India Inc. Capex add up to Rs. 10,097,472 crore in April-Sept.

2010: ASSOCHAM
New Delhi, December 17, 2010: India is set to become a potential goldmine on the back of investment announcements in the 20 major states that surged during April-September (H1) 2010 to Rs. 10,097,472 crore. The total outflow of the capex add up is 26.7 per cent higher as compared to the corresponding period of the previous year (2009-10), according to the analysis of ASSOCHAM study on the corporate investment pattern. As per the Assocham Investment Meter (AIM) assessment report for corporate investments across states and sectors, total investment plans of India Inc. increased significantly from Rs. 7,971,464 crore in 2009 to Rs. 10,097,472 crore during the period of April-September, 2010. Among the 20 major states Gujarat, Maharashtra and Orissa carved out a majority share of 13.2 per cent, 11.4 per cent and 11.2 per cent respectively. The total investment intentions tracked in the AIM study reflects encouraging signs of pick up in investments and acceleration in the overall growth rate. The factors such as delay in infrastructure expansion plans, hurdles in legal procedures and political instability have adversely affected the implementation of these investment projects across the states, said Mr. D.S. Rawat, Secretary General, ASSOCHAM. In this context the Secretary General of Assocham, urged the central and state governments to take these issues on priority basis in order to realize the social and economic benefits of the investments through timely implementation of the line up projects. Among the top investment attracting states, Gujarat remains on the top registering the highest share of 13.2 per cent in domestic investment plans during the period of April-September, 2010. The state witnessed Rs. 1,330,743 crore worth of capex plans which are 17.3 per cent higher as compared to the total investment realized in the state during the past year. Also, the state attracted majority of investment plans in the power, manufacturing and services sectors. Similarly, Maharashtra stood at second position registering growth of 19.3 per cent (Y-o-Y) and 13.2 per cent share of the total investments made during April-September 2010-11. The state attracted whopping investments plans of Rs. 1,154,197 crore during the said period. The Services and Real Estate were the prominent among the sectors that attracted majority share of the investments. The availability of rich mineral resources such as coal and iron ore along with cheap availability of manpower helped Orissa to rank amongst the top three states in attracting corporate investments. The state was ranked third on investment radar with total planned investments stood at Rs. 1,134,716 crore during the H1 period of FY11. The state recorded a hike of about 20.0 per cent in overall investments over the previous year. Among the sectors Manufacturing and Power companies have received the major proportion of the investments. Karnataka and Andhra Pradesh stood at fourth and fifth position by attracting investment plans worth Rs. 915,060 crore and Rs. 866,776 crore respectively during in H1 of 2010. The overall investment contribution in Karnataka during the April-September of FY11 stood at 9.1 per cent. However, the state has seen a hike of 73.8 per cent in the investments over the same period of the previous fiscal. The Manufacturing accounted as the prominent sector among the other investment attracting sectors in the state were steel, real estate and textiles. On the other hand, Andhra Pradesh which carved the fifth place and attracted an investments of Rs. 866,776 crore. In the current fiscal, during the same period the states share to total investment was 8.6 per cent, with top sectors being power, manufacturing and agriculture & allied services. In terms of sectoral analysis, the Assocham Study shows that with increasing energy requirements of the rapidly growing Indian economy, for the investors Power sector figures out as a nest egg to invest in. The sector witnessed bulk of the investments of worth Rs. 3,643,883 crore with a share of 35.4 per cent in the overall investments plans across the country during April-September of current fiscal. During the period Manufacturing sector have also been favored by the industrialists for investment. The sector registered a growth of 26.3 per cent while attracting the total investments of Rs. 2,704,211 crore. Followed by the Manufacturing sector, Services sector emerged as the third priority sector which attracted proposed investments of Rs. 2,162,950 crore, contributing 21.0 per cent in overall investments made in the period of FY11. Other sectors which recorded high flowing corporate investments during April-September of 2010-11 were; Real Estate attracted Rs. 1,172,823 crore (11.4 per cent), Mining Rs. 308,716 crore (3.0 per cent) and Irrigation Rs. 301,350 crore (2.9 per cent). Top

We Will Get A Corporate and People Friendly Bill - Salman Khurshid

New Delhi, December 17, 2010: Views of many stake holders will be taken into consideration including that of the various committees. We will introduce a corporate and people friendly bill in the next budget session, said Mr. Salman Khurshid - Minister of State (Independent Charge) for Corporate Affairs and Minority Affairs today at the 6th CII Corporate Governance Summit. The summit was organized under the aegis of the India Corporate Week 2010 being commemorated by the Ministry of Corporate Affairs and was well attended by all captains of Indian industry. Mr. Khurshid, reiterated Prime Minister Dr Manmohan Singhs call to trust when he said, Government must trust corporates and corporates need to trust government. You cannot get a society that moves fast and grows unless you have mutual trust. Sadly as it stands, trust is lacking. You have to provide for an honest mistake if you trust each other. Defaults must be accounted for in a transparent manner, but somewhere there must be a clear dividing line between honest mistake and a default. Talking about the importance of the corporate sector in the economy, the Minister said, You got to convert something that is seemingly bad, into something good. That is what corporate governance is all about and the Ministry is there to help. Everything that you use in your life comes from the corporate sector, so to be cynical about it is to be hypocritical and is a great disservice to the country. Mr. R Bandyopadhyay, Secretary, Ministry of Corporate Affairs, Government of India, outlined the objective of his ministry when he said, We had taken two mottos of working. First was that we must not do anything that will hinder the growth of the corporate sector. Secondly, growth has to be inclusive. Most people believe that corporate governance is only for the growth of 2 to 4% of the nation. There is a need to include more and more so that they have a stake in the growth of the corporate sector. Mr. Rahul Bajaj, Chairman, CII National Council on Corporate Governance & Past President, CII., argued against excessive regulation and advocated more voluntary practices. Most of the best corporate governance practices that you see are voluntary. Also India has one of the best global standards when it comes to norms, guidelines and standards in many aspects of corporate governance. But the proposed regulatory regime as it stands now and the Companies Bill if sent to parliament with the recommendations of the standing committee would seriously encumber management of business. Speaking earlier, Mr Chandrajit Banerjee, Director General, CII, lauded the initiative of the Ministry to organize the India Corporate Week when he said, Through the initiative the ministry would not only provide positive reinforcement to the contribution of the corporate sector in the growth of the economy but also support and acknowledge sustainability of businesses as a crucial factor for that growth. The summit was a key event of the India Corporate Week 2010. Top

