Amazon hasn't done India any big favours by investing $1 bn: Piyush Goyal

A day after the world's richest person Jeff Bezos announced fresh $1 billion investment in India, Union Commerce and Industry Minister PiyushGoyal on Thursday said his firm Amazon was not doing a favour to the country by the investments and questioned how the online retailing major could incur such "big" losses but for its predatory pricing.
Goyal, who has not yet given Bezos an audience, said e-commerce companies have to follow Indian rules in letter and spirit and not find loopholes to make a back-door entry into multi-brand retail segment.

India does not allow foreign investment beyond 49 per cent in multi-brand retailing and has not yet approved any application of overseas retailers.
"They (Amazon) may have put in a billion dollars but if they make a loss of a billion dollars every year, then jolly well will have to finance that billion dollar. So, it is not as if they are doing a favour to India when they invest a billion dollars," he said at the Raisina Dialogue here.
The $1 billion investment by Amazon.com to help bring small and medium businesses online is on the top of USD 5.5 billion funding it had previously announced.
The minister wondered why an e-commerce market place model, where a firm provides an IT platform for buyers and sellers, incurring huge losses adding that it needs to be looked upon.
"They are investing money over the last few years also in warehousing and certain other activities, which is welcome and good. But if they are bringing in money largely to finance losses and those losses in an e-commerce market place model," Goyal said.
He added that in a fair market place model in a turnover of $10 billion dollars, if a company is incurring loss of billion dollars, it "certainly raises questions, where the loss came from".
Goyal said that how can a marketplace make such a big loss unless they are indulging in "predatory pricing or some unfair trade practices".
"These are real questions which need answers and I am sure the authorities who are looking at it seek those answers and I am sure the e-commerce companies will have their say on that," he said.
Fair trade regulator CCI (Competition Commission of India) has recently ordered a probe against e-commerce majors Flipkart and Amazon for alleged malpractices, including deep discounting and tie-ups with preferred sellers on their platforms.
The minister added that India allows foreign investments in e-commerce market place model and in this model buyers and sellers are free to trade, but the market place player cannot own the inventory, or they can not determine prices.
There are several established market rules for an e-commerce market place business in India and "I think as long as everybody follows these rules, we very much welcome e-commerce into India," he added.
Further, he said that India has strict rules for FDI in multi-brand retail trading and anybody who tries to use the e-commerce market place model to get into the multi-brand retail space surreptitiously will have to be questioned and investigated.
"Whether they are doing that or not is a matter of the investigators to decide...whatever (would be their) findings, that should be respected by everybody," Goyal said.
He reiterated that investors have to follow the laws in letter and spirit and do not try to find loopholes within the defined letter of the law.

Piyush Goyal wants to put Railways on fast track with private sector help

Railway Minister PiyushGoyal on Sunday referred to the famous 'railgaadi' song of actor Ashok Kumar while stressing the need for support of the private sector to accelerate development of the railways.
He dismissed speculations of privatisation of the railway network, but highlighted the need for a public-private partnership funding model for the sector.
"Some trains are still chugging (moving slowly) like actor Ashok Kumar's 'railgaadi' song (due to lack of infrastructure)," Goyal told reporters here, referring to the song from Hrishikesh Mukherjee's 1968 film "Aashirwad".
The film is remembered for the rap-like "railgaadi' song performed by legendary actor late Ashok Kumar.
"We want to end the era of slow moving trains by making way for the fast speed-driven MEMU and electric trains, like the trains being run in suburban Mumbai (with the help of private sector)," he said while advocating for reforms in the railways.
Asked about the opposition to private investments, Goyal said, "The common public is not opposing it. You might be noticing the noise elsewhere. In fact, people are welcoming that the railway is entering a new era."
He said the railways wants to attract an investment of Rs 50 lakh crore in next 12 years to expand the facilities in passenger and goods trains through modernisation.
"This big investment is impossible through the railway and government budgets. So, the way out is to work on a public-private partnership (PPP) model," he said.
Due to inadequate investments in railways in the past, the government machinery faced the burden, he said, adding that the demand of ticket-seekers in some trains was more than 150 per cent.
Allaying fears of privatisation of the railway network, Goyal said, "The Indian Railways is a treasure of the country and its people. This will continue and reins of the railways will remain with the government."

Goyal also announced that a special train will soon operate from Ujjain in Madhya Pradesh to Uttar Pradesh's Varanasi, which is famous for the Kashi Vishwanath temple.
The train will be run by the Indian Railway Catering and Tourism Corporation, the minister said.
Before talking to reporters here, the minister offered prayers at the Mahakaleshwar Temple in neighbouring Ujjain.
A huge number of devotees from the country and abroad come tothe temple, which is dedicated to Lord Shiva.
Goyal said tenders have been issued recently for the infrastructure development and revival of facilities at five railway stations in the country under the PPP model.
He also said that tenders may be issued in the coming days to develop Indore and other railway stations in the country under this model.

Plan ready for Rs 100-trn investment in infra, Rs 50-trn in Railways: Goyal

The Centre has chalked out a plan envisaging an investment of Rs 100 trillion in the infrastructure sector over the next five years, Union Minister PiyushGoyal said on Wednesday.
"The investment will transform availability and quality of infrastructure at airports, roads, highways, railways, ports... All infrastructure-related sectors (aviation, shipping, electricity, and oil & gas) are going to see a huge thrust in the next five years," Goyal said.

The railways and commerce & industry minister said that "Rs 100 lakh crore (Rs 100 trillion) in the next five years is not a small amount".
He said the railways has drawn up a 12-year plan entailing an investment of Rs 50 trillion.
"Rs 50 lakh crore (Rs 50 trillion) in 12 years is an unheard of investment spree that the railways is planning. Obviously, the government cannot put in this kind of money so we will have to engage the private sector. We will have to work closely through the public-private partnership model," Goyal said at the India International Trade Fair in New Delhi.
The minister said Prime Minister Narendra Modi's decision not to join the mega trade deal Regional Comprehensive Economic Partnership (RCEP) was a bold decision to stand up and protect the rights and the interests of the Indian business community and ensure fair access.
"We cannot have a situation that India opens its markets to the world but we do not get an equal access, equal opportunity in the rest of the world. We have to engage with other countries to ensure non-tariff barriers do not stop our exports," Goyal said.
He was addressing an awards ceremony organised by the India Trade Promotion Organisation.