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Former Indian Cricket Captain Ajay Jadeja speaking at the award ceremony of Infopark Cricket Tournament 2015 organised by Calpine Group, held at Athulya Auditorium. Cricketer S Sreesanth, Film Director Ranjith Sankar and Infopark CEO Hrishikesh Nair are also seen
Events
Prof K VThomas, MP launching the logo of NIB AWARDS 2016 jointly organized by Ernakulam Press Club & Public Relations Council of India (PRCI) Kerala Chapter. U.S.Kutty (Chairman, PRCI Kerala Chapter), K Ravikumar(President, Ernakulam Press Club), T Vinaykumar (Secretary, PRCI Kerala Chapter) & P K Natesh (Treasurer, PRCI Kerala Chapter) are also seen.
Federal Bank donates an ambulance to StThomas Hospital, Chethipuzha, Changanassery in the presence of George Jacob (AGM, Federal Bank), Reggie V John (AGM & Regional Head, Federal Bank), M J Aprem, (General Manager, St.Thomas Hospital) and Joy P I (Chief Manager & Branch Head, Federal Bank, Br. Changanassery).
Deependra Singh who has taken over as Chairman and Managing Director of Indian Rare Earths Ltd (IREL), a Mumbai based Central Public Sector Undertaking under the aegis of Department of Atomic Energy, Government of India.
3 From the Editor
Can RERA bring cheers to home buyers?
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alpractices in the real estate sector have been quite common. A lot of buyers have been cheated by unscrupulous elements and fly-by-night developers in the industry. It, along with other economic and market driven sentiments, dampened the spirit of the genuine homebuyers. The developers those who have reputation in the industry for timely delivery and fulfilling the promises are also in trouble. The good news is that all these nightmares could be passĂŠ with the Cabinet approving the long- awaited Real Estate Bill, 2015 which gives powers to the respective state governments and Union Territories for setting up of the Real Estate Regulatory Authority (RERA) will soon become an Act. The onus will then be on the states to implement it, which if done effectively, could be a game change and bring transparency in the sector.
Editor & Publisher
Varghese Paul Kozhikode Vineeth Mukundan 8714986177 Chennai Augustine Joseph Ph: 09381000534 Bangalore Gireesh Gopal +91 7204560000 Adithya +91 9538060591 54, 2nd Main, Vyalikaval Bangalore - 560003 Manager-Marketing Sajan K 09895344485 Keethara Publications Pvt Ltd 38/125 1st Floor, Narakathara Road, Kochi-682 035, Kerala, India. www.passlinebusinessmagazine.com E-mail : passline.com@gmail.com
The Cabinet approved nearly 20 amendments to the Bill. The most important and foremost among them is the introduction of a provision to deposit 70% of the buyers’ money received by the developers in the escrow account and the builders will be punished with stringent measures in case of violations. Three years rigorous imprisonment for all contraventions and even in cases where the developer does not abide by the decision of the appellate tribunal. It also creates a much needed consumer right protection umbrella for buyers. But the industry appeals to the government that there should be norms of accountability for all stake holders including government authorities and local urban bodies. Developers are worried that they will be penalized for delays in project completion, even if it is due to delayed government approvals which is common everywhere in India. The apprehensions of the industry are quite realistic since the Act is biased in favor of the buyers. The prices of raw materials and cost of labour are increasing day by day. There is no mention in the Act about how the promoter will cushion the unexpected price hike of the material once he comes into an agreement with the buyer. There are number of cases that the buyer is not genuine and not paying the installments in time and unnecessarily dragging it to the litigations. In states like Kerala the land price, document charges and procuring sanction for a project are the major cost components for a building. The builder, himself, has to find fund for these things before he announces the project which naturally has a cost. The builder will pass the entire cost to his buyer and the prices of the property will shoot up enormously. Every purchaser of a moderate apartment or a villa is planning it with shoestring budget. In that case , it is doubtful whether the sector will have the demand which players in the sector are expecting after the enforcement of the Act.
Varghese Paul
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W
e all live in an ocean of taxes, direct and indirect. Of these, inKC Joseph Varghese direct taxes are somewhat clandestine as it affect the population across the board and the consumer is not very much aware of its impact as they are embedded in the price of goods and services. The Union Government imposes Excise Duty, Service Tax , Customs duty , Central Sales Tax, Securities Transaction Tax etc while the state government levy VAT, State Excise, Land Tax, Building Tax(One time), Octroi, Entry Tax, Purchase Tax, Agricultural Income Tax, Electricity duty, Vehicle Tax and the like. Local bodies such as Corporations, Municipalities and Panchayaths also levy a host of other taxes such as building tax, entertainment tax and profession tax. If we look at these taxes as a whole, it could be realized that nothing has been left out of taxation except the air we breathe! Air could also be taxed if a mechanism is invented to measure the intake! In any case, we have to live with the taxes and it is for the gov-
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ernments to consider ways and means of reducing the pinch of taxation especially on the common man. It is to be remembered that though there is no equity in taxation laws, these should be made as fair as possible and it is in this backdrop that the proposed Goods and Service Tax (GST) should be analysed. “Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and service at a national level. GST is a tax on goods and services with value addition at each stage having comprehensive and continuous chain of set-of benefits from the producer’s/ service provider’s point up to the retailer’s level where only the final consumer should bear the tax.” Need for GST Integration of various taxes into a GST system would make it possible to give full credit for input taxes collected. GST, being a destination-based consumption tax based on VAT principle, would also greatly help in removing economic distortions and will help in development of a common national market. Justification of GST D e -
spite the success of VAT, there are still certain shortcomings in the structure of VAT, both at the Centre and at the State level. A. At the Central Level i. At present Excise Duty paid on the raw material consumed is being allowed as input credit only. For other taxes and duties paid for post-manufacturing expenses, there is no mechanism for input credit under the Central Excise Duty Act. ii. Credit for service tax paid is being allowed to manufacturer/ service provider to a limited extent. In order to give the credit of service tax paid in respect of services consumed, it is necessary that there should be a comprehensive system under which both the goods and services are covered. iii. At present, the service tax is levied on restricted items only. Many services could not be taxed. B. At the State Level i. A major defect under the State VAT is that the State is charging VAT on the excise duty paid to the Central Government, which goes against the principle of not levying tax on taxes. ii. In the present
State level VAT scheme, Cenvat allowed on the goods remains included in the value of goods to be taxed which is a cascading effect on account of Cenvat element. iii. Many of the States are still continuing with various types of indirect taxes, such as luxury tax, entertainment tax, etc. iv. As tax is being levied on inter-state transfer of goods, there is no provision for taking input credit on CST leading to additional burden on the dealers. Model of GST The dual GST model proposed by the Empowered Committee and accepted by the Centre will have dual system for imposing the tax. GST shall have two components i.e. (i) Central GST (ii) State GST Central Excise duty, additional excise duty, services tax and additional duty of customs (equivalent to excise), state VAT entertainment tax, taxes on lotteries, betting and gambling and entry tax (not levied by local bodies)would be subsumed within GST GST - Salient Features
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It would be applicable to all transactions of goods and service without any border restrictions. The entire country will come under the proposed GST It is to be paid to the accounts of the Centre and the States separately. The rules for taking and utilization of credit for the Central GST and the State GST would be aligned. Cross utilization of ITC between the Central GST and the State GST would not be allowed except in the case of inter-State supply of goods. The Centre and the States would have concurrent jurisdiction for the entire value chain and for all taxpayers on the basis of thresholds for goods and services prescribed for the States and the Centre. The taxpayer would need to submit common format for periodical returns, to both the Central and to the concerned State GST authorities. Each taxpayer would be allotted a PAN-linked Taxpayer Identification Number with a total of 13 to15 digits. Chargeability of
Tax under GST It will be a replacement of Central Excise Duty and other taxes. There will be two parallel Statutes – one at the Centre and other under the respective State GST Act – governing the tax liability of the same transaction. All the items of goods and services are proposed to be covered and exemptions will be granted to few selected items subject to concurrence by the states. After introduction of GST, all the traders will be paying both the types of taxes i.e. CGST and SGST. Taxable Event Following questions arises: (Answers in brackets) At what point of time, the tax will be levied? (At destination) Will TE covers both i.e. supply of goods and rendering of services? (yes) What will be the nature of TE? (It involves all transactions in goods and service) Will it not involve new language and terminology? (No, except in certain case) Taxable Person The term
will cover all types of person carrying on business activities, i.e. manufacturer, job-worker, trader, importer, exporter, all types of service providers, etc. If a company is having four branches in four different states, all the four branches will be considered as Taxable person under each jurisdiction of State governments. All the dealers/ business entities will have to pay both the types of taxes on all the transactions. A dealer must get registered under CGST as it will make him entitled to claim Input Tax Credit of CGST thereby attracting buyers under Branch to Branch Transactions. Importers have to register under both CGST and SGST as well. Subsuming of Existing Taxes The sub-sumation should result in free flow of tax credit in intra and inter-State levels so that unrelated taxes, levies and fees are not be subsumed under GST. The following table shows which all taxes may be eliminated on introduction of GST Sl No. Subsumed under CGST Subsumed under SGST 1 Central Excise Duty VAT / Sales tax 2
Additional Excise Duties Entertainment tax (unless it is levied by the local bodies). 3 Excise Duty-Medicinal and Toiletries Preparation Act Luxury tax 4 Service Tax Taxes on lottery, betting and gambling. 5 Additional CVD State Cesses and Surcharges (supply of goods and services) 6 Special Additional Duty of Customs - 4% (SAD Entry tax not in lieu of Octroi 7 Surcharges 8 Cesses Taxes that may or may not be subsumed There are few other indirect taxes that may or may not be subsumed under the GST regime as there is no consensus among States and Centre & States – Purchase tax Stamp Duty Vehicle Tax Electricity Duty Other Entry taxes and Octroi Rate of Tax There with be a two-rate structure –a lower rate for necessary items and items of basic importance and a standard rate for goods in general. There will also be a special rate for precious metals and a list of exempted items. For CGST relating to goods, the States considered that the Government of India might also have a two-rate
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6 structure, with conformity in the levels of rate with the SGST. For taxation of services, there may be a single rate for both CGST and SGST. It will be total of the rate as applicable under CGST & SGST. It is understood that the Government is considering pegging the revenue neutral rate of GST at a rate between 18% to 22%. This represents the aggregate of CGST and SGST payable on the transaction. However, it may be noted that at this stage, the Government is yet to indicate whether the revenue neutral rate of tax on goods and services would be the same. What will be out of GST? Levies on petroleum products Levies on alcoholic products Taxes on lottery and betting Basic customs duty and safeguard duties on import of goods into India Entry taxes levied by municipalities or panchayats Entertainment and Luxury taxes Electricity duties/ taxes Stamp duties on immovable properties Taxes on vehicles GST on Export & Import GST on export would be zero rated Both CGST and SGST will be levied on import of goods and services into the country. The incidence of tax will follow the destination principle and the tax revenue in case of SGST will accrue to the State where the imported goods and services are consumed. Full and complete setoff will be available on the GST paid on import on goods and services. Inter-State Transactions of Goods & Services The existing CST will be discontinued. Instead, a new tax known as IGST (Integrated Goods and Service Tax will come into place. It will empower the Central Government to levy and collect the tax on the inter-state transfer of the goods and services. The scope of IGST Model PASSLINE
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is that Centre would levy IGST which would be CGST plus SGST on all inter-State transactions of taxable goods and services with appropriate provision for consignment or stock transfer of goods and services. The inter-State seller will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The Importing dealer will claim credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. The relevant information will also be submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respective governments to transfer the funds. The Present Scenario At present, a manufacturer outside Kerala selling the products to Kerala invoices as follows: 1.) Manufacturer outside state Rs Price 1000 Add: Excise duty (Average) @ 10% 100 TOTAL 1100 Add : CST 2% 22 TOTAL 1122
2. The buyer within the state reselling Rs Cost as in 1 above 1122 Add: Expenses 200 Add: Profit 200 1522 Add Vat @ 5% 76 Cost to consumer 1598 After implementation of GST 1.) Manufacturer outside state Price 1000 Excise Duty CST TOTAL 1000 IGST@ 10% 100 TOTAL 1100 The buyer within the state reselling. Sale Price 1400 CGST @ 5% 70 SGST @ 5% 70 TOTAL 1540 In this case goods are moving from outside the state to Kerala. Since it is an interstate sale, IGST will be levied. The collection goes to the Central Government. Later, the goods are resold within the state. Therefore, CGST and SGST will be levied. Against CGST and SGST, 50% of IGST, that is, Rs.50 each are taken as credit. But we can see that IGST never went to the state government. But still the credit is claimed against SGST (Rs.50). This amounts to a loss to the state
GST Panel Head Arvind Subramanian
In much cases the central government will get extra revenue on introduction of GST across the board without granting similar exemptions. government. Therefore, Rs.50 will be transferred by the Central Government to the state government. In the final analysis the central government loses Rs 52/- (Rs 122-70) and the state government loses Rs 6 (76-70). The total benefit to consumer is Rs 58/- if the trader passes on the input tax credit to the consumer. However it is to be seen whether the trading community will pass on the benefit. The losses to the government as stated above is expected to be compensated by increased volumes of sales and better compliance by the traders. It is also worthwhile to note that in many cases such as small scale industries having turnover below the prescribed limit presently do not have Central Excise Duty liability. In much cases the central government will get extra revenue on introduction of GST across the board without granting similar exemptions. Once GST is introduced the government will have to gear up tax collection mechanism in such a manner that credits for inputs are granted correctly and efficiently, failing which the entire tax structure will face chaos CONCLUSION The above workings are based on certain assumptions which may or may not be realistic if the rate structure is increased by the government. (The writer is a Chartered Accountant and can be contacted at kcjosephvarghese@gmail.com)
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GST: economic reform sabotaged by party politics
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game-changing economic reform happens very rarely. The Vijayakumar liberalization initiative which started with the Manmohan Singh’s epoch making budget of 1991 was a game changing reform. After the initial dose of liberalization and privatization and the integration of the Indian economy with the global economy, the pace of reforms slowed down even though there were occasional spurts of reforms like Chidambaram’s dream budget of 1996. After a long gap, GST was proposed as a reform which can unleash substantial benefits and there is a near consensus that it will be a game-changing reform. But unfortunately, Indian politics has thrown a spanner into the works of this major economic reform. GST can make the indirect tax system very efficient and will benefit all stake holders including manufacturers, sellers, the ultimate consumers and the tax collecting governments. More than 140 countries have so far implemented GST. In India GST was proposed in the 2006-07 budget. But it has been delayed due to lack of consensus among political parties. On May 6th the GST bill was passed in the Lok Sabha. It is yet to be passed in the Rajya Sabha. What is GST? GST is a comprehensive tax on goods and services. GST is a value added tax where tax is imposed only on the value added at each stage in the supply chain. It
is levied at all points in the supply chain. Credit is paid for acquiring inputs used in making the supply. In India GST is defined as ‘tax on supply of goods or services other than alcohol for human consumption.’ In simple language, GST is a single tax on all goods and services in the entire economy. Presently the Indian indirect tax structure is very complex. There are large number of taxes on goods imposed by the Centre and the States. There are central taxes like Central excise duty including additional excise duties,
amount of tax will be Rs 30,000. At the next stage when the same good is sold at Rs 2.5 lakh, then the tax would be Rs 37,500. But in GST since there is a set off of Rs 30,000 available, the actual tax at that stage will be only Rs 7,500. This tax credit removes the anomaly of ‘tax on tax’ and thus avoids the cascading effect of multiple taxation.
