MAHARASHTRA ECONOMIC
DEVELOPMENT COUNCIL

High-Level Business Conference on





9th - 10th April 2005,
Hotel Vrishali Executive, Kolhapur

in Association with :

Jagatik Marathi Chamber of Commerce & Industries         Ichalkaranji Power Loom Association
Kolhapur Engineering Association                                           Indian Institute of Foundry Man (Kolhapur Chapter)
Shiroli Manufacturers Association                                           Kolhapur Hotel Malak Sangh
Gokul Shirgaon Manufacturers Association                           Association of 100% Export Oriented Spinning Units

With Active support from:
Mr. Digvijay Khanvilkar, (Former) Health Minister, Govt. of Maharashtra
Mr. R.S. Zanvar, Chairman Shriram Foundry Ltd.
Mr. Kiran Patil, M.D. Ghatge Patil Industries Ltd

With Best Compliments from our Esteemed Sponsors:

MAHARASHTRA STATE AIDS CONTROL SOCIETY, MUMBAI	THE UNITED WESTERN BANK	MILLENNIUM MOTORSDEALERS FOR MERCEDES-BENZ
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)	NATIONAL BANK FOR AGRICULTURE & RURAL DEVELOPMENT (NABARD)	INDAGE GROUP OF COMPANIES

SUMMARY PROCEEDINGS OF THE CONFERENCE

 INAUGURATION BY IN THE PRESENCE OF
Shrimant Shahu Maharaj
Hon’ble Shri Jayantrao Patil - Minister of Finance, Maharashtra
Shri R.M. Premkumar – Chief Secretary, GoM
Shri Suresh Prabhu – M.P.
                                    

                                                                                                     
                                                                           
Guest of Honour:

Preface and Acknowledgements

We at the “Maharashtra Economic Development Council [MEDC]” are thankful to “All you Kolhapurkar” for your kind presence at a very important conference on “Kolhapur Goes Global” held at Kolhapur on 9th – 10th April, 2005. We feel you must have benefited from this seminar. We are working on implementing the action plan to bring the full benefit of this high valued conference for you.

As an integral part of MEDC’s regional development thrust, we have been promoting three Divisions of Maharashtra on their intrinsic strengths and future potential. As a part of this thrust, MEDC has taken Kolhapur Region on its Agenda. You will be happy to know that Kolhapur Region is blessed with rich agricultural-base, High profile University, HRD based for Engineering Industries, such as Foundry, Forging, Auto-components, etc. Kolhapur region has a tremendous potential to mature as a ‘Potential Global Hub for Agriculture & Engineering Industry’, provided a comprehensive plan is prepared and implemented with the active cooperation and support of the Govt. of Maharashtra. This seminar was an effort in the direction of bringing Kolhapur – a potential region, on the industrial map of the world. To continue further, we will be working on areas like smooth implementation of VAT, facilitating growth in exports, development of industry based clusters, and augmentation of power generation. In this connection we will have bi-monthly meetings at Kolhapur to review our actions. We would welcome pro-active and constructive participation from the business houses of Kolhapur in this initiative.

This conference was, truly, an international conference and was attended, by the eminent people like Shri Jayantrao Patil, Minister of Finance, Govt. of Maharashtra, Shri Suresh Prabhu, Member of Parliament, Shri Shau Ji Maharaj, and eminent persons from UNIDO, Consul Generals and Trade Commissioners from Belgium, Chezk Republic, Poland, Mauritius, Newzeland, and many prominent industrialists Besides, about 200 delegates comprising of farmers, entrepreneurs, businessmen, industrialists and Govt. Officials, from Pune, Kolhapur, Satara, Sangli and neighboring area of Kolhapur Region, also attended this Seminar.

We, at the MEDC have created a special cell for providing assistance to the members of MEDC for their business requirements. We are equipped to provide our support to you for your business expansion and for your day-to-day business needs. Our services are available in the areas of finance, marketing, export marketing, and Government liaison. As desired by most of you, we are enclosing our membership form. Please contact the undersigned for any support you need for your business activities.

