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PRESIDENT’S LETTER 

On the eve of Independence Day, newly-elected President Droupadi Murmu said India is entering its golden age on the 76^th year of Independence bolstered by the fastest growing economy in the world and a physical infrastructure supporting the new age digital sector and start-up ecosystem.

In a significant move, the Shipping, Railway and Chemical & Fertilisers ministry discussed the matters to make India a self-sufficient in sea container production. This is an issue that’s been on the radar of the Centre for many years but not much happened. The trade is heavily dependent on China, which has a monopoly with over 90 per cent market share in containers globally. The idea is to build an ecosystem that can help domestic producers to produce Make in India containers to help the trade. India’s trade suffered enormously due to container shortage starting in 2020 end due to Covid – related lockdown followed by Suez Canal blockade by a container ship in March 2021 leading to severe congestion at the ports of Europe and the US.

The Government is planning to overhaul the natural gas pricing policy with an aim to cushion consumers from global shocks and ensure fair rates for both the buyers and producers. The oil ministry may soon set up a committee to recommend ways to keep domestic natural gas prices stable and affordable for consumers while offering decent returns to producers. The ministry has also asked producers and consumers such as fertiliser, power and city gas companies to nominate representatives to the committee. The committee’s recommendation will help frame a new policy to replace the gas guidelines of 2014, under which volume-weighted average prices of gas in the US, Canada, Europe and Russia are used to determine domestic prices every two quarter.

The Centre is actively considering a National Right of Way framework to rationalise and smoothen implementation of public projects on all Government land, falling under purview of different ministries. Several Union Government projects from laying of utilities like electric cables, water pipelines and telecom towers to road expansion – are delayed due to varying procedures, timelines and charges for RoW over another department/ ministry land.  While the telecom department has just amended its own RoW rules to pave way for the 5G infrastructure role out, the problem is impacting projects and schemes implementation across ministries. PM Gati Shakti National Master Plan team is working on the National RoW framework which can be made applicable across all central ministries and departments to bring in some level of uniformity and predictability in processes. The ideas are to bring in some common norms so that public projects are not held back due to wide variations in RoW procedures.

The Securities and Exchange Board of India (SEBI) is considering a plan to allow Alternative Investment Funds (AIFS) to extend by two more years the lifecycle of investment products that are set to we wound up. The development assumes significance as several private equity and venture capital funds that are in the last few months of their lifecycle are finding it challenging to offload unlisted investments with liquidity conditions tightening. Under the current rules, a close-end AIF can have a fund life of minimum three and maximum 10 years. However, this 10-year period can be further extended by two more years if the AIF obtains consent of investors. SEBI is mulling an extension of another two years beyond this, implying a total fund life of 14 years.

Foreign portfolio investors (FPIs) returned to stock markets with a bang in August. After selling spree worth more than 33 billion dollars in nine months, between October 2021 and June 2022. In August alone the FPI buying in Indian markets stood at Rs. 44,500 crores (including the primary market purchase).

After making small finance banks eligible for authorised dealer category -1 licence, the Reserve Bank of India may take next step in liberalising their scope of activities by allowing them to co-lend with NBFCs. Currently, SFBs are not permitted to co-lend with another lender, only the scheduled commercial banks and NBFCs are allowed to co-lend to priority sectors like agriculture, MSMEs, education and housing.

Coming to over home state Kerala, Kerala’s new draft industrial policy promises a host of incentives aimed at attracting investments, promoting employment generation, and fostering entrepreneurship. The new policy, coming after a gap of four years, focuses on the State’s traditional sectors as well as the sunrise sectors including Artificial Intelligence, hi-tech farming, value added rubber products, medical equipment, biotechnology, graphene, electric vehicle and robotics.

As part of efforts to encourage MSMEs to source funds through non-traditional routes, rather than loans, existing and new MSMEs will be reimbursed 50% expenses subject to a maximum of ₹1 crore, incurred on floating Public Issue through the National Stock Exchange or the Bombay Stock Exchange, provided the funds thus raised are utilised for setting up or expanding enterprise in the State. MSME exporters will be reimbursed up to 100% of the stall charges incurred, subject to a maximum of ₹5 lakh for participating in one international fair or exhibition per year.

We whole heartedly welcome the draft industrial policy of Government of Kerala for attracting more investments and to encourage the MSME sector.

Catering to the rising opportunities in ship repair and construction, Cochin Shipyard Ltd (CSL) has geared up to meet the emerging demand from domestic as well as overseas customers. CSL is now getting ready to commission its new Rs. 1800 crore dry-dock facility by 2024. The new drydock which will come up in 15 acres in Kochi, has the capability to built bigger vessels including aircraft carriers. CSL recently delivered INS Vikrant to Indian Navy and the yard is now confident of building a second aircraft carrier in seven to eight years from now.

Moving on as part of the chamber’s India Forward Talk Series, I am happy to inform you that for the June edition of the India Forward Series we hosted, Shri. Nitin Jairam Gadkari, Hon’ble Minister for Road Transport & Highways, Government of India as the Guest Speaker on 30 June 2022 through video conference, his talk was based on ” Budget : 2022” He spoke on the upcoming National and State Highways and Road projects and also mentioned about future alternatives of petroleum products . He suggested future potential of ethanol and alternative energy options like Green Hydrogen energy.

