ANNUAL REPORT COVER-2013-14 Final - Department Of Industrial

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1 Government of India Ministry of Commerce & Industry Department of Industrial Policy & Promotion 2013-14 Annual Report

2 Annual Report 2013-14 Government of India Ministry of Commerce and Industry Department of Industrial Policy & Promotion

3 Contents S. No. Chapter Page No 1. Role and Functions 1 2. Evolution and Development of Industrial Policy 11 3. National Manufacturing Policy 21 4. Industrial Corridors 25 5. Improvement of Business Environment : E-Biz Project 40 6. Development Schemes 45 7. Industries and Industrial & Technical Development 61 8. Activities of UNIDO 85 9. Foreign Direct Investment 94 10. Investment Promotion & International Cooperation 99 11. Protection of Intellectual Property Rights 111 12. Administration of Indian Boilers Act, 1923 117 13. Attached & Subordinate Offices and other Organisations 120 14. Representation of Scheduled Castes/Scheduled Tribes/OBCs/ 189 Ex-servicemen and Physically Disabled persons in Services 15. Women Welfare Activities 191 16. Implementation of Official Language Policy 192 17. Vigilance Activities 197 18. Citizen's Charter 199 19. Right to Information 203 20. Appendices I-VIII 204

4 1 Chapter Role and Functions The role of the Department of Industrial i) Accelerating industrial growth by Policy and Promotion (DIPP) is to promote providing financial, infrastructural the industrial sector in India and and other support. facilitate balanced development of ii) Facilitating foreign investment in industries. industries and coordinating faster Under the seventh schedule of the implementation of investment Constitution, those industries which are approvals. declared by Parliament by law in the iii) Facilitating development of industries public interest to be under control of in North East and other special Union, are administered by DIPP. Other category states. than this Constitutionally delineated role, in matters relating to development of iv) Improving intellectual property rights industries by the Union, explosives, regime consistent with the country's matters relating to UNIDO, patents, international commitments and inventions and designs, trademarks and increase output and efficiency in merchandise marks, manufacture, supply Trade Mark and Patent Offices. and distribution of salt by Union agencies v) Maintaining a sound information base and regulation and control of of macroeconomic indicators of manufacture, supply and distribution of industrial production and prices. salt by other agencies, are specifically vi) Initiating measures towards proce- administered by the Department of dural changes to make functioning of Industrial Policy and Promotion on behalf the department more transparent and of the Union of India. Further, the responsive. Department is also responsible for boiler industries, which is in the Concurrent List. Over the years, the role of DIPP has evolved from being a regulator and Objectives, Functions, and Laws administrator of the industrial sector to Administered that of a facilitator of new technology, and The broad objectives of the Department, of Foreign Direct Investment inflows into in line with its defined role as above are as the country. follows: 1

5 The key functions of DIPP are: The Department of Industrial Policy and Promotion administers the following i) Formulation and implementation of Central Legislations through its attached/ industrial policy and administration of subordinate offices and statutory organi- Industries (Development & Regu- zations: lation) Act, 1951. a) The Patents Act, 1970, the Trade Marks ii) Monitoring and stimulation of Act, 1999, the Geographical industrial growth in general and Indications of Goods (Registration and performance of industries specifically Protection) Act, 1999 and the Designs assigned to DIPP as per Allocation of Act, 2000. The associated Rules are Business Rules, 1961. administered through the Office of the iii) Promotion of industrial development Controller General of Patents, Designs in North East and special category and Trade Marks (CGPDTM). The states of J&K, Himachal Pradesh and Intellectual Property Appellate Board Uttarakhand through appropriate provided under the Trade Marks Act, incentives. 1999, has been set up in Chennai. iv) Formulation of Foreign Direct b) The Explosives Act, 1884, and the Rules Investment Policy and promotion and made there under i.e. the Explosives facilitation of direct foreign and non- Rules 2008, the Gas Cylinder Rules, resident investments. 2004, the Static Mobile Pressure v) Association as nodal department for Vessels (Unfired) Rules, 1981, and investment related issues in Bilateral/ Ammonium Nitrate Rules, 2012, which Regional Economic Cooperation are administered through the Agreements. Petroleum & Explosives Safety Organisation, Nagpur. vi) Formulation of policies relating to Intellectual Property Rights in the c) The Salt Cess Act, 1953, is adminis- field of Patents, Trade Marks, tered through the Office of the Salt Industrial Design and Geographic Commissioner, Jaipur. Indication of Goods and administration d) The Boilers Act, 1923, is administered of regulations and rules under IPR. through the Indian Boiler Regulations, vii) Compilation of Wholesale Price Index 1950, framed by the Central Boilers and monthly industrial production Board, which is a statutory body under statistics for use in construction of the the said Act. Enforcement of this Act is Index of Industrial Production. the responsibility of both the State and Union governments since the subject 2

6 Boiler is listed in the concurrent list objective of enhancing the share of of the Constitution of India. manufacturing in GDP to 25% and creating Organization of DIPP 100 million jobs over a decade. The policy is based on the principle of industrial The Organization Chart of the Department growth in partnership with the states. of Industrial Policy and Promotion is at The Central Government will create the Appendix-I while the list of attached and enabling policy frame work, provide subordinate offices and other incentives for infrastructure development organizations under the Department is at on a Public Private Partnership (PPP) basis Appendix-II. through appropriate financing Industrial Policy instruments, and State Governments will be encouraged to adopt the The Department is responsible for instrumentalities provided in the policy. formulation and implementation of The Department has taken up the promotional and developmental measures implementation of the policy in for growth of the industrial sector, keeping consultation with relevant Central in view the national priorities and socio- Government agencies as well as the economic objectives. While individual states. administrative ministries look after the production, distribution, development Foreign Direct Investment (FDI) Policy and planning aspects of specific industries The Department of Industrial Policy & allocated to them, this department is Promotion is the nodal Department for responsible for the overall Industrial formulation of the policy of the Policy. The Statement of Industrial Policy Government on Foreign Direct Investment 1991, tabled in Parliament as a Resolution, (FDI). It is also responsible for mainte- forms the basis of the subsequent steps nance and management of data on inward taken by the Government under the Policy FDI into India, based upon the remittances to liberalize and promote industries over reported by the Reserve Bank of India. the years, including the Foreign Direct Investment (FDI) Policy and the specific The FDI policy is reviewed on an ongoing National Manufacturing Policy (NMP) basis, with a view to making it more announced in 2011. investor-friendly. With a view to attracting higher levels of FDI, National Manufacturing Policy Government has put in place a liberal In order to bring about a quantitative and policy on FDI, under which FDI, up to 100%, qualitative change and to give necessary is permitted, under the automatic route, impetus to the manufacturing sector, the in most sectors/ activities. Significant Department has notified the National changes have been made in the FDI policy Manufacturing Policy (NMP) with the regime in recent times, to ensure that 3

7 India remains an increasingly attractive investment climate and opportunities in investment destination. The Department India and by advising prospective investors plays an active role in the liberalization about investment policies and procedures and rationalization of the FDI policy. and opportunities. International Co- To w a r d s t h i s e n d , i t h a s b e e n operation for industrial partnerships is constructively engaged in extensive solicited through both bilateral and stakeholder consul-tations on various multilateral arrangements. It also aspects of the FDI policy. coordinates with apex industry associations like Federation of Indian Specific Industries Administered by DIPP Chambers of Commerce and Industry The Department monitors industrial (FICCI), Confederation of India Industry growth and production in general and in (CII), the Associated Chambers of select industrial sectors such as leather, Commerce and Industry (ASSOCHAM), etc; cement, paper and pulp, tyre and rubber, in their activities relating to promotion of light electrical industries, consumer industrial cooperation, both through goods, consumer durables, light machine bilateral and multilateral initiatives tools, light industrial machinery, light intended to stimulate the inflow of foreign engineering industries etc. as indicated in direct investment into India. the allocation of Business Rules, 1961. At bilateral level, DIPP is the nodal Appropriate policy interventions are Department for the Indo-Swedish, Indo- made, as required by the emerging Libyan, Indo-Hungarian, Indo-Polish and concerns from time to time. India-Belarus Joint commissions. In For overall development of leather sector, addition, Joint Working Group (JWG) have the Department administers the Indian been set up with Russian Federation, Leather Development Programme (ILDP). Belarus and Brazil on investment and The scheme aims at augmenting raw industrial co-operation. JWGs on IT, coal material base, enhancing capacity, and food processing have been set up with addressing environmental concerns, poland. human resource development, In order to deepen economic engagement infrastructure development, attracting with major economies across the world, investment and global marketing of Indian CEOs Forums/ Joint Business Councils are leather industry. being set up with the objective of Investment Promotion and International facilitating mutually beneficial partner- Cooperation ship with other countries at the business The Department plays an active role in level as well as inputs into policy making. investment promotion, through So far, CEOs Forums/Business Leaders dissemination of information on the Forums have been set up with USA, Japan, 4

8 France, UK, Malaysia, South Africa, Brazil, mode for a period of 10 years. The first 3 Canada, Russia, Australia and Sri Lanka. years of the term would be the pilot phase. An India-African Business Council (IABC) as The Union Minister for Commerce & also Joint Business Councils (JBCs) have Industry launched the eBiz portal at the CII b e e n s e t u p Partnership Summit in Agra on 28.1.2013. for activating business to business Intellectual Property Rights contacts. DIPP is entrusted with the responsibility of The Department is responsible for formulation of policy in respect of negotiations on Investment and Intellectual Property Rights (IPRs) i.e. Intellectual Property Rights under the Patents, Designs, Trade Marks and Geogra- ambit of Comprehensive Economic phical Indications of Goods. The depart- Partnership Agreements (CEPA), Compreh- ment administers Intellectual Property ensive Economic Cooperation Agreements Rights (IPRs) Legislations, namely, the ( C E C A ) , B r o a d - b a s e d Tr a d e a n d Patents Act, 1970, the Designs Act, 2000, Investment Agreement (BTIA), Free Trade the Trade Marks Act, 1999, and Geograp- Agreements (FTAs), etc. with various hical indications of Goods (Registration & countries/regions. The Department is also Protection) Act, 1999, through the Office represented in the negotiations on of Controller General of Patents, Designs & Bilateral Investment Treaties (BITs). Trade Marks (CGPDTM), a subordinate In order to provide assistance and hand- office of this Department. It also holding services to foreign investors, administers establishment matters in Invest India, a joint venture between the respect of the Intellectual Property Department of Industrial Policy and Appellate Board (IPAB). Promotion, Federation of India Chambers DIPP undertakes bilateral and multilateral of Commerce and Industry (FICCI) and cooperation activities in respect of State Governments, has been set up as a Intellectual Property Right matters on not-for-profit company in December, behalf of the government. It is the nodal 2009. department for all matters relating to the In order to enable businesses and investors World Intellectual Property Organization to save time and costs and in order to (WIPO). improve the business environment in the Productivity and Quality country, an online single window was conceptualized in the form of e-Biz DIPP is the nodal department for the Mission Mode Project under the National e- promotion of productivity and quality in Governance Plan. The project has been the industrial sector. National Productivity designed on a Public Private Partnership Council, New Delhi, an autonomous body 5

9 under this Department, undertakes matters related to UNIDO operations in programmes of technical cooperation with India. UNIDO is a specialized agency of the the Asian Productivity Organization (APO), United Nations for industrial activities Tokyo, by sourcing experts to advise on within the United Nations system. India productivity related projects and by has been an active member of the deputing officials from the private and organization since its inception. public sector to programmes conducted by UNIDO has established its presence in India the APO in industry, agriculture and by means of following centres/offices with service related sectors, in addition to its separate mandates viz. (i)UNIDO Regional own training and awareness programmes Office (URO) which is headed by UNIDO on productivity. Representative (UR) to India and Asian The Quality Council of India, an region. (ii) UNIDO Centre for South-South autonomous body under this Department, Industrial Cooperation (UCSSIC), New promotes the adoption of quality Delhi and (iii) International Centre for standards relating to Quality Management Advancement of Manufacturing Systems (ISO 9001 Series), Environment Technology (ICAMT), Bangalore. Management Systems (ISO 14001 Series), The UNIDO Regional Office for South Asia, Food Safety Management Systems (ISO set up in New Delhi on 1st January, 2000, 22000 Series), Product certification and covers seven countries India, Bangla- inspection bodies through the accredi- desh, Sri Lanka, Nepal, Bhutan, Maldives tation services provided by National and Afghanistan and acts as a focal point Accreditation Board for Certification to mobilize knowledge, information and Bodies (NABCB). Besides NABCB, there technology for the region. The Country are three other boards viz National Program of Cooperation between India and Accreditation Board for Education & UNIDO (CP 2013-17) signed in Vienna in Training (NABET); National Accreditation September, 2013, by Secretary, DIPP and Board for Hospitals & Healthcare Providers DG, UNIDO is presently guiding the (NABH); and National Board for Quality activities of UNIDO in India. Promotion (NBQP) which provide accreditation certification on education, CP(2013-17) serves as the portfolio of health and quality promotion respec- development interventions by UNIDO in tively. India, as aligned with the Governments 12th Five Year Plan and the United Nations UNIDO Activities Development Action Framework (2013- Department of Industrial Policy and 2017) Promotion, Ministry of Commerce and Industry is the nodal Department for all 6

10 In continuation of the First Phase, the of the clusters and creation of common UNIDO Centre for South - South Industrial facilities and eco-friendly initiatives, Cooperation (Phase-II) has come into especially for the Micro & Small existence from 1st May, 2013, in New Delhi Enterprises units and recommends and the project document for this has continuation of the scheme during the been formally signed in September, 2013, 12th Plan. Accordingly, a modified version by Secretary, DIPP and DG, UNIDO. The of IIUS viz. Modified Industrial overall development goal of the Centres Infrastructure Upgradation Scheme operations is to contribute to social, (MIIUS) has been notified in July, 2013. economic and environmental develop- Under MIIUS, projects would be sanctioned ment in least developed countries, mainly to upgrade infrastructure in existing in Africa. I n d u s t r i a l Pa r k s / E s t a t e s / A r e a s . Greenfield projects could be supported in The International Centre for Advance- backward areas including North Eastern ment of Manufacturing Technology Region (NER). Projects are to be (ICAMT) has been established by UNIDO implemented by the State Implementing with cooperation of DIPP as one of the ten Agency (SIA) of the State Government. International Technology Centres (ITCs) of The central grant upto 50% of the project UNIDO. This centre is engaged in diffusing cost with a ceiling of ` 50 crore would be technological knowledge and innovations available under MIIUS with minimum State into industrial processes and building up Agencys contribution of 25% and in case of technology partnerships among the North Eastern States, the central grant developing countries. The ICAMT project and the minimum contribution of the SIA is in its extended period up to 14th May, can be 80% and 10% respectively. 2014. Delhi Mumbai Industrial Corridor Programmes for Industrial Infrastructure Project: Development-Modified Industrial Infrastructure Upgradation Scheme The DMIC is proposed to be developed on (MIIUS) either side along the alignment of the 1483 km long Western Dedicated Rail Freight Industrial Infrastructure Upgradation Corridor between Dadri (UP) and Scheme (IIUS) which was launched in 2003 Jawaharlal Nehru Port Trust (JNPT), Navi with the objective to enhance Mumbai. The project seeks to create a competitiveness of industry by providing strong economic base with a globally quality infrastructure through public competitive environment and state-of- private partnership in selected functional the-art infrastructure to activate local clusters/locations has been further commerce, enhance investments and evaluated in December 2011. The study attain sustainable development. The DMIC has pointed out the contribution made project covers the six states of Uttar under IIUS for technological upgradation Pradesh, Haryana, Madhya Pradesh, 7

11 Rajasthan, Gujarat and Maharashtra. Comprehensive Integrated Master Plan for DMIC Development Corporation, CBIC was submitted in the meeting held in incorporated in January, 2008, as the December, 2012. The progress of the project implementation agency has been prioritized projects identified is being restructured as a deemed Government reviewed periodically. The Terms of company with 26% equity of the Govt of Reference (ToRs) for Phase II Study for the Japan. The Japanese Government has also CBIC were discussed in the meeting of PMO announced their financial support for held in April, 2013. As per the Terms of DMIC project to an extent of US $ 4.5 Reference, JICA is required to prepare the billion in the first phase for the projects Comprehensive Regional Perspective Plan with Japanese participation involving for CBIC region within 6-8 months of cutting edge technology. Five projects mobilisation of the consultant and the including three transportation projects Concept Master Plan and Development have been recommended to the Deptt of Plan for two Industrial Nodes within the Economic Affairs for including them in the next 10-12 months. JICA consultants have JICA Rolling Plan for DMIC project. started work on preparation of the Initially, eight nodes/cities in the six DMIC comprehensive plan (phase-2 study). The States have been taken up for interim report on Regional Perspective development. To facilitate the funding for Plan should be ready tentatively by mid the development of a world class 2014, and the final report containing the infrastructure at the industrial cities, Concept Master Plan and Development DMIC Project Implementation Trust has Plan for Industrial Nodes around mid 2015. been set up on 27th September, 2012. The The progress of the study is being reviewed DMIC Trust has taken investment decisions on a monthly basis. on nine projects. Bengaluru-Mumbai Economic Corridor Chennai Bengaluru Industrial Corridor (BMEC) During the visit of the Prime Minister of During the Summit meeting held between Japan to India on 28th December, 2011, India and United Kingdom in February, the two Prime Ministers decided to 2013, the Prime Ministers of both the strengthen efforts to improve infrastruc- countries welcomed the development in ture in Chennai-Bangalore area and cooperation on infrastructure since the directed to operationalise the modalities last summit. They noted UKs interest in for preparation of the Comprehensive cooperating with India for the Integrated Master Plan for development of development of a new Bengaluru-Mumbai Chennai-Bangalore Industrial Corridor Economic Corridor (BMEC). The leaders (CBIC). Japan International Cooperation agreed to examine and evolve the Agency (JICA) Study team has conducted a modalities and content of a feasibility preliminary study and the final report for study of this project concept through 8

12 mutual discussions and to work out a employment in primary core sectors and roadmap for a possible partnership in this subsequent support areas. AKIC would be area. The ToRs for the feasibility study developed using the upcoming Railway's have been finalised in consultation with Eastern Dedicated Freight Corridor (EDFC) DMICDC, Department of Economic Affairs as the backbone. The development of AKIC and the UK Trade and Investment (UKTI), will be taken up in a band of 150-200 kms the nodal agency on the UK side. It has on either side of the EDFC, in a phased been agreed that the feasibility study will manner. This infrastructure development be funded and procured by the project will also give much needed boost Government of India. A Joint Steering to the manufacturing sector and help in Group/Committee will be set up for the raising its gross domestic product project. DMICDC, who are the nodal contribution from the current level of 16 agency for the project on the Indian side, percent to 25 percent by 2025. has initiated the tendering process for Vizag-Chennai Industrial Corridor (VCIC) selection of a consultant for undertaking the study. The proposed Visakhapatnam Chennai industrial corridor is expected to give a Amritsar-Kolkata Industrial Corridor fillip to the economic prospects of the (AKIC) Seemandhra region. This prestigious The Amritsar-Kolkata Industrial Corridor is project is expected to create more than an ambitious project aimed at developing 50,000 jobs, both directly and indirectly, an Industrial Zone spanning across seven in the first phase alone. This Project states in India. AKIC, spread across the would potentially transform the industrial states of Punjab, Haryana, U.P., Bihar, landscape of the region in less than a Jharkhand, West Bengal and Uttarakhand decade of its commissioning. Being set up will include and have an impact on more on the lines of Delhi-Mumbai Industrial than 20 important cities in the region. Corridor project, VCIC will create a strong The corridor covers one of the most economic base with globally competitive densely populated regions of the country environment and state-of-the-art which houses nearly 40% of Indias infrastructure to activate local population. The region as a whole lags commerce, enhance foreign investments behind in industrial activity and has been and attain sustainable development. This seeing an exodus of manpower to the project will provide new investment other industrial hubs for decades. The opportunities and will redefine the Project will see major expansion of economic landscape of the region. infrastructure and industry including Package for Special Category States industrial clusters and rail, road port, air connectivity in the states along the route For promoting industrialization in the of the corridor and will provide a boost to remote, hilly and inaccessible areas, 9

13 Central Government has formulated and 2002, for a period of ten years, has been notified North East Industrial and decided to be continued for 12th Five Year Investment Promotion Policy (NEIIPP), Plan. 2007, for the eight states of North East New Industrial policy and other Region and Transport Subsidy Scheme, concessions for the States of Himachal 1971, which in addition to the eight states Pradesh and Uttarakhand were introduced of North East region also covers Himachal by the Department of Industrial Policy & Pradesh, Uttarakhand, Jammu & Kashmir, Promotion on 7th January, 2003, with an Darjeeling district of West Bengal, aim to provide the required incentives as Andaman & Nicobar Administration and well as an enabling environment for Lakshadweep Administration. industrial development, improve Benefits/incentives available under availability of capital and increase market different schemes of North East Industrial access to provide a fillip to the private and Investment Promotion Policy (NEIIPP), investment in the state. The scheme 2007, include Capital Investment Subsidy, ended on 6th January, 2013. Interest Subsidy, Reimbursement of Based on the outcomes of the evaluation Insurance, 100% Income Tax Exemption study and in consultation with the and Excise Duty Exemption based on value stakeholders, the special Package scheme addition norms specified by the for Himachal Pradesh and Uttarakhand has Department of Revenue, Ministry of been extended during the 12th five year Finance. plan w.e.f. 7/1/2013 to 31/3/2017. Transport subsidy, ranging from 50% to 90% Monitoring of Industrial Activity, is provided on the transport cost for Production and Prices transportation of raw material and finished goods to and from the location of DIPP monitors the performance in the the unit and the designated rail-head or industrial sector through collating port as the case may be. Transport information on Industrial Entrepreneurs subsidy also covers movement of raw Memorandum (IEM), Industrial License, materials/finished goods from one state Letter of Intent (LOI), Foreign Investment to another within the North Eastern data and industrial production returns. Region. The Transport Subsidy Scheme, The Department also compiles and 1971, has been modified and replaced by prepares index of production of 8 core- Freight Subsidy Scheme, 2013, which has infrastructure industries on a monthly been notified on 23rd January, 2013. basis. Besides, the Department publishes the monthly Wholesale Price Index which New Industrial policy and other forms the basis for official information on concessions for the State of J&K, which inflation. were introduced by DIPP on 14th June, 10

14 2 Chapter Evolution and Development of Industrial Policy General Industrial policy and fosters growth. The following measures have been taken up by The quest for industrial development Government in that direction : started soon after independence in 1947. The Industrial Policy Resolution of 1948, i) Liberalisation of Industrial Licensing defined the broad contours of the policy, Policy delineating the role of the State in The list of items covered under industrial development both as an compulsory licensing under the Industies entrepreneur and authority. This was (Development & Regulation) Act, 1951, is followed by comprehensive enactment of reviewed in an ongoing basis. There are Industries (Development & Regulation) only five industries related to security, Act, 1951, that provides for the necessary strategic and environmental concerns framework for implementing the where an industrial license is currently Industrial Policy and enables the Union required : Government to direct investment into desired channels of industrial activity Distillation & brewing of alcoholic inter alia through the mechanism of drinks; licensing keeping with national Cigars and cigarettes of tobacco and development objectives and goals. manufactured tobacco substitutes; Main objectives of the Industrial Policy are Electronic aerospace and defence (i) to maintain a sustained growth in equipment; productivity;(ii) to enhance gainful Industrial explosives including employment;(iii) to achieve optimal detonating fuses, safety fuses, utilisation of human resources; (iv) to gunpowder, nitrocellulose and attain international competitiveness; and matches; (v) to transform India into a major partner and player in the global arena. To achieve Specified hazardous chemicals i.e. (i) these objectives, the Policy focus is on Hydrocyanic Acid and its derivatives, deregulating Indian industry; allowing (ii) Phosgene and its derivatives and freedom and flexibility to the industry in (iii) Isocyanates and disocyanates of responding to market forces; and hydrocarbon, not elsewhere specified providing a policy regime that facilitates (example methyl Isocyanate). 11

15 There are only two industries i.e. (i) Memorandum (IEM) with the Secretariat Atomic Energy (Production, separation or for Industrial Assistance. Filing of online enrichment of special fissionable IEMs under e-Biz has been initiated since materials and substances and operation of January, 2014. An acknowledgement is the facilities) and (ii) Railway transport, issued immediately on receipt of Part A reserved for the public sector. of the IEM form and no further approval is required, under the Industries (D&R) Act, In order to further simplify the licensing 1951. Relevant information is uploaded procedures, the Licensing Committee, on website of the Department and is constituted under the I(D&R) Act, 1951, available in public domain. Immediately and Registration & Licensing of Industrial after commencement of commercial Undertakings Rules, 1952, has been production, Part B of the IEM is required reconstituted and it now includes to be filed. representative of Ministry of Home Affairs. Filing an IEM is primarily for the purpose of collecting data about the delicensed Department of Defence Production has sector on proposed investment, and type prepared a list of Defence product which of industrial activity. It is also useful for has been uploaded on the Department's the purpose of conducting a limited website for bringing greater transparency scrutiny mainly to preclude manufacturing and clarity to the applicants on the items of a compulsory licensable/SSI reserved that are held to be licensable. item by IEM route. (ii) Industrial Management A total of 84,388 IEMs with proposed It has been a continuous endeavor of the investment of ` 94,82,437 crore are on Department of Industrial Policy & record. Statewise and sectorwise lists of Promotion to make its functioning IEMs filed during the last five years on a industrial friendly. year-wise basis are at Appendices III (a) Filing of Industrial Entrepreneur and IV. Memorandum (IEM) Since the inception of the IEM scheme in As per the liberalized policy in place since August, 1991, till March, 2014, a total of 1991, all non-MSME Industrial under- 10,764 units have formally intimated takings (with an investment above `10 commencement of commercial crore in plant and machinery for production. The investment reported in manufacturing sector and more than ` 5 respect of these IEMs is ` 507,803 crore. crore for service sector) which are exempt The statewise report of implementation of from obtaining an industrial licence are IEMs for the last five years is at required to file an Industrial Entrepreneur Appendix V. 12

16 (b) Filing of Industrial Investment India remains an increasingly attractive Intentions investment destination. DIPP plays an active role in the liberalization and The Industrial Investment information rationalization of the FDI policy. Towards maintained by the Department of this end, it has been constructively Industrial Policy and Promotion covers the engaged in extensive stakeholder non-MSME category Industrial Entre- consultations on various aspects of the FDI preneur Memoranda for the delicensed policy. sector and Letters of Intent(LOI) and Direct Industrial Licences (DIL) for (iv) National Manufacturing Policy licensable sector. Statewise and sector- Government of India has announced wise analysis of Industrial Investment National Manufacturing Policy, 2011, with Intentions during last two Plan periods is the objective of enhancing the share of given at Appendices VI & VII manufacturing in GDP to 25% within a respectively. decade and creating 100 million jobs. The The information on Industrial Investment, policy seeks to empower rural youth by status of applications for Industrial imparting necessary skill sets to make Licences, information on IEMs filed on them employable. The policy is based on daily basis etc are being disseminated the principle of industrial growth in through this Departments website for the partnership with the states and is information of the investors. generally sector-neutral, location-neutral and technology-neutral except incentivi- (iii)Policy for Foreign Direct Investment zation of green technology. Sustainable (FDI) development is integral to the spirit of the Government has put in place a liberal FDI policy and technological value addition in policy, under which, up to 100% FDI is manufacturing has received special permitted in most sectors/activities, attention. under the automatic route. There is a The highlights of major policy Initiatives small list of sectors, which are either and achievements during 2013, are as prohibited for FDI, or are subject to follows : restrictions in the nature of equity caps, entry route or conditionalities. Re-constitution of High Level Committee (HLC) subsuming Board Further, the FDI policy is reviewed on an of Approval in it, has been notified ongoing basis, with a view to making it on 1st June, 2013. more investor-friendly. Significant Definition of Cluster to be used for changes have been made in the FDI policy dispensations under NMP prepared regime in recent times, to ensure that and circulated to all states on 5th 13

17 March, 2013. role in investment promotion, In principle approval has been through dissemination of information granted to the NIMZ located at on the investment climate and Prakasam Distt. in Andhra Pradesh opportunities in India and by advising on 27th June, 2013. prospective investors about investment policies, procedures and Scheme for Master Planning of NIMZ opportunities. International has been approved. Cooperation for industrial SFC Note on Technology Acquisition partnerships is achieved through both and Development Fund has been bilateral as well as multilateral prepared and sent to Planning arrangements. At bilateral level, this Commission for in-principle is achieved through a number of joint approval. commissions and joint working groups, for promoting industrial, Draft scheme under NMP on Job technical and scientific cooperation Loss Policy has been prepared. with select countries. The Govern- The first meeting of the Manufac- ment has also set up CEOs turing Industry Promotion Board Forums/Business Leaders Forum (MIPB) under NMP was chaired by with some countries for active Commerce & Industry Minister on business-to-business cooperation and 23rd July, 2013. The meeting for developing a road map for reviewed the overall situation of partnership and industrial coopera- the manufacturing sector in the tion. The Government, in partnership country specifically the situation of with various state Government and capital goods sector. business Associations, is also making Draft advisory on simplification & concerted efforts to make regulations rationalization of business conducive for business. In addition, regulations and skill development it has initiated the implementation of has been prepared and forwarded the e-Biz Project, a Mission Mode to Ministry for Labour & Employ- Project under the National e- ment for further necessary action. Governance Project, to provide online registration and filing payment Guidelines and dispensations for services, to investors and business Clusters outside NIMZ under the houses. The setting up of Invest NMP has been approved. India, a joint venture company (v) Measures Taken for Investment between the Department of Industrial Promotion: Policy & Promotion and FICCI, as a Government has been playing an active not-for-profit, single window 14

18 facilitator, for prospective overseas previous year. The details are given in the investors and to act as a structured Table-2.1. mechanism to attract investment, is The deceleration in the IIP growth in April another step towards this end. March, 2014, is mostly on account of Productivity in Industry shrinking of mining and quarrying sector and in manufacturing sector. The negative The industrial performance measured in growth in manufacturing sector was terms of Index of Industrial Production primarily driven by the steep fall in (IIP) includes sections i.e. manufacturing, industry groups like Radio, TV and mining and electricity and groups based Communication equipment (-27.3%), on use-based classification such as basic Office, accounting & computing machin- goods, capital goods, intermediate goods ery (-15.8%), Furniture (-13.8%), Motor and consumer goods over the base of vehicles, trailers (-9.6%), Fabricated 2004-05. The IIP has shown fluctuating metal products (-7.2%), Medical, trend over the last few years. As per IIP, precision & optical instruments, watches industrial growth peaked at 15.5 % in and clocks (-5.0%) etc. The details of the 2007-08 (manufacturing growth rate was growth in the manufacturing subgroups 18.4%). Industrial growth then declined to are given in the Table 2.2. 2.5% in 2008-09, however, recovered to 5.3% in 2009-10 and further improved to In terms of use-based classification during 8.2% in 2010-11. Subsequently, the 2013-14, positive growth was registered in industrial growth decelerated to 2.9% in 'Basic goods' and 'Intermediate goods'. 2011-12 and 1.1% in 2012-13 and during Consumer goods registered negative April-March, 2013-14 the industrial growth during this period accounted production again moderated recording a largely by negative growth in the negative growth of (-) 0.1 % in comparison consumer durable segment. Moderation in to the corresponding period of the the rate of growth was, however, primarily Table 2.1 Annual Growth Rate of Industrial Production (Per cent) 2005 - 2006 - 2007 - 2008 - 2009 - 2010 - 2011 - 2012 - 2013 - Period Weight 06 07 08 09 10 11 12 13 14 Mining & Quarrying 14.2 2.3 5.2 4.6 2.6 7.9 5.2 -2.0 -2.3 -0.8 Manufacturing 75.5 10.3 15.0 18.4 2.5 4.8 8.9 3.0 1.3 -0.8 Electricity 10.3 5.2 7.3 6.3 2.7 6.1 5.5 8.2 4.0 6.1 Overall 100 8.6 12.9 15.5 2.5 5.3 8.2 2.9 1.1 -0.1 Source: Central Statistics Office 15

19 Table 2.2 Growth Rates of Industrial Production by Broad Groups of Manufacturing (Base :2004-05=100) (Per cent) Code Industry Weight 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 06 07 08 09 10 11 12 13 14 15 Food products & beverages 72.76 13.2 15.9 12.5 -8.2 -1.4 7.0 15.4 2.9 -1.3 16 Tobacco products 15.70 1.0 1.8 -4.4 4.4 -0.6 2.1 5.4 -0.4 1.6 17 Textiles 61.64 8.3 7.8 6.6 -3.6 6.1 6.7 -1.3 5.9 4.2 18 Wearing apparel 27.82 14.1 20.3 9.3 -10.2 1.9 3.7 -8.5 10.4 22.6 19 Luggage, handbags etc. 5.82 -9.1 14.4 5.8 -5.1 1.3 8.0 3.7 7.3 5.0 20 Wood & wood products 10.51 6.8 18.0 17.5 4.9 3.1 -2.2 1.8 -7.1 -2.1 21 Paper & Paper products 9.99 6.3 4.4 1.4 4.8 2.6 8.5 5.0 0.5 0.1 22 Publishing, printing & repro- 10.78 13.7 8.0 14.2 1.6 -6.0 11.2 29.6 -5.1 0.3 duction of recorded media 23 Coke, refined petroleum products 67.15 0.6 11.9 6.2 3.2 -1.3 -0.2 3.5 8.5 5.2 & nuclear fuel 24 Chemicals and chemical products 100.59 1.0 9.3 7.2 -2.9 5.0 2.0 -0.4 3.8 8.9 25 Rubber and plastic products 20.25 12.3 6.6 13.4 5.1 17.4 10.6 -0.3 0.2 -2.3 26 Other non-metallic 43.14 7.8 10.9 9.3 3.3 7.8 4.1 4.8 1.9 1.0 mineral products 27 Basic metals 113.35 15.5 14.7 17.9 1.7 2.1 8.8 8.7 1.9 0.3 28 Fabricated metal Products 30.85 11.1 19.9 7.8 0.1 10.2 15.3 11.2 -4.7 -7.2 29 Machinery and equipment n.e.c. 37.63 26.1 19.7 22.6 -7.6 15.8 29.4 -5.8 -4.7 -4.8 30 Office, accounting & 3.05 45.3 7.0 6.0 -9.7 3.8 -5.2 1.6 -13.9 -15.8 computing machinery 31 Electrical machinery & apparatus 19.80 16.8 12.7 183.5 42.3 -13.5 2.8 -22.2 0.6 14.4 32 Radio, TV and communication 9.89 22.7 155.0 93.1 20.3 11.3 12.7 4.3 5.6 -27.3 equipment 33 Medical, precision & optical 5.67 -4.7 9.9 6.3 7.5 -15.8 6.8 10.9 -2.0 -5.0 instruments, watches and clocks 34 Motor vehicles, trailers 40.64 10.1 25.3 9.5 -8.7 29.8 30.3 10.8 -5.3 -9.6 35 Other transport equipment n.e.c. 18.25 15.3 15.2 -2.9 3.8 27.7 23.1 11.9 -0.1 5.6 36 Furniture 29.97 16.2 -3.9 18.7 7.4 7.1 -7.5 -1.8 -5.1 -13.8 Source: Central Statistics Office 16

20 on account of poor performance of capital (Table-2.3) goods sector which continued in the During 2013-14 (AprilMarch), volatility in negative trajectory for most part of the the sectors persisted as displayed in the year, reflecting low capital formation in month-wise growth trend of IIP, the the country. In 2013-14, capital goods highest growth was recorded in the month registered a negative growth of (-) 3.7% Table 2.3 Use-Based Classification of IIP (Per cent) Sectors Weight 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 06 07 08 09 10 11 12 13 14 Basic Goods 45.7 6.1 8.9 8.9 1.7 4.7 6.0 5.5 2.5 2.0 Capital Goods 8.8 18.1 23.3 48.5 11.3 1.0 14.8 -4.0 -6.0 -3.7 Intermediate Goods 15.7 6.6 11.5 7.3 0.0 6.0 7.4 -0.6 1.6 3.0 Consumer Goods 29.8 10.7 16.1 17.6 0.9 7.7 8.5 4.4 2.4 -2.6 (i) Consumer 8.5 16.2 25.3 33.1 11.1 17.0 14.2 2.6 2.0 -12.2 Durable (ii) Consumer 21.3 8.6 12.3 10.2 -5.0 1.4 4.2 5.9 2.8 5.2 Non-durable IIP 100 8.6 12.9 15.5 2.5 5.3 8.2 2.9 1.1 -0.1 Source: Central Statistics Office Graph - 1 Month-wise sectoral growth rates during 2013-14 17

21 of September, 2013 at 2.6 percent and the The moderation in industrial growth can lowest growth witnessed at (-) 2.5 percent be attributed to both domestic as well as in the month of May, 2013 (Graph 1). international factors. These include global slowdown; decline in export demand due Products for which information as to global slowdown; subdued domestic collected by DIPP which reflected demand as reflected in Private Final negative/low growth during 2013,-14 are Consumption Expenditure, which drives listed in the Table 2.4. Table 2.4 DIPP products showing negative/low growth during 2013-14 (April-March) Use based industry groups DIPP products Basic Goods Copper and Copper Products, Stampings & Forgings, Aluminium Foils, wires & extrusions Aluminium, Steel Castings, Alumimium Sheets/Plates, Wires (Copper), Copper Metal Cathode, Aluminium Foils, Molasses, Bagasse etc. Capital Goods Commercial Vehicles, Boilers, Refractory Bricks, Grinding Wheels, Engines Incl. Internal Combustion and Diesel Engine, Plastic Machinery Incl. Moulding Machinery, Computers, Earth Moving Machinery, Relays, Fuses And Switchgears, Conductor, Aluminium, Air & Gas Compressors, Cylinders, Generator/ Alternator,Sugar Machinery, Heat Exchangers, UPS/Inverters/Converter, Turbines & Accessories, Cooling Towers, Drilling Equipment, Printing Machinery, Furnaces, Food Processing Machinery, Printers etc. Intermediate Goods Fasteners (Excl. Zip-Fastener), Glass Bottles, Polyster Chips, Colour TV Picture Tubes, Lens of All Kinds, Hose Pipe, Explosives etc. Consumer Durables Gems and Jewellery, Colour TV Sets, Telephone Instruments Including Mobile Phone And Accessories, Fans, Watches, Tube, Truck, Mixers & Grinders etc. Consumer Non-durables Biscuits, Milk Powder All Kinds, Atta, Butter, Hair Oil, Gutka etc. 18

22 the domestic demand; fall in Gross Fixed Industries grew at 6.5%, with Refinery Capital Formation; rigid monetary policy products. Cement, Coal, Steel and of RBI skewed towards inflation control Electricity sectors registering a growth of rather than growth; high rate of inflation; 29.0%, 7.7% 4.6% 4.1 and 4.0% increased import costs due to rupee respectively. However, Natural Gas, Crude depreciation against dollar. Oil and Fertilizers registered negative growth of (-) 14.5%, (-) 0.6% and (-) 3.4% Performance of Core Industries respectively. Comparative growth rates The Index of Eight Core Industries (ICI) is a for eight core industries since 2005-06 are monthly index which measures the given in Table-2.5 performance of eight infrastructure Refinery Products yearly growth rate of industries i.e. Coal, Crude Oil, Natural 2012-13 are not comparable with other Gas, Refinery Products, Fertilizers, Steel, years on account of inclusion of RIL (SEZ) Cement and Electricity. These have a production data since April, 2012. weight of around 37.9% in the overall index of Industrial Production (IIP). ICI is a During 2013-14 (Apr-March), the Index of lead indicator of IIP as it is released 12 Eight Core Industries recorded a growth of days prior to the release of IIP by CSO. 2.6% as compared to the corresponding period of the previous year. All other During 2012-13, the Index of Eight Core industries recorded positive growth during Table 2.5 Growth Rate of Eight Core Industries (Growth rate in %) Sector Weight 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- Apr-Nov 06 07 08 09 10 11 12 13 2013-14 Coal 4.37887 6.6 5.9 6.3 8.0 8.1 -0.2 1.3 4.6 0.8 Crude Oil 5.21608 -5.2 5.6 0.4 -1.8 0.5 11.9 1.0 -0.6 -0.2 Natural Gas 1.70783 1.4 -1.4 2.1 1.3 44.6 10.0 -8.9 -14.5 -13.0 Refinery 5.93937 2.1 12.9 6.5 3.0 -0.4 3.0 3.1 29.0* 1.7 Products Fertilizers 1.25387 0.6 3.1 -7.9 -3.9 12.7 0.0 0.4 -3.4 1.5 Steel 6.68443 7.0 12.8 6.8 1.9 6.0 13.2 10.3 4.1 4.3 Cement 2.40633 12.4 9.1 8.1 7.2 10.5 4.5 6.7 7.7 3.0 Electricity 10.316 5.1 7.3 6.3 2.7 6.2 5.6 8.1 4.0 5.6 Overall Index 37.9028 3.9 8.4 5.2 2.8 6.6 6.6 5.0 6.5 2.6 Source: Office of the Economic Adviser, DIPP 19

23 this period except Natural Gas and Crude overseas business operations in the Oil which witnessed negative growth of (-) medium term, with Indonesia at the top. 13.0 % and (-) 0.2 % respectively. For the long-term, India has been rated as the top investment destination, with Global Perspective: China being rated as the second. The UNCTAD World Investment Report Ernst & Youngs 2014 Attractiveness (WIR) 2013, in its analysis of the global survey has mentioned India as the 1st trends in Foreign Direct Investment (FDI) global destination for FDI, in terms of the inflows, has continued to report India as number of FDI projects followed by Brazil the third most attractive location for FDI and China. This is due to opening up of FDI for 2013-2015. The report also mentions in various sectors, including multi-brand that India accounted for more than four retail and telecom. fifths of the FDI in South Asia in 2012. The 2013 A.T. Kearney Confidence Index rates India fifth in terms of future The Financial Year 2013 survey of the prospects for FDI inflows, after USA, Japan Bank for International China, Brazil, Canada followed by Cooperation, conducted among Japanese Australia, Germany, U.K., Mexico, investors, continues to rank India as the Singapore, Russia and France. second most promising country for 20

24 3 Chapter National Manufacturing Policy The Department has notified the National mechanisms for technology Manufacturing Policy (NMP) through a development, including green Press Note dated 4th November, 2011, technologies; with the objective of enhancing the share Government procurement; of manufacturing in GDP to 25% and Special Focus Sectors. creating 100 million jobs over a decade or so. The policy is based on the principle of National Investment And Manufacturing industrial growth in partnership with the Zones (NIMZs) States. The Central government will NIMZs have been conceived as large create the enabling policy frame work, integrated industrial townships with provide incentives for infrastructure state-of-the-art infrastructure; land use development on a Public Private on the basis of zoning; clean and energy Pa r t n e r s h i p ( P P P ) b a s i s t h r o u g h efficient technology; necessary social appropriate financing instruments, and infrastructure; skill development State Governments are encouraged to facilities, etc., to provide a conducive adopt the instrumentalities provided in environment for manufacturing the policy. industries. To enable the NIMZ to function Important Instruments/Features of The as a self governing and autonomous body, Policy it will be declared as a Industrial Township under Article 243 Q (1)(c) of the National Investment and Manufac- Constitution. These NIMZ's would be turing Zones (NIMZs); managed by a Special Purpose Vehicle Rationalization and simplification of (SPV), which would ensure master business regulations; planning of the zone; pre-clearances for Simple and expeditious exit setting up the industrial units to be mechanism for manufacturing units; located within the zone and undertake Incentives for SMEs; such other functions as specified in the various section of the policy. Industrial training and skill upgradation measures; The NIMZs would be different from SEZs in terms of size; level of infrastructure Financial and institutional planning; governance structures related 21

25 to regulatory procedures; exit policies; Setting up of a stock exchange for SMEs fiscal incentives, etc. a n d i m p l e m e n t a t i o n o f S E B I s The policy mandates that the SPV in a zone framework for recognition and will be headed by a senior government supervision of stock exchanges/ official and will include inter-alia an platforms of stock exchanges for official expert conversant with the work SMEs. relating to pollution control/ environ- Technology Acquisition and Develop- mental protection. There shall be a ment Fund: SMEs will be given access to provision of suitable representation of the the patent pool and/or part allottees and subsequently industrial reimbursement of technology units. acquisition costs upto a maximum of Special Benefits/Measures For SMEs `20 lakhs for acquiring appropriate technologies patented upto a maximum Rollover relief from long term Capital of 5 years generally, prior to the date of Gains tax to individuals on sale of a submission of the project. residential property (house or plot of land) in case of re-investment of sale 25% grant to SMEs for expenditure consideration in the equity of a new incurred on environmental and water start-up SME company in the audits subject to a maximum of ` 1 lakh manufacturing sector for the purchase in NIMZs. of a new plant and machinery. Special Provisions Tax pass-through status for Venture The proposals in the policy are generally Capital Funds(VCFs) registered with sector neutral, location neutral and SEBI with a focus on SMEs in the technology neutral except incentivisation manufacturing sector. of green technology. While the NIMZs are Liberalization of IRDA guidelines to an important instrumentality, the provide for investments by insurance proposals contained in the Policy apply to companies in Venture Capital Funds manufacturing industry throughout the with a focus on SMEs, in consultation country including wherever industry is with IRDA. able to organize itself into clusters and adopt a model of self-regulation as Easier access to bank finance through enunciated therein. appropriate bank lending norms, to be arrived at in consultation with RBI, to Progress Made So Far cater specifically to the MSME sector The implementation of the NMP has been and early stage business units. taken up in right earnest and the following steps have been taken :- 22

26 Progress has been made on the issue of Definition of Cluster, to be used for rationalization and simplification of dispensations under NMP, prepared and business regulations. circulated to all State Government. The states have been requested to Draft advisory on simplification & identify land banks for setting up of the rationalization of business regulations National Investment and Manufacturing and skill development has been Zones and to initiate the process of prepared and forwarded to Ministry for rationalization and simplification of Labour & Employment for further state level business regulations. necessary action. Constitution of the approval/ monit- Guidelines and dispensations for oring mechanism i.e Manufacturing Clusters outside NIMZ under the NMP Industry Promotion Board (MIPB), Green has been approved and circulated to Manufacturing Committee (GMAC) have states. been notified on 1st June, 2012 and re- The first meeting of the Manufacturing constitution of High Level Committee Industry Promotion Board (MIPB) under (HLC) subsuming Board of Approval in it, the NMP was chaired by Commerce & has been notified on 1st June, 2013. Industry Minister on 23rd July, 2013. The States have also been requested to meeting reviewed the overall situation apply for setting up of NIMZ in a of the manufacturing sector in the prescribed format for obtaining in- country, specifically the situation of principle approval from Government of capital goods sector. India. First meeting of Green Manufacturing Scheme for Master Planning of NIMZ Committee (GMAC), one of the under NMP has been approved and institutional mechanism under NMP was ready for operationalization. held on 6th August, 2012 under the Scheme on Technology Acquisition and Chairmanship of Secretary, DIPP. Development Fund have been prepared Status Of NIMZs and sent to Planning Commission for Eight Investment Regions along the Delhi in-principle approval. Mumbai Industrial Corridor (DMIC) project Scheme on Job Loss policy under NMP have been announced as NIMZs. The has been drafted. details are as under: Guidelines for establishment of NIMZ i. Ahmedabad-Dholera Investment and proforma for final approval of NIMZ Region, Gujarat have also been prepared and circulated ii. Shendra-Bidkin Industrial Park city to all states. near Aurangabad, Maharashtra 23

27 iii. Manesar-Bawal Investment Region, viii. Jodhpur-Pali-Marwar Region in Haryana Rajasthan iv. Khushkhera-Bhiwadi-Neemrana Eight NIMZs outside the DMIC region have Investment Region, Rajasthan also been given in-principle approval (i) v. Pithampur-Dhar-Mhow Investment Nagpur in Maharashtra (ii) Tumkur in Region, Madhya Pradesh Karnataka (iii) Chittoor in Andhra Pradesh (iv) Medak in Andhra Pradesh (v) Prakasam vi. Dadri-Noida-Ghaziabad Investment in Andhra Pradesh. (vi) Bidar in Karnataka Region, Uttar Pradesh (vii) Gulbarga in Karnataka and (viii) Kolar vii. D i g h i Po r t I n d u s t r i a l A r e a , in Karnataka. Maharashtra ; and 24

28 4 Chapter Industrial Corridors BACKGROUND projects have been recommended to the Deptt of Economic Affairs for The Delhi-Mumbai Industrial Corridor is including them in the JICA Rolling Plan proposed to be developed on either for DMIC Project. Initially, eight side, along the alignment of the 1483 nodes/cities in the six DMIC States have km long Western Dedicated Rail Freight been taken up for development. To Corridor between Dadri (UP) and facilitate the funding for the develop- Jawaharlal Nehru Port Trust (JNPT), ment of a world class infrastructure at Navi Mumbai. The project seeks to the Industrial Cities, DMIC Project create a strong economic base with a Implementation Trust was set up on globally competitive environment and 27th September, 2012. The DMIC Trust state-of-the-art infrastructure to has taken investment decisions on nine activate local commerce, enhance projects. investments and attain sustainable development. The DMIC project covers Progress made during 2013-14 (As on the six States of Uttar Pradesh, 31st March 2014): Haryana, Madhya Pradesh, Rajasthan, The progress of the DMIC project during Gujarat and Maharashtra. DMIC the year 2013-14 is given below: Development Corporation, incorpo- rated in January 2008 as the project a. DMIC Project Implementation Trust implementation agency has been Fund: During 2013-2014, the Trust met restructured as a deemed Government four times including a special meeting company with 26% equity of the Govt of which was held on 17th Jan, 2014. DMIC Japan. The Japanese Government has Project Implementation Trust Fund also announced their financial support considered the following investment for DMIC project to an extent of US $ proposals in its meeting held on 18 -19 4.5 billion in the first phase for the March, 2013, and 10th September, 2013. projects with Japanese participation i. Integrated Industrial Township involving cutting edge technology. Five Vikram Udyogpuri, Ujjain, projects including three transportation Madhya Pradesh; 25

