February 10, 2021 | Rs

FTCCI CIN No. U91110TG1964NPL001030 Review The Federation of Telangana Chambers of Commerce and Industry Vol.II. No. 6 | February 10, 2021 | Rs. 15/-

FTCCI Union The Excellence Budget Shipping 12 31 34 pg Awards pg 2021 pg sector is at sea

Managing Committee Office Bearers President Ramakanth Inani Senior Vice-President K.Bhasker Reddy Vol.II No. 6 Vice-President Inside Anil Agarwal February 10, 2021 Immediate Past President Karunendra S.Jasti Editorial Board Chief Executive Officer 7 | President’s Desk KhyatiAmol Naravane Chairman CA Arun Luharuka, 8 | Power News Members Past President, FTCCI 10 | Economy Watch CV Anirudh Rao Members Venkat Jasti Dr. M.Gopalakrishna, I.A.S 12 | FTCCI Excellence awards Manoj Kumar Agarwal (Retd.) Sri Srinivas Garimella, Meela Jayadev Member, Managing 22 | FTCCI Proceedings Vinod Kumar Agarwal Committee, FTCCI Subba Raj Gowra Editor ARTICLES Lakshmikanth Inani T. Sujatha, Dy. CEO Amdiyala Sudhakar 31 | Union budget 2021 A. Prakash Printed and published by 34 | The shipping sector is at sea Avinash Gupta Tadepalli Sujatha, Dy. CEO Devata Rama Kumar on behalf of The Federation of 44 | FTCCI classifieds Telangana Chambers of Abhishek Tibrewala, Commerce & Industry (FTCCI). 45 | Press Coverages Sanjay Kumar Agarwal Design & Layout Rupesh Agarwal A.Srinivas Musunuri Ramakrishna Prasad Raj Kumar Agrawal Printed at Sri Jain Printers Suresh Kumar Singhal [email protected] Prem Chand Kankaria Published at P.Prem Kumar Federation House, 11-6-841, Krishna Kumar Maheshwari Red Hills, FAPCCI Marg, Manish Surana Hyderabad – 500004, Telangana (India). V.V. Sanyasi Rao Prakash Chandra Garg Ph: 23395515 to 22 (8 lines) CA Naresh Chandra Gelli V e-Mail: [email protected] website: www.ftcci.in CA Suresh Kumar Jain Challa Gunaranjan The views expressed by CA Abhay Kumar Jain the authors in their articles published in this magazine Radha Krishan Agarwal are their personal views and Dr. K. Narayana Reddy do not necessarily reflect the Bhagwati Devi Baldwa views of FTCCI. CA Ritesh Mittal FEEDBACK P. Krishna We would like feedback/ R. Ravi Kumar comment from readers to enable us to improve our Rajendra Agarwal offering write to us at Srinivas Garimella [email protected] February 10, 2021 | FTCCI Review | 5 6 | FTCCI Review | February 10, 2021 President’s Desk Dear Members

he month that’s gone by has witnessed Bharat Yojana, healthcare as several key changes in the perceptions a percentage of the overall and expectations of policy makers as well remains low at 1% for a country as people. The Economic Survey 2020-21 like India and we do hope that Thas predicted a ‘V’ shaped growth, indicating that the sector receives more and economy will witness a sharp increase in the coming more allocations in the coming years after experiencing a sharpest contraction of budgets. 23.9 percent in the first of 2020-21. It is also appreciative factor The projected growth rate of 11.5% for India in 2021 that government is not much by IMF shows the pace at which Indian economy is worried about fiscal deficit. rebounding after most unfathomable global health When the country has a emergency experienced in modern history across large workforce employed in the world. India is the only major economy of the the informal sector, counter-cyclical fiscal policy world to register a double-digit growth in 2021, IMF becomes even more paramount. As Krugman said, followed by China with 8.1 per cent growth pointed, sustained, productive program of permanent in 2021. stimulus directed towards public investment, in both physical and human capital, is the need of the hour. There is also good news on GST front as in January Thus estimated fiscal deficit of 6.8% for 2021-22 collections touched a high of Rs 1.2 lakh crore which should not worry government. indicates that economic recovery is holding ground post-Diwali season as well. While striving for improving position in Ease of Doing Business rankings, govt of India should focus on Exit The Budget 2021-22 has given right direction to Policy for industries and businesses that is largely achieve growth and deviated from the common a neglected area so far. impression of populist exercise. The Finance Minister has kept the focus on growth and clean book- We started off 2021 on a very positive note and with keeping rather than giving tax-doles. The focus on the Covid-19 vaccine getting administered to all in health care and infrastructure in the allocation of next few months, I am confident that India, already funds help improving the health infrastructure and on to growth track, will speed up the momentum the latter in generation of mass employment. and put behind the low growth rates in the coming years. Considering enormous amounts spent by Central government to combat Covid-19 pandemic, the I congratulate all the FTCCI Excellence Awards trade and Industry feared that the government winners in the various categories and assure that may increase taxes or levy a Covid cess. But to Federation is committed to encouraging talent and the pleasant surprise FM has not resorted to any efficiency. FTCCI thank our young, visionary & additional cess/tax. Dynamic Minister Sri KTR for his gracious presence at the award ceremony. The stock markets, which are one of the barometers to gauge economy, gave thumbs up to budget rising I request all the members to strengthen our voice by whopping 1197 points to reach 49792.72. After and participate in large numbers in all activities of 1999, the markets closed in positive on the budget Federation. day. But, despite a proposed outlay of Rs 2,23,846 crore on healthcare in FY22 and another Rs 64,180 crore Ramakanth Inani that is to be spent on PM’s Atmanirbhar Swasth President

February 10, 2021 | FTCCI Review | 7 Power News Budget 2021: FM announces Union Budget 2021-22: power discoms’ revival scheme India to launch Hydrogen Energy Mission with outlay of Rs 3.05 lakh cr for 5 yrs With the announcement, India has source is seen as the next big thing Experts said the budget puts additional joined the race for producing the as its usage would lead to zero pressure on discoms to improve by next big energy source emissions. With the announcement providing the choice of suppliers Union Minister for Finance Nirmala February 1, India has officially joined to consumers through a special Sitharaman announced that the the race. framework Hydrogen Energy Mission will be “Green hydrogen, produced with Finance Minister Nirmala Sitharaman launched in 2021-22, during her renewable electricity, is projected in her Budget speech announced a budget speech February 1, 2021. to grow rapidly in the coming years. revamped scheme for reform of the “Prime Minister Narendra Modi, while Many ongoing and planned projects power distribution sector that will be speaking at the Third Re-inVest point in this direction. Hydrogen from launched with an outlay of Rs 3.05 lakh Conference in November 2020, renewable power is technically viable crore and implemented over the next had announced plans to launch a today and is quickly approaching five years. comprehensive National Hydrogen economic competitiveness,” a She said the scheme will provide Energy Mission. It is now proposed to 2019 document titled, Hydrogen: A assistance to the discoms for launch a Hydrogen Energy Mission in Renewable Energy Perspective by infrastructure creation including 2021-22 for generating hydrogen from the International Renewable Energy prepaid smart metering, feeder green power sources,” Sitharaman Agency had said. separation and up-gradation of the said. “The rising interest in this supply power system. “Green Hydrogen Mission is not only option is driven by the falling costs She said there is a need to provide essential to decarbonise heavy of renewable power and by systems choice to the consumers by providing industries like steel and cement, it integration challenges due to rising competition, adding that the also holds the key to clean electric shares of variable renewable power distribution companies all over the mobility that doesn’t depend on supply. The focus is on deployment country are monopolies. “A framework rare minerals,” Ulka Kelkar, director, and learning-by-doing to reduce will be put in place to give consumers Climate, World Resources Institute, electrolyser costs and supply chain alternatives to choose from among India, told Down To Earth. logistics. This will require funding. more than one distribution company,” Policy makers should also consider Moreover, the hydrogen that the FM said. how to create legislative frameworks minister talked about was to be Commenting on the development, that facilitate hydrogen-based sector generated from green sources. experts said the budget puts coupling,” it added. additional pressure on discoms to “Hydrogen can be generated from Focussing on the production of improve by providing the choice of many sources. But what the minister green hydrogen in India would mean suppliers to consumers through a talked about was the hydrogen significantly ramping up the current special framework. sources from renewable sources,” renewable energy infrastructure “This has been pending for a long time Samrat Sengupta, director, Climate across the country, according to and is welcome and will require the Change and Renewable Energy experts. separation of carriage and content,” programme, Centre for Science and Somesh Kumar, Partner and Leader, Environment, a Delhi-based non- “Green hydrogen energy is vital Power & Utilities, EY India said. profit, said. for India to meet its Nationally Determined Contributions and ensure The Finance Minister said the power The emphasis on hydrogen in regional and national energy security, sector has seen “remarkable” reforms the budget was in line with the access and availability. Hydrogen can in the past six years. In that period, the technological development in the act as an energy storage option, country has added 139 GW of installed global north and with a long-term which would be essential to meet capacity, connected an additional 2.8 vision towards reduced dependency intermittencies (of renewable energy) crore households, and added 1.4 lakh on minerals and rare-earth element- in the future,” Pawan Mulukutla, circuit kilometer transmission lines. based battery as energy storage, director, Electric mobility programme, https://energy.economictimes.indiatimes. Sengupta added. com World Resources Institute, India. Hydrogen energy technologies across the world have still not become https://www.downtoearth.org.in/news/ commercially viable, but the energy energy