Advance Tax Collection of Top 100 Indian corporates is remarkable and good- CBDT Chairman
New Delhi, December 16, 2010: Chairman Central Board of Direct Tax (CBDT) Mr. S S N Moorthy while interacting in ASSOCHAM National conference on Recent Developments in Taxation Regime today, said quarter to quarter basis there has been 20% jump in the tax collection and the growth is good, he noted with satisfaction and added year to year basis it is growing at 18%. However, total number of companies among top 100 is not available at the moment but would be made available within three days, added Mr. Moorthy. On the Goods and Service Tax (GST) front Mr. Moorthy said centre and states have been asked to act jointly and to implement the final draft the ministry has sought suggestions comments and recommendations from industry chambers and interested parties, he added. He underlined there is no move for any exemption but constitutional amendments is required. He announced the government constituted Regulatory GST Council comprise of Finance Minister as Chairman and Members of Finance Ministry as members of this Council to look into the matters pertaining to this GST subjected to all rates to be approved as final. Further he disclosed a judge from the Supreme Court will head the Disputes Resolution Council that will hear GST related cases and till now some litigations have been sorted out and some are under negotiations and are under advance stage of finalization, he disclosed. Mr. Moorthy further said Model Bill is being drafted named as Central GST Bill at the centre level and State GST Bill at the state level and will become Act soon. He also outlined the predicaments being faced under GST regime and said the Bill is impossible to be implemented in letter and spirit unless there is robust IT mechanism to support this. At the macro level concern of tax payers a major issue has been addressed secondly we have put in place many of the provisions relating to salary house property interests and other resources in very unambiguous manner so that these people need not go to the rules or schedules but it is for business people who have got complexity of accounts, complexity of income matters who may have to refer to schedules the rules and etc. but as for as common tax payer is concerned we think we are reading the bare act relating to salary interest house property other sources will be the major break through. Further on DTC he said we have come a long way that will be accepted by all the business community. On applicability of the provisions of DTC we will definitely do some reforms and we will look into it, he assured the chamber. But he underlined on international taxation front which is of two fold- no. 1 the revenue should be protected and no. 2 normal honest tax payer should be safeguarded. There are two provisions- GAR and subsidy (CFC) which will take care of interest of revenue and save our rules and APA which will protect the honest assesses who want to bring to tax their normal income and do weightage, he added. References have been made through wealth tax, beaming provisions and cascading effects coming out of CFC rules and said we will take care of them, he noted. The DTC is now before the Parliamentary committee and surely expected the chamber will be giving its recommendations and suggestions with comments and then only after incorporating all these suggestions and recommendations and deliberations the actual draft form will come with the removal of lacunae he added. He exhorted we have to protect the standards of Indian tax regime and we have to move with international best practices but every country has country has its own socio economic factors and every country has its own geographical features income patterns, he noted. In his address Mr. S Dutt Mazumdar Chairman- CBEC highlighted the issues pertaining to tax collection and tax payments, they are simplified procedures, and list of administratively cumbersome procedures, along with some benefits stipulated in the reforms which the government is passing on to the tax payers. And another issue is how the government is making the life of the 3 crore tax payers in and administratively how they are being placed. By and large all tax payers are complying the statutorily and may be some exception, he added. In case of any issue that come up for interpretation mechanism has to drafted within the board within that authority that how quickly it will be redressed. He outlines the nitty gritty of New Economic Policy of 1991 and dubbed this year as watershed in the history of Indirect Tax reforms apart from liberalization of Imports revaluation of imports and some other policy reforms there was tremendous reforms in the indirect taxation to make the revenue

collection more efficient and to improve revenue productivity. He also spelt out in 1991 the government had decided to have moderate rates of tax. He said in 1991 peak customs duty rate was around 300% there is now as package 2007-08 it is now only 10% for non agricultural items. Then for raw materials and intermediate products it is even lower than 10%. On the central excise we had the peak rate of 110% and in 2008-09 we brought it down to 14% and right now it is 10%. And so with this moderation of tax we have seen there has been tax bouncing. Because simultaneously what we did we broaden the tax base. And to encourage voluntary compliance and complimented and thanked the cooperation from trade and industry to have responded promptly and responsibly and the tax collection speaks volumes about it, he added. Mr. Ved Jain, Chairman of Direct tax Committee of ASSOCHAM said this nine decade old premier chamber is working closely with our various departments of government and in particular with ministry of finance and that too CBDT. We have been playing very active role as chamber in taking the issues which concerns the industry and taking care of revenues and also required for running the country for meeting infrastructure requirement. Top

India- Indonesia need to diversify into new areas to increase bilateral trade: H E Ms Mari Elka Pangestu
New Delhi, December 16, 2010: India and Indonesia need to have a more diversified basket of goods and services to take the economic partnership between both the countries ahead, said, H E Ms Mari Elka Pangestu, Minister of Trade, Republic of Indonesia. Speaking at a CII organized business meeting of Indian businessmen with Indonesian business delegation, she added, We also need to set up more institutional mechanisms for Business to Business and Business to Government negotiations. The minister was very keen to increase trade and have improved collaboration. India-Indonesia trade has already touched US $ 10 Billion during January-October 2010 and may cross US $12 Billon by the year end. This target is likely to double to US $24 Billion in the coming year added the Minister. There is an exponential growth in interconnectivity in Indonesia and this is a huge potential market for Indian investors in this sector added Ms Pangestu. H E Mr. Andi M Ghalib, Indonesian Ambassador, said that he was confident that within the next seven years, India will be the No. 1 investor in Indonesia as per the vision of Mr. Kamal Nath, Minister, GOI. Both India and Indonesia share strong economic fundamentals which will create fresh horizons in economic partnerships, said Mr. Shubhendu Amitabh, Senior President, The Aditya Birla Group. He added that the India-ASEAN FTA and the India-Indonesian FTA offer new areas of cooperation and emerging new opportunities. The new areas of business opportunities which can be explored are in ship building/repair, restaurant, recreation and trading. Other businesses include electronic component, machinery/processing, IT, creative industry, mining, agro-based, automobile, pharmaceutical, finance, oil and gas mining supporting services, rubber goods, garments, housing, property development, business consultancy and management, loading and uploading services. Top

India and China partners in Progress and Co-operation: Chinese Premier Wen Jiabao
New Delhi, December 15, 2010: India and China are partners in economic progress and co-operation, and the two countries can gain substantially by leveraging on each others strengths, declared H.E. Wen Jiabao, Premier of the Peoples Republic of China. Speaking at the India China Business Cooperation Summit, organized by the Confederation of Indian Industry (CII), here today, he said I do not agree with the notion that China and India are competitors, instead they are partners in co-operation.

Elaborating on the greater role the two countries are playing in the World affairs, Premier Wen Jiabao said India and China can learn from each other in dealing with the Rest of the World, and added that the two can co-operate in reforming various multilateral organizations and also successfully concluding the stalled Doha Round of negotiations of the World Trade Organisation (WTO).

Encouraging the business communities of the two countries to play a greater role in deepening the bilateral ties, Premier Wen Jiabao expressed his commitment towards greater business co-operation and asked the business community to seize various opportunities that the rise of two great civilizations is offering.

Premier Wen Jaibao also outlined a four-pronged strategy for deepening co-operation between India and China. Firstly, he said the current levels of bilateral trade are far below the true potential and expressed the need to explore full opportunities to achieve greater levels of bilateral trade. He also called for launching the free trade agreement negotiations between India and China. Second, he said, creating a sound investment environment in the two countries would further deepen the partnership and called for exploring the possibility of signing a two-way investment promotion agreement. Third, he expressed the need for expanding the areas of co-operation and increasing the number of direct flights between two countries. Finally, he called for greater business to business exchange to promote business co-operation and the setting up of India China CEOs Forum.

