Setting up of Jute Manufacturing Unit to promote Jute #Sukumarbalakrishnan

The government is trying to promote jute manufacturing units by 100% mandatory packaging of food grains procured by State Procurement Agencies/FCI in jute bags.

The production of jute goods over the last few years by the jute mills has remained consistent. During the year 2017-18 and 2018-19, approximately 1,200 Thousand MT of raw jute per year was consumed by the mills to meet the demand of jute products, the details of which are as under:

mber of measures have been taken by the Government to modernise the jute mills established in the country, the details of which are as follows:

I. The Government has implemented Incentive Scheme for Acquisition of Plants and Machinery (ISAPM) to facilitate modernization in existing and new jute mills and for up-gradation of technology in existing jute mills. An incentive of 20% of the cost of machinery for jute mill and 30% for Jute Diversified Products (JDP) - MSME units is considered for reimbursement under the scheme, subject to a maximum of Rs 2.50 crore (US$ 0.36 million) per unit. Under this scheme, a subsidy amounting to Rs 49.71 crore (US$ 7.11 million) has been disbursed to Jute mills and JDP units during the period 2014-15 to 2018-19.



II. A Scheme for Research and Development for the textile industry including jute with a total outlay of Rs 80.00 crore (US$ 11.45 million) has been launched in 2015 by the Government for promotion of Research & Development, technology transfer and dissemination activities in textile sector including jute.

This information was given by the Union Minister of Textiles, Ms Smriti Zubin Irani, in written reply in the Rajya Sabha on 5th December.

More than 180 contracts valued over Rs 1,96,000 crore (US$ 28.04 billion) signed with Indian Defence Industry since 2014 #Sukumarbalakrishnan

The Ministry of Defence has signed more than 180 contracts valued at over Rs 1,96,000 crore (US$ 28.04 billion) with the Indian Industry since 2014 while a few are in the pipeline to be signed in near future.

A contract for manufacture of Frigates under Project P 17A was signed in February 2015 with Mazagon Dockyards Limited (MDL), Mumbai valued at Rs 45,000 crore (US$ 6.44 billion) while 02 Frigates under Project P1135.6 are slated to be manufactured by Goa Shipyard Limited (GSL) under a contract signed in Oct 2018 valued at Rs 14,100 crore (US$ 2.02 billion). Further, contracts for manufacture of 41 Advanced Light Helicopters for Indian Air Force (IAF) and 32 ALH for Indian Navy (IN) have been signed with Hindustan Aeronautics Limited (HAL) in March 2017 and Dec 2017 with a combined value of Rs 14,100 crore (US$ 2.02 billion). This is in addition to procurement of 14 Dornier 228 aircrafts from M/s HAL valued at Rs. 1100 crore (US$ 157.39 million) through a contract signed in February 2015.

Seven Squadrons of Akash Missile System are being procured from BEL through a contract of October 2019 valued at Rs 6,300 crore (US$ 901.42 million) as also the Integrated Advanced Command and Control System (IACCS) Nodes valuing Rs 7,900 crore (US$ 1.13 billion). OFB has been tasked to supply 464 T-90S/SK tanks worth Rs 19,100 crore (US$ 2.73 billion) for which indent has been placed on it by the Ministry as recently as November 2019. Also 100 Nos. of 155x52mm cal Self-Propelled Guns are being procured under the 'Make in India' initiative of the government from M/s L&T valued at Rs 4,300 crore (US$ 615.25 million). Also Contract for Modernization of Airfield Infrastructure (MAFI) to be executed through Indian vendors is under final stages of contracting.

Further, Services have also placed a number of contracts on the Private Sector vendors like Titagarh Wagons Ltd, Force Motors Pvt Ltd, Tata Power SED, Tech Mahindra Ltd, Tata Motor Ltd, Ashok Leyland Ltd, Bharat Forge Ltd, MKU Ltd, SMPP Delhi, Alpha Design for items like 1000 Tons Fuel Barges, Light Strike Vehicles, Portable Diver Detection Sonar (PDDS), RFID based SMART Card, 6x6 and 8x8 High Mobility Vehicle with Material Handling Crane, Dual Technology Mine Detector, Ballistic Helmet, Bullet Proof Jacket (BPJ) and Integrated Gunnery.

Three of the cases viz. P-75(I) Submarines, Naval Utility Helicopters (NUH) and 114 Fighter Jets for IAF, shown as stuck in the long-winded procedures are the cases which are being progressed under SP Model (a procurement procedure, which in itself has been promulgated in May 2017 as part of DPP-2016). However, even the cases under SP model have been processed expeditiously as evident from the fact that the responses to EOIs (Expression of Interest) have been received in respect of P-75(I) and NUH cases and are under final stages of selection while SQRs are being finalized in respect of 114 Fighter Aircrafts case.

