Tuesday, December 27, 2011

FAPCCI Meeting with Chief Minister on Power Problems

The president of FAPCCI, Sri V. S. Raju, along with Sri Devendra Surana, Sr. Vice President, Sri V. Anil Reddy, Chairman, Energy Committee, Sri Arun Kumar Dukkipati, Managing Committee Member, and Sri M. V. Rajeshwara Rao, Secretary General met the Chief Minister today. Sri Raju appraised the CM that the industry has suffered a production loss of Rs. 31,750 crore on account of 40 percent power cut it had in the last 14 weeks and that many industrial units have become sick and many are on the verge of sickness. He emphasized that it was not just the loss of production and consequent financial loss alone that is causing concern to FAPCCI but the loss of jobs, thousands and several thousands of them, is a major concern to FAPCCI. Many micro and small industrial units are in hapless condition and many medium and large industries are running into serious financial difficulties. Cumulatively the good image of Andhra Pradesh as preferred destination for investments is getting affected.

He brought to the notice of the chief Minister that in coming months of January to May the power shortage scenario is going to be further worse with shortages rising to such high levels as 20 to 40 percent. With these expected shortage of power the industry would suffer a perilous loss of Rs. 70,000 crore or more in the coming five months, adding further economic and human distress (on account of increasing job losses) in the State.

Sri Raju impressed on the Chief Minister that there is an urgent need to make all out efforts to have more power made available to the industry and save it from deceleration and decline and from virtual collapse.

Making a power point presentation Sri Surana brought to the notice of the Chief Minister that all these 14 weeks the average energy shortage was only 10 to 12 percent but the industry suffered a high power cut of 40 percent and requested the Chief Minster to see that the productive sector like industry should not be imposed a power cut more than the average power shortage. He also brought to the notice of the Chief Minister that there are lot of delays in disbursing the power subsidies, investment subsidies, and tax incentives to industry. He took up the issue of 5% vat charged to solar power sector, whereas in the States like Tamilnadu, Maharashtra, Jammu & Kashmir and Orissa there is no vat on solar power and requested the Chief Minster to look into removing the delays in disbursement of incentives and subsidies and removing of vat of 5% on the solar power sector.

The Chief Minister was quite appreciative of the problems being faced by industry and told the delegation that it is not only in the interest of industry alone that the government needs to do all things possible to have more supply of power to industry. It is in fact in the interest of the government also it needs to do its best it is industry that gives more revenues to the exchequer. He said that he had a very high level review meeting yesterday and has given instructions to buy power. He said that two power plants are going to be restored and that the industry will be then saved from power cuts to a large extent and that from 25 December the power cut will be reduced to one day only. He assured that he would pay personal attention to review the power situation on a regular basis and assured the delegation he would give necessary instructions to ease the problem of power shortage to the industry as well as to other consumers in the State.


West Africa inviting investments into Tourism & Infra sectors-

The Federation of Andhra Pradesh Chambers of Commerce & Industry in association with Panafrique, West Africa organized seminar on “Indo-West African Trade” on 22nd December 2011 at Surana Udyog Auditorium, Red Hills, Hyderabad. Mr. S. Ganapathee, Consultant, Panafrique was the chief guest for the occasion.

Mr. V.S. Raju, President, FAPCCI, Mr. Shyam Sunder Pasari, Chairman, International Trade Committee, FAPCCI, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI are the other speakers at the occasion.

Mr. S. Ganapathee, Consultant, Panafrique said Africa, particularly West Africa is good investment destination for business operators around the world because, and it gives significant return on investment. The population of West Africa is about 300 million; closer to the population of the United States of America, and this is a big market for investors. Africans have very strong entrepreneurial spirit because its population is young and has potential for growth. The West Africa has been consistently showing an annual growth rate of almost 5%, and today the continent has an urbanization level almost as high as China, with 52 cities of more than one million people. Collective GDP in 2008, for example, was in the region of $1,600 billion; as much as Russia or Brazil. According to EFPR Global, the first half of this year has African regional funds attract inflows of over $484 million, and total investment fund allocation to African countries was a record $1.39 billion. The West African Monetary Board -Ghana, Gambia, Guinea, Nigeria, Sierra Leone and Liberia, they are all democratic governments and they always welcoming the investors to invest in Tourism, Mining, Infrastructure and many other sectors.

Mr. V.S. Raju said in his welcome address is that the Indo-West Africa relations have traditionally been warm and friendly. The year 2010 has been an eventful year for India-Africa Relations at bilateral, regional and multilateral levels. India has undertaken a series of important initiatives as also institutional framework to create an enabling trade and business environment to facilitate and enhance bilateral and commercial trade with the African countries. The key programs guiding these initiatives include Focus Africa program, India Brazil South Africa Trilateral Commission, Techno-Economic Approach for Africa India Movement, India-Africa Project Partnership Conclaves, etc.

India’s relations with the countries of West Africa continued to grow during 2010, with several important visits and meetings on the sidelines of international multilateral conferences. The Ministry’s flagship project of Pan-African e-Network was implemented in 12 more countries during the year, thus taking total number of African countries coming under the loop to 43. Several Lines of Credit were extended and grant-in-aid given to the West African countries for development of infrastructure and also to help in rehabilitation process following natural disasters. India-West Africa trade during the year 2009-2010 was US$18.04 billion, an increase of 9.7% over the previous year Mr. Raju said.

Mr. Syam Sunder Pasari said that the West Africa possesses a rich resource base, especially oil and mineral resources, which can be exploited to enhance regional integration and growth.

Indo-German bilateral trade increased to 15.44 billion Euro’s

The Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) in association with GloMan Consulting GmbH, Hamburg, Germany jointly organized a seminar on “Business Opportunities in Global Markets” on 21st December 2011 at Surana Udyog Auditorium, Red Hills, Hyderabad. Mr. Gopi V. Prasad, MD, GloMan Consulting GmbH, Hamburg, Germany was the chief guest for the occasion.

