AnnualReport Eng 2009-10

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					          Annual Report

                                    lR;eso t;rs

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

                   lR;eso t;rs

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

1.    Role and Functions of the Department of Industrial Policy & Promotion        1

2.    2009-10 : Highlights and Review                                              5

3.    Evolution and development of Industrial Policy                              16

4.    Secretariat for Industrial Assistance                                       18

5.    Foreign Direct Investment                                                   32

6.    Industrial Infrastructure and Development Schemes                           38

7.    Performance Of Select Industries                                            44

8.    Attached and Subordinate Offices and Other Organisations                    71

9.    Training, Research And Design Institutes                                    87

10.   United Nations Industrial Development Organisation (UnIdO)                 108

11.   Representation of Scheduled Castes/Scheduled Tribes/OBCs/
      Ex-servicemen and Physically Disabled persons in Services.                 112

12.   Women Welfare Activities                                                   113

13.   Use of Official Language                                                   114

14.   Vigilance Activities                                                       117

15.   Gender Budgeting                                                           118

16.   Citizens’ Charter                                                          119

      AnnEXURE                                                                   123

      AppeNDIX I-XII                                                          124-136
    Department of Industrial Policy & Promotion                                            CHAPTER 1

Role and Functions of the Department of
Industrial Policy & Promotion

The Department of Industrial Policy & Promotion,                  bilateral and multi lateral arrangements;
established in 1995, was reconstituted in the year 2000 by
                                                              l   Association as nodal department for investment
merger with the Department of Industrial Development.
                                                                  related issues in Bilateral/Regional Economic
This Department is responsible for the formulation and
                                                                  Cooperation Agreements;
administration of overall Industrial Policy.
                                                              l   Formulation of policies relating to Intellectual
With the progressive liberalization of the Indian economy,
                                                                  Property Rights in the fields of Patents, Trademarks,
initiated in July 1991, there has been a consistent
                                                                  Industrial Designs and Geographical Indications of
expansion in the role and functions of this Department.
                                                                  Goods and administration of regulations and rules
From regulation and administration of the industrial
                                                                  made there under;
sector, the role of this Department has been transformed
into facilitation of technology and investment flows and      l   Administration of Industries (Development &
promotion of industrial development in the liberalized            Regulation) Act, 1951;
                                                              l   Improvement of business regulatory environment
The role and functions of the Department of Industrial            in Central and State Governments;
Policy and Promotion primarily include: -
                                                              l   Development of Industrial infrastructure through
l      Formulation and implementation of industrial               focused Schemes;
       policy and strategies for industrial development
       in conformity with the developmental needs and         l   development of Industrial Corridors especially
       national objectives in order to make the Indian            Delhi-Mumbai Industrial Corridor;
       industry internationally competitive;
                                                              l   Promotion of industrial development in industrially
l      Monitoring and stimulation of industrial growth, in        backward and remote, hilly and inaccessible areas
       general, and performance of industries specifically        of the special category States of North Eastern
       assigned to it, in particular, and guidance in             Region (including Sikkim), Jammu & Kashmir,
       the creation of an enabling environment,                   Himachal Pradesh and Uttarakhand through special
       infrastructure, technology transfer / collaborations       incentives packages;
       on all industrial and technical matters.
                                                              l   Promotion of international cooperation through
l     Approval of foreign technology collaborations               productivity, quality and technical cooperation;
      at enterprise level and formulation of policy
      parameters for the same for enhancing productivity      l   Compilation of data/statistics on Foreign Direct
      with reference to international benchmarking.               Investment & analysis thereof ; and

l     Formulation of Foreign Direct Investment (FDI)          l   Compilation of monthly industrial production
      Policy and amendments thereto;                              statistics for use in the construction of Index of
                                                                  Industrial Production (IIP).
l     Promotion and facilitation of Foreign Direct
      Investment and non resident investment;                 l   Promotion of the Leather Sector due to its strong
l     Promotion of International Cooperation for                  linkage with the rural economy, employment
      investment and industrial partnerships through              generation and high impact on social equity.

                                                                    Annual Report 2009-10

    The Department of Industrial Policy & Promotion                   light engineering industries etc. Appropriate policy
    administers the following Central Legislations through            interventions are made, as required by the emerging
    its attached/subordinate offices and statutory                    concerns, from time to time.
                                                                      Foreign Direct Investment (FDI)
    a.     Central legislations relating to Intellectual Property
           Rights (IPRs), namely, the Patents Act, 1970, the          The Department has been assigned the function of
           Trade Marks Act, 1999, the Geographical Indications        Foreign Direct and Non-Resident investments in the
           of Goods (Registration and Protection) Act, 1999           industries and service projects.
           and the Designs Act, 2000 and their associated
           rules are administered through the Office of the           The Department is responsible for formulation of FDI
           Controller General of Patents, designs and Trade           policy, and facilitation and promotion of the FDI inflow into
           Marks (CGPDTM). The Intellectual Property                  the country. The Department has the nodal responsibility
           Appellate Board provided under the Trade Marks             for compilation and management of data/statistics on FDI
           Act, 1999 has been set up in Chennai.                      and analysis thereof.

    b.     The Explosives Act, 1884 is administered through           In tune with its role as a facilitator of the industrial
           the Petroleum & Explosives Safety Organization.            development and investment, this Department plays an
                                                                      active role in investment promotion through dissemination
    c.     The Salt Cess Act, 1953 is administered through            of information on investment climate and opportunities
           the Office of the Salt Commissioner.                       in India and by advising prospective investors about
                                                                      investment policies and procedures and opportunities.
    d.     The Boilers Act, 1923 is administered through
                                                                      Information about policy and procedures is available at
           the Indian Boiler Regulations, 1950 framed by
                                                                      the website ( of the Department.
           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          International Cooperation
           Governments since the subject “Boiler” is listed in        International Cooperation for industrial partnerships
           the concurrent list of the Constitution of India.
                                                                      is achieved through both bilateral and multilateral
                                                                      arrangements. At bilateral level, in addition to being
    Industrial Policy                                                 nodal Department for Indo-Swedish, Indo-Libyan,
    The Department is responsible for formulation and                 Indo-Hungarian, Indo-Poland and Indo–Belarus Joint
    implementation of promotional and developmental                   Commissions, the Department is represented on joint
    measures for growth of the industrial sector, keeping             commissions and joint working groups for promoting
    in view the national priorities and socio-economic                industrial, technical and scientific cooperation with select
    objectives. While individual administrative Ministries            countries, serviced by other Ministries/Departments.
    look after the production, distribution, development and          Similar initiatives are also in place with the European
    planning aspects of specific industries allocated to them,        Union and the ASEAN. The Department has set up CEOs’
    this Department is responsible for the overall Industrial         Forums/Business Leaders’ Forum with Japan, France
    Policy.                                                           and Russia for active business to business cooperation
                                                                      and to develop a road map for partnership and industrial
    This Department monitors industrial growth and
    production in general and in selected industrial sectors
    such as cement, paper and pulp, leather, tyre and rubber,         department of Industrial Policy and Promotion also
    light electrical industries, consumer goods, consumer             coordinates with apex industry associations such as
    durables, light machine tools, light industrial machinery,        the FICCI, the CII and the ASSOCHAM in their activities

 Department of Industrial Policy & Promotion

relating to promotion of industrial cooperation both         Government of India (Allocation of Business Rules, 1961)
through bilateral and multilateral initiatives and to        dated 1st September, 2005
stimulate inflow of foreign direct investment into India
besides participating in the Joint Business Councils and     Productivity and Quality
other interactive sessions organized by them.
                                                             This Department is the nodal organization for the
This Department also encourages Indian Companies in          promotion of productivity in the industrial sector. It
acquisition of technological capability in various sectors   undertakes programmes of technical cooperation with
of the industry through a liberal foreign technology         the Asian Productivity Organization (APO), Tokyo by
collaboration regime. Foreign technology induction           sourcing experts to advise on productivity related projects
is facilitated both through FDI and through Foreign          and by deputing officials from the private and public
Technology Collaboration (FTC) agreements.                   sector to programmes conducted by the APO in industry,
                                                             agriculture and service related sectors. It also promotes
The Department is associated as a nodal department for
                                                             the adoption of the quality standards relating to Quality
investment and economic cooperation related issues in
                                                             Management Systems (ISO 9001 series), Environmental
Bilateral/Regional Economic Cooperation Agreements.
                                                             Management Systems (ISO 140001 Series), Food Safety
This department is actively associated in the negotiations
                                                             Management (ISO 22000 Series), Product certification
on Bilateral Investment Promotion and Protection
Agreements with various countries.                           and inspection bodies through the accreditation services
                                                             provided by National Accreditation Board for Certification
                                                             Bodies (NABCB). Auditors and trainers under the Quality
Intellectual Property Rights
                                                             Council of India, which has been certified by international
The Department of Industrial Policy and Promotion            accreditation bodies.
is responsible for Intellectual Property Rights (IPRs)
                                                             This Department is the nodal Department in Government
relating to Patents, Designs, Trade Marks and
                                                             of India for coordinating and implementing programmes
Geographical Indications of Goods and oversees the
                                                             with the United Nations Industrial Development
initiatives relating to their protection and promotion,
                                                             Organization (UNIDO) in India. UNIDO is a specialized
including outlining of policy and its implementation
                                                             agency of United Nations with a mandate to act as the
through the Office of the Controller General of Patents,
                                                             central coordinating body for industrial activities within
Designs and Trade Marks. It promotes awareness
regarding protection of the Intellectual Property Rights     the United Nations system. India has been an active
inherent in industrial property in conjunction with the      member of the organization since its inception. Under
World Intellectual Property Organization (WIPO) and          the Country Service Framework, the activities of UNIDO
apex industry associations of India. The Department co-      in India are to be focused in the fields of strengthening
ordinates matters relating to protection of Traditional      the competitiveness of industry through technology up-
Knowledge at national level. It also provides inputs         gradation, promotion of investments and cleaner and
on various issues relating to the Agreement on Trade         environmentally sustainable technologies.
Related Aspects of Intellectual Property Rights (TRIPS)
and on IPR matters relating to World Trade Organization      Schemes for         Industrial     and    Infrastructure
(WTO). It further undertakes bilateral and multi-lateral     Development
IPR co-operation activities in the areas of capacity
                                                             The Industrial Infrastructure Upgradation Scheme
building, human resource development and public
                                                             (IIUS) was launched in 2003, with a view to enhance
awareness programmes.
                                                             competitiveness of industry by providing quality
The Department of Industrial Policy and Promotion is the     infrastructure through public-private partnership in
nodal Department for WIPO, as per the amendment to           selected functional clusters. On the basis of outcome of

