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Arun Jaitley assures foreign investors on reforms, tax regime

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New York: Finance Minister Arun Jaitley has assured foreign investors on their concerns about the speed of India’s reforms process, as well as about an adversarial tax regime.

“Concerns that the process of reforms must expedite, which we are trying to do. Concern at the stability of policy, which has been assured because the government’s movement is in one direction,” Jaitley told reporters here on Wednesday after a visit to the New York Stock Exchange.

“Investors are certainly looking forward at India in order to make large amount of investments in India,” he said.

The finance minister, accompanied by a high-powered business delegation, is on a 10-day visit to the US to foster bilateral ties.

Jaitley, who in his 2015-16 Budget, exempted foreign insitutional investors (FIIs) from paying minimum alternate tax (MAT) with effect from April, also said there are concerns about India’s taxation regime.

Even after his announcement on exempting FIIs from paying MAT on capital gains earned by them, the Income Tax department sent notice to at least 90 foreign portfolio investors.

With the uncertainty created by MAT, foreign investors sold Indian shares and bonds of around $630 million on May 6, marking the biggest single-day sale since January 2014.

Jaitley expressed satisfaction that foreign direct investment (FDI) went up by 39 percent last year.

“Almost by the day we are getting proposals both through the direct route and also through the Foreign Investment Promotion Board route,” he said.

As many as eight past presidents of the Federation of Indian Chambers of Commerce and Industry (Ficci) as well as current head Jyotsna Suri are part of Jaitley’s delegation.

Ficci and the US-India Business Council (USIBC) will facilitate meetings with CEOs, business leaders, investors, and representatives from the US industry and Indian-American community.

A business delegation comprising senior members from Confederation of Indian Industries (CII) will also be joining the finance minister.

The CII said in a release that among the various meetings being coordinated during the delegation’s visit, discussions are being organised with pension funds like CalPERS, CalSTRS, University of Stanford Endowment, University of California Endowment, San Francisco Employees Retirement Fund and others as well as investment companies like Capricorn Investment Group, Think Investments and others.

Jaitley’s US itinerary during the visit, ending on June 25, embraces New York, Washington and San Francisco cities.

(IANS)

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Bangladesh Turns to Fill Ever-Growing Gap Between Energy Consumption and Supply by FDI

With 95% of the population now having access to electricity, Bangladesh is focusing on increasing its use of renewable energy as climate and other environmental concerns are growing across the globe

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A Bangladeshi man works on the tangled electric cables hanging above a street in Dhaka, Bangladesh, Dec. 12, 2017. VOA

Bangladesh has long struggled with power outages, with the nation experiencing its worst electricity crises in 2008 and 2009. Reports said one blackout, in 2014, affected as many as 100 million people — more than 60% of the population.

With a growing economy and a large population, the country always runs the risk of hampering its development process, which could cause instability. To counteract this, Bangladesh has turned to courting foreign direct investment to fill its ever-growing gap between energy consumption and supply. Companies from Britain, China, India and the United States have invested in the energy industry in Bangladesh.

With 95% of the population now having access to electricity, Bangladesh is focusing on increasing its use of renewable energy as climate and other environmental concerns are growing across the globe.

In an exclusive interview with VOA, Dr. Tawfiq-e-Elahi Chowdhury, energy adviser to Prime Minister Sheikh Hasina, talks about how a developing country like Bangladesh is taking initiatives to bring power to the entire population by 2021 that will include an increase in green energy alternatives.

energy industry, bangladesh
Bangladesh Foreign Minister A.H. Mahmood Ali, left, shakes hands with Chinese Foreign Minister Wang Yi before a meeting at the Diaoyutai State Guesthouse in Beijing Friday, June 29, 2018. VOA

VOA: In your address during during Bangladesh Energy and Power Summit 2018, you said investment and development of innovative technologies are the two major issues that need to be given more priority to meet the power generation targets. What steps have you taken so far to achieve this?