8 | FTCCI Review | February 10, 2021 Death of diesel looms as carmakers accelerate to economic activities are now at pre- electric future pandemic levels. They think that the power demand growth would be more robust and consistent in coming months. After a gap of six months, power consumption recorded a year-on- year growth of 4.5% in September and 11.6% in October. In November, the power consumption growth slowed to 3.12% mainly due to early onset of winters. From less than 10% of output in So, in the midst of a pandemic and In December, power consumption 2020, electric motor production with the level of consumer demand grew by nearly five percent. Last week, at Tremery will double to around for battery-driven cars still uncertain, Power Minister R K Singh announced 180,000 in 2021, and is planned to automakers from Volkswagen to Nissan that peak power demand touched are ditching diesel models and ramping a record high of 188.45 GW and will reach 900,000 a year - or more than up output of electric drives. surpass the 200 GW mark very soon. half the plant’s peak pre-pandemic Singh had tweeted on January 29, output - by 2025. “2021 is going to be a pivotal year, the first real transition towards the world “The power demand and supply surged He world’s biggest diesel engine of electric models,” said Laetitia Uzan, to a new high of 1,88,452 MW at 9:42 factory in Tremery, eastern France, a representative for the CFTC union am on 28th January 2021. The rate is undergoing a radical overhaul - it’s at Tremery. at which we are going, we shall cross 2,00,000 MW very soon”. switching to make electric motors. But for Tremery’s 3,000 workers, and From less than 10 per cent of output the wider car industry, there’s an added On January 20, power demand had in 2020, electric motor production at complication. touched a record high of 187.3 GW. All-India peak power demand had Tremery will double to around 180,000 Electric motors only have a fifth of the touched a record high of 182.89 GW in 2021, and is planned to reach 900,000 parts of a traditional diesel engine, on December 30 last year. a year - or more than half the plant’s putting a question mark over jobs. peak pre-pandemic output - by 2025. According to data from the power Uzan acknowledged a risk that The shift is testament to a car industry ministry, the peak power demand met fewer staff may be needed, but was in flux. Demand for diesel cars has (the highest supply in a day) during optimistic that could happen “quite slumped since a 2015 pollution scandal, January last year stood at 170.97 GW. naturally” as workers retire without while tough new EU regulations, which Thus it grew by nearly 11% in January being replaced. fine carmakers for exceeding emissions this year. limits, are pushing them to make more https://energy.economictimes.indiatimes. The rising power demand shows electric models. com/news/power revival in economic activities, leading to higher commercial and industrial demand, which was affected due to Power consumption grows nearly 11% at 189.64 GW in January the pandemic. The government had 10.2% in January 2021 compared to 170.97 GW in January imposed a nationwide lockdown on 2020. The 189.64 GW peak power March 25, 2020, to contain the spread Peak power demand also recorded a demand recorded on January 30 was of COVID-19. double digit growth of nearly 11% at also all-time high so far. After a gap 189.64 GW in January 2021 compared of six months, power consumption Power demand started declining from to 170.97 GW in January 2020 India’s recorded a year-on-year growth April as economic activities were power consumption grew at a three- of 4.5% in September and 11.6% in disrupted due to COVID-19. month high rate of 10.2% at 111.43 billion October. In November 2020, the power The pandemic affected power demand units (BU) in January 2021, showing consumption growth slowed to 3.12% for five months in a row from April to spurt in economic activities, according mainly due to early onset of winters. August 2020 to official data. Experts said that the double digit The demand recovered from Power consumption in January 2020 growth of 10.2% in power consumption September onwards. Peak power was 101.15 BU. and all-time high peak power demand demand met grew at 1.7% in Besides, peak power demand also of 188.45 GW in the month of January September, 3.4% in October, 3.5% recorded a double digit growth of give sufficient evidence that most of in November and 7.3% in December.

February 10, 2021 | FTCCI Review | 9 ECONOMY Watch

Telangana’s economy bounces back faster than most others: Economic Survey in Parliament

According to the survey, the growth of Telangana’s Net SDP was the country the only major economy 12.7 per cent, and the national average 7.2 per cent; the per capita of the world to register a double-digit growth this year amidst the corona Net SDP was Rs 2,28,216. virus pandemic. was 37 per cent. The International Monetary Fund’s growth projections for India in its Survey break-up latest World Economic Outlook Update According to the survey, the growth of released reflected a strong rebound Telangana’s Net SDP was 12.7 per cent, in the economy, which is estimated to and the national average 7.2 per cent; have contracted by 8% in 2020 due to the per capita Net SDP was Rs 2,28,216, the pandemic. as against the national average of Rs China is next with 8.1% growth in 2021 1,34,226. Meanwhile, the growth of followed by Spain (5.9%) and France per capita Net SDP was 11.6 per cent (5.5%). Revising its figures, the IMF with the national average being 6.1 said that in 2020, the Indian economy per cent. Telangana made a V-shaped recovery is estimated to have contracted by after COVID-19 had adversely impacted The services sector’s contribution to eight per cent. China is the only major its economy and interstate trade. “The the GSVA of the State stood at 65.19 country which registered a positive recovery in revenue collections was per cent in 2019-20. Telangana’s growth growth rate of 2.3% in 2020. quick in States such as Telangana in GSVA was 10.25 per cent, placing it India’s economy, the IMF said, is and Andhra Pradesh, with the value second in the country after Tripura. projected to grow by 6.8% in 2022 of E-way bills per person hitting The share of services sector in GSVA and that of China by 5.6%. previous year’s levels in June,” said the has been constantly rising in the State. Economic Survey tabled in Parliament In 2017-18, it was 63.2 per cent and With the latest projections, India on Friday. The survey said that shocks the growth rate was 10.7 per cent. In regains the tag of the fastest to services-led informal sectors 2018-19, it rose to 64.7 per cent with a developing economies of the world. put States like Delhi and Telangana growth rate of 11.2 per cent. IMF Managing Director Kristalina in a vulnerable position during the The Economic Survey also lauded Georgieva had said that “What we see pandemic. But Telangana recovered Telangana’s handling of the COVID-19 is that transition, combined with policy faster than most States in the country, health crisis, stating it was the second support, seems to have worked well. it added. best after Kerala in saving the most Why? Because if you look at mobility The Economic Survey also addressed number of lives during the pandemic. indicators, we are almost where we the intensity of interstate variations “With good healthcare facilities and were before COVID in India, meaning in the impact of COVID-19. The GVA stringent lockdown strategies, the that economic activities have been shock intensity - measured as a share State could reduce the fatalities by a revitalized quite significantly,” the IMF chief said. in the Gross State Value Added (GSVA) great margin,” the survey said. - on the State’s agricultural sector in As per the report, for every 100 deaths Commending the steps being taken 2019-20 was 12.9 per cent. The same on estimated due to COVID-19, the State by the Indian government on the mining was 3.1 per cent, manufacturing actually recorded only 22.9 deaths, monetary policy and the fiscal policy 13 per cent, construction 4.4 per cent, ensuring that nearly 77 deaths were side, she said it is actually slightly and services 65.3 per cent. prevented with timely action. above the average for emerging markets. The Economic Survey figures showed VIRUS CONTROL that Telangana’s performance was “Emerging markets on average have above the national average in several The Economic Survey patted provided six per cent of GDP. In India indicators, like the Net State Domestic Telangana for its efforts at tackling this is slightly above that. Good Product (SDP). However, it fared below the pandemic. It said that the State’s for India is that there is still space the national average in public sector strict lockdown measures helped it to do more,” she said, adding that banks (PSB) lending to priority sector. minimise casualties she is impressed by the appetite The percentage share of advances to IMF projects impressive 11.5% growth for structural reforms that India is priority sector in total bank credit of rate for India in 2021 retaining. PSBs up to March, 2020, was just 28 The IMF projected an impressive 11.5% https://www.financialexpress.com per cent, whereas the national average growth rate for India in 2021, making

