GST rate on 3rd party insurance of freight vehicles slashed

The GST Council which had its 31stmeeting late last week in Delhi announced slashing of  rates on a number of items. From the perspective of the logistics and supply chain businesses, there are two critical initiatives. Firstly, the GST rate on third party insurance premium of goods carrying vehicles has been brought down from 18% to 12%. With road transportation accounting for 60 percent of the country’s total logistics business, this is slated to provide a major relief to the freight vehicle operators. The storage of foodgrains on behalf of…

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Hefty power bill concession for new industrial units in Dholera

Dholera (Gujarat) where country’s largest industrial smart city is coming up (also the largest node of the ambitious $100 billion Delhi-Mumbai Industrial Corridor Project), is offering industries and businesses 35% cheaper power than the rest of the country among a host of early bird incentives that promise to raise their global competitiveness. The unit is inching close to the completion of the first phase of development. “Assuming the per unit month of consumption is 7 lakh units for 2 MW of power, the total saving as compared to other states…

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Exports from SEZs may cross Rs 3 lakh crore mark

The cumulative exports from 230 operational Special Economic Zones (SEZs) is slated to grow beyond a staggering Rs 3 lakh crore mark at the end of this fiscal. The total number of approved SEZ units in the country is over 400, out of which 355 have been notified and 230 are currently operational. According to a recent commerce and industry ministry submission in the lower house of the parliament, the quantum of exports from the designated SEZ units has been on a consistent rise – going up from Rs 2,14,501…

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IATA issues positive outlook for cargo business

The International Air Transport Association (IATA) forecasts the global airline industry net profit to be $35.5 billion in 2019, slightly ahead of the $32.3 billion expected net profit in 2018 (revised down from $33.8 billion forecast in June). And an important constituent of this positive outlook is the expected improvement in the global air cargo business. According to a recent release by the apex aviation agency, cargo tonnes carried are expected to reach 65.9 million in 2019 (up from 63.7 million in 2018). “The 3.7% annual increase in cargo tonnage…

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LetsTransport raises Rs 100 crore in series B funding

Bengaluru-based tech-enabled logistics marketplace for intracity deliveries LetsTransport has raised a further Rs 100 crores for its future expansion. In the second round of funding, it managed to get funding support from Bertelsmann India Investments, Fosun International & other investors. The platform is currently covering 7 cities in the country – Bengaluru, Delhi, Chennai, Mumbai, Hyderabad, Pune and Vijayawada-  and is particularly aligned to fast moving consumer goods (FMCG), eCommerce, retail and logistics businesses. It claims to have 20,000 truckers in its network which is serving leading clients Coca-Cola, Amazon,…

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India’s share in the global GDP on a rising curve

In a recent written submission in the Rajya Sabha, the finance ministry has maintained that  the share of Indian economy in world(measured as a ratio of India’s GDP to world’s GDP at current US$) has increased from 2.6 percent in 2014 to 3.2 percent in 2017 (as per World Development Indicators database). The average share of Indian economy in world during 1960 to 2013 was 1.8 percent. The average growth of the Indian economy during 2014-15 to 2017-18 was 7.3 per cent, fastest among the major economies in the world.…

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Govt. to set up trade promotion bodies in 15 countries

Union Minister of Commerce &Industry and Civil Aviation, Suresh Prabhu, recently indicated government going ahead with the proposal of setting up trade promotion bodies in 15 countries to promote exports of SMEs from India. Suresh Prabhu was speaking at the inaugural session of the 15th Global SME Business Summit in New Delhi last week.  The Minister informed the participants of the Summit about the commitment of the Ministry of Commerce and Industry towards the growth of the SMEs that are the pivot of the overall economic growth of the country. The…

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flydubai to introduce direct flights to Kozhikode

Dubai-based flydubai has announced the launch of direct flights to Kozhikode in Kerala, India. The three times weekly service from Dubai International (DXB) to Kozhikode Calicut International Airport (CCJ) will start from 01 February 2019 making flydubai the only Dubai-based carrier to operate this route. Ghaith Al Ghaith, Chief Executive Officer, flydubai commenting on the new announcement: “we have always been proud of the strong ties between India and the UAE. We have seen a stronger flow of trade and tourism between the two countries over the past few years.…

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Shell picks up 49% stake in Cleantech

Cleantech Solar, a leading developer, owner, and operator of commercial and industrial solar energy systems in Southeast Asia and India last week announced signing an agreement with the global petroleum giant Shell wherein the latter will pick up 49% stake in the company. This investment will be Shell’s second major solar investment this year, giving Shell an immediate path to an established commercial and industrial platform in Southeast Asia and India. The deal is expected to close in January 2019.   Cleantech Solar will continue to operate under its existing management…

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Succession remains a key problematic issue

Korn Ferry in partnership with NSE organized a discussion with eminent experts on board practices in Indian companies during an event on 17th December. The discussion was held in the backdrop of launch of a recent study by Korn Ferry titled ‘Boards That Lead’.  Key findings of the study:  Succession Planning Seamless transition of CEO and other top leadership roles is an important activity and boards need to have better processes to ensure viable successors for these roles, keeping in mind that the capabilities of these successors are aligned to the future…

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