We are extremely grateful to “NABARD, SIDBI, ICICI, UNITED WESTERN BANK, MILLENNIUM MOTORS, INDAGE GROUP & MAHARASHTRA STATE AIDS CONTROL SOCIETY, MUMBAI, for their generous financial support to this Conference. Mr. Digvijay Khanvilkar, Mr. Ram Pratap Zawar, Mr. Kiran Patil, Mr. Vinay Thakur took active interest in all the phases to this Conference, and we thank them for their guidance, comments and keen interest in the Conference.

The publication of the proceedings of the Conference would not have been possible, without the generous support from NABARD & SIDBI. We gratefully acknowledge their financial assistance in this timely summary proceeding of the Conference.


M.N. CHAINI
President, MEDC

Summary Proceedings of High Level Business Conference on “Kolhapur Goes Global”

9th April 2005
INAUGURAL SESSION
9th April 2005, Hotel Vrishali Executive, Kolhapur at 9.30 am

MEDC in association with Kolhapur Engineering Association, Shiroli Manufacturers Association, Gokul Shirgaon Manufacturers Association, Ichalkaranji Power Loom Association, Chandi Mal Utpadak Sah. Sangh Ltd, Hupari, Indian Institute of Foundry Manufacturing (Kolhapur Chapter), Kolhapur Hotel Malak Sangh and Association of 100% Export Oriented Spinning Units, organised an High Level Business Conference on “Kolhapur Goes Global” at Hotel Vrishali Executive, Tarabai Park, Kolhapur on 9th & 10th of April 2005.

Hon’ble Shri Jayantrao Patil, Minister for Finance of Maharashtra, Hon’ble Shri Suresh Prabhu, MP graced the occasion.

Eminent personalities from UNIDO, Consul General of Belgium Mr. Herman Marckx, Counsel General of Czech Republic, Mrs Irena Krasnicka, Counsel General of Netherlands, Mr. Pradip Mhadhavji and Counsel Generals of Mauritious Mr. T.K. Chamane and Mr. Mahesh Rathod were present for the conference.

Government officials from Maharashtra like Mr. R.M. Premkumar, IAS, Chief Secretary, Govt of Maharashtra, Ms. Sharwari Gokhale, IAS, Development Commissioner (Inds), Mr. P.D. Karandikar, IAS, Divisional Commissioner, Pune, Mr. G.S. Gill, Principal Secretary, Medical Education, Mr. Sudhir Kumar, Airport Director, Mr. Bhushan Gagrani, IAS, MD, MTDC, Mr. D.K. Jain, IAS, National Programme Director, UNIDO, Mr. S.K. Saraf, Chairman, Federation of Indian Exports Organisation, addressed the Conference.

Renowned personalities from Business & Industry like Mr. Shamrao Chougule, Chairman, Indage Group of Cos., Mr. Deepak Ghaisas, CEO, i-flex solutions, Mr. Kiran Patil, Jt. M.D. Ghatge Patil Industries, Mr. Atul Sethi, Vice-President, (Mfr), L & T John Deere, Mr. M.A. Patil, Sr. Dy. Director, NPC, explored new business opportunities in Kolhapur region.

Experts from eminent banks like United Western Bank, NABARD, SIDBI, EXIM Bank, ICICI Bank and Bank of India, discussed some financing options for the business community.

Mr. Digvijay Khanvilkar, Former – Minister of Health, Maharashtra in his welcome address emphasised the development of sectors like Agriculture, Horticulture and Floriculture those are gaining ground in Kolhapur region. He also made the mention for a special zone for Joggery in Kolhapur region. To make Kolhapur a global manufacturing center, special attention is required for Foundry Industry by giving a clearance to Kagal Industrial Estate Region in Kolhapur from the Government of Maharashtra. According to Mr. Khanvilkar there is the need to utilize the 7.32 hectares of available land for airport development.

