FICCI : Industry's Voice for Policy Change

Ten News | Jan 16, 2021

Roundtable discussion with Chairman, SEBI on business responsibility and sustainability reporting

FICCI congratulates SEBI for organising a meaningful and timely discussion on SEBI’s Consultation Paper on Business Responsibility and Sustainability Reporting. Several important issues included in the SEBI paper were discussed with stakeholders such as disclosures on waste generation and recycling, water and energy efficiency, human rights, customer privacy, financial implications of climate change, conduct of social impact assessment for projects, carbon emission, employee turnover, etc.

The meeting was chaired by Ajay Tyagi, Chairman, SEBI. Senior officials from SEBI – S K Mohanty, Whole Time Member and Amarjeet Singh, Executive Director also guided the discussions.

Subhrakant Panda, Vice President, FICCI represented industry’s views at the meeting along with other senior industry leaders representing a wide spectrum of sectors such as chemicals, aviation, textiles, auto, power, constructions, metal, mining, cement, financial services, consumer goods and IT. The session was moderated by Sunil Sanghai, Chairman, FICCI Capital Markets Committee.

It was highlighted for the Regulator’s attention that a uniform applicability of the reporting requirements across industries may not result in meaningful disclosures, given the varying nature of businesses across industries and at times, within the same industry. It was also suggested that voluntary applicability of the reporting format be extended for two years instead of the proposed one-year period.

SEBI was receptive to the suggestions and agreed to consider the inputs considering the larger interest of the economy and nation.

The Economic Times | Jan 15, 2021

Sebi chief chairs meeting with corporate India on business responsibility and sustainability reporting

Sebi chief Ajay Tyagi on Friday told corporate India, that the proposed format for business responsibility and sustainability reporting is aimed at bringing greater transparency through disclosure of material ESG(environmental, social and governance) related information. As it would allow market participants to identity and assess sustainability- related risks and opportunities.

The Securities and Exchange Board of India(Sebi) conducted a round-table, which was chaired by Tyagi, on business responsibility and sustainability reporting (BRSR).

“This, I am sure, will give a big fillip to transitioning towards sustainable investments and a sustainable economy,” Tyagi said while addressing the participants.

The regulator has proposed a new BRSR format that would cover ESG related disclosures and would be applicable for the top 1000 listed companies by market capitalisation.

The discussions in round-table centered around enhancing key environment, social and governance disclosures. Such disclosures are of importance to both investors and other stakeholders, Sebi said in a statement.

The participants represented diverse sectors, including pharmaceutical, chemicals, textiles, power, aviation, consumer goods, IT and financial services.

Outlook | Jan 15, 2021

Format for biz responsibility, sustainability reporting to bring in more transparency: Tyagi

Regulator Sebi on Friday said the proposed format for business responsibility and sustainability reporting for listed companies will bring in greater transparency through disclosure of material ESG (environmental, social, governance) related information.

At a meeting with industry leaders on business responsibility and sustainability reporting (BRSR), Sebi Chairman Ajay Tyagi said such disclosures are pertinent to both investors and other stakeholders.

Under the proposal, the new BRSR format covering ESG perspective would be applicable for the top 1,000 listed entities by market capitalisation.

Friday's roundtable, chaired by Tyagi, was in addition to public consultation on the BRSR formats to gather views of stakeholders on the preparedness for disclosures, prior to finalisation of the formats.

"This, I am sure, will give a big fillip to transitioning towards sustainable investments and a sustainable economy," he said in a statement.

The discussions centred around enhancing key environment, social and governance disclosures. Such disclosures are of importance to both investors and other stakeholders.

The participants represented diverse sectors, including pharmaceutical, chemicals, textiles, power, aviation, consumer goods, IT and financial services.

It was acknowledged by the participants that the ESG concerns are getting bigger in the corporate landscape today and Sebi's initiative on revisiting the disclosures is critical and timely, the regulator noted.

The deliberations in the roundtable will assist Sebi in finalising the BRSR format.

According to Tyagi, Sebi's effort will be to finalise the new disclosure requirements for sustainability reporting keeping in mind a balance between the Indian context, national priorities and preparedness, with global relevance.

