India companies lead the world on disclosing CSR spends: Study

India has witnessed a marginal dip in corporate responsibility-related reporting by the top- 100 companies, but continues to be among the best in the world in this aspect, a 49-country study has found.
It also tops in the list of countries with highest rate of corporate responsibility (CR) related information in annual reports, it said, adding 98 per cent of the top 100 companies have the details.
As against a 100 per cent compliance observed in 2015, the reporting rate dipped marginally to 99 per cent for 2017, the study by global consultancy major KPMG has said.
It can be noted that under the amended Companies Act, 2013, corporate social responsibility (CSR) reporting has been made mandatory for companies.
Interestingly, it said regulation is driving reporting on human rights as well, it said.
"The Business Responsibility Report (BRR), an annual disclosure mandated by the Securities and Exchange Board of India (SEBI), requires the top 500 listed companies to report on nine core principles, one of which focuses on human rights," Santhosh Jayaram, KPMG's partner for sustainability services, said.
India is ranked the highest, with 95 pf the top 100 companies acknowledging human rights in their CR reporting, the study said.
From a global perspective, it said companies in the mining space have been found to be the most likely to acknowledge human rights in their reporting.

US firms evince interest to invest in UP

In a significant boost to job opportunities in Uttar Pradesh, over two dozen US companies today evinced keen interest to invest in the state.
A 50-member delegation, representing 26 major US firms, had a detailed interaction with state cabinet minister Siddharth Nath Singh here to explore investment opportunities in UP.
Welcoming the delegation, Singh said, "We will give you red carpet welcome in the true spirit of 'Atithi Devo Bhava' (guest is God)".
"I welcome delegates to fulfil our 'Sankalp Patra' (manifesto) by creating employment through your investment in UP," he said, referring to BJP's pre-poll document in which the party had pledged to create massive job opportunities for youth.
Seeking to showcase the state as an attractive destination for investment, Singh said, "Yogi Adityanath government's narrative is different from the previous governments. We will give you a red carpet welcome in the true spirit of Atithi Devo Bhava".
Singh said, "We will work hard to ensure that those (sitting) in this room don't go to other states to invest, but invest in UP. This will happen by providing a better Eco System".
With the tagline "US in UP" on the lines of 'Vibrant Gujarat', the state government invited US firms to invest in the state.
The delegation, headed by Boeing, visited the state under the aegis of US-India Strategic Partnership Forum (USISPF), which is committed to create the most powerful strategic partnership between the US and India and promote bilateral trade.
The USISPF said in a statement, "Our mission reaches far beyond this. It is about business and government coming together in new ways to create meaningful opportunities that have the power to change the lives of citizens".
It said that investment incentives offered by the state under the new chief minister "translates into a business- friendly climate for industry".
Singh told PTI that taking a cue from 'Vibrant Gujarat', the idea of 'US in UP' has been mooted to display the state's investment avenues in chemicals, petrochemicals, cement, gems, pharmaceuticals, textiles and engineering sectors.
He said a small delegation had visited this state two months back and realising the "tremendous investment potential" in the state, a bigger delegation was here today.
Singh said the foundation for the high-profile tour was laid when Prime Minister Narendra Modi visited the United States in June and invited CEOs of top US companies to invest in India, saying GST was a game changer that made the country a business-friendly destination.
Officials from the US Embassy and US Trade and Development Agency (USTDA) are also a part of the delegation, which included representatives from Facebook, Adobe, Coca Cola, Mastercard, Mosanto, Uber, Honeywell, P&G, Oracle and GE Health, besides Pratt & Whitney, Merck, Medtronic, Azure Power and Cargill.
Uttar Pradesh has recently come up with an Industrial Investment & Employment Promotion Policy to create a framework to stabilise and make existing industries more competitive and to attract and realise new international and national investments in the industrial sector.
"Uttar Pradesh has tremendous scope in terms of development and investment. The scope of employment is ample in sectors like health, industrial development, education, infrastructure, information technology and tourism," Singh said, adding that the state government will extend all possible help and co-operation.
The state health minister singh also said, "Prime Minister Narendra Modi has expressed his desire that investment should get a priority in UP. If investment is increased, there will be an increase in the employment opportunities, which will improve the life of the people and also boost the GDP of the state".
Focusing on tourism, Singh said, "There is immense scope of development of tourism in UP, and investors can invest in significant quantity in this sector. Every region of the state is known as a tourist destination, but owing to non-holistic development of the tourist spots, they are lying ignored. The government using its own limited resources is focusing on their development".
He also urged the investors to invest in tourism sector along with infrastructure. The state minister said, "The effort of the government is to ensure that the last man of the society is not deprived of health facilities. Work is being done to increase the speed of ambulances, so that the needy people can get benefit in short span of time." PTI ABN NAV SMI

US firms evince interest to invest in UP

In a significant boost to job opportunities in Uttar Pradesh, over two dozen US companies today evinced keen interest to invest in the state.
A 50-member delegation, representing 26 major US firms, had a detailed interaction with state cabinet minister Siddharth Nath Singh here to explore investment opportunities in UP.
Welcoming the delegation, Singh said, "We will give you red carpet welcome in the true spirit of 'Atithi Devo Bhava' (guest is God)".
"I welcome delegates to fulfil our 'Sankalp Patra' (manifesto) by creating employment through your investment in UP," he said, referring to BJP's pre-poll document in which the party had pledged to create massive job opportunities for youth.
Seeking to showcase the state as an attractive destination for investment, Singh said, "Yogi Adityanath government's narrative is different from the previous governments. We will give you a red carpet welcome in the true spirit of Atithi Devo Bhava".
Singh said, "We will work hard to ensure that those (sitting) in this room don't go to other states to invest, but invest in UP. This will happen by providing a better Eco System".
With the tagline "US in UP" on the lines of 'Vibrant Gujarat', the state government invited US firms to invest in the state.
The delegation, headed by Boeing, visited the state under the aegis of US-India Strategic Partnership Forum (USISPF), which is committed to create the most powerful strategic partnership between the US and India and promote bilateral trade.
The USISPF said in a statement, "Our mission reaches far beyond this. It is about business and government coming together in new ways to create meaningful opportunities that have the power to change the lives of citizens".
It said that investment incentives offered by the state under the new chief minister "translates into a business- friendly climate for industry".
Singh told PTI that taking a cue from 'Vibrant Gujarat', the idea of 'US in UP' has been mooted to display the state's investment avenues in chemicals, petrochemicals, cement, gems, pharmaceuticals, textiles and engineering sectors.
He said a small delegation had visited this state two months back and realising the "tremendous investment potential" in the state, a bigger delegation was here today.
Singh said the foundation for the high-profile tour was laid when Prime Minister Narendra Modi visited the United States in June and invited CEOs of top US companies to invest in India, saying GST was a game changer that made the country a business-friendly destination.
Officials from the US Embassy and US Trade and Development Agency (USTDA) are also a part of the delegation, which included representatives from Facebook, Adobe, Coca Cola, Mastercard, Mosanto, Uber, Honeywell, P&G, Oracle and GE Health, besides Pratt & Whitney, Merck, Medtronic, Azure Power and Cargill.
Uttar Pradesh has recently come up with an Industrial Investment & Employment Promotion Policy to create a framework to stabilise and make existing industries more competitive and to attract and realise new international and national investments in the industrial sector.
"Uttar Pradesh has tremendous scope in terms of development and investment. The scope of employment is ample in sectors like health, industrial development, education, infrastructure, information technology and tourism," Singh said, adding that the state government will extend all possible help and co-operation.
The state health minister singh also said, "Prime Minister Narendra Modi has expressed his desire that investment should get a priority in UP. If investment is increased, there will be an increase in the employment opportunities, which will improve the life of the people and also boost the GDP of the state".
Focusing on tourism, Singh said, "There is immense scope of development of tourism in UP, and investors can invest in significant quantity in this sector. Every region of the state is known as a tourist destination, but owing to non-holistic development of the tourist spots, they are lying ignored. The government using its own limited resources is focusing on their development".
He also urged the investors to invest in tourism sector along with infrastructure. The state minister said, "The effort of the government is to ensure that the last man of the society is not deprived of health facilities. Work is being done to increase the speed of ambulances, so that the needy people can get benefit in short span of time." PTI ABN NAV SMI

India's First Pradhan Mantri Kaushal Kendra for Skilling in Smart Cities

To bring momentum in skilling through collaborative efforts, the Union Home Minister Shri Rajnath Singh along with Minister of Petroleum and Natural Gas and Skill Development and Entrepreneurship Shri Dharmendra Pradhan here today inaugurated India's first Pradhan Mantri Kaushal Kendra (PMKK) for Skilling in Smart Cities, in collaboration with New Delhi Municipal Council (NDMC). The ministers also laid the foundation for a Skill Development Centre at Moti Bagh and a Centre of Excellence at Dharam Marg, New Delhi.
Affirming synergies with the Government of India’s flagship programs, the new skill development centres underscore the commitment of the Ministry of Urban Affairs & Housing (MUHA) and the Ministry of Skill Development & Entrepreneurship (MSDE) to support skilling in smart cities. National Skill Development Corporation (NSDC), an executive arm of MSDE, has collaborated with New Delhi Municipal Council Smart City Limited (NDMCSCL) to extend cooperation for setting up of PMKK Centres for Smart Cities, to provide skill training for unemployed youth through its short-term training (STT) module and contribute to the capacity building of municipal employees through Recognition of Prior Learning (RPL) program.

