Website of Indian Chamber of Commerce and Industry Coimbatore

Brief account of our activities in December 2011

Remittance of PF / ESI Contribution

Based on the representations received from our Members, we have appealed to State Bank of India, to identify more number of branches for remitting the PF/ ESI contribution, since this will help the Members to get their Challans without any delay and also help them to submit the PF / ESI returns before dead line.

Chamber also requested the Provident Fund Commissioner to identify more number of designated banks branch for remittance of PF contribution.

In response to our representation, we have received reply from the Office of the Regional Provident Fund Commissioner stating that they will conduct a meeting with the officials of State Bank of India and discuss this issue and revert back to us.

Representation to I G Registration

Shri D Nandakumar our Hon Secretary met Shri Dharmendra Paratap Yadav IAS Inspector General, Registration Department during his visit to Coimbatore on 2nd December 2011.

Availing this opportunity Chamber submitted a representation pleading for revision in the guideline values since the Government is in the process of revising the guideline values for Coimbatore region which is quite abnormal and very much on the higher side when comparing to the market value.

We have also requested him to include the name of our Chamber in the District Committee for Revision of Guideline Valuation constituted by the Registration Department.

In response to our representation the I G has assured that the Government will definitely consider and bring down the guideline values.

Kovai Industries to Down Shutters

The Trade and Industrial Associations of Coimbatore region met and discussed the commencement of Koodankulam Nuclear Power Project.

All the Associations expressed their support for this power project and decided to close down their shutters and also observe a fast on 20th December 2011.

Due to unavoidable circumstances this was postponed to a later date.

ST Advisory Committee – Nomination

Our Secretary Shri D Nandakumar and Shri CSK Prabhu, Chartered Accountant have been nominated as Members of Coimbatore District Sales Tax Advisory Committee to represent our Chamber.

Greater Coimbatore Development Authority

We have submitted our demand to the Tamil Nadu Government for formation of Greater Coimbatore Development Authority. Our President pointed out that Coimbatore needed the Authority for planned growth. Investors would have to look at Coimbatore as Chennai would not be able to take all the investments. If the growth here is not planned, it would cause inconvenience to the public in their daily activities, such as transport. Several industries are reluctant to invest in Coimbatore as their employees and shop floor workers would require affordable housing, more number of schools and entertainment options. These would take time to develop. “However, we need to create a system that will facilitate this development.

Our President also mentioned that the existing manpower of the Local Planning Authority at Coimbatore is inadequate to fulfil the functions of planning, implementation, enforcement and plan approval process. Thus, hardly any planning activity is taken up in Coimbatore. The city is developing and should plan for the future, implement the plans to achieve the desired pattern of urban development, co-ordinate with various agencies to implement the designated projects, control and regulate development, and promote better living conditions. These would be possible with the formation of a Greater Coimbatore Development Authority.

Luncheon Meeting

Chamber organized a Launcheon meeting with Shri D Sampathkumar, Editor Business Line on 12th December 2011. Issues related to the socio economic development of Coimbatore were discussed with him and he was so happy for meeting the important personalities of Coimbatore from Trade and Industrial sectors.

Shri D Sampathkumar is the first person appointed as Editor out side from The Hindu family.

Delegation to Delhi

A delegation led by Thiru P R Natarajan, Thiru K Sugumar and Thiru C Sivasami, Hon’ble Members of Parliament along with our President Dr M Krishnan, our Vice President Shri R R Balasundharam, President of CODISSIA Shri M Kandhaswami, Secretary of RAAC Shri R Raveendran and Co-ordinator of Coimbatore Railways Struggle Committee Shri G K Nagaraj had met Hon’ble Union Railway Minister Shri Dinesh Trivedi and Chairman, Railway Board Shri Vinay Mittal at New Delhi on 1st December 2011.

A Memorandum has been submitted on the occasion pleading for the following issues: Infrastructure:

a) To develop Coimbatore Junction as ADARSH or MODEL Railway Station

b) Early completion of Gauge conversion between Coimbatore and Dindigul,

c) Development of Coimbatore North, Peelamedu and Singanallur Railway Stations.

d) Construction of Railway Over Bridges at Avarampalayam Road, Eachanari Road, Vilankurichi Road, near Kikani High School Road and near Peelamedu Railway Station.

e) Improvement of passenger related amenities at Coimbatore Railway Junction.

Train Services :

We have also stressed the need for introduction of over night express trains originating at Coimbatore to Bangalore – Rameshwaram and Chennai (additional). We also urged the Minister for the following trains.

* Introduction of Commuter trains and Circular trains
* Extension of Jodhpur Express upto Coimbatore
* Extension of Trivandrum - Palakkad Amritha Express to Coimbatore
* Additional quota facilities in Bangalore - Coimbatore express
* Introduction of train between Coimbatore and Mettupalayam

We have appealed to the Minister to reroute the following five trains on top priority which are now running via Podanur –Irugur bypass line:

Ernakulam – Bangalore weekly
Yesvantpur – Kannur Express
Puducherry – Mangalore weekly
Ernakulam – Bangalore Biweekly Express
Kochuveli – Hubli weekly express

The Railway Minister and the Chairman, Railway Board gave a patient hearing and replied very positively towards some of the demands placed before them.

