Gujarat retains top slot of states with most investment potential

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Gujarat is followed by Delhi, Andhra Pradesh, Haryana, Telangana, Tamil Nadu, Kerala, Maharashtra, Karnataka and Madhya Pradesh.

Gujarat has retained the top position in the list of 21 states and UTs with most investment potential, according to a report by economic think-tank NCAER.

Gujarat is followed by Delhi, Andhra Pradesh, Haryana, Telangana, Tamil Nadu, Kerala, Maharashtra, Karnataka and Madhya Pradesh.

The ranking of 20 states and one Union Territory of Delhi was based on six pillars — labour, infrastructure, economic climate, governance and political stability, perceptions and land —  and 51 sub-indicators.

While Gujarat topped in economic climate and perceptions, Delhi ranked one in infrastructure. While Tamil Nadu topped the chart in labour issues, Madhya Pradesh ranked one in land pillar.

The National Council of Applied Economic Research (NCAER) State Investment Potential Index (N-SIPI 2017) report ranks states on their competitiveness in business and their investment climate.

Compared to 2016, Gujarat and Delhi again top the list of states, while Haryana and Telangana have moved rapidly up the ranks to finish among the top five, it said.
NCAER Director-General Shekhar Shah said: “Investment opportunities are expanding in India in all sectors. The GST will weave India’s states together in ways that has not been possible before”.

Further the report said that although Bihar, Uttar Pradesh and West Bengal are ranked among the least favourable states for investment, they rank higher under individual pillars.

Indira Iyer, the team leader for the 2017 N-SIPI, stated that as per the report, “corruption” continues to be the number one constraint faced by businesses.

However, she said, the 2017 N-SIPI reports a decline in the percentage of respondents citing corruption as a constraint to conducting business from 79 per cent in 2016 to 57 per cent in 2017.

Getting approvals for starting a business is still the second-most pressing constraint faced by businesses in 2017 as was the case in 2016, she added.

Talking about this index, Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek said these reports are aiding states in improving the business climate and attracting investors.

Source : http://economictimes.indiatimes.com/articleshow/59661570.cms

India adds record 5,400MW wind power in 2016-17

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During 2016-17, leading states in wind power capacity addition were Andhra Pradesh, Gujarat and Karnataka.

India added a record 5,400 megawatts (MW) of wind power in 2016-17, exceeding its 4,000MW target.

“This year’s achievement surpassed the previous higher capacity addition of 3,423MW achieved in the previous year,” the ministry of new renewable energy said a statement on Sunday.

Of about 50,018MW of installed renewable power across the country, over 55% is wind power.

In India, which is the biggest greenhouse gas emitter after the US and China, renewable energy currently accounts for about 16% of the total installed capacity of 315,426MW.

During 2016-17, the leading states in the wind power capacity addition were Andhra Pradesh at 2,190MW, followed by Gujarat at 1,275MW and Karnataka at 882MW.

In addition, Madhya Pradesh, Rajasthan, Tamil Nadu, Maharashtra, Telangana and Kerala reported 357MW, 288MW, 262MW, 118MW, 23MW and 8MW wind power capacity addition respectively during the same period.

At the Paris Climate Summit in December, India promised to achieve 175GW of renewable energy capacity by 2022. This includes 60GW from wind power, 100GW from solar power, 10GW from biomass and 5GW from small hydro projects.

It also promised to achieve 40% of its electricity generation capacity from non-fossil fuel based energy resources by 2030.

In the last couple of years, India has not only seen record low tariffs for solar power but wind power too has seen a significant drop in tariffs. In February, solar power tariffs hit a record low of Rs2.97 per kilowatt hour (kWh)and wind power tariff reached Rs3.46 kWh.

Even though wind leads India’s renewable power sector, it has huge growth potential. According to government estimates, the onshore wind power potential alone is about 302GW. But there are several problems plaguing the sector.

For instance, the government has been concerned about squatters blocking good wind potential sites, inordinate delays in signing of power purchase agreements, timely payments and distribution firms shying away from procuring electricity generated from wind energy projects. In January, the ministry held a meeting with the states to sort out these issues.

The ministry has also taken several other policy initiatives, including introducing bidding in the wind energy sector and drafting a wind-solar hybrid policy.

It has also come out with a ‘National Offshore Wind Energy Policy’, aiming to harness wind power along India’s 7,600 km coastline. Preliminary estimates show the Gujarat coastline has the potential to generate around 106,000MW of offshore wind energy and Tamil Nadu about 60,000MW.

Source: http://www.livemint.com/Industry/MR7TsTomt2C9Si1NriNsyM/India-adds-record-5400MW-wind-power-in-201617.html

Tamil Nadu joins UDAY scheme

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The southern state, which became the 21st state to join Ujwal Discom Assurance Yojana (UDAY), is also one of four states with largest accumulated debt of over Rs 40,000 crore.

