India signs taxation pact with Albania

New Delhi: The Government of India has signed double taxation avoidance agreement (DTAA) and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital with Government of Albania, as per the Ministry of Finance in a statement. The agreement was signed by Dr Sudha Sharma, Chairperson, Central Board of Direct Taxes (CBDT) and Mr Fatos Kerciku, the Albanian Ambassdor.

The agreement aims to provide tax stability to the residents of India and Albania and will facilitate mutual economic cooperation between the two countries. It will also stimulate the flow of investment, technology and services between India and Albania.

DTAA incorporates provisions for effective exchange of information between tax authorities of the two countries in line with latest international standards, including exchange of banking information and supply of information without recourse to domestic interest, it added.

The DTAA provides that business profits will be taxable in the source state if the activities of an enterprise constitute a Permanent Establishment (PE) in the source state. The agreement also provides for fixed place PE, building site, construction & installation PE, service PE and agency PE, besides an Article on Assistance in Collection of Taxes. This article also includes provision for taking measure of conservancy, highlighted the statement.

Moreover, it incorporates anti-abuse (limitation of benefits) provisions to ensure that the benefits of the agreement are availed of by the genuine residents of the two countries, it added.

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World Bank to help set up tool rooms for SMEs

The manufacturing sector has been facing tough competition in the national and international markets, as most MSMEs cannot afford captive tool rooms
To improve the competitiveness of micro, small and medium enterprises (MSMEs) in the manufacturing sector, the World Bank has joined hands with the ministry of MSME to make quality tools and testing facilities available to these enterprises at reasonable cost, by setting up tool rooms in the public sector.

This has been stated by the Federation of Micro, Small and Medium Enterprises (FISME) on its website, quoting a notification issued by R K Rai, director, tool rooms.

The proposed project will increase the competitiveness of MSMEs and conduct training programmes to improve the skill set of the labour force in key high-value engineering sectors, including electronic systems design and manufacturing, plastics, automotive and aerospace industries.

At the institutional level, the network of hi-tech tool rooms and existing training capacity is insufficient to meet the growing demand in high-value engineering design, and needs a focused effort in order to address declining competitiveness, according to the notification.

The manufacturing sector has been facing tough competition in the national and international markets, as most MSMEs cannot afford captive tool rooms. Tool rooms are playing a useful role, and more are needed in the country, said FISME.

The cost of each tool room is estimated at $20 million. Thus an outlay of $300 million in external finance may be required for setting up the 15 tool rooms planned during the Twelfth Plan (2012-17), in addition to funds already being provided by the MSME ministry and the state government concerned.

To foster the growth of the MSME sector, the Union government has set up 10 state-of-the-art tool rooms. These promote precision and quality in the development and manufacture of sophisticated moulds, dyes, tools and equipment.

At present, the development commissioner for MSME operates 10 tool rooms and eight technology development centres. Several of these have been set up through collaborations with German and Danish agencies and the United Nations Industrial Development Organization (Unido). These technology centres have been providing technical and vocational training to more than 100,000 trainees annually.

The project also envisages the scaling up of the tool rooms' training activities, possibly through a change in their organisational set-up, to help improve coordination between research and industry (public and private, domestic and international), and developing linkages with ITIs and polytechnics.

According to the fourth All India Census of MSMEs, the number of enterprises and employment opportunities in this sector has grown by more than 25 per cent in the period 2006-07 to 2011-12, compared to the period 2001-02 to 2006-07.

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Hero MotoCorp enters Africa

New Delhi: The country’s largest two-wheeler maker Hero MotoCorp (HMC) on Friday announced its entry in to the African continent with the launch of its brand and products in Kenya where it has also set-up an assembly unit.

The company’s operations are set to commence in Burkina Faso and Ivory Coast next week. In Kenya, HMC has partnered with Ryce East Africa to sell its two-wheelers in the country. As per the arrangement, Sameer Group (a part of Ryce East Africa) has been appointed as the authorised distributor of Hero MotoCorp range of two-wheelers in Kenya. Pawan Munjal, managing director and chief executive officer, HMC said: “We are delighted to see brand Hero make its debut in the African continent with the first launch in Kenya. This is a strategic market for us in our overall plan for the continent, which is why we are also starting our first Africa CKD assembly operations here.”

HMC said it has introduced a range of Hero two-wheeler brands across categories, including the entry-level segment, Dawn, the Deluxe segment, Splendor Pro, Glamour and Hunk, and the premium segment, Karizma.

"We are confident our products will appeal to customers across a wide price spectrum and create a new benchmark for mass mobility in Kenya. Indeed, our Africa business is going to play a crucial role in our plans of taking Hero global," added Munjal. Overall, the company aims to sell 10 million units by 2016-17, 10 per cent of which is scheduled to come in from its international operations.

Hero MotoCorp will soon launch brand-building initiatives in the African market with the English version of the iconic Hero anthem 'Hum Main Hai Hero' (There's a Hero in Each of Us), which will be aired across radio stations in Kenya, the company said.

The company's foray in Africa comes close on the heels of its launch in Central America, where the company commenced its operations in Guatemala, El Salvador and Honduras in May. Its other international markets include Sri Lanka, Bangladesh, Nepal and Colombia.