10 | FTCCI Review | February 10, 2021 which is made up of cess proceeds, Unctad report: India sees sharpest rise in FDI inflows among to be used for compensating states in key nations case of shortfall below their protected revenue each year. This guarantee Developing economies drew as by Russia (96% drop), Germany (61%), of revenue protection is baked into much as 72% of global FDI in 2020 Brazil (50%), the US (49%), Australia the law and the states are entitled – their highest share on record. (46%) and France (39%). to a 14% y-o-y growth in their GST revenue. Asian nations did particularly well, The Unctad report also warned attracting $476 billion in FDI last that uncertainty about the Covid- However, since last year, the year. 19 evolution will continue to compensation cess fund has proved India and China were two major hamper global FDI inflows in 2021, to be inadequate for the purpose. The “outliers” in a gloomy year for foreign “threatening sustainable recovery Central government proposed this direct investment (FDI ), as global prospects”. year that it would pay states through market borrowing but many states inflows plunged 42% on year in 2020 Developing economies drew as didn’t agree with the Rs 1.1 lakh crore to $859 billion, the lowest level since much as 72% of global FDI in 2020 estimated shortfall. the 1990s, according to the latest – their highest share on record. Unctad report. Asian nations did particularly well, The Centre insisted that it would only While India witnessed a 13% year- attracting $476 billion in FDI last pay to the extent of shortfall due to on-year rise, the highest among key year. GST implementation issue and not Rs 1.85 lakh crore which is the revenue nations, in FDI inflows in 2020, China’s Responding to the report, commerce deficit that includes the pandemic- rose 4%. Of course, in absolute term, and industry minister Piyush Goyal induced slowdown. After the initial China remained way ahead, with an tweeted: “India Means Business: logjam, all the states eventually inflow of as much as $163 billion, Despite Covid, FDI inflows into came on board with the borrowing while India’s stood at $57 billion. India grew at fastest rate among scheme. Inflows into India were boosted by top economies. With double-digit those into the digital sector, the FDI growth of 13% in 2020, the world In addition to providing funds through report said. Analysts have pointed is beating a path to India.” the special borrowing window to out that a sizable chunk of these was meet the shortfall in revenue on drawn by Reliance Jio alone. https://www.financialexpress.com/ account of GST implementation, the economy/unctad-report-india-sees- Central government has also granted The UK and Italy saw an over 100% sharpest-rise-in-fdi-inflows-among-key- additional borrowing permission crash each in FDI inflows, followed nations/2178663 equivalent to 0.50 % of Gross States Domestic Product (GSDP) to the states choosing option-I to meet Centre releases 13th installment of GST compensation GST compensation shortfall to help payment to states them in mobilising additional financial resources. The Central government has released instalment, the remaining money (Rs the thirteenth installment of Rs 6,000- 483.4 crore) has been released to the https://www.financialexpress.com/ economy/centre-releases-13th-instalment crore GST compensation payment three Union Territories with a legislative to the states, the government said assembly (Delhi, Jammu on Monday. The states and Union & Kashmir & Puducherry) Territories have so far received Rs which are members of 78,000 crore of Rs 1.1 lakh crore to be the GST Council. disbursed by the Centre this fiscal. “The remaining five The Central government borrows the states, Arunachal funds under a special window and Pradesh, Manipur, passes it on to states in back-to-back Mizoram, Nagaland and loan arrangement. The interest rate Sikkim do not have a gap for the latest loan installment was in revenue on account 5.31% while the average rate for the of GST implementation,” entire borrowing so far is at 4.75%, the government said. the government said. Although GST regime While 23 states have been allotted Rs has a mechanism of 5,516.6 crore in this round of weekly compensation cess fund,

February 10, 2021 | FTCCI Review | 11 ExcellencePresentation of FTCCI Awards Chief Guest : Sri K. T. Rama Rao Hon’ble Minister for Industries, Information Technology, Electronics & Communications, Municipal Administration & Urban Development, Government of Telangana

23rd January, 2021 Talking about TSiPASS, he said that existing projects like the Pharma City, 13,826 approvals were given and Rs the Kaleshwaram project and other FTCCI Excellence Awards were 2.60 lakh crore worth investments projects too have not been heard. presented on 23rd January 2021 at were attracted and 14 lakh Kaleshwaram Project is Federation House by Sri K. T. Rama direct employment was The the largest multi-stage Rao, Hon’ble Minister for Industries, provided. Telangana Government of irrigation project. Information Technology, Electronics Telangana is exploring has been growing in Nowhere in the & Communications, Municipal many potential collaborative spite of not getting world has this Administration & Urban Development, opportunities with industries the required kind of project Government of Telangana. following looking towards India to set up their support from the completed in is the gist of Speech given by Hon’ble manufacturing units and preparing a Centre. We will three years. Minister: Blue Book validating businesses and continue to grow, validating industries sector-wise and Telangana State government had bring reforms and suggested FTCCI to work with industries did it and was allocated Rs 1,500 create new of FTCCI and department for joint hoping for the crore for industrial validation Government. The exercise right support incentives help industries in Telangana to come from but could not benchmarks. improve their credentials and the Government i m p l e m e n t He urged the thrive of India. that because Centre to encourage Hyderabad was touted to of the progressive States which get the Information Technology pandemic and have been dominating in terms Investment Region (ITIR) to attract he assured to of benchmarking policies with investments. The ITIR was promised provide the pioneering initiatives. to Telangana in 2014 and Telangana benefits Though the Government had had been pursing with the Centre for n o w . earlier announced some big approving the project. However, even industrial corridors, they have that project has not seen light of the not gone through Hyderabad or day till today. Telangana or other southern The government of India sanctioned States. The pleas from industrial corridor DMIC connecting Telangana for Delhi and Mumbai, but no similar things support to are conceived to connect Hyderabad and other Southern cities despite Telangana Government seeking approval of industrial corridors connecting Hyderabad and Nagpur, Bengaluru, Ramagundam and Warangal and allocation of

12 | FTCCI Review | February 10, 2021 funds. These would usher in more ineffective as not even 20 persons had in IT, the State is also stamping its development of the region. got benefit under that package. He said authority in rice production. Now, Many companies are looking to exit that the industrialists and governments Telangana boasts of highest rice China or set up their manufacturing in are waiting for a good package to revive cultivation and it has also started India. Pharma City is one such cluster industry to bounce back. tapping the rice export opportunities. Telangana is creating in 19,000 acre. Power and water The State is focusing on getting the basics right in education and health In conceiving this project, we not Industries did not have power and and the maternal mortality rate has only thought of Telangana but also of were forced to take a power holiday come down significantly. India’s interests. This will allow reap for two days in a week seven years ago, the economies of scale. The Kakatiya when the new State Telangana was Industry approvals Textile Park is the biggest textile park formed. This affected the employment The State has given approvals through in India in the making. Telangana has opportunities of several labour. But the TS-iPASS to about 13,800 units. This three electronic manufacturing clusters now Telangana is a power surplus would mean employment opportunities and they are all full. State. With Kaleshwaram Project, the to about 14 lakh people. The State Though a vaccines needed for the State has also secured the water needs did not bring out negative legislation world are being made in Hyderabad, till 2050, he said adding that Telangana that makes it mandatory to appoint there is no vaccine testing centre here. did take any vindictive approach and locals. Instead, it was giving additional They have to be carried out at Kasauli ensured that Hyderabad retained the incentives to encourage companies to in Himachal Pradesh, which is at a cosmopolitan fabric. Power apart, the create local employment. The State distance of 1,200 km, from the vaccine State’s focus was on ensuring law and will also train the local youth in the skill making hub of Hyderabad. He urged order and reviving the industries. sets at no cost to the companies. the Centre to set up a vaccine testing Agriculture centre here. He mocked the Atma Apart from making significant progress Nirbhar package, stating that it was Proceedings of FTCCI Excellence Awards Sri Ramakanth Inani, President, that FTCCI has done its bit during the Winners. FTCCI congratulated the Telangana Covid-19 induced lockdown to bring Several Micro and small units, Government for their dedicated the difficulties faced by the industry unorganized manufacturing and leadership in promoting the State and trade to the notice of the Union service sector units have suffered as most progressive State and and State governments and submitted hugely due to COvid-19 pandemic ensuring that the State remains at number of representations to the and they are still struggling to come the top in Rankings in the country. Ministries of MSME, Finance, Industry out of the crisis. Various schemes He also complimented for doing a and Commerce, various regulatory and assistance announced under commendable job in attending to bodies and RBI, apart from having Atmanirbhar Bharat for MSMEs are industry problems always and more Video Conference’s with various insufficient and ineffective and particularly during the lockdown Union Ministers. He also informed many of the units are still reeling period. The instant response and that FTCCI members have risen to under crisis. Some concessions pro-activeness to resolve the issues occasion and generously contributed / subsidies are urgently needed helped the industry sail through the to CMRF both during COVID and Flood. to these units – by way of waiver / difficult times. He also mentioned He congratulated all the Award

