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P r e s i d e n t ’s d e s k
Ram Venkataramani President
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Volume 30, Nos. 9-10 – December 2016 – January 2017
in the budget. To stimulate growth in the Auto Industry, a scrappage policy for old polluting vehicles would have been welcomed by the Industries. Further, sufficient encouragement was not given to R & D and innovation, which are keys to future growth. With regard to the Corporate, though the expectation was high regarding a tax reduction, considering the tight situation the corporate are facing currently, no such announcement in this budget was a disappointment. Similarly continuation of the double taxation policy in the dividend is a disappointment and is a disincentive for risk capital. Also the salaried class, who contribute to a large share of direct tax revenues of the Government, may be disappointed with inadequate positives for them on the Income tax front. There were high expectations with regard to a clear road map for GST implementation and we feel this was not addressed adequately. Despite the assurances made by the FM with respect to introduction of GST, there still remain apprehensions whether the changeover to the new system will happen on time and in a smooth manner. Further, the merger of Railway Budget with the Union Budget did not give space for transparency in the railway budget and made it opaque.” There is a general thought among the members that he combined budget which has been tabled ahead of time could have done more to remove negative sentiments and improve consumption and investment. On this note, I would like to add that Budget announcements alone cannot bring all the changes that are aimed at. Time bound implementation with well defined end results is the key. It is believed that India has the potential to grow between eight to 10 per cent if the country continues the pace of reforms. Let us hope this happens !
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Dear Member Union Budget 2017-2018 As we are all aware, this year, we had our Union Budget presented to us almost one month in advance on February 1, 2017. In our country, the budget expectations are usually high as policy reforms are usually announced for the ensuing years. This year, was no exception as this budget 2017 was unique and historic in more than one way, starting with the advancement in the date of presentation of the Budget to February 1st, consolidation of the Railway Budget and in the backdrop of demonetization effects and proposed GST implementation. In the run up to this budget, the Indian economy that seemed to have stabilized on a growth trajectory registering GDP growth of around 7.6 per cent was subjected to a sudden slow down with the demonetization announcement. Though the decision was laudable for efforts to curb black money, it caused significant liquidity issues and is expected to have lasting impact on a number of sectors including Real Estate, automobiles, FMCG etc, at least for some more time. The Positive aspect in this budget is the maintenance of fiscal deficit at 3.2% of GDP. In spite of demonetization, we are on the right path towards maintaining fiscal discipline. Further, the Government’s main agenda to transform energize and clean India - TEC India has to be lauded. The approach in spending more on rural areas, infrastructure and poverty alleviation with fiscal prudence is a positive and welcome move. In India, nearly 96% of companies fall in the category of medium and small industries with less than 50 crore turnover. The reduction for tax for such companies from 30% to 25% was welcomed. From the Industry and business point of view, abolition of FIPB; codifying the labour laws, no moves on long term capital gains for equities, no increase in service tax, providing more clarity to aspects of domestic transfer pricing are appreciative measures. The budget announcements with regard to the infrastructure; Multi model logistical parks, connectivity between roads and ports, construction of 133km road per day, expansion plans for Airports in Tier II cities, and the new metro policy which will bring employment to youth are all positive aspects. The digital thrust and the focus on making India the Electronic hub is a positive move, but should be supported by concrete plans. Focus on Skill development with an industry centric approach, providing online learning platforms; reforms in education, including provision for common testing are all welcome moves for the industries which are starving for skilled manpower. On the tax proposals, widening the tax base and increasing the compliance is a laudable objective. The proposed changes in the capital gains tax and the increased concessions to the SMEs are to be welcomed. On the flip side, there is a lack of encouragement for manufacturing sector, including the Auto sector which did not get its share of attention
SPE CIA L PROG R A M
2nd & 3rd December, 2016
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Power Conference on “Creating a Secure, Sustainable and Vibrant Energy Future for Tamil Nadu" The Madras Chamber, in association with India Energy Forum, organized the 4th Power Conference on “Creating a Secure, Sustainable and Vibrant Energy Future for Tamil Nadu” on Friday & Saturday, 2nd & 3rd December, 2016 at the L & T Auditorium. ICRA Management Consulting Services (IMaCS) was the Knowledge Partner and L & T Construction, Chennai was the Industry Partner for this Conference. The sponsors for this Conference were Grundfos Pumps India Pvt Ltd, Trip Midas, State Bank of India and Socomec. Mr. Ram Venkataramani, President, MCCI in his welcome address set the tone for the conference on a positive note by stating that Tamil Nadu’s power deficit has been reduced significantly and is in a position to become power surplus in 2018. Mr. Anil Razdan IAS Retd. President, IEF stated that Tamil Nadu enjoys a leadership position amongst all states in India and the power situation has improved significantly in the last 4 years. He further added that the Global scenario for energy has also undergone a change and India’s energy growth potential has also increased with ambitious targets set for Solar
Mr.S.Krishnan, I.A.S, Principal Secretary, (Planning & Development), OSD Fourteenth Finance Commission & Special Initiatives (Full Additional Charge), Govt. of Tamil Nadu addressing the audience.
