Meeting with PCC President on power shortage in the State and higher FSA charges

Mr. Devendra Surana, President, FAPCCI and Mr. M. V. Rajeshwara Rao, Secretary General called on Mr. Botcha Satyanarayana, President, Pradesh Congress Committee and Hon’ble Minister for Transport, Government of Andhra Pradesh, regarding the power shortage in the State and higher FSA charges and tariff prevailing in the State.  

The Minister appreciated the problems faced by the industry due to shortage of power and higher FSA and tariff, which have double-edged effect of debilitating the health of the industry.  It was informed to him that there is an immediate need to increase the generation and distribution of power in the State so that agriculture, industry and the service sectors will come out of the slow-down and pick up the momentum for the overall development of the economy of the State as well as to increase the job opportunities for the youth of the State, which is the primary focus and objective of the government.  

The Hon’ble Minister was also briefed about the recent ARR filings made by DISCOMs in which they proposed steep increase of tariff.  The increase is due to higher cross subsidy proposed to be levied on industrial consumers.  It was bought to the notice of the Minister that as per National Tariff Policy, the cross subsidy should not be more than 20%.  With cross subsidy, the proposed tariff for the industrial consumers is 160 per cent of average cost of service.  Thus cross subsidy is higher by 40 per cent and the burden on industry is exorbitant and industry will become gradually weak and its growth will be progressively stunted and with it the job opportunities to the youth of the State will decline causing frustration to the Youth.

The Hon’ble Minister appreciated this point and felt happy that this aspect was brought to his notice so that he may do his best to rationalize the tariff in a way that industry and common man will feel happy.

FAPCCI requested Union IT Minister to exempt Income Tax for IT SMEs-

Mr. Devendra Surana, President, FAPCCI requested  Dr. (Smt.) Killi Kruparani, Hon’ble Union Minister for IT & ITeS & Communications (State) to exemption of Income Tax for IT SMEs on January 28, 2013 at Lakeview, Somajiguda, Hyd. (L to R) Mr. Praveen Prakash, Secretary to Union Minister for IT & ITeS (State), Mr. Venkat, Asst Director, FAPCCI, Mr. Ashok Kumar Kedia, Chairman, IT Committee, Mr. Devendra Surana, President, FAPCCI, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI, Mr. Hari Govind Prasad, Chairman, Banking Committee, FAPCCI and r. Abhay Kumar Jain, Chairman, Direct Taxes Committee, FAPCCI. 

Mr. Devendra Surana, President, FAPCCI requested Dr. (Smt.) Killi Kruparani, Hon’ble Union Minister of State for Communications and Information Technology for exemption of Income Tax for IT SMEs on January 28, 2013 at Lake view guest house, Somajiguda, Hyd.

FAPCCI requested the Dr. (Smt.) Killi Kruparani, Hon’ble Union Minister of State for Communications and Information Technology to bring the IT SMEs under the Software Technology Park of India (STPI) to get exemption of Income Tax, and requested to recommend Finance Minister for the consideration in forthcoming budget.



Dr. Ashok Kumar Kedia explains the present situation in the State, particularly Power shortage and other problems faced by IT SMEs. 

Republic Day celebrations at FAPCCI

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) celebrated 64th Republic Day celebrations at FAPCCI on 26th January 2013. Mr. Devendra Surana, President, FAPCCI hoisted the flag on this occasion.

Mr. Srinivas Ayyadevara, Senior Vice President, FAPCCI, Mr. Shiv Kumar Rungta, Vice President, FAPCCI, Mr. Suraj Prasad Agarwal, Past President, FAPCCI, Mr. Ashok Kumar Kedia, Chairman, IT Committee, Mr. Shyam Sundar Pasari, Chairman, International Trade Relations Committee, Mr. Manoj Kumar Agarwal, MC Member and Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI were also present.

Mr. Devendra Surana while speaking on this occasion - emphasized that unity in diversity is the strength of Indian Nation. While undergoing difficult times the country could come out with flying colors, and show the whole world about the democratic strength of India.

On behalf of FAPCCI he also congratulated all the Padmba Vibhooshan, Padmabhushan and Padmasree award winners.

FAPCCI Ties hands with City of San Antonio, USA

The Federation of Andhra Pradesh Chambers of Commerce & Industry organized an interactive meeting with Ms. Elisa Chan, Council Woman, City of San Antonio, USA today January 23, 2013 at Federation House, Red Hills, Hyderabad. 

In this occasion FAPCCI and City of San Antonio, USA signed Memorandum of Understanding to foster friendship and pursue trade and investment opportunities.  

