Annual Report Government of India Ministry of Commerce and Industry Department of Industrial Policy & Promotion

Annual Report 2014-15 Government of India Ministry of Commerce and Industry Department of Industrial Policy & Promotion Contents S. No. Chapter P...
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Annual Report 2014-15

Government of India Ministry of Commerce and Industry Department of Industrial Policy & Promotion

Contents S. No. Chapter

Page No

1.

Role and Functions

1

2.

Evolution and Development of Industrial Policy

15

3.

National Manufacturing Policy

27

4.

Industrial Corridors

31

5.

Improvement of Business Environment : eBiz Project

44

6.

Make in India

49

7.

Development Schemes

58

8.

Industries and Industrial & Technical Development

72

9.

United National Industrial Development Organisation (UNIDO)

96

10.

Foreign Direct Investment

100

11.

Investment Promotion & International Cooperation

103

12.

Protection of Intellectual Property Rights

109

13.

Administration of Indian Boilers Act, 1923

124

14.

Attached & Subordinate Offices and other Organisations

127

15.

Representation of Scheduled Castes/Scheduled Tribes/OBCs/ Ex-servicemen and Physically Disabled persons in Services

215

16.

Women Welfare Activities

217

17.

Implementation of Official Language Policy of the Union

218

18.

Vigilance Activities

222

19.

Citizen's Charter

223

20.

Right to Information

227

21.

Appendices I-VIII

228

1

CHAPTER

Role and Functions

The role of the Department of Industrial Policy and Promotion (DIPP) is to promote the industrial sector in India and facilitate balanced development of industries.

ii)

Facilitation of foreign investment in industries and co-ordination with different agencies for faster investment approvals.

Under the seventh schedule of the Constitution, those industries which are declared by Parliament, by law, in the public interest, to be under control of Union, are administered by DIPP. In addition to this Constitutionally delineated role, matters relating to development of industries by the Union, explosives, UNIDO, patents, inventions and designs, trademarks and merchandise marks, manufacture, supply and distribution of salt by Union agencies and regulation and control of manufacture, supply and distribution of salt by other agencies, are specifically administered by the Department of Industrial Policy and Promotion on behalf of the Union of India. Further, the Department is also responsible for matters relating to boiler industries, which is in the Concurrent List.

iii)

Facilitating development of industries in North East and other special category states.

iv)

Improving the intellectual property rights regime consistent with the country's international commitments.

v)

Maintaining a sound information base of macroeconomic indicators of industrial production and prices.

vi)

Initiating measures towards procedural changes to make the functioning of the department more transparent and responsive.

O b j e c t ive s , Fu n c t i o n s , a n d L aws Administered The broad objectives of the Department, in line with its defined role, are as follows: i)

Acceleration of industrial growth by providing financial, infrastructural and other support.

Over the years, the role of DIPP has evolved from being a regulator and administrator of the industrial sector to that of a facilitator of new technology, and Foreign Direct Investment inflows into the country. The key functions of DIPP are: i)

Formulation and implementation of industrial policy and administration of Industries (Development & Regulation) Act, 1951.

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ii)

Monitoring and stimulation of industrial growth in general as also the industries specifically assigned to DIPP as per Allocation of Business Rules, 1961.

iii)

Promotion of industrial development in North East and special category states of J&K, Himachal Pradesh and Uttarakhand through appropriate incentive framework.

iv)

Formulation of Foreign Direct Investment Policy and promotion and facilitation of direct foreign and nonresident investments.

v)

Nodal department for investment related issues in Bilateral/Regional Economic Cooperation Agreements.

vi)

Formulation of policies relating to Intellectual Property Rights in the field of Patents, Trade Marks, Industrial Design and Geographic Indicate of Goods and administration of regulations and rules under IPR.

vii)

Compilation of Wholesale Price Index and monthly industrial production statistics for use in construction of the Index of Industrial Production.

The Department of Industrial Policy and Promotion administers the following Central Legislations through its attached/subordinate offices and statutory organizations: a)

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The Patents Act, 1970, the Trade Marks Act, 1999, the Geographical Indications of Goods (Registration and

Protection) Act, 1999 and the Designs Act, 2000. The associated Rules are administered through the Office of the Controller General of Patents, Designs and Trade Marks (CGPDTM). The Intellectual Property Appellate Board provided under the Trade Marks Act, 1999, has its headquarters in Chennai. b)

The Explosives Act, 1884, and the Rules made there under i.e. the Explosives Rules 2008, the Gas Cylinder Rules, 2004, the Static Mobile Pressure Vessels (Unfired) Rules, 1981, and Ammonium Nitrate Rules, 2012, which a re a d m i n i s t e re d t h ro u g h t h e Petroleum & Explosives Safety Organisation, Nagpur.

c)

The Salt Cess Act, 1953, is administered through the Office of the Salt Commissioner, Jaipur.

d)

The Boilers Act, 1923, is administered through the Indian Boiler Regulations, 1950, framed by the Central Boilers Board, which is a statutory body under the said Act. Enforcement of this Act is the responsibility of both the State and Union governments since the subject “Boiler” is listed in the concurrent list of the Constitution of India.

Organization of DIPP The Organization Chart of the Department of Industrial Policy and Promotion is at Appendix-I while the list of attached and subordinate offices and other organizations under the Department is at Appendix-II.

Role and Functions

Industrial Policy The Department is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socioeconomic objectives. While individual administrative ministries look after the production, distribution, development and planning aspects of specific industries allocated to them, this department is responsible for the overall Industrial Policy. The Statement of Industrial Policy 1991, tabled in Parliament as a Resolution, forms the basis of the subsequent steps taken by the Government under the Policy to liberalize and promote industries over the years, including the Foreign Direct Investment (FDI) Policy and the specific National Manufacturing Policy (NMP) announced in 2011.

appropriate financing instruments, and State Governments will be encouraged to adopt the instrumentalities provided in the policy. The Department has taken up the implementation of the policy in consultation with relevant Central Government agencies as well as the states. Foreign Direct Investment (FDI) Policy The Department of Industrial Policy & Promotion is the nodal Department for formulation of the policy of the Government on Foreign Direct Investment (FDI). It is also responsible for maintenance and management of data on inward FDI into India, based upon the remittances reported by the Reserve Bank of India.

National Manufacturing Policy In order to bring about a quantitative and qualitative change and to give necessary impetus to the manufacturing sector, the Department has notified the National Manufacturing Policy (NMP) with the objective of enhancing the share of manufacturing in GDP to 25% and creating 100 million jobs over a decade. The policy is based on the principle of industrial growth in partnership with the states. The Central Government will create the enabling policy frame work, provide incentives for infrastructure development on a Public Private Partnership (PPP) basis through

Secretary, DIPP addressing gathering during the Make in India workshop at Vigyan Bhawan, New Delhi

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The FDI policy is reviewed on an ongoing basis, so as to make it more investorfriendly. With a view to attracting higher levels of FDI, Government has put in place a liberal policy on FDI, under which FDI up to 100%, is permitted, under the automatic route, in most sectors/ activities. Significant changes have been made in the FDI policy regime in recent times, to ensure that India remains an increasingly attractive investment destination. The Department plays an active role in the liberalization and rationalization of the FDI policy. Towards this end, it has been constructively engaged in extensive stakeholder consultations on various aspects of the FDI policy. Specific Industries Administered by DIPP The Department monitors industrial growth and production in general and in select industrial sectors such as leather, cement, paper & pulp, tyre & rubber, light electrical industries, consumer goods, consumer durables, light machine tools, light industrial machinery, light engineering industries, etc. as indicated in the allocation of Business Rules, 1961. Appropriate policy interventions are made, as required from the emerging concerns, from time to time. For overall development of Leather Sector, the Department administers the Indian Leather Development Programme (ILDP). The Scheme aims at augmenting raw material base through modernization and technology upgradation of leather units, address environmental concerns, human re so u rc e deve lo p m e n t , su p p o rt to

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traditional leather artisans, address infrastructure constraints and establish institutional facilities. Investment Promotion and International Cooperation The Department plays an active role in investment promotion through dissemination of information on the investment climate and opportunities in India by advising prospective investors about investment policies, procedures and opportunities. International Cooperation for industrial partnerships is solicited through both bilateral and multilateral arrangements. It also coordinates with apex industry associations like Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of India Industry (CII), the Associated Chambers of Commerce and Industry (ASSOCHAM), etc; in their activities relating to promotion of industrial cooperation, both through bilateral and multilateral initiatives, intended to stimulate the inflow of foreign direct investment into India. . Make in India The Department has initiated “Make in India” initiative, a global promotional campaign to project India as an investment destination and potential manufacturing hub. The campaign was launched by the Prime Minister on 25th September, 2014. At bilateral level, DIPP is the nodal Department for the Indo-Swedish, IndoLibyan, Indo-Hungarian, Indo-Polish and

Role and Functions

India-Belarus Joint Commissions. In addition, Joint Working Groups (JWGs) have been set up with Russian Federation, Belarus and Brazil on investment and industrial cooperation. JWGs on IT, coal and food processing have been set up with Poland. In order to deepen economic engagement with major economies across the world, CEOs’ Forums/ Joint Business Councils are being set up with the objective of facilitating mutually beneficial partnership with other countries at the business level as well as inputs in policy making. So far, CEO’s Forums/Business Leaders’ Forums have been set up with USA, Japan, France, UK, Malaysia, South Africa, Brazil, Canada, Russia, Australia, China, Indonesia and Sri Lanka. An India-African Business Council

(IABC) and BRICS Business Council as also Joint Business Councils (JBCs) have been setup for activating business to business contacts. The Department is responsible for negotiations on Investment and Intellectual Property Rights under the ambit of Comprehensive Economic Partnership Agreements (CEPA), Comprehensive Economic Cooperation Agreements (CECA), Broad-based Trade and Investment Agreement (BTIA), Free Trade Agreements (FTAs), etc. with various countries/regions. The Department is also represented in the negotiations on Bilateral Investment Treaties (BITs). In order to assist and handhold foreign

Prime Minister attending the Make in India workshop at Vigyan Bhawan, New Delhi - 29th December, 2014

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investors, Invest India, a Joint Venture Company (Not for Profit Company) between Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce and Industry, Government of India, Federation of Indian Chambers of Commerce and Industry (FICCI) and Various State Governments has been set up. Invest India is responsible for promoting and facilitating investments to India. The shareholding is 51% of FICCI and 49% of DIPP. Subsequently DIPP will dilute its equity to include all State Governments. Already seven states have taken up shares in Invest India. Invest India shall act as a first reference point for investors. Invest India shall also be a fa c i l i t a to r a n d p a r t n e r o f fe r i n g handholding services to the investors to help

them speedily fructify their investment plans. At the time of launch of ‘Make in India’ campaign an Investor Facilitation Cell has been created at Invest India to assist, guide, support, handhold and facilitate investors during various stages of their project. The cell has already responded to about four thousand queries on the portal www.makeinindia.com. In order to enable businesses and investors to save time and costs and to improve the overall business environment in the country, an online single window was conceptualized in the form of e-Biz Mission Mode Project under the National e-Governance Plan. The Union Minister for Commerce & Industry launched the eBiz portal at the

Sectoral discussions in the Make in India workshop at Vigyan Bhawan, New Delhi - 29th December, 2014

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Role and Functions

CII Partnership Summit in Agra on 28.1.2013. and the eBiz platform with 2 DIPP services. (i) Issuance of Industrial Licence (IL) (ii) Industrial Entrepreneur Memorandum(IEM) on 20.1.2014. Intellectual Property Rights DIPP is entrusted with the responsibility of formulation of policy in respect of Intellectual Property Rights (IPRs) i.e. Patents, Designs, Trade Marks and Geographical Indications of Goods. The department administers Intellectual Property Rights (IPRs) Legislations, namely, the Patents Act, 1970, the Designs Act, 2000, the Trade Marks Act, 1999, and Geographical Indications of Goods (Registration & Protection) Act, 1999, through the Office of Controller General of Patents, Designs & Trade Marks (CGPDTM), a subordinate office of this Department. It also administers establishment matters in respect of the Intellectual Property Appellate Board (IPAB). DIPP undertakes bilateral and multilateral cooperation activities in respect of Intellectual Property Right matters on behalf of the government. It is the nodal department for all matters relating to the World Intellectual Property Organization (WIPO). Productivity and Quality DIPP is the nodal department for the promotion of productivity and quality in the industrial sector. National Productivity Council, New Delhi, an autonomous body

under this Department, undertakes programmes of technical cooperation with the Asian Productivity Organization (APO), Tokyo, by sourcing experts to advise on productivity related projects and by deputing officials from the private and public sector to programmes conducted by APO in industry, agriculture and service related sectors, in addition to its own training and awareness programmes on productivity. The Quality Council of India, another autonomous body under this Department, promotes adoption of quality standards relating to Quality Management Systems (ISO 9001 Series), Environment Management Systems (ISO 14001 Series), Food Safety Management Systems (ISO 22000 Series), Product Certification and inspection bodies through the accreditation services provided by National Accreditation Board for Certification Bodies (NABCB). Besides NABCB, there are three other boards viz National Accreditation Board for Education & Training (NABET); National Accreditation Board for Hospitals & Healthcare Providers (NABH); and National Board for Quality Promotion (NBQP) which provide accreditation certification on education, health and quality promotion respectively. UNIDO Activities The department is the nodal Department for all matters related to UNIDO operations in India. UNIDO is a specialized agency of the United Nations for industrial activities within the United Nations system. India has

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been an active member of the organization since its inception. UNIDO has established its presence in India by means of following centres/offices with different mandates viz. (i)UNIDO Regional Office (URO) which is headed by UNIDO Representative (UR) to India and Asian region. (ii) UNIDO Centre for South-South Industrial Cooperation (UCSSIC), New Delhi a n d ( i i i ) I n te r n a t i o n a l C e n t re fo r advancement of Manufacturing Technology (ICAMT), Bangalore. The UNIDO Regional Office for South Asia, set up in New Delhi on 1st January, 2000, covers seven countries – India, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives and Afghanistan – and acts as a focal point to mobilize knowledge, information and technology for the region. The Country Program of Cooperation between India and UNIDO (CP 2013-17) signed in Vienna in September, 2013, by Secretary, DIPP and DG, UNIDO, is presently guiding the activities of UNIDO in India. CP(2013-17) serves as the framework for interventions by UNIDO in India, as aligned with the Government’s 12th Five Year Plan and the United Nations Development Action Framework (2013-2017) In continuation of the First Phase, the UNIDO Centre for South - South Industrial Cooperation (Phase-II) has come into existence from 1st May, 2013, for next 5 years in New Delhi. The overall development goal of the Centre’s operations is to contribute to social, economic and environmental development in least developed countries, mainly in Africa.

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The International Centre for Advancement of Manufacturing Technology (ICAMT) has been established by UNIDO with cooperation of DIPP as one of the ten International Technology Centres (ITCs) of UNIDO. This centre is engaged in diffusing technological knowledge and innovations into industrial processes and building up technology partnerships among the developing countries. The operational phase of ICAMT project has been successfully completed after extended period. Programmes for Industrial Infrastructure Development-Modified Industrial Infrastructure Upgradation Scheme (MIIUS) Industrial Infrastructure Upgradation Scheme (IIUS) was launched in 2003 with an objective to enhance competitiveness of industry by providing quality infrastructure through public private partnership (PPP) in selected functional clusters/locations. On the basis of evaluation of the Scheme in December 2011, a modified version of IIUS viz, ‘Modified Industrial Infrastructure Upgradation Scheme (MIIUS)’ was notified in July, 2013. Under MIIUS, projects can be undertaken to upgrade infrastructure in existing Industrial Parks/Estates/Areas. Greenfield projects in backward areas and North Eastern Region (NER) are also be sanctioned under the scheme. Projects are to be implemented by the State Implementing Agency (SIA) of the State Government. Central grant upto 50% of the project cost with a ceiling of Rs.50.00 crore

Role and Functions

are considered under MIIUS with minimum State Implementing Agency’s contribution of 25% and in case of North Eastern States, the central grant and the minimum contribution of the SIAs is to the tune of 80% and 10% respectively. 21 projects have been accorded ‘in-principle’ approval for central grant amounting to Rs.550.00 crore and out of these, 10 Agencies have submitted proposals for ‘final approval’ and are under evaluation in this Department. The remaining 11 Agencies are expected to submit proposals for ‘final approval’ shortly. Delhi Mumbai Industrial Corridor Project: The DMIC project was launched in pursuance of an MOU signed between the Government of India and the Government of Japan in December 2006. The project, spanning the States of Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra along the Western Dedicated Freight Corridor (DFC) of the railways, seeks to leverage the connectivity backbone provided by the DFC to create a strong economic base with a globally competitive environment and state-of-theart infrastructure to activate local commerce, enhance investment and attain sustainable development. DMIC Development Corporation (DMICDC), incorporated in 2008, is the implementing agency for the project. Initially, 8 nodes/cities in the six DMIC states have been taken up for development. Release of funds to the SPVs for the nodal

cities for development of trunk infrastructure and also to DMICDC for project development is done through the DMIC Project Implementation Trust Fund. The Japanese Government with 26% equity in DMICDC has announced its financial support for DMIC project to the extent of US $ 4.5 billion in the first phase for the projects with Japanese participation involving cutting edge technology through a mix of JICA and JBIC lending. Master plans for all the nodes except the Dadri Noida Ghaziabad Investment Region in Uttar Pradesh have been completed and accepted by the State Governments. Land acquisition for the new industrial regions/ areas as well as for the Early Bird Projects identified for development as model initiatives are in different stages of progress in different States. Finalisation of Shareholders Agreement and State Support Agreement for formation of SPVs for the nodes has been completed or is in advance stage. Action to implement the projects on which investment decisions has been taken by the Trust/CCEA is in progress. STEP Loan has been approved by CCEA with the modification that companies incorporated in India that are owned and controlled by Indians would also be eligible to meet procurement conditions of the STEP loan along with Japanese companies and local companies in India with 10% or more Japanese equity. The work relating to five smart cities namely Integrated Industrial Township, Greater

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Noida (UP), Integrated Industrial Township, Vikram Udyogpuri (M.P.), Dholera (Gujarat, Shendra Bidkin (Maharashtra) and Global City (Haryana) is moving towards implementation.

Regional Perspective Plan for CBIC region within 6-8 months of mobilization of the Consultant and the Concept Master Plan and Development Plan for at least two Industrial Nodes within the next 10 -12 months.

Chennai Bengaluru Industrial Corridor (CBIC) Region

JICA has selected a consortium of consultants comprising M/s Pricewaterhouse Coopers (PWC), Japan and M/s Nippon Koei Company Ltd, Japan for the study.

During the Summit Meeting held between India and Japan in December 2011, the two Prime Ministers decided to strengthen efforts to improve infrastructure in Chennai-Bengaluru area and directed to operationalise the modalities for preparation of the Comprehensive Integrated Master Plan for development of Chennai – Bengaluru Industrial Corridor (CBIC). The corridor between Chennai – Bengaluru – Chitradurga (around 560 km) would have an Influence Area spread across the states of Karnataka, Andhra Pradesh and Tamil Nadu. The strategy to develop the CBIC is part of the plan to achieve accelerated development and regional industry agglomeration in the states of Tamil Nadu, Karnataka and Andhra Pradesh. A total of 25 priority projects across various s e c t o r s h ave b e e n - i d e n t i f i e d fo r debottlenecking infrastructure bottlenecks in the region in the preliminary study conducted by the Japan International Cooperation Agency (JICA) as Phase-I of the study. As per the Terms of a reference for Phase II study, JICA will prepare a Comprehensive

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The Part A as regard to preparation of Comprehensive Regional Perspective Plan for the overall CBIC Region has been completed by the Consultants of CBIC. The Part B as regard to preparation of Concept Master Plan and Development Plan for Industrial Nodes is in progress. Under the feasibility study conducted by the JICA study team; Three nodes, Tumkur (KN), Ponneri (TN), and Krishnapatnam (AP) selected for master planning in the first phase - master plans to be ready by March 2015. Amritsar Kolkata Industrial Corridor (AKIC) The Amritsar-Kolkata Industrial Corridor is an ambitious project aimed at developing an industrial Zone spanning across seven States in India. The AKIC is proposed to be developed using EDFC as the backbone; From Ludhiana in Punjab to Dankuni in West Bengal , the EDFC traverses 1839 kms spanning six States of Punjab, Haryana, U.P., Bihar, Jharkhand and West Bengal will include and have an impact on more than 20

Role and Functions

important cities in the region. The corridor covers one of the most densely populated regions of the country. The region as a whole lags behind in industrial activity and has been seeing an exodus of manpower to the other industrial hubs for decades. The Project will see major expansion of infrastructure and industry including industrial clusters and rail, road port, air connectivity in the states along the route of the corridor and will provide a boost to employment in primary core sectors and subsequent support areas. The development of AKIC will be taken up in a band of 150-200 kms on either side of the EDFC, in a phased manner. This infrastructure development project will also give much needed boost to the manufacturing sector and help in raising its domestic product. DMICDC has been appointed as the nodal agency for Feasibility Study and Master Planning for this project. RFQ cum RFP document for selection of consultant regarding preparation of Perspective Plan for the overall AKIC region by the DMICDC has been initiated. Bengaluru-Mumbai Economic Corridor (BMEC) During the Summit meeting held between India and United Kingdom in February, 2013, the Prime Ministers of both the countries welcomed the development in cooperation on infrastructure since the last summit. They noted UK’s interest in cooperating with India for the development

of a new Bengaluru-Mumbai Economic Corridor (BMEC). The leaders agreed to examine and evolve the modalities and content of a feasibility study of this project concept through mutual discussions and to work out a roadmap for a possible partnership in this area. On the basis of approved Terms of Reference (TORs) in consultation with DMICDC, the nodal agency on Indian Side, Department of Economic Affairs and the UK Trade and Investment (UKTI), the nodal agency on the UK side, the contract between DMICDC and the consultants i.e., M/s Egis India Consulting Engineers Pvt. Ltd. in JV with IAU ile-de-France & CRISIL Risk & Infrastructure Solutions Limited has been executed on 8th March, 2014 for the feasibly study of BMEC. The perspective planning of BMEC project is expected to be completed by this year by the nodal agency i.e. DMICDC. Vizag-Chennai Industrial Corridor The Vizag Chennai Industrial Corridor (VCIC), India’s first coastal economic corridor and part of the broader East Coast Economic Corridor (ECEC), is poised to play a significant role in boosting national manufacturing, trade and creating jobs. VCIC (and ECEC) aligns strategically with India’s Look East Policy and serves as a land and maritime corridor to connect India with the dynamic Southeast and East Asian economies. It will allow Indian companies to join the global and regional production networks of East Asia and reach out to the larger global market.

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During the bifurcation of the State of Andhra Pradesh, an act namely Andhra Pradesh Reorganisation Act, 2014 was made and section 93 of this act which enjoins upon the Central Government to take all necessary measures as enumerated in the Thirteenth Schedule, entry 5 of which provides as follows: The Government of India shall, with in six months from the appointed day, examine the feasibility of establishing a Vizag-Chennai industrial corridor on the lines of DelhiMumbai Industrial Corridor and take within such period an expeditious decision thereon.” In this regard i.e., the feasibility to establish a Vizag-Chennai Industrial Corridor on the lines of Delhi-Mumbai Industrial Corridor(DMIC), as committed by the Central Government in terms of Andhra Pradesh Reorganisation Act, 2014, has to be examined by the Department of Industrial Policy and Promotion (DIPP) and it has been decided that Asian Development Bank (ADB) who are getting a feasibility study done in r/o East Coast Economic Corridor(ECEC) will also take up the study of Vizag Chennai Industrial Corridor (VCIC). In phase I of the study of East Coast Economic Corridor (ECEC), ADB will take up the study for the Vizag Chennai Industrial Corridor for which a draft final report on Conceptual Development Plan on the Vizag-Chennai Corridor has been prepared by them followed by an Inception Report on 29th May, 2014.

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ADB is presently preparing the following pre-project study reports for VCIC: Phase-I Conceptual development plan – by end October, 2014 P h a s e - I I : C o m p re h e n s ive Re g i o n a l Perspective Plan – by June, 2015 Phase-III: Master Planning of Nodes – After June 2015 In their preliminary studies, ADB has identified four potential nodes namely; V i s h a k h a p a t n a m , G a n n ava ra m a n d Kankipadu, Kakinada and Srikalahasti Yerpedu in Andhra Pradesh out of which ADB would undertake master plan for the prioritized two nodes namely Vishakhapatnam and Srikalahasti Yerpedu in Andhra Pradesh for which master plan exercise could be initiated around middle of 2015. North East Myanmar connectivity During the last visit of the Prime Minister to Japan, it was also decided to connect the North East to these corridors and extend this connectivity to Myanmar on the other side. JICA has been asked to initiate the work. National Industrial Corridor Development Authority (NICDA) The National Industrial Corridor Development Authority (NICDA) is envisaged to be a multi-disciplinary professional organization, with high quality technical, financial and management expertise, which will channelize central as well as institutional funds while ensuring

Role and Functions

that the various corridors are properly developed, planned and implemented keeping in view the broad national perspectives regarding industrial and city development. NICDA will carry out project development activities, appraise and sanction projects, implement, and monitor and coordinate all efforts for the development of industrial/ economic corridors. An EFC note on formation of NICDA is under circulation for seeking comments of concerned Ministries.

90% is provided on the transport cost for transportation of raw material and finished goods to and from the location of the unit and the designated rail-head or port as the case may be. Transport subsidy also covers movement of raw materials/finished goods from one state to another within the North Eastern Region. The Transport Subsidy Scheme, 1971, has been modified and replaced by Freight Subsidy Scheme, 2013, which has been notified on 23rd January, 2013.

Package for Special Category States

New Industrial Policy and other concessions for the State of J&K were introduced by DIPP on 14th June, 2002 for a period of ten years. The incentives/concessions provided for industrial development in the State included (i) Central Capital Investment Subsidy Scheme, 2002; (ii) Central Interest Subsidy Scheme, 2002; (iii) the Central Comprehensive Insurance Scheme, 2002. The package of incentives for the State of J&K has been extended for a further period of five year upto 14.06.2017.

For promoting industrialization in the remote, hilly and inaccessible areas, Central Government has formulated and notified North East Industrial and Investment Promotion Policy (NEIIPP), 2007, for the eight states of North East Region and Transport Subsidy Scheme, 1971, which in addition to the eight states of North East region also covers Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Darjeeling district of West Bengal, Andaman & Nicobar Administration and Lakshadweep Administration. Benefits/incentives available under different schemes of North East Industrial and Investment Promotion Policy (NEIIPP), 2007, include Capital Investment Subsidy, Interest Subsidy, Reimbursement of Insurance, 100% Income Tax Exemption and Excise Duty Exemption based on value addition norms specified by the Department of Revenue, Ministry of Finance. Transport subsidy, ranging from 50% to

New Industrial policy and other concessions for the States of Himachal Pradesh and Uttarakhand were introduced by the Department of Industrial Policy & Promotion on 7th January, 2003, with an aim to provide required incentives as well as an enabling environment for industrial development, improve availability of capital and increase market access to provide a fillip to the private investment in the state. The scheme which was originally valid till 6th Jan., 2013, has been extended upto 31st March, 2017.

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Monitoring of Industrial Activity, Production and Prices DIPP monitors the performance in the industrial sector through collating information on Industrial Entrepreneurs’’ Memorandum (IEM), Industrial License, Letter of Intent (LOI), Foreign Investment

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data and industrial production returns. The Department also compiles and prepares index of production of 8 core infrastructure industries on a monthly basis. Besides, the Department publishes the monthly Wholesale Price Index (WPI) which forms the basis for official information on inflation.

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CHAPTER

Evolution and Development of Industrial Policy

General Industrial Policy The Industrial Policy Resolution of 1948, delineated the role of the State in industrial development both as an entrepreneur and an authority. This was followed by comprehensive enactment of Industries (Development & Regulation) Act, 1951, that provides for the necessary framework for implementing the Industrial Policy and enables the Union Government to direct investment into desired channels of industrial activity inter alia through the mechanism of licensing in keeping with the national development objectives and goals. The main objectives of the Industrial Policy are (i) to maintain a sustained growth in productivity;(ii) to enhance gainful employment;(iii) to achieve optimal utilisation of human resources; (iv) to attain international competitiveness; and (v) to transform India into a major partner and player in the global arena. To achieve, these objectives, the Policy focus is on (i) deregulating the Indian industry (ii) allowing freedom and flexibility to the industry in responding to market forces (iii) providing a policy regime that facilitates and fosters growth. The following measures have been taken up by the Government in this direction:

(i)

Liberalization of Compulsory Industrial Licensing Policy

The list of items covered under compulsory licensing under the Industries (Development & Regulation) Act, 1951, is reviewed on an ongoing basis. At present only five industries related to security, strategic and environmental concerns where an Industrial License (IL) is currently required: i)

Distillation & brewing of alcoholic drinks;

ii)

Cigars and cigarettes of tobacco and manufactured tobacco substitutes;

iii)

Electronic, aerospace and defence equipment;

iv)

Industrial explosives including detonating fuses, safety fuses, gunpowder, nitrocellulose and matches;

v)

Specified hazardous chemicals, i.e. (a) Hydrocyanic Acid and its derivatives, (b) Phosgene and its derivatives and ( c) Isocyanats and disocyanates of hydrocarbon, not elsewhere specified (example methyl lsocyanate).

During 2014-15, while electronic, aerospace and defence equipment continued to attract

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industrial licensing, in order to give a boost to defence manufacture, a number of procedural simplifications and clarifications in the process of industrial licensing with respect to deference manufacturing have been effected during the year.

c.

Partial commencement of production is treated as commencement of production of all the items included in the license.

d.

Vide Press Note 4(2014), the advanced version of NIC Code (NIC 2008) has been adopted, which is a highly contemporary industrial classification.

e.

Vide Press Note 6(2014), the ‘Security Manual for Licensed Defence Industry’ has been issued. With the issue of the Security Manual, the requirement of affidavit from the applicants has been done away with.

f.

The process for issue of Industrial License for manufacture of Unmanned Aerial Vehicles (UAVs) for Defence use by private companies in India has been simplified after the matter related to frequency band of UAVs was cleared by Department of Telecommunications.

g.

The Restriction of annual capacity in the Industrial License for Defence Sector has done away with.

h.

The Licensee has been allowed to sell the defence items to the Government entities under the control of Ministry of Home Affairs, Public Sector Undertakings, State Governments and Other Defence Licensee companies without requirement of approval of the Department of Defence Production.

These are enumerated below: a.

b.

16

Vide Press Note 3(2014), a list for what constitutes Defence equipment requiring industrial licensing has been issued, wherein a large number of parts/components, castings/ forgings etc. have been excluded from the purview of industrial licensing. Industrial License will henceforth be required only for the manufacture of those Defence items which have been specifically mentioned in the 3rd column of the Annexure to the Press Note 3 (2014). Dual use items, having military as well as civilian applications (unless classified as defence item) will not require Industrial License from defence angle. Guidelines have been issued vide Press Note 5 (2014) and Press Note No 9 (2014), to streamline the processing of applications for grant of extension of validity of Industrial License. Two extensions of two years each in the initial validity period of three years of the Industrial License up to seven years is allowed as against five years earlier.

Evolution and Development of Industrial Policy

(II) Liberalisation of Public Sector Reservation Till recently, two industries namely (i) Atomic Energy (Production, separation or enrichment of special fissionable materials and substances and operation of the facilities) and (ii) Railway transport were reserved for the public sector. During 2014-15, vide Gazette Notification No SO 2113( E) dated 22nd February, 2014, construction, operation and maintenance of identified ten items in the purview of Railway transport have been exempted from reservation for the public sector, and private investment has been allowed. Accordingly, the two industries that are reserved for the public sector at present are as follows: (a)

Atomic Energy (Production, separation or enrichment of special fissionable materials and substances and operation of the facilities) and ,

(b)

Railway Operations other than construction, operation and maintenance of the following: (i) Suburban corridor projects through Public Private Partnership; (ii) High speed train projects; (iii) Dedicated freight lines; (iv) Rolling stock including train sets, and locomotives/ coaches manufacturing and maintenance facilities; (v)

Railway Electrification;

(vi)

Signaling systems;

(vii)

Freight terminals;

(viii)

Passenger terminals;

(ix) Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line; and (x) Mass Rapid Transport Systems. National Manufacturing Policy Government of India announced a National Manufacturing Policy (NMP) in the year 2011 with the objective of enhancing the share of manufacturing in GDP to 25% and creating 100 million jobs over a decade or so. The policy also seeks to empower rural youth by imparting necessary skill sets to make them employable. Sustainable development is integral to the spirit of the policy and technological value addition in manufacturing has received special attention. The policy is based on the principle of industrial growth in partnership with the States and is generally sector-neutral, location-neutral and technology-neutral except for incentivisation of green technology. The thrust of NMP is on the Central government creating an enabling policy frame work, providing for incentives for infrastructure development on a Public Private Partnership (PPP) basis through appropriate financing instruments, and encouraging the State Governments to adopt the instrumentalities provided in the policy.

17

ANNUAL REPORT 2014-15

NMP provides that the National Investment and Manufacturing Zones (NIMZ) as well as the other Industrial Clusters willing to adopt the parameters laid down in the Policy can benefit from the investment friendly provisions of NMP, and the initiative needs to come from the State Governments. With the in-principle approval to Kalinganagar, Jajpur district in Odisha given in 2014-15, so far, 17 NIMZ (including 8 Investment Zones in the Delhi Mumbai Industrial Corridor) have been given in-principle approval since announcement of NMP. ‘Make in India’ Initiative In the continuous process of evolution of Industrial Policy to boost manufacturing, the ‘Make in India’ global initiative was launched on 25th September, 2014, to invite both domestic and foreign investors to invest in India. The initiative was simultaneously launched in all state capitals and in several Indian Embassies/High Commissions where time-zones permitted. A few other Indian Embassies have also organized “Make in India” interactions after the launch. The ‘Make in India” initiative is based on four pillars, identified to boost entrepreneurship in India, not only in manufacturing but also other sectors. These are: (i)

New Processes

(ii)

New Infrastructure

(iii) New Sectors (iv) New Mindset

18

An Investor Facilitation Cell has been created in ‘Invest India’ ( a partnership venture of DIPP and FICCI), to assist, guide and handhold investors during the various phases of business life cycle, with back end support up to the State level. Information on 25 thrust sectors has been put up on ‘Make in India’s web portal (http://www.makeinindia.com) along with details of FDI Policy, National Manufacturing Policy, Intellectual Property Rights and Delhi Mumbai Industrial Corridor and other National Industrial Corridors. A National Workshop with the Industry, States and all Sectoral Central Ministries to draw up a Plan of Action in the short and medium term for creating an enabling framework for stimulating investments in manufacturing was held on 29th December, 2014. Policy for Foreign Direct Investment (FDI) For inviting investment for industrial growth to contribute to higher GDP, an appropriate FDI Policy is crucial. The Department of Industrial Policy & Promotion is the nodal Department for formulation of the policy of the Government on FDI. It is also responsible for maintenance and management of data on inward FDI into India, based upon the remittances reported by the Reserve Bank of India. The FDI policy is reviewed on an ongoing basis, with a view to making it more investorfriendly, in keeping with national interest. With a view to attracting higher levels of FDI, Government has put in place a liberal policy on FDI, under which FDI up to 100%, is

Evolution and Development of Industrial Policy

permitted, under the automatic route, in most sectors/ activities. Significant changes have been made in the FDI policy regime in recent times, to ensure that India remains an i n c re a s i n gly a t t ra c t ive i nve s t m e n t destination. The Department plays an active role in the liberalization and rationalization of the FDI policy. Towards this end, it has been constructively engaged in holding extensive stakeholder consultations on various aspects of the FDI policy. During 2014-15, FDI in Defence Industry has been permitted through the Government route up to 49%. Also, higher FDI can be allowed on case to case basis. Further, FDI in construction, operation and maintenance of identified railway transport infrastructure up to 100% has been permitted through the automatic route. In sensitive areas, from security point of view, FDI beyond 49% would be allowed on a case to case basis. The norms for FDI in Construction Development Projects (which already permitted 100% FDI through automatic route) have been further liberalised. The Government has permitted FDI up to 100% under the automatic route both for green field and brown field projects for manufacturing of defined medical devices, which would not attract sectoral conditions for pharmaceutical industry. Industrial Management and Industrial Production It has been the continuous endeavor of the Department of Industrial Policy and

Promotion to make its functioning and industry friendly. (a)

Industrial Entrepreneur Memorandum (IEM) The Industrial undertakings which are n o t m e d i u m , s m a l l o r m i c ro enterprises (MSME), [defined at present as those with an investment above Rs 10 crore in plant and machinery for manufacturing sector and more than Rs 5 crore for service sector], and which intend to set up industries that do not attract industrial license are required to file an Industrial Entrepreneur Memorandum (IEM) Part “A” with the Secretariat for Industrial Assistance. Immediately after commencement of commercial production, Part ‘B’ of the IEM is required to be filed. Filing an IEM is primarily for the purpose of collecting data about the de-licensed sector on proposed investment, and type of industrial activity. It is also useful for the purpose of conducting a limited scrutiny mainly to preclude manufacturing of a compulsory licensable/small scale reserved item by IEM route. From 1991-2014, a total of 95094 IEM (Part A) with proposed investment of Rs. 10526772 crore are on record. State-wise and sector-wise lists of IEMs filed during the last five years on

19

ANNUAL REPORT 2014-15

a year-wise basis are at Appendices III and IV. Since 1991 till December 2014, a total of 10973 units have formally intimated commencement of commercial production (Part B). The investment reported in respect of these IEMs is Rs. 569243 crore. The State-wise report of implementation of IEMs for the last five years is at Appendix-V. (b)

Industrial Investment Intentions (IEM, LOI and DIL): Information on Industrial Investment Intentions for the non-MSME are maintained through IEM for the delicensed sector and Letters of Intent (LOI) and Direct Industrial Licenses (DIL) for the licensable sector. Statewise and Sector-wise details of Industrial Investment Intentions during last two Plan periods are given at Appendices ‘VI’ & ‘VII’ respectively. The information on Industrial Investment, information on IEMs filed on daily basis etc are disseminated through the Department website for the information of the investors which leads to transparency and accountability of the functioning.

(c )

Online filing of IL and IEM applications The process of applying for Industrial License (IL) and Industrial

20

Entrepreneur Memorandum (IEM) has been made online with effect from May 2014 and this service is now available to entrepreneurs on 24X7 basis at the e-Biz website, without human interface. (d)

Industrial Production The Index of Industrial Production (IIP) brought out by the Central Statistics Office measures industrial performance in manufacturing, mining and electricity sectors and also classify the IIP in use-based group such as basic goods, capital goods, intermediate goods and consumer goods. DIPP is the most important single “Source Agency” for the IIP, and provides inputs for 45.6% of the weight of IIP. DIPP monitors the industrial performance as reflected in the IIP and regularly sensitizes different Departments and Ministries about downward trends for the manufactured items for which those Sectoral Departments and Ministries are administratively responsible for interventions as considered appropriate by them. The growth of IIP has been fluctuating over the last few years. The growth in overall IIP, peaked at 15.5 % in 200708 (manufacturing growth rate was 18.4%) but declined to 2.5 % in 200809, however, it recovered to 5.3 % in 2009-10 and thereafter improved to

Evolution and Development of Industrial Policy

8.2 % in 2010-11. Subsequently, the industrial growth decelerated to 2.9 % in 2011-12 and 1.1 % in 2012-13 and the industrial production again

moderated recording a negative growth of (-) 0.1 % in 2013-14. The details are given below in Table-2.1.

Table 2.1 Annual Growth Rate of Industrial Production (Per cent) Period

Weight

200708

200809

200910

201011

201112

201213

201314

201415 (AprilDec)

Mining

14.2

4.6

2.6

7.9

5.2

-2.0

-2.3

-0.6

1.7

Manufacturing

75.5

18.4

2.5

4.8

8.9

3.0

1.3

-0.8

1.2

Electricity

10.3

6.3

2.7

6.1

5.5

8.2

4.0

6.1

10.0

Overall

100.0

15.5

2.5

5.3

8.2

2.9

1.1

-0.1

2.1

Source: Central Statistics Office

The growth in IIP during current financial year April-December, 2014-15, improved to 2.1% along with improvement in growth of all its sectors. The low growth manufacturing sector during current financial year was primarily due to the steep fall in production of industry groups like radio, TV and communication equipment (54.7%), office, accounting & computing machinery(-37.4%), publishing, printing & reproduction of recorded media (-5.1%), medical, precision & optical instruments, watches and clocks (-2.3%) chemicals and chemical products (-1.9%) etc. The details of the growth in the manufacturing subgroups are given in the Table – 2.2. In use-based classification of IIP, the production of Capital goods has shrunk during 2011-12, 2012-13 and 2013-14, which is also true for Consumer goods in

2013-14. The Consumer goods continued with its negative growth whereas performance of Capital goods has improved during April-December, 2014-15. The negative growth of Consumer goods during this period is largely on account of negative growth in the consumer durable segment. (Table-2.3). The Graph-1 below shows that growth in overall IIP and its three sectors has been volatile. The volatility appears to have increased during recent months. During April–December, 2014-15, volatility in the sectors persisted as displayed in the monthwise growth trend of IIP. During current financial year, the highest growth of 5.6 percent was recorded in May, 2014 while the lowest growth at (-) 4.2 percent recorded in October, 2014 (Graph – 2.1).

21

ANNUAL REPORT 2014-15

Table 2.2 Growth Rates of Industrial Production by Broad Groups of Manufacturing (Base :2004-05=100) (Per cent) Industry

Weight

200708

200809

200910

201011

201112

201213

15

Food products & beverages

72.76

12.5

-8.2

-1.4

7.0

15.4

2.9

-1.1

7.6

16

Tobacco products

15.70

-4.4

4.4

-0.6

2.1

5.4

-0.4

0.8

0.0

17

Textiles

61.64

6.6

-3.6

6.1

6.7

-1.3

5.9

4.4

2.0

18

Wearing apparel

27.82

9.3

-10.2

1.9

3.7

-8.5

10.4

19.5

0.7

19

Luggage, handbags etc.

5.82

5.8

-5.1

1.3

8.0

3.7

7.3

5.2

9.8

20

Wood & wood products

10.51

17.5

4.9

3.1

-2.2

1.8

-7.1

-2.2

1.2

21

Paper & Paper products

9.99

1.4

4.8

2.6

8.5

5.0

0.5

-0.1

2.5

10.78

14.2

1.6

-6.0

11.2

29.6

-5.1

0.3

-5.1

67.15

6.2

3.2

-1.3

-0.2

3.5

8.5

5.2

0.8

100.59

7.2

-2.9

5.0

2.0

-0.4

3.8

8.9

-1.9

20.25

13.4

5.1

17.4

10.6

-0.3

0.2

-2.1

3.3

43.14

9.3

3.3

7.8

4.1

4.8

1.9

1.1

4.9

Basic metals Fabricated metal Products Machinery and equipment n.e.c. Office, accounting & computing machinery Electrical machinery & apparatus Radio, TV and communication equipment Medical, precision & optical instruments, watches and clocks Motor vehicles, trailers Other transport equipment n.e.c.

113.35

17.9

1.7

2.1

8.8

8.7

1.9

0.3

10.7

30.85

7.8

0.1

10.2

15.3

11.2

-4.7

-7.0

1.2

37.63

22.6

-7.6

15.8

29.4

-5.8

-4.7

-4.7

2.6

3.05

6.0

-9.7

3.8

-5.2

1.6

-13.9

-15.7

-37.4

19.80

183.5

42.3

-13.5

2.8

-22.2

0.6

14.5

19.0

9.89

93.1

20.3

11.3

12.7

4.3

5.6

-27.3

-54.7

5.67

6.3

7.5

-15.8

6.8

10.9

-2.0

-5.1

-2.3

40.64

9.5

-8.7

29.8

30.3

10.8

-5.3

-9.6

0.5

18.25

-2.9

3.8

27.7

23.1

11.9

-0.1

5.9

8.9

Furniture

29.97

18.7

7.4

7.1

-7.5

-1.8

-5.1

-13.9

1.6

Code

22

23 24 25 26 27 28 29 30 31 32

33 34 35 36

Publishing, printing & reproduction of recorded media Coke, refined petroleum products & nuclear fuel Chemicals and chemical products Rubber and plastic products Other non-metallic mineral products

Source: Central Statistics Office

22

20132014-15 14 (April-Dec)

ANNUAL REPORT 2014-15

Table 2.3 Use-Based Classification of IIP (Per cent)

Basic Goods Capital Goods Intermediate Goods Consumer Goods (i) Consumer Durable (ii) Consumer Non-durable

45.7 8.8

200607 8.9 23.3

15.7

11.5

7.3

0.0

6.0

7.4

-0.6

1.6

3.1

1.7

29.8

16.1

17.6

0.9

7.7

8.5

4.4

2.4

-2.8

-4.9

8.5

25.3

33.1

11.1

17.0

14.2

2.6

2.0

-12.2

-15.2

21.3

12.3

10.2

-5.0

1.4

4.2

5.9

2.8

4.8

2.2

IIP

100

12.9

15.5

2.5

5.3

8.2

2.9

1.1

-0.1

2.1

Sectors

Weight

200708 8.9 48.5

2008- 2009- 2010- 201109 10 11 12 1.7 4.7 6.0 5.5 11.3 1.0 14.8 -4.0

201213 2.5 -6.0

2013- 2014-15 14 (April-Dec) 2.1 6.9 -3.6 4.8

Growth in percent

Graph-2.1 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Jan'14 Feb'14 Mar'14 Apr'14 May'14 Jun'14 Jul'14 Aug'14 Sep'14 Oct'14 Dec'14 -2.0 -4.0 -6.0 -8.0 -10.2 Mining

Manfacturing

Electricity

Over all IIP

Graph – 1 Month-wise sectoral growth rates during 2014

23

ANNUAL REPORT 2014-15

Table 2.4 Products showing negative / low growth during 2014-15 (April-December) Use-based industry groups

DIPP products

Basic Goods

Aluminium Sheets/Plates, Granites, Sulphuric Acid, Incl. Oleum, Aniline, Glycerine, Dissolved Acetylene Gas etc.

Capital Goods

Commercial Vehicles, Boilers, Tractors (complete), Engines Incl. Internal Combustion and Diesel Engine, Computers, Earth Moving Machinery, Conductor, Aluminium, Textile Machinery, Air Break Switches / Circuit Breakers, Generator/Alternator, Sugar Machinery, Insulated Cables/Wires all Kind , Ship Building & Repairs , X-ray equipment, Heat Exchangers, Turbines & Accessories , Agricultural Implements , Food Processing Machinery, XLPE Cable, Material Handling Equip., Dairy Machinery, Loaders, Mining Equipment, Transformers (P.D.T & Special Type), Air Conditioner (Packaged),

Intermediate Goods

Steel Structures, Indust. Alcohol (Rectified/Denatured Spirit), Glass Bottles, Particle Boards , Polyester Chips, Plastic Film Excl. Bopp Film, Glass Sheet, PVC Resins , Printing Ink, Wood Veneer, HDPE Woven Sacks, Plastic Sheets, Fatty Acid, Empty Capsules, Rubber Tread, Leather Finishing Chemicals & Auxiliaries, Power Capacitors, IC Chips & Transistors, Welding Rods, Whitening Agents, Pulp Rayon Grade.

Consumer Durables

Gems and Jewellery, Wood Furniture, Telephone Instruments Including Mobile Phone and Accessories, PVC Pipes and Tubes, Marble Tiles/Slabs, Bicycles, Pvc/Plastic Suitcases, Tyre, Motor Cycle, Cock (Faucets), Mixers & Grinders, Clock/Watch/Timepiece Movement, Tyre, Jeep (Incl. SUVs, MUV), Calculators

Antibiotics & It's Preparations, Apparels, Newspapers, Cigarettes, Razor Blades/Safety Blades ,Cashew Kernels, Biscuits, Maida, Milk Powder all Consumer Non kind, Beer, Frozen Buffalo/Mutton Meat and edible Offals, Atta, durables - Fluorescent Tubes, Chocolate, Dry Cells, Safety Matches, Syringes, Tooth Paste, Computer Stationery, Bran, Hair Oil, Sooji, Flavoured Milk, Tooth Powder Source: DIPP

24

Evolution and Development of Industrial Policy

The items included in IIP for which information is collected by DIPP and showing negative/low growth during AprilNovember, 2014-15 are listed in the Table – 2.4. (e) Performance of Core Industries The Index of Eight Core Industries (ICI) monitors production of eight infrastructure industries i.e. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity every month. These eight industries have combined weight of around 37.90 % in Index of Industrial Production (IIP). ICI is released 12 days prior to the release of IIP by CSO.

The growth rates for eight core industries since 2006-07 are given in Table – 2.5. During 2013-14, the ICI grew at 3.6 %. Steel, Electricity, Cement, Refinery products, Fertilizers and Coal sectors registered a growth of 9.0 %, 5.8 %, 3.0 %, 1.5 %, 1.5 % and 0.9 % respectively. However, Natural Gas and Crude Oil registered negative growth of (-) 13.0 % and (-) 0.2 % respectively. During April-December, 2014-15, the Index of Eight Core Industries recorded a growth of 4.4 % compared to the corresponding period of the previous year. The growth rate was mainly driven by positive growth in Electricity, Coal, and Cement sectors.

Table 2.5 Growth Rate of Eight Core Industries (Growth rate in %) Weight

200607

200708

200809

200910

201011

201112

201213

201314

2014-15 (April-Dec)

Coal

4.38

5.9

6.3

8.0

8.1

-0.2

1.3

4.6

0.9

9.1

Crude Oil

5.22

5.6

0.4

-1.8

0.5

11.9

1.0

-0.6

-0.2

-0.9

Natural Gas

1.71

-1.4

2.1

1.3

44.6

10.0

-8.9

-14.5

-13.0

-5.1

Refinery Products

5.94

12.9

6.5

3.0

-0.4

3.0

3.1

29.0*

1.5

0.2

Fertilizers

1.25

3.1

-7.9

-3.9

12.7

0.0

0.4

-3.4

1.5

-1.4

Steel

6.68

12.8

6.8

1.9

6.0

13.2

10.3

4.1

9.0

1.6

Cement

2.41

9.1

8.1

7.2

10.5

4.5

6.7

7.7

3.0

7.9

Electricity

10.32

7.3

6.3

2.7

6.2

5.6

8.1

4.0

5.8

9.7

Overall Index

37.90

8.4

5.2

2.8

6.6

6.6

5.0

6.5

3.6

4.4

Sector

Source: Office of the Economic Adviser, DIPP *Refinery Products’ yearly growth rates of 2012-13 are not comparable with other years on account of inclusion of RIL (SEZ) production data since April, 2012.

25

ANNUAL REPORT 2014-15

Global Perspective: The UNCTAD World Investment Report (WIR) 2013, in its analysis of the global trends in Foreign Direct Investment (FDI) inflows, continues to report India as the third most attractive location for FDI for 2013-2015. The report also mentions that India accounted for more than four fifths of the FDI in South Asia in 2012. The Financial Year 2013 survey of the Japan Bank for International Cooperation, conducted among Japanese investors, continues to rank India as the second most promising country for overseas business operations in the medium term, with Indonesia at the top. For

26

the long-term, India has been rated as the top investment destination, with China being rated as the second. Ernst & Young’s 2014 Attractiveness survey has mentioned India as the 1st global destination for FDI, in terms of the number of FDI projects followed by Brazil and China. This is due to opening up of FDI in various sectors, including multi-brand retail and telecom. The 2013 A.T. Kearney Confidence Index rates India fifth in terms of future prospects for FDI inflows, after USA, China, Brazil, Canada followed by Australia, Germany, U.K., Mexico, Singapore, Russia and France.

3

CHAPTER

National Manufacturing Policy

The Department has notified the National Manufacturing Policy (NMP) through a Press Note dated 4th November, 2011, with the objective of enhancing the share of manufacturing in GDP to 25% and creating 100 million jobs over a decade or so. The policy is based on the principle of industrial growth in partnership with the States. The Central government will create the enabling policy frame work, provide incentives for infrastructure development on a Public Private Partnership (PPP) basis through appropriate financing instruments, and State Governments are encouraged to adopt the instrumentalities provided in the policy. Important Instruments/Features of The Policy Ø National Investment and Manufacturing

Zones (NIMZs); Ø Rationalization

and simplification of business regulations;

Ø Simple and expeditious exit mechanism

for manufacturing units; Ø Incentives for SMEs; Ø Industrial training and skill upgradation

measures; Ø Financial

and institutional mechanisms for technology development, including green technologies;

Ø Government procurement;

Ø Special Focus Sectors.