In keeping with the federal spirit of the Indian constitution, GST will be levied by the Centre (CGST) and the States (SGST). Inter-state supplies will attract
state and Central governments. The panel provided a range for the GST rate for various products and services: from 12 percent to 40 percent (the higher rate being applicable for select products such as luxury cars, tobacco products, carbonated drinks etc.) The panel kept the standard GST rate at 17-18 percent at which most products would likely be taxed. The panel also suggested to the government to scrap the proposal to levy a 1 percent inter-state tax on transfer of goods. The CEAled panel did not favor specifying GST rate in the Constitutional Amendment Bill. Exemptions
additional customs duty, Central sales tax, Central surcharges and cesses. There are State taxes like VAT/Sales tax, purchase tax, luxury tax, taxes on lottery, betting and gambling, State cesses, surcharges and entertainment tax. Apart from these taxes on goods, there is the Central tax on services. When GST is implemented, all these taxes will subsume in GST. The significant feature of the GST is that there is a tax credit available at each stage of the value chain. There is a value added stage right from manufacture to each additional stage of sale. Tax needed to be paid only on the value added; instead of the whole amount. For example, if there is a tax paid on Rs 2 lakh at 15 per cent at the first stage, then the
an integrated GST (IGST) which will be levied and collected by the Centre. In addition to IGST an additional levy of 1 percent has been proposed (temporary) to compensate for manufacturing states. The period of this levy will be for a short period, to be decided by the GST Council. Levy of the tax will be based on the destination principle: exports will be zero-rated and imports will be levied the same tax rate imposed on the domestic goods and services. The tax rate The GST panel headed by the Chief Economic Advisor Arvind Subramanian suggested a RNR (Revenue Neutral Rate)of 15 to 15.5 %. RNR is the rate at which there will be no revenue loss to
Since petroleum products and alcohol are major sources of revenue to the States, they objected to the inclusion of these items in the GST. Consequently alcohol has been exempted and petroleum products have been exempted for a short period. Petroleum products will be subject to GST from a future date to be decided by the GST Council. Similarly, entertainment tax imposed by local bodies like panchayats and municipalities will be exempted from the GST. That means these taxes will continue. But entertainment tax imposed by States on movies, theatre etc will be subsumed in GST. Stamp duties imposed by the states on legal agreements will continue to be imposed by the States. GST Council The apex policy making body for the GST will be the GST Council. The GST Council will consist of the finance ministers at the Centre and the States. The administration of the GST will be done by the GST Council.
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Jasmine revolution around the corner of industrial sector Passline News Services
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early half a decade ago it was an employmentseeking generation that we had witnessed. Obviously, the government at that time had also an employment-oriented education policy and employment rules. Entrepreneurship was keeping at bay. Still, there existed sporadic self-employed enterprises running on one’s whims and fancies. At present, there took place a drastic change in the industrial scenario of Kerala. Entrepreneurships and innovations always get a shot in the arm. Startups and incubation centres are the brain child fondled by the government by means of industrial summits, executive meets, commercial conclaves and business conferences. Startup village, tech parks, industrial estates jostle for space for accommodation. Men and women get equal opportunities to prove their mettle. In the race, women run neck to neck with men. Apparently, fair sex are given more chances and support by the powers that be. ‘Women Entrepreneurs’ Summit
Mission programme to empower woman entrepreneurs in the State.
2015’ is such an initiative by the government organised by Kerala State Industrial Development Corporation(KSIDC) under the Women Entrepreneurship (WE)
existing woman entrepreneurs in the State. “Kerala has always been in the forefront of educating women and initiatives like this would help bridge the gap
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The Kerala Government has announced Infrastructure Support Facility (a Standard Design Facility) for woman entrepreneurs at the Garment Manufacturing and Export Zone at Angamaly. Chief Minister Oommen Chandy has said the Women Entrepreneurs Collaborating and Networking (WECAN) initiative of KSIDC would give a new impetus to the
and bring in a positive trend”, the CM said. “The State Government
would support to protect the local industry by building the necessary basic infrastructure,” he added. Industry Minister P K Kunhalikutty said MSMEs in Kerala are growing well and it’s time for woman entrepreneurs to move up to the next level through this mission mode activity. He also added that Kerala will soon lead the country in per capita income. IT & Industries Principal Secretary P H Kurian IAS said WECAN aims to identify and help support 1,000 woman entrepreneurs across the State to scale up existing enterprises. The support would be in the form of infrastructure, mentoring, networking and facilitating financial options. Former Governor & Union Minister Margaret Alva, in her special address, appreciated the WECAN initiative saying that Kerala has a tradition of empowering women and this initiative would help woman entrepreneurs with a lot of challenges which they are facing today. KSIDC Managing Director M Beena IAS said the WE Mission aims to empower women and bring several welfare and social
schemes for women under one umbrella. “KSIDC has tied up with eight partner institutions to support this initiative”, she added. KSIDC will start an online database of woman entrepreneurs. To start with, the online database will have details of about 1,000 woman entrepreneurs who attended the WECAN initiative of KSIDC. The website would also help woman entrepreneurs to exchange ideas and post requirements that are mutually beneficial. KSIDC would also conduct Management Development Programmes for woman entrepreneurs in the next one year. The programme would have modules on Accounting, Marketing, Human Resource management and Skill Development. KSIDC would also organise sector specific entrepreneurial programmes to explore opportunities that can be beneficial for woman entrepreneurs. Based on the feedback from the participants of the summit, KSIDC would also make available finance to scale up existing units at a lesser rate for a definite period. The Government would utilise financial institutions like Kerala Finance Corporation (KFC) to roll out this initiative. KSIDC would soon tie up with partner institutions in the remaining districts to support the WECAN initiative. KSIDC has already tied up with eight partner institutions for eight districts. It will also take the initiative to address and sort out the issues with lead bankers, as required by many woman entrepreneurs. KSIDC and Nodal Officers of District Industries Centres (DIC) would extend all possible support to woman entrepreneurs.
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The word ‘ Woman Entrepreneur ‘ is quite ubiquitous these days in our State. A lot of enthusiastic , ambitious , determined young lady entrepreneurs with high academic back ground are opting for self- employment. Thanks to the recently popped startup revolution and dearth of plum job opportunities to value their education due to the economic slowdown. Better late than never, the government is also exhibiting some interest to sow the seeds of entrepreneurship by certain initiatives like WECAN. But the so- called successful woman entrepreneurs who have good track record and legacy can be considered as role models for the up-coming ones who have different notes to sing. The skeptical lot doubt the sincerity of the government towards the cause. We cannot blame them because our State and society have a bias towards entrepreneurs and entrepreneurship irrespective of gender. The recent comments made by certain social and political leaders about women in general and the bureaucratic harassment they have experienced so far to bring their respective industries in current form compelled them to think cynical which is not a mistake. Passline tried to garner the opinion of certain woman entrepreneurs of the State who have proved their mettle in the entrepreneurship and it goes like this…
Liza Mayan, Classic Sports Goods Pvt. Ltd.
T
he seminars, speeches and extravaganzas like WECAN, do not fetch any positive impact on entrepreneurships and enterprises. It does not mean that it will help our male counterparts. My comment is about the industrial community as such. Frankly speaking, I do not attend these types of events even though I get invitation for it. Because there is no ` take away’ by attending most of these programmes. Same participants and routine agenda bring out no good result. People like me are coming from traditional business family and we have experienced people to assist us. There are innumerable woman entrepreneurs with
new products and new ideas in the bandwagon . The Government should focus them and must extend maximum possible help. It is painful to hear unwanted remarks from certain responsible persons blemishing women to discourage and demoralize them. I do not think that there is gender disparity prevailing in this area. We must have a level playing ground for both the genders. We are not seeking special privileges for woman entrepreneurs but there should not be separate laws for men and women. No doubt that starting an industry and running it commendably is a Herculean task. It is a solace to know that despite all these hardships and neglect there are numerous young educated, talented girls dare to take up entrepreneurship as their profession; and I am sure that the government and the individuals who have cynic eye towards women will not have an option in future other than focusing on the causes of growing woman entrepreneur community”.
Sheela Kochouseph., V-Star Creations “ Whichever area we check; we find all are male-dominated ones . There is no difference in entrepreneurs or the entrepreneurship. There is a notion prevailing in society that women who are running business or industries are victims of discrimination. Eventually, what happened? Forget about entrepreneurship; women coming forward for employment are also comparatively less. The summits like WECAN are not the solution for the betterment of woman entrepreneurship in the State. These sort of programmes are nothing but an eyewash by the politicians and officials. The ministers and leaders need a podium to bluff, for which they utiDec 15 - Jan 15, 2016
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10 lize these events. I am an invitee for most of these programmes. It is not meticulously managed ones and the entrepreneurs will not get time to share their grievances or experiences with fellow entrepreneurs or before the authorities. If the government and industries are sincere about woman entrepreneurs the way is not the summits or seminars. Marketing is the hardest process for a new entrepreneur. Making demand for a new product in the market is very difficult. If the government provides a platform for the new entrepreneurs to showcase and market their products at a reasonable rent it will be appreciated. A particular area should be demarcated in all the district head quarters for the products from the lady entrepreneurs . If we can provide a space at least for one year for a particular brand, it is better. By that time it will become popular and the entrepreneur can stand on her own feet. Certain states in India are following this method and it is a huge success for them.”
tages. Our problems and issues are totally different with what the organizers of these events addressing. Media give undue importance for these types of events which is a waste of time, I think. I commenced my industry way back in 1989 and I am the only woman entrepreneur manufacturing transformers. Still,l for the last two or three years, no media approached me or published an article about my venture. I strongly believe that there is creamy layer among the industrialists also and the media is biased towards them always. There are some silver lines in the total industrial horizon of Kerala. There is literally no labour issues and the government offices are also introducing drastic changes favouring industries and industrialists. But the movement of files from one department to another is still at a snail’s pace. We do not seek any particular benefits or advantages for woman entrepreneurs. There are a lot of good officials in industrial departments
“ We need all sorts of support from the government and the industry department. It doesn’t mean that organizing an event and inviting speakers to deliver speeches is the solution for us. It may be beneficial for the clusters like Kudumbasree. Because they will get a platform and it will give a boost for their confidence. But the people like us who have been indulging in entrepreneurship for decades, do not get any advanPASSLINE
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Siljy Poulose, American Electrolysis “ I am not into hardcore industries. Ours is a service- oriented entrepreneurship. It needs a lot of coordination and hardships. We import the electrolysis ma-
chines for our franchises and supply it . Like other industries we do not have acres of land or machinery for giving the collateral for our business to get the finances. When we approach a bank or financing firm they are not at all ready to entertain but demoralize us , which is painful. In my case I have some properties and managed to get sufficient fund for my business. But youngsters those who do not have the collateral but only the desire and passion with them can’t fulfill their dream. In this situation without addressing the entrepreneurs’ real causes, if government is indulging in lip services only by organizing seminars and symposiums will not bring any advantage for the business community. Government should apprise the upcoming entrepreneurs by fixing some parameters and must extend all possible help including the initial capital with minimum interest and sufficient subsidies.”