and Wind. As for away forward, he stated that Tamil Nadu has the land and potential for wind. However existing wind turbine generators have lower efficiency and there is a need to repower & retrofit the same Mr. Raghuttama Rao, MD, ICRA Management Consultancy Services, in his presentation elaborated on the current power scenario in Tamil Nadu. Tamil Nadu has managed to cut its power deficit in the last few years – From 17.5% in 2013 to 0.7% in 2016, he said. Tamil Nadu has enjoyed a leadership position in Renewable power and has been aggressively moving ahead with RE capacity additions. Though these are the positives, he informed that the TANGEDCO’s financial health is still worrisome and its losses are high. Restructuring to improve financial viability is necessary. He concluded by stating that a speedy resolution to tap assistance under UDAY can be a good starting point, but needs to be followed up with operational transformation Mr. T. Madhavadas, Executive Vice President & Head – Power Transmission & Distribution Business, L & T Construction, Chennai in his address mentioned about L & T’s role in the Tamil Nadu Power Sector. Mr. Rajeev Ranjan IAS – Additional Chief Secretary to Government - Highways and Minor Ports Department and Energy Department (In-charge), Government of Tamil Nadu in his Chief Guest address reiterated that Tamil Nadu has maintained a leadership position in Renewable Energy and has been able to come out of its power deficit situation. He detailed on the Challenges for TANGEDCO and TNERC and stated that the Financial Health of TANGEDCO needs to be addressed and informed that Tamil Nadu will be joining the UDAY Scheme which has been approved by the state cabinet. However there are some issues which need to be sorted out Mr. Venkatachalam, Managing Director, Orient Green Power and Chairman, Energy Committee, MCCI proposed the formal vote of thanks.
Mr Anil Razdan, IAS (Retd.), President, IEF, New Delhi chairing the Technical session - I. Other seen in picture are (l to r) Mr.V.Thangapandian, Mr.Ram Venkataramani, Mr,S.Krishnan, Mr.S.Shivakumar & Mr.Y.R.Mehta
In the Technical Session – I Mr. S. Krishnan, I.A.S – Principal Secretary (Planning & Development) OSD Fourteenth Finance Commission & Special Initiatives (Full
Mr. Anil Razan, Chairman for the Technical Session made his observations for planning for Energy Infrastructure.
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Ms.K.Saraswathi inviting the Panelists for the Technical Session – III. (l to r : Mr.C.S.Raghuram, Mr.B.A.Karthikeyan, Mr.H.L.Bajaj & Mr.J.Nagesh Kumar)
Mr. Y.R. Mehta, Former Director, GAIL, in his address informed about the Ennore LNG Terminal being set up by the IOC and the shift to Natural Gas and opportunities for using LNG in Tamil Nadu which would emulate the Gujarat success story. In the Technical Session – II, Mr. H.L. Bajaj, Former Chairman, CEA, Ex Officio Secretary to GoI, and Former Member, APTEL spoke about the role of the Electricity Regulatory Commission. Mr. J. George, VP, Operational Energy Group India Ltd, addressed about the Tamil Nadu’s Power Scenario and the role of Operational Energy group in the power sector Mr. Anand Madhavan, GM, ICRA Management Consulting Services Ltd., addressed on the power sector regulations and policy that are complex and layered and elaborated on the steps to overcome challenges that TANGEDCO faces.
Dr.S.Gomathinayagam chairing the Technical Session – 4. Panelists from l to r : Mr.S.Venkatachalam, Managing Director, Orient Green Power; Mr.Madhusudhan Khemka, Managing Director, ReGen Powertech Pvt.Ltd.,; Mr.A.Balakrishnan, General Manager (Technical), TEDA & Mr.E.Raghunathan
Mr.S.Venkatachalam proposing the vote of thanks on the Valedictory Session. Others in picture are (l to r : Ms.K.Sarasswathi, Secretary General, MCCI, Mr.T.Shivaraman, Past President, MCCI & MD & CEO, Shriram EPC Ltd., & Mr.P.B.Varadarajan, Co-Chairman, MCCI’s Energy Committee)
Volume 30, Nos. 9-10 – December 2016 – January 2017
Mr.S. Shivakumar, General Manager, Coastal Energy Pvt Ltd., in his presentation gave details about the Tamil Nadu’s Energy Scenario and its transformation from power deficit to power surplus and the role of Coastal Energy in creating power surplus
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Mr. V. Thangapandian, Director, Power, Neyveli Lignite Corporation Ltd. in his presentation covered about the role of NLC India Ltd in contributing power from the solar and wind power projects apart from their lignite and coal based power plants. He gave the installed capacities in Tamil Nadu, the addition plan, the current power scenario, constraints in the operations of existing Thermal Power Plants and ways to incorporate Renewable Energy along with Thermal Power Generation.
