4 Economy www.financialexpress.com NEW DELHI l TUESDAY lMARCH 27 l 2012 In Parliament INTERVIEW: ALOK BHARADWAJ VGFcarrotforPPP PRESIDENT, MANUFACTURERS’ ASSOCIATION FOR IT Part payment for Iran crude in rupee Iran has agreed to receive part payment for Hardware giants eyeing India crude oil exports in rupee through Indian powerlineprojects banks, the government said on Monday. On a query if Iran has agreed to part payment in the Indian currency for crude oil sale to India, as alternative production hub minister of state for commerce and industry ■ Intra-state networks to qualify for scheme too Jyotiraditya Scindia said, “Yes Madam”. In the written reply, Scindia informed the LoK Himani Kaushik & ministry and it has now been basedonVGF. Theguidelines Theworld’smostcovetedtechnolo- factor for all global companies, Sabha that confidential commercial Subhash Narayan decided that state govern- fordeterminingbaseunitary gy companies could begin manu- andindeed,theworldislookingat arrangements have been worked out for New Delhi, Mar 26 ments would be given the op- chargecouldberevisedbythe facturingoperationsinIndiaif en- Indiaasapossiblealternativedes- payment in rupee. On a query whether such tion to chose between MTA power ministry from time to abling policies are put in place, tination. Better infrastructure, payment in Indian currency may get LL public-private (with VGF) or the standard time in consultation with the says Manufacturers’ Association political stability,consistency in extended for imports other than crude oil, he partnership (PPP) biding document (SBD) fi- finance ministry and the for Information Technology presi- policies and strong visible intent replied, “Yes Madam, confidential A projects in the pow- nalisedbythepowerministry PlanningCommissiontopre- dent Alok Bharadwaj.In an in- thatsuchinvestmentsarewanted commercial arrangements that have been er transmission sector,in- earlier(withoutVGF)forPPP ventmisuseof theVGFprovi- terviewwithFE’sPPThimmaya, and welcomed are few of the worked out are due to large trade deficit of cluding intra-state trans- intransmission,”saidaPlan- sions.The entire mechanism Bharadwaj talks about the issues points that need discussion at the India with Iran.” The Reserve Bank of India in mission networks,will now ningCommissionofficial. would be reviewed after a pe- faced by the hardware sector and macrolevel.Thebestwayistoask December 2010 withdrew the Asian Clearing qualify for government The MTA has so far been riodof threeyears. the Union Budget’s impact on the investing companies what Union mechanism under which payments grants under the viability- used only by Haryana for de- “Thisisanexcellentmove thesector.Excerpts: willmakethemcometoIndiaand were made to Iran. gap funding (VGF) scheme, veloping the Jhajjar power as now both inter and intra- letthemanswer. We donotneedto making them attractive to transmissionlineonPPPba- state transmission projects What changes do you foresee createourownanswers. Group set up to identify private sector investors. sis and the project has since would be given government for the Indian hardware in- The VGF scheme,fi- been commissioned. With grantstomakethemfeasible dustry after the Budget? condition,alreadydownby reces- Can we expect companies like locations for big ports nalised by the finance min- the model set to become part and attractive.This will cer- The most important task of sionary perils,it would be really Appletosetuptheirmanufac- The government said on Monday that it has istry few years back to pro- of theAct,itsusecouldbeex- tainly spur interest from the anygovernmentistoprovidedri- hard for Indian hardware manu- turing operations in India? constituted a group for identifying locations mote investment in the panded to attract private in- private sector,” said an offi- versforthegrowthof industry.In facturers to have a level playing Why just Apple and why just for developing big ports in three southern infrastructure sector,in- vestments.The absence of cial of a private sector trans- caseof theIThardwareindustry, fieldwithcompetitorsinChinaor expect! We must shape our policy states. “A technical committee has been volves central assistance in missioncompany. there are two ways such drivers Taiwan,orevenVietnam. framework and strengthen our constituted to identify the suitable locations the formof grant for capital The MTA will also be are injected. One,by higher ab- accountability system to get all for the development of major ports in Andhra expenditureupto20%of the available to central trans- sorptionof ITinvariousgovern- What is the way forward for large manufacturing companies Pradesh, Karnataka and Kerala,” minister of project cost, while the state mission utility Powergrid ment investments,and the other the