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Advantages of GST • GST simplifies the indirect tax structure by subsuming a plethora of taxes levied by the Centre and the States. Since GST is a value added tax, it removes the cascading effects of double taxation.
Lekha Balachandran, Resitech Electricals
those who are ready to render any help to the entrepreneurs . We can approach them without prejudice. But the approach from certain quarters are intolerable. They must take into account that by running an industry, it means that we are giving hundreds of job opportunities directly and indirectly for which the authorities concerned should be considerate towards entrepreneurs”.
• Through the uniform GST for the entire country, a common market is created for the entire economy. All State economies with differing tax rates will be merged together into a common market. • Since GST avoids the cascading effects of double taxation, the ultimate consumer gets the benefit of lower prices through lower tax burden. • GST can contribute to making Indian products competi-
tive in the international markets. • GST is a business-friendly tax since it simplifies procedures. Economists believe that the GST alone can increase GDP growth by close to 1 percent. Global experience supports this argument. On the flip side, small traders fear that GST would be an expensive proposition for them since it will entail compulsory registration, expenditure on automation etc. It is also feared that immediately after the introduction of GST there might be an uptick in inflation. But in the medium to long run inflation will come down. Since the GST Bill (122 Constitutional Amendment Bill 2014) is a constitutional amendment bill, it has to be passed in both hous-
es of parliament. The bill was passed by the Lok Sabha on May 6th 2015. But it has hit a road block in the Rajya Sabha since the ruling NDA doesn’t have majority there. The GST has become a pawn in the political game. As I write this, the possibility of the GST getting passed does not appear bright. The principal opposition, the Congress party, is now behaving as irresponsibly as the BJP behaved while it was in the opposition. It is a pity that even 68 years after independence; our political system doesn’t have the maturity to sacrifice political interests for national interest. Dr V K Vijayakumar, Investment Strategist, Geojit BNP Paribas
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he Kerala tourism has witnessed a meek season in the arrivals of tourists in the State this year. Tourism department has targeted a 15% hike this year. The department’s claim is that all the states in India including the states which have been positioned ahead of Kerala in tourism map, have the same fate. The department has attributed this phenomenon to global economic turmoil, diminishing crude oil prices, the menace of IS etc. Passline has interacted with P I Sheikh Pareeth IAS , the Director of Kerala Tourism, recently. He is optimistic about the affairs of tourism in the State and has elaborated the department’s plans and ideas to take up Kerala tourism to a new height . Excerpts… We are almost at the fag end of the year , how does tourism fare this year ? Growth wise, like last year we could achieve a minimum growth of 7 to 8% though we estimated a 15% in the beginning of the year. We are on the half mark of our target. It is not because of any particular reasons construed on Kerala tourism only. It is because of various global reasons. It is global phenomena but Asian countries seem to be more peaceful and economically fast growing compared with our western peers . This year, most of our foreign tourists were from Asian countries. As far as we are concerned our main issue tormenting the sector is indiscriminate rise in air fares. Most of the airlines, in-
cluding Air those who India, have prefer mounraised the taineering and fares durtrekking will ing the vabe interested cations and with these it was the products and time we we are workunveiled ing on it for our `Visit attractive Kerala’ inpackages. novative The cinema products tourism is with atmost suitable tractive product for packages. us. We have We could lush greenery, Sheikh Pareeth not reap waterfalls, the results of `Visit Kerala’ as we lakes and water bodies and our anticipated, due to the ruthless climate in the State is most prerating of the airlines. Even then, ferred for cinema shooting. Numwe had 1.2 million domestic and ber of globally renowned movies 9 lakh foreign tourists in the State have already been made in our this year. State. But we were not aware the How do you foresee the coming possibilities of this area and the year and what are the strate- department is formulating the plans to sell the destination for gies to improve the numbers? We are opening new vistas to cinema tourism by making a road improve our performance in the map. We have already identified next fiscal like wedding tourism, nearly 20 places ideal for film adventure tourism and cinema shooting. The cinema tourism tourism. For wedding tourism will bring fortunes not only for we have zeroed in on a few places hotels and resorts. It will have like Wayanad, Kochi and Kova- comprehensive impact on state lam. Wedding tourism will be a economy as a whole. The departwind fall for our hotels, resorts ment has also scheduled dates and home stays. For high end for the events like KTM and marriages, invitees from different Kerala Medical Mart. We expect places will come and their stay, that these events will lure numertravel and food will definitely re- ous guests to the destination. juvenate our tourism sector. Oth- Do you think that liquor proer areas are adventure and for- hibition has doomed the tourest tourism. We have number of ism prospects in the State? By mountains and reasonably good 2020 what will be the Kerala’s forest environment . The guests position in the global tourism map?
To some extent it is true. Our tough competitor, Sri Lanka, has dancing floors, bars and casinos which are the part and parcel of tourism. It may affect our wedding tourism and MICE tourism partially. But one thing is sure that we are in to niche tourism and we are selling what we have inherited . We do not have anything artificial to sell and Kerala is eyeing sustainable tourism suitable for our villages . Kerala is a land of rich tradition and legacy and also we have a strong cultural bondage. We cannot tamper it. And more over, Kerala is the place for high end tourism and for it, lack of bars and casinos would not be a big minus point for the State. By 2020 our State will be a destination for wellness tourism both in Allopathy and Ayurveda. There are a lot of patients and tourists visiting our State even now as the part of medical tourism mostly from Asian countries, particularly West Asia. We are going to give thrust in this area and chalking out the plans meticulously to attract more patients and tourists to wellness tourism. Kerala is blessed with hospitals equipped with highly sophisticated instruments and machines. More and more hospitals with the state- of-the- art facilities are coming up and our advantage of cost leverage in the treatment with highly qualified and skilled physicians and doctors are our strength for the growth of this sector. I strongly assume that by 2020 Kerala will become the most sought- after spot for wellness tourism among other global destinations. Dec 15 - Jan 15, 2016
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PRODUCT OPPORTUNITIES
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hroughout the centuries, a plethora of cultural and social taboos have been asProf JOB K T sociated with menstruating girls and women, as well as menstrual health. In many parts of the world, women are still not allowed to leave the confines of their homes while menstruating. Deemed “impure” and “unclean,” they are not allowed to venture freely outside their homes. Thus, girls and women are deprived of opportunities in schools, workplaces and social settings. In addition, the lack of control over their lives puts women at loss when it comes to gaining information on cost-effective, affordable menstrual health products. Such women often resort
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to horrific means such as repeatedly using the same unsterilized cloth during menstruation and using gunny bags or even plastic, instead of sanitary napkins. Due to these unhygienic, preventative methods, women are prey to a host of illnesses and fatalities. Sanitary napkins are designed to absorb and retain menstrual fluid discharges. When used, they are applied inside an undergarment with a press-on adhesive fixing strip. Main functions/key elements of sanitary napkins are to absorb and retain menstrual fluid, isolate fluids from the body, no leakage, no un-aesthetic appearance, no odour, stay in place and comfortable to wear. Product shape can be either flat or curved with/without wings to secure the pad in place and add additional leak protection. It is available in various pattern designs with
perfume (deodorant) added to cover or absorb odour. Packaging is done either folded and single wrapped or packed flat and unwrapped. The sanitary napkin can be made either from cotton only or from a combination of absorbent paper, water proof paper, crushed pulp and non- woven cloth or rayon paper. Absorbent cotton is found to limit bodily movement considerably and it is not also very comfortable to use. Besides, it is expensive. Sanitary napkin which is made from absorbent paper, water proof paper, crushed pulp, etc. has largely replaced absorbent cotton for handling menstruation. Sanitary napkin is clean; it is easy to carry around; and it is thrown away once used. Sanitary Napkin comes under Nonwoven fabrics which as a whole come under technical tex-
tile. They are flat, porous sheets made directly from separate fibres or from molten plastic or plastic film. Feminine hygiene (lady napkins) is hygiene absorbent products engineered to absorb and retain body fluid without causing any leakage. The user should always feel dry and comfortable. It consists of an absorbent pad sandwiched between two sheets of nonwoven fabric. In developed countries, sanitary napkin is used more than 98% of the total requirement of women during their menstrual periods. Today, the global market for absorbent hygiene products is over US$ 50 billion. Feminine care was introduced over 100 years ago. Due to the large population in India and the great attention from Government, the market demand is growing very fast. There is
and Packaging materials. 5
Direct employment potential
50 persons
6
Power requirement
15013 KW
Netherlands etc. There a well-developed sanitary nap- Non-woven fabric has permeable be 58,500 million The turnkeyna, consultancy services can are be immade available from China, pieces/year. Netherlands etc. Ther kin industry in India, with major top layer of 12 to 18 GSM is nor- porters for the machinery in India Present consumption is 3000 milimporters for whom the machinery from whom unit can the unit in canIndia source. made of from players such as Carewell Hy- mally a spun bond fabric are lion the pieces, ie, source. 5% penetration giene Products Ltd; Godrej Con- polypropylene while the imper- The approximate investment re- while in Europe and USA it is sumer Products Ltd; Gufic Bio- meable polyethylene/non-woven quirement for setting up a 2,200 well above 73 to 92%. Hence, a approximate investment requirement for setting up a 2,200 lakh sanitary napkins pe for presciences Ltd; Hindustan Unilever film is the bottom layer The lakh sanitary napkins per annum growth rate well above 18 to 20% Ltd; Johnson & Johnson Ltd; venting the fluid to pass through. is expected in India. The Indian annum will will cost cost Rs. 3,200.00 lakh lakh as indicated Rs. 3,200.00 as in- below: Kimberly Clark Lever Pvt Ltd; Sometimes a non-woven fabric dicated below: market is quite huge and as per gluedattention to poly from film Government, to give feel. the market Procter & Gamble e to theand large population in IndiaHygiene and the great Sl. No. Particulars Cost & Health Care Ltd. Currently the Some of the source of non-woven mand is growing very fast. There is a well-developed sanitary napkin industry in India, size of the Indian Sanitary Nap- fabrics in India is Ginni Fila(Rs in lakh) h majorkins players suchisasRsCarewell Hygiene Ltd; Godrej Consumer Products Ltd; ments, Fiber Web, Union Indusmarket 2,000 crore and Products 1 Land Own tries; PVD plastic etc. Ltd; Kimberly Clark it is growing at the rateUnilever of 16% Ltd; fic Biosciences Ltd; Hindustan Johnson & Johnson annually. Cellulose Pulp can be imported 2 Buildings 120.00 ver Pvt Ltd; and Procter & Gamble Hygiene & Health Care Ltd. Currently the size of the There are 3 major types of prod- from Wayerhaesder – Switzer3 Machinery & Equipment 1,800.00 ian Sanitary Napkins market is Rs nap2,000 crore and it is growing at the rate of 16% land, Rayonier-UK, Tembee Taructs, viz, (a) Thick sanitary 4 Miscellaneous fixed assets 300.00 ually. kins; (b) Ultra thin sanitary nap- tas – France and Stora Enso-Italy. kins and (c) Panty Liners being The super absorbent polymer 5 Preliminary and pre-operative expenses 260.00 used in the market. The size of suppliers are BASF-India and ere are 3each major products, (a) Thick sanitary napkins; (b) Ultraof thin sanitary 6 Contingency@ 10% 220.00 Degassa-Italy. The suppliers andtypes theirofcontent varyviz, from polyethylene sheet Ex-content vary to Liners market.being Theused charackins andmarket (c) Panty in the market. The sizeback of each andare their 7 Margin Money for Working Capital500.00 teristics of such products are re- ten-Switzerland, Plastik-Italy and m market to market. The characteristics of such products are referred below. (1st Year) Huhtamaki-Germany. ferred below. Total 3,200.00 Thick pads Panty Liners Ultra thin pads 4
Miscellaneous fixed assets
300.00
It is expected that financial inAbsorbent Daily use Wings 5 Preliminary and pre-operative expenses 260.00 reports Only 35% of amountin It is expected that financial institutions termavailable. loan for the fixed assets stitutions will provide termwill loanprovide Dry surface Tampon back-up Thin manufac6 Contingency@ 10%to India’s requirement is 220.00 for the fixed assets to Rs 2,000.00 lakh. The unitamounting can also avail financial assistance under Up tured Capitalin India, as of now. A Technology huge Self sit Odour control Comfort & Convenience Rs 2,000.00 lakh. unit for canWorking 7 MarginThe Money 500.00 market, greatBank potential and (IDBI) excel- to the tun gradation Fund for stTextilesassistance Industrial Development of India also Scheme avail financial (1 Year) lent profit margin is envisaged in under Technology Up-are gradation Inper India, the consumption per capita consumpof Rs 150.00 lakh. The promoters expected to bring in Rs 1,050.00 lakh as equity capital. ndia, the capita of sanitarySilicon napkins Paper during can 2005behasimported been 0.13 pads per Total 3,200.00 tion of sanitary napkins during from MCS-Switzerland, ICA- Fund Scheme for Textiles Indus- manufacturing of sanitary napThe financial viability of setting up 2,200 lakh sanitary napkins per annum is provided below um against USA, 24 per pads etc. This indicates the tremendous trial Development Bank of India kins in India. Italy, Rossella-Italy. 200535 haspads beenin0.13 pads an-in Germany (Professor T assets is a amounting re(IDBI)that to financial the tuneinstitutions of Rs 150.00 against 35 pads in USA, 24 The hot melt seal and positioners are It is expected will provide term loan JOB for theKfixed ential ofnum the industry in the country. tired Senior Faculty of Centre Thelakh. promoters expected pads in Germany etc. This indi- Savare, National Henket-Italy etc.to Sl. Rs lakh. 2,000.00 The unitare can also avail financial assistance under Amount Technology UpParticulars cates the tremendous potential of The application of accessories to bring in Rs 1,050.00 lakh as for Management Development, regards consumption of total hygiene, absorbent products in India, total unitsgradation consumed inScheme for Textiles Industrial Development Fund Bank of India( Rs (IDBI) to the tune No.equity in lakh) Thiruvananthapuram. Presently capital. the industry in the country. like tapes, sealing, etc. for comof Rs 150.001% lakh. The promoters are expected tohe bring Rs 1,050.00 lakhEnterprise as equity capital. is inthe Director, ia were As 3,000 millionconsumption pieces. Baby of diapers 5% whereas adult incontinence income 4000.00 financial viability of setting regards to- comprised fort of fit to the undergarments is 1The Sales Development Service, ThiruvaThe financial viability of setting up 2,200 lakh sanitary napkins per annum is provided below: up 2,200 lakh sanitary napkins tal care hygiene, products feminine share isabsorbent 94%. Thus, in India, the evolution is expected required in some cases. to go quicker. 