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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

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

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.

ANNUAL REPORT 2014-15

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)

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

ANNUAL REPORT 2014-15

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

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, CEOs
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

ANNUAL REPORT 2014-15

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

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

ANNUAL REPORT 2014-15

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 Governments 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 Centres operations is to
contribute to social, economic and
environmental development in least
developed countries, mainly in Africa.

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 Agencys 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

ANNUAL REPORT 2014-15

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

10

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 UKs 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), Indias 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 Indias
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.

11

ANNUAL REPORT 2014-15

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.

12

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.

13

ANNUAL REPORT 2014-15

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

14

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.

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

15

ANNUAL REPORT 2014-15

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 Indias 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
AprilDecember, 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 & Youngs 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.

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

National Investment and Manufacturing

Zones (NIMZs);

Rationalization

and simplification of
business regulations;

Simple and expeditious exit mechanism

for manufacturing units;

Incentives for SMEs;

Industrial training and skill upgradation

measures;

Financial

and institutional mechanisms


for technology development, including
green technologies;

Government procurement;

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 SEBIs
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

29

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

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
incorporated 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 development 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
Trusts 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 UKs 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 Indias
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

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 Indias 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

45

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.

47

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

48

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

49

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 Indias
global partners, as evidenced by the recent
in-depth interactions between India and the
United States of America.
Highlights
Entry and exit regulations have been

eased out, exim regulations made


infinitely easier, six PSUs brought out
sickness and five PSUs closed down.
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.
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.
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

> Indias 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

51

ANNUAL REPORT 2014-15

CHEMICALS

CONSTRUCTION

> 3rd largest in Asia & 6th largest by output


in the world
> Indias 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 Indias
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 countrys 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

53

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 countrys 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

55

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
worlds 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

56

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
Tourisms Plan budget is channelized for
funding the development of destinations,
circuits, mega projects as well as rural
tourism infrastructure projects

57

ANNUAL REPORT 2014-15

CHAPTER

Development Schemes

One of the principal objectives of the


Government of Indias 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 Indias 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

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:

59

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.

61

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

63

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

Industrial Infra Upgradation of IMT Manesar

Haryana

97.78

39.90

Industrial Infra Upgradation at IMT, Bawal

Haryana

84.85

34.19

Industrial Area, Sitapur, Morena

MP

75.00

12.75

Industrial Area, Ujjaini, Dhar

MP

44.88

11.50

Punjab Small Industries and Export Corporation


Ltd. (PSIEC) Estate, Patiala

Punjab

76.60

16.58

Angul Aluminium Park,Angul

Odisha

184.69

46.00

Pashamylaran Industrail Area, Medak

Telangana

64.24

23.56

Industrial Growth Centre, Urla, Distt. Raipur

Chhattisgarh

54.81

12.26

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

65

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

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 countrys 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
Governments 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

Indias 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,
coaxial 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

79

ANNUAL REPORT 2014-15

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 semiautomatic and
fullyautomatic product range. With rising
disposable incomes and higher aspirations,
there is a gradual shift towards higher
capacity washing machines and also
towards fullyautomatic 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
airconditioners 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

80

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.

81

ANNUAL REPORT 2014-15

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

82

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
industrys 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.

83

ANNUAL REPORT 2014-15

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

84

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.

85

ANNUAL REPORT 2014-15

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

86

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.

87

ANNUAL REPORT 2014-15

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

Source: Indian Paper Manufacturers Association.

88

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

89

ANNUAL REPORT 2014-15

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
countrys 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.

90

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. Indias 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,

91

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%.

92

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 crches 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

94

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.

95

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 worlds 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.

Indias 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.

97

ANNUAL REPORT 2014-15

Important developments during 2014


The following project were successfully
completed in 2014

Khagra Brass and Bell Metal

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

National Programme for Developing


Plastic manufacturing industry in India

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

India retained its membership in both


PBC and IDB.

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.

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
Centres 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
Consulars from as many as 20 Embassies/
high commissions of LDCs in Africa based in
New Delhi. Honble 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
UNIDOs 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
Indias 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.

99

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 (AsiaOceania
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

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.

An MoU

has been signed between the


Ministry of Commerce and Industry of
the Republic of India and the Ministry
of Commerce of the Peoples Republic

of China on Cooperation on Industrial


Parks in India on June 30, 2014 at
Beijing.

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)

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
Arabias Minister of Commerce and
Industry, Tawfiq bin Fouzan Al-Rabiah;
and Indonesias Minister for Trade,
Muhammad Lutfi.

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.

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.

Milken

Institutes London Summit,


London: MoS (I/C) for Commerce&
Industry visited London during
October 27-28, 2014. During the visit
she participated in Milken Institutes
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.

India

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

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.

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.

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

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.

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.

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.

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.

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.

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.

107

ANNUAL REPORT 2014-15

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.

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 Honble
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 fr 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

108

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 countrys international
obligations while utilizing the flexibilities
provided in the international regime to
address its developmental concerns. Indias
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

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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ANNUAL REPORT 2014-15

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 Indias 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 Indias
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:

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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ANNUAL REPORT 2014-15

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

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.

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.

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.

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.

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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ANNUAL REPORT 2014-15

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.
Indias 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

115

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.

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.

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:

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.

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

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.

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:

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.

Free online public search facilities for


Patents and Trademarks records made
available.

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.

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.

E-Register of Patents containing all


information including renewals,
assignments and other legal status
made available for public.

Supply of Patent documents to the user


public has been expedited

Information received from patentees


regarding Working of Patented
Inventions has been uploaded in the
website for the year 2012.

The list of Pending Applications and


Granted Patents related to various
fields of inventions has been made
available to the public

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.

117

ANNUAL REPORT 2014-15

- 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.

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.

A special drive for disposal of requests


for recordal of post registration
changes in the registered Trademarks
has been initiated

A special drive for disposal of


trademarks opposition/rectification
matters on the basis of withdrawals
requested therein has been initiated.

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

Public Awareness Sessions about the


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

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

119

ANNUAL REPORT 2014-15

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

31

45

14

29

23

21

22

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

121

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

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 Boards
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

125

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 countrys 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
Economic policy inputs on industrial

development.
Re 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.
Analysis of trends of industrial

production and growth.