Mr. M. N. Chaini, President, Maharashtra Economic Development Council in his theme presentation explained some of the positive facts of Kolhapur region like one of the highest per-capita income regions and the best of the heritage structures available but also questioned Weather Kolhapur is in a position to exploit these assets. With the Indian Economy one of the fastest growing economies in the World and on the runway of an economic super power with lot of opportunities in agriculture, manufacturing and service sectors, it is high time the people of Kolhapur think different and work in aggression and determination. Explaining the positives of Kolhapur region Mr. Chaini added Kolhapur is equipped with skilled manpower and better educational and medical facilities. Kolhapur is also endowed with reasonable infrastructure facilities like road connectivity, airport facility and availability of efficient ports in Konkan region that can really take Kolhapur on the global map. According to Mr. Chaini the current problem of non-availability of power can be rectified if the entrepreneurs come together and invest in power plants that can provide sustained power for industrial purposes. The review of the Electricity Act has made possible captive power generation. Finally to make Kolhapur really global and a dominant economy there is a need for an action plan or an agenda that can really be put into practice.
Shahu Maharaj of Kolhapur in his inaugural address expressed the need to think out of the box to be ready for the future. Going Global does not mean only exporting and importing but free movement of human resources and easy availability of visas are the pre-requisites for it.

Mr. Prem Kumar, Chief Secretary, Govt of Maharashtra in his inaugural address explained the change in the role of the govt from active participation in business in 1980’s to an enabler or facilitator in 1990’s. According to Mr. Prem Kumar, there is a need for VISION with an action plan to make Maharashtra/Kolhapur global. Since the district of Kolhapur is equipped with literate human population with good network of education institutions it can become an industrial hub after Aurangabad and Nashik. The importance of quality consciousness and change in the mindsets cannot be under estimated for going global. Apart from information technology and software there is a need for other skill-oriented education and vocational training to be developed. Development of SEZ’s is very important for growth. The current problems of infrastructure like non-availability of power, bigger size aircrafts need to be solved.

Mr. Herman Mercks, Counsel Gen. of Belgium emphasized for infrastructure development for going global. He introduced the Port of Antwerp and added that this port caters to the needs of France, Germany, Switzerland and Italy. Antwerp is 5th biggest port in Europe and has the largest warehousing capacity. According to Mr. Mercks management of ports and cargo is becoming an important activity as the seaborn trade increases. He also gave information about Belgium saying it is an important region for economic activity. Belgium is also an important center for information about European markets.

Mr. Suresh Prabhu, Member of Parliament, Govt of India, expressed the need for a VISION for Kolhapur to go global. Giving examples of Globalisation of India and China, Mr. Prabhu added China started its reforms in 1978 while India started in 1991 giving tremendous opportunities for China to explore global markets. Mr. Prabhu urged the business community of Kolhapur to go Global without complaining about the problems. Problems are there to be overcomed. Earlier the cost of capital was very high in India but reforms and globalisation has given us alternatives like External Commercial Borrowings (ECB). The problem of Power can be solved through different Generation, Distribution units possible through the Electricity Act. Electricity can also be generated through Solid Waste. Problem of ports can be solved by generating more berthing capacities. Development of quality ports in Konkan will help exports from Kolhapur possible through sea route. Industries like Chemicals, Automobiles, Pharmaceuticals are deregulated and can take advantage of globalisation.

In the views of Mr. Jayant Patil, Finance Minister, Govt of Maharashtra, Maharashtra has done lot of thinking on going global. Doing so we have won half the battle. Maharashtra has the special ability as a major investment destination and possess an important geographical location. Maharashtra possess quality infrastructure like Mumbai Port and International Airport that caters to half of the country’s cargo and passenger traffic. There are many ports developing in Maharashtra and Goa resulting into competition and efficiency for cargo handling. Maharashtra’s debt over Gross State Domestic Product (GSDP) is the lowest 25% while that of Bihar is 75%, Rajasthan and Gujarat is 70% to 42% and Andhra Pradesh is 32%. The introduction of Value Added Tax (VAT) is going to change the taxation scenario in the State. State Fiscal Responsibility Bill is also to be passed shortly. The centre has promised Rs 50 crore every year for tourism development and state has decided to develop Konkan and coastal regions as major tourist destinations. The state government also plans for Kolhapur district going global. According to the Finance Minister there is a need for improvement in systems and internal liberalization and reform for Kolhapur district to go global.

