Mcci intouch august sept15

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TNGIM 2015 and Beyond!

Dear Members,

The State of Tamil Nadu is basking in the spectacular success of the Tamil Nadu Global Investors Meet 2015. The first mega event was organized in Tamil Nadu in a grand scale to build on the attractive growth prospects in Tamil Nadu and the Government’s commitment in maintaining the State’s position as one of the most preferred investment destinations. The event was a focused endeavor to realize the State’s vision of inclusive growth and environmentally sustainable long term development.

The Inaugural session had the Honorable Chief Minister stating that implementation of 84 of the 217 projects identified under Vision Tamil Nadu 2023 had commenced. Further, it was stated that the commitment to get Rs. 1 lakh crore investment had already been achieved before the commencement of GIM. It looks like it will be raining investments in Tamil Nadu!

Eight Countries - Australia, Canada, France, Italy, Japan, Korea, Russia, Singapore and the United Kingdom, Chambers of Commerce, Trade Associations partnered with the Government of Tamil Nadu to make this event a grand success and the efforts put in were worthwhile as more than 1000 delegates from overseas took part from more than 30 non partner countries apart from representation of Industry Heads across the Country. The Exhibition, Seminars, administrative arrangements were par excellence and went to prove that the State Machinery is capable of handling such mega event with absolute precision and professionalism.

In the Valedictory function, when the curtains were brought down, it was informed that against a target of Rs. 1 lakh core, an unprecedented deal worth Rs. 2.42 lakh crore were signed, promising to create 4,70,065 jobs in Tamil Nadu. The massive investment assurance was much more than the accumulated investments in the last 20 years, since 1991.

The assurance given to investors for approval and statutory clearances within 30 days of the date of submission of application under the supervision of IAS Officers is definitely a boost to ensure ease of doing business in the State.

The Madras Chamber had the privilege of being a partner organization in this mega event and had the opportunity to coordinate the first and most important seminar on “Think Tamil Nadu – ease of doing business in India and Tamil Nadu.” The Seminar was a runaway victory for the Chamber as our earlier Study “Manufacturing in Tamil Nadu – A

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SG.PrabhakharanPresident

Regulatory Road Map,” has triggered lot of interest and discussion among the various stake holders, particularly the State Government. The Expert Speakers from the Government, Corporate and business houses shared their views and suggestions during our seminar and this has set the tone for future action for ensuring the Ease of Doing business in the State.

It is nearly a month after the event. Though the hype has come down, it is time for the Action. This is a time to prove that the expectations of the investors would be met and the necessary assurances made while signing as many as 98 MoUs would be put to implementation. How would this be possible?

The Chamber, which represents the Industry community in Tamil Nadu has already suggested setting up a Task Force to monitor the incoming projects on a monthly basis which would be the first step that would provide authenticity to the action to be taken. This Task Force should bring out a report on a monthly/bimonthly/quarterly basis giving details of projects which have commenced and which are in the pipeline. This would build the confidence of not only the investors, but also the other corporate and the general public and prove that the State is serious in its commitment and promises to investors in building a right climate for doing business. We are happy that the Government has also started moving in that direction and we hope to see the actions gathering required momentum in the coming months.

The Chamber shares the Vision of the TN Government to make our State the Numero Uno and is keen to extend all support to the Government in making this a reality. I would be happy to get your recommendations and suggestions to ensure ease of doing in the State. Please do feel free to contribute your thoughts @ [email protected]

I am hopeful and confident that TN GIM 2015 would not remain just as a two day success, but would help the State to unleash its huge potential and opportunities, before we reach our next landmark -TNGIM 2017.

Best wishes

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9th - 10th September 2015Tamil Nadu Global Investors Meet 2015- New Policy Initiatives by Tamil Nadu Government

The Government of Tamil Nadu conducted the first Global Investors Meet 2015 in a spectacular

manner and attracted investments worth Rs.2.42,160 crores. The Hon’ble Chief Minister of Tamil Nadu was present on both days, during the Inauguration and Valedictory and inspired the business community by her speeches. The Meet brought a positive vibration to the State leading a new thought process to bring in investments.

The key highlights of the GIM 2015 being 5000+ delegates with more than 1000 foreign delegates and 8 Partner Countries participating in this huge event wherein 98 MoUs were signed exceeding the cumulative investments attracted through all MoUs signed by the Tamil Nadu Government over the past 20 years.

The Chamber had the privilege of being one of the Partner Organizations in this mega event. Further, the Chamber organized the first important Seminar on “Think Tamil Nadu – Ease of Doing Business” with eminent speakers from different sectors including the Department of Industrial Promotion & Policy, Government of India wooing the investors to invest in Tamil Nadu.

special programs

Mr. Vijay Sankar addressing the participants. Mr. S.G. Prabhakaran, addressing in the seminar in TNGIM 2015.