2 Cost of raw materials, nanthapuram, salary, power,offering training, 3000.00 in India, total units consumed in Peixin, China, is one of the big- per annum is provided below: depreciation, sales commission, interest on term Indiainwere 3,000hygiene millionproducts piec- are Sl. Particulars Amount gest manufacturers terials used absorbent Nonwoven fabric, specializing Pulp, and Degassa-Italy. The suppliers of polyethylene back sheet are Exten-Switzerland, Plastik-Super absorbent, es. Baby diapers comprised 5% in Sanitary Napkin Machine and loan, administrative expenses etc. Italy and Huhtamaki-Germany. No. ( Rs in lakh) stic film,whereas Elastic materials, Fastening devices and Packaging materials. adult incontinence 1% Diaper Silicon Paper can be imported from MCS-Switzerland,Machine. ICA-Italy, Rossella-Italy. 3 1 Operating Profit 1000.00 Sales income 4000.00 and feminine care share is 94%. Savare, National Henket-Italy etc. The hot melt seal and positioners are A typical unit having a plant cainhas India, the evolution isof etc. 2 Breakeven Cost ofpoint raw materials, salary, power, 3000.00 35% n-wovenThus, fabric permeable toptapes, layer 12 for tocomfort 18 GSM isthenormally a spun bond 4 fabric The application of accessories like sealing, of fit to undergarments pacity to produce 2200 lakh piecexpected to go quicker. is required in somewhile cases. the impermeablees de of polypropylene polyethylene/non-woven is the of sanitary napkins per film annum 5 bottom Paydepreciation, Back Periodsales commission, interest on term 3 to 4 years Materials used in absorbent hy- is proposed in the product opporloan, administrative expenses etc. er for preventing the fluid tobiggest pass through. Sometimes a non-woven fabric glued Peixin, China, is one of are the manufacturers specializing in Sanitary Napkin Machine 6 to poly Internal Rate of Return 30% giene products Nonwoven tunity. The project particulars are 3 Operating Profit 1000.00 and Diaper Pulp, Machine. Super absorbent, m to givefabric, feel. Some of the source of non-woven fabrics in India is Ginni Filaments, Fiber given below: 4 Breakeven point 35% Plastic film, Elastic materials, A typical unit having a plant capacity to produce 2200 lakh pieces sanitary napkins per b, Union Industries; PVDofconsultancy plastic etc.age group of 15-54 years in India are about 300 million. Total menstrua The turnkey services The women in the Fastening devices and Packaging 5 Pay Back Period 3 to 4 years annum is proposed in the product opportunity. The project particulars areavailable given below: from Chican be lulose Pulp can be imported from Wayerhaesder –made Switzerland, Rayonier-UK, Tembee materials. periods/year is6 13 Internal that last 4-8 days and an average of 3 pieces/day is used. The Ratefor of Return 30% Sl. No. Description Requirement tas – France and Stora Enso-Italy. The super absorbent polymer suppliers are BASF-India consumption would be 58,500 million pieces/year. Present consumption is 3000 millio 1 Land 100 cents consultancy, asset valuation and The in the ageingroup ofin 15-54 years in India 300above million.73Total menstrual pieces, ie,women 5% while Europe USAareitabout is well to 92%. Hence, Thepenetration women the age group ofand 2 Buildings 6,000 sq.m Quality Management System seryears in are 4-8 about 300andinvices 3 Fully Automatic Sanitary Napkin plant Rs.1800.00 lakh periods/year 13 that last20% for days anIndia. average ofIndian 3 and pieces/day isisused. growth rate15-54 well is above 18India to is expected market quite huge an to The small medium en- Then million. Total menstrual periods/ terprises. He can be contacted 4 Raw materials such as Nonwoven fabric, Pulp, Super Rs 2500.00 lakh would be 58,500 million pieces/year. Present consumption is 3000 as perconsumption reports of India’s requirement is manufactured in million India, as o absorbent, Plastic film, Elastic materials, Fastening devices yearavailable. is 13 thatOnly last 35% for 4-8 days at Mob: 9847135571 or e-mail: pieces, ie, 5% penetration while in Europe and USA it is well above 73 to 92%. Hence, a and Packaging materials. and anmarket, averagegreat of 3 pieces/day now. A huge potential is and jobkt012@gmail.com) excellent profit margin is envisaged i growthused. rate well above 18 to 20% is expected 5 Direct employment potential 50 persons Then consumption would in India. The Indian market is quite huge and manufacturing of sanitary napkins in India. 6 Power requirement 150 KW as per reports available. Only 35% of India’s requirement is manufactured in India, as of
Dec 15 - Jan 15, 2016 _______________________________________________________________________ S S LisI N E now. A huge market, great potential and excellent profitP A margin envisaged in
The turnkey consultancy services can be made available from China, Netherlands etc. There are importers for the machinery in India from whom the unit can source.
manufacturing of sanitary napkins in India.
INSURANCE
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Passline News Services
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eople are extensively used to online for their buying and selling needs. It is convenient, hassle- free and also speedy. Like any other commodities and services, buying online insurance policies is also very common nowadays and it too saves on premium paid. There are certain myths attached with the online buying of insurances policies. Here are those seven myths that discourage you from buying insurance online. With the growing awareness towards the importance of getting insured; and specialised insurance being available for house, assets, car, health among others; more and more people are purchasing different types of insurance plans and policies. Online insurance is fast becoming the preferred route of choosing insurance and is fast replacing the traditional way of buying an insurance plan. Because of its various benefits, online has caught on with net users who can save a reasonable amount of money and effort while choosing a policy. However, there’s still a lot of confusion and misrepresented facts related with online insurance sector. The segment has seen growth of many online web aggregators offering comparison and buying services for various policies offered by different companies. Although, most of the time the process starting from research and ending at buying of a policy concludes without any hiccups, PASSLINE
Dec 15 - Jan 15, 2016
the myths related with online insurance need to be cleared. Let’s check up some of the most common myths and facts related with the online insurance sector: Myth 1: No personal assistance Fact: It is one of the most famous and majorly misunderstood facts. However, the fact is that most online insurers provide constant online assistance to the customer. From the start to the end, they provide information about the plan, clarification related to the clauses etc. Rest assured that
If you want to buy a health plan and medical examination is required, then the insurer will inform you about the ways to get it done and will get in touch with you for providing further assistance for the same. Purchasing insurance online gives you the flexibility which is lacking in the traditional route. Myth 3: Net expertise required Fact: It is a myth that for buying insurance online you need to be an internet expert. For purchasing insurance online, you just need to have a basic knowledge about
middlemen which reduces the overall cost of the policy, including the premium amount. The online plans are available at cheaper rate as compared to offline plans. Myth 5: Difficulty in getting on-time claims Fact: It is a common perception among people that the procedure for getting the claim amount for an online insurance plan is very difficult. However, in reality there is no difference in getting claims online and offline. Both are the same and provide your claim on time given the fact that all the necessary documents are in place. With an online insurance plan you don’t need to visit the insurer’s office again and again. Myth 6: Limited options Fact: With an online insurer or an online insurance web aggregator, you have the complete freedom and choice to compare from a host of available plans and check them carefully as there are many options available for a single product by different companies.
there is guidance provided at each step of the process. Myth 2: Complicated process Fact: Many people think that buying insurance online is a complicated process. However, purchasing insurance plan online involves a moderately simple process. All you need to have is internet availability and your documents. After logging in, search for a suitable plan, fill the form, get free quotes, choose the right policy and submit documents. Bingo! You are insured now.
Myth 7: Sharing personal information is not safe computer and the internet. With a little information, you can easily buy the most suitable insurance plan for you and your family without facing any difficulty. Myth 4: Purchasing online is expensive Fact: Buying insurance plan online is totally different in reality. It is the most cost effective way of getting a suitable insurance policy. It is cheaper compared to traditional offline insurance companies, as there is no participation of insurance agents and
Fact: All the websites of insurers are hosted on an SSL certified server, so you don’t need to worry about the misuse of your personal information. The server secures personal data and financial transactions well. So now that you are aware of the common myths associated with online insurance space, we are sure that you would be better prepared to make your next insurance purchase decision without worrying about buying a policy online.
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hennai is wriggling out of the disasters of the natural calamities that ravaged the state Viswanathan Odatt recently. It is not long to forget the Mumbai rain havoc, quake in Kashmir and Nepal, Tsunami in South India, hurricane in Andhra Pradesh, Calicut Mittayithervu and Thiruvanathapuram Chala incineration. However, majority of us wish it to be a matter of others’ concern and not affecting me, my family and paraphernalia. The time and gravity of mishaps can’t be predicted by anyone. Despite early warning and safety steps; nature’s fury often causes irreparable damage to the nation and people. Loss of lives, properties and crop are the gravest among disasters. We may sometimes be a mute spectator to the macabre dance of the nature. Climate change is the ultimate reason for the grain loss. We may examine the life of an average family. In respect of insurance of home, property and vehicle; surely there would be insurance for the vehicle since the law enforces insurance for the
Chennai catastrophe Adversity favours the insured wheeler on the road. If there is a home loan the lender might have insured the asset for the risk coverage. But the more precious thing than these is the safety of the earning members, their family; and accessories in the house regarding risk coverage. In our land, majority adults in a family will have different types of loans or encumbrances. When in good health and earning its repayment will be up to date. But accidents, maladies and catastrophes will default its remittances. Today’s life style, food habits and inertness, pollution would invite serious ills. The abrupt medical expenses will break the back of the protagonist. A low premium accident and health insurance for family will be a solution for this occasion. When there is health and income such savings will be helpful in such occasions. Loan should be for the right amount for covering all the risks; otherwise the compensation will be inaccurate. I.e. If you take a loan for Rs
2.5 lakh against an asset of Rs 10 lakh it should be insured for Rs 10 lakh; otherwise at the time of claim settlement the compensation will be less than ¼ of the loan of Rs 2.5 lakh. If you admire your members of the family you should first insure yourself ensuring financial viability for them in your absence. Natural destruction thrusts a heavy financial burden on the government, unabling it to pay damages to all and sundry. Hence only nominal compensation is distributed. Only few percentage might have insured their properties. But , insurance is mandatory for vehicles while taking loans for buying it. Naturally most of the vehicles are having insurance coverage . Seasonal farming is now out of our routine since we have rain nearly for 8 months. When one region experiences drought the other will have cyclone and floods. There is insurance for the losses caused by climatic varia-
tions. Residential complexes , buildings should be covered against tremor, fire and terrorism by insurance. Nowadays, we are facing new type risks. So, insurance should not be for namesake. There is no benefit unless, houses, business and its premises, commercial firms, industries are insured according to their market value and risks. It is well and good the belief that nothing will happen to me, but , when these much calamities happen around us, it is not advisable to turn a Nelson’s eye towards it. To restore your financial stability there is no other investment than insurance. Realize that your kith and kin have limit in aiding you. If your insurance company is granting the full insured amount as compensation, surely you will be safe and secured and also can make others secure. In your family you have to be secured first. In short, the insurance is the only fortune at times of adversity. (The writer can be contacted at : odatt@aimsinsurance.in)
Dec 15 - Jan 15, 2016
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Finance, including for the transfer of technology and capacity building is a crucial and key element of the Paris outcome. By Nozipho Mxakato-Diseko ARIS (IDN) - Warming of the climate system is unequivocal. Concentrations of greenhouse gases have increased and as a result the atmosphere and ocean have warmed, the amounts of snow and ice have diminished, sea level has risen, and the impacts are being felt in particular by developing countries. According to the latest science, the emissions gap with respect to the 2 degree celsius or 1.5 degree goal is not closing. Although developing countries have the least responsibility for climate change, they are the hardest hit and least able to respond. The implementation of existing commitments under the Convention (United Nations Framework Convention on Climate Change) is of crucial importance. The COP (Conference of Parties) provides an opportunity every year for the Parties to assess the progress made in the implementation of the Convention. In this regard, we need to use the COP to do introspection on the lessons learnt, as we are at the threshold of adopting a new universal agree-
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ment under the Convention that is set to catalyse the achievement of its objective. Very important work on implementation is undertaken in the subsidiary bodies of the Convention and these should not be overshadowed by our focus on future commitments that will only take effect from 2020. We cannot lose the five years between now and 2020 by shifting our focus away from the urgent work that needs to progress in the subsidiary bodies to implement existing commitments. Developed countries must take the lead Developed countries must take the lead in the lead up to the post2020 era by honouring and accelerating the implementation and increase the ambition of their existing commitments on mitigation and provision of finance, technology development and transfer and capacity building support to developing country Parties. The fact is that many commitments by developed countries, related to the pre-2020 period still, remain unrealised, including the nearly three-year delay in ratifying the Doha Amendment and increasing the emission reduction targets to at least 25-40% by 2020. There is also, as yet, no clarity on how the six-year old
commitment by developed countries of providing the US$100 billion per year by 2020 to developing countries will be achieved. We take note on the progress of the work on adaptation, particularly the Nairobi Work Programme, National Adaptation Plans and the Adaptation Committee. While we continue to assess the climate change impacts and vulnerabilities to various regions, it is important to take into account the need for planning processes and implementation of adaptation action, as well as commensurate support that is responsive to adaptation needs, and which transcend beyond planning levels and realise enhanced adaptation action at all levels. Greater focus on priorities and needs of adaptation enables a coherent and comprehensive response to climate change, not only in terms of mitigation, but also by tackling its impacts as a key variable to be considered in the Paris agreement and in national development agendas. Balanced progress We welcome the report of the Adaptation Committee and the effort to make balanced progress in all its work areas. We take note of the future workplan of the Committee and look forward to discussing it in the Contact Group.
