FAPCCI exchanged Diwali greetings with CM, Governor

A delegation team from the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) inclusive of Mr. V.S. Raju, President, Mr. Devendra Surana, Sr. Vice President, Mr. Harischandra Prasad, Past President, Mr. V.V. Sanyasi Rao, Managing Committee Member, Mr. M.V. Rajeshwara Rao, Secretary General meet the Hon’ble Chief Minister of Andhra Pradesh Mr N. Kiran Kumar Reddy, His Excellency Mr. ESL Narasimhan, Governor, Andhra Pradesh, Dr J Geetha Reddy, Hon’ble Minister for Major Industries and Mr. Shankar Rao, Hon’ble Minister for Miner Industries on 26^th October 2011 to exchange Diwali festival greetings. The FAPCCI team requested the Chief Minister for government support to the industries.

Invest in RAKIA Industrial Park & get 100% Tax free

The Ras Al Khaimah Investment Authority, Government of Ras Al Khaimah, United Urab Emirates (UAE), in association with The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) organized an interactive session on ‘Bilateral Trade opportunities in Ras Al Khaimah, UAE’ on 20^th October 2011 at Federation House, Red Hills, Hyderabad. Mr. Alex Thomas, General Manager, RAK Investment Authority, Govt. of Ras Al Khaimah, UAE was the chief guest.

Mr. Alex Thomas said that the Ras Al Khaimah’s transformation into one of the most exciting investment, manufacturing, trade, tourism and lifestyle destinations in the world. The total FDI inflo to GCC for the year 2009-10 was US $ 93 billion of which US $ 33 billion was for the year 2010. The major investments to GCC for the year 2010 came from Western Europe, Middle East, North America and Asia. India is the third largest investing country into GCC region in 2010 with FDI of US $ 3.3 billion. The UAE was the largest FDI recipient country in the GCC accounting for 33% of total FDI in the year 2010 followed by KSA which was 29%. The UAE, one of India’s largest trade partners, is home to 1.75 million Indians. Total trade between India and UAE was US $ 44 billion in the year 2009-10. UAE is the topmost trading partner for Indian exports with a value of US $ 24 billion.

Mr. Alex Thomas invited the investors from the state of Andhra Pradesh, to invest in RAKIA Industrial Park, a free zone and non free zone industrial park. He said that the RAKIA Industrial park is the best place to set up any industry with low cost, for a high returns on investments as well. He invited the investors to invest in particularly Chemical, Plastic and Rubber industry, Food processing industries, Primary and Fabricated metals, Non Metallic minerals industry, Power and Electrical Component industry, Auto components and Wood processing industry etc. For foreign investors the RAKIA industrial Park allotted 5,000 sq.m area with well connected to sea ports & airports and well designed infrastructure. The RAKIA Industrial Authority also offering a 100% Sales & Income tax, Corporate Tax and duty free environment for their economic in and out flows. The Authority also offering 100% foreign ownership for free zone companies and 100% repatriation of capital and profits and no foreign exchange controls. There is no restriction on hiring expatriates for industries.

Mr. V.S. Raju, appreciated the Ras Al Khaima Investment Authority and he said that the RAK Government encourages development through private sector and believes that the role of the Government is primarily to create an optimum environment for enterprises, providing enabling infrastructures, utilities and services and making sure that the Government is an effective partner-supporting and empowering the private sector. RAK has long been one of the industrial centre’s of the UAE. The industrial sector has been dominated by the three main industries of Cement, Ceramics and Pharmaceuticals. The sector has diversified in the recent years especially since the creation of free zones as well as partnerships between government and foreign investors. RAK Investment Authority is one of the fastest growing, cost effective free zones of the region and it is rapidly emerging as the preferred business hub in the Middle East. It is home to some 5000+ active companies representing more than 106 countries around the world.