Chamber’s Activities

The speakers include:-

Mr. Shailendra Singh IAS, JS & CVO, DIPP

Mr. Riuji Kawashima – Deputy Managing Director, India Yamaha Motor Pvt Ltd

Mr. Rathin Basu, Country President, Alstom India and South Asia

Mr. Gopa l S r in ivasan , Chairman and Managing Director, TVS Capital Funds Ltd.

Mr. Vijay Sankar, Deputy Chairman, Sanmar Group

Mr. T.Kannan, Chairman & MD, Thiyagarajar Mills Ltd

Mr. N. Lakshmi Narayanan, VC, Cognizant Technology Solutions.

Mr. S.G.Prabhakharan, President, MCCI

Ms. Paromita Chatterjee, Senior Editor, ET Now, moderated the Seminar and the Panel Discussion. The Seminar was telecast live in ET Now.

The speakers gave a positive feedback about Tamil Nadu and extended a warm welcome to new investors. The Seminar had more than 300 + participants.

The Chamber expressed its appreciation to the Government of Tamil Nadu for the resounding success of TNGIM 2015 by placing an advertisement in Times of India reiterating its support to the Government of Tamil Nadu for its mission to make the State “Numero Uno”.

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29th September 2015Chamber Day

The Chamber celebrated its 179th Chamber day on

29th September 2015 at Hotel Hyatt Regency, Chennai. The Chamber day had a unique blend of speakers ranging from venture capitalists to entrepreneurs to share their experience.

As the focus for this year is Startups, the Chamber l a u n c h e d t h e S t a r t u p Entrepreneurial Ecosystem (SEE), a platform to support and encourage budding entrepreneurs, especially the non IT startups which included manufacturing and services apart from IT start ups.

Mr. S.G. Prabhakharan, President, MCCI welcomed the participants. He briefed about the last years’ activities of the Chamber. He then narrated his personal journey from an advocate to an entrepreneur as he is a first gen entrepreneur. He further informed that this Chamber is all set to launch an eco system which would serve as a platform to encourage the entrepreneurs, especially for the Non IT services which include manufacturing and services.

Mr Sarath Naru, Managing Director, Ventureast a venture capital firm stated it is a great opportunity for India to be in customized production than to be in mass production. He

Mr.Satya Narayan Bansal launches the Startup Entrepreneurial Ecosystem (SEE)

added that the entrepreneurial revolution is one of the biggest opportunities for us to partake. The e-commerce business will change significantly in the next 5 to 10 years. To succeed, the e –commerce firms will have to evolve from being a mere buyer seller platform into fully integrated businesses delivering customized products. This requires better manufacturing understanding and experienced people to guide the entrepreneurs.

Mr. Satya Narayan Bansal, CEO India, Barclays Wealth and Investment Management, launched the Startup Entrepreneurs Ecosystem, a platform for the Chamber to mentor the entrepreneurs

In his special address, he urged the participants to look at an entrepreneur not just as businessmen but as a Change Agent of the Society. He stated that if this becomes the mindset of people, a lot of persons would enter the mainstream of entrepreneurs.

Mr. Ram Venkataramani proposing the vote of thanks and a view of the audience.

Mr.Satya Narayan Bansal, CEO India, Barclays Wealth and Investment Management delivering the Chief Guest address

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He discussed about the next gen being inducted in the business and gave suggestions to the existing businessmen to recognize the talent of the next generation and let them be an entrepreneur in their own right. He felt that would the right tool to make them successful entrepreneurs.

He requested the Chamber and the participants to relate to even small genuine businesses and not look only at start ups. Further, he suggested 3 vital tools that the Corporate and Chambers could adopt : To provide risk capital to the budding entrepreneurs, to mentor during difficult times of an entrepreneur and steer the entrepreneur in the right direction and to provide market access and network

He was definite that if the above tools are put into practice, it can change the scale for the Change Agent of the society.

This was fol lowed by a panel discussion having the following speakers moderated by Mr. S.G. Prabhakharan, President, MCCI

Mr. Karthik Reddy, CTO, Bang the table

Ms. Hemalatha Annamalai, CEO, Ampere Vehicles Pvt Ltd.

Mr. Dave Mukherjee, CEO, Artison Investments Pvt Ltd

Mr. Vikram Gupta , Founder and Managing Partner, Ivy Cap Ventures, Mumbai

Mr.S.G.Prabhakharan presenting the service award to Mr.P.S.Mohan, Manager- Accounts for completing 15 years of service in the Chamber.

They were joined by Mr. Sarath Naru and Mr. Satya Bansal.