February 10, 2021 | FTCCI Review | 13 reduction in different charges, fees motivated. FTCCI considers such Telangana focused on growth through and requested for allotment of more encouragement and promotion of industrial development by facilitating funds to Industrial Promotion in the activities as one of its important operations at units allowed to function upcoming State Budget for FY 2021- objectives. The awards are being given during lockdown, hand holding others 22. Also requested to redress pending in recognition of proven excellence/ when unlock began while continuing issues such as road connectivity to outstanding contribution in the areas to attract fresh investments. Many IALAs, resolution of industrial property of Industry, Innovation, Research & industries have faced problem after tax issue, HMDA setbacks rules, & Development, Association/Chamber, the migrant labour left. Several of them exemption of trade license fee for Individual Achievement viz. Woman have returned now and industries have manufacturing units. There are hassles Entrepreneur, Science/Engineering, started abosorbing now. Telangana is from Gram Panchayats both during Outstanding self-sustaining effort a leader in key emerging technologies construction period and arbitrary by a Differently Abled Person and as Hyderabad already has a conducive enhancement in property taxes and Social Welfare and Differently Abled ecosystem nurtured over the years. payment thereof; High power tariff, Services. The FTCCI has an exclusive MSMEs in Telangana are still not Cross Subsidy Surcharge, Additional Awards Committee consisting of completely integrated with the digital Cross Subsidy charges on Open Access experts drawn from various fields to world. Effective use of digitalization leading to higher cost of power for select the Awards. He thanked all the will hold the key to sustainable growth manufacturing sector in state. Due Members of the Excellence Awards for MSMEs in the post COVID-19 to this, manufacturing sector in the Committee of the Federation for scenario. State are not able to compete with taking up the responsibility and their The Eminent Jury of FTCCI Excellence other States. expertise in selecting the best entries Awards Committee, Past President Sri He also requested that TSIIC should for various Awards. He congratulated O.P. Goenka and Deputy Director, Mrs. make available lands to entrepreneurs and commended all the Award Winners NVS Lakshmi were felicitated for their on lease basis also, as in vogue in for their relentless effort in achieving outstanding services to FTCCI and its other industrially advanced states a significant milestone of success. members. Thereafter awards were like Maharashtra & Gujarat and also He also lauded the proactive policies presented to the winners in various in UP & MP where at the time of lease of Telangana Govt. more particularly categories. T-Hub, safe drinking project and agreement itself, the sale value is Sponsors, Sudhakar Pipes & Fittings, irrigation of Mission Bhagiratha, determined. The allottee can any Godrej Jersey, DSL Infra, Shri Salasar 2BHK for homeless, Rhythu-Bandhu time make it free hold by paying Developers, Mahalakshmi Profiles, to support farmers are very successful the pre determined sale price. The Inani Securities, Dhanlaxmi Iron schemes of the government. allottee has to compulsorily utilize the Industries, Tripura Construction, Garg land so leased else heavy penalty & Sri Jayesh Ranjan, IAS., Principal Industries, Rama Conductor’s, Shrinath confiscation. With the passing of time, Secretary, Industries & Commerce, Rotopack and Dukes, extended their he informed that the activities of FTCCI Information Technology, Electronics support in making this event a grand is also growing and is conducting many and Communications Department, success. skill development programs and also in Govt. of Telangana lauded the FTCCI Sri K. Bhasker Reddy, Senior Vice final stage of setting up a Alternative for continuing the Awards and President, Sri Anil Agarwal, Vice Dispute Resolution ADR Centre ) for recognizing the achievers. Covid President, and Ms.Khyati Naravane, which MOU was signed with NALSAR has brought about many challenges CEO of FTCCI also participated and University of Law, Hyderabad. To for the businesses, especially for addressed the Function. meet our growing activities, existing the MSMEs, in effective functioning. infrastructure is not sufficient and requested to expedite the allotment of alternative land in lieu of existing plot at Jubilee Hills, Hyderabad. Sri Ravindra Modi, Chair, FTCCI Excellence Awards Committee said that FTCCI’s Excellence Awards have become a very important medium through which different fields of industrial activities such as productivity, research and development, export performance, pursuits in scientific inventions and discoveries are encouraged and

14 | FTCCI Review | February 10, 2021 FTCCI Excellence Award Winners

1. Excellence in Industrial Productivity - M/s.Mishra Dhatu Nigam Ltd., Hyderabad M/s. Mishra Dhatu Nigam Ltd., Hyderabad 12. Excellence in Research & 2. Excellence in All Round Performance - Development (Micro & Small Enterprise) - M/s. Hindustan Aeronautics Ltd., Hyderabad M/s.Varsha Bioscience and Technology India P.Ltd., Hyderabad. 3. Excellence in Agro Based Industry - 13. Excellence in Research & M/s. Eggway International Asia P.Ltd., R.R. Dist. Development (Micro & Small Enterprise) - Commendation Award 4. Excellence in Marketing Initiatives- M/s. A.G. Bio Systems P.Ltd., Hyderabad. M/s. Hyderabad International Trade Expositions Ltd., Hyderabad 14. Excellence in Information Technology (IT) - 5. Excellence in Export M/s. Tata Consultancy Services Ltd., Hyderabad Performance - M/s. Kalyani Rafael Advanced Systems (P) Ltd., 15. Excellence in Association / Chamber for Serving Hyderabad Industry, Commerce and Economy - M/s. Telangana Chamber of Events Industry, 6. Excellence in New and Renewable Energy Hyderabad. Development/Application - M/s. Surana Telecom and Power Limited, 16. Excellence in Science or Engineering - Secunderabad Prof.Dr. Mohammad Javed Ali, Clinician-Scientist, L.V. Prasad Eye Institute, Hyderabad 7. Excellence in Employee Welfare Initiatives - M/s. JK Fenner (India) Ltd., 17. Outstanding Woman Sangareddy District Entrepreneur - Ms. Bhagwati Devi Baldwa, Proprietrix, Shri 8. Excellence in Corporate Social Kartikeya Pharma, Hyderabad Responsibility - M/s. Mylan Laboratories Ltd., Hyderabad 18. Outstanding Self-Sustaining Effort by a Differently Abled Person - 9. Excellence in Product Innovation Sri M.S. Chandrakanth Sagar, Proprietor, Pranav M/s. HSIL Ltd- AGI Clozures, Sangareddy District Enterprises, Hyderabad 10. Excellence in Product Innovation (Micro & Small 19. Excellence in Social Welfare Initiatives for Women Enterprise) - Empowerment - M/s. Befach 4X Private Ltd., Hyderabad M/s. CR Foundation, Hyderabad 11. Excellence in Research & Development -

February 10, 2021 | FTCCI Review | 15 FTCCI Excellence Award Winners 1

2 3

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8 9 16 | FTCCI Review | February 10, 2021 10 11

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18 February 10, 2021 | FTCCI Review | 1719 Recognition of 25 years of outstanding service and contribution to FTCCI

On behalf of Sri OP Goenka, Sri Pranav Goenka receiving the award Smt. NVS Lakshmi, Deputy Director

Presentation of Memento to Jury Members Honoring Past Presidents of FTCCI

Hon’ble Justice Sri V.Bhaskar Rao, Retd.Judge, High Court of Andhra Pradesh

Sri Gowra Srinivas, President (2017-18)

Dr.M.Gopalakrishna, IAS.(Retd.)

CA Arun Luharuka, President (2018-19)

Prof. Abhirama Krishna, Director General, Badruka Group of Institutions

Sri Karunendra S.Jasti, President (2019-20) 18 | FTCCICA. ReviewShankar | February Bala, Chartered 10, 2021 Accountant February 10, 2021 | FTCCI Review | 19 FTCCI Representation

Shri K.T. Rama Rao, Hon’ble Minister of Industries, MA & UD, IT & EC Govt. of Telangana 5th Floor, BRKR Bhavan, Hill Fort, Adarsh Nagar, Hyderabad, Telangana

Respected Sir,

Sub: MA & UD--The Telangana Municipalities Trade Licenses (Regulation and Renewal) Rules 2020 – Enhancement of Trade License Fee on square ft basis & width of the abutting road – Request for exempting Industrial establishments – reg… Ref: 1. Our representations dated July 29, 2019, and April 3, 2018 (FTAPCCI/IDC/ 482 /2017-18) 2. G.O. Ms. No. 147 MA & UD Dept, dated 22.09.2020 May we bring to your notice the referred G.O where it has been mentioned that industrial Establishments are to pay a minimum rate of license fees between Rs. 4 /- per sft to Rs. 7 /- per sft for built up area including Manufacturing blocks / Q.C buildings / sheds/Solvent storage area / Boiler house / administrative blocks etc. irrespective of the size of the unit whether micro, small, medium or large. The Federation of Telangana Chambers of Commerce and Industry (FTCCI) has differed (ref 1) in the way the Trade License fee is calculated on the basis of Sq Ft & Road Width basis ever since the proposal was made by Trade License Reforms Committee and the issuance of circular by GHMC for the implementation of recommendation vide its circular No. 467/TL/GHMC/2016 dated 11/08/2016 and submitted number of representations on the same.

We wish to bring it to your notice that: 1. Previously the Trade License fee was a maximum of Rs 7000 for three years term as per the Panchayat Raj and Rural Development G O. MS 16 dated 10.01.1996. 2. Subsequently the Trade License renewal fee charge was Rs.7000/- per year in and around Municipalities of Hyderabad by GHMC. 3. The maximum ceiling limit of Rs 7000 for Trade License as per the GHMC Resolution No.2 dated 09.01.2015 has now been removed through GHMC Resolution of Standing Committee N0.173 dated 14.11.2019. 4. The imposition of Trade License fee at Rs 3 to 7 per sft to factories seems unreasonable as the factories have more open area /storage area / large utilities area as well as parking areas due to future capacities and mandatory regulations. Large built up spaces are required by factories for production, people, processes, storage and importantly to ensure that adequate safety procedures are followed. The fact that industrial establishments are manufacturers generating large employment and paying various kinds of taxes may also is appreciated. 5. Please find below the table that details the abnormal increase in the trade license as per the new GO based on size of industrial establishments:

20 | FTCCI Review | February 10, 2021 Old Rate New Rate Approx Trade Approx Built-up Trade License # Industry / Area in Sft @60% License fee License fee / Fee previous to Year per new G O Factory Type of plot area rate Rs/sq.ft Rate Increase by GO MS No. 147 MS No. 147

1 Small (Plot Size 26136 ~ 130680 Rs 7000/- 4 Rs 1 Lakhs ~ 5 13 to 70 times < 5 Acres) Lakhs 2 Medium (5 ~ 10 156816 ~ 261360 5.5 Rs 9 Lakhs ~ 14 Rs 7000/- 127 to 200 times acres) Lakhs 3 Large (10 Acres 287496 ~ 522720 Rs 20 Lakhs ~ 37 Rs 7000/- 7 & Above) Lakhs 284 to 528 times