Examination of WTO issues pertaining

to market access for non-agricultural


commodities (industrial tariffs).
Examination 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:
W 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).
Monthly 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).
Key Economic Indicators (Monthly

update).
Coordination functions
The Office coordinates the following work:The 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.,
Monthly D.O. letter to the Cabinet

Secretary regarding important


achievements during the month.
Coordinating for the material

regarding Pre-Budget Economic


Survey, material for the Speech of
President of India, Prime Minister,
Finance Minister etc.
Preparation of Executive Summary &

Chapter-1 of Outcome Budget of the


Department.
Preparation of Annual Plan/Five Year

Plan of the Department.


Preparation of concept papers/

approach papers for the schemes of


the Department.
Research work concerning Industrial

Sector.
Work 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:Ten 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.
Monthly 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.
Monthly 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

Monthly 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
The Air Transport Service Price Index

is in the process of finalization and


uploading on the website of OEA.

Quarterly 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).
Notes 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)

The 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.

129

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.

131

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:
Considered fair by an individual

and/or a group.
Determining 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.
It helps in identifying areas for

physical improvements leading to


enhancing competitiveness

Attached & Subordinate Offices

N 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 ones own performance
and practices against the best
competitors. It is thus a benchmarking tool in competitiveness
studies.
Normation balances the interest of all

stakeholders while protecting


consumer interest.
It 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.

Over 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

(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

133

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

Study on Inverted Duty Structure in Medical Implant Device Blood Collection


Ttuibe

Study on Inverted Duty Structure in Medical Implant Device Syringes

Study on Inverted Duty Structure in Medical Implant Device Needles

Study on Inverted Duty Structure in Master Batch

Study on Inverted Duty Structure in Medical Implant Device Pacemaker

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

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

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

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 Indias Trade with Vietnam.

22

Study on Indias 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.

139

ANNUAL REPORT 2014-15

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

Total

198

Type wise
S.No.

No. of study reports

Tariff related studies

13

Studies related to Free Trade Agreements etc

17

Industry specific study studies

55

Pricing studies

140

Type of Studies

i.

Commodities under Administrative Price Mechanism (APM)

ii.

State monopolies/public utilities

iii.

Government procurement

107
1
100
6

Others

Total

198

Attached & Subordinate Offices

List of Ongoing studies as on 10/3/2015


Sl.
No.

Study topic

Sector

Type of Study

Referral Agency

Performance of cement
Industry (2013-14)

mfg

Pricing/APM

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

mfg

Industry
specific study

Department of
Public Enterprises

mfg

Industry
specific study

Department of
Public Enterprises

Mfg

Industry
specific study

Department of
Public Enterprises

mfg

Industry
specific study
Industry
specific study

Suo-moto

Department of
Heavy Industry

mfg

FTA impact
analysis

Department of
Heavy Industry

mfg

FTA impact
Analysis

Department of
Heavy Industry

7
8

10

mfg

No. of study
reports
expected to
be submitted
1

131

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

141

ANNUAL REPORT 2014-15

11

Impact assessment of Free


Trade Agreement - ASEAN.

mfg

FTA impact
Analysis

Department of
Heavy Industry

12

Study on Export
Competitiveness:

mfg

Industry
specific study

Department of
Heavy Industry

13

Input Cost Study on SubSectors of Capital Goods:

mfg

Industry
specific study

Department of
Heavy Industry

14

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

mfg

Industry
specific study

Department of
Heavy Industry

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

16

Study on determining the


realistic cost of Condoms

mfg

Pricing Govt
procurement

Department of
Health & Family
welfare

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

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

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

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

21

Study on Status of Ship


Building Industry in Goa
Strengths, Impediments
and way forward

mfg

Industry
specific study

State Government
of GOA

22

Steel sector (Bhilai &

mfg

Industry
competitivene

Suo-moto

142

Attached & Subordinate Offices

23

Study on second stage


handling charges of jute
bags

mfg

Pricing -Govt.
Procurement

Ministry of
Consumer affairs
& Public
distribution

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

mfg

Pricing -Govt.
Procurement
FTA analysis

Ministry of
Textiles
Suo-moto

mfg

Pricing - Govt.
Procure ment

28

Study on costing structure/


Benchmarking for testing /
homologation charges at
NATRIPs 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

Services
Sector

Pricing
public utility

Ministry of
Drinking water
and Sanitation

Services
Sector

Pricing
public utility

Ministry of
Drinking water
and Sanitation

25
26

27

30

31

mfg

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

143

ANNUAL REPORT 2014-15

32
33

34

35

37

38

39
40

41
42

43

44

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

Services
Sector

Pricing
public utility

Ministry of
Drinking Water &
Sanitation

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

Services
Sector

Pricing
public utility

Ministry of Power

5(2)

5(3)

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

Services
Sector

Pricing
public utility

Ministry of Power

Services
Sector

Pricing
public utility

Ministry of Power

Services
Sector

Pricing
Public Utility

Ministry of
Chemicals and
Fertilizers

Services
Sector

Pricing
Public Utility

Ministry of food
and Public
distribution

Social
Sector

Industry
specific study

Social
Sector

Others

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

Social
Sector

Others

Ministry of
Environment &
Forest

Social
Sector

Others

Social
Sector

Industry
specific study

Ministry of
Environment &
Forest
Ministry of
Environment &
Forest

145

ANNUAL REPORT 2014-15

56

57

58

59

60

61

62

Assessment of fuel wood


extraction from Indias
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

Social
Sector

Industry
specific study

Ministry of
Housing and
Urban Poverty
Elevation

Social
Sector

Industry
specific study

Social
Sector

Industry
specific study

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

Social
Sector

Industry
specific study

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

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

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.

147

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 PESOs
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 Rules2008. 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

151

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,

155

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.

157

ANNUAL REPORT 2014-15

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


Place

Transferred
Appeal

Transferred
Rectification
Application

Chennai

Delhi

Mumbai

Ahmedabad

Original
Appeal

Original
Rectification
Application

Total

31

45

100

101

57

63

27

31

Kolkata

25

27

Total

27

240

267

14

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


Place

Transferred
Appeal

Transferred
Rectification
Application

Chennai

Delhi

Mumbai

Original
Appeal

Original
Rectification
Application

Total

15

10

25

22

25

12

19

Kolkata

Total

52

21

73

Original
Rectification
Application

Total

Patent cases received from April, 2014 to December, 2014


Place

Transferred
Appeal

Transferred
Rectification
Application

Chennai

Delhi

14

21

Mumbai

Kolkata

12

13

Total

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

Original
Appeal
0

Original
Rectification
Application

Total

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


Place

Transferred
Appeal

Transferred
Rectification
Application

Chennai

Total

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

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

159

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.

