Suggestions for the Government of India by JCCII 2020
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Suggestions for
the Government of India
by JCCII 2020
Table of Contents
Segment 1 Infrastructure (Roadways, Ports) .......................................................... 3
Suggestion No.1-1: Construction of the new Haryana-UP link road that bypasses
Delhi .............................................................................................................. 3
Suggestion No.1-2: Progress of NH8 linking Gurgaon-Manesar-Bawar-Neemrana..... 8
Suggestion No.1-3: Work on related roadway works in the runup to the CBIC
(Chennai Bangalore Industrial Corridor) implementation ......................................12
Suggestion No.1-4: Work on roadways around Chennai area ................................17
Suggestion No.1-5:Work on roadways around Bangalore area ..............................19
Suggestion No.1-6:Upgrade of Kamarajar Port ...................................................21
Segment 2 TAX System ......................................................................................24
Suggestion No.2-1:Consumption stimulus measures/Unilateral import tariff changes
....................................................................................................................24
Suggestion No.2-2:Reduction of corporate tax rate for foreign branches ................26
Suggestion No.2-3:Tariff on TV Open Cells etc… .................................................27
Segment 3 Government Response .......................................................................29
Suggestion No.3-1:Clarification of e-commerce site management standards for
foreign companies...........................................................................................29
Suggestion No.3-2:Simplification of the exemption application for repeat use
materials .......................................................................................................31
Suggestion No.3-3:Flexible implementation timeline for mandatory standards
amidst the pandemic environment ....................................................................33
Suggestion No.3-4: GST exemption on medicines ...............................................35
Suggestion No.3-5:Clarification and proper documentation of India's post-marketing
commitments .................................................................................................37
Suggestion No.3-6: Implementation of Proper plastic regulations .........................39
Suggestion No.3-7:Implementation of proper e-waste management regulations .....41
Suggestion No.3-8: Clarification of labeling provisions in accordance with the Legal
Metrology Law ................................................................................................43
1
Suggestion No.3-9:Relaxation in bidding qualifications (commercial and technical) for
power cable bidders ........................................................................................45
Suggestion No.3-10:Expediting permits and procedures (Still waiting for subsidy
refund from MH govt) ......................................................................................48
Suggestion No.3-11:Expediting court proceedings in Indian courts........................50
Suggestion No.3-12:Eradication of harassment by senior officials of relevant
ministries and agencies. ..................................................................................51
Segment 4 Baking Sector (Finacial System) ..........................................................52
Suggestion No.4-1:Relaxation of PSL (Priority Sector Lending) regulations .............52
Suggestion No.4-2:Elimination of the Non-Objection-Certificate (NOC) requirement 53
Suggestion No.4-3:Request regarding revision of calculation of credit to a single
company under the Single Borrower Limits ........................................................55
Suggestion No.4-4:Licensing requirements by CCIL from the FSA for OTC derivatives
clearing transactions .......................................................................................57
Suggestion No.4-5:Removal of the monetary limit on borrowings from the head office
of foreign bank ...............................................................................................59
Suggestion No.4-6: Shortening of the Minimum Average Maturity (MAM) of external
commercial banking (ECB) borrowing from the parent company ...........................60
Segment 5 IPR ..................................................................................................62
Suggestion No.5-1:Proper examination of the establishment of trademark rights etc…
....................................................................................................................62
Suggestion No.5-2:Removal of the obligation to submit foreign application etc….....66
Suggestion No.5-3:Administrative guidance to e-commerce website operators in
India .............................................................................................................69
Segment 6 Regulation ........................................................................................71
Suggestion 6-1:Lifting the ban on group corporate finance in India along with the
abolition of deemed dividends ..........................................................................71
2
Segment 1 Infrastructure (Roadways, Ports)
Suggestion No.1-1: Construction of the new Haryana-UP link road that
bypasses Delhi
Company：DENSO INTERNATIONAL INDIA PVT LTD
1. Subject of proposed submission
Please expedite the remaining connectivity gaps by interchange of EPE(East
Peripheral Expressway) and Yamuna Expressway. This refers to the construction
of the new arterial road between Haryana and UP, bypassing Delhi.
2. Submission proposed to:
PMO, NHAI, YEIDA
3. Key Issue/background
In recent years, industrial activity has grown exponentially in Haryana (esp.
Gurgaon, Manesar), Rajasthan (Neemrana) and UP (Greater Noida). As a result
there has been an equivalent surge in logistics cargo volumes between Haryana
and UP. EPE and WPE are appreciated by all citizens of the area. Final point is to
keep connectivity of EPE and Yamuna Expressway by Interchange, not only for
Industry and convenience but also the defense and security for National Security
Guard to work on road.
4. How this proposal benefits India
Will enhance the competitiveness of industry in the Haryana and UP by way of
reducing transportation distance and time.
Will reduce the security risk in core areas with direct connectivity of NH8 – EPE –
Yamuna Expressway by interchange.
5. Comparable global standards/best practices
In ASEAN, especially, in Thailand, there is a ring road which completely bypasses
Bangkok, and all important road connectivity is kept through Interchanges.
6. Trajectory of discussions/government response
The remaining point is connection with Interchange of EPE and Yamuna
Expressway. Even though Tender floating process has started on 14 June, 2019,
3
the construction of interchange has not started yet. This Interchange connectivity
issue has been acknowledged even by the PMO and they requested NHAI to
proceed speedily. DPIIT’s support is also appreciated.
NHAI replied to PMO on 16 June 2020, that “monitoring committee, consulted by
Supreme Court of India to review the progress of construction of EPE, in its 29th
Meeting, decided that the interchange on Yamuna Expressway will be constructed
by Yamuna Expressway Industrial Department Authority (YEIDA) through e-
tendering to connect EPE and Yamuna Expressway. Accordingly YEIDA has taken
up the work and awarded the project work to M/s Devv Yash Project and
Infrastructure PVT LTD through e-tendering.
