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Review of the policy on Foreign Direct Investment (FDI) in Multi-Branded Retail Trading

Cabinet Decision

The Union Cabinet today approved the proposal for amendment in the existing FDI policy in Multi-Brand Retail Trading (MBRT) in para 6.2.16.5(1) (iii), (iv) and (vi) of ‘Circular 1 of 2013 – Consolidated FDI Policy.

a) Amendment in para 6.2.16.5(1) (iii) of ‘Circular 1 of 2013- Consolidated FDI Policy’ to read as follows:

“At least 50% of total FDI brought in the first tranche of US$ 100 million, shall be invested in ‘backend infrastructure’ within three years, where ‘back-end infrastructure’ will include capital expenditure on all activities, excluding that on front-end units. For instance, back-end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, ware-house, agriculture market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be counted for purposes of backend infrastructure. Subsequent investment in the back-end infrastructure would be made by the MBRT retailer as needed, depending upon his business requirements”.

b) Amendment in para 6.2.16.5(1)(iv)of ‘Circular 1 of 2013 – Consolidated FDI Policy’ to read as follows:

“At least 30% of the value of procurement of manufactured/ processed products purchased shall be sourced from Indian micro, small and medium industries which have a total investment in plant & machinery not exceeding US $ 2.00 million. This valuation refers to the value at the time of installation, without providing for depreciation. The ‘small industry’ status would be reckoned only at the time of first engagement with the retailer and such industry shall continue to qualify as a ‘small industry’ for this purpose even if it outgrows the said investment of US$ 2.00 million, during the course of its relationship with the said retailer. Sourcing from agricultural co-operatives and farmers co¬operatives would also be considered in this category. The procurement requirement would have to be met, in the first instance, as an average of five years’ total value of the manufactured/ processed products purchased, beginning 1st April of the year during which the first tranche of FDI is received. Thereafter, it would have to be met on an annual basis”. 

c) Amendment in para 6.2.16.5(1)(vi) of ‘Circular 1 of 2013 – Consolidated FDI Policy’ to read as follows:

“Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per the 2011 Census or any other cities as per the decision of the respective State Governments, and may also cover an area of 10 kms around the municipal/urban agglomeration limits of such cities; retail locations will be restricted to conforming areas as per the Master/Zonal Plans of the concerned cities and provision will be made for requisite facilities such as transport connectivity and parking”.

The amendment in the extant FDI policy relating to Multi-Brand Retail Trading in respect of ‘small industry’ will bring in a balance between the business exigencies of the MBRT entity and intent of the policy which is to extend the benefits of the FDI policy in multi-brand retail trading to a larger constituency of small industries. The amendment in the provision regarding ‘back-end infrastructure’ will give more clarity to the policy. The amendment to the provision regarding location of retail outlets will bring in parity in the policy as it is proposed to extend such dispensation to all States.

Dharmendra Kumar’s Article on Indian Poverty

Article published July 18th, 2013 in Hindi daily Prabhat Khabar on the National Sample Survey Organization recent survey reporting 15% decline in Indian Poverty between 2004-2005 to 2011-2012.

Full article here.

Dharmendra Kumar’s Article on Indian Poverty

Article published July 18th, 2013 in Hindi daily Prabhat Khabar on the National Sample Survey Organization recent survey reporting 15% decline in Indian poverty between 2004-05 to 2011-12.

Prabhat Khabar 18 July 13

Report from Ecuador ACORN June 2013

Les saludo esperando que al recibo de ésta se encuentren bien.

En este mes realizamos en el barrio nuestra segunda reunión el domingo 03-06-2013, como ya informé hubieron alrededor de 20 personas, contamos con la presencia del Sr. Francisco Prado que es el Coordinador del departamento de Gestión Participativa, él dio una breve explicación sobre lo que se debe hacer para regularizar el barrio (las 3 etapas), así mismo se eligió la nueva directiva que fue posesionada por el funcionario del Municipio.

De lo que se resolvió hacer en esta reunión a la verdad se ha cumplido poco porque no hubo colaboración de toda los moradores en cuanto a enviar los documentos (copias de cédula y certificado de votación) para la actualización de la Directiva en el MIES (Ministerio de Inclusión Económica y Social) y así mismo tienen que hacer una Declaración juramentada que el abogado les cobra $120.oo por cuanto ésta debió haberse elegido( la directiva) en el mes de enero, y hasta la presente ya están atrasados.