                                                                      Annual Report 2009-10

    an independent evaluation, the scheme has been recast               and is envisaged to be implemented through Public
    in 2009. Central assistance up to 75% of the project                Private Partnership. The DMIC Development Corporation
    cost, subject to a maximum of Rs. 60 crore is given for             (DMICDC) was incorporated in January 2008 for project
    each project. The remaining 25% is financed by other                development, coordination and implementation of the
    stakeholders with a minimum industry contribution of                numerous projects and also to raise finances, wherever
    15% of the project cost. In case of North Eastern States            needed. Equity participation by the Government of India
    and Special Category States (J&K, Himachal Pradesh and              in the DMICDC is 49% and the remaining 51% equity is
    Uttarakhand) the central grant is provided up to 90% of             held by private financial institutions.
    the total project cost subject to a maximum of Rs. 60
    crore with minimum industry contribution of 5% of the               Programme for Development of Leather Sector
    total project cost. Central grant for road, drainage system
    and water supply system is restricted to 25% of the cost            This Department administers the Indian Leather
    of these components as these are basically the municipal            Development Programme (ILDP) for overall development
    functions. Central grant provided under the Scheme                  of the Leather Sector. The Scheme aims at augmenting
    is for creation/upgradation of physical infrastructure,             raw material base, enhancing capacity, addressing
    R&D infrastructure, information and communications                  environmental concerns, human resource development,
    technology infrastructure, quality certification and bench          infrastructure development, attracting investment and
    marking centre, common facility centre, etc. Each project           global marketing of Indian Leather. Out of allocated
    is implemented by a Special Purpose Vehicle (SPV)                   outlay of Rs.1300 crores, under ILDP, sub-schemes with
    registered under Section 25 of the Companies Act.                   an outlay of Rs. 1237.52 crores have been approved.

    Delhi – Mumbai Industrial Corridor Project                          Monitoring of Industrial Sector

    In pursuance of an MOU signed between the Government                This Department monitors the industrial sector through
    of India and the Government of Japan during Hon’ble                 information on Industrial Entrepreneurs’ Memorandum
    Prime Minister’s visit to Tokyo in December 2006 to                 (IEM), Industrial Licence, Direct industrial licence, Letter
    promote investments and explore opportunities for                   of Intent (LOI), Foreign Investment Data and inflows,
    mutual cooperation, Government of India accorded                    and industrial production returns. The Department
    ‘in principle’ approval to the project outline of Delhi –           also coordinates the progress of ‘infrastructure sectors’
    Mumbai Industrial Corridor (DMIC) Project in August                 approved for investment / technology transfer, promotion
    2007. The DMIC is proposed to be developed along                    of private investment including foreign investment in the
    the alignment of the 1483 km long Western Dedicated                 infrastructure sector. This Department also compiles and
    Rail Freight Corridor between Dadri (UP) and JNPT (Navi             prepares index of production of 6 core-infrastructure
    Mumbai). The project seeks to create strong economic                industries on a monthly basis.
    base with globally competitive environment and state-of-            The organization chart of the Department of Industrial
    the art infrastructure to activate local commerce, enhance          Policy and Promotion is at Appendix. I.
    foreign investments and attain sustainable development
    and aims at doubling the employment potentials, tripling            List of attached/subordinate offices and other
    the industrial output and quadrupling the exports from the          organizations under the Department of Industrial Policy
    region in the first five years. The DMIC runs across six States     & Promotion is at Appendix-II.
    i.e. UP, Haryana, MP, Rajasthan, Gujarat and Maharashtra

  Department of Industrial Policy & Promotion                                                 CHAPTER 2

2009-10 : Highlights and Review

Industrial Performance During 2009-10                            important being the adverse impact of the global financial
                                                                 crisis. However, industrial growth measured in terms of
The global economic outlook has improved over the past
                                                                 Index of Industrial Production (IIP) registered growth of
few months. After a deep global recession, economic
                                                                 7.6% during 2009-10 (April-November).
growth has turned positive. As per World Economic
Outlook, although advanced economies are projected to
                                                                 Sectoral Performance
expand sluggishly through much of 2010, Global real GDP
is forecasted to expand by about 3 per cent in 2010. The         All the three sectors namely mining, manufacturing and
rebound is driven by China, India and a number of other          electricity have shown positive growth during 2009-10
emerging economies.                                              (April-November). The Mining & Quarrying registered
                                                                 a growth rate of 8.3 per cent during 2009-10 (April-
Indian economy grew at an average rate of 8.8 per cent in        November) compared to 3.4 percent achieved during
the four-year period from 2005-06 to 2008-09, despite the        the same period of the previous year. Manufacturing
crisis-affected year of 2008-09. The economy weathered           and Electricity Sector registered growth rates of 7.7 per
the financial turbulence well and grew at 7.2 per cent in        cent and 6.1 percent respectively during 2009-10 (April-
2009-10. The rapid adjustments in the monetary and               November), as compared to 4.2 percent and 2.8 percent
fiscal policies were well calibrated and desired results         growth registered during the corresponding period of the
achieved.                                                        previous year.

Industrial sector witnessed a sharp slowdown during              Comparative growth rates for these three sectors since
2008-09 as a consequence of successive shocks, the most          2001-02 are given in Table 2.1.

                                                         table 2.1
                          Annual Growth rate of industrial production in major sectors of industry
                                     ‘(Based on the Index of Industrial Production)
                                              Base : 1993-94=100 (per cent)
           period                 Mining & Quarrying        Manufacturing            Electricity            Overall
           Weight                           10.47                79.36                10.17                100.00
          2001-02                             1.2                  2.9                  3.1                   2.7
          2002-03                             5.8                  6.0                  3.2                   5.7
          2003-04                             5.2                  7.4                  5.1                   7.0
          2004-05                             4.4                  9.2                  5.2                   8.4
          2005-06                             1.0                  9.1                  5.2                   8.2
          2006-07                             5.4                 12.5                  7.2                  11.6
          2007-08                             5.1                  9.0                  6.4                   8.5
          2008-09                             2.6                  2.8                  2.8                   2.8
                                              3.4                  4.2                  2.8                   4.1
        (April – Nov)
        (April – Nov)                         8.3                  7.7                  6.1                   7.6
Source : Central Statistical Organisation

                                                                     Annual Report 2009-10

    Use-Based Classification                                               Thus the recovery in manufacturing output which is broad-
                                                                           based and strong enough to suggest a recovery based on
    According to the Use Based Classification, capital goods
                                                                           domestic demand, improved business confidence and a
    posted a growth rate of 7 per cent during 2009-10 (April-
                                                                           stable operating environment is given in Table 2.3.
    November) as against 8.4 per cent registered during the
    corresponding period in 2008-09.
                                                                           Performance of Core Industries
    Use Based Classification also reveals that consumer goods
                                                                           Six core industries (i.e electricity, crude petroleum,
    sector registered a growth rate of 6.3 per cent during
                                                                           petroleum refinery products, coal, steel and cement)
    2009-10 (April-November). The consumer durables sub
                                                                           having a weight of 26.68 percent in overall Index of
    sector however registered the growth rate of 21.7 per
                                                                           Industrial Production (IIP), grew by 4.8% during 2009-
    cent during 2009-10 (April-November) as against 5.1 per
                                                                           10 (April-December) (Provisional) as compared to
    cent of the corresponding period in the previous year.
                                                                           3.2% registered during the corresponding period in the
    The consumer non-durables sub sector has posted 1.1
                                                                           previous year.
    per cent growth rate during 2009-10 (April-November)
    as against 7.3 per cent of the corresponding period in the             During 2009-10 (April-December), Coal, Cement and
    previous year.                                                         Finished steel have registered growth rates of 8.3, 11
                                                                           and 3.6 per cent respectively. Electricity registered a
    Basic and intermediate goods industries posted growth
                                                                           growth rate of 6 per cent in the same period during
    rates of 6.1 per cent and 11.4 per cent respectively during
                                                                           2009-10. However, Crude Petroleum and Petroleum
    2009-10 (April-November), compared to their growth at
                                                                           Refinery Product registered negative growth rates of
    the rate of 3.6 per cent and (-)0.7 per cent respectively in
                                                                           (-)1.1 per cent and (-)1.0 per cent respectively during
    the previous year.
                                                                           the period.
    Comparative growth rates of industrial production based
                                                                           Comparative growth rates for six core industries since
    on use-based classification since 2001-2002 onwards are
                                                                           2001-02 are given in Table 2.4
    given in Table 2.2.