In addition, under Make-II, 44 projects have been given approval. Under Innovations for Defence Excellence (iDEX). Forty plus startups are working in new technology-related products. Make-II and iDEX reflect new level of active engagement with industry where not only manufacturing but technology development for defence is being taken up.

Forex reserves hit a new high of $451 billion as of Dec 3: RBI governor #Sukumarbalakrishnan

As of 3rd December 2019, Foreign exchange reserves continued the upward journey growing to a new high of US$ 451.7 billion, Reserve Bank governor Mr Shaktikanta Das said on Thursday.

The governor added that since beginning of the current financial year, the forex kitty has gained by US$ 38.8 billion as of December 3 which is the largest in recent year.

In the week ending on 22nd November 2019, the total reserves rose by US$ 347 million to reach US$ 448.596 billion, as per the last reported number by the RBI.

For last few months the reserves have been continuously surging to new highs every week and crossed the US$ 450 billion mark for the first time.

Cabinet approves pact with Germany on Railways #Railways #Cabinet #Sukumarbalakrishnan

The Union Cabinet chaired by the Prime Minister Narendra Modi was apprised of the Joint Declaration of Intent (JDI) between India and Germany regarding cooperation on strategic projects in the field of Railways. The Joint Declaration of Intent was signed last month.

Benefits:

Joint Declaration of Intent (JDI) with the Federal Ministry for Economic Affairs and Energy of the Federal Republic of Germany will provide a platform to Indian Railways to interact and share the latest developments and knowledge in the field of Railways. The Joint Declaration of Intent (JDI) will facilitate exchange of information expert meetings, seminars, technical visits and implementation of jointly agreed cooperation projects.

Background:

Ministry of Railways have signed Memorandums of Understanding/ Memorandums of Cooperation/ Administrative Arrangements/ Joint Declarations of Intent for technical cooperation in the rail sector with various foreign Governments and National Railways in respect of identified areas of cooperation, which inter alia, include high speed rail, speed raising of existing routes, development of world class stations, heavy haul operations and modernization of rail infrastructure etc.

The MoUs/ MoCs/ AAs/ JDIs facilitate exchange of technical experts, reports and technical documents, training and seminars/ workshops focusing on specific technology areas and other interactions for knowledge sharing.

1303 Cold Storages with total capacity of over 45 lakh MT established in country since 2015

1303 cold storages with a total capacity of 45,62,860 Metric Tonnes (MT) have been established in the country under the schemes under Ministry of Food Processing Industries and Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) from 2015-16 to 2019-20 (as on 31.10.2019). This information was given by the Minister of State for Food Processing Industries Sh. Rameswar Teliin in a written reply in the Lok Sabha today.
Ministry of Food Processing Industries (MoFPI) is implementing Pradhan Mantri Kisan Sampada Yojana (PMKSY), which comprises of component schemes namely (i) Integrated Cold Chain and Value Addition Infrastructure, (ii) Mega Food Park, (iii) Creation of Backward & Forward Linkages, (iv)Creation / Expansion of Food Processing and Preservation Capacities (v) Agro processing Cluster and (vi) Operation Greens. Cold storages are established as a part of these schemes. The prospective entrepreneurs may apply against the Expression of Interest as and when floated by this Ministry.

Cold storages are also established through the schemes of Department of Agriculture, Cooperation & Farmers Welfare (DAC&FW) namely (i) Mission for Integrated Development of Horticulture (MIDH) for development of Horticulture in the country and (ii) Capital Investment Subsidy for Construction/ Expansion / Modernization of Cold Storages and Storages for Horticulture Products of National Horticulture Board.

L&T bags orders worth Rs 2,500 crore for its Transmission and Distribution and Transportation business #Business #Sukumarbalakrishnan

L&T Construction, an arm of L&T has bagged orders for its Transmission and Distribution and Transportation Infrastructure business.

According to L&T, these deals range from Rs 1,000-2,500 crore (US$ 143-358 million). The company has bagged a contract to provide off-grid DC solar photovoltaic water pumping systems with standalone lighting systems for farmers in the Aurangabad, Nashik and Pune revenue divisions in the power transmission segment, said the company. These systems will have segment for mobile charging, transfer of automated meter reading and water discharge reading data, it added.