We also welcome the work completed on means of implementation for adaptation and we hope that its outcome translates into something that can expedite support for developing countries. We are prepared to engage with partners in reviewing the recommendations to the COP contained in the report. The G77 welcomes the report of the Executive Committee of the Warsaw International Mechanism (WIM) for Loss and Damage associated with Climate Change Impacts. The work of the WIM and on loss and damage under this Convention is of critical importance to the Group. In order for this mechanism to be meaningful, it must address the needs and challenges faced by developing countries emerging from extreme and slow-onset events. We urge developed country Parties to make available resources in view of the ambitious nature of the initial two-year workplan of the Executive Committee. Finance and technology On finance, we reiterate that nothing under this Convention will be achieved without the provision of means of implementation to enable developing country Parties to address climate change. Fi-
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nance, including for the transfer of technology and capacity building is a crucial and key element of the Paris outcome. The outcome regarding finance must provide clarity on the level of financial support that will be provided by developed country Parties to developing country Parties to allow for enhanced implementation of the Convention in the post-2020 period, as well as existing commitment on pre2020 finance. We require a substantial scaling up of finance from the 2020 base level of US$100 billion and Annex I country Parties and other developed countries included in Annex II have the principal responsibility in providing support. This includes setting short-term collective goals for the post-2020 period that go beyond this floor, and are revised upwards every five years, while ensuring that the finance is new, additional, predictable and sustainable with an equal allocation between adaptation and mitigation. The financial mechanism of the Convention must serve as the financial mechanism of the legal agreement. The related funds established under the Kyoto Protocol and under the financial mechanism of the Convention must
also serve as instruments of the new legal agreement. On long-term finance, we need a decision that sets a clear pathway towards achieving the US$100 billion goal by 2020 and flows of finance, in particular for adaptation, under the financial mechanism of the Convention and the specialised funds. These should scale up, particularly in the context of increasing climate risks faced by developing countries. The decision in Paris must lay the foundations for the Long-Term Finance Ministerial session on the agreed thematic cluster of issues to be held at COP22 in Moroco. Furthermore, in the work on transparency, it is important that progress is made on both transparency of action, as well as transparency of support, as an opportunity to improve our collective understanding of the different elements that encompass the response to climate change. Various aspects of finance are discussed in a fragmented way across the Convention bodies. We believe that it will help the process if the linkages between all matters related to finance, whether it is under the Convention, the Kyoto Protocol or under the ADP (Ad Hoc Working Group on the
Durban Platform for Enhanced Action) can be discussed in a more comprehensive and coherent manner. Technology transfer is a key component for developing countries to be able to effectively address climate change. Effective mitigation and adaptation actions will depend on access to technology, including the development of endogenous technologies by developing countries. The Technology Mechanism has an important role to play in order to support the rapid transfer of technologies to developing countries, helping them innovate and develop their own technologies. We would like to see concrete enhanced actions on technology development and transfer, accelerated and scaled up by the technology mechanism. In this regard, we believe it is crucial for the technology mechanism to strengthen its effective coordination with the financial mechanism, as well as to strengthen the linkages with relevant organizations. We reaffirm that the process and outcome of the ADP should be faithful to the Durban mandate focusing on the pre-2020 ambition gap, as well as the conclusion of the Paris agreement, which must
be guided by and be in full accordance with all principles and provisions of the Convention, in particular the principle of equity and common but differentiated responsibilities. The Paris agreement must address the core elements mandated by the Durban decision (mitigation, adaptation, finance, technology development and transfer, capacity-building and transparency of action and support), as well as loss and damage and response measures in a comprehensive and balanced manner. Urgent action on the pre-2020 period is essential to build trust and create a platform for the post2020 agreement. A long-term goal and an ambition mechanism are essential for the post-2020 period. – Third World Network Features. (Nozipho Mxakato-Diseko is a South African ambassador.The above article is reproduced from IDN-InDepthNews, 2 December 2015. It is based on the speech made by Ambassador MxakatoDiseko on behalf of the Group of 77 and China at the opening plenary of the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (COP21) in Paris.) Dec 15 - Jan 15, 2016
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nited Nations C l i mate Change Conference (UNCCC) for or and K Vijayachandran. 2015 COP 21 or CMP 11 will conclude in Paris on December 11. It was the 21st yearly session of the Conference of the Parties to the 1992 United Nations Framework Convention on Climate Change (UNFCCC) and the 11th session of the Meeting of the Parties to the 1997 Kyoto Protocol. COP20 as well as the CMP10 of last year had ended in utter confusion on the future of KYOTO protocol which was a dead document even before that session took off and it has been given a decent burial and the present conference is expected to legitimize this burial by adopting a flexible self-regulated targets and program by the member states of UNPCC: In all probability instead of yearly reviews there will be only five-yearly review hereafter as proposed by China. The United Nations Environmental Program (UNEP, estd 1972) had floated the Intergovernmental Panel on Climate Change (IPCC) in 1988 jointly with the World (International) Meteorological Organization founded in 1873 in the previous century (IMO from 1950). IPCC thus could claim a long lineage of nearly one and half century. IPCC claims to be the leading international body for the asPASSLINE
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sessment of climate change: “It reviews and assesses the most recent scientific, technical and socio-economic information produced worldwide relevant to the understanding of climate change. It does not conduct any research nor does it monitor climate related data or parameters. IPCC bases its assessment on the published literature, which includes peer-reviewed and non-peer-reviewed sources.....Thousands of scientists from all over the world contribute to the work of IPCC on a voluntary basis. Review is an essential part of the IPCC process, to ensure an objective and complete assessment of current information.” A Secretariat located at WMO headquarters in Geneva coordinates IPCC work and liaises with Governments. The volume of work and documentations turned out by IPCC on a global basis during the two decades after its founding in 1988 was fantastic. There were hundreds or even thousands of young research workers and social activists, inspired by the theories on limits of growth propounded by the Club of Rome which had pioneered the global environment and green-peace movement of the late twentieth century. They were not climate or whether experts and many were not even wellequipped with research methodology and discipline. Many of them were well-meaning social scientists: Their foot-prints could be seen all over the voluminous reports generated during this pe-
riod. This, obviously, was an aberration and differences persisted not only within the world scientific community but also among the member states of the UN System. This had led to the establishment of a Non-Governmental Panel on Climate Change (NPCC) under the initiative of the Heartland Institute Chicago, Illinois (www. hearland.org), with the participation of several well-known climatologists and scientists of global repute. They have been critically reviewing the IPCC volumes for the past half dozen years. And I had been following their debates on the internet for quite some time. Several volumes of study reports, running into over 4000 pages, are planned to be brought out by NPCC, in the near future, by this non-governmental initiative as part of their global campaign against the fraud perpetrated in the name of global warming. A summary report titled, “Why Scientists Disagree About Global Warming”, was released by NPCC in Paris in order mark COP21. The first chapter of this book points out that scientists disagree about the environmental impacts of the combustion of fossil fuels on the global climate. Extensive survey data show deep disagreement among scientists on scientific issues that must be resolved before the man-made global warming hypothesis can be validated. It points out that “many
prominent experts and probably most working scientists disagree with the claims made by IPCC.” IPCC and virtually all the governments of the world depend on global climate models (GCMs) to forecast the effects of humanrelated greenhouse gas emissions on the climate. There is a built in bias in these statistical models which are un-supported by physical theories. Statistical correlation by itself cannot distinguish between cause and effect. Thus the question whether CO2 forces global temperature or temperature forces CO2 continues to be an unsettled issue. Historically, increases in atmospheric CO2 follow increases in temperature, they did not precede them. Therefore, CO2 levels could not have forced temperatures to rise as argued by IPCC. And this is the key or crucial argument that would unsettle the very foundations of global warming theory built up by IPCC. And, in order to circumvent this difficulty IPCC has brought out a large number of subsidiary arguments like extreme whether conditions like heavy rainfall, floods, droughts etc being caused by the climate changes induced by CO2 load I the earth’s atmosphere. NPCC studies have challenged and disproved each one of such hypotheses. NPCC book concludes with the policy recommendations: (1) Rather than rely exclusively on IPCC for scientific advice, policymakers should seek out advice
19 from independent, nongovernmental organizations and scientists who are free of financial and political conflicts of interest, (2) individual nations should take charge of setting their own climate policies based upon the hazards that apply to their particular geography, geology, weather, and culture, and (3) rather than invest scarce world resources in a quixotic campaigns based on politicized and unreliable science, world leaders would do well to turn their attention to the real problems their people and their planet face. These were, in fact, the right policies even when the Kyoto Protocol was adopted in Kyoto, Japan, on 11 December 1997 and entered into force on 16 February 2005. Global community has allowed the irrational protocol of Kyoto to lapse under its own weight but without attempting
the much needed basic correction. But more and more voices are coming in that exposes the irrational and unscientific approach of the IPCC, the UNFCC and the UNEP. Bill Gates was quite frank in his criticism when he visited the IPCC venue in Paris: He had reportedly said: “If we are going to make the cost of clean energy as inexpensive as hydrocarbons, or coal energy today, we will need innovations�. He was obviously against forcing of high-cost solar, wind or nuclear electricity on countries like India in the name of fighting climate change. That was an indirect criticism of the Indian policy that had planned to import 20,000 MW each of solar and nuclear power capacities, not based on any economic logic but in the name fighting climate change. And for Javadekar our minister
for environment the recent Chennai floods have come in handy to support his patriotic credentials. He linked the Chennai deluge that has claimed several lives, flooded streets and cut power and ration supplies to the global warming caused by developed nations in their bid to industrialize in the last century and half�. Such arguments from our political leaders sound hollow when seen in the background of indiscriminate import of power plants and gadgets in the name of fighting climate change. London Economist, a consistent critic of fraudulent theories of climate change has come out with a cover story this time on the COP21 drama in Paris which is being witnessed by a 40,000 strong volunteer crowd drawn from all parts of the world. It has taken a paternalistic view of the IPCC arguments this time. How-
ever it refuses to endorse IPCC convictions on global warming by carbon and remain skeptical by quoting divided public opinion among the Republicans and Democrats: Republicans mostly ignore the question while Democrats seems to be divided 50:50. It seems to be endorsing Bill Gates: More money for research and less on public campaigns. COP21 appears to be looking for a track change with regard to the theories on global warming and CO2 phobia. Kyoto protocol will be buried for ever and every country, developing or developed, will have more freedom to choose its primary source of energy with out the fear of the earth getting hot. It looks the world is on transit to a new era of energy politics form the old one which was dictated on by what was known as the oil crisis once upon a time.