The event also had graceful presence of dignitaries such as Smt. Meenakshi Lekhi, Member of Parliament, Lok Sabha, New Delhi; Shri Naresh Kumar, Chairman, NDMC; Shri Karan Singh Tanwar, Vice – Chairman, NDMC; Shri Surender Singh, MLA & Member, NDMC and other senior officials from MUHA, MSDE, NSDC and NDMC.
Inaugurating the skill development centres, Shri Rajnath Singh said, “India which has the privilege of being a young nation, would gain from this demographic dividend to become a superpower and be amongst the top three counties in the world by 2030. The key to reach this milestone is by investing in our youth and making them skilled.” Shri Rajnath Singh added, “A skilled person gets respect, recognition and honor due to his hard work. I strongly believe that these skill development centres would aspire youth to take up vocational training to make themselves self-reliant.”
Speaking on the occasion, Shri Dharmendra Pradhan said, “Collaboration is the need of the hour to support inclusive and sustainable development in the country. Today’s event signifies integration and convergence approach towards Respected Prime Minister’s two most ambitious projects – the Skill India Mission and the Smart City Mission. Skilled workforce is required for effective development of any big or small project. We aim for recognition and respect to this workforce through skill training.”
Special Guest at the event Smt. Meenakshi Lekhi, MP Lok Sabha said, “I would like to applaud the efforts of both the ministries and its nodal agencies NSDC and NDMC for pioneering steps to bring in equitable growth and development. I am confident that such centers would deliver quality by extending access to trained youth, which would catalyse the creation of smart cities in the country.”
President, NDMC Shri Naresh Kumar said, "National Skill Mission will prove to be a milestone for the developed India. NDMC supports inclusive development by introducing best practices in skilling and is determined to leave no stone unturned to achieve the mission”.
The newly inaugurated Pradhan Mantri Kaushal Kendra leverages NDMC infrastructure for skilling initiatives. Located at Mandir Marg, New Delhi, the NDMC-PMKK Centre for Skilling in Smart Cities is an exemplary heritage building of approx. 30,000 sq.ft., with a capacity of skilling 4,000 youth annually. Catering to healthcare and solar energy sectors, the centre will be managed by one of NSDC’s affiliated training partners - Orion Edutech, which has an impeccable record of training nearly 3 lakh candidates through its network of over 275 skill development centres across the country. On this occasion, a solar-power lab powered by Schneider Electric was also inaugurated.

India eyes 100 mn jobs through tourism in 5 yrs: Alphons

India aims to create 100 million jobs through tourism and attract 40 million foreign tourists annually in the next five years, Union minister K J Alphons said today.
The minister also said that
at present, 14.4 million international tourists visit India annually, he said, adding the annual foreign exchange earning (through tourist spends) is about Rs 1.56 lakh crore.
"We have set an aim of providing 100 million jobs through the tourism sector and (attracting) 40 million foreign tourists annually into India in the next five years. Today, we are providing about 43 million jobs," the Minister of State for Tourism said at a press conference.
After meeting the CEOs of companies investing in the sector and deliberating upon how to maximise its potential, Alphons asserted he would "strongly recommend" to the finance ministry for a reduction in the GST rate for five-star hotel rooms attracting a tariff of Rs 7,500 and above.
"They (industry) feel the taxes are too high. We would certainly bat for the industry and request the finance ministry to bring down the tax rates so that there will be much better acceptance," the minister said.
Besides, Alphons said, the ministry was in advanced stages of a proposal to provide infrastructure status to the tourism industry for projects up to Rs 50 crore and will soon approach the union Cabinet for its approval on the same.
"With the infrastructure status, possibly the lending rates would come down, states would be able to give land on much better terms to the hotel industry," Alphons pointed out.
Elaborating upon the suggestions that emerged from the day-long deliberations, the minister said the tourism industry has sought a single-window clearance mechanism for approvals.
"Even though things have been made much easier at the Centre by the Government of India, they (industry) feel that things are still complicated at the state level. You need about 70 permits for a hotel to be opened, this is outrageous.
We need to bring down the number of permits which are required to operate a hotel down to the minimum," he said.
Moreover, Alphons said, the tourism industry feels that it is extremely expensive to set up hotels in India because the land cost is extremely high.
"We had proposals from the tourism industry which basically talked about providing land at concessional rate or lease so that one does not have to pay the complete amount upfront. We also agree in the ministry that the cost of land must come down dramatically otherwise they will not be able to set up hotels," said the minister.
Observing that there is a shortage of two lakh rooms across the country in the Rs 2,000 (per day tariff hotels) and below segment, Alphons highlighted the need for massive investment by the sector.
Besides, he said, the government and the industry will work together to ensure the availability of skilled professionals for the hospitality sector.
"We have a fairly large number of hospitality institutes run by the ministry itself and we along with the private sector will work on a massive skill development programme," he said.
The minister also conveyed the decision to set up four joint working groups to handle various issues. The working groups will comprise of representatives from the government, tourism industry, Invest India and Department of Industrial Policy and Promotion.
"They (working group) will meet very often and sort out issues, make recommendations to the ministry. We will follow up on these issues meticulously," Alphons said.
He said the tourism sector sought establishment of a national tourism board for constant engagement between the tourism ministry and the industry and a regulatory framework for home stay, etc, adding that the ministry will certainly look into both suggestions.
India currently attracts 1 per cent of global tourists and the government expects to double the numbers over the next five years, Tourism Secretary Rashmi Verma said.
Besides, Verma said the ministry is looking at creating better facilities at the airport so that tourists coming to India get clearance faster and don't have to stand in queues.
"We are also setting up facilitation centres at some of the key airports like Delhi, Mumbai, Chennai, etc to facilitate the people who are coming on e-visas," Verma said.
She said the ministry was trying to completely change the mindset and ensure that the country's world heritage sites and the Archaeological Survey of India (ASI) protected monuments have world-class infrastructure facilities.
"We have launched a new scheme called Adopt a Heritage, in which we have offered select ASI monuments and the World Heritage sites for adoption by the industry or the public sector for setting up basic amenities like clean toilets, clean drinking water.
"Seven sites have already been selected by the public sector and the private sector (for adoption). We are very hopeful that we will succeed in creating world-class facilities at our ASI monuments and world heritage sites in partnership with the private and public sector to provide a much better experience to tourists," Verma said.

Leather exports to rise 10 pc by 2019: Minister

Leather exports and production are expected to increase by 10 per cent by 2019, Minister of State for Commerce and Industry C R Chaudhary said today.
India's leather exports currently stands at USD 5.66 billion.
"We are expecting that by 2019, leather exports and production would increase by 10 per cent," he told reporters here.
The minister also said that the government is taking steps to improve business environment for the sector as part of the exercise to push growth.
Chaudhary further said that all Footwear Design and Development Institutes (FDDIs) would become institutes of national importance from today.
The FDDI Act, which was approved by Parliament, will be implemented from today, he added.
FDDIs will be able to give degrees, diplomas and certificates and they would also formulate their course and curriculum, he added.
The approval of the FDDI Act by Parliament in July had ended the uncertainty among the students who were not sure whether they would get degree from the institute.
The controversy with regard to the institute dates back to 2015, when the UGC, in September 2014, raised questions against the MoU between FDDI and Mewar University for grant of degree to students for the years 2012, 2013 and 2014.
In 2016, students of FDDI, Noida went on protest demanding degrees instead of diplomas.
The FDDI has 12 campuses of which eight are functional.
When asked whether ban on cow slaughter and increased cow vigilantism has impacted raw material availability and exports of leather, the minister said it is not so.
The exports of leather goods is linked to demand in developed regions like Europe, he added.

