Chamber News December 2014

ISSUE 15 | DECEMBER 2014

coverstory

Economic Growth in MALABAR k‑wh‑mZw

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CONTENTS

Muzhuppilangad Beach Photo: Shabeer MP

COVER STORY

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ISSUE 15 | DECEMBER 2014 Editor Roshan Kynadi Editorial Board CA. C. Mohan

Economic Growth in MALABAR

Adv. P. G. Anoop Narayanan M. A. Mehaboob

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Ram Mohan Kamath M. Khalid

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K. P. Aboobacker Paul Varghese

Interactive Meeting

Ashok Putiyan

CHAMBER IN ACTION

C. K. Abdul Rauf

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J. A. Majeed M. P. M. Mubashir

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P. M. Mohamed Koya Design & Layout : V&W Westlife Advertising, Calicut Tel: 9400395022 Printing Premeela Press, Calicut For Feedback, Contributions and advertising queries, Contact: Roshan Kynadi The Malabar Chamber of Commerce 6/1165, Chamber House, Cherooty Road Calicut PIN 673032 Tel: 0495 2365282, 2365292 Email: malabarchamber@gmail.com Website: www.malabarchamber.com

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QUESTION & ANSWER

INSIGHT

41 the key to success tourism 42 kerala high time to rekindle GOVERNMENT TO WEED OUT UNNECESSARY & UNWATED RULES TO IMPROVE BUSINESS Nirmala Sitharaman

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(Hon'ble Minister of State for (IC) Commerce & Industry )

INFOLINE

simple money tips for better financial future

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Smart Cities, 'Digital India' and 'Make in India'

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to be the focus of One Globe 2015 Conference

findout the right tax saving option 'CITIZENS FIRST' NARENDRAMODI UNVEILING GRANDIOSE GOVERNANCE PLANS

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President's Message It is with great satisfaction that I write this message as the President of this Great Institution having 85 years of meaningful service to the society.The respect that you get for this Institution is very much and beyond description.

I salute the predecessors who are the source of this and I thank the members who are giving the continued support for effectively discharging the duties.

The newly elected Prime Minister Sri Narendra Modi has on his message on Gandhi Jayanthi day called for 'Swachh Bharat'.This clean India mission not only aims at correcting the country's status of poor public hygiene and rudimentary sanitation,but also promises a positive economic impact in line with 'WoW' that we had incorporated recently.The world Bank report has estimated that India is losing 6.4%

of its GDP annually because of poor access to sanitation which leads to disease and deaths.Hence the request is to support the Wealth out of Waste Foundation in any manner that suits you and to make Calicut as a modular city for the whole country.

The programme for the quarter were not much,but the support that you extended for the few particularly on the visit of Dr.K.Radhakrishnan, the Chairman of ISRO in spite of being on Sunday will be remembered. We are planning to conduct regular technical workshops for the benefit of members and the discussions are held and we expect it to start in January 2015.

I am not prolonging and before I conclude,I take this opportunity to wish all our members a Merry Christmas and a very Happy New Year 2015.

CA. C. Mohan

INDIA IS EXPECTED TO OVERTAKE CHINA IN ECONOMIC GROWTH In the year 2015-16 India is expected to overtake China in economic growth. Many of us find this difficult to believe.

IMF chief Christine Lagarde described India as a "bright spot" on cloudy global horizon, the Organisation for Economic Cooperation and Development (OECD) has said that India is expected to become the fastest-growing major economy over the next two years. In its 'Interim Economic Assessment', the OECD has forecast Indian economy will grow 7.7% in 2015 and 8% in 2016. China is pegged to grow below 7% in both these years.

China registered 7.4 per cent growth last year(2014), slowest in 24 years. A recent IMF forecast said China's growth rate would further decline to 6.8 this year and 6.3 next year, for the first time behind that of India's. Many of us find this difficult to believe. But when a person like IMF chief Christine Lagarde says something it has to be based on clear statistics.

Economic Statistics of both the countries are given below.

INDIA Statistics GDP: $2.047 trillion (nominal,Oct. 2014) $7.277 trillion (PPP,Oct. 2014), GDP rank: 10th (nominal) / 3rd (PPP), GDP growth: 7.4% (2014-15) (Official projection per 2014 Methodology), GDP per capita: $1,625 (nominal: 130th; 2014) $5,777(PPP: 127th; 2014), GDP by sector: agriculture: 13.7%, industry: 21.5%, services: 64.8% (2013), Population below poverty line: 24.6%, 300.4 million (2011, World Bank, Based on 2005 ICP PPP), 21.9% (2012, Reserve Bank of India), 21.9%(2012, United Nation's Millennium Development Goal (MGD) programme), Gini coefficient: 33.9 (2012 est.), Labour force: 487.3 million (2013 est.), Labour force by occupation: Agriculture: 49%, industry: 20%, services: 31% (2012 est.), Unemployment: 3% Urban, 2% Rural, 10.8 million Total(2013, NSSO method), Average gross salary:

Editor’s Column

$1.46 per hour ($3,036.8 yearly in 2010); GNI per capita: $1,570 yearly per person (2013); Average household income: $6,671 yearly (2011), Main industries: software, petroleum products, chemicals, pharmaceuticals, agriculture, textiles, steel, transportation equipment, machinery, cement, mining, construction, Ease-of-doing-business rank: 142nd (2014) CHINA Statistics GDP: $10.355 trillion (nominal; 2014 est.) $17.632 trillion (PPP; 2014 est.), GDP rank: 2nd (nominal) / 1st (PPP) (2014), GDP growth: 9.5% (nominal; 2013) 7.4% (real; 2014), GDP per capita: $7,647 (nominal; 82nd; 2014) $12,965 (PPP; 89th; 2014), GDP by sector: agriculture: 9.2%, industry: 42.6%, services: 48.2% (2014), Inflation (CPI): 2.0% (2014), Population belowpoverty line: 6.1% (2013), Gini coefficient: 0.469 (2014), Labour force: 787.6 million (1st; 2012), Labour force by occupation: Agriculture: 36.7%, industry: 28.7%, services: 34.6% (2008 est.), Unemployment: 4.1% (Q2 2014), Average gross salary: $669 monthly (2012), Main industries: mining and ore processing, iron, steel, aluminium, and other metals, coal; machine building; armaments; textiles and apparel; petroleum; cement; chemicals; fertilizers; consumer products, including footwear, toys, and electronics; food processing; transportation equipment, including automobiles, rail cars and locomotives, ships, and aircraft; telecommunications equipment, commercial space launch vehicles, satellites, Ease-of-doing-business rank: 96th.

Roshan Kynadi M: 98950 94940 E-mail: roshan.kynadi@gmail.com

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From Secretary’s Desk

We have started our journey to a new phase of business.

We are committed for output concentrated programs and activities to proceed further.

We are entering to a new financial year and there are very positive trends in the business including the market results, statutory actions and the business atmosphere of the country at all. Chamber is intending to arrange various capacity building programs and training and interactive sessions.

The Chamber is proposing to drive and energize the retail industry in Malabar region through a conference on retail industry named ‘Kerala Retail Summit’ in two phases.The honourable chief minister of Kerala has consented to formally launch the event on 26th April 2015 at 5PM. The veterans and experts from the industry will share their experiences and case studies in this launching event. The second phase of the event is to be conducted as two day event along with a Business to Business (B2B) exhibition in parallel in the second week of June this year. Retailers Association of India (RAI) will be the Industrial Partner of the Summit.

Historically Malabar region has roots and routes of various kind of retail business, be it lower size or higher size. These traditional businesses have major impact on the economy of the region at that point of time.

However these traditional businesses failed to update and upgrade along with the changes in the industry globally. Very few brands have grown at least to the national level from this region.

Calicut has played a significant role in the history of trade between the countries in Asia, Europe, Africa and other continentals. Its prosperity in spices and other items have attracted Arabs, Phoenicians and Chinese for more than 500 years. As the capital of the Zamorin rule in Malabar, Calicut was the first point of contact between Europe and India with the leader of Portuguese trade Vasco Da Gama setting foot here in 1498. Over the centuries Calicut’s demographics and economy have certainly dwindled and recovered as well.

In these circumstances, Malabar Chamber of Commerce, as it is being identified the unique business mentoring organisation in the region, targets to change the scenario with know-how supports and other inputs.

The event on retail industry will cover the flow and convergence from traditional to modern way of retail business. There are some differences in the in-built characteristics of traditional retail industry and modern retail industry. The traditional industry is developed through the locally dominating processes and which has to absorb the professional way of management, development and other aspects of business to position to next level of growth and to carry on the retail segment business towards modern structure. The summit will cover all the updates and issues in the retail industry and provide opportunities in modern retail.

The traditional industry and the new entrepreneurs interested to enter into the retail foray have many hurdles on modernizing the process, systems and business at all. The summit intends to address all these issues by providing assistance by way technical knowhow, software, loyalty and consultancy programs etc.

The program aims to provide business linkages, insight to visual merchandising, designing of shop, replication process and knowledge sharing etc.

Along with other objectives, the summit intends to create a cluster modal business by clubbing the units running similar type of business to achieve the benefit in sourcing materials, procurement process and market advantage of chain business with giving independence to each unit.

We assure that Chamber will be live in business mentoring activities with guidance and direction to the start-ups and established players.

Looking forward to your support for moving ahead.

Happy reading and wish you all a wonderful business year

MA Mehaboob

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COVERSTORY

Rajesh Nair Asso. Director (Mktg.)

Earnest & Young

The Malabar Entrepreneurial revolution. The MSME story especially the MSME manufacturing story is reviving Kerala on the Indian MSME map. Kerala has had tremendous progress in this sector in the last three four years and there is more to come. Interestingly, while Kochi , Trivandrum and Trichur have been on the forefront for several decades, the silent miracle is happening in the Malabar region of Kerala.

Background

North Kerala or Malabar, has a rich history of commerce, and its major trade centre Kozhikode (Calicut) was known to outside world, much before the arrival of European powers in India. Malabar came under the direct rule of the British in 1792 and the region was directly administered by the British as a district in Madras Presidency. Malabar’s was a typical feudal agrarian economy and industrial activities were limited only to crafts. Since 1852, the Basel Mission has been establishing tile and textile weaving units in Malabar and was drawing heavily on the post Industrial Revolution technologies then prevalent in Europe.During 1914-47 the Department of Industries underMadras Presidency Government started industrial promotion and the National movement also contributed significantly in having

a positive approach to industrial growth in Malabar. Interplay of the technologies demonstrated by Basel Mission, multiple activities of industrialpromotion by the British government and the National Movement and the emergence of a new class of entrepreneurs influenced the trajectory of industrial development of Malabar during 1914-1947.

North Kerala has it’s own share of commercial culture. Kallai was once an important centre for timber business, reputed world over. The spices and handloom products of Malabar region crossed continents even in ancient times. Not surprising that even Vasco Da Gama landed at Kappad in Malabar after hearing about the commercial importance of the region.

Though the economy of the region is still mainly agrarian, industrial development has had its share of success. The

Gwalior Rayons Factory at Mavoor, Steel Complex at Cheruvannur, The Kerala Soap Industries at West Hill, The Textile and Handloom units at Kannur are testimonials to industrial activities in the region.

But as in many parts of the state, industrial development ceased to kick off and expand as anticipated. The Gwalior Rayons factory was later closed due to environment issues. The Steel Complex failed to be profitable. Further the poor performance of the traditional industries such as wood, engineering, handicraft, etc and the closure of Malabar Spinning mills and Kunnathara Textiles changed the entire industrial scenario in the region.

Advantage

North Kerala has some of the best educational infrastructure in the state.

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The region has many professional colleges, NIT, IIM and CWRDM. The banking sector in the Malabar region is also sound and there are various industrial bodies such as KSSIA, Malabar Chamber of Commerce and Management Associations to promote businesses and entrepreneurship in the region.

But in spite of these advantages, the Malabar region continues to be backward in terms of economic development compared to other regions in the state. The region faces constrains such as high cost for land, non availability of adequate power, backwardness in industrial infrastructure, etc.

District wise GSDP (focus on North Kerala) Gross State Domestic Product at Factor Cost (At Current Prices) District wise investment, value and employment of enterprises registered in Kerala during 2012-13.

Important Sectors: Food Processing:

There are more than 1,280 food processing units in Kerala making it the third largest in the country in terms of licensed food processing units. 40% of the marine product processing units are located in the state. The food processing sector will thus has high potential for growth. This aided with the fact that this sector has been growing at about 7-8% per annum and is projected to grow at 10% in future. The recent boom in retail sector and the changing urban lifestyle will help the sector maintain its current growth. The traditional strong holds of the state such as - spices,

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marine products, vanilla, fruits & vegetables, cashew and coconut- have been doing well with the government being

The National Centre for Hazard Analysis Critical Control Point (HACCP) Certification in association with K-BIP

District wise GSDP (focus on North Kerala) Gross State Domestic Product at Factor Cost (At Current Prices) quite liberal to promote these industries.