After having dithered for over a year, Tamil Nadu on Monday signed up for the center’s scheme for revival of financially stressed state-owned power distribution companies. The southern state, which became the 21st state to join Ujwal Discom Assurance Yojana (UDAY), is also one of four states with largest accumulated debt of over Rs 40,000 crore.

With Tamil Nadu on board, UDAY has now covered 92% of country’s discom debt. “Tamil Nadu would derive an overall net benefit of approximately Rs 11,000 crores through UDAY, by way of savings in interest cost, reduction in AT&C and transmission losses, interventions in energy efficiency, coal reforms etc,” the government said in a statement. Other states with huge debt burden include Haryana, Rajasthan and Uttar Pradesh, all of which are part of the scheme.

According to the scheme, the state government will take over 75%of debt amounting to Rs 30,420 crore from the discom. The scheme also provides for the balance debt to be re-priced or issued as state guaranteed discom bonds, at coupon rates around 3-4% less than the average existing interest rate.

“The state would have savings of about Rs 950 crore in annual interest cost through reduction of debt and through reduced interest rates on the balance debt,” the government said. It added that reduction in aggregate technical and commercial (AT&C) losses and transmission losses to 13.5% and 3.7% respectively is likely to bring additional revenue of around Rs 1,601 crores to the state distribution company.

UDAY was launched by the power ministry on November 20, 2015 with an aim to reduce financial distress among state discoms as it has been preventing them from buying power.

Source: http://www.financialexpress.com/economy/tamil-nadu-joins-uday-scheme/502490/

UAE firm launches world’s 1st offsite manufacturing park in TN

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The world’s largest and first fully integrated industrial park has been opened in Tamil Nadu by a NRI-owned multinational group based in the UAE that specialises in innovative offsite manufacturing technology.

KEF Infra, the infrastructure subsidiary of KEF Holdings yesterday launched the KEF Infra One Industrial Park, the fully integrated offsite manufacturing park in Krishnagiri, Tamil Nadu.

The park is built on an area of one million square feet and developed at an investment of Rs 650 crore, the company said in a release.

The chief guest for the occasion was Narayana Murthy, Founder of Infosys and Faizal E Kottikollon, Founder and Chairman, KEF Holdings, Shabana Faizal, Vice Chairperson, KEF Holdings, Sumesh Sachar, CEO, KEF Infra among others were also present.

The park features a diverse range of cutting-edge technology that can revolutionise manufacturing and delivery processes in the construction industry.

“Today, India is at the cusp of growth led by innovation and we are pioneering an age where technology is being effectively integrated into infrastructure, thus heralding industrial revolution 4.0. Our aim is to fast forward this progress by radically changing the landscape of infrastructure in India.

“Offsite manufacturing of infrastructure reduces delivery time by up to two-thirds, thereby speeding up the construction process. The launch of KEF Infra One is a step towards our vision of pushing forth the next phase of India’s growth through world class infrastructure and we are proud to present this to the world,” Kottikollon said who was born into an industrialist family in Kerala.

Narayana Murthy said India has always been on the path of development, and with the arrival of technology, has witnessed exponential growth.

“However, every sector that contributes to India’s progress is supported by infrastructure that is future-ready. This is where KEF Infra is a true pioneer and is helping shape the future of the infrastructure industry as well as that of the country as a whole,” he said.

Source: http://www.business-standard.com/article/pti-stories/uae-firm-launches-world-s-1st-offsite-manufacturing-park-in-tn-116122000574_1.html

Tamil Nadu hits top slot in solar power capacity addition as south surges ahead

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Tamil Nadu has now reached Number One position in solar power capacity addition.

India’s total installed solar capacity has grown by over 80 per cent in the last 12 months to reach 8,100 MW.

“Out of the 3,600 MW capacity added during this period, 2,700 MW has come from four southern States – with Tamil Nadu alone adding over 1,200 MW on the back of a generous feed-in-tariff of ₹7.01/kWh. Tamil Nadu now ranks number one for commissioned capacity in both wind and solar,” according to Bridge to India, a global solar energy consulting firm.

The State now ranks No.1 for commissioned capacity in both wind and solar.

As of date, Tamil Nadu leads the solar capacity addition table with an installed capacity of 1,368 MW, followed by Rajasthan (1,307 MW), Gujarat (1,112 MW), Andhra Pradesh (961 MW), Telangana (923 MW) and Madhya Pradesh (756 MW).

Presently, those six States account for 80 per cent of the solar capacity added in India. The remaining 23 States including some of the largest power consuming states like Maharashtra, Karnataka and Uttar Pradesh, account for just 20 per cent of the installed capacity.