NIMs to stay robust in second half of FY18: Federal Bank's Shyam Srinivasan

Kochi-based Federal Bank posted a 25 per cent growth in credit in Q2, bucking a slowdown trend being seen across the banking industry. SHYAM SRINIVASAN, its managing director and chief executive, tells Abhijit Lele the growth trajectory would remain. Edited excerpts:
Your net interest income (NII) grew 23.8 per cent in the quarter. What contributed to this growth?
There has been all-round growth. Consistency in credit growth, better credit-to-deposit ratio and lower interest rate reversal (for bad loans) contributed to better NII.
Net interest margin improved in the quarter? Will the bank post better NIMs in the second half of the year?
NIMs in Q2 rose by 18 basis points to 3.31 per cent in Q2 from 3.13 per cent in the first quarter. The margins are expected to be in a similar range in the second half (October 2017-March 2018).
What is your outlook on interest rates?
Policy rates are not likely to see any sharp dip. As for the bank’s interest rate, we want to be competitive. We are now a significant player with about one per cent of the market.
Other income saw a marginal rise in the second quarter. What factors impacted performance?
Treasury income was impacted because of market developments. Fee income and foreign exchange streams have seen robust growth.
Your loan book rose by 25 per cent (year-on-year). The second half of a financial year is usually a busy season. Will there be an acceleration in pace then?
Almost two-thirds of credit demand is seen in the second half. We are confident of maintaining the growth tempo.
The quarter saw a system transiting to the goods and services tax (GST) regime. Did small and medium enterprises log a jump in the working capital limit use, especially during the liquidity crunch?
We have seen a rise in the use of working capital limits in some pockets, like textiles. The full effect of the new tax regime will be seen the third quarter.
The cost-to-income ratio declined to 50 per cent, indicating improvement in efficiency. Will there be a further drop in the ratio?
We are not signalling any dramatic cut in the C\I ratio. The bank has made investments in various areas, including expansion of network, for better growth. So, cost of income is expected to be 50-51 per cent for some time.
One of your peers (IndusInd Bank) has just signed a deal to acquire a microfinance company. Is Federal Bank also looking at such growth opportunities?
We are exploring such opportunities. But nothing is on the cards for now.

Fundraising via IPOs at record high; crosses Rs 40,000 crore mark in CY17

So far in 2017, 28 companies have collectively mopped up ~44,853 cr
With the initial public offering (IPO) of General Insurance Corporation of India (GIC Re) getting fully subscribed, fundraising through the IPO route has hit a record high in 2017, crossing the ~40,000-crore mark.
Thus far in the calendar year 2017 (CY17), 28 companies have collectively mopped up ~44,853 crore through IPOs, surpassing the previous high recorded seven years ago. In the entire CY10, as many as 64 companies had raised ~37,535 crore via IPOs.
Twenty-four companies raised ~30,853 crore in the first nine months of CY17, data from PRIME Database shows. In October, four companies — Godrej Agrovet, MAS Financial Services, Indian Energy Exchange, and GIC Re — have collectively mobilised around ~14,000 crore, totalling ~44,853 crore in CY17.
The amount is 82 per cent higher compared to the same period last year, when 24 companies mobilised ~24,653 crore from the primary market. In the entire CY16, 26 firms raised ~26,494 crore, the data shows.
Among sectors, financials, including housing finance and insurance companies, have cornered nearly two-thirds share, or about ~30,000 crore, of the total fund raised thus far in CY17. The companies from the sectors like construction, trading, and pharmaceuticals raised over ~1,000 crore though IPOs.
Analysts say the positive secondary market sentiment has rubbed off on the primary market as well, with 12 of 24 companies debuting on the exchanges this year listing at over 10 per cent premium against their respective issue price.
“Promoters are making use of the bull run in the secondary market to raise funds via the IPO route. Valuations for a lot of mid-cap companies have improved over time, and promoters are using this opportunity to tap the market for funds, including micro-finance companies, non-banking financial companies (NBFCs) and private banks,” says G Chokkalingam, founder and managing director, Equinomics Research.
Avenue Supermarts (owner of the D-Mart brand), Central Depository Services (India) or CDSL, Shankara Building Products, Apex Frozen Foods, and PSP Projects have seen their market value more than doubled from their issue price. Dixon Technologies, AU Small Finance Bank, Capacit’e Infraprojects, Housing and Urban Development Corporation, and Cochin Shipyard were up in the range of 30 per cent to 65 per cent against their issue price.
With the economic cycle likely to witness an upturn going ahead, analysts expect more companies, especially from the banking and NBFC space, to hit the primary market. This, they feel, will also be led by the need for capital for expansion.
“Credit growth is likely to pick up over time given the formalisation of the economy. That apart, consumption and penetration levels of corporates (into rural India) are going up. For this, corporates, including banks and NBFCs, will need funds to grow. The unlisted ones, as a result, will tap the markets to meet this requirement,” says Vinay Khattar, associate director and head of research at Edelweiss.
On the other hand, big-ticket IPOs like SBI Life Insurance Company, ICICI Lombard General Insurance Company, and Eris Lifesciences have underperformed the market by recording single digit or negative return post their listing.
“A lot also depends on the IPO pricing as well. For these insurance companies, the pricing was aggressive and left little for the investors on the table. As a result the IPOs have underperformed,” Chokkalingam said.

Wholesale inflation falls to 2.6% in September

The Wholesale Price Index (WPI)-based inflation data released on Monday provided yet another indicator of improving macroeconomic parameters.
Wholesale inflation fell to 2.60 per cent in September from 3.24 per cent in August due to a subdued rate of price rise in food items, particularly vegetables. However, economists warned that data of a few more months would have to be analysed to come to any conclusion on macroeconomic improvement.
Though food inflation declined to 2.04 per cent, against 5.75 per cent in August, the rate of price rise in onions was elevated. Despite moderation, inflation in onions stood at 79.78 per cent against 88.46 per cent. Otherwise, inflation in vegetable prices cooled to 15.48 per cent in September, against a high of 44.91 per cent in the previous month.
Inflation in manufactured products witnessed a slight increase at 2.72 per cent, against 2.45 per cent in August.
Fuel and power inflation cooled to 9.01 per cent, against 9.99 per cent in August.
Aditi Nayar, principal economist with ICRA, said a favourable base effect aided moderation in inflation on fuel and power, despite the recent rise in prices of petrol, diesel, aviation turbine fuel and other fuels. “Initial data has placed the index for crude petroleum at 55.6 points for September 2017, only 1 per cent higher than the level for June 2017, despite the 17 per cent increase in the average price of the Indian crude oil basket in the rupee terms during this time period. There is a possibility that inflation for September 2017 would subsequently be revised higher on account of crude oil," she said.
The inflation number would provide a boost to those claiming macroeconomic numbers were on the upswing now.
Industrial production grew at a nine-month high of over 4 per cent in August, mainly on account of robust performance of mining and power sectors, coupled with higher capital goods output. Exports rose to over 25 per cent in September, the second consecutive month of double-digit rise. Retail inflation remained at 3.28 per cent in September, unchanged from August, even as vegetable and cereal prices softened.
All these data came after gross domestic product growth declined to a three-year low of 5.7 per cent in the first quarter of FY'18, reflecting a major slowdown in the economy due to lingering impact of demonetisation and pre-GST jitters.
Nayar, however, cautioned against over-interpreting these numbers. "The recent set of macroeconomic data indicates some improvement. However, we need to watch whether this sustains over the next few months. One month's data may not provide a clear picture regarding the future trend.”
To buttress her point, she said the year-on-year pace of growth of electricity generation, Coal India's production and automobile production had declined in September. This could dampen the rise in September industrial production to some extent, she added.
Madan Sabnavis, chief economist with CARE Ratings, said," while there are inherent pressures which can push up this rate, we expect it to be within the range of 3-3.5% by the end of the year, which is definitely not going be a concern."
In fact any upside in this number for manufactured products would be good news for this sector as it would imply regaining pricing power, he said.
Earlier this month, the Reserve Bank kept benchmark interest rate unchanged on fears of rising inflation, while lowering growth forecast to 6.7 per cent for the current fiscal year. It also raised its retail inflation forecast to 4.2 to 4.6 per cent for the rest of the current fiscal year, from 4 to 4.5 per cent.