National Investment And Manufacturing Zones (NIMZs) NIMZs have been conceived as large integrated industrial townships with stateof-the-art infrastructure; land use on the basis of zoning; clean and energy efficient technology; necessary social infrastructure; skill development facilities, etc., to provide a conducive environment for manufacturing industries. To enable the NIMZ to function as a self governing and autonomous body, it will be declared as a Industrial Township under Article 243 Q (1)(c) of the Constitution. These NIMZ's would be managed by a Special Purpose Vehicle (SPV), which would ensure master planning of the zone; pre-clearances for setting up the industrial units to be located within the zone and undertake such other functions as specified in the various section of the policy. The NIMZs would be different from SEZs in terms of size; level of infrastructure planning; governance structures related to regulatory procedures; exit policies; fiscal incentives, etc. The policy mandates that the SPV in a zone will be headed by a senior government official and will include interalia an official expert conversant with the

27

ANNUAL REPORT 2014-15

work relating to pollution control/ environmental protection. There shall be a provision of suitable representation of the allottees and subsequently industrial units.

access to the patent pool and/or part reimbursement of technology acquisition costs upto a maximum of 20 lakhs rupees for acquiring appropriate technologies patented upto a maximum of 5 years generally, prior to the date of submission of the project.

Special Benefits/Measures For SMEs •

Rollover relief from long term Capital Gains tax to individuals on sale of a residential property (house or plot of land) in case of re-investment of sale consideration in the equity of a new s t a r t - u p S M E c o m p a ny i n t h e manufacturing sector for the purchase of a new plant and machinery.



Tax pass-through status for Venture Capital Funds(VCFs) registered with SEBI with a focus on SMEs in the manufacturing sector.



Liberalization of IRDA guidelines to provide for investments by insurance companies in Venture Capital Funds with a focus on SMEs, in consultation with IRDA.



Easier access to bank finance through appropriate bank lending norms, to be arrived at in consultation with RBI, to cater specifically to the MSME sector and early stage business units.



Setting up of a stock exchange for SMEs and implementation of SEBI’s “framework for recognition and supervision of stock exchanges/ platforms of stock exchanges for SMEs.”



Te c h n o l o g y A c q u i s i t i o n a n d Development Fund: SMEs will be given

28



25% grant to SMEs for expenditure incurred on environmental and water audits subject to a maximum of one lakh rupees in NIMZs.

Special Provisions The proposals in the policy are generally sector neutral, location neutral and technology neutral except incentivisation of green technology. While the NIMZs are an important instrumentality, the proposals c o n t a i n e d i n t h e P o l i c y a p p ly t o manufacturing industry throughout the country including wherever industry is able to organize itself into clusters and adopt a model of self-regulation as enunciated therein. Progress Made So Far The implementation of the NMP has been taken up in right earnest and the following steps have been taken :•

Progress has been made on the issue of rationalization and simplification of business regulations.



The states have been requested to identify land banks for setting up of the National Investment and Manufacturing Zones and to initiate

National Manufacturing Policy

rationalization of business regulations and skill development has been prepared and forwarded to Ministry for Labour & Employment for further necessary action.

the process of rationalization and simplification of state level business regulations. •



Constitution of the approval/ monitoring mechanism i.e Manufacturing Industry Promotion Board (MIPB), Green Manufacturing Committee (GMAC) have been notified on 1st June, 2012 and reconstitution of High Level Committee (HLC) subsuming Board of Approval in it, has been notified on 1st June, 2013. States have also been requested to apply for setting up of NIMZ in a prescribed format for obtaining inprinciple approval from Government of India.



Scheme for Master Planning of NIMZ under NMP has been approved and ready for operationalization.



SFC note on Technology Acquisition and Development Fund have been prepared and is soon to be finalized.



Scheme on Job Loss policy under NMP has been drafted.



Guidelines for establishment of NIMZ and proforma for final approval of NIMZ have also been prepared and circulated to all states.



Definition of Cluster, to be used for dispensations under NMP, prepared and circulated to all State Government.



Draft advisory on simplification &



Guidelines and dispensations for Clusters outside NIMZ under the NMP has been approved and circulated to states.



Progress has been made by the concerned state government in respect of acquisition of land for the NIMZs given ‘in-principle’ approval.



Complete suggestions on simplification of labour laws issued to Ministry of Labour and Employment.



Draft mechanism for delegation of power of inspection/enforcement of labour laws under the relevant Labour Acts to the CEO of NIMZ has been prepared and sent to Ministry of Labour & Employment for taking the matter forward.

Status for NIMZs Twelve NIMZs outside the DMIC region have been given in-principle approval (i) Nagpur in Maharashtra; (ii) Prakasam in Andhra Pradesh; (iii) Chittoor in Andhra Pradesh; (iv) Medak in Andhra Pradesh; (v) Tumkur in Karnataka; (vi) Kolar in Karnataka; (vii) Bidar in Karnataka; (viii) Gulbarga in Karnataka; (ix) Kalinganagar, Jajpur distt., Orissa; (x) Ramanathapuram Distt. of Ta m i l n a d u ; ( x i ) A u r a iya D i s t t . I n

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ANNUAL REPORT 2014-15

Uttarpradesh and (xii) Jhansi Distt. In Uttar Pradesh.

iv.

Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan

Eight Investment Regions along the Delhi Mumbai Industrial Corridor (DMIC) project have also been approved as NIMZs. The details are as under:

v.

Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh

vi.

Dadri-Noida-Ghaziabad Investment Region, Uttar Pradesh

vii.

Dighi Port Industrial Area, Maharashtra ; and

i.

Ahmedabad-Dholera Investment Region, Gujarat

ii.

Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra

iii.

Manesar-Bawal Investment Region, Haryana

30

viii. Jodhpur-Pali-Marwar Region in Rajasthan

4

CHAPTER

Industrial Corridor

Delhi-Mumbai Industrial Corridor (DMIC) Project Background The Delhi-Mumbai Industrial Corridor is being developed on either side, along the alignment of the 1483 km long Western Dedicated Rail Freight Corridor between Dadri (UP) and Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai. The project seeks to create a strong economic base with a globally competitive environment and stateof-the-art infrastructure to activate local commerce, enhance investments and attain sustainable development. The DMIC project covers the six states namely Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra. DMIC Development Corporation was incorpo¬rated in January 2008 as the project implementation agency and has been restructured with 26% equity of the Govt. of Japan. The Japanese Government has also announced their financial support for DMIC project to an extent of US $ 4.5 billion in the first phase for the projects with Japanese participation involving cutting edge technology. Three transportation projects have been proposed to the Deptt of Economic Affairs for including in the JICA Rolling Plan for DMIC Project. Initially, eight nodes/cities in the six DMIC States have

been taken up for development. To facilitate the funding for the develop¬ment of a world class infrastructure at the Industrial Cities, DMIC Project Implementation Trust was set up on 27th September, 2012. The DMIC Trust has taken investment decisions on nine individual projects and 2 node/city level developments namely Ahmedabad – Dholera Special Investment Region in Gujarat & S h e n d ra - B i d k i n I n d u s t r i a l A re a i n Maharashtra. Progress made during 2014-15 (As on 31st December, 2014): The progress of the DMIC project during the year 2014-15 is given below: a)

DMIC Project implementation Trust Fund: During 2014-15, the Trust has met twice till 31st December, 2014. DMIC Project Implementation Trust Fund has approved the following projects in its earlier meetings i) Integrated Industrial Township ‘Vikram Udyogpuri’ Ujjain, Madhya Pradesh; ii) Integrated Industrial Township at Greater Noida, U.P; iii) Improvement of Water Supply System to Pithampur Industrial Area and Phase-1 of Pithampur-

31

ANNUAL REPORT 2014-15

Dhar-Mhow investment Region, Madhya Pradesh;

phase for the projects with Japanese participation involving cutting edge technology through a mix of JICA and JBIC lending. A proposal for utilization of Japanese assistance under Japan International Cooperation Agency (JICA) through Special Terms for Economic Partnership (STEP) Loan for DMIC Project was approved by CCEA at its meeting held on 20th January, 2014.

iv) Construction of New Rail Line from Bhimnath to Dholera Special Investment Region in Gujarat; v) Model Solar Power Project at Neemrana, Rajasthan; vi) Seawater Desalination Project at Dahej. Gujarat;

The following three transportation projects have been proposed to the Department of Economic Affairs for inclusion in the JICA Rolling Plan for DMIC project:

vii) Logistics Data Bank Project; viii)Multi Modal Logistics Hub at Greater Noida near Dadri; ('inprinciple' approval); ix) Integrated Multimodal Logistics Hub, Rewari, Haryana; ('inprinciple' approval). x) Development of Activation Area (22.5 Sq. km.) in Ahmedabad – Dholera Special Investment Region;



Rail based connectivity between Ahmedabad and Dholera in Dholera Special Investment Region, Gujarat;



Regional Mass Rapid Transit System (MRTS) between Delhi Manesar-Bawal- Neemrana with feeder service to enhance connectivity between Delhi and upcoming manufacturing hubs (for entire sub¬-urban system);



Transport Connectivity in DadriNoida-Ghaziabad Investment Region (DNGIR).

xi) Development of Phase – 1 (40 Sq. km.) in Shendra-Bidkin Industrial Area. During 2014-15, an amount of Rs. 643.00 crore was allocated during Budget Estimates 2014-15 for DMIC project implementation and development excluding Rs. 50.00 crore for Exhibition cum Convention Centre Project in Dwarka, New Delhi. b)

32

Japanese Contribution:The Japanese Government is committed to extend its financial support for DMIC project to an extent of US $ 4.5 billion in the first

c)

Equity Structure of DMICDC: On the basis of the revised equity structure for DMICDC approved by its Board in the meeting held on 28th March, 2013, the allotment of shares was approved in the meeting held on 30th April, 2013. The

Industrial Corridor

revised equity structure of the company is as follows:

d)



President of India (through S e c r e t a r y, D e p a r t m e n t o f Industrial Policy and Promotion including its nominees): 49%;



Japan Bank for International Cooperation (JBIC): 26%;



Housing and Urban Development Corporation (HUDCO): 19.9%;



India Infrastructure Finance Company Limited (IIFCI.) including its nominees: 4.1%;



Life Insurance Corporation of India (LIC): 1%

Indo-Japan Task Force Meeting: The 13th meeting of the Indo Japan Task Force on DMIC was held on 20th August, 2014, in New Delhi, with Secretary, Department of Industrial Policy and Promotion (DIPP), Ministry ofCommerce and Industry (MoCI) of India and Vice Minister for InternationalAffairs, Ministry of Economy, Trade and Industry (METI) of Japan as co-chairs. Both sides expressed the intention of accelerating the development and implementation of the projects to be facilitated by Japan's USD 4.5 billion facility and stressed upon the need for early implementation of Seawater Desalination Project at Gujarat and Model Solar project at Neemrana, Rajasthan.

e)

Exhibition cum Convention Centre and Air - Cargo Complex at Dwarka: DMICDC has completed the preparation of the master plan for the proposed Exhibition - cum Convention Centre (ECC) and AirCargo Complex (ACC) in the 154 hectare site identified for development. The collection of primary baseline data pertaining to environmental monitoring, site analysis and site surveys has been completed. A proposal for transfer of land at Sector 25 and Sector 26 in Dwarka, New Delhi, to DIPP for the development of a world class state-ofthe-art Exhibition cum Convention Centre (ECC) and Integrated Freight Complex (Air Cargo Complex) is under consideration. The implementation of the project will be initiated once the transfer of land from Delhi Development Authority to Department of Industrial Policy and Promotion (DIPP) along with the required land use permission is completed.

f)

Dadri-Noida Ghaziabad Investment Region (DNGIR), Uttar Pradesh: The final Concept Master Plan for the DadriNoida-Ghaziabad Investment Region has been submitted by DMICDC to the State Government of Uttar Pradesh after incorporation of comments on the draft Concept Master Plan for review and approval. The State Government of Uttar Pradesh has agreed to the following projects and has confirmed

33

ANNUAL REPORT 2014-15

Concept Master Plan of ManesarBawal Investment Region and the process of notifying the development plan and finalizing the institutional structure for Manesar-Bawal Investment Region has been initiated The major projects identified for development in the region include:

that the process of land acquisition has been initiated for these projects: •

Multi Modal Logistics Hub, Dadri;



High Speed Seamless Connectivity between Delhi-Greater Noida and Faridabad;



Integrated Transportation Hub Project at Boraki.

DMIC Project Implementation Trust Fund has accorded approval for investing in the development of the Integrated Industrial Township at Greater Noida as also 'in-principle' approval for development of the Multi Modal Logistic Hub at Dadri and the same are being taken forward. CCEA, in its meeting held on 20th January, 2014 accorded investment approval for Integrated Industrial Township Project at Greater Noida. The Share Holders' Agreement has been executed between DMIC Trust and Greater Noida Industrial Development Authority (GNIDA) and the SPV for Integrated Industrial Township Project, Greater Noida has been incorporated. Equity of DMIC Trust has been released to the SPV and land for the project has been transferred by GNIDA. Preliminary Engineering & Design is currently under finalisation. g)

34

Manesar - Bawal Investment Region (MBIR), Haryana: The State G ove r n m e n t h a s a c c o rd e d i t s administrative approval to the



Mass Rapid Transit System (MRTS) between Gurgaon and Bawal;



Integrated Multimodal Logistics Hub (IMLH)at Rewari;



Global City at Gurgaon;

DMIC Project Implementation Trust Fund has given "in-principle' approval for development of the Integrated Multimodal Logistics Hub (IMLH) at Rewari. The State Government has been requested to expedite the process of land acquisition along with formation of SPV for the project. Consultant has been appointed for preparation of Master Plan & Feasibility Study for Global City Project and the Inception Report has already been submitted. Consultant is currently working on subsequent deliverables. Environmental Clearance has been obtained from Ministry of Environment, Forest & Climate Change (MoEF&CC) for Manesar Bawal Investment Region. h)

Khushkhera - Bhiwadi - Neemrana I nve s t m e n t Re g i o n ( K B N I R ) ,

Industrial Corridor

Rajasthan: The Concept Master Plan for the Shahjahanpur - Neemrana Behror Urban Complex 2041 which also includes the master plan of the Khushkhera-Bhiwadi-Neemrana Investment Region has been notified by the State Government. The State Government has also initiated the procurement of land for Phase-IA of Khushkhera-Bhiwadi-Neemrana Investment Region. The Early Bird Projects identified for development in the Khushkhera-Bhiwadi-Neemrana Investment Region are: •

Road Link Connecting Bhiwadi Tapokara Industrial Complex via Ajarka to Neemrana;



Development of Aerotropolis;



Development of the Knowledge City.

Apart from the Early Bird Projects mentioned above the State Government has also approved the following five projects for conducting the pre-feasibility studies: •

Waste Water Conveyance System from DJB (Okhla Treatment Plant);



Integrated Multimodal Passenger Hub;



High Tech Agriculture/ Food Cluster;



Water Management for Phase-1;



P u b l i c Tra n s p o r t a t i o n fo r Khushkhera-Bhiwadi-Neemrana Investment Region.

Environment Clearance has been obtained from Ministry of Environment, Forest and Climate Change (MoEF & CC) for Khushkhera-Bhiwadi-Neemrana Investment Region (KBNIR) RFQ-cum-RFP for appointment of Programme Manager for New Cities (PMNC) has been issued for KBNIR. i)

Jodhpur- Pali - Marwar Industrial Area ( JPMIA), Rajasthan: The Concept Master Plan for Jodhpur- Pali Marwar Industrial Area has been approved by the State Government. The major projects identified for development in the Jodhpur- Pali Marwar Industrial Area include: •

Development of Airport near Jodhpur;



Development of Sojat- Pali bypass road;



Development of Multi Modal Logistic Hub near Rohat;



Water supply and Waste Water Management in Jodhpur Pali Marwar Industrial Area;



Development of MRTS between Jodhpur and Pali.

The State Government, in the State Steering Committee meeting held on

35

ANNUAL REPORT 2014-15

25th July, 2013 approved the Rajiv Gandhi lift canal as the source for potable water for JPMIA. j)

Pithampur- Dhar - Mhow Investment Region, Madhya Pradesh: The Concept Master Plan for PithampurDhar- Mhow Investment Region has been approved by the State Government. The State Government is in the process of undertaking the notification of the Development Plan for Pithampur- Dhar- Mhow Investment Region. The major projects i d e n t i f i e d fo r d eve l o p m e n t i n Pithampur- Dhar Mhow- Investment Region include: •

D e ve l o p m e n t o f I n t e g ra t e d Industrial Township 'Vikram Udyogpuri' near Ujjain;



Improvement of Water Supply Project for Pithampur Industrial Area and Phase-1 of PithampurDhar-Mhow Investment Region;



D e ve l o p m e n t o f I n t e g ra t e d Multimodal Logistics Hub near Pithampur;



Development of Economic Corridor from Indore Airport to Pithampur Industrial Area.

Water Supply Project: Shareholders Agreement (SHA) for the project has been executed between DMIC Trust and the State Nodal Agencies and the project SPV with the name of "Pithampur Jal Prabandhan Company

36

Limited" has been incorporated. The first tranche of the equity of DMIC Trust and the State Government has been released to the project SPV. The tender document for appointment of consultant for DPR review, bid process management and construction supervision for executing the project has been approved by the SPV and the same will be issued shortly. Vikram Udyogpuri Project: CCEA, in its meeting held on 20th January, 2014, approved the investment for Integrated I n d u s t r i a l To w n s h i p ‘ V i k r a m Udyogpuri’ Project near Ujjain, Madhya Pradesh. Shareholder' Agreement (SHA) for the project has been executed between DMIC Trust and the State Nodal Agencies. Accordingly, Project SPV has been restructured and renamed to Vikram Udyogpuri Ltd. Detailed project report for the project has been completed and the SPV has approved the tender documents for selection of contracting company for implementation of phase-1 of the trunk infrastructure. Tender document for appointment of Project Management Consultant to oversee the construction of trunk infrastructure has been approved by the SPV and same shall be issued shortly. k)

Ahmedabad - Dholera Special Investment Region (DSIR), Gujarat: The Concept Master Plan for Dholera

Industrial Corridor

Special Investment Region has been approved by the State Government. Subsequently, the State Government notified the Development Plan for Dholera Special Investment Region under six Town Planning (TP) Schemes. The Programme Manager for New Cities (PMNC) has been appointed for Dholera Special investment Region and preliminary engineering for Town Planning Schemes, TP-2 East and West is under finalisation. The DMIC Project Implementation Trust Fund has accorded approval for investment in the development of railway line from Bhimnath to Dholera and the preparation of DPR and the formation of SPV is being taken forward. To kick start the development, an Activation Area of 22 sq km has been identified which would act as a catalyst for further investments. Matters relating to allocation of funds were discussed by the DMIC Trust in its meeting held on 25th June, 2014. It was decided that the node/city level SPVs may be formed with an initial equity contribution of Rs. 250 crores by the DMIC Trust. Model RFQ cum RFP document and the contract document for appointment of EPC contractor has been circulated to the Board of Trustees for perusal and approval.

RFQ for the Empanelment of the Contractors for design and construction of Roads and Services in TP2 East on EPC basis has been issued. l)

Shendra - Bidkin Industrial Area (SBIA) and Dighi Port Industrial Area (DPIA), Maharashtra: The Concept Master Plans for ShendraBidkin Industrial Park and Dighi Port Industrial Area have been completed. Site surveys for Shendra-Bidkin Industrial Park and Dighi Port Industrial Areaare undertaken. The major project identified for development in the Shendra-Bidkin Industrial Park is the Central Business District (CBD) of 50 acres and trunk infrastructure for the Phase-1 of Shendra-Bidkin Industrial Park. Programme Managers for Phase I ( 40 sq. km) of Shendra-Bidkin Industrial Area have been appointed . The Shareholders' Agreement (SHA) and State Support Agreement (SSA) for incorporation of the SPV between DMIC Trust and the State Government of Maharashtra have been executed. Node/ city level SPV by the name ‘Aurangabad Industrial Township Limited’ has been incorporated with an initial authorized capital of Rs. 1 crore. To kick start the development in Shendra Bidkin Industrial Area (SBIA), the Phase I of SBIA, comprising of 40.42 sqkm has been identified. Matter relating to allocation of funds was

37

ANNUAL REPORT 2014-15

discussed by DMIC Trust in its meeting held on 25th June, 2014. It was decided in the meeting that the node/city level SPVs may be formed for the above node-level project with an initial equity contribution of Rs.250 crores by the DMIC Trust. The remaining part of Trust’s equity will be released in tranches based on the expenditure phasing of funds released earlier. m) Power Projects in DMIC: Five gas based power projects with capacity of 1000-1200 MW each have been taken up by DMICDC at the following sites for meeting the requirement for power in the DMIC region. i) ii)

Chainpura industrial Area, Distt. Guna, Madhya Pradesh;

For Rajpur-Shahpur, site survey studies have been completed, NOC has been received from AAI for Power plant chimney height and Terms of Reference for Environmental Clearance has been obtained from MoEF. Early Impact Assessment studies would be initiated after getting confirmation about the allocation of gas for other projects. Project specific SPVs have been established and land is being taken from State Government/Industrial Development Corporations in the following SPVs. •

Chainpura industrial Area in Guna Dist., MP-89.874 ha allotted by IIDC, Gwalior;



MIDC Indapur industrial Area, Pune Dist,, MH - 79.77 ha of land allotted by MIDC;



MIDC Ville Bhagad Industrial Area, Raigad Dist., MH- 64.3 ha of land allotted by MIDC;



Vaghel village, Dist. Patan, Gujarat, - 131.97 Ha of land has been allocated by Gujarat Government for this project.

MIDC Indapur in Distt. Pune in Maharashtra;

iii) MIDC Ville Bhagad, Distt. Raigad in Maharashtra; iv) Vaghel, Distt. Patan, Gujarat; v)

Rajpur-Shahpur, Gujarat.

Distt.

Mehsana,

For the first 4 sites, Detailed Project Reports have been prepared, No Objection Certificates has been obtained from Airports Authority of India (AAI) for Power Plant chimney height, water allocation has been tied up with State Governments and Environmental Clearance from the Ministry of Environment and Forest (MoEF) has been obtained.

38

For gas sourcing and supply, term-sheet and Memorandum of Cooperation for gas supply has been signed with M/s GAIL and the discussions on draft gas supply agreement have been initiated. Proposals for allocation of domestic gas for all sites have been submitted before

Industrial Corridor

the Ministry of Power and Ministry of Petroleum & Natural Gas. n)

Khushkhera Bhiwadi Neemrana Investment Region in Rajasthan, Manesar Bawal Investment Region in Haryana and Ahmedabad Dholera Special Investment Region in Gujarat were considered for consideration of Environmental Clearance (EC) in the 136th Expert Appraisal Committee meeting of MoEF held on 30th July 2014. The Committee recommended all the three proposals of DMICDC for Environmental Clearance and MoEF has issued formal approval letters on all the three proposals in this regard.

Information and Communication Technology (ICT) Master Plans: In addition to the physical master plans, DMICDC is preparing ICT Master Plans for integrating all the utilities and controlling them through a central c o n t ro l / c o m m a n d c e n t e r. T h e objective is to dovetail the geographical plans with the digital plans and to use the technology to leap frog. The Final ICT reports for the Dighi Port Industrial Area in Maharashtra, Ahmedabad Dholera Special Investment Region in Gujarat , Shendra – Bidkin Industrial Park in Maharashtra and KBNIR in Rajasthan have been submitted by the consultant and accepted by the State Government.

The proposals for two nodes viz. Dighi Port Industrial Area in Maharashtra and Pithampur-Dhar-Mhow Investment region in Madhya Pradesh were considered for extension of ToR in the 136th Expert Appraisal Committee meeting of MoEF held on 30th July 2014. The Committee has finalized the additional ToRs afresh for carrying out EIA studies.

The final ICT Master Plan for MBIR in Haryana has been submitted by the consultant and the same has been forwarded by DMICDC to State Government for their comments and suggestions. DMICDC is in the process of finalization of RFQ cum RFP document for appointment of ICT Consultant for taking forward the implementation of ICT in the Dholera Special Investment Region. o)

Environmental Clearance for DMIC nodes:Three proposals of DMICDC viz.

The Public hearing for Shendra was conducted on 30th October 2014. Final EIA report is being prepared for onward submission to MoEF. The EIA study for Bidkin Industrial Area is under progress. Projects referred in Joint Statement of Prime Ministers of India and Japan: a)

Desalination Plant of 336 MLD at D a h e j , G u j a ra t : D M I C P ro j e c t Implementation Trust Fund has

39

ANNUAL REPORT 2014-15

accorded 'in principle' approval to take 15% equity at par. The States Government has issued a letter of comfort to the Japanese consortium on 22nd January, 2014 for Desalination Project at Dahej. Water Purchase Agreement deeds has been executed. State Government has been requested to resolve issues relating to the end user agreement and revision in tariff at the earliest. Equity Structure is being d e l i b e ra t e d b e t we e n J a p a n e s e consortium, JBIC and DMICDC. b)

c)

40

Directors of DMICDC in its meeting held on 24th February 2014 approved the incorporation of 100% SPV of DMICDC for the project. Accordingly, a company with the name of "DMICDC Neemrana Solar Power Limited" has been incorporated and DMIC Trust has released its share of equity to the project SPV. EPC contractor has been appointed for implementation of 6.00 MW Model Solar Power Project at Neemrana Industrial Area on turnkey basis and comprehensive operation & maintenance for a period of 10 Years. The work on the site has been initiated.The first batch of Solar Panels has reached the project site and second batch has been shipped from Japan.

G a s f i re d I n d e p e n d e n t Powe r Producer (IPP) in Maharashtra: All project development activities such as site related studies, Detailed Project Report, securing land for the project site as well as obtaining water allocation for the power project in the State of Maharashtra has been c o m p l e te d . T h e e nv i ro n m e n t a l clearance for the project has also been obtained from Ministry of Environment and Forests. Efforts are being made to ensure adequate availability of gas at reasonable prices to make the project financially viable. 6MW Model Solar Plant with Smart Micro Grid in Neemrana, Rajasthan: The Cabinet Committee for Economic Affairs in its meeting held on 20th January, 2014, approved the proposal of DIPP for implementation and operation of Model Solar Project at Neemrana, Rajasthan through a 100% subsidiary of DMICDC. The Board of

Other Smart Community Projects in DMIC Region: DMICDC in partnership with the Government of Japan has initiated the development of Smart Communities or Eco Cities for demonstrating cutting edge technologies and promoting the sustainable development in the DMIC region. METI, Government of Japan, had initiated smart community prefeasibility studies in the brown field areas of DMIC region. Significant developments have been made in various projects which are undertaken in this Smart Initiative: a)

Manesar Bawal Region, Haryana: Logistics Data Bank Project has been

Industrial Corridor

identified by the consortium of NEC in which various manufacturing and large logistics players have been taken on b o a rd by N E C t o f i n a l i z e t h e implementation strategies for this project. TAMP vide its Order dated 3rd N ove m b e r, 2 0 1 4 h a s i s s u e d a notification for the amendment of the Scale of Rates for levy of Mandatory User Charge (MUC) for the Project. NEC Team is being pursued to submit the draft Shareholders’ Agreement (SHA) for the project so that the process of formation of SPV can be taken forward. b)

Sanand- Changodar Region, Gujarat: Mitsubishi consortium is working on this project. In a meeting held on 27th Feb 2013 with CEO-DMICDC, the consortium has already shared their preliminary findings on the following projects:

(a) Coal Gasification Project; (b) Urban Mass-Transportation Project; (c) Lithium Battery Life Time cycle Business; ' (d) Waste to Energy Project. Other projects undertaken by DMICDC:a)

Water availability at the nodes: A committee exists under the Chairmanship of Secretary, Ministry of Water Resources (MoWR), Government of India to address the issue of water availability at DMIC nodes. Based on the decisions of the meeting, DMICDC has appointed a consultant

for preparation of integrated Water Resource Management Plan for Manesar - Bawal Investment Region and Khushkhera - Bhiwadi – Neemrana Investment Region. The Integrated Water Resource Management Plans are being prepared b)

Skill Development Initiative: For ensuring the availability of skilled manpower for meeting the requirements of the DMIC region, DMICDC has initiated the development, process for establishment of Advanced Skill Development Centers (SDC) on a Hub and Spoke model across the six states covered by DMIC. The Transaction Advisor and Technical Service Provider has already been appointed by DMICDC in this regard. The same is being taken forward.

Bengaluru-Mumbai Economic corridor (BMEC) During the Summit meeting held between India and United Kingdom in February, 2013, Prime Ministers of both the countries welcomed the development in cooperation on infrastructure since the last summit. They noted UK’s interest in cooperating with India for the development of a new BengaluruMumbai Economic Corridor (BMEC). The leaders agreed to examine and evolve the modalities and content of a feasibility study of this project concept through mutual discussions and to work out a roadmap for a possible partnership in this area. The TORs for the feasibility study were

41

ANNUAL REPORT 2014-15

finalized in consultation with the Department of Economic Affairs, the UK side and Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) which has been appointed as the nodal agency on the Indian side for the project. UK Trade and Investment (UKTI) is the nodal agency on the UK side for the project. The nodal officer on the Indian side is Joint Secretary, DIPP while the nodal officer on the UK side is Director, UKTI. A RFQ-cum-RFP for selection of a consultant for conducting the study was floated by DMICDC in November, 2013 and a letter of award was issued to M/s Egis India Consulting Engineers Pvt. Ltd. in JV with IAU ile-de-France & CRISIL Risk & Infrastructure Solutions Limited on 14th February, 2014. The contract between DMICDC and the consultants has been executed on 8th March, 2014. The consultant has since prepared and submitted the Draft Perspective Plan Report of BMEC region. Final report on the Perspective Planning of BMEC region is expected to be completed by 31st March, 2015. Amritsar-Kolkata Industrial corridor (AKIC) In order to give a boost to industrial development in the densely populated States of Northern and Eastern India, Amritsar-Kolkata Industrial Corridor (AKIC), an ambitious project at developing an Industrial Zone spanning across the seven states of Punjab, Haryana, Uttar Pradesh, Uttarkhand, Bihar, Jharkhand and West Bengalseven states in India was created. AKIC will be structured around

42

the Eastern Dedicated Freight Corridor (EDFC) as the backbone and also the highwayHighway system that exists on this route. The AKIC will also leverage the Inland Water System being developed along National Waterway-1 which extends from Allahabad to Haldia. These cover the seven states are namely Punjab, Haryana, Uttar Pradesh, Uttarkhand, Bihar, Jharkhand and West Bengal. The work has since been entrusted to DMICDC as nodal agency for undertaking feasibility study. Chennai-Bengaluru Industrial corridor (CBIC) During the Summit Meeting held between India and Japan in December 2011, the Prime Ministers of both countries decided to strengthen efforts to improve infrastructure in Chennai Bengaluru area and directed to operationalise the modalities for preparation of the Comprehensive Integrated Master Plan for development of Chennai Bangalore Industrial Corridor (CBIC). The corridor between ChennaiBengluru-Chitradurga (around 560 km) would have an Influence Area spread across the states of Karnataka, Andhra Pradesh and Tamil Nadu. Japan International Cooperation Agency (JICA) has identified a total of 25 priority projects across various sectors in the CBIC region for debottlenecking infrastructure in the region. The perspective planning of CBIC has been completed. The Master Planning for three nodes namely Tumkur ( Karnataka), Ponneri ( Tamil Nadu) and Krishnapatnam ( Andhra Pradesh) has been initiated under JICA assistance.

Industrial Corridor

Vishakhapatnam-Chennai Industrial Corridor (VCIC) Vishakhapatnam-Chennai Industrial Corridor (VCIC) on commissioning is expected to give a fillip to the economic prospects of the Seemandhra region of the country. The prestigious project is expected to create a large number of jobs, both directly and indirectly, in the first phase alone. The project will provide new investment opportunities and will redefine the economic landscape of the region. Asian Development Bank (ADB) which is the consultant of VCIC has submitted a final report on Conceptual Development Plan (CDP) of VCIC. Out of four nodes namely Visakhapatnam, Kakinada, Gannavaram & Kankipadu and Srikalahasti-Yerpedu of Andhra Pradesh identified by ADB in their CDP-VCIC region, ADB initiated master planning of two nodes namely Visakhapatnam and Srikalahasti-Yerpedu of Andhra Pradesh. The Regional Perspective Planning of complete VCIC region has also been initiated by the ADB. National Industrial Corridor Development Authority (NICDA) The Union Finance Minister, in his Budget speech announced that “a National

Industrial Corridor Authority, with its headquarters in Pune, is being set up to coordinate the development of the industrial corridors, with smart cities linked to transport connectivity, which will be cornerstone of the strategy to drive India’s growth in manufacturing and urbanization”. The National Industrial Corridor Development Authority (NICDA) is envisaged to be a multi-disciplinary professional organization, with high quality technical, financial and management expertise, which will channelize central as well as institutional funds while ensuring that the various corridors are properly developed, planned and implemented keeping in view the broad national perspectives regarding industrial and city development. NICDA will carry out project development activities, appraise and sanction projects, implement, and monitor and coordinate all efforts for the development of industrial/ economic corridors Accordingly, Industrial Corridor division in the Department of Industrial Policy and P ro m o t i o n ( D I P P ) p re p a re d D ra f t Memorandum for Expenditure Finance Committee. The EFC meeting was held on 11.02.2015.

43

5

CHAPTER

Improvement of Business Environment eBiz Project

Various measures are undertaken for improving the ease of doing business in the country through simplification and rationalization of the existing rules and introduction of information technology to make governance more efficient and effective. eBiz project is one such initiative. The vision of eBiz is to transform the business environment in the country by providing efficient, convenient, transparent and integrated electronic services to investors, industries and businesses in the areas of information on forms & procedures, licenses, permits, registrations, approvals, clearances, permissions, reporting, filing, payments and compliances throughout the life-cycle of an industry or business entity. The core theme of eBiz lies in radical shift by

44

Government in its service approach, from being department-centric to customercentric, in providing services to the business community. The following are the Outcomes of the eBiz Project •

A world-class G2B portal that enhances India’s business competitiveness through a single, s e r v i c e - o r i e n t e d , e ve n t - d r ive n interface for all G2B interactions.



Integrated G2B Services across Central, State & Local Government & across all geographies in India.

The above outcomes result in the following benefits to the investor.

Improvement of Business Environment eBiz Project

Inauguration of G2B Portal by Finance Minister .Starting a new business or setting up a new industrial unit requires multiple licenses /clearances and related services from multiple Government agencies across various levels of government . The information about these services is fragmented in multiple acts, rules and procedures and scattered across multiple websites. The mission of eBiz is to provide investors easy access to relevant information and services through a number of key features such as License and Permits Information Wizard, Composite Application Forms and Service Orchestration. License and Permits Information Wizard eBiz License And Permits Information

wizard is a consolidated repository of all relevant Licenses, Permits and other Regulatory information along with their applicability criteria. The eBiz portal includes an ‘interview-style’ Wizard which poses to the investors a series of questions to assess the licensing needs of their business. Based on the answers provided, the wizard provides a customized list of Licenses/ Clearances that the investor needs to begin their business operation and a list of regulatory compliance they need to comply with as part of operating their business. Presently, an 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

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ANNUAL REPORT 2014-15

Composite Application Form 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.

Joined Up Service Orchestration eBiz Joined Up Service combines the backend workflow of multiple government departments in such a manner that a single request from the investor through the Composite Applicable Form is routed through multiple Government agencies in a logical sequence. This includes parallel and sequential orchestration based on interdependencies between the services being requested by the investor.

46

The eBiz project was conceptualized with support from National Institute of Smart Government (NISG) as the consulting partner and developed by M/s. Infosys Ltd., Bangalore in a Public Private Partnership (PPP) Model for a period of 10 years. The first three years constitute the pilot phase, and will earmark setting up of the eBiz portal and provisioning of 50 services covering 9 central government departments and 5 s t a t e s ( A n d h ra P ra d e s h , H a r ya n a , Maharashtra, Tamil Nadu, and Delhi). In addition, 5 more states (Odisha, Rajasthan, Punjab, Uttar Pradesh and West Bengal) have been included during the pilot phase. The next seven years called expansion phase, the portal will be run on PPP basis through a business model approved for the project. In this phase, the project will be expanded to cover the whole country and to provide over 200 G2B services and other value added services by suitable private vendors. During the period under report, considerable progress has been made in the implementation of the project. The eBiz platform with License & Permit Wizard, payment gateway with Central Bank of India, Bank of Baroda, Bank of India, Canara Bank

Improvement of Business Environment eBiz Project

and Punjab National Bank and ePAO solution for centralized booking and reconciliation of all Central Government receipts & payments along with fourteen Central Government services have been launched besides 12 services of Andhra Pradesh government. List of these 31 services are given in table. The portal can be accessed through www.ebiz.gov.in During the year, it is planned to integrate

additional 6 Central Government related services and roll-out the state services in the remaining pilot states. One joined-up service w i t h C o m p o s i t e A p p l i c a t i o n Fo r m comprising of ‘Certificate of Incorporation’ service of Ministry of Corporate Affairs and ‘Issuance of Permanent Account Number’ and ‘Issuance of Tax Identification Number’ services of Central Board of Direct Taxes is also planned.

Table : List of 31 services List of Central Services S.No.

Name of the Department

Name of the Service

1.

Department of Industrial Policy and Promotion (DIPP)

Industrial License

2.

Department of Industrial Policy and Promotion

Industrial Entrepreneur Memorandum

3.

Employees’ State Insurance Corporation (ESIC)

Employer Registration

4.

Ministry of Corporate Affairs (MCA)

Name Availability

5.

Ministry of Corporate Affairs (MCA)

Director Identification Number(DIN)

6.

Ministry of Corporate Affairs (MCA)

Certificate of Incorporation

Ministry of Corporate Affairs (MCA)

Certificate for Commencement of Business

8.

Reserve Bank of India (RBI)

Advance Foreign Remittance

9.

Reserve Bank of India (RBI)

Foreign Collaboration- Transfer of Shares

Reserve Bank of India (RBI)

Foreign Collaboration- General Permission Route

11.

Central Board of Direct Taxes (CBDT)

Tax Deduction Account Number

12.

Central Board of Direct Taxes (CBDT)

Permanent Account Number

13.

Director General of Foreign Trade (DGFT)

Importer Exporter Code

14.

Employee Provident Fund Organization (EPFO)

Employer Registration

15.

Petroleum and Explosives Safety Organization (PESO)

Issue of Explosive License

7.

10.

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ANNUAL REPORT 2014-15

List of Andhra Pradesh Services S.No.

Service name

Department Name

1.

Department of Town & Country Planning

Permission from TCP for Site and Building

2.

Ground Water Department

Permission to draw Ground Water

3.

Department of Factories

Approvals of plans from Factories Department

4.

Department of Factories

Factories License

5.

Fire Department

NOC from Fire Services Department

6.

Department of Industries

Industrial Incentives(Power)

7.

Department of Industries

Industrial Incentives (VAT)

8.

Department of Industries

Allotment of Scarce raw materials

9.

Department of Industries

MSME Registration

10.

Department of Industries

NOC Acknowledgement from GM, DIC for MSME

11.

Department of Factories

Annual Filing under Factories Act

12.

Drug Control Administration

License for manufacturing Bulk Drugs and Formulations

13.

Commercial Taxes Department

VAT Registration

14.

Commercial Taxes Department

VAT Filing

15.

Commercial Taxes Department

CST Registration

16.

Commercial Taxes Department

CST return Filing

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6

CHAPTER

Make in India

The Make in India programe was lanuched by Prime Minister in September 2014 as part of a wider set of nation-building initiatives. Devised to transform India into a global design and Manufactuing hub. Make in India was a timely response to a critical situation. The Manufactluring sector in India had witnessed a downward frend with growth rates of 1.1% and -0-7% during 2012-13 and 2013-14 respectively. This global initiative was launched on 25th September, 2014 to invite both domestic and foreign investors to invest in India. The initiative was simultaneously launched in the Capital of all states and in several Indian Embassies and High Commissions where time-zones permitted. A few other Indian Embassies have also organized "Make in India" interactions after the launch.

world class infrastructure with stateof-the-art technology and high-speed communication. Innovation and research activities are supported through fast paced registration system improved infrastructure for IPR registration. The requirement of skills for industry are to be identified and accordingly development of workforce to be taken up. (iii) New Sectors : FDI has been opened up in Defence Production, Insurance, Medical Devices, Construction and Railway infrastructure in a big way. Similarly FDI has been allowed in Insurance and Medical Devices. (iv)

New Mindset : In order to partner with industry in economic development of the country Government shall act as a facilitator and not a regulator.

The 'Make in India" initiative is based on four pillars, which have been identified to give boost to entrepreneurship in India, in not only the manufacturing but also other sectors. The four pillars are:

Certain important steps taken to boost manufacturing include:

(i)

1.

Creation of Investor Facilitation Cell in 'Invest India' to assist, guide and handhold investors during the various phases of business life cycle.

2.

Information on 25 sectors has been put up on 'Make in India's web portal (http://www.makeinindia.com) along with details of FDI Policy, National Manufacturing Policy, Intellectual Property Rights and Delhi Mumbai

(ii)

New Processes : 'Make in India' recognizes 'ease of doing business' as the single most important factor to promote entrepreneurship. A number of initiatives have already been u n d e r t a ke n t o e a s e b u s i n e s s environment. New Infrastructure: Government intends to develop industrial corridors and smart cities, create

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ANNUAL REPORT 2014-15

Industrial Corridor and other National Industrial Corridors. 3.

Ordinance has been issued to make land acquisition simplar for important projects.

4.

A number of items have been taken off the licensing requirements from the Defence products' list. Items of dual use have also been taken off the licensing requirement.

5.

The Ministry of Labour and Employment has developed a unified Web Portal Shram Suvidha'. This portal facilitates: a

Allotment of Unique Labour Identification Number (UN) to units;

b.

Filing of single self-certified online return for 16 labour laws;

c.

Random computerized inspections based on objective criteria;

d.

Uploading of insp

Partnerships: The Make in India program has been built on layers of collaborative effort. DIPP initiated this process by inviting participation from Union Ministers, Secretaries to the Government of India, state governments, industry leaders, and various knowledge partners. Next, a National Workshop on sector specific industries in December 2014 brought Secretaries to the Government of India and industry leaders together to debate and formulate an action plan for the next three years, aimed at raising the contribution of the manufacturing sector to 25% of the GDP by 2020. This plan was presented to the Prime Minister, Union

50

Ministers, industry associations and industry leaders by the Secretaries to the Union Government and the Chief Secretary, Maharashtra on behalf of state governments. These exercises resulted in a road map for the single largest manufacturing initiative undertaken by a nation in recent history. They also demonstrated the transformational power of public-private partnership, and have become a hallmark of t h e M a ke i n I n d i a p ro g ra m . T h i s collaborative model has also been successfully extended to include India’s global partners, as evidenced by the recent in-depth interactions between India and the United States of America. Highlights Ÿ Entry and exit regulations have been

eased out, exim regulations made infinitely easier, six PSUs brought out sickness and five PSUs closed down. Ÿ The process of applying for an

Industrial License (IL) and an Industrial Enterpreneur Memorandum (IEM) has been taken online. The site, eBiz bis available 24x7 making it easier to file applications and making online payments of service tax. Ÿ The initial validity period of an

Industrial License has been increased from 2 to 3 years, giving licensees enough time to procure land and obtain the necessary clearances. MHA has also stipulated that it will grant security clearances on industrial license applications within 12 weeks. Ÿ With respect to Employees Provident

Fund Organization (EPFO) and

Make in India

Employees State Insurance Corporation (ESIC), the amount of time taken to register was a hindrance. Now both the processes have been

automated and ESIC registration number is now being provided an a real time basis.

AUTOMOBILES

AUTO COMPONENTS

> Largest tractor manufacturer; 2nd largest two wheeler manufacturer; 2nd largest bus manufacturer; 5th largest heavy truck manufacturer; 6th largest car manufacturer; 8th largest commercial vehicle manufacturer

> Over 35 IPOs of Global OEMs & Tier 1 procuring from India

> India’s car market potential: 6+ Millions units annually by 2020

> 4th largest producer of steel with competitive advantage over neighbors > Close proximity to key markets - ASEAN, Japan, Korea & Europe provides for economies of scale

AVIATION

BIOTECHNOLOGY

> 9th largest civil aviation market in the world, about USD 12 billion in value terms

> Amongst top 12 biotech destinations in the world; 3rd in the Asia-Pacific region.

> Potential to become the third-largest aviation market in the world by 2020 and the largest by 2030

> Government expenditure plans: USD 3.7 billion during 2012-17, more emphasis on biotech parks to facilitate product development, research & innovation

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ANNUAL REPORT 2014-15

CHEMICALS

CONSTRUCTION

> 3rd largest in Asia & 6th largest by output in the world > India’s colourant industry: valued at USD 6.8 billion, with exports accounting for nearly 75% > Key growth factors: A large population + dependence on agriculture + strong export demand

> Approx. USD 650 billion required for urban infrastructure over the next 20 years > Investment opportunities: Residential, Commercial, Retail & Hospitality. > Technologies to promote sustainable cities & integrated townships; green building solutions > Foreign investment rules in India’s construction sector have been eased built-up area requirement and minimum capital requirement reduced

DEFENCE MANUFACTURING > FDI update: Up to 49% FDI is now allowed under the government route and beyond 49% with the approval of cabinet committee on security wherever it is likely to result in access to modern and ‘state-ofart’ technology in the country > 53% of the defence items for manufacturing by private sector have been de-licensed and dual use items having military as well as civilian applications deregulated > Portfolio investment and investments by FVCIs together allowed up to 24% under the automatic route

52

ELECTRICAL MACHINERY > Demand drivers: capacity creation in infrastructure, power, mining, oil & gas, refinery, steel, automotive & consumer durables > By 2022, the generation equipment industry in India is projected to grow to USD 25-30 billion

Make in India

ELECTRONIC SYSTEMS > Expected demand to reach USD 400 Billion by 2020, aided by government schemes like the National Knowledge Network (NKN), National Optical Fibre Network (NOFN) > Attractive incentive package scheme providing capital subsidy up to 25% for 10 years

FOOD PROCESSING > A rich agriculture resource base > The establishment of food parks – a unique opportunity for entrepreneurs, including foreign investors > Investment opportunities in: Fruits and Vegetables, Beverages, Dairy, Food additives & nutraceuticals, Meat and Poultry, Fish, seafood and fish processing; Food preservation and packaging, etc

IT AND BPM > The IT-BPM sector constitutes 8.1% of the country’s GDP and contributes significantly to public welfare > 60% of firms use India for testing services > National Policy on Information Technology 2012 aims to increase revenues of IT and BPM industry to USD 300 billion by 2020 and expand exports to USD 200 billion by 2020

LEATHER > Total production value of USD 11 billon with great potential for exports and a huge domestic market > Projected growth of 24% per annum > Mega Leather Clusters (MLCs) subscheme - to create new production centres for the leather industry with all the required infrastructure and support services

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ANNUAL REPORT 2014-15

MEDIA AND ENTERTAINMENT > The industry is expected to register a CAGR of 14.2%, reaching USD 28.43 billion in 2018 > The size of the Indian film industry is expected to reach USD 3.49 billion by 2018, up from 1.9 USD billion in 2013

? MINING > India has vast minerals potential with mining leases granted for longer durations of 20 to 30 years > Projected growth – 7%

OIL AND GAS

PHARMACEUTICALS

> New Exploration Licensing Policy and the Coal Bed Methane Policy to encourage investments across the industry value chain > 48% of the country’s sedimentary area is yet to be explored. The city gas and distribution sector offers opportunities for both incumbents and new companies

> Expected to rank among top 3 pharmaceutical markets in terms of incremental growth by 2020

54

> Expected to be the 3rd largest global market for active pharmaceutical ingredients by 2016, with a 7.2% increase in market share

Make in India

PORTS

RAILWAYS

> Increase in cargo-handling capacity – 800 MMT in 2014 from 575 MMT in 2009 > Increasing trade activities & private participation in port infrastructure development > Sagarmala project planned aimed at port-led development in the coastal states. > Special Economic Zones are being developed in close proximity to several ports – comprising coal-based power plants, steel plants and oil refineries

> 100% FDI under the auto route in the railway infrastructure segment > Priority: Port connectivity > Infrastructure projects: High-speed train projects, railway lines to and from coal mines and ports, dedicated freight corridors

RENEWABLE ENERGY

ROADS AND HIGHWAYS > Extensive road network of 4.86 million kms: 2nd largest in the world > Private sector: Key player in the development of road infrastructure > The Indian government plans to develop a total of 66,117 km of roads under different programmes

> India stands fifth in the world in the overall renewable energy capacity installation with an installed capacity of 33,792MW (end 2014) > India plans to scale up renewable energy to 165 MW, of this solar energy will be 100 GW by 2019-20 > Major policy incentives given by the Government, including accelerated depreciation, generation based incentives; feed in tariff and viability gap funding are expected to add massive investments in the renewable energy sector

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ANNUAL REPORT 2014-15

SPACE

TEXTILES AND GARMENTS

> India is a world leader in low cost space exploration and Indian space program stands out as the most cost effective in the world. The Mars Orbiter Mission cost USD 74 million, a fraction of the cost incurred for similar missions undertaken by other countries > With 30 Indian and 40 foreign satellite launches so far, India has the potential to be the launch service provider of the world. India has launched 40 satellites for 19 countries

> India has the second-largest manufacturing capacity globally > India has the highest loom capacity (including hand looms) with 63% of the world’s market share > India enjoys a comparative advantage in terms of skilled manpower and cost of production over major textile producers > Textiles exports from India projected to be around USD 300 billion by 2025

THERMAL POWER

WELLNESS

> The government is targeting a capacity addition of 88.5 GW during 2012-17 and 86.4 GW during 2017-22

> The sector is growing at 20% from year to year and is projected to amount to INR 162 Billion in 2014

> A growing population is likely to boost demand for energy

> Government of India has set up Ministry of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) with the aim at mainstreaming these ancient health-care systems with targeted thrust

> Investment opportunities: Power generation, transmission and distribution, power trading and power exchanges

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Make in India

TOURISM AND HOSPITALITY > Foreign tourist arrivals to India has risen 7.1% to 7.5 million in 2014 > Factors expected to drive growth of tourism are focused marketing and promotion efforts, liberalization of air transport, the growth of online travel p o r t a l s , g r o w i n g i n t ra - r e g i o n a l cooperation and more effective public private partnerships > More than half of the Ministry of Tourism’s Plan budget is channelized for funding the development of destinations, circuits, mega projects as well as rural tourism infrastructure projects

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ANNUAL REPORT 2014-15

7

CHAPTER

Development Schemes

One of the principal objectives of the Government of India’s Industrial Policy is to promote balanced industrial development throughout the country. For stimulating industrial development of hilly States,the Union Government has been supplementing the efforts of State Governments through various policies/schemes/packages of incentives. Another focus area of the Government of India’s Industrial Policy is to develop quality industrial infrastructure through various schemes for enhancing international competiveness of the domestic industries, especially in the functional clusters/locations which have greater potential to become globally competitive. Some of the policies/schemes/packages of incentives for development of industries that are being currently administered by this Department are given in this Chapter. Transport Subsidy Scheme: The Scheme was introduced in July, 1971 to foster industrialization in the remote, hilly and inaccessible areas by providing for subsidy in the transportation cost incurred by the industrial units so that they could stand competition with other similar industries, which are geographically located in better areas. Applicability It is applicable to all industrial units (barring plantations, refineries and power

58

generating units both in public and private sectors irrespective of their size.) size). Coverage The eight states of the North East, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Andaman & Nicobar Administration, Lakshadweep Administration and Darjeeling District of West Bengal are covered under the scheme. Quantum of Subsidy Subsidy ranging between 50% to 90% of the transport cost for transportation of raw material and finished goods to and fro from the location of the unit and the designated rail-head. For North East States, J&K and UTs, the subsidy is 90%. For H.P., Uttarakhand and Darjeeling district of West Bengal, the subsidy is 75%. However, for movement of goods within NER, the subsidy is 50%. Period of eligibility A unit is eligible for subsidy for a maximum period of five years from the date of commencement of commercial production. Nodal Agency The disbursement of subsidy to the eligible industrial units in the States is made through the nodal agencies appointed for the purpose. These are:

Development Schemes

(i)

North East Development Financial Corporation (NEDFi), Guwahati for the eight states of North Eastern Region;

Funds released under the scheme Under TSS, 1971, since inception, an amount of Rs. 3341.22 crore (approx.) has been released to the States/UTs, including Rs. 220 crore released during FY 2013-14 and Rs. 99.56 crore released during current FY 2014-15 (up to 31.12.2014). Year-wise release under the Scheme has been illustrated through a Bar-Chart given below

(ii) JKDFC for Jammu & Kashmir; (iii) HPSIDC for Himachal Pradesh; (iv) SIDCUL for Uttarakhand. The disbursement of subsidy to the industrial units in the Union Territories is made through the respective UTs Administrations.