Mr. Srinivas Ayyadevara, Vice President, FAPCCI, Mr. Shyam Sunder Pasari, Chairman, International Trade Committee, FAPCCI, Mr. A.S. Kumar, Deputy Secretary General, FAPCCI are the other speakers at the occasion.

Mr. Gopi V. Prasad said in his key note address is that the Germany is India’s largest trading partner in Europe. Indo-German bilateral trade has registered an increase of 17.08% to reach Euro 15.44 billion during 2010. Indian exports grew over 21.46% over the same period of 2009 to reach Euro 6.19 billion, while its imports registered an increase of over 14.32% to reach Euro 9.25 billion. The trade surplus is in favor of Germany of about Euro 3.07 billion. Both countries are confident that the target of achieving bilateral trade of Euro 20 billion by 2012 can be met. India ranks at the 28th position amongst trading partners for Germany worldwide. India accounts for 0.7% of total German trade and ranks 5th among Asian exporters to Germany. Germany is also the 8th most important destination for Indian exports. While major items of exports from India to Germany are cotton and textile products, leather and leather products, chemicals & pharmaceuticals, metal products and automobile components, the key imports in India from Germany include machinery, electro-technical goods, aircrafts, metal goods, chemicals, measurement and control systems, synthetic materials etc. Cooperation in the field of Information Technology, Biotechnology, Auto Components, Renewable Energy and the Entertainment Industry is also increasing.

German investments in India have shown a steep increase in the past three years. Germany was the 8th largest investor in India, with cumulative FDI from Germany during the period August 1991 to February 2011 amounting to US$ 3.83 billion. Sectors such as services, chemicals, automobiles, trading and electric equipment were main sectors for German investment. Germany's leading news magazine Der Spiegel has cited India as the No.1 destination for offshore development by German software companies. Indian investment in Germany has also increased in recent years. The IT sector continues to be the best represented in terms of foreign direct investment Mr. Prasad said.

He said that according to FDI Markets, India has initiated 40 projects in Germany since 2003, 20 of which are in the software and IT sectors. Indian companies either acquiring firms or starting their own subsidiaries in Germany include Ranbaxy, Samtel, NIIT, Wockhardt, Graphite India Limited, Megasoft, Torrent Pharmaceutical, Dr. Reddy's Laboratories, Tata Auto Component Systems, Mahindra & Mahindra etc. Indian companies in Germany employ nearly 24,000 people, most of whom are German nationals, thereby adding to the job opportunities in Germany.

Mr. Srinivas Ayyadevara said in his welcome address is that the Indo-German cooperation in the field of trade and economics is one of the most dynamic facets of the bilateral partnership. The Joint Commission on Industrial and Economic Cooperation led by the Finance Minister from the Indian side and the Economics Minister from the German side meets regularly. In addition, there are seven Joint Working Groups, namely, on agriculture, automobile, infrastructure, energy, coal, tourism and vocational education which focus on furthering collaboration in specific sectors. The Indo-German Energy Forum deals with renewable energy, energy efficient technologies, power sector, alternative fuels and CDMs. Around 4500 Indian students are pursuing various courses in Germany, while around 800 German students are studying or doing their internships in India. Many Indian students are opting for Engineering and Management courses in German Universities on a self-financed basis. Some German companies like Siemens and Bosch offer scholarships for Indian students to undertake postgraduate courses in German universities under the DAAD programs. Thus, there is a scope for further cooperation in this sector.

There are about 68,000 Indians in Germany. Of these, about forty thousand hold Indian passports, while the rest have acquired German citizenship over the years. The Indian diaspora mainly comprises of technocrats, small time businessmen/traders and nurses. There are a number of Indian organizations and associations active on the business/cultural front, cementing ties between India and Germany at the people-to-people level Mr. Srinivas said.

Mr. Syam Sunder Pasari said that the Germany is the most populous country in Europe and contributes to 23 % of the EU budget. It is India’s biggest trading partner in Europe and the 5th biggest trading partner in the world. Germany is also India’s second largest technology partner. India was amongst the first countries to recognize Federal Republic of Germany (FRG) after the Second World War. There has been a rapid growth in trade and economics with bilateral trade reaching Euro 15.44 billion in 2010. The two countries also work together in various international forums including the UN, G-4 and G-20. In 2011-12, India and Germany are both non-permanent members in the UNSC, which provides a new area for cooperation.

Saturday, December 17, 2011

Eco Run “HarithOn” on 19th February 2012

The Planet 3 Protection Alliance in association with The Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) & The Department of Tourism, Government of Andhra Pradesh jointly organized a Poster launching program on forthcoming Eco Run “HarithOn” on 17th December 2011 at Surana Udyog Auditorium, Red Hills, Hyderabad. Mr. Jayesh Ranjan, Secretary, Dept. of Tourism, Govt of AP was the chief guest for the occasion.

Mr. V.S. Raju, President, FAPCCI, Mr. Srinivas Ayyadevara, Vice President, FAPCCI, Dr. Sharada Devi, Dean of Home Science, ANGRAU, Mr. Harischandra Prasad, MD, Lakshmi Finance Limited, Mr. Kantha Rao, P3P Alliance, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI and Mr. A.S. Kumar, Deputy Secretary General, FAPCCI are the other speakers at the occasion.

Mr. Jayesh Ranjan in his keynote address said that the Environment is just like window to the soul of Mother Earth and our humans should protect the Mother Earth. He also said that the youth play an important role in the society. Due to the usage of non degradable material such a plastic there is serious threat to the living of human beings and other species. He requests the students, government, non government and NGO organizations to participate in forthcoming eco run “HarithOn” will takes place on 19th February 2012.