In the initial phase of solar sector development in India, until 2014, bulk of solar capacity addition came up in Rajasthan, Gujarat and Madhya Pradesh (about 57 per cent). But, the Southern states have taken a decisive lead in the last year, driven primarily by their growing power needs.

According to estimates based on the completed tenders totalling over 14,000 MW, the present trend is likely to continue over the next two years, with the southern States accounting for 60 per cent of this pipeline.

Tamil Nadu has proposed to increase the solar power further to 5,000 MW in a phased manner in the next five years. It plans to add about 1,200 MW of solar units in this fiscal alone, according to a document of state energy department.

The State’s total renewable power capacity is close to 10,000 MW with wind accounting for about 79 per cent of it.

Source: http://www.thehindubusinessline.com/news/national/tamil-nadu-hits-top-slot-in-solar-power-capacity-addition-as-south-surges-ahead/article9018228.ece

Tamil Nadu to get 4th major port

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The Cabinet on Tuesday approved the setting up of a major port at Enayam near Colachel in Tamil Nadu. This would be the country’s 13th major port.

Colachel is about 50 km north-west of Kanyakumari.

India has 12 major ports — Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambaranar, Visakhapatnam, Paradip and Kolkata (including Haldia). These handle approximately 61 per cent of the country’s cargo.

A special purpose vehicle (SPV) would be formed for the development of Colachel port, with an initial equity investment from the three existing major ports in Tamil Nadu — V O Chidambaranar Port Trust, Chennai Port Trust, and Kamarajar Port. The SPV would develop the port infrastructure, including dredging and reclamation, construction of breakwater and ensuring connectivity links, a statement said.

Fishermen in the coastal villages of Tamil Nadu have been opposing construction of this port, fearing sea erosion and loss of livelihood.

India has few ports with sufficient draft to match global cargo handling efficiencies. All of India’s trans-shipment (transfer of shipment from one carrier to another during transit) traffic is handled in Colombo, Singapore and other international ports. Indian port industry loses up to Rs 1,500 crore of revenues each year, the official statement said.

This major port at Enayam will act as a major gateway container port for Indian cargo now trans-shipped outside the country. It would also reduce the logistics cost for exporters and importers in south India, who depend on trans-shipment in Colombo or other ports, incurring additional port handling charges.

Minister of Shipping Nitin Gadkari had in April said the government had plans to add eight major ports in the country — including at Wadhawan in Maharashtra, Sagar in West Bengal and Colachel in Tamil Nadu.

 

Source: http://www.business-standard.com/article/economy-policy/tamil-nadu-to-get-4th-major-port-116070501191_1.html

E-filing of tax returns jumps 68.5% in April, 2016

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E-filing of tax returns witnessed a jump of 68.5% in the first month of the current fiscal year with over 8.32 lakh assessees filing ITRs electronically.

The number of e-filed returns recorded in April 2015-16 stood at 4.94 lakh. In all, 4.33 crore returns were electronically filed last fiscal.

As per the data of Central Board of Direct Taxes (CBDT), a total of 8,32,499 assessees have filed returns in April 2016.

Unlike previous year, the CBDT had operationalised all the nine types of Income Tax Returns (ITRs) filed by different types of assesses from this fiscal.

Over the years, the e-filing process has been simplified and assessees can file returns even from the comfort of their homes.

As per the CBDT, there were over 5.25 crore registered users (on April 30, 2016) and about 49.54% of the returns were received outside office hours. Also, 35.27% of assesses used the utility provided by the department.

An online ‘tax calculator’ for filers is meant to help taxpayers assess tax liability.

Divya Baweja, Partner, Deloitte Haskins and Sells LLP said during the initial years, e-filing was considered to be an onerous task, but now the process has become a “simple affair”.

“In recent years, tax department has made a conscious effort to ease the e-filing procedure by simplifying the tax return forms and introducing tax utilities which automatically picks data from previous year’s tax return/tax credit statement, thereby making it much easier for a common individual to file his or her tax return,” she said.

The CBDT had notified the new forms on March 30, and ITRs can be filed till the stipulated deadline of July 31.

The data further said during April, the maximum returns were filed from Maharashtra followed by Gujarat, Tamil Nadu and Uttar Pradesh.

People with an income of more than Rs 50 lakh per annum and who own luxury items like yacht, aircraft or valuable jewellery will have to disclose these expensive assets with the IT department in the new ITRs.

Last year, the e-filing commenced on July 1 following the controversy over a 14-page form requiring assessees to disclose bank account and foreign travel details.

Source: http://timesofindia.indiatimes.com/business/india-business/E-filing-of-tax-returns-jumps-68-5-in-April/articleshow/52277938.cms