[Supplemental data]
(1) My write to PMO
Honorable Prime Minister
1) My brief profile
I am Nobuhiro Takahashi, Managing Executive Officer of DENSO International
India Pvt. Ltd. DENSO group has a history of more than 30 years in India. We
really appreciate the Indian Central Government’s vision for expansion of
business in India and the vision of the developing infrastructure as the symbol of
4New India. I live in Gurgaon continuing the fight with new virus with our
members.
2) My small observation, as one of non-immigrant citizen staying in Delhi NCR,
since last 13 years, is as follows:
One of agenda of another 5 years to come for India is also the expansion of the
Indian economy size or Indian Domestic Market Value to realize new India
through Infrastructure development etc.,
My small understanding of Road Infrastructure is, that the Road Infrastructure is
not only for convenience of citizens and efficiency of economic activities to seek
for the independency of economy without depending on some specific country
like China Communist Party, but the Road Infrastructure is the important
infrastructure for the defense and security. Without appropriate road
infrastructure, how National Security Guard can send troop on road to the
required place. I was in India when the Radical Islamic Terrorist attack
happened at Mumbai in year 2008.
In the view of the defense and security, the connectivity of Road / Highway is
required to implement. All Highway is required to keep connectivity, for National
Security Guard to send troop immediately towards the require venue on road,
not only by air, like helicopter.
Now New Airport Project, like Jewar Airport, is available. Many Citizens in past
requested UP State to realize the connection of EPE and Yamuna Expressway
with Interchange sooner. However the process of vender selection had stopped
for a long time.
Without the connectivity of Yamuna Express Way, EPE and NH8, how National
Security Guard works by Road Transportation to send troop to the Jewar Airport,
in case of Radical Islamic Terrorist attack.
UP State might not learn anything from the very sad historical incident
happened in year 2008.
It might be required for Central Government to focus on / emphasize the
connectivity of each highway project and the existing highway with each others.
53)Finally, the strong intention of the Central Government to make India better,
will break through any obstacle to realize the new India for India’s Future
Prosperity
(Finish)
(2) The Reply from PMO and NHAI
6(3) News Paper Article URL
14July2020
Delayed Interchange on Yamuna E-way: Moved by a Japanese executive,
PMO intervenes; Asks NHAI to clarify
https://www.asiancommunitynews.com/delayed-interchange-on-
yamuna-e-way-moved-by-a-japanese-executive-pmo-intervenes-asks-
nhai-to-clarify/
7Suggestion No.1-2: Progress of NH8 linking Gurgaon-Manesar-Bawar-
Neemrana
Company：DENSO INTERNATIONAL INDIA PVT LTD
1. Subject of proposed submission
Road construction of NH8 (esp. Gurgaon - Manesar - Bawal - Neemrana) should
be expedited at the earliest i.e. enhancement of facilities for drainage and
construction of pedestrian crossing bridges and flyover etc.. Especially Flyovers at
Bilaspur and Kapdiwas are required to be completed on priority.
2. Submission proposed to:
PMO,NHAI, Haryana State
3. Key Issue/background
Around 100 Japanese manufacturing plants are located along NH8 (Gurgaon,
Manesar, Bawal and Neemrana). However, all of them suffer due to delayed
transfer of products and/or parts because of severe traffic jams which occur
frequently as a result of the long-pending Flyover construction on Bilaspur and
Kapdiwas besides Old Rao Hotel of NH8. Due to this all such Japanese companies
that have invested in the region as well as other industries incur heavy losses in
transportation.
4. How this proposal benefits India
There are many potential Japanese investors who want to set up manufacturing
plants along NH8. Improvement of the road construction on NH8 (especially,
Gurgaon, Manesar, Bawal and Neemrana) gives foreign investors’ confidence to
invest in the areas along NH8 and will lead further investment from Japan. NH8 is
required to become a stress-free highway for industries from Manesar to Delhi,
Ahmedabad and Mumbai.
5. Comparable global standards/best practices
In many Asian countries such as China, Thailand, Indonesia and Vietnam,
resolving the traffic jam situation at access roads to industrial park is taken as a
top priority issue in order to facilitate investment from abroad.
86. Trajectory of discussions/government response
The remaining points are the flyovers of Bilaspur and Kapdiwas besides Old Rao
Hotel. Those two Flyover projects put on Agenda by Haryana State Parliament in
CY 2020. The support from Central Government is very much appreciated. PMO
is also cognizant of these Flyover matters.
[supplemental data]
(1) My write to PMO (FILED by PMO)
Honorable Prime Minister
1) My brief profile
I am Nobuhiro Takahashi, Managing Executive Officer of DENSO International India
Pvt. Ltd. DENSO group has a history of more than 30 years in India. We really
appreciate the Indian Central Government’s vision for expansion of business in India
and the vision of the developing infrastructure as the symbol of New India. I live in
Gurgaon continuing the fight with new virus with our members.
2) My small observation, as one of non-immigrant citizen staying in Delhi NCR, since
last 13 years, is as follows:
One of agenda of another 5 years to come for India is also the expansion of the Indian
economy size or Indian Domestic Market Value to realize new India through
Infrastructure development etc.,
9My small understanding of Road Infrastructure is, that the Road Infrastructure is not
only for convenience of citizens and efficiency of economic activities to seek for the
independency of economy, not-depending on some specific country, eg. China
Communist Party, but the Road Infrastructure is the important infrastructure for the
defense and security. Without appropriate road infrastructure, how National Security
Guard can send troop on road to the required place. I was in India when the Radical
Islamic Terrorist attack happened at Mumbai in year 2008.
In the view of the defense and security, the connectivity of Road / Highway is
required to implement. All Highway and road are required to keep connectivity, for
National Security Guard to send troop immediately towards the require venue on road,
not only by air, like helicopter.
Now NH8 is very much important road infrastructure from Delhi to Ahmedabad. Many
Citizens requested Haryana State to complete Flyover Project at Bilaspur and Kapdiwas
besides Old Rao Hotel.
And on Haryana State Parliament, those project was discussed and put on the budget
2020.
NH8 is important for National Security Guard to send troop by road to Jaipur or
Ahmedabad with smooth traffic for immediate action of defense towards Radical
Islamic Terrorist attack.
In my small observation, Haryana State Parliament fully understood the importance of
Road Infrastructure, from that very sad historical incident happened in year 2008.