Mr. V.S. Raju said that we are all connected and we make little footprints on this world for a big impact. We cannot change the world by ourselves, but together we can do a lot! So I am happy we made some impact today. We don’t have to struggle to make this world a better place. We can connect our energy, have fun and with that we can help others. It’s easier than we think!.

Friday, December 16, 2011

Sate Level Seminar on “Food Processing Industry: Opportunities’ & Challenges”

The Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) & New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) jointly organized a Sate Level Seminar on “Food Processing Industry: Opportunities’ & Challenges” on 16th December 2011 at Surana Udyog Auditorium, Red Hills, Hyderabad. Mr. P. Mohanaiah, Chief General Manager, National Bank for Agriculture and Rural Development (NABARD) was the chief guest for the occasion.

Mr. V.S. Raju, President, FAPCCI, Padmasri Dr. M.V. Rao, President, Agri-Biotech Foundation, Mr. K. Purnachandra Rao, Principal Scientist, ICRISAT, Dr. A. Satyanarayana, Scientist &Head, CFTRI, (RC), Dr. J. Dilip Babu, Prl. Scientist, Horticulture University, Dr. Anurag Chaturvedi, Professor, Home Science College, Mr. Ravindra Modi, MD, Hyderabad Food Products Pvt. Ltd, Mr. K. Bhaskar Reddy, Chairman, Agricultural Development Committee and Mr. A.S. Kumar, Deputy Secretary General are the other speakers at the occasion.

Mr. P. Mohanaiah in his keynote address said that the food-processing industry has been registering good growth since the past few decades. The annual rate of growth of net value added of agro-industries at constant prices increased from 4.12 percent during the pre-reform period to 6.62 percent during the reform period. The value addition of food fortification is only seven percent in the country compared to as much as 23% in China, 45% in the Philippines and 188% in the U.K. Only two percent of the fruits and vegetables are processed in India. This is against a processing of 30% in Thailand, 70% in Brazil, 78 percent in the Philippines and 80 percent in Malaysia. The Government of India targets to bring it to 25 percent by 2025. The ten percent target would call for an investment of Rs. 1,40,000 crores. This is supposed to create employment to 77 lakh persons directly and another 3 crores of people indirectly in the country. The post harvest losses in fruits and vegetables are estimated to be Rs.50000 crores at the national level and Rs 2500 crores in the state. Food processing industries have a crucial role to play in reduction of post harvest losses. The most important point in the food industry is that a substantial portion being rural based it has a very high employment potential with significantly lower investment. The fruits and vegetable farming for processing is not only employment intensive, but also enhances the gross as well as net returns of the farmers. Further, agro-industry generates new demand on the farm sector for more and different agricultural outputs, which are more suitable for processing. On the other hand, the development of these industries would relax wage goods constraint to economic growth by enhancing the supply of their products.

Mr. V.S. Raju said that the Food processing industry is of enormous significance for India`s development as it has linked economy, industry and agriculture in India, efficiently and effectively. The three pillars being together have synergized the development process and promoted the growth of the nation to great extents. There are 25,367 registered food processing in the country whose total investment capital is Rs.84,094 crore as per a competitiveness Council. The food processing sector is presently growing an average rate of 13.5% per annum. The vision document 2015 envisages increasing the value addition from 25% to 35% by 2025.

Mr. K. Bhaskar Reddy in his introductory remarks said that Andhra Pradesh has enormous potential to develop food processing. It will catalyze the rural economy, reduce wastage of farm produce, spur growth, generate employment, increase returns of the farmer and create incomes in semi-rural areas. However food processing industry is an unusually underdeveloped industry in India and also in Andhra Pradesh. Radical changes in spending habits and rising incomes have resulted in consumer tastes shifting from cereal towards fruits, vegetables, processed foods, and milk and milk products. Changed lifestyle demanded hygienic, natural and ready for consumption kind process.

Mr. Bhaskar Reddy said that fruits and vegetables is one of the most important and fast growing subsectors of the food processing sector. There are abundant investment opportunities in expanding the export market for fruit juices and pulps, dehydrated and frozen fruits and vegetable products, tomato products, pickles etc. Good international demand for certain fruits and vegetable products also. The Indian food processing industry is primarily export oriented. Some of the Key Opportunities in Food Processing Sector are Process able varieties of crop, Contract farming, Investments in infrastructure through Public Private Partnership, Food Parks, Integrated cold chain, and Food Safety Management Systems.

The challenges for the food preservation, distribution and processing sectors are diverse, demanding and need to be address on several fronts to derive maximum market benefits. In the emerging scenario, the food engineering professional needs to develop sufficient awareness and appreciation of the relevant principles of life sciences, and physical sciences as well as wide variety of other topics ncluding nutrition. Preservation and storage technique, bio-processing, waste management, distribution and supply chain management of food laws and regulations and soon Mr. Reddy said.

Industrial sector is a major energy-consuming sector

The Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) & New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) jointly organized a Workshop on “Energy Conservation in Industrial Sector – A New Perspective” on 15th December 2011 at Surana Udyog Auditorium, Red Hills, Hyderabad. Mr. Chandan Mitra, IFS Vice-Chairman, NREDCAP was the chief guest for the occasion.

Mr. V.S. Raju, President, FAPCCI, Mr. J.K. Chakravarthy, Additional Director, REC, Mr. Rammohan, General Manager, NREDCAP, Mr. R. Virendra, Regional Director, NPC and RPMG, Hyderabad, Mr. Harsha Yadav, Efficient Carbon Management Solutions (LLP), Mr. John Williams, Director - Sales & Marketing Thrive Energy Technologies Pvt Ltd, Mr. P.Seshadri, MD and CEO, Organization Development Consultants, Mr. V. Anil Reddy, Chairman, Energy Committee, FAPCCI and Mr. A.S. Kumar, Deputy Secretary General are the other speakers at the occasion.