A mediados del mes fui al Municipio para conversar con el Sr. Francisco Prado, me fue bien, pero fue muy enfático en informarme que si no se regulan primero los lotes el Municipio como tal no podrá invertir o hacer alguna obra en algún barrio (ya que para ellos si no están legalizados lo consideran como privado) así que depende exclusivamente de los moradores en que se apuren haciendo las gestiones pertinentes.

Por tal motivo he seguido hablando con los moradores del barrio Pinar Bajo casa por casa para animarles, para que cambien de actitud, para que hagan conciencia que depende de ellos el cambio en su barrio y por lo tanto el progreso de sus familias.

El jueves 27 de junio intenté conversar nuevamente con el Sr. Prado para lo del Recolector de basura que hablamos por Skipe, pero estuvo muy ocupado en reuniones y comisiones, quedamos para esta semana a partir del miércoles por la tarde hablar sobre este asunto.

Así mismo estoy invitando personalmente a los moradores para los próxima reunión que la tendremos este domingo 7 de julio a las 08H00 en donde esperamos tener mas gente (a esas personas que aún no han querido unirse al resto), me ha resultado difícil ya que son complicadas estas personas porque tienen muchos resentimientos pasados y división de ideales.

En cuanto a los contactos he continuado haciéndolos: he tocado unas 80 puertas y he logrado unos 40, me he reunido con el Sr. Luis Taday, una vez por semana, también lo hacemos por medio del correo electrónico, él me pide que le siga ayudando porque sabe que la gente es difícil, yo le digo que siempre hay que perseverar a pesar de las dificultades (esto también me ayuda a mí).

Bueno es lo que puedo informar, espero que sea preciso y objetivo, y le seguiré echando ganas.

Ps. adjunto fotos de la segunda reunión.

1. Es el Sr. Prado

2. Parte de la nueva directiva

3. La gente dispersa escuchando

Marlene Castro

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Señores:

ACORN INTERNATIONAL

San Pedro Sula- Honduras

Estimados señores:

Me complace mucho dirigirme a uds. y a la vez presentarles este pequeño Informe de las actividades que he emprendido desde acá la mitad del mundo Ecuador.

Por el mes de febrero empecé buscando barrios según los perfiles establecidos por ACORN, me agradaron 3 barrios que estaban situados al norte, centro y sur de Quito, finalmente escogí el Barrio El Pinar- Toctiuco al centro norte de Quito.

Luego, al empezar a tocar puertas pude definir sus tres necesidades prioritarias que son:

1.- Legalización de sus lotes

2.- Legalización del barrio

3.- Adoquinado de calle principal, entre otras.

La gente del barrio es sencilla, por lo general trabajan de lunes a sábado y son empleadas domésticas, guardias, amas de casa, estudiantes et, etc. pero así mismo no son unidos y durante 30 años no han podido solucionar le legalización de sus tierras porque cada cual lo ha hecho individualmente y no colectivamente, y esto ha permitido que no haya progreso y que personas inescrupulosas los engañen.

He contactado con mucha gente, algunos me han recibido bien, unos pocos no, he tenido algunos progresos como haber logrado la 1era reunión el 28 de abril en la cual asistieron 18 personas (firmaron ) y unas 7 personas que solo se dedicaron a escuchar, fue un tiempo de explicar lo que es ACORN, de hablar de igualdad, unión, cambios de actitud, solidaridad, de romper el hielo, todo lo que hice tuvo acogida unos poquísimos no lo aceptaron. Si logré que en su mayoría los moradores tomen la decisión de unirse y trabajar por el progreso de sus familias y del barrio, así mismo empecé a trabajar en otro barrio Miraflores Alto queda cerca del otro y que también tienen la necesidad de legalizar sus lotes; y desde allí sigo tratando de organizar no he dejando de hacer contactos, y continúo ahora planificando la 2da reunión que está programada para este 2 de junio de 2013. En este tiempo algunos moradores se han manifestado atentos a mi persona y dispuestos también a colaborar.

Yo nombré un Representante ACORN (Sr. Luis Daday) y los que asistieron a la 1era reunión lo confirmaron, con él estoy coordinando todos los asuntos relacionados con la reunión venidera en donde pensamos crear un Plan de Acción.