    Wool, silk & manmade fibre textiles which consist mainly               Price Situation during 2009-10
    of manmade fibres appear to have bounced back in 2009-
                                                                           The Office of the Economic Adviser in the Department
    10 after taking a beating for three successive quarters.
                                                                           of Industrial Policy & Promotion, Ministry of Commerce
    Leather manufactures – footwear, garments and travel
                                                                           & Industry compiles and disseminates Wholesale Price
    accessories and basic chemicals and metal products,
                                                                           Index (WPI) on a monthly basis, besides other economic
    which have a sizeable export share too appear to be on
                                                                           and statistical data.
    the path of recovery since June 2009.
                                                        table :2.2
                                                  Use Based Classification
                Sectors              Weight 2001- 2002- 2003- 2004-                   2005-    2006-   2007- 2008-09 2009-10
                                             02    03      04        05                06       07       08          (April –
    Basic Goods                 35.6             2.6          4.9    5.4       5.5      6.7     10.3     7.0     2.6   6.1
    Capital Goods                9.3            -3.4         10.5   13.6      13.9     15.8     18.2   18.0      7.3   7.0
    Intermediate Goods          26.5             1.5          3.9    6.4       6.1      2.5     12.0     9.0    -1.9  11.4
    Consumer Goods              28.7             6.0          7.1    7.1      11.7     12.0     10.1     6.1     4.7   6.3
    (i) Consumer durables        5.4            11.5         -6.3   11.6      14.4     15.3      9.2    -1.0     4.5  21.7
    (ii) Consumer non durables 23.3              4.1         12.0    5.8      10.8     11.0     10.4     8.6     4.8   1.1
    IIp                        100.0             2.7          5.7    7.0       8.4      8.2     11.6     8.5     2.8   7.6
    Source: Central Statistical Organisation P-Provisional

  Department of Industrial Policy & Promotion

                                                          table 2.3
                            Comparative growth rates for the 2-digit industry groups since 2001-02
                                                    Base : 1993-94=100
  code           Industry           Weight 2001-     2002-   2003-   2004-    2005-   2006-   2007-   2008- April-Nov
                                            02        03      04      05       06      07      08      09   (2009-10)

 20-21     Food Products               9.1    -1.6   11.0     -0.5    -0.4     2.0      8.6     7.0    -9.7     -7.2

 22        Beverage, tobacco           2.4   12.2    27.9      8.5    10.8    15.7     11.0    12.0   16.2      -2.2
           & Products

 23        Cotton Textiles             5.5    -2.2    -2.7    -3.1     7.6     8.5     14.8     4.3    -1.9      3.2

 24        Wool, Silk and Man          2.3     4.4    3.0      6.8     3.5     0.0      7.8     4.8    0.0      13.0
           made fibre textiles

 25        Jute,and other              0.6    -5.9    8.3     -4.2     3.7     0.5    -15.8    33.1   -10.0    -16.2
           vegetable fiber

 26        Textile Products            2.5     2.4   14.4     -3.2    19.2    16.3     11.5     3.7    5.8       9.9

 27        Wood & wood                 2.7   -11.0   -17.6     6.8    -8.4    -5.7     29.1    40.5    -9.6     10.5
           furniture &

 28        Paper & Paper               2.7     3.0    6.8    15.6     10.5    -0.9      8.7     2.7    1.8       2.1

 29        Leather & fur               1.1     5.3    -3.2    -3.9     6.7    -4.8      0.6    11.7    -6.9      0.9

 30        Basic chemicals.&          14.0     4.8    3.7      8.7    14.5     8.3      9.6    10.6    4.1      10.0
           chemical products

 31        Rubber, plastic,            5.7   11.1     5.5      4.5     2.4     4.3     12.9     8.9    -1.5     13.5
           petroleum and coal

 32        non-metallic                4.4     1.1    5.1      3.7     1.5    11.0     12.8     5.7    1.2       6.4

 33        Basic metals &              7.5     4.3    9.2      9.2     5.4    15.8     22.9    12.1    4.0       4.8
           alloy industries

 34        Metal Products &            2.8   -10.0    6.4      3.7     5.7    -1.1     11.4    -5.6    -4.0      4.0

 35-36     Machinery and               9.6     1.3    1.6    15.8     19.8    12.0     14.2    10.4    8.8      12.1

 37        Transport                   4.0     6.8   14.6    17.0      4.1    12.7     15.0     2.9    2.5      13.9
           Equipment & parts

 38        Other                       2.6     8.9    0.1      7.7    18.5    25.2      7.8    19.8    0.4      12.3
Source : Central Statistical Organisation

                                                                   Annual Report 2009-10

                                           Table 2.4: Growth rate of core industries (percent)
                                Weight      2001-     2002-   2003-    2004-     2005-    2006-   2007-    2008-     2009-10
               Sector           (in IIp)     02        03      04       05        06       07      08      09(p)      (Apr-
     1. Electricity             10.17           3.1    3.2      5.1      5.2       5.1      7.3    6.3      2.7         6.0
        a. Hydel                     --       -0.7    -13.7    15.2     14.9      19.9     11.9    8.9      -8.4       -7.5
       b. Thermal + Nuclear          --         2.5    6.2      3.6      3.8       2.3      6.2    5.4      5.0         9.0

     2. Coal                      3.22          4.2    4.6      5.1      6.2       6.6      5.9    6.3      7.8         8.3
     3. Finished Steel            5.13          3.6    7.3      9.8      8.4      10.8     13.1    6.2      0.4         3.6
     4. Crude Petroleum           4.17        -1.2     3.4      0.7      1.8      -5.2      5.6    0.4      -1.8       -1.1
     5. Petroleum Refinery        2.00          3.7    4.9      8.2      4.3       2.1     12.9    6.5      3.0        -1.0
     6. Cement                    1.99          7.4    8.8      6.1      6.6      12.4      9.1    8.1      7.2       411.0
     Overall                    26.68           3.2    5.0      6.1      5.8       6.1      9.2    5.9      2.6         4.8
    Source : O/o the Economic Adviser, DIPP

    In compliance with the decision of CCEA, weekly                    ‘ Primary Articles’, ‘Fuel, Power, Light & Lubricants’
    compilation of WPI has now been restricted to ‘Primary             and ‘Manufactured Products’ increased from 7.5%,
    Articles’ and ‘Fuel, Power, Light & Lubricants’ with effect        1.0% and 4.9% to 10.2%, 7.5% and 8.1%. respectively.
    from the week ending 24.10.09 and compilation of WPI               In the current financial year i.e. 2009-10 (April to
    has now been on monthly basis since October, 2009,                 December), the rate of inflation stood at        1.7%
    covering all commodities .                                         (Provisional). The provisional inflation rates for the
                                                                       major groups ‘ Primary Articles’, ‘Fuel, Power, Light
    Overall Inflation Rate:                                            & Lubricants’ and ‘Manufactured Products’        stood
                                                                       at 9.0%, (-)6.3% and 1.8% respectively during the
    The rate of inflation based on annual Wholesale Price
                                                                       current financial year (April to December).
    Index(WPI) increased to 8.4% during the financial
    year 2008-09 as compared to 4.6% increase in                       The status of inflation based on year –wise WPI since
    2007-08. The rate of inflation for the major groups                2000-01 is given in the Table 2.5:

                            Table 2.5 : Inflation Based on Financial Year-Wise WPI(Base: 1993-94=100)
         period          All Commodities        Primary Articles Fuel, Power, Light & Lubricants Manufactured products
        2000-01                  7.2                   2.9                       28.5                     3.3
        2001-02                  3.6                   3.6                         8.9                    1.8
        2002-03                  3.4                   3.3                         5.5                    2.6
        2003-04                  5.5                   4.3                         6.4                    5.7
        2004-05                  6.5                   3.6                       10.1                     6.3
        2005-06                  4.4                   2.9                         9.5                    3.1
        2006-07                  5.4                   7.8                         5.6                    4.4
        2007-08                  4.6                   7.5                         1.0                    4.9
        2008-09                  8.4                  10.2                         7.5                    8.1
        2009-10*                 1.7                   9.0                      (-)6.3                    1.8
    * Provisional (From April to December-09)

 Department of Industrial Policy & Promotion

The Status of Wholesale Price Indices for major groups           proposals, the Apex Committee takes into account factors
from 2000-01 to 2009-10 is given in the Table 2.6:               such as number of units, persons employed, value of
                        Table 2.6 Financial Year-Wise Wholesale Price Indices(Base: 1993-94=100)
        period           All Commodities      Primary Articles        Fuel, Power, Light & Lubricants       Manufactured
                              Wt. 100.0            Wt. 22.02                     Wt. 14.22                         Wt. 63.7
       2000-01                     155.7               162.5                         208.1                            141.7
       2001-02                     161.3               168.4                         226.7                            144.3
       2002-03                     166.8               174.0                         239.2                            148.1
       2003-04                     175.9               181.5                         254.5                            156.5
       2004-05                     187.3               188.1                         280.2                            166.3
       2005-06                     195.6               193.6                         306.8                            171.4
       2006-07                     206.2               208.7                         323.9                            179.0
       2007-08                     215.7               224.4                         327.0                            187.8
       2008-09                     233.9               247.3                         351.4                            203.1
      2009-10*                     239.9               269.4                         337.5                            207.9
* Provisional (from April to November 2009)

Industrial Infrastructure Upgradation Scheme                     output, export potential, comparative advantages, growth
(IIUS)                                                           potential, nature of critical gaps in infrastructure and ability
                                                                 of industrial units to contribute 15% of the project cost, etc.
Industrial Infrastructure Upgradation Scheme (IIUS) was
launched in 2003 with a view to enhancing competitiveness        The projects are executed by Special Purpose Vehicles
                                                                 (SPVs), which are independent legal entities registered
of industry by providing quality infrastructure through
                                                                 under Section 25 of the Companies Act. They are required
public-private partnership in selected functional clusters.
                                                                 to ensure the sustainability of assets created under the
The scheme has been suitably modified in 2009 mainly to
                                                                 Scheme by levying appropriate user charges.
prevent delays in the implementation of the projects and
streamline the process under the Scheme. Central grant           An illustrative list of infrastructure eligible for assistance
is provided under the scheme to upgrade infrastructure           is as below:
of the existing clusters. Infrastructure includes Physical
                                                                 I.        Physical Infrastructure such as transport, road,
infrastructure, R & D infrastructure, Common Facilities
                                                                           water, common captive power generating
etc. The central grant is restricted to 75% of the project
                                                                           units, power transmission and distribution
cost subject to a ceiling of Rs. 60 crore. The remaining
                                                                           infrastructure, common fuel / gas supply system,
25% is financed by other stakeholders with a minimum
                                                                           common effluent treatment plant and solid waste
industry contribution of 15% of the project cost, which
                                                                           management facility.
must be in form of cash and not in kind like the cost of
land or existing building. In the case of North Eastern          II.       Information and Communications Technology
States and Jammu & Kashmir, Himachal Pradesh and                           (ICT) Infrastructure.
Uttarakhand, central grant is up to 90% with a ceiling of        iii.      R&d Infrastructure.
Rs. 60 crore of the project cost with minimum industry
                                                                 IV.       Quality certification & benchmarking centre,
contribution of 5% of the total project cost.
                                                                           improvement of soft skills in quality control
The projects are approved by an Inter-Ministerial Apex                     and Total Quality Management technologies,
Committee headed by Secretary, Department of Industrial                    handholding of firms to achieve certificate, and
Policy and Promotion. While considering the project                        benchmarking vis-à-vis international standards.