Mr. Chandan Mitra in his keynote address said that the industrial sector is a major energy-consuming sector in India and uses about 50% of the total commercial energy available in the country. With the present situation of energy crisis, fossil fuels (coal, oil & natural gas) potential is unable to meet the current energy demands and as we know that energy is the life line of growth in any economy that’s why energy saving is very important. Our country’s per capita energy consumption is 325.1 million tones oil equivalent which is very low as compared to the industrialized countries but the energy intensity is very high. We can easily narrow the gap between demand & supply and decrease the energy intensity in each sector by simple approach towards energy conservation and efficiency through energy efficient technology and housekeeping habits. In India major energy intensive sectors which are as follows having an average potential of 20 – 25% of energy savings. The sector wise saving potential would be Industrial (up to 25 %); Agriculture Sector (up to 30 %); Transport, Domestic Commercial and Municipal Sector (<20 %).

Mr. V.S. Raju said that the development is necessitating growing consumption of energy for economic activities. If India is to achieve the targeted growth in GDP, it would need commensurate input of energy, mainly commercial energy in the form of coal, oil, gas and electricity. However, India’s fossil fuel reserves are limited. Energy being an important element of the infrastructure sector has to be ensured its availability on sustainable basis. On the other hand, the demand for energy is growing manifold and the energy sources are becoming scarce and costlier. Among the various strategies to be evolved for meeting energy demand, efficient use of energy and its conservation emerges out to be the least cost option in any given strategies, apart from being environmentally benign.

Mr. V. Anil Reddy in his introductory remarks said that on the energy demand and supply side, India is facing severe shortages. 80 to 85% of the total petroleum product demand is being met by imports, imposing a heavy burden on foreign exchange. Country is also facing Peak power and average energy shortages. Further, the per capita energy consumption in India is too low as compared to developed countries, which is just 4% of USA and 20% of the world average. The per capita consumption is targeted to grow to about 1000 kWh per year by 2012, thus imposing extra demand on power system. Recognizing the fact that efficient use of energy and its conservation is the least-cost option to mitigate the gap between demand and supply, Government of India has enacted the Energy Conservation Act – 2001 and established Bureau of Energy Efficiency. The EC Act provides for institutionalizing and strengthening delivery mechanism for energy efficiency services in the country and provides the much needed coordination between the various entities.

Mr. Harsha Yadav said that the “Energy Smart”, as conceived by Energy Conservation Mission (ECM), transcends “Energy Efficient” of normal parlance. Smartness is associated with wisdom, innovation and creativity. Efficiency, on the other hand, is the outcome of the effort to bridge the gap between input and output. Sky is the limit for Energy Smart performer. Energy Efficient, however, performs at the ground level, within the boundaries of cent per cent. Like an aircraft accelerates on the runway, Energy Efficient improves in the region of efficiency and takes off into the Energy Smart realms, inspired by innovation & creativity. If “improve” is the process word for Energy Efficient, “innovate” is the password for Energy Smart. In an organization, energy efficiency would be at the highest, if the gap between the supplier and the consumer of energy reduces to naught. Inspired by innovation and creativity, as a catalyst, the supplier-consumer continuum tends to transform the organization Energy Smart. Energy Smart aspires and achieves quantum savings of energy combined with clean environment. No doubt, Energy Efficient also does save energy and environment.

Wednesday, December 14, 2011

Keck looking develop partner for bioscience

Hyderabad 12.12. 2011: Addressing the Members of The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), Mr.Sheldon M. Schuster, President, Keck Graduate Institute, Claremont, USA said that Keck Graduate Institute is dedicated to education and research aimed at translating the power and potential of the life sciences into business practice, for the benefit of society. Today the most exciting work in the life sciences, engineering, and management is happening in the biosciences industry. He stated that KGI focuses its program to the specific demands of the biosciences industry, drawing widely on the guidance of a world-class advisory council that includes leaders in industry, science, and higher education. Founded in 1997, Keck Graduate Institute is the only American graduate institution devoted solely to bioscience education and discovery. KGI is the seventh and newest member of the Claremont Colleges consortium.

KGI seeks to sustain an interdisciplinary and entrepreneurial culture, working in partnership with industry to develop leaders for the biosciences, while promoting academic freedom and the highest ethical standards, he said.

Earlier, welcoming the delegation, Mr. V.S. Raju, President, FAPCCI stated that Claremont was rated by CNN/Money magazine as the fifth best place to live in the United States, and was the highest rated place in California. Due to its large number of trees and residents with doctorates, it is known as "the City of Trees and PhDs.” To further the trade between Claremont and India, he requested the Delegation to impress upon the Claremont Govt. to create greater awareness of Claremont for the Indian businessmen, its strengths, and the opportunities therein. This would help in building strong relationship and identifying specific opportunities.

Ms. Karen Schneider, Vice President-Advancement, Keck Graduate Institute, Claremont, USA and Mr. Shyam Sunder Pasari, Chairman, International Trade Committee, FAPCCI were present and spoke on this occasion.

Mr. Srinivas Ayyadevara, Vice President, FAPCCI proposed a vote of thanks.

Industry lost over Rs. 12,000 crore worth production in the last two months due to power cuts

Mr V S Raju, President, FAPCCI, Mr Devendra Surana, Sr. Vice President, Mr Sreeram Murthy, Chairman, Industrial Development Committee, FAPCCI, and Mr M V Rajeshwara Rao, Secretary General, called on Mr Ponnala Lakshmaiah, Minister for IT, Communications and Endowments and appraised him that industry lost over Rs. 12,000 crore worth production in the last two months due to power cuts. The minister requested Sri Jain, CMD, APTRANSCO, to come and explain the power supply scenario in the State to the representatives of FAPCCI.