Overview of Disbursement under TSS 700 600

619 531

500 405 400

400

331

300 200 100

222.73220 86 90 109

75 97 17

99.56

39

0

0

Rs. In crore Funds released under TSS

Validity of the Scheme :- The Transport Subsidy Scheme ended on 21.01.2013 and w.e.f. 22.01.2013 it has been modified and notified as Freight Subsidy Scheme (FSS) – 2013, with the approval of CCEA. Units which commenced production on or after

22.01.2013 or a unit which has not claimed subsidy under TSS, 1971 before the date of publication of FSS in the official Gazette will be covered under FSS – 2013. The salient features of this Scheme are as follows:

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ANNUAL REPORT 2014-15

(i)

Definition of ‘manufacturing activity’ adopted from the Union Budget 200910;

(ii)

Subsidy on transportation of fly ash disallowed;

(iii)

Sunset clause introduced so for termination of the Scheme after 5 years from the date of its notification;

(iv)

Provision for subsidy for an additional period of 5 years to MSME;

(v)

Plantations, Refineries, Power generating units, Coke (including Calcined Petroleum Coke) industry and the units producing tobacco and manufactured tobacco substitutes, pan masala and plastic carry bags of less than 20 microns have been placed in the negative list.

Major Policy Initiatives during 2014: A number of initiatives have taken by the Department to streamline process of disbursement, as detailed below: i.

Clarification regarding eligibility of raw material purchased by an industrial unit prior to commencement of production for Subsidy under TSS, 1971/FSS, 2013 has been issued.

ii. Nominees of Government of India are being deputed regularly to attend the meetings of the State Level Committee constituted for the purpose of sanction of subsidy. iii. Stakeholders’ meeting is being held at regular intervals.

60

iv. Services of Financial Management Research & Resource Society (FMRRS) are being availed to attend to requests of States for pre-scrutiny of claims under TSS, 1971/FSS, 2013 and schemes under NEIIPP, 2007 in a timebound manner. v.

Timelines for handling subsidy claims under schemes of Transport Subsidy Scheme and Freight Subsidy Scheme are fixed at all levels.

vi. An e-enabled Monitoring Information System (MIS) has been developed in consultation with National Informatics Centre (NIC). vii.

A 2-day training programme was organized to familiarize State Govt. officials with the MIS.

North East Industrial and Investment Promotion Policy (NEIIPP), 2007 With a view to give a further boost to industrialization in the North Eastern Region, the erstwhile North East Industrial Policy (NEIP), 1997 was revised and a new policy, namely North East Industrial & Investment Promotion Policy (NEIIPP) 2007, was notified w.e.f. 1.4.2007 which will remain in force upto 31.03.2017. Benefits under NEIIPP, 2007 have also been extended, for the first time, to select Service Sector units, Bio-technology units and Power Generating units (upto 10 MW), besides industries in the manufacturing sector. This policy replaces the erstwhile NEIP, 1997.

Development Schemes

Applicability To all industrial units (barring the units producing tobacco and manufactured tobacco substitutes, pan masala and plastic carry bags of less than 20 microns, refineries and units engaged in peripheral activities like preservation during storage, cleaning operations, packing, re- packing, labeling or re-labeling, sorting, alteration of retail sale price etc.).

production or becoming operational/ functional on or after 6th January, 2011 subject to a ceiling of Rs.3.00 crore for manufacturing sector and Rs.1.50 crore for service sector. •

Central Interest Subsidy Scheme:The Scheme provides for interest subsidy @ 3% on the working capital loan availed by an eligible unit from scheduled banks or Central/State financial institutions for a maximum period of 10 years from the date of commencement of production.



Central Comprehensive Insurance Scheme: - The Scheme provides for reimbursement of 100% insurance premium for a maximum period of 10 years from the date of commencement of production.

Coverage Entire North East Region comprising States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim. Schemes under NEIIPP, 2007 •

Central Capital Investment Subsidy Scheme, 2007:- The Scheme provides for subsidy @ 30% of the investment in plant and machinery or additional investment in Plant and Machinery by way of substantial expansion to all new units as well as existing units which go in for substantial expansion. In order to grant additional benefits to Micro, Small and Medium Enterprises, this Department has amended provision of CCIS to provide that w.e.f. 6th January, 2011 for the industrial units in the Micro, Small and Medium Enterprises sector, subsidy will be available also on additional investment in plant and machinery in respect of first and every subsequent substantial expansion and on commencing commercial

Nodal Agency North Eastern Development Finance Corporation (NEDFi), Guwahati is the nodal agency for disbursal of subsidies under various subsidy schemes of NEIIPP, 2007. Funds released under the various schemes of NEIIPP, 2007 Under NEIIPP, 2007, since inception, Rs.699.78 crores have been released to the States of NER, out of which an amount of Rs.149.99 crore has been released during FY 2013-14 and Rs. 149.97 crore released during the current FY 2014-15 (up to 31.12.2014). Year-wise and scheme-wise funds released have been depicted through a Bar-Chart given below.

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ANNUAL REPORT 2014-15

Package for Special Category States of Jammu & Kashmir, Himachal Pradesh and Uttarakhand Jammu & Kashmir New Industrial Policy and other concessions for the State of J&K were introduced by DIPP on 14th June, 2002, for a period of ten years. Incentives/concessions provided for industrial development in the state are (i)Central Capital Investment Subsidy Scheme, 2002; (ii) Central Interest Subsidy Scheme, 2002; (iii) the Central C o m p re h e n s ive I n s u ra n c e S c h e m e , 2002. The package of incentives for the State of J&K has been extended upto 14th June 2017. The package provides the following incentives:-

62

Central Capital Investment Subsidy Scheme : All new industrial units and existing industrial units on their substantial expansion, would be eligible for Capital Investment Subsidy @ 15% of the investment of Plant & Machinery, subject to a ceiling of Rs. 30 lakhs. Micro, Small and Medium enterprises would be eligible for Capital Investment Subsidy of 30% of the investment of plant & machinery, subject to ceiling of Rs. 3.00 crore and Rs. 1.50 crore for manufacturing and service sector respectively. Central Interest Subsidy Scheme : An interest subsidy of 3% on the average of daily working capital loan would be provided to all new industrial units for a period of five years from the date of commencement of commercial production.

Development Schemes

Central Capital Investment Subsidy Scheme : All new industrial units and existing industrial units on their substantial expansion, would be eligible for Capital Investment Subsidy @ 15% of the investment of Plant & Machinery, subject to a ceiling of Rs. 30 lakhs. Micro, Small and Medium enterprises would be eligible for Capital Investment Subsidy of 30% of the investment of plant & machinery, subject to ceiling of Rs. 3.00 crore and Rs. 1.50 crore for manufacturing and service sector respectively. Central Interest Subsidy Scheme : An interest subsidy of 3% on the average of daily working capital loan would be provided to all new industrial units for a period of five years from the date of commencement of commercial production. Central Comprehensive Insurance Subsidy Scheme : An Insurance subsidy to the extent of 100% would be admissible during the extended package to all new units and to the existing units on substantial expansion for a period of five years from the date of commencement of commercial production. Implementing Agency Jammu & Kashmir Development Finance Corporation Ltd. (JKDFC) has been notified as Nodal Agency for routing the disbursal of subsidy under the Scheme. Amount released During the financial year 2014-15, an amount of Rs.28.00 crore has been released

to the Nodal Agency i.e. Jammu & Kashmir Development Finance Corporation (JKDFC), under the package upto 31.12.2014. Since inception of the Scheme, total amount of Rs.216.86 crore has been released to the State upto 31.12.2014. Progress made As per the reports received from the State Government, 14653 units were set up involving an investment of Rs. 31769.74 crore which generated employment of 118291 persons since inception of the scheme in the State. Special Package Scheme for Himachal Pradesh and Uttarakhand New Industrial Policy and other concessions for the States of Himachal Pradesh and Uttarakhand were introduced by the Department of Industrial Policy & Promotion on 7th January, 2003, with an aim to provide incentives as well as an enabling environment for industrial development, improve availability of capital and increase market access to provide a fillip to the private investment in the state. The scheme was valid till 6th January, 2013. Continuation of the Scheme in the 12th Plan As per the directions of Ministry of Finance and Planning Commission on continuation of the existing Scheme during the 12th Plan and Impact Evaluation Study was conducted through an independent evaluator. Based on the outcomes of the impact evaluation study and appraisal by the Expenditure Finance

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ANNUAL REPORT 2014-15

Committee , note for Cabinet Committee was prepared and circulated among the various Ministries/Departments for consultation. Final Cabinet Note was approved by Cabinet Committee on Economic Affairs on 15th January, 2014 and the extended package was notified on 4th of March, 2014 w.e.f., 7th of January, 2013 to 31st of March, 2017. The new package includes Central Capital Investment Subsidy @ 15% of the investment in plant and machinery with maximum limit of Rs.30 lakh for new units established or on substantial expansion for existing unit in notified area and for thrust industries anywhere in the state. For MSMEs 15% of investment in plant & machinery with maximum upper limit of Rs.50 lakh for same area. Implementing Agency Himachal Pradesh State Industrial Development Corporation Ltd. (HPSIDC) and State Industrial Corporation of Uttarakhand Ltd. (SIDCUL) are the Nodal Agencies for routing the disbursal of subsidy for Himachal Pradesh and Uttarakhand respectively. Amount released During the financial year i.e. 2014-15, an amount of Rs.18.32 crore and Rs.40.11 crore has been released to the Nodal Agencies Himachal Pradesh State Industrial Development Corporation (HPSIDC) and State Industrial Corporation of Uttarakhand Ltd. (SIDCUL) respectively under the package upto 31.12.2014.

64

Since inception of the Scheme, total amount of Rs. 278.32 crore has been released to Himachal Pradesh and Rs.244.89 crore has been released to Uttarakhand, upto 31.12.2014. Progress Made As per the reports received from Himachal Pradesh Government, 9647 units with an investment of Rs.18726.79 crore were set up in the State, since inception of the scheme. This has led to generation of employment for 120602 persons. A s p e r t h e re p o r t s re c e ive d f ro m Uttarakhand Government, 31276 units with an investment of Rs. 24465.20 crore were set up in the State, since inception of the scheme. This has led to generation of employment for 337620 persons. In view of Section 94(1) of the Andhra Pradesh Reorganization Act, 2014 States of Andhra Pradesh and Telangana have forwarded proposals for Industrial incentives and the same are under examination with the Department. Modified Industrial Infrastructure Upgradation Scheme (MIIUS) Industrial Infrastructure Upgradation Scheme (IIUS) was launched in 2003 with the objective of enhancing international competitiveness of domestic industry by providing quality infrastructure through public private partnership in selected functional clusters/locations which have the potential to become globally competitive. Central assistance upto 75% of the project

Development Schemes

cost subject to a ceiling of `50 crore was given for each project. The Scheme was recast in February, 2009 on the basis of an independent evaluation to strengthen the implementation process whereby a twostage approval mechanism was introduced. ‘Final approval’ was to be given within six months of initial approval after achieving certain milestones. The ceiling of central assistance was raised from `50 crore to `60 crore. A modified version of IIUS viz, ‘Modified Industrial Infrastructure Upgradation Scheme (MIIUS)’ was notified in July, 2013. Under MIIUS, projects are to be undertaken to upgrade infrastructure in existing Industrial Parks/Estates/Area. Greenfield

projects in backward areas and North Eastern Region (NER) are to be sanctioned under the scheme. Projects are to be implemented by the State Implementing Agency (SIA) of the State Government. Central grant upto 50% of the project cost with a ceiling of `50.00 crore can be considered under MIIUS with a minimum of 25% share of State Implementing Agency and in case of North Eastern States, the central grant and the minimum contribution of the SIAs can be 80% and 10% respectively. A two stage approval mechanism has been retained in the MIIUS. So far, 11 projects with central assistance of `283.23 crore have been accorded ‘final approval’ and the remaining 13 projects involving central grant of `340.00 crore are still at ‘in-principle’ approval stage.

List of Projects accorded ‘Final Approval’ (` In crore)

S. Name and location of the Project No.

State

1

Industrial Infra Upgradation of IMT Manesar

Haryana

97.78

39.90

2

Industrial Infra Upgradation at IMT, Bawal

Haryana

84.85

34.19

3

Industrial Area, Sitapur, Morena

MP

75.00

12.75

4

Industrial Area, Ujjaini, Dhar

MP

44.88

11.50

5

Punjab Small Industries and Export Corporation Ltd. (PSIEC) Estate, Patiala

Punjab

76.60

16.58

6

Angul Aluminium Park,Angul

Odisha

184.69

46.00

7

Pashamylaran Industrail Area, Medak

Telangana

64.24

23.56

8

Industrial Growth Centre, Urla, Distt. Raipur

Chhattisgarh

54.81

12.26

9

Industrial Area, Kandrauri

HP

95.77

24.07

10

Industrial Area, Pandoga

HP

88.05

22.62

11

Bodhjungnagar Industrial Area

Tripura

55.38

39.8

Total

Project Cost

Central Grant

283.23

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ANNUAL REPORT 2014-15

List of Projects which are still at ‘In-principle' approval stage (` In crore)

S. No.

Name and location of the Project

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

State

Industrial Area Zuangtui, Aizawl Sirgitti Engineering Cluster SIDCO, Industrial Growth Centre, Samba Industrial Estate, Kathua Devipur Industrial Area Tupundana Industrial Area, Ranchi Furniture Hub at Ernakulam Kolhar Industrial Area, Bidar Bangalore Aerospace Park, Devenhalli Paddy Processing Cluster, Ranga Reddy Hindupur Growth Centre & Industrial Park, 11. Gollapuram 12. Bobbilli Industrial Park, Vizianagaram 13. Hosur Engineering Industry Cluster Total

A list of approved projects under MIIUS are given in table 7.1. Summary of IIUS Projects: 37 projects have been approved in the 10th and 11th Five Year Plan Periods under IIUS and these projects have been provided central

Central Grant

Mizoram Chhattisgarh J &K J &K Jharkhand Jharkhand Kerala Karnataka Karnataka Telangana

Project Cost 29.76 33.20 14.60 27.75 105.00 24.50 97.29 124.82 93.00 135.93

A.P. A.P. Tamil Nadu

100.07 84.6 81.27

27.16 22.8 24.11 339.96

15.22 8.32 7.45 12.91 27.36 8.11 45.44 48.36 47.43 45.29

assistance of ` 1335.43 crore (up to 28.02.2015), out of a total sanctioned central grant of ` 1526.00 crore. Out of these 37 projects, 22 have been completed and some SPVs viz. Auto Cluster, Vijayawada and Coir Cluster, Alappuzha are likely to report ` in crore

FYP

No. of Sanctioned Projects

Total Project Cost

Sanctioned

Released (Up to 28.02.2015)

10th

25

1558.54

893

867.04

11th

12

915.26

633

468.39

Total

37

2473.80

1526

1335.43

The details of the 37 IIUS projects along with physical and financial progress is enclosed at Appendix-VIII. Physical progress achieved so far for the 15 ongoing projects are illustrated as below:-

66

Development Schemes

closure during 2014-15. The break-up of approved projects under IIUS and release of central grant are as follows: A workshop was held on 21st November,

2014 at Nashik Engineering Cluster, Nashik, a facility developed under IIUS of DIPP involving auto and engineering clusters. This was organised with an objective of sharing

(Participants at the workshop held on 21.11.2014)

67

ANNUAL REPORT 2014-15

knowledge and adopting best practices amongst clusters developed under IIUS. Eight clusters participated in the workshop. (i)

Auto Cluster, Pithampur :- The cluster has established a facility with latest Plant & Machinery like Tool Room & Technical Service Centre that includes- CNC 5 Axis, CNC 5 face (3+2 axis), & CNC 3 Axis Machinery Centres, 5 Axis CNC wire cut, CNC EDM machine, CMM (Cordial Measuring Machine), Plastic Injection Moulding Machine, Tryout Press (Hydraulic) of 1000 ton capacity, Spotting Press Hydraulic-600 ton, Mechanical Press, Vacuum Heat Treatment- Muffle Furnace, etc. After successful completion of the project, the number of small and medium enterprises increased (three-fold) and employment generation (3.5 fold) whereas there was five-fold increase in export and four-fold increase in investment. At their training centre, they have already trained 434 persons and 96 are under training.

(ii) Nashik Engineering Cluster:- The cluster has created world class ‘Prototype Development centre’ and ‘Calibration & Testing’ facility with high-end machines like CAD/CAM centre, Rapid Prototyping(Metal & Polymer) development centre, a ‘tool room’ equipped with latest 5 Axis CNC, VMC, Wirecut, EDM (Vacuum Heat Treatment) machines etc. - For Skill Development, the SPV has

68

created facilities like CAD/CAM/CAE, E-learning, Industry-specific courses, Au to m a t i o n , e tc . Fa c i l i t i e s fo r calibration and testing an NABL (National Accreditation Board for Laboratories) accredited calibration facility along with facility for Product Life Cycle tests for Electrical and Environmental related equipments including Metrology & Metallurgy labs have been set up. - NEC receives 60% of its revenue from technical services, 10% from skill development and remaining 30% from other services like arrangement for events & exhibitions, business seminars, calibration and testing, etc. (iii) Metallurgical Cluster, Jajpur: The SPV has created a Common Facility Centre (CFC) wherein ESI Dispensaries, Rural Self Employment Training Institute run by PAN IIT (Alumni Association of IITs) is functional. They have also created 28 km of internal road and 8 km water supply pipe for the industries in the cluster. (iv) Tiruchirappalli Engineering and Technology Cluster:- The project is ongoing and so far they have established a Flow-Type Horizontal Machine and a Hydraulic Plate Bending Machine which are most suited for manufacture of components required in Defence, Oil and Gas sector. Their Tool room is equipped with latest 6-

Development Schemes

axis CNC machine. (v) Marathwada Auto Cluster:- The project is ongoing, however, they have created world class infrastructure like 3D-5Axis Laser Cutting Machine, Rapid Prototyping Machine(Polymer), Auto Blanking, Design Centre, etc. They also created Welding Simulation for training of Welders, Tool Room with Machine Centre, 3 axis Double Column, CNC Turnmill Centre & CNC Turning (Lathe) etc. (vi) Auto Cluster, Pune:- Engineering facilities like Prototype Production Centre, Rapid Prototype Development Centre, Rubber & Polymer Testing Lab, Environmental Lab, CMM facility for automobile industries have been created. (vii) MTMA Bangalore:- MTMA Bangalore has set up a world class ‘Exhibition’ infrastructure for organizing events like industrial exhibitions, conferences, etc. with all eco-friendly measures like rain harvesting, recycling of waste water, etc. In the year 2014-15, so far ` 92.00 crore (up to 28th February, 2015) has been disbursed out of allocation of RE of `105.00 crore (BE `115.00 crore). Indian Leather Development Programme (ILDP) Objective and Scope The major objective of the scheme ILDP is to

augment raw material base, enhance capacity, modernization and upgradation of leather units, address environmental concerns, human resource development, support to traditional leather artisans, address infrastructure constraints and establish institutional facilities. The scheme has been approved for implementation all over India during the 12th Plan period. The scheme would provide skilled manpower to the Leather Industry, e m p l oy m e n t t h ro u g h t ra i n i n g a n d placement in the leather sector, support to the traditional leather artisans by way of formation of self-help groups, modernization and technological upgradation of the leather units, environmental protection, modern infrastructure by establishing Mega Leather Clusters and establishing new branches of Footwear Design & Development Institute (FDDI). Indian Leather Development Programme is an existing Central Scheme initiated from the 10th Five Year Plan and continued in the 11th Five Year Plan with an expenditure of Rs.669.02 crore. The same has been continued in 12th Plan with an outlay of Rs.990.36 crore. The ILDP comprises the following six sub-schemes: 1. Human Resource Development(HRD) HRD mission targets creation of skilled work force for leather sector and lays stress on skill development and technical development. This project is intended to train and prepare

69

ANNUAL REPORT 2014-15

individuals to be fit to work in medium to large industrial units. Up gradation of skills of persons 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 are placed in the industry as per the guidelines. 2.

Establishment of Institutional Facilities The sub-scheme of ILDP aims at providing institutional facilities by way of establishing new campuses of FDDI to meet the growing demand of the l e a t h e r i n d u s t r y fo r fo o t we a r technologies, designers, supervisors and mechanics. Two new branches of FDDI are being set up in punjab and Gujarat.

3.

Support to Artisan There are various clusters in India making traditional footwear and other leather goods. The aim of this scheme is to promote the clusters at various forums as they are an integral part of rural Indian economy and have p o te n t i a l fo r g e n e ra t i n g l o c a l employment and export. The artisan clusters all over India would be supported for enhancing their design and product development, capacity building, providing marketing support, establishing common facility centre

70

and marketing support/linkage. The broad objective of this component is to ensure better and higher returns to the artisans resulting into socio-economic upliftment. 4.

Leather Technology, Innovation & Environmental Issues. This sub-scheme provides financial support to Leather Cluster to meet the prescribed pollution control discharge norms and environmental issues. This covers establishment/ expansion/ up gradation of CETPs, technology benchmarking for implementing cleaner technologies for environment management, utilization of solid waste from tanneries and conducting workshops to educate and train the tanners and tannery workers.

5. Mega Leather Cluster The major objective of developing Mega Leather Clusters is to create state of the art infrastructure and to integrate the production chain in a manner that caters to the business needs of the leather industry for the domestic and export markets. These mega clusters will assist the entrepreneurs to set up units with modern infrastructure, latest technology, and adequate t ra i n i n g a n d H u m a n Re s o u rc e Development (HRD) inputs. The development of Mega Leather Clusters would help in creating additional

Development Schemes

employment opportunity, particularly for the weaker sections of society. Mega Leather Clusters (MLC) for the development of leather industry will have minimum common facilities. The project cost would cover various infrastructure developments like Core Infrastructure, Special Infrastructure, Production Infrastructure, HRD & Social Infrastructure, R&D Infrastructure and Export services related infrastructure.

6. Integrated Development of Leather Sector (IDLS) Under this sub-scheme, assistance is provided for technology upgradaion/ modernization and/or expansion and setting up of a new unit in the leather sector. The Sub-scheme provides assistance in form of investment grant to the extent of 30% of cost of new plant and machinery for micro and small enterprises and 20% of cost of new plant and machinery for other units subject to a ceiling of ` 2 crore for each product line.

71

8

CHAPTER

Industries and Industrial & Technical Development

Cement Industry India is the second largest manufacturer of cement in the world. The industry plays a crucial role in the development of housing and infrastructure sector of the economy. The cement industry has been decontrolled and delicenced under the policy of economic liberalisation. Since then the Cement Industry has progressed well both in capacity/production and in process technology. India is produces different varieties of cement like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, White Cement, etc. These different varieties of cement are produced as per the Bureau of Indian Standard (BIS) specifications and its quality is comparable with the best in the world. Capacity, Production and Despatch of Cement Cement is one of the most technologically advanced industries in the country. The modern Indian Cement plants are state-ofthe-art plants and are comparable to the best in the world. The Indian Cement Industry has managed to keep pace with global technological advancement. The induction of advanced

72

technology has helped the industry immensely to improve its efficiency by conserving energy, fuel and addressing environmental concerns. The cement industry comprises of 190 large cement plants with an installed capacity of 350.00 million tonnes and more than 350 mini cement plants with an estimated capacity of 11.10 million tonnes per annum. There are a few large cement plants owned by the Central and State Governments. The Production and Despatch figures of Cement for the year 2013-14 are 256.04 Million Tonnes (MT) and 248.70 Million Tonnes(MT) respectively. The Production and Despatch figures for the year 201415are 200.8 Million Tonne (upto December, 2014) and 192.46 Million Tonne (upto December, 2014) respectively. The Department collects Cess on Cement @ ` 0.75 per metric tonne of cement manufactured/ produced from medium and large industries. The Cess amount collected on cement for the years 2013-14 and 2014-15 is ` 19.02 Cr and ` 15.02 Cr (upto January, 2015) respectively which has been deposited in the Consolidated Fund of India. Cement Information System (CIS) Portal was launched to compile data about the cement

Industries and Industrial & Technical Development

industry regarding Capacity, Production, Dispatch, Export and Import of Cement , mode of dispatch,Cess collected on dispatch of cement etc. National Council for Cement and Building Materials (NCCBM) is an autonomous apex R&D organization under the administrative control of this Department. The Budget provisions for the current financial year 2014-15 is ` 6.00 Cr for ‘Plan ‘and ` 12.20 Cr for ‘Non-Plan’ activities. Outlay for the 12th Five Year Plan for NCCBM is ` 35 Cr. Cigarette Industry (HS Code : 24) The Cigarette Industry is one of the oldest industries in India. It is an important agrobased and labour intensive industry. Cigarette is an item which requires Industrial License before setting up an

industry as per Industries (Development & Regulations) Act, 1951. The production of cigarettes during 2013-14 was 8,34,701.38 lakh nos. During the current year 2014-15 (April 2014 to November, 2014), the production has been 5,75,985.31 lakh nos. The export and import of Tobacco and manufactured Tobacco substitutes during 2013-14 was ` 6,13,445.89 lacs & ` 24,838.94 lacs and during 2014-15 (April 2014 to November,2014) is ` 3,67,244.30 lacs & ` 18,977.01 lacs respectively. Explosives Industry There are 115 Explosives Plants and 127 Site Mixed Explosives Plants in the medium and Small Scale Sector, engaged in the production of Explosives. The installed and production capacity are as under.

Number of Licensed Premises/Units Year

Explosives Act

Petroleum Act

Total

2009-10

62613

136469

199082

-11

79265

182855

262120

2011-12

71420

154167

225587

2012-13

79199

226171

305370

2013-14

97529

153978

251507

2014-15 (upto 31/12/2014)

99188

157200

256388

73

ANNUAL REPORT 2014-15

Production of Explosives for the last 5 years Description

Annual Installed Licensed capacity

201011

201112

201213

201314

2014-15 (upto 31/12/2014)

Class 1 Gun Powder (Metric Tonnes)

1565.55

688.6

710.6

577

549

403.1

Class 2 (a) Cartridges (b) Site Mixed (Metric Tonnes)

604651 1463721

183533 .7 359943 .5

238193 483828

267275 499249

269999 519878

249078 421427

Class 3 Div 1 (NG) Class 3 Div-2 Booster and PETN* (Metric Tonnes)

** 19954.67

Nil 3573.8

Nil 5063.1

Nil 5656.5

Nil 6186

Nil 5063

Class 6 Div 1 Safety Fuse (Million meters)

261.6

77

81.1

77

74

Class 6 Div 2 Detonating fuse (Million mtrs)

711.2

284.6

370.6

367.5

427

Class 6 Div 3 Detonators (Million no.)

51.5

344.7 1116.05

724.2

970.7

992.2

1031

667.0

The number of licences issued under the Explosives Act 1884 and Petroleum Act 1934 and the production of Explosives during the last 5 years is given in the above Tables. *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)

Glass Industry (HSCode:70) The Indian glass industry consists of seven segments namely sheet & flat glass (NIC26101); glass fiber & glass wool (NIC26102); hollow glassware (NIC-26103); laboratory glassware (NIC-26104); table & kitchen glass ware (NIC-26105); glass

74

bangles (NIC-26106) including other glassware (NIC-26109). Glass industry comes under delicensed industry. Container glass accounts for 50% of the country’s glass consumption by value. This type of glass is domestically produced and used for soft drinks, alcoholic beverages, food and pharmaceuticals.

Industries and Industrial & Technical Development

The production of Glass Sheet, Toughened Glass, Fibre Glass, Glass Bottles during 2013-14 were 1,28,040.00 th.sq.mtrs; 32,83,459.00 sq.mtrs, 38,265.00 tonnes,9,99,630.00 tonnes respectively and during 2014-15 (April,2014 to November, 2014) have been 70,722.00 th. sq. mtrs. 2,669,250.00 sq.mtrs. 30,244.00 tonnes and 7,32,299.00 tonnes respectively. The export & import of glass & glassware during 2013-14 was ` 3,87,923.60 lacs & ` 4,43,893.05 lacs and during 2014-15 (April,2014 to November,2014) has been ` 2,94,662.30 lacs & ` 3,38,169.05 lacs respectively. The export & import of Float Glass/ Sheets during 2013-14 was ` 26,775,05 lacs & ` 54,474.89 lacs and during 2014-15 (April,2014 to November, 2014) has been ` 20,142.12 lacs and ` 51,158.75 lacs respectively. Wood Based Industry (HS Code:44 Wood based Industry in India includes plywood, veneers of all types and other wood based products such as particle board, medium density fibre board, etc. Plywood forms the major segment of the wood-based industry in the country. Plywood and Veneers of all types and other wood based products such as particle board, medium density fibre board comes under delicensed category. In terms of Press Note No. 9 (1998 Series) dated 27.8.98, issued by Department of Industrial Policy & Promotion, entrepreneurs who wish to obtain approval from the Government for setting up any

wood based project should obtain prior clearance from the Ministry of Environment & Forests before submitting application to the Administrative Ministry and enclose a copy of “in principle” approval given by the Ministry of Environment & Forests. The total production of plywood, wood veneer and particle boards during 2013-14 were 48,973.87 thousand square meters; 1,46,488.06 thousand square meters and 9,209.91 thousand square meters and during 2014-15 (April 2014 to November, 2014) have been 39,146,33 thousand square meters; 87,416.53 thousand square meters and 5,406.20 thousand square meters respectively. The export & import of wood and articles of wood during 2013-14 was worth ` 2,01,290.14 lacs & ` 16,03,325.90 lacs and during 2014-15 (April 2014 to November, 2014) has been ` 1,42,174.16 lacs & ` 11,06,903.97 lacs respectively. Paints & Allied Products Industry (HS Code: 32) The Paints & allied products’ industry mainly consist of paints, enamels, varnishes, pigments, printing inks, synthetic resins, etc. The paints & allied Industry comes under the delicensed category. The industry comprises of two sectors, viz. unorganised sector and the small scale sector. The production of paints of all kinds, s y n t h e t i c re s i n s a n d p r i n t i n g i n k during 2013-14 were 7,80,680.00 tonnes, 1,79,807.00 tonnes and 2,12,658.50

75

ANNUAL REPORT 2014-15

tonnes respectively. During 2014-15 (April, 2014 to November, 2014), the production have been 5,91,050.00 tonnes, 1,39,230.00 tonnes and 1,60,847.40 tonnes respectively. The export & import of paints & allied products during 2013-14 was worth Rs.15,42,777.81 lacs and Rs. 8,82,323.50 lacs and during 2014-15 (April, 2014 to November, 2014) is Rs.11,84,917.20 lacs & Rs. 6,55,236.11 lacs respectively. Watch Industry (HS Code:91) The Watch Industry in India exists both in the organised and the small scale sector. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has projected the market size of Indian watch industry which is currently estimated at Rs. 5000 crore to be worth Rs. 15000 crore by 2020 due to emergence of a strong middle class and a large number of high net worth individuals (HNI's). The organized sector contributes 40% of the total demand and the rest is met by the unorganised sector. The demand for watches has been growing over the years. The production of wrist watches during 2013-14 was 11,375.54 Thousand Numbers. During the current year i.e. 2014-15 (April 14 to November.14), the production has been 8,676.86 Thousand Numbers. The production of clock/watch/time pieces during 2013-14 was 11,220,912.00 Numbers. During the current year i.e. 201415 (April 14 to November,14), the production has been 7,450,748.00 Numbers.

76

The export & import of Clocks and Watches during 2013-14 was worth Rs. 51,900.65 lacs & Rs.181,984.40 lacs and during 201415 (April,14- November,14) is worth Rs.36,274.76 lacs & Rs.1,30,050.98 lacs respectively. Metal Container Industry (HS Code:7310) This industry is delicensed. The main types of metal (tin) containers are food containers generally known as OTS (Open Top Sanitary) cans and General Line Containers for packaging non-food commodities such as paints, lubricants, pesticides, etc. The production of tin containers during 2013-14 was Rs.414.80 crores and during 2014-15 ( April, 2014 to November, 2014) has been 349.85 crores. The export & import of containers during 2013-14 was worth Rs. 27,583.52 lacs and Rs.31,430.29 lacs and during 2014-15 (April, 2014 to November,2014) is worth Rs. 19,457.46 lacs & Rs. 24,852.02 lacs. respectively. Soaps & Detergents Industry (HS Code : 34)

Soaps and Detergent Industry includes soaps, laundry detergents, dishwashing detergents, synthetic detergents and toilet soaps including bathroom bars. Since these are consumer items, technology, quality, marketing and distribution determine the success of units in this sector. The industry has developed both in the small-scale and organized sector. Laundry Soap is reserved for manufacture in Small Scale Sector. However, toilet soap is dominated by the multinationals units.

Industries and Industrial & Technical Development

The production of Synthetic Detergents, Toilet Soaps and Washing soaps during 2013-14 were 13,15,136.98 tonnes, 6,93,388.63 tonnes and 91,181.70 tonnes respectively. During 2014-15 (April,2014 to November,2014), the production have been 9,76,290.47 tonnes, 5,40,844.22 tonnes and 77,377.00 tonnes respectively.

the top ten export earners for the country. The leather sector provides employment to about 2.5 million people, mainly from the weaker sections/minorities, of which about 30% are women. The sector has a very strong linkage to job creation in rural economy and on social equity. The sector is dominated by small and medium enterprises.

The export and import of soap, organic surface active agents, washing preparations etc. during 2013-14 was worth ` 3,14,383.40 lacs & ` 3,46,459.31 lacs and during 2014-15 (April,2014 to November,2014), is worth ` 2,13,709.64 lacs & ` 2,81,110.32 lacs respectively.

The export of leather and leather products from India has undergone a structural change during the last two decades. India was traditionally the exporter of raw hides and skin and semi-processed leather. However, in the last two decades the share of leather footwear, leather garments, leather goods, footwear components and several articles of leather in the total exports has substantially increased as a result of the Government’s policy to encourage export of value added leather products.

Leather Industry Leather Industry plays an important role in the Indian economy in view of its substantial overall output, export earnings and employment potential. The Leather Industry is the tenth largest amongst the manufacturing sector of India and is one of

India’s Export performance of the Leather Sector during the last five years is presented below:(Value in Million US$)

2009-10

2010-11

2011-12

2012-13

2013-14

Finished leather

627.95

841.13

1024.69

1093.73

1284.57

Footwear&

1507.59

1758.67

2079.14

2066.91

2531.04

Footwear-

.

Components Leather Garments 428.62

425.04

572.54

563.54

596.16

Leather goods

757.02

855.78

1089.71

1180.82

1351.50

Saddlery &

83.39

87.92

107.54

110.41

145.54

3404.57

3968.54

4873.62

5015.41

5908.82

Harness Total

Source Council for Leather Exports.

77

ANNUAL REPORT 2014-15

Items of manufacture in the Leather Sector do not attract Licensing Provisions under The Industries Development and Regulation Act 1951. Light Electrical Industry Sector The Light Electrical Industry is a diverse sector having a number of distinct products and sub-products. It includes goods like electrical wires and cables, transmission t o w e r, c r a n e s , l i f t s & e s c a l a t o r s , refrigerators, washing machine, air conditioners, storage batteries, dry cell batteries, electrical lamps & tubes etc. A brief of some of these industries is given below:Electrical wires and cables Electrical wires and cable industry is one of the earliest industries established in the country in the field of electrical products. A wide range of wires and cables are manufactured in the country which includes communication cables such as jelly filled telephone cables, optic fibre cables, local area network cables, switchboard cables, co–axial cables, VSAT cables, electrical cables such as electrical wires, winding wires, automotive/battery cables, UPS cables, flexible wires, low voltage power cables and EHT power cables. The power cable industry may be mainly divided into four segments viz: house wiring (up to 440V), LT (1.1 to 3.3kV), HT (11 to 66kV), EHV (66kV and above). Well-established R & D facilities are key factors for development of this industry. In India, renowned laboratories like Central Power Research

78

Institute (CPRI), Electrical Research and Development Association (ERDA) are well equipped with the most advanced product testing facilities to meet international standards. The production of insulated cable & wires of all kinds in 2013-14 was 59.39 lakhs core km. and in 2014-15 (April - December) was 47.10 lakhs core km. The export and import of wires and cables (HS code. 7413 & 8544) in 2013-14 was Rs. 4262.60 Crore and Rs. 4606.29 crore respectively whereas in 201415 (April-Nov.) the same was Rs. 2817.61 crore and Rs. 3662.59 crore respectively. Transmission Towers Transmission towers support high voltage transmission lines which carry electricity over long distance. These lines typically feed into sub-station so that the electrical voltage can be reduced to a level that can subsequently be used by the customers. There is an increasing trend in India to have larger power stations, particularly mega and ultra-mega power projects. Consequently while there would be fewer but larger power generating stations, the demand for transmission of energy would grow substantially. The move to integrate India's transmission networks through a national grid of inter-regional transmission lines will facilitate transfer of power from surplus regions to deficit regions. The industry has facilities for testing transmission towers up to 1000 KV with the objective of catering to future growth of transmission systems in the country as well as to export demand.

Industries and Industrial & Technical Development

The export and import of transmission towers (HS Code 730820) in 2013-14 was Rs. 1538.86 crore and Rs. 91.47 crore respectively whereas in 2014-15 (AprilNov.) the same was Rs. 1108.89 crore and Rs. 24.10 crore respectively. Cranes Cranes and hoists are an important category of material handling equipment required by almost all sectors across the industry. A wide range of cranes is manufactured in the country and these include Electric Overhead Traveling (EOT) cranes, mobile cranes, ladle cranes, hydraulic decks, crab cranes, floating cranes, controller cranes, etc. The sector has a good growth potential in view of increased industrial activities in various fields as well as construction industry. The production of cranes in 2013-14 was 17899 tonnes and in 2014-15 is 12041 tonnes. The export and import of cranes (HS Code No.8426) in 2013-14 was Rs. 541.43 crore and Rs. 1200.55 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 342.10 crore and Rs. 1019.72 crore respectively. Lifts and Escalators The use of lifts and escalators is increasing rapidly due to substantial investments in construction of multi-storied housing complexes, large malls and supermarkets of international standards, modernization of airports and railway stations apart from industrial sectors. A wide range of lifts and escalators are manufactured in India. These include single speed, double speed,

gearless, hydraulic, servo and Variable Voltage Variable Frequency (VVVF) elevators. The production of lifts in 2013-14 was Rs. 1113.11 crore and in 2014-15 (AprilDecember) was 1050.13 crore. The export and import of Lifts, Escalators, Conveyers etc. (HS Code No. 8428) in 2013-14 was Rs. 367.45 crore and Rs. 2570.64 crore respectively whereas in 2013-14 (April-Nov) the same was Rs. 328.68 crore and Rs. 1442.90 crore respectively. Refrigerators In India, refrigerators have the highest aspiration value among all consumer durables with the exception of televisions. The refrigerator Industry has become highly competitive of late. A number of brands have entered the market giving the consumers a wide range of choices. There are two basic designs adopted in refrigerators presently being manufactured in the country. These are commonly referred to as Direct Cool (DC) and Frost Free (FF) Refrigerators. There has been gradual consumer preference shift towards the frost free segment. Increasing number of dual income households are shifting the demand from the conventional 180L refrigerators to the larger 220L and higher capacity refrigerators with double doors. The production of refrigerators in 2013-14 was 84.21 lakh and in 2014-15 (April – December) was 64.47 lakhs. The export and import of refrigerators (HS Code

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8418) in 2014-15 was Rs. 1450.13 Crore and Rs. 2200.80 Crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 1114.31 Crore and Rs.1542.98 Crore respectively. Washing Machines The washing machine market in India can be divided into semi–automatic and fully–automatic product range. With rising disposable incomes and higher aspirations, there is a gradual shift towards higher capacity washing machines and also towards fully–automatic washing machines. Controls are changing from purely m e c h a n i c a l t o f u l ly e l e c t ro n i c a s microcontrollers are incorporated into the designs. While providing intelligence, microcontrollers boost reliability, drive down costs and improve energy efficiency. The production of washing machines by the units in the organized sector in 2013-14 was 34.29 lakh and in 2014-15 (AprilDecember) was 30.71 lakh. The export and import of washing machines (HS Code 8450) in 2013-14 was Rs. 145.92 crore and Rs. 723.10 crore respectively whereas in 201415 (April-Nov) the same was Rs. 144.52 crore and Rs. 659.63 crore respectively. Air Conditioners Air Conditioners are gradually being treated as a necessity in changed socio-economic environment with changing life style. The air–conditioners’ market can be classified into three segments: window AC, split AC and central AC. The split ACs are gaining popularity due to limitation of space and

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increase in number of people living in flats in multi-storied complexes and also due to less noise. Bureau of Energy Efficiency (BEE), a statutory body under the Ministry of Power has introduced energy efficiency based star rating for air conditioners to help consumers buy the best energy efficient products. The production of air conditioners by units in the organized sector in 2013-14 was 20.18 lakh and in 2014-15 (April-December) was 15.34 lakh. The export and import of air conditioners (HS Code 8415) in 2013-14 was Rs. 653.30 crore and Rs. 4969.08 crore respectively whereas in 2014-15 (AprilNov.) the same was Rs. 518.64 crore and Rs. 3015.57 crore respectively. Lead Acid Storage Batteries Lead Acid Batteries are accumulators of current and power which is discharged over a period of time. They are used in vehicles and also for various industrial uses such as for back up power for UPS application, control rooms, power stations, telecommunications, etc. In addition, these are also used for emergency lights for houses, telephone systems and as power source for mining etc. A new application of Lead Acid Batteries has emerged today in electric vehicles. The average life of the battery is approximately 2 years, hence these batteries will be needed as replacement throughout the life of the vehicle or the machinery in use. Although there are few large scale manufacturers of the product in India, there are large numbers of very small scale units manufacturing the

Industries and Industrial & Technical Development

product in a most unorganized manner. Their products generally do not meet the required standards as specified by Bureau of Indian Standards. In order to ensure safe disposal of lead acid batteries, Ministry of Environment and forest has issued a notification Batteries (Management and H a n d l i n g ) Ru l e s , 2 0 0 1 u n d e r t h e Environment (Protection) Act 1986. The production of lead acid batteries by the units in the organized sector in 2013-14 was 759.5 lakh and in 2014-15 (AprilDecember) was 655.87 lakh. The export and import of lead acid batteries (HS code 8507) in 2013-14 was Rs. 989.96 crore and Rs. 4312.52 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 815.16 crore and Rs. 2382.85 crore respectively. Dry Cell Batteries Dry cell batteries are one of the most commonly used items. These are the oldest type of batteries which are still being used. Performance of dry cell batteries has undergone progressive improvements through technological developments. New types of dry cell batteries with longer shelf life and greater dependability and also rechargeable cells have come up. Nickel cadmium batteries and other rechargeable batteries are manufactured in the country to meet the requirement of defence, telecommunications and electronics. The growing popularity of cellular phones, laptops and imported toys could open the market for a new range of batteries that are not produced at present

The production of dry cells in 2013-14 was 21580.06 lakh and in 2014-15 (AprilDecember) was 16256.83 lakh. The export and import of dry cell batteries (HS Code 8506) in 2013-14 was Rs. 64.63 crore and Rs. 660.44 crore respectively whereas in 201415 (April-Nov.) the same was Rs. 55.18 crore and Rs. 461.77 crore respectively. Electrical Lamps and Tubes Wide range of lamps and tubes are being manufactured in the country which include general lighting service lamps such as incandescent bulbs, halogen lamps, gas discharge lamps such as fluorescent tube light, compact fluorescent lamp, high pressure mercury vapour lamps, metal halide lamps, low pressure and high pressure sodium vapour lamps and variety of special lamps. The higher energy cost have led to the development of energy efficient lamps consuming less power and giving output as close to daylight. Compact Fluorescent Lamps (CFL) which consume about 20% of the electricity for the same light output and last up to 8 times longer than the GLS are getting more popular. LEDs have a great potential to provide highly efficient lighting with little environmental pollution in comparison to the incandescent lamps (ICLs) and fluorescent lamps (FTLs, CFLs). Penetration of LEDs in India could significantly reduce lighting load as almost 22-25% of electricity is consumed for lighting, which is also a major contributing factor of peak demand. Due to higher costs, LEDs are not very popular even though their production has started in the country.

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The production of General Lighting Services (GLS) Lamps by units in the organized sector and fluorescent tubes in 2013-14 was 7313.37 lakh and 2095.98 lakh respectively. In 2014-15 (April-December) production of GLS lamps by the units in the organized sector and fluorescent tubes was 5467.57 lakh and 1438.56 lakh. The export and import of electric lamps and tubes (HS code9405) in 2013-14 was Rs 809.24 crore and Rs. 1880.35 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 577.40 crore and Rs. 1489.18 crore respectively. Light Engineering Industry Sector The light Engineering Industry is a diverse industry with the number of distinct sectors. This industry includes mother of all industries like castings and forgings to the highly sophisticated micro-processor based process control equipment and diagnostic medical instruments. This group also includes industries like bearings, steel pipes and tubes, fasteners, etc. The products covered under the engineering industry are largely used as input to the capital goods industry. Hence the demand of this sector is linked to the demand of the capital goods industry. Roller Bearing Industry Roller bearings are essential components in the rotating parts of virtually all machines such as automobiles, electric motors, diesel engines, industrial machinery & machine tools, etc. Bearings are used in diversified fields. Hence, the product range is vast and

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diversified. The indigenous manufacturers are manufacturing bearings of quality and precision at par with world renowned manufacturers in diversified range. Bearings, generally used for special applications that require high technology are still being imported. There is a considerable scope for development of bearings of smaller size and lighter weight with improved performance in harsh operating conditions like high or low temperature. Automobile industry accounts for bulk of the total demand of this industry with estimated share of 35%, electrical industry’s share is 12%, after market (replacement) share is 40% and the remaining 13% consumption is by other industries. The production of ball & roller bearings in 2013-14 was 7993.82 lakh and in 2014-15 (April-December) is 6738.22 lakh. The export and import of ball & roller bearings (HS code 8482) in 2013-14 was Rs. 2339.46 crore and Rs. 4994.30 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 1748.52 crore and Rs. 3721.51 crore respectively. Ferrous Castings Ferrous castings are pivotal to the growth and development of engineering industries since these constitute essential intermediates for automobiles, industrial machinery, power plants, chemical and fertilizer plants etc. Indian foundry industry is the third largest in the world. This industry is now well established in the country and is spread across a wide

Industries and Industrial & Technical Development

spectrum consisting of large, medium, small and tiny sector. The salient feature of the foundry industry in India is its geographical clustering. Typically, each foundry cluster is known for catering to some specific end use markets. For example, the Coimbatore cluster is famous for pump sets castings, the Kolhapur and Belgaum cluster for automotive castings, Rajkot cluster for diesel engine castings and Batala and Jalandhar cluster for machinery parts and agricultural implements. Advanced countries like USA, Japan, Germany are unlikely to add much capacity due to stringent pollution control norms there. India can thus have a dominant presence in this field and can become an important casting supplier to the world. The production of steel castings and C.I. castings in 2013-14 was 456960.53 tonnes and in 2014-15 is 359465.00 tonnes. The export and import of casting (HS code 7325) in 2013-14 was Rs. 6437.75 crore and Rs. 455.04 crore respectively whereas in 201415 (April-Nov) the same was Rs. 4451.79 crore and Rs. 303.27 crore respectively. Medical and Surgical Instruments Medical and surgical equipment industry has been playing a critical role in the health c a r e d e l ive r y s y s t e m . I n d i g e n o u s manufacturers are currently in a position to manufacture wide variety of electro medical equipment such as electro cardiograph (ECG machine), X-ray scanner, CT scanners, short wave physiotherapy unit, electro surgical units, blood chemistry analyzer etc. However, sophisticated instruments such as

nuclear magnetic resonance (NMR) scanners, multi channel monitors etc. are not currently manufactured in the country. Most of the units manufacturing medical equipment are in MSME sector. The export and import of Medical and surgical equipment (HS code 9018 to 9022) in 2013-14 was Rs. 5180.73 crore and Rs. 13670.21 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 3787.80 crore and Rs. 9524.68 crore respectively. Process Control Instrument Industry Process control instruments cover wide range of instruments and systems required for monitoring and measurement of physical, chemical and biological properties. They are used for measurement and control of process variables like pressure, temperature, humidity, liquid level, flow, specific gravity, chemical composition including pH and many forms of spectrometry and spectrophotometry. The process control instruments have become an integral part of the modern industrial activity. This industry is a key i n d u s t r y wh i c h p rov i d e s to o l s fo r automation. Their importance is significant in high cost large and sophisticated process industries like fertilizer, steel, power plant, refineries, petrochemicals, cement & other process industries. The export and import of process control instruments (HS code 9032) in 2013-14 was Rs. 849.45 crore and Rs. 3381.49 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 847.31 crore and Rs. 2570.95 crore respectively.

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Seamless Steel Pipes & Tubes Seamless steel pipes and tubes are produced in different sizes and the wide size range makes them suitable for use in number of versatile area of application. The process of manufacture imparts strength and durability to the pipes and thus can be used for corrosion – resisting applications. These pipes are also used for aircraft, missile and anti friction bearing, ordinance, etc. Ultra high strength and corrosion-resistant properties make these perfect for oil and gas industry, chemical industry and automobile industry. Oil sector accounts for around 60% of the total requirement of seamless pipes. Bearings and boiler sector contribute around 30% of demand. The Industry is able to manufacture tubes up to 14” outer diameter. The export and import of seamless steel pipes and tubes industry (HS code 7304) in 2013-14 was Rs. 2712.58 crore and Rs. 5580.06 crore respectively whereas in 201415 (April-Nov) the same was Rs. 2299.80 crore and Rs. 3691.06 crore respectively. Electrical Resistance Welded (ERW) Steel Pipes & Tubes. Based on the customers’ requirement, ERW steel pipes and tubes are available in various qualities, wall thickness and diameters of the finished pipes. High performance ERW steel pipes and tubes possess high corrosion resistance, high deformability, high strength and high toughness. These pipes are used in fencing, lining pipes, oil country tubulars, scaffolding, water and gas conveyance etc. There has been tremendous increase in the

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production of ERW steel pipes due to higher d e m a n d i n o i l a n d g a s i n d u s t r y, infrastructure and automobile uses. There are a large number of units in the MSME Sector. The export and import of ERW steel pipes and tubes (HS code 73059021,73059029, 73069011 & 73069019) in 2013-14 was Rs. 248.87 crore a nd Rs. 11.17 crore respectively whereas in 2014-15 (AprilNov) the same was Rs. 192.82 crore and Rs 11.18 crore respectively. Submerged-Arc Welded (SAW) pipes There are two types of SAW pipes namely longitudinal and helical welded SAW pipes. Longitudinal SAW pipes are preferred where thickness of pipe is more than 25mm and in high pressure gas pipe line. Helical welded SAW pipes are used for low pressure applications. The cost of helical SAW pipes is less than longitudinal pipes. There is huge demand of SAW pipes in the country due to transportation of oil and gas and transmission of water. The export and import of SAW pipes Industry (HS code 7305)in 2013-14 was Rs. 4142.17 crore and Rs. 172.01 crore respectively whereas in 2014-15 (AprilNov) the same was Rs. 2328.77 crore and Rs. 321.63 crore respectively. Industrial Fasteners The fastener industry in India may be classified into two segments: high tensile and mild steel fasteners. High tensile and mild steel fasteners broadly include nuts, bolts, studs, rivets and screws. Mild steel

Industries and Industrial & Technical Development

fasteners are primarily manufactured by the unorganized sector while high tensile fasteners requiring superior technology are dominated by companies in the organized sector. Automobile industry accounts for bulk of the total demand of this industry. Consumer durables and railways are the other primary users of the high tensile fasteners. Automobile sector is likely to drive growth in the fastener industry. The production of nuts & bolts in the organized sector in 2013-14 was 95002.00 tonnes and in 2014-15 (April-December) was 84334.00 tonnes. The export and import of industrial fastener (HS code 7318) in 2013-14 was Rs. 4669.62 crore and Rs. 4283.11 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 4183.10 crore and Rs. 2942.79 crore respectively. Steel Forgings Forgings are intermediate products used widely by original equipment manufacturers in the production of durable goods. The composition of the Indian forging industry can be categorized into four sectors - large, medium, small and tiny. A major portion of this industry is made up of small and medium units/enterprises (SMEs). The industry was previously labour intensive but with increasing globalization it is becoming more capital intensive. Among the industries that depend on forgings are automotive; agricultural machinery and equipment; valves, fittings, and petrochemical applications; hand tools and hardware; off-highway and railroad equipment; general industrial equipment;

ordnance, marine and aerospace. The key driver of demand of forging is the automobile industry. About 65% of the total forging production is used in this sector. The production of stamping & forging in the organized sector in 2013-14 was 415565.77 tonnes and 2014-15 (April-December) is 340606.00 tonnes. The export and import of forging industry (HS code 7326) in 2013-14 was Rs 5479.71 crore and Rs. 3493.33 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 3435.98 crore and Rs. 2271.99 crore respectively. Bicycle Industry The bicycle industry of India is one of the most established industries. India is the second largest bicycle producer of the world, n ex t o n ly to C h i n a . Most of the manufacturing units are located in Punjab and Tamil Nadu with Ludhiana (Punjab) being a major bicycle production hub. The industry is making endeavor for enhancing export since there is a significant scope for export of Indian bicycles, bicycle spare parts and bicycle accessories. Bicycle companies in India are now focusing on urban markets and are looking to expand their base in the professional and adventure categories. The production of all kinds of bicycles in the organized sector in 2013-14 & 2014-15 (April-December) was 138.36 and 102.14 lakh. The export and import of bicycle (HS code 8712) in 2013-14 was Rs 318.20 crore and Rs. 151.36 crore respectively whereas in 2014-15 (April-Nov) the same was Rs.237.77 crore and Rs. 123.00 crore respectively.

