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Cabinet approves Exchange of Tariff concessions under the Fourth Round of Negotiations APTA
Sep 12,2016

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the exchange of tariff concessions, on Margin of Preference basis, under the Fourth Round of Negotiations under the Asia Pacific Trade Agreement and related amendments. The Asia Pacific Trade Agreement or APTA (formerly the Bangkok Agreement) is an initiative under the United Nations Economic and Social Commission for Asia and the Pacific (UN ESCAP) for trade expansion through exchange of tariff concessions among developing country members of the Asia Pacific Region. The current membership of APTA consists of six countries or Participating States (PSs), namely, Bangladesh, China, India, Lao PDR, Republic of Korea, and Sri Lanka.

Since this is a preferential trade agreement, the basket of items as well as extent of tariff concessions are enlarged during the trade negotiating rounds which are launched from time to time. Till date, three rounds of trade negotiations have taken place. Up to the Third Round, India has offered tariff preferences on 570 tariff lines at an average Margin of Preference (MoP) of 23.9% and an additional 48 tariff lines to LDC members at an average MoP of 39.7% at the 6-digit HS level. The third round, with respect to all Participating States, cumulatively covered concessions on 4,270 products with MOP of 27.2%.

The Cabinet approved Indias offer 28.01% of dutiable national tariff lines (i.e. 3142 lines in HS2012 at 8-digit) with an average MoP of 33.45%. This will deepen the concessions being offered under this Agreement. Approval was also given to amend the preamble of APTA to effect accession of Mongolia as the 7th APTA Participating State. Other amendments to incorporate the Sectoral Rule of Origin to the Agreement were also approved.

The Fourth Session of the Ministerial Council of APTA, which is scheduled to be held shortly, will formally implement all the above decisions.

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Cabinet approves Bilateral Technical Arrangement between India and Switzerland on the identification and return of Swiss and Indian Nationals
Sep 12,2016

The Union Cabinet under the Chairmanship of Prime Minister Shri Narendra Modi has given its approval for signing of the Technical Arrangement between India and Switzerland on the identification and return of Swiss and Indian Nationals and its implementation.

Conclusion of the Bilateral Technical Arrangement (BTA) has been linked to the Visa Free Agreement for holders of Diplomatic passports as a package deal. The BTA essentially aims to formalise the existing procedure for cooperation on the return of irregular migrants between the two countries without introducing any additional obligations or exacting timeframes. It is noteworthy that the estimated number of irregular migrants in Switzerland who are thought to be from India is less than 100. If the BTA with Switzerland is approved as proposed, it would offer an opportunity to use the same as a model template for negotiations on the subject with other EU countries, which have been raising the issue regularly with us. It would also help to leverage the Readmission Agreement to liberalise visa and work permit regimes for legitimate Indian travellers. This has been envisaged as a key goal in the recently concluded India-EU Common Agenda on Migration and Mobility (CAMM).

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Cabinet approves extension of contract between India and the International Seabed Authority for exploration of Polymetallic Nodules
Sep 12,2016

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the extension of contract between Ministry of Earth Sciences, Government of India and the International Seabed Authority (ISA) for exploration of Polymetallic Nodules for a further period of 5 years (2017-22). The earlier contract is expiring on 24th March 2017.

By extending the contract, Indias exclusive rights for exploration of Polymetallic Nodules in the allotted Area in the Central Indian Ocean Basin will continue and would open up new opportunities for resources of commercial and strategic value in area beyond national jurisdiction. Further, it would provide strategic importance for India in terms of enhanced presence in Indian Ocean where other international: players are also active.

Background:

Polymetallic nodules (also known as manganese nodules) are potato-shaped, largely porous nodules found in abundance carpeting the sea floor of world oceans in deep sea. Besides manganese and iron, they contain nickel, copper, cobalt, lead, molybdenum, cadmium, vanadium, titanium, of which nickel, cobalt and copper are considered to be of economic and strategic importance. India signed a 15 year contract for exploration of Polymetallic Nodules (PMN) in Central Indian Ocean Basin with the International Seabed Authority (ISA) (an Institution set up under the Convention on Law of the Sea to which India is a Party) on 25th March, 2002 with the approval of Cabinet. India is presently having an area of 75,000 sq.km., located about 2000 km away from her southern tip for exploration of PMN.