Latest LY | Jan 15, 2021

Format for Biz Responsibility, Sustainability Reporting to Bring in More Transparency: Tyagi

Under the proposal, the new BRSR format covering ESG perspective would be applicable for the top 1,000 listed entities by market capitalisation.

"This, I am sure, will give a big fillip to transitioning towards sustainable investments and a sustainable economy," he said in a statement.

The discussions centred around enhancing key environment, social and governance disclosures. Such disclosures are of importance to both investors and other stakeholders.

The participants represented diverse sectors, including pharmaceutical, chemicals, textiles, power, aviation, consumer goods, IT and financial services.

The deliberations in the roundtable will assist Sebi in finalising the BRSR format.

Money Control | Jan 15, 2021

Format for business responsibility, sustainability reporting to bring in more transparency: Ajay Tyagi

Under the proposal, the new BRSR format covering ESG perspective would be applicable for the top 1,000 listed entities by market capitalisation. Friday's roundtable, chaired by Tyagi, was in addition to public consultation on the BRSR formats to gather views of stakeholders on the preparedness for disclosures, prior to finalisation of the formats.

Addressing the participants, Tyagi said, "The proposed format for BRSR aims at bringing in greater transparency through disclosure of material ESG-related information that would allow market participants to identify and assess sustainability-related risks and opportunities." "This, I am sure, will give a big fillip to transitioning towards sustainable investments and a sustainable economy," he said in a statement.

The discussions centred around enhancing key environment, social and governance disclosures. Such disclosures are of importance to both investors and other stakeholders.

The roundtable was attended by senior-level participants from the industry, comprising managing directors, chief executive officers and chief financial officers along with representatives from industry bodies FICCI, CII and Assocham as well as the fund management industry. The participants represented diverse sectors, including pharmaceutical, chemicals, textiles, power, aviation, consumer goods, IT and financial services.

Pehal News | Jan 15, 2021

Sebi chief chairs meeting with corporate India on business responsibility and sustainability reporting

Sebi chief Ajay Tyagi on Friday informed corporate India, that the proposed format for business responsibility and sustainability reporting is geared toward bringing larger transparency via disclosure of fabric ESG(environmental, social and governance) associated info. As it will permit market participants to identification and assess sustainability- associated dangers and alternatives.

The Securities and Exchange Board of India(Sebi) carried out a round-table, which was chaired by Tyagi, on business responsibility and sustainability reporting (BRSR).

“This, I am sure, will give a big fillip to transitioning towards sustainable investments and a sustainable economy,” Tyagi mentioned whereas addressing the contributors.

The regulator has proposed a brand new BRSR format that might cowl ESG associated disclosures and can be relevant for the highest 1000 listed firms by market capitalisation.

The discussions in round-table centered round enhancing key surroundings, social and governance disclosures. Such disclosures are of significance to each traders and different stakeholders, Sebi mentioned in an announcement.

The roundtable was attended by senior-level contributors from the trade, comprising managing administrators, chief govt officers and chief monetary officers alongside with representatives from trade our bodies FICCI, CII and Assocham in addition to the fund administration trade.

The contributors represented numerous sectors, together with pharmaceutical, chemical substances, textiles, energy, aviation, client items, IT and monetary companies.

The Economic Times | May 26, 2016

Government approves Capital Goods Policy, aims 21-million new jobs

The Cabinet has approved a first ever national capital goods policy that seeks to reduce reliance on imported equipment by incentivising domestic production and in the process creating crores of jobs The policy seeks to increase production of capital goods from Rs 2.3 lakh crore in 2014-15 to Rs 7.5 lakh crore in 2025 and also raise direct and indirect employment from the current 84 lakh to three crore.

"Capital goods manufacturing, if it happens in India, along with the manufacturing that is going to happen downstream, the entire economy gets fillip," said Railway Minister Suresh Prabhu after the Cabinet meeting. It also aims to increase exports from the current 27% to 40% of production by providing an enabling environment for the industry which will include a long-term and stable duty structure that will encourage domestic manufacturing.