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Light Industrial Machinery Sector Food Processing Machinery The Indian market for food processing machinery has been growing steadily fuelled by strong domestic demand for processed food and beverage products spurred by increase in income level, increasing number of women joining the work force, rapid urbanization, changing life style and mass media promotion. The most promising areas of growth are fruit and vegetable processing, meat, poultry, dairy & seafood, packaged/ convenience food, soft drinks and grain processing. Food processing sector is expected to grow at a healthy pace considering the rapid changes in food habits and consumerist culture developing in the country. The machinery manufacturers have honed their expertise in manufacturing dairy machinery and other core equipment of food processing machinery. The export and import of food processing machinery (HS code 8438) in 2013-14 was Rs 992.80 crore and Rs. 941.88 crore respectively whereas in 2014-15 (AprilNov) the same was Rs. 671.30 crore and Rs. 656.68 crore respectively. Packaging Machinery Industry Packaging of consumer products or industrial products is emerging as the USP in the marketing strategies. Developments in packaging technology have not only contributed to improving the aesthetic appeal of the products but also the shelf life. In some cases specialized packaging

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becomes a technical necessity. Considering the growth prospects in industrial sector and growing consumer awareness of packaging, it is expected that there would be substantial growth in this area. There is a wide range of packaging machinery available in the country covering packaging of vast range of items. Some of the commonly available packing machinery includes machines for coding and on-line printing machines, feeding and labeling machines, strip packaging, form fill and seal machines, carton filling, fully automatic bag making machinery and automatic micro processor controlled packaging machines. The export and import of packaging machinery industry (HS code 842220 to 842240) in 2013-14 was Rs 926.59 crore and Rs. 1884.55 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 485.60 crore and Rs. 1094.51 crore respectively. Water Pollution Control Equipment Due to growing awareness regarding water pollution and stringent environmental control standards being enforced for various uses including process industries, the water/waste water treatment industry is poised for huge growth. The various categories of water pollution control equipment broadly include waste water treatment plants, drinking water treatment plants and effluent treatment plants. Water/waste water treatment is the process of removing contaminants and it includes

Industries and Industrial & Technical Development

physical, chemical and biological processes to remove physical, chemical and biological contaminants. The primary treatment is the first step in the treatment process and involves the removal of pollutants that settles or floats. The common industrial equipments are clarifiers and oil – water separator devises. The secondary treatment is designed to substantially degrade the biological content of the sewage. The common equipments are activated sludge, filters, biological reactors etc. The tertiary treatment is a polishing step to remove contaminants that missed in the primary and secondary treatment and removal of suspended solids, refractory organics and toxic components. Tertiary physical processes are filtration and carbon absorption. Chemical process includes precipitation, oxidation and neutralization. The biological processes involve biodegrading. Organisms such as bacteria, fungi, yeasts and algae are commonly used to break down the organic matters. The cell tissues are then removed from the treated water by physical method like clarification. The complete plants are manufactured mostly in the organized sector and many equipments are manufactured in the MSME Sector as well. The export and import of Water Pollution Control Equipment (HS code 842121) in 2013-14 was Rs 513.93 crore and Rs. 454.60 crore respectively whereas in 2014-15 (April-Nov) the same was Rs. 318.95 crore and Rs. 354.38 crore respectively.

Air Pollution Control Equipment Industrialization and urbanization have resulted in a profound deterioration of India's air quality. India's most severe environmental problem, come in several forms, including vehicular emissions and untreated industrial smoke. Air pollution in the country especially in metropolitan cities and large towns has assumed great significance with the adoption of stringent environmental control standards for various industries. Hence the pollution control equipment industry has acquired importance. Further judicial pronouncements have given a definite direction and urgency for adoption of air pollution control measures. The choice of control method depends on factors such as the nature of pollutant, flow-rate (amount of pollutant emitted), particle size and desired collection efficiency. The air pollution control equipments are broadly classified under the categories such as Settling Chambers, Cyclone and multi –cyclones, Bag Filters, Wet Scrubbers, Spray Tower, Venturi Scrubber, Ionizing Scrubber and Electrostatic Precipitator. The industry is in a position to do basic and detailed engineering and supply of plants on turnkey basis. The export and import of air pollution control equipment (HS code 842139) in 2013-14 was Rs 530.63 crore and Rs. 1069.65 crore respectively whereas in 201415 (April-Nov) the same was Rs. 429.82 crore and Rs. 953.70 crore respectively.

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Industrial Gears Industrial gears comprises mainly gears and gear boxes. Gears are used for two basic purposes: increase or decrease of rotation speed and increase or decrease of power or torque. Gears being an important part of a machine have immense usage within various industries. These industries include automotive industries, coal plants industry, steel plants industry, paper industry, in mining and many more. In these industries they behold a wide area of application. They are used in conveyors, elevators, kilns, separators, cranes and lubrication systems. Gearbox is defined as a metal casing in which a train of gears is sealed. The manufacture of gears and gear boxes involve high precision machining and accurate assembly as mechanical power is to be transmitted noiselessly and with minimum losses. Different types and sizes of gears such as spur gears, helical gears, worm gears, spiral gears and many other kinds are manufactured in the country. The demand for gears and gear boxes predominantly depend on the growth of industrial machinery, machine tools, and consumer & automobile sector. Considering the industrial growth prospects, particularly in automobile sector, the demand for gears and gear boxes is expected to grow at a healthy pace. The export and import of gears and gearing (HS code 848340) in 2013-14 was Rs. 739.59 crore and Rs. 1818.60 crore

1

Source: Indian Paper Manufacturers Association.

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respectively whereas in 2014-15 (April-Nov) the same was Rs. 669.03 crore and Rs. 1209.17 crore respectively. Note : Source:1. Export-Import Data – ExportImport Data Bank, D/oCommerce. 2. Production Data – Industrial Statistics Unit, DIPP Paper, Paper Board & News Print Industry India is one of the fastest growing paper market in the world. The growing knowledge base coupled with synergistic contributions from flagship schemes of the Government, namely, Sarva Shiksha Abhiyan, (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA), Inclusive Education for the Disabled at Secondary School (IEDSS), Adult Education and Skill Development Scheme, and Right to Education assured a robust demand for paper and paper board. The industry was delicenced in July, 1997. As per the present policy, FDI up to 100 per cent is allowed under automatic route for the pulp and paper sector. The installed capacity of pulp and paper mills is about 12.75 million tonnes per annum1 . The Indian paper industry has exhibited resilience and has shaped up well in the face of increasing competition from overseas players. However, the issues related to availability of fibrous raw material, technological obsolescence, costs, quality and environment still remain to be addressed.

Industries and Industrial & Technical Development

The CPCB Charter for Water Recycling and Pollution Prevention in Pulp and Paper Industries in Ganga River Basin is a comprehensive programme to reduce fresh water requirement, improve effluent quality and optimise water recycling through a holistic approach for pollution prevention in Pulp & Paper industries by emphasising on Process Optimisation, Adoption of Best Practices, Technology Up-Gradation and Quantum Improvement in effluent treatment through tertiary treatment.The implementation has resulted in significant reduction in fresh water consumption (3365 %) , waste water discharge (35- 75 % ) , overall improvement of ETP performance leading to reduction in pollution load discharged ( TSS reduction : 45-90 % , COD Reduction : 35 -85 % , BOD reduction : 25-90 &% , Color Reduction: 25 – 80 % ) and compliance to charter norms by over 80 Pulp & Paper Mills in Kashipur, Roorkee, Muzaffarnagar, Meerut & Moradabad Cluster. Paper & Paperboard Indigenous paper and paper board segment produces all the main varieties of paper that are in demand in the market. However, certain speciality paper such as security papers and check paper, etc., are being imported by the country. It is estimated that production for paper and paper board for the year 2013-14 was about 2 11.4 million tonnes . As regards

international trade in 2013-14, the country imported 1.19 million tons of paper and paper board whereas the export figures stood at 0.83 million tons3 . The import of paper is carried out under ITC-HS Code 4802-4823. Newsprint Industry The newsprint sector in the country is governed by the Newsprint Control Order (NCO), 2004. The total installed capacity of Newsprint in the country is almost 2.5million tonnes per annum in 2013-144 . As regards international trade, the country imported 1.38 million tons of newsprint under ITC HS Code 4801 in the year 2013-14 whereas its export is almost negligible.5 Rubber Goods Industry The Rubber Goods Industry excluding tyre and tubes consists of 4550 small and tiny units generating about 5.50 lakhs direct jobs. The rubber industry manufacturers a wide range of products like rubber cots and aprons, contraceptives, footwear, rubber hoses, cables, camelback, battery boxes, latex products, conveyor belts, surgical gloves, balloons, rubber moulded goods etc. The main raw materials used by the rubber goods manufacturing industry are Natural Rubber, various types of Synthetic Rubber, Carbon Black, Rubber Chemicals etc. The estimated turnover of Rubber Goods Industry in 201415 will be Rs.32,000 crore as against

Sourece:Indian Paper Manufactures Association. Sourece:http://www.commerce.nic.in/eidb/default.asp, Import Export Data Bank, Department of Commerce Source: Indian Newsprint Manufacturers Association Source: http://www.commerce.nic.in/eidb/default.asp, Import Export Data Bank, Department of Commerce

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Rs.27000 crore in 2013-14. The estimated turnover of the industry for the year 2015-16 will be Rs.35,000 crore. The Industry expect exports of rubber goods worth Rs.7000 crore in 2014-15 as against Rs.6400 crore in 201314. The rubber goods worth Rs.7,500 crore is estimated to be exported in 2015-16. The performance of rubber goods industry hardly needs any emphasis. From healthcare to footwear, high performance tyres to conveyer belts are indispensible for country’s infrastructure. Tyre & Tube Industry Tyres play an integral role to ensure mobility including movement of passengers and essential goods across the urban and rural landscape of the country using all types of vehicles ranging from carts, tractors, trucks and buses to the latest generation passenger cars that ply on the modern expressways. All types of tyres required to meet the domestic demand are manufactured in India. These tyres include Moped tyre weighing 1.5 Kg to Off the Road tyres for Earthmovers which weigh 1.5 tonnes, Bias Ply tyres to rugged all steel radial truck tyres to high performance passenger car radial and tubeless tyres etc. India is one of the few countries worldwide which has attained self sufficiency in manufacturing a wide range of tyres for all applications. Salient features of tyre industry: •

Indian Tyre industry consists of 39 Companies with 60 tyre manufacturing plants.

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Tyre & Tube production during 201415 will be 2705.49 lakhs tyres approximately Three Indian Companies (MRF Ltd., Apollo Tyres and J&K Tyres) are in the list of top 25 Global Tyre companies.



These large tyre companies account for approx. 92% of Industry turnover in value and tonnage terms.



All large Indian tyre companies have initiated major capacity expansion programmes to the tune of Rs.24,000 crore during 12th Five Year Plan period.

Export of Tyres & Tubes Indian tyres are exported to over 75 countries worldwide. India’s share in world tyre market is 5%. During 2013-14, export of tyres & tubes was to the tune of Rs. 10209.18 crore. During 2014-15 (April to December) the figure was Rs.7716.39 crore. The target for the year 2014-15 is to the tune of 10288.51 crore. Import of Tyres & Tubes Tyres are imported @ Custom Duty of 10%. Tyres are also imported at concessional custom duty under various agreements such as Asia Pacific Trade Agreement (8.6%), ASEANFTA (7%), Indo-Sri Lanka Agreement, I n d o - S i n g a p o re A g re e m e n t , SA F TA Agreement (5%) and India-Malaysia Trade Agreement (7%). During 2013-14, import of tyres was to the tune of Rs.2655.20 crore. During 2014-15 (April to December) the figure was Rs.2066.19 crore. The anticipated import value of Tyres & Tubes during 201415 is 2754.91 crore.

Industries and Industrial & Technical Development

Radialization of Tyres Radialization of passenger car tyres has reached 98% by the domestic industry and radialization of truck and bus tyres is 22% at present. All the major tyre companies have under taken Truck/Bus Radial Tyre manufacturing programmes which will increase the level of radalization to approximately 45-50% by the end of XII Five Year Plan. Quality (Control) Order for Pneumatic Tyres and Tubes for Automotive Vehicles A Quality (Control) Order for Pneumatic Tyres and Tubes for Automotive vehicles was notified by this Department on 19th November, 2009 in exercise of the power conferred vide Section 14 of the BIS Act, 1986. The Order prohibits import, sale or distribution of pneumatic tyres and tubes which do not conform to the specified Bureau of Indian Standards (BIS) standard and which do not bear the standard mark. This means the manufactures are required to obtain licences from BIS for use of standard mark to enable them to sell or distribute pneumatic tyres and tubes conforming to the specified standard. The Quality Control Order, 2009 has come into force w.e.f. 13th May, 2011. In terms of the Clause 3(1) (f) of the said Quality Control Order, a Committee has been constituted under the Chairmanship of Additional Director General of Foreign Trade to finalize the list of tyres which are not manufactured domestically and to be imported by Original Equipment Manufacturers (OEMs). The Committee last

reviewed and finalized a list of 612 sizes of tyres (not manufactured domestically) in December, 2014 which can be imported by OEMs. This list has been circulated among various stakeholders. The sub-clause(b) of Clause 2 of the above order has prescribed “Appropriate Authority” who will ensure implementation of the Order. In order to strengthen its implementation, on the request of the Ministry of Consumer Affairs, an appropriate officer from Bureau of Indian Standards (BIS) nominated by its Director General, has been included in this clause. Necessary amendment to the Order has accordingly been published in the Gazette of India vide S O 2200 (E) dated 01.09.2014 and has been circulated to all concerned. Salt Industry Introduction India is the third largest producer of salt in the world after China and USA with an average annual production of about 240 lakh ton. It is the second largest producer of iodized salt after China, with an average annual production of 60 lakh ton. At the time of independence, there used to be a shortfall in production of salt which was met through imports. Since then, India has made tremendous progress in production of salt, achieving self-sufficiency in 1953 and exporting salt to other countries. Salt is one of the essential items of human consumption. The per-capita consumption of salt in the country is estimated to be 14 Kg,

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ANNUAL REPORT 2014-15

which includes edible and industrial salt. The current annual requirement of salt in the country is estimated to be 60 lakh ton for edible use (including requirement of cattle) and 120 lakh ton for industrial use. India exported 59.61 lakh ton of salt valued at Rs.844..40 crore during 2013-14 & during 2014-15 (up to Dec.) exported 34.55 lakh ton, valued at Rs.556.22 crore. Salt is manufactured mainly by solar evaporation of seawater, sub-soil brine and lake brine. Sea salt constitutes about 82% of the total salt production in the country. Salt manufacturing activities are carried out in the coastal states of Gujarat, Tamil Nadu, Andhra Pradesh, Maharashtra, Karnataka, Orissa, West Bengal, Goa and hinterland State of Rajasthan. The 3 major salt producing States are Gujarat (79%), Tamil Nadu (11%) and Rajasthan (7%), which also cater to the requirement of other States. Cess is levied on Salt at the rate of Rs.3.50 per ton, under Salt Cess Act 1953 Salt works having an area up to 10 acres set up by individuals or group of individuals have been exempted from the payment of Cess. Similar salt works setup over the measuring above 10 acres but up to 100 acres is given 50% concession on the cess payable. Salt exported to foreign countries is also exempted from payment of cess. Private sector contributes to more than 91% of the salt production, the public sector about 1.6% and the co-operative sector, about 7.4%.

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Production The targeted and actual production of salt during the last five years are as under : Lakh MT Year

Target

Production

2010-11

200

186.10

2011-12

240

221.79

2012-13

240

245.47

2013-14

220

230.19

2014-15 (uptoDecember 2014.)

270

203.28

Salt of high purity is needed for iodization and to meet the needs of industrial sector. To achieve the required level of purity by upgrading raw salt, Salt Commissioners Office (SCO) has till date facilitated establishment of 112 salt washeries /refineries with an annual installed capacity of 125 lakh ton. All the units are registered with SCO and have commenced commercial production. S a l t wo rk s a n d a re a u n d e r S a l t Production There are about 11931 salt works of which only 5.7% i.e. 681 are big salt works contributing about 66% of total salt production of the country and remaining 34% of the total salt production is contributed by the small salt manufacturers. The total area under salt production is about 6.15 lakh acre. (Patta land, State Govt. land, Port land, Salt Department land). Of this 58570 acres land belongs to Salt Department

Industries and Industrial & Technical Development

for manufacture of Salt. The manufacturing activities provide direct employment to about 0.85 lakh persons.

registered with Salt Commissioner. The production and supplies of iodized salt during the last five years is as under :(Figures in Lakh MT)

Distribution of Salt Railways play an important role in transporting salt from the three major salt producing States to others. About 64% of edible salt is transported by rail from production centres and the remaining quantity by road/sea route . Salt is transported by rail under Preferential Traffic and sponsored programmes on requirement basis. Railways grant graded concession in freight for transportation of non refined iodized salt depending upon distance. Iodized Salt For human consumption, edible salt needs to be iodized to prevent and control Iodine Deficiency Disorders (IDD). SCO has been identified as the Nodal Agency for creation of adequate salt iodization capacity, monitoring production and quality of iodized salt at production centres and monitoring distribution of iodized salt in the country, under National Iodine Deficiency Disorders Control Programme (NIDDCP) being implemented by the Ministry of Health & Family Welfare. SCO has facilitated establishment of 777 salt iodization units including 112 refineries & washeries (capacity 125 lakh ton) with an annual installed capacity of 222 lakh ton upto March 2014. All the salt iodization units are

Year 2010-11 2011-12 2012-13 2013-14 2014-15 (up to Dec., 2014)

Production 62.20 62.00 61.81 58.47 48.94

Supplies 60.19 59.70 58.64 55.08 43.86

SCO periodically reviews the availability, price and quality of iodized salt, in association with state governments, iodized salt manufacturers, traders and other stake holders. Exports Export of common salt and iodized salt is permitted under Open General License (O.G.L) India exports salt to Japan, Vietnam, UAE, Qatar, Korea, China, Malaysia, Nepal, Bangladesh, Indonesia, Bhutan, Hong Cong and Singapore etc. Export of salt during the last five years. Year

Quantity in Lakh MT

Value in Lakh Rs.

2010-11

38.68

52062.45

2011-12

37.72

49225.34

2012-13

50.04

67943.95

2013-14 2014-15 (up to Dec., 2014.)

58.47

84439.78

34.55

55621.56

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ANNUAL REPORT 2014-15

L a b o u r We l f a r e A c t i v i t i e s a n d Development Works (i)

SCO is paying special attention to the welfare of labourers engaged in salt industry by extending financial assistance for executing various welfare schemes, viz. - Medical facilities to salt workers and their families. - Drinking water facilities in salt works. - Education facilities and financial assistance to the children of salt labourers. - Rest sheds and crèches in salt works. - Recreation facilities to labourers and their wards. - Cash Rewards to the children of Salt Workers.

In addition, financial assistance is provided for undertaking various schemes for the benefit of salt industry. The expenditure on development and labour welfare works during last five years is as under :(ii) Health-cum-Eye Camp & Meet

Sports

(Figures in Lakh Rs.) Year

Develo pment Works

Labour Other Total Welfare Works Expenditure Works

2010-11

62.5

46.23

-

108.73

2011-12

73.18

75.02

-

148.20

2012-13

5.66

91.44

24.63

121.73

2013-14 2014-15 (upto Dec., 2014)

33.92 0.80

38.13 1.21

49.33 21.37

121.38 23.38

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SCO has organized 27 general health cum eye camps & 8 Sports meets for benefit of salt labourers during the year 2012-13 In the financial year 2013-14, 27 health camps and 9 sports meets are organized. It is proposed to organized 31 General Health cum eye camps and 10 sports meets for benefit of salt labourers during the year 201415. (iii) Model Salt Farms SCO is making efforts to educate salt manufactures in general and small salt producers in particular for improving the quality of salt to meet the stringent standards of industrial salt, in order to compete in the international market. Two Model Salt Farms (MSF) have been established for providing scientific know-how for the construction of salt works and proper brine management and transfer of technology to the salt manufacturers, one in Ganjam in Odisha and the other in Nawa in Rajasthan. Both the Model Salt Farms have been established to demonstrate the production of good quality salt by proper brine management. These are used to impart training to the salt manufacturers/workers for improving the quality of salt by re-modelling and re-alignment of the existing salt works in association with the scientists of CSMCRI, Bhavnagar. The 3rd Model Salt Farm has recently been constructed at

Industries and Industrial & Technical Development

Markanam Salt Factory in Tamil Nadu. (iv) T r a i n i n g f o r t e c h n o l o g y upgradation With a view to educating salt workers/artisans for improving the quality of salt to meet the standards prescribed for industrial and edible salt, the Scheme “Training for technology upgradation” has been implemented by the Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, Government of India during the 12th Plan period. One training programme was organized at Vedaranyam in Chennai Salt Region in the month of March, 2014 and in the month of September, 2014, another training p r o g ra m m e wa s o r g a n i z e d a t Valinokkam in Tamil Nadu. Internal Policy Guidelines of DIPP to consider requests for transfer of land at places other than Mumbai and its suburbs, for public purposes. DIPP has issued Internal Policy Guidelines for dealing with requests received from Central Government Ministries / Departments, Central Public Sector Enterprises (CPSEs), State Government and State Public Sector Enterprises (SPSEs) for transfer of salt pan land owned by the Government of India through SCO, at places other than Mumbai and its suburbs for public purposes.

Only land declared surplus to the requirement of SCO shall be considered for transfer for public purposes. Land fit for salt production can be considered for transfer only in exceptional circumstances. Such identified land shall be offered first to other Central Government Ministries/ Departments, next to Central Public Sector Enterprises (CPSEs), failing which the Government of the State in which the land is situated and lastly to the State Public Sector Enterprises. The transfer of land will be on free hold basis. There shall be no transfer of land to private sector agencies. A token value of Rs.1 (Rupees One) will be charged for transferring land to Central Government Ministries/ Departments as per provisions of the General Financial Rules after obtaining the approval of the Minister in Charge of DIPP. For cases pertaining to CPSEs, State Governments and their enterprises, market value will be charged for the land. The market value of the land and its transfer shall be approved by the Minister in charge of DIPP. While considering requests for transfer of land, due consideration will be given to environment related issues and related restrictions. For lands under active salt cultivation and under consideration for transfer, the transferee agency shall pay compensation to the lessees, if any, for extinguishing the lease hold rights and also meet the cost of rehabilitation of the salt workers.

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9

CHAPTER

United Nations Industrial Development Organisation (UNIDO)

Department of Industrial Policy and Promotion, Ministry of Commerce and Industry is the nodal department in Government of India for all matters related to UNIDO operations in India. The United Nations Industrial Development Organization (UNIDO) based in Vienna, Austria was established in 1966 and became a specialized agency of the United Nations in 1985 to promote industrial development and cooperation at the global, regional, national and sectoral levels. India has been an active member of the Organization since its inception. UNIDO has at present 171 countries as its members. Aims and Objectives UNIDO is committed to the promotion and industrialization of the developing countries in order to ensure sustained socio-economic growth. In its role as a global forum, UNIDO generates and disseminates knowledge relating to industrial matters and provides a platform to the private sector, civil society organizations and the policy-making communities in general to enhance cooperation, establish dialogue and develop partnerships. UNIDO aspires to reduce poverty through sustainable industrial development. At the 15th Session of the UNIDO General Conference held in Lima, Peru, held from 2-6

96

December 2013, the Lima Declaration was adopted highlighting the new paradigm of UNIDO defined as “Towards Inclusive and Sustainable Industrial Development (ISID)”. UNIDO works towards improving the quality of life of the world’s poor by drawing on its combined global resources and expertise in the following three inter-related thematic areas: 1.

Poverty Reduction through Productive Activities;

2.

Trade Capacity-building; and

3.

Energy and Environment.

Organization and its Policy-making Organs The Organization is headed by a DirectorGeneral. The main policy making organs of UNIDO are:



General Conference (GC) The General Conference determines the guiding principles and policies of the Organization and approves the budget and work programme. Every four years, the Conference appoints the Director-General. It also elects the members of the Industrial Development Board and of the Programme and Budget Committee. The Conference meets every two years.

United Nations Industrial Development Organisation (UNIDO)



Industrial Development Board (IDB) The Board has 53 members, elected for a four-year term on a rotational basis. It reviews the implementation of the work programme, the regular and operational budgets and makes recommendations to the Conference on policy matters, including the appointment of the Director-General. The Board meets once a year.



Programme and Budget Committee (PBC) The Committee consists of 27 members, elected for a two-year term. It is a subsidiary organ of the Board which provides assistance in the preparation and examination of the work programme, the budget and other financial matters. The Committee meets once a year.

India’s Contribution India is a founder member of UNIDO. It is both a recipient as well as a contributor to the programmes of UNIDO. India contributes to the regular budget of UNIDO, which currently amounts to Euros 0.7 million annually. In addition, India also makes an annual voluntary contribution of US $ 1.2 million to the Industrial Development Fund (IDF) of UNIDO. Both of these contributions are made from the NonPlan provision. This contribution has two components;

a) A General Purpose Component of US $ 0.1 million which is utilized by UNIDO for its technical cooperation activities in developing countries. b)

A Special Purpose Component of US $ 1.1 million utilized for implementation of projects in India.

Country Programme of Cooperation between the Republic of India and UNIDO-2013-17 The Country Program of Cooperation between the Republic of India and UNIDO 2013-17 is under implementation. The Program aims at raising the competitiveness of industrial enterprises through technology-oriented initiatives to increase productivity, quality, energy efficiency, occupational health and safety and the environmental sustainability of industrial production. Country Programme 2013-17 has two programmatic components viz (i) Green Industrial Development of India and (ii) Inclusive Economic Development with Crosscutting themes. The Program will be implemented by UNIDO with budget to the tune of US$ 101.15 Million. DIPP holds meetings of National Steering Committee of Country Programme biannually with other stakeholders (i.e. Central Ministries, Industries Associations and UNIDO representatives) for approval of projects and regular monitoring. Currently DIPP is considering five projects related to Cement Industry, Paper & Paper Pulp Industry, Bicycle & Bicycle Parts Industry, Leather Industry and Stone Industry under this programe.

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Important developments during 2014 The following project were successfully completed in 2014 Ø Khagra Brass and Bell Metal Ø Te c h n o l o g y U p g r a d a t i o n a n d Productivity enhancement of the Machine Tools Industry in India Ø National Programme for Developing Plastic manufacturing industry in India Ø Te c h n o l o g y u p g r a d a t i o n a n d productivity enhancement of foundry industry at Coimbatore and Belguam

Other Developments in 2014 Ø India retained its membership in both PBC and IDB. Ø In keeping with the Lima declaration on Sustainable Inclusive Industrial Development, DIPP remodelled its centre into International Centre for Inclusive and Sustainable Industrial Development IC-ISID by merging the two erstwhile centers namely ICAMT and UCSSIC. Ø Video Conferencing with UNIDO was initiated for realtime supervision and monitoring of the projects funded by DIPP.

Achievements of UNIDO Centre for South-South Industrial Cooperation (UCSSIC), New Delhi The UNIDO Centre for South-South Industrial Cooperation (UCSSIC) was established by UNIDO at New Delhi in

98

December 2006 with full financial support of the Government of India. Phase-I of the Centre was operationally completed in April 2013. UNIDO UCSSIC has now been merged with ICAMT into one Centre viz. IC-ISID from January 2015 for a period of 5 years. The overall developmental goal of the Centre’s operation is to contribute to social, economic and environmental development in least developed countries, mainly in Africa and Asia. The main objective of the Centre is to enhance South-South industrial cooperation between the host country (India) and developing countries by way of (1) identification, design and implementation of technical cooperation (pilot) projects and programmes on a demanddriven basis mainly in LDCs, (2) functioning as matchmaker, catalyst and broker between interested development parties. This is realized by identifying and mobilizing technical, financial, managerial, and other resources required within the framework of South-South industrial cooperation, in order to achieve overall development goals. UCSSIC participated in Conference on “Africa: A Land of Opportunities” held on 20 November 2013 organized by PHD Chamber of Commerce and Industry in New Delhi jointly with Ministry of External Affairs. This e ve n t f a c i l i t a t e d i n t e ra c t i o n w i t h Ambassadors/High Commissioners/Trade Consular’s from as many as 20 Embassies/ high commissions of LDCs in Africa based in New Delhi. Hon’ble External Affairs Minister delivered a valedictory address.

United Nations Industrial Development Organisation (UNIDO)

To begin with, in 2013, DIPP has approved 3 Africa based projects to be undertaken 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 ecofriendly alternative to chemical pesticides in West Africa. Also three project proposals have been given “In-Principle” approval to conduct prepatory phase. These projects will be taken forward by the new centre ICISID. International Centre for Advancement of Manufacturing Technology (ICAMT), Bangalore UNIDO ICAMT promotes manufacturing technologies and innovations to enhance

industrial competitiveness in India and other developing countries. The 3 project under ICAMT namely Machine Tools, Plastic Industry & Foundry Industry were successfully completed in August 2014. DIPP, on the recommendations of the Evaluation Report of ICAMT, devised a new center by reformatting the existing UNIDO centres viz. ICAMT and UCSSIC and renamed it as “International Centre for Inclusive and Sustainable Industrial Development” (ICISID). The ICISID echoes the theme of UNIDO’s post-2015 development agenda i.e. Inclusive and Sustainable Industrial Development and aims to bring best practices and new improved manufacturing technology to Indian industry and share India’s experience in cluster based development within the framework of South-South Cooperation. The new centre would be a model centre to promote targeted interventions in selected Industrial and Manufacturing Sectors.

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10

CHAPTER

Foreign Direct Investment

General Industrial policy ‘FDI’ means investment by non-resident entity/person resident outside India in the capital of an Indian company under S c h e d u l e 1 o f Fo r e i g n E x c h a n g e Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2000. Role of Department of Industrial Policy & Promotion: The Department of Industrial Policy & Promotion (DIPP) is the nodal Department for formulation of the policy of the Government on Foreign Direct Investment (FDI). It is also responsible for maintenance and management of data on inward FDI into India, based upon the remittances reported by the Reserve Bank of India. The Department also plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. International Cooperation for industrial partnerships is solicited both through bilateral as well as m u l t i l a te ra l a r ra n g e m e n t s . I t a l s o coordinates with apex industry associations, in their activities relating to promotion of industrial cooperation, through both

100

bilateral as well as multilateral initiatives intended to stimulate the inflow of foreign direct investment into India. FDI POLICY The Government has put in place a liberal policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities. There is a small list of sectors, which are either prohibited for FDI, or are subject to restrictions in the nature of equity caps, entry route or conditionalities. Further, the FDI policy is reviewed on an ongoing basis, with a view to making it more investor-friendly. Significant changes have been made in the FDI policy regime in recent times, to ensure that India remains an i n c re a s i n g ly a t t ra c t ive i nve s t m e n t destination. DIPP plays an active role in the liberalization and rationalization of the FDI policy. Towards this end, it has been constructively engaged in extensive stakeholder consultations on various aspects of the FDI policy. SECTORS PROHIBITED FOR FDI F D I i s p ro h i b i t e d i n t h e fo l l o w i n g activities/sectors: (a)

Lottery Business including Government /private lottery, online lotteries, etc.

Foreign Direct Investment

(b) Gambling and Betting including casinos etc. (c)

Business of chit fund

(d) Nidhi company (e)

Trading in Transferable Development Rights (TDRs)

(f)

Real Estate Business or Construction of Farm Houses

(g) Manufacturing of Cigars, cheroots, cigarillos and cigarettes, of tobacco or of tobacco substitutes (h) Activities/sectors not opened to private sector investment including Atomic Energy and Railway Transport (other than permitted activities as mentioned in ‘Consolidated FDI Policy Circular 2014’). Press Note 1 of 2014: Pharmaceuticals: The Government reviewed the FDI policy in Pharmaceuticals sector and decided that the existing policy would continue with the condition that ‘non-compete’ clause would n o t b e a l l o we d e xc e p t i n s p e c i a l circumstances with the approval of the Foreign Investment Promotion Board. Press Note 7 of 2014: Defence: The Government vide Press Note 7 /2014 dated 26th August, 2014 has allowed FDI upto 49% on approval route in Defence sector with certain conditions e.g., the applicant company seeking FIPB approval

be an Indian company owned and controlled by resident Indian citizens. Above 49% the proposal will be routed to Cabinet Committee on Security on a case to case basis, wherever it is likely to result in access to modern and state-of-art technology in the country. FDI investment has been allowed to be made in the Defence sector upto 24% on automatic route. A number of conditions have been relaxed /removed making the sector more investor friendly. Press Note 8 of 2014: Railways: The Govt. (vide PN 8/2014 dated 26th August, 2014) has allowed 100% private and FDI investment under automatic route in Rail infrastructure in construction, operation and maintenance of (i) Suburban corridor projects through PPP, (ii) High speed train projects, (iii) Dedicated freight lines, (iv) Rolling stock including train sets, and locomotives/coaches manufacturing and maintenance facilities, (v) Railway Electrification, (vi) Signaling systems, (vii) Freight terminals, (viii) Passenger terminals, (ix) Infrastructure in industrial park pertaining to railway line/sidings including electrified railway lines and connectivities to main railway line and (x) Mass Rapid Transport Systems ) subject to meeting sectoral laws and with the condition that FDI beyond 49% in sensitive areas from security point of view will be approved by the Cabinet Committee on Security on a case to case basis.

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ANNUAL REPORT 2014-15

Press Note 10 of 2014: Construction Development: The Government has issued the Press Note No. 10 on 3rd December, 2014 amending the FDI policy regarding Construction Development Sector. Amended policy includes easing of area restriction norms, reduction of minimum capitalization and easy exit from project. Further, in order to give boost to low cost affordable housing, it has been provided that conditions of area restriction and minimum capitalization will not apply to cases committing 30% of the project cost towards affordable housing. Press Note 2 of 2015: Medical Devices Vide Press Note 2 of 2015 effective from 21.01.2015, the Government allowed 100% FDI on automatic route for manufacture of medical devices. Press Note 3 of 2015: Insurance Vide press Note 3 of 2015, dated 02/03/2015 FDI policy on Insurance Sector

102

has been reviewed to allow FDI upto 49% with 26% on automatic route, and FDI beyond 26% and upto 49% on Governement approval route. FDI Inflows Total FDI into India, since April, 2000 including equity inflows, reinvested earnings and other capital, is US $ 355.42 billion (April, 2000-December, 2014). During the calendar year 2014 (i.e. during January-December, 2014), FDI equity inflows of US $ 28.78 billion have been received. This represents increase of 31% over the FDI equity inflows of US $ 22.04 billion received during the corresponding period (January-December-2013) of the previous calendar year (2013). During the financial year 2014-15 (i.e. AprilDecember 2014), FDI equity inflows of US $ 21.05 billion have been received. This represents an increase of 27% over the FDI equity inflows of US $ 16.56 billion received during the corresponding period (April 2013 – December 2013) of the previous financial year (2013-14).

11

CHAPTER

Investment Promotion & International Cooperation (IP&IC)

Investment Promotion and International Cooperation (IP&IC) for enhancement of external economic engagement is undertaken through bilateral as well as multilateral arrangements. There are four IP&IC divisions in DIPP to carry out the said functions, viz. IP&IC-I (Asia–Oceania region), IP&IC-II (Europe), IP&IC-III (North & South America and CIS Countries) and IP&IC-IV (Africa). IP&IC Divisions are responsible for dissemination of information about investment climate and opportunities in India and investment facilitation.

(ii)

O rga n i z a t i o n o f b u s i n e s s a n d investment promotion events;

(iii) Project Management , Capacity Building, Monitoring and Evaluation; (iv)

Establishment of G2B portal/ e-Biz Pilot Project;

(v)

Foreign Travel;

(vi)

Setting up of country focus desks for promoting investment;

(vii) Multi media audio visual campaign; and (viii) Creation of a dedicated investment promotion agency.

IP&IC Divisions’ endeavor to increase economic cooperation with developing, as well as developed countries, for mutual benefits through different fora, such as Joint Commissions/ Joint Committees, other bilateral channels like interaction with the delegations visiting the country, organizing visits abroad for discussions on issues of mutual interest and business/ investment meets between Indian and foreign entrepreneurs, with the aim of stimulating foreign investment into India.

(iii) The India-Belarus Inter Governmental Commission for Economic, Trade, Industrial, Scientific, Technological and Cultural Cooperation.

IP&IC Divisions implement the ‘Scheme for Investment Promotion’ which has the following components:-

(iv) The India-Sweden Joint Commission for Economic, Industrial, Technical and Scientific Cooperation.

(i)

(v) The India-Poland Joint Commission for Economic Cooperation.

Organization of Joint Commission Meetings;

IP&IC Divisions act as nodal point for the following Joint Commissions/ InterGovernmental Commissions: (i)

The India-Libya Joint Commission

(ii) The India-Hungary Joint Commission on Economic Cooperation.

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ANNUAL REPORT 2014-15

The major activities undertaken by IP&IC Divisions during 2014-15 were as under: (A) M a j o r I nve s t m e n t p ro m o t i o n events/Conferences/JCMs held abroad Ø St.

Pe te r s b u r g I n te r n a t i o n a l Economic Forum: The Forum was held during May 22-24, 2014 in St. Petersburg, Russian Federation which was attended by an official cum business delegation from M/o Commerce & Industry. During the event, panel discussions were held on key topics including issues relating to international trade, investment and infrastructure, financial regulation etc.

Ø An MoU

has been signed between the Ministry of Commerce and Industry of the Republic of India and the Ministry of Commerce of the People’s Republic

of China on ‘Cooperation on Industrial Parks in India’ on June 30, 2014 at Beijing. Ø BRICS Business Council: The meeting

of the Council was held on 14-15 July, 2014 during 6th BRICS Summit in Fortaleza, Brazil. Shri Onkar S. Kanwar, Chairman and Managing Director of Apollo Tyres Limited, Co-Chair of the Council from the Indian side alongwith 4 top CEOs participated in the meeting. The BRICS Business Council supported the move to set up new development bank. Indian side emphasized to promote sectors such as infrastructure, financial services, energy and green economy, manufacturing and skill development. Details of the projects in these sectors were also discussed in the Council meeting.

The Minister of State for Commerce & Industry (Independent Charge), Smt. Nirmala Sitharaman Signing the MoU on cooperation among BRICS, July 14-15, 2014.

104

Investment Promotion & International Cooperation (IP&IC)

Ø G20

Trade Ministers Meeting: MoS (I/C) for Commerce & Industrymet her counterpart Minister of South Africa on the sidelines of G20 Trade Ministers Meetingheld in Sydney, Australia during July 18-19, 2014. During the meeting she also met Andrew Robb, Minister of Trade & Investment, Australia; Mr. Tim Groser, Minister of Trade, Minister for Climate Change Issues and Associate Minister of Foreign Affairs New Zealand; Mr. Yoon Sang-jick, Minister of Trade, Industry and Energy, Republic of Korea; Saudi Arabia’s Minister of Commerce and Industry, Tawfiq bin Fouzan Al-Rabiah; and Indonesia’s Minister for Trade, Muhammad Lutfi.

Ø Korea-India

Business Forum: The Forum was organized by KOTRA (Korean Trade-Investment Promotion

Agency) and CII (Confederation of Indian Industry) in Seoul, South Korea on September 17-18, 2014. The event was attended by Secretary, DIPP. During his visit, SIPP also had a meeting with Mr. Moon Jae-do, ViceMinister, M/o Economy, Trade and Energy, RoK. Ø Regional

Pravasi Bharatiya Divas: Secretary, DIPP participated in the Second Diaspora Engagement meet of Overseas Indian Facilitation Centre (OIFC) during Regional Pravasi Bharatiya Divas from October 16-18, 2014 at London.

Ø Milken

Institute’s London Summit, London: MoS (I/C) for Commerce& Industry visited London during October 27-28, 2014. During the visit she participated in Milken Institute’s London Summit, 14th London Global

The Minister of State for Commerce & Industry (Independent Charge),Smt. Nirmala Sitharaman Addressing the Investors’ Seminar, at India House, London on October 27, 2014.

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ANNUAL REPORT 2014-15

Convention on Corporate Governance and Sustainability and had bilateral meetings. Ø India

ASEAN-Investment Agreement was signed on November 12, 2014 under the framework of India ASEAN Free Trade Agreement in Myanmar.

Ø ‘Make

in India’ event in Washington DC: Shri Amitabh Kant, Secretary, Department of Industrial Policy & Promotion, visited Washington on January 18-20, 2015 to participate in ‘Make in India’ event in Washington DC on January 20, 2015. He also held bilateral meeting with US Government official and interacted with business representatives.

Ø World

Economic Forum 2015: Secretary, DIPP led a high level official cum business delegation to Davos (Switzerland) during January 21-24, 2015 and participated in the Annual Meeting of World Economic Forum (WEF) and had bilateral meetings.

Ø India-Sweden

Joint Commission Meeting: The 17th session of IndoSwedish Joint Commission for Economic, Industrial and Scientific Cooperation was held in Stockholm, Sweden on January 29-30, 2015. The Indian side was led by Mr. Amitabh Kant, Secretary, DIPP and the Swedish side was led by Mr. Oscar Stenstrom, State Secretary, Ministry of Enterprise and Innovation, Sweden. A Protocol was signed during the meeting.

(B) Major Investment Promotion events/ Conferences/ Joint Commission Meetings held in India.

106

Ø India-Russia

Working Group on Modernization and Industrial Cooperation: The third meeting of India-Russia Working Group on Modernization and Industrial Cooperation was held in New Delhi on October 10, 2014 which was coChaired by Secretary,DIPP from the Indian side and Deputy Minister of T r a d e a n d I n d u s t r y, R u s s i a n Federation. A Protocol was signed at the conclusion of the meeting incorporating proposals identified by the two sides in the areas of industrial cooperation in Civil Aviation, Fertilizer, Mining and Modernization of Industrial sector.

Ø India-LAC

Investment Conclave: India-LAC Investment Conclave,with the theme – ‘Lets Grow Together’ was organized in New Delhion October 1617, 2014. The 2-day Conclave was inaugurated by Smt . Nirmala Sitharaman, MoS (I/C) for Commerce and Industry, Government of India. The conclave was attended by government and business representatives from 23 LAC countries. Bilateral meetings were also held with the visiting Ministers of Latin American and Caribbean countries.

Ø India-Russia

Working Group on Priority Investment Projects: The second meeting of the Working Group on Priority Investment Projects was held in New Delhi on October 27, 2014 and was co-Chaired by Secretary, IPP from the Indian side and Deputy Minister of Economic Development of

Investment Promotion & International Cooperation (IP&IC)

the Russian Federation from the Russian side. Specific projects which needed to be implemented on priority basis were discussed and identified. A Protocol was signed on the conclusion of the meeting. Ø India-Russia

Forum on Trade and investment: The India-Russia Forum on Trade and investment was held in New Delhi on November 5, 2014. The Deputy Prime Minister of the Russian Federation Mr. D. Rogozin and MoS(I/C) for Commerce and Industry Smt. Nirmala Sitharaman, participated in the forum along with other official and business delegates from the two countries. Round tables discussions were organized in specific sectors in Manufacturing, Pharma and H e a l t h c a re a n d I n f ra s t r u c t u re Development which were attended by senior government officials from the ministries concerned of the

two countries and business representatives. Ø Knowledge

Expo, 2014: DIPP, in partnership with Confederation of Indian Industry (CII) organized the Knowledgexpo at India Expo Center, Greater Noida on November 20-21, 2014 with the objective to bring together business representatives, policy makers and thought leaders to delve into topics, issues and trends in the knowledge sector.

Ø India-US

CEOs Forum: The first meeting of the reconstituted India-US CEOs forum was organized in New Delhi during the visit of US President to India on January 26, 2015. Prime Minister of India and President of the United States participated in the Forum meeting. Shri Arun Jaitley, Minister of Finance, Corporate Affairs and Information and Broadcasting and Minister of State (I/C) for Commerce

First meeting of the India – US CEOs Forum, January, 26, 2015.

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and Industry Smt. Nirmala Sitharaman also attended the meeting.

Indian Industry (CII) has undertaken 8th Industrial Services Training Programme (8th ISTP) for senior representatives of African Chambers of Commerce during 9-18 March, 2014 at New Delhi. The objectives of the training programme is to strengthen Chambers/Industry Associations activities/ services, assess requirements of the industry in the modern era and ways to address them, the art of consensus building, network and partnership building, promotion of industrial growth, SMEs, social development and regional cooperation. Participants from 18 African countries attended the Programme.

Ø India-US

Business Summit: IndiaUSBusiness Summit was organized in New Delhi during the visit of US President to India on January 26, 2015. This summit was addressed by Hon’ble Prime Minister of India and President of the United States.

(C) Other important activities Cooperation in the field of advanced training of corporate executives from India in Germany through Indo-German Managers’ Programme As part of the Joint Declaration signed between India and Germany in 2008, Indian managers have been undergoing training in Germany. The programme has been extended till 2014 through a new Joint Declaration signed in 2012. The 1st meeting of the Steering Committee of the IndoGerman Managers’ Programme was held in Berlin on January 13, 2014. It was decided in the meeting that the Programme would continue beyond 2014 also by signing another Joint Declaration. The programme is being implemented by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), GmbH from Germany and CII and FICCI from India. DIPP is handling the inter se coordination between the two sides. About 400 Indian managers have undergone the training since the launch of the programme. Projects under India Africa Forum Summit II •

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Industrial Services Training Programme (ISTP): Confederation of



India Africa Investment Guides: Invest India, under India Africa Forum Summit II, prepared the India Africa Investment Guides for five regions of Africa. The Business Guides highlight investment policies in important countries of each region sectors of importance in each region, processes involved in setting up business, taxation issues, important projects etc. The Investment Guides for East African Community (EAC), Economic Community of Central African States (ECCAS), South African Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA) were launched on 20.08.2014 during the meeting of the 3rd India-Africa Regional Economic Community (REC) meeting held in New Delhi.

12

CHAPTER

Protection of Intellectual Property Rights

Introduction Intellectual Property Rights are private rights recognized within the territory of a country and given to (or conferred upon) an individual(s) or a legal entity in order to protect their creativity or innovation. India has a well established legislative, administrative and judicial framework to safeguard Intellectual Property Rights which meet the country’s international obligations while utilizing the flexibilities provided in the international regime to address its developmental concerns. India’s comprehensive legal framework on IPRs includes the Patents Act 1970 as amended in 2005, the Trade Marks Act 1999 (as amended in 2010), the Geographical Indications of Goods (Registrations and Protection) Act 1999, the Designs Act 2000, the Copyright Act 1957, the Semiconductor Integrated Circuits Layout Design Act 2000 and the Protection of Plant Varieties and Farmers Rights Act 2001. This Department is also responsible for coordinating all issues relating to the World Intellectual Property Organization (WIPO) Department of Industrial Policy and Promotion (DIPP) and Intellectual Property Rights Ø The Department

of Industrial Policy & Promotion is concerned with

legislations relating to Patents, Trade Marks, Designs and Geographical Indications. These are administered through the Office of the Controller General of Patents, Designs and Trade Marks (CGPDTM), a subordinate office, with headquarters at Mumbai as under: a)

The Patents Act, 1970 (amended in 1999, 2002 and 2005) through the Patent Offices at Kolkata (HQ), Mumbai, Chennai and Delhi.

b)

The Designs Act, 2000, through the Patent Offices at Kolkata (HQ), Mumbai, Chennai and Delhi.

c)

The Trade Marks Act, 1999 (amended in 2010), through the Trade Marks Registry at Mumbai (HQ) Chennai, Delhi, Kolkata and Ahmedabad.

d)

The Geographical Indications of Goods (Registration & Protection) Act, 1999, through the Geographical Indications Registry at Chennai.

Intellectual Property Appellate Board (IPAB) An Intellectual Property Appellate Board (IPAB) has been set up at Chennai to hear appeals against the decisions of Registrar of Trademarks, Geographical Indications and the Controller of Patents.

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Other IP Legislations •

Copyright is protected through Copyright Act, 1957, as amended in 2 0 1 2 - a d m i n i s t e re d by the Department of Higher Education.



Layout of transistors and other circuitry elements is protected through the Semi-conductor Integrated Circuits Layout-Design Act, 2000administered by the Department of Electronics and Information Technology.



New varieties of plants are protected through the Protection of Plant Varieties and Farmers’ Rights Act, 2001 - administered by the Department of Agriculture and Cooperation.



The Department has taken multipronged strategy to develop an Intellectual Property regime in the country to promote creativity and to develop the culture of respect for innovations and creativity. These are : o Meeting international obligations o Safeguarding national interests o Modernize administration o Creating awareness

National Design Policy:National Design Policy was announced in 2007. This Policy envisages a key role for design in enhancing the competitiveness of Indian industry. The focus is on spread of

110

design education, branding of Indian designs and the establishment of a Design Council. This period witnessed both the expansion and upgradation of India’s premier design institution i.e. the National Institute of Design (NID) with three campuses at Ahmedabad (main campus),Gandhinagar (PG Campus), and Bangalore (R&D Campus) . Intake of students at NID was substantially increased and new courses introduced at Undergraduate and Post Graduate levels. India Design Council (IDC), a Society under the aegis of DIPP was constituted on 2.3.2009 as mandatedby the policy. The National Institute Design Act, 2014 declaring NID, Ahmedabad as an ‘Institution of National Importance’ has been notified on 18th July, 2014. The department is now in the process of establishing 4 new NIDs at, Jorhat (Assam), Bhopal (Madhya Pradesh) & Kurukshetra (Haryana), and Vijayawada (Andhra Pradesh). Bilateral negotiations:India is negotiating an IPR chapter as part of the proposed India EU Bilateral Trade and Investment Agreement (BTIA) and European Free Trade Association (EFTA) and the Regional comprehensive Economic Partnership Agreement. The negotiations are circumscribed by the TRIPS Agreement and the Domestic Legislations. Memorandum of Understanding was signed between DIPP & EPO for cooperation in the field of capacity building, human resource development and awareness generation in the field of patents.