Over 69 lacs subscribers join Atal Pension Yojana with contribution of Rs. 2690 crores

Atal Pension Yojana currently has over 69 lacs subscribers with contribution of Rs. 2690.00 crores. Chairman, PFRDA Shri Hemant G Contractor however emphasised the need of increasing the pension coverage in India at a recently concluded conference on Atal Pension Yojana. The conference organised by Pension Fund Regulatory and Development Authority (PFRDA) in the national capital saw participation from all major banks, representatives from NPCI, SCHIL, SIDBI, Access Assist and some major MFIs.
A large section of the society still does not have access to pensions and this is a cause of concern for PFRDA and Government, Shri Contactor said. Congratulating the winners of the contest organised by PFRDA the Chairman said that APY has made progress in covering the intended subscribers but much remains to be done. He mentioned that on an average, a little less than 2% of the eligible population is covered under APY and hence a lot has to be done to provide people a regular access to old age income. He also touched upon the issues of persistence in the APY accounts and asserted that the objective of the scheme is to provide pension and this will only happen if the contribution in the account has been regularly paid. He urged the APY Service Providers to educate the subscribers on the importance of the same. He also urged upon the APY Service Providers i.e Banks and Post Offices under Department of Post to achieve the targets allocated by government by putting in their best efforts.
A video message of Shri Rajiv Kumar, Secretary DFS was played during the occasion. Shri Rajiv Kumar mentioned that Atal Pension Yojana is flagship program of the Government of India under financial inclusion and financial security. The pension coverage in this country is at around 12% and banks and other stakeholder need to work towards greater coverage under the scheme. He also said that DFS is monitoring the progress under the scheme and targets allocated under the scheme to banks should be accomplished. He touched upon the subject of providing a digital platform for APY by PFRDA i.e e-APY. Secretary Shri Rajiv Kumar congratulated the banks on their performance under the campaigns and urged them to continue the work.
While the government has a pension scheme for the BPL persons but the amount is meagre and is not sufficient for old age needs. 9% of the population of India, i.e 110 million people are over 60 years and by 2030 this figure is expected to cross 180 million. The 60 plus age groups is the fastest growing demographic in the country. With increase in longevity of the people, disintegration of the joint family system in India and inflation, there is greater need for old age than ever before. Currently pension benefits are available India basically to the organised sector. Atal Pension Yojana introduced in 2015 by Government of India provides a self- contributory savings pension scheme with guaranteed pension of Rs. 1,000/- to Rs. 5,000/- with a very low contribution by the subscriber. All banks and Department of Post have pushed the product to the interiors of the country. APY has option for increasing the pension amount from Rs. 1000/- to any other amount up to Rs. 5000/- as per the savings capacity of the subscriber, and further allows the spouse to continue the account in the event of the death of the subscriber before the age of sixty years. PFRDA has also been engaging with various State Governments for providing co-contribution under the scheme. With the introduction of e-APY through Aadhaar, the banks will be able to effectively utilise the digital platform for greater coverage.

Growth in India to pick up further in 2017, 2018: IMF

Washington: India will stay ahead of China on the growth curve in 2017 and 2018, said the International Monetary Fund (IMF) while retaining the country's GDP forecast at 7.2 per cent for the current fiscal.
"Growth in India is forecast to pick up further in 2017 and 2018," the IMF said in its latest World Economic Outlook Update released in Kuala Lumpur on Monday.
China's growth, the IMF said, is expected to remain at 6.7 per cent in 2017, the same level as in 2016, and to decline only modestly in 2018 to 6.4 per cent.
Global output is projected to grow by 3.5 per cent in 2017 and 3.6 per cent in 2018, said the report.
"While activity slowed following the currency exchange initiative, growth for 2016 at 7.1 per cent was higher than anticipated due to strong government spending and data revisions that show stronger momentum in the first part of the year," the IMF said in its latest update.
Global growth for 2016 is now estimated at 3.2 per cent, slightly stronger than that of April 2017.
This primarily reflects much higher growth in Iran and stronger activity in India following national accounts revisions, the report said.
"Economic activity in both advanced economies and emerging and developing economies is forecast to accelerate in 2017, to 2 per cent and 4.6 per cent respectively, with global growth projected to be 3.5 per cent, unchanged from the April forecast," it said.
The growth forecast for 2018 is 1.9 per cent for advanced economies, 0.1 percentage point below the April 2017 WEO, and 4.8 per cent for emerging and developing economies, the same as in the spring.
The 2018 global growth forecast is unchanged at 3.6 per cent.
The revisions mirror primarily macroeconomic implications of changes in policy assumptions for the world's two largest economies, the United States and China, the multilateral agency said.
According to the report, China's forecast for 2017 was revised up by 0.1 percentage point, signalling the stronger than expected outturn in the first quarter of the year underpinned by previous policy easing and supply-side reforms.
For 2018, the upward revision of 0.2 percentage point mainly reflects an expectation that the authorities will delay fiscal adjustment to meet their target of doubling 2010 real GDP by 2020.
The delay comes at the cost of further large increases in debt, but downside risks around this baseline have also increased, it said.
According to the IMF, China's failure to continue focus on addressing financial sector risks and curb excessive credit growth could result in an abrupt growth slowdown, with adverse spillovers to other countries through trade, commodity price, and confidence channels.
A faster-than-expected monetary policy normalisation in the United States could tighten global financial conditions and trigger reversals in capital flows to emerging economies, along with US dollar appreciation, it predicted.
The US is projected to grow at a clip of 2.1 per cent in 2017 and 2018.

Prime Minister Modi and Prime Minister Costa launch unique Start-up portal

New Delhi: Prime Minister Modi and Prime Minister Costa today launched a unique startup Portal - the India-Portugal International StartUp Hub (IPISH) - in Lisbon.
This is a platform initiated by Startup India and supported by Commerce & Industry Ministry and Startup Portugal to create a mutually supportive entrepreneurial partnership.
IPISH hosts a range of tools and will provide information on the start-up hotspots of Bangalore, Delhi and Lisbon; and on associated subjects, such as policy, taxation, and visa options. It will develop a Go-To-Market Guide to support start-ups.
IPISH is expected to help in mutual capacity building, and enable connections between start-ups, investors, and incubators from relevant sectors. It is also expected to establish a network of honorary ambassadors based in India and Portugal to guide start-ups from both countries.
Background:
There are strong complementarities between India and Portugal in the start-up sector. Portugal has one of the highest rates of business creation in Europe and has emerged as one of the most vibrant European eco-systems for entrepreneurship. Lisbon is hosting the Web Summit - a key annual international technology conference - for 3 years from 2016 onwards. The last Web Summit had 700 participants from India, and the number is expected to go up further this year. The governments of both India and Portugal are focusing on promoting Start-ups.

MFs get record monthly SIP inflows

New Delhi: Inflows into mutual fund schemes through the so-called systematic investment plan (SIP) route hit a record high of Rs 4,584 crore in May. SIP inflows were 44 per cent higher compared to the corresponding month of last year and 20 per cent more than one-year average.
SIP is an option wherein an investor makes a recurring commitment to put in a fixed income periodically. SIPs, as opposed to lump sum investments, help mitigate risk, particularly when the markets are trading at near record levels.
Even the mutual fund industry benefits from SIPs flows as they are consistent in nature. The industry has been creating a lot of awareness investing through this route. Market players say inflows through the SIP route will only increase from current levels. Broking firm Geojit Financial Services in a recent note said SIP flows could double to Rs 10,000 crore in next two years. “Investors are increasingly coming to equity markets through SIP route, leading to a sudden spike in SIP folios in the past one year and the trend is likely to gather more speed over the next couple of years,” the brokerage says.

Indian renewable market to witness strong growth: Moody's

Mumbai: As India is moving towards meeting its commitments under the Paris agreement on climate change, its renewable energy market is likely to witness a strong growth over many years, says Moody's Investors Service.

"However, renewable energy projects face challenges related to the weak credit quality of offtakers, an evolving regulatory framework, as well as financing and execution risks," Moody's vice-president and senior analyst Abhishek Tyagi said in a statement issued here.

According to the rating agency, India's emission reduction commitments under the Paris agreement will lead to a sharp rise in renewable energy capacity.

India aims to achieve 40 per cent of cumulative installed capacity through non-fossil fuel sources by 2030 from the current 30 per cent and also plans to grow its renewable energy capacity to 175 GW by 2022 from the current 57GW.

"Such growth will be driven by the public and private sector. However, the key offtakers for most renewable projects are state-owned distribution companies, and these firms typically demonstrate weak financial profiles.

"This situation poses a key challenge for developers.

And, while there is no history of defaults under power purchase agreements, payment delays are quite common," he said.

Moody's also points out that the evolving policy framework for renewables presents a risk for renewable projects.

"Adherence to renewable purchase obligations has been limited, leading to lower demand for renewable energy.

Nevertheless, the feed-in-tariff and competitive bidding guidelines for wind and solar projects are well established and improve revenue visibility over the life of purchase power agreements," the agency noted.