Mr.H.L.Bajaj, Former Chairman, CEA chairing the Technical Session – II. Others seen are Mr.J.George (on right) & Mr.Anand Madhavan (on left)
S PE CIA L PROG RA M
Additional Charge) Government of Tamil Nadu, Special Guest made a powerful address stating there is a paradigm shift in power demand and there is a need for a new perspective to renovate and revitalize existing power projects. He also elaborated on the challenges faced by the Power Sector in Tamil Nadu. Further, he informed that Tamil Nadu is taking proactive steps in power capacity addition and power projects revitalization. In his address, he focused on the areas for improvement in the power sector in Tamil Nadu and on measures for improving the financial strength of DISCOMS.
special program
In Technical Session – III, Mr H.L. Bajaj. Former Chairman CEA, Ex- Officio Secretary to GoI and Former Member APTEL was the Chairman of the Session.
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Mr. C.S. Raghuram, Director, C.R.Narayana Rao Architects in his address explained about the role of architecture and planning in energy efficiency in the built environment. Mr. Karthigeyan BA, Area Sales Manager, Keselec Schreder Pvt Ltd., addressed about the lighting load in India which is very high with a case study about the Energy Saving project by the Corporation of Chennai. Dr. J. Nagesh Kumar, Director, Centre for Energy, Environment & Productivity (CEEP) touched upon the energy conservation and its importance in his address and the Government initiatives for energy efficiency measures. In Technical Session–IV, Dr. S. GomathinayagamDirector General, National Institute of Wind Energy chaired the session and addressed on the present scenario of wind energy in India and the huge potential that exists for off shore wind projects in Tamil Nadu and steps to overcome the challenges in wind power in India. Mr. Madhu Sudhan Khemka, Managing Director, ReGen Powertech Pvt. Ltd. addressed on the journey of Re Gen in wind energy in India and the wind vs solar power. He further elaborated on how Wind Solar hybrids will assist in overcoming challenges of infirm power of solar and wind. Mr. A. Balakrishnan, General Manager (Technical) Tamil Nadu Energy Development Agency, (TEDA) addressed on the role and various other renewable energy programs of TEDA in Tamil Nadu and the
A view of the audience
models for implementing solar roof top projects. Mr. K.E. Raghunathan, MD, Solkar Industry Ltd. addressed about how sustainable the growth of solar Industry Mr. S. Venkatachalam- Managing Director, Orient Green Power Co. Ltd made a presentation on Biomass gasification for power generation that can offer additional advantages of curbing air pollution and generating rural employment and the reasons for biomass gasification not becoming a viable renewable energy power generation solution. Mr. T. Shivaraman, Managing Director & CEO, Shriram EPC Ltd., and Past President, MCCI in his valedictory address stated there is a change in Power scenario in Tamil Nadu and that we are moving ahead in the right direction. The two day conference concluded on a positive note with a participation of 85 persons who had a lively interaction with the speakers.
SO W I N G THE SEEDS 22nd December 2016
Visit to Wabco India Ltd.
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he Chamber under the auspices of the Expert Committee on Manufacturing arranged an exposure visit to Wabco India Ltd’s headquarters at Chennai on 22nd December 2016. This visit was arranged to have a firsthand knowledge of the good practices followed in manufacturing line and the various innovative production techniques. Further, the objective of the visit was to enable the participants to understand the initiatives to deliver the Quality, Cost, Delivery rate with highest level of safety to the expectations of the developed nations. Mr. P.Jegannathan, VP – Manufacturing & Logistics, Wabco and Chairman, Manufacturing Committee of MCCI who was instrumental in arranging this visit made a brief presentation on the activities of Wabco.
Mr. P.Jegannathan, VP – Manufacturing & Logistics, Wabco & Chairman, Manufacturing Committee welcoming the delegates
After the presentation, there was a guided tour of their facilities followed by an interaction session with the participants. The lunch for the participants was hosted by Wabco The 25 participants from various member companies gave a positive feedback.