Mr Surana explained that the Industry has been having two days power cut in a week in addition to 4 hours daily power cut, and that the power cut to Industry amounts to 40 percent as against the energy shortage of only 10 percent. Mr Surana pointed out whether such a highly inequitable power cut imposed on the industry is justifiable. He further pointed out that the Industry is losing Rs. 800 cr on every day of power cut and in this way every week the industry loses nearly Rs. 2400 cr every week. He also stated that the State lost tax revenue to the tune of Rs. 1,400 cr in the last two months due to loss of production caused by power cuts. He even suggested that government could buy high cost power even with the amount lost in this way and make good more than it lost due to power shortages. Mr. Surana further stated that the worst affected sector in the industry is the SSI sector which is quite vulnerable and suffers heavily whenever power cuts are imposed. He appealed that the SSI sector should be given some consideration and that the power cut to SSI sector be reduced. Being labor-intensive it is affected by severe loss of jobs, creating industrial and human relations problems. The minister requested the CMD, TRANSCO whether SSI can be give due consideration and reduce power cuts to it.

Mr. Jain explained that two power plants are down and the supply has become quite critical to meet the rising demand. He expects that the power cut will be reduced to one day from December 20. To meet the power shortage in January to May 2012, Mr Jain informed that about 400 MW will be purchased from the within the Southern Region and another 400 MW may be made available from gas based power plants in the State by supplying them RLNG purchased from international market provided APERC gives approval to its proposal to make such purchases and can meet the power shortage to some extent in January – May, 2012 period

Friday, December 9, 2011

Sunlight is one of India’s National Resources

The Federation of Andhra Pradesh Chambers of Commerce & Industry (FAPCCI) & Solar Energy Manufacturers Association and Solaria Corporation jointly organized a Workshop on “Solar Power Generation in AP – Issues, Challenges and Initiatives” on 8th December 2011 at Surana Udyog Auditorium, Red Hills, Hyderabad. Mr. Suvi Sharma, President, Solaria Corporation, Fremont, CA, USA was the chief guest for the occasion.

Mr. V.S. Raju, President, FAPCCI, Dr. E.V.R. Sastry, Former Advisor, Ministry of New and Renewable Energy, Member, Energy Committee, FAPCCI, Mr. Devendra Surana, Sr Vice President, FAPCCI, Mr. V. Anil Reddy, Chairman, Energy Committee, FAPCCI, Mr. Sree Ramaraju, General Manager, NEDCAP, Mr. Vishnuvardhan Reddy, CEO, Cirus Solar, Mr. Prasad Sharma, Faculty, REC and Mr. M.V. Rajeshwara Rao, Secretary General are the other speakers at the occasion.

Mr. Suvi Sharma in his inaugural said that the Sunlight is one of India’s National Resources. Better than US, Spain and Germany. India’s solar industry growing rapidly, averaging 65% with compound annual growth rate for the past 5 years. Solar industry generating employment opportunities’ in very fast and its growth rate a ten times faster than the rest of the countries.

Mr. Sharma also stated that India’s energy consumption has been increasing at one of the fastest rates in the world due to population growth and economic development. Primary commercial energy demand grew at the rate of six per cent between 1981 and 2001. India ranks fifth in the world in terms of primary energy consumption, accounting for about 3.5% of the world commercial energy demand in the year 2003. Despite the overall increase in energy demand, per capita energy consumption in India is still very low compared to other developing countries. India is well-endowed with both exhaustible and renewable energy resources. Coal, oil, and natural gas are the three primary commercial energy sources. India’s energy policy, till the end of the 1980s, was mainly based on availability of indigenous resources. Coal was by far the largest source of energy. However, India’s primary energy mix has been changing over a period of time. Renewable energy sources offer viable option to address the energy security concerns of a country. Today, India has one of the highest potentials for the effective use of renewable energy. India is the world’s fifth largest producer of wind power after Denmark, Germany, Spain, and the USA. There is a significant potential in India for generation of power from renewable energy sources, small hydro, biomass, and solar energy. The country has an estimated SHP (small-hydro power) potential of about 15 000 MW. Other renewable energy technologies, including solar photovoltaic, solar thermal, small hydro, and biomass power are also spreading. Greater reliance on renewable energy sources offers enormous economic, social, and environmental benefits.

Mr. V.S. Raju said that the India has great potential in solar power."About 5,000 trillion kWh per year of energy is over India's land area." From an energy security perspective, solar is the most secure. "The objective of the National Solar Mission is to establish India as a global leader in solar energy."India is particularly well positioned to reap the advantages of solar power, which is clean, free, forever and everywhere."

Mr. V. Anil Reddy in his introductory remarks said that India has the potential to become a solar superpower. It has a lot going for it. On average, the country has 300-320 sunny days a year. The average solar insolation in a city like Mumbai is about twice that in New York, Berlin or Tokyo. On the other hand, a huge shortage of power exists. According to the Central Electricity Authority, there is a 10% to 12% power shortage in the country. Power cuts in urban areas go on for hours. They are longer in rural areas, where large parts aren't even electrified.

Helath Talk on – “Obesity”

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association with Global Hospitals jointly organized a Health Talkg on “Obesity” on 7th December 2011 at Surana Udyog Auditorium, Red Hills, Hyderabad. Dr. Kona Laxmi Kumari, MS (Gen Sur), FICS, FIAGES was the chief guest for the occasion. Mr. Srinivas Ayyadevara, Vice President, FAPCCI, Mr. B.V. Rama Kumar, Joint Secretary, FAPCCI also spoke at the occasion.

