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Sitharaman holds talks with states on FDI in e-commerce, retail

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Nirmala Sitharaman Spokesperson 11, Ashoka Road, New Delhi - 110001.

New Delhi: States will give their views within 15 days on the matter of opening up the e-commerce sector to FDI, it was decided after Commerce Minister Nirmala Sitharaman met states’ representatives here on Wednesday.

“Government of India invited states to discuss the issue of FDI in e-commerce in B2B and B2C and also bringing FDI in multibrand retail,” Haryana Finance Minister Captain Abhimanyu told reporters after the meeting.

“But one consensus between the states and the centre was there that whatever decision is taken, it must be taken after good deliberation and after engagement with stakeholders at state levels and after assuring ourselves that the interest of the consumers, small retailers as well as SME sector are protected,” he said.

“All the states will give their views and comments on the matter within 15 days to the centre,” he added.

India currently allows 100 percent FDI in business-to-business (B2B) e-commerce, but not in B2C companies selling directly to consumers.

Jammu and Kashmir Industries Minister Chander Prakash said: “We have to be careful while introducing (FDI) in e-commerce”.

“The FDI in e-commerce needs more debate and discussion. More meetings will be held on the issue. We will discuss the pros and cons in detail in our state. States ask for more time on the issue,” he said.

Some states, including Tamil Nadu, are opposed to FDI in retail and e-commerce.

With retail store operators going to court seeking parity between online and offline retailers, Sitharaman met representatives from both e-commerce and retail companies on Friday to discuss the issue.

A source in the department of industrial policy and promotion told IANS here that DIPP Secretary Amitabh Kant told company representatives at the meeting that the sensitive issue required detailed consultations with all stakeholders.

Almost all stakeholders, including from the Confederation of All India Traders (CAIT) and the Federation of Indian Chambers of Commerce and Industry had been invited to Friday’s meeting.

“CAIT urged the government not to turn the Indian retail market into an e-commerce dumping yard by allowing FDI in e-commerce,” its secretary general Praveen Khandelwal told IANS.

The Retailers Association of India (RAI), representing large brick-and-mortar retail companies, moved the Delhi High Court in May seeking a level playing field between online and offline retailers. (IANS)

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With 100% FDI, Narendra Modi calls Food Sector a Priority in Make in India Programme

Modi said India with its rich legacy of spices could provide solutions and offer a win-win partnership as the world was becoming increasingly averse to the use of artificial colours, chemicals and preservatives.

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Prime Minister Narendra Modi. Wikimedia

New Delhi, November 3, 2017 : Prime Minister Narendra Modi on Friday said the food sector that allows 100 per cent foreign investment was the priority in the government’s ambitious Make In India programme.

Launching a three-day global conference on the food industry here, Modi said food processing was an age old practice in India and simple, home-based techniques like fermentation had resulted in the creation of our famous pickles, papads, chutneys and murabbas that now excite both the elite and the masses across the world.

He said the government had taken a range of transformational initiatives to make the country most preferred investment destination in this sector.

It is priority sector in our ‘Make in India’ programme. 100 per cent Foreign Direct Investment is now permitted for trading including through e-commerce of food products manufactured or produced in India, Modi told the World Food India conference that will see the participation of over 2,000 delegates from 200 companies from some 30 countries.

Apart from representatives of 28 states, it will also see participation of 18 ministerial and business delegations, nearly 50 global CEOs along with heads of all leading domestic food processing companies.

Modi said a single-window facilitation cell provided hand-holding for foreign investors and there were attractive fiscal incentives from the Union and state governments.

Loans to food and agro-based processing units and cold chains are classified under priority sector lending, making them easier and cheaper to obtain, the Prime Minister said.

Modi said the recently launched unique portal – Nivesh Bandhu (investor’s friend) – would bring together information on central and state government policies and incentives provided for the food processing sector.

He said private sector participation had increased in many segments of the value chain but sought more investment in contract farming, raw material sourcing and creating agri linkages.

There were opportunities in post-harvest management such as primary processing and storage, preservation infrastructure, cold chain and refrigerated transportation, the Prime Minister asserted.

There is immense potential for food processing and value addition, especially in niche areas such as organic and fortified foods.

Modi said India with its rich legacy of spices could provide solutions and offer a win-win partnership as the world was becoming increasingly averse to the use of artificial colours, chemicals and preservatives.

