Embed Size (px)
Citation preview
16�THE ECONOMIC TIMES | MUMBAI | MONDAY | 19 SEPTEMBER 2016Economy: Macro, Micro & More
CONVERSION ofPhysical shares to DematA/c & Conversion ofN.S.D.L Demat A/c toC.DSL Demat A/c services Available at doorstep. Anil : 8652301997
.......
......
......
......
...
...................................................................................................... ..........................................................................
PHARMACEUTICALFactory for Sale in Mumb-ai. Ideal for API.Only seri-ous buyers call 7720965965Brokers excuse.
NPA Solutions : Capital ForOTS and working capital sub-ject to viability. Best guid-ance for OTS/Debt Recast.Detection of sickness at earlystage/leakage control measu-res with monitoring of Fi-nancials. Convert contacts tocash. Expd banker H.M.Arora 98150-20234,99882-50234
Mumbai: The Reserve Bank ofIndia (RBI) has issued an ulti-matum to Indian banks on cy-ber crimes, asking them to im-mediately report any breach ofsecurity so that the overall net-work is not compromised.
The tough stance follows thereluctance of some banks to re-port such frauds in order to av-oid negative publicity. The ban-king regulator has set a deadli-ne of March 31, 2017, for banks toput in place a mechanism to re-port cyber attacks immediately.
A team of RBI officials, led byexecutive director Meena Hem-chandra, has conveyed this to
senior executives of banks in ameeting held recently. The offi-cials told bankers that RBI willhandhold them till March 31next year but after that, banksshould be prepared for punitiveaction if they fail to immediate-ly inform about any cyber at-tack, two senior officials said.
RBI did not respond to an emailsent by ET till press time Sunday.
“Banks’ have to alert RBI im-mediately even if the cyber at-tack did not fructify,” a personpresent in the meeting said, quo-ting an RBI official. “AlertingRBI about cyber frauds that aresystemic in nature, such ashacking of a bank’s server, wo-uld enable them take proactivemeasures and alert other banksto take preventive measures.”
RBI Warns Banks to Immediately Report Cyber Fraud
New Delhi: Solar manufacturers are unfa-zed by the WTO’s upholding of the US comp-laint against India, as the ruling was alongexpected lines, but project developers whoimport equipment are worried that the go-vernment may retaliate by imposing duties.
Last week, the appellate body of the WTO up-held two earlier rulings by a WTO committeeagainst the domestic content requirement inthe Jawaharlal Nehru National Solar Mis-sion. “We had known for the last couple ofmonths that this would be the outcome,” saidHR Gupta, MD, IndoSolar and secretary of theIndian Solar Manufacturers Association. “Itis business as usual for us. There are manyother options to consume manufacturing ca-pacity produced locally, including that of di-rect procurement by the government.”
Others maintained that India had already setabout improving its solar manufacturing ca-pabilities, so that the ruling would not matterin the long run. “Many companies, big andsmall, are beginning to set up fully integratedmanufacturing facilities to build solar modu-les from scratch. That is the only way for-ward,” said Pranav Mehta, chairman, Natio-nal Solar Energy Federation of India.
Solar developers, who in any case buy mostof their modules from foreign companies,especially Chinese, were also unfazed.“PSUs will continue to buy local modules asthey have been doing,” said Sunil Jain, CEO,Hero Future Energies.
“But if the government was to retaliate andimpose anti-dumping duty on foreign modu-les, it could prove a problem for us.” Reimpo-sing anti-dumping duty on solar modules,which was abolished in late 2014, would raisetheir cost for Indian developers, thereby ren-dering solar tariffs less competitive.
Solar Makers at Easeover WTO Backing US,But Importers FearAnti-dumping Duty
Sharmistha Mukherjee & Rajat Arora
New Delhi: The government’s ambitiousprogramme to get old, polluting vehiclesoff the road has hit an unexpected speedbump: Goods and Services Tax (GST).
The Voluntary Vehicle Fleet Moderni-sation Programme (V-VMP) is back onthe drawing board, as the governmentreviews its options to reward those whoagree to junk their old vehicles to buynew, less-polluting, ones.
The earlier plan was to levy lower excisetax on new vehicles bought under V-VMP.But the new tax system that is expected totake effect next fiscal will amalgamate ex-cise tax into the overarching indirect taxcalled the GST. The finance ministry do-esn’t favour giving incentives under GSTand has directed the roads transport mini-stry to examine other methods to encoura-ge people to scrap old vehicles.
“I had recently met the finance minister(Arun Jaitley) to discuss the proposed po-licy. He is in favour of providing financialbenefits to people for scrapping vehicles,”said Road Transport & Highways Mini-ster Nitin Gadkari. “(But) the minister is
not in favour of excise duty exemption inthe wake of the upcoming GST law, as theGST council will have to clear it. He is ofthe view that we could give financial in-centives under some special scheme. Weare reworking the proposal as per the FM’ssuggestions and will then give it to the CoS(Committee of Secretaries).”
The roads ministry is working on anew proposal, which will shortly be putup before the committee comprisingsecretaries of the roads, steel, finance,heavy industries and environment mi-nistries, a senior official in the roadsministry said.
The draft policy currently proposes slas-hing excise duty by half on the purchase ofa new vehicle after scrapping an old one,fair value for the scrap and special disco-unts from automobile manufacturers.The incentives are expected to reduce thecost of a new vehicle for the buyer by 8-12%. Further, to encourage commuters toshift to new and high capacity buses,which will help decongest roads, the poli-cy also recommends complete excise ex-emption for state transport buses.
“The principles remain the same. We willincentivise the scheme for the initial 2-3years, particularly to get off roads old pol-luting trucks and buses,” said the official,who spoke on condition of anonymity.