Mr Shyam Sunder Pasari explained about the trade bilateral relations. He said that – the bilateral trade between India and United Arab Emirates (UAE) grew by 300% in the last five years with UAE emerging as India's top most trading partner representing 60% of India's export to GCC countries in 2009-10. The total bilateral trade increased from $ 12,945.87 million in 2005-06 to $ 43,469.50 million in 2009-10. The exports from India went up from $ 8,591.79 million in 2005-06 to $ 23,970.40 million in 2009-10. Similarly, imports from UAE went up from $ 4,354.08 million in 2005-06 to $ 19,499.10 million in 2009-10. The top five exportable items from India to UAE are gems and jewellery, petroleum crude and products, rice (basmati), machinery and instruments and manufactures of metals. Similarly, top five importable items from UAE to India are petroleum (crude and products), gold, pearls, precious and semi-precious stones, metal ferrous ores and metal scrap and non-ferrous metals. In 2010-11, the UAE remained the largest importer of gold jewellery, precious and semi-precious gems from India, accounting for 47 percent of the total Indian exports in the segment. India has a vast market and UAE investors would find industrial partners in India to set up mutually advantageous industrial complexes in the Gulf as well as in India and third countries to cater to the markets worldwide.

Mr. Aseeb Abdul Khader, CA Ashok Sridharan, Investment Consultants of RAK Investment Authority, Mr. Srinivas Ayyadevara, Vice President, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI have addressed to the gathering.

ECO-SYSTEM always improving the quality of human life: Mr VS Raju

The Andhra Pradesh Pollution Control Board in association with The Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) organized a Seminar on ‘Carbon Credit & Carbon Auditing’ on 19^th October 2011 at Federation House, Red Hills, Hyderabad. Mr V.S. Rju, President, FAPCCI was inaugurated the seminar.

Mr. V.S. Raju explained about a study by the World Health Organization (WHO, 2009) estimated the effect of climate change on human health. Climate change was estimated to have been responsible for 3% of diarrhea, 3% of malaria, and 3.8% of dengue fever deaths worldwide. Total attributable mortality was about 0.2% of deaths, of these, 85% were child deaths. The industrialized countries are the major contributors to these emissions compared to the developing countries. India, being one of the developing countries has ratified the Kyoto Protocol and is emerging as one of the leading carbon traders under the Clean Development Mechanism of Kyoto Protocol.

Mr. Raju also said that “Carbon Credit is a permit that allows a holder to emit 1 ton of carbon-dioxide which can be traded in the international market at their current market prices”. It is a certificate showing that company has paid to have a certain amount of Carbon-dioxide removed from the environment. Carbon credits are a part of international emission trading norms. They incentivize companies or countries that emit less carbon. The total annual emissions are capped and the market allocates a monetary value to any shortfall through trading. Businesses can exchange, buy or sell carbon credits in international markets at the prevailing market price. Thus the devil carbon-dioxide, the most important greenhouse gas produced by combustion of fuels is now turning into a product that helps people, countries, consultants, traders, corporations and even farmers earn billions of rupees. This was an unimaginable trading opportunity not more than a decade ago.

Mr. Rajkumar Agrawal, Chairman, Environment Committee, FAPCCI said that the Clean Development Mechanism (CDM) is an arrangement under the Kyoto Protocol allowing industrialized countries with a greenhouse gas reduction commitment to invest in emission reducing projects in developing countries as an alternative to what is generally considered more costly emission reductions in their own countries. The developed country would be given credits (Carbon Credits) for meeting its emission reduction targets, while the developing country would receive the capital and clean technology to implement the project. Carbon credits are certificates issued to countries that reduce their emission of GHG (greenhouse gases) which causes global warming. Carbon credits are measured in units of certified emission reductions (CERs). Each CER is equivalent to one tonne of carbon dioxide reduction. A company has two ways to reduce emissions. One, it can reduce the GHG (greenhouse gases) by adopting new technology or improving upon the existing technology to attain the new norms for emission of gases. Or it can tie up with developing nations and help them set up new technology that is eco-friendly, thereby helping developing country or its companies 'earn' credits.

India, China and some other Asian countries have the advantage because they are developing countries. Any company, factory or farm owner in India can get linked to United Nations Framework Convention on Climate Change and know the 'standard' level of carbon emission allowed for its outfit or activity. The extent to which the company is emitting less carbon (as per standard fixed by UNFCCC) it gets credited in a developing country. This is called carbon credit. These credits are bought over by the companies of developed countries -- mostly Europeans -- because the United States has not signed the Kyoto Protocol. India and China are likely to emerge as the biggest sellers and Europe is going to be the biggest buyers of carbon credits. In 2008-09 global carbon credit trading was estimated at $5 billion, with India's contribution at around $1 billion. India is one of the countries that have 'credits' for emitting less carbon. India and China have surplus credit to offer to countries that have a deficit Mr. Rajkumar Agarwal said.