The City of San Antonio, USA and The Federation of Andhra Pradesh Chambers of Commerce and Industry(FAPCCI) congregate for the purpose of economic exchange designed for the mutual benefit of both cities; and Whereas, in order to foster those goals, the people of San Antonio and The Federation of Andhra Pradesh Chamber of Commerce and Industry in a gesture of friendship and goodwill, affirm their collaborative efforts in discussing economic development in the sectors of bio-technology and healthcare, information technology, automotive industry and higher education. 

Accompanying a high level delegation of top City of San Antonio, USA, Ms. Elisa Chan, Council Woman, City of San Antonio, USA stated that their main mission is to promote San Antonio as the destination of choice for investors and international trade.   

She mentioned that India is the world's second fastest growing economy, experiencing rapid urbanization and a growing consumer class. 

On this occasion, FAPCCI and City of San Antonio, USA signed a Memorandum of Understanding to foster friendship and pursue trade and investment opportunities in their respective economic regions by developing a friendly and cooperative relationship.  The MoU was signed by FAPCCI President Sri Devendra Surana and Ms. Elisa Chan, Council Woman, City of San Antonio, USA.  

Mr. Devendra Surana, President, FAPCCI, Mr. Kevin Wolff, Commissioner, Bexar County, Mr. Srinivas Ayyadevara, Senior Vice President, FAPCCI, Mr. Shyam Sunder Pasari, Chairman, International Trade Committee, FAPCCI and Mr. Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI have spoke at the occasion.

FAPCCI & AP Film Chamber meeting on “Service Tax” and related issues organized

Today the President and other important persons of Andhra Pradesh Film Chamber of Commerce, namely Shri Tammareddy Bharadwaja, President, Smt. Jeevitha Rajashekhar, Producer & Director, Shri K.S. Rama Rao, Producer, Shri Burugupally Shivaramakrishna, Producer come over to FAPCCI (The Federation of Andhra Pradesh Chambers of Commerce and Industry) to discuss on the Service Tax matters that are adding additional burden to Film Industry. Shri Devendra Surana, president, FAPCCI, Shri Srinivas Ayyadevara, Sr. Vice President, Shri Shiv Kumar Rungta, Vice President, Shri S. Tirumali, Advisor, Indirect Taxes Committee and Senior Advisor to Deloitte, Shri Abhay Kumar Jain, Chairman, Direct Taxes Committee has participated at this meeting.

 The Service Tax paid to artistes and others by producers are adding to the cost of film production to the extent of 12.36%. The introduction of Service Tax on various services was thought of in the context of bringing about GST regime in the Country. Once GST is in place the service tax paid to artistes in the process of film production will pass on to the ultimate customer that is cine-goer.  But in the absence of introduction of GST the service Tax is not getting passes on to the distributor and exhibitor and finally to the ultimate customer.

Further, the film industry is imposed an entertainment tax about of 15%, those the producer has to suffer the additional expense of Service tax, which is not at the movement a part of the CENVAT. There four it was suggested to make a representation to the Central Government to differ the Service Tax, till such time as GST is introduced. Alternatively it was also suggested to make a representation to the Central Government to give an abatement of 60% of the cost of production of film and levy tax only on the balance 40% of the cost of production of the film. The members of film industry felt very happy about these suggestions, and requested FAPCCI to represent this matter before the Central Government for deferment of Service Tax and / or abatement of cost of production.  

Investments in Mutual Funds will give more profit than the Gold: Mr. Deepak Chatterjee – MD & CEO, SBI Mutual Funds

The FAPCCI in association with Bombay Stock Exchange jointly organized an interactive session on “Mutual Funds - Promises for the Future” January 19, 2013, 3pm - 7pm at Federation House, Red Hills, Hyderabad. Mr. Deepak Chatterjee – MD & CEO, SBI Mutual Funds was the key speaker at the session.

Mr. Devendra Surana, President, FAPCCI, Dr. RMCV Prasada Rao - Alternate President, ANMI & M.D., RLP Securities Pvt. Ltd, Mr. Brahmaprakash Singh – ED & Chief Investment officer Equity Pramerica Asset Managers Private Ltd, Mr. Nimesh Mehta – Senior Vice President & Sales Head, Motilal Oswal AMC Ltd, Mr. Prashanth Shrimal – CEO M/S PCS Securities Ltd, Mr. Ganta Raghavender – Regional Head, Reliance Capital Asset Management, Mr. C.Kutumba Rao – Market Analyst, Prime India Securities, Mr. B. Amarnatha Sastry – Director Saaketa Consultants Ltd, Mr. Ch Jagadeshwer Rao – Director, Chairman, ANMI- AP Chapter, Mr. Meela Jayadev, Chairman, Capital Markets Committee, FAPCCI, Mr. Kripa Niwas Sharma, Co-Chairman, Capital Markets Committee, FAPCCI, Mr. Ramakanth Inani, Capital Investment Advisor, Mr. D.G. Sukumaar – Market Analyst, Fortune Financial (India) Ltd and Mr. Shiva Prasad Venishetty – Regional Manager, CDSL, Hyderabad were the key speakers at the session.