Welcoming Premier Wen Jiabao, Mr. Anand Sharma, Minister of Commerce and Industry, Government of India, said India and China are on a journey of friendship and co-operation and added that the importance of relationship between the two countries would increase significantly in coming decades. He also talked about the presence of common interests of the two countries in deepening the co-operation. Mr. Sharma expressed hope that the Prime Minister Manmohan Singh and Premier Wen Jiabao would set up an even higher two-way trade target, which already stood at US$ 60 billion.

Also speaking at the session, Mr. Gao Hucheng, China International Trade Representative and Vice Minister of Commerce, attributed close bilateral relationship between the countries to greater business to business exchange and expressed commitment to attain closer business ties.

Mr. Hari S Bhartia, President, Confederation of Indian Industry, in his welcome address said the visit of the Chinese Premier coincided with the 60th establishment of diplomatic ties between India and China and therefore is of special significance in strengthening bilateral relationship between the two countries. He informed that China was Indias largest and fastest growing partner and expressed the need to make India-China relationship a win-win partnership. Mr. Bhartia also called for addressing the challenge of Indias huge trade deficit vis--vis China, stating that it was unsustainable. Top

Forthcoming Defence Production Policy Aims at Promoting Synergy between Public and Private Sectors: Raksha Mantri
New Delhi, December 15, 2010: The Defence Production Policy is under formulation which will enable more effective synergy between public and private sectors said Raksha Mantri, while delivering the Inaugural Address during the 5th International Conference on Energizing Indian Aerospace Industry: Achievements and Future Strategies organised by Confederation of Indian Industry and Centre for Air Power Studies (CAPS) at Dr Kothari

Auditorium, DRDO Bhavan, New Delhi. Raksha Mantra also said that India is fast emerging as a favourite global destination as far as Maintenance, Repair and Overhaul (MRO) sector is concerned. He emphasized that several initiatives have been taken to energize the Indian defense industrial base particularly Aerospace sector. Defence Production Procedures are being revised annually to minimize the anomalies. Raksha Mantri also said that without strengthening our indigenous capabilities we cannot achieve self-reliance. Chief of the Air Staff, Air Chief Marshal PV Naik said that no country can be recognized as a reckonable power by being permanently at the mercy of imported arms and equipments to meet its aspirations and agenda. Our progress in the technological prowess is not in consonance with our objective in achieving overall self-reliance. Therefore, dedicated R&D and Indigenization hold the key in our efforts to achieve self-reliance. The concerned agencies must understand the criticality of self-reliance in aerospace industry. About the induction of Indian built aircrafts, Air Chief Marshal Naik said that Indian Air Force would induct Light Combat Aircraft by the mid of the next year. Air Chief Marshal also mentioned that government should create conducive environment for private sector through appropriate policies so that critical technologies can be absorbed and the objective of self-reliance be achieved. Satish K Kaura, Co-chairman CII National Defence Council and Chairman Samtel Group said that Offsets are being viewed upon as a huge opportunity for Indian industry. This is the right time for small and medium sized companies to prepare themselves to offer aerospace technologies to a plethora of new players including aerospace component manufacturers and design houses. He emphasised that the Indian aviation industry is one of the fastest growing aviation industries in the world. Chandrajit Banerjee, Director General CII said that CII works with the overall objective of promoting the indigenous Defence Industry. It is now being increasingly realized that the private industry has a larger role to play in realizing the long cherished goal of 70 percent indigenisation. He further said that we look forward to a larger participation of the Indian Industry, particularly private industry, in the aersopace sector. Air Commodore Jasjit Singh, Director, Centre for Air Power Studies said that we are hopeful that future air warships will not only be built in India but also designed in India. He also said that criteria for offsets should be based on the realties. Top

Fuel Security and Future of the Indian Power Market: Building New Perspectives
New Delhi, December 14, 2010: India needs investment of over USD 1 trillion for adding power generation capacity over the next 20 years. Minister of State for Power, Mr. Bharatsinh Solanki, speaking at the Round Table Session on Indian Power Markets organized by Confederation of Indian Industry (CII) said that power requirement for 12th Plan is going to be very high and good quality infrastructure is needed to support the power supply from generating stations that are located at remote areas. He also announced that Government of India has recently constituted 6 joint ventures with private power companies. Mr. B K Chaturvedi, Member (Energy), Planning Commission, emphasized on encouraging involvement of private sector in power sector development and making the whole process more inclusive. For 12th Plan private sector is expected to contribute 50% in development of capacity addition. He also addressed issues like high AT&C losses, weak regulatory structuring, implementation bottlenecks regarding Open Access, fuel securing and pricing, and new capacity addition. Mr. Ashok Lavasa, Additional Secretary, Ministry of Power, said that regulating Power sector is more complex thats why it did not see a steady growth as was noticed in other sectors. Major thrust in capacity addition was at the right place. Mr. Jaidit Singh Brar, Partner, McKinsey & Company, mentioned that after 2017 India would be the only economy that would be securely growing and thus need to grow at fast pace, and requires a 7 fold scale up in rate of capacity addition. Investment of over USD 1 trillion is required for this scale of capacity addition in power generation. He emphasized on creating valuable markets by addressing viability and market risks, accelerate capacity addition, securing fuel supply and improving efficiency. He propounded for integrated approach to address the challenges of market failures. Mr. Sunil Wadhwa, MD, NDPL, said that for reducing demand and supply gaps there is a need to reduce AT&C losses and implement energy efficiency measures. This calls for pushing distribution reforms further to create a win-win situation for all the stakeholders. Government needs to work on making discoms financially viable and push for reforms in tariff restructuring. All the other distinguished speakers like Mr. R S Sharma, MD, Jindal Power Ltd; Dr. Harish Ahuja, JS, Govt. of Delhi; Mr. S K Soonee, CEO, POSOCO; Mr. Prabir Neogi, President, ICML; and, Mr. Sashi Shekhar, Director, PTC India, also shared their expert views on bottlenecks in the power sector, role of merchant power markets, and competitive bidding. Top

Logistics industry must create additional capacity to meet rising demand: G K Vasan
New Delhi, December 13, 2010: The logistics industry is called upon to create adequate capacity to meet the rising demand for multi-modal freight movement fuelled by rapid national GDP growth. Stating this in his special address at the two-day Logistics Summit 2010 on Building Indias Logistics Infrastructure Investment, Operation, Growth, organised by CII Institute of Logistics in New Delhi, Mr G K Vasan, Minister for Shipping, Government of India, said the key challenges for the industry are the infrastructural bottlenecks and the high logistics cost which at 13-14% of GDP is way above the level of 7-8% of GDP in the developed countries. Mr Vasan said the Government has taken several key measures to support the growth of the logistics infrastructure, such as, opening up the industry to 100% FDI, removal of Central Sales Tax (CST), introduction of Value Added Tax (VAT), promotion of multi-modal transportation network, and public private partnerships (PPP). Initiatives such as the National Highway Development Project, inter-connectivity of the 12 major ports, enhancing the port handling capacities, eastern and western rail freight corridor that adds up to 2,700 km rail lines, higher rail freight handling capacities, and the Dedicated Delhi-Mumbai Corridor have also catalysed the growth of the logistics industry, he said. Mr Vasan said the Shipping Trade Practices Bill when legislated will usher in a more transparent and efficient regime for the shipping industry. He said the Government is making every effort to facilitate higher investments in the logistics infrastructure development. On this occasion, CII Institute of Logistics and Global Coalition for Efficient Logistics (GECL) signed a Memorandum of Understanding (MoU), whereby GECL will partner the Indian logistics industry in the adoption of digital soft infrastructure. Mr Sridhar. Vice Chairman, CII Institute of Logistics and Capt. Samuel Salloum, Co-Chairman, GECL, signed the MoU. The minister also released a report on Building Indias Logistics Infrastructure, prepared by KPMG. Earlier, Mr Cyrus Guzder, Chairman, CII National Logistics Council & CMD, AFL Pvt Ltd, said in his address that infrastructural bottlenecks and process lags in logistics are costing the national economy