Protection of Intellectual Property Rights

Plan Schemes in Intellectual Property Offices Recognizing the importance of modernization of Intellectual Property Offices for the economy, DIPP has implemented Plan schemes during the 11th Five Year Plan with the objective of modernization and strengthening of Intellectual Property Offices, namely, Modernization and Strengthening of Intellectual Property Offices (MSIPO) and Rajiv Gandhi National Institute of I n t e l l e c t u a l P ro p e r t y M a n a g e m e n t (RGNIIPM). These schemes have also been continued during the 12th Plan. Plan Scheme for Modernization and Strengthening of Intellectual Property Offices (MSIPO) DIPP has implemented a plan scheme for Modernization and Strengthening of Intellectual Property Offices during the 11th Five Year Plan. The total Plan outlay for this scheme was Rs 300 crores. The scheme aims at strengthening the capabilities of Intellectual Property Offices in India and includes the components for physical infrastructure, human resources, digitization of IP records, library and awareness creation.. By end of the Xth Plan, updating of IP-legislations for making them TRIPS compliant, simplification of IP procedures, construction of new office complexes at four metro cities to have all IPadministration under one roof and introducing basic level of computerization was accomplished.

The Modernization Scheme has been continued in the 12th Plan for establishing a vibrant IP regime, reducing the backlog to a manageable level and addressing the problem of handling ever increasing workload at IPO by inducting sufficient manpower, further strengthening of IT enablement and automation in IPO, achieving the best standards in IP processing, strengthening public delivery of IP services and achieving highest level of user-friendliness and transparency in functioning. The project proposal has been recast and limited to Rs. 309.60 Cr. of which Rs. 258 Cr. (12th plan outlay) is to be implemented in the current plan with a spillover of Rs. 51.60 Cr. in the 13th plan. The salient achievements in the recent past are as follows:i.

All the legislations related to patents, designs, trademarks and geographical indications have been amended/ enacted to comply with India’s international obligations under the A g re e m e n t o n Tra d e Re l a te d Intellectual Property Rights (TRIPS).

ii.

Infrastructure Development:

o

Four state of the art, modern and integrated Intellectual Property Office buildings have been constructed for housing the Patents, Designs, Trademarks and Geographical Indications offices at New Delhi, Kolkata, Chennai and Mumbai.

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o ISA/IPEA Building Delhi:

iv.

The construction of the ISA/IPEA Building, as an extension to IPO building at Dwarka, Delhi has been completed and isfully functional.

Digitization of IP records, which is n e c e s s a r y fo r a u to m a t i o n a n d computerized processing of IP applications, was initiated during the 10th Plan. At present, digitisation of most of the old Patents, Trade Marks and GI database has been completed. Digitization of new IP records is a continuous process. All the current IP records are digitized as soon as they are received in IP Offices so as to enable computerized processing of applications.

o TMR Complex Ahmedabad: A new building been constructed through NBCC at Ahmedabad for accommodating Trade Marks Office and Intellectual Property Office Archives. iii.

Human Resources: o 303 additional posts of technical personnel including 200 posts of Examiners of Patents and Designs and supporting staff were sanctioned for the Patent Offices and 111 additional posts including 37 posts of Examiners of Trademarks were sanctioned for Trade Marks Registry during the 11th Plan. Majority of these posts h ave b e e n f i l l e d u p exc e p t those where administrative and procedural requirements are under process. o Under the 12th Plan, additional manpower for clearing the backlog of pending IP applications has been approved which includes additional 1033 plan posts in the Office of CGPDTM during the 12th plan comprising 666 posts for Patents & Designs and 367 posts for Trademarks and GI at various levels.

112

Digitization of IP Records:

v. Patent Databases for Search: In order to strengthen patent search facility and fulfil requirement for PCT minimum documentation for ISA/IPEA, patent databases like Questel, STN and a host of non-patent literature databases have been subscribed and the same has been made available at all Patent Office locations. Patent Office is in the process of developing an internal comprehensive search system, which will perform federated search in patents and non-patent literatures through an integrated platform. IPAIRS 2.0 (New Version of IPAIRS) for patent search has been launched. vi.

IT Upgradation: o

State of the art ICT infrastructure including data centre, high-end servers, computers, data storage facility etc. has been established at all locations.

Protection of Intellectual Property Rights

o

o

Modern facilities and communication infrastructure s u c h a s L A N , WA N , V P N connectivity through 34 Mbps NICNET connectivity has been provided at all IPO locations. The server facility is being upgraded to accommodate all the data of patents and trademarks and enable smooth e-filing of IP applications and subsequent documents as well as upgrade the currently used e-processing software for processing of IP applications.

o

Application software modules which are routinely used for processing of patents, designs and trade mark applications are upgraded regularly as and when need arises to make the whole IP processing/ grant/ registration more user-friendly, simple and transparent.

o

The system of QR Code(s) has been introduced. The code(s) are printed on the application filing receipts issued by Patents Office and CBR (Cash Book Receipt), notices and renewal intimation issued by the TMR Offices. This facility will enable the stakeholders to verify the contents of the above correspondence issued by respective offices and, thus, will further enhance transparency in the public delivery system.

vii.

o

As a result of the improved IT infrastructure and systematic efforts for creating an electronic environment through Electronic Modules, the disposal of patent and trademark applications is available in the official website on a real-time basis.

o

The upgradation of IP Data Centre and shifting the same at NIC/NICSI premises has been undertaken.

Comprehensive Payment gateway (including internet banking, Debit and Credit Cards) for payment of patent and trademark fees integrated to the e-filing system has been launched on 8th September, 2014 to extend the facility of online payment gateway for Patent and Trademarks through multiple banks (about 55 banks) with Central Bank of India (CBI) as a focal and accredited bank. Due to introduction of Comprehensive Payment gateway, the online filing is expected to increase further for both patents and trademarks .

viii. Fee Concession for MSME: Through the Patents (Amendment) Rules 2014, the Fee concession to MSME sectorhas been provided in all patent fees. For this purpose, a third category of applicant for patent has been introduced in the form of “small entity” and the fees charged to them has been fixed in between the fees for a natural person and for all persons other than natural persons (except a small entity).

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ix.

x.

A comprehensive and dynamic Patent Search Portal has been developed in the IPO website. The patent search facility in the website has been considerably strengthened. The status of patent applications including publication, examination and grant as well as all post- publication patent documents are available freely for public search in the website. A modified portal for E- Register of Patents has been made available in the website. e-Filing: o System for patents and trademarks is in operation for last 7 years o Comprehensive e-Filing Services for Patents were launched by Secretary, Department of Industrial Policy and Promotion, M/o Commerce and Industry, Government of India on 15th December, 2012. o E-filing module has been made fully compatible for online filing of all 28 forms and entries of the first Schedule of Patents (Amendment) Rules 2014. Similarly, facility for online filing of all Trade Mark Forms has been provided. o The comprehensive e-filing facility covering all Forms was made available earlier by IPO for patents and for trademarks. Further, 10 % surcharge in fees on physical filing has been introduced through the amendment of Patents

114

(Amendment) Rules 2014 with the objective of promoting online filing. The initiatives have led to an increase of 75% in online filing in the category of patents. xi.

The Manual of Patent Office Practice and Procedures has been prepared to ensure uniformity in operation and the same is available on the website. Further, the “Guidelines for Processing of Patent Applications relating to Traditional Knowledge and Biological Material” and “Guidelines for Examination of Biotechnology Applications” have been published in the official website. The "Guidelines for examination of patent applications in the field of Pharmaceuticals have been posted on in the official website on 29th October, 2014.

Xii. Trade Mark (Amendment) Act, 2010: Implementation of Madrid Protocol for International Registration of Trade Marks The Trade Mark (Amendment) Bill was passed by the Parliament and assented to by the President on 21.9.2010. Consequently, the provisions of the amended Trade Mark (Amendment) Act, 2010 were brought into force with effect from 8th July 2013. The necessary amendments in the Trade Marks Rules 2002 have also been made. The amended act and rules enabled India to

Protection of Intellectual Property Rights

accede to the Madrid Protocol which is a simple, facilitative and cost effective system for registration of international trade marks. India’s membership of the protocol will enable Indian companies to register their trade marks in Member Countries of the Protocol through filing a single application in one language and by paying one time fee in one currency. India has acceded to the Protocol on 8th April 2013. The Madrid Protocol has come into force in India since 8thJuly, 2013. Till 31st December 2014, 9594 international applications from the WIPO seeking protection of trademarks in India have been forwarded by WIPO to the Indian Trademark Office for further processing. On the other hand, Indian Trade Marks

office received 196applications for international registration of trademarks under the Madrid Protocol, out of which 189 applications have been certified and forwarded to the WIPO. Operationalization of the International Search Authority and the International Preliminary Examining Authority. India operationalized the International Search Authority/International Preliminary Examining Authority (ISA/IPEA) status on the 15th October, 2013. The operational requirements for setting up of an ISA/IPEA, namely, a separate division equipped with all the necessary facilities of international standards along with dedicated manpower, establishment of digital database of patent records, access to major patent databases

SIPP speaking at the function

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ANNUAL REPORT 2014-15

and modern search engines have been completed.

effective public service delivery, ensuring quality and transparency

As on 31st December 2014, the Indian Patent Office has received 538 international applications choosing India as ISA , requesting for international search reports and 8 applications choosing India as IPEA for international preliminary examination.

i.

Patents: o

Computerization and IT-enabled functioning of Patent Office and computerized work- flow for patent processing has resulted in the enhanced speed of patent processing, examination and grant, improved service to stake holders, transparency and reliability.

o

Four Examination Groups, based upon b ro a d s u b j e c t s p e c i a l t i e s v i z . , Chemistry, Biotechnology, Electrical engineering and Mechanical engineering have been created at each Patent Office location for effective monitoring the processing of applications.

o

Patent applications are referred to Examiners on the basis of their technical / scientific field of specialization, thereby ensuring quality of examination.

IPR Awareness Programmes:o

Awareness creation is one of the major planks of the modernization scheme of IP system, as this will educate the stakeholders about the benefits of registration of their rights as also educate the general public, particularly the business community, on perils of infringement of IPRs held by others/ dealing in pirated and counterfeit products. These programmes are also expected to sensitise the enforcement agencies such as the state police forces, and the judiciary, IP- Training , Awareness and Outreach Activities:

o

o

Awareness/sensitization programs on IPR are organized by IPO as well as with industry associations, Chambers of commerce, academic institutions etc. National and international symposia/ seminar/workshops on IP are organized for potential IP users.

Initiatives taken by Office of CGPDTM for

116

Quality Management in Processing of IP Applications:

Trade Marks: o

Computerized module-based examination system of trade mark applications has been adopted.

o

The Examination, Publication and Registration (EPR) Section was established exclusively at Trade Marks Registry, Mumbai to carry out all the

Protection of Intellectual Property Rights

processes electronically. Examination of trademark applications has been centralized at the Trade Marks Registry at Mumbai for better monitoring and coordination. Allotment of new Trade Mark Applications to the Trademarks Examiners is made through a process of random allocation, in order of their seniority, through the electronic system. o

o

A Pre-Registration Amendment Section has been created at each of the five branches of the Trade Mark Registry to attend to corrections/ amendments in the computer records of the applications for registration of trademarks and issue Registration Certificates with correct details, as and when required. An electronic system for printing and dispatch of certificates in appropriate cases, centrally from the Trademarks Registry Mumbai, was adopted to refine and speed up the process.

o

Draft Manual for Trade Marks Office Practice and Procedure has been published in the website.

ii.

P u b l i c S e r v i c e D e l i v e r y, transparency and Dissemination of IP Information in the Website:

o

IPO has a dynamic website which contains a powerful search portal, prosecution details, patent information, Manual of Patent Office Practice and Procedures and lot of other patent-related information.

o

Free online public search facilities for Patents and Trademarks records made available.

o

The weekly Patent Office Journal is published electronically on each Friday in a searchable format while Trade Marks Registry Journal is published electronically every Monday.

o

Details related to filing and processing of patents, designs, trademarks and GI are also regularly updated and made available login-free in a Search Portal of the IPO website so as to facilitate dissemination of IP information to stake holders and achieve the highest level of transparency in IPOfunctioning.

o

E-Register of Patents containing all information including renewals, assignments and other legal status made available for public.

o

Supply of Patent documents to the user public has been expedited

o

Information received from patentees regarding Working of Patented Inventions has been uploaded in the website for the year 2012.

o

The list of Pending Applications and Granted Patents related to various fields of inventions has been made available to the public

o

The following information is also available on the website in a readily comprehendible format: - Patents which have expired, i.e. the 20 year- term is over.

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- Patents which have ceased to have effect by reason of failure to pay the renewal fee. - Patents, according to their Number, Title & Technical / Scientific field, which have expired or have ceased to have effect. o

I n o rd e r t o a c h i e ve c o m p l e t e transparency in the Trade Marks Registry, the comprehensive details of pending Trade Mark Applications as well as Registered Trademarks including the scanned copies of documents, prosecution history, examination report, copy of the application, copy of the trademark certificate, opposition details etc. have been made available free of cost to the public through the official website.

o

The classification of goods and services under Section 8 (1) of Trade Marks Act, 1999 for the purpose of Registration of Trademarks has been made available.

o

A special drive for disposal of requests for recordal of post registration changes in the registered Trademarks has been initiated

o

A special drive for disposal of trademarks opposition/rectification matters on the basis of withdrawals requested therein has been initiated.

o

Reply to examination report in respect of Trademark Applications can now be filed on-line through the

118

Comprehensive e-filing services for Trademarks. o

Guidelines for functioning under the Madrid Protocol' have been published

o

Public Awareness Sessions about the India's accession to the Madrid Protocol were held at Delhi, Chennai, Ahmedabad , Kolkata and Mumbai.

o

Online public view of GI documents was launched in February, 2013.

Dynamic Utilities made available by O/o CGPDTM in the Official Website: With a view to further increase the transparency in dissemination of IP information in the website, the following dynamic utilities for the public have been introduced by CGPDTM in the official website www.ipindia.nic.in: Patents: Many dynamic utilities on patent have been made available in the website for the benefit of the public like, displaying the month of filing of Request for Examination for which First Examination Report is being issued; knowing the group-wise and location-wise dates of Requests of Examination (RQ) for which First examination Report (FER) has been sent to the applicants; displaying the status on disposal of patent applications by the respective examination groups during the specified period. The utility for facilitating search to ascertain the status of a patent has also been provided. Besides, the facility for displaying patents, which have expired or ceased to have effect by reason of

Protection of Intellectual Property Rights

failure to pay the renewal fee has been provided by their number, title and technical / scientific field. Also, the facility for viewing “ First Examination Report (FER)” issued (Jurisdiction and Group-wise) at all locations of Patent Office has been made available. A Stock and Flow based Dynamic Utility for Patent has been made available to provide the applicants/stakeholders with the facility on real time basis to view the Patents under different stocks and the flow of applications at various stages of processing. Trade Marks: A dynamic Trade Mark Search Portal has been developed in the IPO website and many dynamic utilities on trademarks have been made available to the public like, online tool for attending to the requests for correction of clerical errors in the trademark records, availability of the details of TMR hearing and adjournment, displaying on real time basis the details ofexamination of trademark applications, show-cause hearings, publications in the trademark journal, registrations of trademarks, other disposals of applications (i.e. by way of abandonment, refusal etc.), other notices issuedmonthwise or date-wise, classification of goods and services under section 8 (1) of Trade Marks Act, 1999 for the purpose of registration of trademarks and online filing of reply to an examination report in respect of trademark application through the comprehensive e-filing services for trademarks. Further, the comprehensive details of pending Trade Mark Applications

as well as Registered Trademarks including t he sc a n n ed c op ies of doc u m en t s, prosecution history, examination report, copy of the application, copy of the trademark certificate, opposition details etc. have been made available free of cost to the public through the official website. A Stock and Flow based Dynamic Utility for Trademarks has been made available to provide the applicants/ stakeholders with the facility on real time basis to view the Trade marks under different stocks and the flow of applications at various stages of processing. Plan Scheme for Rajiv Gandhi National Institute of Intellectual Property Management (RGNIIPM) The Government of India approved the plan scheme during the 11th Plan for establishment of National Institute of Intellectual Property Management”, at Nagpur as a national centre of excellence for training, management, research, education in the field of Intellectual Property (IP) Rights. The main objectives of this institute are to cater to the needs of training of Examiners of Patents, Designs, Trademarks and Geographical Indications, IP professionals, IP managers, impart basic education to user communities, government functionaries and stake holders involved in creation, commercialization and management of intellectual property rights, facilitate research on IP related issues including preparation of study reports and policy analysis of relevance to Government and enhance the general awareness and

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understanding of Government officers and users of the IP systems including universities and other educational institutions. It will also conduct research in IP and prepare study reports and policy analysis papers on subjects of current relevance for policy and lawmakers.

and for 57 new Examiners of the second batch during July to October, 2012. During the period from April to October, 2013, induction training for remaining 9 examiners from the third batch and onemonth Advanced Training for all 140 new examiners was conducted.

The main component of the scheme of Rajiv Gandhi National Institute of I n te l l e c t u a l P ro p e r t y M a n a g e m e n t included construction of the Academic and Residential Blocks, establishment of other infrastructure facilities and creation of posts. The construction work in respect of Academic Block has been completed. The scheme has been continued in the 12th plan.

Besides, the RGNIIPM also conducts a number of training programmes every year on Intellectual Property Rights viz., Patents, Designs, Trademarks and Geographical Indications. The beneficiaries are business professionals, law professionals & prospective patent/IPR agents, scientific/ technical/R&D organizations engaged in research, managers and technocrats in industries, small and medium entrepreneurs, university professionals, Central and State Govt./Public sector professionals, individual inventors and other interested members of the public.

A three-month induction training was completed at RGNIIPM for 100 new Examiners of Patents & Designs in May, 2012

Increase in IPR applications and IPRs granted:Patents

Year

2014-15 2004- 2005- 2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- (up to 05 06 07 08 09 10 11 12 13 14 December 2014)

Filed

17466 24505 28940 35218 36812 34287 39400 43197 43674 42950

32269

Examined

14813 11569 14119 11751 10296

6069 11208 11031 12268 18306

15525

Granted

1911

6168

4225

4817

Disposals

120

4320

7539 15316 16061

15795 17136 11339

7509

4381

12851 8488

4126

9027 11672

9893

Protection of Intellectual Property Rights

Designs Year

2006- 200707 08

200809

200910

2010- 2011- 2012- 2013 11 12 13 14

2014-15 (up to December 2014)

Filed

5521

6402

6557

6092

7589

8373

8337

8533

7124

Examined

4976

6183

6446

6266

6277

6511

6771

7281

5811

Registered

4250

4928

4772

6025

9206

6590

7250

7178

5373

200607

200708

200809

200910

201011

201112

Trade Marks

Year

201213

201314

2014-15 (up to December 2014)

Filed

103419 123514 130172 141943 179317 183588 194216 200005

153991

Examined

85185

105219

25875

205065 116263 202385 203086

109661

Registered

109361 100857 102257

67490

115472

51765

44361

67873

32784

126540

76310

132507

57867

69736

104753

70365

63605

Disposal

Geographical Indications Year

200607

200708

200809

200910

201011

2011- 201 201312 2-13 14

Filed

33

37

44

40

27

148

24

75

2014-15 (up to December 2014) 25

Registered

3

31

45

14

29

23

21

22

0

Comparative Trends of IPRs Grante d/Registered Year

200607

200708

200809

200910

201011

201112

201213

201314

2014-15 (up to December 2014)

Patents

7539

15316

16061

6168

7509

4381

4126

4225

4817

Designs

4250

4928

4772

6025

9206

6590

7250

7178

5373

44361 67873

32784

Trade Marks Geographica l Indications

109361 100857 102257 67490 115472 51765 3

31

45

14

29

23

21

22

0

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ANNUAL REPORT 2014-15

Trends in IPR During 2007-08 TO 2014-15 (up to December 2014) Patent Year

Filed

Examined

Granted

Disposal (Granted+ Abandoned+ Withdrawn +Refused)

2007-08

35218

11751

15261

15795

2008-09

36812

10296

16061

17136

2009-10

34287

6069

6168

11339

2010-11

39400

11208

7509

12851

2011-12

43197

11031

4381

8488

2012-13

43674

12268

4126

9027

2013-14

42950

18306

4225

11672

2014-15 (April- December

32269

15525

4817

9893

Designs

122

Year

Filed

Examined

Registered

2007-08

6402

6183

4928

2008-09

6557

6446

4772

2009-10

6092

6266

6025

2010-11

7589

6277

9206

2011-12

8373

6511

6590

2012-13

8337

6776

7252

2013-14 2014-15 (April- December.)

8533

7281

7178

7124

5811

5373

Protection of Intellectual Property Rights

Trade Marks Year

Filed

Examined

Registered

Disposal (Registered+ Abandoned+ Withdrawn +Refused)

2007-08

123414

63605

100857

2008-09

130172

105219

102257

126540

2009-10

141943

25875

54814

76310

2010-11

179317

205065

115472

132507

2011-12

183588

116263

51735

57867

2012-13

194216

202385

44361

69736

2013-14 2014-15 (April- December)

200005

203086

67873

104753

153991

109661

32784

70365

Geographical Indications Year

Filed

Examined

Registered

2007-08

37

48

31

2008-09

44

21

45

2009-10

40

46

14

2010-11

27

32

29

2011-12

148

37

23

2012-13

24

30

21

2013-14 2014-15 (April- December.)

75

42

22

25

66

0

123

13

CHAPTER

Administration of the Boilers Act, 1923

Administration of the Boilers Act, 1923 (5 of 1923) and the rules/ regulations made thereunder

administration of the Boilers Act and has also protected manufacturers/users' interests without sacrificing the safety of boilers.

The Boilers Act was enacted in 1923 to provide for the safety of life and property from the danger of explosion of boilers and for achieving uniformity in registration and inspection during operation and maintenance of boilers throughout the country. Upto year 2007, there had been no major amendments to the Act and the legislation needed changes in consonance with the developments and changes in the technology of fabrication, testing, inspection and operation of boilers.

In line with the aim to provide “Ease of Doing Business”, the concept of self-certification and third party inspection of boilers has been taken up with the State Governments. This will benefit a broad spectrum of industries both in large and small scale sector which includes Power plants, Chemical plants, Refineries, Paper plants, Steel plants, Sugar mills and other process industries.

The Indian Boilers (Amendment) Act, 2007 (49 of 2007), introduced improvements in the provisions of the law to enhance safety norms, to ensure uniformity in standards of inspection, expediting inspections and reducing bureaucratic delays by decentralization of inspection of boilers during their manufacture, erection and use, by allowing inspection and certification by independent inspecting authorities. After framing of rules and regulations, inspection by the third party inspecting authorities and competent persons have already begun in some states of India. This has resulted in a simplified and more accessible, user - friendly framework for the

124

Amendments are being introduced in the Indian Boiler Regulations, 1950 for making provisions for Super critical boilers and other latest technologies in the industry. Time period between inspection requiring mandatory shut down of the boilers is being increased in power plants and continuous process plants which will result in increase in production from these plants. Review of forms and drawings is being undertaken to simplify registration of boilers and make it more user friendly for the stakeholders. Central Boilers Board The Central Boilers Board, constituted under Section 27A of the Boilers Act, 1923 (5 of 1923) is responsible for making regulations consistent with the Act including laying

Administration of the Boilers Act, 1923

down standards for material, design, construction as well as for registration and inspection of boilers. The Board Comprises of the representatives of the Central and State Governments, Bureau of Indian Standards, boiler and boiler component manufacturers, National Laboratories, engineering consultancy agencies, users of boilers and other stakeholders connected with the boiler industry. The Secretary, Department of Industrial Policy and Promotion is the ex-officio Chairman and Technical Adviser (Boilers) is the ex-officio Member-Secretary of the Board. The Board deals with the problems of both users and manufacturers and takes policy decisions for proper growth of the boiler manufacturing industry in the country. The Board formulates the Indian Boiler Regulations incorporating the latest developments taking place in the boiler industry all over the world. The Board’s responsibilities have further increased with the introduction of provision of third party inspecting authorities and competent persons for inspection and certification of boilers and boiler components. Evaluation Committee/Appraisal Committee of the Board considered ninety eight recognition cases for recognition as I n s p e c t i n g Au t h o r i t i e s , C o m p e te n t Authorities, Well-known Steel Makers, T u b e / p i p e M a k e r s , We l l K n o w n Foundry/Forge-Shops, Material Testing laboratories and Remnant Life Assessment

Organisation under the Indian Boiler Regulations, 1950, and granted recognition/ renewal in eighty eight cases during the period under report. Authorisation cards have also been issued to competent persons for inspection and certification of boilers and boiler components in India during manufacture, erection and use. Functions of Boilers Division: Boiler Division is headed by the Technical Adviser (Boiler) and its functions are to: (i)

Advise the Central Government on all matters relating to administration of the Boilers Act, 1923 and the Indian Boiler Regulations (IBR) framed there under.

(ii) Deal with cases/matters on which direction is to be given to State Governments by the Central Government for carrying out execution of the provisions of the Boilers Act,1923. (iii) Deal with the work relating to framing of amendment of the regulations for laying own standards for material, design and construction of boilers and also for regulating the inspection and examination of boilers. (iv) Examine proposals for amendment of the regulations including drawings, designs, calculations and specifications for submissions to the Central Boilers Board. (v) Evaluate quality management systems and production facilities of various

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ANNUAL REPORT 2014-15

firms in India and abroad for their recognition as Competent Authorities, reputed steel makers, foundries, forgeshops, tube & pipe makers, material testing laboratories and remnant life assessment organisations under the Indian Boiler Regulations, 1950, in order to cut down the inspection delays and increased availability of the boiler components without sacrificing the safety and quality and quality of the boilers and its components. (vi) Evaluate inspection systems and performance of firms for their recognition as Inspecting Authorities for inspection and certification of boilers and boiler components in India and aborad. (vii) Conduct meeting of all Technical Sub-Committees of the Central

126

Boilers Board as Chairman of these committees. (viii) D e a l w i t h va r i o u s m a t t e r s i n connection with the administration of the Boilers Act, viz. scrutiny of the proposals regarding amendment of the Indian Boiler egulations, 1950, in line with the latest technological developments in the developed countries all over the world. (ix) Interpret the provisions of the Indian Boiler Regulations, 1950. (x)

Deal with issues raised by the manufacturers and users of boilers and others concerned, and give necessary advice and guidance.

(xi) Authorise “Competent Persons” for inspection and certification of boilers and boiler components in India during manufacture, erection and use.

14

CHAPTER

Attached & Subordinate Offices and other Organisations

Office of the Economic Adviser The Office of the Economic Adviser was set up in 1937. This Office renders advice for the formulation of policies having impact on the country’s industrial development and for promoting investment. It also renders advice on trade, fiscal, investment, competition and labour related issues having bearing on industrial performance. F u r t h e r, t h e O f f i c e c o m p i l e s a n d disseminates Wholesale Price Index (WPI) and Index for eight Core Sector industries besides overseeing compilation of data in respect of DIPP items in Index of Industrial Production (IIP). Functions The main functions of the Office of the Economic Adviser include the following: (a) Policy oriented functions ŸEconomic policy inputs on industrial

development. ŸRe n d e r i n g a dv i c e re l a t i n g t o

formulation of Industrial Policy, International Trade (PTA/FTA/RTA) and tax issues related to industry. ŸAnalysis of trends of industrial

production and growth. ŸExamination of WTO issues pertaining

to market access for non-agricultural commodities (industrial tariffs). ŸExamination of Labour issues, inter-

alia, concerning labour laws and labour market issues and skill development. (b)

Co m p i l a t i o n a n d Re l e a s e o f Economic Statistics

The Office of Economic Adviser compiles and releases the following: ŸW h o l e s a l e P r i c e I n d ex ( W P I )

Numbers for India on the 14th of the month (Press Release). ŸMonthly report on production of eight

infrastructure industries viz. crude oil, petroleum refinery products, coal, electricity, cement and finished steel, natural gas, fertilizer as the last working date of the month (Press Release). ŸKey Economic Indicators (Monthly

update). Coordination functions The Office coordinates the following work:ŸThe work relating to preparation of

Monthly Summary for the Cabinet highlighting monthly IIP Growth rate, manufacturing growth rate,

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ANNUAL REPORT 2014-15

investment scenario, FDI, inflation position etc., ŸMonthly D.O. letter to the Cabinet

Secretary regarding important achievements during the month. ŸCoordinating for the material

regarding Pre-Budget Economic Survey, material for the Speech of President of India, Prime Minister, Finance Minister etc. ŸPreparation of Executive Summary &

Chapter-1 of Outcome Budget of the Department. ŸPreparation of Annual Plan/Five Year

Plan of the Department. ŸPreparation of concept papers/

approach papers for the schemes of the Department. ŸResearch work concerning Industrial

Sector. ŸWork relating to proposals for changes

in fiscal policy regime relating to industrial goods and renders advice on matters pertaining to changes in the tariff structure and fiscal incentives for industry. Other activities a)

S c h e m e f o r D eve l o p m e n t o f Business Service Price Index (BSPI)

During the Tenth Plan, the Planning Commission approved a Plan Scheme with the objective of developing Service Price Index for the country. The scheme “Development of Business Service Price

222 128

Index” continued in the Eleventh Plan. Also, the scheme has been approved for the 12th Plan. The progress of the work is as under:ŸTen sectors namely Banking, Trade,

Business Services, Postal, Telecommunication, Air Transport, Port Services, Insurance, Rail Transport and Road Transport have been identified in the initial phase for development of experimental Service Price Index. An Expert Committee on Development of Service Price Index has been set up under the chairmanship of Prof. C.P. Chandrasekhar in April 2007 to provide the technical guidance on the conceptual and methodological issues. Experimental Service Price Indices for four sectors, viz., Rail Transport Sector, Banking Sector, Postal Services and Telecom (Cellular) are uploaded on the website of the Office of Economic Adviser (OEA) for comments and are being updated from time to time. ŸMonthly Experimental Railway

Services Price Indices (Base: 2004-05) have been compiled from April 2005 to January 2014, on the basis of data provided by the Directorate of Statistics & Economics, Railway Board. ŸMonthly Experimental Banking

Services Price Indices (Base: 2004-05) have been compiled from April 2005 to September 2014 (provisional) by RBI in consultation with the Office of the Economic Adviser.

Attached & Subordinate Offices

ŸMonthly Experimental Postal Services

Price Indices (Base: 2004-05) have been compiled from April 2005 to May 2014 on the basis of data provided by the Department of Posts.

(i) M/o Road Transport & Highways (ii) Insurance Regulatory Development Authority ŸThe Air Transport Service Price Index

is in the process of finalization and uploading on the website of OEA.

ŸQuarterly Experimental Telecom

(Cellular) Services Price Indices (Base: 2009-10) have been compiled for Quarter ending (QE) June 2010 to Quarter ending (QE) June 2014 using data published in Performance Indicator Report (a quarterly publication) released by Telecom Regulatory Authority of India (TRAI). ŸNotes on the methodology of

construction of these Indices are also uploaded on the website of OEA.

b)

The Working Group for revision of the Current Series of WPI (Base 2004-05) which had submitted its report on 31.3.2014 was perused and action initiated to process the report. c)

ŸThe methodology to calculate Road

Transport Price Index and Insurance Service Price Index are being worked out in consultation with following Departments/ Ministries :

Working Group Report for revision of Current series of Wholesale Price Index

Constitution of Working Group for Producer Price Index

A working group for introducing Producer Price Index have been constituted on 21.08.14. This is in perusal of the

Financial Year-Wise Wholesale Price Indices (Base: 2004-05=100) Period

All Commodities

Primary Articles

Fuel & Power

Manufactured Products

2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 (P)*

104.5 111.4 116.6 126.0 130.8 143.3 156.1 167.6 177.6

104.3 114.3 123.9 137.5 154.9 182.4 200.3 220.0 241.6

113.6 120.9 121.0 135.0 132.1 148.3 169.0 186.5 205.4

102.4 108.2 113.4 120.4 123.1 130.1 139.5 147.1 151.5

182.9

252.0

209.3

155.5

Remarks: Upto December, 2014. The figures of December are Provisional. *Figures for 2014-15 average of indices from April to December, 2014.

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ANNUAL REPORT 2014-15

Inflation based on Financial Year-Wise Wholesale Price Indices (Base: 2004-05=100)

Period

All Commodities

Primary Articles

Fuel & Power

Manufactured Products

2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 (P)*

6.59 4.74 8.05 3.80 9.56 8.94 7.36 5.98

9.62 8.33 11.05 12.66 17.75 9.80 9.81 9.84

6.46 0.03 11.57 -2.11 12.28 13.96 10.33 10.16

5.66 4.78 6.16 2.22 5.70 7.26 5.41 2.99

3.36

3.92

3.16

3.13

Remarks: Upto December, 2014. The figures December, 2014 are Provisional. *Figures for 2014-15 depict percentage change in average of indices from April to December, 2014.

recommendations of the last two Working Groups for revision of WPI series, which recommended that an expert committee may be formed by the Office of Economic Adviser (OEA) for deliberating on the issue of constructing PPI and eventually migrating from WPI. The Working Group is enjoined to submit its final report to the Office of the Economic Adviser within two years of its constitution. New series of WPI The Government had set up a Working Group under the Chairmanship of Dr. Saumitra Chaudhuri, former Member, Planning Commission on 19th March 2012, inter alia, to review the existing series of Wholesale Price Index. Though the initial term of the Working Group was till 31st December, 2012, the same was extended thrice and finally the date of submission of Report was extended to 31st March, 2014.

130

The Working Group submitted its technical report on 31st March 2014 with the recommendation to change the base year from 2004-05 to 2011-12. Working Group on PPI The government constituted a Working Group on Producer Price Index on 21st August 2014 under the chairmanship of Prof. B.N. Goldar, former Member , National Statistical Commission. Producers’ Price Index (PPI) is a system for measuring Wholesale prices from the point of view of the producers or the sellers of goods. The terms of reference of the Working Group on PPI are as follows: i

Define conceptually the term PPI in Indian context.

ii.

Determine the methodology of constructing PPI in Indian context.

Attached & Subordinate Offices

iii.

Determine data requirements for construction of PPI in Indian context.

iv.

Indicate possible sources of data for construction of PPI in India.

v.

Outline timelines for launch of PPI series initially running parallel to WPI series and later replacing WPI series in the Indian context.

vi.

Outline institutional, man power, financial requirements of constructing and running PPI in Indian context initially in parallel to WPI and later replacing WPI series.

vii.

To select the most appropriate base year for PPI.

viii. Any other related matter concerning construction of PPI. In order to assist and handhold foreign investors, Invest India, a Joint Venture Company (Not for Profit Company) between Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce and Industry, Government of India, Federation of Indian Chambers of Commerce and Industry(FICCI) and Various State Governments has been set up. Invest India is responsible for promoting and facilitating Investments to India. The shareholding is 5 1 % o f F I C C I a n d 4 9 % o f D I P P. Subsequently DIPP will dilute its equity to include all State Governments. Already seven states have taken up shares in Invest India. The Working Group is scheduled to submit its final report within two years of its

constitution. Tariff Commission The present Tariff Commission in India is the result of the refinement and amalgamation of the functions of its predecessor organizations namely, Tariff Board, Tariff Commission (old), Bureau of Industrial Costs & Prices (BICP). The Commission is presently being headed by Member Secretary in the rank of Additional Secretary. Tariff Commission being located in the Department of Industrial Policy & Promotion is working to provide useful inputs for informed decision making in areas having an impact on the manufacturing sector and other economic activities in the country. The Department of Industrial Policy & Promotion after the review of role of Tariff Commissions by the Hon'ble Commerce & Industry Minister has decided to strengthen the Commission to enable the Commission to continue to provide useful inputs for informed decision making by the Commerce and Industry Ministry with regard to manufacturing and other Ministries of Government of India. The Tariff Commission is actively involved in Inverted duty structure studies on products which are undertaken to support the 'Make in India' initiative of the Government The Tariff Commission has been engaged in discharging the following functions drawn from the TOR/ charter revised in September 1998 and April, 1999.

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ANNUAL REPORT 2014-15

(a)

To make recommendations as an expert body, on matters referred to it by Government regarding fixation of tariff and all tariff related issues in relation to trade in goods and services, keeping in view the interest of various sectors including production, trade and consumers and taking into account the international commitments. The Commission should aim at evolving an overall tariff structure and look into the issue of tariff rationalisation.

(b)

To make a detailed impact analysis on select sectors like textiles, agriculture, a n d a u t o m o b i l e s i n fo r m a t i o n technology, chemicals, steel and engineering goods through a multidisciplinary team.

(c)

To carry out technical studies on cost of production of different goods and services and their competitiveness in relation to other countries.

(d)

Core function of BICP including pricing, efficiency, improvement and cost reduction, issue of Public & Private sector, Industrial Product & Services i) Commodities under Administrative Pricing Mechanism (APM) ii) State monopolies/public utilities iii)Government procurement iv) Price monitoring v) Others

(e)

132

To undertake other tasks as may be assigned by the Government from time to time.



Engineers from the field of Science and Technology belonging to Tariff Commission cadre



Cost Accountants/Charted accountants from Indian Costs & Account Service (IC&AS)



Economists from Indian Economic Service (IES); and



Statisticians from Indian Statistical Service (ISS).

Tariff Commission is the only Government organization which has the know-how and expertise of using the tool of normation for informed decision making across the board for different sectors of the industry. Normation is based on assessment of achievable efficiencies i.e optimal capacity utilization, productivity parameters of respective inputs (such as man, material, energy and machine) taking into account technologies and manufacturing processes etc. Normation analysis thus can be used to benchmark sectors /units for enhancing their competitiveness. Merits of decision making through Normation include: ŸConsidered fair by an individual

and/or a group. ŸDetermining the cost of goods/

services at optimal/efficient level of inputs (manpower, material, energy and capital) and provides thrust for improvement in efficiency and enhances competitiveness of the industry. ŸIt helps in identifying areas for

physical improvements leading to enhancing competitiveness

Attached & Subordinate Offices

ŸN o r m a t i o n i s a f u n d a m e n t a l

management tool that supports quality / excellence and innovation. It is in fact a continuous process of measuring one’s own performance and practices against the best competitors. It is thus a benchmarking tool in competitiveness studies. ŸNormation balances the interest of all

stakeholders while protecting consumer interest. ŸIt is a tool which also focuses on

providing road map for improving industrial efficiency.

decisions and not rendered redundant with the passage of time. This is ensured by phasing the studies and making them State specific and/or sector /unit/product specific. Study topics which are of continuing nature and require submission of study reports on a continuous basis are listed below: a)

Studies on inverted duty structure

b)

Impact assessment of Free Trade Agreements on different sectors with different countries.

c)

Studying competitiveness (including export competitiveness) of different sectors/industry, firm/PSU and product.

d)

Impact of prevailing tariff structures on domestic manufacturers and industry competitiveness

e)

Study on normative pricing of Fertilizers.

f)

Study on computation of fair price of BTwill Jute bags.

ŸOver the period this tool has passed

the test of time and has become essential in the emerging complex global market scenario and cutting edge competition. Tariff Commission always endeavours to deliver study reports in a definite time frame in a phased manner so that the findings are real time and relevant for arriving at policy

The Sector wise details of the study reports submitted during 2014-15 (i.e. till 20/2/15) is given in the Table below

S.No.

Sector/Type of Study

No. of Reports

1

(Manufacturing Sector) (a) Studies related to WTO/Market Access Offer/FTA/Tariff (b) Pricing Study

2.

(Service Sector) (a) Pricing Study

26 23 3 7

3.

(Social Sector) (a) Industry Specific studies Grand Total

7 1 1 34

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ANNUAL REPORT 2014-15

The detailed list of the study reports submitted during 2014-15 (up to 20/2/2015) is given in the table below 2014-15 Sl. No

Name of the Report

1

Study on Inverted Duty Structure in Medical Implant Device – Blood Collection Ttuibe

2

Study on Inverted Duty Structure in Medical Implant Device – Syringes

3

Study on Inverted Duty Structure in Medical Implant Device – Needles

4

Study on Inverted Duty Structure in Master Batch

5

Study on Inverted Duty Structure in Medical Implant Device – Pacemaker

6

Study on Inverted Duty Structure in Copper Products report No. 1

7

Report on Inverted Duty Structure Methylene Diphenyl Di-isocyanate (MDI)

8

Report on Inverted Duty Structure on Capacitor Grade BOPP Film (used as Core Dielectric Layer in Capacitor)

9

Study on Trade Agreements and emergence of Inverted Duty Structure (IDS)(Report-1)

10

Supplementary Report on Inverted Duty Structure (IDS) on Mono Ethylene Glycol (MEG)

11

Study on Inverted Duty Structure in Medical devices – Endoscopes

12

Study on Inverted Duty Structure in Medical Devices – Electrical Insulators

13

Study on Inverted Duty Structure in Special casting components including hub, bse frame, bearing housing and main shaft of Wind Operated Generator

14

Study on Inverted Duty Structure in Bank Note Acceptor Machine

15

Supplementary Report on Inverted Duty Structure (IDS) on Poly Vinyl Chloride (PVC)

16

Supplementary Note on the Study Report on Inverted Duty Structure (IDS) on Aluminium Ingot (Report No.1007) of Tariff Commission.

17

Supplementary Report on Inverted Duty Structure (IDS) on Polystyrene

18

Supplementary Report on Inverted Duty Structure (IDS) on Textile Machinery – Spinning Machinery Items (Carding, Combing, Blow Room, Draw Frame, Speed Frame, Ring Frame)

134

Attached & Subordinate Offices

19

Supplementary Report on Inverted Duty Structure (IDS) for Plastic Processing Machinery – Injection Moulding Machine and Blow Moulding Machine

20

Study on Impact Assessment of Free Trade Agreement/ Preferential Trade Agreement with Republic of South Korea on Trade in Capital Goods Sector-Machine Tools.

21

Report on study on impact of FTA with ASEAN on India’s Trade with Vietnam.

22

Study on India’s Trade with Myanmar during 2007-13.

23

Report on Impact Assessment of Indo Singapore Comprehensive Economic Cooperation Agreement (CECA) on Vehicles, Aircrafts, Vessels and the associated Transport Equipment under Chapters 86-89 of ITC-HS Classification

24

Report – study on Quantum value and types of bio-resources exported from India (Report Part No.V – Plant Based Normally Traded Commodities).

25

Report on Principles of determination of tariffs for passenger fares by the city bus services in Bus Rapid Transit (BRT) Corridors and Non-Bus Rapid Transit (Non-BRT) Corridors – city of Ahemadabad.

26

Study on Principles of determination of tariffs for passenger fares by the city bus services in BRT Corridors & non-BRT cities/corridors – Non-BRT City of Lucknow.

27

Report on Principles of determination of tariffs for passenger fares by the city bus services in Bus Rapid Transit (BRT) Corridors and Non-Bus Rapid Transit (Non-BRT) Corridors : City of Bhopal

28

Report on Principles of determination of tariffs for passenger fares by the city bus services in Bus Rapid Transit (BRT) Corridors and Non-Bus Rapid Transit (Non-BRT) Corridors : City of Nagpur

29

A brief note on estimated price impact in the manufacturing of Type-A B-twill Jute Bags using shuttleless looms under four different options.

30

A Brief Note on studies conducted by Tariff Commission on (1) Operation & Maintenance Cost of Irrigation Projects and (2) Water Rate Structure for various uses. Submitted for used by Finance Commission.

31

Report on Assessing the Price of ‘Freedays’ Sanitary Napkin.

32

Report on Water Rate Structure for various uses in Tamil Nadu.

33

Report on Assessment of Normative Cost of Water for various uses in Assam.

34

Report on per capita cost of Surface Water based piped drinking water supply in the Fluoride affected areas in Karnataka

135

ANNUAL REPORT 2014-15

Notes to Department of Revenue on Inverted duty structure in the prescribed Proforma were sent for the following products during 2014-15 (till 20/2/2015): (i)

Polystyrene

(ii)

Machine Tool

(iii) Networking Product (Switches) (iv)

Pressure Vessels

(v)

Textile Machinery (seven products)

(vi) Injection moulding & Blow moulding machine (vii) Technical textile (Baby & clinical diapers) (viii) Motherboard (ix)

Diphenylmethane

(x)

Pace Maker

(xi)

Capacitor grade Biaxially Oriented Polypropylene (BOPP) film

(xii) Copper (Three Products) (a) Copper Sheet (b) Copper Foils (c) Copper (xiii) Special Casting for hub, base frame, bearing housing, main shaft of wind operated electricity generators (xiv) Syringes (xv)

Masterbatch

(xvi)

Needles

(xvii)

Electrical Insulators

136

(xviii) Endoscope (xix)

Bank Note Acceptor Machine

Besides the reports submitted during the current financial year(2014-15) the Commission has several other studies at different stages of progress / completion. The list of ongoing study topics and the tentative number of reports that are likely to be generated in each of the study topic is at Annexure A. Outcomes A)

Outcomes of initiatives taken by Tariff Commission. Data base refinement - In the back drop of the constraint of getting product wise information Tariff Commission had taken the initiative with the Ministry of Corporate affairs giving full justification to ensure that the cost audit formats are restored to its earlier format to include productwise data in respect of production, i m p o r t s , c o n s u m p t i o n o f raw materials, domestic sales, exports, services rendered/obtained, elementwise cost details including per unit cost etc. in respect of all major sectors of the economy, both in physical as well as value terms. Based on the vital inputs provided by the Commission, the Ministry of Corporate Affairs has been able to amend the companies(Cost Records and Audit) Rules, 2014 vide Notification dated 31st December, 2014 to facilitate

Attached & Subordinate Offices

getting detailed information required for studies conducted by Tariff Commission particularly in respect of Inverted Duty Structure. B)

Outcome of the study reports submitted by the Commission, by way of adoption, indication, appreciation and interest shown by the clients in addition to the usage by the client in analysis and decision making are as below:

CS-III dated 14/8/2014) Apart from undertaking the studies referred to the Commission it also undertook activities which inter-alia included: (a)

Strengthening of database for monitoring global trade & policies trends of goods & services.

(b)

Providing real-time information on the website of the Tariff Commission which was substantially recast, in view of the change in perspective and focus.

(c)

Providing requisite disclosures under Right to Information Act, 2005.

(d)

Imparting training to its employees on emerging trade and industry, aspect of competitiveness and the changing organizational concepts/techniques.

(e)

Modernization cum updating the library and documentation facilities to enable the organization to deal effectively with its mandate.

(f)

Ensure the state-of-the-art computer n e t wo rk i n f ra s t r u c t u re fo r e functioning.

(g)

Taking up the process of refinement of data base of the Office of Jute Commissioner for ensuring realistic price fixation based on current data.

2014-15 1)

2)

3)

Tariff Commission's recommendations on Inverted duty Structure have been incorporated in the 201415 Budget announcement details of which are available on the website of the Commission. (www.tc.nic.in) Ministry of water Resources vide its letter no. 11/1/2012-PP/1153 dt. 17/6/2014 has appreciated the studies done by Tariff Commission on Operational & Maintenance cost of Irrigation projects and Cost of Water in the context of its [proposed utilization by the 14th Finance Commission. Tariff Commissions fifth study report on the "Plant based Normally Traded Commodities' as part of the of the study on quantum, value and types of bio-resources exported from India”, has been appreciated by the Ministry o f E n v i r o n m e n t a n d Fo r e s t s (Reference D.O. No. C-12025/1/10-

The Tariff Commission endeavors to give due weight-age to the use of Rajya Bhasha. The efforts of the Commission in implementing section 3(3) and rule 5 of the Rajya Bhasha act has been appreciated by the Department

137

ANNUAL REPORT 2014-15

of Industrial Policy and Promotion vide their letter dated 10/12/2014.

weekly basis, by way of reflection meetings. These meetings are a platform for introspection, deliberation on important issues, introspect and pave the way forward. The meeting begins with prayers & reading of thoughts of great leaders.

The following reports of the Commission have been translated into Hindi in line with requirement of the client Ministry: a.

Review of performance of Cement Industry

b.

Realistic price of Pregnancy Test Kit supplied by M/s HLL Life care Ltd. (2009-10)

c.

Quantum Value and Types of bioresources exported from India –Plant based Normally Traded commodities

d.

Report on Assessing the Price of ‘Freedays’ Sanitary Napkins.

e.

Quantum Value and Types of bioresources exported from India – Medicinal Plants

(ii)

Swacch Bharat Abhiyan

Tariff Commission in accordance with instructions provided by Cabinet Secretariat dedicated the week (25th September, 2014 to 2nd October, 2014) to "Swacch Bharat Mission". The employees reflected on cleanliness and Garbage defined as "Anything which is not at its proper place is "Garbage" and needs to be kept in its proper place and if not required at all be removed/cleaned.

12. Some of the other activities carried out by the Commission during the period April 2014 to February, 2015 include :

In line with the concept of 'Cleanliness is Godliness', the Commission as a part of its endeavour to inculcate the habbit of cleanliness amongst all its employees, emphasised that an apt lesson of cleanliness would be to follow the rule of cleaning whichever place we live and work in, every day before leaving, thinking as if the next person to use or visit the place would be GOD. The objective of highlighting the importance and need of cleanliness at a regular interval is to inculcate a habit because only a habit can last throughout the span of life.

(i)

Reflection meeting

The cleanliness drive was carried as follows:

The progress is reflected upon collectively in a focused way, on a

-

Cleaning the surroundings

-

Cleaning the work place

f.

Cost based study of Petroleum products of National Oil Marketing Companies(OMCs)

Tariff Commission in its endeavor to encourage the usage of Hindi language celebrated Hindi Phakwara during the fortnight of 8th September, 2014 to 19 September, 2014. The theme for this year's Hindi Pakhwara was "Karma Yogi".

138

Attached & Subordinate Offices

-

Organizing information for easy and prompt retrieval

-

Cleaning up the mind ¡ As an endeavor for spirit of

harmony ¡ Endeavour to remove the pebbles

of negative thoughts to enable us to run the marathon race of life at our most efficient speed. ¡ Practicing simplicity ¡ Starting the day plus events and

activities with prayers and Introspection Chart A check list to reflect and review the points on cleanliness on a daily basis has been incorporated.

Just a Minute – Every member participating in the reflection meeting was requested to speak for a minute on cleanliness (iii) Harmony Exercise Tariff Commission as part of its capacity building & team building exercise undertook a few harmony exercises such as below: -

Harmony with colleagues – Every officer participating was requested to write one positive point about other officers, a collage of such writings was then given to the concerned individual for him to cherish the appreciation of his colleagues for times to come.

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Annexure A SUMMARY OF STUDIES BEING CONDUCTED BY TARIFF COMMISSION (as on 15/1/2015) Sector Wise S.No.

Sector

No. of Reports

1.

Manufacturing

86

2.

Service

93

3.

Social

11

4.

Other

8

Total

198

Type wise S.No.

No. of study reports

1

Tariff related studies

13

2

Studies related to Free Trade Agreements etc

17

3

Industry specific study studies

55

4

Pricing studies

5

140

Type of Studies

i.

Commodities under Administrative Price Mechanism (APM)

ii.

State monopolies/public utilities

iii.

Government procurement

107 1 100 6

Others

6

Total

198

Attached & Subordinate Offices

List of Ongoing studies as on 10/3/2015 Sl. No.