"It will increase the share of domestic production in India's demand from 60% to 80%, thus ma king India a net exporter of capital goods," a statement issued by the government said.

The Department of Heavy Industry will over time roll out the key elements of the policy by seeking approvals for schemes. "We are happy to see the roadmap for the capital goods sector in India and its recognition as a strategic sector. India has the potential to be the net exporter of capital goods as against the net importer currently.

National Capital Goods Policy is definitely the need of the ho ur, which will provide the much needed impetus to the sector and will go a long way in achieving the objectives of Make in India," business chamber FICCI said in a statement. The specific areas of intervention identified are: improvement in technology depth across the capital goods sub-sectors, increase skill availability, ensure mandatory standards and promote growth and capacity building of MSMEs.

Capital goods production contracted 2.9% in FY16 according to the Index of Industrial Production (IIP) numbers. In the same period, the import of industrial machinery rose 5.2% to $9.7 billion. Electrical machinery and equipment imports were flat at $ 6 billion.

The government hopes this policy will boost domestic production. "It will help in realising the vision of building India as the world class hub for capital goods," the statement observed, adding that the new policy will also play a pivotal role in overall manufacturing as the pillar of strength to the vision of 'Make in India'.

Earlier, the government had sought suggestions on a draft paper to frame policy on the capital goods industry, setting a target of lifting the contribution of capital goods from the present 12% to 20% of the total manufacturing activity in the country by 2025. The draft paper had further noted that India's share in global exports in the capital goods sector ranges between 0.1% and 0.6%, across various subsectors, while the share of global exports for China ranges between 7.7% and 16.3% depending on the sub sector.

Business Standard | May 26, 2016

Capital goods policy gets nod, aims to triple output

The Cabinet on Wednesday approved a policy for the capital goods sector, aimed at increasing production to Rs 7.5 lakh crore by 2025.

Apart from tripling the sector's production from Rs 2.3 lakh crore now, the policy aims to increase direct and indirect employment from 8.4 million to at least 30 million by 2025.

The Department of Heavy Industry had earlier stated that capital goods production could boost the domestic economy. "The entire economy will get a fillip once manufacturing of capital goods increases, as downstream manufacturing will also rise," said Railways Minister Suresh Prabhu, who gave a press briefing after the Cabinet took the decision.

Capital goods act as inputs for the manufacture of other goods. Likewise, capital goods production, which forms 8.8 per cent of the Index of Industrial Production, is considered a proxy for industrial and investment demand. It contracted for the fifth straight month till March, this year.

The government also aims to increase the share of domestic production in India's capital goods demand to 80 per cent by 2025. Currently, at 60 per cent, the large scale influx of low-duty goods from foreign shores has been blamed. Improvement in domestic capacity utilisation to 80-90 per cent has also been targeted. "India has the potential to be the net exporter of capital goods as against the net importer currently", FICCI President Harshavardhan Neotia said, welcoming the policy. The erstwhile Planning Commission had targeted a growth rate of 16.8 per cent per annum for the sector during the XII five-year Plan period.

Financial Chronicle | May 26, 2016

New policy eyes Rs 7.5L cr capital goods output

In an expansion of prime minister’s ‘Make in India’ initiative, the Union cabinet on Wednesday approved the country’s first national capital goods policy aimed at tripling the sector’s output to Rs 7.5 lakh crore, adding 21.6 million new jobs, exporting at least 40 per cent of the produce and meeting 80 per cent of the domestic industry demand.

The policy strategises to make India a major hub for capital goods production with expansion of capacities across sectors, incentivise infusion of funds and boost research and development, apart from putting in place a products and process patents regime to encourage innovation.

To achieve these ambitious targets, the government has decided to strengthen the existing scheme to usher in competitiveness in the capital goods sector with larger allocation of resources.

The Centre will also overhaul the scheme to assist in the export of capital goods besides launching a dedicated technology development fund. It has also decided to set up new testing and certification facilities and roll out mandatory standards for imports to reduce the influx of substandard machines.

Under the policy, the government will provide greater opportunity for utilisation of existing capacities of the domestic capital goods industry, expand their manufacturing base and launch a dedicated project for skill development.

