Tuesday, March 19, 2013

Falls short of expectations from Industry & Commerce: Devendra Surana

Today’s budget presented by Sri Anam Ram Nsarayan Reddy, Finance Minister State, Government of AP falls short of expectations from the Industry and commerce. Industry expected a major push to the growth in the budget allocations, but the Government allotted just Rs. 250 cr in addition to previous year. There is a huge backlog of incentives to be paid. The provision is not sufficient to clear old dues. Further the CM’s announcement of VAT refund on diesel also needs to be covered in this. The provision made in budget is not sufficient.

As far as power sector is concerned, the allocations of budget very low. The entire subsidy subsidized power of 14000 cr needed to come out of the budget.

Devendra Surana

FAPCCI invites nominations for the "FAPCCI Excellence Awards 2011-12"

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI), a premier Apex Chamber with over 3,300 members in the State, has invites nominations for the ‘FAPCCI Excellence Awards’ for the year 2011-12.

Inviting entries for the 21 excellence awards, Mr. Devendra Surana, President, FAPCCI said that Excellence Awards have generated enormous interest and competitive spirit to achieve excellence in industrial organizations, individuals and scientists alike.  It is worthwhile to note that the FAPCCI Excellence Award fosters excellence not only in the corporate sectors but also individuals.  It is a convention that the Awards are presented by the Hon’ble Chief Minister of Andhra Pradesh.

Mr. Shekhar Agarwal, Chairman, FAPCCI Excellence Awards Committee stated that the FAPCCI has instituted Excellence Awards to recognize corporate, institutions, entrepreneurs and individuals for their outstanding contributions/achievements in important areas and to promote corporate and individual initiatives in economic, social and research areas.

This year, we have introduced three new Awards, considering the potential, contribution and growth viz. Excellence in Agro Based Industry, Excellence in Tourism Promotion and Excellence in Association /Chamber for serving Industry, Commerce and State Economy.  We are sure this would encourage/help them to contribute more for the economic development of the country more particularly to the State.

Mr. Srinivas Ayyadevara, Senior Vice President, FAPCCI, Mr. V.S. Raju, Past President, FAPCCI, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI and Award Committee members Mr. Hari Govind Prasad, Chairman, Banking Committee, FAPCCI, Mr. Suraj Prasad Agarwal, Past President, FAPCCI, Mr. Narne Prabhakar, Past President, FAPCCI have spoke at the press meet.
Each Award is focused on a different theme and consists of a Trophy / Plaque and a Citation.

The awards are given in recognition in the following categories:

1. Excellence in Industrial Productivity
2. Excellence in All Round Performance
3. Excellence in Agro Based Industry
4. Excellence in Marketing Initiatives
5. Excellence in Export Performance
6. Excellence in Export Performance (SSI)
7. Excellence in Non-Conventional/Renewable Energy Development / Application
8. Excellence in Employee Welfare Initiatives
9. Excellence in Corporate Social Responsibility

10. Excellence in Product Innovation
11. Excellence in Product Innovation (SSI)
12. Excellence in Innovative Product/Service in Healthcare with Highest Societal Impact

13. Excellence in Research & Development
14. Excellence in Research & Development (SSI)

15. Excellence in Information Technology (IT) Company

16. Excellence in Tourism Promotion

17. Excellence in Association/Chamber for serving Industry, Commerce and State Economy

18. Excellence in Scientist or Engineering
19. Outstanding Woman Entrepreneur / Scientist /Manager / Technologist

20. Outstanding Self-Sustaining Effort by a Differently Abled Person
21. Excellence in Social Welfare Initiatives for Women Empowerment

Awards are given for the performance in the concerned field of the company industrial organization during the year 2011-12. Deloitte is the Knowledge Partner and the Jury consists of eminent personalities.

The Awards Committee will be the jury and can enlist experts to adjudicate upon Awards, if necessary, in its discretion.

The last date for receipt of application is May 10, 2013. 

For more details contact Mr. Kulkarni, Dep. Secretary on 8008579625.

National Seminar on "Trends & Demands in IT & ITeS" on March 09, 2013 at FAPCCI, Hyd

Tuesday, March 12, 2013

MSMEs was the growth Engine for Nations Economy

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) organized a “Bankers Conclave on Energizing the MSME Sector - The Growth Engine of the Economy & Mega Loan Mela Up to Rs. 1. Cr” on March 09, 2013 at Federation House, Hyderabad. Dr. (Mrs.) J. Geeta Reddy Minister for Major Industries, Govt. of AP was the Chief Guest at the occasion.