Study topic

Sector

Type of Study

Referral Agency

1

Performance of cement Industry (2013-14)

mfg

Pricing/APM

2

Inverted Customs Duty Structure in respect of raw materials and components required for the Manufacturers of goods Impact of Liberalization / Tariff Reduction on HMT and Public Sector Enterprises & Innovative Pricing – HMT. Impact of Liberalization / Tariff Reduction on IDPL and Public Sector Enterprises & Innovative Pricing – IDPL. Impact of Liberalization / Tariff Reduction on NEPA and Public Sector Enterprises & Innovative Pricing – NEPA Public Sector Enterprises & Innovative Pricing – ‘Principles’. Study on Competitiveness of HLL Import of second hand machinery and their impact on domestic manufacturers of capital goods and their competitiveness: Impact Assessment of FTAs/ PTAs on Capital Goods - Impact analysis of tariff and trade policy of major commodity/sector Impact assessment of Free Trade Agreement -

mfg

Tariff Study

Department of Industrial Policy & promotion Department IP&P

mfg

Industry specific study

Department of Public Enterprises

2

mfg

Industry specific study

Department of Public Enterprises

2

mfg

Industry specific study

Department of Public Enterprises

2

Mfg

Industry specific study

Department of Public Enterprises

4

mfg

Industry specific study Industry specific study

Suo-moto

1

Department of Heavy Industry

8

mfg

FTA impact analysis

Department of Heavy Industry

9

mfg

FTA impact Analysis

Department of Heavy Industry

3

3

4

5

6

7 8

9

10

mfg

No. of study reports expected to be submitted 1

131

1

No. of studies can vary depending upon the no. of products referred /identified for examining the Inverted duty Structure

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ANNUAL REPORT 2014-15

11

Impact assessment of Free Trade Agreement - ASEAN.

mfg

FTA impact Analysis

Department of Heavy Industry

4

12

Study on Export Competitiveness:

mfg

Industry specific study

Department of Heavy Industry

6

13

Input Cost Study on SubSectors of Capital Goods:

mfg

Industry specific study

Department of Heavy Industry

9

14

Competitiveness of Indian Manufacturers Vs. Chinese Manufacturers in respect of Capital Goods:

mfg

Industry specific study

Department of Heavy Industry

9

15

Sectoral Impact of imports on the market share in India in respect of the reserved list of SSI Sector

mfg

Industry specific study

Department of Heavy Industry

1

16

Study on determining the realistic cost of Condoms

mfg

Pricing –Govt procurement

Department of Health & Family welfare

1

17

Study for determining additional compensation for complex fertilizers produced by Naphtha/Fuel Oil/LSHS based feed stock under NBS Policy.

mfg

Pricing – Govt procurement

Ministry of Chemicals and Fertilizers

1

18

Study on database on economic contribution of biotech, pharmaceutical and health care industry in Punjab to Indian economy

mfg

Others

Punjab State Council for Science & Technology

1

19

Comparative performance of bio-pesticides with their chemical counterparts in terms of usage, efficiency & cost effectiveness.

mfg

Industry specific study

Punjab State Council for Science & Technology

1

20

Impact analysis of fiscal incentives announced in the recent budgets (2010-11 & 2011-12) done for cold chain infrastructure

mfg

Industry specific study

Ministry of Food Processing Industries

1

21

Study on Status of Ship Building Industry in Goa – Strengths, Impediments and way forward

mfg

Industry specific study

State Government of GOA

1

22

Steel sector (Bhilai &

mfg

Industry competitivene

Suo-moto

1

142

Attached & Subordinate Offices

23

Study on second stage handling charges of jute bags

mfg

Pricing -Govt. Procurement

Ministry of Consumer affairs & Public distribution

1

24

Price fixation of Condoms supplied by HLL during 2012-13 & 2013-14 Study on pricing of jute bags based on updated data Second report on Impact of FTA on IDs - revisiting of IDs studies conducted in 2012-13 and 2013-14 Study on Depreciation cost of Jute Gunny bags

mfg

Pricing -Govt. Procurement

Ministry of H&FW

1

mfg

Pricing -Govt. Procurement FTA analysis

Ministry of Textiles Suo-moto

1

mfg

Pricing - Govt. Procure ment

1

28

Study on costing structure/ Benchmarking for testing / homologation charges at NATRIP’s centres:

Services Sector

Pricing – public utility

Ministry of Consumer Affairs Food & Public Distribution Department of Heavy Industry

29

Principles of determination of tariffs for passenger fares by the city bus services in BRT Corridors & non BRT cities / corridors. [19 cities / 12 States] – namely Study on per capita costs of surface water based piped water supply schemes to cover (i) Arsenic affected habitations (ii) Fluoride affected habitations O & M Costs of Single village and multi-village rural water supply schemes – Six states - West Bengal, Bihar, Rajasthan, Karnataka, Maharashtra & Madhya Pradesh

Services Sector

Pricing – public utility

Ministry of Urban Development

8

Services Sector

Pricing – public utility

Ministry of Drinking water and Sanitation

3

Services Sector

Pricing – public utility

Ministry of Drinking water and Sanitation

6

25 26

27

30

31

mfg

1

7

1

No. 36of reports indicated is zone wise however, no. of study reports may get enhanced if state wise reports are submitted

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ANNUAL REPORT 2014-15

32 33

34

35

37

38

39 40

41 42

43

44

1

Operational & Maintenance cost of irrigation projects Assessment of normative cost of drinking water supply Assessment of normative cost of water used for irrigation Assessment of normative cost of industrial water supply Principles of determination of tariffs for passenger fares by the operational metro rail companies Study on per capita costs of piped water supply schemes base in Arunachal Pradesh (a) On gravity flow (b) On pumping Principles of determination of tariffs for water supply Principles of determination of tariffs for Solid waste management Principles of determination of tariffs for Sanitation Study of multiple use of natural gas in various sectors across Goa and benefits to the Environment Study on Determination of State-wise average cost of Transmission including technical and non-technical losses Study on Impact of Power Sector Reforms on financial Health of the Distribution companies and their respective payment capability for the next five year

Services Sector Services Sector

Pricing – public utility Pricing – public utility

Ministry of Water resources Ministry of Water resources

5(1)

Services Sector

Pricing – public utility

Ministry of Water resources

5(2)

Services Sector

Pricing – public utility

Ministry of Water resources

5(2)

Services Sector

Pricing – Public Utility

Ministry of Urban Development

3

Services Sector

Pricing – public utility

Ministry of Drinking Water & Sanitation

1

Services Sector Services Sector

Pricing – Public Utility Pricing – Public Utility

Ministry of Urban Development Ministry of Urban Development

5(2)

Services Sector Services Sector

Pricing – Public Utility Others

Ministry of Urban Development State Government of GOA

5(3)

Services Sector

Pricing – public utility

Ministry of Power

5

Services Sector

Pricing – public utility

Ministry of Power

5

5(2)

5(3)

1

No. 36of reports indicated is zone wise however, no. of study reports may get enhanced if state wise reports are submitted 2 No. of reports indicated is zone wise however, no. of study reports may get enhanced if state wise reports are submitted

144

Attached & Subordinate Offices

46

47

48

49

50

51

52

53

54

55

Study on Comparative study of open access charges in distribution and recommendation of optimum tariff for open access Study on impact of change in royalty rates of coal and lignite on thermal power generation tariff in addition to tariff based bidding for allotment Study on Benchmark distribution margins for bidding out distribution services for privatization of distribution Freight rates of transporttation of fertilizers for the state of Uttarakhand and 18 districts of different states Study on actual and normative milling charges for raw rice and par boiled rice Study on quantum, value and type of bio-resources exported from India Study of successful commercial models adopted by self help group for livelihood generation and sustainability in Punjab Study on interventions through joint forest management on livelihood improvement and increase in purchasing power of local communities Impact of taxation on Minor Forest Produce to the Local communities Impact of Certification on cost benefit ratio of handicraft items exported from India

Services Sector

Pricing – public utility

Ministry of Power

5

Services Sector

Pricing – public utility

Ministry of Power

1

Services Sector

Pricing – public utility

Ministry of Power

5

Services Sector

Pricing – Public Utility

Ministry of Chemicals and Fertilizers

2

Services Sector

Pricing – Public Utility

Ministry of food and Public distribution

1

Social Sector

Industry specific study

1

Social Sector

Others

Ministry of Environment & Forest Punjab State Council for Science & Technology

Social Sector

Others

Ministry of Environment & Forest

1

Social Sector

Others

1

Social Sector

Industry specific study

Ministry of Environment & Forest Ministry of Environment & Forest

1

1

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ANNUAL REPORT 2014-15

56

57

58

59

60

61

62

Assessment of fuel wood extraction from India’s forest for meeting energy needs. Study to analyse the effect of lower duties on revenue foregone vis-a-vis possible economic benefits obtained in the cost of construction of residential apartments/houses in selected States/UTs Economics of utilization of bio-resources (medicinal & aromatic plants) in the state of Punjab. Contribution of Agro and Farm Forestry for meeting industrial demand of forest produce / products in the country and scope for wood based industry Study on Socio-economic impact of Bt Cotton in Punjab

Social Sector

Others

Ministry of Environment & Forest

1

Social Sector

Industry specific study

Ministry of Housing and Urban Poverty Elevation

1

Social Sector

Industry specific study

1

Social Sector

Industry specific study

Punjab State Council for Science & Technology Ministry of Environment & Forest

Social Sector

Industry specific study

1

Integrated reports/study on cultivation of medicinal plants linked to marketing value added health products in the designated Biosphere Reserves by the Ministry on Environment & Forests. Coal pricing subsidiary wise i) SIngareni Collieries SCCL

Social Sector

Industry specific study

Punjab State Council for Science & Technology Ministry of Environment & Forest

Mining Sector

Pricing – Public Utility

Ministry of Coal

8

ii) iii) iv) v) vi) vii)

146

Coal India Ltd subsidiary ECL Coal India Ltd subsidiary MCL Coal India Ltd subsidiary NCL Coal India Ltd subsidiary NFCL Coal India Ltd subsidiary SECL Coal India Ltd subsidiary WCL

1

1

Attached & Subordinate Offices

Office of the Salt Commissioner, Jaipur Salt is a central subject under Item no.58 in 7th Schedule of the Constitution of India. The Salt Commissioner's Office (SCO) is an attached office of this Department, with its headquarters at Jaipur and is headed by the Salt Commissioner. There are five Regional Offices at Chennai, Mumbai, Ahmedabad, Jaipur and Kolkata, besides the field offices in the salt producing states. SCO is primarily responsible for administration of the Salt Cess Act, 1953 and rules made thereunder. It is also responsible for planning and facilitating production of salt, promotion of technological development, arranging equitable distribution and monitoring the quality and price of salt, custody and superintendence of departmental salt lands, promotion of exports and preshipment inspection, collection of salt cess, assignment fee, ground rent, undertaking labour welfare measures, rehabilitation of salt works affected by natural calamities, etc. The Ministry of Health and Family Welfare is implementing a plan scheme National Iodine Deficiency Disorders Control Programme (NIDDCP). SCO is the nodal a g e n c y fo r i t s i m p l e m e n t a t i o n o f components pertaining to monitoring of production and the quality of iodized salt at production level and its distribution to the consuming centers. SCO is the inspecting agency for the issue of export-worthy certificate for export of salt under the Quality Control and Export Inspection Act,1963.

Petroleum & Explosives S afety Organisation The Petroleum and Explosives Safety Organization is headed by the Chief C o n t ro l l e r o f E x p l o s ive s w i t h i t s headquarter at Nagpur (Maharastra). It is the nodal agency to look after safety requirements in manufacture, storage, transport and use of explosives and petroleum. It has five Circle offices located in Kolkata, Mumbai, Chennai, Faridabad and Agra and 18 Sub-circles offices in the country. It also has a Departmental Testing Station(DTS) at Gondkhairy, Nagpur where tests on explosives, safety fittings of road tanker, cylinders/containers are carried out. The department has a Fireworks Research and Development Centre (FRDC) at Sivakasi (Tamilnadu) for testing and development of eco-friendly fireworks. In order to ensure safety and security of public and property from fire and explosion, the organisation as a statutory authority, is entrusted with responsibilities under the following Acts and Rules framed hereunder: The Explosives Act, 1884 1. The Explosive Rules, 2008. 2. The Ammonium Nitrate Rules, 2012 3. The Gas Cylinders Rules, 2004. 4. The Static & Mobile Pressure Vessels (Unfired) Rules, 1981. 5. Notification No. GSR 625(E) dated 07.08.1983, regarding Acetylene.

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ANNUAL REPORT 2014-15

The Petroleum Act, 1934:

Modernization and Computerization:

1. The Petroleum Rules, 2002 2. The Calcium Carbide Rules, 1987 3. The Cinematography Film Rules,1948 Major Activities and Functions: 1. To approve layout and construction plans/licensing for explosives manufacturing units and other installations ; 2. To scrutinize the returns of purchase, use and sale of explosives throughout the country. 3. To regulate and implement safety regulation norms in over 2.56 lakh licensed premises/units used for manufacture, storage, transport and handling of hazardous substances; 4. To advise Port, Airport and Railway authorities in respect of transportation of explosives & other dangerous substance whenever asked for. 5. To impart training to police personnel, security and other officers in safe handling of explosives; Revenue and Expenditure: The Organisation has always been revenue surplus. The trend of growth in revenue and expenditure of the Organisation for the last five years are as below in Table Rupess in crores: Year

Revenue

2010-11 2011-12 2012-13 2013-14 2014-15 (upto 31/12/2014)

57.04 54.33 67.14 72.10

Expenditure Non-Plan 20.43 23.58 25.20 27.66

46.2

22.78

148

The following steps have been initiated to make the functioning of the organization more efficient, transparent and user friendly: i)

Under the e-governance project of Government of India, the processes relating to internal functioning of PESO as well as those relating to providing various services has been re-engineered and made entirely o n l i n e . P E S O h a s i t s we b s i t e (http://peso.gov.in) with adequate security features which is regularly updated. The wide area network (WAN) and related IT infrastructure (hardware and software) have been upgraded according to the requirements. All the PESO offices have been brought under Explonet Network. The licensing work of PESO from grant of construction approval, grant of licence, amendment, renewal, suspension, cancellation of licences are being done online by all PESO offices across the country. The data is simultaneously updated on the PESO’s website. Applicants can also view status of their application and can also download letters issued by PESO. Video Conferencing is also being used for five Circle offices and Head Office at Nagpur. All Explosives manufacturers including SME manufacturers are submitting their explosive production data online from 1st July, 2010 and for

Attached & Subordinate Offices

holders of Explosives Magazine Licenses, online submission is compulsory. Under the Explosive Rules, the existing ERS (Explosives Return System) has been enhanced to compulsorily generate RE-11 (indent) on the part of purchaser. Preparation of RE-12 also goes through the checks and balances provided in the system to adhere to various rules framed in Explosives Rules’2008. On actual receipt of explosives, the consignee accepts the explosives online in the ERS. Thus, features like knowing the real-time stock have further enhanced t h e E RS a n d s t re a m l i n e d t h e transaction of explosives to a great extent. Introduction of pass for use (RE-13) is another initiative launched for users of explosives in mines and other sites to streamline the usage and maintenance of records. This new initiative will greatly help to curb the misuse and mis-appropriation of explosives and will also bring accountability. Sites of use of explosives with names of blasters will also be captured in the database. ii)

The indents, pass for sale and pass for use of explosives are generated by the system with a Rule engine which does not allow any licensee to deviate from provisions. Quarterly Returns of explosives (RE7) are filed online by licensees. All transactions (Returns) are cross checked by the System.

iii)

All District Magistrates/ SPs have been given link to the PESO website to view movement of explosives in their jurisdiction, whereas DIPP/ MHA can see movement across the country. System generated SMS Alert service has been commenced for all transactions of explosives i.e. issue of indents by consignee, supply of explosives, receipt of explosives etc.

iv)

For penal action under Explosives Rules i.e. Suspension & Cancellation, email facility has been integrated with the internal application. The system sends an email to concerned DM and SP (wherever e-mail ids are available) in case the license is suspended or cancelled under their jurisdiction.

v)

E-filing of application for external stakeholders under Petroleum Rules, 2002 has started. The licensees have been provided with facility to register with PESO portal and maintain their License-Portfolio. This system also provides them a facility to send their application online to the concerned office of PESO in India. In this process, to provide e-filing to external stakeholder, the internal application has also been completely revamped with additional features.

vi)

Under SMPV (U) and Petroleum Rules, an initiative for Competent Persons has also been launched. This initiative has streamlined the online generation of test certificates by competent

149

ANNUAL REPORT 2014-15

persons to a great extent. The generated certificates also get linked to respective license file at the time of processing of applications. During processing, PESO officers can view certificates issued by the competent person online and can also verify his signature with the online record. This will eliminate the scope of forgery in the certification process. Controller General of Patents, Designs and Trade Marks (CGPDTM) The Controller General of Patents, Designs and Trade Marks (CGPDTM) administers the Patents Act, 1970, the Designs Act 2000, the Trade Marks Act 1999 and the Geographical Indications of Goods (Registration and Protection) Act, 1999. The Office of Controller General of Patents, Designs and Trade Marks is located at Mumbai. The CGPDTM also advises the Government on matters relating to Intellectual Property Rights. The Patent Information System and the Rajiv Gandhi National Institute of Intellectual Property Management (NIIPM), both located at Nagpur come under the purview of the CGPDTM. The CGPDTM supervises the functioning of: a.

The Patent Offices (including the Designs Wing) at Chennai, Delhi, Kolkata & Mumbai.

b.

The Patent Information System (PIS) and National Institute of Intellectual Property Management (NIIPM) at Nagpur.

150

c.

T h e Tra d e M a r k s Re g i s t r y a t Ahmedabad, Chennai, Delhi, Kolkata & Mumbai and

d.

The Geographical Indications Registry (GIR) at Chennai.

The Government has taken several initiatives to modernize and streamline the intellectual property administration in the country in view of the strategic significance assumed by intellectual property in the context of globalization and liberalization of the Indian economy and the increasing thrust on innovation and creativity. These include both legislative and administrative measures to create a modern facilitative set-up. Under the modernization project of IPO , four IPO buildings at Delhi, Mumbai, Kolkata and Chennai and new building for Rajiv Gandhi National Institute of Intellectual Property Management (RGNIIPM)at Nagpur have been completed. The construction of a new building for Trade Marks Registry and IP Archive at Ahmedabad and ISA/IPEA building at New Delhi in the existing premises of IPO have been completed. Besides strengthening online search in the Patent Office database, novelty search facilities have been strengthened by subscribing to various patent and nonpatent databases. Digitization of old IP records is almost complete and the current records are being digitized immediately after filing and stored in the electronic database. Almost all IP information has been made available to the public on the official website. In order to increase the efficiency and

Attached & Subordinate Offices

disposal of patent applications, 248 more Examiners of Patents and Designs were selected during the year 2011-12 out of which 164 had joined and 134 of them are now working in the Patent office. The present strength of examiners of P & D in the Patent Office is 187. The Office of CGPDTM is making all efforts for expediting the recruitment to 150 vacant posts of Examiners of Patents & Designs through the written examination to be conducted by CSIR . Besides, the proposal for creation of 336 additional Examiners and commensurate number of Controllers approved during the 12th plan period has already been sent to the Ministry. Awareness creation is one of the major planks of the modernization scheme, as it educates IP stakeholders of the benefits of registration of their rights as also educates the general public, particularly the business community. These programmes are also expected to sensitise the enforcement agencies such as state police forces, customs, judiciary, etc. During 2013-14, the Office of CGPDTM has either organized or participated in 124 awareness programmes on IPRs . Out of these, 28 programmes were organized and funded by IPO including 12 programmes organized in association with industry associations for MSME clusters. IPO officials were nominated as resource persons in 96 IP-awareness and sensitization programmes conducted by other organizations. During the period from April to December,

2014, IPO has either organized or participated in 81 programmes. Out of these, 32 programmes were organized and funded by IPO which include 4 WIPO- PCT Roving Seminars and 2 WIPO-Madrid Seminars, Knowledge Expo at Delhi, Design Summit in collaboration with NID, 5 programmes conducted by Geographical Indications Registry and 10 awareness p ro g ra m m e s c o n d u c te d by I P O i n collaboration with State Governments and IPO officials were nominated as resource persons for 49 IP-awareness and sensitization programmes which were conducted by other organizations. The official website of the CGPDTM, namely www.ipindia.nic.in contains information that includes all IP-laws and rules administered by the Office, reports, official e-journals, public search facility of IP records, dynamic utilities for public, public notices and news. During the year 2013-14, the Patent Office generated revenue of 188.27 crore, Designs Wing Rs. 1.34 crore, Trade Marks Registry Rs. 122.50 crore, Geographical Indications Registry Rs. 0.06 crore and NIIPM/PIS generated Rs. 0.07 crore. Thus, the total revenue generated by the Office of CGPDTM during 2013-14 is Rs. 312.25 crore, which is higher than the revenue of Rs. 282.32 Crs earned in the year 2012-13. The total non-plan expenditure during 2013-14 was Rs. 39.63 crore. Thus, against a total revenue of Rs. 312.25 crore earned during 2013-14, the actual expenditure was

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ANNUAL REPORT 2014-15

Rs. Rs. 39.63 crore, leaving a revenue surplus of Rs. Rs. 272.62 crore. It is expected that in the financial year 2014-15, the revenue will be higher than in the previous year. During the period from April to December 2014, the total revenue generated by the Office of CGPDTM is 378.52 crore which includes the revenue of Rs. 278.29 crore generated by Patent Office, Rs. 1.13 crore by the Designs Wing, Rs. 99.01 crore by the Trade Marks Registry, Rs.0.03 crore by the Geographical Indications Registry and Rs. 0.06 crore generated by NIIPM/PIS. The total non-plan expenditure during 2014-15 was Rs. 29.29 crore. A brief summary of the activities of the various offices under CGPDTM is given below: Patent Office: The Patent Office performs statutory functions relating to the grant of patents for inventions, renewal of patents, amendments, restoration of lapsed patents, grant of compulsory licenses, registration of patent agents etc. under the Patents Act 1970. The Head Office of the Patent Office is at Kolkata with branch offices at Chennai, Delhi and Mumbai. The offices deal with the applications for patents originating within their respective territorial jurisdictions. A total of 42951 patent applications were filed during 2013-14 is, out of which 9540 patent applications have been received through e-filing facility. The number of applications examined during 2013-14 is

152

18615 whereas the number of patents granted during the above period is 4227 and number of disposal of applications is 11411. The number of patent applications filed during the period from 1st April 2014 to 31st December, 2014 is 32269, out of which 21457 patent applications have been received through e-filing facility. The number of applications examined during the period from 1st April 2014 to 31st December, 2014, is 15525 whereas number of patents granted is 4817 and number of disposal of applications is 9893. Through the Patents (Amendment) Rules 2014, the Fee concession to MSME sector has been provided in all patent fees. A third category of applicant for patent has been introduced in the form of “small entity” and the fees charged to them has been fixed in between the fees for a natural person and for all persons other than natural persons (except a small entity). Indian applicants are also increasingly using the Patent Cooperation Treaty (PCT) route to obtain patents in other countries. The number of international applications filed by Indian applicants using the PCT system was 816 during 2013-14 and 599 applications have been filed during the period from April to December, 2014. T h e Wo r l d I n t e l l e c t u a l P r o p e r t y Organization (WIPO), a United Nations agency specialized in the field of Intellectual Property Rights, in its General Assembly meeting held in September-October 2007 at Geneva recognized the Indian Patent Office

Attached & Subordinate Offices

as an International Searching Authority (ISA) and an International Preliminary Examining Authority (IPEA) under the Patent Co-operation Treaty. This puts India in an elite group of 17 Patent Offices recognized as ISAs and IPEA. Patent Office has started functioning as ISA/IPEA at Patent Office Delhi with effect from 15th October, 2013. During 2013-14, 145 international applications choosing India as ISA were received in Patent Offices at four locations whereas during the period from April to December, 2014, 538 international applications choosing India as ISA have been received in Patent Offices at four locations. A comprehensive and dynamic Patent Search Portal has been developed in the IPO website. The patent search facility in the website has been considerably strengthened. The status of patent applications including publication, examination and grant as well as all post- publication patent documents are available freely for public search in the website. A modified portal for E- Register of Patents has been made available in the website. Many dynamic utilities on patent have been made available in the website for the benefit of the public like, displaying the month of filing of Request for Examination for which First Examination Report is being issued; knowing the group-wise and location-wise dates of Requests of Examination (RQ) for which First examination Report (FER) has been sent to the applicants; displaying the status on disposal of patent applications by the

respective examination groups during the specified period. The utility for facilitating search to ascertain the status of a patent has also been provided. Besides, the facility for displaying patents, which have expired or ceased to have effect by reason of failure to pay the renewal fee has been provided by their number, title and technical / scientific field. Also, the facility for viewing “ First E xa m i n a t i o n Re p o r t ( F E R ) ” i s s u e d (Jurisdiction and Group-wise) at all locations of Patent Office has been made available. A Stock and Flow based Dynamic Utility for Patent has been made available to provide the applicants/stakeholders with the facility on real time basis to view the Patents under different stocks and the flow of applications at various stages of processing. The comprehensive e-filing facility covering all Forms was made available earlier by IPO for patents and for trademarks. Further, 10 % surcharge in fees on physical filing has been introduced through the amendment of Patents (Amendment) Rules 2014 with the objective of promoting online filing . Because of these initiatives, the online filing has increased to about 75 % in patents. The Comprehensive Payment gateway (including internet banking, Debit and Credit Cards) for payment of patent and trademark fees integrated to the e-filing system has been launched on 8th September, 2014 to extend the facility of online payment gateway for Patent and Trademarks through multiple banks (about 55 banks) with Central Bank of India (CBI) as a focal and

153

ANNUAL REPORT 2014-15

accredited bank. Due to introduction of Comprehensive Payment gateway, the online filing is expected to increase further for both patents and trademarks . The Patent Office subscribes to major global patent and non-patent databases for prior art search to be conducted by the examiners. The Manual of Patent Office Practice and Procedures has been prepared to ensure uniformity in operation and the same is available on the website. Further, the “Guidelines for Processing of Pa t e n t A p p l i c a t i o n s r e l a t i n g t o Traditional Knowledge and Biological M a te r i a l ” a n d “ Guidelines for Examination of Biotechnology Applications” have been published in the official website. The "Guidelines for examination of patent applications in the field of Pharmaceuticals have been published in the official website on 29th October, 2014. The digitization of old patent records is almost complete and current patent records are digitized immediately after filing the documents so that these are available for examination. These steps have resulted in a significant improvement in the performance of the office. Rajiv Gandhi National Institute of Intellectual Property Management (RGNIIPM) and Patent Information System (PIS), Nagpur: Patent Information System (PIS) at Nagpur maintains a comprehensive collection of patent specifications and patent related

154

literature on worldwide basis and provides technological information contained in patent or patent related literature through search services and patent copy supply services to various users of industry, R&D organizations, inventors, Government departments, undertakings/entrepreneurs, business community and other IP users within India. The Rajiv Gandhi National Institute of I n t e l l e c t u a l P ro p e r t y M a n a g e m e n t (RGNIIPM) Nagpur is a specialized institute for catering to training, education, research and think tank functions in the field of Intellectual Property. It provides training to Examiners of Patents & Designs and regularly conducts refresher courses for them. It also organizes awareness programme for users such as patent attorneys, scientists, researchers etc. During 2012-13, the 3- month induction training of 100 new Examiners of Patents & Designs was completed at RGNIIPM in May, 2012 and also, the second batch of 57 new Examiners of Patents & Designs was given 3- month induction training during July to October, 2012. In addition, 10 public programmes on IP- training and awareness were conducted by RGNIIPM during 2012-13. During 201314, the induction training for remaining 9 examiners from the third batch and 1-month advanced training for all 140 new examiners was conducted. Besides, 14 public programmes on IP-awareness/training have been conducted by RGNIIPM during 2013-14.

Attached & Subordinate Offices

During the period from April to December, 2014, 15 public training programmes on IP and 1 IP- awareness programme for public have been conducted by RGNIIPM. Industrial Designs Wing: The registration of industrial designs under the Designs Act 2000 is done by the Designs Wing of the Patent Office located at Kolkata. Filing of designs applications in branch offices at Chennai, Delhi and Mumbai is also permitted. The thrust of the modernization programme of the Design office includes transition from the essentially paper-based examination procedure to an IT based system supported by computerization of existing records, online search facilities, setting up a user-friendly website and creation of a digital library. A total of 8533 applications for registration of design were received in 2013-14 and the number of design applications examined was 7281. Number of designs registered during 2013-14 was 7178. The number of new applications for design st received during the period from 1 April st 2014 to 31 December, 2014 is 7124 and the number of design applications examined was 5811 whereas 5373 designs have been registered during this period. Trade Marks Registry (TMR): The Trade Marks Registry (TMR), with its Head Office at Mumbai and branch offices at Ahmedabad, Chennai, Delhi and Kolkata, performs statutory functions relating to administration of the Trade Marks Act, 1999 and maintaining the register of trademarks.

During the year 2013-14, 200005 trade mark applications were filed, registering an increase of approximately 2.98 percent over the previous year. This includes 15,865 applications received from other countries. Out of the total filing, 38145 trademarks applications were received through e-filing facility. During 2013-14, number of applications examined were 203086 and number of trademarks registered were 67876, whereas the number of disposal of applications was 104756. st

st

During the period from 1 April 2014 to 31 December, 2014, a total 153991 applications for trademarks were filed, out of which 47981 trademarks applications were received through e-filing facility. Out of the total filing, 5529 applications have been received from other countries. During this period, the number of applications examined was 109661 and total of 70365 applications have been disposed out of which 32784 trademarks have been registered. The total number of registered trademarks in India as on 31st December, 2014 is 1,01,594 out of which the number of registered trademarks by Indian applicants is 8,08,749. A dynamic Trade Mark Search Portal has been developed in the IPO website and many dynamic utilities on trademarks have been made available to the public like, online tool for attending to the requests for correction of clerical errors in the trademark records, availability of the details of TMR hearing and adjournment, displaying on real time basis the details of examination of trademark applications, show-cause hearings,

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ANNUAL REPORT 2014-15

publications in the trademark journal, registrations of trademarks, other disposals of applications (i.e. by way of abandonment, refusal etc.), other notices issued monthwise or date-wise, classification of goods and services under section 8 (1) of Trade Marks Act, 1999 for the purpose of registration of trademarks and online filing of reply to an examination report in respect of trademark application through the comprehensive e-filing services for trademarks. Further, the comprehensive details of pending Trade Mark Applications as well as Registered Trademarks including the scanned copies of documents, prosecution history, examination report, copy of the application, copy of the trademark certificate, opposition details etc. have been made available free of cost to the public through the official website. A Stock and Flow based Dynamic Utility for Trademarks has been made available to provide the applicants/ stakeholders with the facility on real time basis to view the Trade marks under different stocks and the flow of applications at various stages of processing. The Government of India has acceded to the Madrid Protocol for protection of t ra d e m a r k s t h ro u g h i n t e r n a t i o n a l registrations by depositing Instrument of Accession with the World Intellectual th Property Organization on 8 April, 2013. The necessary amendments in the Trade Marks Act 1999 and Trade Marks Rules 2002 have been made and the provisions of Madrid Protocol have come into force in th India since 8 July, 2013.

156

As on 31st March, 2014, India has been designated for the protection of trademark in a p p r o x i m a t e ly 3 1 3 8 i n t e r n a t i o n a l applications. Indian Trade Marks office has certified and forwarded 74 applications to WIPO till 31st March, 2014. st

As on 31 December, 2014, the Trade Marks Registry has received 9594 international registrations from the WIPO, seeking protections of trademarks in India. The Trade Marks Registry has forwarded 187 Indian applications to the WIPO, seeking protection of marks through international registration under the Madrid Protocol. Geographical Indications Registry (GIR): The GIR is a statutory organization set up for the administration of the Geographical Indications of Goods (Registration and Protection) Act, 1999, which came into force th on 15 September 2003. The Registry is situated at Chennai. Total 215 Geographical Indications (GIs) have been registered as on st 31 December, 2014. The list of registered GIs (products) inter alia includes Darjeeling Tea, PochampalliIkat, Chanderi Fabric, Kota Doria, Kancheepuram Silk, Mysore Agarbathi, Mysore Silk, Madurai Sungudi, Kullu Shawl, Assam (Orthodox), Nilgiri (Orthodox), Kani Shawl, Kashmir Pashmina, Kashmir Sozani Craft, Lucknow Chikan Craft, Venkatagiri Sarees, Villianur Terracotta Works, Mango Malihabadi Dusseheri, Vazhakulam Pineapple, GirKesar Mango, Udupi Mattu Gulla Brinjal, etc. During 2013-14, 75 applications for Geographical Indications were received and 22 applications were registered.

Attached & Subordinate Offices

During the period from April- December 2014, the Geographical Indications Registry has received 25 applications which are under processing. The Geographical Indications Registry has conducted many awareness programmes throughout India to promote registration of the Indian Geographical Indications. The Sectors being focused on are tea, coffee, rice spices, tobacco, horticulture products, handloom products, handicrafts, textiles, processed food items, and spirits & wines.. The Geographical Indications Registry had conducted 10 awareness programmes/ seminars/workshops on GI during 2013-14. Besides this, the GIR officials have participated as faculty in 6 GI awareness programmes conducted by external agencies. During the period from April- December, 2014, Geographical Indications Registry has conducted 5 awareness programmes/ seminars/workshops on GI. Besides, GIR officials have participated as faculty in 8 GI awareness programmes conducted by external agencies. The software has been developed according to the workflow of GIR. The publication of Geographical Indications Journal has been made in-house. The online public view of GI documents has been provided in the website. Intellectual Property Appellate Board (IPAB) Introduction Intellectual Property Appellate Board

(IPAB), a quasi judicial body was set up as a statutory Board by the Government of India vide Gazette Notification NO: S.O. 1049 (E) Dated 15.9.2003. It has been established to hear appeals against the decisions of the Registrar and to hear applications for rectification of entries in the Registrar of Trade Marks under the Trade Marks Act, 1999, the Geographical Indication of Goods (Registration and Protection) Act, 1999 and Patents Act, 1970. IPAB has its headquarters at Chennai and besides Chennai, it holds the Circuit Bench Sittings at New Delhi, Mumbai, Kolkata and Ahmedabad. Presently, Shri. Justice K. N.Basha is the Chairman of the Board. Mr. D.P.S. Parmar is the Technical Member (Patents) and Shri .Sanjeev Kumar Chaswal is the Technical Member (Trade Marks). The number of appeals/applications transferred from various High Courts (Transferred Appeal / Transferred Rectification Application) and the number of original appeals/application (Original Appeal / Original Rectification Application) directly filed before the Intellectual Property Appellate Board are as given below: st

During the period from April 2014 to 31 December 2014, 267 Trade Marks Cases have been filed and 89 cases have disposed of. During the same period 73 Patent Cases have been filed and 44 cases have been disposed of.. 3 cases of GI case has been filed during the above period.

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ANNUAL REPORT 2014-15

Trade marks cases received from April, 2014 to December, 2014 Place

Transferred Appeal

Transferred Rectification Application

Chennai

0

0

Delhi

0

0

Mumbai

0

Ahmedabad

Original Appeal

Original Rectification Application

Total

31

45

1

100

101

0

6

57

63

0

0

4

27

31

Kolkata

0

0

2

25

27

Total

0

0

27

240

267

14

Trade Marks cases disposed from April, 2014 to December, 2014 Place

Transferred Appeal

Transferred Rectification Application

Chennai

0

0

Delhi

0

Mumbai

Original Appeal

Original Rectification Application

Total

15

10

25

0

22

3

25

0

0

12

7

19

Kolkata

0

0

3

1

4

Total

0

0

52

21

73

Original Rectification Application

Total

Patent cases received from April, 2014 to December, 2014 Place

Transferred Appeal

Transferred Rectification Application

Chennai

0

0

0

2

2

Delhi

0

0

14

7

21

Mumbai

0

0

2

6

8

Kolkata

0

0

1

12

13

Total

0

0

17

27

44

158

Original Appeal

Attached & Subordinate Offices

Geographical indication cases received from April, 2014 to December, 2014 Place

Chennai

Transferred Appeal

Transferred Rectification Application

0

0

Original Appeal 0

Original Rectification Application

Total

2

3

Geographical indication cases disposed from April, 2014 to December, 2014 Place

Transferred Appeal

Transferred Rectification Application

Chennai

0

0

Total

0

0

Central Manufacturing Technology Institute, Bangalore Central Manufacturing Technology Institute, a premier R&D organization in the manufacturing technology, established in the year 1962, is an autonomous body, registered as a Society and under the Administrative control of Department of Industrial Policy & Promotion, Ministry of Commerce & Industry. It is supporting Indian Industries to achieve excellence in technology and stimulate economic growth. The Institute is active in metal working technology, evolving solutions to national strategic initiatives and is a one-stop destination for end-to-end solutions in manufacturing technology deployment. It functions through Governing Council, which has representatives from industries in manufacturing sector, machine tool manufacturers, Government nominees and others. CMTI continues to support the Indian

Original Appeal

Original Rectification Application

Total

0

2

0

0

2

3

engineering industry and various sectors through its value added services in manufacturing technology and product development/realization activities. It continues to play a vital role of a catalyst in the application of manufacturing technology. The Institute is equipped with trained manpower, equipment and facilities for design, research, prototype production, manufacturing, testing, inspection, calibration, product development, training and technical information. The implementation of major projects under the XII plan are in various stages of progress which includes (i) the establishments of activities and procurement of advanced high technology equipment and establishments of facilities for Nano-Manufacturing Technology Centre (NMTC), (ii) Advanced Machine Tool Testing Facility (AMTTF) (iii) Academy of Excellence for Advanced Manufacturing Technology (AEAMT). New project on “Sensor Technology Development

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ANNUAL REPORT 2014-15

Facility (STDF)” has been taken up under the 12th plan to support the manufacturing sector to cope up with latest Micro Electro Mechanical System (MEMS) and Nano Electro Mechanical System (NEMS) technology needs. (iv) Advanced Machine Tool Testing Facility -- a PPP initiative is now operational. The innovation chairs at CMTI are occupied by acknowledged experts mentor scientists of CMTI. Under their guidance a number of innovative projects have been initiated and are basically aimed at environmental friendly and energy saving techniques. Some of the explorative themes on product innovation in progress include realization of Cryogenic cutting to avoid flood coolant, aerostatic spindles for nano-metric accuracy, Nano lubricants for machining applications, vortex cooling for machine tool c o n t ro l e n c l o s u re s , t h e r m a l e r ro r compensation by vision and sensor based systems, alternative materials for machine tool applications. Under the aegis of nano innovation chair, R & D projects on Surface Engineering, Micro Fabrication, Nano Product Development and Nano Characterization, etc. are in progress. The various 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 completed, (ii) Intelligent ultra-precision diamond turning machine capable of nano-metric

160

dimensional and feature accuracies, sensor integrated machining process, etc. completed, (iii) Development of Technology for Nano Composite Structure using CNTs a n d C e ra m i c s i s i n p ro g re s s , ( iv ) establishment of indigenous advanced R & D set up for Micro stereo lithography completed, (v) Development of Laser dressing devices for super abrasive wheels for commercial application and R & D is in progress, (vi) Determination of Nano - scale feature dimensions using a novel optical imaging technology completed, (vii) Green machining including hard turning, (viii) A dva n c e d M e t ro l o g y a n d M a t e r i a l c h a ra c te r i z a t i o n te c h n o l o g i e s , ( i x ) Mechatronics including Parallel Kinematic Machines, Automation and 3D vision technique (x) thermal error compensation module for ultraprecision machine tools, (xi) Real Time Measurement of Machine Tool Vibration for Adaptive Control, (xii) Media development for Abrasive Flow Finishing are some of the technology development activities. Collaboration with national academic institutions and other institutions for R & D and academic related activities are being pursued CMTI signed the following MoUs with (i) National Aerospace Laboratory (NAL), for t e c h n o l o g y d e ve l o p m e n t ( i i ) i2n Te c h n o l o g i e s P v t . L td fo r p ro d u c t development (iii) Indian Institute of Technology, Kanpur (IITK) for product Development (iv) Metrology Society of India

Attached & Subordinate Offices

- Southern Region (MSI-SR) for Conferences, Seminars, and Short Term Training Program on metrology. (v) National Institute of Technology Warangal, (NITW) for graduate, post graduate and doctoral level programs in mechanical engineering discipline.

i.

Academy infrastructure including A d va n c e d m a n u f a c t u r i n g a n d Technology Laboratories, Webenabled learning facilities, digital Library, etc., is in the advanced stages of completion.

Performance During the Year

ii.

CMTI and NIT, Warangal signed a ‘Memorandum of Understanding’, for jointly offering graduate, post graduate and doctoral level programs in mechanical engineering discipline. CMTI will be assisting NITW in setting up a “Centre of Excellence for Additive Manufacturing” at NITW, jointly execute R&D projects in advanced manufacturing technologies and train NITW faculties on advanced manufacturing topics. A two year M . Te c h p ro g ra m s o n Ad d i t ive Manufacturing was launched in collaboration with NIT, Warangal.

c)

Advanced Machine Tool Testing Facility (AMTTF)

1.

XII Plan Projects on Advanced Technology Areas:

a.

Nano Manufacturing Technology Centre (NMTC)

As a part of this Flagship project under DIPP, i.

Collaborative R & D and related activities namely Abrasive flow finishing machine (AFFM), Micro stereo lithography (MSL), Intelligent ultra precision machine (iUPTM) and p r o t o t y p i n g o f D i a m o n d l i ke carbon(DLC) technology have been completed

ii.

New R&D projects have been initiated in collaboration with various organization like DEBEL, TITAN, i2n Technologies, IISc, PCVL, Hindustan syringes, VIT etc.

iii.

b)

The Civil construction work for new building has progressed further and scheduled to be completed.

This PPP initiative between DIPP and Machine Tool Industries is already operational at the CMTI campus. d)

Approval has been accorded by DIPP for the establishment of Sensor Technology Development Facility. As part of this activity,

Ac a d e my o f E xce l l e n ce f o r Advanced Manufacturing Technology (AEAMT)

As a part of this Flagship project under DIPP and the “Industry Ready Engineers” initiative

Sensor Technology Development Facility (STDF)

i.

R & D Project

a.

‘Machine Health Management System’ is in progress.

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ANNUAL REPORT 2014-15

b.

Research on development of 3D measurement system by Fringe Projection Profilometry is in progress.

• 2.

Double Sided Mask Aligner, is in progress.

Design & Development

The Institute undertakes design and d eve l o p m e n t o f S p e c i a l M a c h i n e s , Equipment and Test systems for customers. Currently, the Institute is involved in the following development projects a.

Special tooling’s for applications in the Ship building industry are completed.

Lower Human Jaw Bone Model

Tyre Mold ii.

State of art MEMS packaging equipment are in the advanced stage of procurement.

iii.

Installation and commissioning •

162

HEPA filters and air handling unit is nearing completion.

Stud Tensioning Equipment (SC) a.

The Centreless Bar Turning Machine configured with double head for carrying out roughing & finishing of round bars in one pass, for better productivity is completed

Attached & Subordinate Offices

b.

3000 L capacity vertical mixer the largest capacity mixer capable of chemical mixing is in the advanced stages of assembly.

l.

Development of ‘Battery operated hydraulic rig’ to charge ‘parking brake accumulator’ for aerospace application is in progress

c.

4.5 T capacity vertical mixer is completed & supplied to space sector to 'process larger batch capacity in shorter cycle time'.

m.

Development of Diamond Turned Molds for Microlens Arrays is in progress

n.

'Spill Tray' for the VM-4.5T Vertical Planetary mixer is completed & supplied

Development of ‘micro needle based electrode’ for bio-potential measurement is in progress

3.

Precision Manufacturing Services

d.

e.

The assembly of 160 Litres pilot processing vertical mixer the smaller capacity Vertical Planetary Mixer is in progress.

f.

Indigenous development of Twin Screw continuous mixer for continuous mixing is in progress.

g.

Special Cutting Device a unique combination of a special purpose cutting tool and a manipulator arm is completed

h.

Manufacturing of components for centreless bar peeling machine with unique multi-cutter design is completed & assembly is in progress.

i.

Accessories for MY-120 Mixer is completed

j.

Accessories for MY-120 Mixer is completed

k.

Development of spherical lapping lathe tool attachment for bio medical application is in progress

Development of technology for manufacture of precision and micro parts, providing machining services for in-house projects, meeting external requirements in addition to R&D are the focus of Precision Manufacturing services. a.

Hydrodynamic Bearings having an accuracy 75% CaCO3 permitted as performance improver by Bureau of Indian Standards). Further, Portland Limestone Cement (PLC) samples prepared by inter grinding of 10 to 35% marble dust and conventional limestone showed comparable or marginally improved physical performance.



180

Investigation have been taken up on characterization of fly ash samples from NTPC unit, generating about 4.5 million tonnes of fly ash annually. Accordingly the fly ash samples were collected and characterized for properties as per IS:3812 for their chemical and physical characteristics.



The samples of non ferrous slag were investigated for their suitability as raw mix component in the manufacture of cement. It was found that the slag had appreciable glass content and could be utilized upto 3.0 percent in designing the raw mix for making up the requirements of the fluxing components such as Al2O3 and Fe2O3. The resultant clinker samples prepared in the laboratory indicated improved quality in terms of mineral phase development and granulometery. The cement sample so prepared was found to conform to all the requirements of the Indian Standard specification for 53 grade OPC.



Investigations on sludges from effluent treatment plant having iron oxide along with small amount of titanium oxide were carried out on establishing their utilization in cement manufacture. It was found that the sludge could be used as raw mix component resulting in desirable quality of clinker. It was also found that the presence of titanium oxide in these waste byproducts helped in lowering in clinkerization temperature by about 50oC. The investigations are under process.



A t t h e I n d e p e n d e n t Te s t i n g Laboratories of NCB, investigations for chemical, mineralogical and physical properties of raw materials such as limestone, clay, coal, water,

Attached & Subordinate Offices

admixtures, clinker, cement and aggregates samples were carried out. About 7,750 samples have been tested during the period at NABL accredited laboratories.

followed in the stone crusher units were compiled.

Mining, Environment, Plant Engineering and Operations 

National Inventory of Cement Grade Limestone Deposits in India is being updated through interaction and consultation with various exploration organizations of Central & State Governments and Indian Cement Industry. The total cement grade National Inventory of Cement Grade Limestone limestone reserves are estimated at 123829.64 million tonnes.

Ambient Air Quality Monitoring at a Stone Crusher



Environment Monitoring Studies were carried out at two cement plants in Rajasthan under which ambient air quality, point source emissions, water quality and noise level near plant machinery and ambient noise were monitored.

National Inventory of Cement Grade Limestone



Study on dust emission levels and available technologies for reducing the dust emission at stone crushers was completed. Field studies for monitoring of ambient/fugitive dust for parameters like PM10, PM2.5 & suspended particulate matter were carried out at 12 stone crusher units in 4 different zones in India. Dust c o n t ro l te c h n i q u e s p re s e n t ly

Point Source Emission Monitoring at a Cement Plant



Study on “Generation of Background environmental data” at two cement plants in Rajasthan were taken up

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ANNUAL REPORT 2014-15

under which ambient air quality within 10 km radius of the plant are monitored during three different seasons. First season dust emission monitoring completed. Remaining two season’s monitoring are to be taken up. 





Techno-Economic Feasibility Report for setting up a 1 million tonne per annum capacity clinkerisation unit for a cement plant in Kenya has been submitted.

Techno-Economic Viability Study of Cement Mill Venting System is in progress for a cement plant in South India.



Study on Estimation of WHR Potential was carried out for a cement plant in South India.



Study on Plastic Waste Handling & Feeding System is in progress for a cement plant in South India.



Diagnostic Study for Minimising Coating in rotary kiln for a 1 mtpa cement plant in Gujarat is in progress.

Techno-Economic Feasibility Report for setting up a 0.6 million tonne per annum capacity grinding unit in Kenya and Tanzania each for a cement plant in Kenya has been submitted.



Study on Preparation of TEFR / DPR for 100 tpd paper grade lime plant in Nagaland is in progress.



Consultancy services provided for Third Party Quality Assurance/ Audit (TPQA) for construction of conventional underground multilevel car parking at various sites in New Delhi.

Final report was submitted for Study on Technical (Health) Audit for Mechanical, Electrical & Instrumentation and Process & Quality Aspects for three Modules at M/s Saurashtra Cement Limited, Ranavav, Gujarat.



Techno-Economic Feasibility Study on Waste Heat Recovery System was carried out for a cement company in Kenya. The waste heat energy potential along with other technical recommendations was given in the report submitted.



Techno-Economic Feasibility Study on Waste Heat Recovery System was carried out for a cement company in Kerala, India. The waste heat energy potential along with other technical recommendations was given in the report submitted.



Techno-Economic Feasibility study for setting up a 1 million tonne per annum capacity grinding and blending plant to make special cement in Western India is taken up.



Study on Assessment of Technology was carried out for a 2200 TPD cement plant in Andhra Pradesh.



A study on Assessment of Losses during Installation & Commissioning of RABH was carried out for a cement plant in South India.

182



Attached & Subordinate Offices

Construction Development and Research 

Studies on Development of Methods for Service Life Design for Concrete Structure, Development of Design Parameters for High Strength Concrete and Development of Accelerated Mix Design Method for Concrete using PPC or Flyash with OPC are in progress.



Evaluation of concrete aggregates for alkali-aggregate reactivity and other properties was carried out for 40 projects including hydroelectric and thermal power plants.



Carried out eight studies on evaluation of chemical and mineral admixtures for concrete.



About 80 concrete mixes proportion were carried out for various grades of concrete for different projects.



In-situ testing of concrete structures for assessment of quality and distress evaluation was carried out for 25 concrete structures.



Third party quality checking was carried out for 250 construction projects of Municipal Corporation of Delhi.



Detailed Third Party Inspection/ Quality Assurance for Comprehensive Development of Corridor by Construction of Elevated Road and other allied works for Public Works Department, Delhi is in progress.



Completed Phase-I of distress assessment study of 32 years old Cast in-situ RCC conduit (2800mm internal dia) carrying discharge of 200 Cusec of Ganga Water from Muradnagar to Gokulpuri, Delhi ( To t a l 2 6 K m S t r e t c h ) a n d recommendation for restoration & strengthening for Delhi Water Supply Maintenance Unit submitted.



Performance evaluation done for Steel Fibre Reinforced Shotcrete (SFRS) Lining of the underground Desilting Chambers of a hydro power project



Conducted study for installation of suitable Monitoring/Inspection Equipment inside lined water tunnels to monitor long term performance of lining without dewatering for upcoming Hydro Power projects of SJVN Limited.

Industrial Information Services 

NCB Library serves as the national information centre for cement, building materials and construction industries. The holdings of the Library have grown to 46, 440.



The Library has maintained and updated a bibliographic database consisting of about 40,800 entries.



List of indexed articles from journals received in NCB are being posted on intranet and internet website www.ncbindian.com.

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ANNUAL REPORT 2014-15



Infrastructure strengthened with Core i5/i7 based PC hardware & Data loggers with MS Windows 8 & MS Office 2013. Now NCB-Ballabgarh premises is in a Star Topology 1Gbps Fiber Optic network with Fiber redundancy. Overall it is 10 Gbps ready Fiber network with L2, L2+ & L3 based Data switches centrally managed with D-View network flow monitoring software. In all the above, IPv6 compatibility is ensured.

Continuing Education Services 

One Long Term Course, 31 Short Term Courses, 14 Special Group Training Programmes, 8 Simulator Based Courses, 12 Contact Training Programmes were organized on different topics covering cement, concrete and construction technolo-

gies for about 1100 participants from India and abroad. Quality, Management, Standards and Calibration Services 

8800 vials of certified reference materials and 1750 sets of standard lime were supplied to cement and construction industries, national testing laboratories, academic institutions and overseas laboratories during the year.



1650 equipment were calibrated for cement plant QC laboratories, construction laboratories, academic institutions and technical service organizations.



One Proficiency Testing (PT) programmes for coal was completed with the participation of 36 cement

Summary of Performance of Laboratories in Limestone PT Scheme

Parameter N

No. of Questionable Performers

No. of Outlying Performers

(2.0 < |Z| < 3.0)

(Z  3.0)

Between Labs

Within Lab

Between Labs

Within Lab

LOI (%)

20

0

0

1

1

SiO2 (%)

21

2

1

5

0

Fe 2O3 (%)

21

0

3

2

2

Al2O3 (%)

21

2

2

2

2

CaO (%)

21

4

2

2

0

MgO (%)

21

1

0

1

3

Variation between Laboratories – SiO2

184

(N = 21) in Limestone PT Scheme

Attached & Subordinate Offices

plant laboratories, R&D laboratories, NABL accredited laboratories. Testing was carried out for: Moisture, Volatile Matter, Ash, Calorific Value and Sulphur. Z-score of performance was calculated for between laboratories and within laboratory variation and feedback given to participants, individually. Summary of perfor-mance was prepared. 