around $50 billion. On the infrastructure side, Mr Guzder said that the rail infrastructure is not properly aligned with the new production and distribution centres. As a result, there is excess dependence on road infrastructure for freight movement. He said that while the Government is developing 5-7 expressways of 100-300 km, the current need is for 20 expressways. There is additional need for 750 new last mile road links and a considerable number of last mile rail links. Multi-modal logistics parks also need to be developed in tandem with the growing demand. He expressed hope that the formation of the Central Logistics Council will help the industry in bridging the infrastructure gaps. Dr Mark Drabenstott, Secretary General, GECL, in his address said that the MoU between CII Institute of Logistics and GECL will set the ground for the Indian logistics industry to adopt the latest digital platform for driving global trade and commerce. Tools like this are expected to help reduce trade costs by 30% and business operations costs by 15%. Dr Drabenstott pointed out that the digital infrastructure will be highly beneficial to the small and medium enterprises (SMEs) in growing their global market reach. This will also have a major bearing on Indias efforts to rebalance its external trade. Mr Manish Saigal, Partner, KPMG, in his address said that the Indian logistics industry is close to an inflexion point and the need of the hour is world class, scalable capacity. Currently, supply is severely lagging demand. To address this, mobilisation of financial resources attains critical importance. Mr Saigal said that the industry consolidation will support the growth of a hub-and-spoke model, which in turn will require huge financial resources. However, the key challenges are that currently the logistics industry is highly fragmented (the top 10 companies account for a mere 2% of industry), limited scale of outsourcing, and large government ownership of assets (50-60% on the whole). Sub-scale operations and sub-quality services need to be addressed, he said, adding that areas like coastal and inland waterways infrastructure demand the greater attention of the policy makers. Looking ahead, he said the opportunity lies in promoting new segments, augmenting the existing segments and changing the paradigm in the mature segments. Mr B Sridhar, Chairman, Logistics Sunmit 2010 & Vice Chairman, CII Institute of Logistics & Director, Bengal Tiger Line (India) Pvt Ltd, in his opening remarks said that the CII Institute of Logistics is focusing attention on skills development for the industry, promotion of low carbon and green supply chain, and development of soft infrastructure for logistics industry. On the skills development side, he said that a certification programme for supply chain professionals is being developed. Mr Vineet Aggarwal, Member, CII National Logistics Council & Executive Director, Transport Corporation of India, proposed the vote of thanks and concluded the inaugural session of the two-day conference. Top

Need to practice good corporate governance: no tradeoff between doing well and doing good - Deepak Parekh
New Delhi, December 13, 2010: What is corporate governance and how does one make it more effective? These and many ideas were discussed today with Mr Deepak Parekh, Chairman, HDFC Limited, during an interactive session on Corporate Governance organized by the Confederation of Indian Industry (CII). Urging the need to walk the talk, Mr. Parekh said, What we need to do is practice governance, rather than just talk about it. There is no tradeoff between doing well and doing good. Nothing happens if you dont practice good governance. Theres a need to consider self regulating body over the government appointed ones like SEBI and others. Mr Parekh spoke extensively on the requirements for good corporate governance. Beginning with the role of the CEO, he said, The role and expectation from a new age CEO has changed. In todays post crisis world, companies prefer a person with sound strategic thinking rather than aggression - CEOs need to be more cerebral than competitive. The new CEO has also to be aware of the world, as he has to build a diverse global pool of people. Hence, the CEOs need has also changed, as they do not need yes men, but those who question him. Highlighting the importance of presentation of details to audit committees, he quoted the examples of banks and said, Banks see petty frauds everyday. But one has to report it to the RBI and discuss it with the audit committee. Whenever you write off anything it has to be reported to the audit committee and the Regulator. Touching upon the provisions proposed under the Companies Bill, he said, The government is working to put a limit on the tenure of independent directors to a set number of years. Just when a director is getting used to the working of the company and is most likely to contribute, he has to be changed by rule. The government has to understand that independence is more a matter of mindset, rather than time. On determining the compensation of independent directors, he advised a balanced approach. Its tricky, but many thoughts are circulating around. One suggestion could be to pay the non-executive director only at the end of his tenure, depending on his performance. About more power required by supervisory board for effective decision-making, he said, It is for corporates to grant more power to supervisory board. It has to be more self-imposed rather than be made into a law. Mr. Parekh recapitulated the imperatives for good corporate governance: scrutiny of stake holders, self imposed good corporate governance practices, shortening time for legislation change and revamp of rules, appointment of qualified people with deep industry experience as independent directors instead of people merely based on their reputation, effective whistle blower policies in companies with checks and balance in place for them to reach the board etc. Summing it up Mr. Parekh said, Good corporate governance is not about rules or compliance. It is not what you leave behind when you leave office. It is about your inner conscience that tells you the difference between what you have a right to do and what is right to do. Its principles are unchanging. It is about values but values have a value only if its value is valued. Mr Arun Nanda, Chairman, CII Western Region, earlier laid the ground for the session when he said, How can you distribute wealth if you dont create it. And business is the way to create it, but business has to be sustainable. You have to consider those who do not have enough and work towards including them in the growth story.

Mr. Richard Rekhy, Head of Advisory, KPMG said, Corporate governance has to be seen in the context of the civil society we live in. He laid out the DNA of good corporate governance underlined from a global KPMG survey, Good governance entails, succession planning in the family, an effective board to add value, clearly defined roles for board and management, constructive board meetings, robust strategic planning, focus on risk management, robust monitoring of business performance, management assurance management controls, IA and EA. The dynamic field of corporate governance needs constant scrutiny for it to stay relevant to the needs around. To discuss the latest trends on corporate governance and related issues, CII organizes the Governance Series a series of meetings, aimed to facilitate dissemination of the changing trends of corporate governance by way of holding interactive sessions with corporate leaders focusing on governance, accountability, transparency ethics, compliance and trust - fostering a culture of good governance. Top

No levy of dividend distribution tax on any company: ASSOCHAM

New Delhi, December 09, 2010: The ASSOCHAM in its pre-budget interaction with mandarins of finance ministry including Revenue Secretary urged the government not to levy dividend distribution tax when dividend is received by an Indian company is subsidiary of another company as it will remove cascading effect of dividend distribution tax (DDT). It was also highlighted significant issues that industry faces on both Direct and Indirect Taxes. Together with this issue ASSOCHAM also urged to do away with system of disallowance of half per cent of value of investment in rule 8D which is inequity and dubbed it too harsh to implement.