Mr Seetaram Varma said to the participants that the Sustainability simply defined means improving the quality of human life while living within the carrying of supporting ECO-SYSTEM. The carbon audit will provide your business with a complete diagnosis of its current position and enable the development of accurate energy efficiency initiatives that result in reductions in cost & emission. Studies have shown that Companies use more energy than they need, resulting in unnecessary cost & damage to environment. The carbon credit life cycle assessment analyzes the mass and energy flows in all the steps of a life cycle, Quantifies impacts to human health and to the environment and aims to help decision-makers understand the size and sources of environmental impacts along the life cycle.

Mr. Devendra Surana, Senior Vice President, FAPCCI, Mr. Sitaram Varma, Member, Environment Committee, FAPCCI, Mr. Santosh Kumar Kulkarni, Manager, M/s. Ernst & Young, Mr. Mohan Reddy, Director, M/s. Zenith Carbon, Mr. Subramanyam, Director, M/s. Siri Exergy, Mr. Harsha Yadav, Director, M/s. Efficient Carbon and Mr. A.S. Kumar, Deputy Secretary General, FAPCCI have addressed to the gathering.

India-Malaysia trade to reach $15 bn by 2015

India-Malaysia trade to reach $15 bn by 2015 said His Excellence Mr. Shah Nizam Ahmed, Consul (Trade), Consulate General of Malaysia.

The FAPCCI in association with Consulate General of Malaysia, Chennai organized a round table meeting with His Excellence Mr. Shah Nizam Ahmed, Consul (Trade), Consulate General of Malaysia.

Mr. Shah Nizam Ahmed said to the participants that the Malaysia and India already has concrete trade relations through Comprehensive Economic Cooperation Agreement (CECA). Now, Malaysia wants to develop direct trade with India and other Asian countries. India is Malaysia’s largest trading partner among countries of the South, excluding ASEAN and
China. Similarly, Malaysia has emerged as India’s second largest trading partner in the ASEAN after Singapore.

Malaysia and India have set a bilateral trade target of US$15 billion by 2015. The CECA inked, is a free trade agreement which covers trade in goods and services and investment as well as economic cooperation.

Mr. V.S. Raju said that the India was Malaysia’s 13th largest trading partner in 2010 with exports amounting to US$6.5 billion and imports valued at US$2.4 billion.

Mr. Abu Bakar Koyakutty, Director, Oil & Gas and Chemical Trade and Services Promotion Division, Malaysian External Trade Development Corporation, Malaysia, Mr. Shyam Sunder Pasari, Chairman, International Committee, FAPCCI, Mr. Hari Haran, Co-Chairman, International Trade Committee, FAPCCI, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI, Mr. A.S. Kumar, Deputy Secretary General, FAPCCI have participated at the round table.

FAPCCI Representation to the Chief Minister

A ten member delegation team from the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) inclusive of Mr. V.S. Raju, President, Mr. Devendra Surana, Sr. Vice President, Mr. Srinivas Ayyadevara, Vice President, Mr. Shekhar Agarwal, Past President, Mr. K. Bhaskara Reddy, Chairman Agriculture Committee, Mr. Meela Jayadev, Chairman, Indirect Taxes Committee, Mr. V. Anil Reddy, Chairman, Energy Committee, Mr. Anil Agarwal, Co Chairman, Energy Committee, Mr. M.V. Rajeshwara Rao, Secretary General and Mr. Venkateshwarlu B, Assistant Director meet the Hon’ble Chief Minister of Andhra Pradesh Mr N. Kiran Kumar Reddy, on 14^th October 2011 at CM Camp Office, Begumpet, Hyderabad to explain the ‘Effect of “Sakala Janula Samme” and Power Holidays on Industry’. The FAPCCI team also requested the Chief Minister for ‘Postponement of payment of power bills, VAT, Excise duties and bank installments’.

Effect of “Samme” and Power Holidays on Industry

The Industry has already lost Rs. 8,750 crore in the last 30 days of “sakala janula samme”. This loss accounts for 2.9 percent of industry’s annual production and pulls down the State GDP by 0.72 percent – a major loss to the State. Further, the condition of the industry is most critical and grave and it is deteriorating day by day. It cannot wait any more and the prime need is 100 percent power supply, else it will collapse.

Today the industry gets power only for three days in a week with additional 4-hour power cut during peak hours of the day. Effectively, the industry gets power only 40 percent of its requirement thereby industry is losing 60 percent of its productive capacity.