The company has won an order in the United Arab Emirates for the design, supply and construction of a 132kV Substation project with connected 132kV cabling works from one of the government utilities.

The company secured an add-on order in its transportation infrastructure business from an existing client in Qatar for an Expressway. Moreover, many other add-on orders have been received by some existing projects in the Water and Effluent Treatment (WET) and Metallurgical and Material Handling (MMH) businesses, the company said.

Strong Customer Outreach by Public Sector Banks (PSBs) - Rs 4.91 lakh crore disbursed in October and November 2019 #PublicSectorBanks #Sukumarbalakrishnan

Smt. Nirmala Sitharaman, Union Minister for Finance & Corporate Affairs, had announced in September the launch of Customer Outreach Initiative by Public Sector Banks (PSBs) to improve credit delivery and support the needs of the economy, with particular focus on MSMEs, NBFCs, corporates, retail and agriculture sector borrowers, without compromising prudential lending. Customer Outreach in October 2019 resulted in total credit disbursement of Rs 2.52 lakh crore (US$ 36.06 billion).

Total Customer Outreach progress in November: The strong outreach effort of PSBs has continued in November as well, with disbursement of Rs 2.39 lakh crore (US$ 34.20 billion) to MSMEs, NBFCs, corporates, retail and agriculture sector borrowers. This has raised the total disbursement by PSBs to these sectors since the launch of the Customer Outreach in October to Rs 4.91 lakh crore (US$ 70.25 billion).

To boost the MSME sector, out of the total, PSBs have disbursed Rs 35,775 crore (US$ 5.12 billion) in November, raising the total Customer Outreach credit disbursed to MSMEs to Rs 72,985 crore (US$ 10.44 billion).

For NBFCs, out of the total, PSBs have disbursed Rs 25,525 crore (US$ 3.65 billion) in November, increasing sharply from Rs 19,628 crore (US$ 2.81 billion) in October, raising the total Customer Outreach credit disbursed to NBFCs to Rs 45,153 crore (US$ 6.46 billion). Total support sanctioned by PSBs in the form of credit to (including co-origination and on-lending) and pool buyouts from NBFCs since the IL&FS default in September 2018 till November 2019 has risen to Rs 4.23 lakh crore (US$ 60.52 billion), including pool-buyouts of Rs 1.24 lakh crore (US$ 17.14 billion).

FMCG sales on e-commerce sites to touch US$ 4 billion by 2022: Nielsen #FMCG #E-Commerce #Sukumarbalakrishnan

The sales of fast-moving consumer goods (FMCG) on the e-commerce sites are expected to reach US$ 4 billion by 2022, contributing 5 per cent to overall sales of packaged consumer goods sold in India, according to Nielsen, a market researcher.

Presently, e-commerce contributes 2 per cent or around US$ 1.2 billion to the overall sales of FMCG.

The rise in contribution of e-commerce to sales is because of growing smartphone penetration, increased data consumption, and the attempts by large companies to make their products available online.

Nielsen compared the two sales channel and noted that the contribution of modern trade to FMCG sales will reach 10 per cent by 2022, witnessing a growth from current 9 per cent whereas during the same period the share of traditional trade is will decrease to 85 per cent from the current 89 per cent.

The sales of FMCG products on the internet by various companies such as Hindustan Unilever, Dabur India Ltd, Nestle India, Godrej Consumer Products Ltd., among others has led the research company to start tracking the sales.

"India's FMCG industry is now making its presence felt in the e-comm channel - appealing to consumers' need for convenience, and in sync with increasing smartphone and internet penetration," said Mr Prasun Basu, South Asia Zone President, Nielsen Global Connect. "Nielsen India has launched a specific E-Trak index that will now measure FMCG consumer offtake in the e-comm space to give a complete picture of the changing marketplace", he said. The manufacturers and marketers can get data, information and insights with the help of E-Trax index and can further used it to enhance their e-commerce channel sales strategy.

As of now, Nielsen will track sales of 11 FMCG categories online in the top metros consisting of refined oils, biscuits, packaged atta, vermicelli and noodles, spices, iodised salt, salty snacks, washing powder, packaged tea, toothpaste and utensil cleaners.

In its initial research on the market, the company noticed that online shoppers in the country's top metros were showing higher cases of online shopping making 6 per cent of all FMCG purchases through e-commerce. Among these, the biggest contributor is foods contributing 44 per cent, followed by personal care (40 per cent) and household care (13 per cent).