                                                                    Annual Report 2009-10

     V.     Common Facilities.                                                conference centre; 200 direct employment

     VI.    Marketing/information dispersal infrastructure.                   generated.

                                                                      (Iii)   Chemical Cluster, Ankleshwar:      965 industries
     VII.   Any other physical infrastructure identified by                   benefited by Effluent Treatment Plant; 50%
            the industry cluster and approved by the Apex                     increase in the employment.
                                                                      (Iv)    Chemical Cluster, Vapi: Reduction in the pollution
     during 10th Five Year Plan, 26 projects with a total cost of             load of treated waste water up to 80%; improved
     Rs.1693 crore and involving central grant of Rs. 945 crore               surface water quality of Daman Ganga River;
     were sanctioned under the IIUS. In addition, 5 projects                  Scientific management of Hazardous waste from
     with total cost of Rs. 271 and central grant component                   700 SMEs of the Cluster.
     of Rs. 185 crore have been sanctioned during 11th Five
     Year Plan. The total cost of all 31 sanctioned projects is       (v)     Textile Cluster, Ludhiana: 1800 industrial units
     Rs. 1964 crore including central grant component of Rs.                  benefited by the Transport Storage and Disposal
     1130 crore. So far Rs. 867 crore has been released to                    Facility (TSDF); 12000 Tonnes of hazardous waste
     various SPVs. Out of 31 projects sanctioned, 5 are for Tamil             disposed in SLF.
     Nadu, 4 each are for Gujarat and Madhya Pradesh, 3
     each are for West Bengal and Maharashtra and 2 each for          Recast of IIUS:
     Andhra Pradesh and Karnataka and 1 each for Chhattisgarh,
                                                                      On the basis of outcome of the evaluation of the Scheme,
     Haryana, Kerala, Orissa, Punjab, Rajasthan, U.P. and
                                                                      the IIUS has been recast. The Government on 23.02.2009
     Jharkhand. Five projects each have been sanctioned for
                                                                      approved the recast IIUS. Under the recast IIUS 10-15
     Auto Components and Textiles clusters, three projects
                                                                      clusters will be taken up with an estimated expenditure
     each for Chemical clusters and Foundry clusters and two
                                                                      of Rs. 450 crore. Five Projects under recast IIUS have
     projects each for Leather clusters and Rubber clusters.
                                                                      already been given in-principle approval.
     Eight projects, namely, Auto Cluster, Pune, Machine Tools
     Cluster, Bangalore, Textile Cluster, Tirupur (TN), Chemical      Scheme Outlay:
     Cluster, Vapi, Chemical Cluster, Ankleshwar, Pump Motor &
     Foundry Cluster, Coimbatore, Textile Cluster, Ludhiana and       For 10th Plan, outlay of IIUS was Rs. 675 Crore. The 11th
     Foundry Cluster, Belgaum have already been completed.            Plan outlay for the Scheme is Rs. 1050 crore. Out of this,
     Five more projects are likely to be completed by March,          Rs.325 crore is for projects sanctioned in industrially
     2010. The sanction given to Textile cluster, Panipat             less developed States, Rs. 275 crore for completion of
     (Haryana) has been withdrawn in April, 2007 as its               ongoing projects sanctioned during 10th Plan and Rs.
     implementation was not found to be feasible in accordance        450 crore for 10-15 projects to be sanctioned under
     with the guidelines of the Scheme. The rest of the projects      the recast IIUS. The RE for 2009-10 for the Scheme is
     are at different stages of implementation.                       Rs. 120 crore.

     Success Stories:                                                 Foreign Direct Investment
     (I)    Auto Cluster, Pune: Auto Electronic Centre, CAD/          During the financial year 2009-10 (from April, 09 to
            CAM Centre for design; 15 Training Programmes             December, 09) FDI equity inflow was Rs. 100,539 crore
            conducted for capacity building; 252 industrial           (US$ 20.9 billion), as against Rs. 92,326 crore (US$ 21.2
            units benefited by using product testing machines         billion) during the corresponding period last year. The
            and design on CAd.                                        cumulative FDI inflow from August 1991 to December,
                                                                      2009 is Rs. 5,54,270 crore (US$ 127.5 billion).
     (Ii)   Machine Tools Cluster, Bangalore: 3 Exhibition
            halls; Food Court and Conference centres                  In terms of sectoral distribution, the highest FDI inflow
            constructed; 14 conferences conducted in the              during 2009-10 (up to December, 09) was in the services

 Department of Industrial Policy & Promotion

sector (financial and non financial), amounting to 17%        for benefits under the Policy. In order to ensure that
(app.) of the total FDI inflow, followed by housing & real    only genuine industries come up in the region, the
estate (11%) telecommunications (11%), construction           Policy disallows concessions to goods in respect of
activities (11%), agriculture services (6%), power sectors    which only peripheral activities take place.
(6%), automobile industries (5%), electrical equipments
                                                              For proper coordination and monitoring of NEIIPP, 2007,
& computer software hardware (3% each) & hotel &
                                                              various Committees like High Level Committee, Advisory
tourism (2%). The balance inflow (25%) was accounted
                                                              Committee alongwith Over-sight Committee have been
by other sectors.
                                                              set up.
FDI from Mauritius during 2009-10 (up to December
2009) accounted for 43% of total inflow into the country,     Nodal Agency
followed by Singapore and USA with 8% each, Cyprus
                                                              The North Eastern Industrial Development Finance
with 6% and Japan with 5% of the total inflow.
                                                              Corporation (NEDFi), Guwahati is the nodal agency for
                                                              disbursal of subsidies under various subsidy schemes of
NRI Investment                                                nEIIPP, 2007.
NRI inflow have been Rs. 28,104 crore (the amount of
                                                              The subsidy Schemes under NEIIPP, 2007 and their salient
NRI inflow includes the inflow of special NRI schemes
                                                              features and performance are enumerated below: -
administered by RBI) during the period from August 1991
to December 2009.                                             I.    Central Capital Investment Subsidy Scheme for
                                                                    North East
North East Industrial and Investment Promotion
                                                                    Under the Central Capital Investment Subsidy
Policy (NEIIPP), 2007                                         l

                                                                    Scheme, subsidy @ of 30% of the investment in plant
The “North East Industrial and Investment Promotion                 and machinery or additional investment in Plant
Policy (NEIIPP), 2007” was notified with effect from                and Machinery by way of substantial expansion is
1.4.2007 on revision of the erstwhile North East                    provided without any upper limit. While subsidy
Industrial Policy (NEIP), 1997. The Policy is applicable            upto Rs.1.50 crore is payable to all new units as
to the States of Arunachal Pradesh, Assam, Manipur,                 well as existing units on their substantial expansion
Meghalaya, Mizoram, Nagaland, Tripura and Sikkim and                through the automatic route, Capital investment
it will remain effective for a period of 10 years. Benefits         subsidy higher than Rs.1.5 crore, but upto a
under NEIIPP, 2007 are available to new industrial units            maximum of Rs.30 crore can be granted with the
as well as existing industrial units on their substantial           approval of an Empowered Committee. Subsidy
expansion, irrespective of their location.                          higher than Rs.30 crore would be granted with the
                                                                    approval of the Union Cabinet.
The incentives/concessions provided to industrial units
under the Policy are excise duty exemption based on           l     An amount of Rs. 48.17 crore was released under
“value addition” norms specified by Department of                   the Scheme in the year 2008-09. The Scheme
Revenue, income tax exemption, Capital Investment                   was a part of the erstwhile NEIP, 1997. The total
Subsidy, Interest Subsidy, Comprehensive Insurance                  amount released under the Scheme (both under
etc. Benefits under NEIIPP, 2007 have also been                     nEIP, 1997 and nEIIPP, 2007) upto 31.3.2009 is
extended, for the first time, to the select Service Sector          Rs. 125.24 crore. An amount of Rs. 8.31 crore
Industry and also to Bio-technology Industry and                    have been released during the current financial
Power Generating Industry, besides industries in the                year.
manufacturing Sector. Certain industries considered           II.   Central Interest Subsidy Scheme for North East
hazardous to public health and environment such as
                                                              l     Under the Central Interest Subsidy Scheme,
Tobacco and its substitutes, Pan Masala, Plastics carry
                                                                    interest subsidy @ 3% of the working capital
bags, Refinery products etc. have been made ineligible