Mr. B. A. Prabhakar, CMD, Andhra Bank, Mr. M. Bhagavantha Rao, Managing Director, State Bank of Hyderabad (SBH), Dr. Sanjay A Baru, Economist & Director IISS, Mr. Devendra Surana, President, FAPCCI, Mr. Srinivas Ayyadevara, Senior Vice President, FAPCCI, Mr. Hari Govind Prasad, Chairman, Banking Committee, FAPCCI and Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI were the other speakers.

Dr. (Smt.) J. Geetha Reddy, Minister for Major Industry said that - we are all well aware that the role of micro, small and medium enterprises (MSMEs) in the economic and social development of our country is well established. The MSME sector is a nursery of entrepreneurship, often driven by individual creativity and innovation.  MSMEs are important for the national objectives of growth with equity and inclusion. The MSME sector contributes about 9 per cent of the country's GDP, 45 per cent of the manufactured output and 40 per cent of its exports. The MSMEs provide employment to over 73 million persons through more than 31 million enterprises with a lower labour to capital ratio and produces 6,000 products range from traditional to high tech items. The total production during 11the Five Year Plan was projected at Rs. 10,958 billion with growth of 11%. The GDP contribution is about 20%.

I happy to note that during the 12th FY Plan, the total production of MSMEs was projected to grow at 11.48%. MSME sector has been accorded high priority in the industrial policy owing to its vital role in the economy. During the 11th FYP, the total outstanding credit by banks to MSMEs in India stood at Rs 4,859.43 crs with CARG (Compound Annual Rate Growth) of 40% from 7th FYP to 11th FYP. Public and private banks registered at growth of 35.28% and 36.14% respectively.

I am happy to inform that during the recent budget speech of the Union Finance Minister have announced the following benefits to the MSME Sector.

Ø  Benefits or preferences enjoyed by MSMEs will stay upto three years after they grow out of the category in which they obtained the benefit.  The non-tax benefits may be made available to a MSME unit for three years after it graduates to a higher category.
Ø  To enhance the refinancing capability of SIDBI from the current level of Rs 5,000 crore to Rs. 10,000 crore per year.
Ø  Already allocated Rs. 100 crore to provide equity and quasi-equity to Micro Finance Institutions (MFI) Fund and another sum of 100 crore to the Fund in the budget.      
Ø  A corpus of Rs. 500 crore to SIDBI to set up a Credit Guarantee Fund for factoring.
Ø  World Bank assistance, a sum of Rs 2,200 crore during the 12th Plan period to set up 15 additional Centres of Tool Rooms and Technology Development Centres set up by the Ministry of Micro, Small and Medium Enterprises.
Ø  Ministry of Corporate Affairs will notify that funds provided to technology incubators located within academic institutions and approved by the Ministry of Science and Technology or Ministry of MSME will qualify as CSR expenditure.

Although Indian MSMEs are bedrock for innovation and despite being a diverse and heterogeneous group they face some common challenges with regard to access to institutional credit, collateral requirements, equity capital, etc. In this background that the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was established with the objective of guaranteeing collateral and third party guarantee free credit facilities so as to enable enhanced flow of credit to the MSE sector in India. I was told that over the past 12 years, CGTMSE has been ably serving India's MSEs through the Credit Guarantee Scheme by providing guarantee cover to collateral and third party guarantee free credit facilities sanctioned by Member Lending Institutions (MLIs) to eligible MSEs. CGTMSE has extended guarantees for loans aggregating to over Rs.38,000 crore covering approximately 8 lakh MSEs as on March 31, 2012.

I am happy to note that many governments around the world also provide interest rate subsidies to SMEs. Under the subvention scheme, banks give credit to SMEs at lower interest rates (depending on the rate of subvention) in comparison to the market prevailing rates, which are then later reimbursed by the government. Interest-rate subsidies have the direct effect of reducing financing costs; indirectly, they have a beneficial effect on the demand for credit, investment and, ultimately, employment. However, like any public instrument, it may lead, macro- economically speaking, to an inefficient allocation of resources, with financial efficiency being defined as an allocation of resources to investment with the highest anticipated rate of return. This may in turn result in less profitable projects being undertaken or give rise to activities that the market would not have financed, etc. Let me share few examples according to a Report from the Commission to the Council and the European Parliament.