Mr. Satish Marathe, Chairman United Western Bank, was very concerned about the developments in Banking Industry. According to Mr. Marathe, Technology is very crucial for banking business. There is a need for reduction in cost of transaction and up gradation of skills for improving the delivery systems in banks. Transparency and Best Practice Code is to be followed for efficiency. There is a need for a change in appraisal and sanctioning norms for loans in the Banks. Some of the major concerns like interest rates are to be tackled by controlling fiscal deficit and curbing inflation. Banks in the next few years are going to come out with exotic and tailor made products. United Western Bank will develop its forex center and agriculture bank in Kolhapur.

CD Presentation by MEDC on Kolhapur about its Regional Characteristics and Strengths for Making it a Global City.

Excerpts from the Presentation / Speeches at the Session:

Ms. Irena Krasnicka, Counsel General of Czech Republic

Co-operation in the following sectors:

• Automotive Industries big hub in Europe. Co-operational from India, Kolhapur can be beneficial.
• Small hydro and coal power plants generation.
• Modernization of Indian railways.
• Equipment and textile machinery.
• Information Technology and Education

Ms Sharwari Gokhale, Dev. Commissioner Industries, GoM
• Importance of clusters can be justified, as SME’s cannot provide quantity required by major companies. So cluster approach is necessary.
• Infrastructure problems like, power, connectivity, technology needs attention. Infrastructure development scheme for cluster development. There is a need for finding out the right ports to be developed.
• There is a need for change in the Govt’s policy on Taxation.
• Policies are to be altered for development of Clusters
• Foundry/Engineering and Textiles can become efficient clusters
• There is a requirement of the change in the mindset of the people for cluster development.

Mr. Shantanu Datta, Editor, Indian Express, Pune

» Development of Clusters require:

• Support from media
• Mindset to celebrate the success
• Thinking Big
• Understanding the Need
• Collaborative Effort
• Teamwork

Mr. K.L. Sharma, Jt. D.G. of Foreign Trade, GoI

The current EXIM policy by Ministry of Commerce is as follows:

• Target set to raise Indian exports from 0.5% to 1.5%. In dollar terms it is from 80 bn $ to 150 bn $ in 2009.
• Sectoral initiatives Poultry/Dairy/Handloom
• Reduction in import duty on capital goods for agriculture exports.
• Export cess on agriculture abolished
• Service sector exports entitled for 10% duty free.
• 5% duty reduction on hotels earning foreign exchange
• 10% duty free on Hospitals, Education Institutions earning foreign exchange.
• Introduction of single document for any type of licence for exports
• An Export facilitation committee - Institution to solve problems of exporters.

Dr. V. Rangaraj, Advisor, Essar Group

• Availability of infrastructure and skilled technicians in Kolhapur.
• Internal Globalisation is necessary for Kolhapur to go Global
• Better management and restructuring accompanied by teamwork necessary for Globally competitive companies.
• There is a need for local people to believe in their own self-going global.
• The spirit of fighting is to be encouraged for creating opportunities.

Mr. A.C. Patankar, Advisor, CII

• Regions like Middle East, West Asia and North Africa highly eager to do business with India
• Geographical proximity of India is better for these regions
• There is a need for change in attitude for Kolhapur to go global.
• Indians have to accept the fact that increasing foreign exchange is not mainly due to high exports but due to remittances by NRI’s.
• Different marketing techniques are required for different countries. E.g. – Algeria is the country full of opportunities. It is difficult to market commodities in Libya due to the European domination in these markets. Different types of marketing skills are required in Syria while countries like USA, UAE, Saudi Arabia are full of opportunities and rich in oil resource.