Entre los inconvenientes que se me han presentado tenemos:

1.- No tener una credencial de respaldo, autorizada

2.- Me preguntan si tenemos Personería Jurídica

3.- Quieren saber si a mas de la organización ACORN ofrece otras cosas.

Bueno, esto es cuanto puedo informar resumidamente, la verdad ha sido una experiencia enriquecedora, he aprendido mucho y sé que seguiré aprendiendo.

Me despido agradeciéndoles por la atención dada, y les deseo muchos éxitos en la labor que hacemos.

Atentamente,

Marlene Castro

Gentlemen

ACORN INTERNATIONAL

San Pedro Sula, Honduras

Dear Sirs:

I am very pleased to direct me to you. introduce yet this little report on the activities I have undertaken since half the world here Ecuador.

For the month of February I started looking neighborhoods according to profiles established by ACORN sucked 3 districts that were located north, center and south of Quito, finally chose the Barrio El Pinar-Toctiuco north central Quito.

Then, to start knocking on doors could define three priority needs are:

1. – Legalization of their lots

Two. – Legalization of the neighborhood

Three. – Cobblestone Main Street, among others.

The people of the neighborhood is simple, usually work from Monday to Saturday and are domestic workers, guards, housewives, students, et, etc. but likewise are not united and for 30 years I have been unsuccessful legalization of their lands because everyone has done individually and not collectively, and this has allowed no progress and that unscrupulous people fool you.

I have contacted many people, some have welcomed me, a few not, I’ve had some progress and have achieved the 1st meeting on April 28 in which 18 people attended (signed) and about 7 people who were devoted only to listen, was a time to explain what is ACORN, to speak of equality, union, changes in attitude, solidarity, break the ice, all I did was host a very few did not accept. If I managed to get most of the inhabitants make the decision to join and work for the progress of their families and the neighborhood, also started working in another neighborhood Miraflores Alto is near the other and also have the need to legalize their lots; and from there I’m trying to organize I have left to make contacts, and continue now planning the 2nd meeting scheduled for this June 2, 2013. At this time some residents have expressed attentive to me and also willing to collaborate.

I named ACORN Representative (Mr. Luis Daday) and those who attended the 1st meeting was confirmed, with him I am coordinating all matters related to the upcoming meeting where we create an action plan.

Among the problems that I have presented are:

1. – Not having a backup credential, authorized

Two. – I wonder if we have legal status

Three. – Want to know if more of ACORN offers other things.

Well, this is all I can briefly tell the truth has been an enriching experience, I learned a lot and I know I will keep learning.

I send thank them for the care given, and wish them every success in the work we do.

Sincerely,

Marlene Castro

ACORN Foundation India and Kitab Khana, Mumbai, invite you to the launch of ‘Dharavi: The City Within’

Acorn Foundation India and Kitab Khana, Mumbai, invite you to the launch of ‘Dharavi: The City Within’

DATE: June 14, 2003 TIME: 6 p.m to 7.30 p.m

VENUE: Kitab Khana bookstore, Somaiya Bhavan, M.G Road, Fort, Mumbai

‘Dharavi: The City Within’ is edited by Joseph Campana and published by Harper Collins

PROGRAMME:

1. Introduction by Vinod Shetty, director, Acorn Foundation: He will speak about Dharavi and the origins and purpose of the book.

2. A panel comprising: (i) Laxmi Kamble: activist from Acorn and the waste sector

(ii) Shirish Patel: Architect and urban planner

(iii) Thayapa Santi: Educationist and activist working in Dharavi

(iv) Kalpana Sharma: senior journalist and columnist

The speakers will highlight some of the main issues related to Dharavi, including redevelopment.

3. This will be followed by a discussion with questions / comments from the audience.

4. We will close with a short music performance by 4 members of Dharavi Rocks, a band of young people who work and study in Dharavi.