                                                                    Annual Report 2009-10

            loan is granted to new Industrial Units as well as             Development Corporation (HPSIDC), Jammu &
            existing units on their substantial expansion.                 Kashmir Development Financial Corporation
     l      An amount of Rs.16.39 crore was released under                 (JKDFC) and State Industrial and Infrastructure
            the Scheme in the year 2008-09. The Scheme                     Development Corporation for Uttarakhand
            was a part of the erstwhile NEIP, 1997. The total              (SIDCUL) are the designated nodal agencies for
            amount released under the Scheme (both under                   disbursement of subsidy in the NE States and
            nEIP, 1997 and nEIIPP, 2007) upto 31.03.2009 is                in the States of Himachal Pradesh, J&K and
            Rs. 47.77 crore. An amount of Rs. 40.00 crore has              Uttarakhand respectively. Disbursement to UTs
            been released under the Scheme in the current                  is made directly.
            financial year (2009-10).
                                                                      l    Since inception, a total amount of Rs.1663.09
     III.   Central Comprehensive Insurance Scheme for North               crore has been released under the Scheme upto
            East                                                           31.03.2009.
     l      Under the new Scheme, new industrial units as             l    During the current financial year an amount of
            well as existing units on their substantial expansion          Rs. 401 crore has been released under the
            are eligible for reimbursement of 100% insurance               scheme.
                                                                      l    The Scheme has been extended from time to
     l      In the year 2008-09, an amount of Rs.3.60 crore                time. The Government last approved extension of
            was released under the Scheme. The Scheme                      the Scheme on 26.2.2009 beyond 31.03.2008 till
            was a part of the erstwhile NEIP, 1997. The total              completion of the evaluation process of the Scheme
            amount released under the Scheme (both under
                                                                           by an independent agency. The evaluation of the
            nEIP, 1997 and nEIIPP, 2007) upto 31.3.2009 is
                                                                           scheme has been done by M/s Deloitte Touche
            Rs. 10.60 crore. No releases have been made so
                                                                           Tohmastu (P) Ltd., Gurgaon.
            far during current financial year.
                                                                      l    On the request of DIPP, the Office of the Controller
     IV.    Transport Subsidy Scheme
                                                                           and Auditor General (C&AG) has conducted
     l      Transport Subsidy Scheme was introduced in                     a Performance Audit of the Scheme and has
            July, 1971 with a view to facilitate the process of            submitted its draft report on 18.3.2009.
            industrialization in hilly, remote and inaccessible
                                                                      l    Based on evaluation report, suitable proposal
            areas. The Scheme is applicable to all the industrial
                                                                           regarding the future alternative formulation
            units (barring plantations, refineries and power
            generating units) irrespective of their size, both in          of the scheme is under consideration of the
            private and the public sector, located in the North-           Government.
            Eastern States of Arunachal Pradesh, Assam, Manipur,
            Meghalaya, Mizoram, Nagaland, Tripura & Sikkim,
                                                                      Erstwhile     Central      Investment         Subsidy
            Jammu & Kashmir, Himachal Pradesh, hill Districts
            of Uttarakhand, Darjeeling District of West Bengal,       l    In August 1971, Government had introduced the
            Andaman & Nicobar Islands and Lakshadweep.                     Scheme of Central Investment Subsidy to promote
     l      Under the Scheme, subsidy ranging between 50%                  industrialization in selected districts/backward
            to 90% of the transportation cost is admissible on             areas, which were categorized into Category ‘A’,
            transportation of raw material and finished goods              ‘B’ and ‘C’ for the purpose of quantum of the
            to and from the location of the industrial unit and            subsidy.
            the designated railhead.
                                                                      l    The Scheme however was discontinued w.e.f.
     l      North Eastern Development Finance Corporation                  30.9.88. However after cessation of the Scheme,
            Ltd. (NEDFi), Himachal Pradesh State Industrial                residual cases are being examined in pursuance

    Department of Industrial Policy & Promotion

       of Hon’ble Supreme Court’s Judgment dated                  Industrial Policy and International Cooperation
                                                                  The Government accorded its approval in September
l      Since inception of the Scheme, an amount of                2009 for formation of a ‘not-for-profit’ company ‘Invest
       Rs.1114.76 crore has been released to various              India’ under Section 25 of the Companies Act, 1956. This
       States/Union Territories, up to 31.03.2009. No             company is a joint venture between the Government
       releases have been made during the current                 of India, Federation of Indian Chambers of Commerce
       financial year.                                            and Industry (FICCI) and the State Governments.
                                                                  The Company will promote foreign investments in
Clarification regarding description of Items under                a focused, comprehensive and structured manner
heading ‘Atomic Energy’, reserved for PSUs:                       through projecting India as an attractive investment
Material and substances of Atomic Energy which are                destination for foreign investors and acting as the
reserved for PSU have been specifically indicated in              first reference point for investors. ‘Invest India’ was
notification No.2630 (E) dated 19.10.2009, issued by              launched by the Commerce & Industry Minister on 23rd
the DIPP. Henceforth, private entrepreneurs could apply           December, 2009.
for industrial licence for production of the materials            The third meeting of the India-Korea Joint
and substances of Atomic Energy, not mentioned in this            Investment Promotion Committee held in Seoul on
notification. As a result of this notification, the two entries   3rd September, 2009, deliberated on bilateral matters
relating to ‘atomic energy’, mentioned under Schedule-I           pertaining to Trade Remedy Cooperation, Industrial
of notification No.S.O.477(E) dated 25.7.1991, have been
                                                                  Training, Intellectual Property Right Cooperation
merged into one.

                  The Union Minister of Commerce and Industry, Shri Anand Sharma releasing a book on
                         “India Investment Policy Review”., in New Delhi on December 04, 2009.

                                                                   Annual Report 2009-10

     and Cooperation on Standards and Conformity                     ‘Doing Business’ Study
                                                                     The World Bank group publishes the Doing Business (DB)
     Department of Industrial Policy & Promotion is involved         report annually, comparing various countries across the
     with   various   Industry Associations     in   organizing      world in terms of ease of starting and operating a business.
     conferences/ summits. The 25th India Economic Summit            Till 2008 the DB reports had studied only Mumbai as
     was organized in collaboration with the Confederation           a part of the global study conducted by the Bank. Last
                                                                     year DIPP suggested World Bank for coverage of all major
     of Indian Industry (CII) and the World Economic Forum
                                                                     Indian cities in the study for a wider and better picture
     on 8-10 November, 2009 at New Delhi. The Summit
                                                                     of the business environment in the country. Accordingly
     provided an opportunity for Government-Industry-Civil
                                                                     DIPP and the World Bank Group took up a sub-national
     Society interface to discuss new business opportunities         study of 17 major cities in May 2008. The final report of
     and strengthen existing partnerships.                           this study - Doing Business in India 2009 - was released on
                                                                     30.06.09 in New Delhi. The study found that fourteen out
     The India-Republic of Korea Business Forum was held
                                                                     of the seventeen cities covered in the report introduced
     during the visit of President of Korea in January, 2010.
                                                                     local reforms in at least one of the areas measured. The
     The Commerce & Industry Minister led a delegation to            study also shows that reforms have produced tangible
     Davos (Switzerland) to attend the 40th Annual Meeting           results, such as reducing the average time to open a
     of the World Economic Forum (WEF) in January, 2010.             business from 54 to 35 days on an average. Similarly time
     The annual meeting of the WEF is an important event             to obtain a building permit was reduced by 25 days. The
     to showcase India’s policies and reforms as well as             study shows that there are a lot of good local practices
     investment opportunities.                                       and cities can learn from each other and if all the best
                                                                     practices that already exist in India are widely adopted,
     Business Environment                                            India’s global ranking would improve by 55 positions.

     Under the National e-Governance Plan (NEGP) of the              Conference of State Industry Ministers
     Government of India, DIPP has initiated the eBiz project
                                                                     A meeting of the State Industry Ministers was convened on
     as a Mission Mode Project (MMP). The eBiz portal will
                                                                     17th November 2009 in New Delhi under the Chairmanship
     be a single window service for the business users and
                                                                     of Hon’ble CIM Shri Anand Sharma. The meeting
     will provide a number of services covering the entire
                                                                     deliberated on issues being faced by the manufacturing
     life cycle of their operations. Through this portal,            sector, especially the strategically important export oriented
     users will have easy access to various services offered         and employment intensive sectors, which have been
     by the Central, State and Local Governments for their           affected by the challenging global economic environment.
     business related needs. The project is scheduled for a          The Ministers presented the difficulties and bottlenecks
     period of 10 years. The contract for this project has           in the industrial development of their respective states.
     been awarded to M/s Infosys Technologies Limited,               Linking Industrial Corridors for better transportation and
     Bangalore.                                                      preparation of a blue print of core competencies of all the
                                                                     States for industrial development was deliberated in detail.
     The Pilot phase of the project covers 9 Central Ministries/     To discuss and remove such bottlenecks and to ensure
     Deptts./Offices and 5 State Governments (Haryana,               better growth of the economy, it was decided that the
     Tamil Nadu, Andhra Pradesh, Maharashtra and Delhi). 29          State Industry Ministers may now meet every year. It was
     services will be available during the first year itself.        decided to formulate a National Manufacturing Policy, to
                                                                     be unveiled at the next conference. It was also agreed to
     The Project is expected to cover all states and districts
                                                                     create a High Level Committee of State Industry Ministers
     across India during its second stage and provide over 200
                                                                     with proper regional representation to further discuss and
     business related services. Operations in this stage will be
                                                                     initiate action on specific issues pertaining to state level
     in a public-private partnership (PPP) mode.

 Department of Industrial Policy & Promotion

DIPP Website:                                                    Corridor between Dadri (in UP) and JNPT (Navi Mumbai)
                                                                 is proposed to be developed in to a planned industrial
The homepage of the new DIPP website was launched                belt with globally competitive environment and state-
by the Hon’ble CIM on 17th November 2009. The new                of-the-art infrastructure to activate local commerce,
website will be available for the public by the end of           enhance domestic and foreign investments and
the year, after completion of the content updating and           attain sustainable development. The corridor would
security audit.                                                  run through the States of Uttar Pradesh, Haryana,
                                                                 Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.
Intellectual Property Rights                                     6 Investment Regions (of minimum 200 sq. kms) and 6
                                                                 Industrial Areas (of minimum 100 sq. kms) are proposed
Intellectual Property Appellate Board (IPAB), a quasi judicial
                                                                 to be developed in Phase I of the project. 12 more
body was set up as a statutory Board by the Government
                                                                 nodes have been identified tentatively for development
of India vide Gazette Notification No: S.O. 1049 (E) Dated
                                                                 in Phase II of the project.
15.9.2003. It has been established to hear appeals against
the decisions of the Registrar and to hear applications for      MoUs have been signed with all the DMIC States for
rectification of entries in the Registrar of Trade Marks under   preparation of Perspective and Development Plans
the Trade Marks Act, 1999, the Geographical Indication of        for identified Nodes jointly. Consultancies have been
Goods (Registration and Protection) Act, 1999 and Patents        awarded for preparation of Perspective Plan for overall
Act, 2005. IPAB has its headquarters at Chennai and it           DMIC region and Development Plans for each of the
holds sittings, besides Chennai, at New Delhi, Mumbai,           Investment Regions in Gujarat, MP, and Haryana and
Kolkata and Ahmedabad.                                           Maharashtra. Final Report on Perspective Plan for
                                                                 the overall DMIC region has been submitted by the
Infrastructure Development                                       consultants and development Plans in respect of IRs of
                                                                 Gujarat, Madhya Pradesh and Haryana and Maharashtra
Delhi – Mumbai Industrial Corridor (DMIC)                        are under preparation.
                                                                 Consultancy for preparation of Development Plan for the
Under the DMIC Project, about 150 - 200 km wide
                                                                 identified Investment Region in Rajasthan is proposed to
band on either side of the Western Dedicated Freight
                                                                 be awarded during the year 2009-10.