The Panel discussion enabled the speakers to share their experiences as an entrepreneur and as a venture capitalist and the questions and answers session threw light on the initial struggles, achievements, how failures lead to success, qualities of an entrepreneur, criteria for releasing funds to the entrepreneur, expectations from VCs, and what it takes to climb the ladder of success.

Mr. S.Sankaranarayanan, Deputy Secretary, MCCI was given an award for completing 30 years of service and Mr. P.Mohan, Manager- Accounts was awarded for completing 15 years of service in the Chamber.

Mr. Ram Venkataramani, Vice President proposed the vote of thanks

The meeting attended by more than 200 participants, concluded with Dinner.

Mr.S.G.Prabhakharan presenting the service award to Mr.S.Sankaranaryanan, Deputy Secretary for completing 30 years of service in the Chamber.

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26th August 2015Interactive Meeting with Regional Director & Registrar of Companies, Chennai

The Chamber has organized an Interactive Meeting with the

Regional Director & Registrar of Companies, MCA, Chennai under the auspices of the Company Law Committee at the Conference room of the Chamber.

Mr. B.K.Bansal, Regional Director, Ministry of Corporate Affairs and Mr. Sridhar Parmarthi,ICLS, Registrar of Companies, Ministry of Corporate Affairs interacted with the members of the Chamber who attended the meeting.

Various queries were raised and were clarified by Mr. Bansal and Mr. Parmarthi. The meeting was attended by 15 persons and it concluded with hi-tea.

sowing the seeds

Ms.Bhavani Balasubramanian, Chairmen, Expert Committee on Company Law/ Corporate Matters welcoming the Guests and the Members. Others seen in Picture are Mr.B.K.Bansal, Regional Director (South), Ministry of Corporate Affairs, Chennai & Mr.Sridhar Pamarthi ICLS, Registrar of Companies, Ministry of Corporate Affairs, Chennai

A view of the members who attended the meeting.

Mr T Shivaraman, Immediate Past President, MCCI welcoming Ms Chitra Venkataraman, Judge, Madras High Court (Retd.,) with a bouquet of flowers

27th August, 2015 Seminar on “Income Computation and Disclosure Standards”

The Chamber organized a Seminar on Income Computation and

Disclosure Standard (ICDS) on 27th August 2015 under the auspices of Expert Committee on Direct Taxes.

Mr. T.Shivaraman, Immediate Past President, MCCI welcomed the participants.

Ms. Chitra Venkataraman, Retd. Judge, Madras High Court inaugurated the Seminar.

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Mr.S.Mahalingam former CFO, TCS addressing the audience

Mr. V.P. Manikandan making his presentation to the participants. Mr. P.V.S.S. Prasad making his presentation.

14th September, 2015 Discussion on the follow up on TARC Report with Mr. S. Mahalingam

The chamber organized a discussion on TARC report and the follow up needed for its

implementation on 14th September at Hotel GRT Grand, Chennai.

Mr. S. Mahalingam, the former CFO of Tata Consultancy Services, and a member of the Commission, made a presentation on the salient features of the Report and initiated the discussion with a select group of members.

In his presentation, Mr. Mahalingam covered the constitution of TARC, the overall Terms of Reference, the fault in Indian Tax system, the collobarative and consultative effort taken to prepare a report of 1370 pages with 15 chapters, and summary of recommendations and findings and a way forward.

He further divided the Chapters into Operations, Enablers, Platform and Support to Policy and elaborated on each aspect.

He concluded his presentation with the process for change for a transformed Tax Governance and showed

the participants how a reformed tax system would function.

The presentation was followed by an interactive session. It was agreed by the Chamber that a follow up of this discussion would be taken forward with a larger audience and necessary steps would be taken to bring about the desired change that is required in tax administration.

The Technical Session had the following experts addressing the audience on the various issues of ICDS.

• Mr.PVSSPrasad,ManagingDirector,Prasad&Prasad, Chartered Accountants, Hyderabad

• Mr.RaunakChordia, SeniorManage,Tax&Regulatory Services, E & Y LLP

• Mr.V.P.Manikandan,Director-GlobalBusinessTax, Deloitte Haskins & Sells

• Mr.M.P.Vijaykumar,Chief FinancialOfficer,SIFY Ltd.

The program was well attended by 45 participants

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together we grow18th August 2015Seminar under CCCCC on “Invest in Brussels”

The Chamber organized a “Seminar on Invest in Brussels” under the

CCCCC jointly with SAS Partner, who is promoting investments in Brussels on 18th August 2015 at Hotel Savera.

Ms. Indira Dutt, President, Andhra Chamber of Commerce chaired the session and welcomed the participants.

Mr. Chozha Naachiar Rajasekar, President , Tamil Chamber of Commerce, Mr. Muneer Ahmed, President, National Chamber of Commerce and Mr. N.Dave, President, Hindustan Chamber of Commerce briefly addressed the participants.