Chowdhury: Since 2009, we have mobilized $20 billion of investment in the power sector projects, which has been approved and are being implemented. Half of this $20 billion investment will come from the private sector. We are encouraging foreign private investors to come and invest in the power sector.

Moving away from a policy of relying on domestic investment or investments from multilateral agencies like the World Bank and the Asian Development Bank, our government went out to the market and involved the private sector, in particular the foreign companies who have made bids for various power projects, to raise funds on their own.

In terms of development of innovative technologies, we have established the Bangladesh Energy and Power Research Council to develop technological solutions, which are environmentally friendly. The council also aims to promote research and innovation in sustainable renewable energy.

VOA: As of 2018, Bangladesh had a capacity of generating power of 18,000 megawatts and your goal is to generate 60,000 megawatts by 2041. But how much of this 60,000 would be renewable energy?

Chowdhury: I would say 10% is a good target. We are building a nuclear power plant with 1,200 megawatts of electricity generation capacity that can be upgraded to generating up to 2,400 megawatts.

energy industry, bangladesh
U.S. Secretary of State Mike Pompeo addresses the India Ideas Summit in Washington, D.C., June 12, 2019. VOA

We are also exploring possibilities of using wind energy turbines in five or six areas of the country, and invited proposals from interested companies.

We have the largest [coverage of] solar home systems in the world, [amounting to] over 6 million homes. Multiply this [by] five [members] in each home, and you have 30 million people who have access to renewable energy via solar home systems.

These are stand-alone solar home systems, small solar panels for individual households, not connected to a national grid. So they have their limitations, and I think we have reached as far as we can go through this route.

We are exploring the possibilities of connecting our national grid to national grids of other South Asian countries like India, Myanmar, Bhutan and Nepal. … Nepal and Bhutan have great potential in developing hydropower projects that would produce renewable energy in enormous quantity that can be imported to Bangladesh by connecting our national grids with the national grids of India, Nepal and Bhutan.

VOA: In an interview with Voice of America, Bangladesh Foreign Minister Dr. M.A. Momen said that in his recent meeting with U.S. Secretary of State Mr. [Mike] Pompeo, the U.S. investment or the U.S.-Bangladesh partnership in exploration [of hydrocarbon reserves in offshore blocks] did come up, so where are we on that?

Chowdhury: U.S. companies have shown interest in investing in new explorations. Mobil came to us and showed their interest in both upstream and downstream hydrocarbon industry. We will invite them to come and discuss with us the possibility of exploration of deep sea [hydrocarbon reserves].

VOA: Are there any other areas in the energy sector where U.S. investment or U.S.-Bangladesh partnership is possible?

energy industry, bangladesh
FILE – The logo of General Electric is pictured at the 26th World Gas Conference in Paris, France, June 2, 2015. VOA

Chowdhury: Recently, we have signed a memorandum of understanding with General Electric and its local partner to provide over 2,000 megawatts of electricity. And we have signed a contract with Summit Power and GE to build a 583-megawatt power plant. So the U.S. companies are showing a lot of interest. We are hoping that they will bring state-of-the-art technology.

Chowdhury: U.S. companies have shown interest in investing in new explorations. Mobil came to us and showed their interest in both upstream and downstream hydrocarbon industry. We will invite them to come and discuss with us the possibility of exploration of deep sea [hydrocarbon reserves].

ALSO READ: Trump Administration Commits to Make Fossil Fuels Cleaner, Says Energy Secretary

VOA: Are there any other areas in the energy sector where U.S. investment or U.S.-Bangladesh partnership is possible?

Chowdhury: Recently, we have signed a memorandum of understanding with General Electric and its local partner to provide over 2,000 megawatts of electricity. And we have signed a contract with Summit Power and GE to build a 583-megawatt power plant. So the U.S. companies are showing a lot of interest. We are hoping that they will bring state-of-the-art technology. (VOA)