This has serious implications for its survival and sustainability. Many MSME units have become sick and many are on the verge of sickness. Even medium and large units are running into financial problems. There are many other grave implications that the industry is suffering from. They are:

1. The industry has lost about 60,000 jobs in the past one month.
2. These job losses lead to social unrest and economic distress in the State.
3. Customers have lost confidence as their supplies are not delivered on time.
4. As a consequence, it is becoming very difficult the future orders from the customers.
5. This is a serious matter. It leads to stagnation or even negative industrial growth, with attendant ill effects, such as drop in tax revenues affecting the State’s development programs and welfare schemes.
6. Industrial sickness in the State is rapidly increasing.
7. Banks suffer and end up in large number of NPAs.
8. Investor’s confidence is also shaken. New investments and expansions will be either cancelled or delayed.

The strikes, rasta-rokos and power cuts are compounding the problems of the industry, which is already being impacted by the slowdown in the world economy due mainly to sovereign debt problems faced by Europe and USA.

Another major concern to the State is that the Delhi-Mumbai-Industrial-Zone and Gujarat are acting as major magnets attracting and sucking in huge investments from all across the country and from abroad.

Besides these challenges, the share of manufacturing sector in Andhra Pradesh is around 11 percent as against country’s share of 16 percent of GDP. The GOI has set a target to increase it to 25 percent. With all these problems, our State will have herculean problems to raise it to 25 percent and catch up with the rest of the country.

These are major concerns and challenges we are up against. We seek your support and positive action. The first thing we request the Hon’ble Chief Minister is to increase the power availability and ensure supply of 100 percent power to industry to gear it up to make up the losses incurred so far. Only will the power – 100 percent power – save the industry from collapse. Sir, it cannot wait any longer.

Lastly, as an immediate measure to mitigate the worst suffering the industry has been facing, we enclose a separate representation for your favorable consideration.

Postponement of payment of

Power bills, VAT. Excise duties and bank installments

The Industry has already lost Rs. 8,750 crore in the last 30 days of “sakala janula samme”. The loss accounts for 2.9 percent of industry’s annual production and 0.72 percent of GSDP – a major loss to the State and its economy. Sir, the condition is most critical and grave and it is deteriorating day by day. It cannot wait any more and the prime need is 100 percent power supply. Otherwise it will collapse.

Today the industry gets power only for three days in a week with 4-hour power cut during the peak hours of the day. Effectively, the industry gets power only for 40 percent of the time in a week. So it is losing 60 percent of its productive capacity.

This has serious implications for the survival and sustainability of the industry. Many MSME units have become sick and many are on the verge of sickness. Even medium and large units are running into financial problems.

In view of the above, we request the Hon’ble Chief Minister to come to the rescue of the Industry and consider the following:

1. We request the restoration of power supply to the industry by 100 percent. Thereafter, the industry should be allowed to pay the power bills one month after the due date. Till that time the power bills should be kept pending.
2. Similarly, we request the payment of VAT to be postponed by one month after the power has been restored by 100 percent. Till such time all the tax collections should kept in abeyance.
3. There is also a problem to pay the excise duties and bank installments. We request the Hon’ble Chief Minister to write to central government authorities to postpone the payments of taxes and similar to banks as well as to the RBI for payment of installments by one month from the date of restoring the power to the industry by 100 percent.

This facility will relieve the suffering of the industry to some extent. We earnestly request the Hon’ble Chief Minister to consider it favourably.

South Australia was 11th most attractive destination Mining

The Trade Commissioner Office, Government of South Australia in association with The Federation of Andhra Pradesh Chambers of Commerce and Industry jointly organized an Interactive Meeting on ‘Indo-South Australia Bilateral Trade Relations’ on 14^th October 2011 at J.S. Krishna Murthy Hall, Federation House, Red Hills, Hydrabad.

Mr. A.K. Tareen, Senior Trade Commissioner – India, Government of South Australia was the Chief Guest for the occasion. Mr. V.S Raju, President, FAPCCI, Mr. Devendra Surana, Senior Vice President, Mr. Srinivas Ayyadevara, Vice President, Mr. Shyam Sunder Pasari, Chairman, International Trade Committee, FAPCCI, Mr. M.V. Rajeshwara Rao, Secretary General, FAPCCI are the other key speakers at the occasion.