161

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 toolings 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 <1m and a surface
finish of <50nm is successfully
developed for energy applications

Hydrodynamic Bearings
b.

The precision miniature JT cooler


components having very high accuracy
was successfully fabricated for solid
state applications

163

ANNUAL REPORT 2014-15

c.

Micromachining Services using FS


Laser Micromachining System were
provided

d.

5.

Machining of Microfluidic channels is


in progress

4.

The following R & D is being taken up &


completed for
Fabrication of Wear specimens for
Direct Metal Deposition (DMD) using
tool steel powder for tribological
characterisation

b)

Direct Metal Laser Sintering (DMLS)


of Mounting Bracket for aerospace
applications.

c)

Direct Metal Laser Sintering of Mould


for Roller Bearing Retainer that is
impossible to fabricate through
conventional CNC machining. (17
Assignments)

Some of the manufacturing


technology development projects
(continuing activity) are:
1. Manufacture, assembly & testing
of airborne quality hydraulic
system filters for use in aircrafts.

Additive Manufacturing

a)

Technology Development

2. Hyperbolic feed rollers of SPM's


for the improved surface finish of
the rollers used in bearing
6. Testing & Evaluation

Development of Test Rigs

(i) Development of Electro hydraulic force


exciter for modal analysis of machine
tool structure is completed
(ii) Development of spindle test rig &
telescopic cover test rig are in progress

Development of hydraulic actuator


mechanism for cowl movement for
aerospace application is in progress

Testing and evaluation of airworthy products


are taken up as a continuing activity:

Proof pressure test on Actuator

cylinder.

Assembly and acceptance testing of

hydraulic system filters

Testing of pneumatic cylinders,

Mould for Roller Bearing Retainer

164

Filtration efficiency test and dirt


holding capacity test, Pullout test on
hydraulic tubes, Calibration of thermal
relief valve, Inspection, integration and
proving of hydraulic power pack with
special purpose machines, Testing of

Attached & Subordinate Offices

hydraulic elements, measurement of


oil contamination level, component
cleanliness level checking, calibration
of pressure gauges, temperature
transducers, thermometers & RTD,
hydrostatic pressure testing and
supply of calibration fluid were carried
out as routine testing services. (186
assignments).

c. Calibration of Masters: Surfaces


roughness masters for parameters of
roughness, groove depth, glass hemispheres, flick standards, Artefacts like
gear masters (involute & profile
Masters), helix & lead master; optical
flats, optical parallels; caliper
checker/Check Masters, Radius
M a s t e r s , R o u n d n e s s M a s t e r,
Reference Master Setting Rods,
Master Glass Scales, Glass hemispheres, flick standards

The Chemical laboratory (NABL

accredited) provided services in the


area of chemical analysis of metals and
alloys, identification of metal coating
and measurement of metal coating
thickness, surface treatment, oil
analysis and corrosion testing of
components using salt spray chamber
(584 Assignments).

d. C a l i b ra t i o n o f i n s t r u m e n t s /
equipment : Limit Gauges (Plain,
Threaded & Taper), Equipments like
extensometers, height gauges, depth
gauges, micrometers etc., master
cylinders, Cylindrical Squares; glass
scales, setting plug/ring gauges,
thread plug gauges, Ring Gauges,
Granite/Steel Squares, Thread
measuring wires, Thread pitch
micrometer, Ball bar.

Annual Maintenance for Pump Test Rig

Facilities of LCA Pumps continued


7. Calibration & Inspection Services
a. Calibration of masters and inspection
of very accurate components in the
area of length, angle, form, surface
finish and gears with traceability to
international standards (358
assignments).
b. Calibration of gauges and masters
carried out in the following major
areas: Gauge blocks of all grades
('K'/'00', '0', '1' and '2'), Angle gauge
blocks, by comparison measurements with uncertainty on par
with National/International
laboratories.

e. O n - s i t e c a l i b r a t i o n o f ( 1 7
assignments):
i.

Coordinate Measuring Machine

ii.

Gauge Measuring centre

iii. Length Measuring Machines


iv.

Profile Projector

v.

Rotary Table

vi. Actuator
vii. CNC Machines
f.

In addition, conventional measuring


aids/ gauges/ instruments like
Vernier and Dial Callipers, Master

165

ANNUAL REPORT 2014-15

g.

h.

Balls, Scales, Test Sieves, Tapes, Spirit


Levels, Electronic Levels, Dial Gauges,
Test Mandrels, Clinometers etc., were
also calibrated.

v Condition Monitoring (Continuing


activity): Condition monitoring
service for 3 industries on annual
contract basis.

Nano metrology services provide


solutions for process optimisation for
machining of ultra precision surfaces.
Measurement of Surface roughness
in the range of sub nanometre levels
using Atomic Force Microscope,
confocal microscope, Ellipsometer
and Optical Profiler for automobile,
bio medical & nuclear applications.
The services were rendered to
various industries & academic
institutions

Noise & vibration analysis (9


assignments).
i.

ii.

Sound Intensity Measurement,


N o i s e S o u rc e R a n k i n g o f
Tractors.

v Ground Vibration Measurement


Special assignments: Services in the
field of ground vibration measurement were rendered for installation of
EDS/ EBSD etc.
8.

Facilities Added / Upgraded

a.

The following facilities were added/


upgraded under the various plan
projects:

Two Roll Mill

Upgrade of 3D CAD software


Solidworks 2013

Work stations

CAE software KISSOFT 5


licenses

iii. Noise and Vibration Measurement, Analysis (order tracking,


FRF Measurement, test track
data collection) and Mitigation
of noise and vibration problem
in tractors.

Transmission Electron
Microscope

iv. Study of bearings problem in


currency note printing machines.

Excimer Laser Micromachining


facility

v.

166

Noise and Vibration Analysis of


planetary gear box of Mixing
Machine.

Dynamic Balancing (Continuing


activity): During the period 3
assignments were completed in the
dynamic balancing of rotors, shafts,
master rotor etc.

Highlights of the activities are as


follows:

4 Channel Oros PC Based


Dynamic Signal Analyser

Attached & Subordinate Offices

Excimer Laser
B.

b.

"Design & Precision Engineering"


with NITK, Surathkal was
launched. 2014 batch has
commenced.

As part of (PGDAMT) program


w i t h K a r u nya U n ive r s i t y,
Coimbatore. Four batches have
completed the program and are
placed in manufacturing
industries. Fifth batch students
are undergoing first semester
curriculum at KU.