The third meeting of the 8^th edition of the CEO Forum networking breakfast meeting 2022 was initiated on Saturday 23 July 2022, wherein Dr. Jose Paul, Former Chairman, Mormugao Port Trust (Goa)was the Guest Speaker. He spoke on the topic: “Construction of Undersea Tunnel between Vypeen and Fort Kochi and its impact on Connectivity, Business and Industry”. Dr. Jose Paul showcased examples of other counties successful undersea tunnel projects and also explained the logistic advantages of having undersea tunnel from Vypeen to Fort kochi. This session was very well received and appreciated by the CEO Forum members.

The Chamber also did an online interactive session with Dr. Thomas Issac, Former Finance Minister, Government of Kerala  on Wednesday, 15 June 2022.  Dr. Thomas Issac spoke on “Future of One Nation One Tax under GST – Implications of Supreme Court Judgement”. Since he was the former Finance Minister of Kerala during the implementation of GST, his views were very important.

The Chamber did a one to one interaction session with Adv. Thomas Joseph, Managing Director, Mapp Law Chambers on the context of Expanding r Business to Europe and the Hispanosphere

I am very pleased to inform you that The Cochin Chamber of Commerce & Industry celebrated its 165th Chamber Day on Tuesday, 30th of August 2022. Shri. Arif Mohammed Khan, Honourable Governor of Kerala was the Chief Guest on this occasion. The event celebrated 165 year history of the Chamber and was held at Grand Hyatt Bolgatty Kochi. On this occasion, Chamber released out a “Souvenir’ commemorating the Chamber’s 165 years journey, and this publication highlighted the Chamber’s storied past and priceless legacy.The Chamber also honoued Shri. C, Balagopal, Chairman, The Federal Bank Ltd with a “Life Time Achievement Award” and Shri. Sunil Kumar. V, Founder & Managing Director of Asset Homes with the “Entrepreneur of the Year Award”. Both the awards were handed over by the Honourable Governor.Inspired from the quotes of Swami Vivekanand, Honorable Governor emphazised the importance of gathering knowledge for building a successful future, while giving his address on “India Forward”.

Moving on chamber also had Delegation to Bangkok, Thailand on 19 September 2022 for the 28th International Exhibition of Food & Drink, Hotel, Bakery, Restaurant & Food Service Equipment, Suppliers & Service or Food & Hospitality Thailand (FHT), the delegation was very useful as it helped to meet with relevant Thai agencies and companies to discuss ways to further strengthen cooperation in food and hospitality industries which have been recognized as one of the priority sectors in Kerala.

Thank you, and Stay Safe.

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RECENT UNION CABINET DECISIONS

 

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FORTHCOMING EVENTS

• CEO FORUM Breakfast Meeting with Mr. Radhakrishnan B. Menon, Former Executive Director – HR, Cadbury India

• Certificate Workshop on Employee Development for Leaders

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RECENT EVENTS

• An Exclusive Virtual Interaction with Dr. Thomas Issac, Former Finance Minister, Government of Kerala – 15.06.2022

• India Forward Talk Series with Hon’ble Minister, Shri. Nitin Jairam Gadkari-30.06.2022

• CEO FORUM Breakfast Meeting with Dr. Jose Paul, Former Chairman, Mormugao Port Trust (Goa) – 23.07.2022

• Expand your Business to Europe and the Hispanosphere : Interaction with Adv. Thomas Joseph, Managing Director, Mapp Law Chambers – 11.08.2022

• 165th Chamber Day – 30.08.2022

The Cochin Chamber of Commerce & Industry celebrated its 165th Chamber Day on Tuesday, 30th of August 2022. Shri. Arif Mohammed Khan, Honourable Governor of Kerala was the Chief Guest on this occasion.

The event celebrated 165 year history of the Chamber and was held at Grand Hyatt Bolgatty Kochi.

On this occasion, Chamber released out a “Souvenir’ commemorating the Chamber’s 165 years journey, and this publication highlighted the Chamber’s storied past and priceless legacy.

The Chamber also honoued Shri. C, Balagopal, Chairman, The Federal Bank Ltd with a “Life Time Achievement Award” and Shri. Sunil Kumar. V, Founder & Managing Director of Asset Homes with the “Entrepreneur of the Year Award”. Both the awards were handed over by the Honourable Governor.

Inspired from the quotes of Swami Vivekanand, Honorable Governor emphazised the importance of gathering knowledge for building a successful future, while giving his address on “India Forward”.

• Visit of Chamber Delegation to Bangkok, Thailand – 19.09.2022

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VISIT of FOREIGN DIGNITARIES

Thailand:

Indonesia: 

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CHAMBER RESEARCH WING

NO. TDS. ON LOAN WAIVER / One Time Settlements

 

Central Board of Direct Taxes has issued circular dated 13.9.2022 clarifying that no TDS is attracted on waiver of loans / one time settlement by banks and financial institutions. Income Tax Law was amended by Finance Act 2022 making it mandatory to deduct income tax at source on benefits / perquisites provided to the business from 1st July 2022. The CBDT circular issued in this regard on 16th June 2022 suggested that banks and financial institutions would be required to deduct income tax @10% in respect of amounts waived which are deemed to benefits to the borrower. The Cochin Chamber of Commerce and Industry had represented to the Finance Ministry that this requirement would bring additional burden on the banks and financial institutions as in addition to the loss suffered on account of amounts waived , they will have to make upfront payment of the income tax also as it may not be possible to recover the same from the borrowers. In addition to the additional cost, this would have dented the resolution process of banks. Many banks / financial institutions had put on hold the waiver / loan settlements after circular of 16th June. This clarification exempting the banks and financial institutions from the TDS on loan waiver / one time settlement should pave way for such institutions to move forward with the loan settlements without any additional costs and CBDT should be thanked for coming out with a quick clarification.

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EXIM STATISTICS

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