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Foreign Investment Promotion Board gives go ahead to 7 pharma FDI proposals

New Delhi: The Foreign Investment Promotion Board (FIPB) on Friday cleared seven Foreign Direct Investments (FDI) proposals for investment in Indian pharmaceutical companies, ending the policy of uncertainty over Investments in the sector.

It deferred three proposals as there were ownership issues. The Department of Industrial Policy and Promotion (DIPP), the nodal body for framing FDI policy, wants to review the policy to ensure there are enough safeguards to ensure domestic healthcare concerns.

In all, the FIPB, which is headed by Department of Economic Affairs Secretary Arvind Mayaram, discussed 30 Foreign Direct Investment (FDI) proposals. The three proposals deferred will be taken up after the DIPP clarifies the policy.

The proposals which were discussed in the meeting on Friday include that of Singapore's GlaxoSmithKline Pte Ltd, US' Mylan Inc, Mauritius-based Castleton Investment Ltd, Mumbai-based Ferring Therapeutics and Hyderabadbased Verdant Life Sciences.

At present, 100% FDI in pharma sector is allowed through automatic approval route in the new projects but the foreign investment in the existing pharma companies requires FIPB approval.

This distinction was made last year following concerns that largescale acquisition of Indian pharma companies by MNCs could compromise public health as the foreign companies may stop manufacturing cheaper drugs.

The government had also decided to build in conditions to ensure that Indian company did not stop producing essential drugs after being acquired by a foreign company. The Department of Industrial Policy and Promotion is likely to clarify these conditions soon after which proposals that envisage change of control could be taken up.

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Crompton Greaves wins Rs 28-cr order from France

Mumbai: Crompton Greaves (CG), an Avantha Group company, has bagged a contract worth €3.5 million (Rs 28 crore) for the design, engineering, supply, installation and commissioning of a wind-power farm substation at the 75-Mw Seine Rive Gauche Nord wind farm in France. CG will also be responsible for building/upgrading the overall electrical system.

The project includes all electrical, mechanical and civil engineering work, supply of two 45 MVA step-up power transformers, medium- and high-voltage air insulated switchgear, substation automation system, buildings, and ancillaries.

The substation will help integrate wind energy and boost power supplies to meet the growing residential demand besides reinforcing the transmission grid and improving reliability, efficiency and power quality. The total 150Gwh of installed capacity will produce electricity for over 55,000 households with an estimated reduction in emissions of 130.000 tonnes of CO2 a year.

The project is scheduled for completion by mid 2014. Substations include equipments that protect and control the flow of electric power, transform voltage levels and facilitate the safe and efficient transmission and distribution of electricity in the grid.

CG was successful against established industry competition in securing this second reference project in the French renewable sector after the 225kV wind substation commissioned in 2011 for VALECO’s wind farm “Les monts de Lacaune”.

“The contract demonstrates CG’s local project management strengths, and on and offshore track record besides our cost-efficient approach in offering turnkey “design and build” grid infrastructure solutions,” said Laurent Demortier, CEO & Managing Director of the company.

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Indian investments reach US$ 11 billion in the US

New Delhi: Indian investments in the US has reached US$ 11 billion and has created more than 100,000 jobs, according to a report titled ‘Investing in America, How India Helps Create American Jobs’ by the US India Business Council (USIBC).

The report highlights ways in which the US economy is benefitting from the successful bilateral and business relationship with India, is scheduled to be released during the USIBC’ 38th Anniversary Leadership Summit on July 11, 2013.

The Indian direct investment in the US grew from US$ 200 million to nearly US$ 5 billion during 2000-10 and created 50,000 jobs, said Mr William Burns, US Deputy Secretary of State, in October 2012.

Indian investment in the US has touched US$ 11 billion, with as many as 100,000 American jobs created, according to the latest USIBC study.

USIBC has launched the Coalition for Jobs and Growth (CJG) to protect the interest of Indian companies in the US, which helps American businesses remain competitive in the global economy.

"USIBC supports the free movement of technical professionals. This freedom of movement is essential to US job creation, and is at the heart of our future economic prosperity," said Mr Ron Somers, President, USIBC.

The CJG believes that an open American economy helps give the United States the influence it needs to ensure that other economies stay open as well, it said.

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India-Israel trade rises to $6 billion in 2012-13

Hyderabad: Trade between India and Israel touched the $6-billion mark during 2012-13, up from $5.15 billion in 2011-12, according to an official from the Israeli Embassy.

Addressing a meeting here hosted by the Federation of Andhra Pradesh Chambers of Commerce and Industry (Fapcci) and Indo-Israel Chambers of Commerce and Industry, Jonathan Ben Zaken, Attaché - Economic and Commercial Affairs, Embassy of Israel, said trade volumes had grown to this level from a modest $200 million in 1992.

He further said bilateral relations between India and Israel had strengthened significantly in recent years with both nations experiencing a convergence of interests in agriculture, farm research, science, public health, IT, telecommunications and cooperation in space.

The Israeli industry is keen to take advantage of synergies with India in areas like water technologies, information technology and sectors that Israel is strong in.

About 265 information technology companies are doing significant business in Israel.

His country was always looking for innovation in solutions, technology, development and relations between countries, he said.

Fapcci President Srinivas Ayyadevara said: "Early implementation of the proposed free trade agreement between India and Israel will boost the bilateral trade multi-fold."

Ken Uday Sagar, President, Indo Israel Chambers of Commerce and Industry, explained the potential for collaboration and scope of bilateral trade.

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