     CHAPTER 3                                                         Annual Report 2009-10

     Evolution and Development of
     Industrial Policy

     Main objective of the Industrial Policy of the                      No industrial licence is required for such exempted
     Government are –                                                    industries. Amendments are also allowed to IEMs filed
                                                                         w.e.f. 1.7.98.
     l      To maintain a sustained growth in productivity;
                                                                         iii)   Liberalisation of the Locational Policy
     l      To enhance gainful employment;

     l      To achieve       optimal     utilization   of   human        A significant development, has been a decision of the
            resources;                                                   Government to do away with the locational stipulation
                                                                         in setting up of industries in cities with population of one
     l      To attain international competitiveness and
                                                                         million and above as per 1991 census. Entrepreneurs are
     l      To transform India into a major partner and player           now free to select the location for setting up industry.
            in the global arena.                                         Necessary amendment to this effect has been made in
                                                                         Notification No.477(E) dated 25.7.1991 with the issue of
     Policy focus is on –                                                notification No.2054(E) dated 14.8.2008, issued under
                                                                         the provisions of the IDR Act, 1951. However, Zoning and
     l      Deregulating Indian industry;                                land use regulations as well as environmental legislations
     l      Allowing the industry freedom and flexibility in             continue to regulate industrial locations.
            responding to market forces and
                                                                         iv)    Clarification regarding description of Items under
     l      Providing a policy regime that facilitates and                      heading ‘Atomic Energy’, reserved for PSUs
            fosters growth of Indian industry.
                                                                         Another development, strengthening the policy of
                                                                         transparency of the Government, was to take a decision
     Policy Measures                                                     on specifying the items under the head “Atomic Energy”,
                                                                         reserved for public sector. Material and substances
     i)     Liberalisation of Industrial Licensing Policy
                                                                         of Atomic Energy have been specifically indicated in
     The list of items covered under compulsory licensing                notification No.2630(E) dated 19.10.2009, issued by
     under the Industries (Development & Regulation) Act,                the Department which are reserved for public sector
     1951 is reviewed on an ongoing basis. At present, only five         only. Henceforth, private entrepreneurs could apply
     industries are under compulsory licensing mainly on account         for industrial licence for production of the materials
     of environmental, safety and strategic considerations.              and substances of Atomic Energy, not mentioned in the
     Similarly, there are only two industries reserved for the           above notification. As a result of the above amending
     public sector. The existing List of industries reserved for the     notification, the two entries relating to ‘atomic energy’,
     public sector and List of items under compulsory licensing          mentioned under Schedule-I to notification No.S.O.477(E)
     are at Appendix-III and IV respectively.                            dated 25.7.1991, have been merged into one.

     ii)    Industrial Entrepreneurs’ Memorandum (IEM)                   v)     Policy for Small Scale Industries

     Industries not covered under compulsory licensing                   Though reservation of items exclusively for the Small
     are to file an Industrial Entrepreneurs’ Memorandum                 Scale sector forms an important focus of the industrial
     (IEM) to the Secretariat for Industrial Assistance (SIA).           policy, review for dereservation of such items is also

  Department of Industrial Policy & Promotion

undertaken by the Government at periodic intervals,                 (iii)   Guidelines for transfer of ownership or control
in order to enhance competitiveness of such products                        of Indian companies in sectors with caps from
in the domestic/ global markets. Review of reserved                         resident Indian citizens to non-resident entities.
items is thus a continuous process. At present 21 items
are reserved for manufacture in the small scale sector.             (iv)    Clarificatory guidelines on downstream investment
All undertakings other than the small scale industrial                      by Indian Companies.
undertakings engaged in the manufacture of items
                                                                    (v)     Clarification on Foreign Direct Investment (FDI)
reserved for manufacture in the small scale sector are
                                                                            Micro & Small Enterprises (MSE) and in Industrial
required to obtain an industrial licence and undertake
an export obligation of 50% of the annual production.                       Undertakings manufacturing items reserved for
This condition of licensing is, however, not applicable                     SSI/ MSE.
to those undertakings operating under 100% Export
                                                                    (vi)    Liberalization of Foreign Technology Agreement
Oriented Undertakings Scheme, the Export Processing
Zone (EPZ) or the Special Economic Zone Schemes
                                                                    Non-Resident Indians Scheme
At present, the SSI is defined under the Micro, Small &
Medium Enterprises Development (MSMED) Act, 2006,                   The general policy and facilities for Foreign Direct
which has categorised SSEs (Small Scale Enterprises) as             Investment, as available to foreign investors/companies,
having the value of investment in plant machinery less              applies to NRIs as well. In addition, Government has
than Rs.5 crore. However, the MSMED Act has not made                extended special concessions to NRIs in the following
any provision for restricting equity participation in such          sectors:
industries by other industries. Therefore, Government
has vide Notification No.S.O.563(E) dated 27.2.2009                 (i)     NRI investment in the construction development
rescinded notification S.O.857(E) dated 10.12.1997 vide                     sector is allowed up to 100%. Such investments
which FDI in SSIs was restricted to 24%.                                    are exempted from the conditions of minimum
                                                                            capitalisation, minimum area development and
Policy For Foreign Direct Investment (FDI)                                  lock-in period on investment.

Promotion of Foreign Direct Investment (FDI) forms an               (ii)    FDI up to 49% and investment by Non-resident
integral part of the Industrial Policy. FDI helps in accelerating           Indians (NRIs) up to 100% is allowed on the
economic growth by means of infusion of capital, technology                 automatic route in Domestic Scheduled Passenger
and modern management practices. Government has put in                      Airline Sector;
place a liberal and transparent foreign investment regime,
wherein FDI up to 100% is allowed, under the automatic              (iii)   FDI up to 74% and investment by Non-resident
route, in most sectors/activities. The main features of the                 Indians (NRIs) up to 100% is allowed on the
FDI policy are given in Chapter – 5.                                        automatic route in Non Scheduled airlines,
                                                                            Chartered airlines, and Cargo airlines;
Government has, on a review of the extant policy on
Foreign Direct Investment, further rationalised the                 (iv)    FDI up to 74% and investment by NRI up to 100%
following sectors/areas in 2009:                                            is allowed on the automatic route in Ground
                                                                            Handling Services; and
(i)     Print Media.

(ii)    Guidelines for calculation of total foreign                 Individual NRIs are also permitted to invest on non -
        investment i.e. direct and indirect foreign                 repatriable basis in partnership firms and proprietorship
        investment in Indian Companies;                             concerns.

     CHAPTER 4                                                      Annual Report 2009-10

     Secretariat for Industrial

     The Secretariat for Industrial Assistance (SIA) in               abroad for discussions on issues of mutual interest and
     the Department functions as a Single Window for                  business/investment meets between Indian and foreign
     entrepreneurial assistance, investor facilitation and            entrepreneurs, with the aim of stimulating foreign
     processing of applications which require Government              investment into India. It also participates in discussions
     approval. SIA also assists entrepreneurs and investors           covering industrial cooperation organized by other
     in setting up projects, including liaison with other             Ministries and departments of Government of India and
     organizations and State Governments, as also monitoring          the Joint Business Council meetings.
     the implementation of projects. Different arms of the
     SIA are: Foreign Collaboration and NRI Division, Foreign         IP&IC Division       acts as nodal point for the following
     Investment Implementation Authority (FIIA), Investment           Joint Commissions/Inter-Governmental Commissions,
     Promotion (IP) Cell and Entrepreneurial Assistance Unit          of which the Commerce and Industry Minister is the Co-
     (EAU) etc.                                                       Chairman:-

     Department of Industrial Policy & Promotion is responsible       i.     The Indo-Libyan Joint Commission for Economic,
     for non-resident investment in industrial and service                   Industrial, Scientific and Technical cooperation.
     projects. However, all matters relating to FDI policy are
     handled by this Department.                                      ii.    The   Indo-Hungarian        Joint   Commission      for
                                                                             Economic, Scientific and Technical Cooperation.
     Investment Promotion & International Cooperation
                                                                      iii.   The Indo-Belarus Joint Commission for Economic,
     (IP&IC) Cell                                                            Industrial, Scientific and Technical Cooperation.
     With the Department of Industrial Policy & Promotion
                                                                      iv.    The Indo-Swedish Joint Commission for Economic,
     assuming a promotional role, the Investment Promotion
                                                                             Industrial, Technical and     Scientific Cooperation.
     Cell was created in     1996 to give further impetus to
     facilitation and monitoring of investment and was,               v.     The Indo-Polish Joint Commission for Economic,
     inter-alia, given the responsibility of dissemination of                Trade, Scientific and technical cooperation.
     information about investment climate and opportunities
                                                                      The IP&IC Division continues to shoulder the responsibility
     in India, investment facilitation and compilation of
                                                                      of dissemination of information about investment
     sectoral policies, strategies and guidelines for the
                                                                      climate and opportunities in India, investment facilitation
     infrastructure sector. It has since been merged with the
                                                                      and compilation of sectoral policies, strategies and
     International Cooperation Division and is now known as
                                                                      guidelines for infrastructure sector. In view of promoting
     Investment Promotion and International Cooperation (IP
                                                                      cooperation and technological interface among Indian
     & IC) division.
                                                                      and Foreign companies/ governments, this Cell supports
     IP & IC Division continues to make efforts to increase           various investment promotion events based on the
     economic cooperation with developing, as well as                 potential for industrial and economic cooperation with
     developed countries, for mutual benefits, through                various countries.
     different fora, such as Joint Commissions/Joint
     Committees, other bilateral channels like interaction            Keeping the above in view,       two on-going schemes of
     with the delegations visiting the country, organizing visits     the 10 Plan, viz, ‘Undertaking Investment Promotion