The finance ministry has also sugges-ted that the vehicle modernisation pro-gramme be made mandatory instead ofkeeping it voluntary for all heavy vehi-cles which are more than 15 years old.
Govt Plan to Get Old CarsOff Road Hits GST HurdleFinmin not in favour of sops under GST, wants roads ministry to explore other options
No Easy Ride
Ministry had earlier proposed three incentives: 50% reduction in excise duty on purchase of a new vehicle, fair value of scrap and specialdiscounts by automakers
Roads ministry reworking sops under voluntary vehicle fleet modernisation scheme
New scheme to dole out incentives to consumers scrapping old polluting vehicles will be put up for approval this month
New Delhi: The government will introducereal-time random emission tests for on-roadvehicles from 2020 to prevent a repeat of theVolkswagen emission scandal.
German auto giant Volkswagen had lastyear admitted to fitting 11million of its vehi-cles with a software “defeat device” that ma-nipulated emission tests.
At present, India has no rule for emissiontests of on-road vehicles, which are onlytested in laboratory condition before theyhit the road.The government aims to usher
in real-time emission testsfrom April 2020 to coincidewith the launch of stricterBharat Stage (BS) VI fuelemission norms. The roadtransport and highways mi-nistry has already issued thenotification for implemen-ting the BS VI standards. Re-al-time emission tests are apart of the notification.
“In case the on-road emissionresults were different from thelab results, the government co-uld not have acted on the auto
company for cheating. We could have justpressurised them to recall vehicles. Thesetests would give us the real picture,” a seniorgovernment official said. “During type appro-val applicable from April 1, 2020, real worlddriving cycle emission measurement will becarried out for data collection,” the govern-ment notification said.
The need for real world driving cycle mea-surement, as the on-road emission tests arecalled, had arisen after the Volkswagenscandal. The auto company allegedly had asoftware fitted in cars that sensed when thecar was being tested and then activated equ-ipment that reduced emissions. But the soft-ware turned the equipment down during re-gular driving, increasing emissions far abo-ve the permissible limits.
“Global analysis has shown that vehiclesgenerate substantially higher emissions onroad than in laboratory conditions, especial-ly in case of emissions of diesel vehicles,”the official added. The BS VI notification al-so has a clause for vehicle ageing test that co-uld be done at 1,60,000 km or after five years.In a bid to curb vehicular pollution, the go-vernment had earlier decided that it wouldleapfrog directly from BS IV emissionnorms for petrol and diesel to BS VI.
Govt to IntroduceReal-Time EmissionTests for On-roadVehicles from 2020
India has norule now foremissiontests ofon-roadvehicles,which areonly tested inlaboratories
Direct Selling: Clean-up ActThe government has come out with guidelines to regulate direct selling companies operating in the country. The aim is to protect consumers and stop direct sellers from making exaggerated claims about the benefi ts of their products or charging fee from their agents. Here’s a snapshot of the direct-selling channel in India and abroad...WHAT IS DIRECT SELLINGGenerally it means selling of goods and services to consum-ers at their homes or work-places and not at a fi xed retail outlet. Modern direct selling is understood to have started in India with Eureka Forbes in 1982.
ASIA-PACIFIC
82(45)NORTH
AMERICA
36(20)
EUROPE
33(18)
SOUTH & CENTRAL AMERICA
31(17)AFRICA & MIDDLE EAST
1.2(0.70)
FIGURES:
$ billion(Share%)
AMWAY, AVON & HERBALIFE TOP 3 PLAYERS ACCOUNTING FOR 20% OF THE MARKET
2013 revenue, $ b1 Alticor (Amway)/U.S. 11.8
2 Avon Products Inc. / U.S. 9.95
3 Herbalife Ltd / U.S. 4.8
4 Vorwerk & Co. KG / Germany 3.7
5 Mary Kay Inc. / U.S. 3.6
6 Natura Cosmetics SA / Brazil 3.2
7 Nu Skin Enterprises Inc. / U.S. 3.18
8 Tupperware Brands Corp / U.S. 2.67
9 Belcorp Ltd. / Peru 1.96
10 Orifl ame Cosmetics SA / Luxembourg 1.95
South
`1900cr
East
`1340cr
West
`1200cr
North-East
`900cr
North
`2200cr
INDIA
NORTH INDIA LARGEST DIRECT
SELLING MARKET
GLOBALLY, DIRECT SELLING MARKET IS WORTH AROUND $183 BILLION, EMPLOYS 100 MILLION PEOPLE, OF WHICH 75% ARE WOMEN
IN INDIA, GROWTH IN DIRECT SELLING TOOK OFF IN AFTER THE LIBERALISA-TION PROCESS BEGAN IN EARLY 90S, CURRENT MARKET SIZE ` 7,500 CR
Amway starts manufacturing unit in TN
Eureka Forbes established
Amway Avon, Orifl ame, Tupperware
Modicare became one of the fi rst few Indian companies to adopt this
channel of distribution
Avon’s fi rst manufacturing base
Industry attains market size of `7,500 cr, generated `40-45 cr in tax revenure for govt
1982 1996 2010 2014 20161995 1996-9795
PYRAMID OR PONZI SCHEMES?
DIRECT SELLERS CLAIM their business is often wrongly confused with pyramid or ponzi schemes
IN 2014, AMWAY’S TOP offi cial was arrested on charges of cheating and other fi nancial fraud. IDSA, a self-regulatory body of direct sellers, called for amending the Prize Chits & Money Circulation (Banning) (PCMC) Act, under which the offi cial was arrested. It wanted the government to exclude the direct-selling segment from the act and differentiate it from pyramid and ponzi schemes.
SOURCE: KPMG-FICCI