The Minister promised to examine the plea for diversion of five trains and ensured the diversion of two trains immediately. For balance trains, we have to take up the matter with the General Manager, Southern Railway, Chennai.

With regard to Coimbatore - Bangalore over night express train, Minister pointed out about the capacity and terminal facility constraints at Bangalore as well as at Coimbatore. However the delegation Members urged the Minister for this exclusive train to Bangalore.

As regards extension of Trivandrum–Palakkad Amritha express upto Coimbatore the Minister promised to look into this suggestion for extending it upto Mettupalayam, since upto Coimbatore is not possible.

For other amenities at Coimbatore junction, Minister promised to do it immediately. Our MPs have also promised to pursue our demands with the General Manager, Southern Railway and others concerned.

President, Vice President and Thiru P R Natarajan Member of Parliament also met Shri A K Anthony, Hon’ble Union Minister for Defence and extended our cordial invitation to him to visit our Chamber and address our Members.

President briefed the Defence Minister that since there are lot of manufacturers who supply engineering items to Defence are established at Coimbatore they will benefit by the visit of Defence Minister.

Joint Director General of Foreign Trade - Grievance Committee

The first meeting of Grievance Committee constituted by the Joint Director General of Foreign Trade Coimbatore was held on 20th December 2011. Shri P R Vittel our Vice President attended the meeting representing our Chamber.

One of the points discussed at the meeting was extension of fulfilling export obligation under EPCG Scheme without payment of fee.

It was suggested that if extension is required by more than at least 25 manufacturing organizations, an appeal would be made for extension without payment of any fee. It was also suggested that our appeal may be favourably considered if it is based upon economic conditions. It was decided that our Chamber will take appropriate action in this regard.

Meeting on FDI in Retail Trade

Chamber organized a meeting on “FDI in Retail Trade” addressed by Shri S Gurumurthy, Eminent Social Thinker on 9th December 2011. While addressing he said, two decades after the then Congress led Government went in for liberalization, it has been proved beyond doubt that the nation’s savings are behind our growth and not foreign investment.

He also said that India is the only country to have made progress on its own. Dismissing the claims about foreign investment being vital for India’s development, Mr Gurumurthy cited a column by renowned economist Dr Shankar Acharya wherein it was pointed out that only 1.2 percent of the total investment in the past 20 years was from abroad.

On retail business in the Country, he noted that it is mostly a relation based business. “The total of 15 million retailers means that there is at least one retailer for every 80 Indians.” Walmart with a global turnover of $422 billion has just 21 Lakhs employees but the Indian retail business that is estimated at $400 billion has given jobs to six crore people.

FDI in retail can give employment to 20 Lakhs people in India but cannot compensate the huge job losses. Moreover, retail trade in our Country still remains the first option employment for any unemployed person.

Some economists and the intelligentsia have not highlighted the dangers of FDI in retail mainly because they do not want to go against the Government.

Advising all sections of the public to raise their voice against FDI in retail, he said that the issue does not concern only retainers but affects all of us. He also pointed out to the participants how TESCO, a retail giant, has been exploiting the farmers in not only the United Kingdom but also those in many developing nations. Dr M Krishnan President presided the meeting and welcomed the gathering.

This meeting was well attended by large number of Members of Chamber, its Affiliated Associations, traders from other districts and the public. Shri D Nandakumar Hon Secretary proposed vote of thanks.

RBI Mid Quarter Policy

The Reserve Bank of India has announced its Mid Quarter Monetary Policy Review December 2011. Considering the current Macro Economic assessment the RBI has kept the Cash Reserve Ratio (CRR) unchanged at 6% and the policy Repo rate under the Liquidity Adjustment Facility (LAF) was also kept unchanged at 8.5%.

In a press note issued by Chamber we have welcomed and appreciated the RBI in keeping all the key rates unchanged till a more clear picture on inflation and inflationary expectation are visible.

We have also pointed out that the Industry was expecting a marginal cut in the CRR to induce liquidity in the system to promote investments. The move is on expected lines. Consequently, the reverse Repo rate under the LAF will remain unchanged at 7.5% and the Marginal Standing Facility (MSF) rate at 9.5%.

The RBI’s guidance that monetary policy actions from now on will respond to the slow down in growth is reassuring. The Government should take new policy actions to revive slowing growth and control inflation as fiscal and monetary options are limited. We have also mentioned that RBI will make an assessment of its growth and inflation projection in the 3rd quarter review.

Regional Direct Taxes Advisory Committee - Nomination

Our President Dr M Krishnan and our Hon Secretary Shri D Nandakumar have been nominated to represent our Chamber in the re-constituted Regional Direct Taxes Advisory Committee of Coimbatore.

Central Excise Watchdog Committee

The Meeting of Central Excise Public Grievance / Watch Dog Committee was held on 28th December 2011.

Our nominee Shri V Lakshminarayanasamy attended the meeting and taken up the subjects received from our Members for discussion at the said meeting.