Notwithstanding the above Trade License Fee, it may please be noted that Industrial Establishments are to pay Inspector of Factories Fee (which has increased by 3 times), Electrical inspection fee, License fee from Pollution Control Board, Labour License fee etc. We are proud that our Telangana state is foremost in “Ease of Doing Business” while the ‘Cost of Doing Business’ in our state has gone up highly and may make industrial establishments unviable. It is pertinent to note the recommendation made by World Bank that Industrial licensing and renewal fees should only be to cover the cost of processing and not for treating them as sources of major revenue. Sir, may we bring to your attention that in the state of Karnataka, the Greater Bangalore Municipal Corporation amended the Karnataka Act 22 of 1964, section 256, sub-section (1) exempting all MSME units registered under the MSME Act 2006, and large industries who have filed IEM from obtaining Trade License. While the neighboring State has reduced the cost of doing business our Telangana State has imposed huge increase in amounts of fees / charges payable by Industrial Establishments. Therefore, we request you to: * Reconsider fixing the trade license fee with reference to location and floor area (Road Width and Square Feet) for general establishments or offices or traders Point 4, Table No ii). This amounts to another ‘property tax’ for the owners and hence requests you to revert to old system of maximum ceiling limit. * To exempt industries from obtaining Trade License (point 4, Table iii) based on the facts and circumstances given above and * To amend GO Ms. No. 147 dt 22.09.2020 especially during these difficult times.

Thanking you in advance. Yours sincerely,

Ramakanth Inani President, FTCCI

February 10, 2021 | FTCCI Review | 21 FTCCi Webinars

FTCCI jointly with Asa Bhanu Japan Centre organized the virtual Seminar on India-Japan Business Promotion, Opportunities & Road Ahead - Post Covid

explained on the current status of business and major ongoing projects. Asa Bhanu is currently working on Japanese supported projects, working on promotion of trade between the countries particularly with the State of Telangana. He also mentioned that the Asa Bhanu jointly worked with FTCCI in business ignitions and exchange, conducting Course on Japanese language. Addressing the members, Mr. TAGA Masayuki, Consul General, Consulate General of Japan at Chennai said that Japan is keen on seeing the increased collaboration and people-to-people connect in the region and encouraged the entrepreneurs to explore business opportunities. Japan is keen to expand its presence in Telangana, due to its investor friendly policies. The relations between two nations have been substantially and continuously improving widely and deeply in nearly all fields. He informed that some Japanese companies like Toshiba have successfully invested in Telangana. He spoke on Japanese involvement 8th January, 2021 in various infrastructure projects of Telangana such as ORR Mr. Ramakanth Inani, President, FTCCI India and Japan of Hyderabad. He said that Consulate-General of Japan are the largest and oldest democracies in Asia, having a in Chennai would like to continue to work with the FTCCI high degree of congruence in religious, political, economic and Asa Bhanu Japan Centre, to make our utmost efforts and strategic interests. The two Governments have also to promote economic activities and cultural exchanges agreed to further cement economic cooperation with India between Telangana and Japan. opening doors to Japanese manufacturing activity and Mr. TAGA Masayuki was happy that FTCCI and Asa Bhanu perhaps, involve Tokyo in ramping up port infrastructure. have taken a lead in organizing Course on Japanese Both countries stand to gain much from cooperation in Language to help entrepreneurs to enhance communication automobile, pharma, chemical, electronics, textile and food and written skills. Mr. TAGA Masayuki also commended processing. In each of these and India can offer a sound the Japanese teaching initiative and level of Japanese manufacturing base and market for Japanese. training. Mr. Rajendra Agarwal, Chair, International Trade Committee, FTCCI suggested the Consulate to take up with Japanese FTCCI said that India and Japan’s collaboration is growing Government in opening a Office of Japan External Trade in sunrise sectors of investment such as food processing, Organization (JETRO) in Hyderabad. healthcare, digital and information technology, etc. As In a Q&A session, numerous inquiries were given by major powerhouses of Asia, the opportunities for shared companies, indicating great interest in entering the growth and success are immense through business and Japanese market and working with Japanese companies, commercial exchanges, thriving startup ecosystem and were clarified by Mr. TAGA Masayuki. ingenious technological solutions and systems, expertise in existing and emerging technologies as well as vast pool Mrs. B. Naganath, Faculty & Trainer, Asa Bhanu Japan Centre of professionals and skilled workforce. and Ms. Khyati Naravane, CEO, FTCCI also participated and addressed the seminar. Mr. B. Rama Bhadra, President, Asa Bhanu Japan Centre

22 | FTCCI Review | February 10, 2021 FTCCI with the support of National Real Estate Development Council (NAREDCO – South) organized a Webinar on Modern Technologies in Construction

9th January, 2021 Mr. Rajan Bhandelkar, Vice President, NAREDCO – West said that “As Pandemic has hit the Real Estate sector very hard, but due to Corona every individual has felt the importance of owning a Home for the security of himself and his family. Technology will help the developers to complete the project in time. Skilling will be very important factor to use the Technology, which help in saving time and achieving the Quality”. Mr. Ramakanth Inani, President, FTCCI said The Construction industry is an important indicator of the development as it creates investment and employment opportunities across various related sectors. It is the third largest contributor to economic growth. Moreover, the industry employs more than 40 million people and has a large pool of low- cost workers. Pre-engineered building systems which emphasizes the need for timely the success story or viability comes space is upbeat over growth in demand completion of projects, adoption of in with large rate of adaptation. The for steel buildings, including from the modern technologies has become the developers should welcome the new residential segment. Pre-engineered, need of the hour. Technologies not technologies faster than before to steel structures that have become a only reduce the turnaround time but deliver in short time without cutting preferred option for factory sheds also, also improve the quality and durability in quality and cost. He stressed that is fast catching up in the commercial of construction, and help in generating creation of skill development is needed building segment too. more interest in affordable housing rather creating labor opportunities. Prefabricated components are projects among buyers. Mr. Prasad Sawant, Head - Engineering increasingly becoming an eminently Mr. Satish Gottipati, Managing Director, and Business Development, JSW improving technology to achieve cost Preca Solutions India Pvt Ltd presented Severfield Structures Ltd (JSSL) effective and speedy construction in on Prefab Construction Methods & presented on Innovations in Steel the construction industry and adopting Prestressed Precast Technology. He Construction. He mentioned that the new construction technologies expressed that despite the pandemic, market share of fabricated structural for economies of scale will enable the construction industry in India is steel work is less than 1% as because affordable housing. expected to post a sharp rebound and its expensive, in a developing country Mr. P. Prem Kumar, Chair, FTCCI grow by at least 10% in 2021. Mr. Satish like India the quality of steel fabrication Infrastructure, Real Estate and Smart mentioned different modern methods is not enough and need to strengthen Cities Committee said construction of construction. the efficiency of structural steel work industry is changing rapidly, and Mr. Kalyan Chakrawarthy Kethana, design. new materials and technologies Head Design Management at Phoenix Mr. Anil Agarwal, Vice President, are being introduced on a regular Turner (PMO), Hyderabad expressed Ms. Khyati Naravane, CEO, FTCCI basis. Execution of construction that for fast phase of construction we and Mr. Srikanth Badiga, Advisor, projects and their timely delivery need to have modernized techniques. Infrastructure, Real Estate and Smart has become a prime concern for He opined that precast method is not Cities Committee also participated. developers. Especially after RERA, largely adapted by the developers and

February 10, 2021 | FTCCI Review | 23 Meeting with His Excellency Mr. Mohammad Hossein Bani Asadi, Consul General of Islamic Republic of Iran

11th Janauary, 2021 Hossein Bani Asadi, Consul General through Afghanistan giving India of Islamic Republic of Iran said Iran an access to global markets. The Mr. Ramakanth Inani, President, FTCCI and India have the potential to cater construction of this port assumes said that FTCCI is working closely to each other’s needs provided the significance as it will allow bypassing with the Consulate General of Islamic businessmen have the exposure to the the route for accessing markets in Republic of Iran, Hyderabad, to promote available opportunities. He offered to Europe and Central Asia and also save the trade between the two countries start barter trade with Iran to facilitate on time and cost of doing business. by organizing interaction meetings the businessmen and to jack-up the with the business delegations on a He hoped that Preferential Trade volume of two-way trade. He said regular basis. FTCCI had also signed Agreement between India and Iran will that the business community in the MoUs with prominent Chambers of be signed soon and this will enhance two countries would have to increase Commerce of Iran, to foster friendship the trade, as both the countries have interaction to share their experiences and to promote trade, investment, huge potential to touch the staggering in the larger interests of the people social, economic, human resource figure of $ 10 billion trade. of two brotherly nations. He said that development, technical and scientific Mr. Khodadad Nejad Asad, First Chambers of Commerce in the two cooperation and all other spheres Consul, Mr. Syed Tamjeed Hyder, countries would have to focus on of economic activity. Business Public Relations Officer, Mr.Niroomand expansion of trade by holding single delegations from FTCCI also visited Ali, former Senior PRO of Consulate country exhibitions and through trade Iran and most of them have entered General of the Republic of Iran., Mr. delegations to each other’s country. into business contacts with their K. Bhasker Reddy, Sr. Vice President counterparts. Speaking on strategic port of Chabahar and Ms. Khyati Naravane, CEO of FTCCI in Iran, he said that it is being developed also participated and presented their His Excellency Mr. Mohammad to build a transport-and-trade corridor views on enhancing the trade.