27TH January 2017
Interactive Meeting with Regional PF Commissioner & Regional Director, ESI Corporation S OW ING TH E SE E DS
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he Chamber organized an Interactive meeting with the Officials of Chennai PF Commissionerate and ESI Corporation, Chennai on 27th January 2017 at Hotel Deccan Plaza, Chennai. The objective of the meeting was to update the members about the latest changes in PF & ESI rules, updating the new schemes and to facilitate an interaction with the senior officials for mutual understanding.
be followed for entering into the scheme and the other on the eligibility, incentives available to employer and what happens after March 31, 2017.
Two presentations were made by the officials from the PF Regional Commissioner’s office. One on the Employees Enrolment Campaign 2017, Amnesty Scheme and the procedures to
The interactive session was good with 65 members participating in this program. The program concluded with hi tea.
A section of audience
The ESI officials made a presentation on the ESI schemes.
together we grow 15th and 16th December 2016
7th International Conference on Development Policy - Joint Program with Avinashilingam Institute for Home Science and Higher Education for Women, Coimbatore
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he Avinashilingam Institute for Home Science and Higher Education for Women, (Deemed University Estd u/s 3 of the UGC Act 1956) India in collaboration with The Centre for Advanced Studies in Corporate Governance, Entrepreneurship and Finance (CASCEF), Institute of Finance Management (IFM), Dar Es Salaam, Tanzania jointly organized the 7th International Conference on Development Policy on 15th
Ms.K.Saraswathi, Secretary General, MCCI addressing the audience
and 16th December 2016 with the support of Madras Chamber of Commerce and Industry, Chennai. Dr.U.Jerinabi, Dean, Faculty of Business Administration delivered the welcome address. Padma Shri Dr.P.R.Krishnakumar Chancellor, Avinashilingam University delivered his presidential address and declared the opening of the conference.
Volume 30, Nos. 9-10 – December 2016 – January 2017
Mr. P B Mani, Regional Director, ESI Corporation elaborated on ESI provisions and its benefits to the participants. He informed that his officials would elaborated on the Scheme to promote registration of employers and employees. (SPREE) with its mandate, features and objectives.
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Mr.Salil Sankar, Regional PF Commissioner while addressing the participants made it clear to them that the Regional PF Commissioner’s office had made tremendous changes in their approach towards it customers and is all set to assist the Industries and its employees. He briefed on the Employees Enrolment Campaign 2017 or the Pradhan Mantri Rojgar Protsahan Yojana and informed that his office will make an elaborate presentation for the benefit of the participants.
Mr.Salil Sankar, Regional PF Commissioner interacting with participants. Others in the picture are (l to r : Ms.K.Saraswathi, Secretary General, MCCI, Mr.P.B.Mani, Regional Director, ESI Corporation & Mr.Ritu Raj Medhi)
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The Conference was inaugurated by the Hon’ble Union Railway Minister Shri. Suresh Prabhakar Prabhu through Video Conferencing. He congratulated the organizers for selecting the topic at the right time when the nation is undergoing positive changes through reforms of Hon’ble Prime Minister Narendra Modiji such as ‘Digital India, Make in India and Swach Bharat’. After the inaugural address of the Hon’ble Railway Minister, Mr. Mohammed Hija Mohammed, Hon’ble Deputy High Commissioner of Tanzania to India delivered his keynote address. In his speech, he reiterated the vision of Indian Prime Minister and Tanzania President. Mrs. K. Saraswathi, General Secretary of The Madras Chamber of Commerce and Industry (MCCI) showcased the measures taken by the chamber towards economic development. Further, she offered that the chamber would be willing to work with academic institutions towards strengthening industrial ties through skill development and promoting entrepreneurial development. Prof. Tadeo A. Satta, Rector of the Institute of Finance Management (IFM), Tanzania spoke about economic policies, reforms and development happening at Tanzania and related the close observation of economic reforms of India to that of Tanzania. Dr.
Premavathy
Vijayan,
Vice
Chancellor,
Avinashilingam University discussed about the measures taken by the University to promote digitalization and financial literacy among rural India through the students of the University. Dr. P. Chitramani, Professor and Head of Avinashilingam School of Management Technology briefed about the conceptualization of the Conference theme and also detailed about various panel discussion to be held and key note sessions to happen on both days of conference. Followed by the Inaugural Session the two day conference had panel discussions on the various topics. In the Valedictory session, Mrs.Devika Ramesh, Executive Director, AREMPEE Compressors Pvt.Ltd., Chairperson, FICCI Ladies Organization gave her valediction address. The closing remarks were given by Dr.Godwin Kaganda, Dean, Faculty of Economics & Management Sciences, IFM, Tanzania and Dr.J.Arthi, Assistant Professor (SG), Avinashilingam School of Management Technology. The two day UGC sponsored International Conference concluded on 16th December 2016 with more than 300 students and others participating in the conference.