It might be required for Central Government to support Haryana State Government to
complete NH8 Flyover at Bilaspur and Kapdiwas besides Old Rao Hotel.
3)Finally, the strong intention of the Central Government to make India better, will
break through any obstacle to realize the new India for India’s Future Prosperity
(Finish)
10(2) Haryana State CM office write to Transport Bawan
(FINISH)
11Suggestion No.1-3: Work on related roadway works in the runup to the
CBIC (Chennai Bangalore Industrial Corridor) implementation
Company：TOYOTA KIRLOSKAR INDIA PVT LTD,
1. Suggestion
Development of ring roads toward implementation on CBIC (Chennai Bengalure
Industrial Corridor)
CBIC is the development concept which both Government of India and Japan
promote in respond to economic development and investment conditions in
Chennai, Bangalore, and their surrounding areas.
We expect CBIC will realize increase in business competitiveness of companies in
this area by developing effective accumulation of industries with necessary
infrastructure, and further investments from Japanese companies.
For this reason, we recognize enhancement of connectivity between key facilities,
such as ports, National Highways and industrial parks, and the following major
ring roads are of high priority and should be completed at the earliest.
1) Chennai
a. Peripheral Road (Chennai Peripheral Ring Road section 2/3/4/5)
b. Northern Port Access Road (Chennai Peripheral Ring Road Section 1)
c. Outer Ring Road
2) Bengaluru
a. Peripheral Ring Road
b. Satellite Town Ring Road
2. Submission proposed to:
NHAI, Karnataka State, Tamil nadu state
3. Key Issue/background
1) Chennai
a. Peripheral Road (Chennai Peripheral Ring Road Section 2/3/4/5)
The completion of Peripheral Road will enable access to the Kamarajar Port (Ex.
Ennore Port) without passing through Chennai city, thereby realizing direct road
network connecting to major industrial parks such as Oragadam. Among others,
assurance of linkage of this road network with Northern Port Access Road (Chennai
12Peripheral Ring Road Section 1) which connects to the port is a prerequisite. As
the distance of Peripheral Road is pretty long, it is anticipated to take a plenty of
time to complete purchasing of lands. Therefore, it is important to divide the road
into sectors and prioritize construction work order for each sector. We hope the
development in the sector of Northern Port Access Road will be undertaken as a
top priority.
b. Northern Port Access Road (Chennai Peripheral Ring Road Section 1)
We strongly request the project will be proceeded in accordance with the following
timetable, which is presented to JICA:
i) Completion of land acquisition within FY2020
ii) Commencement of construction work within 1st quarter of FY2021
iii) Completion of construction work by 3rd quarter of FY2023
Among others, the early realization of linkage between Northern Port Access Road
and Outer Ring Road (about 12km bypass between Ennor Port – TPP Link Road to
Minjur of Outer Ring Road II) is critical and this bypass should be available earlier
than expected completion of entire Northern Port Access Road (3rd quarter of
FY2023).
c. Outer Ring Road: Phase II (Nemmillicheri - Minjur)
98% of the work has been completed. However, the construction work has been
stopped in the 500m stretch of Nallur – Paduyanallur Road near National Highway
16 due to the pending land litigations.
The state Government is trying to settle the case by New Land Acquisition Law.
According to the site observation by JCCIC in March 2020, there is a sign of
solution. We strongly request the opening of the stretch within this year.
2) Bengaluru
a. Peripheral Ring Road (PRR)
The challenge is land acquisition. As per the information given by Chief Secretary,
the GoK Cabinet had approved the revised Proposal (including the approval to
avail JICA loan) of PRR in Dec 2019 and after that the project proposal was
resubmitted to Central Government. Also, the revised Environment Impact
Assessment (EIA) study was conducted (from Feb. 2019 to Feb. 2020) as guided
by the Supreme Court. The project is forwarded to Ministry of Finance for further
13approval process and uploaded on its online portal. We would like to confirm the
status and implementation schedule of this project.
b. Satellite Town Ring Road (STRR)
STRR Project will address the issues of enhancing the road network connecting
several existing industrial areas where many Japanese companies are located.
Though the construction work between Dabaspet – Doddaballapur – Devanahalli
– Hoskote is partially commenced, but still behind the schedule. We would like to
confirm countermeasure and construction schedule of the Road.
We also would like to request GOI to commence land acquisition and construction
work in remaining part (Hoskote – Anekal – Ramanagara – Magadi – Dapaspet).
(STRR project is now being undertaken by NHAI, and the newly changed route is
diverted via Hosur in Tamil Nadu)
4. How this proposal benefits India
Early implementation of “Ring Roads” would enhance access to key ports, airports,
and industrial parks thereby accelerating accumulation of companies.
This road project would promote formulation of effective industrial clusters which
would increase business competitiveness in the CBIC area.
The linkage of Northern Port Access Road with Peripheral Road and Outer Ring
Road in Chennai will realize revolutionary improvement in connectivity between
Port Area (Kanarajar, Kattupalli) and Chennai Industrial Cluster, and what’s more,
Bengaluru.
5. Comparable global standards/best practices
N/A
6. Trajectory of discussions/government response
1) Chennai
a. Northern Port Access Road (Chennai Peripheral Ring Road Section 1):
According JICA information as of July 2020, the project plan is scheduled as
follows: i) completion of land acquisition within FY2020, ii) completion of
construction work within 3rd quarter of FY2023.
b. Outer Ring Road (Phase II):
14According to explanation from the state government as of Oct. 2019, the state
government is seeking early settlement of the case by compensation based on the
new land acquisition law. JCCIC conducted the field survey in March 2020 and
found a sign of solution in the alleged area.
2) Bengaluru
In the DMC meeting held on 29th June 2020 between Karnataka Government,
Consulate General of Japan in Bengaluru and JCCIB, the State Govt. gave the
below explanation :
a. Peripheral Ring Road (PRR):
Around 1810 acres of land needs to be acquired for PRR additionally and there are
few compensation dispute going on between Government and farmer. Around
5800Cr. Fund is earmarked for the land acquisition.
b. Satellite Town Ring Road:
Regarding the STRR there were no information were provided by the GoK Side as
NHAI representative was not available. But physically there is not much progress
compared to the last DMC meeting.
c. Others:
Covid Lockdown has also slowed down the implementation of Infra projects due
to scarcity of the workforce. However, Commissioner Industries had informed that
the status of all the major road infra projects listed in DMC Agenda, will be
provided to Japanese side separately.
