An engineering professionals body has written to Union Minister Nitin Gadkari alleging that foreign companies are flouting the MSME tendering norms.
The Consulting Engineers Association of India (CEAI), in a letter to Gadkari, Union Minister for Micro, Small and Medium Enterprises (MSME) and Ministry of Road Transport and Highways (MoRTH) has drawn the attention of the government towards flouting of the MSME tendering norms by “the powerful foreign companies”.
“The Union Government had recently changed the tendering system to benefit the small and medium enterprises in the country by limiting tenders below Rs 200 crore for Indian companies only. But the provisions are being flouted by powerful foreign companies wherein they set up business operations in India by incorporating a company under Companies Act 2013 either as Joint Ventures or Wholly owned subsidiaries or a Liaison/Representative Office.
“These entities operate as an Indian Company, duly complying with the provisions of the Indian Company Law and Indian tax laws. The current definition allows such companies to enjoy all benefits provided to Indian companies, especially the MSME’s,” said Amitabha Ghosal,President, Consulting Engineers Association of India (CEAI).
“At present for all practical purposes, these foreign companies become Indian company under the ACT, do their business and after paying due taxes, accrue the profits after tax to their parent company abroad, there by depleting the country of precious Forex reserves. The parent company in turn assists them with low interest funds in comparison to a home-grown Indian Company which borrows from banks for their operations at relatively higher rates of interest. This is clearly not a case of providing equitable and fair opportunities to the Indian Companies whose contribution, besides to the country’s economy is also towards developing skilled workforce, and providing employment” said K.K. Kapila, Chairman, Infrastructure Committee, CEAI.
“Therefore, in line with the philosophy of growth of the rightful stakeholders, the evolving global scenario during Covid-19 when every country is focused on promoting their own business community and economic growth, there is an urgent need to address the country of origin to be eligible to bid for the government Tenders. Taking a leaf out of practices in the West and Middle-East, the definition of the Indian company must take into account the Nationality of the stakeholder,” said Kapila.
JLR India launches new Defender SUV
Mumbai, Oct 15 (IANS) Tata Motors-owned Jaguar Land Rover (JLR) India on Thursday launched the New Land Rover Defender in India.
The new vehicle is available in two distinct body styles, the 90 (3 door) and the 110 (5 door).
According to the company, the New Defender 90 is priced from Rs 73.98 lakh and the New Defender 110 is priced from Rs 79.94 lakh (ex-showroom India).
It is offered with a 2.0 l (litre) ‘Turbocharged four-cylinder petrol engine’, producing 221 kW (300 PS) and 400 Nm of torque.
At present, Jaguar Land Rover vehicles are available in India in 24 cities.
IT, telecom stocks drag Sensex 560 points down (Ld)
Mumbai, Oct 15 (IANS) Indian stock market plunged on Thursday due to heavy selling pressure on IT and telecom stocks.
The BSE Sensex was trading over 500 points lower during the afternoon trade.
Along with weak cues from the global markets on the back of the fading hopes of further stimulus in the US, profit booking also pulled the IT stocks lower.
Around 1.39 p.m., Sensex was at 40,233.54, lower by 561.20 points or 1.38 per cent from the previous close of 40,794.74.
It opened at the day’s high of 41,048.05 and a low of 40,297.34 points.
The Nifty50 on the National Stock Exchange was at 11,818.90, lower by 152.15 points or 1.27 per cent from its previous close.
Hyundai exports over 2L ‘Made in India’ compact SUV Creta
New Delhi, Oct 15 (IANS) Bolstering the Centre’s ‘Make in India’ drive, automobile major Hyundai Motor India (HMIL) on Thursday said it has exported over two lakh units of ‘Made-in-India’ compact SUV Creta.
“The magnanimous 2,00,000 export milestone achieved by the Creta is a testimony of Hyundai’s undeterred focus and commitment to ‘Make in India, Made for the world’,” said S.S. Kim, MD and CEO, Hyundai Motor India.
“Hyundai’s state-of-the-art plant in Tamil Nadu manufactures global quality products in both domestic and international markets further providing our customers with quality time to lead a happy life.”
The compact SUV was launched in 2015.
In CY 2019, Hyundai Motor India exported 1,81,200 units with 792 customised variants according to country specific preference and demand.
The company had an export share of 26 per cent during CY2019 in passenger car exports from India.
Besides, Hyundai has also surpassed the three million vehicle export milestone earlier in 2020, exporting cars to 88 countries.
At present, the company is exporting 10 models namely — Atos (Santro), Grand i10, Xcent, Grand i10 (Nios) and Grand i10 (Aura), Elite i20, i20 Active, Accent (Verna), Venue and all new Creta.