                

            

Excerpts from the Presentation / speeches at the Session:

S.K. Saraf, Chairman (WR), Federation of Indian Export Organisations (FIEO)

• Kolhapur has a very strategic location being close to the industrial heartland of Karnataka and Maharashtra. It also has a rich heritage of textiles and engineering sector like casting and foundry. Kolhapur should try to develop a brand for these products just as Tirupur has become a brand for knitwear and Ludhiana has a brand for woolen fabrics. Kolhapur should market its products by organizing Trade Fairs of international quality in Kolhapur as well as by participating in international trade fairs as a group.
• Financial assistance for critical infrastructural requirements are available from Ministry of Commerce, Government of India under ASIDE Scheme. Various trade associations in Kolhapur should assess the infrastructural requirements and prepare economically viable projects.
• Kolhapur should consider creating a designing and training centre for textiles. This should include training in stitching of garments as well as high-class design centre. There are already reputed textile technical institutes in Ichalkaranchi, which is close to Kolhapur. Such institutes will help in continuous availability of skilled manpower and will also attract foreign buyers.

Mr. Bhushan Gagrani, M.D. MTDC

• Considering the overall global market for tourism, India’s share is 0.42%. The expected target for the tenth five-year plan is 6%. We have a long way to go to achieve this target.
• Tourism is a labour intensive industry and has tremendous potential for employment generation. Ten lakhs of investment in tourism industry will employ 40 individuals as against 17 individuals in other sectors like manufacturing and services.
• Potential for tourism in Maharashtra is immense. Places like Coastal Konkan, Ajanta, Ellora and Sahyadri region though ideal tourist destinations are not in a position to attract tourist.
• Tourism is to be seen as a way of life. The unlimited possibility of cultural tourism has to be explored.
• Infrastructure and other basic necessities like hotels and resorts are to be developed.
• Maharashtra state in general is neither hospitable nor affectionate towards tourists. There is a need for a change in the mindset.
• Attracting more tourists will require improvement in status of forts and tourist destinations like Gaganbawada and Dagipur. Need for a golf court is necessary to attract international tourists.
• MTDC plans to organize Deccan Odyssey in Kolhapur when not in use during monsoon region.

Mr. Sudhir Kumar, Dir. Airport Authority of India

• Tourism is an employment generating business. Proper Itinerary is essential to save valuable time for tourist. Since cultural tourism is gaining ground information about the history about that region is to be provided.
• Lack of connectivity, comfortable transport systems is missing. Comfortable bus system is necessary for development of tourism. This transport system needs to be reasonably priced. Diversified package is necessary to tourist convenience.
• Quality of boats at Gateway of India needs improvement. Need for public toilets. An all weather airport necessary for tourist development. Need to create synergy for tourism development.
• Tourism policy makers require themselves to think as tourists before making any policies.

Mr. G.S. Gill, principal Secretary (Medical Education) GoM.

• Tourism activity is very high on employment generation.
• Tourism activity can be categorized into Historical, Venture, Business and Medical Tourism.
• Medical Tourism have their own problems and require different strategies to succeed. Networking of the sector related to tourism like Travel sector – Medical facility sector – Logistic development sector is necessary.
• Medical tourism has immense potential in India. E.g.- Tooth cleaning require 75 $ in India while that the cost in USA is 300 $. Credible medical facilities and transport with integrated package will benefit medical tourism.
• Importance has to be given to domestic tourists as given to international tourists.
• The problem of AIDS is alarming in India. About 5 million people suffer from HIV in India. Unfortunately Maharashtra is turning out to be the epicenter for the same. It is a moral duty/responsibility for every businessperson to protect his or her workers from AIDS. This can be mainly done through awareness.

Mr. Pradeep Madhavji, Consul General of Nederland & Chairman, Thomas Cooks

• In 2004 3.4 million tourists visited India. Total tourist spending in world comes to 5 bn $. Average tourist spending in India is 1,400 $ which is higher than the world average. These visitors come via Mumbai.
• Balance has to be maintained between the overuse and under use tourist places. Joint approvals within states through joint marketing campaign will benefit states. There is a need for access to international flights every 30 minutes. Importance to domestic tourism is necessary for tourism industry development.