  1. In Germany, in 1999 the Special ERP (European Recovery Programme) Fund, which centralises the management of interest-rate subsidies on behalf of the State, granted loans amounting to EURO 6 billion for investment projects by SMEs totaling EURO 15 billion.

  1. In France, the interest-rate subsidy scheme administers loans amounting on average to EURO 1.5 billion a year and costs the State some EURO 250 million in subsidies.

  1. In Spain, interest-rate subsidies administered by the ICO (Instituti de Credito Oficial) under the ERDF (European Regional Development Fund) programmes for SMEs during the period 1994-99 totaled EURO 194.6 million in respect of loans totaling EURO 3.3 billion for investment projects costing some EUR6.1 billion.

4.     In the United Kingdom, the Small Business Loan Scheme provided subsidies for loans totaling EURO 70 million

Credit guarantee schemes (CGSs) are set up, especially for the purpose of encouraging financial institutions to offer loans to small enterprises, on the understanding that a government or a semi-government institution will reimburse a major proportion of the loan (to the financial institution which provided the loan) should the firm default. During the last two decades there has been a major interest in credit guarantee schemes as a tool to promote the growth of the private sector in general and the growth sector in particular. I was told that there are about 2,250 credit guarantee schemes exist in almost 100 countries.

Most of the SMEs are relatively young and have little or no credit history to back their ideas. As such, lenders may also be reluctant to fund small firms with new and innovative products because of the difficulty inherent in evaluating the risks of such products. These difficulties may be grouped under classic information problems- problems pertaining to obtaining sufficient and relevant information about the parties involved in a financial transaction and these problems may, in effect, come in the way of otherwise creditworthy firms from obtaining credit.

If credit rationing affects the financial needs of SMEs (particularly long term loans for purposes such as capital expansion) significantly, a rationale exists for supporting small enterprises through government interventions / programs aimed at improving the access of credit to small business units. Also, the possibility of credit rationing is increased when banks insist on taking collateral from SMEs. Collateral acts a substitute for information and limits the downside loss for the lender

High transaction costs in relation to loan size in case of SMEs and start-ups are acknowledged to be a serious disincentive to bank lending  as it is likely to reduce the profitability of this type of lending. Also, banks and financial institutions may be institutionally biased towards lending to large corporate. This may reflect prior relationships that the bank has had with the bank. Many countries around the world have therefore made Credit Guarantee Schemes (CGSs) a central part of their strategy to alleviate the financing constraints of SMEs. These schemes seek to expand lending to SMEs, sometimes focusing on specific regions or sectors by reducing lending risk. Specifically, a credit guarantee scheme is a risk transfer and risk diversification mechanism; it lowers the risk to the lender by substituting part of the risk of the counterparty by that of the issuer of the guarantee (the fund/ trust), which guarantees repayment of part of the loan upon a default event.
As far as Andhra Pradesh concerned, there are about 1,88,685 MSME’s  with an investment of Rs. 33,811 Crores creating  employment to 2,036,517 persons. 
·         Investment in MSME sector               …  Rs.33,811 Crores
·         Employment Generated so far           ….  20,36,517
·         Production from MSMEs (approx.)  …  Rs.1,20,000 Crores/annum
·         Exports from MSME (2010-11)       … Rs.36,646 Crores

Government of Andhra Pradesh has initiated for establishment of a Credit Guarantee trust for supporting the SC / ST entrepreneurs to provide the collateral security for the projects while lending their term loan. However, as a national level policy matter, the RBI could not respond positively, however, APSFC has been permitted to sanction loans upto Rs 1.00 cr with out any security.

I strongly appeal to the Bankers to provide adequate guidance to the SMEs in the matter of identifying the financially viable projects and with the experience of the successful ventures, guide the MSMEs in the market tie-ups with the Large Industries.  Todays the key Challenges of MSMEs include
Ø  Lack of availability of adequate and timely credit
Ø  High cost of credit
Ø  Collateral requirements
Ø  Limited access to equity capital
Ø  Procurement of raw material at a competitive cost
Ø  Problems of storage, designing, packaging and product display
Ø  Lack of access to global markets
Ø  Inadequate infrastructure facilities, including power, water, roads
Ø  Low technology levels and lack of access to modern technology
Ø  Lack of skilled manpower for manufacturing, services, marketing, etc
Ø  Multiplicity of labour laws and complicated procedures associated with compliance of such laws

A collective effort is required to resolve these issues. I have already convened a meeting with all banks for effective implementation of the Credit Guarantee Fund Trust  for MSME without insisting for the collateral security from the MSMEs which is already there upto Rs 1 crores term loan lending.  