Mr Mohit Malhotra, chief executive officer at New-Delhi based Dabur India Ltd said that e-commerce posted a growth of greater than 63 per cent, taking its overall contribution to sales to 2.2 per cent for the maker of Vatika hair oil and Real Juices. Earlier this year, the company also launched a range of children's hair care products which is available online only.

Last year, Nestle India the local arm of Swiss packaged goods company, first rolled out its breakfast cereals online. The popular brand Maggi was reintroduced on Snapdeal in 2015 when the crisis-hit brand made a comeback.

Though, Nielsen said that e-commerce is currently being used as an additional channel and not cannibalising other channels. "All channels continue to grow, buying behaviour differs across channels," the report added.

Wipro acquires South African personal care company #Wipro #Sukumarbalakrishnan

The consumer care business of software provider Wipro Ltd, Wipro Consumer Care and Lighting (WCCL), acquired Canway Corporation, a South African personal care maker to enter the country with 58 million consumer base.
Canway Corporation, a Durban-based company is US$ 21 million personal care company having portfolio in category including bath and shower, hand cream, body spray and kids' products and markets mass brands such as Oh So Heavenly, Iwori and IQ.

The deal size of the transaction was not disclosed by the companies and is now subject to the approval of regulatory authorities.

The acquisition will act as an opportunity for Wipro Consumer to enter into South Africa which is the largest personal care market in Africa and is the second largest economy of the continent.

"We are clear that we want a footprint in developing countries where we have a headway and penetration and consumption goes up. South Africa is a developing country with a per capita income of US$ 6300, which is three times that of India. Canway has grown double digit over the years. It gives us a tremendous base," said Mr Vineet Agrawal, chief executive at WCCL.

The company already has a small presence in South African market with its flagship soap brand Santoor. The company plans to evaluate its launch in India, after this deal, in terms of appealing packaging, perfume parameters and gifting by February.

The company had acquired Philippines’ personal care maker Splash Corporation for US$ 80 million in April. The acquisition of Singapore’s Unza Holdings in 2007 of worth Rs 1000 crore was the company's largest deal.

"We have spent US$ 950 million over the last 17 years on 12 acquisitions. This is the first time that WCCL has made two acquisitions this fiscal. The geographies are different, and we are equipped to handle two acquisitions in a year now."

After this deal, WCCL now has presence in India, South Africa, China, Malaysia and Philippines. The sale from international business accounted for nearly 51 per cent of Wipro Consumers' annual sales of a billion dollar in 2018.

"Post the Philippines acquisition in Splash in April, we roughly earned 54 per cent of our business from overseas. Since this deal is relatively smaller, we will remain at the same value," Mr Agrawal added.

The company plans to expand its presence in the markets of Africa, Asia, and Eastern Europe.

Total value of organic products exported from India is Rs 5150.99 crore in 2018-19: Shri Narendra Singh Tomar #OrganicProducts #Sukumarbalakrishnan

Government of India has been promoting Organic farming in the country through dedicated schemes namely Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development North Eastern Region (MOVCDNER) since 2015-16. Both the schemes aim at promotion of cluster/ Farmers Producer Organization (FPO) based chemical free, low input cost sustainable organic farming and support farmers from input procurement to market linkages.

The quantity of organic product produced during 2018-19 under Participatory Guarantee System-(PGS)-India and National Programme on Organic Production (NPOP) of Agriculture Processed Food and Export Development Authority (APEDA) is given at Annexure I. The total value of organic products exported from India is Rs 5150.99 crore (US$ 737 million) (for 614089.614 MT).

Assistance of Rs 50,000 (US$ 715) per hectare/ 3 years is provided, out of which Rs 31,000 (US$ 444) (62 per cent) is directly given to the farmers through DBT for inputs (bio-fertilizers, biopesticides, vermicompost, botanical extracts etc) production/ procurement, post-harvest management etc in PKVY scheme. Farmers adopt low cost Participatory Guarantee System (PGS) of certification for domestic markets.

Assistance of Rs 25000 (US$ 340)/ ha/ 3 years to farmers is provided for both on-farm & off-farm organic inputs, and seeds/ planting material in MOVCDNER and third party certified organic farming is encouraged for export of niche crops.

Organic Farming has also been supported under other schemes viz Rashtriya Krishi Vikas Yojana (RKVY) and Mission for Integrated Development of Horticulture (MIDH), Network Project on Organic Farming under ICAR.

The major thrust of the Government has shifted from production centric to market linked production so that farmers can get better returns for their produce including organic produce. To further boost production of organic produce, a dedicated web portal https://jaivikkheti.in/ has also been created to connect farmers involved in organic farming with consumers directly for better prices.