Mr. C.N. Sadadekar, MEDC’s Regional Director, Konkan

• Globalisation and Localization has to go together for Tourism development.
• Considering Konkan as a tourist destination, 85% of the region is hilly. Development of 48 minor ports necessary for tourism development. Different modes of transport to be considered for development of Konkan region.
• There is a need to identify tourist spots. Development of Infrastructure, Marketing and Investment is required for tourism development. Festivals of Konkan need to be marketed vigorously.
• Issues relating to marketing, money, management and materials need to be addressed.
• Projects like Ferry boat services, cruise service around Mumbai, Backwater development, Sindhudurg-Kolhapur-Goa tourism cluster, Ratnagiri-Satara Ropeway, Development of Ratnagiri Airport.

Commander Deepak Naik, MEDC’s Regional Director, Western Region

• Among the top ten popular tourism destinations in the country, Maharashtra has no standing.
• There is a need for master planning for tourism development.
• Eco-friendly and participatory approach is necessary for tourism development.
• Private sector participation is necessary for infrastructure development & development of specific sites for tourism. Local awareness and marketing is necessary.
• A structured revenue model is essential for tourism development.
• Four to Five major cities in Maharashtra have to come together for tourism development.
• Information technology and networking accompanied with preservation of heritage structures is necessary.
• Need for development of ports necessary for tourism.
• Tourists wants need to be looked into before tourism development.

Questions from Participants

DAY – II: 10th April 2005

Excerpts from the Presentation / Speeches at the Session:

Mr. M.N. Chaini, President, MEDC welcomed the guests for “Kolhapur: Emerging Global Engineering Hub” session and stressed the fact that Kolhapur has the potential for best Engineering and Textiles hub in the world.








Mr. D.K. Jain, Director, UNIDO

• Kolhapur region has the potential to improve and become globally competitive by overcoming constraints like infrastructure and other industrial problems.
• Currently the cost of engineering products is very high in India that has to be brought down.
• Engineering sector is a labour intensive technology. India has got an advantage in improving its engineering skills. To become globally competitive in engineering India has to compete with low cost centers like China, Mexico, Brazil and Thailand. There is a need for looking into customer requirements for engineering products.
• An improvement in cost and quality is not a one-time affair but a continuous process.
• UNIDO Partnership Programme will help develop SME’s in India through quality improvement and cost reduction, improvement in organization culture and practice towards customer satisfaction. This can be done through cluster approach.
• Innovation and Research and Development are necessary for cost reduction. 20% cost reduction has to come from mechanical parts.
• Infrastructure improvements like road and availability of water is necessary for industrial development.
• Kolhapur foundry cluster already found. Special Purpose Vehicle (SPV) is created for that purpose.

Dr. P.K. Gupta, Director, NCPC

• There is more potential for cost reduction (Energy/Manpower/Productivity) in India than in other European markets.
• Reduction in waste generation at source and to prevent high cost of recycling and processing is necessary. There is a need to convert waste into resource by applying simple operating practices. Doing so 50% of the waste can be avoided and resources saved for recycling. Prevention of waste rather than control is necessary for cost reduction.
• Distribution of water to be spent judiciously.
• In India input costs are very high. Only 10% of the input cost goes into production of goods, unfortunately the remaining 90% is discharged into environment.
• Emphasis has to be given by every producer from pro-active role in reduction of costs by keeping the production same.
• Use of cleaner technology for improving productivity and management tools is a systematic approach resulting into win-win situation for all.

Mr. Kiran Patil, Jt. M.D, Ghatge Patil Industries

• Kolhapur is a vibrant economy for exports of goods and services worth Rs 10,000 crores. Focus areas for economic development of Kolhapur are agriculture and allied services, engineering and auto industries, textiles and tourism. Potential for development of auto ancillary industry in Kolhapur is immense due to availability of skills. Products are to be customized as per client’s requirements.
• There is a need for exploring new markets in addition to the available markets.
• Problems of labour, high wages and raw material availability are to be addressed.
• Taskforce approach is essential for development of Kolhapur.
• Emphasis is to be given on availability of quality products to customers. Marketing of Kolhapur (availability of good infrastructure) is essential.
• A detailed action plan is necessary to speed up the process.