I wish that all the prospective MSMEs to study the scheme of Government of India, Ministry of MSME where number of schemes are formulated for Infrastructure Development, Common Facility Centres, Diagnosis study, Software Interventions, technology upgradation, market support etc. Let the MSMEs come up with specific scheme for promotion of MSME clusters in the state. Our Government is ready to develop exclusive SME clusters. Government of AP is already implementing the best IIPP-2010-15, where 100% , 50% and 25% VAT reimbursement for Small, Medium and large enterprises, Investment subsidy to SMEs upto Rs 15 lakhs and Rs 50 lakhs to SC/ST entrepreneurs.

I hope this conclave will benefit number of MSMEs in the state particularly in planning the credit management system and various other new issues relating to term loan. I thank the FAPCCI for organizing this conclave successfully for the benefit of the local MSMEs. 

Women’s Day celebrated at FAPCCI

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in celebrated “World Women’s Day” on March 08, 2013 at Federation House, Hyderabad.

Dr. Sharada Devi, Professor, Acharya N.G. Ranga Agriculture University was the Chief Guest at the occasion.

Mr. Srinivas Ayyadevara, Senior Vice President, FAPCCI, Mr. Hari Govind Prasad, Chairman, Banking Committee, FAPCCI, Mrs. Durga Rani, Member, FAPCCI and Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI  were the other speakers.

Bankers Conclave & Mega Loan Mela from March 09, 2013 @ FAPCCI-

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) organizing a bankers conclave on “Energizing the MSME Sector -The Growth Engine of the Economy“, and Mega Loan Mela “Up to Rs. 1. Crore without Collateral for MSMEs” with SBI, SBH, Andhra Bank, Bank of India, SIDBI, NIMSME from March 09, 2013 to March 10, 2013 at Federation House, Hyderabad.

Existing entrepreneurs and start-up firms, and aspirants who are desirous of enhancing their finance prospects are invited to actively participate and reap benefits by interacting with the bankers. They can present their project proposals in triplicate through FAPCCI to their preferred bankers, during the one to one sessions.  To say the least it will be one of a kind single window approach to acquire adequate finance for your businesses.

For more details interested entrepreneurs and aspirants can contact Mr. Hari Govind Prasad, Chairman, Banking Committee, FAPCCI on 9246152040.

“Business Opportunities between India and Saudi Arabia”

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association The Embassy of Saudi Arabia to India, Saudi-Indian business council and FICCI jointly organized a meeting on “Business Opportunities between India and Saudi Arabia for Promoting Trade and Investment Partnerships” on March 05, 2013 at Federation House, Hyderabad.  Dr. Abdulrahman Al Rabiah, Chairman, Saudi-Indian business council was the Chief Guest and Mr. Sri Jayesh Ranjan, IAS., VC & MD, A.P. Industrial Infrastructure Corporation Ltd was the Guest of honour at the occasion.  

Talking points from speakers:

Dr. Abdulrahman Al Rabiah, Chairman, Saudi-Indian business council
Ø  $624 billion Investment Opportunity
Ø  Saudi Arabia national budget for the 2013 fiscal year, with total allocated funds $ 219 Billion
Ø  Net foreign assets in 2012 for Saudi Arabia  $628 Billion
Ø  The Government domestic debt was cut to a long-term low of $26.4 billion in 2012, equivalent to only 3.6 % of GDP
Ø  The Government budget surplus in 2012 $102 Billion
Ø  The Government budget expected surplus in 2013 $ 9Billion
Ø  Saudi Arabia Export/GDP 54.4%
Ø  Saudi Arabia Import/GDP 23.2%
Ø  Advantages Of Saudi Non Oil Exports
Ø  Applying International Standard & Specification
Ø  Availability of Raw Material
Ø  Accessibility to about 150 International Markets
Ø  Competitive price
Ø  Financing programs
Ø  Air, sea & land cargo from various ports
Ø  Strong GDP growth
Ø  The 1st in the world in terms of lowest energy prices
Ø  Large budget and current account surpluses
Ø  Largest world Oil reserves (25% of world oil reserves)
Ø  Fourth Largest Natural Gas reserves
Ø  The Largest producer of Petrochemicals in the Arab World
Ø  The largest economy in the Arab World & among the top Economies in the world
Ø  17th worldwide Exporter  & 31st worldwide Importer
Ø  Top of the list of Arab host of foreign direct investment flow &  inter-Arab investments interfaces