Ministry of Earth Sciences is carrying out Survey & Exploration, Environmental Impact Assessment, Technology Development (Mining and Extractive Metallurgy) under polymetallic nodules program through various national institutes viz. National Institute of Oceanography (NIO), Institute of Minerals and Materials Technology (IMMT), National Metallurgical Laboratory (NML), National Centre for Antarctica and Ocean Research (NCAOR), National Institute of Ocean Technology (NIOT) etc., in accordance with the Contract provisions. India is fulfilling all the obligations of the contract.

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Cabinet approves Cadre Review of Group A Executive Officers of Border Security Force
Sep 12,2016

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the Cadre Review of Group A Executive officers of BSF with net creation of 74 posts of various ranks from Assistant Commandant to Additional DG ranks to enhance the operational and administrative capabilities of BSF.

Increase of existing structure of Group A posts from 4109 to 4183 posts are as follows:

1. Increase of one post of Additional DG (HAG level).

2. Net increase of 19 posts of Inspector General (SAG level).

3. Net increase of 370 posts of DIG/Commandant/2 1C (JAG level).

4. Net increase of 14 posts of Assistant Commandant (JTS level).

5. Net reduction of 330 posts of Deputy Commandant (STS level).

Background:

The BSF is the largest border guarding force established in 1965. The present sanctioned strength of the Force is 2,57,025 having 186 Battalions (including 03 NDRF Battalions). Of these the Executive Group A cadre has sanctioned strength of 4065 officers (4109 including the IPS quota). About 90% of the troops are deployed in Indo-Pakistan Border, Indo-Bangladesh Border (including North East) and Left Wing Extremism (LWE) States. The last cadre review of the service was done in 1990.

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Cabinet approves signing of the Extradition Treaty between India and Afghanistan
Sep 12,2016

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the signing and ratification of the Extradition Treaty between India and Afghanistan.

The treaty would provide a legal framework for seeking extradition of terrorists, economic offenders and other criminals from and to the Afghanistan.

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Indirect Tax Collections upto August, 2016 show an increase of 27.5% over the net collections for the corresponding period last year
Sep 12,2016

The figures for indirect tax collections (Central Excise, Service Tax and Customs) upto August 2016 show that net revenue collections are at Rs 3.36 lakh crore which is 27.5% more than the net collections for the corresponding period last year. Till August 2016, 43.2% of the Budget Estimates of indirect taxes for Financial Year 2016-17 has been achieved.

As regards Central Excise, net tax collections stood at Rs.1.53 lakh crore during April-August, 2016 as compared to Rs.1.03 lakh crore during the corresponding period in the previous Financial Year, thereby registering a growth of 48.8%.

Net Tax collections on account of Service Tax during April-August, 2016 stood at Rs.92,696 crore as compared to Rs. 75,219 crore during the corresponding period in the previous Financial Year, thereby registering a growth of 23.2%.

Net Tax collections on account of Customs during April-August 2016 stood at Rs. 90,448 crore as compared to Rs. 85,557 crore during the same period in the previous Financial Year, thereby registering a growth of 5.7%.

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Fitch: Basel III Add to Indian Banks Capital Trigger Risk
Sep 12,2016

The progressive increase in minimum capital requirements under Basel III is likely to put nearly half of Indian banks in danger of breaching capital triggers, says Fitch Ratings. State banks are the most at risk, given their poor existing capital buffers and weak prospects for raising capital through market channels.

Our analysis of 27 Indian banks with outstanding hybrid capital instruments indicates that at end-June 2016 the total capital adequacy ratio (CAR) for 11 banks was at or lower than the minimum of 11.5% required by end-March 2019 (FYE19). Of these, six did not have enough capital to meet the minimum required by FYE17. The minimum total CAR is a prerequisite for payment of coupons on both legacy and Basel III perpetual debt capital instruments.

For Basel III perpetual instruments, coupon deferral is also linked to banks meeting both minimum regulatory common equity tier 1 (CET1) ratio and Tier 1 ratio. More than half of the banks currently have a CET1 ratio that is below the required 8% minimum that will be applied from FYE19.