Mr. Atul Sethi, Vice-President. L &T John Dere Ltd.

• India is the largest market for tractors. Johndere has 149 tractor-manufacturing units in Maharashtra out of which 18 are in Kolhapur. Kolhapur purchases 12% of the tractors manufactured by JohnDere. JohnDere business with Kolhapur is expanding.
• Main challenges before Kolhapur in automobile sector are productivity improvement, infrastructure development like waste management, just-in-time approach, quality improvement and power availability.
• Collaborative and Improvement oriented approach are the main strengths of Kolhapur.
• Though China has the cost advantage in infrastructure like power, low interest rates and mass production, India has an advantage in better management.
• Establishment of teams in executive processes and emphasis on cost reduction is necessary.

Mr. S. Karne, Div. Manager. Daimler Chrysler

• Planning, Organisation and Communication are the essential pre-requisites for development of auto industry. Proper classification between individual areas of work and common work areas is necessary for allocating responsibility and growth.
• Integrated quality management system for raising productivity is essential.
• Mercedes Benz has established a proper school to raise productivity of its employees. Mercedes Benz controls 70% of the automotive market.
• Automotive industry has to be made environment friendly with the use of Bio-fuel. Cars have run more efficiently on such type of technology.
• India has the potential for auto and auto component manufacturing due to skilled manpower and available technology. When it comes to technology India stand better than China.
• There is a need for local sourcing in the areas of co-operation and joint ventures, company profile management, quality standards and meeting customer expectations.
• Self-Assessment and Improvement through innovation and research will help increase productivity. Alternative plan for development with new methodology is necessary in case of emergencies.

Mr. M.A.Patil, Sr. Dy. Director, National Productivity Council, New Delhi.

• Medium and Small Scale Companies can be efficient with high productive, environmental friendly, less energy consuming and sustainable technology.
• Manpower cost is very high in Europe. This is a global opportunity for Indian companies as an outsourcing destination auto sector.
• Since country and regions differ in environment and other socio-economic parameters technology suitable to local regions is necessary otherwise problems relating to viability arises. Technology transfer requires tech-economic viability studies. This situation requires re-engineering and results in higher costs. Problems in technology can be addressed by organised efforts and international contracts. Promotion of cleaner technology in automotive and chemical sector can be beneficial.
• Air squeeze machinery is necessary for better quality molding. This technology is essential for globalisation.

Mr. S.M. Hargapurkar, Sr. Dy. Director,. ARAI, Pune

• ARAI is an institution by industry and for industry. It has got 69 automobile companies as members. The institution is equipped with skilled manpower and high treated engineering.
• ARAI provides different types of services not only to auto- industry but also to refrigerators and washing machines.

» Noise/Vibration and harness for testing vehicle life.
» Laboratory for car testing in which engineering up to 500 kw tested.
» Computer aided engineering lab, noise source evaluated lab.

• Technology meeting international standards such as car crash technology; calibration technologies, certification labs, evaporation emissions and finally evaporation of vehicles are available at ARAI. Cars are tested under extreme conditions for judging the true quality of the car.
• ARAI is also involved in car testing with accidents, proper enforcement of security resulting into reduced car theft and air quality monitoring.
• ARAI has its own IT center at New Delhi and is mainly responsible for CNG/LPG implementation in New Delhi.
• ARAI has approved 105 technical papers and 75% of Indian Automotive is tested through ARAI.
• There is a need for single tax structure through VAT for development of automotive sector. Power problem is the main constraint for manufacturers. These issues require quick decision making by the government.

Excerpts from the Presentation / speeches at the Session:

Mr. Dhananjay Mungale,

• In the past the government controlled everything relating to finance and stock markets. There was no innovative approach for development of financial sector especially stock markets.
• In the era of mature markets financial markets were divided into five categories like:
» Equity markets
» Debt markets
» Foreign Exchange markets
» Commodity markets
» Real Estate markets
• All the above markets are inter-linked with each other.
• Gaps in commodity markets need to be rectified.
• Investments in the real estate market are to the tune of 3 to 4 bn $.
• Blaming bankers for bad debts is not justified, as these people are not necessarily knowledgeable about each and every sector.
• Banking sector is very positive about automobile and textiles.