15 Scheduled, 8 Exclusive and 6


onsite training programs were
conducted to train 293
participants for over 440 hours

Evening part-time course on


"CNC programming through
Mastercam" were conducted for
working professionals and
students. 12 people were trained
for over 120 hours on Mastercam
software and CNC programming.

7 projects guided by CMTI


scientists are offered for M.Tech
students from engineering
colleges across India.

Advanced Technology Equipment

U p g ra d a t i o n o f F l a t n e s s
Interferometer

Up gradation of Gear Testing


Machine (PFSU-640),

Standard styli for UPCMM

9.

Improvement of Infra- structure

i.

The asset register creation is


completed using AMS.

ii.

Full fledged Biometric Access Control


System introduced.

iii.

Renovation of Canteen building has


been completed.

10.

Technology Transfer/ HRD

A two year M.Tech programme on


a.

"Additive Manufacturing" with


NIT, Warangal was launched in
August 2014.

11.

Publications & Papers

a)

Papers published:

i.

"Evaluation of Tool life and Cutting forces


in Cryogenic Machining of Hardened
Steel", at the International Conference
on Advances in Manufacturing and
Materials Engineering (ICAMME-2014),
NITK.

167

ANNUAL REPORT 2014-15

ii.

"Cryogenic Machining of SS304 Steel", at


the National Conference on All India
Manufacturing Technology Design and
Research (AIMTDR-2014), IIT.

iii. "Laser-based metal deposition of


inconel-625 and its characterization" in
Rapid Prototyping Journal.
Paper titled "Microstructure and
mechanical characterization of laser
sintered inconel-625 superalloy",
International Conference on Advances
in Manufacturing and Materials
Engineering (ICAMME-2014), 2014.
iv.

v.

vi.

"Processing and characterization of


carbon nanotubes decorated with pure
electroless nickel and their magnetic
properties", International Conference
on Advances in Manufacturing and
Materials Engineering (ICAMME2014).
"Evaluation of Spiral Groove Depth on a
Spherical Surface by using Curve Fitting
Algorithm", in International Colloquium
on Materials Manufacturing and
Metrology (ICMMM 2014).
"Development of hard DLC coatings at
Room Temperature using RF PECVD
process", in International Colloquium
on Materials Manufacturing and
Metrology (ICMMM 2014).

vii. "A comparative study on road traffic and


metro train induced ground vibration at
CMTI for establishment of Nano
Manufacturing Technology Facilities" in

168

Applied Mechanics and Materials Vols.


592-594 (2014) pp 1991-1995
viii. "Classification of Road and Metro Train
Induced Ground Vibration using Naive
Bayes Algorithm" at International
Colloquium on Materials,
Manufacturing and Metrology from
August 2014.
ix. "Real-time thermal error compensation
module for intelligent Ultra Precision
Turning Machine (iUPTM)", published in
Elsevier's procedia of Material science,
ICMPC-2014 conference.
x.

"Real-time positioning error


compensation for a turning machine
using Neural Networks" has in Elsevier's
procedia of Material science, ICAMME2014 conference

xi.

"Characterization Method for Micro


Beams Based Pressure Transducers by
Nanoindentation Technique" in ICMMM
2014 conference August 2014

xii. The monthly journal 'Manufacturing


Technology Today' is being brought out
regularly.
b) Papers accepted for presentation
at the AIMTDR
i.

"Automated Vision Inspection System for


a Plastic Injection Mould Component"
accepted for presentation at the 25th All
India Manufacturing Technology Design
and Research (AIMTDR) conference to
be held in December 2014.

Attached & Subordinate Offices

ii.

"Investigation and Analysis of Chatter


Vibration in Centerless Bar turning
Machine" by full paper accepted at
AIMTDR 2014

Director and Director General, ADA


and his team on 28th August 2014.
f)

iii. "Design and Analysis of a SingleNotch


Parallelogram Flexure Mechanism Based
th
X-Y Nanopositioning Stage", 5
international and 26 t h AIMTDR
Conference, Dec 2014.

Visit of U K delegates to CMTI


Bangalore on 10th September 2014 to
explore collaborative avenues.

c) Patent
Patent on System and Method for
Thermal Error Compensation in
Machines using Vision Measurement is
filed.
12.

Visit of Dignitaries & Delegations

Several International and Indian dignitaries


from Industries, Government and Research
Organisations visited CMTI for Technical
Discussions / Business proposals and
familiarization with the facilities and
activities of the Institute.
a)

Visit of Shri Amitabh Kant, IAS,


Secretary, Department of Industrial
Policy & Promotion on 11th June
2014.

b)

Visit of Shri Dr. K. Radhakrishnan,


th
Chairman- ISRO, on 11 June 2014.

c)

Visit of Shri Dr. M.Y.S Prasad, Director,


th
SDSC-SHAR on 11 June 2014.

d)

Visit of Shri Madhav Lal Secretary,


th
MSME & his team on 27 Sept 2014

e)

Visit of Shri. P S Subramanyam,


Distinguished Scientist, Programme

U. K Delegates at CMTI
13.

Technical Lecture Programmes /


Seminars under NMTC and AEAMT

Under the aegis of Nano Manufacturing


Technology Centre (NMTC) and Academy of
Excellence for Advanced Manufacturing
Technology (AEAMT) the following
Technical presentations were arranged.

One day seminar on Seminar on


"Single Point Diamond Turning
(SPDT)" was held on 30th May 2014 at
C M T I . T h e m a i n fo c u s b e i n g
development of SPDT technology.
About 60 participants from Strategic
sector, R&SD organization, Industry
and Academia participated.

One day workshop on Nano


Metrology & Materials
characterization was organised at

169

ANNUAL REPORT 2014-15

CMTI on 25th June 2014 jointly with


'Cascade Mictrotech, inc. USA', and
'Bruket' (ICON Analytical Equipment
Pvt . Ltd., Mumbai) to create
awareness and provide a
comprehensive and condensed
overview of techniques of Nano
metrology and major analytical
techniques for Materials
characterizations with emphasis on
practical applications.