  Department of Industrial Policy & Promotion

Activities’ (started in 1997-98) and ‘IC&JV- Investment                 friendly climate and opportunities available in
& Asia Enterprises in India’ (started from 2001-02) were                the country, by bringing out various publications
merged together during 2007-08 and named as “IC&JV                      / publicity material in print / electronic form,
- Asia Enterprises in India and Investment Promotion                    organizing investment promotion events, such as,
                                                                        Road-shows, Seminars, etc., in potential countries,
                                                                        in association with Industry Associations, Indian
The on-going schemes of the 10th Plan, viz, ‘Undertaking                Missions abroad and assisting the State Govts.
Investment Promotion Activities’ and ‘IC&JV- Investment                 in undertaking various investment promotion
& Asia Enterprises in India’ were evaluated by an                       activities;

independent agency viz. M/s Ernst & Young Pvt. Ltd. in          (ii)    Providing financial assistance to the Industry
2008, who recommended continuation of the scheme(s)                     Associations, etc. for organizing various investment
with certain modifications.                                             promotion and business meets in India and
                                                                        abroad/undertaking of various investment
Based on the recommendations of the Evaluating                          promotion activities;
Agency, it was decided to merge two Central Sector Plan
                                                                (iii)   To implement e-Biz. Project, which aims at providing
Schemes, namely, ‘Undertaking Investment Promotion
                                                                        a single window electronic Govt. – Industry
Activities’ and ‘International Cooperation & Joint
                                                                        interface, to establish a Govt.–to-Business (G2B)
Venture-Investment & Asia Enterprises in India’, into a
                                                                        portal with the aim of creating a one stop shop
single Central Sector Plan Scheme, named “Scheme for                    for convenient and efficient services to foreign
Promotion of Investment”, with an outlay of Rs. 74.50                   and domestic investors, business and industry,
crore, during the 11th Five Year Plan. The new Scheme                   by facilitating online filing of various approvals /
which was notified on 11.11.2008, has the following                     clearances, requests and periodical reports; and
                                                                (iv)    Creation of a dedicated investment promotion
                                                                        agency, namely ‘Invest India’.
(i)      Organization of Joint Commission Meetings;

(ii)     Organization      of   business   and    investment    The major activities undertaken by IP & IC Division during
         promotion events;                                      2009-10 are as under:-

(iii)    Project    Management,        Capacity     Building,
                                                                I-      Investment        Promotion      events/bilateral
         Monitoring & Evaluation;
(iv)     Establishment of G2B portal /e-Biz Pilot Project;
                                                                (a)     Major Investment Promotion events/Conferences/
(v)      Foreign Travel;
                                                                        Joint Commission Meetings Abroad:
(vi)     Setting up of country focus desks for promoting
                                                                (i)     World Economic Forum 2009:

(vii)    Multi media audio visual campaign; and                 A high level delegation led by CIM visited Davos to
                                                                participate in the World Economic Forum during January
(viii)   Creation of a dedicated investment promotion
                                                                28 to February 1, 2009.
                                                                (ii)    US-India Business Council (USIBC) Summit during
The main objectives of this scheme are :-                               June 16-20, 2009:

(i)      Promotion of investment, including FDI, by way         CIM visited the United States during June 16-20, 2009
         of dissemination of information on the investor        to attend the US-India Business Council (USIBC) Summit.

                                                               Annual Report 2009-10

     During the visit he met with key members of the US           meeting and had bilateral meetings with French Ministers
     Administration and the US Congress. He also met the          Ms. Anne Marie Idrac and Ms.Christine Lagarde.
     Secretary of State, US Secretary of Commerce and the
                                                                  (v)     OECD Ministerial Council Meeting June 25-26,
     US Trade Representative (USTR). Both sides had wide
     ranging discussions on the effects of the economic
     downturn on the two economies and the way ahead for          CIM participated in the OECD Ministerial Council
     WTO negotiations. The Minister also interacted with          Meeting held in Paris on 25-26 June, 2009 and had
     key industry leaders from India and the US during the        bilateral meetings with his counterparts from US, UK,
     Summit.                                                      Brazil, South Africa, China, Canada and Indonesia.

     (iii)   Visit of CIM to UK, June 22, 2009                    (vi)    Global India Business Meeting        in Munich,
                                                                          Germany, June 28-30, 2009:
     CIM led an official delegation to London, UK on
     June 22, 2009. During the visit, he had a bilateral          CIM visited Munich, Germany on 28-30 June, 2009
     meeting with Lord Mandelson, UK Secretary of State           to participate in the Global India Business Meeting at
     for Business, Enterprise & Regulatory Reform and             Munich. The meeting was hosted by the German State of
     addressed the CII – India Conference on “Managing            Baveria and CIM was the keynote speaker at the opening
     the Global Crisis”.                                          banquet on 28.6.2009.

     (iv)    Indo-French CEOs Forums Meeting, June 25-26,         (vii)   Visit of CIM to South Africa August 20-24, 2009:
                                                                  A delegation led by CIM visited South Africa during
     The Indo-French CEOs Forums Meeting was held on 25-          August 20-24, 2009. During the visit, CIM had bilateral
     26 June, 2009 in Paris, France. CIM participated in the      meetings with his counterparts in South Africa and he

                  Hon’ble CIM Shri Anand Sharma holding a dicussion with French Minister Ms Anne Marie Idrac

  Department of Industrial Policy & Promotion

addressed the India Business Forum, as well as South        CIM visited Moscow on September 29, 2009, during
African CEOs.                                               which the 3rd meeting of the Indo-Russian Trade Forum
                                                            on Trade & Investment was held in Moscow. He had a
(viii)   Meeting of India- South Korea- Joint Committee
                                                            bilateral meeting with the Prime Minister of Russia to
         on Investment Promotion September 3, 2009:
                                                            discuss issues of mutual interest.
The third meeting of the the India-Korea Joint Investment
                                                            (xiii)   Visit of Secretary (IPP) to USA, October 1-6,
Promotion Committee was held in Seoul on 3rd September
2009. The meeting was co-chaired by Shri Ajay Shankar,
Secretary, Industrial Policy & Promotion from the Indian    Secretary(IPP) visited USA from October 1-6, 2009.
side and Mr Kim Young Hak, the Vice – Minister for          He participated and addressed the US-India Energy
Trade & Energy, Ministry of Knowledge Economy, from         Partnership Summit in Washington D.C on October
the Korean side. The Meeting was held in a constructive     1, 2009. The objective of the summit was to evolve
and cordial atmosphere. The Committee deliberated           partnership and collaboration projects between academic
on bilateral matters pertaining to Trade Remedy             & research institutions in US and India, to take advantage
Cooperation, Industrial Training, Intellectual Property
                                                            of opportunities that are likely to arise as the world
Right Cooperation and Cooperation on Standards and
                                                            moves to a low carbon future. Secretary(IPP) had a high
Conformity Assessment.
                                                            level discussion with US Administration officers on IPR
(ix)     Official-cum-Business Delegation led by CIM to     on October 5-6, 2009. The issues discussed included IPR
         Sweden, Sept, 15-16, 2009:                         protection, enforcement and legislation in India, including
                                                            the copyrights amendment proposal.
CIM led an official-cum-business delegation to Sweden
on 15-16 September, 2009. The Business delegation was       (xiv)    CIM’s visit to USA, October 13-15, 2009:
coordinated by CII and headed by Mr N. Kumar, CII’s past    Delegation led by Hon’ble CIM visited Washington and
president. CIM underlined the major issues pertaining to    New York from 13-15 October, 2009. One of the
trade and Commerce, investment opportunities, as well       engagements of the CIM was breakfast roundtable
as bilateral cooperation, in the context of Indo-Swedish    meeting with CEOs/Senior Executives of US Companies.
Joint Commission for Economic, Industrial and Scientific
Cooperation, Also keeping in view Sweden’s Presidency       (xv)     CIM’s visit to Nepal & Egypt October 27-29,
of the EU currently .                                                2009:

(x)      Annual Emerging Markets Summit in London,          CIM led an official delegation to Kathmandu, Nepal on
         September 17-18, 2009:                             27.10.2009 for signing of the ‘Revision of Treaty of Trade &
                                                            Agreement of Cooperation’, to attend 4th SAFTA Ministerial
CIM visited London on 17-18 September, 2009 to              Council Meeting and to Cairo (Egypt) on 29.10.2009, to
participate in the Annual Emerging Markets Summit.          participate in an interactive brainstorming meeting on WTO
                                                            issues, held at the margins of the African Ministerial Meeting
(xi)     6th Annual India Investment Forum Meeting,         at Cairo (Egypt). On the sidelines of above meetings, CIM also
         New York, September 17-18, 2009:                   held business related meetings in Kathmandu and Cairo.
The 6th Annual India Investment Forum Meeting was held      (xvi)    Visit of Secretary(IPP) to USA, November 21-26,
in New York on September 17-18, 2009. Secretary(IPP)                 2009:
participated and delivered a special address in the
session on the “Indian Consumer Market”. SIPP also had      Secretary(IPP) visited USA as a member of the PM- led
a meeting with the Deputy USTR to discuss matters of        delegation to Washington DC, during November 21-26,
mutual interest & cooperation.                              2009, for signing of an MoU on bilateral cooperation
                                                            between the Office of Controller General of Patents,
(xii)    3rd meeting of the Indo-Russian Trade Forum
                                                            Design & Trade Marks, DIPP and the US Patent & Trade
         on Trade & Investment, Moscow September 29,
                                                            Marks Office as also signing of an MoU between “Invest

                                                                   Annual Report 2009-10

     The Union Minister of Commerce and Industry, Shri Anand Sharma the EU Trade Commissioner, Ms. Baroness Catherine
     Ashton and the Minister for Trade, Sweden, Dr Eva Bhorling at the CEOs Round Table, in New Delhi on November 06, 2009