Other issues discussed with the ministry were tax payers whose tax deducted in large number of transactions should be allowed with the facility to pay additional advance tax based on previous years TDS and be given the certificate for receiving payments without deduction of tax as this would lower the administrative burden of verification and paper work, the apex body added. Further emphasis was made on creation of more branches of authority for ADVANCE RULLINNG be considered for providing certainty to the tax payers and preventing possible disputes, asked the ministry to extend this facility to the domestic companies.

On indirect tax segment the apex body expressed its concern for the Union Budget 2009 and 2010 the CNVET credit rules were amended to exclude cement, channels, CTD bars, TMT bar, and other items use for construction of factory shed building or rain foundation or making a structures for support of capital goods, from the definition of inputs accordingly CENVET credit is not available on these items, and ASSOCHAM suggested some recommendations to suitably amend or a notification or circular be issued to state that CENVET credit is eligible on all items used in relation to business activity.

Similarly on Central Excise provision that is providing for packaging and repackaging activity carried out in respect of the goods subsequent to manufacturing has been held to be a deemed manufacturing. ASSOCHAM has made recommendation to suitably make amendments in the current provisions to keep the activity of packaging and repackaging carried out by the retailers or wholesalers outside the provisions of central excise.

Further on the benefit of concessional CST rate over the purchase of capital goods be allowed for the service sector to enable significant reduction in the cost of operations for the service sector, to benefit the emerging retail sector. ASSOCHAM also made some recommendations that the facility of centralized registration for non-assesses not intending to claim any excise duty benefit be permitted to avoid the extra burden of the excise procedures on the non-assesses.

On the Service Tax segment ASSOCHAM urged the finance ministry with its recommendations and stressed that the Service tax on rentals impacting broadly the retail sector, be either exempted or alternatively some abatement be allowed to this sector, in order to reduce the cascading effect of service tax in the retail trading operations.

Further it was also stressed that Employees Stock Options Plan (ESOP) be linked to the time when cash flow is available to the employee, in the case where large number of tax deduction and option should include tax payers to pay required advance tax and obtain nill TDS certificate. Last but not least ASSOCHASM urged the finance ministry to do some thing to service providers to be able to purchase capital goods against C form especially in the field of infrastructure. Top

Government would need to take the first step to trigger rural broadband growth for transforming 70 crore lives by 2014
New Delhi, December 08, 2010: Confederation of Indian Industry (CII) released the Study Deployment Models and Required Investments for Rural Broadband Infrastructure in India, conducted by CII and Analysys Mason, here today. It estimates that a total investment of Rs 39,700 crores (USD 8.6 bn) is required to roll-out broadband network (core / middlemile and access infrastructure) in public private partnership to cover all 250,000 gram panchayats in India. This study intends to support policy makers and the regulator in formulating guidelines for providing broadband access (direct or shared) to a population of approximately 70 crores (via 21 crores connections) by 2014. The CII Study states that the broadband market in India is at a nascent stage with household penetration of 4%concentrated primarily in the top ten cities. One of the key reasons for this low penetration, especially in rural areas, is the unavailability of broadband infrastructure. Mr Sanjay Kapoor, Chairman, CII National Committee on Telecom and Broadband, and CEO, Bharti Airtel Ltd (India and South Asia) said that It is well established that every 10% increase in broadband penetration leads to 1.4% increase in GDP per-capita growth, thereby implying that broadband plays a multiplier effect in giving fillip to the economy. This Study helps identify the existing and required infrastructure for connecting 250,000 gram panchayats, while recommending deployment models relevant to India. Mr Chandrajit Banerjee, Director General, CII said that It has been witnessed that focused leadership and continual investment in national broadband infrastructure in various countries has been invaluable in deepening broadband penetration and continuing to help in maximize a countrys competitiveness. To achieve the same, we recommend creating an institutional framework for continuous interaction of industry and Government for providing the required focus on awareness and infrastructure creation. CII would be glad to support the MoCIT for building such an institutional framework of public private partnership, he added. Mr Harish Krishnan, Chair, CII Steering Group on Broadband Study and Director, Global Policy & Govt Affairs, CISCO India One of the significant findings of the Study is that deployment of Government led national broadband backbone is the starting point for broadband evolution as studied in the 12 (twelve) developed and emerging markets. Government involvement is high both in the first (up to 20% household penetration) and third phases (beyond 50% household penetration), however market forces are able to drive growth in the second phase.

The Study clearly demonstrates the lack of a business model for required widespread broadband penetration. This is why the Government needs to intervene immediately through involvement of the USO fund to reach the masses in the least possible time and enable the ecosystem. An assessment of existing core/middlemile infrastructure indicates that although all urban cities and towns have fibre coverage for backhaul, deployment in rural areas are limited to 28,000 BSNL rural exchanges. Mr Kunal Bajaj, Director India, Analysys Mason said that, 301,000 Route Kilometers (RKms) of network needs to be laid down to cover all 250,000 gram panchayats. The backhaul will be a mix of underground and aerial fibre, and microwave, requiring an approximate investment of Rs. 17,500 crores (USD3.8bn). He added, The first few years of growth in rural areas demands an addiitional investment of Rs. 22,000 crores (USD4.8 bn) in wireless technologies and access devices to enable rural citizens to reap the benefits of a variety of services like governance, health, education, finance, entrepreneurship and more.

The Study also analyses various potential investment models for laying out the necessary infrastructure, while evaluating each model in the Indian context. Different models are recommended for backhaul and access. Top

Centre should devise workable social security scheme: ASSOCHAM

New Delhi, December 08, 2010: Taking into cognizance of the recent alarming findings of the Labor Bureaus Employment and Unemployment survey (2009-10), and keeping in view the double digit rural unemployment excess of labor need to be moved out from agriculture to manufacturing and services, the Associated Chamber of Commerce and Industry of India (ASSOCHAM) feels that the government at centre should devise appropriate workable social security system in place. The Chamber reviewed the survey report minutely and feels this survey report is a mere reminder to the task of creating jobs for millions that will continue to be a fundamental challenge being grappled and remain grappled by the policymakers. The expert group of the chamber thoroughly verified the findings of the survey and found although the global economic downturn offers itself offers rosy picture but the ground reality is malaise runs deeper and lamented to say in rural areas, agriculture which is state subject continues to be the dominant employer to the tune of 7.2% while manufacturing sector 6.7% and community services 6.3% which project economys overall growth dismal and felt though centre is coming out with well conceived schemes to bridge solutions, still lot more needs to be done in the task of employment generation and have to address social security front thoroughly. It has further suggested the centre to make its efforts to upgrade the skills of rural workforce to enable them to match the requirements of the manufacturing and services sectors which may lead to lasting results. Top