Fitch estimates that Indian banks will require around USD90bn in new capital by FYE19 to meet Basel III standards, with the state banks accounting for about 80% of the total. Meeting IFRS 9 accounting requirements could add to the challenges faced by the banks. The government has already earmarked INR700bn (USD10.4bn) for capital injections into state banks through to FYE19 and in July it announced that INR229bn (USD3.4bn) was being frontloaded. Priority is being given to the banks most in need of new capital but the capital injections may not be sufficient to address their ongoing capital needs to meet required provisions and to support balance sheet growth. However, we believe that more capital will be needed from the government to restore market confidence.

As it stands, state banks are heavily reliant on the government for new capital. Sharply deteriorating financial profiles have raised the standalone credit risks of state banks over the last year. Equity valuations have suffered as a result. Most continue to trade at heavy discounts to their book value, which acts as a significant constraint on raising new core equity.

The State Bank of Indias (BBB-/Stable; Indias largest bank) proposed USD1bn issuance of dollar-denominated AT1 instruments will be the first cross-border deal, and Fitch believes the issuance will serve as a pricing benchmark for other banks keen to access the dollar AT1 market. The Reserve Bank of Indias recent proposal to allow banks to issue masala bonds - rupee-denominated bonds issued in offshore capital markets - could also help widen the investor pool and ultimately deepen the market for AT1 bond issuance.

Nevertheless, state banks will continue to face difficulties in raising capital from the market, which will keep their Viability Ratings under pressure and will weigh on the sector outlook.

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CCI has disposed off 80% anti-trust cases handled by it by now: D.K. Sikri
Sep 12,2016

The fair trade regulator, Competition Commission of India (CCI) has disposed off more than 600 of 750 anti-trust cases handled by the Commission by now i.e. about 80 per cent of the total cases, its chairman, Mr D.K. Sikri said at an ASSOCHAM event held in New Delhi today.

n++Of the information filed, now 80 per cent is not subject to any investigation as only 20 per cent cases go through the investigation stage,n++ said Mr Sikri while inaugurating an ASSOCHAM conference on Competition Law: Opportunities & challenges in India.

n++Unlike in the past when we undertook the investigation, in more than 50 per cent of the cases or informations filed with us we are now applying rigours of enquiry very-very strongly,n++ he said.

n++What is more important is that the decisions so far made by the Commission have gone on very well and that is very satisfying for us and that has produced some positive outcome,n++ added Mr Sikri.

He said that the CCI, in about past six months, had organised 40 events for promoting awareness in one way or the other amongst the people about the Competition Law, for all stakeholders and people to understand the scope of the law and the remedies it offers.

The CCI chief also said that the Competition Law is also helpful to the government when it comes to making public procurements especially. n++Cases of collusive bidding as well as cartelisation have come to the Commission from various departments of the government, state governments and public sector enterprises, they have been investigated.n++

He also said that there is greater awareness now about the competitive bidding among the enterprises as well as the government departments.

n++While evaluating the bids they have been closely looking at the fact whether the bidders are independent and they are not under the same management, mind you this was not the case earlier and this was not appreciated in the past,n++ said Mr Sikri.

n++Similarly, they are complaining if the prices quoted by the bidders are identical, this behaviour earlier was given not much consideration because the public enterprises would hold negotiation treating them all as L1 but now the same behaviour is being questioned and the government departments are genuinely looking for an L1 bidder who offers really a truly competitive price,n++ he added.

He said that this change has the potential to bring about considerable savings in the public procurement by the government as it constitutes 30 per cent of Indias GDP (gross domestic product).

n++If the government agencies become alert as they have become now and enforce competition thoroughly in the bidding process, even two per cent savings in the public procurement, including financial procurement can wipe out the entire fiscal deficit of the budget,n++ further said Mr Sikri.

He said that competition compliance must go beyond being made a formality, it should be formalised and imbibed as an article of faith by all the businesses in the country.

n++We have recently embarked upon and are preparing a competition compliance manual which is comparable to international standards and are taking the help of legal fraternity in preparing this,n++ he said.

n++We are hopeful that this will help in better understanding and promoting the culture of compliance in the country amongst businesses,n++ added the CCI chairman.

He also said that the Commission is not in favour of imposing penalties as they have to be rational and proportional. n++We do not favour it and we do not want this to be imposed, we will advocate and favour more and more compliance which is in the best interest of Indian economy.n++

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Cash not much in demand; no more parking space in equities, gold
Sep 12,2016

n++We are in a peculiar situation where the benchmark market indices -NIFTY and Sensex have reached levels, perceived to be high while gold cannot be safe haven option for too long as the yellow metal has seen quite a run in the past eight months. Investment cannot go in the real estate and property markets which are in a state of a mess. So the cash would sit idle in banks, irrespective of higher or lower interest ratesn++, the chamber document noted.