15①Junction with SH57 and NH4
②Junction with SH57 and NH45
③SH57 around Oragadam area
④Padappai Road
16Suggestion No.1-4: Work on roadways around Chennai area
Company：TOYOTA KIRLOSKAR INDIA PVT LTD / JCCII Chennai and Bengaluru
1. Suggestion
Early completion of construction of SH 57 connecting NH4 and NH45
Request for early commencement of these roads construction which
stagnate due to delay in land acquisition.
Easing of traffic congestion on Padappai Road
2. Submission proposed to:
NHAI, Tamil Nadu State
3. Key Issue/background
1) SH57 connecting NH4 and NH45
SH57, which connects NH4 and NH45 is one of the most important roads
connecting major industrial parks including the Sriperumbudur, Oragadam and
Mahindra World City where automobile and major plants of other industries and
related suppliers are concentrated. Improvement of access roads is vital for
development of industry in these areas.
a. The project to widen SH57 to 4 lanes is under way but freight transportation is
still hindered since the construction in several locations have not started yet, so
we would like to request GoTN to immediately confirm the status quo and
complete widening of 4 lanes work.
b. As to connection between SH57 and NH4 and its vicinity, we have been
requesting continuously since 2011. As per the State Government information as
of 2019, the work was expected to be completed by Dec 2019 but the work is not
completed yet. We do hope it is completed at the earliest.
c. As to connection between SH57 and NH45 and its vicinity, we also have been
requesting continuously since 2011. As per the State Government information as
of 2019, the work was expected to be completed by May 2019 but the work is not
completed yet. We do hope it is completed at the earliest.
2) Padappi Road joining Chennai city to Oragadam
17The traffic congestion on the Padappai Road is a chronic issue, which is dversely
affecting the business activities of the Japanese companies operating around
Oragadam area and its vicinity. Padappai Road is an important bypass connecting
Oragadam area to outer ring road. Once the Outer Ring Road is fully opened, the
traffic congestion is expected to increase due to increase in number of vehicles.
We do request for countermeasure to solve this congestion issue.
4. How this proposal benefits India
Road development in Chennai city significantly contributes to improvement in
logistics, transportation of goods, services and people. It realizes not only huge
savings in time and cost of companies but also enhancement of business activities
in Chennai and TN.
Smooth and effective connectivity to Kamarajar / Chennai ports improves their
global competitiveness so that TN may expect increase on in-out flow of goods,
services, money and people via Kamarajar / Chennai ports.
5. Comparable global standards/best practices
N/A
6. Trajectory of discussions/government response
At the meeting between GoTN and JCCIC on 7th March 2019, GoTN reported
progress of road construction projects as follows;
SH57 & NH4 Crossing: The work is expected to be completed by Dec 2019
HS57 & NH45 connecting road: The work is expected to be completed by
May 2019. Meanwhile, it is expected that the tender for the connecting
bridge will be commenced, once General Elections are over.
SH57 around Oragadam Junction Area: Stopped due to pending land
litigation but is expected to be resolved by June 2019.
Despite the above explanation, the work is not completed as of Oct. 2019. The
issue is raised and reminded in the meeting held on 25th of Oct.,2019 between
DPIIT and JCCII (represented by Toyota kirloskar). According to the field survey
conducted by JCCIC July 2020, the works for above two connections are not
completed yet.
In the Oragadam area, all construction works in the Oragadam junction and its
byroads are completed in 2020. We would like to express our sincere thanks and
appreciation to GoTN and all relevant stakeholders for their supports.
18Suggestion No.1-5:Work on roadways around Bangalore area
Company：TOYOTA KIRLOSKAR INDIA PVT Ltd/JCCII Chennai and Bengaluru
1. Suggestion
Improve the connectivity in and around Bangalore. Early completion of
construction of the roads mentioned in column of KEY ISSUE/BACKGROUND
2. Submission proposed to:
NHAI, Karnakata State
3. Key Issue/background
We have requested improvement of the following roads since 2011. Though there
is progress partially, concrete construction schedule is not fully explained. We
would like to request for concrete construction schedule of these roads.
1) Improvement in connectivity between NH4 (Narsapur) and NH7 (Hosur) via
Malur (G-I in the map below)
2) Early completion of widening of NH-209 at the earliest (D-C ditto)
3) Considering the increase in newly established Japanese companies in couple
of years, in addition to the above mentioned route (G-I) the below routes also
need to be improved.
a. Hoskote - Malur (L-H)
b. Vemagal – Devanhalli (J-K)
c. Narasapura – Vemagal (G-J) (this has been proposed during the meeting
with Karnataka State Govt. & DMC in 2018)
4. How this proposal benefits India
Reducing the traffic congestion will improve the efficiency of the business activities
and cost competitiveness.
Improvement of the connectivity among NH4, NH7, NH207 and NH209 etc will
increase the efficiency of procurement of the components/raw materials for
manufacturing industries.
5. Comparable global standards/best practices
N/A
196. Trajectory of discussions/government response
At the 14th DMC meeting held on June 29th 2020 among GoK, Consulate General
of japan in Bangalore and JCCIB on 6 May 2019, GoK made a following additional
explanation:
Although the above roads G-I, L-H, J-K and G-J were planned to be completed by
June 2020, the construction work are delayed cue to the lockdown (not yet
completed as of Aug., 2020).
As to the above road D-C, the work is delayed due to the lockdown, and is now
expected to be completed by March 2021.