The Chief Guest Dr. Bart De Groof, Consul General, Consulate General of Belgium in Chennai, traced the history of trade relations between India and Belgium right from 18th century through their east India company. He briefed about “Why we should go to Brussels” and stated that 170 companies out of 500 + companies contributing to the European market were from Belgium. Make in India is an interesting concept, he stated and encouraged us to sell what we have made in India to Belgium. He thanked the organizers for arranging this meeting and requested the participants to make use of this opportunity to know more about Brussels.

Ms.Kathlijn Fruithof, First Secretary Trade & Investment, Consulate General of Belgium, Chennai made

Dr Bart De Groof, Consul General, Consulate of Belgium in Chennai addressing the gathering. Others seen ( l to r : Mr.Chozha Naachiar Rajasekar, President, Tamil Chamber of Commerce, Ms.Kathlijn Fruithof, Mrs.V.L.Indira Dutt, President, Andhra Chamber of Commerce, Dr.N.R.Dave,President, Hindustan Chamber of Commerce & Mr.Syed Muneer Ahmed, President, The National Chamber of Commerce

Ms.Kathlijn Fruithof, First Secretary Trade & Investment, Consulate General of Belgium in chennai making a presentation

a detailed presentation on the topic Brussels – The perfect destination for your growth in Europe and highlighted the advantages of doing business in Europe.

The program was attended by 40 persons

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2nd September 2015Program on Transfer pricing jointly with EY

The Chamber organized a program on Transfer Pricing on 2nd

September 2015 at Hotel Crowne Plaza,Chennai. EY was the Knowledge Partner.

Mr. T.Shivaraman, Immediate Past President of the Chamber welcomed the participants. He pointed out that Indian Tax system is very complex and hence there is always a need for Chambers like ours to repeatedly organize such workshops. He requested the participants to make use of the EY experts’ knowledge on this complicated subject.

The Technical session had the following speakers from EY, followed by a panel discussion moderated by Mr. Ashwin Viswanathan, Executive Director, EY India, Chennai.

Mr. Vijay Iyer, Partner & National Transfer Pricing Leader, EY India.

Mr. Miller Williams Partner, EY USA.

Mr. Ameet Kapoor Executive Director, EY India, New Delhi.

A view of the audience

Ms.K.Saraswathi, Secretary General, MCCI welcoming the speakers and the audience. Others seen in the picture (l to r : Mr.Ameet Kapoor,ED-Transfer Pricing, EY India, Mr.T.Shivaraman,MD & CEO, Shriram EPC Ltd & Immediate Past President, MCCI, Mr.Vijay Iyer, Partner & National Leader – Transfer Pricing, EY India & Mr.Miller Williams, Principal, Transfer Pricing Controversy Services, EY Global

30th September 2015Bilateral Opportunities between India and Qatar & GCC

The Chamber and the Doha Bank jointly organized a program on “Bilateral Opportunities between

India and Qatar & GCC on 30th September at Hotel Taj Coromandal.

Mr. S.G.Prabhakharan, President, MCCI gave the welcome address. He briefed about the Chamber’s activities and stated Doha, Qatar and GCC regions offer immense potential for the Indian Business Community.

Mr. Rashid bin Ali Al Mansoori, CEO, Qatar Exchange, in his special address, said that Qatar has

emerged as the second biggest stock exchange in the Middle East after Saudi Arabia. The Qatar economy always remain stable, and it is virtually a home away from home for several Indians.

Mr. Ramkumar Shankar, Deputy Managing Director, Chemplast Sanmar Ltd, and a General Committee Member shared his experience about his group’s business relationship with Qatar from which it imports almost 60 per cent of its raw materials for petrochemical business. He informed that though the company entered Qatar in a small way, it has now

There was a vibrant interactive session with more than 70 participants who took part in the event.

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Mr.S.G.Prabhakharan, President, MCCI presenting the Coffee Table Book to Dr.R.Seetharaman, Group CEO, Doha Bank

Mr.Ramkumar Shankar, Deputy Managing Director, Chemplast Sanmar Ltd & GC Member, MCCI addressing the audience

become a big trading partner with the country and gave confidence to potential investors.

Dr. Seetharaman, Chief Executive Officer, Doha Bank addressed the audience on the present economy and said that the emerging markets like India, China, Brazil and Russia, which are in a formidable position, are attracting huge foreign investments into different sectors. During Prime Minister Modi’s visit to the UAE in August, he was able to secure $60 billion business, fully reflecting India’s close partnership with GCC nations. He urged the business community to make huge investments in Doha, Qatar & GCC region.

Mr. Ganesan Ramakrishnan, Head of International Banking, Doha Bank, in his concluding remarks, gave an assurance to all the businessmen and investors that they would provide necessary support for investments in Qatar and GCC.