29 ii. Integrated Industrial Township at An amount of ` 303.80 crore was Greater Noida, U.P; allocated at RE stage for the financial year 2013-14. iii. Improvement of Water Supply System to Pithampur Industrial b. Japanese Contribution:The Area and Phase-1 of Pithampur- Japanese Government is committed to Dhar-Mhow Investment Region, extend their financial support for DMIC Madhya Pradesh; project to an extent of US $ 4.5 billion in the first phase for the projects with iv. Construction of New Rail Line from Japanese participation involving Bhimnath to Dholera Special cutting edge technology through a mix Investment Region in Gujarat; of JICA and JBIC lending. A proposal for v. Model Solar Power Project at utilization of Japanese assistance Neemrana, Rajasthan; under Japan International Cooperation Agency (JICA) through Special Terms vi. Seawater Desalination Project at for Economic Partnership (STEP) Loan Dahej, Gujarat; for DMIC Project was approved by CCEA vii. Logistics Data Bank Project; at its meeting held on 20th January, 2014. viii. Multi Modal Logistics Hub at Greater Noida near Dadri; (in- The following five projects including principle approval); three transportation projects have been recommended to the Department ix. Integrated Multimodal Logistics of Economic Affairs for including them Hub, Rewari, Haryana; (in- in the JICA Rolling Plan for DMIC principle approval). project. The Trust granted in-principle approval Po w e r Tr a n s m i s s i o n s y s t e m in the case of (ii) and (v), and approved improvement and grid stability the rest. control for renewable energy During 2013-14, an amount of `507.8 project, Gujarat; crore was allocated during Budget Integrated Water Sector Project at Estimates 2013-2014 for DMIC project Dholera SIR, Gujarat implementation and development including Exhibition cum Convention Rail based connectivity between Centre Project in Dwarka, New Delhi. Ahmedabad and Dholera in Dholera 26

30 S p e c i a l I n v e s tm e n t Re g i o n , Life Insurance Corporation of India Gujarat; (LIC): 1% Regional Mass Rapid Transit System d. Indo-Japan Task Force Meeting: (MRTS) between Delhi Manesar- The twelfth meeting of the Indo Japan Bawal- Neemrana with feeder Task Force on DMIC was held on 18th service to enhance connectivity December 2013, in New Delhi, with between Delhi and upcoming Secretary, Department of Industrial manufacturing hubs (for entire sub- Policy and Promotion (DIPP), Ministry of urban system); Commerce and Industry (MoCI) of India and Vice Minister for International Transport Connectivity in Dadri- Affairs, Ministry of Economy, Trade and Noida-Ghaziabad Investment Industry (METI) of Japan as co-chairs. Region (DNGIR). Both sides expressed the intention of c. Equity structure of DMICDC: On accelerating the development and the basis of the revised equity implementation of the projects to be structure for DMICDC approved by the facilitated by Japans USD 4.5 billion Board of DMICDC in the meeting held on facility and stressed upon the need for 28th March, 2013, the allotment of early implementation of Seawater shares was approved in the meeting Desalination Project at Gujarat and held on 30th April, 2013. The revised Model Solar project at Neemrana, equity structure of the company is as Rajasthan. Both sides also discussed follows: about the outcomes to be listed for the next summit meeting between the two President of India (through Prime Ministers. Secretary, Department of Industrial Policy and Promotion including its e. Exhibition cum Convention Centre nominees): 49% and Air Cargo Complex at Dwarka: DMICDC has completed the preparation Japan Bank for International of the master plan for the proposed Cooperation (JBIC): 26% Exhibition cum Convention Centre Housing and Urban Development (ECC) and Air-Cargo Complex (ACC) in Corporation (HUDCO): 19.9% the 154 hectare site identified for development. The collection of India Infrastructure Finance primary baseline data pertaining to Company Limited (IIFCL) including environmental monitoring, site its nominees: 4.1% 27

31 analysis and site surveys has been Reuse of Waste Water Study; completed. A proposal for transfer of Integrated Transportation Hub land at Sector 25 and Sector 26 in Project at Boraki. Dwarka, New Delhi, to DIPP for the development of a world class state-of- DMIC Project Implementation Trust the-art Exhibition cum Convention Fund accorded the approval for Centre (ECC) and Integrated Freight investing in the development of the Complex (Air Cargo Complex) is under Integrated Industrial Township at consideration. The implementation of Greater Noida as also the in-principle the project will be initiated once the approval for development of the Multi transfer of land from Delhi Modal Logistic Hub at Dadri and same Development Authority to Department are being taken forward. CCEA, at its of Industrial Policy and Promotion meeting held on 20th January, 2014 (DIPP) along with the required land use approved the formation of SPVs for premission is completed. implementation of Integrated Industrial Township Project at Greater f. D a d r i N o i d a G h a z i a b a d Noida. The Share Holders Agreement Investment Region (DNGIR), Uttar has been executed and the SPV in Pradesh:The draft Concept Master respect of Integrated Industrial Plan for the Dadri-Noida-Ghaziabad Township Project, Greater Noida has Investment Region has been submitted been formed and further action by DMICDC to the state Government of towards the implementation of the Uttar Pradesh for review and approval. project is in progress. The state Government of Uttar Pradesh g. Manesar Bawal Investment has agreed to the following projects Region (MBIR), Haryana: The state and has confirmed that the process of Government has accorded its land acquisition has been initiated for administrative approval to the Concept these projects: Master Plan of Manesar-Bawal Integrated Industrial Township Investment Region and the process of Project-Greater Noida; notifying the development plan and finalizing the institutional structure for Multi Modal Logistics Hub, Dadri; Manesar-Bawal Investment Region has High Speed Seamless Connectivity been initiated by state Government. between Delhi-Greater Noida and The major projects identified for Faridabad; development in the region include: 28

32 Mass Rapid Transit System (MRTS) Road Link Connecting Bhiwadi between Gurgaon and Bawal; Tapokara Industrial Complex via Ajarka to Neemrana; Integrated Multimodal Logistics Hub (IMLH) at Rewari; Development of Aerotropolis; Global City at Gurgaon; Development of the Knowledge City. Integrated Water Resources Management Plan for Manesar Apart from the Early Bird Projects Bawal Investment Region. mentioned above the state Government has also approved the DMIC Project Implementation Trust following five projects for conducting Fund has given in-principle approval the pre-feasibility studies: for development of the Integrated Multimodal Logistics Hub (IMLH) at Waste Water Conveyance System Rewari. The state Government has from DJB (Okhla Treatment Plant); been requested to expedite the Integrated Multimodal Passenger process of land acquisition along with Hub; formation of SPV for the project. High Tech Agriculture/ Food h. Khushkhera Bhiwadi Neemrana Cluster; Investment Region (KBNIR), Rajasthan: The Concept Master Plan Water Management for Phase -1; for the Shahjahanpur Neemrana P u b l i c Tr a n s p o r t a t i o n f o r Behror Urban Complex 2041 which also Khushkhera-Bhiwadi-Neemrana includes the master plan of the Investment Region. Khushkhera-Bhiwadi-Neemrana Investment Region has been notified by Draft pre-feasibility reports for the the state Government. The state above mentioned projects have Government has also initiated the already been shared by DMICDC with procurement of land for Phase-IA of the state Government for seeking their Khushkhera-Bhiwadi-Neemrana comments/concurrence. Investment Region. The Early Bird i.Jodhpur- Pali - Marwar Industrial Projects identified for development in Area (JPMIA), Rajasthan: The Concept the Khushkhera-Bhiwadi-Neemrana Master Plan for Jodhpur- Pali - Marwar Investment Region are: Industrial Area is at an advanced stage 29

33 of preparation and will be submitted to for Pithampur- Dhar- Mhow Investment the state Government once Region. The major projects identified completed. The major projects for development in Pithampur- Dhar identified for development in the Mhow- Investment Region include: Jodhpur- Pali - Marwar Industrial Area Development of Integrated include: Industrial Township Vikram Development of Airport near Udyogpuri near Ujjain; Jodhpur; Improvement of Water Supply Development of Sojat- Pali bypass Project for Pithampur Industrial road; Area and Phase-1 of Pithampur- Dhar-Mhow Investment Region; Development of Multi Modal Logistic Hub near Rohat; Development of Integrated Multimodal Logistics Hub near Water supply and Waste Water Pithampur; Management in Jodhpur Pali Marwar Industrial Area; Development of Economic Corridor from Indore Airport to Pithampur Development of MRTS between Industrial Area. Jodhpur and Pali. DMIC Project Implementation Trust DMICDC has informed that the state Fund has accorded approval for Government, in the State Steering investing in the development of Committee meeting held on 25th July Integrated Industrial Township Vikram 2013, has approved the Rajiv Gandhi Uyogpuri near Ujjain and for the lift canal as a source for potable water improvement of Water Supply Project for JPMIA. for Pithampur Industrial Area and j. P i t h a m p u r - D h a r M h o w Phase-1 of Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh: Investment Region. Shareholders The Concept Master Plan for Agreement (SHA) for the project has Pithampur- Dhar- Mhow Investment been executed in consultation with the Region has been approved by the State state nodal agencies. The project SPV Government. The State Government is with the name of Pithampur Jal in the process of undertaking the Prabhandhan Company Limited has notification of the Development Plan been incorporated and the share of 30

34 DMIC Trust towards equity of this Six lane expressway from company was released on 31st March, Ahmedabad to Dholera; 2014. Metro connectivity between CCEA, at its meeting held on 20th Gandhinagar to Ahmedabad; January, 2014, approved the project Development of Dholera of Integrated Industrial Township International Airport; Project at Vikram Udyogpuri near Ujjain, Madhya Pradesh. Shareholders Development of railway line from Agreement (SHA) for the project has Bhimnath to Dholera. been executed in consultations with The Programme Manager for New Cities the state nodal agencies. The State (PMNC) has been appointed for Dholera Government of Madhya Pradesh has Special Investment Region and issued directions for transfer of land to preliminary engineering for Town the project SPV. Planning Schemes, TP-2 East and West k. Ahmedabad Dholera Special has been initiated. Investment Region (DSIR), Gujarat: The DMIC Project Implementation Trust The Concept Master Plan for Dholera Fund has accorded approval for Special Investment Region has been investing in the development of railway approved by the state Government. line from Bhimnath to Dholera as also Subsequently the state Government the formation of SPV and the same is notified the Development Plan for being taken forward. Dholera Special Investment Region under six Town Planning (TP) Schemes. l. Shendra Bidkin Industrial Park Out of the six Town Planning Schemes, (SBIP) and Dighi Port Industrial Area TP-1 and TP-2 have been sanctioned (DPIA), Maharashtra: The Concept (which will constitute Phase-1 of Master Plans for Shendra-Bidkin Dholera) while the State Government is Industrial Park and Dighi Port Industrial in the process of sanctioning the Area have been completed. Site remaining Town Planning schemes. surveys for Shendra-Bidkin Industrial The major projects identified for Park and Dighi Port Industrial Area are the development in Phase-1 of undertaken. The major project Dholera Special Investment Region identified for development in the include: Shendra-Bidkin Industrial Park is the Central Business District (CBD) of 50 31

35 acres and trunk infrastructure for the 1. Chainpura Industrial Area, Distt. Phase-I of Shendra-Bidkin Industrial Guna, Madhya Pradesh; Park. 2. MIDC Indapur in Distt. Pune in RFQ- cum RFP document for the Maharashtra; selection of Programme Managers for 3. MIDC Ville Bhagad, Distt. Raigad in Phase I (24 sq. km) of Shendra-Bidkin Maharashtra; Industrial Area has been issued. The Shareholders Agreement and State 4. Vaghel, Distt. Patan, Gujarat; Support Agreement for incorporation 5. Rajpur-Shahpur, Distt. Mehsana, of the SPV between DMIC Trust and the Gujarat. state Government of Maharashtra have been finalized. The proposal for For the first 4 sites, Detailed Project formation of node/ city level SPV was Reports have been prepared, No placed before the Board of Trustees in Objection Certificates has been the meeting held on 10th March, 2014 obtained from Airports Authority of and the same was approved. India (AAI) for Power Plant chimney height, water allocation has been tied To kick start the development in up with State Governments and Shendra Bidkin Industrial Area the Environmental Clearance from the Phase I comprising of 32.03 sqkm has Ministry of Environment and Forest been identified which would act as (MoEF) has been obtained. catalyst for further investments. The project was placed before the Board of For Rajpur-Shahpur, site survey studies Trustees in the meeting held on 10th have been completed, NOC has been March, 2014 for investment approval. received from AAI for Power plant As decided, the financing issues chimney height and Terms of Reference relating to the project are being re- for Environmental Clearance has been examined. obtained from MoEF. Early Impact Assessment studies would be initiated m. Power Projects in DMIC: Five gas after getting confirmation about the based power projects with capacity of allocation of gas for other projects. 1000-1200 MW each have been taken up by DMICDC at the following sites for Project specific SPVs have been meeting the requirement for power in established and land is being taken the DMIC region. from State Government / Industrial 32

36 Development Corporations in these control/command centre. The SPVs. objective is to dovetail the geographical plans with the digital Chainpura Industrial Area in Guna plans and to use the technology to leap Dist., MP-89.874 ha allotted by frog. ICT Master Plan for the nodes of IIDC, Gwalior; Maharashtra and the node in Gujarat MIDC Indapur Industrial Area, Pune has been completed. For the node in Dist., MH - 79.77 ha of land allotted Haryana and Rajasthan, the same are by MIDC; being prepared. The Final ICT reports for the Dighi Port Industrial Area in MIDC Ville Bhagad Industrial Area, Maharashtra, Ahmedabad Dholera Raigad Dist., MH- 64.3 ha of land Special Investment Region in Gujarat allotted by MIDC; and Shendra Bidkin Industrial Park in Vaghel village, Dist. Patan, Maharashtra have been submitted by Gujarat, - 131.97 Ha of land has the consultant and accepted by the been allocated by Gujarat State Government. The final ICT Master Government for this project. Plans for Khushkhera Bhiwadi Neemrana Investment Region in For gas sourcing and supply, term- Rajasthan and Manesar Bawal sheet and Memorandum of co- Investment Region in Haryana have operation for gas supply has been been forwarded by DMICDC to State signed with M/s GAIL and the Government for their comments/ discussions on draft gas supply suggestions. agreement have been initiated. o. Environmental Clearance for DMIC Proposals for allocation of domestic nodes: Public hearings have been gas for all sites have been submitted successfully conducted for the before the Ministry of Power and Khushkhera-Bhiwadi-Neemrana Ministry of Petroleum & Natural Gas. Investment Region and Manesar-Bawal n. Information and Communication Investment Region with the assistance Technology (ICT) Master Plans: In of the state nodal agencies. The Final addition to the physical master plans, EIA Report is being finalized by the DMICDC is preparing ICT Master Plans consultant and will be submitted to for integrating all the utilities and MoEF shortly. The EIA reports for controlling them through a central Pithampur-Dhar-Mhow Investment 33

37 Region, Dighi Port Industrial Area and site as well as obtaining water Dholera Special Investment Region allocation for the power project in the have been submitted to the respective state of Maharashtra has been state government agencies for completed. The environmental initiating the public hearing process. clearance for the project has also been The EIA report for the Shendra Bidkin obtained from Ministry of Environment Industrial Park is under preparation. and Forests. Efforts are being made to The ToR Clearance for Jodhpur Pali ensure adequate availability of gas at Marwar Industrial Area has also been reasonable prices to make the project accorded by the Expert Appraisal financially viable. Committee of MoEF. c) 6MW Model Solar Plant with Smart Projects referred in Joint Statement Micro Grid in Neemrana, Rajasthan: of Prime Ministers of India and The Cabinet Committee for Economic Japan: Affairs in its meeting held on 20th January, 2014, approved the proposal a) Desalination Plant of 336 MLD at of DIPP for implementation and Dahej, Gujarat: DMIC Project operation of Model Solar Project at Implementation Trust Fund has Neemrana, Rajasthan through a 100% accorded in principle approval to subsidiary of DMICDC. The Board of take 15% equity at par. The states Directors of DMICDC in its meeting held government has issued a letter of on 24th February 2014 approved the comfort to the Japanese consortium on incorporation of 100% SPV of DMICDC 22nd January, 2014 for Desalination for the project. Accordingly, a company Project at Dahej. The End User with the name of DMICDC Neemrana Agreement with various stakeholders is Solar Power Limited has been being finalised. The equity structure incorporated and DMIC Trust has between Japanese Consortium, JBIC, released its share of equity to the Government of Gujarat and DMICDC project SPV. Trust is being finalised. b) Gas- fired Independent Power Producer (IPP) in Maharashtra: All Other Smart Community Projects in project development activities such as DMIC Region: site related studies, Detailed Project DMICDC in partnership with the Report, securing land for the project Government of Japan has initiated the 34

38 development of Smart Communities or DMICDC, the consortium has already Eco Cities for demonstrating cutting shared their preliminary findings on the edge technologies and promoting the following projects: sustainable development in the DMIC (a) Coal Gasification project; region. METI, Government of Japan, had initiated smart community pre- (b) Urban Mass-Transportation Project; feasibility studies in the brown field (c) Lithium Battery Life Time cycle areas of DMIC region. Significant Business; developments have been made in various projects which are undertaken (d) Waste to Energy project. in this Smart Initiative: Other projects undertaken by a. Manesar Bawal Region, Haryana: DMICDC Logistics Data Bank Project has been a. Water availability at the nodes: A identified by the consortium of NEC in committee exists under the which various manufacturing and large Chairmanship of Secretary, Ministry of logistics players have been taken on Water Resources (MoWR), Government board by NEC to finalize the of India to address the issue of water implementation strategies for this availability at DMIC nodes. Based on the project. A regulatory framework for decisions of the meeting, DMICDC has charging mandatory user charges is taken up preparation of Integrated being discussed with Ministry of Water Resource Management Plan for Shipping and data sharing by all the Manesar Bawal Investment Region and logistics players will be necessary to Khushkhera - Bhiwadi - Neemrana ensure the viability of this project. In Investment Region. this regard a meeting was held under the chairmanship of Secretary, b. Skill Development Initiative: For Shipping with all the concerned ensuring the availability of skilled stakeholders on 13th March, 2014, and manpower for meeting the further action on the decisions taken is requirements of the DMIC region, in progress. DMICDC has initiated the development process for establishment of Advanced b. Sanand- Changodar Region, Skill Development Centres (SDC) on a Gujarat: Mitsubishi consortium is Hub and Spoke model across the six working on this project. In a meeting states covered by DMIC. The Transac- held on 27th Feb 2013 with CEO tion Advisor and Technical Service 35

39 Provider has already been appointed by Mr Talleen Kumar, Joint Secretary, DIPP DMICDC in this regard. The appointed while the nodal officer on the UK side is consultant has submitted the inception Mr Barry Lowen, Director, UKTI. On the report and Training Need Analysis basis of competitive bidding, M/s. Egis report.Other required data collection/ India Consulting Engineers Pvt. Ltd in surveys are in progress. JV with IAU ile-de-France & CRISIL Risk & Infrastructure Solutions Limited have Bengaluru-Mumbai Economic been selected as the consultants for Corridor (BMEC) undertaking the study. As per the Terms During the Summit meeting held of Reference, the study should be between India and United Kingdom in completed in about 8 months from the February, 2013, the Prime Ministers of date of award of the work. The both the countries welcomed the feasibility study will be funded by the development in cooperation on Government of India. It has also been infrastructure since the last summit. decided that there will be a Joint T h e y n o t e d U K s i n t e r e s t i n Steering Group only for the project and cooperating with India for the not for the feasibility study. However, development of a new Bengaluru- while the study is in progress, the Mumbai Economic Corridor (BMEC). financing models could be fine tuned The leaders agreed to examine and simultaneously by the two sides. The evolve the modalities and content of a institutional and financial structure for feasibility study of this project concept BMEC has to be finalised keeping in through mutual discussions and to work mind the requirements of the project out a roadmap for a possible on which clarity will emerge only after partnership in this area. the completion of a substantial portion of the feasibility study. The TORs for the feasibility study were finalized in consultation with the Chennai-Bengaluru Industrial Department of Economic Affairs, the Corridor (CBIC) Region UK side and DMICDC which has been During the summit meeting held appointed as the nodal agency on the between India and Japan in December Indian side for the project. UK Trade 2011, the two Prime Ministers stressed and Investment (UKTI) is the nodal the importance of infrastructure agency on the UK side for the project. development in the areas between The nodal officer on the Indian side is Chennai and Bengaluru, where an 36

40 increasing number of Japanese A total of 25 priority projects across companies including SMEs have made various sectors were identified for direct investments to establish their debottlenecking infrastructure in the manufacturing base or other forms of region, in the preliminary study business presence. Against this conducted by the Japan International background, they decided to streng- Cooperation Agency (JICA) as Phase-I of then efforts to improve infrastructure the study. The Terms of Reference such as ports, industrial parks and their (ToRs) for Phase-II Study for CBIC was surrounding facilities in Ennore, circulated to all the stakeholders in Chennai and the adjoining areas. The March, 2013. The final ToRs were Prime Minister of Japan conveyed discussed in the meeting of PMO held in Japans intention to extend financial April, 2013, after consultation with and technical support to the prepar- JICA and examination of the comments ation of Indias Comprehensive received from the stakeholders. The Integrated Master Plan of this region ToRs were finalized and shared with based on which planned development JICA. and work on related facilities could be As per the Terms of Reference for Phase taken up expeditiously. The two Prime II study, JICA will prepare a Ministers directed their officials Comprehensive Regional Perspective concerned to speedily operationalise Plan for CBIC region within 6-8 months the modalities for preparation of the of mobilization of the Consultant and Comprehensive Integrated Master the Concept Master Plan and Plan and get it completed at the Development Plan for at least two earliest. Industrial Nodes within the next 10 -12 The corridor between Chennai months. Bengaluru Chitradurga (around 560 JICA has selected a consortium of km) would have an influence area consultants comprising M/s spread across the states of Karnataka, Pricewaterhouse Coopers (PWC), Japan Andhra Pradesh and Tamil Nadu. The and M/s Nippon Koei Company Ltd, strategy to develop CBIC is part of a Japan for the study. A kick-off meeting plan to achieve accelerated with the JICA consultants and the development and regional industry concerned representatives of the state agglomeration in the states of Tamil and Central Government for discussing Nadu, Karnataka and Andhra Pradesh. the Inception Report and the 37

41 preparation of the comprehensive plan nodes for development in the CBIC (phase-2 study) was held on 15th region by 10th January, 2014, and the October, 2013, when the timelines for same was received in the Department the study were also discussed. The on 13.01.2014. JICA have since study team has gathered details/ submitted the second Draft Interim information from the concerned state Report on 28th March, 2014, on the Governments and line ministries of the Comprehensive Integrated Master Plan Central Government to complete the for Chennai-Bengaluru Industrial study within the agreed time frame. Corridor and the same has been According to the tentative schedule circulated to all the concerned state given by the consultants, the timelines Governments and stakeholders for are as follows: seeking their comments on the findings of the JICA Study Team. JICA will take Part A Preparation of Compre- up master planning of some of the hensive Regional Perspective Plan for industrial nodes identified in the region the overall CBIC Region in consultation with the states and (1st Interim Report) 13th December, other stakeholders. 2013 Amritsar-Kolkata Industrial Corridor (2nd Interim Report) Mid March, 2014 (AKIC) Part B Preparation of Concept The Amritsar-Kolkata Industrial Master Plan and Development Plan Corridor is an ambitious project aimed for Industrial Nodes at developing an Industrial Zone spanning across seven states in India. (3rd Interim Report) Mid July, 2014 AKIC, spread across the states of (Draft Interim Report) Mid December, Punjab, Haryana, U.P., Bihar, 2014 J h a r k h a n d , We s t B e n g a l a n d Uttarakhand will include and have an (Final Report) Mid March, 2015. impact on more than 20 important The consultants submitted the first cities in the region. The corridor interim report on 17 Dec, 2013. covers one of the most densely Following the review meeting taken on populated regions of the country which 11 Dec 2013, the consultants had a h o u s e s n e a r l y 4 0 % o f I n d i a s revised target to submit their population. The region as a whole lags recommendations on the potential behind in industrial activity and has 38

42 been seeing an exodus of manpower to Vizag-Chennai Industrial Corridor the other industrial hubs for decades. (VCIC) The Project will see major expansion of The proposed Visakhapatnam Chennai infrastructure and industry including industrial corridor is expected to give a industrial clusters and rail, road port, fillip to the economic prospects of the air connectivity in the states along the Seemandhra region. This prestigious route of the corridor and will provide a project is expected to create more boost to employment in primary core than 50,000 jobs, both directly and sectors and subsequent support areas. indirectly, in the first phase alone. AKIC would be developed using the This project would potentially upcoming Railway's Eastern Dedicated transform the industrial landscape of Freight Corridor (EDFC) as the the region in less than a decade of its backbone. The development of AKIC commissioning. Being set up on the will be taken up in a band of 150-200 lines of Delhi-Mumbai Industrial kms on either side of the EDFC, in a Corridor project, VCIC will create a phased manner. This infrastructure strong economic base with globally development project will also give competitive environment and state-of- much needed boost to the the art infrastructure to activate local manufacturing sector and help in commerce, enhance foreign invest- raising its gross domestic product ments and attain sustainable develop- contribution from the current level of ment. This project will provide new 16 percent to 25 percent by 2025. investment opportunities and will redefine the economic landscape of the region. 39

43 5 Chapter Improvement of Business Environment E-Biz Project The eBiz project is one of the 27 Mission The Project envisages setting up a G2B Mode Projects under the National e- portal to serve as a one-stop shop for Governance Plan (NeGP) being executed delivery of convenient and efficient by the Department. The vision of eBiz is to services to the investors and addresses the transform the business environment in the need of the business and industries right country by providing efficient, from the inception through the entire life convenient, transparent and integrated cycle of the business. electronic services to investors, industries The following are the Outcomes of the eBiz and businesses in the areas of information Project on forms & procedures, licenses, permits, registrations, approvals, clearances, A world-class G2B portal that permissions, reporting, filing, payments e n h a n c e s I n d i a s b u s i n e s s and compliances throughout the life-cycle competitiveness through a single, of an industry or business entity. The core service-oriented, event-driven theme of eBiz lies in radical shift by interface for all G2B interactions. Government in its service approach, from Integrated G2B Services across being department-centric to customer- Central, State & Local Government & centric, in providing services to the across all geographies in India. business community. The above outcomes result in the following eBiz Vision "to transform the business environment in the country by providing benefits to the investor. efficient, convenient, transparent and integrated electronic services to investors, and business throughout the business life-cycle." Returns l Taxes l l Approvals Permits l l Permissions Compliance l Expand Close Operate l Approvals Start-up l Compliance Explore Opportunibies Project Profiles l Approvals l Infrastructure l Permissions l State Support l Registrations l 40

44 Today, starting a new business or setting The mission of eBiz is to transform the up a new industrial unit requires multiple above scenario and provide investors easy licenses/clearances and related services access to relevant information and from multiple government agencies across services through a number of key features various levels of government. The such as License and Permits Information information about these services is Wizard, Composite Application Forms and fragmented in multiple acts, rules and Service Orchestration. procedures and scattered across multiple License and Permits Information Wizard websites. As a result, an average investor is confused and does not know where to eBiz License and Permits Information begin and is dependent on middlemen for wizard is a consolidated repository of all guidance. relevant licenses, permits and other regulatory information along with their After obtaining the relevant information applicability criteria. The eBiz portal through secondary research and includes an interview-style wizard which middlemen, the investor has to begin a poses the investors a series of questions to protracted series of interaction with assess the licensing needs of their multiple government agencies. Each business. Based on the answers provided, clearance service requires multiple the wizard provides a customized list of interactions with the agency and often licenses/clearances that the investor multiple visits to the department offices. needs to begin their business operation and a list of regulatory compliance they need to comply with as part of operating their business. As a result of all the above factors, the current scenario is time-consuming, expensive and cumbersome. 41

45 Composite Application Form In the current scenario, the investor needs to fill multiple application forms to avail various services from Government agencies. An analysis of the forms indicates significant overlap in the information sought such as the identity of the applicant, demographics of the applicant/business unit etc. eBiz will create a Composite Application Form combining the common elements and creating a single form through which the investor can apply for multiple services. The eBiz project will be operated as a PPP for a period of 10 years. The first three years will constitute the pilot phase, and will earmark setting up of the eBiz portal and provisioning of 29 services covering 9 central government departments and 5 states (Andhra Pradesh, Haryana, Maharashtra, Tamil Nadu, and Delhi) in the first year. The list of 29 services is given in table 5.1 additional services have been identified for implementation during second and third year. In addition during the period under report, 5 more states Joined Up Service Orchestration (Odisha, Rajasthan, Punjab, Uttar Pradesh eBiz Joined Up Service combines the and West Bengal) have been included backend workflow of multiple during the pilot phase. The next seven government departments in such a years called expansion phase, the portal manner that a single request from the will be run on PPP basis through a business i n ve stor th rou g h th e C om p osi te model approved for the project. In this Applicable Form is routed through phase, the project will be expanded to multiple government agencies in a logical cover the whole country and to provide sequence. This includes parallel and over 200 G2B services and other value sequential orchestration based on added services by suitable private interdependencies between the services vendors. being requested by the investor. 42

46 The project has been awarded to M/s. Industrial Entrepreneur Memoranda & Infosys Technologies Ltd., Bangalore after Industrial License was also launched by following governments three-stage bid Honble Commerce & Industry Minister on process. The concessionaire agreement 20.01.2014. The eBiz platform shall was signed between DIPP and Infosys showcase the transactional capabilities of Technologies on 28th May 2009. G2B service delivery mechanism with Subsequently, the project implemen- payment gateway services and ePAO tation has commenced from 4th June, Solution set up for centralized booking and 2009. re-conciliation of all Central Government Ministries / Departments fees collected In order to obtain feedback from partner through eBiz portal. The eBiz portal can be departments, business-user community, accessed at www.ebiz.gov.in. The next Industry associations etc., for improving launch is planned with 27 Andhra Pradesh the design and ergonomics of the eBiz single window industrial licensing and one portal as well as increasing its acceptance central service viz., Employer by various stakeholders, beta version of Registration of Employees State the portal was released in December, Insurance Corporation (ESIC). The 2009. A very positive feedback had been Incremental Roll-out is also scheduled to obtained from the stakeholders. be carried out, thereafter, with 52 Subsequent to the soft-launch on remaining Year-1 services (15 Central and 28.01.2013 by Honble Commerce & 37 State services) pertaining to 4 pilot Industry Minister comprising Question & states along with integration with Answer based License and Permit Wizard, additional PSU banks. the eBiz platform with 2 DIPP services viz., 43

47 Table 5.1 List of Year 1 Services of the Pilot Phase of eBiz Project No. Service Department 1 Issue of Name Availability Letter Ministry of Corporate Affairs (MCA) 2 Issue of Director Identification Number 3 Issue of Certificate for Corporation 4 Issue of Certificate for Commencement of Business 5 Issue of Permanent Account Number (PAN) Central Board of Direct Taxes (CBDT) 6 Filing of Returns by Companies (Form 1) 7 Tax Deduction Account Number of Income Tax Dept 8 Excise Tax Registration (Form R-1) Central Board of Excise and Customs (CBEC) 9 Filing monthly returns for production and removal of goods (Form E.R. 1) 10 Service Tax Registration (Form ST-1) 11 Filing Half-yearly Service Tax Returns 12 Issue of Industrial Entrepreneur Memoranda Department of Industrial Policy & Promotion (DIPP) 13 Issue of Industrial License 14 Issue of Importer Exporter Code Director General of Foreign Trade (DGFT) 15 Application for Environmental Clearance Ministry for Environment and Forests (MOEF) 16 Filing of FC-GPR (Reporting of Forex Transaction) Reserve Bank of India (RBI) 17 Filing for Employees State Insurance Corporation ESIC, M/o Labour & Employment 18 Filing for Employees Provident Fund Organization EPFO, M/o Labour & Employment STATE SERVICES** 19 Issue of Registration Certificate State Commercial Taxes Deptt (CTD) under Value Added Tax 20 Filing of Returns by Dealers 21 Registration of SSI unit State Industries Department 22 Registration under Shops and Establishment Act State Labour Department 23 Issue of license under Factories Act, 1948 State Factories Department 24 Filing of Annual Returns under Factories Act, 1948 25 Payment of Property Tax Municipal Authority 26 Application for power connection from DISCOM State Electricity Department 27 Permission to Charge the Line 28 No Objection Certificate from Pollution Control Board Pollution Control Board 29 Registration for Profession Tax State Government ** State Governments :- Andhra Pradesh, Delhi, Haryana, Maharashtra and Tamil Nadu 44

48 6 Chapter Development Schemes One of the principal objectives of the namely; North East Industrial and Government of Indias Industrial Policy is Investment Promotion Policy (NEIIPP), to have a balance in industrial 2007 and package for special category development between different regions of States (SCS) are now to be taken up as the country by addressing the problem of Central Sector Schemes. Thus, the industrial development of backward Department is now implementing 13 areas. For stimulating industrial Central Sector (CS) Schemes. Further, 3 development of backward areas, the new plan schemes have been proposed for Union Government has been the 12th Five Year Plan. The Department supplementing the efforts of state has been allocated `12,601 crore as GBS governments through various policies/ for the 12th Five Year Plan, ` 1,365 crore schemes/packages of incentives. Another for the Annual Plan 2012-13 and ` 1,501 focus area of the Government of Indias crore for Annual Plan 2013-14. Progress of Industrial Policy is to develop quality expenditure under the Plan Schemes is industrial infrastructure through various regularly monitored in the Department. schemes for enhancing international Till March, 2014 end, 75.6%(provisional) of competiveness of the domestic industry, the allocation for Annual Plan-2013-14 has especially in the functional clusters/ been utilized in the Department. locations which have greater potential to Transport Subsidy Scheme become globally competitive. Some of The scheme was introduced on 23.7.1971 such policies/schemes/packages of to promote industrialization in the incentives for development of industries remote, hilly and inaccessible areas by and which are being currently adminis- providing for subsidy in the transpor- tered by this Department are given in this tation cost incurred by the industrial chapter. units so that they could stand competition Subsequent to allocation by the Planning with other similar industries, which are Commission, scheme-wise allocation is geographically located in better areas. worked out in the Department. The A. Applicability Department was implementing 11 Central Sector (CS) Schemes and 2 Centrally To all industrial units barring planta- Sponsored Schemes (CSS). However, in tions, refineries and power generating accordance with the Government decision units both in public and private sectors on 20th June, 2013, the 2 Schemes irrespective of their size. 45

49 B. Coverage (ii) JKDFC for Jammu & Kashmir; All eight states of the North East, (iii) HPSIDC for Himachal Pradesh; Himachal Pradesh, Jammu & Kashmir, (iv) SIDCUL for Uttarakhand. Uttarakhand, Andaman & Nicobar The disbursement of subsidy to the Administration, Lakshadweep Adminis- industrial units in the Union Territories tration and Darjeeling District of West is made through the UTs Bengal. Administrations. C. Quantum of Subsidy F. Funds released under the scheme Subsidy ranging between 50% and 90% Under TSS, 1971, since inception, an of the transport cost for transportation amount of `3241.66 crore (approx.) has of raw material and finished goods to been released to the States/UTs, and from the location of the unit and including `222.73 crore released during the designated rail-head. For North East the FY 2012-13 and `220.00 crore States, J&K and UTs, the subsidy is 90%. released during FY 2013-14. Year-wise For H.P. and Uttarkhand and Darjeeling funds released under the scheme have District of West Bengal, the subsidy is 75%. been depicted through a Bar-chart given However, for movement of goods within below. NER, the subsidy is 50%. G. Validity of the Scheme D. Period of eligibility The Transport Subsidy Scheme was sunset The subsidy is eligible to a unit for a on 21.01.2013. and w.e.f. 22.01.2013 it maximum period of five years from the has been modified and notified as Freight date of commencement of commercial Subsidy Scheme (FSS) 2013, with the production. approval of CCEA. Units which commenced E. Nodal Agency production on or after 22.01.2013 or a unit The disbursement of subsidy to the which has not claimed subsidy under TSS, eligible industrial units in the States is 1971, before the date of publication of FSS made through the nodal agencies in the official Gazette will be covered appointed for the purpose. These are: under FSS 2013. The salient features of (i) North East Development Financial this scheme are as follows: Corporation (NEDFC), Guwahati for the eight states of North Eastern Region; 46

50 700 619 600 531 500 405 400 400 331 300 222.73 220 200 86 90 109 97 100 75 17 39 0 0 1 2 3 4 5 6 7 8 9 0 1 2 3 00 0 0-0 1-0 2-0 3-0 4-0 5-0 6-0 7-0 8-0 9-1 0-1 1-1 2-1 3-14 - 2 0 0 0 0 0 0 0 0 0 0 1 1 1 1 971 20 20 20 20 20 20 20 20 20 20 20 20 20 20 1 ` In crore Funds released under TSS (i) Definition of manufacturing activity North East Industrial and Investment adopted from the Union Budget 2009- Promotion Policy (NEIIPP), 2007 10; With a view to give a further boost to (ii) Subsidy on transportation of fly ash industrialization in the North Eastern disallowed; Region, the erstwhile North East Industrial (iii)Sunset clause introduced so that the Policy (NEIP), 1997 was revised and a new Scheme terminates after 5 years from policy, namely North East Industrial & its date of notification; Investment Promotion Policy (NEIIPP) 2007, was notified w.e.f. 1.4.2007, which (iv) Provision for subsidy for an additional will remain in force upto 31.03.2017. period of 5 years to MSME; Benefits under NEIIPP 2007 have also been (v) Plantations, refineries, power extended, for the first time, to select generating units, coke (including service sector units, Bio-technology units Calcined Petroleum Coke) industry and power generating units (upto 10 MW), and the units producing tobacco and besides industries in the manufacturing manufactured tobacco substitutes, sector. This policy replaces the erstwhile pan masala and plastic carry bags of NEIP, 1997. less than 20 microns have been placed in the negative list. 47

51 A. Applicability or becoming operational/ functional on th To all industrial units barring the units or after 6 January, 2011 subject to a producing tobacco and manufactured ceiling of `3.00 crore for manufacturing tobacco substitutes, pan masala and sector and `1.50 crore for service plastic carry bags of less than 20 microns, sector. refineries and units engaged in peripheral Central Interest Subsidy Scheme:- The activities like preservation during Scheme provides for interest subsidy @ storage, cleaning operations, packing, re- 3% on the working capital loan availed packing, labeling or re-labeling, sorting, by an eligible unit from scheduled banks alteration of retail, sale price, etc. or Central/State financial institutions B. Coverage for a maximum period of 10 years from the date of commencement of Entire North East Region comprising states production. of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura Central Comprehensive Insurance and Sikkim. Scheme:- The Scheme provides for reimbursement of 100% insurance C. Schemes under NEIIPP, 2007 premium for a maximum period of 10 Central Capital Investment Subsidy years from the date of commencement Scheme, 2007:-The Scheme provides of production. for subsidy @ 30% of the investment in D. Nodal Agency plant and machinery or additional investment in plant and machinery by North Eastern Development Finance way of substantial expansion to all new Corporation (NEDFC), Guwahati is the units as well as existing units which go in nodal agency for disbursal of subsidies for substantial expansion. In order to under various subsidy schemes of NEIIPP, grant additional benefits to Micro, 2007. Small and Medium Enterprises, this E. Funds released under the various Department has amended provision of schemes of NEIIPP, 2007 th CCIS to provide that w.e.f. 6 January, Under NEIIPP, 2007, since inception, 2011 for the industrial units in the `549.81 crores has been released to the Micro, Small and Medium Enterprises States of NER, out of which an amount of sector, subsidy will be available also on `99.83 crores has been released during the additional investment in plant and FY 2012-13 and `149.99 crore during the machinery in respect of first and every current FY 2013-14. Year-wise and subsequent substantial expansion and scheme-wise funds released have been on commencing commercial production depicted through a Bar-Chart given below. 48

52 Funds released under NEIIPP, 2007 Releases under NEIIPP (`in crore) 131.65 Central Capital Investment Subsidy Scheme 86.1 Central Interest Subsidy 48.18 45.45 43.55 40 31.15 5.49 Comprehensive 6.39 6.44 13.7 7.88 Insurance 12.5 13 3.6 4 Scheme 0 0 0 0.46 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Package for Special Category States of On the basis of independent impact Jammu & Kashmir, Himachal Pradesh evaluation study and in consultation with and Uttarakhand the stake holders its was decided to Jammu & Kashmir continue the package during the 12th Five Year Plan. An Office Memorandum has New Industrial policy and other been issued on 11.06.2013 with the concessions for the state of J&K were approval of the competent authority for introduced by DIPP on 14th June, 2002, for extension of the package for a further a period of ten years. Details of period of five year w.e.f. 15.06.2012 to incentives/ concessions provided for 14.06.2017 with certain modification in industrial development in the State are the package. The new package provides (i)Central Capital Investment Subsidy the following incentives:- Scheme, 2002; (ii) Central Interest Subsidy Scheme, 2002; (iii) the Central Central Capital Investment Subsidy Comprehensive Insurance Scheme, 2002. Scheme : All new industrial units and The package of incentives for the state of existing industrial units on their th substantial expansion, would be J&K expired on14 June, 2012. 49

53 eligible for Capital Investment (JKDFC) under the package. Subsidy @ 15% of the investment of Since inception of the scheme, total Plant & Machinery, subject to a ceiling amount of `188.86 crore has been released of ` 30 lakhs. Micro, Small and Medium to the state upto 31.03.2014. enterprises would be eligible for Capital Investment Subsidy of 30% of As per the reports received from the state the investment of plant & machinery, government, 14653 units were set up subject to ceiling of ` 3.00 crore and ` involving an investment of ` 31769.74 1.50 crore for manufact-uring and crore which generated employment of service sector respectively. 118291 persons since inception of the scheme in the state. Central Interest Subsidy Scheme : An interest subsidy of 3% on the average Special Package Scheme for Himachal of daily working capital loan would be Pradesh and Uttarakhand provided to all new industrial units New Industrial policy and other for a period of five years from the date concessions for the states of Himachal of commencement of commercial Pradesh and Uttarakhand were introduced production. by the Department of Industrial Policy & th Central Comprehensive Insurance Promotion on 7 January, 2003, with an Subsidy Scheme : An Insurance aim to provide the required incentives as subsidy to the extent of 100% would be well as an enabling environment for admissible during the extended industrial development, improve package to all new units and to the availability of capital and increase market existing units on substantial access to provide a fillip to the private expansion for a period of five years investment in the state. The scheme was th from the date of commencement of valid till 6 January, 2013. Details of commercial production. incentives/ concessions provided for industrial development in the States are:- Jammu & Kashmir Development Finance Corporation Ltd. (JKDFC) has been Central Capital Investment Subsidy notified as Nodal Agency for routing the Scheme, 2003: A subsidy @ 15% for disbursal of subsidy under the Scheme. investment in plant & machinery subject to a maximum limit of `30 lakh provided to During the financial year i.e. 2013-14, an all new as well as to existing units on amount of `41.16 crore has been released substantial expansion under the Central to the nodal agency i.e. Jammu & Kashmir Capital Investment Subsidy Scheme, 2003 Development Finance Corporation notified by this Department. 50

54 Income tax exemption: 100% income and Planning Commission on continuation tax exemption for an initial period of of the existing Scheme during the 12th Plan five years and thereafter 30% for and Impact Evaluation Study was companies and 25% for other than conducted through an independent companies for a further period of five evaluator. years under Section 80-C of Income The study has reported that both packages Tax Act, 1961 would be allowed. have created an enabling environment for Central Excise Duty exemption: 100% industrial growth in the states and have exemption on outright basis to the led to an inflow of investment which may industrial units set up or expanded in not have been possible in the absence of these states. The exemption was such incentives. The extended Package th available till 31.03.2010. for these states was notified on 4 of th The additions in units set-up, investment March, 2014, w.e.f 7 of January, 2013 to st and employment generated have shown a 31 of March, 2017. steady increase in the past 10 years across The new package for the states of both states and the annual growth rate for Himachal Pradesh and Uttarakhand manufacturing is above 10%. provides the following incentives : The largest cumulative increase has been Central Capital Investment Subsidy in terms of the investment generated, Scheme : All new industrial units and wherein the state of Himachal Pradesh has existing industrial units on their been able to attract 300% more than the substantial expansion, would be pre-incentive package level (i.e. prior to eligible for Capital investment 2002-03). The number of units set-up have Subsidy @ 15% of the investment of grown by close to 28% while the growth in plant & machinery, subject to a ceiling employment generated is more than 33% of ` 30.00 lakhs. Micro, Small and for the same period. Medium enterprises would be eligible At an aggregate level, the investment for Capital Investment Subsidy of 30% generated in the state of Uttarakhand is of the investment of plant & 42 times the level in the year 2000. The machinery, subject to ceiling of ` 3.00 number of units set-up have grown by crore and ` 1.50 crore for manufact- more than 130% while the growth in uring and service sector respectively. employment generated is more than 490% Himachal Pradesh State Industrial for the same period. Development Corporation Ltd. (HPSIDC) The scheme has expired on 06.01.2013. As and State Industrial Corporation of per the directions of Ministry of Finance Uttarakhand Ltd. (SIDCUL) are the nodal 51

55 agencies for routing the disbursal of were set up in the state, since inception of subsidy for Himachal Pradesh and the scheme. This has led to generation of Uttarakhand respectively. employment for 120602 persons. During the financial year i.e. 2013-14, an As per the reports received from the amount of `20.66 crore and `38.17 crore Uttarakhand Government, 31276 units has been released to the Nodal Agencies with an investment of ` 24460.20 crore Himachal Pradesh State Industrial were set up in the state, since inception of Development Corporation (HPSIDC) and the scheme. This has led to generation of State Industrial Corporation of employment for 337620 persons. Uttarakhand Ltd. (SIDCUL). Industrial Infrastructure Upgradation Since inception of the scheme, total Scheme (IIUS) amount of ` 260.00 crore has been Industrial Infrastructure Upgradation released to Himachal Pradesh and Scheme (IIUS) was launched in 2003 with ` 204.78 crore has been released to the objective of enhancing international Uttarakhand, upto 31.03.2014. competitiveness of domestic industry by As per the reports received from the providing quality infrastructure through Himachal Pradesh Government, 9647 units public private partnership in selected with an investment of `18725.00 crore functional clusters/locations which have Overview of Disbursement Under Special Package Scheme J&K Himachal Pradesh Uttarakhand 120 101.37 100 75.51 In crore 80 61.52 60 29.84 ` 22.57 25.06 40 19 15.88 20 23 18.5 24.94 15.88 4 14.43 12 10.22 20 5 0 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 52

56 greater potential to become globally (i) Handloom Cluster, Bhagalpur with a competitive. Central assistance upto 75% project cost of `20.82 crore including of the project cost subject to a ceiling of central grant of `15.69 crore and (ii) Hand `50 crore was given for each project. The Tools Cluster, Jalandhar with a project Scheme was recast in February, 2009, on cost of ` 79.49 crore including central the basis of an independent evaluation grant of `58.28 crore, as both these study to strengthen the implementation projects could not start implementation process. Two stages approval mechanism activities even after sustained efforts was introduced, Final approval was to be made by DIPP through the state given within six months of initial approval government to bring these projects on after achieving certain milestones. The implementation track. As such, at present ceiling of the central assistance was raised there are 37 IIUS projects, the present from `50 crore to `60 crore. status of indicating project cost, approved Summary of IIUS Projects: So far, a total central grant, GoI grant released and number of 39 projects have been financial/physical status as on 31.03.2013 approved in the 10th and 11th Five Year Plan of these 39 projects including two project Periods. The break-up of approval of withdrawn is at Appendix-VIII. projects under IIUS and release of central State-wise distribution of the 37 IIUS grant are as follows: projects along with the number of projects Out of 39 projects, 21 IIUS projects have approved in the state, project cost, been completed so far. Funding in respect central grant approved and released are of 7 projects is complete, however, illustrated below in a tabular statement funding support are still required in case and graph. of 9 ongoing projects. Sanction has been withdrawn in respect of two projects viz. Figures in ` crore FYP No. of Sanctioned Total Project Sanctioned Released (Up Projects Cost 30/03/2011) 10th 25 1573 893 867.00 th 11 14 980 633 315.00 11th 12 880 559 375.00 (Revised) (After withdrawal of sanction from 2 projects) Total 37 2453 1452 1242.00 53

57 State Project cost Central Grant Central Relea- Number of (` Cr.) (` Cr.) sed (` Cr.) Projects AP 96.83 72.63 70.44 2 Assam 62.28 52.63 45.91 1 Chhattishgarh 55.06 31.76 30.79 1 Gujarat 484.79 235.77 190.51 5 HP 80.5 58.28 49.50 1 Jharkhand 65.63 47.79 15.93 1 Karnataka 160.28 67.7 65.66 2 Kerala 56.8 42.6 41.31 1 Maharastra 316.3 209.68 165.85 5 MP 213.13 141.27 117.62 4 Odisha 162.5 105.2 78.73 2 Punjab 17.19 12.69 12.3 1 Rajasthan 27.84 26.04 26.77 1 TN 455.89 249.31 221.95 6 UP 14.34 9.32 8.83 1 WB 183.62 90.36 82.295 3 (Graphic Illustration state-wise distribution of IIUS projects) 54