Mr. Sri Jayesh Ranjan, IAS, VC & MD, A.P. Industrial Infrastructure Corporation Ltd
Ø  AP is among the top 3 states of the Country for industrial investments.
Ø   2nd Largest Mineral Store House of India
Ø  Second longest coast line of 974 kms
Ø  85 out of 500 top global corporate are present in the state.
Ø  Unique State having huge agricultural and horticulture production
Ø  Investor-friendly and proactive policies – rated one of the best in the country
Ø  SEZs in Andhra Pradesh
Ø  SEZs notified.                           ---       74  (Highest in the country)
Ø  Employment ( Projected)         ---       2.5 Mil persons
Ø  Total Projected Investment      ---       US$ 15393 Mil
Ø  Total land for 74 notified SEZs  ---        27,173.05 Acres
Ø  SEZs in Operation
Ø  SEZs in operation                                 : 32
Ø  Employment (Generated so far)          : 1,24,796 persons
Ø  Direct :                                     : 100789 persons 
Ø  Indirect:                                               : 24007 persons
Ø  Investment made                                 : US$ 3.16 Bil
Ø  Exports from SEZs (2010-11)                   : US$ 2.71 Bil 
Ø  Infrastructure in AP - Power
Ø  The State has been awarded as the Best Power Utility in  the country  for 2010
Ø  Total installed capacity in AP is 15,768 MW – Second Largest Power utility in the country
Ø  Capacity addition of  5000 MW by June 2014 and 17,000 MW  planned by June 2015
Ø  Power Tariff for industrial consumers is one of the lowest  in the country
Ø  APIIC: Date of incorporation                     26-09-1973
Ø  No. of Industrial Parks                                396
Ø  Land Bank  (in acres)                                1,36,389
Ø  Govt.       85880
Ø  Patta       50509
Ø   Available land for allotment (in acres) 27,413 (incl.UDL)
Ø  Core Functions
Ø  Identification of potential sites for industrial areas.
Ø  Acquisition/Alienation of lands for Industrial Parks.
Ø  Providing infrastructure facilities in Industrial Parks/IT Parks/Biotech Parks/Apparel Parks/SEZs with its own engineering divisions.
Ø  Allotment of land/plots/sheds for various industries.
Ø  Identification and development of infrastructure projects under PPP mode.
Ø  Strengths of APIICView blog
Ø  APIIC spread over in all districts of Andhra Pradesh with 15 Zonal Offices.
Ø  APIIC owned 396 Industrial Parks which includes sector specific IT, Biotechnology, Apparels, Pharmaceuticals, Autonagars, Automotives and Special Economic Zones.
Ø  APIIC manpower includes Asset Management, Engineering, Finance, Legal, Internal Audit, Quality Control, Administration etc. As on date , 764 employees ( including Contract and out sourcing ) are working .
Ø  APIIC exercises the local authority powers under AP Panchayat Raj and Municipal Acts.
Ø  APIIC has proposed for establishment of 3 National Investment Manufacturing Zones at
Ø  1.Medak District
Ø  2.Chittoor District
Ø  3.Prakasham District
Ø  Out of the three Government of India has accorded in principle approval for establishing National Investment Manufacturing Zones at Medak District and Chittoor District.

Mr. Devendra Surana, President, FAPCCI
Ø  The 2 million plus strong Indian community in Saudi Arabia is the largest expatriate community in the Kingdom and is the ‘most preferred community’ due to their expertise, sense of discipline, law abiding and peace loving nature. The contribution made by Indian community to the development of Saudi Arabia is well acknowledged.  The Haj pilgrimage is another important component of bilateral relations with more than 1.7 lakh Indians performing Haj every year, representing third largest contingent performing Haj.

Union Budget: We get disappointed: Tax Experts-

The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) in association with CPE Study Circle & Knowledge Partner – Ernst & Young organized a meeting on “Union Budget: Impact on Direct and Indirect Taxes & Industry and Trade” on March 02, 2013 at Federation House, Hyderabad. 