16th December 2016
SME Conclave on “How your savings can make money for you ?
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he Chamber in association with SBI Mutual Fund and The Hindu Business Line organised the Propel SME Conclave on the topic “How your Savings can make Money for you? on 16th December at the Hotel Accord Metropolitan, Chennai. The Hindu Business Line has been conducting the SME Conclave in different places under their banner “Propel”. The current conclave aimed to discuss the financial management tips for MSMEs in the context of SME Funding and Treasury Management. The Key note speaker, Mr. Raghuttama Rao, Managing Director, ICRA Management in his address stated that the SMEs, especially the ones in the manufacturing sector in India have a huge opportunity for growth in the Country. He stated that SMEs account for 45% of the total industry output and 40 % of the total exports. Yet, there is not sufficient data available on these enterprises. In reality, most of them do not scale up. He further added that only 10 per cent of SMEs have access to the credits available in the bank. In the Panel discussion, Mr. A.N. Jha, General Manager, State Bank of India stated that most of the industries do not equip themselves to scale up and are not competitive enough. He added that as and when the companies scale up, they should
Mr.R.Raghuttama Rao, Member, MCCI General Committee & Managing Director, ICRA Management Consulting Services Ltd interacting with audience during the Panel Discussion
remain competitive and be equipped to face challenges. If so the funding from the banks would automatically follow. Mr. Srinivasan, Zonal Head, Federal Bank stated that the lack of collateral security and poor financials affect an enterprise’s ability to access banking and funding. The Companies should take advantage of the many subsidy schemes introduced by the Centre and State Governments. Mr. Raghavan Srinivasan, Editor, Business Line said that Conclaves focusing on MSME sector would help SME’s equip themselves. Hence the Business line is holding a series of such conclaves to create awareness to the SMEs the challenges in policy, taxation and finance. After an interaction with 50 participants, the meeting concluded with Dinner.
20th January 2017
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he Chamber along with TARU, New Delhi, an institution working for two decades on a range of institutional, financial, economic, social and technical issues across diverse public systems, cultures and corporate formations throughout India and National Institute of Urban Affairs (NIUA), New Delhi organized a Workshop on “Urban Flood Mitigation: An approach from vulnerability to resilience – A case of Chennai City ” at GRT Grand Hotel, (Convention Centre) on 20th January 2017 under its Sustainable Chennai Forum(SCF).
Mr.R.Raghuttama Rao, Member, MCCI General Committee & Managing Director, ICRA Management Consulting Services Ltd., welcoming the gathering. Others in the picture are (l to r : Ms.K.Saraswathi, Mr.V.Thiruppugazh, IAS., Mr.Kamal Kishore, Mr.G.K.Bhat, Mr.G.Padmanabhan & Mr.Ajay Katuri)
The broad objectives of the workshop were as follows:To understand climate induced natural hazards, impacts and risks
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Sharing Asian Cities Climate Change Resilience Network (ACCCRN) learning and experiences from Surat and Indore
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Urban Flood mitigation – institutional preparedness and capacity development
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Understanding Best practices for urban flood risk management
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To discuss best practices of Vulnerability to Resilience – cases from Chennai
Mr. R. Raghuttama Rao, Managing Director, ICRA Management Consulting Services Limited and General Committee Member, Madras Chamber welcomed the participants and set the tone for the Workshop. Mr.V.Thiruppugazh, IAS, Adviser, National Disaster Management Authority (NDMA) while addressing the participants appreciated the Madras Chamber and Taru for organising this workshop. He added that all disasters are manmade and this urban floods is a recent phenomenon. But Chennai floods are not new. Urban Floods is a global one. He went on to explain how we have effectively practiced disaster management 5000 years ago. He added that encroachments in water bodies, planning of cities, laying of roads etc. have led to these disasters in the recent times.