Meeting Of the Delegation of Government Officials and FAPCCI with the RBI Governor Shri Dr. D. Subba Rao

Meeting Of the Delegation of Government Officials and FAPCCI

with the RBI Governor Shri Dr. D. Subba Rao,

on “Financial Problems faced by MSME Sector”

ON 17.01.2013 AT MUMBAI

As a follow up of the letter written by the Hon’ble Chief Minister of Andhra Pradesh to the Governor of RBI, delegation of officials consisting of Sri K. Pradeep Chandra, IAS.,  Principal Secretary & C.I.P., Industries & Commerce Department and Sri Sabyasachi Ghosh, IAS., Secretary to Government, (Food Processing and MSME,  of Government f Andhra Pradesh and the delegation of FAPCCI led by President  Sri Devendra Surana, Secretary General Sri M. V. Rajeshwara Rao, Members of the Managing Committee of FAPCCISri V. Anil Reddy, Sri Harigovind Prasad met the Governor of RBI on 17.01.2013 and represented the financial problems being faced by the MSME Industries of Andhra Pradesh in view of the unique situation in Andhra Pradesh.  

The delegation requested the RBI Governor to take a sympathetic view of NPA provisioning and for restructuring of bank loans of the SSI Sector, which is under stress.  The delegation also brought to the attention of the Governor of RBI about low coverage of the CGTMSE Scheme in Andhra Pradesh.  The Governor of RBI gave a patient hearing and said that the Deputy Governor of RBI has recently held a meeting about rescheduling of loans to the MSME Sector and decision for this meeting would help the MSME Sector in Andhra Pradesh also.  

The Governor RBI assured the delegation that RBI would monitor to increase the coverage  of the CGTMSE scheme in Andhra Pradesh.

Talk on “Public and Social Innovation: New Approaches to Old Problems”

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association with Institute Indian Institute of Economics organizing an Talk on “Public and Social Innovation: New Approaches to Old Problems” on January 17, 2013 at Federation House, Red Hills, Hyderabad. Dr. Peter Roger Shergold, Former Adviser to the Prime Minister of Australia was the key speaker at the session.

Mr. Srinivas Ayyadevara, Senior Vice President, FAPCCI, Mr. Shiv Kumar Rungta, Vice President, FAPCCI, Mr. David Holly, Consul General of Australia, Mr. Ramakrishna Dastyrala, Australian Embassy Officer, Mr. V.K. Srinivasa, Director, Indian Institute of Economics are the other speakers at the session.

“HarithOn” Mega Green Run on February 17, 2013

Planet 3 Protection Alliance, AP Pollution Control Board and FAPCCI in association with HMDA, TNR Estates Pvt Ltd, ITsAP, ANGRAU, FICCI, JNTU, GITAM, Water Health India, NAIP, British Deputy High Commission, AMCHAM, Hyderabad Traffic Police organizing “HarithON” Mega Green on February 17, 2012 at People’s Plaza, Necklace Road, Hyderabad.

Mr. Devendra Surana, President, FAPCCI, Dr. ARK Prasad, Director, JNTU, Hyderabad, Mr. R. Kantha Rao, P3PA, Mr. J. Devi. Prasad, Promoter, TNR Estates Pvt Ltd, Dr. Sharada Devi, Principal Consortium, NAIP, Prof. Ch. Sanjay, Director, Gitam University Hyderabad, Mr. Akhilesh Mahurkar, Director, Director, FICCI AP Council, Brig. (Retd) K. Hari Kumar, Executive Director, Ex-Officio Member, ITsAP, Mr. Ketan Ravindra Hastak, Water Health India, Mr. J. Devi. Prasad, Promoter, TNR Estates Pvt Ltd and Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI were the other speakers at the occasion.

Mr. Devendra Surana, President, FAPCCI released the Poster of HarithOn – Green Run, and he said that Planet 3 Protection Alliance, AP Pollution Control Board and FAPCCI in association with HMDA, TNR Estates Pvt Ltd, ITsAP, ANGRAU, FICCI, JNTU, GITAM organizing HarithOn mega green run with 10,000 participants on February 17, 2013 at People’s Plaza, Neck lace road, Hyderabad. In this occasion he felt that every citizen should adapt green life style and eco friendly ways for sustainable growth. Industrialists and industrials should take green initiatives and support green planet, through plantation in their respective premises. 