India can count unreservedly on Frances support. France has constantly called for India to be a permanent member of the un security council. Mr. Nicolas Sarkozy, President of the Republic of France
New Delhi, December 07, 2010: French President Nicolas Sarkozy addressing the Captains of Indian Industry at a Confederation of India Industy (CII) business meeting said today, I have not come to India to find new clients, but to offer you a true partnership. Perhaps we believe in your future more than you do. Perhaps when we see India from the outside, we are more impressed than when you look at it from the inside. India can count unreservedly on Frances support. We want to support you and develop your country. France has constantly called for India to be a permanent member of the UN Security Council. Those who believe in reform should realize this is no longer a choice, but a necessity. The Hon President added, The world is in the throes of an economic crisis. If we have to find solutions to the problems of the world, we have to do it quickly. It is not only important to take the right decision, but it is important to take it now. There is no point taking a right decision if it is six months late. The heads of businesses of both the countries understand that. We, the heads of state, have to understand that now. An important highlight of the Indo-French cooperation was the signing of an MOU between two important business organizations of the two nations - the Confederation of Indian Industry (CII) and the Mouvement Des Enterprises de France International (MEDEFI). The intention of this MOU is to strengthen communication and cooperation between the two key organizations in the field of business information, export-import and related statistics information, cooperation in bilateral trade and investment technology and other commercial activities for the benefit of all their members and business community in general and for the well being of the two nations. This will be done by promoting and extending cooperation and assistance to mutual visits of delegations and businessmen of the two organizations, informing respective governments of measures that would benefit and help increase trade and economic cooperation and taking steps to promote trade between the two nations. The MOU was signed by Mr. Guy de Panafieu, Chairman France India Businessmen Council, MEDEF International and Mr. Chandrajit Banerjee, Director General Confederation of Indian Industry(CII). Hari Bhartia, President, CII emphasized the fact that both France and India have faced similar challenges. Addressing the French President he said, We must really succeed in laying the foundation of the 21st century institutions. We must have new ideas for the new world that lies ahead of us. You have consistently called for reform in the global monetary system, the energy and commodities market. We welcome your effort for more inclusive, sustainable reforms. Our govt. and the Indian industry must extend its wholehearted support in realizing this goal. Chandrajit Banerjee, Director General CII, said, Theres a tremendous dedication between the two countries to work together. We are extremely proud of this collaboration and todays a high point for both CII and India. With the bilateral understanding between CII and MEDEFI we will take the relationship between the two countries to a new level. H.E Mrs Christine Lagarde, Minister of Economic, Finance and Industry, Republic of France, took the occasion to put the world economic crisis in focus when she said, We are aware that France is not going to find the solution by herself, but we are humble enough to be open for consultation from everyone possible. We welcome joint efforts and recognize that coordination amongst all will be crucial. The G20 has to learn from each other a great deal. Between India and France, we can exchange a lot and benefit from each others knowledge. There are massive areas where you have the knowledge and many others areas of priority for you where we have the expertise. G20 today plays an increasing role in the economy of the world. Deliberating this role, Indias significance in it, and how the G20 is working towards reensuring the stability of the financial world, was the discussion G20: Indo French Business Perspective organized earlier in the day.

The need for a stable financial environment for the world was the agenda of the discussion. Questions addressed here were those of inclusive growth where Indias poor can become a part of the growth story and taking care of environmental issues while ensuring growth through mutual cooperation between France and India. French minister Mrs Christine Lagarde also conferred the Knight in the order of Legion d Honneur, Frances highest honour, to Mr. Deepak Parikh, Chairman HDFC Ltd., for his work in bringing the businesses of the two countries together. Top

Large German delegation in town for technology summit

New Delhi, December 07, 2010: Two years after a special Indo-German initiativeIndo-German Science and Technology Centre (IGSTC)--was launched by the then Union Minister for Science and Technology Kapil Sibal and German Research Minister Annette Schavan in 2008, the centre is working on four projects and the numbers are set to grow substantially. This was stated by visiting German Parliamentary State Secretary in the Federal Ministry of Education and Research, Thomas Rachel, on the occasion of the 16th Technology Summit organised by the Confederation of Indian Industry (CII) and the Department of Science and Technology (DST) in New Delhi on Tuesday. Germany is the partner country at the summit and a delegation of over 70 comprising members from industry, academia and research institutes, is in the Capital to take part in business-to-business (B2B) meetings and collaborative sessions ranging from mechanical engineering, automotive engineering, IT and micro technologies, water and solar technologies. The two-day symposium was inaugurated with the lighting of a traditional lamp by Thomas Rachel, in the presence of Secretary in Department of Science and Technology (DST) T Ramasami, German Ambassador to India Thomas Matussek and the Chairman of CIIs National Committee on Technology Vikram Kirloskar. In his special address, Principal State Secretary Rachel spoke of the German governments focus on funding projects in the fields of energy and environment policy. A traditional investor and champion of research and innovation, the Federal nations emphasis on research and development (R&D) has never been more pronounced in the 60 years since it was founded, than in the second decade of the 21st century, said Rachel. The Federal government has shored up its commitment to innovation by introducing a comprehensive innovation strategy, the High-Tech Strategy 2020by concentrating on five key areas: climate and energy, health, communication, mobility and security. These are the crucial areas when it comes to solving the most important challenges facing humanity in the 21st century, he said.

Ramasami, in his keynote address, stressed on the long-standing relationship between the two countries which he said started nearly five decades back when the Indian Institute of Technology (IIT), Madras, was set up in 1959 with technical assistance from the then government of West Germany. He likened the institute to virtually another embassy of Germany in India. Explaining why technology, rather than knowledge, was chosen as a platform to showcase the ties between the two countries, Ramasami said that science, technology and innovation were the three sides of a triangle and it was the convergence of science and industry, i.e., useful knowledge linked with marketplace, which needed to be highlighted. Amabassador Matussek, in his remarks, focused on the unique position of India in the German economywith investments of 30 million euros by Indian companies, India is the third largest contributor to Germany, the only one outside the continent. He also spoke of the huge German presence in India in the field of life sciencesalmost 70 per cent of medical equipment used in new private hospitals today is bought from Germany. The special place that India had in the scheme of things in Germany was evident from the fact that this was the second visit of Secretary Rachel to India this year, said Matussek. Germany is one of the top seven investors in India, accounting for nearly 3 per cent of the total inflows since 2002. Nearly 600 Indo-German joint ventures are in operation at present and Germany ranks second on foreign technology transfer approvals with 1,110 approvals so far--roughly 13 per cent of the countrys total technology approvals, said Kirloskar in his welcome remarks. Germanys investment on R&D increased by more than a fifth between 2005 and 2008 and today stands at 12.7 billion euros. The private sector in Germany hiked its expenditure on R&D by 19 per cent during this period amounting to a contribution of over 66 per cent of the total investments in R&D. Top

We are inviting private sector participation for building healthcare facilities on newly acquired Railway land: Ghulam Nabi Azad
New Delhi, December 02, 2010: We have tied up with the Ministry of Railways, Government of India for providing us land owned by them. We are inviting private sector participation and investment in establishing diagnostic facilities, hospitals, specialized and super specialty care centres, including medical. said Mr Ghulam Nabi Azad, Union Minister of Health & Family Welfare minister at the CII 7th India Health Summit 2010 "Healthcare 3.0 .Honorable Minster emphasized that we need to look at PPP as a synergistic arrangement, which ensures that the huge private sector also contributes to public public health goals. Though there are inherent differences of approach but the private sector is larger than the corporate sector, 58% of hospitals, 29% of all beds and 81% of all doctors, 77% of outpatient cases in rural areas and 80 % in the urban areas are in the private sector. He also added that the NSSO 60th Round 2004-5 says that more than Rs 3000/ expenditure in Government hospitals in rural areas during every hospitalization is met out of pocket. This out of pocket expenditure in the urban areas and in private hospitals is 2-3 times higher and we need to find solutions for this. Dr Naresh Trehan, Chairman, CII National Committee on Healthcare & CMD, Medanta-The Medicity said that we need to work on infrastructure, accessibility and human capital and we need to start working on these things right away. We need to be prepared for the next decade with new ideas which can be implemented and they need to be innovative solutions for the future, said Ms Suneeta Reddy, Chairperson, 7th India Health Summit & Executive Director-Finance, Apollo Hospitals Enterprise Ltd. HEALTHCARE 3.0 began as an attempt to focus on such innovative & tangible healthcare models. Mr. Shivinder Mohan Singh, Managing Director, Fortis Healthcare Ltd., said low cost healthcare solutions and optimal utilization of available infrastructure will provide long term solutions.