20Suggestion No.1-6:Upgrade of Kamarajar Port
Company：TOYOTA KIRLOSKAR INDIA PVT LTD, JCCII Chennai and Bengaluru
1. Suggestion
1) Construction of Additional Berth (Counter swelling measure)
2) Confirmation on continuous usage of temporary jetty for Over Dimension
Cargo barge shipment at Kamarajar port
2. Submission proposed to:
Tamil Nadu State, Kamarajar Port Autority
3. Key Issue/background
1) Construction of Additional Berth (Counter swelling measure )
Since Kamarajar port’s entry gate is open to South East direction, big swell often
occurs inside of the port especially during the south west monsoon season (March
to November) and there are concerns for damage to vessels and berth by
movement of large vessels which dock at General Cargo Berth. Even relatively
small movements can cause delay for cargo loading / unloading work because
vessels have to be docked out in order to prevent risk for collision. The permission
from NOC and Environment Dept. should be taken at the earliest, and we request
to commence construction of Additional Berth at the earliest.
2) Confirmation on continuous usage of temporary jetty for Over Dimension
Cargo barge shipment at Kamarajar port.
Under the current master plan, the area which is used for construction of
temporary jetty for barge land, is scheduled to be used for bulk terminal space.
In this case, there will be no more place for construction of temporary jetty for
barge land. Thus barge shipment of over dimension cargo (ex. Turbine for project)
from Kamarajar port will become impossible. According to explanation from Indian
side, it is difficult to change the masterplan, however Japan side can continue to
use the temporary jetty. Therefore we need an official confirmation on this.
214. How this proposal benefits India
Counter swelling measures can prevent delays in cargo loading / unloading and
damage to vessels. This improvement contributes to improve value of the port,
so that it will increase trade amount in the port.
Confirmation of continuous usage of temporary jetty for over dimension cargo
barge shipment at Kamarajar port. The amended plan will enable Kamarajar port
to continue Over Dimension Cargo barge shipment so that it will maintain
necessary business environment which is vital for foreign and Indian companies
handling over dimension cargo and operating in this area. It will further attract
additional foreign investments from those companies that handle similar Over
Dimension Cargo.
5. Comparable global standards/best practices
N/A
6. Trajectory of discussions/government response
At the meeting held on 16th Oct., 2019 between DIPP and JCCII, the
communication are as follows:
Countermeasure for swelling
Kamarajar Port Authority
We are installing 14 fenders and not additional berth to tackle the problem.
The swelling issue is not being solved by the fenders and additional counter
measures are needed.
(Photos which show damaged vessels and alongside of the port by the swelling
were submitted.)
Amendment of Masterplan
(a verbal explanation) Indian side will not be amending the master plan but
continuous usage of temporary jetty is possible.
If the usage of a temporary jetty is allowed, we would like to have a formal
confirmation in this regard from GoTN & Kamarajar port authority.
22The above 1) and 2) are again raised and reminded in the meeting held on 25th
of Oct., 2019 between DPIIT and JCCII (represented by Toyota Kirloskar Motor).
23Segment 2 TAX System
Suggestion No.2-1:Consumption stimulus measures/Unilateral import
tariff changes
Company：NGK SPARK PLUGS (INDIA) PVT. LTD.
1. Subject of proposed submission:
1) Implementation of consumption stimulus measures
We strongly urge implementation of urgent consumption stimulus measures
by reducing the automobile excise tax (28%)
2) Improving the method of unilateral import tariff changes
We would request a long-term policy and a grace period to prepare for the
changes before they take effect.
We would the government to initiate dialogue with business organizations.
2. Submission proposed to:
Ministry of Finance
3. Key Issue/background
1) Implementation of consumption stimulus measures
In accordance with the government's "Make in India" policy, so far our company
has accelerated local production and made significant investments in products to
meet the new BS6 regulations. However due to the stagnation of the market and
economy, the growth of our customers (automotive) has fallen sharply since
November 2018, which has had a significant impact on our company. The
government's proposed budget does not provide any support or consumption
stimulus to the existing automotive industry, and there is no indication that the
growth rate will recover. In addition, the coronavirus is sure to cause a year-on-
year decline in growth in 2021.
2) Improving the method of unilateral import tariff changes
So far every year there has been a series of tariff hikes in the automotive industry,
and in the 2018 budget, the tariffs on our imported auto parts and components
have been increased (from 7. 5% to 15. 0%), which has affected our business
plan as we have not been able to make the planned profits. The sudden
announcement of the tariffs every year and the fact that the specific figures are
24not known until after the tariffs are actually enacted have become a big problem
for the business.
4. How this proposal benefits India
1) Implementation of consumption stimulus measures
The recovery of the automobile industry, one of India's key industries, will improve
the livelihood of the people engaged in this industry and contribute to the country's
sustainable development in the medium to long term.
2) Improving the method of unilateral import tariff changes
Since the hon'ble government seeks to promote Make in India, it is all the more
counterproductive for foreign companies to have to be or become cautious about
investing in India, or even to have to withdraw from India. Acknowledging the
enduring good relationship between government and business will go a long way
in making the decision to invest in India easier for corporations.
5. Comparison with global standards
1) Implementation of consumption stimulus measures
To improve the balance of trade by strengthening the growth industries in one's
own country and making them grow not only for domestic demand but also for
subsequent export industries.
2) Improving the method of unilateral import tariff changes
It is easier to plan and promote investment in countries that have long-term
implementation plans based on FTAs and EPAs.
6. Historical trajectory of negotiations
N/A
25Suggestion No.2-2:Reduction of corporate tax rate for foreign branches
Company: JCCII Finance WG
1. Subject of proposed submission
In India, the effective tax rate for domestic corporations is normally 26-35%,
while that for branches of foreign corporations is around 41-44%.
We request that the tax rate for branches of foreign corporations should be
reduced to the same level as that for domestic corporations.
2. Submission proposed to:
Ministry of Finance
3. Key Issue/background
A large number of Japanese companies are currently operating in India as local
subsidiaries, but banks, due to regulatory issues such as PSLs, are often operating
in India as branches rather than as local entities.
The corporate tax rate of 41-44% is remarkably high compared even to other
countries, and is an obstacle for banks to expand business in India.
They are thus not on an equal footing in competing with local banks in India.
4. How this proposal benefits India
The financial health of foreign banks in India will be enhanced by the increase in
profits and retained earnings of banks.