The FPI in North Kerala spreads over both organized as well as unorganized sectors. Spices, pickles, Edible Oil and the marine products are the major food product export from the region. Dairy products, Fish/Meat products, Rice &wheat products, Ready to eat/ Ready to cook products and bakery products, masala powder, Coconut & other oils, Ayurvedic medicines, Fruit juices etc. are the major food items produced.

Kerala Industrial Infrastructure Development Corporation (KINFRA) has set up exclusive Food Processing Parks to suit the specific needs of the food processing sector and they offer space for food processing units in their Industrial parks also. Kakkancherry (Malappuram) food processing park has the second highest number of units. KINFRA provides 4114 sq.ft space for 132 food Processing Units with an investment of `26979 lakh.

has initiated the process of auditing and certification of 41 food processing and allied units from the State and outside the State. Out of this, NCHC has successfully audited and certified 25 food processing units and the remaining is under progress. Surveillance audits are being conducted at regular intervals.

Handloom & Textile industries:

Handloom & Textile sector in Kerala have been the outcome of a strong Co-operative sector. Cottage industries are the backbone of this sector and provide employment to about 35 million people, which is second only to the Coir sector in terms of providing jobs.

Though this industry flourishes in Kannur, there are sizable number of units in Kozhikode and Palakkad. The handloom industry has been a major beneficiary of the Integrated Cluster Development scheme (IHCD) which aims at creating cohesive, self managed socio economic units.

The famous "Malabar loom"

District wise per capita income at Constant (2004-05) Prices originated from this region. The other famous of this place is ,in olden days famous "Calico cloth" came from Kozhikode. 'Common Wealth Trust' set up by the British is situated in Kozhikode. The main products are primarily meant for export. Furnishing , Jacquard products, Bedsheets, Table mats, Coarser varieties etc. The products from Kozhikode have an excellent value in domestic market also. The main centres are kozhikode, Quilandi, Vatakara, Chombal, Maniyur etc. There are 41 societies (Most of them are industrial societies).

Kannur is called 'the Manchester of Kerala'. The famous Cannanore sports shirting, varieties like Crepe are credited to this district. The weavers are mainly working in industrial societies.

The main products are shirting, Madeups, jackquard, Furnishing,Turkish towels, Sateen sheets Crepe such export oriented, and LungiesEarezhathorthu etc. for domestic purpose. The CannanoreMundu is a popular variety of textile. The main centres are Cannanore,

Azhicode, Chirakkal, Kanhirode, Panoor, Kuthuparambu, Kalyassery. There are 73 societies established in this district and with about 50 exporters in private sector together have,13667 weavers working in these units.

Footwear:

One of the major beneficiaries of the Cluster development program initiated for MSME promotion, have been the Footwear industries in the state.

The growing number of footwear units in Kozhikode is testimonial to the emergence of this industry. Though Kerala has been a traditional stronghold of rubber industry, the footwear sector has experimented with alternate products such as PUC, PVC and Plastic. The low cost footwear manufactured from Kerala have been an instant hit throughout the country and abroad. If better technology and marketing strategies are developed, this industry can very well over take leading producers such as Thailand, Brazil and Indonesia.

Furniture:

The Malabar Furniture Consortium having a membership of 400-odd furniture makers in the region has been in forefront in promoting the sector.

Though majority of the furniture manufacturers are in the unorganised sector, efforts have been made to bring in technology upgrades and resources to face competition from major players in the furniture market.

The cluster of furniture makers in the region, Malabar Furniture Consortium Private Ltd., was formed in 2008 after securing the State government’s registration. The 50,000 sq. ft. factory building is being developed in its own land at Ammanappara near Pariyaram.

Development of new designs alone would equip the small scale furniture sector to survive in the face of competition from big players.

Light Engineering:

North Kerala is home to many MSME light engineering industries. The availability of a highly skilled workforce,

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suitable infrastructure and accessibility to a lucrative domestic market has assisted many light engineering manufacturers to thrive in the state. Die casting, Automobile spares and coil springs, precision equipments, pollution control and energy saving devices, machine tool accessories, high vacuum pumps, etc are some of the focus areas of these MSME players. The industrial estates in Palakkad have many of these successful units.

Real Estate:

The realty sector in Malabar has witnessed dramatic changes in the last few

the state IT mission is planning. Around 60% of the land acquisition has been completed for the Knowledge Park of Kinfra. Some other projects are awaiting government clearance. The next few years are expected to see a major boom in the city's industrial infrastructure.

IT/ ITES

While the concentration of IT / ITES, the fastest growing sector in Kerala is focused in Kochi and Trivandrum , there is a new wave of small IT companies coming up ion Kozhikode. With a few marquee players setting up their development units , it can really offer a new

Industrial Development Corporation Ltd (KSIDC) for developing and managing Industrial Growth Centres in various locations in the state. Accordingly KSIDC has acquired /purchased land at four industrially backward locations in the following districts: 1.Kannur - Valiyavelicham (Kuthupramba) 2.Kozhikode - Kinalur (Balusserry) 3.Malappuram - Panakkad (Malappuram) 4.Alappuzha - Pallippuram (Cherthala) The Industrial Growth Centres at the above locations are under various stages of development and basic infrastructural facilities such as road, water, power, telecommunication etc are already put in place. Steps are being taken to improve the facilities further.Industrial plots are available at these Growth Centres and entrepreneurs can get the same for setting up industrial units, on long lease for a period of ninety years.

The units coming up in the IGC are supported by Single Window Clearance Mechanism of State Govt.

Kozhikode:

years. Though the recession has cast its shadow over the sector, districts like Kozhikode has seen phinominal growth in real estate activities.

The real estate boom in Kozhikode was driven by both non-resident Keralites working in the West Asian countries and by the local population. The share of the non-resident Keralites has remained around 60-65%. New projects are being announced and there is still a healthy demand. The land acquisition work has started for the IT park that

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opportunity. The growth of the sector in Northern Kerala will also be important for allied industries like hospitality and real estate. We seeing some clear steps in that direction in last two years and also with the interest of organisations like CII and NASSCOM in Kozhikode.

Industrial growth initiatives

As per scheme announced by the Central Government, Government of Kerala has entrusted Kerala State

Kozhikode is in cusp of an era which offers tremendous opportunity for the entire Malabar region to prosper. Beypore Port development, Revival of Malabar Spinning Mill, SAIL-Steel complex Joint Venture, Knowledge Park of KINFRA, Expansion of Kozhikode International Airport, Cyber Park at Nellikode, Cochin Industrial Rail Corridor to Mangalore touching Kozhikode, Coconut Park of KSIDC at Kuttiady, The Techno Industrial Park (NEO Space) of KINFRA at Kakkancherry, NIRDESH by the Ministry of Defence, GoI are some of the mega projects which can trigger the economic development of the region. The IGC Kozhikode, spread over 308 acres of

COVERSTORY

land - the largest Industrial park in the District has all the basic infrastructure facilities and excellent road connectivity. A footwear park by KSIDC has started functioning from the IGC and works are underway for a Food Processing Park in 50 acres of Land.

Kannur:

Kannur is blessed with natural beaches, hill stations, rivers, backwaters, historical monuments and religious centres. Kannur is well known for its handlooms cloths and is rightly called "The land of Looms and Lores".

Kannur district has the tradition & faith in co-operative movement since 1912 and Dinesh Beedi, Rubco are two success models from Kannur. The Western India Plywoods, one of the biggest wood based industrial complexes in South East Asia is located in Kannur. IGC-Kannur is located at Valiyavelicham, about 6 km from the nearest town, Koothuparamba. The IGC, Spreads over 250 acres of fenced land, is on an expansion mode with acquisition of additional 370 acres of contiguous land. The IGC is well connected to the State highway (6 km)

and has got close proximity to Mysore, Mangalore and Bangalore.

The Proposed Kannur Airport is only within a distance of 20 kms from the IGC. The proposed Gas pipeline from the LNG terminal at Kochi connecting Mangalore will open up tremendous opportunities for Gas based power and other projects. A new gas based thermal power plant with 1200 MW capacity at Cheemeni, in the nearby Kasaragod district is in an advanced stages of planning, ensuring adequate power availability. The Azhikkal Port at Kannur and Ezhimala Naval Academy are projects that put Kannur in the global marine map.

In Kerala, we have traditionally not been forthcoming to options of selfemployment or taking the plunge to start our own businesses. This also stems from the societal philosophy which places a very high premium on entrepreneurial failure. A failed entrepreneur is a pariah of sorts. There is a vicarious pleasure we take to admonish them calling them ‘greedy and avaricious’ , as if they did something

fundamentally wrong by seeking career avenues in an entrepreneurial venture and not in the safe confines of a government cubicle , a bean counter at a bank or the career ladder of the PSU. But the youth of today think differently from the generations before.

Social media and exponentially efficient connectivity, aligns their views to the global youth. They are restless, keen to take risks and also rewrite their own careers as often as they deem fit. They are independent in their thinking and do not always have the pressure from parents to follow the trodden path. This is increasing true for the parents of this generation. They have the conviction to trust their children to do the right thing and the courage to encourage them to follow their dreams.

We are on this enchanting trip of transforming Kerala – Malabar region will play a pinoneering role in this. We will change the state for the better – a step at a time!

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After a prolonged wait, the Cabinet approved the Constitutional Amendment Bill on the Goods and Service Tax (GST), paving the way for the legislation to be introduced in the current winter session of Parliament, which will end on December23.

KEY HIGLIGHTS First issue:

Petroleum was one of the contentious issues between the Centre and the states and had delayed the Bill States wanted petroleum products excluded from GST as they earn over 50 per cent of their revenues from this head. However, the Centre wanted to keep it with GST so that the chain of providing reimbursement for input taxes is not broken.

GST

BILL READY TO BE TABLED AFTER CABINET APPROVAL

The other contentious issue was compensation to States for revenue loss after GST is introduced.

Wary after the Centre's unkept promises on compensation for a cut in the Central Sales Tax (CST) rate, the states wanted to include GST compensation within the bill. They also asked the Centre to promise that GST compensation would be provided for five years.

Decision:

tax system.

Decision: • Entry tax levied by local bodies to be subsumed within GST Once the constitutional amendments are passed by both Houses of Parliament by two-third majority, half the state legilatures will have to ratify them.

Third Issue: • The Centre and the states After that the actual GST Bill will be were not on the same page, was tabled to be discussed and passed in Decision: • Petroleum will be included in the entry tax imposed by local bod- both Houses of Parliament.State legisGST but Centre and States will be allowed ies. States such as Punjab wanted it latures will also have to table and pass to impose their current taxes on it. to be kept out of GST, but the Centre their own state GST Bills. was keen subsuming it within the new Source: Business Standard Second Issue: • The Bill, it is learnt, contains the compensation for five years, but on a tapering basis. Centre will provide full compensation for three years and then progressively reduce it for the next two years.

A few features of the proposed Goods and Services Tax Bill 1. The Goods and Services Tax Bill (GST) will simplify the cumbersome indirect taxation by cutting down the large number of taxes imposed by Central and State Governments such as entry tax, service tax, CST etc.

2. GST would result in bringing down the evasion of tax and burden on the consumers as the levy of tax will be only at the point of sale and only on the value addition.

3. Currently, petroleum products are not included in the GST regime and thus, taxation of the petroleum products lies with the Central Government.

4. Alcohol will be exempt from GST and States will be free to decide to levy their own charges/taxes.

5. The Central Government will compensate the losses of the State for the first five years in a manner of 100% for first three years, 75% forfourth year and 50%forthefifth year.

6. The implementation of GST requires at least half of the States in favour besides Parliament.

7. The Goods and Services Tax is proposed to be made applicable from April 2016 after the delay of nearly 7 years.

8. Experts and Economists favour the Goods and Services Tax as it will boost the GDP by 2 percentage.

9. The Indirect tax collection may also go up to 12% of GDP from current collection of 5%.

Source: simpleinterest.in

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GOVERNMENT TO WEED OUT UNNECESSARY & UNWATED RULES TO IMPROVE BUSINESS Nirmala Sitharaman

(Hon'ble Minister of State for (IC) Commerce & Industry )

The rules and regulations, some enacted during the British era, were becoming stumbling blocks for doing business and the government was working on removing unnecessary rules as it wanted to simplify the procedures.

As part of its efforts to improve ease of doing business in the country, Union Commerce and Industry Minister Nirmala Sitharaman said that the government was in the process of weeding out unnecessary and unwanted rules and regulations which prove to be impediments.

The rules and regulations, some enacted during the British era, were becoming stumbling blocks for doing business and the government was working on removing unnecessary rules as it wanted to simplify the procedures, she told reporters. "We actually wanted to put an end to the control mechanism or licence quota Raj and totally remove the residual impact of such Raj, as done in the Defencesector," she said. There were hundreds of such rules and some 60 to 70 decade-old archaic laws, which had to be removed, she said.