It said there is no investment appetite from the industry which is not even operating at full capacity. Whatever investment is coming in the industry is from the foreign direct investment or for bidding in obligatory natural resources like telecom spectrum.

Explaining the key point as to where too much liquidity is being generated from, in the absence of robust industrial growth or demand, barring a few sectors like automobile, the ASSOCHAM paper said India has been one of the main recipients of large cash being printed by central banks of the developed countries without any takers there, even at the sub-zero interest rates.

n++So, when we look at the elevated levels of valuations in the stock market, we should see with a muted sense of excitement because a large part of it is driven by a global liquidity and absorbing it has its own issues; though in the short term, the trend has helped bring stability in the foreign exchange value of rupee, n++said ASSOCHAM Secretary General Mr D S Rawat.

He said generally when too much money chases too few goods or assets, the prices of latter tend to increase; but not any more.

n++Equities had their run, so is the case with the gold. That leaves real estates. With several top notch builders in a messy situation of not being able to deliver the in-hand projects, there is a tremendous lack of confidence of investors or actual users in the property market. So, that leaves cash idlen++, the paper said.

It said thanks to improved prospects in agriculture following good spell of rains this Monsoon, Indias rural demand coupled with the services sector would keep the rate of economic growth ticking at a decent pace. n++While the increased rural demand would give leg-up to certain industrial segments as well, it would not be to the extent of causing investment in fresh capacityn++.

Besides, the commodity cycle remains muted, though there are some pick up signs, though in a tentative manner. The export demand would too remain mutedn++. n++Thus, the biggest trigger has to be demand for money for fresh investment, which is still far. On the other hand, the asset classes -equities, gold have reached saturation while real estate is in a nursing wardn++.

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The Government assures that all resources are made available to the Port sector to achieve maximum growth of business
Sep 12,2016

Mumbai Port Trust needs to bring about administrative reforms to develop ability to compete with the private ports, said Minister of State for Shipping, Road Transport & Highways, Chemicals & Fertilizers, Shri Mansukh L. Mandaviya on an inspection visit to Mumbai Port Trust today. He further expressed a need for the port to have a clear vision and road map for development for next ten to twenty years and appealed to all the stakeholders to work in this direction.

The Minister held a meeting with the Deputy Chairman and the Heads of Departments and reviewed the functioning of the Mumbai Port in all its scope and ambit. While reviewing the existing and the future projects undertaken by the Port, the Minister assured that Government would ensure that all resources are made available to the sector to ensure maximum growth of business.

The Minister also visited the Cruise Terminal at BPX Mumbai Harbour and inspected the liquid cargo handling facilities at Jawahar Dweep and Pir Pau. He appreciated the facilities created at Second Chemical Berth, which provides handling capacity of 55000 DWT tankers and capacity to handle 2.5 MMTPA cargo. He was informed that the MPT facilities have provided a lot of advantages mainly to the Public Sector Oil Companies and eliminated the waiting time of oil tankers at Mumbai Port as also reduced the ships turn round time.

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Kharif Crop Sowing Crosses 1054 Lakh Hectare Areas
Sep 09,2016

The total sown area as on 09th September, 2016 as per reports received from States, stands at1054.49lakh hectare as compared to 1012.35 lakh hectare at this time last year. 

It is reported that rice has been sown/transplanted in 380.28lakh ha, pulses in 143.95   lakh ha, coarse cereals in187.86 lakh ha, oilseeds in 186.95 lakh ha, sugarcane in 45.77lakh hectare and cotton in 102.13 lakh ha.

The details of the area covered so far and that covered during this time last year are given below:

Lakh hectare

CropArea sown in 2016-17Area sown in 2015-16Rice380.28370.04Pulses143.95111.48Coarse Cereals187.86177.05Oilseeds186.95181.70Sugarcane45.7749.60Jute & Mesta7.567.73Cotton102.13114.75Total1054.491012.35

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RBI requested to issue instructions to banks to allow payment of tax under the Scheme in cash and to allow deposit of cash over the counter
Sep 09,2016

The Income Declaration Scheme, 2016 provides an opportunity to persons who have not paid full taxes in the past to come forward and declare their undisclosed income and assets. The Scheme has come into effect from 1 June 2016 and is open for declarations upto 30 September 2016.