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Realty awakening from slumber
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he realty sector in Kochi which was in life supporting system is slowly but firmly showing the sign of recovery. Even though there are a lot of problems like uncertainty on regulatory norms, issues regarding fire and safety, hike of registration fee, lack of cooperation from the banking sector etc still prevailing on the sector the demand is slowly picking up. AcPaul Raj cording to Paul Raj of Alfa Realtors , who is also the President of CREDAI Kochi, “ we do not have a stock pile of massive size now. A few promoters who have properties in Kakkanad and surroundings may have few with them. It will be sold after finishing the expansion work of Infopark and the completion of Smart City. Most of other players do not have surplus with them and there a lot of new projects have been announced recently by the leading promoters worth Rs 2 -3 crore each. Mainly the demand is from NRIs and the highly paid salary class mostly from the IT field. Peculiarity of the recent demand is from people residing outside Kerala whose siblings are working either in any of the IT Bellwether or similar type of job in the city. Demand from Malayalee community, mainly people from central Travancore, is also there due to the above said reason. Now the air of Kochi’s realty sector is so clear that no prevailing factors blemish the sector with scams and scandals. Though the dip of crude oil prices dampens the spirit of people from Gulf countries; NRIs from the US and Western countries are PASSLINE
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still keen on Kochi’s realty sector, considering the rich returns. One who analyzes the sector should count that Kochi is now carrying the status of tier-II metro city in the country. A property in the city gives its owner value for his money and privilege in society,” Paul Raj added. According to Secretary of CREDAI Kochi, Thankachan Thomas of Prestige Constructions, ``the commencement of Metro Rail System in the city will give a face lift to Kochi and it will mitigate the Thankachan problem of connectivity for some extent. Naturally, the demand for houses and apartments will drastically soar in the city. In the next three years Kochi needs a minimum of 50,000 apartments because the expansion of IT infrastructure and commissioning of the Smart City will take place. Real Estate Regulatory Bill 2015 will also become an Act immediately which will surely boost the buyers sentiments”, said Thankachan. “Now the NRKs residing in Gulf countries do not want to invest in Gulf countries ever since the crude prices started to nosedive. Their only option is the investment in their home land. But there is no avenue other than real estate that Ravisankar gives lucrative return for the investment”, said Ravi Shankar of Prime Meridian and the Joint Secretary of
CREDAI Kochi. Above that, as everybody knows , the completion of Smart City and the expansions of Infopark will further escalate the demand. Cochin Refinery is also expanding in massive way. These factors coupled with infrastructure Roy Joseph developments like Metro Rail and new roads will augment the sectors development in future. In general, the sentiments are favourable for the realty sector in Kochi.” “ For the real estate sector in Kochi this period is most suitable,”
CAPTAIN Premium Interior Emulsion Paint
remarks Roy Joseph of Trinity Builders and also the treasure of CREDAI Kochi. There was a lull for the last four/ five years. Now the market is showing a positive trend. The development of Kochi is incomplete without ample number of dwellings to residents. The high rise buildings are the only way out for Kochi, since its one third is covered by water. The authorities must consider this whenever they go for stringent norms in Real Estate Regulatory Act. Safety of the inhabitants in an apartment should not compromise; but in the name of that if someone trying to kill the goose that is laying golden eggs is not tolerable,” asserted Roy.
Royal Duke Exterior Emulsion Paint
Duke Pride Exterior Emulsion Paint
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ulsi Developers India Pvt Limited is a name to reckon with basil ( tulasi plant) which every household wishes to adorn and adore. Established in 2000, Tulsi Developers has delivered several customer- dreamt homes. Tulsi now has two ongoing projects, the Tulsi Blu Rain at Aluva and Tulsi Plus Square at Kakanad. Tulsi Capitol Pointe at Vyttila was launched recently. Blu Rain: Tulsi has now zeroed in on the construction of its first villa project--Blu Rain--which is being developed in 4.71 acres of land facing the Periyar and has 47 luxury villas. Set on the banks of the Periyar at Thadikkakadavu, Aluva; Blu Rain has carved the beautiful slice of land pleasing to its beholders by its natural charm and scenic beauty. It brings a lifestyle in serene and salubrious surroundings. Here you are going to re-discover the pleasure of living on the refreshing riverfront. Serene Garden at Vennala embodies seven posh villas with
classic features like swimming Square is a completed projpool, party area, health club, as- ect. The 16 apartment project at sociation office room, 24-hour Mundampalam, Kakkanad, was security, children’s play area, completed within a span of 1 year. intercom facility, Wi-Fi connec- A highly customer-driven comtivity, generator backup, pany, Tulsi Developers’ indoor games area, extenaim is to provide topsive compound wall and quality services to a large internal road with paved clientele, and it exclutiles. sively markets projects Tulsi Capitol Pointe: Tulwhose signature means si Capitol Pointe is the excellence. It has also new venture in the most ambitious plans to meet Thulasi Das sought-after place Vyttithe needs of a demanding la. Sprawling in 1.2 acres of land, sector. This means valuable savthe twin tower project with a sep- ing in time for those who don’t arate Club House will stand tall have it or the inclination to get amidst the city of Kochi. With the into the confusing or laborious proposed metro station also com- procedure of buying a property. ing live soon Vyttila will be much Tulsi Developers’ target is to more connected with the hive of extend its development line and activities. Tulsi Capitol Pointe continue to use it as a platform on comes with a range of modern which a powerful group is built, amenities akin to the other proj- a group which constantly extends ects which makes it stand alone its broad realm of activities both among other apartment projects. in India and abroad and is able to Truly it is said Tulsi Capitol compete and survive in any operPointe offers luxury to its core. ating environment. Tulsi Plus Square: Tulsi Plus Tulsi Builders` goals are to en-
hance its strong position amongst the elite property developers in the country; strengthen its profile as a company of high quality and reliability in all areas; increase its productivity and serve better its clients through continuous improvement and development of its staff. The mentor Hailing from Cherthala, Thulasi Das, Chairman of Tulsi Developers, is a handsome rich dynamic mentor in the realty business as he has involved himself in its dealings from a very young age. So he needed no training and advice in this field. The knowledge and acumen and the two-decade experience Das acquired reflect in his projects which are customerfriendly and affordable and meet the needs of a demanding sector. The Chairman pays utmost attention to all the pros and cons of his business, may it be homes or plots. As a consequence, Tulsi Developers’ projects whether they are homes or apartments, are disposed of at their nascent stage itself. The Chairman says `` we value the importance of tradition. Our main objective is to see the wish of our clientele fulfilled. So we have brought luxury waterfront villas, apartments and houses for sale in Cochin, Kochi and Ernakulam.” Dec 15 - Jan 15, 2016
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eegaland Developers is the realization and a long cherished dream of V-Guard Group’s founder, Chairman and Patron, Kochouseph Chittilappilly. Being the fastest growing business group with proven expertise in entertainment, hospitality, electronics and Garments industry, the name ‘V–guard’ became synonymous with quality and services. The group’s tradition of innovation and people orientation is extended to the new venture - Veegaland Developers. Following the tradition of unwavering concern for high quality and to exceed expectations, Veegaland Developers is also set to become one of the most reliable builders in Kerala just within a couple of years. The passion to build a place in the heart of a discerning home seeker takes us to build homes
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where comfort and luxury is everything and happiness becomes our guiding thought. And that is the very foundation on which the edifice of Veegaland Developers has been built. Following the tradition of unwavering concern for high quality and to exceed expectations, Veegaland Developers is also set to become one of the most reliable builders in Kerala within a couple of years. Veegaland Developers can boast of its part in versatile portfolio containing some of the marvelous properties in South India like Wonder La Amusement Park, Kochi ,Wonderla Theme Park, Bangalore, Wonder La Resort, Bangalore and V - Guard Corporate Office, Kochi. The engineers, architects and the technical team who accomplished the above monumental projects are now here to rewrite the concept of urban housing. The expertise acquired through the creation of
these landmarks will go into the creation of your home to make it a path breaking living environ of class and comfort. Veegaland Developers’ maiden housing project, “Green Clouds” Vertical Garden Bungalows at Vazhakkala is an exclusive housing project of expansive 4 bed super luxury apartments each apartment having a space of 8795 sqft. Situated just 60 meters away from the Palarivattom - Kakkanad main Road at Vazhakkala, this ultra-luxury designer sky villa project is aesthetically designed not only with luxury living in mind, but also with a focus on tranquillity and a charming ambience. Veegaland Green Clouds apartments are built for a select community and so exclusive with only 11 apartments in 15 floors. The entire three floors from the ground are earmarked for common amenities. Each apartment offers parking facility for 3 cars.
Three lifts will be functioning for 11 families. Common lightings are covered by solar and the dual cabling for solar and electric power reduces power consumption. Rain water harvesting system takes care of the water needs for irrigation needs, RO water for different uses are met by the water source from two bore wells within the project. Biometric entry card, Barbeque area , mood lighting , CCTV, video door phone, round the clock security, home automation, VRF air conditioning equipments, Double glazed windows, SMA TV, expansive club house , Large swimming pool, recreation room, fitness center/ health Club, Jacuzzi and party hall, abundant landscaping and imaginative social and recreational spaces make Veegaland Green Clouds an unparalleled lifestyle project. Every apartment here allows its resident to enjoy the spectacular vista of the locale and the easy of living close to the city centre, just minutes away from dining, shopping, religious and recreational facilities. Clean Lines,
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regu l a r shaped rectangular floor layouts with 360° view, 1 apartment on each floor, surrounding garden with a walkway around make it a palace where you are the ruling emperor . Its an empire steeped in luxury, cherished with possessiveness and envied by the less privileged .All to take life to a higher level. Breathe some fresh inspiring air and stretch out in a life of comfort while you enjoy the elegance and sophistication of our exquisite sky villas.Choose from any one
of 1 1 marvellously appointed sky villas , with open varandahs on with garden on all sides to keep the fresh air flowing and sunlight, lighting up rooms till late.Construction of the project is on full swing and progressing towards handing over by the end of 2014. Veegaland Developer’s second project, “Petunia &Begonia” is a unique twin tower luxury apartment complex in the heart of the city at Kaloor. Veega Land Petunia and Begonia is to redefine your urban lifestyle. Conceived with organic principles, they are unique in architecture, amenities and ambience with a pronounced leaning towards nature. Virtually
everything you could desire is just steps away from your home at Veega Land Petunia& Begonia. Located right in the heart of the city at Kaloor. Shopping, schools, bus stand, railway station, metro station, dining and entertainment spots are surrounding you. Temple, Church and Mosque are within a radius of 250 Meters.It accommodates functionally elegant 2 &3 BHK apartment units complimented with thoughtfully provided common areas to ensure a sophisticated urban living space. The project imbibes the best of green, smart building principles without cutting corners of luxuries. Petunia & Begonia brings a world of conveniences at its doorstep. With super premium lifestyle amenities like club house, swimming pool, health club, recreation facilities, high
speed lifts ,children’s play area and many more .. It will endear a dream dwelling of a different kind. Veegaland Developers’ new launch in Tripunithura, the “KingsTown” will be a bang on the middle of the town location with close proximity to college, hospital, school, and temple. The 2 & 3 BHK luxury apartment complex has 75 units with premium amenities to match the project features like club house , Recreation hall, fitness centre and terrace top swimming pool. Many more ambitious projects are on the drawing board of the management and are definite to make a telling difference in housing development sector. Veegaland’s customer orientation and commitment to deliver quality products at right time are sure to win over the trust of discerning home seekers.
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Indroyal : luxury to the fore
he IndRoyal Group, a mul- like remote gate, curtain control, tinational business entity, mood lighting, A/c controls, mohas diversified business tion sensors, door phone with interests and expanding market camera, burglar alert, gas leak presence. Its real estate arm, In- detection, virtual parenting, wi-fi droyal Properties, is a renowned etc to mention a few. name in the residenTHE UPTOWN also tial, commercial and offers extensive recrehospitality sectors ation facilities includin India and abroad. ing an infinity edge Indroyal Properties, swimming pool, kids’ one of the top realtors pool, kids’ play area, in Thiruvananthahome theatre, reading puram, builds highroom, sauna, steam end luxury projects room, Jacuzzi, gymon par with internasium, billiard room, national standards. tennis court, yoga and THE UPTOWN, the Sugathan Janardahanan meditation pavilion upcoming apartment and spa. There’s also a dedicated project in Thiruvananthapuram, janitor service to take care of evis the maiden project of IndRoy- ery need. With beautifully landal Properties. scaped surroundings, this super THE UPTOWN sets a new trend luxury apartments in Thiruvananfor luxury living in the capital thapuram features solar powered city. A landmark in its own right, lighting and plenty of common THE UPTOWN sports a strik- space all around, residents can ing architecture featuring twin get together, interact and enjoy towers rising from a podium and the very best of community livconnected by an impressive sky- ing. walk to enjoy the beauty of the Coming up at PMG – Kannamoonature in the twilight of the dusk. la Road, Thiruvananthapuram, The apartments, envisaged for the new residential project, comthe exclusive luxury bines all the essentials living in Thiruvanaof a great lifestyle nthapuram, provides prime location, excepall the essentials of tional amenities and a great life style. good connectivity to These towers comimportant destinations prise 3 bedrooms of like International Air213 apartments of port, Railway Station, international stanSecretariat, Univerdard, besides garden sity College, Kendriya homes and penthousVidyalaya, Holy AnSunny George es. gels like 14 prominent educationThe twin-tower condominiums also offer Plantinum and Diamond apartments, with the former offering fully air-conditioned and fully furnished readyto-move-in homes fitted with all requirements with everything from furniture to home automation systems to curtains and even exquisite objects for home décor. The home automation features take over various conveniences PASSLINE
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al institutions and 11 main hospitals within 5 km radius. Established in 1991 by Sugathan Janardhanan in Ajman, UAE, the Group first launched furniture business. The enterprise, named Royal Furniture, is today one of the largest ISO 9001:2008 certified manufacturing and trading companies in furniture and furnishing accessories, across the
Middle East and Asia.