Mr. Ram Pratap Zaver, Chairman, Kolhapur Engineering Association

• Kolhapur is known for very positive industrial climate. Kirloskars started making engineering and other products.
• Bigger business houses have better access to Banking. Small business people still deprived of banking facilities. Banks have blocked their liquid money into assets. There is a need to release these assets.

Mr Arvind Nachayya, National Cluster Head – SMEs, ICICI Bank

• Characteristics of ICICI Bank
» The 2nd largest Bank
» Listed on New York Stock Exchange
» Products diversified into retail, corporate and SME’s.
• Considering the requirement of growing capital by SME’s, ICICI has concentrated its focus on SME financing.
• ICICI’s lending is totally holistic in nature and for the last one year they have also financed for cluster companies.

Mr. S. V. Gokhale, Zonal Manager, Bank of India, Kolhapur

• Bank of India has 39 branches in Kolhapur.
• All branches are fully computarised
• Deposits worth Rs 1263 cr are there with Bank of India for development of Kolhapur
• Around 802 cr are disbursed to agriculture sector, 127 cr to SME sector & 89 cr to SSI sector. Rs 82.82 crore additional are disbursed for foundry cluster
• Currently the requirement of collaterals for sanctioning loans has between removed and the only requirement is for bankable projects.
• Decision has also been taken as if the rating of the industrial unit is found to be exceptionally good then the interest payable on loan can go down below PLR.


Mr. R. Srinivasan, Editor, Times of India, Pune

• There is a need to bridge the gap between the planned and delivered.
• Government approachability is a problem in our country
• Empowerment of decision making is essential
• Quality of services and delivery of products is necessary.

Mr. A.R. Murlidharan, Gen. Manager, SIDBI

• Loans upto 25 lakhs no requirement of collaterals.
• SIDBI completed 15 years of operation.
• Category of SIDBI financing is direct finance, indirect finance and direct credit.
• SIDBI also has its schemes for retail financing
• SIDBI plans fund for SME’s to the tune of 10,000 crores in the next two years. Its main focus is on disbursement and not only sanctions.
• There is an inbuilt compulsion to repay the loans resulting into no NPA’s formation.
• SIDBI also has come out with 100 cr Venture Capital Funding (VCF) for sectors like IT, Biotech and Pharma.
• SIDBI also supports SME’s for strategy, cluster formation, research and environmental issues.


Mr. J. P. Nema, Gen. Manager, NABARD

• Re-financing agency to co-operative and commercial institutions
• Provides rural infrastructure to finance state governments
• Provides credit financing
• Subsidies for SC/ST farmers and irrigation projects
• Cold storage investment in Maharashtra
• Financing infrastructure projects
• Kisan Credit cards to farmers


Mr. Deepak Ghaisas, CEO i-flex solutions, & Vice-President MEDC

• Thinking has to be big. There is a need to look much outer.
• Need for knowledge and skill for idea generation to go global.
• Right corporate governance is necessary to go global.
• Indian entrepreneurs need not look to Indian banks for finance, which is costly compared to global finance markets offering finance at competitive rates.


Mr. Mukul Sarkar, Dy. Gen. Manager, Exim Bank

• There is lot of potential for floriculture, handicrafts, automotive industries, steel and cotton. Global investors also recognize this potential.
• Assistance given by Exim Bank though product development, Upgradation and development of export market.
• Exim Bank lends money in foreign currency.

VALEDICTORY SESSION

The Valedictory session came to an end by thanks giving speeches from Mr. Digvijay Khanvilkar, Former – Minister of Health, Maharashtra and Mr. M.N. Chaini, President, MEDC.

About 300 people comprising farmers, entrepreneurs, businessmen, industrialists and Govt. officials from Pune, Kolhapur, Satara, Sangli, and neighboring area of Kolhapur Region, attended the Conference.