The capital goods policy appears to be in sync with a similar dispensation for capital goods in several countries in the European Union. Giving a push to the capital goods sector is also expected to have a positive impact on the country’s industrial growth with specific reference to the manufacturing sector.

Various industrial sectors such as textiles, food processing, metallurgy, printing machinery, machine tools, earthmoving & mining equipment, heavy electricals and power, dies, moulds & press tools are expected to get a leg up on implementation of this policy.

The heavy industry ministry headed by Anant G Geete will be the focal point for evolving schemes, undertaking policy interventions and achieving the targets for capital goods production.

A prime minister’s office (PMO) statement said that the biggest beneficiaries of the capital goods policy would be medium and small-scale enterprises by way of expansion of capacities and capabilities.

The statement also noted that the first policy preposition was made at a ‘Make in India’ workshop in December 2014 and the cabinet has now approved the final blueprint after consultations with the industry, experts and all stakeholders. Harshvardhan Neotia, chairman of Ambuja Neotia group, said, “We are happy to see the roadmap for the capital goods sector in India and its recognition as a strategic sector.”

Neotia, who is also president of industry body FICCI, said: “India has the potential to be net exporter of capital goods as against net importer currently. The national capital goods policy will provide the much needed impetus to the sector and will go a long way in achieving the objectives of Make in India”.

As per government data, capital goods output will shoot up to Rs 7.5 lakh crore by 2025 as against Rs 2.3 lakh crore clocked in 2014-15. Similarly, the policy has targeted expanding the employment directly and indirectly from the capital goods sector to 30 million jobs from the prevailing 8.4 million.

Another ambitious target for the sector is to push capital goods exports up to 40 per cent from 27 per cent of the total output as of 2015-16. Similarly, the policy talks about catering to 80 per cent of the domestic consumption demand. Currently, the capital goods sector meets 60 per cent of the domestic demand for such items of consumption.

The Tribune | May 26, 2016

Govt approves Capital Goods Policy, to create 2 crore jobs

In a push for the ‘Make in India’ programme, the Cabinet today approved a national policy on capital goods or machinery and equipment which aims at creating more than 2 crore new jobs and tripling the production of capital goods to Rs 7.5 lakh crore by 2025.

In a boost for urea production in the eastern region, the Cabinet has waived loans worth more than Rs 9,079 crore owed by Hindustan Fertilizer Corporation Ltd as part of a financial restructuring package.

This is the first-ever policy for capital goods sector with the objective of increasing production of capital goods from Rs 2.3 lakh crore in 2014-15 to Rs 7.5 lakh crore in 2025 and raising direct and indirect employment from the current 8.4 million to 30 million.

An official statement said the policy will help in realising the vision of “Building India as the world-class hub for capital goods”. It will also play a pivotal role in overall manufacturing as the pillar of strength to the vision of ‘Make in India’.

The policy envisages increasing exports from the current 27% to 40% of production. It will increase the share of domestic production in India’s demand from 60% to 80% thus making India a net exporter of capital goods.

Some of the key issues addressed in the policy include availability of finance, raw material, innovation and technology, productivity, quality and environment friendly manufacturing practices, promoting exports and creating domestic demand.

Harshavardhan Neotia, president, FICCI, said, “India has the potential to be the net exporter of capital goods as against the net importer currently. National Capital Goods Policy is definitely the need of the hour, which will provide the much-needed impetus to the sector and will go a long way in achieving the objectives of Make in India”.

The Hindu | Jul 09, 2015

Capital Goods sector: Gets fund booster

The Indian capital goods sector faced with challenges in terms of outdated technology and knowledge obsolescence resulting in large scale imports of capital goods worth over $30 billion a year. It is being actively supported by the Central Government so that it reinvents itself and boosts indigenous production.

In a role reversal, government authorities including ministers are now seen persuading the industry to upgrade technology and in fact encouraging companies with research and development (R&D) support and financial grant to achieve competitive edge. The government has even offered to change its policy, if needed to create conducive business climate for the domestic industry.