The cabinet had worked out a procedure in the medical and diagnostic equipment sector. The minister was on a visit to the hosiery town of Tirupur to highlight Prime Minister Narendra Modi's ambitious project "Make in India" and to know the problems and issues being faced in the manufacturing and textile sector, including knitwear, hosiery, spinning and autoloom.

Replying to a question, she said major part of works had completed with regard to Foreign Trade Policy while her ministry had reviewed Free Trade Pacts, particularly with European Union, and Special Economic Zones, the two issues raised by the industrialists. She, however, added that no specific time frame could be given on FTP, which has financial commitments among other things.

She also said Modi and Finance Minister Arun Jaitley had convened a meeting of state chief secretaries and secretaries of various departments to elicit their opinions and ascertain the problems faced by the states in implementing the "Make in India" project.

Courtesy : Business

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'CITIZENS FIRST' NARENDRAMODI UNVEILING

GRANDIOSE GOVERNANCE PLANS Prime Minister Narendra Modi said the government would try to provide a clutch of citizens' services electronically as part of the government's efforts to put in place "an effective, accountable and transparent" administration.

Harping again on his theme of'good governance', Modi said his team would make governance simple and effective in a phased manner without putting a huge burden on the people.

He outlined the plan as his administration observed Christmas as 'good governance day' - not in any way to celebrate a festival perceived as Christian and therefore alien; but to mark the birthday of Bharatiya Janata Party veteran and widely respected former prime minister Atal Bihari Vajpayee.

Incidentally, observing Vajpayee's birthday on Christmas follows the Gregorian calendar, which is a purely Christian creation, and not under the Hindu calendar, where dates are very different.

Vajpayee was conferred with India's highest civilian award, the Bharat Ratna, on his 90th birthday.

The prime minister listed the digital India initiative, doing away with over 175 outdated laws and self-certification

of documents as key initiatives of his government in the last six onths to bring his administration "closer to people."

Modi, who visited his constituency of Varanasi on Thursday, also said Indian Railways would not be privatised, but private investment would be used to mod-ernise and grow the organisation.

Commissioning the expansion of railway diesel locomotive works in Varanasi, he said the first charge on the government's resources would be that of the people, with a major chunk going towards providing education and healthcare.

He asked railway employees to make India self-reliant in modern services and manufacturing, like the farmers have made the country self-sufficient in grain production.

Making a strong pitch for producing good teachers in large numbers, Modi said the whole world is looking to India with great expectations, "but we are not ready". He advocated the introduction of a five-year training course after schooling those aspiring to a career in teaching.

He said the country should aim to export top-class teachers. Launching a mission for teachers trai-ning in the

name of Bharat Ratna awardee Madan Mohan Malaviya, Modi said an environment needs to be created where children aspire to become of growth and the backbone of the economy. teachers after 10th or 12th and can be trained in this area. Modi said as part of the good governance drive, his "There is a dearth of good teachers. Even if you ask rich administration has adopted a 'citizenfirst' approach as the people who have crores of rupees, what they want, they will say guiding principle, and rolled out a massive digital India plan they need good teachers. Even a driver says he needs good with an investment of over Rs 1,75,000 crore to take governance teachers," he said. to people's doorstep. Apart from the move to do away with over Modi announced the setting up four railway universities to 175 outdated laws, selfcertification of documents has been create a pool of dedicated and trained railway personnel. He permitted to replace affidavits and attestation by officials, He asked railway officers to turn the organisation into an engine. PM said.

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For many, starting a business is the professional dream of a lifetime. While thousands of businesses are launched every day, history shows a pretty high failure rate. Yet, despite the odds, the vast majority of business owners would rather risk potential failure than never take the leap, based on what I heard on my virtual small business listening "tour" across the country.

As part of this tour, I spoke with veteran serial entrepreneurs as well as those in the early stages of launching a business, from a cross-section of industries and geographies and driven by different motivations. From those conversations, I distilled the following five considerations to help you position your new business on firmer financial footing.

Bolster your financial health

You may have the personal wherewithal to start a business, but can you afford to make the transition given

Considerations to be Made Before Starting a Business lean months or the periods of uncertain cash flow. If you find that you are approaching your "bottom-line" number, this is where discipline must override passion. Step back, take a hard look at your situation, and see what's working and what's not.

Get over the "fear factor

" Change is frightening for most of us. It's only natural and appropriate to worry about the possibility of failure, jeopardizing your financial security, or reneging on your obligations to others.

But sometimes we get so caught up in what we stand to lose that we forget to consider all that we stand to gain.

And, we forget that we are driving the

If you start recording and keeping receipts of deductible expenses from the beginning, it can help avoid major problems in the future, such as liability for additional taxes or penalties.

And, don't stop talking to a financial professional throughout the process of building your new business as it can help you feel more confident that you are managing your personal finances wisely while you begin your business.

Work on your business, not just in your business

When you are surrounded by your own business day in and day out, it's important to take a step back and make sure you are handling all aspects of the business. Sometimes entrepreneurs are so focused on their product or service, that they may overlook their business' finances. But it's important to handle your business finances with intent.

That is, handling your finances in an organized - not haphazard - way.

Remember that not all money is created equal

your level of debt as well as savings?

Set a threshold for the minimum amount of money in the bank that you are not willing to go below. This number will be different for each person, but the important thing to take away is that you think about what this number means to you and save it in advance.

It's important to build up and maintain this "healthy" reserve or cushion to allow you to manage the

timetable and parameters for making this change.

Keep your personal and business wallets separate

The old adage that business and pleasure don't mix also holds true when it comes to your business' finances. Set up separate accounts for your business, and consult with a knowledgeable tax professional to understand what costs are deductible.

You need to know when and how to raise capital, (both equity and debt), and how to wisely put your money to work on things that adds value. You should be spending as much time researching what investors and lenders want as you spend understanding what your customers want. Understand the approach that angel investors take versus mezzanine debt investors. The more you know, the better positioned you will be to tap the capital markets and make the appropriate asks. Money is a tool. Make sure you understand how to use it.

Courtesy: Breakthrough for Managers

19

"Ask nothing, Want nothing....

Give because you have the power to give..." Swami Vivekananda Today, the most talked about concept and one that is bound to spread across the country and the world is CSR -Corporate Social Responsibility.

CSR is not Charity . Nor is it Philanthropy.

But CSR is intended to make a difference in the life of others. An opportunity for companies to look beyond their aggressive push for turnover, targets and profits and consider the society, community and environment around them.

An approach to integrate social and environmental concerns in their business operations and in their interactions with their stakeholders. One definition states that CSR the way through which a company achieves a balance of economic, environmental and social imperatives - alternatively called the TBL approach - "Triple-BottomLine-Approach". The concept of CSR goes beyond brand building and enhancing the reputation of the company.

The new Companies Act has brought in a clause that makes CSR mandatory for companies with a net worth of Rs 500 crore, or a turnover of Rs 1,000 crore, or net profit of Rs 5 crore. Such companies need to spend at least 2 per cent of their average net profit for the immediately preceding three financial years anCSR activi¬ties.

While these are the expectations from the Government, one really does not have to wait for a law or a mandatory rule to engage on CSR activities. Size or profit

really does not matter if someone would like to exercise their social responsibil¬ity and make a contribution to the protection of the environment or make a difference in the life of someone else. It is ultimately your inner conscience and decision to spend whatever you can, accord¬ingly to your ability to spend. Every act, big or small, complements and snowballs into fulfilling a larger purpose. The needs are indeed many.

But, one crucial factor of CSR is to ensure that it does impact the beneficiary directly.

However, the biggest concern most companies big or small have is "I would like my company to involve in CSR . But what do

aPromotion of education; aPromoting gender equality and empowering women; aReducing child mortality and improving maternal health; aCombating human immuno-deficiency virus, acquired immune deficiency syndrome, malaria and other diseases; Ensuring environmental sustainability; Employment enhancing vocational skills; Social business projects; Contribution to the Prime Minister's National Relief Fund or any other fund set up by the Central Government or the State Governments for socioeconomic development and relief and funds for the welfare of the Scheduled Castes, the Scheduled Tribes, other backward classes, minorities and women; and ? Such other matters as may be preR. Balachandran, CMD, SB Global Kochi scribed...

I spend it on. How do I choose a With the launch of the Swach project? Who will execute it " and Bharat programme on a massive so on.. scale, there has been a nudging A recent-survey by Mercer indi- by the Government, particularly cates that of the activities done to the Public Sector undertakings by various companies, Education to allot a good portion of the CSR by and large tops the chart with funds for this Mission to increase 81 per cent adopting it as their the availability of toilets and mandate. This is followed by 64 encour­ aging use of them. % on community-based develop- Undoubtedly, there is an urgent mental activities and 61 per cent need for promot­ ing health and adopting environmental sustain- hygiene by using formal toilets. It abil-ity within their own compa- is indeed shocking that there are nies and immediate vicinity of schools with hardly any formal their factory or in a chosen loca- toilet facilities and even if there tion," says the Mercer survey. are any, the numbers are far least The Act indicates that these than what is the prescribed ratioareas are permissible activities students: toilets. Further, female under CSR. toilets are a must. In fact, many aEradicating extreme hunger schools do not provide sepa­ rate and poverty; toilets for the teachers either.

Give Beacause You Have The Power to Give

However, an highly critical area that a company or an individual ,wanting to support CSR can take up is in the area of Skill Development.

The country is heading towards a possible crisis with the increasingly large population of youth . Econo­ mists call it the Demographic Dividend - the gains a country can derive from a youthful population of over the next decade or more. In contrast, most of the developed countries in the world are turning out to be ageing populations with low birth rates and high life expec­ tancy. India is already home to the world's largest population of 10-24 year oldsalmost .356 million. It is projected that by 2025, the aver­ age age of India will be around 29 years. What scares one more is that ONE MILLION plus youth will turn 18 years of age, every month, for the next two decades!

Hence, the biggest worry for India today is whether this so called glob­ al advantage will in turn become a DEMOGRAPHIC DISASTER ?!!.

This is one of the reasons that Prime Minister Modi, early in his tenure, started talking of the need for a massive skill development to transform the youth power into productive members of the coun­try. How can this youth power be harnessed for the good of the country? The PM and his team realise that irrespective of all the bonds of friendship being built with countries across the world and exhorting them to come to India , the key factor would be the availability of skilled people. As a slogan , "Make In India , Sell to the World" sounds stimulating. Yet, in real terms it can be achieved only if we have the manpower who are qualified, competent, skilled and employable. As a nation, India is in a hurry to kick start its economy which has

22

been floundering for the last five years. The expectations from the industry and the people are very high considering the mas­sive mandate they have given the PM and his party in the elections.

India has set itself a target of Skilling close to 500 million by 2022. A massive challenge considering the skill development capacity available in the country. There is also the issue of mindset - an unnecessary stigma attached to vocational cours­ es . If comparisons are needed- a country like South Korea has a formally skilled workforce of close to 96% , Japan 80% , Germany 65% and India just over 2%. So the magnitude of the task to skill 500 million is a mega challenge .

The task of Skilling so many has been entrusted to organisations like NSDC and over 23 ministries. The Government has also allotted large sums as part of their social com­ mitment to uplift and empower the EWS segments, the BPL, the SC/ ST, Urban poor/ Rural poor and so on.

However, there are still a large number of people who are outside these schemes and do not obtain the benefit of government funding.

It must also be realised that it is not possible for the Government to do everything. This is where the pri­ vate sector and individuals can step forward to complement the Skilling mission.

Every sector complains of the lack of quality manpower. Qualifica­tions alone do not make one skilled or employable. Today, the industries compromise and hire from the available pool and spend time and money on training them.

The concept of Pre- Hire Training needs to be encouraged and one could budget amounts for Skilling youth for employment according to

their capacity to do so. Any support to the Skilling mission adds to the numbers who are better equipped to perform better on the job it results in creating a pool of trained and skilled manpower who could be picked up by the industry as required.

One angle that could be ex­plored by a company to identify a panchayat or a specific locality, identify and muster all unemployed youth, conduct an assessment and aptitude analysis and customise a skill development programme with a standardised and approved cur­riculum and ensure their employability.

This becomes an inclusive pro­ gramme for factories or companies in various locations and is one of the best ways to ensure economic empowerment. As it says in the Bible , "Give a man a loaf of bread, You give him a meal. Teach him how to make bread , You give him a living."

It is now time for the industry and business owners to Walk the Talk.

Even if one only commits to Skilling only a batch of 25 in a year, it has a multiplier effect if 100 companies or individuals join the mission to skill the emerging youth of India.

As a company involved in Skilling and Upskilling in Kerala for the last nine years , we have been feeling the pulse of the youth across all levels and adapting the training to their needs and supporting them in gaining employment.