One Proficiency Testing (PT) programmes for limestone was completed with the participation of 22 laboratories. Testing was carried out for: Loss on Ignition (LOI), Silica (SiO2), Iron Oxide (Fe2O3), Alumina (Al2O3), Calcium oxide (CaO) and Magnesia (MgO). Z-score of performance was calculated and feedback given to participants, i n d i v i d u a l l y. S u m m a r y o f performance was prepared. Two Proficiency Testing (PT) programmes for OPC were completed with the participation of 63 laboratories. Testing was carried out for: Loss on ignition (LOI), Silicon dioxide (SiO2), Iron oxide (Fe2O3), Aluminium oxide (Al2O3), Calcium oxide (CaO), Magnesium oxide (MgO), Sulphur trioxide (SO3), Insoluble residue (IR), Specific surface (Blaine fineness), Setting time, 3 day and 7 day compressive strength.



One training workshop (4-day duration) on ISO 17025:2005 laboratory management system & internal audit was conducted for a Cement Plant.



One training workshop (2 day duration) on ISO 17025:2005 laboratory management system & internal audit was conducted at a thermal power plant.



Study on assessment of QC and QA system was completed for a cement plant & its grinding unit.



Two studies on assistance in NABL accreditation of cement plant laboratories were completed.



PT scheme on specific gravity and water absorption of Coarse and fine aggregate in progress.



P T s c h e m e o n f ive c h e m i c a l parameters of water is in progress.

National Institute of Design (NID), Ahmedabad National Institute of Design (NID) is an internationally renowned institution with an experience of more than five decades in the field of Design-Research, application of advanced teaching methodologies, and unparalleled design research projects providing design education and is a catalyst for Indian commerce and industry. The institute is also recognised as a scientific and industrial research organization by the Department of Science & Technology, Government of India. This multi-disciplinary

185

ANNUAL REPORT 2014-15

institute in the field of design education and research has also earned its place in the top 25 European and Asian programmes in the world. NID’s efforts towards making a National Design Policy finally materialized in February 2007 when the Government of India announced the first National Design Policy (NDP), a first among developing countries. Further to this, the Government of India has initiated steps to set up design education campuses in Assam, Madhya Pradesh, Telangana and Haryana on the lines of NID, Ahmedabad. By an Act of Parliament, in July -2014, the institute has been declared as an Institution of National Importance by NID Act (no.18 of 2014) and has came into force with effect from 16th September, 2014. Professional Education Programmes The Institute offers Professional Education undergraduate programmes has become one of the best design institutes in the world with a graduate Programme (B.Des.) spreading in eight design disciplines and seventeen sector-specific post-graduate programmes (M.Des.) in diverse design domains, state of the art infrastructural facilities such as the Skill Development Labs, Knowledge Management Centre, Information Technology (IT) Centre, and Design Vision Centre. These have helped NID establish its leadership and pre-eminence among various design institutions. From the convocation held in December- 2014, the institute conferred Bachelor of Design and Master of Design Degrees to the eligible graduates.

186

Integrated Design Services (IDS) NID offers design Intervention services to corporate and specific industrial and social sectors through (a) Outreach Programmes (b) Industry Programmes & Projects (c) Design Consultancy Services, all of which come under IDS. (a)

Outreach Programmes

NID provides design intervention through Outreach Programmes for crafts and other needy sectors in governmental and nongovernmental organizations at national and international levels. As a part of the ongoing project - Design Interventions for the Basketry Craft for Empowerment of women artisans in five African countries (Under the India Africa Forum Summit II), NID executed the project in Ghana and Ethiopia between October 2013 and May 2014. Through the training workshops 30 basket weavers have been trained per country and a range of 60 new products have been developed in association with the weavers in Ghana, and 70 new products in Ethiopia. Exhibitions showcasing the respective project outcomes were held at the Modern Art Museum Gebre Kristos Desta Centre at Addis Ababa, Ethiopia in February 2014, and at ATAG (Aid to Artisans) at Accra, Ghana in May 2014. NID also exhibited its Africa project work at the CII-EXIM Bank Conclave on India-Africa Project Partnership at Hotel Taj Palace, New Delhi in March 2014. * The project - Documenting Textile Traditions of Northeastern States of India undertaken by NID under the aegis of Indira

Attached & Subordinate Offices

Gandhi National Centre for the Arts (IGNCA) is in its final stage with copy editing of seven states’ documents going on and the field research in Manipur underway. * Other important projects/workshops undertaken by the Outreach Programmes include Design & Skill Development Training Workshop for Stone Artisan Park Training Institute (SAPTI), Ambaji for Commissioner of Geology and Mining Department; Product & Skill Development Training Workshop in Bamboo for Nagaland Bamboo Development Agency; Design and Skill Development Training Workshops in Bamboo for MP State Bamboo Mission; and Collaborative Design Workshop to prepare a Blue Print for Jharkhand Design Institute for Handloom, Sericulture and Handicraft Department of Industries, Government of Jharkhand. (b)

Industry Programmes and Projects (IP&P)

In order to meet the specific requirements of the industry and bring about design awareness, and promote design activity through IP&P, NID conducts short-term training programmes, workshops and seminars, which usually take place throughout the year; these activities are conducted at all the three NID campuses. Some of the Major Design Workshops organized during April 2014 to November 2014 are as under •

A workshop on “Introduction to Design: Issues and Methods” was

conducted during 07– 11 April, 2014 at NID, Ahmedabad. Total 26 participants attended the workshop from different Institutes and Organisations. •

A three day workshop on “Public Policy and Design” was conducted during 25 – 27 June, 2014 at NID, Ahmedabad. Total 14 participants attended the workshop from different Institutes and Organisations.



A five day workshop on “Creativity, Design Strategy & Opportunity Mapping” was conducted during 25 – 29 August, 2014 at NID, Ahmedabad. Total 30participants attended the workshop from different Institutes and Organisations.



A five days workshop on “Videography for communication” wa s c o n d u c te d d u r i n g 1 7 - 2 1 November 2014 at NID, Ahmedabad. Total 13 participants attended the workshop from different Institutes and Organisations.

In order to create design awareness among the city students, IP&P also conducts summer workshops at concessional fees. This year, eight summer workshops were conducted in May 2014 at NID, Ahmedabad. The summer workshops aimed to the students, teachers, artisans, housewives etc. with a view to spread design awareness among them. Details of the summer workshop are as per below:

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The workshops received very good feedback and the participants found them very interesting / informative and career driven. The participants of the above summer workshops were from following institutes, schools and organization from all over India. This time we had also international students from Dubai, UAE.



Client base three days off campus consultancy in the field of Design Issues and Methods to Weapons & Electronics Systems Engineering Establishment (WESEE) for CMS human Machine Interface Design was conducted during 23rd to 25th September, 2014 at WESEE, New Delhi. Total 37 officials attended the programme. The programme was well appreciated and client is also very much interested for more institional relationship and more consultancy programme. Programme fee is ` 5.5 lacs. The Programme was anchored by Prof. Gayatri Menon.



Two day off campus client base programme “Design for Persuasion: Creating Dynamic, Multi – Sensory Experiences for Customer Delight” for fresh Automotive Engineers and R&D Team of Mahindra and Mahindra Ltd., Chennai was conducted during 09th to 10th October, 2014 at MRV Center, Chennai.

Some of the client specific programmes are as under: •





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Training Programme on “Stimulate your Creative Side” for Officials of Indian Naval Ship (INS), Valsura, Jamnagar was conducted on 23rd April, 2014 at INS Valsura. Necessary admin tasks are going on for other training programme for their kids and house wives. A client base Second Phase in Campus Training Programme on “Designing of Textbooks” for subject experts, illustrators, and composers responsible for textbook development and teacher’s training, Rajya Shiksha Kendra, Bhopal was conducted during 26 – 30 May, 2014 at NID, Ahmedabad. Two days off Campus Design Awareness Development Programme “Understanding Design Language” f o r B u s i n e s s D e ve l o p m e n t / Marketing team members of Kohler India Corporation Pvt. Ltd., Gurgaon was conducted during 19th to 20th September, 2014 at Gurgaon. Total 30 officials attended off campus programme.

MSME – Design Clinic Scheme The DC MSME has appointed NID as the Single Coordinating body/Nodal Agency for implementation of the Design Clinic Scheme developed by us for increasing the manufacturing competitiveness of micro, small and medium enterprises across the country. The Scheme envisaging a total budget outlay of Rs.73.00 crores (Government of India’s component of Rs.49.5 crores with 5% design fees for NID)

Attached & Subordinate Offices

was soft launched in Feb. 10 by the DC MSME. Since inception, NID has set up zonewise regional Centres at Delhi, Ahmedabad, Bengaluru, and Kolkata and and Extension Centre for North-East at Guwahati. We have across the country successfully conducted 347 Design Awareness Seminars and 53 are being scheduled. The target of 200 Design Clinic Workshops have been have been fully achieved. 443 design project proposals have been registered with the Scheme by a varied group of MSMEs and Professional Designers, out of which 236 have been approved so far. 76 projects have been successfully completed and 160 are at various stages of completion. Young designers undergoing their final year of studies in design and allied Institutions across the country have continued to take the programme seriously and 92 student projects have been approved so far for finding design solutions for MSMEs in their region. 75 Student projects have come up with interesting design solutions. Outcome of successful design solutions have been highlighted in booklet forms for both professional designers and student designers design intervention specific to micro, small and medium enterprises. One of the beneficiaries of the professional design projects of the Scheme has won CII Design Excellence Award in the categories of MSMEs in the recently held felicitations. There has been increasing enthusiasm nationally from the MSMEs, Design Community and Design Institutions with 868 professional designers, 386 design

profession firms, 54 design education Institutions, 1688 MSME units, 260 MSME Associations and 24 Government Organizations registering with the same showing their interest in implementation of the Scheme. We have conducted 29 orientation programmes and 15 more are planned for stake holders in different States across the country. Beneficiaries of the Design Clinic Scheme are also being encouraged to enroll for India Design Mark by the India Design Council. Many MSMEs have come forward for this initiative which will help them to participate in Good Design Mark Awards of Japan. Research NID undertakes research, mostly applied, in all areas of design, which have a direct bearing on all sectors of the economy. Over the last decade, NID has established Design Research Chairs, in collaboration with industry partners as well as from its own corpus, in several areas such as furniture, colour universal design, stainless steel, design education, textile and apparel design technology and transliteration Some of the Major On-going Research Projects are as under: 

NID-Indian Railways Design Centre A committee consisting of executive directors of various departments from the Railway Board, Ministry of Railways visited NID on April 3 & 4, 2014 for better appreciation of NID’s potential utilization of the proposed Railway Design Centre at NID.

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Innovation Centre for Natural Fiber (ICNF) NID has set up an Innovation Centre for Natural Fiber at the PG Campus, Gandhinagar with a focus on improvement in natural fibers processing techniques, capacity building in natural fibers development, and utilization through innovation in design, engineering, and technology. The centre has prioritized some natural fibers of national importance such as banana, b a m b o o , c o i r, a n d h e m p fo r exploration. In this pursuit, it is networking with institutions within India and abroad, to appropriate and create sustainable designs applications using these fibers as a primary material. A national workshop was held at the PG Campus, Gandhinagar from July 22–23, 2014.



Some of the Ongoing Faculty-led Design Projects: 

Design Education in Schools through Toys and Games



A research proposal on “Suburban Screen: Memories of Movie-going in Bandra and Belghoria in the 1970s”



Reviving the Magic of Lost Juvenile I l l u s t ra t e d B o o k s f o r I n d i a n Subcontinent.

Some of the Other Research Projects: 

India Digital Heritage (Hampi)



The project aims at exploring methods to represent heritage in new ways. The outcome of the project will help various stakeholders such as Karnataka Tourism and people of the region to showcase Hampi, its art, architecture, and social life in a more immersive manner.



Creating Digital-Learning Environment for Design in India (eKalpa)



The project is an initiative of the M i n i s t r y o f H u m a n Re s o u rc e Development (MHRD) and seeks to promote involvement of information and communication technologies (ICT) to enhance quality and reach of design education in India.

Living Blue: Design Anthropology and the Designer's role in the shifting meanings of Indigo in India and China NID and Swinburne University have signed a MoU, under the aegis of which, a workshop was held focusing on natural dyeing practices of India, especially on the Indigo dyeing traditions of Gujarat and Andhra Pradesh. This workshop focused to gain the anthropological understanding of the meanings of Indigo, by way of engaging with crafts persons and the material exploring

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traditions with the contemporary minds that appreciate the traditional values. The workshop was conducted from June 30–July 11, 2014

Attached & Subordinate Offices



NID has established a Nokia Research Lab at NID Bengaluru.



KVIC-NID Design Innovation Centre



An MoU has been signed between National Institute of Design and Khadi & Village Industries Commission for setting up a 'KVICNID Design Innovation Centre' at NID.

MOUs with Other Institutions/ Organisations. NID has also signed collaborative agreements with over 60 premier design institutes across the world allowing students and faculty for increased international exposure. NID, only design institute from India, was also included in 2014 in the list of Top 30 design colleges of the world published by Ranker, a crowd sourced rankings website operating from USA.



‘Herman Miller Design Greats’ – Furniture exhibition at NID giving insight into Design at Herman Miller and some of its most iconic products on 27th June 2014.



On 22nd July 2014, Ms. Zohra Chatterji, IAS, Secretary, Ministry of Textiles, Govt. of India visited NID.



Ms. Fredrika Ornbrant, Consul General of Sweden, Mr. Gaurav Kirti, Business Unit Manager (India) Services Industry, Business Sweden, Embassy of Sweden and Ms. Mitalee Karmarkar, Manager-PR, Media & Cultural Affairs, Consulate General of Sweden visited NID on 5th August 2014.



On 07th August 2014 Dr. Pramod Agrawal, Chair-Functional Smart Materials, Knowledge Centre Design & Technology, Saxion University of Applied Sciences, Netherland visited NID.



Exhibition ‘The eye of the father and the son - Photography of Hugo and Diego Cifuentes' opened at NID on 25th September 2014. . The exhibition was opened by Shri Pradyumna Vyas, Director, NID; H.E. Mentor Villagómez, Ambassador of Ecuador and Mr. Patricio Garcés, Deputy Head of Mission, Embassy of Ecuador.



Dr. Mirjana Lozanovska, Associate Head of School International, School

Significant Events 



Prof. Dr. Dr. h.c. Jürgen Lehmann, President, Hof University of Applied Sciences, Germany and Ms. Susanne Krause, Director, International Office from University of Applied Sciences, Hof, Germany visited NID on 08th April 2014. Mr. Jeremy Hocking, Vice President – Asia Pacific, Herman Miller and Mr. Kartik Shethia, Sales Director, SAARC Region & SBG, Greater China, Herman Miller visited NID on 27th June 2014.

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of Architecture & Built Environment, Deakin University, Australia and Prof. Anthony Mills, Head of School, School of Architecture and Built Environment, Deakin University, Australia visited NID on 7th October 2014. 

Mr. Gilles Roduit, Minister & Deputy Head of Mission, Embassy of Switzerland visited NID on 3rd November 2014.



On 11th November 2014, ‘Nocturnal by Vargas Brothers' - Exhibition of Photographs by Carlos Vargas Zaconet and Miguel Vargas Zaconet has opened at NID. The exhibition organised by the Embassy of Peru in India was opened by H.E. Javier Paulinich, Ambassador of Peru to India.



H.E. Tomasz Lukaszuk, Ambassador of Poland to India and Mrs. Maria Lukaszuk, Counsellor, Head of Economic Section, Embassy of Poland visited NID on13th February 2014.



On 17th November 2014, Dr. Bhim Singh, Hon'ble Minister Industries, Govt. of Bihar visited NID.



‘International Bamboo Workshop’ – display of the products developed by the students and faculty of HTW, Germany along with NID students on 5th December 2014.



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35th Convocation Day of NID was held on 9th December 2014. Shri Shekhar Gupta, Renowned Journalist

& Padma Bhushan Awardee was invited as Chief Guest. 

On 26th December 2014, Shri Raju Parmar, Hon’ble Member, National Commission for Scheduled Castes, Govt. of India, New Delhi visited NID.

National Productivity Council The National Productivity Council (NPC) was established in 1958 as an autonomous body under the Societies Registration Act, by Govt of India. It has a tripartite character, wherein Government, Industry and Labour are equally represented. The Council is headed by the Union Minister of State (Ind.Charge) of Commerce and Industry as its President and the Governing Body is headed by Secretary, Department of Industrial Policy and Promotion as its Chairman. The main objectives of the Council are to increase awareness of productivity and demonstration of the concepts and techniques of Productivity in all sectors of the economy. The Corporate Office of NPC is located at New Delhi. NPC also has a countrywide reach with 12 Regional Professional Management Groups (RPMGs), located at important State capitals/industrial centres and one training institute called Dr. Ambedkar Institute of Productivity (AIP) at Chennai. NPC undertakes management and technological consultancy, training and information services in various productivity subjects for the benefit of its clients. The specialized productivity functions dealt by

Attached & Subordinate Offices

NPC are Process Management, Environment Management, Information Technology and Knowledge Management, Energy Management, Human resource management, Agribusiness, etc. NPC also networks with over 24 Local Productivity Councils (LPCs) situated in the country to spread the message of productivity and dissemination at grassroots level. NPC is the implementation agency for programmes/ activities relating to India of the Tokyo based Asian Productivity Organization – an intergovernmental body for promotion of productivity in the Asia-Pacific region of which the Government of India is a founder member.



NPC has been empanelled as a Project Management Agency for Leather Development programme of DIPP.



Evaluation Study of the “Plan Scheme on Creation of Infrastructure for Management of Hazardous Substances” has been carried out for Ministry of Environment & Forests, Govt. of India.



Wa re h o u s e D eve l o p m e n t & Regulatory Authority (WDRA) has accredited NPC to inspect and issue accreditation certificates to eligible warehouses including cold storage units.



NPC provided partner institute services for publication of World Competitiveness Year book 2014 by International Institute for Management Development, Switzerland.



Projects on “Recruitment Assistance’ are being implemented for Bureau of Indian Standards, BSES Ltd, MP Power Transmission Corpn and Uttarakhand Jal Vidyut Nigam Limited.



Energy Audit studies are under progress at FACT, Travancore, ARS Steels Chennai and Heavy Vehicles Factory, Chennai, NTPC Sipat and Meghalya Cements & NSPCL Bhilai & JSPL Angul. Safety Audit studies are in progress at NTPC Farakka and BPSCL Bokaro

NPC’S Activities : Highlights Consultancy Projects The details of some illustrative consultancy projects carried out by NPC during the year are given below : •

NPC is implementing the Lean Manufacturing Competitiveness programme of Ministry of MSME and so far 115 Awareness programmes have been conducted and 42 SPVs have been formed.



Study on Restructuring the Delhi Development Authority (DDA) has been completed. The study has identified the new strategies and directions towards repositioning of DDA in the changed context. M/S Deloite has also been associated in conducting the study.

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ISO 9001:2008 implementation studies are being carried out in departments of West Bengal state Govt. and Planning Coordination Dept of Govt of Orissa, ICAR Hyderabad, RTPS Karnataka, L&D Dept Oil India Limited, Pollution Control Board Assam, Mahatma Gandhi State Institute of Public Administration, Chandigarh, etc. The study on Evaluation and Impact Study of Central Sector Scheme Diary Entrepreneurship Development Scheme (DEDS) is being carried out for Ministry of Agriculture, GOI (Dept. of Animal Husbandry, Dairying & Fisheries) Study on Monitoring and Evaluation of Crop Diversification Programme (CDP) in Original Green Revolution States has been entrusted by Ministry of Agriculture, GOI (Dept . of Agriculture & Co-operation) and the study is in progress. NPC has initiated providing assistance at Sanand bottling facility of Indian Oil Corporation for implementing 5 ‘S’. This bottling unit would become model unit and the implementation would be replicated in all other bottling facilities in the state of Gujarat.

Seminars and Programmes NPC has organized a number of seminars and programmes on various facets of

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productivity during the year. A few illustrative examples are given below : •

NPC in association with Gujarat Chamber of Commerce & Industry, and MSME- Development Institute, Ahmedabad, organised the event “MSME Growth Engine”, to discuss productivity issues of SMEs including Lean Manufacturing.



A workshop was organized at AIP in association with American Chamber of Commerce and Deloite for provision of internship training to engineering students from various colleges under the CSR schemes.



The National Seminar on “An Integrated Approach for Enhancing the Productivity of Rice Milling Industries” was organized at New Delhi in June, 2014



National Seminar on “Productivity Issues in Pulses- Future Needs & Challenges” was organized in September, 2014 at New Delhi



National Seminar on “Augmenting Processing & Shelf-life of Perishable Food Products” was organized in September 2014 at New Delhi.



National Seminar on “Investing in Food and Nutrition Security for Human and Economic Development” was organized in October 2014, at NASE Complex, Pusa, New Delhi.

Attached & Subordinate Offices





National Certification Examination for Energy Auditors & Energy Managers on behalf of Bureau of Energy Efficiency was conducted in August 2014. Around 6500 candidates appeared in these examinations. International Conference on IndoJapanese Information Exchange on Health Care, organized on 31st October 2014 as knowledge partner at New Delhi.



NPC carried out a study for Impact Evaluation Study of the Schemes of National Trust Evaluation of National Trust under the Ministry of Social Justice and Empowerment, Govt. of India.



NPC has been entrusted with the study on Evaluation of the Planned Schemes of the Central Silk Board, Bangalore, which is under progress.



Study on Modernisation of Pt. Deendayal Upadhyay Institute for the Physically Handicapped, New Delhi was carried out by NPC and the report submitted for consideration of the Technical Committee constituted by the Government.



All India Boiler Workshops are being conducted in 13 locations in the country towards improvement in Operation & Maintenance of Boilers, Safety and Energy Efficiency on behalf of DIPP.



Self Run Programmes on various topics of HR, IT, Process Management, Energy management and Technology Management are being conducted at different locations of the country.

Projects carried out / proposed in association with Asian Productivity Organisation (APO) •

NPC organized two multi-country projects in the area of energy efficiency and cold Chain systems for 10 days and 5 days duration respectively. An e-learning course has also been organized in the area of Risk Management for 4 days duration. NPC Video Conferencing facilities have been extensively used for the eLearning Course.



NPC has been able to procure services of two APO experts for 4 days duration each in the area of energy management and Lean, Clean & Green Dairy Enterprises. Besides, 2 APO experts were deputed to Women Entrepreneurship and Business Incubation Centre, Kerala on their request to conduct Conference to promote Women Entrepreneurship and Business Incubation centers for the Socio-Economic Development of the Society in the state. APO elearning Course on “Risk Management of Food Borne Pathogens” was conducted during 19-22 May, 2014 at New Delhi.

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APO e-learning Course on “Production and Certification of Organic Food for Greater Market Access” was organised from 1-4 September 2014 at New Delhi.



A Multi-country project organized during 13-17 October 2014 on Performance Management and Measurement of Productivity in Public Sector and Service Sector Organizations at New Delhi.



NPC organised a Workshop on Productivity Measurement and Management for Banking Sector from 24-28 November 2014. This project is fully funded by Asian Productivity Organisation, Tokyo, Japan.

Plan Projects

iv.

Upgradation of Ambedkar Institute of Productivity (AIP), Chennai into Centre of Excellence.

v.

Adoption of Energy Efficiency and Green Initiatives at NPC, HQ.

i.

Under the plan scheme “Productivity Measurement & Development of Productivity Norms for Agro Based Industries”, two reports on Dal milling and Flour Milling sectors have been completed and detailed study on three other sectors are in progress and would be completed by February, 2015. In addition, three seminars on Rice Milling, Flour Milling and Dairy processing industries have been conducted and special issue of Productivity News on the topic has been brought out.

ii.

For the Plan Scheme on “Preparation of Good Practices Manuals for Green House Gas Emissions Reduction”, questionnaires have been developed for iron and steel sectors for survey. Discussion panel is being constituted for the Thermal Power Stations.

iii.

Under the plan scheme “Adoption of E n e r g y E f f i c i e n c y a n d G re e n Initiatives”, NPC will be installing “Roof-top solar PV power plant” of 30 KW capacity. A dry type transformer has also been installed outside the building as per safety standards. The lighting within the building will be replaced with LED fixtures.

iv.

Under the plan scheme, “Productivity

NPC is implementing the following 12th Five Year Plan Schemes. i.

P ro d u c t iv i t y M e a s u re m e n t & Development of Productivity Norms for Agro Based Industries.

ii.

Preparation of Good Practices Manuals for Green House Gas Emissions Reduction in 5 Energy Intensive Industry Sectors (cement; pulp and paper; iron and steel; chemicals and thermal power stations).

iii.

Productivity Promotion with Special Focus on Innovation and Dissemination for Multiplier Effect.

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Attached & Subordinate Offices

Promotion with Special Focus on Innovation and Dissemination for Multiplier Effect”, the publication on “Productivity News” has been revamped in quality and contents and being brought out as a monthly publication. 3 such issues and one supplementary issue have been brought out in the first quarter of the current year. Productivity and Innovation Awards will also be implemented during the year under the plan scheme. v.

Under the plan scheme, “Upgradation of Ambedkar Institute of Productivity (AIP), Chennai into Centre of Excellence”, the infrastructure at AIP C h e n n a i i s b e i n g re n ova t e d . Preparatory activities for designing new long term/ short term courses are also being carried out.

New Initiatives by NPC •

NPC website has been revamped for a newer look with updated contents.



Biometric attendance system has been introduced to ensure punctuality.



Modernisation of the NPC library through computerization and digitization of records has been done to make better utilization of the knowledge database in the organization. The software ‘eGranthalaya’ has been installed and digitization of data of 12000 books

has been completed. Quality Council of India The Quality Council of India (QCI) has been set up as a non-profit autonomous society registered under Societies Registration Act XXI of 1860 to establish an accreditation structure in the country and to spread quality movement in India by undertaking a National Quality Campaign. A.

Mission Statement:

The Mission of QCI is to lead nationwide quality movement in India by involving all stakeholders for emphasis on adherence to quality standards in all spheres of activities primarily for promoting and protecting interests of the nation and its citizens. B.

Main Objectives:

To achieve the Mission of QCI by playing a pivotal role in propagating, adoption and adherence to quality standards in all important spheres of activities including education, healthcare, environment protection, governance, social sectors, infrastructure sector and such other areas of organized activities that have significant bearing in improving the quality of life and well being of the citizens of India and without restricting its generality shall inter-alia include: (a)

To lead nationwide quality movement in the country through National Quality Campaign aimed at creating awareness amongst citizens, empowering them to demand quality

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in all spheres of activities, and promoting and protecting their well being by encouraging manufacturers and suppliers of goods and service providers for adoption of and adherence to quality standards and tools. (b)

To develop apropos capacities at the level of Governments, Institutions and enterprises for implementing & institutionalizing continuous quality improvement.

(c)

To develop, establish & operate National Accreditation programmes in accordance with the relevant international standards & guides for the conformity assessment bodies certifying products, personnel, management systems, carrying out inspection and for the laboratories undertaking testing & calibration and such other areas of organized activities that have significant bearing in improving the quality of life and well being of the citizens of India.

(d)

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To develop, establish and operate National Accreditation Programmes for various service sectors such as education, healthcare, environment protection, governance, social sectors, infrastructure sector, vocational training etc., to site a few, as may be required, based on national/international standards and guidelines and where such

standards are not available, to develop accreditation standards to support accreditation programs. (e)

To build capacities in the areas of regulation, conformity assessment and accreditation to overcome TBT/SPS constraints.

(f)

To encourage development & application of third party assessment model for use in government, regulators, organizations and society.

(g)

To promote quality competitiveness of India’s enterprises especially MSMEs through adoption of and adherence to quality management standards and quality tools.

(h)

Promoting the establishment of quality improvement and benchmar king centre, as a repository of best international / national practices and their dissemination among the industry in all the sectors.

(i)

To encourage industrial / applied research and development in the field of quality and dissemination of its result in relevant publication including and trade journals;

(j)

To build capacities including development of appropriate quality accreditation mechanism for other emerging areas that have significant bearing in improving the quality of life and well being of the citizens of India such as food sector, oil & gas, forestry, agriculture /animal husbandry,

Attached & Subordinate Offices

warehouse, pharmacy etc. or as the need may arise from time to time. (k)

(k)

To facilitate effective functioning of a National Information & Enquiry Services on standards & quality including an appeal mechanism to deal with unresolved complaints. To develop and operate an appeal mechanism to deal with unresolved complaints;

Structure of QCI The society is governed by a Council comprising of 38 members, and has an equal representation of Government, Industry and other stakeholders. The Council is the apex level body responsible for formulating the strategy, general policy, constitution and monitoring of various components of QCI including the accreditation boards with objective to ensure transparent and credible accreditation system. The Council through a Governing Body monitors the progress of activities and appeal mechanisms set by the respective boards QCI functions through the executive bodies (boards/committees) that implement the strategy, policy and operational guidance set by the Quality Council of India with a view to achieve international acceptance and recognition of various components including the accreditation systems. Each Board has a Chairman nominated by the Chairman, QCI and comprises of

representatives volunteer group of stakeholders who guide and monitor the activities and progress of the respective Boards The National Accreditation Board for Certification Bodies (NABCB) The National Accreditation Board for Certification Bodies (NABCB) provides accreditation to Certification Bodies for Quality Management Systems (QMS;ISO 9001), Environmental Management Systems (EMS;ISO 14001), Occupational Health & Safety Management Systems (OHSAS 18001), Food Safety Management Systems (FSMS;ISO 22000), Information Security Management Systems (ISMS;ISO 27001), Energy Management Systems (EnMS;ISO 50001), and Medical Devices QMS (ISO 13485); Product Certification Bodies (ISO 17065) and Inspection Bodies (ISO 17020). The accreditation programmes provided by NABCB are in accordance with the internationally accepted standard, ISO 17011, as well as the requirements of the international bodies such as the International Accreditation Forum (IAF), and the International Laboratory Accreditation Cooperation (ILAC), and regional bodies like Pacific Accreditation Cooperation (PAC) and Asia Pacific Laboratory Accreditation Cooperation (APLAC), of which NABCB is a member. Accreditation bodies from almost all economies of the world are members of these international organizations who maintain an international framework of

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Multilateral Recognition Arrangements (MLA)/Mutual Recognition Arrangements (MRA) which ensure acceptance of each other’s accreditations as being equivalent worldwide on successful peer evaluation of the accreditation programmes. This facilitates the overall objective “Tested, Certified or Inspected Once is Accepted Everywhere”. International Recognitions:- NABCB had already signed the PAC and IAF MLAs for Quality Management Systems in August 2002 and September 2002 respectively. Subsequently, NABCB had signed the PAC and IAF MLAs for Environment Management Systems in July 2007 and Oct 2007 respectively. NABCB signed the PAC MLA on 22 May 2013 and IAF MLA on 16 August 2013 for accreditation of Product Certification Bodies as per ISO Guide 65. NABCB signed the APLAC MRA on 11 Sept 2013 and ILAC MRA wef 16 Sept 2013 for Inspection Bodies’ accreditation programme. Consequent to signing the IAF MLA for Product Certification, NABCB also signed IAF-Global G.A.P. MoU on 22 Aug 2013 enabling recognition of NABCB and its accredited Certification Bodies under the Global G.A.P. system. NABCB is the 16th accreditation body worldwide to secure this recognition. It means that any farmer certified for Global G.A.P. in India by a Certification Body accredited by NABCB for Global G.A.P. scheme shall be acceptable under Global G.A.P. system worldwide. This is a direct benefit of NABCB’s accreditation

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right down to the level of farmer with lower costs of certification since accredited certificate would be available locally. Accreditation update:At the end of March 2014, NABCB had a total of 41 accreditations granted for QMS, 13 for EMS, 5 for OHSMS, 13 for FSMS, 3 for Product Certification, 18 for Inspection scheme and one each in EnMS and ISMS schemes. During the year, NABCB also granted accreditation to the Nepal Bureau of Standards & Metrology for QMS, this being the 2nd accreditation overseas following the B a n gla d e s h S t a n d a rd s a n d Te s t i n g Institution which was accredited in 2012. During the financial year 2013-14, NABCB launched the accreditation programmes for certification bodies for Energy Management Systems for certification as per the international standard ISO 50001. NABCB is also in the process of launching the schemes for Information Technology Service Management Systems as per ISO 20000-1, Greenhouse Gases (GHG) validation and verification bodies as per ISO 14065 and Personnel certification bodies as per ISO 17024. NABCB granted the first accreditation for Energy Management Systems (EnMS) certification as per ISO 50001 to Indian Register of Shipping (Operating through Indian Register of Quality Systems), Mumbai in December 2013 and the first accreditation for Information Security Management Systems (ISMS) certification as per ISO 27001 to TuV SUD South Asia Pvt. Ltd,

Attached & Subordinate Offices

Mumbai again in December 2013. I S O 9 0 0 1 i n G ove r n m e n t : - T h e Performance Management Division (PMD), Cabinet Secretariat, which has launched an initiative for implementation of ISO 9001 in Government has prescribed NABCB accreditation for ISO 9001 certification in government. PMD also issued an advisory to the Ministries to refrain from tendering for consultancy and certification together being conflict of interest on the advice of NABCB. Capacity Building in SAARC :- NABCB was assigned to conduct training on the new standard ISO/IEC 17065 for Product Certification Bodies for all SAARC member countries, which was sponsored by Physikalisch-Technische Bundesanstalt (PTB), Germany and was conducted in May 2013. NABCB has been assigned to be the knowledge partner for a series of trainings on food safety during the year 2014-15 for SAARC countries under the SAARC-PTB Cooperation. NABCB conducted a 3 day training programme on ISO 17065 for the National Accreditation Focal Point of Bhutan in June, 2013 under the MoU signed with it for capacity building. NABCB signed an MoU with the Nepal Bureau of Standards and Metrology for capacity building of their National Accreditation Focal Point (NAFP) on 22 Jan

2014 in Kathmandu in the presence of Mr. Krishna Gyawali, Secretary, Ministry of Industry, Government of Nepal. This follows a similar MoU signed with the Bhutan Standards Bureau in Sept, 2012. World Accreditation Day :- NABCB celebrated the “World Accreditation Day” on 09 June 2013 jointly with NABL, the theme for which was “Accreditation: Facilitating World Trade”. Dr. Thirumalachari Ramasami, Secretary, DST & Chairman- NABL, in his inaugural address, talked about the challenge of credibility of laboratory, certification and inspection services in India and how accreditation can be a tool to enhance credibility. He emphasised on strengthening the accreditation system for greater economic growth through greater international trade. The National Accreditation Board for Testing and Calibration Laboratories (NABL) NABL was earlier operating as part of Department of Science and Technology. Since 1998 this Board has been registered as an autonomous body under Department of Science & Technology. In time to come, it would be form a part of QCI as per the Cabinet decision of February 1996 in regard to establishment of QCI. NABL offers accreditation to the Testing, Calibration and Medical Laboratories in accordance with the corresponding international standards ISO/IEC 17025 and ISO 15189. The National Accreditation Board for

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ANNUAL REPORT 2014-15

Education and Training (NABET) National Accreditation Board for Education and Training is one of the constituent Board of Quality Council of India. The NABET mandate has been steadily increasing since past few years. Initiating from the accreditation of management systems trainings and auditor registrations, NABET has enlarged its scope in recent years. National Accreditation Board for Education and Training (NABET) is trying to match its progress with Slogan of QCI i.e. “Working for National Well Being”. With the growing needs of competent personnel and credible vocational training courses in various industry sectors, NABET has been rapidly expanding its scope of services to cater to the needs of the industry. NABET has established mechanisms for accreditation of vocational training providers, ITI and for skill assessment bodies. NABET is the first organization in the world to offer accreditation of consulting organizations in various conformity assessment areas, Hospital Accreditation etc. Environment Impact Assessment (EIA) Consultant accreditation scheme has been developed which has been adapted as minimum requirement for consultants preparing EIA Reports by Ministry of Environment and Forest. NABET has also launched accreditation program for Quality School Governance in the Country, with a view to provide framework for the effective management

202

and delivery of the holistic education program aimed at overall development of students. Recently Ministry of Labour and Employment have taken a decision to make NABET Accreditation mandatory for Industrial Training Institutes seeking NCVT affiliation. 3.6

Five distinct verticals in the following areas have been formulated to provide focused strategic direction to the activities of the Board. These relate to accreditation of:

a)

Management Systems

b)

Environment Impact Assessment

c)

Schools

d)

Skill Training

e)

Skill Certification

The National Board for Quality Promotion (NBQP) – The National Board for Quality Promotion continued to conduct several activities under National Quality Campaign in line with QCI’s mission of “Quality for National Well Being”. The highlights of the major events of the year are summarised below: Celebration of World Quality Day 2013 – November 15, 2013 World Quality Day was initiated in 1989 by the international quality organisations which include European Organisation for Quality (EOQ), American Society for Quality (ASQ) and Japan Union of Scientists and

Attached & Subordinate Offices

Engineers (JUSE). To make it more effective, the United Nations floated the idea of “World Quality Day” in the year 1990 with the objective of creating international awareness about quality. Every year it is celebrated on the 2nd Thursday of November. Quality Council of India celebrated World Quality Day for the first time by organizing a seminar on the theme “Quality – A Collaborative Effort” on November 15, 2013. Through this theme QCI wanted to discuss about what should be done to establish a strong quality improvement support structure through collaborative effort of all stakeholders to address the various quality challenges faced by the country. Mr. K.C. Mehra, Chairman, National Board for Quality Promotion inaugurated the seminar and during his opening remarks provided the background of the theme as well as the purpose of the seminar. Holding the 9th National Quality Conclave The 9th National Quality Conclave was held on April 15-16, 2014 at Hotel Le-Meridien, New Delhi. The theme of the Conclave was “Build and Sustain a Culture of Excellence through Collaborative Effort”. The Chairman, of NBQP, Mr. K.C. Mehra while welcoming the delegates, provided a background of the theme of the Conclave. The Chief Guest for the inaugural session of the Conclave was Dr. K. Kasturirangan, Member, Planning Commission and Guest of Honour was Mr.

Arun Maira, Member Planning Commission. The other keynote speakers were Mr. Amitabh Kant, Secretary, DIPP and Chairman, QCI and Mr. Analjit Singh, Chairman and Founder, Max India. All the speakers spoke of the necessity of collaborative efforts between various stakeholders if the country wants to significantly improve its quality achievement in various sectors like manufacturing, healthcare, education and public services. It is now acknowledged that collaboration is the new frontier of human creativity and goes beyond co-operation and co-ordination; collaboration is the foundation of sustained quality performance. The 8th cycle of the QCI – D.L. Shah Quality Award was completed during the year. The awards were to be given for various sector as mentioned below: •

Government



Public Sector



Manufacturing – Large



Manufacturing – SME



Hospitals – Large



Hospitals – Small



Drugs & Pharmaceuticals



IT



ITes/BPO



Financial



Education



Infrastructure

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Logistics (including Shipping)



NGO (including Social Sector)

The Award over the years in gaining popularity and for the 8th cycle a total of 130 projects was received. After a rigorous process of document assessment evaluation of project presentation, site verification, a total of 33 projects were given national and commendation awards. Quality Research Centre :- QCI had requested D.L. Shah Trust to help it set up a centre for quality research. Accordingly QCI had submitted a detailed proposal to D.L. Shah Trust. The Trust approved the proposal and Centre for Research in Quality was formally launched during the 8th National Quality Conclave. Centre is located in Apeejay School of Management, Dwarka, New Delhi. Some of the major activities of the Centre will be: a)

Promotion of Standards and Quality

b)

Conduct of quality related studies/survey in manufacturing and service sectors including education and health care, to understand the major problems and constraints of the organisations in maintaining quality and competitiveness.

c)

Undertaking research for development of a business model of Quality Management, which covers all business processes to improve their performance for achieving higher efficiency, with a view to enhancing the quality of products/

204

service and profitability of the organisation. d)

Research Centre will specially focus on SMEs and Service Organisations, particularly in the Social Sector, such as Education and Healthcare to ensure that these organisations provide good quality service at modest cost.

e)

Develop course curriculum to teach business model of quality management in technical and management institutes.

f)

Organising awareness seminars in industry clusters whereby case studies of benefits achieved by the companies would be shared.

ISO 9001 for government department Since the inclusion of “Implementation of ISO 9001” as the mandatory indicators in Results Framework Document (RFD), the 74 central government departments had initiated work on implementing the standard. While a few of the departments and responsibility centres had obtained the certification to ISO 9001, most of the other departments were having problems in implementing ISO 9001. Keeping in view of the problems, QCI was requested to conduct a survey by the Performance Management Division (PMD) of Cabinet Secretariat, Govt. of India, where by each of the 74 departments were visited to understand the nature of the problems faced. Based on the findings, it was felt that (a) there is a need for capacity building in the

Attached & Subordinate Offices

government sector regarding ISO 9001 and (b) there are departments which need technical hand holding support for implementing ISO 9001, especially those that are yet to initiate the process. Quality Council of India, was requested to prepare a proposal covering the above two findings. While a proposal is being drawn up, QCI is providing technical monitoring services to the following departments that have requested for the services.

14.

National Rural Roads Development Agency - Ministry of Rural Development

15.

Ministry Of Road Transport & Highways

16.

Animal Quarantine & Certification Services - Ministry Of Agriculture, Dept of Animal Husbandry

17.

Ministry of Statistics and Programme Implementation

18.

Ministry Of DONER

19.

Department of Posts

20.

Ministry of Drinking Water & Sanitation

21.

M i n i s t r y o f Wo m e n & C h i l d Development

1.

M i n i s t r y o f Fo o d P ro c e s s i n g Industries

2.

Ministry of Housing & Urban Poverty Alleviation

3.

Department of Personal & Training

4.

Ministry of Water Resources

5.

Ministry of Petroleum & Natural Gas

22.

Ministry of Environment & Forests

6.

Ministry of Heavy Industries and Public Enterprises

23.

National Anti Doping Agencies Department of Sports

7.

Performance Management Division

24.

8.

Ministry of Human Resource Development (Dept Of Higher Education)- PN II Section

Central Institute for Research on Cotton Technology (Indian Council of Agricultural Research) Mumbai

25.

Department of Commerce, Ministry of Commerce & Industries

Department of Justice, Ministry of Law & Justice

26.

Ministry of Defence - Department of Defence Production

27.

N a t i o n a l C o u n c i l fo r Te a c h e r Education

28.

Ministry of Micro, Small and Medium Enterprises

9. 10.

Ministry Of Panchayati Raj

11.

Central Adoption Resource Authority

12.

Ministry of Shipping

13.

Ministry of Power

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ANNUAL REPORT 2014-15

ISO 9001 Certification of Sakala Mission of Govt. of Karnataka :- Sakala is a citizen centric initiative of Govt. of Karnataka which assures timely delivery of government services. In all, Sakala offers 467 services under various departments which are sought after by the citizens. The mission had been constituted to assist Dept. of Administrative Reforms, Government of Karnataka in the implementation of Karnataka Guarantee Services Act, 2001. The Sakala Mission requested QCI to help it implement ISO 9001 so that it can set an example for other departments to implement the standard. The QCI provided

all the necessary assistance helping the Mission to get ISO 9001 certification within a very tight time schedule. The efforts of QCI have been appreciated by the Principal Secretary, Department of Administrative Reform, Government Karnataka. Publication of QCI magazine “Quality India” :- Quality India is the official magazine of the QCI. For some internal reasons, QCI had stopped the publication. There were several requests for the continuation of the print version of the Quality India magazine. The publication has been revived and now it will be published every quarter.

Status of accreditation

S. No.

Name of Programme

Total Applicants Under Process

Accredited

1.

Hospitals

842

217

2.

SHCO

253

31

3.

PHC/CHC

18/12

4/1

4.

Medical Imaging Centre (MIS)

59

11

5.

Blood Bank

75

60

6.

Dental

38

4

7.

Allopathic Clinics

17

9

8.

Ayush Hospitals

24

10

9.

Wellness Centres

17

6

ECHS Empanelment :- Ex Servicemen Contributory Scheme of Ministry of Defense (ECHS) has signed a MoU with NABH on 05th August, 2011 at New Delhi for NABH to

206

evaluate Private General Hospitals, Dental hospitals, Eye hospitals and diagnostic centres on behalf of ECHS and recommend/ not recommend them for ECHS

Attached & Subordinate Offices

empanelment. This agreement also notified that NABH Accredited hospitals will receive deemed empanelment under ECHS. Assessors Conclave :- 4th Conclave of NABH Assessors (Principal Assessors) HCO held at Radison Blue Dwarka, New Delhi on 26th & 27th April 2014 to review the progress of programs and to take feedback from stakeholders. Conclave was well attended. More than hundred Principal Assessors participated in the event. Assisting Ministries/ Regulators/ Government agencies Assisting NGCMA in Operationalisation of GLP: National Good Laboratory Practices Compliance Monitoring Authority (NGCMA) entered into a MoU with the Quality Council of India on 31 Dec. 2013 for the effective implementation of Good Laboratory Practices (GLP) certification programme. The NGCMA has been established by the Department of Science & Technology, Government of India to fulfil India’s obligations in this field. The Schemes, which shall continue to be owned by NGCMA, shall utilise the resources available with QCI for implementation of GLP the certification programme. Quality initiative in the Solar Energy sector: QCI had been assigned a project by the Ministry of New and Renewable Energy (MNRE) for developing criteria and certification systems in the solar energy sector to support the Jawahar Lal Nehru National Solar Mission. During the year,

standards for All Glass Evacuated Solar Collector Tubes, Storage Water Tank for All Glass Evacuated Tubes Solar Collector and All Glass Evacuated Tubes Solar Water Heating System were developed which were finalized by the Technical Committee constituted by MNRE. These are to be the basis of development of a national certification scheme covering the process and required infrastructure as the next steps. National Manufacturing Competitiveness Council (NMCC) The National Manufacturing Competitiveness Council (NMCC) is an autonomous apex body to provide inputs for policy making as well as to suggest measures for enhancing the Competitiveness of Indian Manufacturing Sector. The council is an interface among Industry, Government and Academia. The endeavours of NMCC have been focused both on the short-term objective of arresting and reversing the downturn in manufacturing as well as the medium-term objective of India getting well on the way towards achieving the sustained 12-14 per cent growth in manufacturing and creation of 100 million jobs in line with the objectives of National Manufacturing Policy. 2.

Highlights of Major Activities/ Policy Initiatives/ Measures Suggested/ Achieve-ments during 2014 (up to December 2014):

2.1 Regional Transport Civilian Aircraft Manufacturing: The last meeting of the High Level Committee on Manufacturing

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ANNUAL REPORT 2014-15

(HLCM) in July 2013 had endorsed the idea of development of civilian aircrafts, of a 70100 seater range as a publically funded national project through a dedicated SPV to be promoted by HAL and NAL. Given that the Indian market for civilian aircraft is becoming one of the largest in the world, this initiative is overdue. Being the convenor member of HLCM, NMCC was asked to steer the preparatory work. A number of stakeholders’ consultations were held to discuss the possible structures/models for the development of such aircrafts. Works relating to formation of SPV, RFP, and seeking investment approval from the Government were at various stages of progress. In this connection, NMCC had inter alia suggested as follows: •



208

A change in the Allocation of Business Rules and delete the entry ‘4’ of Ministry of Civil Aviation “production of aircraft and aircraft components for civil use” and insert “Production of Civil Aircraft” in entry ‘12’ of the Department of Defence Production, so as to better utilise the existing capacities of HAL and DRDO. The SPV would need to be given special empowerment. Choosing partners, as well as personnel, where necessary, on a search basis and on negotiated rates would be essential for such a high technology and high risk initiative. Entering into long term commercial arrangements including

negotiated pricing for commercial production would also be a necessary pre-requisite. This is normal with all global OEMS. •

A major effort would be needed in parallel, to create testing and c e r t i f i c a t i o n c a p a c i t y fo r t h e programme so that internationally acceptable certification for the aircraft is available after successful development and at the time of commercial production.



An initial market strategy of leasing for the domestic market combined with efficient after sales service including MRO, would help in giving confidence to the user airlines about the competitiveness of the aircraft. This would be necessary for achieving commercial success for the product in the market.



The development programme could be funded through an interest free loan. At the time of commercial production a view can be taken on the extent to which this can be converted into equity and interest bearing debt so as to ensure commercial viability of the manufacturing phase.

2.2 Vision 2024-25 for Textile Sector: A committee under the Chairmanship of the Member Secretary, NMCC was set up by the Ministry of Textile, Government of India to formulate a Textile Policy. After having wide stakeholders’ consultations, the “Vision 2024-25, Strategy and Action Plan for the

Attached & Subordinate Offices

Textile Sector” was submitted to the Textile Ministry.

key measures has been suggested by NMCC:

2.3



A new policy orientation to liberally allocate captive iron ore mines to steel plants. The country’s abundant iron ore reserves should be used to give a cost advantage for steel making within the country.



Develop green field sites for new steel plants through location specific SPVs in partnership with the State Government. The SPV should assemble land, tie-up water and iron ore, obtain initial environment and forest clearances and prepare the logistics plan of road and rail connectivity to the proposed steel plant. The SPV could then be offered for takeover in a transparent manner to potential investors who would then set up the steel plant.



Put in place a mechanism for the development of the requisite road and rail connectivity for these new green field sites. Long term i.e. 25-30 years, fixed interest rate debt for this purpose could make the investment in road and rail connectivity viable on the basis of user charges for the traffic volumes generated by the steel plants itself. With some Government support, consortia of lenders could be put together for this purpose and if this does not appear feasible, then setting up of a dedicated fund could also be considered.

Solar Manufacturing:

To promote domestic manufacturing of solar equipments in line with the overall objectives of National Solar Mission, the NMCC has inter-alia suggested the following to the Government: •

Imposition of duties on import of solar equipments as recommended by the Ministry of Commerce.



Reengineering of the Solar Mission for use of solar power with subsidies by Government agencies to successfully meet the objections raised by other countries, if required.



Indication of road map for domestic sourcing of full value chain by 2017. This would attract investments in full value chain with plants having the required economies of scale. Bids for supply in 2017 could even be invited with enough lead time for submission of bids.



Advise the State Governments to adopt the same approach as some State level programmes are as large as National programmes.

2.4

Steel Sector –

To give a greater momentum to the steel industry for the achievement of the ambitious goal of steel production crossing 300 Million Tons per annum around the middle of the next decade, following

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ANNUAL REPORT 2014-15



Handholding and facilitation for Brownfield expansion of existing steel plants. In the short run, capacity augmentation would take place primarily through this route.

2.5 Monitoring Capital Expenditure (CAPEX) of 23 major CPSUs: At the behest of the PMO, the NMCC has been reviewing the Capital Expenditure of 23 select major CPSUs on a quarterly basis. During April, 2014 – September, 2014 of the Financial Year 2014-15, the achievement of target was 90.2 per cent of the targeted CAPEX, which was significant. As a result of monitoring exercise, following major issues/areas were suggested for follow-up: 2.5.1 National Investment Fund: The idea of creating a National Investment Fund by taking special dividend from the select CPSUs where CAPEX is moderate in comparison to their post-tax profits and growing reserves as suggested earlier by NMCC was pursued further. It is envisaged that the fund could, inter-alia, be used for a wide range of investments such as provision of equity for key infrastructure projects including PPP projects, contribution to the Trust Fund for the Delhi-Mumbai Industrial Corridor, strategic investments like FAB facilities and chip manufacturing, etc. It was inter-alia decided in a CAPEX review meeting taken by the Principal Secretary to the PM on 21.11.2014 that a Concept Note should be prepared by Department of Economic Affairs for floating a

210

professionally managed Sovereign Fund in the nature of Umbrella Investment Fund for investing in any investable projects including Infrastructure Projects and Smart Cities. 2.5.2 Issues in the Oil sector: •

As the problem of under-recoveries has been more or less resolved through deregulation of petrol and diesel prices, oil PSUs which are cash rich should immediately invest to bring Indian petrol and diesel to contemporary European standards. This would be good for environment in our cities and the health of the population.



A National Gas Grid covering all major cities over 1 million and all industrial clusters is a desirable and feasible goal. The process for approval and decision making for this needs to be streamlined. Investment in National Gas Grid needs creative risk mitigation mechanism to be put in place by the Government.

2.5.3 Issues for follow up in the Hydro sector: A quick review of Learnings of Project and Contract Management of Hydro Power Projects is needed to reduce the time and cost over runs of Central sector hydro projects. 2.6 Champions for Societal Manufacturing (CSM) Project: A Memorandum of Understanding (MoU) was signed with Japan International

Attached & Subordinate Offices

Cooperation Agency ( JICA) for the programme on Champions for Societal Manufacturing (CSM) Project for creating Visionary leaders for manufacturing so that break through management techniques may be applied for promoting the growth of Indian manufacturing sector.