It further said the rise in renewable energy capacity will bring execution challenges, including land acquisition, establishing resource quality, grid connectivity and availability.

On the financing of renewable energy projects, India will need to invest close to USD 150 billion to meet its 2022 renewable energy targets.

Since domestic banks are constrained in their lending to renewable projects, foreign capital will play an important role. However, foreign currency financing is constrained by the limited hedging products available to fully cover the rupee currency risk of purchase power agreements, it said. PTI PSK

LPG sales jump by record 9.8 pc on Ujjwala push

New Delhi: LPG sales have jumped by 9.8 per cent in the fiscal year ended March 31 after the government gave a record number of cooking gas connections, most of them to poor households.
Public sector fuel retailers sold 18.9 million tons of packed domestic LPG -- the fuel that is sold to consumers in cylinders -- during 2016-17.
"Packed LPG growth in 2015-16 was 7.1 per cent and in 2016-17 it was 9.8 per cent," a senior oil ministry official said.
The growth rate assumes significance considering that petroleum product sales have stagnated at 4-6 per cent.
India consumed 5.2 per cent more petroleum products like petrol, diesel, LPG and jet fuel, in 2016-17 at 194.2 million tons.
"LPG is the highest grosser. As many as 111.3 crore cylinders were sold in 2016-17," the official said.
State-owned Indian Oil Corp (IOC), Bharat Petroleum Corp (BPCL) and Hindustan Petroleum Corp (HPCL) together have 23.71 crore LPG customers registered with them out of which 23.46 crore customers are domestic users. Of these only 19.88 crore are active users.
The official said about 3.32 crore new domestic LPG connections were issued during 2016-17, including two crore under Pradhan Mantri Ujjwala Yojana (PMUY).
Under the PMUY, the government is giving free LPG connections to poor households with a view to weave them away from polluting fuel like firewood.
The PMUY has helped increase LPG coverage to 72.8 per cent of the population, up from around 50 per cent three years ago.
The official said there may be few states where the LPG refil purchase has been below the national average of 4-5 cylinders a year but overall there has been a tremendous growth in LPG consumption.
"Bihar recorded the highest growth at 22.7 per cent, followed by Chattisgarh at 17.6 per cent, Jharkhand at 16.7 per cent, West Bengal at 15.9 per cent and Uttar Pradesh with 15 per cent growth rate," he said.
States which do not have abandunt alternate cooking fuel like forest wood, have shown greater ease in switching over to LPG usage.

25 Ministries/ Departments to turn into e-office by end of June, says Dr. Jitendra Singh

25 Ministries/ Departments to turn into e-office by end of June, says Dr. Jitendra Singh
E-files increased from 8,000 to 4,62,000, says MoS (PP)
The Union Minister of State (Independent Charge) Development of North-Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh visited the office premises of Department of Administrative Reforms and Public Grievances (DARPG) here today, to review the implementation of the Swachhta Action Plan. The DARPG and Department of Pension and Pensioners’ Welfare are observing the Swachhta Pakhwada from 16th-30th June, 2017.
On the occasion, Dr. Jitendra Singh complimented both the Departments for undertaking various Swachhta related activities during this Pakhwada and also expressed happiness that the two Departments are working together as one team. He said that the habit of cleanliness should be practised by all and it should be the responsibility of everyone to keep their surroundings clean. Highlighting the steps taken by DARPG, he said that 25 Ministries/ Departments will be turned into e-office by the end of this month. He also said that there has been an increase of a whopping 6000%, in the number of e-files with 4,62,000 e-files generated in 2017, compared to 8,000 e-files last year.
Dr Jitendra Singh said under the guidance of Prime Minister Shri Narendra Modi, the Departments are committed to provide maximum Governance to the public. He said that the process involved in the Civil Services Day has been completely transformed by DARPG in the last three years, as the participation and involvement of stakeholders has increased many folds. He said that DARPG is seen as the HR department of the Government of India. All good practices originate from this Department, he added. The Minister said that an MoU between India and Portugal on Cooperation in the field of Public Administration and Governance Reforms has been recently approved by the Cabinet. Dr Jitendra Singh expressed happiness over the fact that there has been near 100% disposal of grievances under Centralized Public Grievance Redress and Monitoring System (CPGRAMS) and 50% of the feedbacks received under Centralized Pension Grievance Redressal and Monitoring System (CPENGRAMS), have expressed satisfaction on their grievance redressal.
Secretary, DARPG Shri C Viswanath said that Modernisation and Swachhta go hand in hand and the allocation for DAPRG Modernisation has been doubled compared to last year. He said that the Department has implemented 100% e-office with digitisation of records. He also said that 58 Central Ministries/Departments and 33 States and UTs have abolished affidavits and attestation. He highlighted the various activities being undertaken by the Department during the Swachhta Pakhwada.
The DARPG is undertaking various activities like recording, reviewing and weeding out of old records, digitization of records, disposal of old and obsolete items etc. A poster(s)/ slogan competition has also been organised on the theme of Swachha Bharat. The best workstation will also be declared in the Department and appreciation certificate will be awarded to the winner. The Department has also planned to utilise Rs 10 lakhs for Swachhta related activities in the department during the current financial year. The Department of Pension & Pensioners' Welfare is also undertaking similar activities during this Pakhwada.

Cruise Tourism to be a growth driver for India's economy, says Shri Nitin Gadkari

Cruise Tourism to be a growth driver for India’s economy, says Shri Nitin Gadkari
Clear Action Plan drawn to revitalise Cruise Tourism in India
The Minister of Shipping and Road Transport and Highways Shri Nitin Gadkari has said that Cruise Tourism is one of the fastest growing components of the leisure industry worldwide, and can be a major growth driver for the Indian economy by generating huge employment opportunities. Shri Gadkari was speaking at the National Workshop on “Action Plan for Development of Cruise Tourism in India”, in New Delhi today. The workshop was also attended by Minister of State for Culture and Tourism (I/C) Dr Mahesh Sharma, and representatives of all stakeholder organizations – both from the government and the private sector – including regulatory agencies which deal with issues impacting cruise tourism.
Pointing out that tourism has the highest investment to employment multiplier Shri Gadkari said that on an average, employment generation on a cruise ship is 1 job for 3-4 passengers. With India having the potential to cater to 700 cruise ships per year as against 158 handled this year, the cruise industry can generate more than 2.5 lakh jobs for ten lakh cruise passengers, giving a big boost to the country’s economy. He further informed that cruise terminals are being developed at five major ports – Mumbai, Goa, Cochin, Mangalore and Chennai. In addition, the transport potential of 111 inland waterways will also be tapped. Work will start for developing ten inland waterways by the end of this year. This includes the rivers Ganga and Brahmaputra on which work is already in progress, he informed.
Shri Gadkari called upon state governments also to play an active role in promoting cruise tourism by developing, packaging and marketing their tourists attractions to draw more and more tourists.
The Ministry of Shipping has been working actively with all relevant ministries and organizations of the government to promote cruise tourism in the country. A joint task force headed by Secretary Shipping and Secretary Tourism was constituted for the purpose, and a global consultant was engaged for drawing up an Action Plan. The objective of today’s workshop was to discuss this Action Plan which requires various arms of the Government to take action for creating an enabling business eco-system for growth of cruise tourism in the country.
Speaking on the occasion Dr Mahesh Sharma said that India is fast growing as an attractive tourist destination. To realize the full potential for cruise tourism in the country there was a need for all stakeholders to work together, in cooperation with each other, and create a favourable ecosystem for growth.
Highlighting the efforts of the Shipping Ministry for promoting cruise tourism, Dr Alok Srivastava, Special Secretary (Shipping), informed that e visa, e-landing and incentives like minimum rebate of 30% on all cruise vessel related charges and additional rebate of 25% for coastal cruise movement have already been implemented. Further to this, a joint task force has been set up by the Ministry of Shipping & the Ministry of Tourism and an action plan for deriving standard operating procedure has been drawn, which would be implemented in a time bound manner after discussion with various stakeholders.
Secretary Tourism Smt Rashmi Verma said that the coming together of the Shipping and Tourism ministries to promote cruise tourism in the country would help maximize the benefits that the sector has to offer.
Stakeholders discussed several regulatory issues pertaining to various aspects of cruise port operations namely security, immigration, customs, ports in the workshop. They worked towards drawing up Standard Operating Procedures for all govt. organizations for cruise vessel handling.
Please click here for Backgrounder on Cruise Tourism