58 (Performance inspection by SIPP of CETP at Leather Cluster, Kanpur) Central Effluent Treatment Plant(CETP) issues pertaining to land acquisition, has been made operational during the environmental clearances and raising year at Leather Cluster project, Unnao. funds from stakeholders). Optional Secretary, Department of IPP inspected involvement of the state governments the facilities on 11th October 2013. which led to weak ownership in IIUS projects is also one of the reasons for A workshop was held at BIEC, Bangalore, a delay in execution of the project. Delay in facility developed under IIUS on 26th July, implementation which leads to cost 2013 to share knowledge and adopt best escalation and deviations in the projects practices among clusters funded under are major concerns of the department. IIUS of DIPP from the Metallurgical & The scheme was evaluated in 2009 before Mining, Foundry, Plastic and introduction of Recast IIUS 2009 guidelines Pharmaceutical & Chemical sectors. and another evaluation was carried out by Implementation of projects has been th National Productivity Council (NPC) in through SPVs in the PPP mode in the 10 December 2011, and the evaluator has and 11th FYPs. Most projects suffered delays ranging from 12-60 months (due to observed the following: 55

59 (Deliberations on IIUS during workshop held in MTMA Cluster on 26th July 2013) IIUS interventions contributed beyond their financial capacity to immensely in the technological invest in infrastructure facilities upgradation of the clusters; independently; Revenue of the industries under Majority of the clusters have taken up cluster including exports along with green initiatives. employment have increased after Majority of the clusters are self- interventions under IIUS; sustainable. Provided a robust platform for In continuation with scheme of IIUS, in its development of common facilities place a new/modified Scheme, viz. such as R&D Labs, Skill upgrada- Modified Industrial Infrastructure tion centre, CETP and basic Upgradation Scheme (MIIUS) has been infrastructure; notified on 18.7.2013 and the state About 80% industrial units in projects governments have been requested for are under MSE category, hence, it is submission of new project proposals. 56

60 Project proposals under MIIUS have been iv. PRIORITY is to be given to upgrade received and are under evaluation for infrastructure in existing cluster approval in apex committee Meeting over Greenfield cluster; chaired by SIPP. An allocation of `580 crore v. Tripartite MOU among DIPP, State has been made for sanction of new Government and SIA; projects in the 12th FYP. The salient vi. Two Stage approval mechanism like features of MIIUS are as under: previous recast IIUS has been i. Under MIIUS, central assistance retained. would be considered with a ceiling vii. Timeframe for project completion of `50 crore per project and would be 2-3 years; execution of projects is to be done through State Implementing Agency viii. Release of GoI grant (3 Installments (SIA) in Industrial Estates/ Parks/ viz. 30:40:30) subject to upfront Growth Centers. The cost of the land Stakeholder contribution; would not be considered under ix. Projects covered under the existing project cost. sectoral schemes would not be ii. Project implementation is proposed considered; by State Implementation Agency x. Projects are to be evaluated on the (SIA) with mandatory 25% share of basis of measurable outcomes such project on the basis of central as envisaged Productivity and assistance of maximum 50%. In case Employment Generation; of North Eastern States, the central xi. Central grant for physical grant and the minimum contribution infrastructure will be upto 25% of the of the SIA will be 80% and 10% central grant subject to a ceiling of respectively. SIAs to seek support `12.5 crore; from industries (Financial, Site selection, Management etc.). Also, xii. CETP component of the project SIA can choose to implement the would be considered subject to project through SPV; ceiling of assistance upto `15 iii. Projects are to be sanctioned to crore/CETP (maximum `1.50 upgrade infrastructure in Industrial crore/MLD) and for ZLD treatment Estates/ Parks/Areas and Greenfield (Zero Discharge) maximum projects could be supported in assistance upto `20 crore/CETP backward areas, including NER; (`4.50 crore/MLD). 57

61 In the budget estimate for 2013-14, ` 115.00 crore was provided under the scheme and ` 71.69 crore was released upto 31.03.2014 to the SPVs on achieving prescribed milestones. Indian Leather Development Programme (ILDP) Objective and Scope The major objective of the scheme ILDP is to augment raw material base through FDDI-Chennai Campus modernization and technology upgra- dation of leather units, address Indian Leather Development Proramme environmental concerns, human resource (ILDP) is an existing Central Scheme development, support traditional leather initiated from the 10th Five Year Plan and artisans, address infrastructure continued in the 11th Five Year Plan with constraints and establish institutional an expenditure of ` 669.02 crores. The facilities. same has been continued in 12th Plan The scheme has been approved for with an outlay of ` 990.36 crores. The implementation all over India during the ILDP comprises the following six sub- th 12 Plan period. The scheme would schemes: provide skilled manpower to the Leather Industry, employment through training and placement in the leather sector, support to the traditional artisans by way of formation of self-help groups, modernization and technological up- gradation of the leather units, environmental protection, modern infrastructure by establishing Mega Leather Clusters and establishing new branches of Footwear Design & Development Institute (FDDI). FDDI-Noida Campus 58

62 1. Human Resource Development(HRD) design and product development, HRD mission targets potential work force capacity building, providing marketing for leather sector and lays stress on skill support, establishing common facility development and technical development. centre and marketing support/linkage. This project is intended to train and The broad objective of this component prepare individuals in the rural areas to would be to ensure better and higher be fit to work in medium to large industrial returns to the artisans resulting into socio- units. Up gradation of skills of persons economic upliftment. already employed in the sector besides training for trainers/supervisors is also undertaken. Under placement linked skill development training, at least 75% of trained persons would be placed in the industry. 2. Establishment of Institutional Facilities The sub-scheme of ILDP aims at providing institutional facilities by way of establishing new campuses of FDDI to Training under skill development programme meet the growing demand of the leather 4. Leather Technology, Innovation & industry for footwear technologies, Environment Issues. designers, supervisors and mechanics. It is proposed to set up two new branches of This sub-scheme provides financial FDDI in Punjab and Gujarat. support to Leather Cluster to meet the prescribed pollution control discharge 3. Support to Artisan norms and environmental issues. This There are various clusters in India making covers establishment/ expansion/ up traditional footwear and other leather gradation of CETPs, technology bench- goods. The aim of this scheme is to marking for implementing cleaner promote the clusters at various forums as technologies for environment manage- they are an integral part of rural Indian ment; utilization of solid waste from economy and have potential for tanneries and conducting workshops to generating local employment and export. educate and train the tanners and tannery The artisan clusters (both urban and rural) workers . would be supported for enhancing their 59

63 5. Mega Leather Cluster developments like Core Infrastructure, The major objective of developing Mega Special Infrastructure, Production Infras- Leather Clusters is to create state of the tructure, HRD & Social Infrastruc-ture, art infrastructure and to integrate the R&D Infrastructure and Export services production chain in a manner that related infrastructure. addresses the business needs of the 6. Integrated Development of Leather leather industry to cater to the domestic Sector (IDLS) market and exports. These mega clusters Under this Sub-scheme, assistance is will assist the entrepreneurs to set up provided for technology upgradation/ units with modern infrastructure, latest modernization and/or expansion and technology, and adequate training and setting up of a new unit in the leather Human Resource (HRD) inputs. The sector. development of Mega Leather Clusters would help in creating additional The sub-scheme provides assistance in employment opportunities, particularly form of investment grant to the extent of for the weaker sections of society. Mega 30% of cost of new plant and machinery for Leather Clusters (MLC) for the develop- micro and small enterprises and 20%of cost ment of leather industry will have of new plant and machinery for other units minimum common facilities. The project subject to a ceiling of ` 2 crore for each cost would cover various infrastructure product line. 60

64 7 Chapter Industries and Industrial & Technical Development Cement Industry The Indian Cement Industry has managed India is the second largest manufacturer to keep pace with the global technological of cement in the world. The industry plays advancement. The induction of advanced a crucial role in the development of the technology has helped the industry housing and infrastructure sector of the immensely to improve its efficiency by economy. The price and distribution conserving energy, fuel and addressing the control of cement was removed in 1989 environmental concerns. and the cement industry has been de- The cement industry comprises of 190 licensed in 1991 under the Industrial large cement plants with an installed (Development & Regulation) Act, 1951. capacity of 324.50 million tonnes and Since then the Cement Industry has more than 350 mini cement plants with an progressed well both in capacity/ estimated capacity of 11.10 million tonnes production and as well as in process per annum. There are a few large cement technology. plants owned by the Central and the State India is producing, different varieties of Governments. cement like Ordinary Portland Cement The production and despatch figures of (OPC), Portland Pozzolana Cement (PPC), cement for the year 2012-13 are 251.96 Portland Blast Furnace Slag Cement Million Tonnes(MT) and 237.63 Million (PBFS), Oil Well Cement, White Cement, Tonnes(MT) respectively. The production etc. These different varieties of cement and despatch figures for the year 2013-14 are produced as per the Bureau of Indian are 256.04 MT and 248.70 MT respectively. Standard (BIS) specifications and its The Department collects cess on cement @ quality is comparable with the best in the ` 0.75 per metric tonne of cement world. manufactured/ produced from medium Capacity, Production and Despatch of and large industries. The cess collected Cement on cement for the years 2012-13 and 2013- Cement is one of the most technologically 14 are ` 19.52 Cr and ` 19.02 Cr advanced industries in the country. The respectively and deposited in the modern Indian cement units are state-of- Consolidated Fund of India. the-art plants and are comparable to the Cement Information System (CIS) Portal best in the world. was launched to compile data about the cement industry regarding capacity, 61

65 production, dispatch, export and import 26102); hollow glassware (NIC-26103); of cement , mode of dispatch of cement laboratory glassware (NIC-26104); table & across the country, cess paid on cement kitchen glass ware (NIC-26105); glass etc. bangles (NIC-26106) including other glassware (NIC-26109). Glass industry National Council for Cement and Building comes under delicensed industry. Most of Materials (NCCBM) is an autonomous apex the glass demand in India currently comes R&D organization under the Adminis- from container glass, which accounts for trative Control of this Department. 50% of the countrys glass consumption by The budget provisions for the current value. This type of glass is domestically financial year 2014-15 is ` 6.00 Cr for Plan produced and used for soft drinks, and ` 12.20 Cr for Non-Plan activities. alcoholic beverages, food and pharmaceu- Outlay for the 12th Five Year Plan for ticals. NCCBM is ` 35 Cr. The production of Glass Sheet, Toughened Cigarette Industry Glass, Fibre Glass, Glass Bottles during 2012-13 were 1,10,992 th.sq.mtrs; The Cigarette Industry is one of the oldest 35,66,399.00 sq.mtrs, 42,516.00 tonnes, industries in India. It is an important agro- 12,46,501.00 tonnes respectively and based industry. It is a labour intensive during 2013-14 have been 1,27,582.00 industry and provides livelihood directly th.sq.mtrs., 31,91,187.00 sq.mtrs., and indirectly. Cigarette is an item which 38,265.00 tonnes and 9,95,106.00 tonnes requires industrial license before setting respectively. up the industry as per Industries (Development & Regulations) Act, 1951. The export & import of glass & glassware during 2012-13 was ` 320,247.20 lacs & The production of cigarettes during 2012- ` 415,862.85 lacs and during 2013-14 13 was 8,93,642.93 lakh nos. During the (April,13-December,13) is ` 289,295.85 current year 2013-14, the production has lacs & ` 332,990.53 lacs respectively. The been 8,36,785.38 lakh nos. export & import of Float Glass/ Sheets The export and import of tobacco and during 2012-13 was ` 22,487.37 lacs & manufactured tobacco substitutes during ` 50,944.24 lacs and during 2013-14 2012-13 was ` 503,022.16 lacs & ` (April,13-December,13) is ` 19,279.39 lacs 24,695.86 lacs and during 2013-14 and ` 39,432.98 lacs respectively. (April,13-Decmber,13) is ` 454,854.82 lacs Explosives Industry & `18,526.20 lacs respectively. There are 113 Explosives Plants and 118 Glass Industry Site Mixed Explosives Plants in the medium The Indian glass industry consists of seven and Small Scale Sector, engaged in the segments namely sheet & flat glass (NIC- production of explosives. The installed and 26101); glass fiber & glass wool (NIC- production capacity are as under (Table-7.1 & 7.2) 62

66 Table - 7.1 : Number of Licensed Premises/Units Year Explosives Act Petroleum Act Total 2008-09 55581 119663 175224 2009-10 62613 136469 199082 2010-11 79265 182855 262120 2011-12 71420 154167 225587 2012-13 79199 226171 305370 2013-14 97529 153978 251507 Table-7.2 : Production of Explosives for the last 5 years Annual Installed Description 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 Licenced capacity Class 1 Gun Powder (Metric 1595.55 908.10 827.5 688.6 710.6 577 549 Tonnes) Class 2 (a) Cartridges 580386 254807.8 225615.2 183533.7 238193 267275 269999 (b) Site Mixed 1350385 343018.5 389825.7 359943.5 483828 499249 519878 (Metric Tonnes) Class 3 Div 1 (NG) Class 3 Div-2 ** Nil Nil Nil Nil Nil Nil Booster and PETN* (Metric Tonnes) 16418.67 3206 4449.3 3573.8 5063.1 5656.5 6186 Class 6 Div 1 Safety Fuse 268.29 132 123.1 77 81.1 77 74 (Million meters) Class 6 Div 2 Detonating fuse 576.2 334 390.6 284.6 370.6 367.5 427 (Million mtrs) Class 6 Div 3 Detonators 969.05 610 697.5 724.2 970.7 992.2 1031 (million no.) The number of licences issued under the Explosives Act 1884 and Petroleum Act 1934 and the production of Explosives during the last 5 years are given in the above Table. *PETN- Penta Erythritol Tetra Nitrate ** Possession, sale and transport of Class 3 Division 1 (Nitro-Glycerine based explosives has been prohibited since 01/04/2004) 63

67 Leather Industry and skin and semi-processed leather. Leather Industry plays an important role in However, in the last two decades the share the Indian economy in view of its of leather footwear, leather garments, substantial overall output, export leather goods, footwear components and earnings and employment potential. The several articles of leather in the total Leather Industry is the tenth largest exports has increased substantially as a amongst the manufacturing sector of result of the Governments policy to India and is one of the top ten export encourage export of value added leather earners for the country. The leather sector products. provides employment to about 2.5 million Indias Export performance of the Leather people, mainly from the weaker Sector during the last five years is sections/minorities, of which about 30% presented below (Table-7.3). are women. The sector has very strong Wood Based Industry linkage to job creation in rural economy Wood Based Industry in India includes and on social equity. The sector is plywood, veneers of all types and other dominated by small and medium wood based products such as particle enterprises. board, medium density fibre board. The export of leather and leather products Plywood forms the major segment of from India has undergone a structural the wood-based industry in the change during the last two decades. India country. was traditionally the exporter of raw hides (Table-7.3). (Value in Million US$) 2008-09 2009-10 2010-11 2011-12 2012-13 Finished leather 673.37 627.95 841.13 1024.69 1090.22 Footwear 1534.32 1507.59 1758.67 2079.14 2055.93 Leather Garments 426.17 428.62 425.04 572.54 563.48 Leather goods 873.44 757.02 855.78 1089.71 1178.96 Saddlery & Harness 92.15 83.39 87.92 107.54 108.32 Total 3599.45 3404.57 3968.54 4873.62 4996.91 Items of manufacture in the Leather Sector do not attract Licensing Provisions under The Industries Development and Regulation Act 1951. 64

68 Plywood, veneers of all types and other mainly consists of paints, enamels, wood based products such as particle varnishes, pigments, printing inks, board, medium density fibre board have synthetic resins, etc. The Paints & allied been delicensed vide Department of Industry has been exempted from Industrial Policy & Promotions Press Note compulsory licensing, and comprises two th No.11 (1997 Series) dated the 17 sectors, viz. organised sector and small July,1997. scale sector. In terms of Press Note No. 9 (1998 Series) The production of Paints of all kinds, dated 27.8.98, issued by Department of synthetic resins and printing ink during Industrial Policy & Promotion, entrepre- 2012-13 were 7,83,703.71 tonnes; neurs who wish to obtain approval from 1,67,286.00 tonnes and 2,00,345.41 the Government for setting up any wood tonnes respectively. During 2013-14, the based project should obtain prior production have been 7,72,075.00 tonnes; clearance from the Ministry of Environ- 2,12,639.65 tonnes and 1,80,520.00 ment & Forests before submitting the tonnes respectively. applications to the administrative The export & import of paints & allied ministry and enclose a copy of in products during 2012-13 was principle approval given by the Ministry `1,134,657.80 lacs & `7,70,764.28 lacs of Environment & Forests. and during 2013-14 (April,13- The total production of plywood, wood December,13) is `1,088,619.82 lacs & veneer and particle boards during 2012-13 `6,56,847.44 lacs respectively. were 50,455.49 th.sq. mtrs; 1,57,174.00 Soaps & Detergents Industry th.sq. mtrs and 9,371.56 th.sq. mtrs respectively and Production during 2013- Soaps and detergent industry includes 14 have been 48,821.00 th.sq. mtrs; soaps, laundry detergents, dishwashing 1,46,218.56 th.sq. mtrs and 9,116.81 detergents, synthetic detergents and th.sq. mtrs. toilet soaps including bathroom bars. Since these are consumer items, The export & import of wood and articles technology, quality, marketing and of wood during 2012-13 was worth distribution determine the success of units `149,045.69 lacs & `1,474,322.42 lacs and in this sector. The industry has developed during 2013-14 (April,13-December,13) is both in the small-scale and organized worth `144,719.64 lacs & `1,183,646.30 sector. Laundry soap is reserved for lacs respectively. manufacture in small scale sector. Toilet Paints & Allied Products Industry soap is, however, dominated by the multinationals units. The Paints & allied products industry 65

69 The production of Synthetic Detergents, During the current year i.e. 2013-14, the Toilet Soaps and Washing soaps during production has been 11,375.54 2012-13 were 13,94,128.73 tonnes; th.numbers. 7,21,208.14 tonnes and 83,852.20 tonnes The production of clock/watch/time respectively. During 2013-14, the pieces during 2012-13 was 1,26,78,287.00 production have been 13,15,603.13 numbers. During the current year i.e. tonnes; 6,89,892.16 tonnes and 2013-14, the production has been 89,825.70 tonnes respectively. 1,12,20,912.00 numbers. The export and import of Soap, organic The export & import of Clocks and Watches surface active agents, washing during 2012-13 was worth ` 43,554.70 lacs preparations, etc. during 2012-13 was & `162,208.61 lacs and during 2013-14 worth `267,590.96 lacs & `300,551.93 lacs ( A p r i l , 1 3 - D e c e m b e r, 1 3 ) i s w o r t h and during 2013-14 (April,13- `37,149.31 lacs & `140,278.76 lacs December,13) is worth `220,761.37 lacs & respectively. `253,875.17 lacs respectively. Metal Container Industry Watch Industry The principal types of metal (tin) The Watch Industry in India exists both in containers are food containers generally the organised and the small scale sector. known as OTS (Open Top Sanitary) cans and The Associated Chambers of Commerce General Line Containers for packaging and Industry of India (ASSOCHAM) has non-food commodities such as paints, projected that the market size of Indian lubricants, pesticides, etc. watch industry, which is currently estimated at ` 5000 crore, will be worth The production of tin containers during ` 15000 crore, by 2020 due to emergence 2012-13 was `386.18 crores and during of strong middle class and a large number 2013-14 has been 408.60 crores. of high net worth individuals. The The export & import of containers during organized sector of the watch market 2012-13 was worth `24,590.05 lacs & contributes 40% of the total demand and `29,110.65 lacs and during 2013-14 the rest of the demand met by the (April,13-December,13) is worth ` unorganised sector. The prospects for the 21,666.40 lacs & `25,383.91 lacs wrist watch industry in the country are respectively. encouraging since the demand for watches has been growing over the years. Light Electrical Industry Sector The production of wrist watches during The Light Electrical Industry is a diverse 2012-13 was 12,558.00 th.numbers. industry having a number of distinct 66

70 products and sub-products. It includes The production of insulated cable & wires goods like electrical wires and cables of all kinds in 2012-13 was 54.61 lac core industry, transmission tower, cranes, lifts km. and in 2013-14 is 59.45 lac core km. & escalators, refrigerators, washing The export and import of wires and cables machine, air conditioners, storage (HS code. 7413 & 8544) in 2012-13 was batteries, dry cell batteries, electrical ` 3261.66 Crore and ` 4376.71 Crore lamps & tubes etc. A brief of some of respectively whereas in 2013-14 (April these industries is given below:- 2013 December 2013) the same was ` 3538.90 Crore and ` 3415.36 Crore Electrical wires and cable industry respectively. Electrical wires and cable industry is one Transmission Towers of the earliest industries established in the country in the field of electrical Transmission towers support the high products. A wide range of wires and voltage transmission lines which carry cables are manufactured in the country electricity over long distance. These lines which includes communication cables typically feed into sub-station so that the such as jelly filled telephone cables, optic electrical voltage can be reduced to a fibre cables, local area network cables, level that can subsequently be used by the switchboard cables, coaxial cables, VSAT customers. There is an increasing shift in cables, electrical cables such as electrical India to have larger power stations, wires, winding wires, automotive/battery particularly mega and ultra-mega power cables, UPS cables, flexible wires, low projects. Consequently while there would voltage power cables and EHT power be fewer but larger power generating cables. The power cable industry may be stations, the demand for transmission of mainly divided into four segments viz: energy would grow substantially. The house wiring (up to 440V), LT (1.1 to move to integrate India's transmission 3.3kV), HT (11 to 66kV), EHV (66kV and networks through a national grid of inter- above). Well-established R & D facilities regional transmission lines will facilitate are key factors for development of this transfer of power from surplus regions to industry. In India, renowned laboratories deficit regions. The industry has facilities like Central Power Research Institute for testing transmission towers up to 1000 ( C P R I ) , E l e c t r i c a l Re s e a r c h a n d KV with the objective of catering to future Development Association (ERDA) are well growth of transmission systems in the equipped with the most advanced product country as well as to meet the export testing facilities to meet international potential. standards. 67

71 The export and import of transmission industrial sectors. A wide range of lifts and towers (HS Code 730820) in 2012-13 was escalators are manufactured in India. ` 1515.27 Crore and ` 100.53 Crore These include single speed, double speed, respectively whereas in 2013-14 (April- gearless, hydraulic, servo and Variable Dec.) the same was ` 1140.78 Crore and ` Voltage Variable Frequency (VVVF) 89.24 Crore respectively. elevators. Cranes The production of lifts in 2012-13 was ` 1053.34 Crore and in 2013-14 1113.11 Cranes and hoists are an important Crore. The export and import of Lifts, category of material handling equipment Escalators, Conveyers etc. (HS Code required by almost all sectors across the No.8428 ) in 2012-13 was ` 298.25 Crore industry. Wide range of cranes are and ` 2261.16 Crore respectively whereas manufactured in the country and these in 2013-14 (April-Dec.) the same was include Electric Overhead Travelling (EOT) ` 235.35 Crore and ` 1932.57 Crore cranes, mobile cranes, ladle cranes, respectively. hydraulic decks, crab cranes, floating cranes, controller cranes, etc. There is a Refrigerators good potential for growth of this sector in In India, refrigerators have the highest view of increased industrial activities in aspiration value of all consumer durables various fields as well as construction with the exception of television. The industry. refrigerator Industry has become highly competitive since a number of brands The production of cranes in 2012-13 was have entered the market and the 17327 tonnes and in 2013-14 is 17969 consumers have wider choices. There are tonnes. The export and import of cranes two basic designs adopted in refrigerators (HS Code No.8426) in 2012-13 was ` 716.40 presently being manufactured in the Crore and ` 2297.21 Crore respectively country. These are commonly referred to whereas in 2013-14 (April-Dec.) the same as Direct Cool (DC) and Frost Free (FF) was ` 361.53 Crore and ` 903.43 Crore Refrigerators. There has been gradual respectively. consumer preference shift towards frost Lifts and Escalators free segment. Increasing number of dual income households are shifting the The use of lifts and escalators is increasing demand from the conventional 180L rapidly due to substantial investments in refrigerators to the larger 220L and more construction of multi-storied housing capacity refrigerators with double complexes, large malls and supermarkets doors. of international standards, modernization of airports and railway stations apart from The production of refrigerators in 2012-13 68

72 was 8685.45 thousand Nos and in 2013-14 style. The airconditioners market can be is 8420.92 thousand Nos. The export and classified into three segments: window import of refrigerators (HS Code 8418) in AC, split AC and central AC. The split ACs 2012-13 was ` 1225.59 Crore and ` 2248.44 are gaining popularity due to limitation of Crore respectively whereas in 2013-14 space and increase in number of people (April-Dec.) the same was ` 974.72 Crore living in flats in multi-storied complexes and `1538.68 Crore respectively. and also due to less noise. Bureau of Energy Efficiency (BEE), a statutory body Washing Machines under the Ministry of Power has introduced The washing machine market in India can energy efficiency based star rating for air be divided into semiautomatic and conditioners to help consumers buy the fullyautomatic. With rising disposable best energy efficient products. incomes and higher aspirations, there is a The production of air conditioners by the gradual shift towards higher capacity units in the organized sector in 2012-13 washing machines and also towards was 19.60 Lakh Nos and in 2013-14 is 20.07 fullyautomatic washing machines. Lakh Nos. The export and import of air Controls are changing from purely conditioners (HS Code 8415) in 2012-13 mechanical to fully electronic as was ` 365.21 Crore and ` 5073.65 Crore microcontrollers are incorporated into the respectively whereas in 2013-14 (April- designs. While providing intelligence, Dec.) the same was ` 448.76 Crore and ` microcontrollers boost reliability, drive 3343.13 Crore respectively. down costs and improve energy efficiency. Lead Acid Storage Batteries The production of washing machines by Lead Acid Batteries are accumulators of the units in the organized sector in 2012- electrical power which is discharged over 13 was 32.24 Lakh Nos and in 2013-14 is a period of time. They are used in vehicles 34.32 Lakh Nos. The export and import of and also for various industrial uses such as washing machines (HS Code 8450) in 2012- back up power for UPS application, control 13 was ` 103.07 Crore and ` 864.69 Crore rooms, power stations, telecommunica- respectively whereas in 2013-14 (April- tions, etc. In addition, it is also used for Dec.) the same was ` 103.63 Crore and ` emergency lights for houses, telephone 567.69 Crore respectively. systems and as power source for mining, etc. A new application of lead acid Air Conditioners batteries has emerged today in electric Air Conditioners are gradually being vehicles. The average life of the battery is treated as necessity in changed socio- approximately 2 years, hence these economic environment with changed life batteries will be needed as replacement 69

73 throughout the life of the vehicle or the defence, telecommunications and machinery in use. Although there are few electronics. The growing popularity of large scale manufacturers of the product cellular phones, laptops and imported toys in India, there are large numbers of very could open the market for a new range of small scale units in the unorganized batteries that are not produced at present sector. The products manufactured by The production of dry cells in 2012-13 was them normally does not qualify the 1999.96 million Nos and in 2013-14 is required standards as specified by BIS. In 2146.20 million Nos. The export and order to ensure safe disposal of lead acid import of dry cell batteries (HS Code 8506) batteries, Ministry of Environment and in 2012-13 was ` 62.86 Crore and ` 1339.31 forest has issued a notification Batteries Crore respectively whereas in 2013-14 (Management and Handling) Rules, 2001 (April-Dec.) the same was ` 47.35 Crore under Environment (Protection) Act 1986. and ` 514.23 Crore respectively. The production of lead acid batteries by Electrical Lamps and Tubes the units in the organized sector in 2012- 13 was 77.14 Lakh Nos and in 2013-14 Wide range of lamps and tubes are being (April Nov.) 75.94 Lakh Nos. The export manufactured in the country which and import of lead acid batteries (HS code include general lighting service lamps such 8507) in 2012-13 was ` 818.19 Crore and ` as incandescent bulbs, halogen lamps, gas 2523.90 Crore respectively whereas in discharge lamps such as fluorescent tube 2013-14 (April-Dec.) the same was ` light, compact fluorescent lamp, high 678.11 Crore and `3303.82 Crore pressure mercury vapour lamps, metal respectively. halide lamps, low pressure and high pressure sodium vapour lamps and variety Dry Cell Batteries of special lamps. The higher energy cost Dry cell batteries are one of the most have led to the development of energy commonly used items. These are the efficient lamps consuming less power and oldest type of batteries still being used. giving output as close to daylight. Performance of dry cell batteries has Compact Fluorescent Lamps (CFL) which undergone progressive improvements consume about 20% of the electricity for through technological developments. the same light output and last up to 8 New types of dry cell batteries with longer times longer than the GLS are getting more shelf life and greater dependability and popular. LEDs have a great potential to also rechargeable cells have come up. provide highly efficient lighting with little Nickel cadmium batteries and other environmental pollution in comparison to rechargeable batteries are manufactured the incandescent lamps (ICLs) and in the country to meet the requirement of fluorescent lamps (FTLs, CFLs). Penetra- 70

74 tion of LEDs in India could significantly goods industry. reduce lighting load as almost 22-25% of Roller Bearing Industry electricity is consumed for lighting, which is also a major contributing factor of peak Roller bearings are essential components demand. Due to higher costs, LEDs are not in the rotating parts of virtually all very popular even though its production machines such as automobiles, electric has started in the country. motors, diesel engines, industrial machinery & machine tools, etc. Bearings The production of GLS lamps by the units are used in diversified fields. Hence, the in the organized sectors and fluorescent product range is vast and diversified. The tubes in 2012-13 was 784.44 million Nos indigenous manufacturers are and 182.24 million Nos respectively. In manufacturing bearings of quality and 2013-14 production of GLS lamps by the precision at par with world renowned units in the organized sectors and manufacturers. However, bearings for fluorescent tubes was 731.12 million Nos special applications, requiring high and 138.53 million Nos. The export and technology and /or required in low import of electric lamps and tubes (HS volumes are still being imported. There is code-9405) in 2012-13 was ` 739.71 Crore considerable scope for development of and ` 1496.87 Crore respectively whereas bearings of smaller sizes and lighter in 2013-14 (April-Dec.) the same was weight with improved performance in ` 596.10 Crore and `1385.13 Crore harsh operating conditions like higher or respectively. low temperature. Automobile industry Light Engineering Industry Sector accounts for bulk of the total demand of this industry with estimated share of 35%, The light engineering industry is a diverse electrical industry share is 12%, after industry with the number of distinct market (replacement) share is 40% and the sectors. This industry includes mother of remaining 13% consumption is by other all industries like castings and forgings to industries. the highly sophisticated micro-processors- based process control equipment and The production of ball & roller bearings in diagnostic medical instruments.This 2012-13 was 8026.56 million Nos and in group also includes industries like 2013-14 is 7899.64 million Nos. The export bearings, steel pipes and tubes, fasteners, and import of ball & roller bearings (HS etc. The products covered under the code 8482) in 2012-13 was ` 1435.19 Crore engineering industry are largely used as and ` 4847.07 Crore respectively whereas input to the capital goods industry. Hence in 2013-14 (April-December) the same was the demand of this sector in general ` 1681.69 Crore and ` 3655.56 Crore depends on the demand of the capital respectively. 71

75 Ferrous Castings 4739.24 Crore and `350.38 Crore respectively. Ferrous castings are pivotal to the growth and development of engineering Medical and Surgical Instruments industries since these constitute essential Medical and surgical equipment industry intermediates for automobiles, industrial has been playing a critical role in the machinery, power plants, chemical and health care delivery system. Indigenous fertilizer plants etc. Indian foundry manufacturers are currently in a position industry is the fifth largest in the world. to manufacture wide variety of electro This industry is now well established in the medical equipment such as electro country and is spread across a wide cardiograph (ECG machine), X-ray spectrum consisting of large, medium, scanner, CT scanners, short wave small and tiny sector. The salient feature physiotherapy unit, electro surgical units, of the foundry industry in India is its blood chemistry analyzer, etc. However, geographical clustering. Typically, each sophisticated instruments such as nuclear foundry cluster is known for catering to magnetic resonance (NMR) scanners, multi specific end-use markets. For example, channel monitors etc. are not currently the Coimbatore cluster is famous for pump manufactured in the country. Most of the sets castings, the Kolhapur and Belgaum units manufacturing medical equipment cluster for automotive castings, Rajkot are in MSME sector. cluster for diesel engine castings and Batala and Jalandhar cluster for The export and import of medical and machinery parts and agricultural surgical equipment (HS code 9018 to 9022) implements. Advanced countries like in 2012-13 was ` 3851.42 Crore and ` USA, Japan, Germany are unlikely to add 12351.82 Crore respectively whereas in much capacity due to stringent pollution 2013-14 (April-Dec.) the same was ` control norms their. India can thus have a 3810.55 Crore and ` 10169.24 Crore dominant presence in this field and can respectively. become an important casting supplier to Process Control Instrument Industry the world. Process control instruments cover wide The production of steel castings and C.I. range of instruments and systems required castings in 2012-13 was 476754.83 tonnes for monitoring and measurement of and in 2013-14 is 455076.72 tonnes. The physical, chemical and biological export and import of casting (HS code properties. They are used for 7325) in 2012-13 was ` 6100.61 Crore and ` measurement and control of process 462.23 Crore respectively whereas in variables like pressure, temperature, 2013-14 (April-Dec.) the same was ` humidity, liquid level, flow, specific 72

76 gravity, chemical composition including demand. The industry is able to pH and many forms of spectrometry and manufacture tubes up to 14 outer spectrophotometry. The process control diameter. instruments have become an integral part The export and import of seamless steel of the modern industrial activity. This pipes and tubes industry (HS code 7304) in industry is a key industry which provides 2012-13 was ` 2924.75 Crore and ` 5560.01 tools for automation. Their importance is Crore respectively whereas in 2013-14 significant in high cost large and (April-Dec.) the same was ` 2009.72 Crore sophisticated process industries like and ` 3825.15 Crore respectively. fertilizer, steel, power plant, refineries, petrochemicals, cement & other process Electrical Resistance Welded (ERW) industries. Steel Pipes & Tubes. The export and import of process control Based on the end-user customers instruments (HS code 9032) in 2012-13 was requirement, ERW steel pipes and tubes ` 660.70 Crore and ` 2773.56 Crore are available in a variety of quality, wall respectively whereas in 2013-14 (April- thickness and diameter. High performance Dec.) the same was ` 558.20 Crore and ERW steel pipes and tubing possess high ` 2469.33 Crore respectively. corrosion resistance, high deformability, high strength and high toughness. These Seamless Steel Pipes & Tubes pipes are used in fencing, lining pipes, oil Seamless steel pipes and tubes come in all country tubulars, scaffolding, water and kinds of sizes including thin, small, gas conveyance, structural, engineering precise, slender and are used in boilers applications etc. There has been and pipelines. The process of manufacture tremendous increase in the production of imparts strength and durability imparted ERW steel pipes due to higher demand in during the manufacturing process render oil and gas industry, infrastructure and these pipes useful in corrosion resisting automobile uses. There are large number applications. These pipes and tubes are of units in the MSME Sector. extensively use in aircraft, missile and The export and import of ERW steel pipes anti friction bearing, ordinance, etc. and tubes (HS code 73059021,73059029, Ultra high strength and corrosion- 73069011 & 73069019) in 2012-13 were ` resistant properties make these perfect 240.06 Crore and ` 45.20 Crore for oil and gas industry, chemical industry respectively whereas in 2013-14 (April- and automobile industry. Oil sector Dec.) the same were ` 182.22 Crore and accounts for around 60% of total ` 8.9 Crore respectively. requirement of seamless pipes. Bearings and boiler sector contribute around 30% of 73

77 Submerged-Arc Welded (SAW) pipes The production of nuts & bolts in the organized sector in 2012-13 was 96120 There are two types of SAW pipes namely tonnes and in 2013-14 (April Nov.) 62540 longitudinal and helical welded SAW tonnes. The export and import of pipes. Longitudinal SAW pipes are industrial fastener (HS code 7318) in 2012- preferred where thickness of pipe is more 13 was ` 3385.23 Crore and ` 4032.42 than 25mm and in high pressure gas pipe Crore respectively whereas in 2013-14 line. Helical welded SAW pipes are used (April-Dec.) the same was ` 3404.22 Crore for low pressure applications. The cost of and `3188.52 Crore respectively. helical SAW pipes is less than longitudinal pipes. There is huge demand of SAW pipes Steel Forgings in the country due to transportation of oil Forgings are intermediate products used and gas and transmission of water. widely by original equipment The export and import of SAW pipes manufacturers in the production of Industry (HS code 7305)in 2012-13 was ` durable goods. The composition of the 6888.22Crore and ` 188.00Crore Indian forging industry can be categorized respectively whereas in 2013-14 (April- into four sectors - large, medium, small Dec.) the same was ` 2092.49 Crore and and tiny. A major portion of this industry is `47.92 Crore respectively. made up of small and medium units/enterprises (SMEs). The industry was Industrial Fasteners previously more labour intensive but now The fastener industry in India may be with increasing globalization it is classified into two segments: high tensile becoming more capital intensive. Among and mild steel fasteners. High tensile and the industries that depend on forgings are mild steel fasteners broadly include nuts, automotive; agricultural machinery and bolts, studs, rivets and screws. Mild steel equipment; valves, fittings, and fasteners are primarily manufactured by petrochemical applications; hand tools the unorganized sector while high tensile and hardware; off-highway and railroad fasteners requiring superior technology equipment; general industrial equipment; are dominated by companies in the ordnance and marine and aerospace. The organized sector. Automobile industry key driver of demand of forging is the accounts for bulk of the total demand of automobile industry. About 65% of the this industry. Consumer durables and total forging production is used in this railways are the other primary users of the sector. high tensile fasteners. Automobile sector The production of stamping & forging in is likely to drive growth in the fastener the organized sector in 2012-13 was industry. 419807.69 tonnes and in 2013-14 is 74

78 411408.29 tonnes. The export and import fuelled by strong domestic demand for of forging industry (HS code 7326) in 2012- processed food and beverage products 13 was ` 5194.62 Crore and ` 3225.95 spurred by increase in income level, Crore respectively whereas in 2013-14 increasing number of women joining the (April-Dec.) the same was `3982.78 Crore work force, rapid urbanization, changing and `2525.43 Crore respectively. life style and mass media promotion. The most promising areas of growth are fruit Bicycle Industry and vegetable processing, meat, poultry, The bicycle industry of India is one of the dairy & seafood, packaged/convenience most established industries. India is the food, soft drinks and grain processing. second largest bicycle producer of the Food Processing Sector is expected to grow world, next only to China. Most of the at a healthy pace considering the rapid manufacturing units are located in Punjab changes in food habits and consumerist and Tamil Nadu with Ludhiana (Punjab) culture developing in the country. The being a major bicycle production hub. The machinery manufacturers have honed industry is making endeavor for enhancing their expertise in manufacturing dairy export since there is a significant scope for machinery and other core equipment of export of Indian bicycles, bicycle spare food processing machinery. parts and bicycle accessories. Bicycle The export and import of food processing companies in India are now focusing on machinery (HS code 8438) in 2012-13 was ` urban markets and are looking to expand 753.07 Crore and ` 990.60 Crore their base in the professional and respectively whereas in 2013-14 (April- adventure categories. Dec.) the same was ` 676.53 Crore and ` The production of all kinds of bicycles in 674.29 Crore respectively. the organized sector in 2012-13 & 2013-14 Packaging Machinery Industry was 130.46 million nos and 138.36 million nos respectively. The export and import Packaging of consumer products or of bicycle (HS code 8712) in 2012-13 was ` industrial products is emerging as the USP 252.22 Crore and ` 187.94 Crore in the marketing strategies. Develop- respectively whereas in 2013-14 (April- ments in packaging technology have not Dec.) the same was `226.34 Crore and ` only contributed to improving aesthetic 107.14 Crore respectively. appeal of the products but also their shelf life. In some cases specialized packaging Light Industrial Machinery Sector b e c o m e s a t e c h n i c a l n e c e s s i t y. Food Processing Machinery Considering the growth prospects in industrial sector and growing consumer The Indian market for food processing awareness of packaging, it is expected machinery has been growing steadily 75

79 that there would be substantial growth in treatment process and involves the this area. There is a wide range of removal of pollutants that settles or packaging machinery available in the floats. The common industrial equipments country covering packaging of vast range are clarifiers and oil water separator of items. Some of the commonly available devises. The secondary treatment is packing machinery includes machines for designed to substantially degrade the coding and on-line printing machines, biological content of the sewage. The feeding and labeling machines, strip common equipments are activated sludge, packaging, form fill and seal machines, filters, biological reactors, etc. The carton filling, fully automatic bag making tertiary treatment is a polishing step to machinery and automatic micro processor remove contaminants that escape from controlled packaging machines. the primary and also secondary treatment and also removal of suspended solids, The export and import of packaging refractory organics and toxic components. machinery industry (HS code 842220) in Tertiary physical processes are filtration 2012-13 was ` 720.29 Crore and ` 1572.56 and carbon absorption. Chemical Crore respectively whereas in 2013-14 processes are used to remove inorganic (April-Dec.) the same was ` 37.16 Crore and organic, resistant to biodegradation. and ` 250.00 Crore respectively. Chemical process includes precipitation, Water Pollution Control Equipment oxidation and neutralization. The biological processes involve biodegrading. Due to growing awareness of preventing Organisms such as bacteria, fungi, yeasts water pollution and stringent and algae are commonly used to break environmental control standards being down the organic matters. The cell enforced for various uses including tissues are then removed from the treated process industries, the water/waste water by physical method like water treatment industry is poised for clarification. The complete plants are huge growth. The various categories of manufactured mostly in the organized water pollution control equipment sector and many of the equipments are broadly include waste water treatment manufactured in the Small Scale Sector as plants, drinking water treatment plants well. and effluent treatment plants. Water/waste water treatment is the The export and import of Water Pollution process of removing contaminants and it Control Equipment (HS code 842121) in includes physical, chemical and biological 2012-13 was ` 449.03 Crore and ` 389.18 processes to remove physical, chemical Crore respectively whereas in 2013-14 and biological contaminants. The primary (April-Dec.) the same was ` 360.00 Crore treatment is the first step in the and ` 338.00 Crore respectively. 76

80 Air Pollution Control Equipment Industrial Gears Industrialization and urbanization have Industrial gears comprises mainly gears resulted in a profound deterioration of and gear boxes. Gears are used for two India's air quality. India's most severe basic purposes: increase or decrease of environmental problem, comes in several rotation speed and increase or decrease of forms, including vehicular emissions and power or torque. Gears being an important untreated industrial smoke. Air pollution part of a machine have immense usage in the country especially in metropolitan within various industries. These industries cities and large towns has assumed great include automotive industries, coal plants significance with the adoption of stringent industry, steel plants industry, paper environmental control standards for industry, in mining and many more. In various industries. Hence the pollution these industries they behold a wide area of control equipment industry has acquired application. They are used in conveyors, importance. Further judicial pronounce- elevators, kilns, separators, cranes and ments have given a definite direction and lubrication systems. Gearbox is defined as urgency for adoption of air pollution a metal casing in which a train of gears is control measures. The choice of control sealed. The manufacture of gears and gear method depends on factors such as the boxes involve high precision machining nature of pollutant, flow-rate (amount of and accurate assembly as mechanical pollutant emitted), particle size and power is to be transmitted noiselessly and desired collection efficiency. The air with minimum losses. Different types and pollution control equipments are broadly sizes of gears such as spur gears, helical classified under the categories such as gears, worm gears, spiral gears and many Settling Chambers, Cyclone and multi other kinds are manufactured in the cyclones, Bag Filters, Wet Scrubbers, country. The demand for gears and gear Spray Tower, Venturi Scrubber, Ionizing boxes predominantly depend on the Scrubber and Electrostatic Precipitator. growth of industrial machinery, machine The industry is in position to do basic and tools, and consumer & automobile sector. detailed engineering and supply of plants Considering the industrial growth on turnkey basis. prospects, particularly in automobile sector, the demand for gears and gear The export and import of air pollution boxes is expected to grow at a healthy control equipment (HS code 842139) in pace. 2012-13 was ` 356.39 Crore and ` 1094.62 Crore respectively whereas in 2013-14 The export and import of gears and (April-Dec.) the same was ` 377.47 Crore gearing (HS code 848340) in 2012-13 was ` and ` 845.73 Crore respectively. 491.27 Crore and ` 1512.17 Crore respectively whereas in 2013-14 (April- 77

81 Dec.) the same was ` 560.21 Crore and ` Newsprint 1326.07 Crore respectively. Newsprint was under the ambit of the Note : Essential Commodities Act, 1955 and the Source: 1. Export-Import Data Export- activities of the sector were governed by Import Data Bank, D/o the Newsprint Control Order (NCO) 1962. Commerce. In 2004, Newsprint was taken out of the 2. Production Data Industrial essential commodity list and the NCO of Statistics Unit, DIPP. 1962 was rescinded to be replaced by NCO 2004. The mills that get registered under Paper and Paper Board the schedule to this order are exempt from As per industry sources, not much has excise duty, subject to an actual user changed with regards to the capacity condition. There are 119 units registered addition in the paper and paper board under the schedule as on date with a total sector. There are 759 mills producing installed capacity of 2.0 million tons for around 11.8 million tons with a total newsprint production. However, for the consumption of 13.0 million tons1. These year, the production of newsprint was 1.44 capacities cannot be compared to million tons. Unlike the paper and paper international benchmarks of leading board segment, newsprint can be international players. Scandinavian imported in to the country at zero customs countries, USA, the Russian Federation, duty, subject to an actual user condition. China, Indonesia and Japan are the major Imports for newsprint stood at 1.47 million 3 players in the field of pulp and paper. tons for the year 2013-14 . These countries have some of the best Rubber Goods Industry available raw materials for paper production, cutting edge technologies and The Rubber Goods Industry excluding tyre control the global trade. Only a few mills and tubes consists of 4550 small and tiny in India employ state-of-art technologies. units generating about 5.50 lakhs direct jobs. The rubber industry manufacturers a Most items of the paper and paper board wide range of products like rubber cots segment can be imported in to the country and aprons, contraceptives, footwear, at a basic duty of 10%. The average total rubber hoses, cables, camelback, battery duty on the product is about 22% in most boxes, latex products, conveyor belts, cases2. surgical gloves, balloons, rubber moulded goods etc. The main raw materials used by the rubber goods manufacturing industry 1 Industry estimates 2 http://www.cbec.gov.in/customs/cst2012-13/cst1213-idx.htm and http://www.icegate.gov.in/Webappl/duty_details.jsp?cth=48021010&cntrycd= 3 Indian Newsprint Manufacturers Association, www.inma .org.in 78

82 are Natural Rubber, various types of Companies with 60 tyre manufacturing Synthetic Rubber, Carbon Black, Rubber plants. Chemicals etc. The turnover of Rubber Tyre & Tube production during 2013-14 Goods Industry in 2013-14 is estimated to was 2615.47 lakh tyres with a turnover `27500 crore against `25000 crore in 2012- of ` 46,000 crore. 13. Rubber goods worth `6400 crore was exported in 2013-14 as against `5400 crore Three Indian Companies (MRF Ltd., in 2012-13. Apollo Tyres and J&K Tyres) are in the lists of top 25 Global Tyre companies. The performance of rubber goods industry hardly needs any emphasis. From These large tyre companies account healthcare to footwear, high performance approx. 92% of Industry turnover in tyres to conveyer belts are indispensible value and tonnage terms. for countrys infrastructure. All large Indian tyre companies have Tyre & Tube Industry initiated major capacity expansion programmes to the tune of `24,000 Tyres play an integral role to ensure th crore during 12 Five Year Plan period. mobility including movement of passengers and essential goods across the Export of Tyres & Tubes urban and rural landscape of the country Indian tyres are exported to over 75 using all types of vehicles ranging from countries worldwide. Indias share in carts, tractors, trucks and buses to the world tyre market is 5%. During 2012-13, latest generation passenger cars that ply export of tyres was to the tune of `9428.90 on the modern expressways. All types of crore. During (2013-14) tyre export was to tyres required to meet the domestic the tune of `10205.51 crore. demand are manufactured in India. These tyres include moped tyre weighing 1.5 Kg Import of Tyres & Tubes to off road tyres for earthmovers which weigh 1.5 tonnes, bias ply tyres to rugged Tyres are imported @ custom duty of 10%. all steel radial truck tyres to high Tyres are also imported at concessional performance passenger car radial and custom duty under various agreements tubeless tyres, etc. India is one of the few such as Asia Pacific Trade Agreement countries worldwide which has attained (8.6%), ASEANFTA (7%), Indo-Sri Lanka self sufficiency in manufacturing a wide Agreement, Indo-Singapore Agreement, range of tyres for all applications. SAFTA Agreement (5%) and India-Malaysia Trade Agreement (7%). During 2013-14, Salient features of tyre industry import of tyres was to the tune of `2655.20 Indian Tyre industry consists of 39 crore. 79