He wished for us to cross the stage of resilience and reach an invulnerable development wherein we need not worry for disaster management. He mentioned about the comprehensive guidelines for Urban Flood Management released by National Disaster Management Authority in 2009. He concluded by saying that disaster management should be mass movement and not only restricted to Government bodies and wished success for the program. . Mr. Kamal Kishore, Member, National Disaster Management Authority (NDMA), made a presentation on the Urban Flood Risk Management, Overview of Issues in India. He elaborated on the global Urban Floods, Urban Floods in India, Present and Future risk, the factors driving floods, climate change and urban floods, What needs to be done and the beginnings that have been made. Dr. Uma Ramachandran, Senior Research Manager, Centre for Devp.Finance, IFMR Lead made a presentation on the role of different sectors in demonstrating resilience during Chennai Flood 2015. She briefed on the case studies done in different sectors, namely relief and supplies, health, transport and energy services, emergency services, social networks, small and medium enterprises, Hospitality industry and food supplies. The various innovative measures adopted by different agencies, the suggestions and recommendation to carry forward the activities in future were touched upon in the presentation.
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Mr.V.Thiruppugazh, IAS., Adviser, NDMA delivering his Special Address
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This workshop was organized to discuss about the reducing vulnerabilities of climate induced natural disasters, mitigation of urban flood in the changing climate change and putting resilient actions against it and also to prepare a policy brief on it.
S ustainable Chennai F orum A nniv ersary
Workshop on “Urban Flood Mitigation: An approach from vulnerability to resilience – A case of Chennai City”
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TARU had carried out a study with the support of Asian Cities Climate Change Resilience Network (ACCCRN) on “Role of Various sectors in demonstrating resilience during Chennai Flood 2015”. This report was released in the workshop. Dr. Ajay Katuri,Lead Specialist Urban Planning, Risk & Resilience, Taru Leading Edge Pvt Ltd. proposed the vote of thanks. In the first technical session on “Understanding the flood Hazard and its impact”, Mr. G.Padmanabhan, Emergency Analyst, UNDP, Dr. Tune Usha and Dr. M.V.Ramamurthy, Scientists from National Institute of Ocean Technology and Dr. Balaji Narasimhan, Associate Professor, Civil Engineering Department, IITM, Chennai made presentations followed by an open discussion with the participants. In the Second Session, on Flood Risk Management and mainstreaming the flood disaster resilience into Urban Areas, Dr. N.K.Ambujam, Director, Centre for Water Resources, Anna University and Mr. G.K. Bhat, Chairman Taru Leading Edge Pvt Ltd., made presentations. In the Panel Discussion, Dr. K. R. Thooyavan -Professor (Design Chair); Former Chief Urban Planner – CMDA, Dr. S. Janakarajan - Professor, Madras Institute of Development Studies, Mr. J. Babu Rajendran - Chief Engineer (SWD and Special Projects), Greater Chennai Corporation, Dr. Jayashree Vencatesan – Managing Trustee, Care Earth Trust, Dr. S. Seshadri, Indigenous
Speakers & Panelists along with MCCI & TARU Team
A view of the audience
and Frontier Technology Research Centre (IFTR) and Mr. Gopi Warrier, Independent journalist – Environment and Urban areas took part and had a discussion on the topic “ Building Resilient and Smart Chennai” . They made individual presentations and took up questions from the participants. More than 70 participants took part in the workshop and there was a positive feedback for the workshop.
food for thought 18th January 2017
Cloud Computing – Whether or Wither?
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he Chamber organised the FFT on Cloud Computing – Whether or Wither on 18th January 2017 at Hotel Raintree, Anna Salai, Chennai Mr. J.Raghunathan, Founder Director, Knowledge Capital Investment Group and Chairman, IT/ITes, MCCI Committee welcomed the speakers and set the tone for the FFT. Mr. Praveen Jayakumar, from Amazon Web Services made a presentation on the topic “The New Normal”. He elaborated on what is cloud computing and the advantages of cloud computing. Further, he elaborated on how Amazon is the cloud provider. Mr. Anuj Joshi from Omanvat Web Services made a presentation on “What Cloud is Not?” He stated that Cloud is a fundamental shift in delivery of products and services and explained about how safe Cloud is. He also added that the impact of cloud technology is being felt across sectors and verticals and it is time to change. Mr. Ram, Vice President, Retd. from Tech Mahindra
Mr.S.Ram, Vice President (Retd.), Tech Mahindra making a presentation. Others in the dias (l to r: Mr.Anuj Joshi, Co-Founder and CEO, Omanvat Web Services, Mr.J.Raghunathan, Chairman, MCCI’s Expert Committee on IT/ITES & Founder-Director, KCIG & Mr.Praveen Jayakumar, Territory Business Development Representative, Amazon Web Services
made a presentation on the challenges of Cloud Computing. He stated that Security and Privacy, Service Quality, Access to Data are the challenges. Further, he elaborated on the ways in which the transition can be made to cloud and added that there is a prediction that by 2018, cloud computing market in India will cross 2 Billion $. It was followed by an interaction from 40 participants.