It becomes a genuine contribution to building the nation and posi¬tioning India as the number one economy in the world by 2050, as predicted by leading think - tanks • of the world. Hence, CSR is the ideal vehicle to launch your individual commit¬ments to the society.

(Author is CMD, SB Global, Kochi) Courtesy : Pasaline.

16|11|2014

CHAMBER IN ACTION

Interactive Meeting with Dr. K. Radhakrishnan, Chairman, ISRO The program began with silent prayer. CA C Mohan, President chaired the meeting.

He welcomed the gathering, present at the auditorium. He said that Dr. K. Radhakrishnan is one of the greatest Scientists India has ever produced. Kerala could take legitimate pride since Dr. Radhakrishnan is native of Kerala.

CA T. Gopakumar introduced all the three Scientists to the audience.

Dr. K. Radhakrishnan, Chairman, ISRO said that theMangalyan Mission is the wonder of the world and the pride of India as well as Asia. ISRO family is the friend of the people.

India is at the 5th place in Mars expeditions and we help the people and solve the problems of Indian citizens. We intend to develop the technology for helping the people of India.

We learned from our mistakes and the mistakes committed by others. Dr. Vikram Sarabhai started the process in 1960.

The satellites can clearly monitor and predict about the natural calamities like the cyclone.

The Mangalyan Mission of India was completed at a cost of Rs.450 crores, the least in the global scenario, i.e. an expenditure of Rs.4.00 only per citizen of India. USA took 22 years for its Mars Mission. India took hardly 11 years.

The whole of India was behind us. The younger generation had sent many letters to me. This satellite was designed that it could take its own decision. This type of the smart satellite was a novel and premier one globally. Other nations are trying to copy our technology. There

are many complex gadgets in the satellite. If any of the connections are loose, the mission may fail. 40 satellites of different countries has been launched using our PSLV. In 2015, we have entered into a contract to launch 4 satellites made by the United Kingdom. Our PSLV has fetched international fame. All satellites that are launched will be influenced by all the planets.

Mr. Alok Kumar Saboo, the Immediate Past President presented a memento to Dr. K. Radhakrishnan, Chairman, ISRO.

Sri. P. Kunhikrishnan, Project Director of PSLV said that such a reception is commendable. The Mangalyan was launched by the PSLV C25. The first phase was the launching of the satellite. The second phase is to tide over the resistance and other difficulties in the space and then only the satellite could enter the Orbit of Mars and then the satellite could land on Mars. We utilized purely indigenously developed satellite, launch pad and technical know how, using lesser time and lesser expenditure compared in the global scenario.

Sri. Arunan, Project Director of Mars Orbitor Mission said that he is visiting Calicut for the first time. The people of India showed active interest in the Mangalyaan Mission. We had to take up the challenge in the shortest time.

In fact we had been given only 15 days and we had to work very hard. High velocity had to attributed for the successful completion. Other Nations are looking at us with jealousy and are trying to find out the details. The satellite should suit to the weather conditions of Mars and at the same time has to tide over the difficulties that will be encountered in the space.

All these were challenging.

The Indian citizens gave us their whole hearted support, especially the younger generation.

Adv. P.G. Anoop Narayanan, former President read out the message of Sri. M.K. Raghavan M.P. In the open forum, Adv. Damodara Menon, Mr. Mahesh, Mr. M.P. Babu, Mr. K.P. Aboobacker and Mr. Akhil participated actively.

Sri. R.N. Saboo, former President presented a memento to Mr. Kunhikrishnan, Project Director of PSLV on behalf of Malabar Chamber of Commerce.

Sri. K.V. Kunhammed, former President presented a memento to Mr. S. Arunan, Project Director of Mars Orbiter Mission on behalf of our Chamber.

Sri. M.A. Mehaboob, Hon. Secretary proposed the vote of thanks.

Hon. Secretary

25

11|10|2014

CHAMBER IN ACTION

Installation of new President and Director Board Members

The program began with prayer recited by Mrs. Nisha Shyam Sunder.

Sri. A. Shyam Sunder, Hon. Secretary welcomed the dignitaries and Chamber members who assembled for the function.

Sri. Alok Kumar Saboo, President chaired the meeting.

He said that he was lucky to be the President of Malabar Chamber of Commerce having 85 years legend to its credit.

India had became one among the members of the World who could develop its own cryogenic technique and rocket launching technique and was able to send Mangalyan, indigenously developed rocket and satellite successfully to Mars for unearthing the secrets.

Incidentally Kailash Satyarthi of India, Indian Chindren’s rights advocate and Activist shared the Noble Prize for Peace jointly with Malala Yousufzai of Pakisthan.

Kerala has got immense potential and a strong leadership, clear cut policy to support the industry is necessary and we look upon at you sir as our Hon’ble Minister for the required support. Malabar Chamber is a continuous body. Our M.P. Sri. M.K. Raghavan was closely associating with our Chamber in all matters. I am thankful to all of you for extending me strong support. I request the incoming team to take up WoW ahead

26

along with CREDAI, KPMA and others. If one knows that he can make money out of the waste produced, all will be interested and will lead to a clean Kerala.

The new Board of Directors of Malabar Chamber of Commerce for the year 2014-2016 were introduced by the Master of Ceremony to the audience.

Vice President Sri. K.V. Haseeb Ahamed submitted a memorandum to the Hon’ble Minister for Industry and IT. Sri. P.K. Kunhalikutty, Hon’ble Minister for Industry and IT, chief guest of the day said that when one team of office bearers go out, another team will come in. All the office bearers of Malabar Chamber are equally good and Malabar Chamber had done very many things hitherto and are continuing the same. The exemplary activities of Malabar Chamber of Commerce will definitely inspire all the business men and all will support Chamber. This inspiration has to be passed on to the Ministry as well. Growth of Kerala is on a low note, still there is growth. A re-estimation of the growth of Malabar is necessary. An investors meet will be held shortly. The 400 acres of developed land at Mavoor is lying idle. Some development has to come there and we hope that it will be realized soon. I will study each and every point in the memorandum and will try to do what ever possible. New ideas has to come from the

business world. Chamber should co-operative with the Government in developmental matters.

Sri. P.N. Devadasan IRS, Chief Commissioner of Income Tax Calicut was Guest of Honour. He congratulated the new President and Director Board Members of Chamber. He said that our country is in an exciting stage. We should pressurize the Government to develop 100 smart cities. It is estimated that by 2022, waste produced will be fully disposed off. The ban on entry of vehicles in the Calicut-Mysore road during night time should be taken up by Chamber. Alongwith the development of Roads, fly overs may also be built at busy places like Malaparamba. Very many things which are necessary are not being taken up or are procrastinated. Chamber should take up such matters. The Bypass of Calicut started 25 years ago and I don’t think it will be completed within another twenty five years. Now the staff of all Government offices report at the office timely. Since there are number of flyovers in Mumbai and though it is a very busy city, there are no traffic blocks.

The meeting of all political parties have decided to restrict National Highways of Kerala to 30mtrs. width. This will be

harmful to Kerala and in the years to come, the traffic will become difficult.

Sri. R.N. Saboo, Past President, Adv. P.G. Anoop Narayanan, Past President, Sri. P.V. Gangadharan, Past President, CA T.N. Sujith Kumar, Chairman, ICAI, Calicut and Mr. C. Janardhanan, KARMA felicitated the incoming team of Board of Directors of our Chamber.

CA C Mohan the new President gave his acceptance speech. The 85 years old Malabar Chamber of Commerce has done commendable job hitherto. He added that his team of Board of Directors will do their best in the term 2014-2016.

He said that he is very proud to stand before this august gathering as the first chartered Accountant President of Malabar Chamber.

Sri. M.A. Mehaboob, Hon. Secretary proposed the vote of thanks.

With National Anthem, the program concluded.

M.A. Mehaboob Hon. Secretary

27

20þ12þ2014þ\‑v \S¶

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t‑a‑mUt‑däd‑mb t‑U‑m. kP‑n t‑K‑m]‑n\‑mY‑v hfs‑c {‑][‑m\s‑¸« h‑njb¯‑ne‑mW‑v C¶s‑¯ k‑wh‑mZ‑w k‑wLS‑n¸‑n¨‑n«‑pÅX‑v. ]‑pX‑nb kÀ¡‑mÀ h¶X‑n\‑pt‑ij‑w Ig‑nª 6 a‑mka‑mb‑n«‑v Bi‑mh‑ la‑mb a‑mä§Ä I‑mW‑pIb‑pï‑mb‑n F¶‑p ]dª‑p.

H‑mb‑n h‑ne X‑mg‑v¶X‑v i‑qt‑`‑mXÀ¡a‑mbX‑mW‑v.

2007 hs‑c P‑n.U‑n.]‑n. 10% hfÀ¨ Dï‑mb‑nc‑p¶‑p.

PhlÀe‑m s‑\{‑l‑p a‑nI‑vkU‑v Ct‑¡‑mWa‑nb‑mW‑v ]‑n¶‑oS‑v AX‑v 4% Bb‑n¡‑pdª‑p. ]‑pX‑nb k‑z‑oIc‑n¨X‑v‑, k‑zI‑mc‑y‑, kÀ¡‑mÀ t‑aJeIs‑f kÀ¡‑mÀ c‑q]‑oI‑rXa‑mbt‑X‑ms‑S H‑mlc‑nh‑ne I‑q«‑nb‑nW¡‑ns‑¡‑mï‑v k½‑n{‑ia‑mb Hc‑p hÀ²‑n¡‑pIb‑pï‑mb‑n. Ig‑nªhÀjt‑¯¡‑mÄ hfÀ¨ k‑m¼¯‑nI\ba‑mW‑v k‑z‑oIc‑n¨X‑v. dj‑y \ I‑qS‑p‑w F¶‑mW‑v h‑nZK‑v[‑m`‑n{‑]‑mb‑w. ]t‑£ kÀ¡‑mÀ S¸‑ne‑m¡‑nb‑nc‑p¶Xc¯‑ne‑pÅ ]©hÕc]²X‑nIÄ {‑]X‑o£‑n¨t‑]‑ms‑e k‑zI‑mc‑ya‑pXÂa‑pS¡‑v Dï‑mb‑n«‑nÃ. C´‑y k‑z‑oIc‑n¨X‑pI‑mcW‑w C´‑y¡‑v K‑pWI‑ ]e‑ni\‑nc¡‑v I‑qS‑p‑w F¶‑mW‑v [\I‑mc‑ya{‑´‑n ca‑mb h‑nIk\a‑mW‑pï‑mbX‑v. 1991 þe‑mW‑v \‑m‑w {‑]k‑vX‑mh‑n¨X‑v. `‑q] k½‑n{‑ik‑m¼¯‑nI\ c‑nj‑vIcW\‑nba‑w‑, Nc¡‑v b¯‑nÂ\‑n¶‑p‑w k‑ma‑ql‑y k‑m¼¯‑nI k‑pc£‑nXX‑z‑w t‑kh\\‑nI‑pX‑n‑, s‑X‑mg‑n h‑yX‑nNe‑n¨‑v DZ‑mc‑oIcW\ \‑nba§f‑ps‑S ]c‑nj‑vIcW‑w w k‑z‑oIc‑n¨X‑v.

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F¶‑p ]db‑ph‑m³ AU‑z. ]‑n.F‑w. k‑pt‑cj‑v _‑m¦‑pIf‑ps‑S _‑m_‑p t‑Zik‑m¡cW‑w ]ä‑pIb‑pÅ‑p. h‑yhk‑mb‑, I‑mÀj‑oI s‑I.]‑n.k‑n.k‑n. P\d K‑pWIca‑mb‑n. 6 hÀj‑w k‑n{‑I«d‑n `c‑n¨ h‑mP‑vt‑]‑mb‑nb‑ps‑S t‑aJeIf‑n t‑hï{‑X a‑mä‑w C\‑nb‑p‑w _‑n.s‑P.]‑n. kÀ¡‑md‑p‑w X‑mX‑z‑nIa‑mb Hc‑p DZ‑mc‑oIcW‑w. X‑pSÀ¶‑p. h¶‑n«‑nÃ. I‑mÀj‑oI‑, h‑yhk‑mb hfÀ¨ k‑wh‑mZ¯‑n\‑v {‑]‑m]‑vX\Ã.

P\§f‑ps‑S {‑Ibt‑ij‑n þ t‑d‑mU‑ns‑â A]c‑y‑m]‑vXX‑, s‑] X‑ z c‑ n Xs‑ ¸ S‑ p ¯W‑ w . \‑ m ‑ w \½‑ p s‑ S ]Àt‑¨k‑n‑wK‑v I¸‑mk‑nä‑n t‑{‑S‑mÄh‑ne hÀ²\ X‑pS§‑nb þ I‑q«‑pI F¶‑pÅX‑mW‑v FÃ‑m {‑]i‑v\§Ä¡‑p‑w Ig‑nh‑pIÄ hfÀ¯‑ns‑bS‑p¯‑v Bt‑K‑mf X‑pSÀ¶‑p hc‑p¶X‑v. kÀ¡‑md‑mW‑v D¯ch‑mZ‑nIÄ pÊc‑n¨‑v k‑m¼¯‑nI Xe¯‑n aÕc‑n¡‑ph‑m³ {‑]‑m]‑vXc‑mhW‑w. AX\‑ F¶ t‑]‑ms‑eb‑mW‑v hfÀ¨b‑ p‑w Dï‑mb‑n.