Cement sector to see 5-6% CAGR for next 3 fiscals: Crisil

New Delhi: The cement sector will witness 5 to 6 per cent CAGR over the next three fiscals on account of recovery in demand, rating agency Crisil said.
Primarily, the demand would be driven by government's focus on affordable housing and increased spending on infrastructure like roads, railways and urban development, it added.
According to Crisil, the demand of cement will double to 48 million tonnes (MT) over the next three fiscals as compared to the past three financial years.
It, however, said supply would be down to 31 MT from 39 MT.
"We foresee a sharp recovery in demand this fiscal after demonetisation dealt a major blow leading to a 1.2 per cent de-growth last fiscal," said Crisil Ratings Senior Director Sachin Gupta.
He further added: "The industry should be able to rack up 5-6 per cent compound annual growth rate between this fiscal and 2020, or nearly twice as fast as between fiscals 2015 and 2017."
According to the rating agency, the surge in demand would also improve the operating metrics of cement makers.
The cement segment, which is witnessing consolidation - last fiscal, had signed acquisitions of Rs 32,000 crore last fiscal.
It was financed through debt of Rs 25,000 crore.
"The acquisitions totalled 42 MT of capacity, tantamount to the capacity addition seen in the past 2.5 years," said Crisil, adding that once these transactions are completed, acquirers will increase their installed capacity significantly to 37 per cent from 28 per.
However, it also warned: "Their share of industry debt will increase from 17 per cent now to 45 per cent." PTI KRH

Tractor industry may record volume growth of 10% in FY18:ICRA

Mumbai: The Indian tractor industry is expected to record a volume growth of 9-10 per cent in the current financial year, mainly supported by healthy monsoon, according to rating agency ICRA.
"Healthy monsoon expectation, coupled with good reservoir levels, augurs well for farm output in the current fiscal. This, coupled with an expectation of improvement in non-farm income, aided by the government's focus on rural spending, infrastructure creation and irrigation spending, is likely to drive the demand for tractors, which is expected to record a volume growth of 9-10 per cent this fiscal," ICRA said in a report here.
"Over the long term, we continue to maintain an annual growth estimate of 8-9 per cent for the industry. The long term industry drivers for the industry continue to remain intact. The government remains committed towards rural development and agro-mechanisation, a critical component in improving the state of agriculture in the country," ICRA Senior Group Vice President Subrata Ray said.
Also, he said, continued support towards enhancing irrigation penetration through fresh allocations would reduce rainfall dependence.
"This, coupled with other factors such as increasing rural wages and scarcity of farm labour, is likely to aid growth in industry volumes," he added.
Tractor volumes reported a healthy growth during FY17, boosted by improving farm sentiments following healthy southwest monsoon and expectations of better cash flows in the backdrop of strong growth in kharif and rabi crop production.
Additionally, ICRA said, government support programmes in various states also supported demand to an extent.
The volumes suffered a blip in November 2016 following demonetisation. However, domestic volumes recovered quickly to a moderate to healthy growth in volumes during December 2016-March 2017, it added.
In April and May, 2017 also, leading tractor Original Equipment Manufacturers (OEMs) have reported robust double digit growth rates in domestic volumes.
However, tractor exports market remained weak during FY17, with the weak demand in the global markets attributable to high supplies of commodities and accompanying fall in crop prices across various markets, ICRA said.

Textiles Ministry undertakes cleanliness drive

N

ew Delhi: The Union Textiles Ministry has organised a fortnight-long cleanliness drive dubbed Swachhtha Pakhwada to drive home the government's Clean India campaign.
All 17 bodies under the Ministry, apart from jute mills and residential colonies of workers in the textile sector, undertook various activities towards cleanliness during the drive organised between May 1 and 15.
Besides, students of various National Institutes of Fashion Technology centres across the country worked closely with various sections of the society and cleaned public places and decorated walls with mural paintings containing messages of cleanliness.
An exhibition on waste management and organic farming was organised by Central Silk Board. Plantation drives, awareness campaigns, health and cleanliness camps, debate competitions, slogan-writing competitions, street plays, human chain, Padayatras and painting competitions were also held in various locations as part of the Pakhwada.
Addressing reporters here, Minister of State for Textiles, Ajay Tamta said there is a need for the message of Swachhtha (cleanliness) to reach every citizen of the country.
He said everyone needs to realise that Swachh Bharat Abhiyan (Clean India campaign) can become a success only if each one participates actively in it.

Commerce & Industry Minister launches the Startup India Hub

New Delhi: The Commerce & Industry Minister Smt. Nirmala Sitharaman today launched theStartup India Virtual Hub, an online platform for all stakeholders of the entrepreneurial ecosystem in India to discover, connect and engage with each other.
Speaking about the need to bring the entire ecosystem together on one platform, Smt. Nirmala Sitharaman mentioned that Startup India Virtual Hub is an effort to create a marketplace where all the stakeholders can interact, exchange knowledge, and enable each other to grow. It will streamline the lifecycle of existing and potential startups, helping them access the right resources at the right time. She also encouraged all entrepreneurs in India to utilize this portal and all enabling stakeholders to contribute to the platform as much as possible. The Minister also announced a new initiative, wherein a Startup exchange program amongst the SAARC nations would be organized.
The portal will host startups, investors, funds, mentors, academia, incubators, accelerators, corporates, Government bodies and more. The Hub attempts to solve the problem of information asymmetry and lack of access to knowledge, tools, &experts, especially in the nascent ecosystems across Tier II and III towns.
The Virtual Hub is a dynamic & interactive platform that will facilitate learning & development, networking, mentorship, funding,etc. for startups. The basic principle behind developing this platform is to aggregate different offerings of theecosystem and enable discovery by the right audience. Startup India Hub has partnered with various organizations to on-board entrepreneurs & investors, as well as build knowledge modules. To ensure accessibility across various platforms, dedicated Apps are also available on both Android and iOS.
India is the third largest startup ecosystem around the globe, with 3-4 startups commencing every day. The Hub will act as a nodal platform and will enable users to connect with ecosystem stakeholders, access free learning resources, tools & templates on legal, HR, accounting & regulatory issues and discussion forums. The Hub has also aggregated over 50 relevant Govt schemes/programs. In the next phase, the platform will also aggregate schemes available across various state governments. To provide a better user experience, the platform has been enabled to build smart intelligence along with Chatbots to automatically collate, update information and respond to queries.
The launch event of the Hub was kick-started by a panel discussion on ‘Navigating the Startup Landscape’ with a representative from each of the startup, investor, incubator, accelerator, and mentor communities. The discussion was followed by an address by Shri Ramesh Abhishek Secretary, Department of Industrial Policy and Promotion who made a presentation on various initiatives taken up under the Startup India Initiative.
In his closing remarks, Joint Secretary Shri Rajiv Aggarwal requested all the members of the ecosystem to register on the Hub.

IT export to grow at 7-8%; 1.5L jobs to be created in FY18'

Hyderabad: Indian IT exports will grow by 7-8 per cent, unchanged from previous year's growth, despite protectionist voices in major markets like the US, industry body Nasscom said today.
The USD 156 billion Indian industry -- the biggest job creator in the organised sector -- is also projected to add 1.3-1.5 lakh new jobs during 2017-18 compared to a net hiring of 1.7 lakh in the previous fiscal.
In a first, the industry body had deferred giving the growth forecast in February and had instead postponed the same to April-June quarter.
Speaking to reporters, Nasscom president R Chandrashekhar exuded confidence that the outlook is positive despite the political and economic uncertainties in key overseas markets that may impact client spending.
"We expect export revenues to grow by 7-8 per cent, not hugely different from last year (7.5 per cent), notwithstanding the headwinds we talked about (H1-B visa curbs in the US, protectionism and Brexit)," he added.
The domestic infotech industry is expected to grow at faster pace of 10-11 per cent (in dollar terms) in 2017-18.
"We definitely see the industry to be net hirer of as many as 1.3 to 1.5 lakh people in the year ahead. This industry continues to be a substantial hirer and a substantial creator of new jobs. At the same time, there is a churn in the industry too," Chandrashekhar said.
He said as the industry is currently driven by the digital revolution, Nasscom has decided to re-skill about 1.5 to 2 million IT professionals to equip them for future requirements.
"Nasscom is working with its partners, members to establish a comprehensive digital platform. You will be hearing about this more during the months ahead. We expect 1.5 to 2 million people amongst the workforce to be re-skilled in the next 4-5 years."
The size of the Indian IT industry is pegged at USD 154 billion, including USD 11 billion incremental revenues added in the previous fiscal, according to Nasscom.
"Uncertainty impacted the businesses. Whether it is BFSI segment or healthcare, all segments confronted by the uncertainty delayed the decision-making in the quest for stability. That translated into low opportunities for IT industry," the Nasscom chief explained.
Chandrashekhar, however, was optimistic about growth of the domestic IT industry, backed by some of the Centre's initiatives such as aiming for one trillion dollar digital economy.
Replying to a query, he said the Indian IT industry is all set to move beyond the markets it is heavily dependent on and expand footprints to newer geographies such as Continental Europe, Japan, China and Africa.
The US and the UK account for almost 80 per cent of the country's IT export revenues.
Compared to Nasscom's guidance of 7-8 per cent growth, Infosys expects its revenues to rise 6.5-8.5 per cent in constant currency (and 6.1-8.1 per cent in USD terms), while Cognizant has guided for 8-10 per cent rise in topline in constant currency terms.
Keshab Panda, MD and CEO, L&T Technology Services, said he is confident of double-digit growth.