Sunny George, Executive DirecManaging Director K S Premku- tor, is a Commerce Graduate from mar is a graduate from Bombay Calicut University and a qualified University. Premkumar is a lead- Management Accountant (CMA) ing expert in the field of hospi- holding the associate membership tality living and luxury property of the Institute of Management Accountants. Adept development. In his at financial planning many roles with leadand project impleing Dubai based busimentation, has a track ness corporates, with record of successfully diverse interests in implementing projreal estate, construcects, be it industrial, tion and hospitality. residential or hospitalPremkumar headed ity. Sunny George has the development of a been heading Finance number of residential & Operations of the buildings, commercial K S Premkumar Indroyal Group for the complexes and fivestar hotels, managed by interna- past 15 years, and was instrumentional chains such as Sheraton tal in setting up furniture factories and the InterContinental Hotels in India and hotel apartments in Group (IHG) in the Middle East, Dubai. Africa and Europe.
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services. Added advantage is the proximity to the famous malls of the city, just a few minutes drive from Thammanam.
asoram Builders is a notable name to read with A R S Vadhyar who has a noble dream to provide quality housing to affable customers. Vadhyar is the mentor of the venture, who has traversed a long way, both as a pioneering businessman and a visionary. His entrepreneurial skills have been marked by his will power to fight against odds and bring in path-breaking ideas, excellent designs, durable materials and branded wares. Nearing 40 years of trusted track- record, Yasoram Builders, one of the most sought -after building groups in South India, is committed to perfection in every single project they conceive and complete. Apart from dedicated approach to housing solutions, the group is widely admired for choosing prime locations for most of their ventures since location matters the most. Yasoram’s highly innovative projects are the trend-setters in the realty realm. Vadhyar is also famous for introducing the concept of terrace farming and gardening in India. Yasoram’s latest projects are ARL HEIGHTS and THE ABODE. Apart from these, there are a few more novel projects on the anvil. ARL HEIGHTS brings to you the features of a futuristic lifestyle. Located near to the hub of the city ARL Heights offers proximity to a myriad of entertainment and leisure sites. It also gives you easy access to other vital spots in the city such as educational, PASSLINE
A R S Vadhyar business, commercial, travel and healthcare destinations. The alluring 17- storey tower’s ground floor and first floor entirely used for parking. The next ten floors have 40 apartments of 3 BHK area ( 4 units on each floor) and the top five floors hold 10 apartments of 4BHK area (2 units on each floor). These 50 premium luxury apartments are structured with finest building materials, fittings and accessories. ARL HEIGHTS also ensures all the facilities, amenities and luxuries all modern homes are proud of. Although away from the city hub, THE ABODE feels the pulse of the city since it is situated near Jawaharlal Nehru Stadium, off the Thammanam-Pullepady road. With a peaceful setting. Thammanam is prominently a residential area with stores, schools, medical clinics, temples, churches and mosques. The Vyttila Mobility Hub and MG Road, both being nearby, will in the near future offer all types of transport including the Metro Rail and even Boat
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The 4 floors of YASORAM THE ABODE houses perfectly designed 3 bedroom units, befitting the new age home buyer, his demands and tastes. The project features 6 living space designs and a spacious courtyard at the centre. In the aerial view,THE YASORAM ABODE looks like a `P’ like structure, indicating the perfection given to the details.
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KOEL Green Brand
OEL Green is the Genset brand of Kirloskar Oil Engines Ltd (KOEL), the flagship company of the century- old Kirloskar Group. KOEL Green is India’s largest selling and most trusted Genset brand for over a decade. Providing back-up power solutions from 15 to 5200 kVA for diverse market sectors, “KOEL Green” has over 1 million Gensets in service across the globe. Research and Engineering KOEL Gensets are designed and developed indigenously, using modern design & simulation technologies. KOEL’s R&D team combines decades of application knowledge, global technology trends and emerging user expectations to develop best-in-class products for the target markets.
The products are launched after extensive validation in worldclass facilities. State-of-the-art Manufacturing KOEL Green Gensets are manu-
factured at the state-of-the-art manufacturing facilities of KOEL and authorized GOEMs across India. Common design, modern infrastructure, trained manpower,
stringent process controls and standardized material quality ensure that every KOEL Green Genset complies with the standards and meets KOEL’s strin-
gent quality norms. Sales Network A well-trained network of authorized KG Dealers and GOEM Sales teams is spread across In-
dia to serve your requirements. KOEL offices at key locations provide further techno-commercial back-up. KOEL Sales teams are equipped to carry-out load study, Genset sizing and technocommercial support. Installation and commissioning activities are also undertaken in line with KOEL’s stringent guidelines. Service Network As Genset cannot be driven to a Service Station, service has to come to your door-step. KOEL Green Gensets are supported by over 5000 trained Engineers and over 450 well-equipped service outlets throughout India. Standard and custom-made maintenance packages offer a total-peace-ofmind ownership experience. Service response time and quality is centrally monitored for cross-industry bench marking and continual improvement. Customers just need to dial our toll free number; and service will be available at the door step.
Power Mech
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ASTEN : Sets trends for others to follow
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sten Realtors is an Asten Mather company, a realty master that offers integrated living for its customers through innovation and professional management. Its team caters more than 25 years of expertise to the table. More importantly, they bring with them a passion for new ideas, and a determination to execute them. In just a small period of time, Asten Realtors Siraj Mather has become a unique brand image in Kerala’s real estate industry. Asten Realtors is being led by duo , Siraj Mather and Raffi Mather. With more than two decades of experience and ex-
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pertise in the realty sector, they have been the key members of a team that helmed one of Kerala’s most respected lifestyle housing projects. Being a stalwart, Siraj Mather brings to Asten a keen understanding of customer psyche and a thorough knowledge of the processes required for smooth implementation. The creative force behind Asten, Raffi Mather, has been in forefront of the lifestyle revolution in Kerala. An avid traveller, Raffi draws inspiration for his projects from the exotic destinations he visits. With a passion for great architecture and design, he seeks to constantly reinvent life for his customers. With its innovative projects like Villament, integrated lifestyle township, boutique apartments etc, Asten sets trend for others to follow. Unique in the way of thoughts, but realistic in ideas,
and the right location defines its success with a vision to set the industry standards in realty and be the first choice amongst discerning residential and commercial space buyers. For instance, Rajagiri Campus Court, Kerala’s first Integrated Township Project at Kakkanad, is a one-of-a-kind township project that includes Campus Court-a high rise residential apartment project, a 120-room luxury hotel block and Asten Mall--a commercial Raffi Mather shopping mall facilitated with multiplex, food court, spa zone, hypermarkets and other lifestyle stores.
The whole idea behind creating a massive project as such is to ensure one lives in a truly relaxed surrounding. This lifestyle is the best option for families with children as it includes educational institutes within the community ensuring safety, added with 24/7 electronic security system and guards at every gate. Even working professionals find this advantageous with the mind easing concept of-- work next to home. Few other notable projects from Asten are its compact feature apartments-- Viveria, starting at just Rs 37 lakh (all inclusive), where quality comes at an affordable rate, Nautica-- the active waterfront dwelling right at the scenic Panangad; Dew Dale at Kanjirappally and Veneziano the premium contemporary villas at Koonammavu, Edappally that were recently handed over .
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haithanya Paints Pvt Ltd forayed into the paint manufacturing when the multinational brands dominating this sector and within a short span of time it came to the forefront of the industry with its quality paints like Royal Duke Premium, Duke Pride Exterior Emulsion, Captain Duke Premium, Indoor Duke Interior Emulsion, Duromax Acrylic Distemper and other 24 paint products. Chaithanya paint company is incepted with a long vision in serving the clients with quality
products. How far the company infused into the paints they manhas succeeded in paint ufacture. This increases business has proved the demand and trust for by the opening of its its paints in the market. corporate office at L R Potty, Managing Kundannur Highway Director of Chaithanya Junction, Kochi. Paints, says the reason With vivid colour vifor their success in the sion and rich experiindustry is the slogan ence in paint produc`the products with quality tion for more than two mark can only exist in the L R Potty decades the promoters future’ has smoothened of Chaithanya possess a clear the way of success. perception of colour which was Potty says the greatest asset of
Destination for homely items
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ilver Homes P r i vate Ltd is a construction company started in 1993 on a C Unnikrishnan shoe- string budget and has completed seven projects so far under the stewardship of C Unnikrishnan, the Managing Director. Unnikrishnan realized that real dream of a home does not end with the completion of the outer structure. Elegant doors and cute frames leverage the beauty of the external look as well as pleasing interiors furnished with majestic furniture and lovely fixtures add luxury to the dwellings. There comes the
significance of the wood in house building. To be a wholesome builder Silver Homes forayed into the wood material division by setting up Doors & Frames delivering good wood items to the homes including Doors, Frames, RSKD, Windows, Wooden Slabs, Finger Jointed Boards, Modular Kitchen, Wardrobes and Furniture at moderate rates. The wood items are made out of imported and Indian wood. Doors & Frames delivered to the orders of major builders and resorts for their completed and ongoing projects besides supplying doors and wood articles for
other residential projects. Marble World and Universal Building Products are the sister concerns of Silver Homes Pvt Ltd. Wood apart, glass works bring glitz and glamour for any construction. Glass furnishings of the
every venture is its loyal and experienced workforce. It doesn’t make any difference with whatever be the product. A company is as good as the people it keeps. If you honour and serve the people who work for you they will honour and serve you. Chaithany’s quality vision is approved and appreciated. It was granted the ISO Certification 9001-2008, Consumer Protection Award 2009 and Best Customer Service Award. buildings are also done by Doors and Frames. They undertake the glass work at their Bangalore factory and deliver. Doors & Frames has offices in Bangalore and Kochi. Advantage, these four companies provide all the homely goods and services needed for a house under and after construction.
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t is not necessary for the common investor to understand the intricacies of financial markets. We often hear that lack of financial literacy is hurting everyone. Most people find finance boring. Try this: open the bonnet of our car and try to explain how the machine works. Or list the ingredients in your shampoo and face cream to prove that you are an informed consumer. Feeling confident that most would fall both tests, let me plead for not imposing too many conditions for knowledge, literacy and information on investors. Everyone earns money and figures out how to use it. Not everyone is interested in the math. Finance is complex, and it should not be mandatory for everyone to master the subject before taking simple decisions. Investors need the basics and not the jargon filled literature that throws numbers and tables at them. Reaching useful financial products to investors is the business of banks, mutual funds, insurance companies and finance firms. These businesses have failed to simplify what they have to offer to investors because they think complicated product proliferation is the nicest way to brow their trade. The simple bank deposit continues to attract most investors despite the low interest and high tax incidence because everyone understands the product. What stops other products from being as simple? In a bank deposit, accountability for performance is well defined. The borrower is the bank with an established business of making loans. Regulations control how the bank would be capitalized, PASSLINE
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and how the loans have to be accounted for. The singular objective is to protect the depositor, from possible defaults. To the depositor, feeling secure about the deposit, earning a defined interest income, and being able to access it anytime are all that matter. Investing in a bank needs no special knowledge and is, therefore, a default choice for most. As finance developed, it got democratized beyond the deposit.
an insurance company, a mutual fund or a financial advisory is only offering professional services to reach various financial products to investors. The problem is that the accountability of these intermediaries is too weak and responsibility too low. Fee- based intermediaries thrive on volume and therefore, quickly turn into sellers and pushers of products. In the name of product innovation, they confuse the
An entrepreneur who needs money expanding his business can come to the market with an offer of equity shares. He can raise money from a large number of people, who are willing to bet on his business idea. Financial markets are made up of products issued by governments, institutions, companies and such entities. While this proposition enables fund raising and deployment to move beyond the desk of the bank’s loan officer, it messes with accountability and responsibility, making it complex for the common investor. The market place involves a large number of intermediaries who are fee based and not fund based. A bank deploys its own capital, manages its assets and liabilities for a profit, and is hit directly when a loan goes bad. A fee earning institution like a brokerage,
investors. There are simply too many products and many of them needlessly complicate what they do. Financial literacy then focuses on products, features and performance, leaving investors clueless about how to choose. Investors can choose only if they know what the basic performance parameters are. Financial products show no empathy with the user. Investors do not know how markets have modifies their choices and insist on the old equation of what I give and what I get, preferably predefined. When finance is democratized using markets, and when fee based intermediaries move in, this equation cannot be defined in precise terms. Firms may succeed or fail share prices move up and down, bonds may pay or fail, and performance of financial products is not guaranteed.
Investors fail to grasp this complexity because they are unable to separate the basic fundamentals from the complexities introduced by intermediaries. They do not know what to expect second, users learn from experience. Investors experience with financial products and intermediaries do not provide them with the confidence to trust and to use a financial product confidently. The challenge for financial literacy and regulation is to address these issues so that investors are able to participate in financial markets with the same ease with which they use bank deposits. Investors should be helped in understanding how markets are different from banks, and how one should navigate this system. Investors do not have the time or inclinations to learn finance. They are looking for simple products and easy rules to decide. Financial literacy drives should begin with the basics and enable investors to transition from banks to markets. If they figure the steering wheel, gears, accelerator and brakes, they would not care about what lies beneath the bonnet.