A reduction in the corporate tax rate will provide an incentive for foreign banks to
expand business in India and will contribute to the expansion of the Indian
economy by strengthening financial functions.
5. Comparable global standards/best practices
In Japanese law there is no difference in the corporate tax rate for a branch office
of a foreign corporation and a local corporation of Japan.
6. Trajectory of discussions/government response
N/A
26Suggestion No.2-3:Tariff on TV Open Cells etc…
Company: Sony India Pvt. Ltd.
1. Subject of proposed submission
1) To continue with the 0% Basic Custom Duty(BCD) policy on TV Open Cell (is
slated to become 5% when current policy expires on September 30, 2020)
2) Duty exemption for LCM (Liquid Crystal Module) and SMT (Surface-mount
technology) (LCM parts 15%, SMT parts 10%)
3) Reduction of tariffs on OLED panels (currently 15%)
2. Submission proposed to:
DPIIT
3. Key Issue/background
On December 15, 2017 and February 1, 2018, import duty on television
components was increased. Following this development, we had presented the
Government of India, in cooperation with the Embassy of India and JCCI, to reduce
or eliminate BCD on locally manufactured components, and the BCD on Open Cell
was reduced to 0% from October 1, 2019 to September 30, 2020. However, as
this appears to be an ad-hoc measure and duration of the measure specified, there
is an apprehension that duty would be re-imposed.
In addition, some parts of LCM (Liquid Crystal Module) and SMT (Surface-mount
technology) are subject to further duty increase (LCM parts 10% to 15%, SMT
parts 0% to 10%). In addition, the BCD on OLED, the latest technology, has
been increased to 15%, which makes for a major gap difference between the BCD
on OLED and the existing Open Cell technology –this will have the effect of
negating the benefits of local production in India.
The effect would directly translate to pushing up the cost of parts procurement for
companies like us who are producing TVs in India, and eliminate the price
competitiveness vis-à-vis imported TVs. We shall not be able to derive the
advantage of local production and benefit the end customers. This is in our
considered view, not serve the Indian government's policy of "Make in India" and
would be a disincentive; we would therefore, strongly urge the government to
review the import tariffs on electronic components to encourage and promote
manufacturers in India.
274. How this proposal benefits India
If India becomes a major production base for TVs, it will boost investment (capex)
and employment.
If India becomes a major TV production base, we could seriously consider
exporting TV products from India to the Middle East and Africa. For this we need
stability and certainty of government policy not in the short term but in the
medium and long term to lend assurance to investors.
5. Comparable global standards/best practices
N/A
6. Trajectory of discussions/government response
When we had a meeting with the MoF in June 2019 the government's position
was: "Isn't the impact insignificant since the tariff on Open Cell, which accounts
for 70% of the TV components, is 5%, which is less than 1% in terms of retail
price?”
To this, we would reiterate that while Open Cell is taxed at 5%, other parts are
taxed at 7.5% to 15%. However, finished TV can be imported at 0% by applying
the ASEAN-India prescribed rate. In a fiercely competitive TV market, these
tariffs have significant impact on the price of products, which is detrimental to the
companies that have invested and are promoting "Make in India" and strive to
manufacture locally.
28Segment 3 Government Response
Suggestion No.3-1:Clarification of e-commerce site management
standards for foreign companies
Company: Sony India Pvt. Ltd.
1. Subject of proposed submission
Clarification of e-commerce site management standards for foreign companies
We request the government to clearly indicate the required percentage of local
production ratio and the concept of local production ratio that needs to be met in
order to operate an e-commerce business (whether it indicated the %age of local
production for the company as a whole should be met, or whether it is necessary
to meet the %age for each product category).
2. Submission proposed to:
DPIIT (Department for Promotion of Industry and Internal Trade)
3. Key Issue/background
Although Sony India is expanding its local production in India and believes that it
meets the criteria for selling products through e-commerce platform. It does not
however undertake B2C at this time. However, it does not produce all of its
products in India, and is unclear whether product categories which are not
produced locally or where it has a low percentage of local production are also
eligible to be directly marketed in B2C model on a company owned e-commerce
platform. Due to this lack of clarity we are unable to launch a Sony India-owned
B2C site because we cannot determine whether we meet the criteria or whether
we need to meet the standards for each individual product category.
4. How this proposal benefits India
1) Will help eliminate the middleman margins, we will be able to pass on this
value to the end customer, and contribute to the expansion of consumption
2) Will greatly aid expansion of e-commerce in India. (= expansion of local
production)
3) Will offer convenience of speed and choice to end customer (simple website
improvements, contents updates, etc. , that can be quickly implemented in-
house)
294) Will help facilitate customer convenience through the offer of products which
compliments and provides useful and value added choice to end customer
through e-commerce (e. g. , TVs and home theaters)
5. Comparable global standards/best practices
In most countries when a company builds/operates an e-commerce site, it is a
normal business practice to be able to decide whether to control it directly or
indirectly, depending on the objectives/requirements and strategies of the
company.
6. Trajectory of discussions/government response
Meetings were held with DPIIT in November 2019 and we have yet to receive a
definitive response to our representation.
Communication through CEAMA and other industry groups continues to be
ongoing.
30Suggestion No.3-2:Simplification of the exemption application for repeat
use materials
Company: JCCII Steel Subcommittee (Japanese companies operating in the steel
space in India)
1. Subject of proposed submission
Simplification of the exemption application for repeat materials
1) Simplification or elimination of the procedures for applying for exemptions or
approvals of mandatory Indian standards for steel products.
2) When importing products not covered by the standard, we have to apply for
exemption/certification every time at every import customs clearance.
3) Please simplify or omit the each-time application/certification procedures for
products that have been cleared for exemption once.
2. Submission proposed to:
Ministry of Steel, Government of India
3. Key Issue/background
Many steel products currently being exported from Japan to India are difficult to
obtain in India, and most of them are imported by consumers as part of their
purchasing policies to diversify procurement risks.
Importers have to go through the application/certification procedures every time
they import, even where a product that has been approved as exempt in the past,
which imposes a burden on them in terms of time and labor.