General Committee
Mr.Vikram Kapur, IAS, Principal Secretary, Industries Dept.GoTN interacting with General Committee Members of MCCI
Mr.S.Krishnan, IAS., Principal Secretary (Planning & Development), GoTN interacting with General Committee Members of MCCI
The Following Committees had their meetings in the month of December 2016 and January 2017
CSR, Manufacturing, HR, Company Law
HR Committee
CCCCC Meeting – Condolence Meeting on a sad demise of Dr.Selvi J Jayalalitha, Former Chief Minister of Tamil Nadu
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nder the auspices of the CCCCC, a condolence meeting was organised by the Andhra Chamber of Commerce & Industry. It was presided by Honourable Minister Mr. M.C.Sampath, Minister for Industries, Government of Tamil Nadu. Ms. K.Saraswathi, Secretary General, MCCI took part in as Panelist in the session on ‘Self-Employment Augmenting Opportunities for Livelihoods,’ on Dec 7 at the Livelihoods Asia Summit 2016 at Hotel Le Meridien, N Delhi, held by Hand In Hand India. Ms.K.Saraswathi, Secretary General, Mr. S.Sankaranarayanan, Deputy Secretary, MCCI, Mr.J.Krishnan, Member, General Committee and Mr. Udayabhaskar Reddy, Chairman, Logistics
CCCCC Meeting – Condolence Meeting on a demise of Dr.Selvi J Jayalalitha, Former Chief Minister of Tamil Nadu
Committee, MCCI took part in the meeting with Principal Secretary, Industries Department to discuss about the 2nd meeting of the Council for Trade Development and Promotion on 19th December 2016.
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Company Law Committee
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Expert Committee
doing the honors
In the General Committee meetings held in December 2016 and January 2017, after the general discussions, interactive meetings were held with Mr. Vikram Kapur, IAS, Principal Secretary, Industries Department, Government of Tamil Nadu and Mr. S. Krishnan IAS. Principal Secretary (Planning & Development) OSD Fourteenth Finance Commission & Special Initiatives (Full Additional Charge), Govt. of Tamil Nadu.
expert's corner
“Intelligence – man made…!”
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By Mr. J.Raghunathan, Chairman, IT/ITes, MCCI and Founder Director, Knowledge Capital Investment Group “Have you watched 2001:Space Odyssey or Arnold Schwasnagger’s Terminator II?” If yes, you are already familiar with the popular perception of artificial intelligence, also known as AI. AI has been the subject of numerous sci-fi movies and books in the last decade and it gives you fear and fascination because of the intelligent potential exhibited by machines and computer software. The thought of machines thinking on their own is a bit nervy and you are immediately transported into the belief of good versus evil. But there's more to AI than just sci-fi and fascination! It's also a field of academic study that focuses on computer software capable of intelligent behaviour. What humans can do logically, computer software can do much faster and more accurately. It's played a genuine and beneficial role in technology, ever since IBM's Deep Blue computer, the precursor to the Watson cognitive framework, defeated chess wizard Garry Kasparov in 1997. In the last few years, we are seeing an uprise of AI into the business applications and many pilot projects have established that AI applications have started returning very good value for money in businesses. You and I are unwittingly using AI too! Many people use AI in daily interactions with Siri, that is, those who have Apple phones, and in phone systems that route calls. It's also the brains behind Amazon's voice command device, Echo. It's also used for aviation, and in financial organizations, and in many other industries. In a recent survey done in America, respondents who were also asked whether they thought that AI would be good for their business, a clear majority of 63% felt that it would be beneficial. It was a thin minority of 17% who said a NO! Interestingly, they were asked if AI would be beneficial to the society, a majority of 59% said yes and a 24% felt that AI may harm the society!
While 34% of the respondents expressed that they are afraid of AI, the fear was more from lack of clear understanding of the concept and prospects of AI! The highlight is that 24% are already using AI in their businesses and another 26% are evaluating their potential. It is therefore not improper to say that AI has arrived! IBM’s Watson has started making steady progress in delivering usefulness across some domains. Watson is playing the role of a Mentor in a university in the UK where it helps faculty develop customized curriculum for students based on each student’s specific strengths and choice of subject. A Health care Watson application helped a team of doctors perform a malignant removal surgery which was watched by scores of medical students –a brilliant learning example. AI helps in Gene study and in separating mutating genes so that patient-specific medical care and diagnosis is made feasible. While today, it has become possible to code logical reasoning into AI programs, automating cognitive behaviour is a big challenge that IBM is combating to overcome. Clearly recognizing context-based situations and reacting is not easy to get into computers! “You know Katrina has made a big impact in the US!” “Wow! Katrina! The Sheila ki jawani actress! Even I adore her!” “Blimey! I meant devastated Florida!”
the
hurricane
that
AI could make this blunder now but researchers firmly believe that sooner than later, cognitive intelligence could be automated and AI programs will start mimicking the human brain almost as well.. The comfort is “almost” and not exactly!