In respect of the issue of deposit of cash declared under the Scheme, the Central Board of Direct Taxes (CBDT) vide Circular No.29 of 2016 dated 18 August 2016 clarified that Reserve Bank of India (RBI) has been requested to issue instructions to banks to allow payment of tax under the Scheme in cash and to allow deposit of cash over the counter.

The RBI has vide its circular dated 08.09.2016 instructed the banks to invariably accept cash deposits from all the declarants under the Scheme and to accept cash deposits, irrespective of amount, over the counters, for making payment under the Scheme through challan ITNS-286.

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Water Level of 91 major reservoirs of the country goes up by two per cent
Sep 09,2016

The water storage available in 91 major reservoirs of the country for the week ending on September, 08 2016 was 108.104 BCM, which is 69% of total storage capacity of these reservoirs. This was 117% of the storage of corresponding period of last year and 97% of storage of average of last ten years.

The total storage capacity of these 91 reservoirs is 157.799 BCM which is about 62% of the total storage capacity of 253.388 BCM which is estimated to have been created in the country. 37 Reservoirs out of these 91 have hydropower benefit with installed capacity of more than 60 MW.

REGION WISE STORAGE STATUS:-

NORTHERN REGION

The northern region includes States of Himachal Pradesh, Punjab and Rajasthan. There are 6 reservoirs under CWC monitoring having total live storage capacity of 18.01 BCM. The total live storage available in these reservoirs is 14.24 BCM which is 79% of total live storage capacity of these reservoirs. The storage during corresponding period of last year was 90% and average storage of last ten years during corresponding period was 81% of live storage capacity of these reservoirs. Thus, storage during current year is less than the corresponding period of last year and is also less than the average storage of last ten years during the corresponding period.

EASTERN REGION

The Eastern region includes States of Jharkhand, Odisha, West Bengal and Tripura. There are 15 reservoirs under CWC monitoring having total live storage capacity of 18.83 BCM. The total live storage available in these reservoirs is 14.27 BCM which is 76% of total live storage capacity of these reservoirs. The storage during corresponding period of last year was 58% and average storage of last ten years during corresponding period was 69% of live storage capacity of these reservoirs. Thus, storage during current year is better than the corresponding period of last year and is also better than the average storage of last ten years during the corresponding period.

WESTERN REGION

The Western region includes States of Gujarat and Maharashtra. There are 27 reservoirs under CWC monitoring having total live storage capacity of 27.07 BCM. The total live storage available in these reservoirs is 20.38 BCM which is 75% of total live storage capacity of these reservoirs. The storage during corresponding period of last year was 59% and average storage of last ten years during corresponding period was 73% of live storage capacity of these reservoirs. Thus, storage during current year is better than the storage of last year and is also better than the average storage of last ten years during the corresponding period.

CENTRAL REGION

The Central region includes States of Uttar Pradesh, Uttarakhand, Madhya Pradesh and Chhattisgarh. There are 12 reservoirs under CWC monitoring having total live storage capacity of 42.30 BCM. The total live storage available in these reservoirs is 36.70 BCM which is 87% of total live storage capacity of these reservoirs. The storage during corresponding period of last year was 77% and average storage of last ten years during corresponding period was 65% of live storage capacity of these reservoirs. Thus, storage during current year is better than the storage of last year and is also better than the average storage of last ten years during the corresponding period.

SOUTHERN REGION

The Southern region includes States of Andhra Pradesh, Telangana, AP&TG(2combined projects in both states) Karnataka, Kerala and Tamil Nadu. There are 31 reservoirs under CWC monitoring having total live storage capacity of 51.59 BCM. The total live storage available in these reservoirs is 22.52 BCM which is 44% of total live storage capacity of these reservoirs. The storage during corresponding period of last year was 32% and average storage of last ten years during corresponding period was 72% of live storage capacity of these reservoirs. Thus, storage during current year is better than the corresponding period of last year but is less than the average storage of last ten years during the corresponding period.

State having equal storage than last year for corresponding period is Gujarat. States having lesser storage than last year for corresponding period are Himachal Pradesh, Tripura, Uttarakhand and Tamil Nadu.