Wednesday, December 7, 2011

India, Israel to enter into free trade agreement

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association with The Embassy of Israel and Indo Israel Chamber of Commerce & Industry jointly organized a meeting on “Indo-Israel Relations” on 6th December 2011 at Surana Udyog Auditorium, Red Hills, Hyderabad. His Excellency Mr. Alon Ushpiz, Ambassador of Israel to India was the chief guest for the occasion.

Mr. Ponnala Lakshmayya, Minister for Information Technology and Communications, Govt. of AP, Mr. V.S. Raju, President, FAPCCI, Mr. Ken Udai Sagar, President, Indo-Israel Chamber of Commerce and Industry, Mr. Mauneer Akbaria, Consulate general of Israel, Mr. Mr. Devendra Surana, Sr Vice President, FAPCCI, Mr. Srinivas Ayyadevara, Vice President, FAPCCI, Mr. Shyam Sunder Pasari, Chairman, International Trade Committee, FAPCCI and Mr. M.V. Rajeshwara Rao, Secretary General are the other speakers at the occasion.

Mr. Alon Ushpiz in his inaugural said that the India and Israel being at an advanced stage of finalizing a free trade agreement, the bilateral trade is likely to touch $15 billion from around $5 billion now. We have concluded three rounds of talks relating to FTA and the fourth round is likely to be taken up in January next. You must understand that FTA is amongst the toughest subjects to deal with and has many aspects before being finalized, including the items to be included. Therefore, we see this being concluded by December 2012 paving way for acceleration of trade between the two nations.

Mr. Ushpiz also said that there are expectations that the bilateral trade would go up to $15 billion between the two. The pesticides and fertilizers, a part of holistic development of agriculture, would be major thrust areas. An R&D centre on pesticides that helps guide in optimum use and increased production is likely to come up in India.

Mr. Ponnala Laxmaiah said about Indian economy and industrial development strategy. He said that the Indian economy which is a resilient economy with a wide base of agriculture, mining, manufacturing and services is now ranked as the 4th largest in the world by purchasing power parity and has been growing rapidly in recent years. In fact, the Indian economy has been growing at an average growth rate of about 8% in the last six fiscal years. Expected growth rate in FY 2009-10 is around 7%. According to a study by Goldman Sachs, Indian economy is expected to continue growing at the rate of 5% till 2050.

Mr. V.S. Raju said that the field of agriculture, Indo-Israeli cooperation on both the public and private levels encompasses wide-ranging projects, including water management, dairy farming, horticulture and floriculture. Additionally, India and Israel have expanded tourism and cultural exchanges in recent years. Israeli companies have really made progress in the field of agricultural technology, water management and biotechnology. In Israel 75 per cent of wastewater is recycled and used for agricultural purposes. We also have the world’s largest desalination plant. India also faces a similar problem and this technology can be put to use here.

Mr. Shyam Sunder Pasari in his introductory remarks said that FDI inflows from Israel to India from April 2000 to March 2011 totaled US$ 53.14 million placing it at 38th rank (0.04% of total FDI inflows to India). The traditional business thrust is in diamonds, agriculture, chemicals, information & communication technology and pharmaceuticals remained strong. There is a growing interest from Israeli companies in clean energy, water technologies, biotech, nanotech, homeland security, real estate, infrastructure and financial services.

FAPCCI Delegation to Iran

A delegation of FAPCCI members representing various business areas like civil construction, refractory’s, shipping & metal processing, engineering technologies, automobiles, legal consulting, financial consultancy, language learning technologies, chartered accountants etc., visited Iran to attend a two day international seminar on Investment Opportunities in Iran, held at Tehran during 23-24th Nov -2011. The seminar was organized by the Organization for Investment, Economic and Technical Assistance in Iran in co-operation with the Euro Convention Association from Belgium. The FAPCCI delegation left Hyderabad for Tehran on 22nd Nov-2011 and returned on 27th Nov-2011. It is heartening to note that FAPCCI delegation was the biggest delegation from India having varied portfolios of business interests and rich experience in their respective fields.

The seminar was inaugurated by His Excellency Mahmoud Ahmadinejad President of Islamic republic of Iran and was attended by more than 1000 delegates. During the opening session the ministers representing petroleum, Industry, Mines, Trade, Foreign affairs, Power, Transportation, Urban-Infrastructure, Economic Affairs, Finance & Commerce, Portfolios addressed, highlighting the business potential in Iran for foreign investment in respective portfolios.

During the afternoon Exclusive technical sessions were held focusing on oil, gas and petro chemicals, mining and industry, agricultural and fisheries, tourism and free zones wherein the CEO’s of concerned departments of Govt of Iran made elaborate presentations highlighting business opportunities.

During the second day technical sessions in the areas of Banking and Insurance, Privatization of capital market, power and renewable energy, transportation and urban constructions were held, with detailed presentations. In the afternoon B2 meetings were held during which the delegates from various countries had one to one meetings with their counter parts from Iran, had extensive discussions to work out business avenues and modalities for business tie-ups.

During the visit the FAPCCI delegation had significant meetings with Tehran Chambers of Commerce, Industries and Mines, Embassy of India in Iran and Vice Minister & President of Organization for Investment, Economic & Technical Assistance of Iran (OIETAI).