83 Radialization of Tyres imported by Original Equipment Manufacturers (OEMs). The Committee Radialization of passenger car tyres has last reviewed and finalized a list of 559 reached 98% by the domestic industry and sizes of tyres (not manufactured radialization of truck and bus tyres is 22% domestically) in November, 2013 which at present. All the major tyre companies can be imported by OEMs. This list has have under taken Truck/Bus Radial Tyre been circulated among various manufacturing programmes which will stakeholders. increase the level of radalization to approximately 45-50% by the end of XII Salt Industry Five Year Plan. India is the third largest producer of salt in Quality (Control) Order for Pneumatic the world after China and USA with an Tyres and Tubes for Automotive Vehicles average annual production of about 200 lakh ton. It is the second largest producer A Quality (Control) Order for Pneumatic of iodized salt after China, with an Tyres and Tubes for Automotive vehicles th average annual production of 60 lakh ton. was notified by this Department on 19 At the time of independence, there used November, 2009, in exercise of the power to be a shortfall in production of salt which conferred vide Section 14 of the BIS Act, was met through imports. Since then, 1986. The order prohibits import, sale or India has made tremendous progress in distribution of pneumatic tyres and tubes production of salt, achieving self- which do not conform to the specified sufficiency in 1953 and exporting salt to Bureau of Indian Standards (BIS) standard other countries. and which do not bear the standard mark. This means the manufactures are required Salt is one of the essential items of human to obtain licences from BIS for use of consumption. The per-capita consumption standard mark to enable them to sell or of salt in the country is estimated to be 14 distribute pneumatic tyres and tubes Kg, which includes edible and industrial conforming to the specified standard. The salt. The current annual requirement of Quality Control Order, 2009, has come into salt in the country is estimated to be 60 th force w.e.f. 13 May, 2011. lakh ton for edible use (including requirement of cattle) and 110 lakh ton for In terms of the Clause 3(1) (f) of the said industrial use. India exported 50.04 lakh Quality Control Order, a Committee has ton of salt valued at `679.44 crore in 2012- been constituted under the Chairmanship 13 and 59.61 lakh ton, valued at ` 844.40 of Additional Director General of Foreign crore in 2013-14 . Trade to finalize the list of tyres which are not manufactured domestically and to be Salt is manufactured mainly by solar 80

84 evaporation of sea water, sub-soil brine High purity salt is required for iodization and lake brine. Sea salt constitutes about and the industrial sector. To achieve the 82% of the total salt production in the required level of purity by upgrading raw country. Salt manufacturing activities are salt, Salt Commissioners Office (SCO) has carried out in the coastal states of till date facilitated establishment of 112 Gujarat, Tamil Nadu, Andhra Pradesh, salt washeries /refineries with an annual Maharashtra, Karnataka, Orissa, West installed capacity of 125 lakh ton. All the Bengal, Goa and hinterland State of units are registered with SCO and have Rajasthan. The three major salt producing commenced commercial production. States are Gujarat (79%), Tamil Nadu (11%) Salt Works and Area under Salt and Rajasthan (7%), who also cater to the requirement of other States. Production Under Salt Cess Act 1953, cess is levied on There are about 11931 salt works, mostly salt at the rate of `3.50 per ton but salt in small sector, engaged in production of works having an area up to 10 acres set up salt. The total area under salt production by individuals or group of individuals are is about 6.15 lakh acre.Salt manufacturing exempted. Similar salt works set up over activities provide direct employment to an area measuring more than 10 acres and about 1.09 lakh persons. up to 100 acres is given 50% concession on the cess payable. Salt exported is also Distribution of Salt exempt from payment of cess. Railways play an important role in Private sector contributes to more than transporting salt from the three major salt 91% of the salt production, the public producing States to other states. About sector, about 1.6% and the co-operative 64% of edible salt is transported by rail sector, about 7.4%. from production centres and the rest by The targeted and actual production of salt road/sea. Salt is transported by rail under during the last five years is as (Table-7.4) Preferential Traffic and sponsored programmes on requirement basis. (Table-7.4) Railways grant graded concession in (Figures in Lakh Ton) freight for transportation of non Year Target Production refined iodized salt depending upon 2009-10 190 239.51 distance. 2010-11 200 186.10 Iodized Salt 2011-12 240 221.79 For human consumption, edible salt needs 2012-13 240 245.47 to be iodized to prevent and control Iodine Deficiency Disorders (IDD). SCO has been 2013-14 220 230.19 identified as the Nodal Agency for creation 81

85 of adequate salt iodization capacity, permitted under Open General License monitoring production and quality of (O.G.L) India exports salt to Japan, iodized salt at production centres and Vietnam, UAE, Qatar, Korea, China, monitoring distribution of iodized salt in Malaysia, Nepal, Bangladesh, Indonesia, the country, under National Iodine Bhutan, Hong Kong and Singapore. Export Deficiency Disorders Control Programme of salt during the last five years is as under. (NIDDCP), implemented by the Ministry of (Table-7.6) Health & Family Welfare. SCO has (Table-7.6) facilitated establishment of 777 salt iodization units including 112 refineries & Year Quantity Value ( in Lakh Ton) (in Lakh `) washeries (capacity 125 lakh ton) with an annual installed capacity of 222 lakh ton 2009-10 28.95 40335.45 up to March, 2014. All the salt iodization 2010-11 38.68 52062.45 units are registered with Salt 2011-12 37.72 49225.34 Commissioner. The production and supply 2012-13 50.04 679.44 of iodized salt during the last five years is as under. (Table-7.5) 2013-14 58.47 84439.78 (Table-7.5) (Figures in Lakh Ton) Labour Welfare Activities and Develop- Year Production Supply ment Works for Salt 2009-10 58.23 54.88 (i) SCO is paying special attention to the welfare of labourers engaged in salt 2010-11 62.20 60.19 industry by extending financial 2011-12 62.00 59.70 assistance for executing various welfare schemes, viz. 2012-13 61.81 58.64 - Medical facilities to salt workers 2013-14 58.47 55.08 and their families. - Drinking water facilities in salt works. SCO periodically reviews the availability, price and quality of iodized salt, in - Education facilities and financial association with state governments, assistance to the children of salt iodized salt manufacturers, traders and labourers. other stake holders. - Rest sheds and crches in salt Exports of Salt works. - Recreation facilities to labourers Export of common salt and iodized salt is and their wards. 82

86 (Table-7.7) (Figures in Lakh `) Year Development Labour Welfare Other Works Total Works Works Expenditure 2009-10 54.1 51.67 105.77 105.77 2010-11 62.5 46.23 108.73 108.73 2011-12 73.18 75.02 148.20 148.20 2012-13 5.66 91.44 24.63 121.73 2013-14 33.92 38.13 49.33 121.38 - Cash Rewards to the children of providing scientific know-how for the Salt Workers. construction of salt works and proper brine management and transfer of In addition, financial assistance is technology to the salt manufacturers. provided for undertaking various schemes These are used to impart training to the for the benefit of salt industry. The salt manufacturers/workers for improving expenditure on development and labour the quality of salt by re-modelling and re- welfare works during last five years is as alignment of the existing salt works in given in Table-7.7. association with the scientists of CSMCRI, (ii) Health-cum-Eye Camp & Sports Bhavnagar. The 3rd Model Salt Farm is under Meet construction at Markanam Salt Factory in Tamil Nadu. SCO has organized 27 general health cum eye camps & 8 sports meets for benefit of New Welfare Schemes for Salt Workers salt labourers during the year 2012-13. For With a view to improve the access of the the current financial year, it is proposed to salt workers to healthcare facilities and organise 28 health camps and 9 sports educating salt workers/ artisans for meets. improving the quality of salt to meet the (iii) Model Salt Farms standards prescribed for industrial and edible salt, two schemes namely (1) SCO is making efforts to educate salt Namak Mazdoor Swasthya Bima Yojana manufacturers in general and small salt (NMSBY) and (2) Training for skill up producers in particular for improving the gradation of the Salt Workers, have been quality of salt to meet the stringent approved. standards of industrial salt, in order to compete in the international market. Namak Mazdoor Swasthya Bima Yojana (NMSBY) Two Model Salt Farms (MSF) one in Ganjam in Odisha and the other in Nawa in Namak Mazdoor Swasthya Bima Yojana Rajasthan have been established for aims at financially enabling the salt 83

87 workers community so that they have workers will be covered under the NMSBY. access to standard healthcare facilities. During the entire plan period it is proposed This scheme covers not only the salt to cover 55,000 families. The estimated workers but his / her spouse and two expenditure for the Central Government children also. All salt workers whether would be `13.95 Crore (90%) and the 10% male or female; between the age group i.e. `1.55 Crore would be paid by the 18-60 years and their children of one day beneficiary salt workers. to 25 years or till they become Training for skill up gradation of the Salt independent and/or dependent parents Workers are eligible to be covered under NMSBY. The scheme will be implemented during The scheme for training for skill up 12th five year plan period ending in 2016- gradation of salt workers has been 17. The scheme will include all salt approved and it is going to be workers including those employed in salt implemented during the 12th plan period iodisation units, loading and unloading of ending in 2016-17. A total number of 200 salt at the manufacturing centres. The training programmes costing ` 3.00 crore 90% contribution will be borne by the are proposed to be conducted. One Government of India and remaining 10% by training programme has already been the beneficiaries. During the financial organized at Vedaranyam in Chennai Salt year 2014-15, 5000 families of salt Region in the month of March, 2014. 84

88 8 Chapter Activities of UNIDO Department of Industrial Policy and the 15th Session of the UNIDO General Promotion, Ministry of Commerce and Conference held in Lima, Peru, held from Industry, is the nodal department in 2-6 December 2013, the Lima Declaration Government of India for all matters was adopted highlighting the new related to UNIDO operations in India. The paradigm of UNIDO defined as Towards United Nations Industrial Development Inclusive and Sustainable Industrial Organization (UNIDO) based in Vienna, Development (ISID). UNIDO works Austria, was established in 1966, and towards improving the quality of life of the became a specialized agency of the United worlds poor by drawing on its combined Nations in 1985 to promote industrial global resources and expertise in the development and cooperation at the following three inter-related thematic global, regional, national and sectoral areas: levels. India has been an active member of 1. Poverty Reduction through Productive the Organization since its inception. Activities; UNIDO has at present 172 countries as its members. 2. Trade capacity-building; and Aims and Objectives 3. Energy and Environment. UNIDO is committed to the promotion and Organization and its Policy-making industrialization of the developing Organs countries in order to ensure sustained The Organization is headed by a Director- socio-economic growth. In its role as a General. The main policy making organs of global forum, UNIDO generates and UNIDO are: disseminates knowledge relating to industrial matters and provides a platform General Conference (GC) to the private sector, civil society The General Conference determines organizations and the policy-making the guiding principles and policies of communities in general to enhance the Organization and approves the cooperation, establish dialogue and budget and work programme. Every develop partnerships. four years, the Conference appoints UNIDO aspires to reduce poverty through the Director-General. It also elects the sustainable industrial development. At 85

89 members of the Industrial contribution of US $ 1.2 million to the Development Board and of the Industrial Development Fund (IDF) of Programme and Budget Committee. UNIDO. Both of these contributions are The Conference meets every two made from the Non-Plan provision. This years. contribution has two components; Industrial Development Board (IDB) a) A General Purpose Component of US $ 0.1 million which is utilized by UNIDO The Board has 53 members, elected for its technical cooperation activities for a four-year term on a rotational in developing countries. basis. It reviews the implementation of the work programme, the regular b) A Special Purpose Component of US $ and operational budgets and makes 1.1 million utilized for implemen- recommendations to the Conference tation of projects in India. on policy matters, including the Country Programme of Cooperation appointment of the Director-General. between the Republic of India and The Board meets once a year. UNIDO-2013-17 Programme and Budget Committee The Country Program of Cooperation (PBC) between the Republic of India and UNIDO The Committee consists of 27 was signed in Vienna in September, 2013 members, elected for a two-year by Secretary DIPP and DG, UNIDO. The term. It is a subsidiary organ of the UNIDO Country Program 2013-2017 (CP13- Board which provides assistance in the 17) serves as the portfolio of development preparation and examination of the interventions of UNIDO in India, as aligned work programme, the budget and with the Governments 12th Five Year Plan other financial matters. The and the United Nations Development Committee meets once a year. Action Framework (2013-2017). The Program aims at raising the competiti- Indias Contribution veness of industrial enterprises through India is a founder member of the UNIDO technology-oriented initiatives to and is both a recipient as well as a increase productivity, quality, energy contributor to the programmes of UNIDO. efficiency, occupational health and safety India contributes to the regular budget of and the environmental sustainability of UNIDO, which currently amounts to Euros industrial production. The Program will be 0.5 million annually. In addition, India implemented by UNIDO with a budget to also makes an annual voluntary the tune of US$ 101.15 Million. 86

90 Aims and expected results of the 3. Establishment of enhanced knowle- Country Program 2013-17 dgebase towards sustainable industrial development. The expected results of the CP 13-17 are: Important developments during 2013 1. Expanded private sector develop- ment, particularly MSMEs, through In June 2013, during the Special session of improvements in marketability and the General Conference, Mr. Li Yong from technology, skill-building, increasing Peoples Republic of China was access to finance and expanding elected as the new Director-General of opportunities for indigenous indus- UNIDO. tries. A high-level India delegation visited 2. More sustainable and cleaner UNIDO HQs in Vienna on 5-6 September, industrial development by applying 2103, led by the Secretary, DIPP Shri various technical and policy tools and Saurabh Chandra. During this visit, methodologies. Secretary signed two documents with Visit of DG/UNIDO to India 87

91 DG, UNIDO with Government of India officials in Department of Industrial Policy & Promotion Director-General, UNIDO viz. the UNIDO- UNIDO Centre for South-South Industrial India Country Programme 2013-2017 and Cooperation (UCSSIC), New Delhi Phase II of UNIDO Centre for South-South The UNIDO Centre for South-South Industrial Cooperation. Industrial Cooperation (UCSSIC) was Mr. Yong visited India on 12-14 November, established by UNIDO at New Delhi in 2013 as a part of his Asian mission tour, and December 2006, with full financial held a series of high-level meetings with support of the Government of India. the Government/stake holders in New Phase-I of the Centre was operationally Delhi. During the meeting with the completed in April 2013. UNIDO CSSIC Honble Minister of Commerce and Phase-II commenced in May 2013 for a I n d u s t r y, w a y s t o s t r e n g t h e n period of 5 years. UNIDO CSSICIndia cooperation between India and UNIDO (Phase-2) project document was signed by were discussed. Shri Saurabh Chandra, Secretary, 88

92 technical, financial, managerial, and other resources required within the framework of South-South industrial cooperation, in order to achieve overall development goals. In the Phase-1 of UCSSIC, 10 projects were completed, primarily in the area of agribusiness, renewable energy, cluster development, trade capacity building, entrepreneurship & skill development and capacity building. The majority of UCSSIC projects are designed to benefit Least Signing Ceremony of Agreements for Developed Countries (LDCs). Through India Country Programme and UNIDO Indian technical/resource partners, the Centre for South-South Industrial Centre has been able to leverage Indian Cooperation, India (Phase-2) technology and institutional linkages Department of Industrial Policy & between Laboratories, Universities, Civil Promotion, Government of India and Mr. Li Society Organizations and R&D Yong, Director General, UNIDO in Vienna institutions of various developing/LDCs on 06 September 2013. and India. UCSSIC Projects covered 15 developing countries: 11 in Africa and 4 in The overall developmental goal of the Asia, including 10 LDCs (8 in Africa and 2 in Centres operation is to contribute to Asia). social, economic and environmental development in least developed UCSSIC participated in the Conference on countries, mainly in Africa and Asia. The Africa: A Land of Opportunities held on main objective of the Centre is to enhance 20 November, 2013 organized by PHD South-South industrial cooperation Chamber of Commerce and Industry in between the host country (India) and New Delhi jointly with Ministry of External developing countries by way of (1) Affairs. Event facilitated interaction with identification, design and implementation Ambassadors/High Commissioners/Trade of technical cooperation (pilot) projects Consulars from as many as 20 embassies/ and programmes on a demand-driven basis high commissions of LDCs in Africa based in mainly in LDCs, (2) functioning as New Delhi. External Affairs Minister, matchmaker, catalyst and broker between Government of India delivered the interested development parties. This is valedictory address. realized by identifying and mobilizing 89

93 To begin with, in 2013, DIPP has approved Manufacturing Company Ltd on 2nd May 3 Africa based projects to be undertaken 2013, in New Delhi. by UCSSIC namely- (i) Demonstration and Promotion of Coconut Husk processing for income generation in rural communities Coast Province, Kenya; (ii) Strengthening the technical service capabilities of Kenya Industrial Research and Development Institute (KIRDI); and (iii) Development of Production Capacity and Promotion of Neem Derived Bio Pesticides as low cost and eco-friendly alternative to chemical pesticides in West Africa. The Intellectual Property Rights Advisory Cell of ICAMT continued to provide hand International Centre for Advancement of holding to SMEs in machine tools, plastic Manufacturing Technology (ICAMT), and foundry sectors with inputs and Bangalore services to protect their valuable intellectual property (IP). IP Audits have UNIDO ICAMT promotes manufacturing been conducted across 17 Machine tool technologies and innovations to enhance and Plastic SMES in the year 2013. A industrial competitiveness in India and customized IP Inventory has also been other developing countries. In 2013, made available to each of the Units. UNIDO ICAMT continued the implementa- tion of 3 on-going programmes for Machine Training on Intellectual Property Rights Tools, Plastic and Foundry industries. was conducted for Research Institutions To promote the application of Green Manufacturing Technologies amongst MSMEs, UNIDO-ICAMT launched the compendium on Environmentally- friendly Manufacturing Practices focussing on machine tools, plastics and foundry sectors. The compendium was launched by Mr. Arun Maira, Member, Planning Commission, Government of I n d i a , M s Ay u m i F u j i n o , U N I D O Representative in India and Regional Director for South Asia and Mr Jamshyd N Senior Scientists from CMTI at Training on Godrej, Chairman & MD, Godrej & Boyce IPR, UNIDO ICAMT, Bangalore, July 2013 90

94 such as Central Institute of Plastics Programmes on CNC Turning Centre and Engineering and Technology (CIPET) and CNC Machining Centre for Engineering Central Manufacturing Technology Students and Effective Utilisation of CNC Institute (CMTI) in June and July 2013 Machining Centre (VMC & HMC) for SMEs. respectively. The training served as an eye The trainings were found to be useful in opener on trademarks, patents and copy reduction of cycle time and tooling costs. rights for research scientists and scholars Plastics Project working in the area of plastics and machine tools. Under the National Programme for Development of Plastic Industry in India Machine Tools Project detailed energy audits were conducted at Under the Project for Technology 10 units in the plastic sector in Mumbai, 7 Upgradation and Productivity Enhance- units in Ahmedabad and at 6 units in Delhi/ ment of the Machine Tool Industry, CNC NCR during March August 2013. The audit training programmes for Machine tools comprised of data collection, measure- s e c t o r c o n t i n u e d w i t h Tr a i n i n g ments, performance tests, study of energy Programmes on Part Programming on utilization and current level of Machining Centre; Basic Training performance of utility equipment, Mechatronics Module 2 Expert explaining the process details for high precision spindle assembly, UNIDO ICAMT, Bangalore, June 2013 91

95 Training at CIPET Murthal Mould making Training on Foundry Technology, facility for Delhi NCR cluster Coimbatore, June 2013 calculated efficiency of the machines, Plastics Testing Facility was finalized areas of energy wastages and along with benchmarking of global recommendations for energy saving and biopolymer market scenario, in-depth energy efficiency improvements. The SWOT analysis of the Indian Biopolymer results identified savings up to 9% of total industry and technology evaluation of energy bill. Major saving areas identified CIPET Centres Chennai and included Extruders Heat Loss, Pumps, Air Bhubaneshwar, dealing in testing and Compressor Unload, Leakages research of bio - degradable plastics. &Performance, Refrigeration System, Foundry Project Power Factor, Fans& Blowers, Cooling Tower Fans, Illumination - Electronic Under the Project for Technology Ballast, LED Lamps, and Grinders. Upgradation and Productivity Enhance- ment of the Foundry Industry at Technical trainings were conducted with Coimbatore and Belgaum, technical CIPET during March-July 2013 at Delhi trainings in various areas of foundry Cluster wherein modules on Product technology were conducted. These design & Auto CAD; Mould Making facilities included technical training on Foundry including state of the art CNC machine Technology conducted by Steinbeis Centre operation were covered. Conventional for Technology Transfer at Belgaum and Tool Room Machine and maintenance of Coimbatore from 23-25th June, 2013, and CNC Tool Room Machine Mould were 27-29th June, 2013, respectively which explained through demonstration. covered topics including family of casting Upgradation of Biodegradable Plastics iron, melting process, Moulding Sand Testing Facility at CIPET- the Diagnostic Technology, Shell Core Process and Cold study report on CIPETs Biodegradable Box Process, correct composition of metal 92

96 sand mixing, casting defects and divided Member SMEs have also been trained on blast cupolas etc. for the operator and strategic marketing, in particular the supervisory level staff. principles of professional marketing, marketing tools, evaluation of marketing The training programme on efficient performance and its procedure. The melting practices mainly focused on training emphasized the importance of improving life of furnace lining, reducing leads generation, cold calling and power consumption per ton of liquid targeting was also demonstrated. metal, tips for selection of the capacity & Proposed Business Plans were also shared power input of induction furnaces, basic with interested units. Initiatives in the principles of melting, cement grouting area of product costing have been thickness of the coil and best lining of completed. Cupola designs are being furnace, procedure & tools to be used for changed to improve energy consumption. lining. During a visit to five foundries the procedure of using the induction furnace To provide an exposure to contemporary as indicated in the training was technology and technology trends in demonstrated. foundry sectors, technology mission to Cast-expo 2013, held at St. Louis, USA, was organized for 33 members. 93

97 9 Chapter Foreign Direct Investment FDI means investment by non-resident multilateral initiatives intended to entity/person resident outside India in stimulate the inflow of foreign direct the capital of an Indian company under investment into India. Schedule 1 of Foreign Exchange FDI POLICY Management (Transfer or Issue of Security by a Person Resident Outside India) Government has put in place a liberal Regulations, 2000. policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, Role of Department of Industrial Policy & in most sectors/activities. There is a small Promotion: list of sectors, which are either prohibited The Department of Industrial Policy & for FDI, or are subject to restrictions in the Promotion (DIPP) is the nodal Department nature of equity caps, entry route or for formulation of the policy of the conditionalities. Government on Foreign Direct Investment Further, the FDI policy is reviewed on an (FDI). It is also responsible for ongoing basis, with a view to making it maintenance and management of data on more investor-friendly. Significant inward FDI into India, based upon the changes have been made in the FDI policy remittances reported by the Reserve Bank regime in recent times, to ensure that of India. India remains an increasingly attractive The Department also plays an active role investment destination. DIPP plays an in investment promotion, through active role in the liberalization and dissemination of information on the rationalization of the FDI policy. Towards investment climate and opportunities in this end, it has been constructively enga- India and by advising prospective ged in extensive stakeholder consultations investors about investment policies and on various aspects of the FDI policy. procedures and opportunities. Interna- SECTORS PROHIBITED FOR FDI tional Cooperation for industrial partner- ships is solicited both through bilateral as FDI is prohibited in the following well as multilateral arrangements. It also activities/sectors: coordinates with apex industry associa- (a) L o t t e r y B u s i n e s s i n c l u d i n g tions, in their activities relating to Government /private lottery, online promotion of industrial cooperation, lotteries, etc. through both bilateral as well as 94

98 (b) Gambling and Betting including Group Companies means two or more casinos etc. enterprises which, directly or indirectly, are in a position to: (c) Business of chit fund (i) exercise twenty-six per cent, or more (d) Nidhi company of voting rights in other enterprise; or (e) Trading in Transferable Development (ii) appoint more than fifty per cent, of Rights (TDRs) members of board of directors in the (f) Real Estate Business or Construction of other enterprises Farm Houses Press Note 3 of 2013: (g) Manufacturing of Cigars, cheroots, The government of Karnataka conveyed its cigarillos and cigarettes, of tobacco or intention to permit FDI in multi-brand of tobacco substitutes retail trading in Karnataka. Accordingly, (h) Activities/sectors not opened to Karnataka was added to the states where private sector investment including multi-brand retailers with FDI are Atomic Energy and Railway Transport permitted to open front end stores (other than Mass Rapid Transport Press Note 4 of 2013: Systems) Paragraph 2.1.7 of Circular 1 of 2013- FDI POLICY CHANGES IN 2013 Consolidated FDI Policy', effective from In 2013, Government introduced the April 5, 2013, relating to definition of the following measures for liberalisation/ term control for calculation of total rationalization of the FDI policy: foreign investment i.e. direct and indirect foreign investment, in Indian companies Press Note 1 of 2013: has been amended by the Government. The government of Himachal Pradesh The revised definition of the term conveyed its intention to permit FDI in control will be as under; multi-brand retail trading in Himachal Control shall include the right to Pradesh. Accordingly, Himachal Pradesh appoint a majority of the directors or to was added to the states where multi- control the management or policy brand retailers with FDI are permitted to decisions including by virtue of their open front end stores. shareholding or management rights or Press Note 2 of 2013: shareholders agreements or voting agreements. In order to bring further clarity to the extant FDI policy, group company was Press Note 5 of 2013: defined in the FDI policy as under: The government has reviewed certain provisions of the FDI policy for Multi-brand 95

99 Retail trading (MBRT) as under: retailer and such industry shall continue to qualify as a 'small industry' for this purpose a) Amendment in para 6.2.16.5(1) (iii) of even if it outgrows the said investment of 'Circular 1 of 2013- Consolidated FDI US$ 2.00 million, during the course of its Policy' to read as follows: relationship with the said retailer. At least 50% of total FDI brought in the Sourcing from agricultural co-operatives first tranche of US$ 100 million, shall be and farmers co-operatives would also be invested in 'backend infrastructure' within considered in this category. The three years, where 'back-end infrastruc- procurement requirement would have to ture' will include capital expenditure on be met, in the first instance, as an average all activities, excluding that on front-end of five years' total value of the units. For instance, back-end infrastruc- manufactured/ processed products ture will include investment made purchased, beginning 1st April of the year towards processing, manufacturing, during which the first tranche of FDI is distribution, design improvement, quality received. Thereafter, it would have to be control, packaging, logistics, storage, met on an annual basis. ware-house, agriculture market produce c) Amendment in para 6.2.16.5(1)(vi) of infrastructure etc. Expenditure on land 'Circular 1 of 2013 - Consolidated FDI cost and rentals, if any, will not be Policy' to read as follows: counted for purposes of backend infrastructure. Subsequent investment in Retail sales outlets may be set up only in the back-end infrastructure would be cities with a population of more than 10 made by the MBRT retailer as needed, lakh as per the 2011 Census or any other depending upon his business require- cities as per the decision of the respective ments. State Governments, and may also cover an area of 10 kms around the municipal b) Amendment in para 6.2.16.5(1)(iv)of /urban agglomeration limits of such cities; 'Circular 1 of 2013 - Consolidated FDI retail locations will be restricted to Policy' to read as follows: conforming areas as per the Master/Zonal At least 30% of the value of procurement Plans of the concerned cities and provision of manufactured/ processed products will be made for requisite facilities such as purchased shall be sourced from Indian transport connectivity and parking. micro, small and medium industries which The amendment in the extant FDI policy have a total investment in plant & relating to Multi-Brand Retail Trading in machinery not exceeding US $ 2.00 respect of 'small industry' will bring in a million. This valuation refers to the value balance between the business exigencies at the time of installation, without of the MBRT entity and intent of the policy providing for depreciation. The 'small which is to extend the benefits of the FDI industry' status would be reckoned only at policy in multi-brand retail trading to a the time of first engagement with the 96

100 larger constituency of small industries. Press Note 1 of 2014: The amendment in the provision regarding The Government reviewed the FDI policy 'back-end infrastructure' will give more in Pharmaceuticals sector and decided clarity to the policy. The amendment to that the existing policy would continue the provision regarding location of retail with the condition that non-compete outlets will bring in parity in the policy as clause would not be allowed except in it is proposed to extend such dispensation special circumstances with the approval to all States. of the Foreign Investment Promotion Press Note 6 of 2013: Board. The Government has reviewed the Press Note 2 of 2014: provisions on Foreign Direct Investment The FDI policy on Insurance Sector was policy regarding caps and approval routes reviewed to allow FDI up to 26% in some sectors viz. petroleum & natural (FDI+FII+NRI) under the automatic route, gas; commodity exchanges; power in Insurance Company, Insurance Brokers, exchanges; stock exchanges, depositories Third Party Administrators and Loss and clearing corporations; asset Assessors, subject to certain conditions. reconstruction companies; credit information companies; tea sector FDI INFLOWS including tea plantations; single brand Total FDI into India, since April, 2000, retail trading; test marketing; including equity inflows, reinvested telecom services; courier services and earnings and other capital, is US $ 323.91 defence. billion (April, 2000-March, 2014). Press Note 7 of 2013: During the calendar year 2014 (i.e. during Government has recently reviewed the January-March 2014), FDI equity inflows existing FDI policy on issue of shares by of US $ 7.74 billion have been received. unlisted Indian companies under This represents increase of 41% over the FCCB/ADR/GDR, pursuant to the Foreign FDI equity inflows of US $ 5.48 Billion Currency Convertible Bonds and Ordinary received during the corresponding period shares (Through Depository Receipt (January-March 2013) of the previous Mechanism) (Amendment) Scheme, 2013. calendar year (2013). The unlisted companies shall be allowed During the financial year 2013-14 (i.e. to raise capital abroad without the during April 2013-March 2014), FDI equity requirement of prior or subsequent listing inflows of US $ 24.30 billion have been in India initially for a period for two years received. This represents an increase of subject to certain conditions prescribed 8% over the FDI equity inflows of US$ 22.42 therein. billion received during the corresponding 97

101 period (April 2012-March 2013) of the for prospective overseas investors and to previous financial year (2012-13). act as a structured mechanism to attract investment, is another step towards this Measures Taken for Investment end. Promotion: Global Perspective: Government has been playing an active role in investment promotion, through The UNCTAD World Investment Report dissemination of information on the (WIR) 2013, in its analysis of the global investment climate and opportunities in trends in Foreign Direct Investment (FDI) India and by advising prospective investors inflows, has continued to report India as about investment policies, procedures the third most attractive location for FDI and opportunities. International for 2013-2015. The report also mentions Cooperation for industrial partnerships is that India accounted for more than four achieved through both bilateral as well as fifths of the FDI in South Asia in 2012. multilateral arrangements. At bilateral The Financial Year 2013 survey of the level, this is achieved through a number of Japan Bank for International joint commissions and joint working Cooperation, conducted among Japanese groups, for promoting industrial, investors, continues to rank India as the technical and scientific cooperation with second most promising country for select countries. The Government has also overseas business operations in the set up CEOs Forums/Business Leaders medium term, with Indonesia at the top. Forum with some countries for active For the long-term, India has been rated as business-to-business cooperation and for the top investment destination, with developing a road map for partnership and China being rated as the second. industrial cooperation. The Government, in partnership with various State Ernst & Youngs 2012 Attractiveness Government and Business Associations, is survey has mentioned India as the 1st also making concerted efforts to make global destination for FDI, in terms of regulations conducive for business. In the number of FDI projects followed by addition, it has initiated the Brazil and China. This is due to opening up implementation of the e-Biz Project, a of FDI in various sectors, including multi- Mission Mode Project under the National e- brand retail and telecom. Governance Project, to provide online The 2012 A.T. Kearney confidence Index registration and filing payment services, rates India fifth in terms of future to investors and business houses. The prospects for FDI inflows, after USA, China setting up of Invest India, a joint venture Brazil, Canada followed by Australia, company between the Department of Germany, U.K., Mexico, Singapore, Russia Industrial Policy & Promotion and FICCI, as and France. a not-for-profit, single window facilitator, 98

102 10 Chapter Investment Promotion & International Cooperation Investment Promotion and International (i) Organization of Joint Commission Cooperation (IP&IC) for enhancement of Meetings; external economic engagement is (ii) Organization of business and undertaken through bilateral as well as investment promotion events; multilateral arrangements. There are four IP&IC divisions in DIPP to carry out the said (iii) Project Management, Capacity functions, viz. IP&IC-I (AsiaOceania Building, Monitoring and Evaluation; region), IP&IC-II (Europe), IP&IC-III (North (iv) Establishment of G2B portal/ e-Biz & South America and CIS Countries) and Pilot Project; IP&IC-IV (Africa). (v) Foreign Travel; IP&IC Divisions are responsible for dissemination of information about (vi) Setting up of country focus desks for investment climate and opportunities in promoting investment; India and investment facilitation. (vii) Multi media audio visual campaign; IP&IC Divisions endeavor to increase and economic cooperation with developing, as (viii) Creation of a dedicated investment well as developed countries, for mutual promotion agency. benefits through different fora, such as Joint Commissions/ Joint Committees, The main objectives of this scheme are: other bilateral channels like interaction with the delegations visiting the country, (i) Promotion of investment, including organizing visits abroad for discussions on FDI, by way of dissemination of issues of mutual interest and business/ information on the investor friendly investment meets between Indian and climate and opportunities available foreign entrepreneurs, with the in the country, by bringing out aim of stimulating foreign investment into various publications/ publicity India. materials in print/ electronic form, organizing investment promotion IP&IC Divisions implement the Scheme events, such as road shows, for Investment Promotion which has the seminars, etc., in potential following components:- countries in association with 99

103 Industry Associations, Indian Missions Economic, Trade, Industrial, abroad and assisting the State Scientific, Technological and Governments in undertaking various Cultural Cooperation. investment promotion activities; (iv) The India-Sweden Joint Commission (ii) Providing financial assistance to the for Economic, Industrial, Technical Apex Industry Associations, etc. for and Scientific Cooperation. organizing various investment (v) The India-Poland Joint Commission promotion and business meets in for Economic Cooperation. India and abroad/ undertaking of various investment promotion The major activities undertaken by IP&IC activities; Divisions during 2013-14 were as under: (iii) To implement e-Biz Project, which World Economic Forum 2013: CIM led a aims at providing a single window high level official cum business delegation electronic Government Industry to Davos (Switzerland) on January 23-25, interface, to establish a Government 2013 and participated in the Annual to Business (G2B) portal with the aim Meeting of World Economic Forum (WEF) of creating a one stop shop for and had bilateral meetings. convenient and efficient services to Investment Round Table, London: CIM foreign and domestic investors, led an official delegation to London on business and industry, by facilitating February 8, 2013, to participate in online filing of various approvals/ Investment Round Table where he also had clearances, requests and periodical bilateral meetings. reports; and India-UAE High Level Task Force (HLTF) (iv) Creation of a dedicated investment on Investments: The 1st meeting of India- promotion agency, namely Invest UAE High Level Task Force on Investments India, which has since been set up. (HLTFI) was held on February 18, 2013, at IP&IC Divisions act as nodal point for the Abu Dhabi, UAE. CIM led the following Joint Commissions/ Inter- Indian delegation and co-chaired the Governmental Commissions: meeting. (i) The India-Libya Joint Commission Organization of Investment Round Tables (IRTs): 5 Investment Round Tables (ii) The India-Hungary Joint Commission were organized to celebrate the 20th on Economic Cooperation. anniversary of India-ASEAN Dialogue (iii) T h e I n d i a - B e l a r u s I n t e r relations in Bangkok, Thailand on March Governmental Commission for 19, 2013; Jakarta, Indonesia on March 21, 100

104 2013; Kuala Lumpur, Malaysia on March 26, visit to Japan with a high level official and 2013; Singapore on May 15, 2013; and Ho- business delegation on May 16-18, 2013, chi-Minh City, Vietnam on June 26, 2013, for a comprehensive review of bilateral in association with Invest India, Ministry of economic engagement with Japan. He External Affairs (MEA) and respective held detailed discussions with his Embassy of India. counterpart Minister of Economy, Trade and Industry (METI), Japan. BRICS Summit: 5th BRICS Summit was held on March 27, 2013, at Durban, South India-Japan Business Leaders Forum Africa. CIM participated in several (IJBLF): The 4th meeting of the India- engagements during the period March 25- Japan Business Leaders Forum was held 27,2013. BRICS Business Council was on May 29, 2013, in Tokyo, Japan, during launched during the Summit. the visit of Honble Prime Minister to Japan. India-Zimbabwe Joint Trade Committee (JTC): CIM led an official delegation to Visit of CIM to Myanmar: CIM lead participate in the India-Zimbabwe Joint delegation to the East Asia World Trade Committee (JTC) at Harare, Economic Forum (WEF) convened at Nay Zimbabwe during March 27-28, 2013. Pyi Taw, Myanmar on June 5-7, 2013. During the visit he also called on President Investment Round Table, Geneva: CIM U Thein Sein, and met Ms Aung San Suu Kyi, participated in Investment Round Table on Chairperson, National League for April 8, 2013, at Geneva, Switzerland. Democracy. He also held bilateral India-Germany Inter Governmental meetings with Minister of Commerce, Consultations: CIM visited Germany on Minister of Energy and Minister of April 10-11, 2013, as a part of Prime Communications & Information Ministers led delegation for India- Technology of Myanmar. He also Germany Inter Governmental Consult- inaugurated the 1st meeting of the India- ations and had bilateral meetings. Myanmar Joint Trade and Investment Forum (JTIF). CIM's visit to the Russian Federation: CIM held bilateral discussions with the Russian CIMs visit to Finland: CIM led a Ministers during his visit to the Russian delegation to Finland on June 18-19, 2013, Federation on April 11-12, 2013. He also and attended various bilateral and held meeting with Mr. Viktor Khristenko, investment related engagements. Chairman of the Eurasian Economic St. Petersburg International Economic Commission. Forum: CIM led a delegation to participate Visit of CIM to Japan: CIM paid a bilateral in the XVII St. Petersburg International 101

105 Economic Forum (SPIEF) during June 20- bilateral meetings during his visit to Paris. 22, 2013.He also had bilateral meeting CIM's USA visit: CIM held bilateral with the Russian leaders. d i s c u s s i o n s w i t h t h e U S Tr a d e Global India Business Meeting (GIBM): representative, Mr. Michael Froman in CIM led an official cum business Washington, during his official visit to USA delegation to Belfast, Northern Ireland in July 10-14, 2013. CIM discussed a range on June 23-24, 2013, and attended of bilateral issues from the perspective of Global India Business Meeting (GIBM), advancing the agenda of India-US trade 2013. and economic engagement and strengthening of India-US Strategic CIMs visit to London: CIM lead an official Partnership. CIM also had talks on bilateral cum business delegation to London on issues with Ms. Penny Pritzker, the US June 25-26, 2013, and attended various Commerce Secretary and met business official, business and investment related leaders in USA. engagements. India-US CEOs Forum: A meeting of the Visit of CIM to Mauritius: CIM visited India-US CEOs Forum was held in Mauritius to take part in the Indian Ocean Washington on July 12, 2013, during the Rim Association for Regional Cooperation visit of CIM to USA. This was co-chaired by Economic and Business Conference (IOR Sri Ratan Tata and David Cote. In addition ARC EBC) which was co-hosted by India to the American and Indian CEOs, many and Mauritius on July 4-5, 2013. A 40 senior Indian and U.S. officials member strong business delegation led by participated including Finance Minister P. Ms. Naina Lal Kidwai, President, FICCI also Chidambaram, CIM, USTR Michael accompanied the official delegation. Froman, and Deputy Chairman, Planning During the visit,CIM also held bilateral Commission Mr. Montek Singh Ahluwalia, meetings with Mr. Taira Masaki, US Treasury Secretary, Jacob J. Lew, Parliamentary Vice-Minister of Japan, Mr. Commerce Secretary Penny Pritzker. Kelvin Thompson, the Minister from Australia, Mr. Cader Sayed Hossen, his India-Russia Forum on Trade and Mauritian counterpart and Dr. Arvin Boolel investment: The VIIth India-Russia Forum Minister of Foreign Affairs, Regional on Trade and investment was held in St. Cooperation and International Trade, Petersburg, Russian Federation on Mauritius. September 20, 2013. A strong official cum business delegation led by CIM Indo-French CEOs Forum: The 6th participated in the Forum. Three business meeting of the Indo-French CEOs Forum Round Tables on Pharmaceutical and was held on July 8-9, 2013 at Paris. The Medical Industry, Tourism and Medical meeting was attended by CIM. He also had 102

106 Tourism and Mutual Trade of Consumer Modernization and Industrial Cooperation Goods were held during the Forum which was held in Moscow on October 2, 2013, were attended by senior government which was co-chaired by Secretary IPP official from the ministries concerned of from the Indian side and Deputy Minister the two countries and business of Trade and Industry, Russian Federation. representatives. A protocol signed at the conclusion of the meeting identified specific areas of 3rd Joint Trade Committee Meeting at industrial cooperation between the two Dar-Es-Salaam, Tanzania: The 3rd Joint countries in Civil Aviation, Fertilizer, Trade Committee Meeting and India Show Mining and Modernization of industries. was organized at Dar-Es-Salaam, Tanzania during September 25-26, 2013. Minister of India-Russia Working Group on Priority State for Commerce and Industry led an Investment Projects: An India-Russia official cum business delegation to the Working Group on Priority Investment event. Projects was constituted with the objective to identify specific industrial India Africa Business Council (IABC): The projects which need to be implemented India-Africa Business Council (IABC) was on priority basis. The first meeting of the established during India-Africa Trade Working Group on Priority Investment Ministers Meet held on the sidelines of Projects was held in Moscow on October 2, India Africa Forum Summit-II in May 2011, 2013, and was co-Chaired by Secretary, with the aim to have an institutional IPP from the Indian side and Deputy platform for sustained exchange of Minister of Economic Development of the business communities between India and Russian Federation. A protocol and a joint Africa. The second meeting of IABC was statement were issued on the conclusion held on October 01, 2013 at Johannesburg of the meeting. in South Africa in conjunction with 3rd India-Africa Trade Ministers Meet under India-Indonesia CEOs Forum: The 1st the Co-Chairmanship of Shri Sunil Bharti meeting of IndiaIndonesia CEOs Forum Mittal, Co-Chairman, IABC from the Indian was organized during CIMs visit to side and Dr. Bright Chunga, acting Co- Indonesia on October 10, 2013, in Jakarta, Chair from the African side. A Joint Indonesia. Statement was adopted during the India Russia CEOs Council: Two meetings meeting. of the India Russia CEOs Council were held I n d i a - R u s s i a Wo r k i n g Group on during the SPIEF 2013 in St. Petersburg in Modernization and Industrial June 2013 and the Annual Summit in Cooperation: The second meeting of Moscow on October 21, 2013. Both sides I n d i a - R u s s i a Wo r k i n g Group on discussed the issues and opportunities for 103

107 enhancement of economic engagements approved for implementation under 2nd between the two countries. India Africa Forum Summit (IAFS-II) with a view to sharing Indias experience in India- Australia CEOs Forum: The 3rd attracting FDI and building relationship meeting of the Forum was held on with relevant agencies during January 21- December 6, 2013, in Melbourne, 25, 2013, at TERI, Gurgaon. 23 participants Australia. The meeting was held under the from 15 African countries participated in co-chairmanships of Mr. Naveen Jindal and the programme. Mr. Lindsay Fox. Partnership Summit 2013: The 19th World Economic Forum 2014: CIM led a Partnership Summit was organised by the official cum business delegation to Davos Government of India on January 27-29, (Switzerland) on January 22-25, 2014, and 2013, in Agra, Uttar Pradesh in association participated in the Annual Meeting of with the State Government of Uttar World Economic Forum (WEF) and had Pradesh and the Confederation of Indian bilateral meetings. Industry. The theme of the Summit was Investment Round Table, Davos: CIM Global Partnerships for Enduring participated in Investment Round Table on Growth. January 23, 2014, at Davos, Switzerland. India-Korea Joint Investment Promotion CIM visited Zimbabwe & Namibia from 3rd Committee (JIPC): The 4th meeting of to 6th February, 2014, to participate in India-Korea Joint Investment Promotion bilateral meetings in Zimbabwe, review Committee (JIPC) was held in New Delhi on the issues of 2nd India-Zimbabwe Joint February 15, 2013, under the Trade Committee (JTC) held in March, Chairmanship of Secretary, DIPP. 2013, bilateral meeting in Namibia and to NID Exhibition: An exhibition titled review the India-SACU PTA ongoing Basketry Dialogues : Connecting Cultures negotiations in Namibia. of basketry products in bamboo and sisal Major Conferences, Bilateral/ Joint fibre developed by Zimbabwean basket Commission Meetings and Investment weavers under the project Design Promotion Events in India: Interventions for the Basketry Craft for Empowerment of Craft Women/Artisans of Invest India Training Workshop: Invest rural Africa approved for implementation India organized a five days Training under IAFS-II, was organized by this Workshop for delegates from African Department in association with NID at Investment Promotion Agencies under the Indira Gandhi National Centre for Arts, Project Capacity Building of African New Delhi, during March 2-6, 2013. I n v e s t m e n t Pr o m o t i o n A g e n c i e s 104

108 CII: Training Programme to strengthen was co-chaired by Sri D.V.Prasad, Joint Chambers/Industry Associations: The Secretary, DIPP from the Indian side. This project undertaken by CII aims to train 90 meeting identified the issues and delegates from African Chamber of investment & trade opportunities Commerce/Industry Associations. The between the two countries. Second Programme under IAFS-II, for the India-Belarus Inter Governmental senior representatives of Apex Chambers Commission (IGC): The 6th meeting of the of Commerce / Industrial Associations India-Belarus IGC was held in New Delhi on from African countries, was organized July 24, 2013, under the co-chairmanship during March 17-28, 2013, at New Delhi. of Minister of State (Commerce and 27 participants representing 17 countries Industry) and at the conclusion of the (Algeria, Botswana, Burkina Faso, meeting a protocol was signed highlighting Burundi, Cote d'Ivoire, Ethiopia, Gambia, the potential areas of bilateral Mali, Malawi, Namibia, Nigeria, Senegal, cooperation. Tanzania, Togo, Tunisia, Zambia and Zimbabwe) participated in the Secretary-Vice Minister level Economic programme. Consultation between India and Taiwan: The 7th Secretary-Vice Ministerial level India-China Secretary-Vice Ministerial Economic consultation between India and level meeting: A Secretary level meeting Taiwan was held on September 3, 2013, in was held under the Chairmanship of New Delhi, under the Chairmanship of S e c r e t a r y, D I P P o n I n d i a - C h i n a Secretary, DIPP. cooperation on investment promotion including signing of MoU for cooperation India-Japan Ministerial Dialogue and on Industrial Parks with the delegation led Government-Business Dialogue: A by the Vice Minister, Ministry of Commerce Minister level meeting between CIM and (MOFCOM), Peoples Republic of China on Mr. Toshimitsu Motegi, Minister of May 15, 2013, in New Delhi. Economy, Trade and Industry, Japan was held in New Delhi during the latters visit India-China CEOs Forum: The 1st to India on September 11, 2013, to meeting of IndiaChina CEOs Forum was enhance cooperation between the two organized during the visit of the Chinese countries. The two ministers shared the Premiere Mr. Le Keqiang to India on May view that Japan and India will work 20, 2013, in New Delhi. together for strengthening economic India-Belarus Joint Working Group cooperation. A joint statement containing (JWG) on Trade and Investment: The 1st Japan-India Investment Promotion Plan meeting of the India-Belarus JWG was held was also issued. in New Delhi on July 23, 2013. The meeting 105

109 India Poland Joint Commission Meeting: India-Japan Business Leaders Forum: The 3rd session of the India-Poland Joint The meeting of the Forum was held on Commission on Economic Cooperation was January 25, 2014, in New Delhi. held on October 8, 2013, at New Delhi. India-Malaysia CEOs Forum: The 6th The Indian side was led by Mr. Saurabh Meeting of India-Malaysia CEOs Forum was Chandra, Secretary, DIPP and Polish side held on January 27, 2014, in Bangalore was led by Mr. Jerzy Witold Pietrevicz, during Partnership Summit 2014. The Secretary of State. A protocol was signed meeting was addressed by CIM. during the meeting. Partnership Summit 2014: The 20th Indo-UK Joint Economic and Trade Partnership Summit was organised by the Committee (JETCO): The 3rd meeting of Government of India on January 27-29, the Indo-UK Joint Economic and Trade 2014, in Bengaluru, Karnataka in Committee (JETCO) was held on association with the State Government of December 9, 2013, at New Delhi. Karnataka and the Confederation of Indian India-Hungary Joint Commission Industry. The theme of the Summit was Meeting: The 3rd session of Indo-Hungary Emerging Global Value Chain : Building Joint Commission on Economic Partnership. Cooperation was held in New Delhi on India-UAC High Level Task Force on October 15, 2013. The Indian side was led Investment (HLTFI): The 2nd meeting of by Mr. Saurabh Chandra, Secretary, DIPP the Task Force was held on March 3, 2014, and the Hungarian side was led by Mr. in Mumbai. The meeting was addressed by Peter Szijjarto, State Secretary for CIM. Foreign Affairs and External Economic Relations of the Prime Ministers Office. A 10th CII-EXIM Bank Conclave on India- protocol was signed during the meeting. Africa Project Partnership was organized at New Delhi from 9-11th March, 2014. India-Japan Cooperation on Investment Promotion: A Secretary level meeting was 8th CII Industrial Services Training held under the Chairmanship of Secretary, Programme (8th ISTP), a project under DIPP on India-Japan cooperation on India-Africa Forum Summit-II (IAFS-II), investment promotion including was organized for representatives from cooperation on Creative Industries with African Chambers of Commerce/ the Japanese delegation led by Vice- Industrial Associations from 9-18th March Minister for International Affairs, Ministry 2014, at New Delhi. of Economy, Trade & Industry (METI), Visiting Delegations/ Dignitaries: Japan on December 18, 2013, in New Delhi. CIM and MoS (C&I) had discussions with the 106