Mr. A.K. Tareen said that the South Australia was the sister friendly country for the Indians and 8^th Most Liveable city in the world. He said that the innumerous possibilities and opportunities that lay ahead of the two nations in order to enhance bilateral trade relations. India is South Australia’s fourth largest export market. The South Australia was 11^th most attractive destination worldwide for Mining sector and India has tremendous scope to enter into bilateral partnerships in this sector since mining is one of the strongest arenas as well. India could well turn into the biggest partner for mining.

Mr. Tareen also invited the Indian industrialists to invest in wine, infrastructure development including roads, ports, airports and railways; power sector; oil and natural gas; biotechnology; drugs and pharmaceuticals; information technology; water management, soil conservation and waste disposal; food processing and agribusiness; film and television; processing of gems and jewellery; tourism; and education sectors.

Mr. V.S. Raju India and Australia have embarked upon talks to conclude an ambitious Comprehensive Economic Cooperation Agreement and the latest engagement resulted in an initiative being launched to develop two-way trade between the two nations and its success is expected to add over $40 billion to each economy by 2016. I am sure, with the frequent visits of Australian Officials and greater awareness about the Australian market, the target set would be definitely achieved.

So far, Indian companies have invested around $3 billion in Australia, dominated by coal. Recently, the GVK Group announced a deal to acquire Hancock Coal for $1.26 billion. It plans to invest an additional $6 billion to develop assets. Early this year, Lanco Infratech acquired assets of Griffin Coal in a $760-million deal. Australia has so far attracted a global investment of $83 billion in the resources sector alone, while the pipeline is at an estimated $430 billion. South Australia is one of the exciting investment and trade destinations for international developers requiring a strategically located business base in the Asia Pacific. South Australia’s economic performance in recent years has been strong. Its mining, defense, clean technology and education sectors are attracting international investment and attention, apart from its long-standing expertise in manufacturing, agriculture, wine and health services Mr. Raju said.

FAPCCI requested CM to Postponement of bills

A ten member delegation team from the Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI) inclusive of Mr. V.S. Raju, President, Mr. Devendra Surana, Sr. Vice President, Mr. Srinivas Ayyadevara, Vice President, Mr. Shekhar Agarwal, Past President, Mr. K. Bhaskara Reddy, Chairman Agriculture Committee, Mr. Meela Jayadev, Chairman, Indirect Taxes Committee, Mr. V. Anil Reddy, Chairman, Energy Committee, Mr. Anil Agarwal, Co Chairman, Energy Committee and Mr. M.V. Rajeshwara Rao, Secretary General meet the Hon’ble Chief Minister of Andhra Pradesh Mr N. Kiran Kumar Reddy, on 14^th October 2011 at CM Camp Office, Begumpet, Hyderabad to explain the ‘Effect of “Sakala Janula Samme” and Power Holidays on Industry’. The FAPCCI team also requested the Chief Minister for ‘Postponement of payment of power bills, VAT, Excise duties and bank installments’.

The Industry has already lost Rs. 8,750 crore in the last 30 days of “sakala janula samme”. The loss accounts for 2.9 percent of industry’s annual production and 0.72 percent of GSDP – a major loss to the State and its economy. Sir, the condition is most critical and grave and it is deteriorating day by day. It cannot wait any more and the prime need is 100 percent power supply. Otherwise it will collapse.

Today the industry gets power only for three days in a week with 4-hour power cut during the peak hours of the day. Effectively, the industry gets power only for 40 percent of the time in a week. So it is losing 60 percent of its productive capacity.

This has serious implications for the survival and sustainability of the industry. Many MSME units have become sick and many are on the verge of sickness. Even medium and large units are running into financial problems.

In view of the above, we request the Hon’ble Chief Minister to come to the rescue of the Industry and consider the following:

1. We request the restoration of power supply to the industry by 100 percent. Thereafter, the industry should be allowed to pay the power bills one month after the due date. Till that time the power bills should be kept pending.

2. Similarly, we request the payment of VAT to be postponed by one month after the power has been restored by 100 percent. Till such time all the tax collections should kept in abeyance.

3. There is also a problem to pay the excise duties and bank installments. We request the Hon’ble Chief Minister to write to central government authorities to postpone the payments of taxes and similar to banks as well as to the RBI for payment of installments by one month from the date of restoring the power to the industry by 100 percent.

This facility will relieve the suffering of the industry to some extent. We earnestly request the Hon’ble Chief Minister to consider it favourably.