As per a recently notified pilot scheme for the capital goods sector, the Central Government has taken concrete steps to bridge the technology gaps in the sector and reduce import dependence in the sector.

Am amount of Rs.937 crore has been earmarked for the sector out of which the Department of Heavy Industries (DHI) will contribute Rs.580 crore and the rest will come from industry associations.

“We want small and medium enterprises (SMEs) from the sector to come forward and make use of the Capital Goods Scheme. A unique component of the scheme is Technology Adoption Fund, where by the Government is providing support up to 25 per cent of the cost of technology subject to a limit of Rs.10 crore per company,” said Anant Geete, Union Minister for Heavy Industries & Public Enterprises. This year the government will provide grants to the tune of Rs.50 crore for adoption of technology and more funds will be allocated in the future. DHI has tied up with FICCI to promote the scheme.

“We are inviting foreign companies to invest here under the Make-in-India initiative, but we want our domestic industry to upgrade its standard and compete effectively,” Mr. Geete said.

About Rs.100 crore will be provided as grant for R&D so that the industry gets access to energy efficient and latest technology and Rs.120 crore has been earmarked for development of machine tools. Institutes such as IIT-Delhi, IIT-Mumbai, IIT-Kharagpur, IIT-Madras, PSG-Coimbatore and others have applied for various components of the scheme, mainly for R&D and their applications are under examination. The objective of the Government is to provide support to the industry to acquire technology from abroad, set-up technology development centres in collaboration with institutes and create common infrastructure for the capital goods industry so that the desired result is achieved.

“The technological capabilities of large number of players, especially in the SME sector are limited in India as they lack the financial muscle to upgrade. And as a result, India has become one of the largest importers of capital goods in the world. This has adversely affected the indigenous capital goods industry and we want to change this now. We are not stopping at policy announcements, we are actively following up and focusing on implementation so that the industry benefits,” Mr Geete said.

The Government is following German model to help revive Indian capital goods sector, because like India, 85 per cent of capital goods produced in Germany are by SMEs and family owned businesses.

The government is also working with countries such as Germany and the U.S. to liberalise the exports of dual use technologies that would benefit the capital goods sector.

The Economic Times | Apr 11, 2012

Old capital goods can't be imported in lieu of equity

The government has withdrawn a facility that allowed domestic companies to issue equity to overseas firms against import of second-hand goods, reversing a year-old policy decision that has led to an influx of substandard products.

The country's updated consolidated foreign direct investment (FDI) policy, which was released on Tuesday, has also done away with the norm that required foreign institutional investors (FII) to seek government permission for investing in commodity exchanges. Now FIIs can invest up to 23% in commodity exchanges via the automatic route.

However, FDI would need prior approval of the Foreign Investment Promotion Board (FIPB). The earlier policy capped foreign investment in commodity exchanges at 49% (26% FDI and 23% FII) under the government approval route.

"It has now been decided to liberalise the policy and to mandate the requirement of government approval only for the FDI component of the investment," the Department of Industrial Policy and Promotion (DIPP) said, adding that the change aligns the policy for foreign investment in commodity exchanges with that of other infrastructure companies in the securities markets, such as stock exchanges, depositories and clearing corporations.

The DIPP is the government department that frames policy on FDI.

While companies keen on increasing FII holding to more than 24% will have to seek permission from the Reserve Bank of India (RBI) before the proposal can be put up before shareholders, no fresh FDI will be allowed in operating leases. Besides, all foreign investments in existing pharmaceutical companies will require government permission.

The policy changes come into effect immediately, the (DIPP) said in a statement, adding that the consolidated policy will now be issued once a year against biannually earlier.

Domestic production of capital goods in the April-January period declined 2.8% over the year-ago period, which Indian companies say was because of rising import of capital goods.

Industry has welcomed the restriction on import of second-hand capital goods.

"We have been demanding the same from the government for a long time, as second-hand goods were hurting local capabilities, giving the domestic machinery industry no incentive to innovate and improve," said Geethanjali Nataraj, director, capital goods and defense, FICCI.

In March last year, the government had allowed companies to issue equity to overseas firms against imported capital goods and machinery, including second-hand machinery.