CMTI has established E-Foundry


Centre equipped with 10 licenses of
Auto CAST-X1 software Two days
Hands on Workshop on "Casting
Design & Simulation" was conducted
th
th
on 26 & 27 June 2014 for 20
participants from Industries &
Academia.
ISSS-2014 Pre-Conference Workshop
on "Nano Metrology " and "Micro &
Nano Fabrication" was organized at
CMTI Bangalore, on 8th July 2014.
Training Programme on "Rapid
Prototyping & Rapid Tooling" was
conducted at CMTI on 9th to 11th June
2014

World Metrology Day

170

World Metrology Day Celebrated on


th
20 May 2014 at CMTI, Bangalore, in
association with Metrology Society of
India Southern Region (MSI-SR),
Bangalore.

14.

HR Initiatives for CMTI Scientists

a)

Participation in Conferences,
Seminars: CMTI scientists were
deputed for various conferences and
seminars covering "Basic operation
and maintenance of Transmission
Electron Microscope", Ellipsometry,
Chemisorp-tion and Physisorption,
LABVIEW Core-1 and Core-2 etc.

b)

Training on Advanced technology


equipment

2 Scientists underwent training on


"Excimer laser micro machining
system" at M/s.Optech, ZAE Le
Crachet, Avenue des Nouvelles
Technologies, Frameries, Belgium
15.

Memorandum of Understanding /
Non Disclosure Agreement

a)

CMTI has signed a MoU with ADA,


th
Bangalore on 28 August 2014 at
CMTI for the development of Aircraft
Products, Processes, test facilities and
advanced manufacturing technologies for LCA, AMCA & GHATAK
programs.

b)

CMTI has signed a Renewal of


Memorandum of Understanding
th
(MoU) with Karunya University on 7
May, 2014 for organizing conferences,

Attached & Subordinate Offices

Exchange of MoU between ADA and CMTI

Seminars, and Short Term Training


programs etc
c)

CMTI and Atria Institute of


Technology, AIT, Bangalore have
entered into an MoU on 30th April
2014 at CMTI for offering co-branded
programs in Design, Manufacturing,
Mechatronics and other Manufacturing Technology areas and faculty
development programs

16.

Events

a)

"VM-4.5t Vertical Planetary Mixer",


the largest capacity mixer
indigenously designed and
developed for the first time in the
country by CMTI for 'Satish Dhawan
Space Centre(SDSC) SHAR', ISRO,
Sriharikota, Andhra Pradesh, was
handed over by Shri Amitabh Kant,
IAS, Secretary, Department of
Industrial Policy & Promotion,
ministry of Commerce & Industry,
Govt. of India to Dr. K Radhakrishnan,
Secretary, Department of space, Govt.
of India, chairman, ISRO on 11th June
2014 held at CMTI.

Shri Amitabh Kant, Secretary, DIPP MCI GOI, handing


over a model 4.5T Vertical Planetary Mixer to Dr.K
Radhakrishnanan, Chairman ISRO & Secretary, Dept
of. Space,GOI

b)

A Te c h n i c a l p r e s e n t a t i o n o n
Advanced Characterization using
TEM (TITAN), by Dr. Karthick
th
Balasubramanian on 09 October
2014.

c)

Swachh Bharat Mission was launched


by Prime Minister Narendra Modi on
Oct. 2 this year on the occasion of
Mahatma Gandhi's birth anniversary.
Keeping in view the nationwide
'Swachh Bharat Abhiyaan', CMTI

Cleanliness campaign across the


Institute premises

171

ANNUAL REPORT 2014-15

joined the cleanliness campaign


across the Institute premises. Almost
entire staff & employees, including
Director, Joint Directors, Heads of
Department participated in the
'Swachh Bharat Abhiyan'. They also
took an oath for a cleaner nation.

The salient achievements of the institute


under the above projects are as under:

Mechanical pulp was produced from


Rice straw collected from two
different regions of the country.
Chemical pulping of Melia-Dubia
hardwood of different ages was also
carried out. The comparative
evaluation of strength properties of
the pulps so produced was
performed.

Polysaccharide based additives were


used to produce pulps of high quality
from low grade OCC.

Mill trials on enzymatic bio- refining


of cotton for manufacture of currency
paper successfully completed at
Security Paper Mill, Hoshangabad.

Mill scale studies carried out on


possible remedial measures for soda
loss in agro based pulp and paper mill
and desilication of wheat straw black
liquor to improve efficiency of
chemical recovery system.

Studies on Ultra filtration based


treatment of effluent from wood and
waste paper based mills were
completed.

A trainee from Makere University


Uganda, East Africa undertook a
three month training at CPPRI in the
various areas of pulp and paper
making under prestigious C.V. Raman
International Fellowship for African
researchers.

Central Pulp & Paper Research Institute,


Saharanpur
Central Pulp & Paper Research Institute
(CPPRI), Saharanpur is a premier research
institute dedicated to the service of pulp,
paper and allied industries. It is an
autonomous organization under administrative control of Ministry of Commerce and
Industry, Government of India.
The management of the Institute rests with
the Council of Association, which has
m e m b e r s f ro m t h e I n d u s t r y, R & D
Organizations and the Academia. The
activities funded by the Plan Funds are
monitored by the Research Advisory
Committee. The activities utilizing the Cess
funds are monitored by the Cess Committee.
R&D activities of the Institute are designed
to continuously support the growth of the
Indian Pulp & Paper Industry in terms of
sustainability and competitiveness.
Accordingly, the R&D schemes of XII Five
Year Plan Projects are focused on the
following areas:

Raw material & Product Development

Energy Conservation & Environmental Management

Infrastructure Development and


Capacity Building Activities

172

Attached & Subordinate Offices

5 trainee from various universities


and organisation undertook short
term training ( one week one
month) in various areas of paper
making .

Digitization of X Plan Project Reports


(13), research/ technical papers (13),
CPPRI News Bulletin (13) for inclusion in CPPRI digital library was
accomplished.

Technical Services
Technical Services were rendered to around
180 clients during April - November 2014 .

the Institute were 1645.10 Lacs and total


expenditure was 1148.28 Lacs (i.e. revenue
expenditure 1032.74 Lacs plus capital
expenditure 115.54 Lacs).
Internal Revenue 2013 -14
Internal Revenue worth 231 Lacs was
generated by CPPRI during the financial year
2013-14.
Gender Budgeting
Grants-in aid are released to CPPRI under
Plan Head to carry out R&D activities in the
field of Pulp and Paper and such there is no
Gender Based Budgeting involved.

Receipts And Expenditure 2013-14


During the year 2013-14, total receipts of
(a)

Plan

S.
No

Title of the Project

1.