P\§Ä Ic‑pX‑p¶X‑v.

GDP cï¡ hfÀ¨

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CHAMBER IN ACTION I‑mW‑n¡‑p¶c‑mj‑v{‑S§s‑f k¼¶ c‑mj‑v{‑S§f‑mb‑mW‑v IW¡‑m¡‑p¶X‑v. k‑m¼¯‑nI a‑mµ‑y‑w t‑e‑mIc‑mj‑v{‑S§f‑n a‑pg‑ph³ AebS‑n¨t‑¸‑mÄ C´‑y 6 iXa‑m\‑w hfÀ¨ I‑mW‑n¨‑p. At‑Xkab‑w aä‑p ]e c‑mj‑v{‑S§f‑ne‑p‑w AX‑v 2 iXa‑m\¯‑nt‑e¡‑v X‑mg‑v¶‑p. k‑p\‑ma‑n h¶t‑¸‑mÄ aä‑p c‑mj‑v{‑S§f‑ps‑S kl‑mb h‑mK‑vZ‑m\‑w \‑nck‑n¡‑p¶ Xc¯‑nt‑e¡‑v \½‑ps‑S k‑m¼¯‑nI c‑wK‑w hfÀ¶‑p.

At‑X kab‑w aä‑p ]e c‑wK§f‑pe‑p‑w C\‑nb‑p‑w ]‑pt‑c‑mKX‑n s‑s‑Ihc‑nt‑¡ïX‑pï‑v. C¶‑p‑w BZ‑nh‑mk‑nIf‑p‑w‑, ]«‑nI P‑mX‑n‑, ]«‑nI hÀ¤¡‑mÀ¡‑p‑w t‑hï‑p¶ ]‑pt‑c‑mKX‑n s‑s‑Ihc‑n¡‑ph‑m³ k‑m[‑n¨‑n«‑nÃ. ]e h‑n`‑mK§Ä¡‑p‑w k‑m¼¯‑n I {‑]b‑mk§f‑pï‑v. C¯c‑w I‑mc‑y§f‑mW‑v a‑mt‑h‑mZ‑nIt‑fb‑p‑w aä‑p‑w k‑rj‑vS‑n¡‑p¶X‑v. k‑n.F.P‑n. ]e k‑m¼¯‑nI c‑mj‑v{‑S§f‑pt‑Sb‑p‑w IW¡‑pIÄ ] db‑pIb‑pï‑mb‑n. AX‑n ] eX‑p‑w A‑wK‑oIc‑n¡‑ph‑m³ ] ä‑m¯X‑mW‑v. C‑u \j‑vS§f‑n ]eX‑p‑w \‑m‑w {‑]J‑y‑m]‑n¨ Xc¯‑n \S¡‑pIb‑ms‑W¦‑n a‑m{‑X‑w e`‑n¡‑mh‑p¶ e‑m`‑w CÃ‑mX‑mbX‑mW‑v. AX‑ns‑\ \j‑vSa‑mb‑n IW¡‑m¡‑mh‑p¶XÃ.

C¯c‑w Hc‑p {‑]‑nk‑w]‑vS‑oh‑v Bb‑n«‑pÅ Hc‑p I‑mc‑ys‑¯ A‑wK‑oIc‑n¡‑ph‑m³ ] ä‑pIb‑nÃ. I‑mÀj‑oI t‑aJe¡‑v t‑hï‑p¶ {‑]‑ma‑pJ‑y‑w \ ÂI‑ph‑mt‑\‑m‑, ]‑pt‑c‑mKX‑n t‑\S‑n s‑I‑mS‑p¡‑ph‑mt‑\‑m k‑m[‑n¨‑n«‑nÃ. a‑p³ kÀ¡‑md‑pIÄ t‑hï{‑X {‑]‑ma‑pJ‑y‑w \ÂI‑m¯X‑n\‑m Ct‑¸‑mg‑p‑w 2 iXa‑m\‑w a‑m{‑Xa‑mW‑v hfÀ¨. AX‑v Gäh‑p‑w N‑pc‑p§‑nbX‑v Cc«‑ns‑b¦‑ne‑p‑w BIW‑w. \KchÂIc‑ Wa‑mW‑v I‑mÀj‑oI t‑aJeb‑ps‑S h‑nk‑vX‑oÀ®‑w I‑pd¡‑ph‑m\‑nSb‑m¡‑nbX‑v. c‑mk hf {‑] t‑b‑mK‑w Hg‑nh‑m¡‑n s‑s‑Ph k{‑¼Z‑mb¯‑nt‑e¡‑v a‑mdW‑w.

I‑mÀj‑oI k‑zb‑w ]c‑y‑m]‑vXX t‑\SW‑w. Ic‑pXt‑e‑ms‑S k‑m¼¯‑nI c‑wKs‑¯ a‑p³t‑]‑m«‑p\b‑n¨‑v C´‑y ]‑pt‑c‑mKX‑n t‑\SW‑w.

AU‑z. ]‑n. Fk‑v. {‑i‑o[c³ ]‑nÅ

_‑n.s‑P.]‑n. \‑mjW I‑u¬k‑n s‑a¼À al‑mß‑m K‑mÔ‑n h‑n`‑mh\‑w s‑Nb‑vX k‑m¼¯‑nI \b‑w \S¸‑m¡‑nbX‑v Ph‑mlÀe‑m \{‑ld‑p Bb‑nc‑p¶‑p F¶‑p‑w At‑±l‑w k‑z‑oIc‑n¨ \S]S‑nIÄ K‑mÔ‑nP‑n h‑n`‑mh\‑w s‑Nb‑vX c‑q]¯‑n Bb‑nÃ. 1991  t‑U‑m. a³t‑a‑ml³ k‑n§‑v k‑z‑oIc‑n¨ k‑m¼¯‑nI \S] S‑nIÄ C´‑ys‑b {‑]b‑mk¯‑ne‑m¡‑pIb‑mW‑v Dï‑mbX‑v. _‑mP‑vt‑]‑mb‑n kÀ¡‑md‑ns‑â I‑me¯‑v‑, 2000 a‑pX 2005 hs‑c b‑ms‑X‑mc‑p h‑ne¡bäh‑p Dï‑mb‑nc‑p¶‑nà F¶‑pÅX‑v FÃ‑mhc‑p‑w A‑wK‑oIc‑n¨X‑mW‑v. _‑ns‑P.]‑n. kÀ¡‑md‑pIÄ \‑neh‑ne‑pÅ _‑ol‑md‑ne‑p‑w‑,

K‑pPd‑m¯‑ne‑p‑w 8 iXa‑m\‑w k‑m¼¯‑nI hfÀ¨‑, a‑mµ‑y I‑me¯‑p‑w \‑ne\‑n¶‑nc‑p¶‑p. Id]‑vj³ C³UI‑vk‑v {‑]I‑mc‑w 2013  C´‑y 95þ#‑w Ø‑m\¯‑mb‑nc‑p¶‑p. At‑ac‑n¡ 19 X‑p‑w‑, t‑k‑ma‑me‑nb 175þ#‑w Ø‑m\¯‑pa‑mW‑v. ]‑pX‑nb kÀ¡‑mÀ h¶‑v 6 a‑mk¯‑n\‑pt‑ij‑w C´‑y Ct‑¸‑mÄ 85þ#‑w Ø‑m\¯‑mW‑v. Ag‑naX‑n¡‑pä¯‑n\‑v h[i‑n£ h‑n[‑n¡‑p¶ Hc‑p c‑mj‑v{‑Sa‑mW‑v s‑s‑N\. 2013þ 80þ#‑w Ø‑m\¯‑pï‑mb‑nc‑p¶ s‑s‑N\ Ct‑¸‑mÄ 100þ#‑w Ø‑m\¯‑mW‑v. i‑n£s‑I‑mï‑pa‑m{‑X‑w Ag‑naX‑nb‑p‑w s‑s‑I¡‑qe‑nb‑p‑w CÃ‑mX‑m¡‑ph‑m³ ]ä‑nÃ. F¦‑n s‑s‑N\b‑nt‑e‑m KÄ^‑v c‑mP‑y§f‑nt‑e‑m Ag‑naX‑nb‑p‑w IŸWh‑p‑w Dï‑mI‑pa‑mb‑nc‑p¶‑nÃ.

K‑mÔ‑nP‑n h‑n`‑mh\s‑Nb‑vXX‑pt‑]‑ms‑e ka‑ql a\Ê‑mj‑nb‑ps‑S a‑mäa‑mW‑v Bhi‑y‑w. C´‑y¡‑v s‑\ {‑ld‑p `cWI‑me¯‑v ]ä‑nb A_²‑w dj‑yb‑ps‑S

k‑m¼¯‑nI h‑nIk\h‑p‑w At‑ac‑n¡b‑ps‑S I‑mÀj‑oI h‑nIk\h‑p‑w k‑z‑oIc‑n¨X‑n\‑me‑mW‑v. \a‑p¡‑v k‑z‑mX´‑y‑w I‑n«‑pt‑¼‑mÄ 1 t‑U‑mfd‑ns‑â h‑n\‑nab \‑nc¡‑v GX‑mï‑v 1 c‑q]b‑mb‑nc‑p¶X‑v Ct‑¸‑mÄ 62 H‑mfa‑mb‑n. s‑a‑md‑mÀP‑n t‑Zi‑mb‑nb‑ps‑S I‑met‑¯‑m ‑, _‑mP‑vt‑] b‑nb‑ps‑S I‑met‑¯‑m h‑ne¡bäa‑pï‑mb‑nc‑p¶‑nÃ. 56  s‑FI‑yt‑Icf‑w Ø‑m]‑n¨t‑¸‑mÄ Dï‑mb‑nc‑p¶X‑ns‑â hfs‑c s‑Nd‑nb Hc‑wi‑w a‑m{‑Xt‑a C¶‑v I‑rj‑nØe‑w DÅ‑p. k‑z‑mI‑mc‑y t‑aJe I‑qS‑n aÕc c‑wK¯‑pï‑mI‑pt‑¼‑mÄ k‑m[‑mcW¡‑mÀ¡‑v h‑ne¡‑pdh‑v Dï‑mI‑p‑w F¶‑pÅX‑v \‑nÝba‑mW‑v. h‑na‑m\ N‑mÀÖ‑v I‑pdªX‑p‑w s‑a‑ms‑s‑_ t‑^‑mW‑pIf‑ps‑S h‑ne I‑pdªX‑p‑w CX‑p I‑mcWa‑mW‑v. Cc‑p]s‑¯‑m¶‑m‑w \‑qä‑mï‑v \a‑p¡‑v `‑mcX¯‑nâX‑m¡W‑w. t‑k‑mh‑nbä‑v b‑qW‑nbs‑â ]c‑mPb‑w X‑ms‑gI‑nSb‑ne‑pÅhÀ¡‑p‑w DbÀ¶ Dt‑Z‑y‑mKØÀ¡‑p‑w Ht‑c i_fh‑p‑w‑, B\‑pI‑qe‑y§f‑p‑w \ÂI‑nbX‑pa‑qea‑mW‑v. B a‑mX‑rI k‑z‑oIc‑n¨X‑mW‑v C´‑y¡‑v ]ä‑nb A_²‑w.

29

CHAMBER IN ACTION a‑m{‑Xa‑mb‑nc‑p¶‑p a‑pe[\‑w. ]‑n¶‑oS‑mW‑v k‑m‑wk‑vI‑mc‑nI a‑pe[\‑w‑, k‑n‑wt‑_‑mf‑n¡‑v a‑pe[\‑w F¶‑nh t‑Zi‑m`‑na‑m\‑n h‑o¡‑ne‑n FU‑näÀ a‑pe[\a‑mb‑n IW¡‑m¡s‑¸«X‑v. t‑a‑mZ‑n kÀ¡‑mÀ k_‑vk‑nU‑n s‑h«‑n¨‑pc‑p¡‑ph‑m³ X‑oc‑pa‑m\‑n¨‑n«‑pï‑v.