India-Australia to boost collaboration in clothing, fashion

New Delhi: India and Australia will intensify cooperation in the field of textiles, clothing, handloom and fashion, with the government approving an agreement between the two nations in this regard.
The Memorandum of Understanding between the Ministry of Textiles and the Department of Foreign Affairs and Trade, Australia will benefit weavers.
The Union Cabinet chaired by Prime Minister Narendra Modi approved the pact at a meeting here.
As per the agreement, the participants will jointly identify appropriate measures to connect the Australian and Indian textile and fashion sectors; promote collaboration and international engagement between those sectors.
They will also nurture the skills and talents; promote economic opportunities and encourage professional engagement, training, skill development and public exhibition of products derived from these sectors in the two countries.
However, Intellectual Property Rights of either side will stand protected.
"The MoU will facilitate cooperation in relation to matters within the textiles and fashion sectors that may be of mutual interest and benefit to the participants," an official statement said.
"The weavers including ancillary workers will be benefited from activities to be taken under MoU," it added.
The initiative also aims to increase the handloom fabric production by establishing market linkages, encourage innovation in designs and techniques for improvement in design capability, diversification of product lines and value addition and provide better access to domestic and export markets so that weavers are able to get continuous employment and improve their living standards.
According to the statement, Australian fashion designers producing garments using Indian woven and other textiles for Indian and Australian market have evinced interest to work with stakeholders in India which includes cooperation with textiles, handloom sector with a view to provide state-of- the-art designing of textiles and handloom products and market them in India as well as international market.
The Department of Foreign Affairs and Trade (Government of Australia) had proposed to sign an MoU with the Ministry of Textiles in this regard.

Govt banks devise three-tier plan for bad loan resolution

Mumbai: A three-tier strategy is being evolved internally, according to four bankers who spoke on condition of anonymity.
Relatively smaller stressed accounts of less than Rs1,000 crore will be sold to asset reconstruction companies (ARCs), mid-sized cases of Rs1,000-5,000 crore will be resolved through the various RBI restructuring schemes and larger cases will be tried at the National Company Law Tribunal (NCLT) in accordance with RBI rules, according to the plan.
The need for a 360-degree approach to resolving the stressed asset cases comes as lenders want to ensure faster recovery from the stock of Rs10 trillion of stressed assets choking the banking system.
Earlier this month, RBI identified 12 large stressed accounts with outstanding debt of more than Rs5,000 crore to be referred to the NCLT. In other cases, the central bank asked banks to finalize a resolution plan within the next six months, failing which it will be filed for bankruptcy proceedings.
On Thursday, it announced the members of its oversight committee on bad loans and said this panel will also oversee stressed loans greater than at least Rs500 crore.
While RBI has kick-started the process, industry watchers say this is going to be a long-drawn process. Meanwhile, banks are keen on continuing the resolution process by referring eligible cases to various schemes such as strategic debt restructuring and scheme for sustainable structuring of stressed assets. Bankers said the involvement of the oversight panel would ensure that they can take higher haircuts, or sacrifice of the loan amount, without the fear of investigating agencies.
For other smaller cases, lenders have intensified their resolution efforts in the current quarter by clearing the old stock of non-performing assets (NPAs), a phenomenon which is usually seen in the fourth quarter of the fiscal year. Banks including State Bank of India, Andhra Bank, Allahabad Bank, and United Bank of India have already put on the block NPAs worth at least Rs8,500 crore, a majority of which are outstanding balance of less than Rs100 crore.
The final outcome of these sales will also help gauge whether the revised norms of the RBI, in effect since 1 April, are a deterrent for using the ARC route for bad loan resolution.
From the beginning of this fiscal, if a bank invests in more than 50% of security receipts created against the sale of its own stressed assets, it has to set aside more money as provisions. From 2018-19, this threshold of 50% will be reduced to 10%.
“Over a period of time, the redemption of these security receipts falls to nil as there is very little realization from the underlying assets of the company. Until then, banks have to keep higher provisions. So it’s best to sell smaller loans to ARCs,” said the executive director of a public sector bank, who is one of the four bankers cited above.
Given their capital position, most ARCs would also prefer smaller deals as they cannot afford an upfront cash payment of 50% for the underlying asset.
“If ARCs have no capital, then banks will have to look at bifurcating the NPA cases and selling the small accounts to ARCs while addressing the larger ones through the NCLT,” said Eshwar Karra, chief executive officer, Phoenix ARC, which manages Rs6,000 crore of stressed assets primarily in the small and medium enterprises.
According to a 2016 report by EY, the capitalization of all ARCs put together adds up to around Rs3,000 crore.

UP gets 70,784 more houses for urban poor under PMAY (Urban)

Karnataka gets 56,281 more; Andaman & Nicobar Islands get 609 first time
Ministry of HUPA approves 1,27,674 more houses with an investment of Rs.6,532 cr
Central assistance of Rs.1,915 cr approved for these new sanctions
New Delhi: Ministry of Housing and Urban Poverty Alleviation has approved construction of 70,784 affordable houses for the benefit of urban poor in Uttar Pradesh under the Pradhan Mantri Awas Yojana (Urban) with an investment of Rs.3,528 cr for which central assistance of Rs.1,062 cr has been approved.
Further to the discussion Minister of HUPA Shri M.Venkaiah Naidu held with the Chief Minister of Uttar Pradesh Shri Yogi Adityanath soon after assumption of office, the State Government sent affordable housing proposals for 145 cities and the same have been approved. Earlier, Uttar Pradesh has been sanctioned 41,954 houses including those approved under Rajiv Awas Yojana, which has been now subsumed under PMAY(Urban). With these latest approvals, the total number of houses sanctioned for Uttar Pradesh has increased to 1,12,738.
Of the 70,784 houses approved, 56,839 will be constructed under the Affordable Housing in Partnership component and 13,945 houses under Beneficiary Led Construction component of PMAY(Urban). Under these two components, central assistance of Rs.1.50 lakh is given to each beneficiary.
Under the latest approvals, Lucknow has got 1,525 houses, Gorakhpur-501, Ayodhya-500, Iltifatganj-903, Faizabad-769, Dudhi-765, Rudauli-713, Singahi Bhiraura-821, Chatra-783, Purdhinagar-674, Kanpur Dehat-442, Daurala-505, Sikandra-447, Akbarpur-449, Aliganj-511, Bareily-139 and Azamgarh-119.
Karnataka has been sanctioned 56,281 more affordable houses for 93 cities and towns with an investment of Rs.2,950 cr and Central assistance of Rs.844 cr.
Bengaluru has been sanctioned 8,291 houses, Bellary-1,613, Shivamogga-1,500, Chennapatna-1,450, Hubbali-1,300, Dharwar-1,292, Challakere-1,127, Kanakpur-1,163 and Sira-1,008.
For the first time, Andaman & Nicobar Islands has been sanctioned 609 houses for Port Blair with an investment of Rs.54 cr and central assistance of Rs.9.00 cr.
With these latest approvals, the total number of affordable houses approved for construction under PMAY(Urban) has increased to 20,95,718.