110 following visiting dignitaries/ delegation: Mr. Paulo Portas, Minister of Foreign Affairs, Portugal, March 05, 2013, New Lord Green, Minister of State for Trade Delhi. and Investment, UK, January 15, 2013, New Delhi. President, European Bank for Ministers of Zimbabwe, Guinea and Reconstruction and Development Tanzania on the sidelines of (EBRD), March 06, 2013, New Delhi. Partnership Summit 2013, January 27- Sheikh Nasser Sabah Al Ahmad Al-Jaber 29, 2013, Agra. Al-Sabah, Minister, Amiri Dewan On the sidelines of Partnership Summit Affairs, Kuwait, March 11, 2013, New 2013. held on January 27-28, 2013, Delhi. CIM had bilateral meetings with Mr. Dr. Martin Kuba, Minister of Industry & Bill Pavleski, Minister for Foreign Trade, Czech Republic, March 12, Investments, Macedonia, Mr. Kristof 2013, New Delhi. Szatmary, Minister of State for Economy Regulation, Hungary and Mr. Mr. Daniel Kablam Duncan, PM of Cote Radovan Zerjav, Deputy Prime Minister DIvoire and his counterpart ministers for Economic Development & from Senegal, Mozambique, Zambia, Technology of Republic of Slovania. Rwanda, Djibouti on the sidelines of 9th Mr. Nicole Bricq, Minister for Foreign CII-EXIM Bank Conclave, March 18, Trade, France, February 14, 2013, 2013, New Delhi. Delhi. Mr. Amara Konneh, Finance Minister of Mr. Cadre Sayed Hossen, Minister of Liberia on the sidelines of 2013 Spring Industry, Commerce & Consumer Meetings of IMF/ World Bank, April, Protection of the Government of 2013, New Delhi. Mauritius, February 15, 2013, New Delhi. Mr Daniel Bahr, Federal Minister for Health of the Federal Republic of Mr. Hatim Sale, Minister of Industry Germany, April 25, 2013, New Delhi. and Foreign Trade, Egypt, March, 2013. Mr Paul Hermelin, CEO, Capgemini and Special Representative of France for Meeting of MOS(C&I)s with Ms. Economic Relations with India, April Elizabeth Thabethe, Dy. Minister of 25, 2013, New Delhi. Trade & Industry, South Africa, March 04, 2013. Dr. Joe Phaahla, South African Deputy Minister of Arts and Culture, April 26, 2013, New Delhi. 107

111 The First Vice Prime Minister of Ms. Nguyen Thi Hong, Vice Chairperson Kyrgyzstan Republic, May 3, 2013, New of the Peoples Committee of Ho Chi Delhi. Minh City, Vietnam, October 22, 2013, New Delhi. A five member MPs delegation led by Mr. Lee Hahn-koo, Leader of Saenuri Mr. Niwattumrong Boonsongpaisan, Party of Korea, May 24, 2013, New Deputy Prime Minister and Minister of Delhi. Commerce, Thailand, October 23, 2013, New Delhi. Mr. Murray McCully, Minister for Foreign Affairs and Minister for Sports, Mr. Jan Kohout, Minister of Foreign New Zealand, June 4, 2013, New Affairs, Czech Republic, November 7, Delhi. 2013, Delhi. Mr. Ahmed Shede Mohamed, State Mr. Terje Rd-Larsen, President of the Minister of Finance and Economic International Peace Institute (IPI) and Development of Ethiopia, June 13, former Deputy Prime Minister of 2013, New Delhi. Norway, November 7, 2013, New Delhi. Dr. Linus Von Castelmur, Ambassador of Switzerland, India, August 8, 2013, Mr. Borge Brende, Minister of Foreign New Delhi. Affairs, Norway, November 11, 2013, New Delhi. Ms. Lilianne Ploumen, Minister for Foreign Trade & Development Mr. Onkokame Kitso Mokaila, Minister Cooperation, Netherlands, September of Minerals, Energy and Water 3, 2013, New Delhi. Resources, Botswana, November 11, 2013, New Delhi. Mr. Naftali Bennett, Minister of Economy, Religious Services, and Mr Radoslaw Sikorski, Minister of Jerusalem and Diaspora Affairs, Israel, Foreign Affairs of Poland, November October 8, 2013, New Delhi. 13, 2013, New Delhi. Mr. Alexander Stubb, Minister for Mr. Oliver Letwin, Minister of European Affairs and Foreign Trade, Government Policy, Cabinet Office, Finland, October 15, 2013, New Delhi. UK, November 13, 2013, New Delhi. Mr. Richard Bruton, Minister for Jobs, CIM participated in delegation level Enterprise and Innovation, Ireland, talks between Honble Prime Minister November 19, 2013, New Delhi. and Mr Viktor Orban, Prime Minister of Hungary, October 17, 2013, New Delhi. 108

112 Mr. Joaquin Almunia, Vice President of 10, 2014, Mr. Armando Inroga, Minister the European Commission, November for Industry & Commerce, 22, 2013, New Delhi. Mozambique; Mr. MvoubaIsidore, Sr. Minister, Minister of Industry, Republic Her Imperial and Royal Highness of Congo; Mr. Sekhulumi Nisosole, Princess Astrid and Mr. Didier M i n i s t e r o f Tr a d e , I n d u s t r y, Reynders, Deputy PM and Minister for Cooperative & Marketing, Lesotho and Foreign Affairs, Foreign Trade and Mr. M.C. Bimha, Minister of Trade & European Affairs, Belgium, November Industry, Zimbabwe on March 11, 25, 2013, New Delhi. 2014, on the sidelines of 10th CII-EXIM Sir James David Bevan KCMG, British Bank Conclave on India-Africa Project High Commissioner to India, Partnership, New Delhi November 29, 2013, New Delhi. (d) Other Important Activities: Dr. Vince Cable, Secretary of State for Cooperation in the field of advanced Business, Innovation and Skills, UK, training of corporate executives from December 9, 2013, New Delhi. India in Germany through Indo-German Mr. Mounir Fakhry Adbel Nour, Minister Managers Programme of Industry & Foreign Trade, Egypt; Mr. As part of the Joint Declaration signed M.C. Bimha, Minister of Industry & between India and Germany in 2008, Commerce, Zimbabwe; Mr. Carl Indian managers have been undergoing H.G.Schlettwein, Ministry of Trade & training in Germany. The programme has Industry, Namibia; Sayyad Abd-Al- been extended till 2014 through a new Cader Sayed Hossen, Minister of Joint Declaration signed in 2012. The 1st Industry, Commerce and Consumer meeting of the Steering Committee of the Protection, Mauritius, January 27-29, Indo-German Managers Programme was 2014, on the sidelines of Partnership held in Berlin on January 13, 2014. It was Summit in Bangalore. decided in the meeting that the Programme would continue beyond 2014 Mr. NihatZeybekci, Minister of also by signing another Joint Declaration. Economic Affairs, Turkey during 10th Session of India-Turkey JCETC, The programme is being implemented by January 31, 2014, New Delhi. Deutsche Gesellschaft fr Internationale Zusammenarbeit (GIZ), GmbH, from Mr. Elsmaih EI Siddig, Minister of Trade Germany and CII and FICCI from India. and Industry, Sudan and Ms. Claudine DIPP is handling the inter-se coordination Munari, Minister of Trade, Republic of between the two sides. About 250 Indian Congo (Congo Brazzaville) on March 109

113 managers have undergone the training craftsperson (20 from each country) since the launch of the programme. participated. Projects under India Africa Forum (b) Invest Indias India-Africa Investment Summit-II E-Portal: India-Africa Investment E-Portal aims to provide details on the overall (a) NID Workshop on Rural Crafts Women investment scenario, including investment of Africa: The National Institute of Design opportunities and policies in Africa and (NID) is implementing a project Design India. India Africa Business Guides and E- Interventions for the Basketry Craft for Newsletters being brought out by Invest Women/Artisans of rural Africa approved India are available at the portal. Number for implementation under Second India- of visits to the E-portal is more than 6000 Africa Forum Summit (IAFS-II). The project per month since January, 2013. focuses on empowering the rural, women basketry weavers of five African countries (c) Invest Indias India Africa Business namely - Zimbabwe, Ethiopia, Ghana, Guides & E-Newsletter: Under the Malawi and Zambia. Under the project, it is proposed to bring out India- programme, 125 training positions are Africa Business Guides for five regions of being offered for the crafts-women and Africa. The Business Guides will highlight artisans from five African countries over investment policies in important countries three years to empower them. The of each region, sectors of importance in training programme for Zimbabwe has each region, processes involved in setting since been completed in March, 2013. up business, taxation issues, important Ghana & Ethiopia have been identified for projects, etc. undertaking the training programme The Guide for ECOWAS was released by CIM during 2013-14. at the India Show at Accra, Ghana, in July In-field Need Assessment Visit-cum-First 2012. Remaining four Guides are proposed Workshop in Ghana and Ethiopia was to be released during 2013-14. successfully completed in October 2013. Invest India is also bringing out monthly E- The second Training of Trainers Workshop newsletters. The E-newsletters are being for Ghana and Ethiopia has been held at circulated to numerous contacts including NID, Ahmedabad, in December, 2013, Indian businessmen, corporates and select wherein a total of 40 weavers/ Indian Missions. 110

114 11 Chapter Protection of Intellectual Property Rights Introduction World Intellectual Property Organization (WIPO), a specialized agency of the United Intellectual Property Rights are private Nations. India became a member of WIPO rights recognized within the territory of a in 1975, and has so far acceded to the country and given to (or conferred upon) following treatise administered by WIPO- an individual(s) or a legal entity in order to protect their creativity or innovation. Name of Conventions Year of India has a well established legislative, /Treaty accession administrative and judicial framework to a. WIPO Convention 1975 safeguard Intellectual Property Rights which meet the countrys international b Berne Convention 1928 obligations while utilizing the flexibilities c. Phonograms Convention 1975 provided in the international regime to address its developmental concerns. d. Nairobi Treaty 1983 Indias comprehensive legal framework on e. Paris Convention 1998 IPRs includes the Patents Act 1970 as amended in 2005, the Trade Marks Act f. Patent Cooperation Treaty 1998 1999 (as amended in 2010), the g. Budapest Treaty 2001 Geographical Indications of Goods (Registrations and Protection) Act 1999, h. Protocol relating to 2013 the Designs Act 2000, the Copyright Act the Madrid 1957, the Semiconductor Integrated Agreement concerning International Circuits Layout Design Act 2000 and the Registration of Marks. Protection of Plant Varieties and Farmers Brief History Rights Act 2001. The Department of Industrial Policy and Promotion is The present legal framework in India has responsible for administration of four of its roots in the system established by the the seven IP Acts, i.e. patents, British. Patent Right was first introduced trademarks, designs and geographical through the Protection of Inventions Act, indications. 1856. This legislation was further modified and the Patent and Designs This Department is also responsible for Protection Act, 1872 was enacted which coordinating all issues relating to the brought in design within the ambit of 111

115 protection. A significant step was taken in While the Patent Law has a strong 1911, when, through a further legislative history, prior to 1940 there was amendment to the Patent and Design Act, no statutory law relating to trademarks in Patent Administration was brought under India. The problems relating to passing off the management of the Controller of and infringement were decided on the Patents for the first time. The legislation basis of the common law as was applicable went through further amendments most in England. Registration of Trade Marks significant of which was the enactment of was carried out under the Indian the Patent Act 1970, which was introduced Registration Act, 1908. The Trade Marks subsequent to the report submitted by Act was subsequently enacted in 1940, on Justice N Rajagopalan Ayyangar in 1959, the basis of the UK Trade Marks Act, 1938. when both product and process patents This Act was replaced in 1958 by the Trade were introduced for all sectors with the and Merchandise Act, 1958. former not being available for inventions The Trade Marks Act, 1999, was enacted relating to food, medicine or drugs or incorporating the developments in trading substances produced by chemical process. and commercial practices and the TRIPS India became a member of the World provisions. Some of the important Trade Organization in 1995, and as per the amendments in compliance with the TRIPS transitional arrangement it was required provisions were the introduction of trade to comply with the provisions of TRIPS marks for services and inclusion of the within a period of 5 years except for the concept of well-known trade mark. The provision relating to extension of product amendment also provided for setting up of patents to technologies that were hitherto the Intellectual Property Appellate Board exempt, for which an additional period of (IPAB) to deal with appeals against the 5 years was given. This implied that all IP decisions of the Registrar of Trade Marks legislations were required to be compliant and the Controller of Patents to lie before with the TRIPS Agreement by the year the IPAB instead of the respective High 2000 with the exception of the Patent Courts. The Trade Marks Act, 1999 was legislation which had to be amenable to further amended in the year 2010 to TRIPS by 2005. To achieve this, the Patents enable the accession to the Madrid System Act, 1970 was modified in a calibrated for international registration of manner in 1999, 2002 and 2005. Both trademarks. The 2010 Amendment to the product and process patents were Madrid Protocol has, however, yet to be i n t r o d u c e d t h r o u g h t h e Pa t e n t s notified. In keeping with Indias (Amendment) Act, 2005 in all fields of commitment under TRIPS, a new technology. legislation on Geographical Indications namely the Geographical Indication of 112

116 Goods (Registration and Protection), Act, d) The Geographical Indications of 1999 was enacted. The Designs Act 1911 Goods (Registration & Protection) was repealed and a new legislation was Act, 1999 through the Geographical enacted in the year 2000 with a view to Indications Registry at Chennai. provide more effective protection to In addition, the Patent Information System registered designs and to promote design and the Rajeev Gandhi National Institute activity in the country. of Intellectual Property Management Office of Controller General of Patents, (RGNIIPM), both located at Nagpur, come Designs & Trademarks and the Appellate under the purview of the CGPDTM. Board for Intellectual Property Rights The Intellectual Property Appellate Board The registration of the 4 Intellectual (IPAB) was established in September 2003 Property Rights administered by the for hearing appeals on the decisions, Department Industrial Policy and orders or directions of the Registrar of Promotion namely Patents, Trade Marks, Trade Marks and Geographical Indications. Geographical Indications and Designs is Subsequent to the Amendment to the being carried out by the subordinate field Patent Act in 2002 and 2005, IPAB also formation of the Controller General of hears appeals arising out of decisions of Patents, Designs and Trade Marks Patent Controllers from April, 2007. All (CGPDTM) with headquarters at Mumbai. pending cases of appeal against decisions There are at present 11 Offices of the of the Registrar/Controller and all those organization spread over 5 cities i.e Delhi, relating to rectification of the Trade Mark M u m b a i , C h e n n a i , Ko l k a t a a n d Register were transferred to the IPAB form Ahmedabad. These are as follows:- the High Courts from the date of notification. a) The Patents Act, 1970 (amended in 1999, 2002 and 2005) through the Brief Summary of the Activities of the Patent Offices at Kolkata (HQ), Office of the Controller General Of Mumbai, Chennai and Delhi. Patents, Designs and Trademarks b) The Designs Act, 2000 through the Over a period of time with economic Patent Offices at Kolkata (HQ), development, liberalization and Mumbai, Chennai and Delhi. globalization, Intellectual Property is gaining an importance. This is evident c) The Trade Marks Act, 1999 through from a five-fold increase in the filing of the Trade Marks Registry at Mumbai patents from 8,503 in 2000-01 to 42,950 in (HQ) Chennai, Delhi, Kolkata and 2013-14. The no. of applications Ahmedabad. examined, patents granted and applications disposed during the period 113

117 2013-14 was 18,306, 4,225 and 11,672 development of a dynamic patent respectively. During the same period, search portal which allows access to 2,00,005 trademarks applications were information on the status of the filed and 2,03,086 applications were application including its complete examined. The no. of trademarks details and its disposal. registered during 2013-14 was 67,873 and c. Provisions of the Madrid Protocol 1,04,753 applications were disposed. came into force in India from 2013. The registration of industrial designs As on 31 s t March 2014, 3138 under the Designs Act 2000 is carried out international applications seeking by Designs Wing of the Patent Office Trademarks protection in India were located at Kolkata. During 2013-14, 8553 received through WIPO. The design applications were received, 7281 Trademarks Registry also received 81 applications were examined and 7178 applications for international designs were registered. The registration, of which 74 applications Geographical Indications (GI) registry have been certified and forwarded to which is situated at Chennai had during WIPO. the year 2013-14 received 75 applications for registration of GIs and 22 applications d. The Manual of Patent Office Practice were registered in the same period. and Procedures has been prepared to ensure uniformity in operation and Some of the important steps taken by the the same is available on the website. office of the CGPDTM during the year Further, the Guidelines for 2013-14 were as follows:- Processing of Patent Applications a. The patent office operationalized the relating to Traditional Knowledge and International Searching Authority Biological Material and Guidelines (ISA)/ International Preliminary for Examination of Biotechnology Examining Authority (IPEA) status Applications have been published given to it by World Intellectual in the official website. Property Organization (WIPO) on Awareness 15th Oct., 2013. As on 31st March, 2014, the Indian Patent Office had The Department has through the Office of received 145 international CGPDTM been conducting programme for applications choosing India as ISA, creating general awareness on the need requesting for international search and the manner in which protection reports. should be sought for IP generated. Programmes are also conducted for the b. Steps were taken to bring in greater stakeholders on building respect for IP and transparency through the for sensitizing the enforcement agencies 114

118 such as the state police forces, the enable the Trade Marks Registry to meet judiciary, etc. Since, a large number of the requirements of Madrid Protocol for Ministries/Departments are responsible international registration of Trade Marks. on IP issues, awareness programmes are The scheme included the components for largely conducted by each one of them in physical infrastructure, human resources, their specific sphere of specialization. digitization of IP records, library and awareness creation. Since commecement Plan Schemes of the Plan Scheme in March, 2008, various Re c o g n i z i n g t h e i m p o r t a n c e o f actions in all the said components have modernization, this Department has been initiated and completed. The implemented the following two Plan Scheme has been continued in the 12th schemes during the 11th Five Year Plan Plan. The proposal has been appraised by with objectives of modernization and Expenditure Finance Committee and strengthening of Intellectual Property awaits approval of the Competent Offices:- Authority. a. Plan Scheme for Modernization and b. Plan Scheme for Rajiv Gandhi Strengthening of Intellectual National Institute of Intellectual Property Offices(MSIPO) Property Management (RGNIIPM). This Department has implemented a plan Rajiv Gandhi National Institute of scheme for Modernization and Intellectual Property Management is being Strengthening of Intellectual Property set up as an institute of international Offices during the 11th Five Year Plan. importance which would provide training, The total Plan outlay for this scheme was education, research and function as a ` 300 crores. The scheme aimed at think tank on Intellectual Property Rights. strengthening the capabilities of The main components of the scheme Intellectual Property Offices in India and included construction of the Academic and to develop a vibrant Intellectual Property Residential Blocks, establishment of other Regime in the country. It also aimed to infrastructure facilities and creation of develop modern infrastructure for the posts. The construction work in respect of Indian Patent Offices to function as an Academic Block has been completed. The International Search Authority and institute has been inaugurated by Honble International Preliminary Examining CITM on the 21st July, 2012, simultaneously Authority under the Patent Cooperation commencing the training of newly Treaty, for which WIPO had recognized recruited examiners of patents and Indian Patent Office in October, 2007 to designs . The scheme has been continued join an exclusive group of 17 countries / in the 12th Plan and an overall allocation of organizations. The scheme also aimed to ` 30 crores was initially made which 115

119 included the allocation of funds for the Madrid Protocol which is a simple, residential complex also. However, since facilitative and cost effective system for all exercise to obtain land from the Urban registration of international trade marks. Development Department has proved Indias membership of the protocol will infructuous, the current proposal is enable Indian companies to register their limited to ` 11.5 crores which includes trade marks in Member Countries of the components other than the acquisition of Protocol through a single application in land and construction of the residential one language and by paying one-time fee block. in one currency. India has acceded to the Protocol on 8th April 2013, on which it has In addition to the continuation of the come into force in India. schemes as mentioned above in the 12th Plan, a new scheme for Strengthening and Operationalization of ISA/IPEA Status Modernizing Intellectual Property granted to Intellectual Property Office in Appellate Board, Chennai has also been India approved for the 12th Plan with an overall The Indian Patent Office commenced its outlay of ` 14.7 Crore. The major operation as International Search components of the Scheme include Authority/International Preliminary construction of building in Chennai and Examining Authority on 15th October, 2013. creation of posts. National IPR Strategy Amendments to the Trade Marks Act and Madrid Protocol The Sectoral Innovation Council (SIC) on Intellectual Property Rights (IPRs) set up The Trade Mark (Amendment) Bill was under the umbrella of the National passed by the Parliament and assented to Innovation Council (NIC) had prepared the by the President on 21.9.2010. National IPR Strategy bringing out the Consequently, the provisions of the measures that need to be taken within the amended Trade Mark (Amendment) Act, overall extant legal regime to promote 2010 were brought into force with effect innovation. The strategy document has from 8th July 2013. The necessary been submitted to the National Innovation amendments in the Trade Marks Rules Council (NIC). On the basis of the strategy 2002 have also been made. The amended a work plan has been prepared to be Act and Rules enabled India to accede to implemented over the next two years. 116

120 12 Chapter Administration of the Boilers Act, 1923 Administration of the Boilers Act, 1923 persons. Competent Persons have been (5 of 1923) and the rules/ regulations recognized and authorization cards issued made thereunder to them for undertaking inspection and certification of boilers and boiler The Boilers Act was enacted in 1923 to components in India during manufacture, provide mainly for safety of life and erection and use. Third Party Inspecting property from the danger of explosion of Authorities for inspection in India have boilers and for achieving uniformity in also been recognized and such inspections registration and inspection during have started in some states. This has operation and maintenance of boilers resulted in a simplified and more throughout the country. Upto year 2007, accessible, user - friendly framework for there had been no major amendments to the administration of the Boilers Act and the Act and the legislation needed has also protected manufacturers/users' changes in consonance with the evolving interests without sacrificing the safety developments and changes in the aspects. This will immensely benefit a technology of fabrication, testing, broad spectrum of industries both in large inspection and operation of boilers. and small scale sector which includes The Indian Boilers (Amendment) Act, 2007 Power plants, Chemical plants, Refineries, (49 of 2007), introduced improvements in Paper plants, Steel plants, Sugar mills and the provisions of the law to enhance safety other process industries norms, to ensure uniformity in standards Amendments are being introduced in the of inspection, expediting inspections and Indian Boiler Regulations, 1950 for reducing bureaucratic delays by making provisions for Super critical boilers decentralization of inspection of boilers and other latest technologies in the during their manufacture, erection and industry. Time period between inspection use, by allowing inspection and requiring mandatory shut down of the certification by independent inspecting boilers is being increased in power plants authorities. and continuous process plants which will Rules and regulations have now been result in increase in production from these framed for inspection by third party plants. Review of forms and drawings is inspecting authorities and competent being undertaken to simplify registration 117

121 of boilers and make it more user friendly certification of boilers and boiler for the stakeholders. components. Central Boilers Board Evaluation Committee/Appraisal Committee of the Board considered ninety The Central Boilers Board, constituted eight recognition cases for recognition as under Section 27A of the Boilers Act, 1923 Inspecting Authorities, Competent (5 of 1923) is responsible for making Authorities, Well-known Steel Makers, regulations consistent with the Act Tu b e / Pi p e M a k e r s , We l l Kn o w n including laying down standards for Foundry/Forge-Shops, Material Testing material, design, construction as well as laboratories and Remnant Life for registration and inspection of boilers. Assessment Organisation under the Indian The Board comprises of the Boiler Regulations, 1950, and granted representatives of the Central and State recognition/renewal in eighty eight cases Governments, Bureau of Indian Standards, during the period under report. boiler and boiler component Authorisation cards were also issued to manufacturers, National Laboratories, competent persons for inspection and engineering consultancy agencies, users certification of boilers and boiler of boilers and other stakeholders components in India during manufacture, connected with the boiler industry. erection and use. The Secretary, Department of Industrial Functions of Boilers Division: Policy and Promotion is the ex-officio Chairman and Technical Adviser (Boilers) Boiler Division is headed by the is the ex-officio Member-Secretary of the Technical Adviser (Boiler) and its functions Board. are to: The Board deals with the problems of both (i) Advise the Central Government on all users and manufacturers and takes policy matters relating to administration of decisions for proper growth of the boiler the Boilers Act, 1923 and the Indian manufacturing industry in the country. Boiler Regulations (IBR) framed there The Board formulates the Indian Boiler under. Regulations incorporating the latest (ii) Deal with cases/matters on which developments taking place in the boiler direction is to be given to State industry all over the world. The Boards Governments by the Central responsibilities have further increased Government for carrying out with the introduction of provision of third execution of the provisions of the party inspecting authorities and Boilers Act,1923. competent persons for inspection and 118

122 (iii) Deal with the work relating to (vii) Conduct meeting of all Technical Sub- framing or amendment of Committees of the Central Boilers regulations for laying down Board as Chairman of these standards for material, design and committees. construction of boilers and also for (viii) Deal with various matters in regulating the inspection and connection with the administration examination of boilers. of the Boilers Act, viz. scrutiny of the (iv) Examine proposals for amendment of proposals regarding amendment of the regulations including drawings, the Indian Boiler Regulations, 1950, designs, calculations and in line with the latest technological specifications for submissions to the developments in the developed Central Boilers Board. countries all over the world. (v) Evaluate quality management (ix) Interpret the provisions of the Indian systems and production facilities of Boiler Regulations, 1950. various firms in India and abroad for (x) Deal with issues raised by the their recognition as Competent manufacturers and users of boilers Authorities, reputed steel makers, and others concerned, and give foundries, forge-shops, tube & pipe necessary advice and guidance. makers, material testing laboratories and remnant life (xi) Authorise Competent Persons for assessment organisations under the inspection and certification of Indian Boiler Regulations, 1950, in boilers and boiler components in order to cut down the inspection India during manufacture, erection delays and increased availability of and use. the boiler components without (xii) One-day/two days workshops on sacrificing the safety and quality of efficient boiler operation and the boilers and its components. maintenance to apprise the owners (vi) Evaluate inspection systems and of boilers of the steps to be taken to performance of firms for their optimize the efficiency of their recognition as Inspecting Authorities working boilers are being for inspection and certification of continuously conducted through boilers and boiler components in National Productivity Council to India and aborad. popularize the measures for energy conservation. 119

123 13 Attached & Subordinate Chapter Offices and other Organisations Office of the Economic Adviser Examination of labour issues, inter- alia, concerning labour laws and The Office of the Economic Adviser was set labour market issues. up in 1937. It renders advice for the formulation of policies having impact on Comments on various legislative the countrys industrial development and proposals relating to tax, industrial for promoting investment. It also renders relations, companies, labour laws, advice on trade, fiscal, investment, Essential Commodities Act, draft competition and labour related issues Cabinet Notes, etc. having bearing on industrial performance. Compilation and Release of Economic Further, the Office compiles and Statistics disseminates Wholesale Price Index (WPI) and Index for eight Core Sector industries The Office of Economic Adviser compiles besides compilation of data in respect of and releases the following publications: DIPP items in IIP. Wholesale Price Index (WPI) Numbers The main functions of the Office of the for India on the 14th of the month for Economic Adviser include the following: all commodities(Press Release). Policy oriented functions Monthly and annual indices of Wholesale Prices are available at the Economic policy inputs on industrial website http://eaindustry.nic.in development. Monthly report on production of eight Re n d e r i n g a d v i c e r e l a t i n g t o infrastructure industries viz. crude formulation of Industrial Policy, oil, petroleum refinery products, coal, International Trade (PTA/FTA/RTA) electricity, cement and finished steel, and tax issues related to industry. natural gas, fertilizer (also available Analysis of trends of industrial at http://eaindustry.nic.in) production and growth. The Monthly Economic Scenario. Examination of WTO issues pertaining Coordination functions to market access for non-agricultural commodities (industrial tariffs). The Office coordinates the following 120

124 work:- for industry. 4 The work relating to preparation of Development of Business Service Price Monthly Summary for the Cabinet Index (BSPI) highlighting monthly IIP Growth rate, During the Tenth Plan, the Planning manufacturing growth rate, Commission approved a Plan Scheme with investment scenario, FDI, inflation the objective of developing Service Price position etc., Index for the country. The scheme 4 Monthly D.O. letter to the Cabinet Development of Business Service Price Secretary regarding important Index continued in the Eleventh Plan. achievements during the month. Also, the scheme has been approved for the 12th Plan. The progress of the work is 4 Coordinating for the material as under:- regarding Pre-Budget Economic Survey, material for the Speech of Ten sectors namely Banking Sector, President of India, Prime Minister, Trade, Business Services, Postal, Finance Minister, etc. Telecommunication, Air Transport, Port Services, Insurance, Rail 4 Preparation of Executive Summary & Transport Sector and Road Transport Chapter-1 of Outcome Budget of the have been identified in the initial Department. phase for development of 4 Preparation of Annual Plan/Five Year experimental Service Price Index. An Plan of the Department. Expert Committee on Development of Service Price Index under the 4 Monitoring status of approval c h a i r m a n s h i p o f P r o f . C . P. (EFC/SFC) of Plan Schemes. Chandrasekhar has been set up in April 4 Preparation of concept papers/ 2007, to provide the technical approach papers for the schemes of guidance on the conceptual and the Department. methodological issues. Experimental Service Price Indices for four sectors, 4 Research work concerning industrial viz., Rail Transport Sector, Banking sector. Sector, Postal Services and Telecom 4 Work relating to proposals for changes (Cellular) Service are placed on the in fiscal policy regime relating to website of the office for comments industrial goods and renders advice on and are being updated from time to matters pertaining to changes in the time. tariff structure and fiscal incentives 121

125 Monthly Experimental Railway (ii) Air Transport (Directorate Services Price Indices (Base: 2004-05) General of Civil Aviation) have been compiled from April 2005 to (iii) Insurance (Insurance Regulatory Jan., 2014, based on data made Development Authority) available by Directorate of Economics & Statistics, Railway Board. Tariff Commission Monthly Experimental Banking The present Tariff Commission in India is Services Price Indices (Base: 2004-05) the result of the refinement and have been compiled from April 2005 to amalgamation of the functions of its Feb., 2014, (provisional) by RBI in predecessor organizations namely, Tariff consultation with the Office of the Board, Tariff Commission (old) and Bureau Economic Adviser. of Industrial Costs & Prices (BICP). The Commission is presently being headed by Monthly Experimental Postal Services Member Secretary in the rank of Price Indices (Base: 2004-05) have Additional Secretary. Tariff Commission been compiled from April 2005 to June being located in the Department of 2013, based on the data received from Industrial Policy & Promotion, is working Department of Posts. as per the guidance of National Quarterly Experimental Telecom Manufacturing Competitiveness Council in (Cellular) Service Price Indices (Base: areas where NMCC is authorized under 2009-10) have been compiled from QE Para 1.22, 7.1 and 10.4 of National June, 2010 to QE Dec., 2014, on the Manufacturing Policy. basis of Performance Indicator Report The Tariff Commission has been engaged (a quarterly publication) of Telecom in discharging the following functions Regulatory Authority of India(TRAI). drawn from the TOR/ charter revised in Notes on the methodology of September, 1998 and April, 1999 . construction of these Indices are also (a) To make recommendations as an uploaded. expert body, on matters referred to it The methodologies are being worked by Government regarding fixation of out in consultation with relevant tariff and all tariff related issues in Departments/ Ministries for the relation to trade in goods and services, sectors mentioned below: keeping in view the interest of various sectors including production, trade (i) Road Transport (M/o Road and consumers and taking into account Transport & Highways) the international commitments. The 122

126 Commission should aim at evolving an Engineers from the field of science and overall tariff structure and look into technology belonging to Tariff the issue of tariff rationalisation. Commission cadre (b) To make a detailed impact analysis on Cost Accountants/Chartered account- select sectors like textiles, ants from Indian Costs & Account agriculture, automobiles, information Service (IC&AS) technology, chemicals, steel and Economists from Indian Economic engineering goods through a multi- Service (IES); and disciplinary team. Statisticians from Indian Statistical (c) To carry out technical studies on cost Service (ISS). of production of different goods and services and their competitiveness in Tariff Commission is the only Government relation to other countries. organization which has the know-how and expertise of using the tool of normation (d) Core function of BICP including for informed decision making across the pricing, efficiency, improvement and board for different sectors of the industry. cost reduction, issue of Public & Normation is based on assessment of Private sector, Industrial Product & achievable efficiencies i.e optimal Services capacity utilization, productivity i) Commodities under Administ- parameters of respective inputs (such as rative Mechanism(APM) man, material, energy and machine) taking into account technologies and ii) State monopolies/public utilities manufacturing processes etc. Normation iii) Government procurement analysis thus can be used to benchmark sectors /units for enhancing their iv) Price monitoring competitiveness. v) Others Merits of decision making through (e) To undertake other tasks as may be Normation include: assigned by the Government from Considered fair by an individual time to time. and/or a group. Tariff Commission is the only organization Determining the cost of goods/ in the public domain having multi- services at optimal/efficient level of disciplinary teams as below for conducting inputs (manpower, material, energy in-depth study using data based on ground and capital) and provides thrust for realities collected from field :- 123

127 improvement in efficiency and time. This is ensured by phasing the enhances competitiveness of the studies and making them state specific industry. and/or sector/unit/product specific. Study topics which are of continuing It helps in identifying areas for nature and require submission of study physical improvements leading to reports on a continuous basis are listed enhancing competitiveness below. Normation is a fundamental a) Studies on inverted duty structure management tool that supports quality / excellence and innovation. It b) Impact assessment of Free Trade is in fact a continuous process of Agreements on different sectors with measuring ones own performance and different countries. practices against the best compe- c) Studying competitiveness (including titors. It is thus a bench-marking tool export competitiveness of different in competitiveness studies. sectors/industry, firm/PSU and Normation balances the interest of all product. stakeholders while protecting d) Impact of prevailing tariff structures consumer interest. on domestic manufacturers and It is a tool which also focuses on industry competitiveness providing road map for improving e) Study on normative pricing of industrial efficiency. Fertilizers. Over the period this tool has passed f) Study on computation of fair price of the test of time and has become B-Twill Jute bags essential in the emerging complex global market scenario and cutting The Commission has submitted several edge competition. reports to various Govt./ Referral Agencies during 2013-14 . Tariff Commission always endeavours to deliver study reports in a definite time The Sector wise details of the study frame in a phased manner so that the reports submitted during 2013-14 (i.e. till findings are real time and relevant for 31/3/2014) is given in the Table-13.3 arriving at policy decisions and not below. rendered redundant with the passage of 124

128 Table-13.3 S.No. Sector/Type of Study No. of Reports 1 (Manufacturing Sector) 19 (a) Studies related to WTO/Market Access 9 Offer/FTA/Tariff 4 (b) Industry specific studies 6 (c) Pricing Study 2. (Service Sector) 18 (a) Pricing Study 18 3. (Social Sector) 3 (a) Industry Specific studies 3 Grand Total 40 The detailed list of the study reports submitted during 2013-14 (up to 31/3/2014) is given in the table-13.4 below : Table-13.4 Sl. No. Name of the study report -2013-14 1 Report on Import of Second Hand Machinery and its impact on Competitiveness of Domestic Capital Goods Industry Part-I Plastic Processing Machinery 2 Report on Impact Assessment of Free Trade/Preferential Trade Agreements with respect to Capital Goods Sector (First report relating to Power Generation Equipment) 3 Report on Impact Assessment of free trade/preferential trade agreement on capital goods sector-power transmission and distribution equipment 4 Report on Assessment of Free Trade Agreement with Thailand. 5 Report on Impact Assessment of Free Trade/Preferential Trade Agreement on Capital Goods Sector-Electrical Equipment 6 Study on Impact Assessment of ASEAN-India Free Trade Agreement for Indian Industry & Trade (Report Part no. 1) 125

129 Sl. No. Name of the study report 7 Study on Impact Assessment of Free Trade Agreement/ Preferential Trade Agreement (FTA/PTA) with Japan on Trade in Capital Goods Sector-Machine Tools. 8 Report on Impact Assessment of Indo-Singapore Comprehensive Economic Cooperation Agreement (CECA) Organic Chemicals. 9 Report on Inverted Duty Structure (IDS) on Personal Computers (PC). 10 Report on Inverted Duty Structure (IDS) on Ethylene Vinyl Acetate (EVA) Sheet. 11 Report on Inverted Duty Structure (IDS) on Back Sheet (A Component of Solar Photo Voltaic (PV) Module). 12 Report on Inverted Duty Structure (IDS) on Slewing Bearing for Wind Operated Electricity Generator upto 30 kw (HS Code-8482) 13 Report on per tonne per KM transportation rate of fertilizers by road for Jammu & Kashmir, Himachal Pradesh and North-Eastern States 14 Report on Quantum value and types of Bio-resources exported from India (Report Part No.II-Spices & Aromatic Plants) 15 Report on Quantum Value and Types of Bio-Resources exported from India (Report Part No.III-Horticulture Crops). 16 Report on Quantum Value and Types of Bio-resources Exported from India (Report Part No.IV) 17 Note on Estimation of Fair Price of 50 Kg. B-Twill Jute Bags 18. Report on Estimation of Fair Price of B-Twill Jute Bags 19. Note on effect of change in payment terms for B-Twill Jute Bag prices for supply through DGS&D 20. Supplementary Report on Estimation of Fair Price of B-Twill Jute Bags (94.4x57 cm-6x7, 665 gms, 50 kgs. capacity) 21. Supplementary Note on Effect of Change in Payment Terms for B-Twill Jute Bag for supply through DGS&D. 126

130 Sl. No. Name of the study report 22. Report on fixation of price of Type-A B-Twill Jute Bags manufactured on shuttle less looms. 23. Report on Water Rate Structure for various uses in Andhra Pradesh. 24. Report on Water Rate Structure for various uses in Madhya Pradesh. 25. Report on Water Rate Structure for various uses in Kerala. 26 Report on Operation & Maintenance Cost of Major and Medium Irrigation Projects in Madhya Pradesh. 27. Report on Operation & Maintenance Cost of Irrigation Projects in Odisha 28. Report on Operation & Maintenance Cost of Irrigation Projects in Kerala 29. Report on Operation & Maintenance (O&M) Cost of Major and Medium Irrigation Projects in West Bengal. 30. Report on Operation & Maintenance (O&M) Cost of completed Major and Medium Irrigation Projects in Tamil Nadu. 31. Report on Operation & Maintenance (O&M) Cost of completed Major and Medium Irrigation Projects in Assam. 32. Report on Operation & Maintenance (O&M) Cost of completed Major and Medium Irrigation Projects in Goa. 33. Report on Bus Transport Services in Non-BRT City Coimbatore. 34. Report on Bus Transport Services in Non-BRT City Chennai 35. Report on Bus Transport Services in BRTS City Delhi. 36. Report on Bus Transport Services in Non-BRTS City Bangalore. 37. Report on Bus Transport Services in BRT City Pune 38. Report on Bus Transport Services in Non-BRTS City Mumbai. 39. Report on Principles of determination of tariffs for passenger fares by the operational Metro Companies Delhi Metro 40. Report on Performance of Bio-Fertilizers with their Chemical Counterparts in terms of Usage, Efficiency & Cost Effectiveness 127

131 Besides the above reports submitted The list of ongoing study topics and the during the current financial year the tentative number of reports that are likely Commission has several other studies at to be generated in each of the study topics different stages of progress / completion. is given at Table 13.5. Table 13.5 List of on going studies Sl. Sector Type of No. of study No. Study reports Study topic expected to be submitted 1 Performance of cement Industry (2013-14) mfg Pricing/APM 1 2 Study on assessing the price of Sanitary mfg Pricing Govt 1 Napkins. procurement 3 Inverted Customs Duty Structure in respect mfg Tariff Study 45 of raw materials and components required for the Manufacturers of goods 4 Impact of Liberalization / Tariff Reduction mfg Industry 2 on HMT and Public Sector Enterprises & competitiven Innovative Pricing HMT. ess 5 Impact of Liberalization / Tariff Reduction mfg Industry 2 on IDPL and Public Sector Enterprises & competitiven Innovative Pricing IDPL. ess 6 Impact of Liberalization / Tariff Reduction mfg Industry 2 on NEPA and Public Sec tor Enterprises & competitiven Innovative Pricing NEPA ess 7 Mfg/ Industry 4 Public Sector Enterprises & Innovative social competitiven Pricing Principles. ess services 8 mfg Industry 2 Study on Competitiveness of HLL competitiven ess 9 Import of second hand machinery and their mfg Industry 8 impact on domestic manufacturers of competitiven capital goods and their competitiveness: ess 10 Impact Assessment of FTAs/ PTAs on mfg FTA impact 9 Capital Goods - Impact analysis of tariff analysis and trade policy of major commodity/sector 11 Impact assessment of Free Trade mfg FTA impact 1 Agreement - Singapore. Analysis 128

132 12 Impact assessment of Free Trade mfg FTA impact 1 Agreement - ASEAN. Analysis 13 Study on Export Competitiveness: mfg Industry 6 competitiven ess 14 Input Cost Study on Sub-Sectors of Capital mfg Industry 9 Goods: competitiven ess 15 Competitiveness of Indian Manufacturers mfg Industry 9 Vs. Chinese Manufacturers in respect of competitiven Capital Goods: ess 16 Sectoral Impact of imports on the market mfg Industry 1 share in India in respect of the reserved competitiven list of SSI Sector ess 17 Study on determining the realistic cost of mfg Pricing Govt 1 Condoms procurement 18 Study on costing structure/ Benchmarking Services Pricing 7 for testing / homologation charges at Sector public utility NATRIPs centres 19 Principles of determination of tariffs for Services Pricing 15 passenger fares by the city bus services in Sector public utility BRT Corridors & non BRT cities / corridors. [19 cities / 12 States] 20 Study on per capita costs of surface water Services Pricing 4(1) based piped water supply schemes to cover Sector public utility (i) Arsenic affected habitations - Two States West Bengal& Bihar (ii) Fluoride affected habitations - Three states Rajasthan, Karnataka and Andhra Pradesh 21 O & M Costs of Single village and multi- Services Pricing 6(1) village rural water supply schemes Six Sector public utility states - West Bengal, Bihar, Rajasthan, Karnataka, Maharashtra & Madhya Pradesh 2 22 Operational & Maintenance cost of Services Pricing 5( ) irrigation projects Sector public utility 23 Study for determining additional mfg Pricing 1 compensation for complex fertilizers Govt produced by Naphtha/Fuel Oil/LSHS based procurement feed stock under NBS Policy. 1 scope expanded in view of the TORs projected by the client Ministries 2 No. of reports indicated is zone wise however, no. of study reports may get enhanced if state wise reports are submitted 129

133 24 Assessment of normative cost of drinking Services Pricing 5 water supply Sector public utility 25 Assessment of normative cost of water Services Pricing 5 used for irrigation Sector public utility 26 Assessment of normative cost of industrial Services Pricing 5 water supply Sector public utility 27 Study on quantum, value and type of bio- Social Industry 1 resources exported from India Four Sector competitiven Reports. ess 28 Principles of determination of tariffs for Services Pricing 3 passenger fares by the operational metro Sector Public Utility rail companies: i) Kolkata ii) Delhi- report submitted iii) Bangalore iv) Mumbai 29 Study on the Realistic Cost/Price of various mfg Pricing 7 types of pipes used in rural Drinking Water /Govt. Supply Schemes. seven states procurement 30 Principles of determination of tariffs for Services Pricing 5(2) water supply Sector Public Utility 31 Study on per capita costs of piped water Services Pricing 1 supply schemes base in Arunachal Pradesh Sector public utility (a) On gravity flow (b) On pumping 32 Principles of determination of tariffs for Services Pricing 5(3) Solid waste management Sector Public Utility 33 Principles of determination of tariffs for Services Pricing 5(3) Sanitation Sector Public Utility 34 Study on database on economic mfg Others 1 contribution of biotech, pharmaceutical and health care industry in Punjab to Indian economy 35 Comparative performance of bio-pesticides mfg Industry 1 with their chemical counterparts in terms competitiven of usage, efficiency & cost effectiveness. ess 36 Study of successful commercial models Social Others 1 adopted by self help group for livelihood Sector generation and sustainability in Punjab 2 No. of reports indicated is zone wise however, no. of study reports may get enhanced if state wise reports are submitted 130

134 37 Study on interventions through joint forest Social Others 1 management on livelihood improvement Sector and increase in purchasing power of local communities 38 Impact of taxation on Minor Forest Produce Social Others 1 to the Local communities Sector 39 Impact of Certification on cost benefit Social Industry 1 ratio of handicraft items exported from Sector competitiven India ess 40 Assessment of fuel wood extraction from Social Others 1 Indias forest for meeting energy needs. Sector 41 Study to analyse the effect of lower duties Social Industry 1 on revenue foregone vis-a-vis possible Sector competitiven economic benefits obtained in the cost of ess construction of residential apartments/houses in selected States/UTs 42 Economics of utilization of bio-resources Social Industry 1 (medicinal & aromatic plants) in the state Sector competitiven of Punjab. ess 43 Contribution of Agro and Farm Forestry for Social Industry 1 meeting industrial demand of forest Sector competitiven produce / products in the country and ess scope for wood based industry 44 Social Industry 1 Study on Socio-economic impact of Bt Sector competitiven Cotton in Punjab ess 45 Impact analysis of fiscal incentives mfg Industry 1 announced in the recent budgets (2010-11 competitiven & 2011-12) done for cold chain ess infrastructure 46 Study on Status of Ship Building Industry in mfg Industry 1 Goa Strengths, Impediments and way competitiven forward ess 47 Study of multiple use of natural gas in Services Others 1 various sectors across Goa and benefits to Sector the Environment 48 Integrated reports/study on cultivation of Social Industry 1 medicinal plants linked to marketing value Sector competitiven added health products in the designated ess Biosphere Reserves by the Ministry on Environment & Forests. 131

135 49 Study on Determination of State-wise Services Pricing 5 average cost of Transmission including Sector public utility technical and non-technical losses 50 Study on Impact of Power Sector Reforms Services Pricing 5 on financial Health of the Distribution Sector public utility companies and their respective payment capability for the next five year 51 Study on Decentralised distribution Services Pricing 5 Generation (DDG) Tariff Sector public utility 52 Study on Comparative study of open access Services Pricing 5 charges in distribution and Sector public utility recommendation of optimum tariff for open access 53 Study on impact of change in royalty rates Services Pricing 1 of coal and lignite on thermal power Sector public utility generation tariff in addition to tariff based bidding for allotment 54 Study on Benchmark distribution margins Services Pricing 5 for bidding out distribution services for Sector public utility privatization of distribution 55 Coal pricing subsidiary wise Mining Pricing 8 Sector Public Utility i) SIngareni Collieries SCCL ii) Coal India Ltd subsidiary ECL iii) Coal India Ltd subsidiary MCL iv) Coal India Ltd subsidiary NCL v) Coal India Ltd subsidiary NFCL vi) Coal India Ltd subsidiary SECL vii) Coal India Ltd subsidiary WCL viii) Coal India Ltd subsidiary CCL Outcome of the study reports submitted Promotion in its tax proposals for the by the Commission, by way of adoption, union budget of 2013-14, used all the indication, appreciation and interest 26 reports of Tariff Commission on shown by the clients in addition to the Inverted Duty Structure for making usage by the client in analysis and decision specific recommendations to the making are as below: Department of Revenue for correction of IDS in manufacturing products. 1) O f f i c e o f E c o n o m i c A d v i s e r, (Reference letter no.Ec.Ad.2/16/ Department of Industrial Policy & 2012-TFP dated 19th March, 2014). 132

136 2) The slab wise rates recommended by done on inverted duty structure in the Tariff Commission for movement 2012-13. of fertilizers by road from plant/port 7) Ministry of Health & Family Welfare to block up to 500 Km has been vide No.X-11035/12/2012-DGQC adopted by the Department of dated 3/4/2013 endorsed the study F e r t i l i z e r s . ( Re f e r e n c e l e t t e r done by Tariff Commission to the no.12012/25/2013-FPP dated 14th Revenue Department on inverted duty March, 2014). structure. 3) The formula recommended by the 8) Department of Revenue vide its letter Commission for the payment of no. C-15012/2/1/10- SO(NC-1) dt. interest by DGS&D on the withheld 5.7.2013 have intimated that the amount for procurement of Jute Bag recommendations of Tariff Commi- for packing of food grains has been ssion have been duly considered while implemented by DGS&D. (Reference revising the prices of bulk drugs letter no. Kol/Jute/ADS(C-3)/Policy produced by Govt. Opium & Alkaloid Matter/2014 dated 19th Feb., 2014) Works, in March-April,2013. 4) T h e r e p o r t p r e p a r e d b y t h e 9) Report on Comparative Performance Commission on medicinal plants, of Bio- Fertilizers with their chemical species and aromatic crops and counterparts in terms of usage, horticultural crops enabled the efficiency and cost effectiveness National Biodiversity Authority to appreciated by the Department of glean a total of 88 gazette notified Agriculture and Cooperation, Ministry biological resources. (Reference of Agriculture vide their letter no. letter no.NBA/Tech. Gen./22/61/11- 9.14.2013-Org. Fmg dated rd 12/ dated 3 March, 2014) 08.10.2013. 5) Tariff commissions report on O&M cost 10) Report of Second Hand Machinery and of irrigation projects for Andhra its impact on competitiveness of Pradesh was requested by the MI(Stat) domestic capital goods industry- wing of the Ministry of Water Plastic Processing Machinery, was Resources for submission to the XIV presented before Director General of Finance Commission. (Ref. letter Foreign Trade, Department of th dated 16 August, 2013). Commerce, during meeting of DGFT on th 6) Department of Commerce vide their 12 December, 2013. (Reference D.O. letter no 14/7/2005-TPD dated 26 th letter no.01/93 /180/20/AM-13/PC- September, 2013, have expressed 2(B)/E50 dated 12th Dec., 2013) interest in the reports of the studies 133