FAPCCI delegation had a meeting with the members of Tehran Chambers of Commerce, Industries and Mines (TCCIM) on 22nd Nov- 2011 evening at Chambers office. From TCCIM, Dr. Yahya Ale-es-hagh, President, Mr Ali Akbar Javidan, Deputy Secretary General & Head of International Affairs, Mr Massoud Maleki, Director of Asia & Oceania International Dept., Mr Hosseom Nozzari, Director of Protocol & Logestics International Dept, Mr Hedayatollah Rezaei, The Head of Europe-America Dept. of Int’l Affairs and senior officials representing various business portfolios were present. On behalf of FAPCCI delegation, Shri V.S. Raju, President FAPCCI and the leader of the delegation, during his address highlighted the close cultural affinities between India and Iran and also the existing trade and business relations between the two countries. He also elaborated the developments in the State of Andhra Pradesh and its strengths in areas like Information Technology, Pharmaceuticals, Automobiles, Engineering & Electronics etc. He has also mentioned about other supporting facilities like Industrial Infrastructure, virtual connectivity, the most modern airport and ports infrastructure in the state etc. which are pre requisites for any foreign investment. Later each member of the delegation briefly introduced his personal profile, areas of business interest and competencies. The members of TCCIM also reciprocated the same. The meeting was ended with high appreciation from the president of TCCIM, for participating in the summit and expressed the hope for stronger bilateral trade between India and Iran in the future.

On 24th Nov-2011 evening FAPCCI delegation had an elaborate meeting at Embassy of India. Initially Shri Bharat Babu, Counselor Embassy of India interacted with FAPCCI delegates and enquired about their one to one interactive meetings with their counter parts in Iran during the summit and also the business development potential. Later His Excellency Sri D.P. Srivastava, Ambassador of India to Islamic Republic of Iran, addressed the FAPCCI delegates elaborating on present socio-economic and industrial scenario in Iran and guided the delegates as to how to proceed further for business promotion in Iran and also for encouraging business investment by the Iranians in State of Andhra Pradesh. The meeting was highly informative and all the delegates conveyed their appreciation and also sincere thanks to the Ambassador and counselor, and Indian Embassy.

The President & Dy Secretary General of FAPCCI had an exclusive meeting with His Excellency Behrouz Alishiri, Vice Minister & President, Mr Sadegh Akbari, Director General of Foreign Economic Relations of Organization for Investment, Economic & Technical Assistance of Iran (OIETAI) in the fore-noon of 24th Nov-2011, wherein the President FAPCCI has given a brief account of business potential and the scope for Foreign Investment In the State of Andhra Pradesh.

The members of FAPCCI may glad to know that business dialogue is in progress in areas like urban construction, mining, cement, automobiles, renewable energy systems, technical consultancy services for rehabilitation of highway bridges, infrastructure facilities etc, between FAPCCI delegates and Iranian counter parts, are likely to progress further.

The FAPCCI delegation to Iran was co-ordinated by Sri A.S. Kumar, DSG, FAPCCI.

Meeting on “Packaged Drinking Water Licensees”

The Bureau of Indian Standards in association with the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) organized a meeting on “Packaged Drinking Water Licensees” on 5th December 2011 at Surana Udyog Auditorium, Red Hills, Hyderabad. Mr. K. Anbarasu, Dy. Director General, B I S, Chennai was the chief guest for the occasion.

Mr. V.S. Raju, President, FAPCCI, Dr. R.S. Sarma, Scientist ‘F’ & Head, BIS (H B O), Mr. M.V. Rajeshwara Rao, Secretary General and key speakers Mr. B. Ramakrishna Rao, Mr. T. Nagamani, Mr. P. Prem Sajani, Mr. D Prem Kumar, Mr. P. Srinivasa Rao are the other speakers at the occasion.

Panama invites investments to Agri-Biotech, Pharma and IT sectors

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association with The Ministry of Science & Technology, Republic of Panama the bilateral trade meeting on “Indo-Panama Trade and Technical Relations” on 3rd December 2011 at J.S.K. Hall, Red Hills, Hyderabad. Dr. Ruben Dario Berrocal Timmons, Minister for Science & Technology, Republic of Panama was the chief guest for the occasion.

Dr. Kosagisaraf Jagannatha Rao, Director, The Institute for Scientific Research and High Technology Services -AIP, Republic of Panama, Mr. V.S. Raju, President, FAPCCI, Ms Guerrero Monteza Claudia Marianela, Director for International Co-operation, Ms. Cecilia Cardenas, Administrator, INDICASAT-AIP, Mr. Srinivas Ayyadevara, Vice President, FAPCCI, Mr. Shyam Sunder Pasari, Chairman, International Trade Committee, Mr. K.V.S.S. Sairam, CEO & President, Prathista Industries Ltd., Mr. M.V. Rajeshwara Rao, Secretary General are the other speakers at the occasion.

Dr. Ruben Dario Berrocal Timmons in his inaugural invited Indian investments to Panama to invest in Logistics, Tourism, Agriculture, Financial Services, Science and Technology, Pharma and Agri-Biotech sectors. He said that the Panama’s main focusing on sectors like Logistics, Tourism, Agriculture, Financial Services, Science and Technology, Pharma and Agri-Biotech with the greatest potential will generate more than 500,000 new jobs over the next decade. The development plan prioritizes the stabilization of public finances. Panama aims to improve on its Investment Grade credit rating and will ensure that the level of public debt stays below 30% of GDP over the next 10 years. Significant investments in the education, health, public safety, and transportation sectors will increase the standard of living and benefit the residents of Panama. During the next five years, this investment will be primarily focused on infrastructure development that will generate jobs and stimulate growth on a path towards sustainable development.

Dr. Ruben also said that - high grow rates resulted from the reactivation of regional trade sector growing with high rated results and the last year grow rate is 16%. Port activity registered an important jump with a 27% increase. Container movement expanded 32% while air transport grew 16% in 2010. Panama also has become the main cruise terminal in Latin-American. The Panama’s infrastructure network connecting the main centers of production taking advantage of the country’s geographic position. The Panama Canal is the main international trade engine. Over 14,000 vessels transit this waterway each year, 300 million tons through more than 120 routes with 210 million tons of cargo in 2010 alone.