Food For thoUght22nd August 2015

The FFT on Black Money Story – A global growth and a global disaster was organized by the

Chamber at Hotel Crowne Plaza on 26th September 2015.

Mr.S.G.Prabhakharan while welcoming the participants gave an introduction about Black Money and set the tone for the FFT.

Mr.N.Ranganathan, Partner, E & Y LLP and a General Committee Member, gave an insight on the story of Black Money based on his experience of being in the Industry for several decades in various capacities.

He stated that there are two streams which are globally considered for the movement of the black money. One

is from transactions that are per se illegal and violating of some law, such as gambling, corruption and terrorism. The largest source of black money is from trafficking drugs and contraband. However, credible data is not available on this aspect. The other source is through purely legitimate means that are perfectly legal , namely misinvoicing, hotmoney flows and overinvoicing. He elaborated on the above perfectly legal transactions which lead to the generation of black money.

The Global Financial Integrity has given a figure of 542 billion dollars as black money in the Indian economy over a period of 10 years. Where does this money go? Mr. Ranganathan informed that it is ultimately put back to productivity. The recycling

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Mr.V.Ranganathan, Partner, EY LLP addressing the audience.

Mr.N.Venkataraman , Senior Advocate addressing the audience.

of black money to legitimate form has been done in 3 phases :-

When Government provided relief for exports in 1980’s, Indian GDRs, when companies were allowed to float its stock in overseas exchanges in the 1990’s and through FDI’S and PEs in the recent years.

He concluded by stating that this black money enables the economy to grow and does not lie in cupboards

Mr. N.Venkataraman, Senior Advocate in his address stated that he will gradually improve his story on black money from

where Mr. Ranganathan left and elaborated on the origin, creation, movement and use of the black money for legitimate or illegitimate purpose which enable global growth or disaster.

As for origin, in 2009, the OECD report states 11.8 trillion as the Blackmoney and IMF states 18 trillion. In 2015, the conservative estimate is 25 trillion which is the quantum of black money that exists.

When it comes to the next stage of movement, there are 2 tools – Tax havens and auxiliary tools to Tax haven which is the banking secrecy laws.

The tax havens exists in 3 forms in the world : Zero tax jurisdiction where the funds are kept safely, second the fund managers, where the funds are used and the managers secure a percentage for the services rendered and the third being entrepreneurial which exists in middle east and far east where the money is managed for its own growth.

The auxiliary is the banking secrecy laws, for every country has its own laws which protect the country. He gave a few examples of litigations that arise due to these laws and elaborated on the difficulty in getting the necessary information especially up to 2008 where there is no exchange of information between countries. From 2008 – 2011, countries have entered into agreements to disclose necessary information and from 2017, it would be an era of automatic exchange where the countries would be obligated to give information. .

Mr. Venkataraman added that crime and corruption are like Siamese twins which go hand in hand as the blackmoney is used for illegitimate use.

With regard to legislation on Black Money, he detailed on the Money Laundering Act, Income Tax Act and gave a comparison of Income Tax Act and Black Money Act. He added as to how and why it would be difficult to get people to disclose under the Black Money Act, since as an independent legislation, it does not give immunity to voluntary disclosure and there is every possibility of prosecution under the act

The Supreme Court cases of Asadi, Vodafone,Ram Jethmalani and Hassan Ali’s case were also briefly discussed with regard to interpretation on black money.

The FFT concluded with a vibrant interaction and there were more than 100 participants.

A view of the audience.

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General Committee

Expert Committees

The Committee held its monthly meeting in August and September 2015 and discussed the following among other issues.

The Committee discussed about strengthening the skill development activities of the Chamber.

There were a lot of deliberations regarding the trainings done in the area of skill development. It was agreed by the Committee that getting the right candidates would be the greatest challenge. It was concluded that the Chamber’s activity should be different from

The following reconstituted Committees for the year 2015-2016 had its first meeting in the month of September 2015 and discussed their work plan for

the current year.

Indirect Taxes, Energy, Environment, Water Conservation, Pollution Prevention and Control.

CSR Committee had its second meeting to take forward its action plan.

the other training institutes, which has to be defined clearly identifying the Chamber’s niche.

The Committee agreed that an Action Committee would be formed which would discuss the possibilities of providing skill development training either in the existing set up or tie up with overseas institutions to provide high end training.

Mr. Kulothungan, Chairman, Environment, Water Conservation, Pollution Prevention and Control interacting with members.

Mr. K.Vaitheeswaran, Chairman, Expert Committee on Indirect Taxes interacting with members.