In addition, due to this unstable application/certification timeframe, it becomes
necessary to maintain safety stocks at the site, which imposes a cost burden on
distributors and consumers.
4. How this proposal benefits India
In the past dialogues with the Ministry of Steel, we have sought to expedite the
approval process, but the response has been that there are too many cases so
this has been difficult to address.
We believe that addressing this issue will also speedily reduce the burden of the
approval process for the Indian authorities (the standing committee of the Ministry
of Steel).
31A smooth product import environment will naturally promote local production in
India.
5. Comparable global standards/best practices
1) Malaysia
There is an exemption system by usage category. There are operational
guidelines from the import control authority (Ministry of Trade).
Approval is valid for one year.
2) Indonesia
Application is made to the standards authority (Ministry of Industry) to confirm
that the products to be shipped do not conform to the contents of the mandatory
standards document.
The Ministry of Industry assesses the application and issues an import quota (valid
for one year).
6. Trajectory of discussions/government response
Once every six months, the Ministry of Steel and the Japanese parties (Metals
Division, METI, Japan Iron and Steel Federation, JCCII/Sectional Committee
member companies) have an opportunity to have a dialogue with Indian
authorities. This and other procedures were similarly requested carried in the
last meeting held on January 30, 2020.
(Since then an opportunity for dialogue was not established due to the effects of
the pandemic).
32Suggestion No.3-3:Flexible implementation timeline for mandatory
standards amidst the pandemic environment
Company: JCCII Steel Subcommittee (Japanese companies operating in the steel
space in India)
1. Subject of proposed submission
Flexible implementation of mandatory standards in the new corona environment.
The Government of India requires steel products imported into the country to be
covered by the Indian mandatory standards.
The number of products subject to this requirement is expanding, and exporters
are required to be certified to this standard at the time of deployment and at the
time of renewal.
In particular, for the new certification a local (Japan-based) audit by an inspector
of the Indian authorities is required.
Under the current corona environment, the planned dispatch of inspectors to
Japan has been cancelled, and no new applications have been accepted.
Meanwhile, the date of enforcement of the standard has been specified, and as of
now, the application procedure has not been completed. Thus import of the
relevant products will not be allowed.
We request that the start of application of the Indian mandatory standards be put
on hold until the effects of the pandemic are resolved and normalcy returns i. e.
such as when the Indian authorities can once again dispatch inspectors to Japan.
Specific examples of cases where the procedures are not proceeding because of
no-audit situation
IS standard IS9550 2001 (effective July 23, 2020)
IS standard IS5517 1993 (effective July 23, 2020)
IS standard IS4398 1994 (to be enforced on November 15, 2020)
IS standard IS1993 2018 (to be enforced on January 13, 2021, six months after
the announcement in the Official Gazette)
IS standard IS12591 2018 (to be enforced on January 13, 2021, six months after
the announcement in the Official Gazette)
There is a move to make new ISs mandatory in the future, and we would like to
see a reasonable enforcement date set for these as well.
332. Submission proposed to:
Ministry of Steel, Government of India
3. Key Issue/background
The majority of steel products currently exported to India are difficult to procure
within India and are imported by consumers as part of their purchasing policies
to diversify procurement risks.
In the event that these products cannot be imported, the production and activities
of Indian manufacturers and other consumers will be greatly affected.
4. How this proposal benefits India
By providing a stable ecosystem to procure products that are difficult to replace
with domestic products, we will be able to avoid disruptions to consumer
production and activities
5. Comparable global standards/best practices
1) Malaysia
The authorities have informed us that they will conduct a web-based audit in place
of the on-site audit. The content of the audit is currently being coordinated with
the authorities (expected to be conducted in September).
2) Indonesia
The authorities presented their intention to conduct a web-based audit. Specific
details will be coordinated in the near future.
6. Trajectory of discussions/government response
We as a company have already submitted a letter to the Bureau of Indian
Standards (BIS) requesting certification without an audit. We also submitted a
letter to the Ministry of Steel requesting the postponement of the enforcement of
the compulsory standards until an audit scenario is ready. We also contacted Ms.
Mona Khandhar IAS , Minister (Economic & Commerce), Embassy of India, Tokyo,
who commented that she would convey the information to the home country office.
34Suggestion No.3-4: GST exemption on medicines
Company: Eisai Corporation
1. Subject of proposed submission
We request GST exemption on medicines provided free of charge for humanitarian
purposes through the United Nations Organization (WHO) (currently a refundable
mechanism post-payment)
2. Submission proposed to:
GoI (MoF, MoHFW, MIC)
WHO Southeast Asia regional office, India desk
3. Key Issue/background
Eisai's Indian subsidiary (Eisai Pharmaceuticals India Pvt. Ltd (EIL) )has been
providing free of charge DEC (diethylcarbamazine) tablets for the treatment of
lymphatic filariasis to India through the United Nations Organization (WHO) for
humanitarian purposes. EIL is located in a Special Economic Zone (SEZ) in Andhra
Pradesh. Since the start of the provision of the tablets they were exempted from
taxation due to the free provision for humanitarian purposes. However, with the
introduction of GST in 2017, the system changed so GST has to be paid once and
then refunded. The Government of India has therefore demanded that WHO
India, the supplier of DEC tablets to India, pay GST (approximately Rs. 50
million) from the introduction of GST up to August 2019 shipments. Since WHO
India does not have the capacity to pay the said tax, EIL paid it on its behalf in
October 2019 in accordance with the direction from the SEZ customs office. The
refund of this said amount is still pending although it should have been refunded.
To begin with assistance such as this should be GST-exempted given its
humanitarian and free-provision nature under the United Nations Organization
(WHO). The logic that this is a temporary payment that will be refunded in due
course does not stand ground given the prohibitively high tax amount and the
burden it places on the company. The issues to be address are 1. exemption
of the GST for future DEC supply to India, 2. refund of the tax paid.
Please also note that the Government of India through the MoHFW has requested
an additional 150 million new DEC (diethylcarbamazine) tablets through WHO
35headquarters as part of the drive for domestic control of lymphatic filariasis in
India by 2020. However since the problem of refunds has not been resolved the
shipment cannot be made as we await a resolution.