1931þs‑e Id‑m¨‑n t‑I‑m¬{‑KÊ.d³k‑ns‑e {‑] k‑m[‑mcW¡‑mc\‑v k‑z´‑w I‑me‑n \‑n¡‑p¶X‑n\‑pÅ t‑ab‑w ]‑n¶‑oS‑v `cWLS\ X¿‑md‑m¡‑p¶X‑n t‑ij‑n s‑s‑Ihc‑p¶X‑n\‑p a‑p¼‑mb‑n k_‑vk‑nU‑n hfs‑c kl‑mb‑n¨‑n«‑pï‑v. 1970 hs‑c s‑h«‑n¨‑pc‑p¡‑p¶X‑v k‑m[‑mcW¡‑mc‑ps‑S \‑ne\‑nÂ]‑v k‑ma‑ql‑nIk‑m¼¯‑nI\‑oX‑nIÄ FÃ‑mhÀ¡‑p‑w A]IS¯‑ne‑m¡‑p‑w. t‑a‑mZ‑n X‑pe‑yt‑X‑mX‑n e`‑n¡‑p¶ kÀ¡‑mc‑ns‑â \b§Ä cï‑m‑w Xc¯‑ne‑mb‑nc‑p¶‑p `cW‑w.

1990þ t‑ U ‑ m . a³t‑ a ‑ m l³k‑ n §‑ v b‑p.]‑n. kÀ¡‑md‑ns‑â At‑X \ ]‑n¶‑oS‑v Z‑mc‑n{‑Z‑y\‑nÀ½‑mÀÖ\‑w‑, b§Ä Xs‑¶b‑mW‑v. t‑I‑m¬{‑KÊ‑v A[‑nI‑mc¯‑n h¶t‑ij‑w _‑m¦‑v t‑Zik‑m¡cW‑w X‑pS§‑n C¶‑v {‑]X‑n]£¯‑pt‑]‑me‑pa‑nà DZ‑mc‑oIcW‑w \S¸‑m¡‑nbt‑¸‑mÄ k‑m¼¯‑nI\b‑w \à c‑oX‑nb‑n F¶‑pÅX‑v A]ISIca‑mb a‑pt‑¼‑m«‑p t‑]‑mb‑ns‑¡‑mï‑nc‑p¶‑p.

GX‑mï‑v 20 hÀj‑w \a‑p¡‑v HchØb‑mW‑v. Gs‑X‑mc‑p ]‑n¶‑oS‑v h¶ I‑me¯‑v _‑ p ²‑ n a‑ p «‑ p ï‑ m h‑ p s‑ a ¦‑ n e‑ p ‑ w ‑ , kÀ¡‑md‑n\‑p‑w {‑]X‑n]£‑w ]‑n.h‑n. \ck‑n‑wld‑mh‑p‑, AX‑y‑mhi‑ya‑mW‑v. BbX‑n\‑m ]‑n¶‑oS‑v FÃ‑mhÀ¡‑p‑w K‑pW{‑] t‑U‑m. a³t‑a‑ml³k‑n§‑v‑, t‑I‑m¬{‑KÊ‑v ]‑mÀ«‑n XIcc‑pX‑v Za‑mb‑nc‑n¡‑p‑w F¶‑mW‑v ] s‑a‑mt‑ïI‑vk‑n§‑v AË‑ph‑me‑nb F¶‑ms‑Ws‑â h‑yà‑n]ca‑mb X‑pS§‑nbhÀ `cWt‑\X‑rX‑z¯‑n dª‑nc‑p¶X‑v k‑m[‑mcW¡‑mc‑n A`‑n{‑]‑mb‑w. t‑I‑m¬{‑KÊ‑ns‑â h¶t‑X‑ms‑Sb‑mW‑v k‑m¼¯‑nI‑, k‑ m [‑ m cW¡‑ m c\‑ m b ]‑ u c\‑ v XIÀ¨ {‑]‑mt‑Zi‑nI ]‑mÀ«‑nIÄ k‑ma‑ql‑y Ak´‑pe‑nX‑mhØ c‑q]‑oI‑rXa‑mI‑p¶X‑n\‑p‑w I‑mc‑ F´‑pK‑pW‑w e`‑n¨‑p F¶‑mW‑v DSs‑eS‑p¯X‑v.

Wa‑mI‑p‑w. BbX‑n\‑m t‑Zi‑ob \‑m‑w ]c‑nt‑i‑m[‑nt‑¡ïX‑v‑, Xe¯‑ne‑pÅ Gs‑X¦‑ne‑p‑w Hc‑p Kh¬s‑aï‑v k‑ma‑ql‑nI AS‑nØ‑m\a‑mt‑¡ïX‑v. t‑k‑mW‑nb‑m ]‑mÀ«‑n {‑]X‑n]£¯‑pï‑mt‑IïX‑v k‑m¼¯‑nIk´‑pe‑nX‑mhØ K‑ m Ô‑ n ]dªX‑ p t‑ ] ‑ m s‑ e AX‑y‑mhi‑ya‑mW‑v. t‑I‑m¬{‑KÊ‑v \‑ne\‑nÀ¯‑p¶X‑na‑p‑w K‑mÔ‑nP‑nb‑ps‑Sb‑p‑w‑, s‑\ t‑I‑m¬{‑KÊ‑v kÀ¡‑md‑ns‑â At‑X h‑nIk\¯‑n\‑p‑w Bhi‑ya‑mb ] {‑ld‑ph‑ns‑âb‑p‑w t‑Zi‑ob k‑m¼¯‑nIkah‑mba‑mW‑v ]‑pX‑nb W‑w \‑nI‑pX‑nb‑ne‑qs‑S ka‑mlc‑n¨‑v I‑mg‑vN¸‑mS‑pIf‑n \‑n¶‑p‑w ]‑mhs‑¸«hs‑c D²c‑n¡W‑w. kÀ¡‑md‑p‑w ]‑n´‑pSc‑p¶X‑v. hfs‑cb[‑nI‑w a‑md‑n. AX‑mW‑v 1990þ t‑U‑m. a³t‑a‑ml³k‑n§‑v t‑I‑m¬{‑KÊ‑ns‑â ]X\¯‑n\‑v A[‑nI‑mc¯‑n h¶t‑ij‑w I‑ m cW‑ w Gäh‑ p ‑ w s‑ N d‑nb IÀjI\‑p‑w s‑Nd‑nb DZ‑mc‑oIcW‑w \S¸‑m¡‑nbt‑¸‑mÄ GX‑mï‑v 20 k‑ w c`IÀ¡‑ p ‑ w ic‑ n b‑ m b {‑]X‑n^e‑w e`‑n¡W‑w hÀj‑w \a‑p¡‑v _‑p²‑na‑p«‑pï‑mh‑ps‑a¦‑ne‑p‑w‑, ]‑n¶‑oS‑v G¦‑ n t‑ e C´‑ y ³ k‑ m ¼¯‑ nI c‑wK‑w ic‑nb‑mb FÃ‑mhÀ¡‑p‑w K‑pW{‑]Za‑mb‑nc‑n¡‑p‑w F¶‑mW‑v ] Z‑ n ib‑ n e‑ m b‑ n F¶‑ p ]db‑ p h‑ m³ ]ä‑pIb‑pÅ‑p. dª‑nc‑p¶X‑v k‑m[‑mcW¡‑mc‑n k‑m[‑mcW¡‑mc\‑mb ]‑uc\‑v F´‑pK‑pW‑w e`‑n¨‑p F¶‑mW‑v \‑m‑w ] c‑nt‑i‑m[‑nt‑¡ïX‑v‑, AS‑nØ‑m\a‑mt‑¡ïX‑v. t‑k‑mW‑nb‑m t‑U‑m. kP‑n t‑K‑m]‑n\‑mY‑v, t‑a‑mUt‑däÀ k‑ma‑ql‑y k‑m¼¯‑nI k‑pc£‑nXX‑z‑w Gs‑X‑mc‑p K‑mÔ‑n ]dªX‑pt‑]‑ms‑e t‑I‑m¬{‑KÊ‑v kÀ¡‑md‑ns‑â ]‑uc\‑p‑w e`‑n¡‑pt‑¼‑mÄ a‑m{‑Xt‑a k‑m¼¯‑nI c‑wK‑w At‑X k‑m¼¯‑nIkah‑mba‑mW‑v ]‑pX‑nb kÀ¡‑md‑p‑w ic‑nb‑mb Z‑nib‑ne‑mb‑n F¶‑p ]db‑ph‑m³ ]ä‑pIb‑pÅ‑p. ]‑n´‑pSc‑p¶X‑v. h‑yhk‑mb‑, I‑mÀj‑oI t‑aJeIf‑n t‑hï{‑X a‑mä‑w C\‑nb‑p‑w h¶‑n«‑nÃ. I‑mÀj‑oI‑, h‑yhk‑mb hfÀ¨ h‑nt‑Zt‑i‑m\‑nt‑£]‑w C³j‑qd³k‑v t‑aJeb‑ne‑p‑w 26%þ \‑n¶‑p‑w 49% B¡‑n hÀ²‑n¸‑n¨‑p. k‑m¼¯‑nI\ X‑zc‑nXs‑¸S‑p¯W‑w. \‑m‑w \½‑ps‑S Ig‑nh‑pIÄ hfÀ¯‑ns‑bS‑p¯‑v Bt‑K‑mf Xe¯‑n aÕc‑n¡‑ph‑m³ b§Ä c‑q]‑oIc‑n¡‑p¶X‑v t‑I‑mÀ¸t‑dä‑pIf‑mW‑v {‑]‑m]‑vXc‑mhW‑w. ]‑pX‑p P\t‑dj³ _‑m¦‑pIÄ F¶‑pXs‑¶ ]dbW‑w. a‑p³kÀ¡‑md‑p‑w ]‑pX‑nb h¶t‑X‑ms‑S aä‑p _‑m¦‑pIf‑p‑w X§f‑ps‑S {‑]hÀ¯\ kÀ¡‑md‑p‑w s‑]‑mX‑pt‑aJe‑mØ‑m]\§s‑f t‑ij‑n I‑q«‑n. At‑X t‑]‑ms‑e H‑mt‑c‑mc‑p¯c‑p‑w X§f‑ps‑S XIÀ¡‑p¶ Xc¯‑ne‑mW‑v \‑o§‑p¶X‑v. 4P‑n Ig‑nh‑pIÄ hÀ²‑n¸‑n¡W‑w. a‑pg‑ph\‑mb‑p‑w d‑neb³k‑ns‑âb‑mW‑v. Chc‑ps‑S {‑] [‑m\e£‑y‑w _‑n Fk‑v. F³. FÃ‑nt‑\ XIÀ¡‑pI {‑]k‑wK‑nI·‑mÀ¡‑p‑w t‑a‑mUt‑däÀ¡‑p‑w ae_‑mÀ F¶‑pÅX‑mW‑v. {‑][‑m\a{‑´‑n h‑nt‑Zib‑m{‑X t‑N‑w_d‑ns‑â D]l‑mc‑w t‑N‑w_À {‑]k‑nUï‑v k‑nF. s‑N¿‑pt‑¼‑mÄ I‑qs‑S t‑]‑mI‑p¶X‑v A‑w_‑m\‑n‑, AZ‑m\‑n k‑n. t‑a‑ml³ \e‑vI‑n.

X‑pS§‑nb t‑I‑mÀ¸t‑dä‑pIf‑mW‑v. a‑qe[\¯‑n\‑v FÃ‑m t‑aJeIf‑ne‑p‑w k‑zX{‑´a‑mb k©‑mc‑w A\‑phZ‑n¡‑pI k‑n{‑I«d‑n {‑i‑o F‑w. F. s‑al_‑q_‑v \µ‑n {‑]IS‑n¸‑n¨‑p.

F¶‑pÅX‑mW‑v t‑¥‑m_s‑s‑et‑kjs‑â AS‑nØ‑m\ t‑l‑m. k‑n{‑I«d‑n.

XX‑z‑w. 1990 a‑p¼‑pÅ I‑me L«§f‑n ]W‑w

t‑U‑m. s‑I. ]‑n. t‑a‑ml\³

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QUESTION & ANSWER

Q&A

Q: Against our EPCG Authorisa­tion, we want to obtain invalidation letter in the first instance and then take delivery of capital goods from DTA without the payment of excise duty. But our DTA supplier of capi­tal goods wants us to pay the ex­cise duty first to them and then take the refund of excise duty from the DGFT. Kindly advise about the correct position in this regard.

A : The supply of capital goods from. domestic supplier to EPCG holder is not exempted from excise duty. The supplier has to pay duty and subse­quently can take refund of the same from DGFT. Since, refund takes time and due procedure has to be followed; the suppliers are reluctant and advise EPCG holder to claim such refund.

Q: We have imported capital goods under EPCG for our unit in Madhya Pradesh but now we want to shift to another unit in Chattisgarh. Is it permitted to transfer capital goods imported under EPCG? A: You can shift the capital goods imported under EPCG Scheme. Please approach DGFT requesting for transfer giving reasons for the same. DGFT may allow it subject to condition of furnishing of IEC and RCMC with both the addresses endorsed on them and submission of new installation cer­tificate from jurisdictional excise authority, having jurisdiction over Chattisgarh unit, within 6 months of such transfer.