ABOUT THE BOOK:

Dharavi houses half-a-million people and has some of the most expensive real estate in Mumbai. Behind its success are the efforts of thousands of extraordinary people. In ‘Dharavi: The City Within’ the dreams, aspirations and anxieties of this thriving community come alive in the hands of some of India’s best writers and journalists. Meet Prema Salgaonkar, who knocks on 500 doors a day taking deposits for the Mahila Milan Bank to make sure her neighbours have money set aside for when trouble hits. Meet Vadivel Thambi, who delivers milk and texts his poetry to hundreds of adoring fans. Meet Sayeed Khan Bucklewala, a brass foundry owner who makes millions selling belt buckles. Find out how the people who live here pay their bills, cope with shiftless and abusive spouses, educate their children, and protect their homes and livelihoods from those who would turn them out. Alongside is a larger overview of what it means to live in such a city system. Dharavi, in the course of its evolution, has raised a number of issues pertaining to decent living standards, development and maintaining amity. These hold important lessons for India as a whole as it urbanises at a rapid pace.

ABOUT THE EDITOR:

Joseph Campana lived in Mumbai from 2007 to 2011. He taught feature writing and literary journalism at the Xavier Institute of Communications and literature at the merican School of Bombay. His writing has appeared in the Indian Express and Time Out Mumbai. He currently lives in Missoula, Montana.

ABOUT ACORN: The Acorn Foundation India Trust organises waste-workers and trains them in scientific methods of waste handling, segregation and recycling. The Dharavi Project is a multi-media project of the Acorn Foundation that utilises artists and social-impact programmes to change the living conditions of over 100,000 ‘rag-pickers’ who segregate waste in Mumbai. Its mission is to increase the welfare of waste-workers and give their profession a legitimate and sustainable voice in the recycling and waste-management value chain in the city.

DIPP Issues Clarification on FDI in Retail

June 6th, 2013

DIPP issues clarification on FDI in Retail.

DIPP issues Clarification on FDI in Retail

June 6th, 2013

Clarification issued today by DIPP on FDI in Retail.

DIPP Meeting

June 4th, 2013

As you know, superstores including Walmart, Carrefour, Tesco were studying the policy riders for 51% FDI in multibrand retail. As the DIPP received a number of queries from superstores, a multi-ministry meeting of concerned officials is being held today in DIPP to issue clarifications.

It is likely that the DIPP

– Would ask global superstores to invest 50% of only the first tranche of investments (minimum $100 million) in back-end infrastructure.

– Would declare that the 51% foreign direct investment limit in multi brand retail is composite one, including FDI and foreign institutional investment (FII).

 – Would allow superstores to create back-end infrastructure in states that do not allow any FDI in multi-brand retail. As of now only 11 states have agreed to allow global retailers. Yesterday the new govt. of Himachal Pradesh announced its agreement with FDI retail policy.

 

DIPP Meeting

June 4th, 2013

As you know, superstores including Walmart, Carrefour, Tesco were studying the policy riders for 51% FDI in multibrand retail. As the DIPP received a number of queries from superstores, a multi-ministry meeting of concerned officials is being held today in DIPP to issue clarifications.

It is likely that the DIPP

– Would ask global superstores to invest 50% of only the first tranche of investments (minimum $100 million) in back-end infrastructure.

– Would declare that the 51% foreign direct investment limit in multi brand retail is composite one, including FDI and foreign institutional investment (FII).

– Would allow superstores to create back-end infrastructure in states that do not allow any FDI in multi-brand retail. As of now only 11 states have agreed to allow global retailers. Yesterday the new govt. of Himachal Pradesh announced its agreement with FDI retail policy.

Yet Another Roadblock for Walmart

On 3rd June 2013, Govt. of India defined Group firms as two or more enterprises that directly or indirectly are in a position to exercise 26% or more voting rights in the other enterprise or appoint more than 50% members on board of directors in the other enterprise.

Amidst widespread opposition to the Walmart’s backdoor entry of FDI in Multibrand retail (through Bharti-Walmart, the 50:50 joint venture between Walmart and Bharti for operating Cash-and-carry outlets in India), in April 2010 Govt. of India framed a policy that asked cash-and-carry businesses (Bharti-Walmart) to limit their sale to group firms at 25 per cent of their turnover. In absence of clear definition of what group firms meant Bharti-Walmart’s cash & carry business (20 Best Price Stores) continued to sale almost 85% of their products to Bharti Retail’s 200 Easy Day stores.

Now, Bharti-Walmart will either have to limit its sale to Easy Day to 25 per cent of its turnover or restructure its corporate structure.


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