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Volume 30, Nos. 9-10 – December 2016 – January 2017
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Volume 30, Nos. 9-10 – December 2016 – January 2017
MCCI BULLETIN
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The Ministry of Power has recommended that renewable energy be given a zero-rate tax status under the Goods and Services Tax, predicting several adverse effects to the economy if there was any increase in power tariffs due to the new tax regime. “Any further tariff increase due to GST may have a multiplier effect on economic development (such) as: (i) difficulty in passing through the impact to agriculture and domestic consumers, (ii) adverse impact on industrial production and GDP, (iii) adverse impact on Make in India, and (iv) adverse impact on export competitiveness of Indian products and services,” according to a presentation made by it to the GST Council during the ninth meeting of the GST Council on January 16. The Ministry also asked for the inclusion of all hydro projects as renewable energy projects. Currently, only small hydro projects of a capacity of up to 25 MW are deemed renewable energy projects.
Industry seeks foreign partners for trade pact Proposed accord to ease travel across borders for work
India’s top industry bodies are attempting to build a coalition with counterparts in other nations with similar interests to give a fillip to the country’s proposal for a Trade Facilitation in Services (TFS) Agreement at the World Trade Organisation (WTO)level. The proposed TFS pact, among other things, aims to make it easier for professionals and skilled workers to move across borders for short-term work, as well as ensure portability of their social security contributions. According to a ‘communication’ from India to the WTO in November 2016, “while services occupy a significant and growing share of domestic and international transactions, trade flows in services still remain subject to numerous border and behind-theborder barriers as well as procedural bottlenecks. “These impediments particularly limit the benefits of trade in services for small and medium enterprises as well as small exporters worldwide.” Eliminating bottlenecks India said the TFS Agreement will address the key issues pertinent to facilitating services trade, such as transparency, streamlining procedures, and eliminating bottlenecks. “In brief, the TFS Agreement is aimed at ensuring that the market access arising out of existing as well as future liberalisation commitments is effective and meaningful,” it added. While India’s industry bodies have begun attempts to form a global coalition on services, the Centre is also in talks with other countries on coalition building.
GST stalemate resolved, rollout deferred to July 1
90:10 formula agreed upon for dual control of assessees
The Goods and Services Tax (GST) Council arrived at a consensus on contentious issues such as
administrative control over tax payers in the new indirect tax regime on Monday, thus paving the way for GST to be introduced this year, although three months after the Centre’s original rollout deadline of April 1, 2017. “The issue of cross empowerment and dual control was taken up and we discussed the issue for the entire day,” Union Finance Minister Arun Jaitley told a press conference following the conclusion of the Council’s ninth meeting. “And we have been able to arrive at a decision on this issue. The entire taxation base will be shared between the assessment machinery of the Centre and the States,” he said. Another area of contention between the Centre and the States was the issue of who would get to collect tax on the economic activities taking place in Indian territorial waters. This issue has also been smoothened out, Mr. Jaitley said.
Demonetisation has hit India’s growth: IMF
Fund sees growth slowing to 6.6% this year from 7.6% The NDA government’s demonetisation move could dampen India’s growth by one percentage point in the current fiscal year and 0.4 percentage point the next year, compared with its earlier projections, the International Monetary Fund (IMF) said. The IMF now expects India to record a growth of 6.6% for the current year, and 7.2% next year. Earlier, the IMF had projected 7.6% growth for this year and the next. According to the IMF, the revised estimate for India’s growth in 2016-17 is 6.6% as against 7.6% in 2015-16. In earlier estimates, IMF had expected India to sustain its 2015-16 growth rate in 2016-17 too. For next year, the IMF has projected a growth rate of 7.2% as against its previous forecast of 7.6%. In 2018-19, the Indian economy should be growing at 7.7%, as estimated earlier.
Retail inflation likely to soften to 4.5% in 2017
The Consumer Price Index (CPI) is likely to soften to 4.5% in 2017 from 4.9% in 2016, rating agency ICRA said in a report. Key factors that will dominate retail inflation in 2017 include monsoon dynamics, the impact of the Goods and Services Tax (GST) on prices, commodity price movements, and the rupee – U.S. dollar exchange rate, said Moody’s Investors Service and its Indian affiliate, ICRA.