Q: We have basic payment terms for any export consignment of 35 per cent advance and 65 per cent balance payment against OBL. Our Bank wants our payment to be transferred from our buyer's Com­pany bank account which is men­tioned as consignee in Shipping Bill. Where as many a times the payment is being transferred either from Money Exchanger especially in case of countries like UAE where they find this mode of payment cheaper than their bank account transfer. In a situation when the buyer is travelling, he transfers the payment from his overseas branch. In such case, our documents for BRC are rejected by our banks. How can the issue be resolved?

A: The problem raised by you has originated from RBI Circular on Third Party payment. I would request you to go through RBI Circular 70 dated November 8, 2013 and 100 dated February, 2014. You may ask your buyer to inform you in advance if he wants to remit money from his over­seas branch or from some third party so that you can declare the same in the Export Declaration Form. Trade has raised problems flowing from these cir­culars which we are pursuing with RBI Q: We have quoted for deemed exports price inclusive of excise duty for supply to an EPCG Autho­risation holder. However, we are told that in such situation, we will not get excise

duty refund permit­ted for such supplies. What is the correct position?

A: Deemed exports benefits are made available to the supplies which meet the conditions as laid down under Para 8.2 of Foreign Trade Policy. While quoting for a tender, this is up to the bidder to quote price either including excise duty or excluding excise duty. If a bidder is able to get the contract, in­clusive of excise duty then it is obvious that the price of goods are calculated taking into account anticipated deemed exports benefits on such supply. You will be eligible for terminal excise duty refund.

Q: We have exported few ship­ments after expiry of 36 months EO period available to us in the ad­vance authorisation. Can we get it regularised?

A: You have to approach Policy Relaxation Committee (PRC) in DGFT for getting it regularised. However, generally PRC regularises exports made within 48 months from the issue of Au­thorization towards discharge of export obligation.

The accounting of exports made outside the original obligation pe­riod, though, it shall be subject to pay­ment of composition fee at the rate of 0.5 per cent on FOB value.

Q: What are the criteria which decide whether a company has to execute a Bank Guarantee or Bond Q: We are a merchant exporter. Can we get the benefit of factory stuffing?

A: The facility of factory

33

stuffing is available to both manufacturer ex­porters and merchant exporters. You may kindly go through Central Excise Circular dated September .8, 2011 available at www.cbec.org.

Category of Importer a) All exporters who have an export turnover (physi­ cal exports) of Rs 5 crores in current or preceding financial year and having a good track record of three years of exports b) Public Sector Undertaking c) Star Export House d) Manufacturer exporters registered with Central Ex­cise, who have been exporting during the previous two financial years and have minimum export of Rs 1 crore or more during the preceding financial year. e) Manufacturer exporters registered with Central Ex­cise, who have paid central excise duty of Rs.l crore or more during the preceding financial year. f) Manufacturer exporters who are not covered under (a), (b), (c), (d) and (e) above. g) Others while importing against advance authorization? A: The bond under Advance Li­cense to be furnished in the format given below. The bond shall cover the duty ordinarily leviable on the goods but for the exemption. The bond should be backed by a Bank Guarantee.

The Bank Guarantee should be as per the following norms for the purpose of per­mitting clearance of imported goods under Advance License Schemes.

Q: We could not take registra­tion of Service Tax earlier. What are the penalties for non registra­tion?

A: Failure of registration of Service tax may attract a penalty up to Rs. 10000 or Rs. 200 for every day dur­ing which such failure continues, whichever is higher. However, such penalty may be waived in case the assessee proves that

34

there was reason­able cause for such failure.

Q: When payment is made by a client after deducting his Income Tax liability under the Tax Deduc­ tion at Source (TDS) provision, whether the Service Tax liability of the assessee is only towards the amount actually received from that client or tax is to be paid on the amount including the Income Tax deducted at source also?

A: Service Tax is levied on the gross value of taxable service which is charged by a service tax assessee for providing a taxable service. Income tax deducted at source is to be included in the charged amount. Therefore, serv­ice tax is payable on the gross amount including the amount of income tax de­ducted at source also.

Q: Which are the places where we as Premier Trading House can set up exports warehouse for pro­curement of excise exempt goods for exports?

A: Such export warehouses may be established in Ahmedabad, Bangalore, Kolkata, Chennai, Delhi, Hy­ derabad, Jaipur, Kanpur, Ludhiana, Mumbai, the districts of Pune and Raigad in the state of Maharashtra, the district of East Midnapore in the state of West Bengal, the district of Kancheepuram in the state of Tamil Nadu, the district of Indore in the state of Madhya Pradesh, the taluk Ankleshwar in the district of Bharuch in the state of Gujarat, Navi Mumbai in the district of Thane in the state of Ma­harashtra, Sholinghur in the district of Vellore in the state of Tamil Nadu, Bidadi in the Bangalore Rural District, Karnataka, the district of Thiruvallur in the state of Tamil Nadu, the district of Gautam Budh Nagar in the state of Uttar Pradesh, the district of Nagpur in the state of Maharashtra, Tehsil of Tijara of Alwar district in the state of Rajasthan and Bhuj Taluk of Kutch District in the state of Gujarat.

Q; We have our own warehouse where we keep exports goods ready for dispatch as per instruc­tion of buyers. What is the maxi­mum time period permitted to keep such goods in our own ware­house?

A: Warehousing of goods is ini­tially allowed for a period up to six months, which may be further ex­tended by the Assistant or Deputy Commissioner. Each extension being for a period not exceeding six months, subject to the verification that the goods have not deteriorated in quality. The maximum period, for which goods may be left in the warehouse in which they are deposited, or in any ware­house to which such goods have been removed, shall be three years from the date on which such goods were first warehoused. Excisable'goods shall be deemed to be cleared for home con­ sumption on expiry of the warehousing period including the extensions granted, if any. Duty and interest at the rate of 24 per cent per annum is charged on such deemed removal.

Q: We want to claim drawback on some inputs which are not covered under advance authorisation.

Can we claim it and if so, what is procedure for the same?

A: You can claim brand rate of drawback on such inputs which are used by you in export product but not covered under advance authorisation. However, you have to declare such in­ puts in your advance authorisation application and get it endorsed in the attachment to authorisation because as per paragraph 4.1.14 of Foreign Trade Policy, it has been made clear that drawback would be allowed only for such duty paid items which have been endorsed on the authorisation by the Regional Authority.

Courtesy : FIEO News

INFOLINE One should analyse spending patterns

interest is 14 per cent, then you need to

goals. Once you decide your financial

to observe how much is essential spend,

invest Rs 18,853 every month to reach

goals, it is advisable to prioritise them in

and how much is luxury spend. When

your financial goal. If on the other hand,

order of importance, such as children's

there is a significant amount of person-

the goal is to have a corpus of Rs 50 lakh

education, followed by buying a new

al debt, it is best to put off luxury pur-

to be reached in 15 years with the same

car, etc. One should then look at how

chases for later and stick to the essential

interest rate, then you need to invest

much is required to achieve these goals

expenses. This will leave more money at

only Rs 8,316 every month.

and plan an investment strategy accord-

the end of the month. Also, see if there

This is because of the power of com-

ingly. This should be a realistic invest-

are ways to reduce essential expenses,

pounding.

ment plan, with money being set aside

such as option for a car pool, or buying

Credit card woes

each month for saving against the goals.

a cheaper brand of coffee.

Most people have multiple credit cards,

Set up investment plans

Keeping a strict budget

leading to high interest costs and other

It is also important to start to save simul-

It is advisable to create a budget, which

charges. The best solution is to reduce

taneously, and the best way to do this

takes into account current expenses,

the number of cards, to one or maybe

is to automatically transfer funds from

and helps you to keep money aside to

two cards, which should be used only

your salary account into some form of

repay debt. This budget needs to be

in emergency situations. It is better to

investment , be it a recurring deposit,

realistic and take into account one's life-

use a debit card for all shopping, as one

mutual fund, or fixed deposit. This will

style and spending patterns. Following a

can spend only within one's means and

leave less temptation to spend, and will

strict budget will assist you in achieving

not overspend (as happens when using

also help one build a nest egg for future

your financial goals.

a credit card).

contingencies.

Choose the time line

Prioritising goals

Keep a contingency fund

Fix a time line to achieve your goal, a long

Without prioritising your financial goals

Try to save money in a contingency

term investment always

it is impossible for you to achieve those

fund. This money should be used only

reaps you the benefit of

the case of an emergency. For

your money compound-

example, if one has been laid

ing. For example, let

off and has to pay bills and

us assume you have

rent, one can use the contin-

a financial goal of reaching Rs 50

gent fund money. This fund will be maintained sepa-

lakh as your tar-

rately from savings,

get amount in

and should constitute

10 years. If

at least 4-5 months'

the rate of

38

in

living expenses.

Source: Passline

INFOLINE The fourth annual edition of the

Maldives, account for nearly a quar-

discuss on the most impactful trends

One Globe knowledge conference

ter of the world's population and the

in India's ongoing transforma­ tion,

will focus on exploring the potential

region has played a historical role in

One Globe 2015 will assess these

of the bold initiatives announced

the development of the world econo-

ideas, issues and their impact in the

by Prime Minister Narendra Modi's

my. India alone has one of the youngest

larger context of South Asia, and the

NDA government in building a 21st

demograph­ics in the world with 54% of

opportunities it offers to domestic

century knowledge economy in India

its 1.3 billion people under the age of

and global players."

and South Asia. Scheduled to be held

25.

The detailed agenda and speakers

on February 6th & 7th, in New Del-

Sharing his vision for the One Globe

are being finalized and will be updat-

hi, One Globe 2015 is India's lead-

2015 conference, Harjiv Singh, Founder

ed on the brand-new website, www.

ing conference that brings together

and CEO of Saiwan Media said, "After

oneglobeconference.com. The con-

global thought leaders to explore

nearly three decades, India has voted

ference also actively engages with its

the intersection of technol­ogy, inno-

for a govern­ment with a full majority,

stakeholders-on social media proper-

Smart Cities, 'Digital India' and 'Make in India' to be the focus of One Globe 2015 Conference

40

vation, smart cities, skills, regional

and in its very first year, Prime Minister

ties on Facebook.com/OGConf and

collaboration and education. The

Narendra Modi has spearheaded a bold

Twitter.com/OGConf, as well as on

two-day conference will feature sev­

strategy to revive growth and perch

Linkedln (bit.ly/ OGLinkd).

eral action-packed keynote sessions,

India strongly on the global map. From

Over the last three years, One Globe

panel discussions, spotlight sessions

Madison Square to Sydney to the SAA-

conference has provided its delegates

and fire­side chats with leaders from

RC Summit in Kathmandu, he has got

op­portunities to hear, meet and net-

business, government, think tanks,

the whole world watching in rapt atten-

work with an array of ministers and

private equity, indus­ try associa-

tion as he cruises through his agenda of

politicians

tions, as well as ministers, bureau-

togetherness and shared development.

Minister Pallam Raju; India's Exter­

crats, policy makers and influencers,

Some of the government's ambi­tious

nal Affairs Minister Salman Khurshid;

en­trepreneurs, educators and aca-

initiatives like "Digital India", "Make in

Minister of State for HRD Shashi Tha-

demia from around the world.

India" and "Smart Cities" seem to hold

roor; and Member of Parliament and

India and larger South Asia, includ-

the promise of transforming

National President of BJP's Youth

ing Pakistan, Ban­ gladesh, Nepal,

India into a 21st century knowledge

Wing Anurag Thakur among others.

Sri Lanka, Bhutan, Afghanistan and

economy. As an annual forum to

in­ cluding

India's

HRD

Courtesy: Rubber Aisa

The Key to business success is winning and keeping customers. And the key to winning and keeping customer and has always been relationships.

If you ask 10 entrepreneurs to tell you the key to business success, you're likely to get 10 different answers. I'm sure one would say product innovation, and while that's definitely a significant factor, it's not the right answer. And, yes, there is a right answer.

The key to business success is winning and keeping customers. And the key to winning and keeping customers is, and has always been, relationships. The world's greatest business experts - Peter Drucker, Mark McCormack, Regis McKenna and others - have all said the same thing in one way or another.

Unfortunately, you, my friends, have all been sold a bill of goods.

You've been told that spending your time building your personal brand, growing your social media network, improving your productivity, identifying and enhancing your strengths, and engaging your employees, among other things, will make you successful. They won't.

No matter what you do for a living or aspire to become, none of those fads du jour will have a material impact on how things turn out for you or your business. But building real relationships with real people in the real world will. Not convinced? Here's why relationships are the key to business success: Your most important asset is your network - not your virtual network, your real one. Every successful executive and entrepreneur will tell you, their most important asset is .their network, and they don't mean social network. They mean people they actually know and work with in real time because they're the ones that actually get things done. One real relationship in the real world is worth more than 10,000 social media links, likes or followers.