Mr. V.S. Raju in his welcome address complimented the Institute for Scientific Research and High Technology Services –AIP, for being one of the premier institute with the most complete infrastructure in Panama for scientific research in the fields of Biomedicine, Biology, Biotechnology, Chemistry of Natural Products, Pharmacology, Biodiversity, Immunology, Neurosciences, Toxicology, Parasitology, Clinical Trials and other related areas. Panama is the first country in Central America where India has a resident Mission. Panama also has a Mission in New Delhi. Panama is one of the key countries in Latin America and Indian businessmen should explore this market more vigorously. Already a large number of Indian businessmen present in Panama engaged in wholesale and retail activities. There is lot of scope for Indian businessmen in various sectors including engineering, construction and hydro power.

Mr. Shyam Sunder Pasari in his introductory remarks said that India’s main exports to Panama are apparel and clothing accessories, rubber and its articles, electrical machinery and equipment, articles of iron and steel products, tobacco items, etc. On the other hand, India imports mineral oils and products, ships, boats and floating structures, aluminum and articles from Panama. India’s exports to Panama have been increasing over the years. It amounted to US$63 million in 2005-06 and increased to US$123 million in 2008-09 before declining to US$78 million in 2009-10.

India is no 1 in milk production, worldwide: Mr. S. Bhale Rao, Principal Secretary, Govt of AP

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association with Dept of Animal Husbandry & Dairy Development, Govt. of AP & NABARD

Jointly organized the State level Workshop on “Dairy Entrepreneurship Development Opportunities in Andhra Pradesh” on 2nd December 2011 at K.L.N. Prasad Auditorium, Red Hills, Hyderabad. Mr. S. Bhale Rao, IAS, Special Chief Secretary to Government, Animal Husbandry, Dairy Development and Fisheries, Government of Andhra Pradesh & Chairman APDDCF was the chief guest for the occasion.

Dr. M.V. Reddy, Director, Department of Animal Husbandry, Hyderabad, Mr. P. Mohanaiah, Chief General Manager, NABARD, Mr. M.C. Jacob, General Manager, SBH, Mr. B.V.S.N. Murthy, DGM, Andhra Bank, Mr. S.S. Banik, Zonal Manager, Bank of India, Mr. Ayyadevara Srinivas, Vice President, FAPCCI, Mr. K. Bhaskar Reddy, Chairman, Agriculture Committee, FAPCCI, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI, Mr. A.S. Kumar Deputy Secretary General, FAPCCI are the other speakers at the occasion.

Mr. S. Bhale Rao in his inaugural address stated that the dairy business is the most sustainable are in the world. India is not only a major milk producer in the world, but also the biggest exporter. Indians has exporting milk and milk products across the world. The major destinations for Indian dairy products are Bangladesh (23.1%), UAE (15.4%), US (15.6%) and Philippines (8.9%). In terms of products, SMP is the most important product accounting for about 63% of total export volume, followed by ghee and butter (11.7%) and WMP. Export figures clearly demonstrate that the Indian dairy export is still in its infancy and the surpluses are occasional. Indigenous milk products and desserts are becoming popular with the ethnic population spread all over the world. Therefore, the export demand for these products will increase and hence, there is a great potential for export.

He also said that minerals and nutrition based feed with green feeder is required for animals to produce quality milk. Cleanliness is most important for hygienic milk production. Israel using very advanced technology for animal healthcare.

Mr. V.S. Raju in his welcome address stated that Milk is widely considered as one of the world`s most sustained valuable protein food. As raw material, it is available for different uses and processed into an ever increasing variety of nutritional milk products viz. sweets, ice-creams etc. More than 70% of the populations live in rural areas and depend on agriculture and its allied activities predominately dairying for livelihood. Andhra Pradesh State is one of the leading state, which experimented with various new business models and encouraged large number of private sector dairies competing with each other.

Dr. M.V. Reddy said that the dairy industry is playing vital role in the world. India is the world’s largest milk producer, accounting for more than 13% of world’s total milk production. It is the world’s largest consumer of dairy products, consuming almost 100% of its own milk production. Dairy products are a major source of cheap and nutritious food to millions of people in India and the only acceptable source of animal protein for large vegetarian segment of Indian population, particularly among the landless, small and marginal farmers.

Mr. P. Mohanaiah said that the Government of India is the focal department for the scheme of Dairy Entrepreneurship Development Scheme (DEDS). The NABARD will implement the DEDS Scheme through Commercial Banks, State Cooperative Banks, SLDBs Regional Rural Banks and other agencies eligible for refinance from NABARD. The main objective of this program is To promote setting up of modern dairy farms for production of clean milk, To encourage heifer calf rearing thereby conserve good breeding stock, To bring structural changes in the unorganized sector so that initial processing of milk can be taken up at the village level itself, To bring about up gradation of quality and traditional technology to handle milk on a commercial scale and To generate self employment and provide infrastructure mainly for unorganized sector.

Mr. K. Bhaskar Reddy in his introductory remarks, explained a certain guidelines to the new dairy entrepreneurs that ample space is required for buildings, future expansion, parking of transport vehicles and for empty cans. The location of a plant should be close to the milk producing area in case of products manufacturing unit and if liquid milk is the main product it should be close to the consumer. The location of site should have proximity to road/rail facilities, service, such as water, electricity and effluent mains, social infrastructure. In respect of plant and machinery the section-wise equipment required, their specifications. Technical collaboration is required for manufacture or marketing of milk products. Infrastructure facilities are required for raw material and utilities. As far as Government Regulations concerned No license is required for setting up Dairy project in India. Only a Memorandum has to be submitted to the Secretariat for Industrial Approvals and an acknowledgement is to be obtained. However Certificate of Registration is required under the Milk and Milk Products Control Order 1992. Foreign Investment in dairying requires prior approval from the Secretariat of Industrial Approvals, Ministry of Industry, as dairying has not been included in the list of High Priority Industries. Automatic approval will be given upto 51% Foreign Investment in High Priority Industries.