137 Table-13.6 `in crores 2009-10 2010-11 2011-12 2012-13 2013-14 Plan expenditure 0 0 0 0 0 Non-Plan expenditure 6.36 6.27 6.55 6.81 6.72 Total 6.36 6.27 6.55 6.81 6.72 Number of studies done 5 25 40 40 40 Expenditure per study 1.06 0.25 0.16 0.17 0.17 reports submitted 11) The report on study on quantum, dated 22/8/2013 have appreciated the value and types of bio-resources second and third report of the exported from India, has been Commission on Spices and Aromatic appreciated by the Ministry of Plants and Horticultural Crops. Environment and Forests (Reference 14) The two reports on price of Pregnancy letter no. 28-13/2008-CS-III dated Test Kit recommended by Tariff 19.6.2013) and they have indicated Commission for the years 2009-10 and that the data provided in the study 2010-11 has been adopted by the would be helpful in the context of Ministry of Health (reference letter notification to be issued by the no.S.12012/35/2007/Supply/Pregnan Ministry on normally traded cy Kit dated 16/5/2013). commodities under provisions of the Biological Diversity Act. Tariff Commission, as per its mandate does not charge its clients. No specific funds 12) Tariff Commissions Report on Study are being allocated for studies. The entire on quantum value and types of bio- expenditure is met from the Non-Plan resources exported from India, has budgetary allocation of the Tariff been cited in the background note of Commission. Table-13.6. the Expert committee Meeting/Key- stake holder consultation on Apart from undertaking the studies strategies for up-scaling domestic referred to the Commission it also and international trade in herbal & undertook activities which inter-alia medicinal plant resources in the 12th included: Five Year Plan. (a) Strengthening of database for 13) Ministry of Environment and Forests monitoring global trade & policies. vide their letter no. 12025/1/10-CS-III 134

138 (b) Providing real-time information on the (SCO) is an attached office of this website of the Tariff Commission Department, with its headquarters at which was substantially recast, in view Jaipur and is headed by the Salt of the change in perspective and Commissioner. There are five Regional focus. Offices at Chennai, Mumbai, Ahmedabad, Jaipur and Kolkata, besides the field (c) Providing requisite disclosures under offices in the salt producing states. SCO is Right to Information Act, 2005. primarily responsible for administration of (d) Imparting training to its employees on the Salt Cess Act, 1953 and rules made emerging trade and industry, aspect of thereunder. It is also responsible for competitiveness and the changing planning and facilitating production of organizational concepts/techniques. salt, promotion of technological development, arranging equitable (e) Modernizing cum updating the library distribution and monitoring the quality and documentation facilities to and price of salt, custody and enable the organization to deal superintendence of departmental salt effectively with its mandate. lands, promotion of exports and pre- (f) Ensuring availability of a the state-of- shipment inspection, collection of salt the-art computer network infrastruc- cess, assignment fee, ground rent, ture for e-functioning. undertaking labour welfare measures, rehabilitation of salt works affected by (g) Taking up the process of refinement of natural calamities, etc. data base of the Office of Jute Commissioner for ensuring realistic The Ministry of Health and Family Welfare price fixation based on current data, is implementing a plan scheme National Iodine Deficiency Disorders Control The Tariff Commission endeavors to give Programme (NIDDCP) and SCO has been due weight-age to the use of Raj Bhasha. made the nodal agency for The efforts of the Commission in implementation of its components implementing section 3(3) and rule 5 of pertaining to monitoring of production, the Raj Bhasha Act has been appreciated quality of iodized salt at production level by the Department of Industrial Policy and and its distribution to the consuming Promotion. centers. Office of the Salt Commissioner, Jaipur SCO is the inspecting agency for the issue Salt is a central subject under Item no.58 of export-worthy certificate for export of in 7th Schedule of the Constitution of salt under the Quality Control and Export India. The Salt Commissioner's Office Inspection Act, 1963. 135

139 Subordinate Offices 5. Notification No. GSR 625(E) dated 07.08.1983, regarding Acetylene Pe t r o l e u m & Explosives Safety Generation. Organisation The Petroleum Act, 1934 The Petroleum and Explosives Safety Organization (PESO) is headed by the 1. The Petroleum Rules, 2002. Chief Controller of Explosives with its 2. The Calcium Carbide Rules, 1987. headquarter at Nagpur. It is the nodal agency to look after safety requirements 3. The Cinematography Film Rules, 1948. of explosives and petroleum products. It Major Activities and Functions has five Circle offices located in Kolkata, Mumbai, Chennai, Faridabad and Agra and 1. To approve the layout and construction 18 Sub-circle offices across the country. It plans/licensing for explosives also has a Testing Station at Gondkhairi, manufacturing units and other Nagpur where tests on explosives, safety installations ; fittings of road tankers, cylinders/ 2. To scrutinize the returns of purchase, containers are carried out and Fire use and sale of explosives throughout Research and Development Centre at the country. Sivakasi, for testing and development of eco-friendly fireworks. For ensuring 3. To regulate and implement safety safety and security of public and property regulation norms in over 2.78 lakhs from fire and explosion, the Organisation licensed premises/units used for as a statutory authority, is entrusted with manufacture, storage, transport and responsibilities under the following handling of hazardous substance; Acts/Rules: 4. To advise Port, Airport and Railway The Explosives Act, 1884 authorities in respect of transpor- tation of explosives & other dangerous 1. The Explosives Rules, 2008. substances whenever asked for. 2. The Ammonium Nitrate Rules, 2012. 5. To impart training to police personnel, 3. The Gas Cylinders Rules, 2004. security and other officers in safe handling of explosives; 4. The Static & Mobile Pressure Vessels (Unfired) Rules, 1981. Revenue and Expenditure The trend of growth in revenue and expenditure of the organisation for the last five years are given in Table-13.7. 136

140 Table-13.7. country. The data is simultaneously updated on the public domain link of the Year Revenue Expenditure Non-Plan PESOs website. Applicants can also view 2009-10 61.76 22.00 status of their application and also download letters issued by PESO. Video 2010-11 57.04 20.43 conferencing system is also in place and is 2011-12 54.33 23.58 being used for coordination amongst the 2012-13 67.14 25.20 five circle offices and head office at 2013-14 72.10 27.66 Nagpur. Modernization and Computerisation All explosive manufacturers have been The following steps have been initiated to submitting their explosive production data make the functioning of the organization online from 1st July, 2010. For holders of more efficient, transparent and user explosives magazine licenses, online friendly: submission has been made compulsory. Under the prestigious e-governance Under Explosives Rules, the existing ERS project of Government of India, the (Explosives Returns System) has been working procedures of PESO have been enhanced to compulsorily generate RE-11 re-engineered and made online. PESO has (indent) on the part of purchaser. launched its website (http://peso.gov.in) Preparation of RE-12 also goes through the in adherence to Right to Information Act, checks and balances and on actual receipt with adequate security features. The wide of explosives, the consignee accepts them area network (WAN) and related IT online in the ERS. Thus, features like infrastructure (hardware and software) knowing real-time stock have further have been upgraded according to the enhanced the ERS and streamlined the requirements. All the PESO offices have transaction of explosives to a great been brought under Explonet Network and extent. Introduction of pass for use (RE- leased line speeds of 2 Mbps for five circle 13) is another initiative launched for users offices with fall back arrangement in of explosives in mines and other sites to place. Similarly, the leased line speed has streamline the usage and maintenance of been enhanced for 18 Sub-Circle offices, records. This new initiative will greatly DTS, and FRDC Sivakasi. Licensing work of help to curb the misuse and mis- PESO, that is, grant of construction appropriation of explosives and will also approval, grant of licence, amendment, bring accountability. Sites of use of re n e wa l, su spe n sion a s we ll a s explosives with names of blasters will also cancellation of licences are being done be captured in the database. online by all PESO offices across the 137

141 The indents, pass for sale and pass for use application has also been completely of explosives are generated by the system revamped with additional features. which does not allow any licensee to deviate from provisions of the Rules. Under SMPV (U) and Petroleum Rules, an Quarterly returns of explosives (RE7) are initiative for Competent Persons has also filed online by licensees and all been launched. This initiative has transactions are cross- checked by the streamlined the online generation of test system. certificates by competent persons to a great extent. The generated certificates All District Magistrates/ SPs have been also gets linked to respective license file given link in the PESO website to see at the time of processing of applications. movements of explosives in respective During processing, PESO officers can view jurisdiction, whereas DIPP/ MHA can see certificates issued by the competent movements across the country. Of late, person online and can also verify his procedure of system-generated SMS alert signature with the online record. This will service has been started for all totally eliminate scope of forgery in the transactions of explosives i.e. in the event certification process. of issue of indents by consignee, supply of explosives, receipt of explosives etc. Office of the Controller General of Patents, Designs and Trade Marks For penal transactions under Explosives Rules i.e. suspension & cancellation, The Controller General of Patents, Designs email facility has been integrated with the and Trade Marks (CGPDTM) administers internal application. The system sends the Patents Act, 1970, the Designs Act email to concerned DM and SP (wherever 2000, the Trade Marks Act 1999 and the e-mail IDs are available) in case the Geographical Indications of Goods license is suspended or cancelled under (Registration and Protection) Act, 1999. their jurisdiction. The Office of Controller General of Patents, Designs and Trade Marks is E-filing of applications for external located at Mumbai. The CGPDTM also stakeholders under Petroleum Rules 2002 advises the Government on matters has been started. The licensees have been relating to Intellectual Property Rights. provided with facility to register with The Patent Information System and the PESO portal and maintain their License- Rajiv Gandhi National Institute of Portfolio. This system also provides them a Intellectual Property Management facility to send their application online to (NIIPM), both located at Nagpur come the concerned office of PESO across India. under the purview of the CGPDTM. The In this process to provide e-filing to CGPDTM supervises the functioning of: external stakeholder, the internal 138

142 a. The Patent Offices (including the Besides strengthening online search in the Designs Wing) at Chennai, Delhi, Patent Office database, novelty search Kolkata & Mumbai. facilities have been strengthened by subscribing to various patent and non- b. The Patent Information System (PIS) patent databases. Digitization of old IP and Rajiv Gandhi National Institute of records are almost complete and the Intellectual Property Management current records are being digitized (NIIPM) at Nagpur. immediately after filing and are stored in c. The Trade Marks Registry at the electronic database. Almost all IP Ahmedabad, Chennai, Delhi, Kolkata information has been made available to & Mumbai and the public on the official website. In order to increase the efficiency and disposal of d. The Geographical Indications Registry patent applications, 248 more Examiners (GIR) at Chennai. of Patents and Designs were selected The Government has taken several during the year 2011-12 out of which 164 initiatives to modernize and streamline had joined and 136 of them are now the intellectual property administration in working in the Patent office. At present, the country in view of the strategic the total strength of Examiners of P & D in significance assumed by intellectual the Patent Office is 201. property in the context of globalization Awareness creation is one of the major and liberalization of the Indian economy planks of the modernization scheme, as it and the increasing thrust on innovation educates IP stakeholders of the benefits of and creativity. These include both registration of their rights as also educates legislative and administrative measures to the general public, particularly the create a modern facilitative set-up. business community. These programmes Under the modernization project, four IPO are also expected to sensitize the buildings were constructed at Delhi, enforcement agencies such as the state Mumbai, Kolkata and Chennai. The police forces, customs, judiciary, etc. The construction of Trade Marks Registry & IP Office of CGPDTM either organized or Archives building at Ahmedabad and the participated in 116 IP-awareness and Rajiv Gandhi National Institute of sensitization programmes in 2012-13 and Intellectual Property Management 124 in such programmes during 2013-14 . building at Nagpur has also been completed. Also, the construction of The official website of the CGPDTM, ISA/IPEA building as an extension of the namely www.ipindia.nic.in contains existing IPO building at Delhi is nearing information that includes all IP-laws and completion. 139

143 rules administered by the Office, reports, amendments, restoration of lapsed official e-journals, public search facility patents, grant of compulsory licenses, of IP records, dynamic utilities for public, registration of patent agents, etc. under public notices and news. the Patents Act 1970. The Head Office of the Patent Office is at Kolkata with branch During the year 2012-13, the Patent offices at Chennai, Delhi and Mumbai. Office generated an income of ` 170.48 The offices deal with the applications for crore, the Designs Wing generated an patents originating within their respective income of ` 1.29 crore, the Trade Marks territorial jurisdictions. A total of 43,674 Registry generated ` 110.45 crore, the applications were filed during 2012-13; Geographical Indications Registry thus registering an increase of about 1.10 generated ` 0.088 crore and NIIPM/PIS per cent over 2011-12. The number of generated ` 0.015 crore. The total non- applications examined during 2012-13 was plan expenditure was ` 36.69 crore during 12,268 as compared to 11,033 in 2011-12. the year. Thus, against a total revenue of The number of disposals of patent cases in ` 282.32 crore earned during 2012-13, the 2012-13 was 9,027 as compared to 8,488 actual expenditure was ` 36.69 crore, disposals during 2011-12. The number of leaving a revenue surplus of ` 245.63 patent applications filed during 2013-14 is crore. In the year 2013-14, the Patents 42,950, out of which 9,540 patent Office generated revenue of 188.27 crore, applications have been received through e-filing facility. The number of Designs Wing ` 1.34 crore, Trade Marks applications examined during 2013-14 is Registry ` 120.68 crore, Geographical 18,306. Patents granted during the above Indications Registry ` 0.06 crore and period was 4,225 and number of disposal NIIPM/PIS generated ` 0.09 crore. Thus, of applications was 11,672. the total revenue generated by the Office of CGPDTM during 2013-14 is ` 310.44 Indian applicants are also increasingly crore, which is higher than the revenue using the Patent Cooperation Treaty (PCT) earned in the previous year. route to obtain patents in other countries. The total number of international A brief summary of the activities of the applications filed by the Indian applicants various offices under CGPDTM is given using the PCT system during the period below: from 1st April, 2013 to 31st March, 2014 Patent Office: was 816. The Patent Office performs statutory Th e Worl d I n te l l e c tu a l Prop e rty functions relating to the grant of patents Organization (WIPO), a United Nations for inventions, renewal of patents, agency specialized in the field of 140

144 Intellectual Property Rights, in its General technical / scientific field. Also, the Assembly meeting held in September- facility for viewing First Examination October 2007 at Geneva recognized the Report (FER) issued (Jurisdiction and Indian Patent Office as an International Group-wise) at all locations of Patent Searching Authority (ISA) and an Office has been made available. The International Preliminary Examining facility for Online filing of all forms in the Authority (IPEA) under the Patent Co- first Schedule of Patents (Amendment) operation Treaty. This puts India in an elite Rules have been made available through group of 17 Patent Offices recognized as the comprehensive e-filing portal in the ISAs and IPEAs. Patent Office has started website. functioning as ISA/IPEA at Patent Office The patent search facility in the website Delhi with effect from 15th October, 2013. has been considerably strengthened. The During 2013-14, 145 international status of patent applications including applications choosing India as ISA have publication, examination and grant as well been received in Patent Offices at four as all post- publication patent documents locations. are available freely for public search in Under the project of modernization of the website. The Patent Office subscribes Patent Offices, a dynamic Patent Search to major global patent and non-patent Portal has been developed in the IPO databases for prior art search to be website and many dynamic utilities on conducted by the examiners. The Manual patent have been made available to the of Patent Office Practice and Procedures public like, displaying the month of filing has been prepared to ensure uniformity in of Request for Examination for which First operation and the same is available on the Examination Report is being issued; group- website. Further, the Guidelines for wise and location-wise dates of Requests Processing of Patent Applications relating of Examination (RQ) for which First to Traditional Knowledge and Biological examination Report (FER) has been sent to Material , Guidelines for Examination of the applicants; status on disposal of Biotechnology Applications,Draft patent applications by the respective Guidelines for Examination of Patent examination groups during the specified Applications in the field of Pharmace- period. The utility for facilitating the uticals and Draft guidelines for search to ascertain the status of a patent Examination of Computer Related has also been provided. Besides, the Inventions have been published in the facility for displaying patents, which have official website. The digitization of old expired or ceased to have effect by reason patent records is almost complete and of failure to pay the renewal fee has been current patent records are digitized provided by their number, title and immediately after filing the documents so 141

145 that these are available for examination. examiners was conducted. Besides, 14 These steps have resulted in a significant public programmes on IP-awareness/ improvement in the performance of the training were conducted by RGNIIPM office as well as in overall transparency during 2013-14. and public service dissemination. Industrial Designs Wing: Rajiv Gandhi National Institute of The registration of industrial designs Intellectual Property Management under the Designs Act 2000 is carried out (RGNIIPM) and Patent Information by the Designs Wing of the Patent Office System (PIS), Nagpur: located at Kolkata. Filing of design Patent Information System (PIS) at Nagpur applications in branch offices at Chennai, maintains a comprehensive collection of Delhi and Mumbai is also permitted. The patent specifications and patent related thrust of the modernization programme of literature on worldwide basis and provides the Design office includes transition from technological information contained in the essentially paper-based examination patent or patent related literature procedure to an IT based system which is through search services and patent copy supported by computerized records, supply services to various users like online search facilities, a user-friendly industry, R&D organizations, inventors, website and a digital library. Government departments and During 2013-14, 8,553 design applications undertakings, entrepreneurs, business were received, 7,281 applications were community and other IP users in India. examined and 7,178 designs were The Rajiv Gandhi National Institute of registered. Intellectual Property Management Trade Marks Registry (TMR): (RGNIIPM) Nagpur is a specialized institute catering to training, education, research The Trade Marks Registry (TMR), with its and think tank functions in the field of Head Office at Mumbai and branch offices Intellectual Property. It provides training at Ahmedabad, Chennai, Delhi and to Examiners of Patents & Designs and Kolkata, performs statutory functions regularly conducts refresher courses for relating to administration of the Trade them. It also organizes awareness Marks Act, 1999 and maintaining the programme for users such as patent register of trademarks. attorneys, scientists, researchers etc. During the year 2013-14, 2,00,005 During the period from April 2013 to trademark applications were filed. Out of March, 2014, induction training for 9 this, 38,145 trademarks applications were examiners from the third batch and 1- received through e-filing facility. During month advanced training for 140 new 2013-14, the number of applications 142

146 examined were 2,03,086 and trade mark history, examination report, copy of the registered were 67,873, whereas the application, copy of the trademark number of disposal of applications was certificate, opposition details etc. have 1,04,753. The total number of registered been made available free of cost to the trademarks in India as on 31st March, 2014 public through the official website. is 9,75,964, out of which the number of registered trademarks by Indian The Government of India has acceded to applicants is 7,22,566. the Madrid Protocol for protection of trademarks through international A dynamic Trade Mark Search Portal has registrations by depositing Instrument of been developed in the IPO website and Accession with the World Intellectual many dynamic utilities on trade marks Property Organization on 8th April, 2013. have been made available to the public in The necessary amendments in the Trade order to achieve complete transparency in Marks Act 1999 and Trade Marks Rules 2002 the functioning of Trade Marks Registry. have been made and the provisions of These include online tool for attending to Madrid Protocol have come into force in the requests for correction of clerical India since 8thJuly, 2013. errors in the trademark records, details of TMR hearing and adjournment, display of As on 31st March, 2014, India has been the details of examination of trademark designated for the protection of applications, show-cause hearings, trademark in approximately 3138 publications in the trademark journal, international applications. Indian office registrations of trademarks, other has received 81 applications for disposals of applications (i.e. by way of international registration of trademarks abandonment, refusal etc.), other notices under the Madrid Protocol, out of which 74 issued month-wise or date-wise, applications have been certified and classification of goods and services under forwarded to the WIPO till 31st section 8 (1) of Trade Marks Act, 1999 for March,2014. the purpose of registration of trademarks Geographical Indications Registry (GIR): and online filing of reply to an examination report in respect of The GIR is a statutory organization set up trademark application through the for the administration of the Geographical comprehensive e-filing services for Indications of Goods (Registration and trademarks on real time basis. Further, Protection) Act, 1999, which came into the comprehensive details of pending force on 15th September 2003. The Trade Mark Applications as well as Registry is situated at Chennai. As on 31st Registered Trademarks including the March, 2013, 193 Geographical Indications scanned copies of documents, prosecution (GIs) have been registered. 143

147 The list of registered GIs (products) inter documents launched on 14thFebruary, a l i a i n c l u d e s D a r j e e l i n g Te a , 2013. PochampalliIkat, Chanderi Fabric, Kota Intellectual Property Appellate Board Doria, Kancheepuram Silk, Mysore (IPAB) Agarbathi, Mysore Silk, Madurai Sungudi, Kullu Shawl, Assam (Orthodox), Nilgiri Intellectual Property Appellate Board (Orthodox), Kani Shawl, Kashmir (IPAB), a quasi judicial body was set up as Pashmina, Kashmir Sozani Craft, Lucknow statutory Board by the Government of Chikan Craft, Venkatagiri Sarees, Villianur India vide Gazette Notification No: S.O Terracotta Works, Mango Malihabadi 1049 (E) Dated 15.9.2003. It has been Dusseheri, Vazhakulam Pineapple, established to hear appeals against the GirKesar Mango, Udupi Mattu Gulla decisions of the Registrar and to hear Brinjal, etc. As on 31st March, 2014, 75 applications for rectification of entries in applications for Geographical Indications the Registrar of Trade Marks under the have been received and 22 applications Trade Marks Act, 1999, the Geographical have been registered. Indication of Goods (Registration and Protection) Act, 1999, and Patents Act, The Geographical Indications Registry has 1970. IPAB has its headquarters at Chennai conducted many awareness programmes and besides Chennai, it holds the Circuit throughout India to promote registration Bench Sittings at New Delhi, Mumbai, of the Indian Geographical Indications. Kolkata and Ahmedabad, Presently, Shri The Sectors being focused on are tea, Justice K. N. Basha is the Chairman and Ms. coffee, rice, spices, tobacco, horticulture S. USHA is the Vice Chairman of the Board, products, handloom products, Shri D. P. S. Parmar is the Technical handicrafts, textiles, processed food Member (Patents) and Shri Sajneev Kumar items, and spirits & wines. The Chaswal is the Technical Member Geographical Indications Registry had (Trademarks). conducted 10 awareness programmes/ seminars/workshops on GI during 2013-14. The number of appeals/applications Besides this, the GIR officials have transferred from various High Courts participated as faculty in 6 GI awareness (Transferred Appeal/Transferred Rectifi programmes conducted by external cation Application) and the number of agencies. original appeals/application (Original Appeal/Original Rectification Application) Further action has been taken to improve directly filed before the Intellectual the functioning of the GI Registry. This Property Appellate Board are as given includes in-house publication of GI below: journals and online pubic viewing of GI 144

148 During the period from April 2013 to Patent Cases have been filed and 121 cases 31st March 2014, 812 Trade Marks Cases have been disposed of. One (1) GI case have been filed and 494 cases have has been disposed of during the above disposed of. During the same period 168 period. TRADE MARKS CASES RECEIVED (as on 31.03.2014) Cases Transferred Transferred Original Original Received Appeal Rectification Appeal Rectification TOTAL Application Application Chennai 53 61 344 510 968 Delhi 209 107 131 905 1352 Mumbai 19 7 105 562 693 Ahmedabad 49 21 93 206 369 Kolkata 29 4 128 206 367 Total 359 200 801 2389 3749 TRADE MARKS CASES DISPOSED (as on 31.03.2014) Cases Transferred Transferred Original Original Received Appeal Rectification Appeal Rectification TOTAL Application Application Chennai 53 61 238 263 615 Delhi 203 105 84 278 670 Mumbai 16 7 38 122 183 Ahmedabad 48 15 63 103 229 Kolkata 26 3 81 76 186 Total 359 191 504 842 1883 GEOGRAPHICAL INDICATION CASES RECEIVED ( as on 31.03.2014) Cases Transferred Transferred Original Original Received Appeal Rectification Appeal Rectification TOTAL Application Application Chennai -- -- 6 -- 6 Total 145

149 GEOGRAPHICAL INDICATION CASES DISPOSED ( as on 31.03.2014) Cases Transferred Transferred Original Original Received Appeal Rectification Appeal Rectification TOTAL Application Application Chennai -- -- 1 -- 1 Total 1 1 PATENT CASES RECEIVED ( as on 31.03.2014) Cases Transferred Transferred Original Original Received Appeal Rectification Appeal Rectification TOTAL Application Application Chennai 5 14 64 54 137 Delhi 5 3 117 48 173 Mumbai 6 9 39 56 110 Kolkata 1 2 14 38 55 Total 17 28 234 196 475 PATENT CASES DISPOSED ( as on 31.03.2014) Cases Transferred Transferred Original Original Received Appeal Rectification Appeal Rectification TOTAL Application Application Chennai 5 14 30 29 78 Delhi 2 3 42 10 57 Mumbai 6 8 22 18 54 Kolkata 1 1 3 8 13 Total 14 26 97 65 202 Central Manufacturing Technology autonomous body, registered as a Society Institute, Bangalore and under the Administrative control of Department of Industrial Policy & Central Manufacturing Technology Promotion, Ministry of Commerce & Institute, a premier R&D organization in Industry. It is supporting the Indian t h e m a n u f a c t u r i n g t e c h n o l o g y, industry to achieve excellence in established in the year 1962, is an technology and stimulate economic 146

150 growth. The Institute is active in metal Advanced Machine Tool Testing Facility - a working technology, evolving solutions to PPP initiative is nearing completion and is national strategic initiatives and is a one- now operational. stop destination for end-to-end solutions The innovation chairs set up in the area of in manufacturing technology deployment. nano-manufacturing technology and high It functions through Governing Council, tech. product are guiding the R & D which has representatives from industries projects of CMTI. Under the guidance of in manufacturing sector, machine tool these chairs a number of R & D projects manufacturers, Government nominees have been initiated. Some of the and others. explorative themes include (i) realization CMTI continues to support the Indian of Nano-needles for medical applications, engineering industry and various sectors (ii) Vision systems for on-line evaluation of through its value added services in machine tool accuracies, (iii) Cryogenic manufacturing technology and product cutting, (iv) vortex cooling for machine development/realization activities. It tool control enclosures, (v) aerostatic continues to play a vital role of a catalyst spindles for nano-metric accuracy, (vi) in the application of manufacturing alternative materials for machine tool technology. The Institute is equipped with applications, (vii) green manufacturing, trained manpower, equipment and and others. facilities for design, research, prototype The various collaborative R & D projects production, manufacturing, testing, that are under various stages of progress inspection, calibration, product include Abrasive Flow machining, development, training and technical Intelligent ultra-precision machine tool, information. Development of Technology for Nano The implementation of major projects Composite Structure using CNTs and under the XII plan are in various stages of Ceramics, Micro Stereo Lithography, progress which includes the establish- Determination of Nano - scale feature ments of activities and procurement of dimensions using an optical imaging advanced high technology equipment and technology, Green machining including establishments of facilities for Nano- hard turning, Advanced Metrology and Manufacturing Technology Centre (NMTC), Material characterization technologies, Applied Mechatronics Integration facility Mechatronics including Parallel Kinematic (AMIF), Advanced Machine Tool Testing Machines. Facility (AMTTF) and Academy of Collaboration with national academic Excellence for Advanced Manufacturing institutions like NITK, Surathkal, NIT, Technology (AEAMT). Warangal, MVIT, Bangalore and other 147

151 institutions are being pursued. IV. Feasibility study on providing inspection of Crankshaft for Performance During the Year automobile industry and Dripper for 1. XII Plan Projects on Advanced irrigation sector has been completed. Technology Areas: V. Integration of Embedded board with a) Applied Mechatronics Integration motor drive module for motion control Facility (AMIF) and to provide low cost vision based automation solution to industries is in As a part of this activity under AMIF progress I. 3D Vision research for dimensional VI. Realisation of a Parallel Kinematic measurements using structured Machine is complete. lighting and stereo technique is under progress. b) Nano Manufacturing Technology Centre (NMTC) II. Research on surface characterization and defect identification of specular As a part of this Flagship project under component. DIPP, III. 3 D i m e n s i o n a l I n s p e c t i o n o f 1) Civil work for the construction of dimensions and surface defects by NMTC building is in progress. Machine Vision is in progress. 2) Several advanced equipment like a) Fast Tool Servo (FTS) System b) Q u a n t a c h r o m e A u t o s o r b i Q - C Physisorption and Chembet Pulsar Chemisorption systems c) Low G Accelerometer and Tri Axial Accelerometer d) Nano Sensors and Eddy current displacement measurement system e) FTIR spectrometerhave been procured and installed in the existing underground lab. (f) Mask Aligner is in the process of Camera mounted on robot arm capturing procurement. multiple views of the calibration plate 148

152 3) Collaborative R & D and related activities that are under various stages of progress include (i) Abrasive Flow machining for Nano finishing an R & D Platform for furthering abrasive flow machining technologies including abrasive media, (ii) Intelligent ultra- precision diamond turning machine capable of nano-metric dimensional and feature accuracies, sensor Process established for machining wide variety of metal optics integrated machining process, etc., (iii) Development of Technology for c) Academy of Excellence for Advanced Nano Composite Structure using CNTs Manufacturing Technology (AEAMT) and Ceramics, (iv) establishment of As a part of this Flagship project under indigenous advanced R & D set up for DIPP and the Industry Ready Engineers Micro stereo lithography, (v) initiative Development of Laser dressing devices for super abrasive wheels for 1) The third batch of Post Graduate commercial application and R & D, (vi) Diploma in Advanced Manufacturing Determination of Nano - scale feature Technology (PGDAMT) has successfully dimensions using a novel optical completed the course with 100% imaging technology, (vii) Advanced placement in prestigious companies. Metrology and Material 2) Evening course on CNC Programming characterization technologies. through Mastercam X7 Software was conducted. 3) Academy infrastructure including Advanced manufacturing and Technology Laboratories, Web- enabled learning facilities, Library, etc., is being built and is nearing completion. 4) CMTI and Sir M Visvesvaraya Institute of Technology signed a Memorandum of Understanding, for collaborative R&D in Design and Manufacturing engineering. iUPTM Machine 149

153 d) Advanced Machine Tool Testing Facility (AMTTF) This PPP initiative between DIPP and Machine Tool Industries is nearing completion and is already operational at the CMTI campus. Several testing assignments have been completed and prospects are being pursued with industries. 2. Design & Development The Institute undertakes design and Centerless Bar Turning Machine Double Head (TBCDHG-36) development of Special Machines, Equipment and Test systems for 3. Precision Manufacturing Services customers. Currently, the Institute is involved in the following : Technologies for manufacture of several precision parts were developed for various 1. Design of Twin Screw continuous mixer customers. is nearing completion a. Micro machining using FS Laser 2. Design of Special Cutting Device is in Micromachining system progress o Poly Crystalline Diamond Turning 3. Manufacturing of components for Tools were machined using FS centreless bar peeling machine is in Laser for controlling the tool progress nose waviness to 22 m. 4. Special toolings for applications in the ship building industry are in the final o Micro holes 30mx300m deep stages of completion. holes were made in Ceramic and Titanium 5. The Double head Centreless Bar Turning Machine are in the final stages o Micro fluidic channel of width of completion. 1mx1m deep 2mx2m deep 3mx3m deep (10 nos.) were 6. The components for 3000 L and 4.5 T machined capacity vertical mixers are in advanced stages of manufacturing. o 183m deep x 366m wide x 7. The assembly of 160 Litres pilot 2000 long slots were made in processing vertical mixer is in steel Micro capillary tubes progress. 150

154 o Masks containing slots of 50m e. Alpha source capsules for space widthx 0.5mm deep, 10m applications made of Titanium alloy widthx 0.2 mm deep (containing material having micro-size features 16 Fingers) in Stainless Steel, with high dimensional and geometrical were machined. These masks are accuracies. used for coating of Gas sensors 4. R & D on Rapid Prototyping by sputtering. R & D is being taken up for the b. Machining trials were conducted on following : Copper coated Polyamide (kapton) sheet to machine 384m width X 30 a. Laser sintering of nickel coated copper m deep slots This has applications in by DMLS process. Microwave Antenna (Dual Gridded b. T h e o p t i m i z a t i o n o f p r o c e s s Reflector -DGR). parameters and characterization c. Precision Floating Frame Balance for through DMD process wind tunnel testing applications P Deposition of Chromium on used for measuring the forces Stainless Steel developed during wind tunnel testing of aircraft models P Remanufacturing of Turbocharger shafts. d. Target holders used in Sputter-coating systems for holding the coating source 5. Technology Development material. Target holders are highly Some of the manufacturing technology accurate made of molybdenum to development projects (continuing withstand high temperature. activity) are: a. The centreless axial feed rollers b. Micro hole on Ceramic c. Salvage of Shaft & Wheel seal groove damage using Laser Cladding d. Gas compressor parts e. Cantilever on copper foil f. Micro machining & spiral grooving of special alloy components Alpha source capsules 151

155 g. Drilling of micro hole on valve body Annual Maintenance for Pump Test Rig Facilities of LCA Pumps. 6. Testing & Evaluation 7. Calibration & Inspection Services Testing and evaluation of airworthy products are taken up as a continuing a. Calibration of masters and inspection activity: of very accurate components in the area of length, angle, form, surface P Assembly & testing of airborne finish and gears with traceability to quality hydraulic system filters international standards (256 for aerospace applications. assignments). P Pressure Impulse Test on b. Calibration of slip gauge sets, surfaces differential pressure indicator roughness masters, Master Cylinders. Testing of pneumatic cylinders, Cylindrical Squares, Glass Scales, Filtration efficiency test and dirt Glass Hemispheres, Master Gears, holding capacity test, Functional test Extensometers, Optical Flats, Optical and proving of centrifuge for its Parallels, Steel balls and Metallic performance, pressure setting on spheres, Test Sieves, Electronic levels, thermal relief valves, testing of Granite Squares, Polygon mirrors, hydraulic elements, measurement of extramesses, supramesses, and oil contamination level, component conventional measuring instruments . cleanliness level checking, calibration c. Calibration / alignment of CNC of pressure gauges, temperature machines (10 instances), CMM (2 transducers, thermometers & RTD, instance were carried out at hydrostatic pressure testing and customers works and Length supply of calibration fluid were Measuring Machine (1 instance) using carried out as routine testing services. Laser measurement systems. (193 assignments). d. Inspection support for gears, on site The Chemical laboratory (NABL calibration of Universal Length accredited) provided services in the Measuring Machine and Gauge Block area of chemical analysis of metals Comparator. and alloys, identification of metal coating and measurement of metal e. Balancing of Machine Tool Spindles, coating thickness, calibration of propellers, Armatures, Tool adapters, balance & weights, surface Rotors, Electric Motors and Condition treatment, oil analysis and corrosion Monitoring service for industries were testing (515 Assignments). also provided. 152

156 f. M e a s u r e m e n t t e c h n o l o g y f o r inspection of button groove depth. g. Nano Characterisation Services I. Characterization of silicon for estimating the percentage of crystallanity II. Characterization of Organic Components III. Characterization of single wall and multi wall CNTs Spindle Error Measurement IV. Characterization on Surface of Measurement of Chatter vibrations watch dial during machining of steel h. Noise & Vibration measurement / Ground vibration measurement to Analysis & Consultancy services assess the ground vibration induced by continued for industries from metro train for NMTC site. automobile OEMs, automobile component OEMs, machine tool & 8. Facilities Added / Upgraded Inspection machines OEMs, Diesel The following facilities were added/ engine manufacturers, Defence, upgraded under the various plan projects: Aerospace and SMEs in manufacturing industry, etc. (9 assignments). Advanced Technology Equipment Industrial Robot Highlights of the activities are as follows: Embedded board and motor drive hardware I. Spindle Error Measurement, Thermal Stability Test, FRF and Vibration Tri Axial Force Sensor Measurement on Vertical Machining Acoustic Emission Sensor Centre. Gauge Block Comparator Experimentation to Cutting Force Grade K Slip Gauges study in micro end milling by Up gradation of UPMC 850 measurement & analysis of Cutting Force Up gradation of Surface Roughness Tester Dynamic balancing of propellers, nozzles etc. 40 T crane 153

157 The following Equipment are planned for procurement 1. Motor current analysis system 2. M i n i a t u r e t y p e Tr i axial Accelerometer 3. ICP Microphones 4. NVH Simulation Software 5. Two Channel Portable FFT Analyser. 6. 10 T crane Dedication of Special Product Integration 9. IT in Manufacturing Facility by Shri Ajay Shankar, Member Secretary, NMCC Biometric access system is in Sansera Engineering Pvt Ltd, covering advanced stages of completion CNC & conventional machining, CNC Redesign of CMTI website is completed Operation & Programming and Fluid Power, Awareness on ISO 17025:2005. IPv6 implementation is in advanced stages of completion In-house training courses (10) were conducted in different areas of 10. Improvement of Infra- structure m a n u f a c t u r i n g l i k e Pr e c i s i o n An additional workshop bay to enable M e a s u r e m e n t s & M e t r o l o g y, assembly & testing of large machines Laboratory Quality Management & and equipments is completed and Internal Audit, Calibration of the workshop was dedicated by Shri Dimensional Measuring Equipments, Ajay Shankar, Member Secretary, Mechatronics & Manufacturing NMCC. Automation, Material Selection & Heat Treatment of Ferrous Alloy, Renovation of Welfare & Canteen Uncertainty of Measurements for building are completed Dimensional Measurements, Gear The asset register creation is Engineering, Management System completed using Asset Management Document & Internal Audit as per System. ISO17025:2005 etc. 11. Technology Transfer/ HRD 12. Publications & Papers Corporate training programs were Technical Papers (11) have been conducted for Wipro Kawasaki, published in National and 154

158 international conferences in the field Technical Discussions / Business of MEMS for health monitoring of CNC proposals and familiarization with the machines, Nano metrology, tool wear facilities and activities of the and metal deposition process. Institute. The monthly journal Manufacturing The Minister of Commerce & Industry, Technology Today is being brought out Government of India dedicated the regularly. Parallel Kinematics Machine [PKM] - one of the complex mechatronics An exclusive life-time collection of systems - developed with R & D technical publications donated by Dr. licensing agreement with M/s Komanduris family and Prof Satish Exechon, Sweden and the state of the Bukkapatnam of Okhlahoma State art Plasma Enhanced Chemical Vapour University, USA was dedicated for R & Deposition System [PECVD] for D at CMTI by Lt. Gen. Dr. V. J. carrying out research in thin films. Sundaram, Former Director DRDL and RCI. A collection of Dr. Komanduris The Minister also had an Interaction technical articles compiled by CMTI session with CMTI Scientists, was also released for reference by academicians, R & D Institutions & researchers. Industry representatives during his visit 13. Visit of Dignitaries & Delegations Pr o f S a t i s h B u k k a p a t n a m of Several International and Indian Okhlahoma State University dignitaries from Industries, Government and Research Lt. Gen. Dr. V. J. Sundaram, Former Organisations visited CMTI for Director DRDL and RCI Release of collections of late Prof. CIM in an interactive Dr Ranga Komanduri by Shri Ajay Shankar, session with CMTI Scientists, academicians, Member Secretary, NMCC R & D Institutions & Industry representatives 155

159 Shri Ajay Shankar, Member Secretary, NMCC. Srilankan delegates visited CMTI for exploring areas of collaboration Address by Dr.R.Chidambaram 14. Technical Lecture Programmes / Seminars under NMTC and AEAMT Under the aegis of Nano Manufacturing Technology Centre (NMTC) and Academy of Excellence for Advanced Manufacturing Presentation to Srilankan delegates Technology (AEAMT) the following Technical presentations were arranged. Dr R Chidambaram, Principal Scientific Advisor (PSA) to Government of India. 1) INORA Spatial Reference System(SRC) the PSA witnessed the advanced for Quick Health Check & Laser systems/products, R & D Platforms Calibration of CMMs by M/s. Sandeep developed at CMTI, live demonstra- Engineers tions of R&D experimen-tations, 2) Resource Efficient Production micro/ nano machining and Charact- Technology Cold Forging & Forming erisation facilities, etc. He interacted jointly organised by FhG-CII-CMTI with the young scientists engaged in R&D projects. He had an exclusive 15. HR Initiatives for CMTI Scientists interaction meeting with the a) Participation in Conferences, representatives of industry, academia Seminars and R&D Institutions collaborating with CMTI in technology and product CMTI scientists were deputed for development. He also gave a special various conferences and seminars address on knowledge economy citing covering Problem Solving using Design examples to the august gathering. of Experiments, Materials and Heat Tr e a t m e n t f o r M a n u f a c t u r i n g Engineering, Advanced Uncertainty 156

160 Measurement Technique by Monte 1. intelligent ultra-precision turning Carlo Simulation, etc. machine with nano level accuracies, National Conference on Micro Nano 2. Micro stereo lithography, Fabrication (mnf) at CMTI, 3. Abrasive Flow Finishing machine, Bangalore 4. Automated vision based inspection The First National Conference/ system for features, defects & non- Workshop on Micro & Nano fabrication contact dimensional measuring , was held at CMTI during 21st to 23rd January 2013 with the theme To 5. Laser Dressing system for super Promote, Foster & Enhance activities abrasive grinding wheels. in Micro & Nano Fabrication. CMTI Stall at IMTEX 2013 Inauguration of mnf 2013 by International Engineering & Lt. Gen. Dr. V. J. Sundaram, Technology Fair (IETF), New Delhi Former Director DRDL and RCI , Shri. Ajay Shankar, Prof.S.Mohan As part of the International Engineering & Technology Fair (IETF), 2013, CMTI IMTEX 2013, Bangalore conducted a workshop on Advanced CMTI participated in IMTEX 2013, the 16th Manufacturing Technology for Automotive Indian Metal Cutting Machine Tool Industry along with CII to disseminate Exhibition held at Bangalore International knowledge and sharing insights into the Exhibition Centre (BIEC), Bangalore, recent developments in manufacturing during 24-30 Jan 2013 technology. This has been the focus area for international cooperation and has CMTI has showcased at IMTEX 2013 the gained momentum through the India- UK following Innovative products initiative of Joint Economic & Trade 157

161 Committee Joint Working Group (JETCO 17. Memorandum of Understanding / JWG) on advanced manufacturing & Non Disclosure Agreement engineering coordinated by CII. The a) A Memorandum of Understanding participants included a wide spectrum (MoU) is inked between i2n of delegates from the automotive Technologies and CMTI to jointly work industries. for the collaborative R&D Projects in Scanning Probe Microscope (SPM). Workshop on Advanced Manufacturing Technology Exchange of MOU between i2n Technologies and CMTI b) Training on advanced technology b) A Memorandum of Understanding was equipment inked between National Aerospace Laboratories and CMTI to jointly One scientist visited M/s Bruker, develop, manufacture & assemble Germany for advanced training on X- wind tunnel models, floating Ray Diffractometer. frame/integral balance. Two scientists visited Western c) Memorandum of Understanding (MoU) Michigan University, USA for training was inked between IIT, Kanpur and on real time measurement of machine CMTI for the development of tool vibration for adaptive control. prototype magnetic abrasive flow 16. Awards & Appreciations finishing machine for nano level finishing. Intelligent ultra-precision turning machine developed at CMTI was presented d) A reciprocal NDA was signed between with prestigious FIE Foundation HMT Machine Tools Limited, Bangalore award for technology innovation at IMTEX and CMTI for providing testing and 2013, validation services. 158

162 Central Pulp & Paper Research Institute, Funded Projects focused on the following Saharanpur areas: Central Pulp & Paper Research Institute Raw material research, (CPPRI) , Saharanpur is a premier research Energy & environmental management, institute dedicated to the service of pulp , paper and allied industries. It is an Quality improvements, autonomous organization under Water conservation and administrative control of Ministry of Commerce and Industry, Government of Information dissemination India. The Institute prides itself of having Major Achievements of the Institute state of art facilities and equipments and during 2013-14 a team of dedicated, well experienced and trained scientists to carry out quality 1) Projects Under the 12 th Five Year research work in various areas of pulp & Plan paper making i.e. conservation and upgradation of raw material , product i) Utilization of Rice Straw and other Non-conventional Raw materials for quality improvement, energy and Production of Various Grades of Pulp environmental management , biotechno- logical applications, waste paper Detailed literature survey in the areas processing , human resource cited below was carried out for planning of development, etc. the project activities: The management of the institute rests v Availability of rice straw for Indian with the Council of Association, which has Paper Industry. members from the Industry, R&D v Storage and handling of rice straw. organizations and the academia. The activities funded by the Plan Funds are v Pulping practices for rice straw. monitored by the Research Advisory Committee. The activities utilizing the v Bleaching practices for pulps obtained Cess funds are monitored by the Cess from rice straw. Committee. Further studies will focus on- R&D activities of the Institute are v Collection of rice straw from various designed to continuously support the climatic zones of the nation having growth of the Indian Pulp & Paper Industry highest production of rice straw like in terms of sustainability and West Bengal, Chhattisgarh & Assam competitiveness. Accordingly, the R&D etc. schemes of XII Five Year Plan & Cess 159

163 v Each sample collected will be iv) Incremental Capacity Enhancement subjected to Proximate Chemical and Improved Efficiency of analysis and efforts will be aimed to Conventional Chemical Recovery remove silica from the raw material. System in Wood and Non wood based Various pulping processes will be Paper Mills employed to produce different grades Studies were initiated on black liquor of paper by blending the rice straw collected from a non-wood based mill. pulp with long fibre indigenous raw Characterization of collected black liquor material pulps. completed. ii) New Approaches in Processing and v) Wa t e r C o n s e r v a t i o n t h r o u g h Paper Making of Recycled Fibre to Application of Kidney Technologies Improve the Quality of End Product in Pulp and Paper Industry R & D work is in progress to evaluate the The project activities were initiated with efficacy of Dry Strength Resin (DSR) of identification and selection of mills for different charge density to improve the adoption as case study. Questionnaire strength properties of Deinked pulp (DIP) were prepared and sent to the mills for of ONP/ OMG furnish. Simultaneously collection of information and data related studies were initiated to study the effect to water consumption, re-use and on Bio co-polymers on improving recycling practices adopted by the mills the Water Retention Value (WRV) and etc. A study has been initiated at a RCF fiber-fiber bonding potential of OCC based mill claiming Zero Liquid Discharge furnish. (ZLD) where regular collection and iii) I m p l e m e n t a t i o n o f E n z y m e analysis of back water and treated water Application in Pulp & Paper Industry is being carried out to study the build-up of TDS and other pollution load and its The project aims to implement the impact on product quality and overall biotechnological applications in pulp & impact on mill operations. paper industry to pursue clean & green technology to address issues related to vi) Strengthening of Training and HRD energy conservation, quality up-gradation Infrastructure in Pulp, Paper and and environmental improvement. Studies Allied Industry are in progress for designing suitable Bio-technology biotechnological interventions for energy reduction and lowering of environmental v Training was imparted to three M.Sc. loads due to process streams students in the area of biotechno- 160

164 logical applications in pulp and paper objective to improve bleached pulp industry. quality & liquid discharges. Pulp & Papermaking v Bagasse unbleached pulp having 12 Kappa No. was bleached employing v Forty Four student trainees from Dr. Y. following total chlorine free (TCF) S. Parmar University of Horticulture bleaching sequences. and Forestry Nauni, Solan (Himachal Pradesh) were trained in the area of Z(EP)QP Pulp & Papermaking, from April 01- 12, AZ(EP)QP 2013, in two batches. OAZ(EP)QP v One month training was imparted to two students from Sant Longowal Final bleached pulp obtained after each Institute of Engineering & Technology bleaching sequence was characterized for (Haryana) and Dr. B.R. Ambedkar physical strength as well as optical University, Agra (U.P.). properties. Chemical Recovery v Results revealed that incorporation of A and OA in stages in case of bagasse v Five month training was imparted to pulp helped in reduction of kappa one student from D.C.R.U.S.T, Murthal number from 10 for AZ(EP)QP Sonipat. sequence to 8 for AZ(EP) QP sequence Environment Management & 4.3 for OAZ(EP)QP sequence. v Two month training was imparted to v TCF bleached Bagasse pulp employing one student from CCS University, Z(EP)QP , AZ(EP)QP and OAZ(EP)QP Meerut (U.P.). showed final bleached pulp brightness of 77.9, 80.2 and 83.4 % (ISO) v Three month training was imparted to respectively and CED viscosity of 726, one student from Kurukshetra 693 and 601 cc/gm respectively . University (Haryana). v Final bleached pulp strength 2) Cess Funded Projects properties for Z(EP)QP , AZ(EP)QP and i) Studies on Ozone Treatment of OAZ(EP)QP TCF bleaching sequences Indigenous Raw Material Pulp for at 300 ml CSF level indicated burst better Bleachability index 2.61, 3.80 and 2.54 Kpam2 /gm and tensile index 48.4, 62.14 and 44.0 Ozone treatment studies were continued Nm/g and tear index 5.38, 6.05 and on indigenous raw material pulp with the 6.16 mNm2/g respectively. 161

165 ii) A n I n t e g ra t e d A p p r o a c h f o r September, 2013, wherein the members Utilization of Bagasse Pith for and other captains of the paper industry Production of Bio-ethanol and Value interacted with the Minister of State for Added Lignin Products (CPPRI/IIP, Commerce & Industry, Department of Dehradun) Industrial Policy and Promotion. The objective of the project aims at Initiating the meeting, Shri Talleen Kumar, efficient utilization of bagasse pith IAS, Joint Secretary, Department of through development of a process for Industrial Policy and Promotion welcomed production of bio-ethanol and value added the Honble Minister to the meeting and chemicals. summarized the status of the paper sector. It was informed that the paper The project was completed successfully sector is highly capital intensive as a result and the final report of the project has of which the Industry finds it very difficult been submitted to CESS committee. to raise capital from the market and has to iii) Development of Environmentally rely mostly on internal accruals for Safe Biological Process to Bleach the capacity expansions. It was also submitted Bamboo & Wood Pulp using Potential to the Hon'ble Minister that the Industry Bacteria (CPPRI/IGIB, New Delhi) faced acute raw material crisis. A mechanism for use of degraded forest The aim of the project was to develop an lands for pulpwood plantations was put environmental friendly bleaching process forward by the Working Group Report but for biobleaching of wood pulps using its implementations are still a long way ligninoloytic bacteria for the reduction in from implementation and DIPP is taking up the demand of chlorinated bleaching the matter with MoEF, the nodal ministry chemicals and improvement in pulp in this case. Thereafter, the Chairman of quality. DCPPAI, Shri Harsh Pati Singhania, M.D., JK The project was completed successfully Paper Ltd., presented issues related to and the final report of the project has raw material, coal prices, effect of Free been submitted to CESS committee. Trade Agreements, and problems related to land acquisition for pulpwood Important Meetings plantations. Request for reduction of Special Session of the Development duty on imported wood chips and bamboo Council for Pulp, Paper and Allied were also put forward and discussed. The Industries issue of first use of bagasse for paper industry was also discussed. It was A special interactive session of the th informed that sugar industry may be Development Council was called on 4 requested to use the advanced depithing 162