Govt to launch National Data Repository on June 28

New Delhi: The government will next week launch India's maiden National Data Repository (NDR) that will assimilate, preserve and upkeep country's vast sedimentary data for future use in oil and gas exploration and production.
Finance Minister Arun Jaitley and Oil Minister Dharmendra Pradhan will on June 28 launch the NDR, which will aid India to switch over to an open acreage licensing regime where companies can choose areas they want to explore.
At present, the government selects and demarcates areas it feels can be offered for bidding in an exploration licensing round.
Under the open acreage licensing (OAL), companies can visit NDR and look at vast seismic data of currently producing fields and explored areas as also those of unexplored areas, official sources said.
From the areas that are not under any licensee, they can then carve out an area suitable to them and evince interest in doing exploration and production.
Once an area is selected, the government will put it up for bidding and any firm offering the maximum share of oil or gas produced from the area would be awarded the block.
Sources said already a vast amount of data has been populated - over 9.3 lakh line kilometres of 2D seismic, 2.8 lakh square km of 3D seismic and 1,717 well data.
The NDR will be wholly funded by the government of India and housed with the Directorate General of Hydrocarbons (DGH).
It will have the ability to store data online, near line and offline, and provide independent web-based access.
The DGH, they said, has already begun sale of geophysical data of speculative surveys in east and west coast of India in 2005 and 2008.
The mammoth volume of data collected by E&P companies and other agencies over more than six decades of activities was hitherto lying scattered at different work centres of ONGC, Oil India and DGH or held by the operating companies.
This necessitated an establishment of a system at national level that could assimilate, preserve and upkeep the vast amount of data which could be organised and regulated for use in future exploration and development, besides use by R&D and other educational Institutes.
With this objective, the government initiated the establishment of the NDR.
The NDR is a government sponsored project with state-of- the-art facilities and infrastructure to create E&P data bank for preservation, upkeep and dissemination of data so as to enable its systematic use for future exploration and development.
The DGH being the agency of the central government will be responsible for creation, setting up and operation of the NDR.
Sources said the OAL will be beginning of a new era in oil and gas exploration and production.
Till now, the government has awarded 254 exploration blocks under nine rounds of bidding between 2000 and 2012.
Prior to that, 29 discovered fields were awarded to private and foreign companies.
Of the 254 blocks awarded under the New Exploration Licensing Policy (NELP) between 2000 and 2012, 156 have already been relinquished due to poor prospectivity.

FIEO sets export target of US$ 325 bn for this fiscal

New Delhi: With exports recording continuous growth, exporters body FIEO expects that the country's merchandise shipments would reach USD 325 billion this fiscal.
Federation of Indian Export Organisations (FIEO) President Ganesh Kumar Gupta also said while India is showing a positive trend on exports since the last nine months, there is a bit of anxiety in the business with regard to the Goods and Services Tax (GST).
"Indian exports have been on an upward trend in last few months with export of USD 275 billion in last fiscal and a target of USD 325 billion to achieve in 2017-18," FIEO said in a statement.
Further, it has organised an interactive session with Commerce Secretary Rita Teaotia in Kolkata.
Quoting the secretary, FIEO said, "GST is a well needed reform and the transition will require some time, and calibrated process of foreign trade policy will be continuous".
With regard to shipping lines overcharging, she stated that the Director General Shipping has been informed and they are waiting for a response from them.

Digital commerce in India to reach Rs 2.20 lakh cr by Dec'

New Delhi: The digital commerce market in India is pegged to grow to Rs 2,20,330 crore by December 2017, an industry report said today.
According to a report by Internet and Mobile Association of India and IMRB Kantar, digital commerce in India has grown at a CAGR of 30 per cent to reach Rs 1,68,891 crore by the end of December 2016.
"It is estimated to reach Rs 2,20,330 crore by December 2017," it added. This translates into a growth of 30.4 per cent.
The online travel market, which would continue to account for over half of India's digital commerce, is expected to touch Rs 1,18,598 crore by December 2017. This is over 24 per cent higher than Rs 95,198 crore registered last year.
The e-Tailing segment is expected to reach around Rs 94,964 crore by the end of this year, growing at about 59 per cent from Rs 59,876 crore in December 2016.
The report also stated that online utility payment (for services like DTH/telephone and electricity bills) would reach Rs 7,532 crore this year from Rs 6,277 crore last year.
Other online service market that includes online bookings done for entertainment, online grocery and online food delivery, is expected to reach Rs 4,587 crore in the said period.

Bank credit grows at 6.02%, deposits at 11.19%

Mumbai: Banks' credit growth grew at 6.02 per cent to Rs 76,58,212 crore in the fortnight ended June 9 from Rs 72,22,939 crore in the same period of fiscal 2016, according to the data released by RBI.
The growth in advances in the reporting period was slightly higher than the previous fortnight ended May 26, 2017, RBI data showed.
In the fortnight ended May 26, advances had grown by 5.08 per cent with an outstanding loans at Rs 75,93,546 crore.
In the fiscal ended March 31, 2017, credit growth had plunged to a multi-year low of 5.08 per cent with an outstanding loan at Rs 78.81 trillion as against Rs 75.01 trillion on April 1, 2016.
In the reporting fortnight, bank deposits grew at 11.19 per cent to Rs 105,77,947 crore from Rs 95,13,148 crore in the fortnight ended June 10, 2016.
Deposits in the fortnight ended May 26 had grown by 10.9 per cent to Rs 105,51,182 crore from Rs 95,14,087 crore in the period ended May 27, 2016, the data showed.

Sebi eases M&A norms for distressed firms

Mumbai: The Securities and Exchange Board of India (Sebi) relaxed some rules on Wednesday to hasten the resolution of stressed assets in bank balance sheets.
The regulator has exempted buyers of shares in distressed companies from the requirement of making an open offer even if the purchase triggers such an event under the takeover code, Sebi announced after its board meeting on Wednesday.
Under Sebi’s takeover norms, one of the triggers for an open offer is when an entity acquires 25% or more in a listed company. The entity then has to make an offer to buy an additional 26% stake in the company from the public shareholders.
Sebi said it has come across cases where lenders acquired shares in a distressed company but could not sell the stake to a new investor because the takeover norms proved restrictive and reduced the funds available for investment in the stressed firm.
This has triggered the need for additional relaxation, which is at present available only to financial creditors under the Reserve Bank of India’s (RBI’s) strategic debt restructuring (SDR) scheme. Indian banks are currently sitting on stressed assets of Rs10 trillion and last week, RBI identified 12 large accounts where it directed banks to initiate bankruptcy proceedings.
These exemptions, however, will need to be approved by a special resolution (at least 75% shareholders voting in favour). Secondly, the shares bought by the new investor will also be locked in for at least three years, Sebi said.
The regulator said it will grant similar exemptions for those firms which have got their resolution plans approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code.
“The new insolvency law allows insolvency professionals a lot of latitude to try different permutations and combinations to unlock the maximum value of a stressed company,” said Sandeep Parekh, founder of law firm Finsec Law Advisors. These would range “from a wipeout of existing equity and issue of new equity to banks to sale of a substantial stake to a strategic investor to a listed spin-off. If each stage of a multi-stage action plan triggers open offers and other Sebi regulatory costs, the unlocking of value to banks of their already distressed assets would come down”.
Secondly, the regulator also relaxed laws which will make it easier for private equity-backed firms to raise funds through new share sales. It has exempted category II alternative investment funds (AIFs) such as private equity and real estate funds from the mandatory one-year lock-in of shares when a company they have invested in goes for an initial public offering. Currently, category I AIFs such as venture capital and infrastructure funds are granted that exemption.
“This would bring about uniformity, ease of doing business and expand the investor base available for capital raising,” the regulator said in a statement.
A third set of announcements were related to proposals that will allow foreign portfolio investors (FPIs) easier access. The regulator said it was planning to allow more regions to grant FPI registration by including countries that have a diplomatic tie-up with India, simplify so-called broad-based requirements and relax ‘fit and proper’ rules.
An FPI is considered to be broad-based if it has at least 20 investors, with none of them holding more than 49%. However, if the broad-based fund has institutional investors, it is not necessary for the fund to have 20 investors, according to existing Sebi norms.
Sebi will soon float a discussion paper to introduce the new FPI norms, said chairman Ajay Tyagi.
However, the regulator continued to be tough on investments through participatory notes (P-notes). On Wednesday, it formalized its proposal (made in a discussion paper in May) to levy a fee of $1,000 on subscribers of offshore derivative investments (which typically involve P-notes).
The regulator said it is also in the process of reviewing norms for the equity derivatives market and plans to release a discussion paper.
“Retail investors are not fully aware of the risks involved in derivatives investment,” said Tyagi.
In the ongoing case of alleged violation of algorithmic trading norms by the National Stock Exchange of India Ltd, the markets regulator said it has issued show-cause notices to 14 key managerial persons of the bourse and will do its own investigation with the help of forensic auditors.
“We have also started an investigation to look into issues of possible connivance between NSE employees and brokers and unfair gains for brokers,” said Tyagi.
EY, which was appointed as the forensic auditor to prepare a report on NSE, will submit its report to Sebi in two weeks, said Tyagi.
Separately, in a circular, Sebi said it has allowed hedge funds to trade in the commodity derivatives market, subject to certain safeguards.