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Other Meetings• Ms.K.SaraswathiattendedtheSIDCOInvestment

Promotion meeting on August 7, 2015

• Ms.K.Saraswathi andMr S.G.Prabhakharanattended the Emerging India Business Awards on August 7, 2015. Emerging India Awards is the biggest awards for SME’s in the country with more than 13 lakh entries, in its 9 years of celebrating the entrepreneurship spirit of the country organized by ICICI Bank. Mr. S.G.Prabhakharan, President, MCCI was part of the Jury in the preliminary round

• Ms.K.Saraswathi attended theworkshop onNew Skill Development Initiatives / schemes in Tamil Nadu by the State Planning Commission on August 11, 2015

• Ms.K.SaraswathiattendedthefirstConsultativeCommittee meeting of the Draft MSME Policy 2015 conducted by the Industries Department, on 14th September 2015

flAsh nEws

Intro: New Members

Name of the Company Classification

Amec foster Wheeler I Pvt Ltd. Oil & Gas, Environment & Infra

Beyontec 2nable Solutions Pvt ltd. IT/ITES

Dharmic Solutions Pvt. Ltd Business Management Consultants

Floking Pipes Private Ltd. Business Manufacturing of PVC Pipes

Japanese Chamber of Commerce & Industry, Chennai

Services to facilitate Economic Co-operation between India & Japan

P S Associates Law Firm

Semanoor Software Solutions (P) Ltd. IT / ITES

Sri Kanyaka Parameswari Arts & Science College for Women

Educational Institutions

Shri Govindaraja Textiles Pvt Ltd. Yarn Manufacturing

Valiant Technologies Pvt. Ltd. Management Consultants

Women’s Christian College Educational Institution

Yalee Inc Business Trading

• Ms.K.Saraswathiwas part of the discussionof the British Deputy High Commission on maximizing action and follow up on the forthcoming UNFCCC COP at Paris which was held in the Chamber’s Conference room on 18th September 2015

• Ms.K.Saraswathi attended the lunchmeetingof the US Commercial Service to discuss on FY 15 partnership programs and events, on 22nd September 2015

• Ms.K.Saraswathi attended the book launchfunction of Great Lakes Institute of Management on 25th September 2015.

• Ms.K.Saraswathi attended theAGMof theHindustan Chamber of Commerce on 26th September 2015 at Hotel GRT Grand.

• Mr. S.Sankaranarayanan,Deputy Secretary,MCCI attended the meeting of (MSME meeting conducted by ITCOT on 12th September regarding Draft MSME Policy.

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Expert's Corner

Expert CommitteesThe Chamber has 14 Expert Committees with domain experts on varied subjects. They act as think tanks and assist the Chamber in proactively lobbying for business friendly policies both with the State and Central Governments, periodically discuss new policies and their impact on industries and commerce and prepare suitable representations, if needed to redress the grievances of the members. They also help in organizing seminars/workshops/round tables/conferences for the benefit of members. The Committees also counsel and advise members on their specific issues.

t h i s s p a c e f o r articles from these Experts in this feature Experts’ Corner.

can result in strong foundations for sustainable development. In 1965, with not enough land to collect but a small amount of the 2,340 mm of average rainfall it gets every year, the city had to expediently devise strategies to develop and manage its increasingly higher demand for clean and affordable water. Within this framework, the work of the national water agency, Singapore Government has been crucial to the overall development of the city.

Source of water for Singapore has been the imports from Johor, Malaysia, which will last, at least, until 2061. Four water agreements have been signed with this purpose: in 1927, 1961, 1962 and 1990, allowing Singapore to import water from Johor and allowing Johor to buy treated water from Singapore.

But for the past half century, Singapore has been acutely aware of the political risks associated with being dependent on another country for its water supply – and has sought to diversify its sources. That has involved a combination of ingenuity and capital expenditure on a scale probably unrivalled in the world.

Under a “Four National Taps” policy, water is generated from four sources for Singapore:

1. Imported water from Malaysia2. NEWater (recycled water);3. Water desalination; and4. Local catchments (i.e. storm water runoff) and

reservoirs.

While more than half comes from Malaysia, the shortfall is made up from desalinated seawater, water catchments and a massive purification programme implemented in 2003 called NE water.

Singapore has two separate systems to collect rainwater and used water. Rainwater is collected through a comprehensive network of drains, canals, rivers, storm water collection ponds and reservoirs before it is treated to become drinking water.

This makes Singapore one of the few countries in the world to harvest urban rainwater on a large scale for its water supply. Since 2011, the water catchment area has been increased from half to two-thirds of the island’s surface.

What Chennai can take away from Singapore?Water will be an important critical-resource issue for the social and economic development of any country or city in this century. Increasing demand for water and poor management practices over decades have already caused significant damage to the environment and the long-term development prospects of most cities.