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Ministry of Steel extends date of enforcement of Stainless Steel Products (Quality Control) Order, 2016 by three months
Sep 09,2016

Steel Minister Shri Birender Singh held wide-ranging consultations with various stakeholders before the decision and exhorted the stainless steel industry to be a partner in government drive to encourage use of quality steel.

Ministry of Steel has issued Stainless Steel Products (Quality Control) (Amendment) Order, 2016, dated 08.09.16, for extending the date of enforcement of the Principal Order dated 10thJune, 2016, from three months to 180 days. The Order aims at ensuring use of high quality standards in respect of 3 specified stainless steel product categories.

The Steel Minister Shri Birender Singh had met representatives of various stakeholders, who had differing views on the impact of implementation of Quality Control Order, issued in June 2016. Producers, traders, merchants and users attended this meeting organised in August 2016. In the no-holds-barred deliberations under the Chairmanship of the Minister, each side put forth their issues and concerns in detail. Shri Singh gave a patient hearing and facilitated free exchange of ideas. He advised that all sides must put their minds together and come up with a practical resolution in larger interest, within a given timeframe. He directed that an empowered functionary from each group should sit together with Ministry of Steel officials and resolve the deadlock. The ultimate objective must be to see that there is no compromise on quality of steel, he added. Subsequent rounds of discussions at various levels have resulted in the present amendment order. While complimenting all concerned for reaching a consensus, Shri Singh has urged the users and trader groups to come forward and join the central government in its drive to provide quality steel to Indian consumers. The Minister has exhorted them to apply to BIS for licenses and to also encourage their foreign suppliers to do the same, as quality of steel cannot be compromised.

The 3 stainless steel product categories covered under the Order are IS 5522 (stainless steel sheets and strips of utensils), IS 15997 (low nickel austenitic stainless steel sheet and strip for utensils and kitchen appliances-specification) and IS 6911 (stainless steel plate, sheet and strip-specification). The Order stipulates prohibition regarding manufacture, storage, sale, distribution etc. without Standard Mark of BIS and obligation of certification.

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Gartner Says Organizations Must Update Their Network Access Policy to Address Attack of IoT Devices
Sep 09,2016

By 2020, 21 billion of Internet of Things (IoT) devices will be in use worldwide. Of these, close to 6 percent will be in use for industrial IoT applications. However, IT organizations have issues identifying these devices and characterising them as part of current network access policy, said Gartner, Inc. Infrastructure and operations (I&O) leaders must therefore update their network access policy to seamlessly address the onslaught of IoT devices.

Having embraced a bring-your-own-device strategy, organizations must now get employee devices on the enterprise network and start addressing the 21 billion IoT devices that we project will want access to the enterprise network, said Tim Zimmermann, research vice president at Gartner. Whether a video surveillance camera for a parking lot, a motion detector in a conference room or the HVAC for the entire building, the ability to identify, secure and isolate all IoT devices n++ and in particular headless devices n++ is more difficult to manage and secure.

Many IoT devices will use the established bandwidth of the enterprise network provided by the IT organisation (wireless 1.3 Gbps of 802.11ac Wave 1 or 1.7 Gbps of 802.11ac Wave 2). However, it is important that the IT organisation works directly with facilities management (FM) and business units (BUs) to identify all devices and projects connected to the enterprise infrastructure and attaching to the network.

Once all of the devices attached to the network are identified, the IT organization must create or modify the network access policy as part of an enterprise policy enforcement strategy. This should determine if and how these devices will be connected, as well as what role they will be assigned that will govern their access.

In order to monitor access and priority of IoT devices, I&O leaders need to consider additional enterprise network best practices. These can be defining a connectivity policy, as many IoT devices will be connected via Wi-Fi; performing spectrum planning n++ many IoT devices may be using 2.4GHz, but may not be using 802.11 protocols such as Bluetooth, ZigBee or Z-Wave, which may create interference; or considering packet sniffers to identify devices that may do something undesirable on the network.

While more IoT devices are added to the enterprise network, I&O leaders will need to create virtual segments. These will allow network architects to separate all IoT assets (such as LED lights or a video camera) from other network traffic, supporting each FM application or BU process from other enterprise applications and users.

As the concept of virtual segments continues to mature, the capabilities will allow network architects to prioritize the traffic of differing virtual segments as compared with the rest of the traffic on the network. For example, security video traffic and normal enterprise application traffic may have a higher priority than LED lighting.

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