MEMBERS ATTENTION! Certification of Origin & Attestation of business travel. Export Documents Passport under Tatkal Scheme The Chamber is recognized by the Government FTCCI is being recognized by the Govt. of India of India to issue Certificates of Origin for to issue Verification Certificate to the Owners, non-preferential countries. Export documents are Partners Or Directors of the Companies having also accepted as authentic by the Consular offices Membership with the FTCCI. of various countries and international authorities. Visa Facilitation For details, Please Contact The letters of recommendation are issued to Mr. Firasath Ali Khan, Embassies and Consulates for issue of business visa to representatives of member companies for e-Mail: [email protected], 040-23395515-22 24 | FTCCI Review | February 10, 2021 February 10, 2021 | FTCCI Review | 25 FTCCI and Telangana and AP Tax Bar Association has organized an interactive Meeting with Shri J. B. Mohapatra IRS, Principal Chief Commissioner of Income Tax, AP & Telangana

18th January, 2021 Sri Ramdev Bhutada, President, TAPTBA welcomed Principal Chief Commissioner of Income Tax, AP & Telangana and other Senior Officers of the Department. Sri Ramakanth Inani, President –FTCCI in his welcome address thanked the Income Tax department and its senior officials for directly interacting with members of Trade & Industry twice on the issue of Vivad Se Viswas scheme, to settle the long pending tax disputes and also setting up Help Desk at FTCCI Premises. As a Chamber we have disseminated the contact numbers and email ids of designated authorities for Vivad se in all India as on 4th January, 2021. In Scheme in our state. Viswas Scheme to our members. AP and Telangana settled 3,643cases This Scheme is a good opportunity for Shri Mohapatra in his address informed only which can be improved. With appellants to settle their disputes to that 97,000cases were settled under your efforts and our support we can avoid the uncertainty of outcome of Direct Tax Vivad se Viswas Scheme increase the number of vivid se viswas pending litigation.

Advertisement Tariff for FTCCIReview T heAdvertisement world is here place your Position Rate per Issue Inside Full Page (18cm x 24cm) 7,500 and get noticed Front Inside (Cover Page) 9,500 Back Inside (Cover Page) 9,500 Back Cover Page 11,500 Half Page (18cm x 12cm) 5,000 For Classified (5.5cm x 6.5cm) 750 (+ 5%GST)

FTCCI On every 6 insertions GET Classifieds ONEcomplimentary (6+1)

For Advt bookings Please send your advertisement material along with the Cheque/DD26 | FTCCI in Review favouring | February FTCCI 10, payable 2021 at Hyderabad. Mr.Vinod, Joint Director Ph: 9949869349 e-Mail : [email protected] FTCCI and FAPCCI jointly organized Webinar on how to save 80% or more on medicine expenses & more

22nd January, 2021 Mr. P.R.Somani, founder President The Nizamabad Chamber of Commerce & Industry, Nizamabad in his address explained in three stages. 1. Everybody should know the detail facts about type of medicines and their price structure. 2. They should get confidence regarding quality of medicines 3. Where to get quality cheap medicines. Regarding details facts about medicines he has shown one 15 minutes video clip explaining how he got the idea and how on MRP without any quality issue an FTCCI in his introductory remarks he reached upto Prime Minister level exclusive generic shop. He has also stated that many branded medicines through Shri.Venkaiah Naiduji V.P.of explained that Pradhan Mantri Generic are very expensive are supplied at very India, Shri Sadanand Gowda Minister shops are opened everywhere and that exorbitant price, offering challenge to of Chemical and Fertilizers, J.P.Nadda medicines are manufactured at World low and middle income groups- which then health Minister, Pharma Secretary Health Organisation manufacturing are in majority of our population. and so many other dignitaries. He unit and they are tested at two labs so Indian pharma market is about 50B$ has explained how medicine’s MRP is these medicines are equally or better with CAGR of 15%. 80% may be generic. printed abnormally high upto 3000% than any other medicines. Many big brands also manufacture to 4000% . He has explained them Mr. Ramakanth Inani, President, FTCCI generic medicines like: Sun Pharma, that as on today there is no ceiling in his welcome address stated that the Dr.Reddys lab, Lupin, Aurobindo, cap to print MRP so manufacturers rationalization of trade margin on the Glenmarck,Wockhertz,German are printing abnormal MRP and medicines which are not included in Remedies etc. It is great service to Advertisement Tariff for people are buying on MRP thinking Drug Price Control Order (DPCO) would provide quality medicines at the most that it is controlled by government. help to reduce the prices of about 80 affordable and lowest price. He has explained by putting 30% trade percent formulations in the country. Mr. Anil Agarwal, Vice President, FTCCI FTCCIReview T he world is here place your Margin Cap plus taxes on selling prices The Food and Drug Administration and Ms. Khyati Naravane, CEO, FTCCI Advertisement of manufacturers so that without (FDA) ensures a generic medication were participated in the webinar. Position Rate per Issue affecting the manufacturer profit prices provides the same clinical benefit and of medicine will come down upto 80 to is as safe and effective as the brand- Inside Full Page (18cm x 24cm) 7,500 and get noticed 90%. On his request on instructions name medicine that it duplicates. The CONNECT WITH US! of PMO office Pharma Department ultimate aim of generic drugs policies Front Inside (Cover Page) 9,500 has brought 30% Trade Margin cap are to reduce drug costs, and prevent Like us at Back Inside (Cover Page) 9,500 on cancer drugs an effective from drug shortages and supply disruption 8/3/19 as a result cancer drugs prices which is important to increase the www.facebook.com/ Back Cover Page 11,500 are slashed upto 90%. Similarly he is economical access to drug treatment FTCCIofficial pursuing to being 30% Trade Margin Half Page (18cm x 12cm) 5,000 in low- and middle-income countries. Follow us at Cap on all medicines and devices and MRP printed on Medicines by the www.twitter.com/FTCCI For Classified (5.5cm x 6.5cm) 750 he is confident that all medicines manufacturers are up to 3000% more Follow us at (+ 5%GST) prices will be slashed upto 90%. He on their selling prices and 130 crore has also explained that there is no people of the country are been effected www.instagram.com/ FTCCIofficial/ FTCCI On every 6 insertions GET difference between generic or branded everyday by them especially poor Classifieds ONEcomplimentary (6+1) medicines as they are monitor by FDA. people are getting squeezed . Reach us at Generic medicines which we can get at Mr. Shekar Agarwal , Chair, Health Care www.linkedin.com/company/ cheaper rate up to 80 to 90% discount and Disaster Management Committee, ftcci/ For Advt bookings Please send your advertisement material along with the Message us at Cheque/DD in favouring FTCCI payable at Hyderabad. Mr.Vinod, Joint Director February 10, 2021 | FTCCI Review | 27 Ph: 9949869349 e-Mail : [email protected] +91 9100199948 FTCCI and Tax Bar Association jointly organized Webinar on Analysis of Finance Bill, 2021

3rd February, 2021 Sri Ramakanth Inani, President, FTCCI in his welcome address said that overall the budget presented is growth oriented with focus on infrastructure, healthcare, road transport and agriculture and allied sectors. FTCCI welcomes the government decision not to increase taxes or imposing any Covid related Cess, despite the revenue deficit, which the Industry feared. The Income Tax rates were untouched but announced a slew of measurers to simplify tax administration, ease of compliance and reduce litigation to boost return a Deduction to affordable housing revenue. 4 Sec 194P- Senior Citizen should extended by one year – Section Extension of tax holiday for one more have only pension income and 80IBA. year for affordable housing projects interest from same bank. Banker a No depreciation on goodwill – and rental housing projects would to give 87A relief, on the declaration Section 32 boost real estate and construction deduct tax on interest. sector giving a fillip to employment 4 It has been proposed that goodwill generation. Tax holiday extension for a Section 36(1)(va) and Section 43B of a business or profession will not one more year to start-up companies – Delay in payment of contribution be considered as a depreciable would incentivize the entrepreneurs. of PF and ESI asset and there would not be The proposal to provide relief on 4 Explanation added for employee any depreciation on goodwill of advance tax liability on dividend income contribution a business or profession in any situation. is a relief to investors. 4 To Clarify that the provision of Sec With regard to Indirect Tax proposals 43B does not apply and deemed a Presumptive Taxation not the changes in Customs Duty are in to never have been applied for the application on LLP – Section line with expecting from two focus purposes of determining the due 44ADA areas: Ease of doing business & Make date. a Constitution of Dispute Resolution in India. a TDS on purchase of Goods – Committee for small assessee CA Pramod Jain -CCM, ICAI, New Delhi Section 194Q a Discontinuance of Settlement gave a detailed presentation on Direct 4 With Effect from 1 July 2021, TDS Commission Tax proposals. He informed that 79 is required to be deducted at the 4 The Income Tax Settlement Amendments was proposed in Direct rate of 0.1% in case of purchase of Commission has been discontinued Taxes. goods. w.e.f. 1stFebruary 2021. All the a Corporate Laws: Small companies a TDS on divided to Business Trust pending applications before the Sec 2(85) definition to be is exempt – Section 194. Settlement Commission are either changed. allowed to be withdrawn by the a Deduction to Start-up Extended assessee and shall be continued 4 Paid up capital from 50lakh to by one year – Section 80IAC. 2crore before the Assessing Officer and if 4 Section 80-IAC of the Act provides such application is not withdrawn, 4 Turnover from 2crore to 20crores for a deduction of 100% of the it will be transferred to an Interim 4 Residential Status-182 days to 120 profits of an eligible start-up for Board. days. 3 consecutive assessment years CA S. Thirumalai, Past President, FTCCI out of 10 years at the option of the a Relief to Senior-citizen (Age more explained in detailed on Indirect Tax than 75 years) not to file their assessee.