Raw material and


product development
Energy conservation &
environmental
management
Infrastructure &
developmental activities
Grand total

Expenses up to
November 2014

25

Anticipated
Expenses
( December 2014 to
March 2015)
` Lacs
49

39

65

104

88

234

322

152

348

500

` Lacs

2.

3.

(b)

Total

` Lacs

74

Non-Plan

Details of
expenses

Expenses upto
November 2014
` Lacs

Non Plan
Expenses*

525

Anticipated Expenses
( December 2014 to March
2015)
` Lacs
448

Total expenses

` Lacs

973

*Base level support through Development Council for Pulp, Paper & Allied Industries 523 Lacs as B.E.

173

ANNUAL REPORT 2014-15

(c)

Earnings

Earnings up to
November 2014

Estimated Earnings
( December 2014 to March 2015)

Total Earnings

` Lacs

` Lacs

` Lacs

133

117

250

Indian Rubber Manufacturers Research


Association (IRMRA), Thane
Overview
The Indian Rubber Manufacturers Research
Association (IRMRA), registered under the
Societies Registration Act 1860, was
established in 1959 as a scientific and
industrial research organisation for
promoting basic and applied research and
technological development activities in the
field of rubber and allied materials. IRMRAs
progress is monitored and governed by a
Governing Council consisting of members
from Central and State Governments,
Rubber Industries, and premier Research
Institutes, and is functioning under the
administrative control of Department of
Industrial Policy and Promoton, Ministry of
Commerce & Industry, Govt. of India. Over
the last 55 years, IRMRA has expanded and
diversified its activities in both tyre and nontyre sectors and has become a unique R&D
Centre of Excellence at par with any
internationally renowned Institute of repute
in the World.

development so that the Indian industries


can compete effectively in the global
business.
Major activities:
(A)

IRMRA has carried out fundamental


and applied research in the areas of
synthesis and characterization of
nano fillers, composites, and rubber
chemicals, apart from design and
development of many critical rubber
components to public sectors like
defence establishments, railways,
Bhabha Atomic Research Centre,
Indian Space Research Organisation,
Indian Oil Corporation etc. The
engineers of IRMRA designed,
developed, tested and validated many
critical rubber components such as
segmental bearings for propeller
shaft, High performance seals for
doors and hatches, bush pad and
shock mounts, expansion bellows for
suction and discharge compensators,
rubber diaphragms etc., for Indian
Naval Ships (INS).

Aims & Objectives:


IRMRA is engaged in serving rubber and
allied industries in research, technology
development, testing and certification,
industrial consultancy and manpower

174

Research and Development :-

(B)

Non Tyre Testing and Certification


Division :-

The material testing laboratory of IRMRA

Attached & Subordinate Offices

has developed new test methods and


test procedures for assessment of
hazardous nature of rubber
processing oils, and rubber products.
This division is supporting the nontyre rubber product manufacturing
industries by periodically carrying
out testing and certification of
products as required by customers.
T h e i n t e r - l a b o ra t o r y t e s t i n g
programme conducted with
international laboratories from
Germany, Thailand and Japan proved
that test results of IRMRA are highly
repeatable and reliable as good as
test done by any international
laboratory. Various Industries,
defence, Nuclear sectors and
Automotive sectors are highly
benefitted through this division to
ensure the quality of rubber
products.
(C)

(OEM) for testing and certification of


tyres for rolling resistance and other
safety parameters. Recently, this
division developed expertise for
quality assessment of fighter aircraft
tyres and forensic analysis of failed
aircraft tyres for the benefit of Indian
Airforce.
(D)

The non-tyre product manufacturing


industries mainly consists of more
than 5500 Micro, Small and Medium
Enterprises (MSME) producing
around 35000 rubber components. In
order to support this MSME sector in
technological development, testing
and certification, material and product
development, trouble shooting,
quality improvements etc., a separate
division iCON for doing consultancy
work has been created and so far this
division has completed more than 70
small projects for the benefit of the
MSMEs. A Quality Cluster
programme is initiated with the
support of ministry of MSME for
inculcating the quality culture in the
rubber sector.

Tyre Testing and Certification


Division :The Centre of Excellence for tyre
testing and certification has been
regularly testing and issuing the
certificates to tyre industries for
getting ISI marking license as
stipulated in Quality Order issued by
DIPP, Govt. of India. During the
current year it has tested more than
338 Nos. of tyres received from
national and international tyre
manufacturers. Further, this division
has been working with automotive
Original Equipment Manufacturers

Industrial Consultancy (iCON) :-

(E)

Training, Seminars, Workshops :IRMRA conducts training, Seminars


and Workshops on rubber technology,
Laboratory Management Systems, and
Soft Skill Development for the benefit
of engineers and technicians working
in rubber and allied industries. The
programmes are conducted in our

175

ANNUAL REPORT 2014-15

training centre and the participants


are accommodated in the residential
facility created under 11th Five Year
Plan. Further such programmes are
conducted at the customers places as
per their requirement. Through this
Industrial Consultancy Division
IRMRA is promoting Make in
India concept and support MSME
sectors.
During the current year 10 such
programmes have been conducted
benefiting around 250 participants.
In order to impart skill under Rubber
Skill Development programme,
IRMRA, entered into an MOU with the
training institute LabourNet and
planning to conduct more
programmes in the coming years for
the benefit of unemployed youths.
Also registered with RSDC for
conducting training programmes as
per NOS-National occupational
standards designed by RSDC and
participated in India Rubber ExpoIRE- 2015 to promote such RSDC
approved training activities and other
R & D testing activities.
(F)

Growth proposal under 12th Five


Year Plan :Based on the customers feedback, it
has been decided by IRMRA to create
more branches across the country and
accordingly it is proposed to establish
4 regional centre under 12th Five Year
Plan.

176

The proposed centres are :


i.

I n d i a n Ru b b e r M a n u fa c t u re r s
Research Association (IRMRA),
Chennai

ii.

I n d i a n Ru b b e r M a n u fa c t u re r s
Research Association (IRMRA),
Kolkata

iii.

I n d i a n Ru b b e r M a n u fa c t u re r s
Research Association (IRMRA), Noida

iv.