Mr. Jayesh Sanghvi, Partner, Ernst and Young Pvt Ltd, Mr. Simachal Mohanty, Director, Taxation, Dr. Reddy Laboratories, Mr. B. Shankar, Senior Advisor, Indirect Tax, Ernst and Young Pvt. Ltd, Mr. Srinivas Sharma, Finance Head, Ramky Estates and Farms Ltd, Mr. Devendra Surana, President, FAPCCI, Mr. S. Thirumalai, Senior Advisor, Deloitte Touche Tohmatsu India Pvt. Ltd, Mr. Srinivas Ayyadevara, Senior Vice President, Mr. Abhay Kumar Jain, Chairman – Direct Taxes Committee, FAPCCI and Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI have addressed the taxation experts.

Talking points from speakers:

Mr. Jayesh Sanghvi, Partner, Ernst and Young Pvt Ltd
Ø  Economy expected to grow at around 5.0% in FY 2012-13
Ø  Agriculture – 1.8%
Ø  Industry – 3.1%
Ø  Services – 6.5%
Ø  GDP growth remains sluggish with higher inflation
Ø  GDP Growth at 6.1% - 6.7%
Ø  Nominal GDP Growth at 13.4%
Ø  Assumed inflation rate at 7% if real GDP growth is about 6.4%
Ø  Overall expenditure increase of 16.4% is being financed by assuming a nominal growth of 13.4% and a buoyancy of nearly 1.5 in gross tax revenues. This seems unrealistic.
This buoyancy was 0.93 in FY12 and 1.3 with respect to RE in FY13.
FAPCCI welcomed long-term infra brands.

Mr. Jayesh Sanghvi, Partner, Ernst and Young Pvt Ltd
Ø  Companies engaged in manufacture of article or things
Ø   Acquired and installed new P&M during April 1, 2013 to March 31, 2015
Ø   Value of the P&M should be more than Rs. 100 cr.
Ø  Tax Residence certificate (TRC) is a necessity but not a sufficient condition to avail DTAA benefit [Retrospectively from April 01, 2012, FY 12-13].
Ø  In order to avail DTAA relief, payee has to pass twin tests
Ø  Residence Test: Produce TRC to evidence that he is resident of contracting state. Tax department issued a Press Release on 01.03.13, stating that it will accept TRC and will not go beyond TRC and question resident status.
Ø  Sunset clause for availing tax holiday for power sector    extended by one more year

Mr. Devendra Surana, President, FAPCCI
Ø  Highlighted the problems faced by industry and trade from all areas; whether it is the international situation of Europe, Greece, Italy or the domestic slow down in the Indian economy. India has always been higher at Interest Rates, when we look at India, it has been fighting from Inflation since last 2-3 years and the Industrial production was between 1% to 2% and even negative due to poor performance of manufacturing sector.

Ø  Another major problem is huge infrastructural bottleneck, in AP, Power has been a major problem since long time, in addition to it Shipping, Road Sectors are also facing bottlenecks.

Ø  The Budget proposes an investment allowance at the rate of 15 per cent to a manufacturing company that invests more than Rs.100 crore in plant and machinery which is welcome measure.

Ø  Over the last few years MAT has gone up, the saving of MAT is not really too much, However the FM to encourage Micro, Small and Medium Enterprises (MSME) sector, proposed to continue non-tax benefits to these units for three years even after they graduate to a higher category.

Ø  That fiscal deficit for the year 2011-12 was 1.8% and the Finance minister has articulated a Fiscal Deficit (FD) target of 4.8% of GDP during FY14 with a commitment to bring down the FD, how credible this will be, if expenditure goes up next year. There is no stimulus to grow and we are targeting 20% revenue.

Mr. Abhay Kumar Jain, Chairman, Direct Taxes Committee, FAPCCI
Ø  This 32 AC giving investment alliance for setting up the new industries for manufacturing was the recommendation of the FAPCCI, but we are disappointed by the limit of 100 crores. We suggest from rupee one. According to the survey last 242 industries only invested more than 100 crores.

Ø  So, FAPCCI feels that the limit should be brought down to 5 crores or much lower limit in order to the boot in the investment in new industries.

Ø  FAPCCI had recommended in order to improve current deficit to re introduce a section 80 HSC which will exempt all the export profits and bring lot of foreign currency to India.