Modi said the Pradhan Mantri Kisan Sampada Yojana aimed at creating world class food processing infrastructure was expected to leverage investment of $5 billion, benefit two million farmers and generate more than half a million jobs over the next three years.

Narendra Modi said the government was planning to link agro-processing clusters with production centres through Mega Food Parks, which will offer immense value proposition in crops such as potato, pineapple, oranges and apples.

Minister of Food Processing Industries Harsimrat Kaur Badal in her address said agreements worth $10 billion were expected to be signed during the three-day global event.

Our demand of food is set to double over the next five years. Being six largest food and grocery market in the world, India is a destination that merits global attention in the food sector.

She said there was a need to wage war on food waste to ensure adequate food for all and to avoid a food crisis as the world’s population was set to increase by 25 per cent and the demand for food by 50 per cent by 2050. (IANS)

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Government approves FDI proposals worth Rs 24.56 cr

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FDI
Government approves FDI proposals worth Rs 24.56 cr

The government on Thursday said that it has approved foreign direct investment (FDI) proposals worth Rs 24.56 crore, including one from Sterling Commerce Solutions India.

“During the month of October, the Department of Economic Affairs (DEA), Ministry of Finance has disposed off three FDI proposals aggregating to foreign investment of Rs 24.56 crore,” an official statement said.

 The proposal of Sterling Commerce Solutions India, worth Rs 24.56 crore of FDI, has been approved that seeks to issue shares to the shareholders of three wholly owned subsidiaries of IBM India upon their merger with the company.

Another proposal from Arval India, which does not require any additional FDI, has been approved to undertake the activity of financial lease in addition to the current activity of operating lease, the statement said.

The ministry said that a proposal from Ivanhoe India Equities Inc to provide investment advisory services to overseas entities by a yet to be incorporated Indian investee company has been returned as it was premature.(IANS)

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Con man in Delhi Duped Amazon for over Rs. 50 Lakh; Arrested by Delhi Police for Fraud

Shivam, a resident of north-west Delhi’s Tri Nagar, holds a degree in hotel management. However, he chose to use all his management skills to con the commercial giant, Amazon

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Amazon logo. Wikimedia

New Delhi, October 11, 2017 : Leading e-commerce portal Amazon was taken for a ride by a 21-year-old youth who is said to have duped the company for over 50 lakh.

As per the police, the accused, identified as Shivam Chopra, bought over 166 expensive mobile phones via the online e-commerce store Amazon and consequently demanded refunds claiming he had received an empty box.

Shivam, a resident of north-west Delhi’s Tri Nagar, holds a degree in hotel management. However, he chose to use all his management skills to con the commercial giant, Amazon.

A complaint registered this year on behalf of Amazon Seller Services Private Limited first raised eyebrows in June when it was revealed that refunds had been claimed for as many as 166 mobile phones that had been ordered between April and May, on the claims that the delivery packages were empty. Suspicion gathered momentum when it was further revealed that payments for all these 166 mobiles were made through gift cards.

Allegedly, Shivam would use different customer accounts (reports suggest he used 48 different accounts) to place orders of expensive phones on Amazon and would provide the portal with a false address. He would then speak with the delivery associate and collect his order at a mutually decided place within the locality. Consequently, Shivam would then place complaints with Amazon, claiming that he had received an empty package and would demand a refund.

Subsequently, refunds were initiated in the form on gift cards.

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Following an enquiry, a case was registered with the Delhi Police in August.

The accused was then identified with the help of Amazon’s delivery persons, and the locals and by tracing the multiple numbers that were used to place the orders and Shivam was arrested on October 6.

According to the police, Shivam allegedly also purchased 150 pre-activated SIM cards to place the orders from different numbers. His accomplice in the con, Sachin Jain, has also been arrested, who helped provide him the SIM cards.

As per a report by PTI, upon investigation, the Delhi Police recovered 19 mobile phones from Shivam’s house. It was revealed that he had sold all other devices to buyers in the notorious Gaffar Market, or on the online marketplace OLX. The police also recovered Rs 12 lakh in cash, 40 bank passbooks and cheques from his house.

An Amazon India spokesperson later thanks ed the Delhi police for their services in an official statement and added, “We continue to work closely with the Delhi Police and thank them for all their efforts in the investigation.”

An ordinary guy who duped an e-commerce website and claimed refunds running into lakhs of rupees – the case is not a first of its kind. Previously, con-men had been arrested for duping rival e-commerce website FlipKart. However, what is peculiar is how no action has been taken to keep such frauds at bay and these cases continue to suffer.