Coal India Ltd. to commit full supply with imports augmenting domestic production.



Pooled pricing.



Target ordering of 20000 MW on domestic firms this financial year.

2.8.2 New Infrastructure Projects on Annuity:

In the Factsheet of India and Japan – Partners for common development regarding recent visit of Prime Minister of India to Japan from 30th August – 3rd September, 2014, it has inter-alia been indicated that both sides highly appreciated the achievements of CSM Project as a valuable Japanese contribution to the development of manufacturing sector in India. The Indian side welcomed Japan’s intention to launch a new sub-project named Village Buddha, which aims at leadership development for self-help groups in rural areas, taking into account the important role played by women in such groups.

-

Completion of Railway electrification: Phasing out of use of diesel by Railways for traction as with current and anticipated level of diesel prices, it makes commercial sense to switch over to electric traction with the aim for complete electrification at the earliest.

-

2.7 To ensure uninterrupted power supply to industrial clusters/industrial parks for boosting manufacturing, NMCC has suggested for a Partial Open Access and Differential Peak/Off-Peak Regime for consideration of the Government.

Completion of Railway Over Bridges (RoBs) and Railway Under Bridges (RuBs) which would lead to the overall economy by reducing the waiting time at Railway crossings and also result in saving of lives.

-

Affordable Housing for 10 lakh workers in industrial areas across the country.



Putting together consortium of banks to provide fixed interest rates long term debt of 20-30 years.



Government to accept contingent liability from interest rate fluctuations

2.8

For the revival of manufacturing NMCC has also suggested the following:



construction of New Expressways.

2.8.1 Start New Power Projects: •

Grant coal linkage on demand for all projects including captive power plants.

Bid out projects of around 4 lakh crore on annuity in the following areas:

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ANNUAL REPORT 2014-15

in cost of funds to consortium to long term financing immediately and not to wait for deepening of bond markets.



N o w, t h a t R a i l w a y s a r e n e w undertaking next phase of technological modernization, making it is essential that the modernization and procurement strategy should ensure that domestic manufacturing and value addition is intrinsic to the process. With art this as a central objective, India would become increasingly import dependant in new high technology areas as is the case now in the Telecom sector. The situation for urban metro projects is somewhat similar. There are multiplicity of technology streams and partners emerging from the bidding process for each metro project but hardly any significant domestic manufacturing. Therefore, the minimum which should be done in these projects is to insist upon high value addition in India as a necessary p re - c o n d i t i o n fo r t h e p ro j e c t implementation.



It needs to be borne in mind that there are considerable advantages in standardization and choosing only one technology stream as over the long run, cost of maintenance and spares would be much lower. True life cycle cost comes down with scale and standardization. This consideration would warrant long term relationship with one global technology partner from among leading global players having frontier technologies on the best possible terms rather than going

2.8.3 Adjustment of duties for domestic manufacturing: •

Remove inverted duty structure.



Deemed export benefits to Defence, IT & Electronics Hardware and Shipbuilding.



Deemed export benefits to items getting zero import duty under FTA.



For zero import duty items under FTA, supplies to DTA from SEZ to be considered as foreign exchange earnings under SEZ obligations.



Lowering import duty to zero on raw materials and primary inputs.



Maintenance of Competitive Exchange Rate by RBI for domestic value addition and manufacturing for domestic as well as export market.

2.9

Domestic Manufacturing in Railways:



So far the Railways have a credible tradition for having successfully ensured the creation of adequate domestic manufacturing capability for their needs and import content has been nominal. Past modernization undertaken in the pre-economic reform period had involved imports but these were undertaken with Transfer of Technology and phased Indigenization programme.

212

Attached & Subordinate Offices

in for project by project choice of suppliers and partners. In choosing the technology partner, sufficient weightage to the pace of indigenization and technology transfer may be given in addition to the price. Life cycle cost should, in any case, be lower with greater d o m e s t i c va l u e a d d i t i o n a n d progressive indigenization. 2.10 Domestic Manufacturing of Advanced Materials, Alloys and Composites: In the last meeting of HLCM in July, 2013, one of the subjects taken up for consideration was Advanced Materials, Alloys and Composites. It was agreed that NMCC would evolve an action plan in this regard in consultation with all stakeholders. The NMCC has since been having a series of stakeholder meetings. The key action points that emerged during the process are as follows: •

Undertaking bulk procurement of anticipated aggregated demand for a few years from a future date with the stipulation of domestic manufacturing.



Willingness to give price preference and to accept a higher price up to 15% for a few years for creating domestic supply and strategic autonomy in critical materials and alloy (A 15% price preference for domestic supplies in global tenders which were

mandatory in World Bank financed projects and was provided to promote domestic industrial development). 2.11 A Road map for replacing all the energy inefficient agricultural pump sets by efficient ones: On the basis of stakeholders consultations at NMCC, there was a consensus that the following needs to be pursued: •

The Ministry of MSME may cover all the pump manufacturing clusters under their National Manufacturing Competitiveness Programme (NMCP).



Access to existing know-how for making energy efficient pump may be freely provided and awareness created by the DC, MSME along with BEE.



As CSIR develops a more efficient pump and the prototype is tested and becomes successful in field trials, this technology may then be freely disseminated.



A special scheme of soft financing for existing manufacturers to upgrade their manufacturing facilities to be able to make energy efficient pumps may be drawn up in case there is a genuine need. DC, MSME and DG, BEE may have this exercise jointly completed. The Ministry of Power could then implement such a scheme through the Rural Electrification Corporation (REC).



The immediate need is to create a

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ANNUAL REPORT 2014-15

greater demand for energy efficient pumps giving the market signal to existing manufacturing to upgrade and modernize. EESL and BEE would try and work with a few progressive State Governments to try and take up a few pilot projects for free replacement by the State Discoms of energy inefficient pumps by efficient ones. The recent experience of EESL with LED lights had been very successful in using volumes to push prices down. •

214

The BEE should come out with a discussion paper on the subject proposing that from a prospective year, say 2017, the production of energy inefficient pumps would not be

permitted. •

The objective should be to replace all inefficient pumps by efficient ones by 2020.

2.12 Other Suggestions for higher growth, manufacturing and employment generation: •

Bring about structural adjustments in the economy with a significant shift from consumption to investment with a target investment rate of 40% in 2-3 years.



Outlays for manufacturing especially for Ministry of MSME and DIPP for industrial corridors do need to be raised substantially.

15

CHAPTER

Representation of Scheduled Castes/ Scheduled Tribes/OBCs/Ex-servicemen and Physically Disabled persons in Services

The Government’s efforts for safeguards of public employment for persons belonging to Scheduled Castes and Scheduled tribes are instrumental in ensuring inclusive growth of the Nation, free from discrimination and sufferings. In accordance with the policy of the Government of India, a SC/ST Cell has been created in the Department under a Liaison Officer of the rank of Deputy Secretary with the objective of ensuring proper implementation of the instructions issued from time to time relating to reservation for SCs/STs in Government service. The SC/ST Cell in the Department is responsible for monitoring the implementation of the instructions of the Government on the reservation of SC/ST in services in the Department as well as in various attached/subordinate offices, inspection of reservation rosters, ensuring submission of regular returns to the Department of Personnel & Training. Similarly, a nodal officer has been appointed in the rank of Deputy Secretary, for ensuring proper implementation of the instructions issued from time to time in respect of OBCs in government service. Periodic directions are also issued by the Department to all administrative sections as

well as the appointing authorities under its control to ensure proper implementation of the directives on reservation for members of the Scheduled Castes/ Scheduled Tribes/ OBCs/Ex-servicemen and Physically Disabled Persons. Re p re s e n t a t i o n o f Pe r s o n s w i t h Disabilities in Service Section 3 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act. 1995 stipulates that as a matter of policy, 3% reservation in the posts under the Government be provided fo r p e r s o n s w i t h d i s a b i l i t i e s . T h e Department of Industrial Policy & Promotion has been making efforts in the matter and the instructions issued by the Government of India from time to time are being implemented in the Department and circulated to all attached/subordinate offices and autonomous organizations under the Department, ensuring its compliance. The breakup of number of persons with Disabilities and ex-servicemen working in the Department of Industrial Policy & Promotion and its Attached/Subordinate offices and Autonomous Bodies is as follows:

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ANNUAL REPORT 2014-15

S.No.

Category of Post

Sanctioned Strength

No. of Physically Handicapped Persons

No. of ExServicemen

1.

A

1432

11

1

2.

B

1297

16

6

3.

C

1488

28

13

4.

C#

1001

14

4

# Erstwhile Group ‘D’

216

16

CHAPTER

Women Welfare Activities

The principle of gender equality is enshrined in the Indian Constitution in its Preamble, Fundamental Duties and Directive Principles. The Constitution not only grants equality to women, but also empowers the State to adopt measures of positive discrimination in favour of women. Within the framework of a democratic polity, our laws, developmental policies, plans and programmes have aimed at advancement of women in different spheres. In consonance with the guidelines proposed by the Hon’ble Supreme court in the case of Vishakha and others Vs. State of Rajasthan, the National Commission for Women drafted a code of conduct to be adopted by the Ministries/Departments. The Department has a Complaints Committee headed by a woman Director in accordance with the code of conduct wherein it was stipulated that the

Committee should be headed by a woman and not less than half of its members should be women. The constitution and objectives of the Complaints Committee have been intimated to all sections in this Department. All the attached/subordinate offices under the Department have also such committees for ensuring prompt action on any complaint of sexual harassment at work place. The Department follows all the guidelines of the Government in this matter and all possible efforts are being made to create healthy and congenial atmosphere so that women employees can perform duties with honour, dignity and without fear. The suggestions from women employees are invited from time to time for improvement in their working conditions.

217

17

CHAPTER

Implementation of Official Language Policy of the Union

Implementation of provisions of Central Official Language Policy Hindi in Devnagari script has been adopted as the Official Language of the country in the constitution of Republic of India and the Official Language Policy has been derived for progressive use of Hindi in official work and its propagation. Several steps were taken during the year 2014-15 in the Department of Industrial Policy and Promotion under M/o Commerce & Industry to ensure compliance to the Official Language Policy of the Government and implementation of provisions of Annual Programme prescribed by the Department of Official Language, Ministry of Home Affairs and compliance to other constitutional obligations. With a view to ensure maximum use of Hindi, rules/provisions of Official Language Act (O.L. Act), 1963 passed by the highest constitutional institution of the countryParliament of India, were fully implemented. All documents mentioned in the main section 3(3) of the Act such as general orders, rules, resolutions, licenses etc. including all papers to be submitted to the Parliament, were ensured to be issued mandatorily in bilingual form i.e., in Hindi

218

and English. As per mandate contained in Rule-5 of O.L Rules 1976, all letters received in Hindi, were replied in Hindi. In addition to compliance of provisions of O.L. Act and Rule-5 of O.L. Rules, 1976 enacted by the Parliament after adopting Hindi as official language by the Constituent Assembly after independence, letters to Offices/public sector undertakings/ institutions etc. of State Governments, Union Territories and Central Government located in region ‘A’, ‘B’ and ‘C’ as prescribed by Ministry of Home Affairs w.r.t. O.L. Policy, were issued in Hindi to the extent possible. Efforts were made to achieve the targets laid down in the Annual Programme prepared by M/o Home Affairs, Department of Official Language. With active cooperation of officers/employees, 76%, 71% and 67% (as on 31th December, 2014) of correspondence was done in Hindi with Region ‘A’, ‘B’ and ‘C’ respectively during the year. In this way, accelerated efforts to achieve targets fixed by M/o Home Affairs, were continued. Sincere efforts are being made to achieve further progress. With the aim of increasing use of Hindi in the office, many Sections of the Deptt. have been notified to do their entire official work in

Implementation of Official Language Policy of the Union

Hindi with reference to implementation of provisions of O.L Act. Doing maximum work in Hindi by these Sections, inspires others for the same. This has helped in increased commitment of all employees to contribute more effectively in the constitutional mandate regarding progressive use of Hindi. Monitoring of Implementation of Official Language Policy of the Government A Quarterly Report regarding status of implementation of Official Language Policy in the Department and Offices/Institutes under it, is sent to M/o Home Affairs online. This is reviewed regularly by the Official Language Wing of the Deptt. in context of relevant rules. In addition, position is also reviewed extensively in the quarterly meetings of Official Language Implementation Committee under the chairmanship of a Joint Secretary (Incharge, O.L.) and having officers of the level of Director/Dy. Secretary as members. Necessary instructions are issued to the officers concerned. During the period under review, Three meetings (as on 7.01.2015) of the Committee have been held. A high level Hindi Advisory Committee under the chairmanship of Minister for Commerce & Industry, monitors the position regarding use of Hindi in official work in the Ministry as well as offices under it. With the aim of increasing use of Hindi and for public’s convenience, Department’s Official Website has been made bilingual.

The information about working/ activities/achievements of the Department, is made available in both Hindi & English on the website. The officers responsible for official language work, inspect the Divisions of the Department, as well as its attached offices to have an on-the-spot assessment of implementation of O.L Policy of the Govt. During the year 2014-15, Fourteen Divisions of the Deptt. and Three offices under it, were inspected and inspection reports with shortcomings and suggestions were sent. Position is regularly reviewed. Training To facilitate maximum use of Hindi in official work, training in Hindi typing and stenography is given to the concerned employees from time to time. It is a continuous process which is carried out through Hindi Teaching Scheme of M/o Home Affairs. Workshops are organised from time to time to acquaint the officers/staff of the Deptt. with Official Language Policy of the Government, resolve their problems in working in Hindi and impart practical training in this regard. Experts are engaged for this purpose. During the year, Three workshops were arranged. In these workshops, the experts shared knowledge with the participants about O.L. Policy and imparted training about noting/drafting in Hindi. The participants also came to know

219

ANNUAL REPORT 2014-15

about the process of working in Hindi on computer enabled with Unicode software. In addition, a Departmental Glossary has also been prepared and made available to all the officers/employees. Mechanical Aids In compliance to the Official Language Policy of the Union, the computers working in the Deptt. , have been equipped with the facility of working in Hindi & English. These have been made more effective and accessible by providing encoding of ‘Unicode’ software. Incentive Schemes With a view to encourage officers /employees to do their maximum work in Hindi, some incentive schemes have been implemented. 1.

Central Government’s Annual Cash Prize Scheme for noting/drafting in Hindi. Under the scheme, First, Second & Third prizes of ` 2000, ` 1200 & `600 (Total 10 prizes) respectively are given for noting/drafting in Hindi. During the year under report, Ten officers/ employees were awarded prizes for excellent work under the scheme.

2. Half Yearly Cash Prize Scheme for sections/desks, doing their maximum official work in Hindi: W i t h t h e a i m o f e n c o u ra g i n g Sections/desks to do their maximum

220

official work in Hindi as a team and to develop a positive competition among them, a Half yearly Hindi Noting/ Drafting Cash Prizes Scheme has been continuing in the department. Under this scheme , Prizes of Rs. 7000, 6000 & 5000 are given as first, second & third prize respectively and Two consolation prizes of Rs.3000 each are given considering section as one unit. Five sections/desks were given prizes during the financial year for their excellent performance. Other Official Language related Incentive Activities On the occasion of Hindi Divas, a ‘Hindi Fortnight’ was arranged from 12th Sep. 2014 to 26th Sep. 2014 in the Deptt. An appeal was circulated as from Secretary (IPP) as head of the Deptt. to the employees of the Deptt. as well as of attached offices/institutes etc. urging them to do their maximum work in Hindi. To encourage officers/employees for doing work in Hindi, 8 Hindi competitions i.e. Essay, Noting/Drafting, Stenography, Typing, Instant Speech, Poem Recitation, Translation and Dictation for MTS employees were organized. With the aim of increasing use of Hindi to the maximum and propagation of writing skills of officers/employees, articles are invited from them for publication in Departmental

Implementation of Official Language Policy of the Union

Magzine ‘Sugandhi.’ Publication work of 5th issue is under process, for which interesting and readable compositions of the officers/employees of the Deptt., as well as motivative & entertaining writings of some prominent writers have been selected for publication. The attached and subordinate offices/ institutes etc. under this Department, continued their endeavour towards ensuring implementation of various provisions of Official Language Act and Rules

in true spirit. Their correspondence in Hindi with offices located in ‘A’, ‘B’ and ‘C’ regions, was found to be satisfactory. However, they are working to further increase the percentage of work in Hindi. Like previous years, this year also, Hindi Week/Fortnight/Month was organized during the month of September, 2014 in all the aforesaid offices. Wide-ranging competitions were organized by them during the period. Winners were awarded prizes.

221

18

CHAPTER

Vigilance Activities

The Vigilance unit of the Department is headed by a Chief Vigilance Officer (CVO) of the rank of Joint Secretary who is appointed on the advice of the Central Vigilance Commission. The Chief Vigilance Officer is the nodal point in the vigilance set up of the Department in respect of the following: •

Identification of sensitive areas prone to malpractices and taking preventive measures to ensure integrity and efficiency in the functioning of the Department.



Taking suitable action to achieve the targets fixed by the Department of Personnel and Training on anticorruption measures.



Scrutiny of complaints and initiation of appropriate investigation measures.



Processing and initiation of disciplinary proceedings.



Issue of Major/Minor Penalty and Integrity Certificates.



Preventive vigilance.



Handling and custody of top secret papers like Union War Books etc.

There are part time Chief Vigilance Officers for attached and subordinate offices under DIPP. The overall responsibility of vigilance activities of these offices, however, rests with the Chief Vigilance Officer of the Department of Industrial Policy and Promotion. Preventive vigilance continues to receive priority attention with primary emphasis on identification of areas sensitive or prone to malpractices and temptation. Compliance of the guidelines/instructions issued from time to time by the Department of Personnel and Training and Central Vigilance Commission in this regard is ensured.



Maintenance of property folders and issue of sanctions under CCA (Conduct) Rules, 1964.

Vigilance Awareness period was observed from 27th October 2014 to 1st November 2014 to create awareness amongst officers and staff.



Rules/FR&SR in respect of officers/ officials of DIPP.

During the year 2014 Vigilance Section has received one CVC case.

222

19

CHAPTER

Citizen Charter

The Department consciously and diligently upholds the values of integrity, transparency and accountability in its day-to-day public dealings. The Department endeavors to add value to services and to speed up the process of decision making and timely implementation by adopting modern management systems and practices. The Department is committed to : v Continuously consult the stakeholders and other interest groups/ stakeholders in reviewing the policies and procedures to reflect their views, perceptions and concerns on the policy documents. v Consider the stakeholders and interest groups as partners in progress and accord them respect and cordiality, encourage them to come out with innovative concepts and procedures to provide for cross-fertilization of ideas that help overall promotion of industrial climate. v Create more effective channels of communication for a interface with the stakeholders and other interest group through e-governance with widespread use of electronic mode. v Maintain the confidentiality of the personal and business information disclosed to the Department.

v Simplifying procedures for industrial approvals keeping minimum controls that are considered critically essential. v Place in the public domain all changes in law and procedures through appropriate media channels as and when these are finalized. Quick disposal of cases and redressal of grievances is accorded top priority. Towards this, the Department continues to issue on the spot written acknowledgments to all queries and applications and responds to all queries within time bound manner. A detailed list of service provided including standards thereof is a Table 19.1. For successful implementation of the Citizens – Charter, the Department expects cooperation of the users. An indicative list of expectations is given below: v S u b m i s s i o n o f d u ly c o m p l e t e d

application forms in all respects. v Proper utilization of central financial

assistance released to State Governments/UT Administrations for specific projects and making efforts for the timely completion of these projects. v Extending courtesies to officials of the

Department.

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ANNUAL REPORT 2014-15

v Always keeping proper records of

letters and communications with the Department. v If the user has an appointment with an

officer in the Ministry, please arrive 15 minutes prior to the appointment. v If the user wants to cancel an

appointment, please give a written notice via fax or email at least two days in advance. v Send reports in the prescribed format

as per prescribed timelines. v To check the website regularly for

updates on policies, programmes and procedures. v Give their suggestions/inputs on drafts

placed on Ministry’s website/those circulated to them. v State representatives should attend the

conference with complete information. Service Audit The Department is committed to periodical audit of the quality of the services based on stringent benchmarks and standards set, both at the unit and national levels. It is envisaged to hold independent surveys to capture the stakeholder’s perceptions and assessment of the quality of services. Helpline For any help please visit Department’s Information and Facilitation Counter (IFC) and the Public Relation Office, at Udyog Bhavan, New Delhi, (Near Gate No.11) Tele

224

No.011-23063088. Receipt of all applications can be obtained from the IFC office. The Department’s cell for investment Promotion and Infrastructure Development provides information, guidance and escort services on investment promotion and infrastructure development. Printed publications of the Department can be obtained from any outlet of the Controller of Publications. Users may visit Department’s website (http://dipp.nic.in) for downloading relevant forms for making applications for Industrial EntrepreneursMemorandum, Letter of Intent, Foreign Collaboration etc. Grievance Redressal The Department attaches great importance to re d re s s a l o f g r i eva n c e s o f t h e stakeholders for the overall promotion of industrial development. User complaints can be sent to us over phone, by mail, fax or personal visit. The first contact point is Investor Facilitation Cell. User can approach the Grievance Officer in the Department (Sh. Shailendra Singh, Joint Secretary, Tel No.23061637, email: [email protected]) if the issue is not resolved at the IFC. Additional Secretary and Financial Adviser in the Ministry of Commerce and Industry has been appointed as the Business Ombudsman to look into the complaints relating to delays in clearance of projects/approvals.

Citizen Charter

Table 19.1 List of Some Services/ Transaction included in the Citizens’ Charter 1. Grant of ad-hoc permission for manufacture and sale of cement without standard mark for a maximum period of 150 days. 2. Certification of essentiality for import of capital goods required for initial setting up of new projects of expansion of the existing projects. 3. Furnishing of comments of the DIPP to the Ministry of Coal for long term coal linkage and allocation of coal blocks for cement sector. 4. Release of Plan and Non-Plan funds to National Council for Cement and Building Materials (NCCBM) and Development Council for Cement Industry (DCCI) 5. Inclusion of Paper Mill in Schedule-I of Newsprint Control Order 2004 6. Furnishing of comments of the DIPP to the Ministry of Coal for allocation of coal for paper. 7. Release of Plan and Non-plan funds to Central Pulp and Paper Research Institute (CPPRI) and Development Council for Pulp and Paper Association of India (DCPPA) 8. Release of Plan funds to Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) for Project Development.

9. Essentiality Certificate for projects in Explosives sector. 10. I s s u i n g I n d u s t r i a l L i c e n s e fo r compulsory licensable items. 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 Industrial Entrepreneur Memorandum (IEM). 12. Recognition of Competent Authority (CA), Inspecting Authority (IA), Wellknown Material Testing Laboratory, Well-known Steel maker, Well-Known Foundry/Forge-shops, Well-Known Tube/Pipe Maker And Well-Known Remnant Life Assessment Organisation under the Indian Boiler Regulations, 1950. 13. Approval under Regulation 393 (b) of the Indian Boiler Regulations, 1950. 14. M i s c e l l a n e o u s a p p r o v a l s / clarifications under the Boilers Act, 1923/Indian Boiler Regulations, 1950. 15. D i s b u r s a l o f P l a n F u n d s t o Implementing Authorities. 16. In principle approval and release of funds to IIUS/MIIUS Projects. 17. Preparation and scrutiny of Bills to make payment to private firm/suppliers. 18. Furnishing of comments on FIPB cases forwarded by DEA (FIPB Division).

225

ANNUAL REPORT 2014-15

19. Essentiality Certificate for projects in Consumer Industry. 20. Bulletin Board Services for Investor. 21. Essentially Certificate for projects in light Engineering Industry

22. Release of Wholesale Price Index 23. Approval of Foreign visit of Ministers and officers of the State Government concerning industry sector

Useful Addresses Sl.No. Name and Designation 1.

2.

Public Relation Officer

Shri Shailendra Singh Grievance Officer and Joint Secretary

3.

Shri S.K. Bahri Business Ombudsman and Additional Secretary & Financial Adviser

226

Address

Tel. No. & e-mail

Department of Industrial Policy & Promotion, Entrepreneurship Assistance Unit, Near Gate No.11, Udyog Bhavan, New Delhi.

Tel: 011 -23063933

Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Room No.259, Udyog Bhavan, New Delhi

Tel: 011 -23061637

Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Room No.244, Udyog Bhavan, New Delhi.

Tel: 011 -23062756

EPABX: 011 23063321 Extn: 2237

Fax: 011-2306-1642 [email protected]

Fax: 011-23062101

20

CHAPTER

Right to Information (RTI)

The Department of Industrial Policy & Promotion has implemented the Right to Information Act, 2005. The proactive disclosure scheme and other guidelines issued by the Department of Pe r s o n n e l a n d Tra i n i n g a re b e i n g i m p l e m e n te d s c r u p u l o u s ly by t h i s Department. All the 26 items required to be published proactively in terms of Section 4 (i) to (xvii) of the RTI Act have been placed on the website of the Department at http://dipp.nic.in. To facilitate the citizens, who come in person to submit RTI applications/appeals, one RTI counter at Gate No. 11, Udyog Bhavan, New Delhi has been set up to receive applications from them. Disposal of all the applications/appeals received under RTI Act, 2005 in the Department is being centrally monitored by RTI Section.

All the Director/Deputy Secretary level officers have been designated as Central Public Information Officers to provide information to the citizens. Further, Smt. Shubhra Singh, Joint Secretary has been designated as the Appellate Authority to entertain appeals and to pass appropriate orders thereon. Smt. Shubhra Singh, Joint Secretary has also been nominated as Transparency Officer in the Department.CX During the financial year 2014-15 (up to 31st December, 2014), total 569 RTI applications were received in this Department. Of these 39 applicationswere transferred to concerned Public Authorities in other Ministries/Departments. Total 25 Appeals were received in the Department. All the applications and appeals were disposed of within the stipulated timeframe. Quarterly Returns in respect of RTI Act, 2005 are sent to CIC regularly.

227

ANNUAL REPORT 2014-15

APPENDIX -I Organizational Chart of Department of Industrial Policy and Promotion Secretary AS(SS)

ASSFA Director

Director

CCA

US

B&A

DS

Director

US

US

DS

US

US

US US

JS(AC)

Director

US

Director

US

Director

US

SDO

DS

US

US

US

US

Sr. EA JS(TK) JD

AIA

EA Director

SDO US JS(S) TA (B)

Director

Director

DS

DS

LA US

US

US

RO

US

US

SDO

SDO

US

US

SDO US

US

DO JS(SS)

LA

Director

DS

Director

DD

US

DO

US

DS

US

DS

US

US

SDO US

US

JS(RA)

US

228

US

IA

Director

Director US

US

US

DO

SDO US

DS US

JD

APPENDIX

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 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, Ahmadabad 8. National Manufacturing Competitiveness Council (NMCC),New Delhi 9. National Productivity Council, New Delhi 10. Quality Council of India, New Delhi

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ANNUAL REPORT 2014-15

APPENDIX -III YEARWISE AND STATEWISE BREAKUP OF INDUSTRIAL ENTREPRENURS MEMORANDUM FILED Name of the State

2009

2010

Proposed Numbers Investment Filed (Rs.Cr) Andaman & Nicobar Andhra Pradesh Arunachal Pradesh

Numbers Filed

2011

Proposed Investment (Rs.Cr)

2012

Proposed Numbers Investment Numbers Filed Filed (Rs.Cr)

2013

Proposed Investment (Rs.Cr)

Numbers Filed

2014 (upto Dec)

Proposed Investment (Rs.Cr)

Numbers Filed

Proposed Investment (Rs.Cr)

1

13

0

0

0

0

1

31

0

0

0

0

199

93287

343

162574

260

91859

175

59392

128

17631

121

21510

4

1303

5

848

7

1027

3

41

1

353

2

41

Assam

45

2860

37

8423

32

1231

39

2845

37

1587

33

1882

Bihar

32

13710

46

65190

31

44026

20

2374

33

2315

18

1449

1

10

1

22

0

0

0

0

114 102266

78

79575

57

34143

37

162584 683

Chandigarh

0

0

0

0

Chhattisgarh Dadra & Nagar Haveli

293

130630

256

285583

50

1709

63

11148

55

3885

31

4014

30

1605

24

Daman & Diu

39

858

35

598

21

665

5

26

14

332

5

68

Delhi

21

289

19

130

12

68

6

83

5

83

16

588

Goa

46

1382

39

2441

23

563

21

494

25

673

21

16448

376

142239

496

147152

541

141116

472

126201

352

94228

352

39597

Haryana Himachal Pradesh Jammu & Kashmir

85

2423

136

10309

112

8660

115

5894

106

4172

65

2635

41

6065

53

3568

36

1533

48

4798

13

449

26

969

23

1223

23

1234

21

1523

26

1529

11

450

12

297

Jharkhand

65

79502

53

41549

25

3198

32

10315

17

7739

7

368

Karnataka

179

92054

261

139218

214

94082

169

47967

101

10019

83

21858

8 0

171 0

8 0

99 0

12 0

3984 0

6 0

124 0

4 0

14264 0

13 0

3276 0

Madhya Pradesh

182

66669

226

204286

191

104527

126

10563

114

88715

96

12089

Maharashtra

593

68069

757

176194

973

133596

533

70181

451

53402

277

40367

0

0

1

0

1

13

1

68

2

64

3

78

10

970

14

1733

6

2574

3

1807

5

159

1

58

0

0

0

0

1

27

0

0

1

15

1

33

Gujarat

Kerala Lakshadweep

Manipur Meghalaya Mizoram Nagaland

0

0

0

0

1

38

0

0

0

0

1

26

Orissa

99

167932

179

315772

117

321032

57

63604

40

98723

27

28219

Puducherry

14

712

14

282

8

44

8

146

5

186

4

146

Punjab

68

9731

102

6779

112

13571

80

4477

49

2491

61

3624

Rajasthan

88

13461

122

29669

165

23488

163

18218

150

36948

77

7332

8

150

13

795

15

727

9

195

12

528

9

208

Tamil Nadu

233

66864

234

38587

255

73298

197

21253

167

27380

94

14596

Telengana

114

Sikkim

11664

166

13034

128

11967

131

10947

131

7718

109

6200

Tripura Uttar Pradesh

2

83

1

18

3

71

3

129

3

60

2

16

176

10142

168

13756

163

43672

134

13270

157

13330

106

12344

Uttarakhand

165

9293

217

7997

77

6854

42

1378

57

2012

38

1976

West Bengal

206

44390

209

42765

135 302515

91

5869

87

8054

60

2774

3465

1039848

4296

1731731 3868 1537710

2826

567830

2365

529828

1801

404339

Total

230

APPENDIX

APPENDIX -IV SECTORWISE AND YEARWISE LISTS OF IEMs FILED DURING LAST FIVE YEARS

SCHEDULED INDUSTRY 01 Metallurgical Industries

2009 Proposed Nos Investment

2010 2011 Proposed Proposed Investment Nos Investment

2012 Nos

641

254285

681

391805

532

268895

02 Fuels 03 Boilers&SteamGen.Pla nts

46

61743

49

73015

24

8575

11

3

410

3

1199

1

20

04 Prime Movers 05 Electrical Equipments 06 Telecommunications 07 Transportation Industry 08 Industrial Machinery

87

4265

147

5977

184

419

472403

546

928995

14

5371

18

60

5048

68

4 09 Machine Tools 10 Agricultural 15 Machinery 11 Earth Moving 2 Machinery 12 Misc.Mechanical & Engg. 167 Ind 13 Comm/Office/Hholdeq 6 upts 14 Medical and 0 Surgical Inst 15 Industrial 1 Instruments 16 Scientific 2 Instruments 17 Math,Survey,Drawing 0 Inst. 18 Fertilizers 19 Chemicals(Except Fertilizers) 20 Photographic raw film/Paper 21 Dye Stuffs

2014 (Jan2013 Dec) Proposed Proposed Proposed Investment Nos Investment Nos Investment

346 141983

240

106893

99 27239

1804

12

17868

8

1870

2

102

1

15

1

26

9990

140

94

7614

34

1625

348

778500

172

14696 14421 0

122

82682

948

15

360

7

49

10

1049

2

26

72

12290

97

9695

70

24591

58

7602

56

6109

5805

78

3372

84

4780

51

2232

57

5646

40

3472

174

7

536

4

1035

4

46

5

226

1

21

518

18

655

27

3136

8

654

9

727

4

673

112

3

44

9

779

5

265

6

634

3

601

12976

206

11516

186

15881

163

7976

130

4087

94

3881

1583

12

181

3

132

2

11

4

123

12

949

0

10

1212

12

195

2

74

8

710

3

131

2

3

24

0

0

2

50

1

21

3

95

32

14

432

5

222

5

174

4

140

0

0

0

0

0

0

0

0

0

0

0

0

0

38

2183

33

3068

45

9046

51

10443

33

22494

14 81754

228

20818

321

32705

272

37737

191

74270

147

57873

124 52874

0 4

0 231

0 9

0 535

0 5

0 1177

0 2

0 36

0 1

0 102

147 34873

2 3

16 42

231

ANNUAL REPORT 2014-15

SCHEDULED INDUSTRY 22 Drugs and Pharmaceuticals

104

2776

134

16897

133

6741

105

8291

105

6900

23 Textiles

326

9200

427

26566

370

26174

327

14839

302

81667

24 Paper and Pulp

79

6037

76

6264

64

5315

67

7428

52

3903

48

2175

25 Sugar 26 Fermentation Industries 27 Food Processing Industry 28 Vegetable Oil &Vanaspathi

73

4947

96

7469

126

16735

62

5618

28

2446

38

3672

75

4566

69

3139

112

6644

48

4365

52

4916

28

2229

157

6996

204

8392

147

10638

143

7022

161

114

3694

93

3802

78

3475

36

1064

27

3381

23

534

29 Soaps, Cosmetics and Toiletries

28

1626

27

2886

21

2380

19

2106

16

1593

10

1895

30 Rubber Goods

28

2118

37

5819

41

8292

28

1987

33

7191

14

4790

31 Leather

7

106

12

161

10

474

4

26

8

550

6

136

32 Glue and Gelatin

2

27

4

19

1

16

0

0

1

55

4

919

33 Glass

27

558

21

1670

26

5610

11

211

10

579

5

206

34 Ceramics 35 Cement and Gypsum

17

818

65

1238

53

2115

21

1628

14

328

35

1517

143

52366

158

98410

135

73681

94

38268

65

32242

36 Timber Products

2

96

4

122

3

488

4

469

2

1182

8

760

37 Defence Industries

0

0

0

0

0

0

0

0

0

0

1

61

36 442

424 95534

40 599

573 79795

44 651

3503 215274

32 591

487 50355

25 522

38 Misc.Industry Others Total

2012 Nos

3465 1039848 4296 1731731 3868 1537710 2826 567830 2365

Proposed investment ` Cr

232

2010 2011 Proposed Proposed Investment Nos Investment

2014 (Jan2013 Dec) Proposed Proposed Proposed Investment Nos Investment Nos Investment

2009 Proposed Investment Nos

86

3942

260 16634

10049 169 10223

44 19754

324 44 1321 56016 328 117294 529828 1801 404339

APPENDIX

APPENDIX -V STATEWISE BREAK UP OF IEMs IMPLEMENTED

(during the last five years and upto December 2014)

BASED ON PART B OF IEM FORM FILED BY ENTREPRENEURS Name of the State/UTs

2009 Inv (Rs.Cr)

No

Andaman & Nicobar Andhra Pradesh Arunachal Pradesh

2010 Inv No (Rs.Cr)

2011 Inv (Rs.Cr)

No

2012 Inv No (Rs.Cr)

2013 Inv No (Rs.Cr)

2014 (upto Dec) Inv No (Rs.Cr)

1

0

0

0

0

0

0

0

0

0

0

0

54

1877

49

1011

60

2266

58

7150

41

5021

29

2804

0

0

0

0

0

0

1

33

0

0

1

22

Assam

10

225

9

0

13

63

14

290

16

1012

12

470

Bihar

1

0

0

0

2

0

9

471

7

869

4

420

Chandigarh

0

0

0

0

0

0

0

0

0

0

0

0

Chhattisgarh

6

756

10

749

0

0

0

0

1

31

0

0

Dadra & Nagar Haveli

9

93

7

62

6

294

3

42

2

69

4

96

Daman & Diu

3

25

13

79

1

0

1

0

1

3

2

41

Delhi

2

0

0

0

1

0

0

0

0

0

0

0

Goa

5

5

6

51

7

21

5

228

2

37

1

2

Gujarat

76

2195

56

4565

50

2148 153

49616

83 15478

78

40954

Haryana Himachal Pradesh Jammu &Kashmir

21

163

13

282

7

394

18

1289

15

889

10

977

7

65

7

71

3

42

7

609

3

27

1

112

3

645

3

69

0

0

0

0

0

0

0

0

Jharkhand

0

0

2

0

5

424

3

406

0

0

9

1002

Karnataka

31

524

19

1771

22

890

26

1672

24

4912

17

2361

Kerala

1

2

0

0

0

0

0

0

0

0

1

37

Lakshadweep Madhya Pradesh

0

0

0

0

0

0

0

0

0

0

0

0

30

904

12

11959

11

268

14

2157

7

1519

13

2625

Maharashtra

289

3499

87

1291

120

4671

87

7509

96 30266

48

6024

0

0

0

0

0

0

0

0

0

0

Manipur

0

0

233

ANNUAL REPORT 2014-15

Name of the State/UTs

2009 Inv (Rs.Cr)

No

2010 Inv No (Rs.Cr)

2011 Inv (Rs.Cr)

No

2012 Inv No (Rs.Cr)

2013 Inv No (Rs.Cr)

2014 (upto Dec) Inv No (Rs.Cr)

Meghalaya

0

0

0

0

2

51

3

401

7

1100

3

47

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

1

14

6

80

5

163

2

105

4

652

1

7521

Puducherry

2

28

2

0

2

5

0

0

0

0

0

0

Punjab

16

145

7

69

2

0

6

1042

1

38

2

162

Rajasthan

10

149

27

1592

14

158

18

2017

30

3173

13

1544

4

0

4

0

3

0

6

142

5

370

6

504

Tamil Nadu

39

1267

27

1374

28

235

10

524

12

2292

7

2500

Telengana

28

22

37

1174

26

173

29

1261

35

3365

8

1137

1

181

0

0

0

0

0

0

1

0

1

17

Uttar Pradesh

18

733

24

244

20

82

23

1450

22

4111

9

872

Uttarakhand West Bengal Total

68

542

159

2079

31

197

52

2752

22

781

28

2749

68

632

50

1163

33

325

25

962

44

2482

32

3747

481 78497 340

78747

Sikkim

Tripura

Note: No applicant had reported implementation of IEM during the year 1991.

234

804 14691

636 29735

474 12870 574 82156

APPENDIX

APPENDIX -VI STATEWISE INVESTMENT INTENTIONS(IEMs +LOIs+DILs) 10th Plan Period Onwards S.No

Name of the State

Xth Plan Period Nos

XII th Plan Period (Apr'12 to Dec'14)

XIth Plan Period

Prop. Inv

Nos

Prop. Inv

Nos

Prop. Inv

Total Nos

Prop. Inv

1

Andaman & Nicobar Islands

2

Andhra Pradesh

3

Arunachal Pradesh

30

360

27

3403

3

394

60

4157

4

Assam

272

3818

169

21152

102

6194

543

31164

5

Bihar

108

9107

166

139676

64

5146

338

153929

6

Chandigarh

7

235

5

83

1

22

13

340

7

Chhattisgarh

1219

234796

1179

906386

138

256149

2536

1397331

8

Dadra & N Haveli

603

11999

263

21566

79

5960

945

39525

9

Daman & Diu

302

3422

190

4510

23

426

515

8358

Delhi

40

311

73

628

27

754

140

1693

Goa

169

1851

163

5775

65

17596

397

25222

10

2

31

2

136

1

31

5

198

1049

81538

1213

523020

392

68529

2654

673087

11

Gujarat

2595

227258

2178

653978

1050

239822

5823

1121058

12

Haryana

1020

33640

582

35044

275

11021

1877

79705

13

Himachal Pradesh

394

8739

214

19843

68

2582

676

31164

14

Jammu & Kashmir

460

8652

143

6694

42

2035

645

17381

15

Jharkhand

454

102089

279

321358

50

18147

783

441594

16

Karnataka

1112

114814

1087

538170

320

65804

2519

718788

17

Kerala

142

2616

60

4621

20

17664

222

24901

18

Lakshadweep

0

0

0

0

0

0

0

0

19

Madhya Pradesh

654

42993

1074

594378

308

110221

2036

747592

20

Maharashtra

3596

130517

3586

537258

1128

151945

8310

819720

21

Manipur

4

20

2

13

6

210

12

243

22

Meghalaya

140

3045

62

10768

9

2024

211

15837

23

Mizoram

0

0

1

27

2

48

3

75

24

Nagaland

7

16037

3

119

1

26

11

16182

25

Orissa

753

201884

662

1185876

108

141020

1523

1528780

27

Puducherry

212

2224

72

3007

16

412

300

5643

28

Punjab

748

23981

492

45154

169

9303

1409

78438

29

Rajasthan

795

19088

597

108003

335

53840

1727

180931

30

Sikkim

25

1691

70

3011

28

906

123

5608

31

Tamil Nadu

2212

91103

1394

233509

412

56646

4018

381258

32

Telengana

985

27743

762

77890

347

21145

2094

126778

235

ANNUAL REPORT 2014-15

S.No

Name of the State

Xth Plan Period Nos

33

Tripura

34

Prop. Inv

XIth Plan Period Nos

Prop. Inv

XII th Plan Period (Apr'12 to Dec'14) Nos

Prop. Inv

Total Nos

Prop. Inv

13

300

12

396

7

200

32

896

Uttar Pradesh

2167

91110

895

93768

363

37239

3425

222117

35

Uttarakhand

1138

24960

712

36844

121

5065

1971

66869

36

West Bengal Locations in More than one State

1882

94182

949

511894

214

15454

3045

621530

8

29

3

13

0

0

11

42

25317

1616407

19341

6647971

6294

1323980

50952

9588358

37

Total Proposed Investment

`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.

236

APPENDIX

APPENDIX -VII SECTORWISE INVESTMENT INTENTIONS(IEMs +LOIs+DILs) 10th Plan Onwards Name of the Scheduled Industry

1.Mettallurgical Industries 2. Fuels 3.Boilers and Steam Gen. Plants 4. Prime Movers 5.Electrical Equipments 6. Telecommunications 7.Transportation 8.Industrial Machinery 9.Machine Tools 10.Agricultural Machinery 11.Earth Moving Machinery 12. Misc. Mechanical Industry 13. Comm.H.HoldEquipments 14. Medical and Surgical Equpts 15. Industrial Instruments 16.Scientific Instruments

XII th Plan Period

Xth Plan Perid XIth Plan Period (Apr-12 to Dec'14) Total Prop. Prop. Prop. Nos Inv Nos Inv Nos Prop. Inv Nos Inv 4588 416165 3184 1467305 598 232134 8370 2115604 188 131325 200 222124 26 20008 414 373457 15 421 10 1833 4 143 29 2397 541 14323 641 36006 229 20782 1411 71111 1517 410770 2087 3001635 383 209528 3987 3621933 194 6312 113 8729 17 1117 324 16158 388 17677 384 73674 163 27356 935 118707 537 11597 369 19838 137 11001 1043 42436 60 468 34 2239 9 293 103 3000 59 2579 75 5184 16 1420 150 9183 14 156 29 1838 12 1369 55 3363 1298 20903 850 56856 349 14572 2497 92331 60 558 28 1994 18 1083 106 3635 44 153 39 1767 13 915 96 2835 11 98 7 93 6 166 24 357 52 262 41 983 7 292 100 1537

17.Math,Survery&Drawing Equpts 18.Fertilizers

1 285

110 4136

0 186

0 20643

0 79

0 109410

1 550

110 134189

1918 0 34 873 3631 513 1328 824 1167 570 277

100764 0 564 11297 72394 31274 110142 18245 10994 5740 4847

1458 0 28 586 1866 375 471 497 730 471 120

270488 0 2277 32709 89766 27691 47369 29044 32970 15336 8860

417 2 6 274 808 146 112 109 436 76 39

176433 16 180 18392 110935 12637 9507 9209 25717 4665 4832

3793 2 68 1733 6305 1034 1911 1430 2333 1117 436

547685 16 3021 62398 273095 71602 167018 56498 69681 25741 18539

19.Chemical Other than Fertilizers 20.Photographic Raw films 21. Dye Stuffs 22.Drugs & Pharmaceuticals 23.Textiles 24.Paper & Paper products 25.Sugar 26.Fermantation Industries 27.Food Processing Industries 28.Vana spathi,Veg Oil &Fats 29.Soaps,Cosmetics &Toileteries

237

ANNUAL REPORT 2014-15

Name of the Scheduled Industry

30.Rubber Goods 31.Leather Goods 32. Glue & Gelatin 33.Glass 34.Ceramics 35.Cement & Gypsum 36.Timber Products 37.Defence Industries

38.Miscellaneous Industries Others Total

XII th Plan Period

Xth Plan Perid XIth Plan Period (Apr-12 to Dec'14) Total Prop. Prop. Prop. Nos Inv Nos Inv Nos Prop. Inv Nos Inv 233 5214 179 21008 66 13389 478 39611 203 717 52 1081 17 712 272 2510 22 512 10 89 5 974 37 1575 154 6004 112 11230 19 812 285 18046 220 4265 220 9291 67 3385 507 16941 477 64149 837 425105 187 76928 1501 566182 26 266 21 1433 14 2411 61 4110 41 3351 155 8309 53 932 249 12592

377 4241 190 6284 95 2577 123414 2686 684890 1280 25317 1616407 19341 6647971 6294

1973 662 12498 198352 6543 1006656 1323980 50952 9588358

Note: Proposed Investment ` 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.

238

APPENDIX

APPENDIX -VIII Financial and Physical Progress of IIUS Projects S N Name of the Industrial Cluster

State

Date Approval

Total Project Cost (` Cr.)

Approved Released GOI grant GOI grant (` Cr.) (` Cr.)

Progess Financial (`Cr.)

Progress Project Physical (%) Approval Period

1

Pharma Hyderabad

Cluster, Telangana 04.11.2004

66.16

49.62

48.13

62.08

Complete

10th Plan

2

Chemical Ahmedabad

Cluster,

Gujarat 14.03.2005

71.35

41.39

40.14

69.41

Complete

10th Plan

3

Chemical Ankleshwar

Cluster,

Gujarat 02.07.2004

152.83

50.00

49.47

161.40

Complete

10th Plan

4

Chemical Vapi

Cluster,

Gujarat 25.03.2004

54.31

40.49

39.27

71.25

Complete

10th Plan

5

Foundry Belgam

Cluster, Karnataka 28.10.2004

24.78

18.58

18.02

24.38

Complete

10th Plan

6

Machine Tools Karnataka 28.10.2004 Cluster, Bangalore

135.50

49.12

47.64

149.09

Complete

10th Plan

7

Textile Ichalkaranji

Cluster, Maharashtra 14.03.2005

65.07

32.70

31.72

67.00

Complete

10th Plan

8

Auto Components Maharashtra 06.09.2004 Cluster, Pune

59.99

44.99

44.54

63.05

Complete

10th Plan

9

Auto Components Cluster, Pithampur

MP

28.10.2004

62.97

47.23

45.81

67.64

Complete

10th Plan

10

Textiles Cluster, Ludhiana, Punjab

Punjab

06.09.2004

17.19

12.69

12.30

17.24

Complete

10th Plan

11

Marble Kishangarh

Cluster, Rajasthan 28.10.2004

34.72

26.04

26.77

50.17

Complete

10th Plan

12

Auto Components Cluster, Chennai

TN

02.07.2004

47.49

27.74

26.90

54.67

Complete

10th Plan

13

Cereals Staples Madurai

Pulses & Cluster,

TN

06.09.2004

39.96

29.97

29.07

40.03

Complete

14

Foundry/Pump/Motor Cluster, Coimbatore

TN

14.03.2005

55.30

39.39

38.99

55.57

Complete

15

Leather Ambur

Cluster,

TN

14.03.2005

67.33

43.93

43.49

96.34

Complete

10th Plan

16

Textiles Tirupur

Cluster,

TN

09.03.2004

143.00

50.00

49.50

157.60

Complete

10th Plan

17

Multi Industry Cluster, Haldia

WB

04.03.2005

26.28

25.40

34.89

52.76

Complete

10th Plan

18

Iron & Steel Cluster, Chhattisgarh 04.03.2005 Raipur

54.86

31.61

30.79

58.33

Complete

10th Plan

10th Plan

10th Plan

239

ANNUAL REPORT 2014-15

S N Name of the Industrial Cluster

State

Date Approval

Total Project Cost (` Cr.)

Approved Released GOI grant GOI grant (` Cr.) (` Cr.)

Progess Financial (`Cr.)

Progress Project Physical (%) Approval Period

19

Metallurgical Cluster, Jajpur

Odisha

02.07.2004

80.60

47.00

45.59

88.62

Complete

10th Plan

20

Coir Alappuzha

Kerala

04.11.2004

56.80

42.60

41.31

54.75

96.00%

10th Plan

AP

02.07.2004

30.67

23.01

22.31

30.66

98.00%

10th Plan

UP

04.03.2005

14.34

9.32

8.83

13.56

Complete

10th Plan

23

Gem & Jewellery Gujarat 04.11.2004 Cluster, Surat

61.00

45.61

44.15

45.64

24

Rubber Howrah

Cluster,

WB

29.03.2005

41.01

15.71

14.8350

28.80

96.00%

10th Plan

25

Foundry Howrah,

Cluster,

WB

04.03.2005

95.03

38.68

32.57

57.32

60.00%

10th Plan

1558.54

882.82

867.04

Cluster,

21

Auto Components Cluster, Vijayawada 22 Leather Cluster, Kanpur

Total 10th FYP

240

Operational 10th Plan

APPENDIX

Financial and Physical Progress of IIUS Projects SN

Name of the Industrial Cluster

State

Date Approval

Approved Released GOI grant GOI grant (` Cr.) (` Cr.)

Progess Financial (` Cr.)

Progress Project Physical (%) Approval Period

26

Engineering Nashik

27

Pandhurna Industrial Cluster, Chhindwara

MP

28

Handloom Chanderi

Cluster,

MP

11.03.2008

42.66

20.30

13.09

11.11

40.00%

29

Auto Adityapur

Cluster, Jharkhand 13.08.2008

65.63

47.79

28.42

27.66

42.00%

30

Readymade Garments Cluster, Jabalpur

55.58

30.67

16.95

23.09

41.00%

31

32

33

Cluster, Maharashtra 11.03.2008

Total Project Cost (` Cr.)

Total 11 th FYP Plastic, Polymer and Allied Cluster, Balasore Tiruchirapalli Engineering and Technology Cluster, Tirruchirapalli Marathwara Automobile Aurangabad

02.02.2009

67.26

42.87

41.59

56.48

Complete

81.10

43.07

41.77

61.41

92.00% 11 th Plan

MP

11.03.2008

Odisha

26.03.2010

312.23 81.90

184.70 58.28

141.82 49.71

48.65

60.00%

TN

01.10.2010

102.81

58.28

51.48

59.30

60.50%

35

Bamboo Technology Park, Guwahati

81.35

58.20

50.81

60.46

74.00%

HP

19.11.2010

86.76

58.28

49.51

77.41

89.00%

Assam

01.10.2010

62.28

52.63

45.91

44.08

71.00%

36

Narol Textiles Gujarat 19.11.2010 Infrastructure and Environment Management, Narol

145.30

58.28

32.83

54.49

38.00%

37

Kolhapur Cluster

42.63

30.92

27.28

28.14

66.00%

603.03

374.87

307.53

Foundry Maharashtra 31.01.2012

Total 11 th FYP

11 th Plan

11th Plan Recast

11th Plan Recast Maharashtra 31.05.2010

Baddi Infrastructure, Baddi

11 th Plan

11 th Plan

Cluster,

34

11 th Plan

11th Plan Recast 11th Plan Recast 11th Plan Recast 11th Plan Recast

11th Plan Recast

241

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