I n d i a n Ru b b e r M a n u fa c t u re r s
Research Association (IRMRA),
Ahmedabad

A Memorandum of Understanding (MoU)


was signed with South Asia Polymers and
Rubber Park (SARPOL) for establishing a
common testing facility, design and
development workshop, and a training
centre. But due to some administrative
problems, the MoU has to be re-modified and
same is in process.
In order to serve the tyre industries located
in the southern part of India, proposal is
under active consideration for establishing a
tyre testing and R&D centre in Chennai at salt
land in Kelambakkam.
National Council for Cement and Building
Materials
National Council for Cement and Building
Materials (NCCBM) is a cooperative research
organization registered as a society under
the Societies Registration Act, 1860. The
Council provides scientific, technological
and industrial services support to the
cement, related building materials and

Attached & Subordinate Offices

construction industries and carries on its


activities through its units located at
Ballabgarh, Hyderabad and Ahmedabad.

dispersion of nanoparticles in the


cement blends and on use of
nanoparticles in concrete mixes are
being taken up. Blends of OPC with
carbon nano tubes (CNTs) are also
under study.

NCBs activities are channelised through the


following six Programme Centres:

Cement Research and Independent


Testing

Mining, Environment, Plant Engineering and Operation

Construction Development and


Research

Industrial Information Services

Continuing Education Services

Quality Management, Standards and


Calibration Services

Some of the major activities during the year


2014-15 are as under:
Cement Research and Independent Testing

Investigations on Cement containing


nano particles and cement based
nano-composites are continuing.
Blends of OPC with 3 to 5 percent of
commercially available nanoparticles
such as nanosilica, nano-Fe2O3 and
nano-TiO2 have been prepared and
studied for water requirement and
physical performance such as setting
time and compressive strength
developments at different ages. 10 to
30% improvement could be obtained
in the compressive strength, with
addition of 5% nanosilica.
Investigations on improving the

Investigation on development of
geopolymeric cements including
composition and properties of
geopolymeric cements based on alkali
activation of low lime coarser fly ash is
in progress. The alkali treated fly ash
samples were subjected to initial
thermal curing at two different
temperatures up to 90oC for varying
retention periods. Fourier transform
infrared spectroscopy (FTIR) and
Scanning electron microcopy (SEM)
indicated the formation of geopolymers as shown below. The initial
temperature conditions were observed to be significant in development of
properties of geopolymeric cement.
Accelerated initial thermal curing
showed development of cracks in later

%
T
R
A
N
S
M
I
T
T
A
N
C
E
FT-IR Spectra of fly ash (FA) and alkali treated fly ash cured
at 900C for 90 min (Q1), 180 min (Q3) and 24 hours (Q24).

177

ANNUAL REPORT 2014-15

age hardening of geopolymeric


c e m e n t re s u l t i n g i n s t re n g t h
retrogression. In fact the slow process
of geopolymeri-zation by initial curing
at optimum temperature showed
better product formation without any
retrogression in strength up to a
period of 75 days studied. The
hardened samples showed
dimensional stability.

28 days and were improved at 90 &


120 days as compared to control OPC.
The strength development was
generally higher with higher clinker
content and was found to improve
with increase in slag content. Another
set of experiment using raw materials
such as clinker, coarser fly ash, low
grade limestone and gypsum samples
obtained from different source to
substantiate the study is in progress.
Studies has been carried out on
optimization of raw mix designs for
manufacture of 53 grade OPC for two
upcoming green field projects.
Similarly optimization studies of raw
mix design was carried out for
improving the quality of clinker of a
major cement plant. Based on analysis
of plant samples, raw mixes were
prepared at two different fineness
levels and burnability studies carried
o u t a s s h o w n b e l o w. T h e
microstructure of the clinker from

Investigations on development of
composite cement containing up to
40 to 60 percent clinker 35 to 55
percent combined mixes of fly ash
and granulated blast furnace slag
(GBFS) and gypsum are continued.
These samples have been evaluated
for their physical properties and
performance characteristics as per
test procedures specified in relevant
Indian Standard. At above clinker
replacement level, the values of
compressive strength of composite
cements were marginally lower up to

FREE LIME CONTENT (%)


cccc

SEM image of alkali treated fly ash specimen cured


at 60 OC for 7 days

1.5

RM-1-A
1

RM-2-A
RM-1-B
RM-2-B

0.5

0
1350

1400

1450

CLINKERISATION TEMPERATURE (oC)

Burnability Study Curves at Different Fineness Levels

178

Attached & Subordinate Offices

used in typical raw mix designed in


the laboratory for meeting the
requirement of silica content to
prepare OPC 53 grade cement. The
mineralogical characteristics of
laboratory prepared clinker and
microscopic features of sand are
shown in fig given below:

Optical Micrograph of Clinker from optimized Raw Mix

optimized mix indicated well burnt


clinker with appropriate mineral
phase formations. The properties of
cement prepared was found to meet
all the requirement of 53 grade OPC
as per Indian Standard Specification
IS:12269-2013.

A study has been carried out on


evaluation of a byproduct waste
generated during the process of
b e n e f i c i a t i o n o f c l ay f ro m a
manufacture site for its utilization in
place of natural sand in construction.
The study showed that sand samples
before and after washing were found
to show properties similar to the
natural sand conforming to the limits
as per IS:383-1970. It was found that
upto 50 % of it could be used along
with natural sand in construction.
The study was also carried out on its
suitability as raw mix component in
the manufacture of OPC. It is seen that
upto 6 percent of this sand could be

XRD Pattern of Bulk Clinker produced from


optimized Raw Mix

Optical microgrograph of Sand Sample

179

ANNUAL REPORT 2014-15

A study has been carried out on


finding out the cause of lump
formation on storage of cement bags.
It was found that free lime and
anhydrite phases present in the
cement were found to absorb CO2
and moisture from air causing
formation of soft lumps on storage of
cement in bags.

Investigations carried out on the


suitability of marble dust as mineral
additive in cement showed addition
of 5% marble dust containing as low
as 54% CaCO3 as mineral additive in
the manufacture of ordinary Portland
cement (OPC) has shown physical
performance comparable to OPC
containing 5% limestone with 82%
CaCO3 (i.e. > 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 seasons 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

SiO2 (%)

21

Fe 2O3 (%)

21

Al2O3 (%)

21

CaO (%)

21

MgO (%)

21

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

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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. NIDs 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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ANNUAL REPORT 2014-15

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:

188

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
teachers 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 Indias 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 NIDs
potential utilization of the proposed
Railway Design Centre at NID.

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ANNUAL REPORT 2014-15

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 2223, 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

190

traditions with the contemporary


minds that appreciate the traditional
values. The workshop was conducted
from June 30July 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 Villagmez, Ambassador of
Ecuador and Mr. Patricio Garcs,
Deputy Head of Mission, Embassy of
Ecuador.