Urging the minister to further look into three areas of collaboration which are health insurance, infrastructure and capacity building, Mr. Analjit Singh, Founder & Chairman, Max India Ltd added that this will greatly benefit the health sector in going forward and benefit the common man. In order to motivate healthcare organizations, across all sizes and types, to pursue the path of excellence, CII is also putting in place an CII Healthcare Excellence Award programme, which is based on a very robust and rigorous assessment process. Honorable Minister released the Award & Model Brochure for Healthcare organization 2011 and also inaugurated the Exhibition. Mr Ragavan, Executive Vice President Siemens, thanked 600 plus delegates to attend the summit. Top

ASSOCHAM urges Commerce Ministry to review and re-introduce SFIS benefits to FTPs in Telecom Sector under EXIM Policy
New Delhi, December 02, 2010: In the backdrop of recent withdrawal of the fiscal incentives given in the form of benefits under EXIM policy given to telecom sector under Served from India Scheme (SFIS), the Associated Chambers of Commerce and Industry of India (ASSOCHAM) Secretary General D S Rawat exhorted that withdrawal of benefits were misconceived and short-sighted in toto and underlined that the telecom services have excelled their overall performance and paid for in foreign exchange but do not amount to export of services and urged the government to review this decision and restore the benefits at the earliest. He noted with dismay the conclusion drawn to this effect sequel to the high level meeting held by Policy Interpretation Committee (PIC) on 5th July 2010 is unfair, unjust and need to be reviewed on 5th July 2010, he added. In a memorandum to this effect was recently addressed to Director General of Foreign Trade (DGFT) Dr. Anup K Pujari wherein Mr. D S Rawat urged the Commerce Ministry through DGFT to review its decision taken earlier based on the Policy Interpretation Committee (PIC) and reintroduce the withdrawn SFIS benefits henceforth after necessary making necessary changes to this effect. Mr. Rawat lamented withdrawal of benefits will impede the growth of economy in general and growth of telecom sector in particular which serves as the backbone of Indian economy and centre should push exports sector by injecting the incentives like benefits like SFIS that accelerate countrys exports substantially. Mr. Rawat is of the view the telecom sector enjoys faster penetration with biggest success story but dependent on availability of cheap and reliable telecom services, thus eligible for benefits under SFIS, he emphasized in the memorandum. Further he expressed his dismay over the observations recorded in the PIC minutes reflect incorrect understanding of telecom sector. He was of the view PIC has wrongly concluded that only 50% of the fees earned to enable a foreigner, present in India to make or receive ISD calls is eligible for SFIS benefits. His contention is that since foreign exchange earned by Indian Service Providers (ISPs) is not shared with any foreign party there is no justification for allowing only 50% of such foreign exchange earnings to be considered for SFIS purpose, and requested the Ministry of Commerce to review its hastily taken decisions and restore the benefits that were given earlier. Top

Private Industry to Have its Share in Tactical Communication System: Raksha Rajya Mantri
New Delhi, December 02, 2010: One of the most prestigious communications project conceived by the Corps (of Signals), the Tactical Communication System (TCS) is well on the way, said Raksha Rajya Mantri, Shri MM Pallam Raju, while addressing the participants during inaugural session of DEFCOM India 2010, a joint initiative of Confederation of Indian Industry (CII) and Corps of Signals of Indian Army. He further said that, This project is being progressed under the Make category and provides the Indian Industry an excellent opportunity to seek its share of defence production. The Minister also said that the Government of India is exploring options to encourage and enhance private industrys participation in defence sector. These options include promoting Consortium, Joint Ventures and Public Private Partnership. The ultimate aim is to create indigenous capabilities and achieve the aim of self-reliance in the defence sector. This transformation is also generating numerous opportunities for the Indian Defence Industry. The Raksha Rajya Mantri observed that the Indian Industry has created a niche for itself globally and is now prepared and poised for greater participation in Defence production at home. He further added that while a self reliant Indian Defence Information and Technology Communication Industry is critical to meet the Indian Armed Forces current and future military requirements, the industry need to invest much more on R&D to make any meaningful contribution. He concluded by saying that the Academia, R&D organizations and Industry must work together to achieve our shared goal of indigenisation and self reliance in defence production for which adequate opportunities exists. The Chief of the Army Staff Gen VK Singh said that the Indian Army is transforming itself from a conventional platform centric force to more agile, lethal, versatile, capability based and networked centric force. Therefore a wide spectrum of changes will be required. Information superiority can be ensured through active participation of private industry. The Chief further stressed that these changes are rapid and profound and require wide discussions, debate, trials and testing prior to acceptance. The Signal Officer-in-Chief, Lt Gen P Mohapatra said that there is a need to ensure active participation of the Indian Industry in meeting the technological challenges faced by the Corps in convergence of networks which will contribute to the transformation of the Indian Armed Forces. He however cautioned that technology is a catalyst as well as an inhibitor. While we acquire and field newer technologies, our vulnerabilities also increase. Security must therefore remain a key central issue to the transformation process. Lt Gen VS Tonk, Deputy Chief of the Army Staff emphasised that the net-centricity in itself has become a weapon system rather than a support system. It is, therefore, very important to ensure cyber security. Mr Ajai Chowdhry, Founder & Chairman, HCL Infosystems said that the growing needs of armed forces, the real defenders of our sovereignty, can be met with the active participation of private industry. Defence Communication is a multi-billion sector and requires greater participation of Indian industry. We are glad that projects such as Network for Spectrum, Defence Communication Network and ASCON Phase-4 are in the pipeline. And, finally the Indian Private Industry has also been considered to participate in the most prestigious TCS program for the Army. Mr Chowdhry further said that several Indian companies including many SMEs have entered into communication hardware and software development, and coming up with specific innovations in this domain to take up the challenge of meeting the requirements of the armed forces. Indian Industry today is emerging as an efficient, competitive and viable manufacturing hub for the world. India promises a market for defence products and, at the same time, offers high quality manufacturing facilities which would make products competitive not only for the Indian market but also for global markets. Mr Chandrajit Banerjee, Director General, Confederation of Indian Industry ensured the audience that private industry is ready to take up any kind of challenge. Private industry has proved its mettle in the several sectors and defence would not be any exception. Top

ASSOCHAM has mooted a proposal for modification in the dispensation form the ATM machines with a view to provide sale of other financial products like insurance, mutual funds.
New Delhi, December 01, 2010: In a note to the government, ASSOCHAM has, however, stressed the need for establishing an apex Micro Financial Institution to provide uniform guidelines, regulate and ensure good corporate governance standards for fair and equitable dispensation to all stake holders.

