshwari & Co.; Chairman and Co-Chairman, Law & Arbitration Committee, PHD Chamber, Mr. Vipul Maheshwari and Mr. Ravi Singhania along with Chamber’s Consultant, Mr. R K Joshi.

Support to social sector along with interest rate cut by banks a welcome beginning: PHD Chamber

While complementing the recent reform measures announced by Hon’ble Prime Minister Shri Narendra Modi Ji, the President, PHD Chamber of Commerce and Industry, Mr. Gopal Jiwarajka,  said that  the focus to facilitate the social sector followed by interest rate cut by the leading banks is inspiring and would go a long way to foster all-inclusive development of the country.

Interest rate reduced by the banking sector is a good move to rationalize the cost of credit in the economy.

Reforms on facilitation to MSMEs, farmers, women and senior citizens are inspiring; facilitation to housing for poor under the Pradhan Mantri Awaas Yojana is a great initiative, said Mr. Gopal Jiwarajka.

It will enhance construction activity in the economy and create lots of employment opportunities for skilled, semi skilled and unskilled workforce, said Mr. Jiwarajka.

Facilitation of RuPay debit cards for farmers owning Kisan Credit Cards would benefit the farmers in terms of reduced hassles, said Mr. Jiwarajka

Credit guarantee for the interest of small and medium businesses will reduce the financial problems of the MSMEs, boost up their growth scenarios and create  employment opportunities in the MSME sector.

Raising the credit limit for small industry from 20 per cent of turnover to 25 per cent, increasing working capital loans from 20 per cent of turnover to 30 per cent for enterprises that transact digitally  is a great relief for small businesses said Mr. Gopal Jiwarajka.

The income of businesses with turnover of up to Rs 2 crores to be calculated at 6% from 8% under the digital transactions is a great starting to facilitate the MSMEs, he said

Financial support to  pregnant women is a good initiative for child and women welfare.

Provisions for senior citizens with a fixed rate of interest at 8 per cent for a period of 10 years on deposits upto 7.5 lakh rupees would strengthen the financial security of elderly and promote long term savings in the economy.  

We look forward to the continuation of dynamic policy environment and more reforms to come in the areas of ease of doing business and financial problems of the businesses, said Mr. Gopal Jiwarajka.