28 | FTCCI Review | February 10, 2021 proposals on supplies to SEZ Units/Developer to utilize Input Tax Credit; Key Amendments (CGST Act) restricted to only such supplies a Section 154C - for notifying a meant for Authorised Operations; a Section 7 – Transaction between common portal for facilitating members and associations treated a Refund of unutilised ITC – Deposit registration, filing BOEs/SBs, any as ‘Supply’ for levy of GST; of refund amounts along with other document, payment of duty applicable interest in case of non- and carrying out other functions a Section 16 – Requirement for realization of sale proceeds; as may be specified. reporting invoice by the supplier for availment of credit by the a Rebate under GST – Refund of IGST Agricultural Infrastructure and recipient; paid on export of good/services development Cess to be restricted only for notified a Section 35/44 – No requirement a Additional Customs Cess on class of persons or notified goods/ to obtain a CA certificate in Form imported goods and Excise Duty services GSTR-9C. Reconciliation statement on Seventh Schedule goods, to be self-certified; Customs Act – Additional sections for financing infrastructure in the Act development in the agricultural a Section 50 – Provision requiring sector; interest only on cash portion of tax a Section 28BB - prescribes two- liability given retrospective effect year time-limit, further extendable a Cess/Duty in addition to the existing from 01.07.2017; by one year by the Commissioner, taxes collected on such goods; for completion of any proceedings a Section 75 – Detention and a All provisions of assessment, short- under this Act; Confiscation proceedings to be levy, non-levy, appeals, offenses, conducted parallel to erroneous a Section 113(ja) - provides for penalties, etc. to apply to such tax demand proceedings; confiscation of goods entered Cess/Duty as if the same were any for exportation under claim of Customs Duty/Excise Duty. a Section 83 – Provisions amended to remission/ refund to make a allow attachment of Bank Accounts Sri Ramdev Bhutada, President, wrongful claim in contravention of even other persons benefitting TAPTBA thanked the efforts of of provisions; from the fraudulent transaction; speakers for their lucid presentation. a Section 114AC - introduced to Key Amendments – Refunds-Section prescribe penalty in cases of 16(IGST Act) obtaining invoice by fraud, collusion, a Supplies to SEZ Units – Zero rating willful misstatement or suppression

Republic Day Celebrations at Federation House

February 10, 2021 | FTCCI Review | 29 30 | FTCCI Review | February 10, 2021 Union “Budget 2021

Smt. Nirmala Sitharaman Union Minister of Finance & Corporate Affairs

Highlights & Key Takeaways Presenting the first ever digital Union Budget, Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman stated that India’s fight against COVID-19 continues into 2021 and that this moment in history, when the political, economic, and strategic relations in the post-COVID world are changing, is the dawn of a new era – one in which India is well-poised to truly be the land of promise and hope.

Fiscal Position Item Original BE 2020-21 RE 2020-21 BE 2021-22 Expenditure `30.42 lakh crore `34.50 lakh crore `34.83 lakh crore Capital Expenditure `4.12 lakh crore `4.39 lakh crore ` 5.5 lakh crore Fiscal Deficit - 9.5% 6.8% (as % of GDP)

6 pillars of the Union Budget 1. Health and Wellbeing 2. Physical and Financial Capital and * Rs. 2,23,846 crore outlay for Health Infrastructure 2021-22: and Wellbeing in BE 2021-22 as Production Linked Incentive scheme 1. Health and Wellbeing against Rs. 94,452 crore in BE (PLI) 2. Physical & Financial Capital, and 2020-21 – an increase of 137% * Rs. 1.97 lakh crore in next 5 years Infrastructure Swachch Bharat, Swasth Bharat for PLI schemes in 13 Sectors 3. Inclusive Development for * Rs. 1,41,678 crore over 5 years for * Mega Investment Textiles Parks Aspirational India Urban Swachh Bharat Mission (MITRA) scheme, in addition to 4. Reinvigorating Human Capital 2.0 PLI: 5. Innovation and R&D * focus on strengthening three Infrastructure: National areas: Preventive, Curative, and 6. Minimum Government and Infrastructure Pipeline (NIP) Wellbeing projects: Maximum Governance expanded to 7,400

February 10, 2021 | FTCCI Review | 31 • Measures in three thrust areas to introduced, providing relaxation to efficient administration. increase funding for NIP: individual taxpayers and startups * Tax incentives to startups: to some extent. The individual and i. Creation of institutional The tax holiday for startups has corporate tax rates for FY 2021-22 structures been extended by one more year (AY 2022-23) was left unchanged. ii. Big thrust on monetizing assets up to 31st March 2022. In a major move, the limit for tax iii. Enhancing the share of capital audits under section 44AB has • Relaxations to NRI: expenditure been increased from Rs 5 crore There is a proposal to notify rules Railway Infrastructure to Rs 10 crore (only where 95% of for removing hardship for double * Rs. 1,10,055 crore for Railways payments are digitised), providing taxation. of which Rs. 1,07,100 crore is for relief to many corporate houses. • Pre-filing of returns to be capital expenditure The following are other proposed forefront: amendments: * National Rail Plan for India (2030): Pre-filling will be allowed for salary, to create a ‘future ready’ Railway * IT relaxation for senior citizens of tax payments, TDS, etc. Further, system by 2030 75 years age and above: details of capital gains from listed Financial Capital It has been proposed to exempt the securities, dividend income, etc. senior citizens from filing income will be prefilled. * A single Securities Markets Code tax returns if pension income and to be evolved • Advance Tax on dividend interest income are their only income: * Support for development of a world annual income source. Section 194P Advance tax will henceforth be class Fin-Tech hub at the GIFT- has been newly inserted to enforce applicable on dividend income only IFSC the banks to deduct tax on senior after its declaration. Tax holidays Increasing FDI in Insurance Sector citizens more than 75 years of age are proposed for aircraft leasing who have a pension and interest * To increase the permissible FDI and rental companies. limit from 49% to 74% and allow income from the bank. • Disallowance of PF contribution: foreign ownership and control with * Reduction in time for IT safeguards Proceedings: In case the employee’s PF contribution was deducted but not Stressed Asset Resolution Except in cases of serious tax deposited by the employer, it will evasion, assessment proceedings * Asset Reconstruction Company not be allowed as a deduction for in the rest of the cases shall be Limited and Asset Management the employer. Company to be set up reopened only up to three years, against the earlier time limit of six • Section 43CA stands amended: Recapitalization of PSBs years. The stamp duty value can be * Rs. 20,000 crore in 2021-22 to up to 120% (earlier 110%) of the further consolidate the financial * Constitution of ‘Dispute Resolution Committee’: consideration if the transfer of capacity of PSBs “residential unit”, which means an Those assessed with a taxable Company Matters independent housing unit is made income of up to Rs.50 lakh (for between 12th November 2020 and * To decriminalize the Limited small and medium taxpayers) and 30th June 2021. Liability Partnership (LLP) Act, any disputed income of Rs.10 lakh 2008 can approach this committee under • Amendment to Section 44ADA: * Easing Compliance requirement section 245MA. It will prevent new Section 44ADA applied to all the of Small companies by revising disputes and settle the issue at the assessees being residents in India. their definition under Companies initial stage. Now onwards, it applies only to the Act, 2013 by increasing their * National Faceless Income Tax resident individual, Hindu Undivided thresholds for Paid up capital from Appellate Tribunal Centre: Family (HUF) or a partnership firm, “not exceeding Rs. 50 Lakh” to “not other than LLP. exceeding Rs. 2 Crore” and turnover Provision is made for faceless proceedings before the Income • Section 80EEA deduction from “not exceeding Rs. 2 Crore” to extended: “not exceeding Rs. 20 Cr”. Tax Appellate Tribunal (ITAT) in a jurisdiction less manner. It will The affordable housing additional * Promoting start-ups and innovators reduce the cost of compliance deduction was extended till 31st by incentivizing the incorporation for taxpayers, and increase March 2022. The tax exemption has of One Person Companies (OPCs): transparency in the disposal of been granted for affordable rental Key Takeaways: appeals. Further, it will also help projects. Direct Tax Proposals achieve even distribution of work Indirect Tax Proposals in different benches and ensure * Certain direct tax proposals were * Few of the items on which Customs