The Chamber has anticipated that the credit requirements of the MFI may touch 1 lakh crores in the next 5 years with the government accelerating efforts through Commercial Banks and MFI. The concept of doling out subsidy to almost all the sectors where physical assets are seldom built up needs to be converted to credit dispensation at reduced rate of interest. This will create and add momentum to sustained employment generation and in the long run, bring down, subsidy burden appreciably.

The Government must clearly define the policy regarding expanding branch network and business correspondent modal so that more and more Unbanked areas are covered for attending full Financial Inclusion. Each commercial bank should be assigned a specified area for speeding full financial inclusion. This should be a time bound exercise.

The Chamber President Dr. (Mrs.) Swati Piramal said the proposed policy for issuing banking licenses must ensure that the new entrants are entrusted to open more branches / Business Correspondents in Un-banked rural centers.

The suitable technology platform be suggested to roll out various cost effective financial products efficiently and effectively. Usage of Biometric smart cards/Mobile technology to increase the outreach and to reach the Last Mile Villages.

The microfinance sector needs to be regulated to enforce transparency and fair play so that the ultimate objective of providing small ticket size loans to the rural populations at affordable interest rate of interest. This will bring healthy competition among the players and bring down transaction cost for the loan beneficiaries.

The share of total bank credit to micro sector may be increased and strict follow up and monitoring mechanism be placed for effective control. The interest may be subsidized in lieu of extending pure subsidy.

A special set of corporate governance norms be identified for microfinance institutions, so that their healthy growth and interest is widely accepted. Top

The CII-ITC Sustainability Awards are inducing companies to contribute towards Indias inclusive growth, said Mr. Pawan Kumar Bansal, Minister for Water Resources & Parliamentary Affairs
New Delhi, December 01, 2010: Mr. Pawan Kumar Bansal, Union Minister for Water Resources & Parliamentary Affairs, Government of India, said is heartening to know that the CII-ITC Sustainability Awards contribute to encourage more companies to participate in the development of the country by providing basic needs to the millions of poor. Companies and CII are proactive in taking upon themselves roles of developing the nation. He was speaking at the presentation ceremony of the CII-ITC Sustainability Awards 2010, organised by the CII-ITC Centre of Excellence for Sustainable Development on Tuesday evening. India is one of the fastest growing countries. Emerging quickly and successfully out of the global economic crisis, the country looks into the future with optimism. Nevertheless, what we have to work for is inclusive growth. Inclusive growth cannot be achieved unless every person in the country becomes the beneficiary of growth. The Minister added it is important to include people in management of basic needs, including water resources, at the smallest levels in villages. The Water Ministry has initiated management structures in villages in which people manage local water resources. This initiative has achieved significant success. At various places, people have gone beyond water management to form their enterprises to develop market linkages for their agriculture and other produce. However, there is a need to rapidly multiply these micro-enterprises. The Planning Commission and the Government should also increase their role in facilitating rapid multiplication of such enterprises. The government should encourage large business and CII to do more of this and public-private-people partnerships should be levered. The Minister said water labelling and water footprint is imperative to monitor the use of water in industry. There is urgent need to bring in water efficiency. Water Mission, part of the NAPCC, targets 20% efficiency in water use by 2015. In addition to water use efficiency, industry should actively engage in water recharge and harvesting initiatives in communities. Minister Pawan Kumar Bansal released the report Excellence in Sustainable Business Strategies & Practices for Business Growth & Competitiveness. The annual CII-ITC Sustainability Awards are given out to recognise and reward excellence in economic, environmental and social performance. Seventeen winners were recognised in different categories of the Awards. Guest of Honour, Mr. Arun Maira, Member, Planning Commission, Government of India, expressed that this Award celebrates the good companies and not just most profitable companies. This, therefore, made the Awards the best corporate awards. These are companies that grow efficiently on financial parameters, but additionally they do well by doing good. Mr Maira, also member of the Award Jury added that the Jury has set very high standards for performance in sustainability excellence. The Awards is also a process to learn to do good. Each company gets feedback based on 1000 hours of assessment. The CII-ITC Centre of Excellence for Sustainable Development has also developed a knowledge resource book on best practices based on Awards winners in the last four years. Mr Maira added that the Prime Minister of India has been urging corporate India and the Planning Commission that GDP is not the sufficient indicator of the well-being of our people. The Planning Commission is exploring measurement of real progress beyond just economic progress, such as the Gross Happiness. The Planning Commission is inducing companies to measure their goodness and asked the Reserve Bank of India to join them in this endeavour.

The Sustainability Prize for Independent Unit was retained by Babrala Plant of Tata Chemicals Ltd. The Certificate of Commendation for Significant Achievement for Large Businesses was won by Tata Steel Ltd, TCS, Toyota Kirloskar Motors, and Maruti Suzuki India Ltd. The Certificate of Commendation for Significant Achievement for Independent Unit was given to L&T-ECC Division, SRF Ltd-Chemical Division, SAIL-Bhilai, and NTPC-Dadri. E-Parisaraa won the Certificate of Commendation for Significant Achievement for Micro Enterprise. This is the first time ever that a micro-enterprise has been recognised the CII-ITC Sustainability Awards. The Certificate of Commendation for Strong Commitment for the large business category was awarded to Shree Cement Ltd, Yes Bank Ltd, and Jubilant Life Sciences Ltd. The Certificate of Commendation for Strong Commitment for independent units was given to Tata Chemicals-Mithapur, NTPC-Talcher, Philips-Mohali, and NTPC-Kawas. The jury did not find a worthy winner for the highest category of the Awards, the Role Model Trophy. The CII-ITC Sustainability Awards are aimed at rewarding sustainable practices by business units. This year 68 companies indicated intent to vie for the awards. Mr. Y C Deveshwar, Past President, CII, Chairman of the CII-ITC Centre of Excellence for Sustainable Development Advisory Council and Chairman ITC Ltd., stated that current model of economic growth may not be able to carry the demands of growth and sustainability in the future years. The current growth has come at the cost of environment and increased divide between the rich and the poor. So sustainability the impact on social and environmental capital has to be an integral part of the economic progress we make in the future. The CII-ITC Sustainability Awards recognises efforts of companies that contribute to creation of social and environmental capitals, thus going beyond creating financial market satisfaction. This Award is beginning to gain lot of credibility by participation of companies. Some 58 independent assessors spent about 1000 hours for each application, supported by a 13-membered jury that is led by Mr Suresh Prabhu, the Former Union Minister. The Awards also create a knowledge pool for companies to learn from each other in various areas of sustainability performance. The current system of markets needs to be changed to reward companies for their sustainability performance. A policy shift is required to enable this reward and excellence in sustainability performance. Offering concluding remarks, Dr. Subir V Gokarn, Deputy Governor, Reserve Bank of India and Jury Member, CII-ITC Sustainability Awards, stressed on the pursuit of economic, social and environmental motivations, inducing balance and alignment with each other. The Awards manifests that this balancing is possible and is already achieved by its winners. The publication is the first case book in India that provides examples of best practices to practicing managers and even management students and teachers. Top