With accelerating industrial and commercial activities and rapid urbanisation, proper wastewater management is steadily becoming a serious health and economic issue in India particularly in Chennai. As the nearby surface water and groundwater sources for urban areas are increasingly contaminated with domestic and industrial waste, these polluted sources will require higher levels of treatment before they can be used safely as potable water.

Yet, it does not have to be so. A good example is what Singapore has managed to do since 1965 when it became independent and was considered to be a developing country.

Its urban water and wastewater management practices were very similar then to those that were prevailing in India. The Singapore River was then more polluted than the Coovam, Adyar or Buckingham Canal in Chennai.

By considering water as a national strategic resource, Singapore managed to develop an urban water and wastewater management system that, within two decades, became the envy of the world.

Singapore’s journey from time of the independence in 1965 is an outstanding example that — in spite of multiple hardships — pragmatic policies, clear visions, long-term planning, forward-looking strategies, political will, and a relentless urge to improve,

R. Kulothugan, Chairman – Expert Committee on Environment, Pollution Prevention & Control Sr. Vice President, Orient Green Power Co. Ltd

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Expert's Corner

More remarkable is a so-called deep tunnel sewerage system, which consists of two large, tunnels crossing the island, two centralised water reclamation plants, deep sea “outfall pipes” and a sewer network.

The treated used water is then discharged into the sea through deep sea pipes or channelled to a NE Water factory on the rooftop of the reclamation plant where it is further purified through advanced membrane technologies into NE Water, which is pure enough to be bottled for drinking.

Completion of the deep tunnel project is supposed to halve the amount of land taken up by used water infrastructure, according to the Government of Singapore.

Singapore’s strategies looking to support the continuous growth of the city and look for self-sufficiency have included the expansion of catchment areas, water supply and demand strategies, including pricing and non-pricing mechanisms, water pollution control and large investments in research and development mostly in technology in order to develop non-conventional sources of water.

Water Conservation goals in the city have been achieved in the larger context of social and economic development. In spite of many challenges and difficulties, political leadership has worked together with the several governmental agencies and the general population to put the city on the track to achieve water security.

Given its geographical conditions, the quest for water self-sufficiency has put considerable strain on a land-constrained Singapore. The pursuit of this aim has also had a significant impact on the island’s urban development which has translated into a comprehensive way urban development has been conceived, planned and carried out. In Singapore, development came to be equated with urbanization and this process had to factor in water if it was to succeed. The resulting experiences have made this

a valuable example of how a city-state is able to formulate long-term plans, implement them in a timely and cost-effective manner, and keep on moving towards sustainable development as part of its overall growth strategies and development path.

Singapore’s water demand management strategy has had a strong emphasis on ‘valuing’ water and thus on pricing it. This philosophy is based on the responsible use of water where the underlying principle is that the next sources of water could cost much more than the current ones.

Fully backed, led and promoted by the highest political level, strategies aiming at propelling the city ahead have been formulated with a common goal in mind, fully aware of the fact that decisions on one social, economic, financial or environmental issue most likely will have a bearing in one or more of the others.

In a personal interview, when asked about the factors that have contributed to Singapore’s success in turning water from a vulnerability to strength, the late Prime Minister Lee Kuan Yew said, “it was critical circumstances, determination to succeed, comprehensive planning and the technology .The same process can be repeated by any city. But you must have the determination, the discipline, the administrative capability and its implementation. And you keep on looking for new technology.”

The Singapore Government invested the necessary funds to make the river clean. The people living in slums on both sides of the river were resettled. Economically, for every dollar the Government invested in cleaning up the river, it has received at least S$10 to S$12 of benefits.

The Singapore experience shows that, not only it is possible for a Third World country (as it was back in 1965) to achieve a better-than-First-World water management system within 15 to 20 years, but that this conversion is also economically attractive.

There is absolutely no reason Chennai cannot do the same.

“Beware big businesses - God gives you success to fail you!”At a time when our Chamber has focused on Start ups and our President is clearly spear-heading start ups as an effective means to the growth of the commerce

J. Raghunathan, Co- Chairman – Expert Committee – IT/ITES Co – Founder, Knowledge Capital Investment Group

ecosystem, entrepreneurship has come into the beacon light like never before.

I am not going to flashlight the oft-repeated definition or salient requirements and demands of being an entrepreneur. My intent is to focus on the need to “find start ups” in existing large businesses that have chained themselves with complex systems and processes.

Entrepreneurship is normally taken to mean the creation of new businesses. Yet nowhere is it more critical than in large established enterprises.

Another widely held view is that entrepreneurial behaviour is all about individual initiative and solitary pursuit.

15

Expert's Corner

organizations large in size find such entrepreneurship in short supply and the evidence is that more than two-thirds of the Fortune 50 companies have fallen of the list in the last 25 years.