Home sales in Delhi-NCR up 38% in Jul-Sep: JLL
New Delhi, Oct 14 (IANS) With the gradual lifting of lockdown restrictions, housing demand in the July-September quarter improved and the sale of residential properties increased by around 38 per cent during the period in Delhi-National Capital Region, according to a JLL report.
A total of 3,112 housing units were sold during the period under review, compared to 2,250 units sold in the April-June quarter.
As per the report, most of this traction was witnessed in Noida, which contributed nearly 48 per cent to the overall sales, as it caters to all price segments. Noida was followed by Ghaziabad constituting 31 per cent of the sales and it mainly caters to the mid and affordable segments.
Gurugram accounted for nearly one-fifth of the overall sales during this quarter.
“The quarter saw a preference for ready-to-move-in projects by reputed developers. The affordable and mid segment projects garnered more interest from the homebuyers as compared to high-end and luxury projects,” it said.
The emerging corridors of suburban markets such as Noida-Greater Noida Expressway, Golf Course Extension Road and Dwarka Expressway in Gurugram continue to drive sales on the back of expected augmentation in physical and social infrastructure in these markets.
Given the current business environment, developers exercised restraint and caution in launching new projects, JLL said.
Three projects were launched during the third quarter in the region, two in Gurugram and one in Noida.
“While the launches were in high-end and upper mid segments in Gurugram, the project in Noida catered to the mid segment buyers,” the report said.
Real estate developers continue to focus on offloading the existing unsold inventory and completing the projects under construction. Prices remained range-bound across most of the submarkets within Delhi-NCR during the quarter.
Manish Aggarwal, Managing Director, Delhi NCR, JLL India, said: “With the upcoming festive season, sales are only expected to increase from the current levels. Also, attractive pricing and developers doling out lucrative schemes and freebies will further incentivise the fence sitters to buy homes.”
FSCA issues norms for market access through ‘authorised persons’
New Delhi, Oct 14 (IANS) The International Financial Services Centres Authority (IFSCA) has issued a regulatory framework for market access through “authorised persons”.
The development comes with a view to widen the investor base for exchange traded products in the International Financial Services Centre and to enhance the secondary market liquidity. The move would help in deepening the market, the IFSCA said in a statement.
An authorised person is any individual, partnership firm, LLP or body corporate who provides access to the trading platform of a stock exchange as an agent of the stock broker.
Under the framework, the stock brokers or trading members — registered with either IFSCA or SEBI or both — of the stock exchanges shall be permitted to provide market access to investors through authorised persons based in foreign jurisdictions.
FM stresses on structural treatment of debt at G20 meet
New Delhi, Oct 14 (IANS) Finance Minister Nirmala Sitharaman on Wednesday said that there is a need for more structural treatment of debt in the long term.
Addressing the G20 Finance Ministers and Central Bank Governors Meeting, through video conference, she said that the process should primarily be guided by the objective of helping such countries overcome the fiscal stress caused by the pandemic, a Finance Ministry statement said.
Sitharaman underlined that it would be important to take into consideration the circumstances and concerns of both creditors and debtors and that in the process of debt restructuring, care must be taken to not saddle the debtor countries with overly burdensome conditionalities.
The ministers and Governors of G20 countries had gathered to discuss the current global economic outlook and G20’s response to the Covid-19 pandemic, along with other G20 Finance Track priorities for the year 2020.
In the first session, the Finance Minister spoke on updates to the G20 Action Plan in response to Covid-19 which was endorsed by the G20 Finance Ministers and Central Bank Governors on April 15. Sitharaman emphasised that the updated commitments in the G20 Action Plan have to be kept relevant in the current policy context for the action points to remain effective as a policy response to Covid-19.
Explaining the core guiding principles for the updation of the G20 Action Plan commitments, she highlighted the need to balance the health and economic objectives in the recovery plans.
The Finance Minister also spoke about the need to consider heterogeneity of policy responses among member countries, international spillovers from domestic policy actions and reforms required in the global regulatory regimes particularly with respect to the pro-cyclicality of credit rating downgrades.
A key outcome of the G20 Action Plan has been the Debt Service Suspension Initiative (DSSI) which provides time bound suspension of debt service payments for the low-income debtor countries that request forbearance. The initiative was initially in force till end of 2020.
During this meeting, in light of the continued liquidity pressures, the G20 Finance Ministers and Central Bank Governors agreed to extend the DSSI by 6 months, and to examine by the time of the 2021 IMF/WBG Spring Meetings if the economic and financial situation requires a further extension.