Dr. ARK Prasad said that everybody should protect Mother Nature; otherwise we face very difficult situations in the future. Currently we purchasing water, if this degradation of environment continues in a same manner it might lead to a condition where we have to buy air to breath.

Dr. Sharada Devi stated thet the textile industry is the major contributor for the environmental pollution, and stress the importance of using natural colours instead of synthetic colour to protect nature.

Mr. R. Kantha Rao, P3PA requested citizens of Hyderabad to participate in this green run. For more details can contact 9966956840, 8125845215. Visit www.p3pa.org.in. 

Camp Office of the Bench of Income Tax Settlement Commission will be set up soon at Hyderabad

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association with Institute of Chartered Accountants - Hyd Chapter & The Andhra Pradesh Tax Bar Association organized interactive Meeting with Mr. Kamlesh Argal, IRS, Vice Chairman – Chennai Bench, Income Tax Settlement Commission on January 10, 2013 at Federation House, Red Hills, Hyderabad.

Ms. Nivedita Biswas, Director of Investigation Income Tax Settlement Commission, Mr. Devendra Surana, President, FAPCCI, Mr. K.C. Dev Das, Chartered Accountant, CA. Dayakar Gelli, Chairman- ICAI- Hyderabad Chapter, Mr. U L N Sudhakar, President, The A.P. Tax Bar Association, Mr. Srinivas Ayyadevara, Senior Vice President, FAPCCI, Mr. Abhay Kumar Jain, Chairman, Indirect Taxes Committee and Mr. Kalyan Das, Chartered Accountant also spoke at the occasion.

Mr. Kamlesh Argal, IRS, Vice Chairman, Income Tax Settlement Commission announced that Camp Office of the Bench of Income Tax Settlement Commission will be set up soon at Hyderabad for the convenience of Assessees of AP.

Mr. Argal stated that Settlement Commission is an independent body and it comes under Department of Revenue.  The Income Tax Settlement Commission (ITSC) is an Alternate Disputes Resolution (ADR) mechanism for resolving tax disputes relating to Direct Taxes. At present, seven benches of the Settlement Commission are operational at New Delhi - 3, Mumbai -2, Kolkata – 1 and Chennai - 1, respectively. 

The Commission was constituted w.e.f. 01.04.1976, on the recommendation of the Wanchoo Committee (1971). The Committee conceived the Commission as a mechanism for providing room for settlement and compromise for one-time tax evaders or unintending defaulters. The Commission reduces litigation in respect of an applicant for several years relating to proceedings of various natures, such as assessment, penalty, prosecution, tax collection, etc. Each such proceeding before an Assessing Officer of the Income Tax Department is appealable before Commissioner (Appeals) and later before the Income Tax Appellate Tribunal and where it involves question of law, even up to High Courts and the Supreme Court. 

Later in 1996, a review of the mechanism of the Settlement Commission was done by a committee led by Justice Duggal, which found that the Commission has been substantially successful in achieving the objects for which it was set up.

This commission comprises persons of integrity and outstanding ability, having special knowledge of and experience in, problems relating to direct taxes and business accounts.

The Settlement Commission consists of a Chairman, Vice-Chairmen and Members. However, the number of Vice-Chairmen and members in the Settlement Commission is decided by the Central Government. Prior to 1.6.2007, there was no time limit prescribed for the Commission for passing the settlement order. Now the time limit is 18 months in respect of applications filed after 1.6.2010. The Settlement Commission disposes of several proceeding for several assessment years in respect of an applicant conclusively within 18 months. Its orders are final and conclusive. In regular channel of assessment and appeal for each such proceeding, it may routinely take at least 5 years for each such proceeding to conclusively end.

Ms. Nivedita Biswas, Director of Investigation, Income Tax Settlement Commission - Chennai Bench in her address stated that, who have come with the income tax related problems to Settlement Commission, they went away with the happiness. 

Supervisory management plays vital role in organizational development

The Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) organized a workshop on “Supervisory Management Skills” on January 03, 2013 at FAPCCI, Hyderabad.

Mr. Vijay Ketan Mitra, a Certified Leadership Coach, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI, Mr. Venkata Ramana, Director, Positive Shift International have participated at interactive workshop.

Mr. M.V. Rajeshwara Rao addressing a workshop supervisory management skill will play vital role in the organizational development, and for individual’s growth in their professional life.

Mr. Vijay Ketan Mitra said that the now the time has come to change an individual from boss to leader.