166 technology developed by CPPRI and use Modernization Assistance Program only the non-fibrous portion of bagasse for (TMAP), PAT scheme, Promotion to agro burning. forestry, Skill development, Illegal dumping of newsprint and review of the A follow up meeting of the Development th progress of Cess projects were taken up as Council was subsequently held on 4 agenda for discussion. In addition to the October, 2013, wherein the action on the members, the meeting was also attended decisions of the above meeting were by Smt. Sunita Yadav, IES and Shri P.L.N. reviewed and discussed. This meeting was Murthy (Ministry of Commerce and chaired by Shri Harsh Pati Singhania, M.D., Industry) and officials from Indian Paper JK Paper Ltd., Shri Talleen Kumar, IAS, Manufacturers Association (IPMA), Indian Joint Secretary, DIPP graced the occasion Agro and Recycled Paper Mill Association along with other senior officers. Major (IARPMA), Indian Newsprint Manufacturers issues taken up for discussion during Association (INMA), J.K. Paper Ltd., meeting of members of DCPPAI and other International Paper, All India Federation of representatives of Pulp and Paper sector Master Printers (AIFMP) and CPPRI. with honourable Minister of State, Ministry of Commerce and Industry, on 4.9.2013 were discussed and prioritized for action. The meeting also discussed a statement of the R&D projects funded by Cess grant authority under Development Council for Pulp, Paper and Allied Industries. Meeting of Development Council for Pulp, Paper and Allied Industries (DCPPAI) Meeting of DCPPAI under Progress A meeting of DCPPAI was held under Chairmanship of Shri Harsh Pati Singhania, Meeting of the Council of Association of M.D., JK Paper Ltd. on April 5, 2013, at CPPRI. Scope Building, Bhabha Hall, CGO Complex, New Delhi. The agenda of The 44th meeting of the Council of th meeting was presented by Dr. R.M.Mathur, Association was held on 26 September, Member Secretary & Director CPPRI. 2013, at Udyog Bhawan under the Various issues like viability of degraded Chairmanship of Shri Saurabh Chandra, forest land for plantation , Improving Secretary, DIPP, Ministry of Commerce and recovery of waste paper, Technology Industry, Govt of India and President, 163

167 Council of Association of CPPRI. The New Delhi.The meeting was chaired by meeting was also graced by the presence Shri Talleen Kumar, IAS, Joint Secretary, of Shri Talleen Kumar, IAS, Joint DIPP, Ministry of Commerce and Industry, Secretary, IPP, Ms. Gauri Karol, Director Govt of India. The meeting was also graced (Finance), Shri A.K. Mukhopadhyay, by the presence of Mrs. Gauri Karol, Deputy Secretary, IPP and Shri Harsh Pati Director (Finance), Shri Alok Singhania, Chairman, Development Mukhopadhyay, Deputy Secretary (IPP) Council for Pulp, Paper & Allied Industries and Dr. R.M. Mathur, Member Secretary & MD, J K Papers Ltd., New Delhi. The and Director CPPRI and other members of Council deliberated on various issues of the Cess Committee. Various issues like the Institute and gave directions and action taken on the decisions of last cess suggestions thereon. committee meeting, review of the on going projects, consideration of new Meeting of the Research Advisory proposals for approval, etc. were taken up Committee (RAC) as agenda for discussion. rd A meeting of the RAC was held on 23 MOU SIGNED August, 2013 at DIPP, New Delhi. The meeting was chaired by Shri Talleen Mr.Houssam Dawood from DIS Industrial, Kumar, IAS, Joint Secretary, Ministry of Deutschland visited CPPRI for discussions Commerce and Industry. The meeting was in connection with the sponsored project also graced by the presence of Mrs. Gauri for installation of commercial desilication Karol, Director (Finance), Shri Alok plant in a 100 TPD rice straw based paper Mukhopadhyay, Deputy Secretary (IPP) mill in Egypt, and signed MoU for transfer and Shri S.K. Agarwal, Under Secretary of desilication technology, in April 2013. (IPP). The agenda of the meeting was presented by Dr.R.M. Mathur, Director CPPRI and Member Secretary, RAC . The committee reviewed the progress of the th 12 Plan Schemes and gave special directions for the implementation of the scheme related to up gradation of IT infrastructure of CPPRI. Task specific sub committees were also set up by the Committee. Meeting of the Cess Committee Dr. R. M. Mathur, Director, CPPRI & Mr. Houssam Dawood, Owner, DIS Industrial, Egypt A meeting of the Cess Committee was held signing the MoU for transfer of technology on rd Desilication of silica rich black liquor on 23 August, 2013, at Udyog Bhawan, 164

168 Green Chemistry Delegation generated by CPPRI during the financial year 2013 14. A delegation from Department of Science & Technology, Govt. of India, headed by Indian Rubber Manufacturers Research Principal Scientific Advisor visited CPPRI Association (IRMRA), Thane for discussion on promotion and The Indian Rubber Manufacturers Research implementation of the applications of Association (IRMRA), Thane, an Green Chemistry in pulp & paper industry, autonomous institution under the on April 29,2013. Department of Industrial Policy & Promotion (DIPP), is dedicated to basic World Environment Day and applied research in rubber and allied World Environment Day was observed by products. Its main emphasis is to support CPPRI on June 05, 2013. To mark the the rubber industries in product occasion, a programme was held in CPPRI development, testing and manpower auditorium wherein Dr.R.M. Mathur, development in order to meet the global Director, CPPRI, addressed the staff competitiveness of Indian rubber industry. highlighting the significance and objective IRMRA is governed by a Governing Council of observing World Environment Day every consisting of members from Rubber year. A presentation was made by Dr Nitin Industry, Central Government and Endlay on the theme of the World Government of Maharashtra. Established Environment Day 2013 i.e. Think, Eat and in 1959, IRMRA has created necessary Save. The presentation highlighted need infrastructure for research and to reduce food loss along the entire chain development and testing of all rubber of food production and consumption and products in the non-tyre and tyre sector. specifically in context of food wasted Plan Assistance to IRMRA by consumers, retailers and the hospitality industry and the environ- Plan Assistance of `22.50 crore was mental and economical impact due to food approved under the Integrated Scheme wastage. Project Based Support to Autonomous Bodies under DIPP during the XI Five Year Receipts and Expenditure Plan for implementing the three projects During the year 2013-14, total receipts namely, (i) Setting up of Centre of of the Institute were ` 1645.00 Lacs Excellence for Tyre Research and Testing and total expenditure was ` 1155.00 (`20.25 crore), (ii) HRD Entrepreneurship Lacs (i.e. revenue expenditure Programmes (`1.75 crore) and (iii) ` 1039.00 Lacs + capital expenditure ` Outreach Programmes (`0.50 crore) by 116.00 Lacs). IRMRA. Plan assistance of `22.42 crore was released to IRMRA for implementation Internal Revenue of the said projects. Internal Revenue worth ` 230.00 Lacs was 165

169 Major Activities (C) Outreach Programme : (A) Setting up of a Centre of Excellence The main objective of outreach for Tyre Research and Testing : programme is to disseminate the IRMRA has set up a tyre research and knowledge to Rubber sector and above all testing centre, equipped with the to link up to work with world's best necessary machines and equipment for institutes. IRMRA has developed 20 tyre research and testing, namely, modules on Rubber Technology and Endurance Testing Machine for passenger uploaded on their website for access by car, truck/bus tyres and 2/3 wheeler the people in Industry. During 2013-14 vehicles, Universal Testing Machine IRMRA conducted one international (UTM), Shereography, Noise Vibration training programme in USA and six training Harshness (NVH) and Dynamic Growth programmes in Bangkok. Machine. The tyre testing centre has National Council for Cement and Building been made functional since February, Materials 2010. This will help to get quality tyres National Council for Cement and Building for consumers both from indigenous and Materials (NCCBM) is a cooperative foreign manufacturers. This centre is research organisation registered as a enabling BIS to get tyres tested for the society under the Societies Registration purpose of issuing licences etc. Around Act, 1860. The Council provides scientific, 2728 numbers of tyres have been tested so technological and industrial services far. During 2013-14, 1025 types of tyres support to the cement, related building have been tested by IRMRA. materials and construction industries and (B) HRD Entrepreneurship Develop- carries on its activities through its units ment Programme :- located at Ballabgarh, Hyderabad and IRMRA has created infrastructure facilities Ahmedabad. like Hostels, Class Rooms, Training Aids NCBs activities are channelised through etc. for conducting short and long term the following six Programme Centres: training courses in Rubber Technology. Cement Research and Independent The main objective of this programme is Testing to strengthen the hands of the Indian Rubber Industry by providing them well Mining, Environment, Plant trained personnel. During 2012-13, 13 Engineering and Operation short term technical training programmes Construction Development Research were conducted and during 2013-14, Industrial Information Services IRMRA conducted 21 short term technical courses with practical demonstration on Continuing Education Services Rubber Technology, which benefitted Quality Management, Standards and around 400 participants across the Calibration Services country. 166

170 Some of the major activities during the Specimen cured at 900 C showed some year 2013-14 are as under: dimensional instability but the drying 0 Cement Research and Independent shrinkage for specimen cured at 60 C Testing was found to be well within permissible limits. The study is in Investigations on nanoparticle progress. blended cements and cement based nano-composites have been taken up. Investigations on development of Blends of OPC prepared with different composite cement was taken up nanoparticles in the size range of 15- evolving formulations using 40 to 60 50 nm, viz. nano silica, nano-Fe2O3 and percent clinker, 35 to 55 percent nano-TiO 2 and investigations on combined mixes of fly ash and granulated blast furnace slag (GBFS) hydration chemistry of the blends and gypsum. These samples have been undertaken. SEM, DTA, XRD & IR evaluated for their physical properties spectroscopy investigations of and performance characteristics such hydrated samples of OPC & OPC nano as fineness, setting time, compressive silica blends carried out. strength, soundness, sulphate Nanoparticles of silica were found to expansion and heat of hydration as accelerate the cement hydration even per test procedures specified in at very early ages resulting in relevant Indian Standard. Another set significantly shorter setting times. of raw materials such as clinker, fly Nano particles of silica also exhibited ash, limestone and gypsum samples pozzolanic reaction at very early ages were also obtained from different of 1 day as indicated by DTA, FTIR and sources to substantiate the study XRD studies. Further study is in and their characterization progress. completed. Further studies are in Investigations are in progress on progress. geopolymeric cements based on alkali Studies were taken up to prepare activation of coarse fly ash samples synthetic gypsum from marble slurry having Blain fineness of 260m2/kg. for use in cement production. Samples Effect of varying conditions of curing of synthetic gypsum were prepared in including initial thermal curing have the laboratory by inducing chemical been found to be significant in reaction using sulphuric acid and compressive strength development. marble slurry. The properties of The investigations are on optimization synthetic gypsum were found of retention time and temperature comparable to mineral gypsum. The which affects hydration phase micro-structure of gypsum samples development including microstruc- are shown below : ture of the hardened product. 167

171 Investigations have been carried out on suitability of a typical sample of marble dust as raw mix component partially replacing limestone in the manufacture of ordinary Portland cement. The cement produced replacing 80% limestone showed comparable performance. A study has been carried out on use of Jarosite, a solid residual byproduct Mineral Gypsum generated by zinc industry. As jarosite consist of sulphate bearing mineral phases it has been used as set controller replacing mineral gypsum in the manufacture of cement. Preliminary investigations were carried out using 20-40-60-80 and 100 percent jarosite replacing mineral gypsum and it was found that more than 40 percent of mineral gypsum could be replaced by jarosite in regulating the cement setting. This could be attributed to compatible solubility of sulphate bearing phases in Synthetic Gypsum jarosite. Plate 1: Scanning Electron Micrographs of Gypsum Samples Investigations were completed on Aluminium waste is generated in the evaluation of overburden stone from course of making aluminium alloys by the limestone mine of a cement plant. melting aluminium scrap in furnace. The studies indicated suitability of Studies were taken up on establishing use graded overburden stone as coarse of aluminium wastes in the manufacture aggregate conforming to the of refractories and cement. Study showed requirements of IS:383-1970, for use that up to 10% of waste could be used in in cement concrete. making refractory bricks. Similarly, upto A study has been taken up on 0.7% could be gainfully utilized as raw characterization of fly ash samples material as a replacement of alumina from NTPC Ltd., Ramagundam Super bearing additive in cement making. 168

172 Thermal Power Station generating Tamil Nadu and Goa States covering about 4.3 million tonnes of fly ash south and western regions are being annually. Accordingly the fly ash studied. Parameters like PM10 & PM2.5 in samples were collected and ambient air and fugitive dust near characterized for properties as per plant machineries & transfer points IS:3812 for their chemical and were monitored. physical characteristics. It was found that fly ash samples from different Environment Monitoring Studies were fields were of a consistent quality. carried out at two plants in Rajasthan under which ambient air quality, point A t t h e I n d e p e n d e n t Te s t i n g source emissions, water quality and Laboratories of NCB, investigations noise level near plant machinery and for chemical, mineralogical and ambient noise were monitored. physical properties of raw materials such limestone, clay, coal, water, A study on productivity improvement admixtures, clinker, cement and was carried out in a 1.5 million tonne aggregate samples were carried out. cement plant in Andhra Pradesh About 7,500 samples have been tested covering optimization of kiln during the period at NABL accredited operation and heat balance study. laboratories. Recommendations for improving the performance of kiln were given and as Mining, Environment, Plant Engineering a result the production increased from & Operation 5,000 TPD to 5,400 TPD. Technical Health Audit of Mining Technical Audit of a cement plant was Aspects in a cement plant located at carried out and recommendations for Bhatapara, Chattisgarh was carried improving performance of plant out. operation were given. Preliminary Investigations for Carried out Heat Balance studies for 3 beneficiation on laboratory scale of plants. The reasons for high heat low/marginal grade limestone deposit consumption were identified and in District Raipur, Chhattisgarh was recommendations for reducing heat completed. consumption were submitted. Studies on present dust emissions A task on Technical Audit of reverse air levels and available technologies for bag house (RABH) was carried out for reducing the dust emission at stone a cement plant in Kerala. The reasons crushers have been taken up. Six for high dust emissions were identified Stone Crusher units i.e., three each in and suggested remedial measures for 169

173 reducing dust emission from the capacity for a cement plant in stack. southern part of India. Studies on Technical (Health) Audit Techno-economic Feasibility Report covering Mechanical, Electrical & (TEFR) submitted for modernization of Instrumentation aspects and Process & packing plant for a cement plant in Quality aspects were taken up in a southern part of India. major cement plant of 3,750 TPD Pre-feasibility report for setting up of l o c a t e d i n G u j a r a t . Va r i o u s 1000 TPD white cement plant in H.P. recommendations were given for was submitted. improvements based on NCBs assessment made from capacity A report was submitted for Technical utilization & breakdown analysis of Appraisal and Recommendations various core equipment, condition for setting up of the proposed 600 monitoring practices adopted by the TPD cement plant in Republic of plant, study on operational health of Congo. various electrical systems to identify Techno-economic review for M/s Ali the causes of previous failures and Sabieh Cement Plant, Djibouti, Africa technical audit of process and submitted to Ministry of External operating parameters to narrow down Affairs, Government of India. the ranges and optimize the performance of core equipment. Studies on Evaluation of Technologies for Cogeneration of Power Utilizing Study on Assessment of Technology of a Waste Heat in Cement Manufacture split located cement plant i.e. were taken up. Clinkering Unit with capacity 1.09 MTPA at Babupur, Satna, Madhya Studies on Development of System Pradesh and Grinding Unit with Design for Storage, Handling and capacity 2.2 MTPA at Bhilai, Firing of different Types of Alternate Chhattisgarh was conducted. Assess- Fuels/Wastes in Cement plants were ment of output rate of kiln and mills, taken up. environmental management prac- Pre-feasibility report for setting up 0.6 tices, safety aspects, manpower and mtpa Bulk Cement Unit for a Cement overall maintenance practices Plant in South India. adopted by the plant were carried out and the related report was submitted. Technical Health Audit and Valuation of cement mill for a cement plant in Detailed project report prepared on South India. enhancement of cement grinding 170

174 Benchmarking report for cement projects of Municipal Corporation of projects (Green & Brownfield) & Delhi. cement grinding units of various Detailed Third Party Inspection/ capacities (with & without captive Quality Assurance for Comprehensive power plant) was prepared for Development of Corridor by Industrial Promotion and Investment Construction of Elevated Road and Corporation of Odisha Limited, other allied works for Public Works Odisha. Department, Delhi is in progress. Construction Development and Taken up distress assessment study of Research 32 years old Cast in-situ RCC conduit (2,800 mm internal dia) carrying Studies on Development of Methods discharge of 200 Cusec of Ganga Water for Service Life Design for Concrete from Muradnagar to Gokulpuri, Delhi Structure, Development of Design (Total 26 Km Stretch) and recommen- Parameters for High Strength dation for restoration & strengthening Concrete and Development of for Delhi Water Supply Maintenance Accelerated Mix Design Method for Unit. Concrete using PPC or Flyash with OPC are in progress. Performance evaluation done for Steel Fibre Reinforced Shotcrete (SFRS) Evaluation of concrete aggregates for Lining of the underground De-silting alkali-aggregate reactivity and other Chambers of a hydro power project properties was carried out for 30 and conducted study for installation of projects including hydroelectric and suitable monitoring/inspection thermal power plants. equipment inside lined water tunnels Carried out ten studies on evaluation to monitor long term performance of of chemical and mineral admixtures lining without dewatering for for concrete. upcoming Hydro Power projects of About 150 concrete mix proportions SJVN Limited. were carried out for various grades of Industrial Information Services concrete for different projects. NCB Library serves as the national In-situ testing of concrete structures information centre for cement, for assessment of quality and distress building materials and construction evaluation was carried out for 18 industries. The holdings of the Library concrete structures. have grown to 46,398. Third party quality checking was The library has maintained and carried out for 300 construction updated a bibliographic database consisting of about 40,325 entries. 171

175 List of indexed articles from journals Programmes, 10 Simulator Based received in NCB are being posted on Courses and 10 Contact Training intranet and internet website Programmes were organized on www.ncbindia.com different topics covering cement, The IT infrastructure has been concrete and construction techno- strengthened with Core 2 Duo and logies for about 1,100 participants Quad Core Processor based systems. from India and abroad. Organised 13th NCB International Quality Management, Standards and Seminar on Cement and Building Calibration Services Materials during 19-22 Nov, 2013, 7631 vials of certified reference New Delhi. The seminar had a materials and 1564 sets of standard participation of more than 900 lime were supplied to cement and delegates including 115 overseas construction industries, national delegates from various countries. 120 testing laboratories and academic technical papers were presented in 21 institutions during the year. technical sessions. A technical exhibition was organized concurrently 1565 equipment were calibrated with the seminar. The technical during the year. exhibition bearing on the themes of NABL Accreditation received for the seminar was an added opportunity Proficiency Testing (PT) in cement and for the delegates to have an exposure fly ash in chemical and mechanical of the state-of-the-art developments fields. NCB became the first around the world. 79 companies accredited PT services provider in participated in the technical India. exhibition occupying total 122 stalls. Three Proficiency Testing (PT) The seminar concluded with the programmes for PPC were completed presentation of National Awards for with the participation of 64 Energy Efficiency, Environmental laboratories. Excellence and Quality Excellence Two PT programmes on Fly ash were in the Indian Cement Industry as well completed with the participation of 35 as the awards for twelve best papers laboratories. to the award recipients Study on Benchmarking of Quality Continuing Education Services Parameters for Indian Cement Industry One Long Term Course, 25 Short Term completed with the participation of 15 Courses, 23 Special Group Training plants. 172

176 National Institute of Design (NID), Professional Education Programmes Ahmedabad The Institute offers Professional Education National Institute of Design (NID) is an Programmes leading to Graduate Diploma internationally renowned institution with (4-year programme) in eight diverse design an experience of more than five decades in disciplines and to Post-graduate Diploma the field of Design-Research, application (2-2-year programme) in seventeen of advanced teaching methodologies, and diverse design disciplines such as Product unparalleled design research projects Design, Furniture & Interior Design, providing design education and is a Ceramic & Glass Design, Graphic Design, catalyst for Indian commerce and industry. Animation Film Design , Film & Video The institute is also recognised as a C o m m u n i c a t i o n , Te x t i l e D e s i g n , scientific and industrial research Information Design, Interaction Design, organization by the Department of Science D e s i g n f o r Re t a i l E x p e r i e n c e , & Technology, Government of India. This Transportation & Automobile Design, Toy & multi-disciplinary institute in the field of Game Design, Photography Design, Apparel design education and research has also Design, Lifestyle Accessory Design, New earned its place in the top 25 European Media Design, Strategic Design and Asian programmes in the world. NIDs Management. efforts towards making a National Design Integrated Design Services (IDS) Policy finally materialized in February 2007 when the Government of India NID offers design Intervention services to announced the first National Design Policy corporate and specific industrial and social (NDP), a first among developing countries. sectors through (a) Outreach Programmes Further to this, the Government of India (b) Industry Programmes & Projects (c) has initiated steps to set up design Design Consultancy Services, all of which education campuses in Assam, Madhya come under IDS. Pradesh, Andhra Pradesh and Haryana on (a) Outreach Programmes the lines of NID, Ahmedabad. The National Institute of Design (NID) Bill 2013, for NID provides design intervention through declaration of NID, Ahmedabad as an Outreach Programmes for crafts and other Institution of National Importance, has needy sectors in governmental and non- been introduced in Rajya Sabha on governmental organizations at national 11.03.2013. The Bill would give NID, and international levels. Some of the Ahmedabad the status of the institute of significant ongoing projects accomplished national importance, which would enable during 2012-13 between April-Dec, 2013 award of degrees instead of diplomas to are: the students. 173

177 Documenting the Textile Traditions of ensure better productivity through design the North-Eastern States of India: A intervention strategies. Under this Composite Design Study of Fibres, scheme at NID, some of the important Fabrics, Dyes, Looms & Tools, Uses and activities conducted in 2013 2014 Cultural Indicators, a project include: 69 Design Awareness Seminars, 65 commissioned by Indira Gandhi Design Awareness Programmes, 7 National Centre for the Arts (IGNCA) Orientation Programmes, 47 Professional Projects approved and 11 Student Design Design Interventions for the Basketry Projects Approved. Registrations were Craft for Empowerment of 50 craft received from 120 Design Consultant, 55 women/artisans of Ethiopia (25 Design Firms, 19 Design Institutes,37 persons) and Ghana (25 persons) [For Design Students, 45 MSME Associations, the Ministry of External Affairs (MEA), 470 MSME Units and 9 Government New Delhi] Organisations. (b) Industry Programmes and Projects (c) Design Consultancy Services (DCS) (IP&P) Through the Design Consultancy Services In order to meet the specific requirements wing, NID offers consultancy to several of the industry and bring about design industrial and social segments, awareness, and promote design activity governmental and non-governmental through IP&P, NID conducts short-term agencies. Design intervention is carried training programmes, workshops and out in various phases of product seminars, which usually take place development involving concept throughout the year; these activities are development, design development and conducted at all the three NID campuses. prototyping. More than 16 significant From Ap ri l 2 0 1 3 on w a rd s, I P& P projects were undertaken by DCS Department has conducted 9 in- in 2013. house/off-campus workshops, where 267 working professionals from different Research and Publications industry segments participated. During NID undertakes research, mostly applied, April-December 2013, additional 10 in all areas of design, which have a direct workshops were conducted and 172 young bearing on all sectors of the economy. students and their teachers participated Over the last decade, NID has established in it. Design Research Chairs, in collaboration MSME Design Clinic Scheme with industry partners as well as from its own corpus, in several areas such as This Scheme aims to empower the small furniture, colour universal design, and medium scale industries of India and stainless steel, design education, textile 174

178 and apparel design technology and National Sizing Standards for Product transliteration. In October 2013, a Designers, Apparel Designers, Interior publication on 'transliteration' under the & Furniture Designers, Automobile title 'Failed Roman' was released, as the Designers, Tool & footwear Designers outcome of a research project on the same etc. area. NID also completed its Golden Design History Society 2013 Annual Jubilee or History Book in December 2013. Conference Towards Global Histories The department's research centric of Design postcolonial perspectives publication 'The Trellis' was released in was hosted and organized by NID on 5-8 December 2013. Projects on Digital September, 2013. 150 participants Heritage and Digital Learning Environ- from 18 countries were participated. ments are in progress at NID's R&D campus in Bengaluru. During the year, Foundation stones were laid at Kurukshetra, Hyderabad MoUs with Other Institutions/ and Bhopal to set up new NIDs. Organisations Foundation stone for the Jorhat NID has links and collaborations with a campus was laid in 2012. number of national and international Indo-France Design conclave in institutions. This has helped to foster a collaboration with CEFIPRA was held culture of scientific enquiry through on 21st & 22nd October 2013 at New collaborative partnerships. For the Delhi. faculty and students, this has become a platform for exchanging knowledge and The biennial International Students ideas. Animation Film Festival Chitrakatha- 13 was held during 23 to 27 October, Significant Events 2013. Department Related Parliamentary A documentary film Pinch of Skin has Standing Committee on Commerce has received Special Mention Category visited NID from 26th to 28th June 2013 Award at the 60th National Film Award in connection with The National and is also certified by the Censor Institute of Design Bill 2013 to Board to apply for National Film recognise NID as an Institute of Award. National Importance. NID students won awards at A Seminar on National Sizing Automotive Design Challenge (ADC'12) Standards for India was conducted on organized by SIAM during the 7th SIAM 78 August, 2013. The Seminar looked Styling & Design conclave. in to the urgent necessity to develop 175

179 Design Development and Skill up NPC undertakes management and gradation Workshop on Doll Making technological consultancy, training and Craft for North Eastern Development information services in various Finance Corporation Ltd. (NEDFi), productivity subjects for the benefit of its Assam was held at Agartala, Tripura clients. The specialized productivity th th from 28 March 2013 to 16 April 2013. functions dealt by NPC are Process For the said workshop 23 women Management, Environment Management, artisans from Agartala had Information Technology and Knowledge participated. Management, Energy Management, Human Resource Management, Agri- National Productivity Council business, etc. The National Productivity Council (NPC) NPC also networks with over 24 Local was established in 1958 as an autonomous Productivity Councils (LPCs) situated in body under the Societies Registration Act, the country to spread the message of by Govt. of India. It has a tripartite productivity and dissemination at character, wherein Government, Industry grassroots level. NPC is also the and Labour are equally represented. The implementation agency for programmes/ Council is headed by the Union Minister of activities relating to India of the Tokyo Commerce and Industry as its based Asian Productivity Organization an President and the Governing Body is inter-governmental body for promotion of headed by Secretary, Department of productivity in the Asia-Pacific region of Industrial Policy and Promotion as its which the Government of India is a founder Chairman. member. The main objectives of the Council are to NPCs Activities: Highlights increase awareness of productivity and demonstration of the concepts and National Productivity Council has been techniques of productivity in all sectors of carrying out productivity services in all the economy. spheres of the Indian economy through training, consultancy, promotion, The Corporate Office of NPC is located at institution building, research, Inter- New Delhi. NPC also has a countrywide national Services, and publications etc. reach with 12 Regional Professional Management Groups (RPMGs), located at NPC has conducted training programmes important State capitals/industrial covering topics like Organizational centres and one training institute called Excellence, Team Working, Performance Dr. Ambedkar Institute of Productivity Management, Six Sigma, Balance Score (AIP) at Chennai. Card, Knowledge Management, e-Governance, TQM, TPM, Lean Manufact- 176

180 uring, Safety &Risk Management, ii. Preparation of Good Practices Manuals Condition Monitoring & Predictive for Green House Gas Emissions Maintenance, Spare Parts Management, Reduction in 5 Energy Intensive Tribology, Energy Conservation and Audit, Industry Sectors (cement; pulp and Various Management Systems like ISO paper; iron and steel; chemicals and 9000, ISO 14000, OHSAS-18001, etc. thermal power stations). These programmes are held either as iii. Productivity Promotion with Special intra-company or inter-company events Focus on Innovation and Dissemi- for different levels of executives and nation for Multiplier Effect. technical personnel. iv. Upgradation of Ambedkar Institute of NPC also has carried out consultancy Productivity (AIP), Chennai into projects demonstrating the application of Centre of Excellence. various productivity tools and techniques v. Adoption of Energy Efficiency and in the areas of Lean Manufacturing, Green Initiatives at NPC, HQ. Productivity Linked Group Incentive Scheme, Organisational Strategy Unit level studies on the subject of Planning, Manpower and Organizational Manpower Assessment & Productivity restructuring, Implementation of ISO 9001 Improvement are being carried out in Quality Management Systems, Audit of many organizations, namely, Grasim various Management Systems, Industries Ltd.; Galaxy Surfactants Thermography and Vibration Monitoring Ltd.,Shell India Ltd., Hindustan studies, Safety Audits, Energy Audits, Newsprint Ltd., Raymonds Ltd., Tata Systems and Process Improvement Steel Ltd., Cadila Healthcare Ltd., Studies, Cleaner Production (CP) Shree Renuka Sugars Ltd., Jayshree demonstration studies, etc. Textiles Ltd. etc. The major activities of NPC during 2013- NPC also implemented Integrated 14 are as follows : Mgmt. System in 16 model Steel Rerolling Mills under UNDP/GEF After successfully implementing seven Project. major plan projects during XIth five year Third party energy accounting under plan, NPC has submitted proposals Restructured Accelerated Power for implementing five major plan Development & Reforms Progamme projects in the XIIth five year plan as given (RAPDRP) project of Govt. of India has below: been carried out successfully in 3 i. Pr o d u c t i v i t y M e a s u r e m e n t & states with the objective to bring Development of Productivity Norms down the transmission & distribution for Agro Based Industries. losses. 177

181 NPC has been conducting annual NPC publishes Quarterly Journal on examinations for Certification in Productivity with articles on various Inspection of Boilers on behalf of specialized themes. Two issues have Central Boiler Board, DIPP. already been brought out and another two issues of Productivity Journal will NPC is also the authorized agency for be brought out during the remaining conducting National Certification part of the current year. The issues will Examination for Energy Managers & have specialized themes Bio- Energy Auditors on behalf of Bureau of technology, Industry, Governance and Energy Efficiency (BEE). About 10,000 IT & ITES during the current year. such Certified Auditors/Managers are serving the Indian economy presently. Assessment of implementation of Skill Development Initiative (SDI) Scheme NPC is also carrying out International awarded by DGET, MoLE, GOI is being Training & Consultancy projects in carried out by NPC. Energy Conservation through ADB & GIZ in Bangladesh & Nepal New Business Initiatives respectively. NPC is attempting improvement in its NPC has carried out the study for financial performance through new Ministry of Textiles, Govt. of India, for business initiatives such as: IT & IT Enabled undertaking a research study on Services to Govt. Organisations; Impact of Imported Second Hand Implementation of ISO 50001; Distance Shuttleless Looms under Technology Learning Certification Courses; Organising Upgradation Fund Scheme (TUFS) on National Seminars through sponsorships & Domestic Capital Goods Industry. utilising Centre of Excellence for Training in Energy Efficiency (CETEE) to the fullest Skill Development programmes on extent, etc. Industrial Safety as per International standards are being conducted for The Quality Council of India newly commissioned Multinational Oil The Quality Council of India (QCI) has been Exploration Company (CAIRN Energy set up as a non-profit autonomous society India Pvt. Ltd.). registered under Societies Registration NPC is providing Partner Institute Act XXI of 1860 to establish an Services from India in the publication accreditation structure in the country of World Competitive Year Book, and to spread quality movement in India 2013 to be published by Institute of by undertaking a National Quality Management Development (IMD), Campaign. Switzerland. 178

182 The society is governed by a Council Environmental Management Systems (ISO comprising of 38 members, and 14001), Food Safety Management Systems has an equal representation of (ISO 22000), Information Security Government, Industry and other Management System (ISO 27001), Occupa- stakeholders. tional Health and Safety Management Systems (OHSAS 18001), Product The Council is the apex level body certification and Inspection Bodies. responsible for formulating the strategy, general policy, constitution and The Board is a member of International monitoring of various components of QCI Accreditation Forum (IAF) and Pacific including the accreditation boards with Accreditation Cooperation (PAC). IAF is an objective to ensure transparent and association of the accreditation bodies of credible accreditation system. The different countries of the world and PAC is Council through a Governing Body the association of the accreditation bodies monitors the progress of activities and of the Asia Pacific economies. Membership appeal mechanisms set by the respective of these organizations has helped in boards achieving the status of Multilateral Arrangement (MLA) of mutual recognition QCI functions through the executive of the accreditations granted by NABCB by bodies (boards/committees) that other members of IAF and PAC who are implement the strategy, policy and signatories to the MLA. operational guidance set by the Quality Council of India with a view to achieve NABCB signed the MLA for Quality international acceptance and recognition Management Systems with PAC in August of various components including the 2002 and with IAF in September 2002. accreditation systems. Further, NABCB signed the EMS MLAs of PAC and IAF in 2007. With the signing of the Each Board has a Chairman nominated by MLA, the accreditations granted by NABCB the Chairman, QCI and comprises of and the certificates issued by NABCB representatives volunteer group of accredited Certification Bodies are stakeholders who guide and monitor the recognized in the international markets. activities and progress of the respective Boards. As on July 2013, the number of accreditations operational is 39 for QMS The National Accreditation Board for certification, 11 for EMS certification, 12 Certification Bodies (NABCB) for FSMS certification and 5 for OHSAS The Board offers accreditation to the certification. In addition 17 inspection certification bodies for the Quality bodies and 3 product certification bodies Management Systems (ISO 9001), have been accredited. 179

183 The National Accreditation Board for b) Personnel Certification Bodies /Skill Testing and Calibration Laboratories Assessment Bodies (NABL) c) Schools NABL was earlier operating as part of d) Environment Impact Assessment Department of Science and Technology. Consultant Organizations Since 1998 this Board has been registered e) Management systems (covering as an autonomous body under Department training courses, consultant of Science & Technology. In time to come, organizations) it would form a part of QCI as per the National Board for Quality Promotion Cabinet decision of February 1996, in (NBQP) regard to establishment of QCI. NABL offers accreditation to the Testing, The 8th National Quality Conclave was Calibration and Medical Laboratories in held on March 8-9, 2013 at New Delhi. The accordance with the corresponding theme of the Conclave was Value international standards ISO/IEC 17025 and Creation through Quality at Grassroots. The theme was selected in order to ISO 15189. stimulate co-ordinated action by different The National Accreditation Board for stakeholders including government Education and Training (NABET) authorities, and the corporate sector, so that citizens at all levels benefit by The National Accreditation Board for getting improved quality of products and Education and Training has continuously services. been striving to create enabling mechanisms for the Industry. With the The 8th National Quality Conclave was current scenario wherein there is inaugurated by Honble Minister of Labour frequent migration of manpower within and Employment, Govt. of India. In his industries and countries, NABET is trying speech the Minister emphasised the need to bring best practices through its for skill upgradation for achieving global accreditation mechanism. Necessary standards of quality in every trade and international linkages and partnerships service. He wanted QCI to work out with various expert groups are regularly effective programmes so that goal of being forged to bring uniformity and national skill mission is achieved. ensure acceptance of the accreditation The keynote address was delivered by Mr. nationally and internationally. Sam Pitroda, on Public Information At present, NABET has the following Infrastructure & Innovations through video verticals under its accreditation: conference. In his speech Mr. Pitroda highlighted the need to put people at the a) Vocational Training Institutions centre of all quality efforts. While (including ITI s, ITCs) appreciating the theme of the Conclave he 180

184 underlined the importance of improving The Akshya Patra Foundation, Bangalore. quality of education, healthcare, He spoke on the topic Service towards government services etc. which will Humanity and elaborated on the mid-day directly impact the quality of life of the meal scheme being operated by Akshya citizens. Patra Foundation in Bangalore. The Guest of Honour during the inaugural Like all previous Conclaves, the 8th session was Dr. Bindeshwar Pathak, National Quality Conclave had three Founder, Sulabh International Movement. breakaway sessions which were Quality in Dr. Pathak shared his experiences of Healthcare, Quality in Education and Sulabh Movement and categorically Quality in Industry. mentioned that a clean India would lead to The conclave was attended by 600 Quality India. He also wanted QCI to make professionals from industry, healthcare, efforts towards improving the quality of education, academics, NGOs, Government life of the citizens. departments, etc. The inaugural session was also addressed National Accreditation Board for by Mr. Arun Maira, Chairman, Quality Hospitals & Health Care Providers Council of India and Member, Planning (NABH): Commission. In his address he focused on the need for implementation of various National Accreditation Board for Hospitals rules and regulations pertaining to quality and Healthcare Providers is responsible for of products and services. He also all the activities as per scope of its Vision emphasised that Panchayats play a and Mission statement critical role for taking quality at grassroot Following are the NABH accreditation levels. programs along with number of applicant The speakers for the theme session of the and accredited HCOs. Conclave were Dr. Prajapati Trivedi, National Manufacturing Competi- Chairman, NACWC & Secretary PMD, tiveness Council (NMCC) Cabinet Secretariat, Government of India, The National Manufacturing Competi- Mr. Darshan Shankar, Former Advisor tiveness Council (NMCC) is an autonomous (Health and Family Welfare), Planning apex body under the administrative Commission, Mr. Sharda Prasad, Director control of the Department to provide G e n e r a l , D G E & T, D r. R o l f inputs for policy making as well as to Schmachtenberg, Programme Director, suggest measures for enhancing the Indo-German Social Security Programme Competitiveness of Indian Manufacturing (IGSSP) and Mr. Vijay Chaddha, CEO, Sector. The council is represented by Bharti Foundation. persons of eminence from Industry, The Valedictory session was addressed by Government and Academia. The Shri Chanchalapati Dasa, Vice Chairman, 181

185 S.No. Name of Programme Applicant Accredited 1. Hospital 775 199 2. SHCO 218 24 3. PHC/CHC 18 13 4. Medical Imaging Centre (MIS) 46 7 5. Blood Bank 71 58 6. Dental 8 4 7. Allopathic Clinics 8 1 8. Ayush Hospital 22 8 9. Wellness Centre 17 5 10 Safe I Programme 30 4 11 ECHS Empanelment 257 190 (As accreditation process is continuous cycle with many activities on for all applicant as well as accredited hospitals in any given time, so total no. are considered) endeavours of NMCC have been focused July, 2013 to discuss the strategy for both on the short-term objective of boosting competitiveness and output in arresting and reversing the downturn in two important sectors Textiles and Steel manufacturing as well as the medium- and for formulating a long term approach term objective of India getting well on the in three strategic industries Civilian way towards achieving the sustained 12- Aircraft Manufacture, Electric and Hybrid 14 per cent growth in manufacturing and vehicles and Advanced Materials and creation of 100 million jobs in line with the Composites. objectives of National Manufacturing Civilian Aircraft Manufacture: This is a Policy. strategic sector where there is a need to Highlights of Major Activities/Policy have a presence in the long term, Initiatives/Measures particularly in view of the rapid growth of High Level Committee on Manufacturing our aviation sector. The HLCM took a major (HLCM): strategic decision for the development of a civilian aircraft, of a 70-100 seater range Chairman, NMCC is the convener member to begin with, in India. The idea is to house of the HLCM under the Prime Minister. The the development and production in an SPV meeting of the High Level Committee on that would be created for this purpose. Manufacturing (HLCM) under the Prime The design capabilities in NAL, HAL and Minister was convened by NMCC on 9th 182

186 other institutions in the country would be Advanced Materials: Alloys and utilised for this. Development and Composites: In order to give a greater production partnerships with Indian thrust to the development as well as private sector firms as well as overseas acquisition of technologies for advanced institutions are envisaged. Efforts will be materials, alloys and composites, the made to leverage the offsets that are HLCM felt that a coordinated R&D effort is available in the defense sector for needed to be mounted in critical areas. On building critical domestic capabilities in the basis of assessment of total high precision manufacturing and anticipated requirements, domestic avionics. production would be pursued. The NMCC A High Level Steering Group under Dr. V. would evolve an action plan in Krishnamurthy, the then Chairman, NMCC consultation with all stake holders. was set up to work out the modalities of An action plan for the development and this programme. production of advance material and alloys The Request For Information (RFI) for Pilot has been prepared & given to the Defence Projects for the engine for the Ministry. development of a 70 - 100 seater civilian A New Competitiveness Strategy for the aircraft has been issued. Textiles Sector: In order to expand the Alternative fuel based transport: textiles sector which is labour intensive Electric and Hybrid: The HLCM endorsed and contributes substantially to exports, the launch of pilot projects for public the HLCM endorsed a new competitiveness transport of electric/hybrid vehicles in strategy for the textiles sector. The goal three wheelers, mini buses and buses in would be to leverage the strengths we Delhi followed by other metros after have in cotton and other fibres to enhance obtaining necessary approvals. Electric employment generation and achieve a vehicles do not generate pollution while greater share in global markets, especially moving. They are the key to low carbon in apparel. The core of the strategy is to transport. India has the potential to facilitate the rapid scaling of competit- emerge as a global manufacturing hub for iveness of the garment segment of the electric and hybrid vehicles. The pilot textile sector in the country through a projects would be implemented by city comprehensive package of measures. specific SPVs. The first pilot in Delhi would Some of the elements of the strategy be targeted for launch. include having ready availability of work space, having adequate and comfortable An Inter-Ministerial Group constituted by housing for workers, having more flexible D/o Heavy Industry including Chief work timings, leveraging textile clusters Secretary of Delhi would work out and obtaining the best technologies. implementation modalities for the first pilot project. 183

187 An IMG under Secretary (Textiles) will The SPV could then be offered in a work out the Action Plan. The work of IMG transparent manner for takeover by would be facilitated by a Steering Group investors through a bidding process. The consisting of Member (Industry), Planning Steel Ministry would prepare a road map Commission, Member Secretary, NMCC with time lines for the above. and CEA. Ministry of Labour would be A strategic roadmap is being finalised by asked to expedite action on the pending Ministry of Steel for taking the Steel State level Bills on overtime flexibility and production to 300 million tons by the allowing night shifts for women under middle of next decade through a specified conditions. consultative process with all the stake Ministry of Textiles has started to holders. Facilitation of brown field implement the key features of the new expansion through Cabinet Secretariat competitiveness strategy such as and Cabinet Committee on Investment is modernisation of the weaving and being pursued along with the development processing sectors and provision of of green field sites through the SPV route workers housing and training in textile in partnership with the concerned State parks. Governments. Growth strategy for Steel Industry The preparatory work for convening HLCM Targeting 300 Million Ton Output: The meeting on the following items has been growth strategy endorsed at the meeting done: aims at the production of 300 million tons a) SME Package of steel by the middle of the next decade. In the short run, pro-active facilitation of b) New Strategy for Ship Building Industry projects in the pipeline would be taken up c) Telecom Equipment Manufacturing on priority jointly by the Steel Ministry and Setting up of Semiconductor Wafer FAB: the new investment facilitation mechanism in the Cabinet Secretariat. In line with the broad directions in the SAIL would leverage its existing Prime Ministers Group Report on infrastructure to substantially expand Manufacturing (PMGR), a Committee capacity. It would work out its plans for comprising of Dr. V.Krishnamurthy, the capacity expansion and production of then Chairman, NMCC and Dr. Sam Pitroda, speciality steels. A Master Plan for had inter- alia suggested for setting up of achieving 300 million tons of production Semiconductor Wafer Fabs for chip would be prepared. The approach of manufacturing. The setting up of two having project specific SPVs for identified Semiconductor Wafer Fabrication (FAB) sites owned by GoI/States/CPSEs, which Manufacturing Facilities in India has since would assemble land, get necessary been approved by the Government. The approvals and clearances and tie up water Letter of Intent (LoI) from the Government and raw materials, would be finalised. has also been issued to provide support for 184

188 setting up the Semiconductor Wafer National Gas Grid and Movement to Fabrication (FAB) facility. International Fuel Standards: Monitoring Capital Expenditure (CAPEX) There is a captive power generation of 23 major CPSUs: capacity of well over 50,000 MW in the At the behest of the PMO, the NMCC has country using diesel as a fuel. Gas from been reviewing the Capital Expenditure of imported LNG at market determined 23 select major CPSUs on a quarterly prices without any subsidy is a much basis. During the Financial Year 2013-14, cheaper substitute for diesel in this the achievement of target was 90.7 per market with the cost of power coming cent of the targeted CAPEX. This was a down to about half. With the end of the significant improvement over the 79.2 supply of subsidised diesel, imported gas percent achievement of the targeted would even be competitive as a fuel for CAPEX for the FY 2012-13 of the 17 CPSUs trucks and buses on highways. For this that were monitored. The monitoring attractive market to be served, aggressive exercise has been critical in the efforts to investment in LNG terminals, re- regain the growth momentum in the gasification facilities and extension of the Indian economy. gas grid is essential. Therefore, NMCC has suggested for India having a National Gas National Investment Fund: Grid covering all major Cities and During the course of CAPEX review, it was Industrial areas along with adequate seen that many CPSUs had not been able facilities for LNG terminals and re- to make investments commensurate with gasification. their post tax profits and growing NMCC has also suggested that the Oil reserves, accordingly it was suggested by companies should make investments for the NMCC that a National Investment Fund improving the quality of fuel to may be created by taking special dividend contemporary international standards as from the select CPSUs, where CAPEX is the problem of under recovery is getting moderate in comparison to their Post Tax behind them, this would have major Profits and growing reserves. This fund impact on improving air quality in our could, inter-alia, be used for a wide range Cities and along highways. It would also of investments such as provision of improve the competitiveness of our auto equity for key infrastructure projects industry and make it easier for them to including PPP projects, contribution to penetrate to international markets. the Trust Fund for the Delhi-Mumbai Industrial Corridor, strategic investments Visionary Leaders for Societal Manufac- like FAB facilities and chip manufacturing, turing: etc. A Memorandum of Understanding (MoU) was signed with Japan International Cooperation Agency (JICA) for the 185

189 programme on visionary leaders for We have around 44 laws relating to labour. societal manufacturing. Consultations many of whose provisions are clearly were also held with the various CPSUs/ dated. The regulatory burden they impose Industrial units/Industrial Associations for appear so onerous to small and medium their participation in the programme of enterprises that these act as a disincentive visionary leaders. to their growing into large enterprises. Competitive Exchange Rate: This is reflected in the extraordinary distortion in the country where Maintaining a competitive exchange rate, employment in the unorganized and even if it requires building up of informal sectors has been growing much considerable reserves, is an essential pre- faster than in the organized sector. At our requisite for success in manufacturing and stage of the industrialization, this should creation of 100 million jobs over the next be the other way round. Therefore, the decade as envisaged in the National NMCC has suggested repealing the existing Manufacturing Policy. The East Asian Labour Laws and replacing them with new economies were able to create Labour Law(s) suited to the 21st Century manufacturing jobs and reduce poverty at and in consonance with our ILO a remarkable pace and maintaining a obligations. This is essential for success in competitive exchange rate was one of the large scale employment generation in core elements of their strategy for rapid manufacturing. One modern industrialization. In fact, this has also comprehensive law or at best three laws: been part of the standard IMF package for one relating to rights, one to welfare and countries facing Balance of Payment one to safety is the need of the hour. difficulties. Therefore, NMCC has been suggesting to the Government & RBI that Project Exports Financing for Capital there is a need for maintaining a Goods: competitive exchange rate policy. It may Project exports from India have take care of neutralizing the appreciation considerable potential especially in the of the Real Exchange Rate (RER) caused by power and railways where manufacturing inflation rate in India being higher than in as well as project execution strength have its trading partners. Appreciation of the improved over the years. The real RER creates a competitive disadvantage handicap in achieving our full potential in for manufacturing and value addition in this sector is inability of the EXIM Bank to the country both for the domestic as well finance Project Exports with credit at as export markets. interest rates and tenor which are Labour Laws Reform: comparable to those of our competitors. Therefore, NMCC has suggested the need Our existing Labour Laws emerged in for enhancing the equity base of EXIM Bank response to conditions of manufacturing by the Government. If Government has in the late 19th and early 20th Century. difficulty in providing extra equity then 186