Sales transactions are between two real human beings.

Even with e-commerce, most sales transactions are still between two human beings. Think about it. Every significant B2C and B2B transaction involves a buyer and a seller, not to mention all the channel development and pre- and post-sales support. And the best product doesn't necessarily win. Buyer

INSIGHT

behavior is mostly subjective and relationships are a big factor. In a service business, they're the biggest factor, hands down.

When opportunity knocks, it's always a person knocking ... and answering. As much as we like to fantasize about opportunities just falling in our laps, the truth is, that never opportunities have been involved with over the past 30 years, every single one involved a real relationship. Every job, every piece of advice, every business deal, every vendor relationship there's that word - every single one. So what does all this mean? It means there's a good chance you're wasting precious time, even years of peak earning potential, focusing on the wrong things to build your career and grow your business. I learned that lesson the hard way.

Ten years into my engineering management career, I thought I had everything going for me.

I was young, I was smart, and I worked hard, but it was all about the job, the product. And you know what? I wasn't really going anywhere. Until one day, some guy changed my life by talking me into making the transition to sales and marketing.

It took a while to learn the skills that would ultimately make me a senior executive in the high-tech industry and then, a successful management consultant, but I can attribute everything good that happened to me over the next 20 years to that fateful day and the relationships I've built since.

Which reminds me of a time, long ago. I was working at home and had just gotten off the phone and looked up to find my wife standing in the doorway. She looked at me in a sort of circumspect way and said, "Aren't you supposed to be working?" "1 am working," I replied. "No you're not," she said, "You're just BS-ing" I said, "That's right. That's my job." Back then, she didn't get it, but now she does. It’s just like watching grass grow. You can't see anything happening, but one day you wake up to a beautiful lawn. Building relationships and it a successful business career is just like that. Call a leap of faith or delayed gratification, if you want. All I know is, it works.

Courtesy : Entrepreneur

41

Kerala Tourism Kerala always has given priority for tourism sector. The state is definitely ahead of other states in south at least by 10 years.

The government of Kerala has recognized that tour­ism is one of the major economic activities in the state in employment generation and revenue. But one wonders whether the focus is now lost? Or is it that the decision mak­ers have decided that there is noth­ing much to be done as the tourism industry is already well established.

Take for example. We have an Hon’ble Minister for tourism who has to share the burden of other port­folios like Welfare of Schedule Castes and Backwater classes along with tourism. Normally the Central Government gives a low priority for tourism. We don't have a full time uniform Minister dedicated to tourism. So much for the priority of tourism. But the Modi Government has appointed Dr. Mahesh Sharma as

the tourism Minister with additional portfolio of Civil Aviation and culture. Both these segments are aligned to tourism industry.

It is also heartening to note that Prime Minister has made direct reference to tourism in India in his addresses abroad in Japan, US and other countries. He has requested each Non resident Indians to send at least five persons to India every year. For the first time an In­dian Prime Minister talking about tourism promotion in numerous platforms in India and abroad is a matter of satisfaction to the people in the industry.

But the story in Kerala is one of desperation. We seem to be in a proverbial race between the tortoise and the hare.

While other states are making rapid gain in the tourism sector we seem to be content with our past glory. We take it for grant­ed that we have arrived at the pinnacle But this is a

fallacy. The threats to the tour­ism comes from various directions and new challenges come every day. Some of them are beyond our control and many of them are self made. The new challenge comes from Srilanka. With the domes­tic trouble coming to an end, the Srilanka has picked up the threads of development. In 2014 the FDI is above 2 billion dollars mostly in­vested in infrastructure. With better roads, beaches and liberal policy of Government, Sri Lanka has become an attractive alternative destination to Kerala. Kerala is mired with the problems, mostly of its own creations. Road development pro­gram is directionless. Every visitor complains about the bad roads or narrow roads. The tourist spends more frustrating time on the road than the resort.

Government's flip-flop policy on bar licenses has caused major embarrassment to the hospitality industry. Every hotel and tour op­erator has stories to tell about the disappointment and frustrations of international and domestic tourists. The overnight change in policy has caused irreparable damage for the tourism industry. The tourist is right in demanding as to

42

INSIGHT

High Time To Rekindle why this restriction on alcohol was not informed to him when he made the booking. Well, the bookings were made months in advance. Rightly or wrongly the worldwide publicity sent a message that Kerala is going in for prohibition. It is difficult to undo such damages. The issue of high taxes, alleged beauruocratic impediments, policy paralysis in de­cision making and above all an de­pleted state treasury has all put the tourism industry in a fix. The plum­meting global oil prices will nega­tively impact Kerala. Large number of Arab tourists come to Kerala for holiday and medical treatments which might get adversely impacted as the oil prices are going south.

We, in Kerala, also seem to be running out of ideas.

We seem to try and imitate others in creating new tourist

attractions. Recently newspapers have reported we will have a wax museum (probably because London has one?), We will have a Mermaid statue in the Cochin backwaters (because New York has one?). All these years we have been the innovators in Kerala for tourism promotion. Ayurveda, houseboats, backwaters, tree tops, festivals, cultures and numerous other attractions have been high­lighted through decades to position Kerala as a unique destination. It is nather disappointing that now we are into wax museums and Statues. None of these borrowed ideas fit into the unique Kerala story.

One of the bright spot is the domestic tourism The domestic travel is expanding exponentially because of better connectivity and the optimism pervading the Nation after the New Government has come to power in New Delhi.

There again there is a catch. Government proposed to include the SAARC countries in the Leave Travel facility which in effect will reduce the inflow into Kerala.

Secondly the E visa to India for about 50 countries is a

K.N. Shastry big step in the right direction. Most of the western countries which generate the tourist traffic had easy access to our neighbouring countries like Maldives, Srilanka, Singapore, Thailand, Indonesia, Nepal and Thailand. India stood alone in the midst demanding advance visa for tourists. For years the tourists have bye passed Indian and gone to neighboring countries. Even those who were eager to visit India changed their mind because of the hassles of sending their passport to Indian embassy in the respec­tive countries. With two airports,

Cochin and Trivandrum, having the visa on arrival facility is a great boon to the state.

Kerala still has great advantage compared to other states which will take atleast another 10 years for others to catch up. Kerala holds the top position in the Quality of Life index (QLI) among the Indian states. The better QLI gives an advantage to the state over others. QLI creates an eco system that is more favourable to attract tourists.

This QLI is based on health, educa­tion, safe drinking water, gender equality and toilet facilities. While other states can expedite some of these infrastructures, it will take a whole generation to transform the society in the field of education.

So we still have time for course cor­rection and remain in our toes to be the top and best brand in India.

(The author is past president of KMA)

43

Find Out the Right Tax Saving Option One should choose the tax saving investments or tax shields on the basis of returns, safety and liquidity, flexibility of income and cost of investments . These things have great relevance in the perspective of hiked de¬duction under section 80c of the income tax law. The individual tax payer can reduce his tax burden by Rs 1,50,000 as per new amendment. Below given are the most useful eight tax saving investments schemes.

ELSS Funds

' There are specific reasons why ELSS funds should be part of the • equity allocation in a taxpayer's investment portfolio in 2015. They may be low on safety but they score full points on all other parameters. The returns are high, the income is tax free, the investor is free to alter the time and amount of investment, the lock-in of 3 years is the shortest among all tax saving investments and the cost is only 2-2.5% a year. The liquidity is even higher if you opt for the dividend option and the cost is even lower if you go for the direct plans of these funds. Invest in the dividend option which acts as a profit-booking mechanism and also gives you liquidity. Dividends are tax-free.

ULIP

For a lot of people, Ulip is still a four letter word. However, inves¬tors need to wake up to the new reality. All ordinary Ulip is still a costly proposition for the buyer. But the online born these market linked insurance plan is a low-cost option far removed from what was missed to investors few years ago. The Click2Invest plan from HDFC Life, for instance, charges only 1.35% a year for fund management. Ulips can be used as a rebalancing tool by the savvy investor. He can switch from equity to debt and vice versa, without any tax

44

implication. Buy a Ulip only if you can pay the premium for the full term. Also, take a plan for at least 15 years. A shortterm plan may not be able to recover the high charges levied in the initial years. Don't invest in the equity fund at one go.

Invest in a liquid fund and then shift small amounts to equity fund.

PPF

Budget 2014 also hiked the an¬nual investment limit in the PPF Risk averse investors can now strike away more in the ultra- safe scheme. The instrument scores high on safety,taxability,and costs taxability and costs but, returns are not so attractive and liquidity is not very high. The scheme will give 8.7% this year but don't count on this in the following years. The in¬terest rate on small saving schemes such as the PPF is linked to the government bond yield and is likely to come down in the coming years. To reduce the effort open a PPF account in a bank that allows online access.

SR CITIZENS SAVING SCHEME

The Senior Citizens Saving Scheme (SCSS) is an ideal tax saving option for senior citizens above 60. The money is safe and the returns and liquidity are reasonably good. How¬ever, the interest income received from the scheme is fully taxable. The interest rate is linked to the government bond yield. Unlike in case of the PPF, the interest rate will remain unchanged till the in¬vestment matures. The best option in this scheme is your investments in the Senior Citizens Saving across 2-3 financial years to avail of the tax benefits.

NPS

The new pension scheme (NPS) is yet to become a popular choicebecause of the complex procedures involved in

INFOLINE

IMPORT DUTY ON EDIBLE OILS World’s Biggest Vegetable Oil Importer, India Hikes Import Duty on Edible Oils by 5%.

The union government has raised the import tax on crude edible oils and refined oils by 5 percentage points each to protect local farmers from rising imports from Malaysia and Indonesia.

In an order made public on Christmas day, it said the import tax on the crude variety of vegetable oil would rise to 7.5 per cent from 2.5 per cent, while that on refined oil would rise to 15 from 10 per cent with immediate effect.

India is the world's biggest vegetable oil importer. It meets nearly 60

per cent of its 18-19 million tonnes of annual demand from overseas, mostly in the form of palm oil from top producers Indonesia and Malaysia.

The increase in import duties is expected to hit Malaysian palm oil futures, the regional benchmark.

Hit by cheaper vegetable oil imports from Malaysia and Indonesia, industry body the Solvent Extractors Association of India (SEA) had petitioned the government to raise the import duty on crude vegetable oils to 10 per cent and 25 per cent on refined products.

B V Mehta, executive director at the SEA, welcomed the government's move, but said it was not enough to

opening anaccount. But investors who managed to cross that gap have found it rewarding. NPS funds have not done badly in the past five years. The returns from the E class funds are in line with those of the Nifty, while corporate bond funds and gilt funds have given close to double digit returns. But financial planners believe that the 50% cap on equity investments is too conservative. The other sore points is the lack of liquidity and taxability of the income.

The annuity income will also be fully taxable. To get maximum benefit, start a Tier II account from the low-cost structure of the NPS.

BANK FD, NSC

Bank FDs and NSCs score high on safety, flexibility and costs but the tax treatment of income drags down the overall score. The interest rates are a bit higher than what the PPF offers but the income is fully taxable at the slab rate applicable to the individual. They suit taxpayers in the 10% bracket (taxable income of less than Rs. 5 lakh a year).

The big advantage is that these are widely available. Just walk into any bank branch and invest in its tax saving fixed deposit. Build a ladder by investing every year. After the fourth year, just reinvest the matu¬rity amounts in fresh deposits.

safeguard the local producers. "The government should have ensured at least 15 per cent of duty differential between crude and refined oils to help the local industry," he said.

Both palm oil exporters of Indonesia and Malaysia will soon calibrate their export duties to encourage exports of • refined oils at the expense of the Indian refiners, Mehta said.

In the year that began in November, India is likely to import a record 13 million tonnes of edible oils, up from an estimated 11.6 million tonnes, including 8 million tonnes of palm oil, the previous year, a leading importer told..

Courtesy : Reuters

PENSION PLANS Pension plans from insurance com-panies remain costly investments that are best avoided. Instead, it may be a better idea to go for the retirement funds from mutual funds. They give the same tax ben¬efits but don't annuitize the corpus on maturity. The investor is alsofree to remain invested beyond the age of 60. Till now' all the pension plans were debt-oriented balanced schemes. Last week, Reliance Mutual Fund launched its reliance Retirement Fund, an equity-orient¬ed fund. However, ELSS schemes and Ulips can be used for the same purpose.

INSURANCE PLANS

Traditional insurance plans are the worse way to save tax. They require a multi-year commitment and give very poor returns. The insurance regulator has introduced some customer-friendly changes but these plans still don't qualify as good investments. The only good thing is that the income is tax free. But then, so is the income from the PPF and tax free bonds. Another positive feature is that you can easily get a loan against such policies, which gives some liquidity to the policy holder. If you have a high cost insurance plan, turn it into a paid-up policy to ease the premium burden.

45