Dr. Mirjana Lozanovska, Associate


Head of School International, School

Significant Events

Prof. Dr. Dr. h.c. Jrgen 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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ANNUAL REPORT 2014-15

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.

192

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, Honble 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

NPCS 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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ANNUAL REPORT 2014-15

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

194

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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ANNUAL REPORT 2014-15

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.

196

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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ANNUAL REPORT 2014-15

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)

198

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 Indias 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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ANNUAL REPORT 2014-15

Multilateral Recognition Arrangements


(MLA)/Mutual Recognition Arrangements
(MRA) which ensure acceptance of each
others 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 NABCBs accreditation

200

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 QCIs
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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ANNUAL REPORT 2014-15

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

7.

Allopathic Clinics

17

8.

Ayush Hospitals

24

10

9.

Wellness Centres

17

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 Indias
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 countrys 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 Japans
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 Governments 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.

1432

11

2.

1297

16

3.

1488

28

13

4.

C#

1001

14

# 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 Honble 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 publics convenience, Departments
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 Governments 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.

223

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 Ministrys 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 stakeholders perceptions and
assessment of the quality of services.
Helpline
For any help please visit Departments
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 Departments 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
Departments 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: singh.shailen@nic.in)
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
singh.shailen@nic.in

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

229

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)

13

31

199

93287

343

162574

260

91859

175

59392

128

17631

121

21510

1303

848

1027

41

353

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

10

22

114 102266

78

79575

57

34143

37

162584
683

Chandigarh

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

26

14

332

68

Delhi

21

289

19

130

12

68

83

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

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

13

68

64

78

10

970

14

1733

2574

1807

159

58

27

15

33

Gujarat

Kerala
Lakshadweep

Manipur
Meghalaya
Mizoram
Nagaland

38

26

Orissa

99

167932

179

315772

117

321032

57

63604

40

98723

27

28219

Puducherry

14

712

14

282

44

146

186

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

150

13

795

15

727

195

12

528

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

83

18

71

129

60

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

410

1199

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

1870

102

15

26

9990

140

94

7614

34

1625

348

778500

172

14696
14421
0

122

82682

948

15

360

49

10

1049

26

72

12290

97

9695

70

24591

58

7602

56

6109

5805

78

3372

84

4780

51

2232

57

5646

40

3472

174

536

1035

46

226

21

518

18

655

27

3136

654

727

673

112

44

779

265

634

601

12976

206

11516

186

15881

163

7976

130

4087

94

3881

1583

12

181

132

11

123

12

949

10

1212

12

195

74

710

131

24

50

21

95

32

14

432

222

174

140

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

106

12

161

10

474

26

550

136

32 Glue and Gelatin

27

19

16

55

919

33 Glass

27

558

21

1670

26

5610

11

211

10

579

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

96

122

488

469

1182

760

37 Defence Industries

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)

54

1877

49

1011

60

2266

58

7150

41

5021

29

2804

33

22

Assam

10

225

13

63

14

290

16

1012

12

470

Bihar

471

869

420

Chandigarh

Chhattisgarh

756

10

749

31

Dadra & Nagar


Haveli

93

62

294

42

69

96

Daman & Diu

25

13

79

41

Delhi

Goa

51

21

228

37

Gujarat

76

2195

56

4565

50

2148 153

49616

83 15478

78

40954

Haryana
Himachal
Pradesh
Jammu
&Kashmir

21

163

13

282

394

18

1289

15

889

10

977

65

71

42

609

27

112

645

69

Jharkhand

424

406

1002

Karnataka

31

524

19

1771

22

890

26

1672

24

4912

17

2361

Kerala

37

Lakshadweep
Madhya
Pradesh

30

904

12

11959

11

268

14

2157

1519

13

2625

Maharashtra

289

3499

87

1291

120

4671

87

7509

96 30266

48

6024

Manipur

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

51

401

1100

47

Mizoram

28

Nagaland

Orissa

14

80

163

105

652

7521

Puducherry

28

Punjab

16

145

69

1042

38

162

Rajasthan

10

149

27

1592

14

158

18

2017

30

3173

13

1544

142

370

504

Tamil Nadu

39

1267

27

1374

28

235

10

524

12

2292

2500

Telengana

28

22

37

1174

26

173

29

1261

35

3365

1137

181

17

Uttar Pradesh

18

733

24

244

20

82

23

1450

22

4111

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

Andaman & Nicobar Islands

Andhra Pradesh

Arunachal Pradesh

30

360

27

3403

394

60

4157

Assam

272

3818

169

21152

102

6194

543

31164

Bihar

108

9107

166

139676

64

5146

338

153929

Chandigarh

235

83

22

13

340

Chhattisgarh

1219

234796

1179

906386

138

256149

2536

1397331

Dadra & N Haveli

603

11999

263

21566

79

5960

945

39525

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

31

136

31

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

19

Madhya Pradesh

654

42993

1074

594378

308

110221

2036

747592

20

Maharashtra

3596

130517

3586

537258

1128

151945

8310

819720

21

Manipur

20

13

210

12

243

22

Meghalaya

140

3045

62

10768

2024

211

15837

23

Mizoram

27

48

75

24

Nagaland

16037

119

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

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

29

13

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

Pharma
Hyderabad

Cluster, Telangana 04.11.2004

66.16

49.62

48.13

62.08

Complete

10th Plan

Chemical
Ahmedabad

Cluster,

Gujarat 14.03.2005

71.35

41.39

40.14

69.41

Complete

10th Plan

Chemical
Ankleshwar

Cluster,

Gujarat 02.07.2004

152.83

50.00

49.47

161.40

Complete

10th Plan

Chemical
Vapi

Cluster,

Gujarat 25.03.2004

54.31

40.49

39.27

71.25

Complete

10th Plan

Foundry
Belgam

Cluster, Karnataka 28.10.2004

24.78

18.58

18.02

24.38

Complete

10th Plan

Machine
Tools Karnataka 28.10.2004
Cluster, Bangalore

135.50

49.12

47.64

149.09

Complete

10th Plan

Textile
Ichalkaranji

Cluster, Maharashtra 14.03.2005

65.07

32.70

31.72

67.00

Complete

10th Plan

Auto
Components Maharashtra 06.09.2004
Cluster, Pune

59.99

44.99

44.54

63.05

Complete

10th Plan

Auto
Components
Cluster, Pithampur

MP

28.10.2004

62.97

47.23

45.81

67.64

Complete

10th Plan

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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