industry in that case? to invest in India. Once the appro- shipping GK Vasan said in the LoK Sabha on government — being one of Corporation for participa- is by creating environment that Ourbiggestargumentisthatif priatepoliciesareinplaceandthe Monday. Replying to a question whether theowners—couldalsopro- tion in any future inter-state expands private investment and India wants to create millions of investment atmosphere becomes some states have proposed to invest in the videamatchinggrantwitha transmission projects. penetration of IT.Some positive jobs and if manufacturing has to conducive, we believe there is no development of major ports, Vasan said, “No ceiling of another 20% of Attracting investment in announcements like the move to get topmost priority,the policy reason why IT giants such as Ap- proposal has been received from states for the project cost. transmission holds the key allow external commercial bor- has to be the driver. India has fo- plewon’tconsiderIndiaasaman- investment in the development of major According to sources,the tooverallgrowthof thepow- rowingsformodernisingtollsys- cused on IT software & services ufacturingdestination. ports.” He added: “Response has been power ministry is set to noti- ersectorinthecountry.With tems throughout the country duringthelastdecadeandturned received from the state governments of fyanewmodeltransmission additional generation ca- will increase ICT adoption and asleepysectorintoavibrantglob- What does the immediate fu- Andhra Pradesh, Karnataka, Kerala and agreement (MTA) finalised pacity of about 52,000 MW increase efficiency. The decision al force. The time for scripting a ture hold for the sector? Gujarat for providing land for development of by the Planning Commis- beingaddedin11thPlanand tofullycomputerisethePDSsys- similar success story for IT hard- This fiscal, we have had to another major port.” sion as an addition to the ex- another75,000MWexpected temisabigmove, whichwilldefi- ware sector has come.While for grapple with the floods in Thai- isting provision in the Elec- in 12th Plan, the network of nitelyhave positive implications software and services,lack of land and Rupee devaluation. Coal output to increase tricity Act, 2003, for the VGFactedasdisincentivefor transmission needs of ex- for the hardware industry.One governmentinterventionhelped However,the contracts from the purposesof competitive bid- private investment as load pended fast to enable evacu- negative implication is the in- the industry to prosper,in case of TamilNadugovernmentforlap- to 795 MT by 2016-17 ding. This would allow all carried by several transmis- ation of power from new crease of excise duty as well as thehardwareindustry,lackof in- tops,as part of poll promises, The country’s coal production is projected to states to use this MTA for sion lines is low initially generating stations. theservicetaxfrom10to12%. tervention will cause a demise of came as a big rescue,which ac- increase by over 43% to 795 million tonne PPP projects in both inter- squeezingmargins,especial- The transmission net- local value creations.Hence the counted for 25% of the market (MT) by 2016-17, from an estimated 554 MT in state and intra-state trans- ly if bids are based on trans- work currently stands at TheBudgethasnotaddressed alarmbellsareringingandthein- size of the laptop industry.Now the current fiscal, Parliament was informed mission networks without missionchargesasperSBDs. 245,401 ckm (circuit kms). someof yourkeydemands..... dustry expects more hand hold- the uncertainties of past year on Monday. The projection is based on furtherregulatoryapproval. UndertheMTA,ithasbeen The12thfive year planenvis- The hardware industry conti- ingfromthegovernment. are well behind us and we hope obtaining necessary clearances and The task force on mea- decided that the prospective ages to add another 120,000 nuestofacemanyhurdlesandone there would be significant availability of requisite land for coal mining, sures for attracting private bidders would be awarded Ckm of transmission lines. of themistheinverteddutystruc- India lags far behind in com- spendingfromvariousstategov- minister of state for coal Pratik Prakashbapu investment in transmission projectsonthebasisof lowest Theinter-regionaltransmis- ture wherein import of parts and petition. So what can be done ernments.So the outlook for Patil said in a written reply in the Rajya headedbyPlanningCommis- quote for grant of VGF. In sioncapacityalsoisexpected componentsattracthigherduties to bridge the gap? 2012-13 is bright. Lot depends on Sabha. “As per the draft report of the working sion member BK Chaturvedi these projects,the state elec- to increase from present than the finished products.This IndialagsfarbehindThailand, investment sentiments and