It is not fair for me to blame only large businesses for stifling entrepreneurial spirits – equally guilty are any large organizations, be it a society, educational institution, or even a political party. The annihilation of an established party recently in the national capital needs no further elaboration!

Upsetting the status quo and doing things differently to create new forms of value is not easy to accept and assimilate yet unless, done, the future is at stake. It is a near-Hobson’s choice of changing versus surviving!

Another leading CEO who quipped, “we have a cultural reluctance to success unlike the businesses of the west”, exposes his admission to stifling entrepreneurial instincts within his organization. At the risk of being dubbed frivolous, let me give an analogy to children – not that business is child’s play – it is to highlight the creativity, innovation, team work and lack of inhibition of children, but which are all too often discouraged as they become adults. Children can often prove tenacious in their achievements, act boldly and are ready to risk failure! And children do have a sense of fun – an attribute that I would emphasize that we all must inculcate though we are running serious businesses!

To sustain success in future, let us unleash the child in us, foster and encourage entrepreneurship and “get our organization out of the way” for those employees who bring entrepreneurship to the table!

The truth is far from it!

In fact, entrepreneurship is highly collaborative and need to be germinated and nurtured in large businesses and can be applied to great effect.

But the reality is depressing!

“Many of us beat the entrepreneurship out of our employees” was a frank admission of one of the CEOs of a billion dollar company. Of course, I am not a party to deny that several large corporations have carefully fostered entrepreneurial spirit and reaped immense benefits out of that. I personally was given a large play field to build the software services business with ample entrepreneurial freedom which was no doubt a success, thanks to the aggressive and innovative spirit of the CEO! We do have amply chronicled success stories of entrepreneurial initiatives in large corporations like 3M, SONY and their few likes.

There is also no denying the fact that there are far too many instances where one tends to see large corporations as excessively bureaucratic, slow moving and risk averse. As the adage goes, “Those whom God seeks to destroy gives them 30 years of success” and success breeds complacency. Once entrepreneurial organizations, with time, get bogged down by systems and procedures required to cope with their size and complexity.

It is a formidable challenge for large businesses to face the nimble small competitors and they realize that it is a lot tougher to stay at the top than to get to the top! The organization of the future is one that thrives on change, stimulates change and embraces change. None of us can afford to be complacent. Business

ChAMbEr in thE nEws

16

what’s happening?

bonds or borrowings. It should also help in terms of keeping interest rates stable. For consumers or corporate, stable rates should help influence their investment decisions.

Large exposures framework and enhancing credit supply through market mechanism: In India, unlike many other markets, corporate access a large part of their funding needs from banks. In the West, much of their borrowings are through the market. The proposal now to nudge large corporate with borrowings from the banking system above a cut-off level to tap the market will mean two things: one, it will reduce the risk for banks given their huge exposure to corporate. Two, this should logically then lead to the availability of more credit or loans to small and medium sized business and other customers. It should also help in the development of a robust corporate bond market in the medium to long term.

More investments in offing (Courtesy – The Hindu)

Ten Companies from IT and manufacturing sectors have met State Government Officials and pledged to invest around Rs. 20000 crore. Some of the firms were participants at the Global Investors Meet 2015.

Land allocated

Of the 98 firms that signed MoUs during the recently concluded Global Investors Meet, 28 have been allocated land by the State Government. A few companies have got FDI clearance. More than 50 of the investments would be in Southern Districts.

RBI’s policy announcements: what’s there for the economy and the consumer? (Courtesy – The Indian Express)

On September 28, 2015, the RBI Governor Raghuram Rajan surprised the markets with a 50 basis point — or half a per cent — cut in the key policy rate, the repo rate, which is seen as a booster to sentiment and hopefully will translate into higher demand

What does the rate cut and the other policy measures Rajan announced today mean to consumers and the broader economy? –

Cut in repo rate by 50 basis points: By cutting its key policy rate, the RBI is signalling a lower cost of funds for banks which can borrow from the central bank. In turn, the lower borrowing costs should translate into lower rates at which consumers who want to buy a home, consumer durables or vehicles can access credit. That will add to demand in the economy and boost revenues. For the government too — the biggest borrower — there should be gains because of lower yields on bonds. However, for savers who have enjoyed relatively high effective rates on their deposits, it will mean that they have to settle for lower rates unless credit growth picks up. The deep cut also points to a possible reduction in interest rates on small savings schemes down the line with enough indications being given by the RBI and the government.

Higher investment by foreign investors in government bonds: This will be an additional source of investment besides banks or insurance companies for government

The Chamber has a conference room which can accommodate 25 persons which can be used as a training hall for a nominal rent. LCD Projector with screen is available for use. For more details, contact the Chamber vide email : [email protected] or call 044 24349452/24349871.

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