4. How this proposal benefits India
GST tax exemption will enable EIL to provide the drug needed for lymphatic
filariasis control activities in India. The supply of around 200 million tablets a
year is requested and if available in the market, it will save hundreds of millions
in cost burden. This amount will be used for the actual control program in rural
areas, which will ensure the control of the disease and increase the probability of
achieving the planned control date of 2025.
5. Comparable global standards/best practices
WHO headquarters in Switzerland has issued a document requesting tax
exemptions for drugs provided free of charge to the countries that accept them,
and these exemptions are usually granted. However, some countries refuse to
accept the drugs for reasons such as industry protection, and in such cases
negotiations are conducted case by case.
6. Trajectory of discussions/government response
In July, a letter from the head of the WHO South East Asia Regional Office for
India was sent to the Government of India requesting a resolution to this issue.
No specific response yet.
36Suggestion No.3-5:Clarification and proper documentation of India's
post-marketing commitments
Company: Eisai Corporation
1. Subject of proposed submission
Clarification and proper documentation of India's post-marketing commitments
2. Submission proposed to:
Government of India
Ministry of Health & Family Welfare
Directorate General of Health Services
Central Drugs Standard control Organization (CDSCO)
Dr.V.G.Somani, Drugs Controller General of India
3. Key Issue/background
In India, data collection methods and procedures for post-marketing safety
measures are not yet clear in some parts, which poses a problem in terms of
predictability of development.
When a new drug that is widely used overseas is approved, a post-marketing
surveillance or a Ph4 clinical study is sometimes required as a condition for
approval, but there are no clear criteria to determine which of these two is
required.
In addition, although the PSUR is stipulated to be 4 years in principle and is
supposed to be accompanied by summaries of the investigations/clinical studies,
the final report of the investigations/clinical studies is expected to take more
than 4 years to complete considering the implementation period, analysis and
preparation period, and there is no procedure for submission of the final results
report to the regulatory authorities and for confirmation, etc.
Drug costs for conducting ph4 clinical trials are borne by the company.
4. How this proposal benefits India
Clarification of post-marketing procedures so that data can be collected
appropriately will promote the proper use of medicines.
Adequate development cost sharing leads to appropriate pricing, which
contributes to an affordable price point for patients and improves overall access
to medicines.
375. Comparable global standards/best practices
In Japan and Korea, post-marketing surveillance and self-reporting are used and
there are very few cases in which Ph4 clinical trials are mandated. In Europe,
and the US, USA, and other countries, post-marketing surveillance is often
limited to periodic safety reports by companies. Japan and Korea have a well-
defined re-examination system and a clear defined review process.
Local manufacturing in other countries
6. Trajectory of discussions/government response
Indian authorities’ stand is that there should be a focus on their own data and
are concerned about racial differences. However there has been no consistent
view on the issue.
The post-marketing survey does not clearly state that the companies will not
bear the cost of using commercially available products.
38Suggestion No.3-6: Implementation of Proper plastic regulations
Company: Canon India Pvt.Ltd.
1. Subject of proposed submission
1) Plastic materials used in the manufacturing / packaging of Electrical and
Electronic Equipment (EEE) are the integral part of products as they protect
the electronic products in global supply chain logistics. Hence the plastic used
in the manufacturing / packaging of EEE should be exempted under the said
rules as per the exemption provided under conditions clause 4 (d) under the
rules.
2) Plastic Rules are seen to be more aligned towards FMCG sector & local plastic
manufacturer. Need to relook the requirements which are practically
impossible for the EEE/ IT industry to implement. GOI should issue the
clarification that the plastic used in the manufacturing / packaging of Electrical
and Electronic Equipment (EEE) are exempted under the said rules.
3) Thickness of plastic sheet / packaging to 50 microns or above is not
harmonized with global business environment as well as this may lead to
increased plastic consumption which is not good for environment.
4) Uniform EPR framework: For harmonies enforcement of Plastics Waste
Management rule in the country in consultation with the industry
5) State Rules are not harmonized with Central PWM rules which makes it further
difficult for the industry to smoothly do their business in India. Proposing for
One Country –One Rule for Ease of Doing Business in India.
2. Submission proposed to:
Government: Central Government.
Reference Ministry: Ministry of Environment Forest & Climate Change.
Person In-charge: Secretary, Mr. Rameshwar Prasad Gupta.
Joint Secretary, Ms. Geeta Menon.
393. Key Issue/background
1) Thickness of plastic: Increasing the thickness of plastic sheet/ packaging to 50
microns or above is not harmonized with global business environment. Globally,
the efforts are to reduce weight/amount of packaging in all other countries.
2) Marking & Labeling: Multi layered packaging (MLP) should be printed with
name, registration no of the manufacturer which is unique & India specific. It
will be impossible to get local plastic manufacturers get aligned with the global
EEE/ICT manufacturers or the global packaging manufacturers get registered
here in India. Hence marking & labeling is not possible.
3) Lack of clarity on regulation: Rules are more aligned towards plastic
manufacturers/ local plastic packaging / FMCG industry. Plastic Packaging of
EEE/ ICT industry is an integral part of global supply chain to ensure safety &
functionality of the product.
4) Central Rules vs State Rules on PWM implementation: State Rules are not
harmonized with Central Rules, creating further implementation challenges for
the industry.
4. How this proposal benefits India
1) Harmonizing the requirements with the Global scenario and State law
harmonization with Central Law will ensure Ease of doing business in India.
2) Unique compliance requirement restricts many global companies to expand
their business operations or to consider a fresh investment in India and with
removal of such bottlenecks it may bring fresh investment in India.
5. Comparable global standards/best practices
In EU, Carry bags less than 50 microns is controlled by Directive 94/62/EC
packaging and packaging waste. However scope is limited only to carry bags, not
including plastic used for electrical/ electronic products or its parts.
6. Trajectory of discussions/government response
Response is awaited from MOEFCC against many letters/ representation sent.
However, recently MOEFCC has issued a Uniform Framework for Extended
Producers Responsibility in which industry have some observations & sought
clarification.
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