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Kerala B2B Meet for SMEs from February 4 - 6
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erala Business-to-Business Meet 2016 is being organised by the Department of Industries & Commerce, Government of Kerala. More than 300 buyers from India and abroad will participate in the meet. Over 100 buyers have already registered for participation in the meet. The three-day meet, which will be organised at CIAL Trade Fair & Exhibition Centre at Nedumbassery from February 4 to 6, will serve as a platform for SMEs from Kerala to meet industry
leaders from across the globe and find prospective clients. Registration of 87 buyers from India and 16 from overseas has been completed through Federation of Indian Chambers of Commerce and Industry (FICCI), which is the trading partner of the B2B meet. The registration process for buyers is still on. As many as 200 SMEs have registered for the event through 14 District Industries Centres in the state. The registration of SME units (Sellers) has been completed.
The most number of registrations were received from the food processing industry. Industry representatives from electrical & electronics engineering, handloom & textiles, furniture, Ayurveda medicinal and cosmetic products, traditional industries and rubber will also participate in the event. “We are organising road shows in New Delhi, Kolkata, Mumbai and Goa for the promotion of the event. Apart from this, we are also holding discussions with the representatives from other coun-
tries through respective embassies,” said P M Francis, Director, Industries and Commerce. Kerala Bureau for Industrial Promotion (K-BIP) will be the nodal agency for the event, which is being organised by the Directorate of Industries & Commerce in association with the Directorate of Handlooms & Textiles, the Kerala State Industrial Development Corporation (KSIDC) and the Kerala Industrial Infrastructure Development Corporation (Kinfra).
INKEL Business Park Tower II to open in Feb
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Product workshop organized by Nasscom in association with Cyberpark in Kozhikode.
‘Smart techniques merit growth’ T he high growth and profit of a business concern is solely depending on the level of the knowledge it has in the smart techniques. The small and medium enterprises can effectively use this smart techniques and can see the better prospects. This was the agenda of the Product Forum organized by Nasscom in association with Cyberpark in Kozhikode.
Company founders, chief executive officers, entrepreneurs and marketing heads of various startups and small-medium enterprises (SMEs) across the state participated in the workshop.
Startup Xperts, urged young entrepreneurs, CEOs and chief experience officers (CXO) to make timely changes to their business strategies to speed up their company’s growth.
The session titled “Winning Strategies to Expand Your Enterprise for Startups and SMEs” led by Shyam Sekar, Chief Mentor and Chief Growth Officer with
Startup Xperts is a business and growth consulting firm aimed at supporting startups and SMEs in India and abroad.
Cash incentive for customers
F
ederal Bank’s existing customers who introduce a friend or relative for opening a FedBook Selfie savings account will get a cash incentive of Rs 50 per account. The incentive will be credited to the customer’s account immediately on opening and funding of the new accounts. PASSLINE
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Fedbook Selfie is the first ever Mobile App for opening a Bank Account. It is a Do-It-Yourself (DIY) App wherein any resident Indian can open Savings Bank account taking a selfie photograph and scanning Aadhaar. The App does online verification of Aadhaar on real-time basis and the
account is opened and number generated on the spot. FedBook Selfie is the latest offering from Federal Bank, keeping in tune with the Bank’s commitment to innovate in the digital space and connect with prospective and potential customers across the country through various digital channels such as FedNet, FedMobile FedBook, ScanNPay etc.
NKEL’s Tower II project as the newly constructed state-ofthe-art tower at Business Park, Angamaly, is all set to be commissioned in February 2016. The tower, which has come up on an area of 2.5 acres, offers a builtup space of 2.5 lakh sq ft. It will facilitate the companies with office spaces, equipped with power and water supply, at competitive rates. “With the new tower, INKEL can facilitate the companies with excellent office spaces at much lower rates. We can lease the entire facility with mortgage and sublease facility on a long-term basis or on a monthly rental basis. This will benefit both the industrialists and investors,” said T Balakrishnan, INKEL Managing Director. “The ultimate plan is a fully integrated Business Park of 2.5 million sq ft,” he said adding that Tower I has been fully occupied. Tower II, an ultramodern fourstorey building at the Business Park, has 40,000 sq ft of space at each floor. Investors can take up a minimum of 10,000 sq ft or multiple spaces for rental or on long lease.
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KMA Annual Convention in January 2016
erala Management Association ( KMA) is organizing its 35th Annual National Management Convention- 2016 on January 21 & 22 at International Convention Centre, Le Meridien, Kochi. The main theme of the Convention will be ‘Nation on the Move-- Dynamics for Growth’. The two-day event will be in three sessions – Becoming a Global Digital Super Power, Enabling India to become the Manufacturing & Global Leadership
Power House and Responsible Capitalism. There will be a panel discussion on the topic ‘ Aspirations of Young India’ followed by the speeches of the great speakers. The Inaugural session will be addressed by R Gopalakrishnan – Director of TATA Sons Ltd, Chairman of TATA Autocomp System, Honeywell and Rallis India; and Dr Rishikesha T Krishnan – Director, Indian Institute of Management – Indore. The
second day of the event will be attended by P H Kurian - Principal Secretary ( IT & Industries), Government of Kerala, Shrikant P Gathoo – Director, Human Resources, Bharath Petroleum Corp Ltd; Dilip Gaur-- Deputy Managing Director & Business Head, UltraTech Cement Ltd, Dr Subramanian Swamy – Former Union Minister for Commerce, Law & Justice; Jiji Thomson--Chief Secretary , Government of Ker-
ala; Chitra Guranani Daga – CoFounder & CEO Thrillophillia . Com and the Valedictory Session will be attended by Jairam Ramesh – Congress Leader & Former Minister for Enviornment and Rural Development; Dr R Seetharaman, Group CEO, Doha Bank. There are options for partnering the Convention; and for more details, contact Phone: 0484—2317917, 9745207737. Email: info@kma.org.in
Chief Minister Ooommen Chandy & Tourism Minister Anilkumar with the awardees
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Kerala Tourism awards presented
hief Minister Ooommen Chandy gave away the Kerala State Tourism Awards for 2013-14 for show of exceptional performance in the field, in Thiruvananthapuram. The awards, which total 27 in three categories, were primarily listed by an expert panel deputed by the Tourism Department. They were ratified after a thorough scrutiny by a high-powered committee under the Tourism Secretary. Giving away the awards Oommen Chandy suggested that cash prizes also be given to all the awardees. Accepting the suggestion, Tourism Minister Anilkumar announced that cash awards will be given from the winners of 2013-2014 onwards. Currently,
the winners of tourism awards are given memento and certificate. Kerala Tourism Secretary G Kamala Vardhana Rao and Tourism Director P I Sheik Pareeth also attended the function. Intersight Tours and Travels Pvt Ltd won the best award for Inbound Tour Operator. Leela Kovalam (Raviz Group) bagged the award for the top five-star deluxe hotel, while Kumarakom Lake Resort won the best five-star hotel award. Uday Samudra Leisure Beach Hotel has been adjudged the best fourstar hotel, and Marari Beach of Alappuzha won the top three-star hotel award. Coconut Lagoon at Kumarakom is the best heritage hotel.
Somatheeram Ayurveda Beach Resort Pvt Ltd at Kovalam won the award for the best Ayurveda Centre, while Coconut Creek at Kumarakom won the Best Homestay award. The award for the Best Serviced Villa went to British County, Munnar, while the award for the Best Recognised Houseboat Operator went to Rainbow Cruise, Alappuzha. The award for the best hotel manager went to Mathew C Thomas of Vivanta By Taj, Kovalam, while Oriental School of Hotel Management in Lakkidi of Wayanad pocketed the award for the best tourism management institute. G Jyothilal, who is senior subeditor with Mathrubhumi Yathra (Kozhikode) won the award for
the best tourism reporting. Mathrubhumi senior news photographer C Biju won the best tourism photographer award, while the award for the best tourism magazine went to Green Leaf. The award for new initiatives in tourism for this year went to Waterworld Live Museum of Ernakulam Tourist Desk, while Somatheeram Ayurveda Group, Thiruvananthapuram, won the award for the best use of information technology in tourism. The best performance award in Responsible Tourism went to Our Land Backwater Resort initiative at Punnapra in Alappuzha by Chalukya Grace Tours Pvt Ltd. The Best Adventure Tourism Award went to Calypso Adventures Pvt Ltd of Kochi. Dec 15 - Jan 15, 2016
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China’s boost to South cooperation Two new Chinese funds totaling US$5.1bil to help developing countries tackle climate change and development problems could be a game changer in South-South cooperation and international relations. By Martin Khor China gave a big boost to SouthSouth cooperation when its President, Xi Jinping, made two unprecedented mega pledges totalling US$5.1bil to assist other developing countries during his visit to the United States in September. Firstly, he announced that China would set up a China South-South Climate Cooperation Fund to provide RMB20bil or $3.1bil to help developing countries tackle climate change. This announcement was made at the White House at a media conference with US President Barrack Obama. Secondly, at the United Nations Development Summit, Xi said China would set up another fund with initial spending of $2bil for South-South cooperation and to aid developing countries to implement the post-2015 Development Agenda.
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The sheer size of the pledges gives a big political weight to the Chinese contribution. President Xi’s initiatives have the feel of a “game changer” in international relations. It is significant that Xi used the framework of SouthSouth cooperation as the basis of the two funds.
tion, on the other hand, is based on solidarity and mutual benefit between developing countries as equals, and without obligations as there is no colonial history among them.
In the international system, there have been two types of development cooperation: North-South and South-South cooperation. North-South cooperation has been based on the obligation of developed countries to assist developing countries because the former have more resources and have also benefited from their former colonies as a result of colonialism.
This is the position of the developing countries and their umbrella grouping, the G77 and China. Xi himself, at a South-South roundtable he chaired at the UN, described South-South cooperation as “a great pioneering measure uniting the developing nations together for self-improvement, is featured by equality, mutual trust, mutual benefit, win-win result, solidarity and mutual assistance and can help developing nations pave a new path for development and prosperity.
Indeed, developed countries have committed to provide 0.7% of their GNP as development aid, a target that unfortunately is being met by only a handful of countries. South-South coopera-
“As the overall strength of developing nations improves, the South-South cooperation is set to play a bigger role in promoting the collective rise of developing countries.” In recent years, as
35 Western countries reduced their commitment towards aid, they tried to blur the distinction and have been pressing big developing countries like China and India to also commit to provide development aid just like them, within the framework of the OECD, the rich counties’ club. However, the developing countries have stuck to their political position: Developed countries have the responsibility to give adequate aid to poor countries and should not shift this on to other developing countries. The developing countries, however, will also help one another through the arm of South-South cooperation. This has increasingly led some of the developed countries to vaguely threaten to reduce their aid commitment unless some of the developing countries also pay their share. For them, SouthSouth cooperation is just too vague and too small. This perception has been changed by the two Chinese pledges, both interesting in themselves. It is noted by many that the $3.1bil Chinese climate aid exceeds the $3bil the US has pledged (but not yet delivered) to the Green Climate Fund (GCF) under the UN Climate Convention. Major developing countries have been pressed to contribute to the GCF but they have correctly argued that the GCF is a fund meant for developed countries to meet their historical responsibility to assist developing countries. Developing countries can choose to help one another through the avenue of South-South cooperation. China has now taken that SouthSouth route by announcing it will set up its own South-South climate fund, with the unexpectedly big size of $3.1bil, an amount larger than any developed country has pledged at the GCF. Last year, when China initially announced a similar fund, the
sum mentioned then was only $20mil. With such a large amount, the Chinese climate fund has the potential to facilitate many significant programmes on climate mitigation, adaptation and institutional building. As for the other fund announced by Xi, the initial $2bil is for South-South cooperation and for implementing the development agenda just adopted by the UN. The agenda’s centrepiece is the sustainable development goals. Xi mentioned poverty reduction, agriculture, health and education as some of the areas the fund may cover. This new fund has the potential of helping developing countries learn from one another’s development experiences and practices and make leaps in policy and action.
plement and not to replace NorthSouth cooperation. Of course, aid is not the only dimension of South-South cooperation, which is especially prominent in the areas of trade, investment, finance and the social sectors. The regional trade agreements in ASEAN (Association of South East Asian Nations), East Asia, and the sub-regions of Africa and Latin America, as well as the trade and investment links between the three South continents, have shown immense expansion in recent decades. Recently, the world’s imagination was also captured by the creation of the BRICS Bank, the Asian Infrastructure Investment Bank and the Chinese One Belt One Road
programme, which all contain elements of South-South cooperation. South-South cooperation in aid, however, is symbolically and practically of great importance as it tends to assist the more vulnerable – including poor people and countries – and fragile environments, including biodiversity and the climate undergoing crisis. Let’s hope the two new funds being set up by China will give a much-needed boost to SouthSouth cooperation and solidarity among the people. – Third World Network Features. (Martin Khor (director@southcentre.org) is executive director of the South Centre.)
Xi also said an Academy of SouthSouth Cooperation and Development will be established to facilitate studies and exchanges by developing countries on theories and practices of development suited to their respective national conditions. The next steps to implement these pledges would be to set up the institutional basis for the funds, and design their framework, aims and functions. It is a great opportunity to show whether South-South cooperation can contribute as positively as North-South aid. After all, SouthSouth cooperation is meant to comDec 15 - Jan 15, 2016
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