32 | FTCCI Review | February 10, 2021 Duty Rates are revised are as of 25% is prescribed on these tariff and contactless customs follows: items with effect from 1st January measures. * Reduced duty on copper scrap 2022. * CGST Act was amended for from 5% to 2.5% * Agriculture Infrastructure And several provisions as follows: * Basic and Special additional Development Cess (AIDC) has * Section 16 amended to allow excise duty on petrol and high- been newly imposed on petrol taxpayers’ claim of the input tax speed diesel oil (both branded and diesel at Rs2.5 and Rs.4 per credit based on GSTR-2A and GSTR- and unbranded) is reduced litre respectively. 2B. * Increased duty on solar inverters * Regarding agricultural products, * Section 50 of the CGST Act is from 5% to 20% the customs duty is increased on being amended to provide for a cotton, silks, alcohol, etc. * Raised duty on solar lanterns retrospective charge of interest from 5% to 15% * Exemption of Social Welfare on net cash liability with effect from Surcharge on the value of AIDC the 1st July 2017. * The basic customs duty on gold imposed on gold and silver. and silver reduced. * Section 35 and 44 amended: Therefore, these items would Mandatory requirement of * The department will rationalise attract surcharge at the normal furnishing the GST reconciliation duty on textile, chemicals and rate, only on value plus basic report signed by the specified other products customs duty. professional is relaxed by allowing * The revised rates will be * The exemption on import of the filing of annual return on applicable from 2nd February leather will be withdrawn as they a self-certification basis. The 2021 onwards. are domestically produced. Commissioner can exempt a class * New tariff items under 2404 11 00 * A new initiative called ‘Turant of taxpayers from the requirement and 2404 19 00 have been inserted Customs’ will be introduced of filing the annual return. in accordance with upcoming HS for faceless, paperless, 2022 nomenclature. Further, NCCD

World Pulses Day poster release by Sri Singireddy Niranjan Reddy Hon’ble Minister of Agriculture and Cooperation, Govt. of Telangana. Sri K. Bhasker Reddy, Sr Vice President & Ms. Khyati Naravane, CEO, FTCCI also seen.

FTCCI Team headed by Sri.Ramakanth Inani, President felicitated to Sri Anurag Singh Thakur, Honble Minister of State for Finance and Corporate Affairs, Govt. of India on 6th February 2011 at Hotel Marriat and invited to address the members of FTCCI. Ms. Khyati Naravane, CEO, FTCCI also seen.

February 10, 2021 | FTCCI Review | 33 The shipping sector is at sea

R N Joe D Cruz he major economies of the world have always realised the potential of shipping as a contributor to economic growth. Today, for instance, control of the seas is a key component of China’s Belt and Road Initiative (BRI). China is trying to take control of the Bay of Bengal and the Indian TOcean Region. However, geographically, China is not as blessed as India. It has a great variety of climates and it has a coast only in the east; yet, seven of the top 10 container ports in the world are in China, according to the World Shipping Council. What aided China’s growth are strong merchant marine and infrastructure to carry and handle merchandise all over the world. Prior to the 16th century, both India and China were equal competitors on GDP. Historical records prove that India had maritime supremacy in the world. But over the past 70 years, India has lost its global eminence in shipping due to poor legislation and politics. Helping Foreign Shipping Liners Starting from the establishment of new ports in independent India to the establishment of the present-day Chabahar Port in Iran, all of India’s actions on the shipping front have been counter-effective. This is due to a visionless administration. The entire shipping infrastructure in peninsular India only helps foreign shipping liners. India has concentrated only on short-term solutions. In the past, colonial traders had strong merchant marine, but they also developed

34 | FTCCI Review | February 10, 2021 optimum shore-based infrastructure will automatically become transhipment schemes to harness the century-old with road and rail connectivity to hubs. We need to only concentrate on ship-owning spirit and sailing skills of facilitate their trade. There was developing the contributing ports to peninsular India. Coastal communities balanced infrastructure onshore and serve the regional transhipment hubs should be made ship owners. This will at sea. Shore-based infrastructure for which improving small ship coastal initiate carriage of cargo by shallow was developed to cater to the carrying operations is mandatory. drafted small ships through coast capacity. This needs to be understood It is our long-cherished dream to and inland waterways. All minor ports with a clear economic sense. be competent and cost-effective in in peninsular India will emerge as Foreign ship owners carry our inbound international supply chain logistics. We contributing ports to the existing major and outbound cargo. This is the case in need quality products to be available in ports and become transshipment hubs container shipping too. As a country, global markets at a competitive price. on their own. Old sailing vessel owners we have still not optimised our carrying This will happen only if we develop should be encouraged to become small capacity. Foreign carriers and their balanced infrastructure onshore as ship owners. agents continue to ransack EXIM well as at sea. It is sad that most of the global shipping trade with enormous hidden charges companies which depend on Indian in the logistics cycle. Much of foreign A Ray of Hope cargo for their business have Indians currency is drained as transshipment Sagarmala, a government programme as either commercial heads or Indian and handling cost every day. to enhance the performance of crew onboard their ships. The creamy Given this state of affairs, members the country’s logistics sector, layer from management and nautical of our maritime business community provides hope. Its aims are port-led institutions are employed out of have also preferred to be agents for industrialisation, development of India. When the most creative human foreign ship owners or container liners world-class logistics institutions, and resource is not used in the country, rather than becoming ship owners coastal community development. When what is the point of declaring that India or container liners themselves. This Sagarmala initiates infrastructural has the number one youth population is a historical mistake and a major development on the shorefront, this in the world? economic failure of the country. As will also get reflected in domestic The youth population is merely a a result, there is a wide gap between carrying capacity. number, not a skill-based strength. carrying capacity and multi-folded As of now, shipbuilding, repair and In the coastal region, their strength cargo growth in the country. ownership are not preferred businesses has not been tapped. This is a point Today, Ministry officials are happily in peninsular India. The small ship- of concern and Sagarmala should relaxing “Cabotage” regulation in owning community in India also prefers concentrate on consolidating the the name of coastal shipping. This foreign registry for their ships instead strength of the coastal youth and benefits only the foreign container- of domestic registration. If this has to make them contribute to the nation’s carrying companies and not Indian ship change, there needs to be a change in economy with pride. owners. Official actions allow foreign the mindset of the authorities and the carriers to enjoy the situation here maritime business community. and push the Indian tonnage owners With the call for ‘Make in India’ growing https://www.thehindu.com/opinion/ op-ed/the-shipping-sector-is-at-sea/ to vanish from the scene. Starting louder and with simultaneous multi- article33651223.ece from the Swadeshi Steam Navigation folded cargo growth in the country, Company of V.O. Chidambaram Pillai to we need ships to cater to domestic the Scindia Steam Navigation Company and international trade. Short sea and of our times, Indian owners have river voyages should be encouraged. not got the blessings of successive The ship-owning spirit of the Indian governments. merchant marine entrepreneur has In the port sector, instead of creating to be restored. Shipbuilding and regional cargo-specific ports in owning should be encouraged by the peninsular India, the bureaucracy Ministry. The National Shipping Board has repeatedly allowed similar is an independent advisory body for infrastructural developments in the Ministry of Shipping, where the multiple cargo-handling ports. As a Directorate General of Shipping (DGS) result, Indian ports compete for the is a member. The NSB should be able same cargo. If we make our major ports to question the functioning of the DGS, cargo-specific, develop infrastructure which is responsible for promoting on a par with global standards, and carrying capacity in the country. connect them with the hinterlands as Sagarmala should include coastal well as international sea routes, they communities and consider evolving

‘Constitute Police Complaints Authority’ Telangana High Court instructed State government to constitute State Police Complaints Authority within four weeks of receiving names of retired Supreme Court or High Court judges for appointment as the Au- thority’s chairman. A bench of Chief Justice Hima Kohli and Justice B. Vijaysen Reddy passed the direction after hearing a PIL petition on the constitution of State Security Commission and State Police Complaints Authority in the States of Andhra Pradesh and Telangana. The bench gave four weeks of time to AP government to initiate the process of constitution of the Authority after the State’s special counsel represented that due to COVID-19 pandemic it got delayed. The erstwhile Hyderabad HC for AP and Telangana in 2017 disposed of a writ petition directing the two States to constitute SSC and PCA in compliance with the Supreme Court directions in Prakash Singh vs Union of India. Suo moto contempt proceedings were initiated against the Home Secretaries of the two States as the HC directions were not enforced. Telangana Advocate General B.S. Prasad informed the bench that chairman of the State PCA should be a retired judge of SC or HC. For district PCA, a retired district judge was to be appointed as chairman. State government had already written to the HC to suggest names of a retired judge of SC or HC for appointment and would constitute soon after receipt of the recommendation of names from the HC. The CJ directed the State government to ensure the State PCA was constituted within four weeks of receiving names from the HC for appointment as chairman.

https://www.thehindu.com/news/cities/Hyderabad/constitute- police-complaints-authority/article33630163.ece 44 | FTCCI Review | February 10, 2021 February 10, 2021 | FTCCI Review | 45 FTCCI in Media

46 | FTCCI Review | February 10, 2021 February 10, 2021 | FTCCI Review | 47 Printed and published by T.Sujatha, Dy.CEO on behalf of The Federation of Telangana Chambers of Commerce & Industry, Federation House, FAPCCI Marg, Red Hills, Hyderabad-500004 Ph : 23395515 and printed at Sri Jain Printers, Red Hills, Hyderabad-4 Editor : T. Sujatha, Dy.CEO

48 | FTCCI Review | February 10, 2021 Publication Received on February 09, 2021