190 firms like BHEL which would benefit could taxed on inputs and final products leading either inject the necessary equity into the to an inverted duty structure, which EXIM Bank directly or pay extra dividend incentivizes import of vessels. Ship which could be then used to infuse equity owners in the country are allowed to into the EXIM Bank. Further, the RBI could freely import ships without payment of be persuaded to provide a line of credit of duty. Unabsorbed taxes and duties are say 10 Billion US dollars to the EXIM Bank estimated to account for 11% of the price at the rates which its reserves get when of a vessel in case of domestic sales. deployed elsewhere. If the financing Without addressing the taxation issue, it is issues are resolved satisfactorily, the unlikely that the ship building industry country could realistically target orders of would achieve its full growth potential. 50 Billion US dollars of Project exports One way in this can be fully done is by over the next five years. converting existing shipyards into Special Inverted Duty Structure: Economic Zones (SEZs). Accordingly, NMCC has suggested for a special The inverted duty structure acts as a dispensation under the SEZ Rules to enable disincentive for the manufacturing and existing shipyards above a certain capital v a l u e a d d i t i o n i n t h e c o u n t r y. investment as SEZs. Once ship building Accordingly, NMCC has suggested for succeeds in the country, Greenfield undoing the inverted duty structure in the investments in the developing new case of segments of manufacturing where shipyard SEZs would also take place. the finished products can be imported duty free, whereas components have Preferential Market Access (PMA) Policy import duty. The major sectors where this in Government Procurement: has been the case are IT hardware, NMCC has recommended for the early and defence and shipbuilding. Giving deemed focused implementation of the export benefits in these cases to sales Preferential Market Access (PMA) Policy in within India would provide a neat solution. Government procurement to create the Shipbuilding Industry: business case for investment in new high technology segments of Manufacturing Shipbuilding industry has been identified and ensuring thereby domestic value as a strategic industry in the National addition. Bulk procurement by Govern- Manufacturing Policy (NMP). It is high ment and its agencies with conditionality technology and employment intensive of phased domestic manufacturing is a industry. However, for various reasons, it variant of this approach which could be has remained at a nascent stage with very used for Metros as well as next generation few Indian built ships. A major reason for technologies in the Railways. The this is the substantial cost disadvantage on implementation of the PMA Policy will be account of taxation and duties. It is seen critical to the success of strategic and that domestic ship building industry is sunrise industries as per the inspirations of 187

191 the National Manufacturing Policy. effect on the fiscal consolidation efforts Annuity Based Infrastructure Projects over the next few years, as annuity payments would start only after Generation of additional domestic completion of projects and would be demand through annuity based projects in spread over many years. Accordingly, the infrastructure space has the NMCC has suggested for taking up a advantage of not having any adverse number of such projects. 188

192 14 Representation of Scheduled Chapter Castes/Scheduled Tribes/OBCs/ Ex-servicemen and Physically Disabled persons in Services The Governments efforts for safeguard of Periodic directions are also issued by the public employment for persons belonging Department to all administrative sections to Scheduled Castes and Scheduled Tribes as well as the appointing authorities under are instrumental in ensuring inclusive its control to ensure proper implemen- growth of the Nation, free from tation of the directives on reservation for discrimination and sufferings. In members of the Scheduled Castes/ accordance with the policy of the Scheduled Tribes/OBCs/Ex-servicemen Government of India, a SCs/STs Cell has and Physically Disabled Persons. been created in the Department under a Representation of Persons with Liaison Officer of the rank of Deputy Disabilities in Service Secretary with the objective of ensuring proper implementation of the instructions Section 3 of the Persons with Disabilities issued from time to time relating to (Equal Opportunities, Protection of Rights reservation for SCs/STs in Government and Full Participation) Act. 1995 stipulates service. The SC/ST Cell in the Department that as a matter of policy, 3% reservation is responsible for monitoring the in the posts under the Government be implementation of the instructions of the provided for persons with disabilities. The Government on the reservation of SCs/STs Department of Industrial Policy & in services in the Department as well as in Promotion has been making efforts in the various attached/subordinate offices, matter and the instructions issued by the inspection of reservation rosters, ensuring Government of India from time to time are submission of regular returns to the being implemented in the Department and Department of Personnel & Training. circulated to all attached/subordinate Similarly, a nodal officer has been offices and autonomous organizations appointed in the rank of Deputy Secretary, under the Department, ensuring its for ensuring proper implementation of the compliance. instructions issued from time to time in respect of OBCs in government service. 189

193 The breakup of number of persons with Promotion and its Attached/Subordinate Disabilities and ex-servicemen working in offices and Autonomous Bodies is a follows the Department of Industrial Policy & Table 14.1. Table 14.1. S.No. Category of Post Sanctioned No. of Physically No. of Ex- Strength Handicapped Servicemen Persons 1. A 1495 15 1 2. B 1233 8 7 3. C 1447 31 11 4. C# 956 16 7 # Erstwhile Group 'D' 190

194 15 Chapter Women Welfare Activities The principle of gender equality is wherein it was stipulated that the enshrined in the Indian Constitution in its Committee should be headed by a woman Preamble, Fundamental Duties and and not less than half of its members Directive Principles. The Constitution not should be women. only grants equality to women, but also The constitution and objectives of the empowers the State to adopt measures of Complaints Committee have been positive discrimination in favour of intimated to all sections in this women. Within the framework of a Department. All the attached/ d e m o c r a t i c p o l i t y, o u r l a w s , subordinate offices under the Department developmental policies, plans and have also such committees for ensuring programmes have aimed at advancement prompt action on any complaint of sexual of women in different spheres. harassment at work place. In consonance with the guidelines The Department follows all the guidelines proposed by the Honble Supreme court in of the Government in this matter and all the case of Vishakha and others Vs. State possible efforts are being made to create of Rajasthan, the National Commission for healthy and congenial atmosphere so that Women drafted a code of conduct to be women employees can perform duties adopted by the Ministries/Departments. with honour, dignity and without fear. The The Department has a Complaints suggestions from women employees are Committee headed by a woman director in invited from time to time for accordance with the code of conduct improvement in their working conditions. 191

195 16 Chapter Implementation of Official Language Policy Use of Official Language Hindi in Official Besides cent-percent implementation of Work Section 3(3) of Official Language Act, 1963 and Rule-5 of Official Language Rules, Hindi in Devnagari script has been adopted 1976, correspondence with the Offices of as the Official Language of the country in State Governments, Union Territories and the Constitution of India and the Official Central Government located in region A, Language Policy has been framed to B and C as prescribed by Ministry of ensure its use in official work and Home Affairs, Department of Official propagation thereof. Effective steps were Language, was done in Hindi to the extent taken during the year 2013-14 in the possible. Efforts were made to achieve the Department of Industrial Policy and targets laid down in the Annual Promotion to ensure compliance to the Programme 2013-14 circulated by Official Language Policy of the Department of Official Language. With the Government, implementation of the active cooperation of officers/staff requirements of Annual Programme issued members, 69%, 68% and 64% (as on 31st by the Department of Official Language, March, 2014) of correspondence has been Ministry of Home Affairs and compliance done in Hindi with Region A, B and C to other constitutional obligations. respectively during the year. In this way, Rules/provisions of Official Language Act the department has continued its (O.L. Act),1963 passed by the Parliament endeavour to achieve the targets. for ensuring the effective use of Hindi in In addition, with the aim of boosting the Government Offices, were fully use of Hindi in day-to-day work in office, implemented. All documents mentioned 20 Sections within the Deptt. have been in section 3(3) of the Act such as earmarked to do their 100% work in Hindi resolutions, general orders, rules, licenses in compliance with Rule 8(4) of O.L. Rules, etc., including all papers to be laid on the 1976. These sections make special & Table of the Houses of Parliament, were concerted efforts to perform their official issued mandatorily in bilingual form i.e. in work in Hindi. This enthusiasm on their Hindi and English. All letters received in part, acts as a beacon to others to improve Hindi, were replied compulsorily in Hindi their proficiency of transacting work in as mandated in Rule-5 of Official Language Official Language. The same has Rules, 1976. 192

196 facilitated increased and significant There is provision of a high level Hindi participation of the employees in the Advisory Committee (34 members) under constitutionally obligatory provision of the chairmanship of Minister for use of Hindi in official work. Commerce & Industry, in the Department to monitor the status of use of Hindi at the Monitoring of Implementation of Official highest level, in the divisions of DIPP and Language Policy in the Department offices under its administrative control. A Quarterly Progress Report is submitted This is an apex consultative/programme to Deptt. of Official Language, Ministry of determining committee of the Home Affairs in respect of the updated Department regarding Official Language. status regarding implementation of It consists of six Members of Parliament, Official Language Policy of the hindi intellectuals/experts and renowned Government in all divisions of the hindi journalists as non-official members Department and Offices/ Institutes/ in this committee. The Committee has Autonomous bodies, under it. The representatives of the Parliamentary Quarterly Progressive Report is first Committee on Official Language as well as reviewed regularly by the Official many voluntary hindi institutions and the Language Wing of the Department in Deptt. of Official Language, Ministry of context of the related rules. Position is Home Affairs. Besides, Secretary (IPP) and also reviewed in the quarterly meetings of other senior officers of the Department Official Language Implementation and Heads of Attached/Subordinate Committee, which is the main executive Offices/ Institutions under the Depart- committee of the Deptt. on Official ment, are the official members. Joint Language, under the chairmanship of Secretary (incharge of official language Incharge (Official Language) of the level work), is the Member-Secretary. At least of a Joint Secretary and having officers of two meetings of the committee, are to be the level of Director/Dy. Secretary. held during each year. The position Necessary instructions are issued to the regarding use of Hindi in the Deptt. as well officers concerned on the basis of as in its attached offices, is reviewed outcome of the meetings of the intensively in the meeting of the committee. During the year under report, Committee. The committee members three meetings of the above Committee have continuously been appreciating the have been held so far in which discussions performance/progress achieved by the were very fruitful. The chair-person took Department in respect of increased use of much interest in the deliberations and Hindi in official work and other related gave concrete advice/decisions. activities. 193

197 In compliance to the Official Language training in Hindi typing and stenography is Policy of the Government, the official given to the concerned employees of the website of the department has been made Department from time to time. Most of the bilingual in English and Hindi, to make it employees have already been trained. more useful for general public. The Efforts to impart training in a phased information about working/ activities/ manner to the remaining employees important achievements of the through Hindi Teaching Scheme operated Department, is made available in both by Ministry of Home Affairs, are on. Hindi & English languages on the website In addition, practical training for doing of the Deptt. work in Hindi on different subjects, is The officers of the Department given to the officers/employees through responsible for official language work, workshops, arranged from time to time inspect the Divisions of the Department, and their problems are solved. Three such as well as attached/subordinate offices to workshops were held during the year have an on-the-spot assessment of under review. Out of these, one workshop implementation of O.L Policy of the Govt. was exclusively meant for the During the year 2013-14, seven offices Director/Deputy Secretary level officers. namely (1) National Manufacturing In this workshop, the concerned expert Competitiveness Council, New Delhi (2) provided valuable/practical knowledge Office of the Joint Chief Controller of about working in Hindi through Unicode Explosive, Faridabad (3) Office of the Salt Software in computer. The participating Commissioner, Jaipur (4) Petroleum and officers highly applauded the concept and Explosives Safety Organisation, Nagpur workshop itself, as it proved very useful (5) Office of the Controller General of and informative. This has helped them a Patents, Designs & Trade Marks, Mumbai lot to do work in Hindi and to overcome (6) Indian Rubber Manufacturers Research their hesitation. It has also resulted in Association, Thane and (7) Central increased Hindi noting/drafting Manufacturing Technology Institute, percentage on files. Bangalore were inspected and detailed Mechanical Aids inspection reports were prepared and sent to respective offices alongwith As per related provisions of Official suggestions in respect of shortcomings. A Language Act, the facility of working in constant vigil is maintained on follow up English and Hindi on all available by Official Language Wing. computers of the Department, has also been provided. For this purpose, encoding Training of universal software Unicode has been To facilitate maximum work in Hindi, facilitated in all computers. To facilitate 194

198 use of rupee sign `, the concerned font Other Incentive Activities has also been provided. On the occasion of Hindi Divas, a Hindi Incentive Schemes Fortnight was organized from 13th Sep. 2013 to 27th Sep. 2013. An appeal was With a view to promote increased use of circulated from Secretary (IPP) to the Hindi by the employees, following officers/employees of the Deptt. as well incentive schemes are being continued in as of attached/subordinate offices and the Department, to encourage other organisations/institutes under the officers/employees to do their maximum Deptt. to do their maximum work in Hindi. work in Hindi: With a view to encourage officers/ 1. Annual Cash Prize Scheme for doing employees of the Department to do work noting/drafting in Hindi, circulated by in Hindi, 9 Hindi competitions i.e. Essay, M/O Home Affairs, D/O Official Noting & Drafting, Stenography, Typing, Language. The scheme consists of Hindi Knowledge of Sr. (GpA) Officers, First, Second & Third prizes of ` 2000, D e b a t e , Po e m Re c i t a t i o n , H i n d i ` 1200, & ` 600 (Total 10 prizes) Translation and Dictation for MTS were respectively. During the year under organized. Employees participated in report, ten officers/employees were these competitions with great awarded prizes for their excellent enthusiasm. work under the scheme. To motivate the employees to do 2. Half Yearly Cash Prize Scheme for maximum work in Hindi, wooden sections/desks, doing their official plaquettes depicting motivative sayings work originally in hindi in the about Hindi by reputed scholars/ Department. To encourage the prominent persons, have been installed in sections of the Department to do more the office premises. work collectively in Hindi and to With the aim of increasing use of Hindi to promote positive competition among the maximum and utilization as well as them, a half yearly cash prize scheme propagation of writing skills of officers/ is also on. Under this scheme , Prizes employees, the Fourth Annual Issue of of ` 7000, 6000 & 5000 are given as Departmental Magazine Sugandhi was first, second & third prize respectively published during the year, in which and two consolation prizes of `3000 interesting and readable compositions of each are given. Five sections/desks the officers/employees of the Deptt. were were given prizes under the scheme provided maximum space in the magazine. during the year. In addition, detailed information as well as photographs related to various functions/ 195

199 activities regarding implementation of Official Language Act and Rules to Official Language Policy like meetings of promote and progressively propagate the Hindi Advisory Committee/Official use of Official Language in their day-to- Language Implementation Committee, day working. Their correspondence in Hindi workshops, Hindi Fortnight etc., Hindi with offices located in A, B and were also incorporated in the magazine. C regions, was found to be comparatively The readers found the issue very satisfactory. However, they were given informative and commendable. The instructions to further increase the contents of the magazine are also percentage of work done in Hindi. available on website i.e. Like previous years, this year also, Hindi http://dipp.nic.in/English/Publications/ Week/Fortnight was organized during the webPatrika_Sugandhi_2013.pdf of the month of September, 2013 in all the Department in the form of e-magazine. aforesaid offices. Wide-ranging Hindi The attached and subordinate competitions were organized during the offices/institutes etc. continued their week/fortnight. Winners were awarded endeavour towards ensuring effective prizes. implementation of various provisions of 196

200 17 Chapter Vigilance Activities The Vigilance unit of the Department is Petroleum and Explosives Safety headed by a Chief Vigilance Officer (CVO) Organizations (PESO) & Salt of the rank of Additional Secretary who is Department. appointed on the advice of the Central Issue of Major /Minor Penalty and Vigilance Commission. The Chief Vigilance Integrity Certificates. Officer is the nodal point in the vigilance set up of the Department in respect of the Preventive vigilance. following: Handling and custody of top secret Identification of sensitive areas prone papers like Union War Books etc. to malpractices and taking preventive There are part time Chief Vigilance measures to ensure integrity and Officers for attached and subordinate efficiency in the functioning of the offices under DIPP. The overall Department. responsibility of vigilance activities of Taking suitable action to achieve the these offices, however, rests with the targets fixed by the Department of Chief Vigilance Officer of the Department Personnel and Training on anti- of Industrial Policy and Promotion. corruption measures. Preventive vigilance continues to receive Scrutiny of complaints and initiation priority attention with primary emphasis of appropriate investigation on identification of areas sensitive or measures. prone to malpractices and temptation. Compliance of the guidelines/instructions Pr o c e s s i n g a n d i n i t i a t i o n of issued from time to time by the disciplinary proceedings. Department of Personnel and Training and Maintenance of property folders and Central Vigilance Commission in this issue of sanctions under CCS (Conduct) regard is ensured. Rules/FR&SR in respect of officers Vigilance Awareness period was observed /officials of DIPP. from 28th October, 2013 to 2nd November, Maintenance of CR Dossiers of all 2013 to create awareness amongst officers/officials of DIPP as well as officers and staff. Group B / Group A officers of 197

201 During the year 2013 Vigilance Section has of the three services. This involves feeding received one CVC case. of relevant entries of Annual Performance Appraisal Reports (APARs) in the software The Department has also adopted Web (CMS) in respect of Group A & B( Based Software Solution for Cadre Gazetted) officers of CSS/ CSSS, before Management System (CMC) in respect of sending the hard copy of APARs to the CSS, CSSS and CSCS as per instructions Cadre Controlling Authority of the two issued by the Department of Personnel and services. Training, the cadre controlling authority 198

202 18 Chapter Citizen's Charter The Department consciously and v Maintain the confidentiality of the diligently upholds the values of integrity, personal and business information transparency and accountability in its disclosed to the Department. day-to-day public dealings. The v Simplifying procedures for industrial Department endeavors to add value to approvals keeping minimum controls services and to speed up the process of that are considered critically decision making and timely implemen- essential. tation by adopting modern management systems and practices. v Place in the public domain all changes in law and procedures through The Department is committed to : appropriate media channels as and v Continuously consult the stakeholders when these are finalized. and other interest groups/ Quick disposal of cases and redressal of stakeholders in reviewing the policies grievances is accorded top priority. and procedures to reflect their views, Towards this, the Department continues to perceptions and concerns on the issue on the spot written acknowled- policy documents. gments to all queries and applications and v Consider the stakeholders and interest responds to all queries within time bound groups as partners in progress and manner. A detailed list of service provided accord them respect and cordiality, including standards thereof is a Table encourage them to come out with 18.1. innovative concepts and procedures For successful implementation of the to provide for cross-fertilization of Citizens Charter, the Department ideas that help overall promotion of expects cooperation of the users. An industrial climate. indicative list of expectations is given v Create more effective channels of below: communication for a interface with v Submission of duly completed the stakeholders and other interest application forms in all respects. group through e-governance with widespread use of electronic mode. v Proper utilization of central financial 199

203 assistance released to State and standards set, both at the unit and Governments/UT Administrations for national levels. It is envisaged to hold specific projects and making efforts independent surveys to capture the for the timely completion of these stakeholder's perceptions and assessment projects. of the quality of services. v Extending courtesies to officials of the Helpline Department. For any help please visit Department's v Always keeping proper records of Information and Facilitation Counter (IFC) letters and communications with the and the Public Relation Office, at Udyog Department. Bhavan, New Delhi, (Near Gate No.11) Tele No.011-23063088. Receipt of all v If the user has an appointment with an applications can be obtained from the IFC officer in the Ministry, please arrive 15 office. minutes prior to the appointment. The Department's cell for investment v If the user wants to cancel an Pr o m o t i o n a n d I n f r a s t r u c t u r e appointment, please give a written Development provides information, notice via fax or email at least two guidance and escort services on days in advance. investment promotion and infrastructure v Send reports in the prescribed format development. as per prescribed timelines. Printed publications of the Department v To check the website regularly for can be obtained from any outlet of the updates on policies, programmes and Controller of Publications. Users may visit procedures. Department's website (http://dipp.nic.in) for downloading relevant forms for making v Give their suggestations/inputs on applications for Industrial Entrepreneurs- drafts placed on Ministry-s website/ Memorandum, Letter of Intent, Foreign those circulated to them. Collaboration etc. v State representatives should attend Grievance Redressal the conference with complete information. The Department attaches great importance to redressal of grievances of Service Audit the stakeholders for the overall promotion The Department is committed to of industrial development. User periodical audit of the quality of the complaints can be sent to us over phone, services based on stringent benchmarks by mail, fax or personal visit. The first 200

204 contact point is IFC. User can approach Additional Secretary and Financial Adviser the Grievance Officer in the Department in the Ministry of Commerce and Industry (Sh. Talleen Kumar, Joint Secretary, Tel has been appointed as the Business No.23063838, email: [email protected] Ombudsman to look into the complaints nic.in) if the issue is not resolved at the relating to delays in clearance of IFC. projects/approvals. Table 18.1 List of Some Services/ Transaction included in the Citizens Charter 1. Grant of ad-hoc permission for 8. Release of Plan funds to Delhi- manufacture and sale of cement Mumbai Industrial Corridor without standard mark for a Development Corporation (DMICDC) maximum period of 150 days. for Project Development. 2. Certification of essentiality for 9. Essentiality Certificate for projects import of capital goods required for in Explosives sector. initial setting up of new projects of 10. Issuing Industrial License for expension of the existing projects. compulsory licensable items. 3. Furnishing of comments of DIPP to the 11. I s s u i n g A c k n o w l e d g m e n t f o r Ministry of Coal for long term coal Industrial Entrepreneur Memoran- linkage and allocation of coal blocks dum (IEM). for cement sector. 12. Recognition of Competent Authority 4. Release of Plan and Non-Plan funds to (CA), Inspecting Authority (IA), Well- National Council for Cement and known Material Testing Laboratory, Building Materials (NCCBM) and Well-known Steel maker, Well- Development Council for Cement Known Foundry/Forge-Shops, Well- Industry (DCCI) Known Tube/Pipe Maker And Well- 5. Inclusion of Paper Mill in Schedule-I of Known Remnant Life Assessment Newsprint Control Order 2004 Organisation under the Indian Boiler 6. Furnishing of comments of DIPP to the Regulations, 1950. Ministry of Coal for allocation of coal 13. Approval under Regulation 393 (b) for paper. of the Indian Boiler Regulations, 7. Release of Plan and Non-plan funds to 1950. Central Pulp and Paper Research 14. M i s c e l l a n e o u s a p p r o v a l s / Institute (CPPRI) and Development clarifications under the Boilers Act, C o u n c i l f o r P u l p a n d Pa p e r 1923/Indian Boiler Regulations, Association of India (DCPPA) 1950. 201

205 15. D i s b u r s a l o f P l a n F u n d s to 19. Essentiality Certificate for projects in Implementing Authorities. Consumer Industry. 16. In principle approval and release of 20. Bulletin Board Services for Investor. funds to IIUS/MIIUS Projects. 21. Essentially Certificate for projects in 17. Preparation and scrutiny of Bills to Light Engineering Industry make payment to private firm/ 22. Release of Wholesale Price Index suppliers. 23. Approval of foreign visit of Ministers 18. Furnishing of comments on FIPB cases and officers of the State Government forwarded by DEA (FIPB Division). concerning industry sector. Useful Addresses Sl Name and Designation Address Tel. No & e-mail No. 1 Public Relations Officer Department of Industrial Policy Tel: 011-23063933 & Promotion, Entrepreneurship EPABX: 011-23063321 Assistance Unit, Near Gate No. 11, Extn. 2237 Udyog Bhavan, New Delhi. 2 Shri Talleen Kumar, Department of Industrial Policy Tel: 011-23063838 Grievance Officer and Joint & Promotion, Ministry of Fax: 011-23063051 Secretary Commerce & Industry, [email protected] Room No. 227 A-1, Udyog Bhavan, New Delhi. 3 Sh. S. K. Bahri, Department of Industrial Policy Tel: 011-23062756 Business Ombudsman and & Promotion, Fax: 011-23062101 Additional Secretary & Ministry of Commerce & Financial Adviser Industry, Room No. 244, Udyog Bhavan, New Delhi. 202

206 19 Chapter Right to Information (RTI) The Department of Industrial Policy & All the Director/Deputy Secretary level Promotion has implemented the Right to officers have been designated as Central Information Act, 2005. Public Information Officers to provide information to the citizens. Further, Shri The proactive disclosure scheme and D.V. Prasad, Joint Secretary, has been other guidelines issued by the Department designated as the Appellate Authority to of Personnel and Training are being entertain appeals and to pass appropriate implemented scrupulously by this orders thereon. Also, Smt. Shubhra Singh, Department. All the 17 items required to Joint Secretary, has been nominated as be published proactively in terms of Transparency Officer in the Department. Section 4 (i) to (xii) of the RTI Act have been placed on the website of the During the current financial year 2013-14, Department at http://dipp.nic.in. In total 734 RTI applications including online addition 8 more items have also been applications were received (upto 31st uploaded for suo moto disclosure as March, 2014) in this Department out of advised by DoP&T. which 32 Nos. of applications were transferred to concerned Public To facilitate the citizens, who come in Authorities in other Ministries/ Depart- person to submit RTI applications/ ments. Total 24 Appeals were received in appeals, one RTI counter at Gate No.11, the Department. Quarterly Reports in Udyog Bhavan, New Delhi has been set up respect of RTI Act are being sent to Central to receive applications/ appeals from Information Commission (CIC) regularly. them. Disposal of all the applications/ appeals received under RTI Act, 2005 in the Department is being centrally monitored by RTI Section. 203

207 Appendix-I Organizational Chart of Department of Industrial Policy and Promotion (as on 15/6/2014) 204

208 Appendix-II Offices/Organisations under the Department of Industrial Policy and Promotion, New Delhi Attached Offices 1. Office of the Economic Adviser, New Delhi. 2. The Tariff Commission, New Delhi. 3. Office of the Salt Commissioner, Jaipur. Subordinate Offices 1. Office of the Controller General of Patents, Designs and Trade Marks, Mumbai. 2. Petroleum & Explosives Safety Organization, Nagpur. Other Organizations / Grantee Institutions 1. Central Manufacturing Technology Institute, Bangalore. 2. Central Pulp & Paper Research Institute, Saharanpur. 3. Delhi Mumbai Industrial Coridor Development Corporation Ltd., New Delhi. 4. Indian Rubber Manufacturers Research Association, Thane. 5. Intellectual Property Appellate Board (IPAB), Chennai. 6. National Council for Cement & Building Material, Ballabgarh. 7. National Institute of Design, Ahmedabad. 8. National Manufacturing Competitiveness Council (NMCC),New Delhi. 9. National Productivity Council, New Delhi. 10. Quality Council of India, New Delhi. 205

209 Appendix-III Yearwise and Statewise Breakup of Industrial Entreprenurs Memorandum Filed 2009 2010 2011 2012 2013 2014 (Jan-Mar) State/UTs Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) Andaman & Nicobar 1 13 0 0 0 0 1 31 0 0 0 0 Andhra Pradesh 313 104951 509 175608 388 103826 306 70339 259 25349 84 6665 Arunachal Pradesh 4 1303 5 848 7 1027 3 41 1 353 1 23 Assam 45 2860 37 8423 32 1231 39 2845 37 1587 11 896 Bihar 32 13710 46 65190 31 44026 20 2374 33 2315 8 484 Chandigarh 0 0 0 0 1 10 1 22 0 0 0 0 Chhattisgarh 293 130630 256 285583 114 102266 78 79575 57 34143 7 387 Dadra & Nagar Haveli 50 1709 63 11148 55 3885 31 4014 30 1605 7 229 Daman & Diu 39 858 35 598 21 665 5 26 14 332 1 10 Delhi 21 289 19 130 12 68 6 83 5 83 5 118 Goa 46 1382 39 2441 23 563 21 494 25 673 9 0 Gujarat 376 142239 496 147152 541 141116 472 126201 352 94228 97 13947 Haryana 85 2423 136 10309 112 8660 115 5894 106 4172 31 1028 Himachal Pradesh 41 6065 53 3568 36 1533 48 4798 13 449 21 718 Jammu & Kashmir 23 1223 23 1234 21 1523 26 1529 11 450 8 245 Jharkhand 65 79502 53 41549 25 3198 32 10315 17 7739 1 14 Karnataka 179 92054 261 139218 214 94082 169 47967 101 10019 23 834 Kerala 8 171 8 99 12 3984 6 124 4 14264 2 2889 Lakshadweep 0 0 0 0 0 0 0 0 0 0 0 0 Madhya Pradesh 182 66669 226 204286 191 104527 126 10563 114 88715 32 3387 Maharashtra 593 68069 757 176194 973 133596 533 70181 451 53402 87 4147 Manipur 0 0 1 0 1 13 1 68 2 64 1 14 Meghalaya 10 970 14 1733 6 2574 3 1807 5 159 0 0 Mizoram 0 0 0 0 1 27 0 0 1 15 1 33 Nagaland 0 0 0 0 1 38 0 0 0 0 1 26 Orissa 99 167932 179 315772 117 321032 57 63604 40 98723 4 19342 Pondicherry 14 712 14 282 8 44 8 146 5 186 0 0 206

210 Yearwise and Statewise Breakup of Industrial Entreprenurs Memorandum Filed 2009 2010 2011 2012 2013 2014 (Jan-Mar) State/UTs Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) Punjab 68 9731 102 6779 112 13571 80 4477 49 2491 27 1580 Rajasthan 88 13461 122 29669 165 23488 163 18218 150 36948 10 817 Sikkim 8 150 13 795 15 727 9 195 12 528 5 124 Tamil Nadu 233 66864 234 38587 255 73298 197 21253 167 27380 36 10016 Tripura 2 83 1 18 3 71 3 129 3 60 0 0 Uttar Pradesh 176 10142 168 13756 163 43672 134 13270 157 13330 38 2489 Uttarakhand 165 9293 217 7997 77 6854 42 1378 57 2012 16 512 West Bengal 206 44390 209 42765 135 302515 91 5869 87 8054 16 529 Total 3465 1039848 4296 1731731 3868 1537710 2826 567830 2365 529828 590 71503 Proposed investment ` Cr 207

211 Appendix-IV SECTORWISE AND YEARWISE LISTS OF IEMs FILED DURING LAST FIVE YEARS 2009 2010 2011 2012 2013 2014 (Jan-Mar) State/UTs Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) Metallurgical Industries 641 254285 681 391805 532 268895 346 141983 240 106893 31 2688 Fuels 46 61743 49 73015 24 8575 11 1804 12 17868 3 291 Boilers & Steam Gen. 3 410 3 1199 1 20 2 102 1 15 0 0 Plants Prime Movers 87 4265 147 5977 184 9990 140 14696 94 7614 16 549 Electrical Equipments 419 472403 546 928995 348 778500 172 144210 122 82682 29 10368 Telecommunications 14 5371 18 948 15 360 7 49 10 1049 1 20 Transportation Industry 60 5048 72 12290 97 9695 70 24591 58 7602 15 3868 Industrial Machinery 68 5805 78 3372 84 4780 51 2232 57 5646 10 392 Machine Tools 4 174 7 536 4 1035 4 46 5 226 1 21 Agricultural Machinery 15 518 18 655 27 3136 8 654 9 727 1 202 Earth Moving Machinery 2 112 3 44 9 779 5 265 6 634 1 0 Misc. Mechanical & 167 12976 206 11516 186 15881 163 7976 130 4087 30 913 Engg. Ind Comm/Office/Hold 6 1583 12 181 3 132 2 11 4 123 1 167 equpts Medical & Surgical Inst 0 0 10 1212 12 195 2 74 8 710 0 0 Industrial Instruments 1 2 3 24 0 0 2 50 1 21 2 71 Scientific Instruments 2 32 14 432 5 222 5 174 4 140 0 0 Math,Survey,Drawing 0 0 0 0 0 0 0 0 0 0 0 0 Inst. Fertilizers 38 2183 33 3068 45 9046 51 10443 33 22494 3 352 Chemicals 228 20818 321 32705 272 37737 191 74270 147 57873 35 8514 (Except Fertilizers) Photographic raw film/ 0 0 0 0 0 0 0 0 0 0 0 0 Paper Dye Stuffs 4 231 9 535 5 1177 2 36 1 102 0 0 Drugs and Pharmaceuticals 104 2776 134 16897 133 6741 105 8291 105 6900 28 244 208

212 SECTORWISE AND YEARWISE LISTS OF IEMs FILED DURING LAST FIVE YEARS 2009 2010 2011 2012 2013 2014 (Jan-Mar) State/UTs Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) Textiles 326 9200 427 26566 370 26174 327 14839 302 81667 93 6010 Paper and Pulp 79 6037 76 6264 64 5315 67 7428 52 3903 16 969 Sugar 73 4947 96 7469 126 16735 62 5618 28 2446 9 768 Fermentation Industries 75 4566 69 3139 112 6644 48 4365 52 4916 14 916 Food Processing Industry 157 6996 204 8392 147 10638 143 7022 161 10049 66 2081 Vegetable Oil & 114 3694 93 3802 78 3475 36 1064 27 3381 11 124 Vanaspathi Soaps, Cosmetics and 28 1626 27 2886 21 2380 19 2106 16 1593 2 522 Toiletries Rubber Goods 28 2118 37 5819 41 8292 28 1987 33 7191 6 881 Leather 7 106 12 161 10 474 4 26 8 550 1 31 Glue and Gelatin 2 27 4 19 1 16 0 0 1 55 1 639 Glass 27 558 21 1670 26 5610 11 211 10 579 1 42 Ceramics 17 818 65 1238 53 2115 21 1628 14 328 5 131 Cement and Gypsum 143 52366 158 98410 135 73681 94 38268 65 32242 12 6948 Timber Products 2 96 4 122 3 488 4 469 2 1182 1 11 Defence Industries 0 0 0 0 0 0 0 0 0 0 0 0 Misc. Industry 36 424 40 573 44 3503 32 487 25 324 2 57 Others 442 95534 599 79795 651 215274 591 50355 522 56016 143 22713 Total 3465 1039848 4296 1731731 3868 1537710 2826 567830 2365 529828 590 71503 Proposed investment ` Cr 209

213 Appendix-V Statewise Break up of IEMs Implemented (from August 1991 March 2014) Based on Part B of IEM Form Filed by Entrepreneurs 1992-2009- 2010 2011 2012 2013 2014 (Jan-Mar) State/UTs Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) Andaman & Nicobar 1 0 0 0 0 0 0 0 0 0 0 0 Andhra Pradesh 813 19784 86 2185 86 2439 87 8411 76 8386 13 776 Arunachal Pradesh 4 9 0 0 0 0 1 33 0 0 0 0 Assam 103 1567 9 0 13 63 14 290 16 1012 1 12 Bihar 13 168 0 0 2 0 9 471 7 869 0 0 Chandigarh 4 258 0 0 0 0 0 0 0 0 0 0 Chhattisgarh 71 2377 10 749 0 0 0 0 1 31 0 0 Dadra & Nagar Haveli 101 1705 7 62 6 294 3 42 2 69 4 96 Daman & Diu 96 2347 13 79 1 0 1 0 1 3 1 24 Delhi 50 646 0 0 1 0 0 0 0 0 0 0 Goa 110 824 6 51 7 21 5 228 2 37 1 2 Gujarat 1500 81591 56 4565 50 2148 153 49616 83 15478 39 4504 Haryana 442 17121 13 282 7 394 18 1289 15 889 5 130 Himachal Pradesh 79 1508 7 71 3 42 7 609 3 27 1 112 Jammu &Kashmir 24 2343 3 69 0 0 0 0 0 0 0 0 Jharkhand 66 2061 2 0 5 424 3 406 0 0 4 698 Karnataka 233 10409 19 1771 22 890 26 1672 24 4912 7 1729 Kerala 81 1019 0 0 0 0 0 0 0 0 0 0 Lakshadweep 0 0 0 0 0 0 0 0 0 0 0 0 Madhya Pradesh 373 10430 12 11959 11 268 14 2157 7 1519 3 110 Maharashtra 1445 36474 87 1291 120 4671 87 7509 96 30266 20 2805 Manipur 1 13 0 0 0 0 0 0 0 0 0 0 Meghalaya 26 73 0 0 2 51 3 401 7 1100 1 21 Mizoram 0 0 0 0 0 0 1 28 0 0 0 0 Nagaland 0 0 0 0 0 0 0 0 0 0 0 0 Orissa 74 1867 6 80 5 163 2 105 4 652 0 0 Puducherry 51 359 2 0 2 5 0 0 0 0 0 0 210

214 Statewise Break up of IEMs Implemented (from August 1991 March 2014) Based on Part B of IEM Form Filed by Entrepreneurs 1992-2009 2010 2011 2012 2013 2014 (Jan-Mar) State/UTs Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. Nos Prop. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. filed Inv. (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) (` Cr.) Punjab 317 6810 7 69 2 0 6 1042 1 38 1 103 Rajasthan 412 13448 27 1592 14 158 18 2017 30 3173 1 275 Sikkim 16 15 4 0 3 0 6 142 5 370 6 504 Tamil Nadu 530 13831 27 1374 28 235 10 524 12 2292 3 2338 Tripura 6 253 0 0 0 0 0 0 1 0 0 0 Uttar Pradesh 587 25667 24 244 20 82 23 1450 22 4111 2 122 Uttarakhand 176 2628 159 2079 31 197 52 2752 22 781 6 820 West Bengal 663 30697 50 1163 33 325 25 962 44 2482 12 2126 Total 8468 288302 636 29735 474 12870 574 82156 481 78497 131 17307 Note: No applicant had reported implementation of IEM during the year 1991. investment ` Cr 211

215 Appendix-VI Statewise Investment Intentions (IEMs +LOIs+DILs) 10th Plan Period Onwards Name of the State Xth Plan Period XIth Plan Period XIIth Plan Period Total Apr-12 to Mar-14 Nos Prop. Nos Prop. Nos Prop. Nos Prop. Inv Inv Inv Inv (` Cr.) (` Cr.) (`Cr.) (`Cr.) Andaman & Nicobar Islands 2 31 2 136 1 31 5 198 Andhra Pradesh 2034 109505 1975 600910 586 68588 4595 779003 Arunachal Pradesh 30 360 27 3403 2 376 59 4139 Assam 272 3818 169 21152 80 5208 521 30178 Bihar 108 9107 166 139676 54 4181 328 152964 Chandigarh 7 235 5 83 1 22 13 340 Chhattisgarh 1219 234796 1179 906386 108 93952 2506 1235134 Dadra & N Haveli 603 11999 263 21566 62 5506 928 39071 Daman & Diu 302 3422 190 4510 19 368 511 8300 Delhi 40 311 73 628 16 284 129 1223 Goa 169 1851 163 5775 53 1148 385 8774 Gujarat 2595 227258 2178 653978 792 214149 5565 1095385 Haryana 1020 33640 582 35044 236 9368 1838 78052 Himachal Pradesh 394 8739 214 19843 62 2321 670 30903 Jammu & Kashmir 460 8652 143 6694 38 1983 641 17329 Jharkhand 454 102089 279 321358 44 17793 777 441240 Karnataka 1112 114814 1087 538170 254 44772 2453 697756 Kerala 142 2616 60 4621 9 17277 211 24514 Lakshadweep 0 0 0 0 0 0 0 0 Madhya Pradesh 654 42993 1074 594378 241 101325 1969 738696 Maharashtra 3596 130517 3586 537258 928 115391 8110 783166 Manipur 4 20 2 13 4 146 10 179 Meghalaya 140 3045 62 10768 8 1966 210 15779 Mizoram 0 0 1 27 2 48 3 75 212

216 Statewise Investment Intentions (IEMs +LOIs+DILs) 10th Plan Period Onwards Name of the State Xth Plan Period XIth Plan Period XIIth Plan Period Total Apr-12 to Mar-14 Nos Prop. Nos Prop. Nos Prop. Nos Prop. Inv Inv Inv Inv (` Cr.) (` Cr.) (`Cr.) (`Cr.) Nagaland 7 16037 3 119 1 26 11 16182 Orissa 753 201884 662 1185876 85 132143 1500 1519903 Puducherry 212 2224 72 3007 12 266 296 5497 Punjab 748 23981 492 45154 135 7259 1375 76394 Rajasthan 795 19088 597 108003 267 47322 1659 174413 Sikkim 25 1691 70 3011 24 822 119 5524 Tamil Nadu 2212 91103 1394 233509 352 52064 3958 376676 Tripura 13 300 12 396 5 184 30 880 Uttar Pradesh 2167 91110 895 93768 294 27375 3356 212253 Uttarakhand 1138 24960 712 36844 99 3601 1949 65405 West Bengal 1882 94182 949 511894 170 13209 3001 619285 Locations in More than one State 8 29 3 13 0 0 11 42 Total 25317 1616407 19341 6647971 5044 990474 49702 9254852 Proposed investament ` Cr Note: Investment in terms of Industrial Entrepreneur Memoranda (IEMs) filed by non-MSME category industrial undertakings; Letters of Intent (LOIs) and Direct Industrial Licences issued. 213

217 Appendix-VII Statewise Investment Intentions (IEMs +LOIs+DILs) 10th Plan Period Onwards Name of the Xth Plan Period XIth Plan Period XIIth Plan Period Total Scheduled Industry Apr-12 to Mar-14 Nos Prop. Nos Prop. Nos Prop. Nos Prop. Inv Inv Inv Inv (` Cr.) (` Cr.) (`Cr.) (`Cr.) Mettallurgical Industries 4588 416165 3184 1467305 530 207583 8302 2091053 Fuels 188 131325 200 222124 21 18429 409 371878 Boilers and Steam Gen. 15 421 10 1833 3 117 28 2371 Plants Prime Movers 541 14323 641 36006 211 19706 1393 70035 Electrical Equipments 1517 410770 2087 3001635 265 185023 3869 3597428 Telecommunications 194 6312 113 8729 16 1111 323 16152 Transportation 388 17677 384 73674 122 25115 894 116466 Industrial Machinery 537 11597 369 19838 107 7921 1013 39356 Machine Tools 60 468 34 2239 9 293 103 3000 Agricultural Machinery 59 2579 75 5184 13 949 147 8712 Earth Moving Machinery 14 156 29 1838 10 768 53 2762 Misc. Mechanical Industry 1298 20903 850 56856 285 11604 2433 89363 Comm.H.Hold Equipments 60 558 28 1994 7 301 95 2853 Medical & Surgical Equpts 44 153 39 1767 10 784 93 2704 Industrial Instruments 11 98 7 93 5 142 23 333 Scientific Instruments 52 262 41 983 7 292 100 1537 Math, Survery & Drawing 1 110 0 0 0 0 1 110 Equpts Fertilizers 285 4136 186 20643 68 28008 539 52787 Chemical Other than 1918 100764 1458 270488 318 132015 3694 503267 Fertilizers Photographic Raw films 0 0 0 0 0 0 0 0 Dye Stuffs 34 564 28 2277 3 138 65 2979 Drugs & Pharmaceuticals 873 11297 586 32709 216 14694 1675 58700 214

218 Statewise Investment Intentions (IEMs +LOIs+DILs) 10th Plan Period Onwards Name of the Xth Plan Period XIth Plan Period XIIth Plan Period Total Scheduled Industry Apr-12 to Mar-14 Nos Prop. Nos Prop. Nos Prop. Nos Prop. Inv Inv Inv Inv (` Cr.) (` Cr.) (`Cr.) (`Cr.) Textiles 3631 72394 1866 89766 641 100311 6138 262471 Paper & Paper products 513 31274 375 27691 114 11431 1002 70396 Sugar 1328 110142 471 47369 83 6603 1882 164114 Fermantation Industries 824 18245 497 29044 95 7896 1416 55185 Food Processing Industries 1167 10994 730 32970 333 17575 2230 61539 Vanaspathi, Veg Oil &Fats 570 5740 471 15336 64 4255 1105 25331 Soaps, Cosmetics & Toileteries 277 4847 120 8860 31 3459 428 17166 Rubber Goods 233 5214 179 21008 58 9480 470 35702 Leather Goods 203 717 52 1081 12 607 267 2405 Glue & Gelatin 22 512 10 89 2 694 34 1295 Glass 154 6004 112 11230 15 648 281 17882 Ceramics 220 4265 220 9291 37 1999 477 15555 Cement & Gypsum 477 64149 837 425105 155 64122 1469 553376 Timber Products 26 266 21 1433 7 1662 54 3361 Defence Industries 41 3351 155 8309 23 259 219 11919 Miscellaneous Industries 377 4241 190 6284 53 709 620 11234 Others 2577 123414 2686 684890 1095 103771 6358 912075 Total 25317 1616407 19341 6647971 5044 990474 49702 9254852 Proposed investament ` Cr Note: Investment in terms of Industrial Entrepreneur Memoranda (IEMs) filed by non-MSME category industrial undertakings; Letters of Intent (LOIs) and Direct Industrial Licences issued. 215

219 Appendix-VIII Present Status of Projects under IIUS Sanctioned During 11th FYP Name of the State Date Total Approved Released Progress Project Project Industrial Cluster Approval Project GOI GOI Physical Approval Approval Cost grant grant (%) Period Period (` Cr.) (` Cr.) (` Cr.) Pharma Cluster, Hyderabad AP 04.11.2004 66.16 49.62 48.13 62.08 Complete 10th Plan Chemical Cluster, Ahmedabad Gujarat 14.03.2005 71.35 41.39 40.14 69.41 Complete 10th Plan Chemical Cluster, Ankleshwar Gujarat 02.07.2004 152.83 50.00 49.47 161.40 Complete 10th Plan Chemical Cluster, Vapi Gujarat 25.03.2004 54.31 40.49 39.27 71.25 Complete 10th Plan Foundry Cluster, Belgam Karnataka 28.10.2004 24.78 18.58 18.02 24.38 Complete 10th Plan Machine Tools Cluster, Bangalore Karnataka 28.10.2004 135.50 49.12 47.64 149.09 Complete 10th Plan Textile Cluster, Ichalkaranji Maharastra 14.03.2005 65.07 32.70 31.72 67.00 Complete 10th Plan Auto Components Cluster, Pune Maharastra 06.09.2004 59.99 44.99 44.54 63.05 Complete 10th Plan Auto Components Cluster, Pithampur MP 28.10.2004 62.97 47.23 45.81 67.64 Complete 10th Plan Textiles Cluster, Ludhiana, Punjab Punjab 06.09.2004 17.19 12.69 12.30 17.24 Complete 10th Plan Marble Cluster, Kishangarh Rajasthan 28.10.2004 27.84 26.04 26.77 50.17 Complete 10th Plan Auto Components Cluster, Chennai TN 02.07.2004 47.49 27.74 26.90 54.67 Complete 10th Plan Cereals Pulses & Staples Cluster, TN 06.09.2004 39.96 29.97 29.07 40.03 Complete 10th Plan Madurai Foundry/Pump/Motor Cluster, TN 14.03.2005 55.30 39.39 38.99 55.57 Complete 10th Plan Coimbatore Leather Cluster, Ambur TN 14.03.2005 67.33 43.93 43.49 96.34 Complete 10th Plan Textiles Cluster, Tirupur TN 09.03.2004 143.00 50.00 49.50 157.60 Complete 10th Plan Multi Industry Cluster, Haldia WB 04.03.2005 58.85 35.97 34.89 52.76 Complete 10th Plan Iron & Steel Cluster, Raipur Chatishgarh 04.03.2005 55.06 31.76 30.79 58.33 Complete 10th Plan Metallurgical Cluster, Jajpur Odisha 02.07.2004 80.60 47.00 45.59 88.16 Complete 10th Plan Coir Cluster, Alappuzha Kerala 04.11.2004 56.80 42.60 41.31 54.75 96.00% 10th Plan Auto Components Cluster, Vijaywada AP 02.07.2004 30.67 23.01 22.31 30.66 98.00% 10th Plan Leather Cluster, Kanpur UP 04.03.2005 14.34 9.32 8.83 13.56 Complete 10th Plan Gem & Jewellery Cluster, Surat Gujarat 04.11.2004 61.00 45.61 44.15 45.64 75.75% 10th Plan Rubber Cluster, Howrah WB 29.03.2005 29.74 15.71 14.8350 26.94 90.00% 10th Plan Foundry Cluster, Howrah, WB 04.03.2005 95.03 38.68 32.57 54.02 57.00% 10th Plan Total 10th FYP 1573.16 893.54 867.04 Engineering Cluster, Nashik Maharastra 11.03.2008 67.26 42.87 41.59 56.48 Complete 11th Plan Pandhurna Industrial Cluster, MP 02.02.2009 66.78 43.07 41.77 61.41 92.00% 11th Plan Chhindwara Handloom Cluster, Chanderi MP 11.03.2008 27.80 20.30 13.09 9.57 34.00% 11th Plan Auto Cluster, Adityapur Jharkhand 13.08.2008 65.63 47.79 15.93 19.22 29.00% 11th Plan Readymade Garments Cluster, MP 11.03.2008 55.58 30.67 16.95 13.87 25.00% 11th Plan Jabalpur Total 11th FYP 283.05 184.70 129.33 Plastic, Polymer and Allied Odisha 26.03.2010 81.90 58.20 33.14 30.73 38.00% 11th Plan Cluster, Balasore Recast Tiruchirapalli Engineering and TN 01.10.2010 102.81 58.28 34.00 51.30 50.00% 11th Plan Technology Cluster, Tirruchirapalli Recast Marathwara Automobile Cluster, Maharastra 31.05.2010 81.35 58.20 38.71 45.12 55.46% 11th Plan Aurangabad Recast 216

220 Present Status of Projects under IIUS Sanctioned During 11th FYP Name of the State Date Total Approved Released Progress Project Project Industrial Cluster Approval Project GOI GOI Physical Approval Approval Cost grant grant (%) Period Period (` Cr.) (` Cr.) (` Cr.) Baddi Infrastructure, Baddi HP 19.11.2010 80.50 58.28 49.51 52.90 65.00% 11th Plan Recast Bamboo Technology Park, Assam 01.10.2010 62.28 52.63 45.91 31.62 50.77% 11th Plan Guwahati Recast Narol Textiles Infrastructure and Gujarat 19.11.2010 145.30 58.28 17.48 39.30 27.00% 11th Plan Environment Management, Narol Recast Kolhapur Foundry Cluster Maharastra 31.01.2012 42.63 30.92 9.27 6.34 15.00% 11th Plan Recast Hand Tools Techlology Centre, Punjab 01.10.2010 79.49 58.28 17.48 Sanction 11th Plan Jalandhar Withdrawn Recast Handloom Cluster, Bhagalpur Bihar 01.10.2010 20.82 15.69 1.56 Sanction 11th Plan Withdrawn Recast Total 11th FYP 697.08 448.76 247.06 217

221 Government of India Ministry of Commerce & Industry Department of Industrial Policy & Promotion 2013-14 Annual Report

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