"Under the new policy, only companies that place orders for new machinery will be able to convert their outstanding payable amount to equity," said Abhishek Saxena, partner, Phoenix Legal.

The updated policy clarifies that FDI is allowed only in financial lease activity carried out by non-banking finance companies (NBFCs). "It has been clarified that the activity of leasing and finance, which is one among the 18 NBFC activities where induction of FDI is permitted, covers only financial leases and not operating leases." While overall capital flow has been sluggish, the April-January period of 2011-12 recorded a 53% increase in FDI at $26.19 billion.

The Economic Times | May 03, 2010

Strict norms for used capital goods needed: FICCI

The government should tighten norms on imports of used equipment like textile and power generation machinery by raising duty and imposing trade restrictions to protect the domestic industry, industry body FICCI has said. The inspection, supervision and administration of the imported second-hand capital goods should conform to the local rules on safety, environmental and labour protection, the chamber said in a note to the government. Unbridled import of used equipment undermines the domestic capacities with the possibility of reduced employment in the sector, the chamber said.

The Financial Express | May 03, 2010

FICCI favours strict import norms for used capital goods

The inspection, supervision and administration of the imported second-hand capital goods, should conform to the local rules on safety, environmental and labour protection, the chamber said in a note to the government.

“It is also important that while formulating such rules, clarity is provided on various terms used interchangeably in this regard like second-hand, used, refurbished, recycled, repaired etc,” it said.

Unbridled import of used equipment undermines the domestic capacities with the possibility of reduced employment in the sector, the chamber said.

“Proliferation of used equipment can and have in the past adversely affected and delayed critical projects of national importance...,” it said.

It added that many a times, import of used equipment is done through dubious activity such as under invoicing of the asset and wrong declaration of equipment age.

Countries like China and Australia have separate rulesfor imports of second-hand capital goods.

Capital Goods

Team Leader

Chetan Bijesure

Timeline

Jan, 2020

Presenting FICCI Report on "Opportunities for Capital goods in Indian Railways" to Mr Vinod Kumar Yadav, Chairman, Railway Board

Release of Report on Opportunities for Capital Goods Industry with Indian Railways and Metros

Dec, 2016

WIN INDIA: 'Integrated Industry – Get new technology first'

Apr, 2016

FICCI Participation at Hannover Messe 2016

Feb, 2016

Construction Equipment & Construction Technology

Dec, 2015

WIN India 2015

9th edition of World of Industry (WIN) INDIA show 2015: Hannover Messe India Edition

Jul, 2015

DHI-FICCI Roadshow on Capital Goods Scheme 'Enhancement of Competitiveness in the Indian Capital Goods Sector'

May, 2015

Workshop on 'Technology Development for Capital Goods: Constraints & the Way Forward'

Aug, 2013

Launch of Capital Goods Skill Council

Feb, 2013

Interactive Meeting on Capital Goods Sector with Mr M F Farooqui, Secretary, Department of Heavy Industry

Dec, 2010

Conference on Indian Capital Goods Industry-Prospects & Issues

Co-Chair

Mr. K. Nandakumar

Accelerating growth in the Indian capital goods sector

Roundtable discussion with Chairman, SEBI on business responsibility and sustainability reporting

Sebi chief chairs meeting with corporate India on business responsibility and sustainability reporting

Format for biz responsibility, sustainability reporting to bring in more transparency: Tyagi

Format for Biz Responsibility, Sustainability Reporting to Bring in More Transparency: Tyagi

Format for business responsibility, sustainability reporting to bring in more transparency: Ajay Tyagi

Sebi chief chairs meeting with corporate India on business responsibility and sustainability reporting

Government approves Capital Goods Policy, aims 21-million new jobs

Capital goods policy gets nod, aims to triple output

New policy eyes Rs 7.5L cr capital goods output

Govt approves Capital Goods Policy, to create 2 crore jobs

Capital Goods sector: Gets fund booster

Old capital goods can't be imported in lieu of equity

Strict norms for used capital goods needed: FICCI

FICCI favours strict import norms for used capital goods