     India” and “Invest in America”.                                 (ii)    25th India economic Summit – 8-10 November
                                                                             2009 at New Delhi:
     (xvii) Visit of Secretary(IPP) to Russia, December 6-8,
            2009:                                                    DIPP collaborated with the Confederation of Indian
                                                                     Industry (CII) and the World Economic Forum in organizing
     Secretary, DIPP visited Russia as a part of PM’s delegation     the 25th India Economic Summit – 8-10 November 2009 at
     December 6-8, 2009. During the visit, the meeting of            New Delhi. The Summit is a unique forum for government-
     Indo-Russia CEOs Council was held in the presence of the        industry-civil society interface to discuss new business
     Prime Ministers of India & Russia.                              opportunities and to strengthen existing partnerships.
                                                                     Over 700 business and government leaders, alongwith
     (b)    Major Conferences, Bilateral/Joint Commission
                                                                     other key stakeholders, gathered to discuss and explore
            Meetings and Investment Promotion events in India:
                                                                     opportunities and challenges under the theme “India’s
     (i)    India-EU Summit, November 6, 2009:                       Next Generation of Growth”

     The India-EU Business Summit was held in New Delhi              (iii)   8th Pravasi Bharatiya Divas, January, 7-9, 2010:

     on 6.11.2009. The CEOs Forum was the highlight of the           CIM addressed the gathering during Pravasi Bharatiya
     summit. Both sides expressed their intention to conclude        Diwas on January 8, 2010 in the Plenary II: “Interaction
     the India-EU FTA within a year. They also agreed to co-         with PIO Ministers and Dignitaries : Diaspora – Interest
     operate in concluding the WTO Doha Development                  and Concerns.”
     Round negotiation in 2010. More than 50 European
                                                                     (iv)    Partnership Summit, 2010
     business delegates had networking meetings with about
     250 Indian business delegates.                                  “Confederation of Indian Industry (CII) in association
                                                                     with the Ministry of Commerce & Industry organized

  Department of Industrial Policy & Promotion

                        Hon’ble CIM Shri Anand Sharma Addressing ‘The Partnership Summit 2010’.

the Partnership Summit, 2010 at Chennai Trade Centre,         delegation, comprised of senior most US Executives,
Chennai during January 22-24, 2010. Hon’ble Commerce          representing a cross section of the world’s top
& Industry Minister was the Chairman of the Summit            companies.
and addressed the Inaugural Session - “Global Agenda
- Imperatives of Economic Integration in a Globalization      (iv)   Deputy Prime Minister of Russia, November 10,
World.” The Summit was attended by 25 Ministrers from                2009:
overseas, 25 international business delegations and 289
                                                              CIM met the Deputy Prime Minister of Russia on
international delegates in addition to about 800 delegates
from India.”                                                  November 10, 2009. Bilateral issues relating to Trade and
                                                              Investment were discussed during the meeting.
(c)     Visiting Delegations/Dignitaries:
                                                              (v)    Meeting with Colombian Minister, November 10,
(i)     Visit of Poland Delegation, October 9, 2009:                 2009:

A delegation from Poland, headed by Mr.Marek Sowa,            CIM met the Colombian Minister and signed a Bilateral
Member of the Malopolaska Region, visited New Delhi on        Investment Promotion & Protection Agreement (BIPA)
9th October, 2009 and had a meeting with Secretary (IPP).
                                                              between India and Colombia, during the meeting on
(ii)    Visit of French Minister Ms Anne Marie Idrac,         November 10, 2009.
        October 10, 2009:
                                                              (vi)   CIM’s meeting with delegation led by Prime
A French business delegation led by French Minister –                Minister of Canada, November 17, 2009:
Ms Anne Marie Idrac visited New Delhi on 26.10.2009
and held discussions with CIM and Secretary (IPP).            The delegation led by Prime Minister of Canada had
                                                              a meeting with CIM Minister on November 17, 2009
(iii)   USIBC Executive delegation, November 9, 2009:         to discuss bilateral commercial relations and the
CIM had a meeting with the USIBC Executive delegation         Canada-India Comprehensive Economic Partnership
led by Ms.Indra K. Nooyi on 9th November, 2009. The           Agreement.

                                                                  Annual Report 2009-10

     (d)    Other Important Events/Meetings:                        Procedures, State policies, projects on offer, list of
                                                                    investment approvals, etc. is provided. Most of the
     (i)    FIIA meeting of Italy on 27.5.2009 under the
                                                                    publications of the Department are also available on this
            chairmanship of SIPP:
                                                                    website. These include the ‘Manual on Foreign Direct
     Secretary (IPP), held a meeting of Foreign Investment          Investment in India-Policy & Procedures’, ‘Entry Strategies
     Implementation Authority (FIIA), for Italian Investors, on     for Foreign Investors’, ‘NRI Ready Reckoner’, ‘Investing in
     27.5.2009, at Udyog Bhawan, New Delhi. Senior Officers         India’, ‘SIA News Letter-monthly issue’, ‘SIA Statistics-
     from various Central Ministries/Departments, State             monthly issue’ etc. and can be downloaded from the
     Governments, RBI, officials from the Italian Embassy           website.
     in New Delhi and Senior representatives of Italian             Besides the above, German, French, Spanish, Italian,
     Companies in India attended the meeting. All concerned         Chinese, Russian and Korean versions of the Manual
     officers ensured suitable action on the issues raised by       on ‘Foreign direct Investment in India – Policy and
     the Italian investers.                                         Procedures’ have also been uploaded on this website. The
                                                                    status of applications filed in SIA is also available through
     (ii)   Visit of JCCII delegation, February, 2009:
                                                                    links available at the home page of this website. The
     A delegation of the Japan Chamber of Commerce &                text of Press Notes/Releases, various application forms,
     Industry in India (JCCII), led by its President, Mr. M.        addresses of relevant websites, etc are other important
     Yamamoto, called on Secretary, DIPP in February 2009           features of DIPP website. A user friendly design of the
     and submitted a list of wide-ranging suggestions for the       website has been adopted.
     Government of India, for bringing about efficiency and
                                                                    The website has a facility for interactive guidance and
     transparency, simplifying procedures and improving
                                                                    on-line chat for the benefit of investors. Those seeking
     the business environment for Japanese Investors and
                                                                    information /clarifications on-line can join the chat
     companies in India. Secretary,DIPP took up a follow up
                                                                    session, on all working days, between 1100 hrs to 1200
     meeting on 16th October, 2009 to review the action taken
                                                                    hrs and 1600 hrs to 1700 hrs. A Bulletin board facility
     and discussed the further course of action with JCCII.
                                                                    is also available for seeking information/clarifications
                                                                    on government policies & procedures. More than 500
     II.    Publications:                                           queries are received and replied every month at this
     As part of its investment promotion role and with a view       site. This popular product contains relevant details of
     to providing latest updates on policies / procedures,          the FDI manual and investment opportunities in various
     new issues of various publicity material, in the form of       infrastructure sectors. Information under the Right to
     booklets & flyers, have been brought out/updated. These        Information Act has also been hosted on the website.
     include:                                                       Information on Departmental reports and activities is
                                                                    also provided through this website.
     l      Manual on Investing in India-Policy & Procedures
            (in English, Russian and Chinese languages)             IV.    Creation of a Dedicated Investment
     l      FDI Policy 2010 (under Printing)                               Promotion Agency :‘Invest India’:
     l      Ready Reckoner for NRIs.                                The Cabinet accorded its approval in September 2009
     l      Taxation in India-in-English (under printing)           for the formation of a ‘not-for-profit’ company named
                                                                    ‘Invest India’, under Section 25 of the Companies Act,
     III.   Dissemination of Investment information:                1956. This company is a joint venture between the
                                                                    Government of India, Federation of Indian Chambers
     Through the DIPP website (, information        of Commerce and Industry (FICCI) and the State
     about industrial policy and procedures, FDI Policy &           Governments. The authorized capital of the company

    Department of Industrial Policy & Promotion

is Rs. 10 crore and the initial paid up capital is            standards, with emphasis on expanding the manufacturing
Rs. 1 crore. The Company will promote foreign investments     and services base and develop DMIC as the ‘Global
in a focused, comprehensive and structured manner,            Manufacturing and Trading Hub’.        The Project aims at
through projecting India as an attractive investment          doubling the employment potential, tripling the industrial
destination for foreign investors and acting as the first     output and quadrupling exports from the region, in the
reference point for investors. It will facilitate investors   first five years. DMIC has a potential to attract investments
in identifying and realizing investment opportunities         worth US$90 Billion in various industry and infrastructure
by making available sector-wise consultants and               initiatives through the Public Private Partnership (PPP)
coordinating with the state governments. Through its          route. The Project Influence Area of DMIC covers parts of
interaction with intellectuals and industry organizations     the States of Uttar Pradesh, Haryana, Rajasthan, Madhya
on investment issues, it will provide feedback to the         Pradesh, Gujarat and Maharashtra.
Central and State governments on policy initiatives.
                                                              The Project is proposed to be developed in phases. In
V      Delhi – Mumbai Industrial Corridor (DMIC)              the first phase, 12 nodes – 6 Investment Regions and
                                                              6 Industrial Areas, are proposed to be developed, with
                                                              requisite industrial infrastructure like industrial estates,
With the objective of creating a strong economic base,        knowledge hubs, IT/ITES hubs, logistics hubs and physical
with a globally competitive environment and state-of-the-     infrastructure. An Investment Region (IR) would be a
art infrastructure to activate local commerce, enhance        specifically delineated industrial region with a minimum
foreign investments and attain sustainable development,       area of around 200 square kilometers (20,000 hectares)
the concept of the Delhi – Mumbai Industrial Corridor         and its maximum limit would depend on the specific site’s
(DMIC) was conceived during the visit of Hon’ble Prime        potential, while an Industrial Area (IA) would be developed
Minister to Japan in December 2006.       Government of       with a minimum area of around 100 square kilometers
India accorded ‘in principle’ approval for the Project        (10,000 hectares) for the establishment of manufacturing
outline of DMIC on 16 August 2007.
                                                              facilities, for domestic and export led production, along
                                                              with the associated services and infrastructure. Another 12
DMIC is proposed to be developed along the alignment
                                                              nodes have been tentatively identified for development,
of 1483-km long Dedicated Multi-modal High Axle Load
                                                              during Phase II of the project.
Freight Corridor (DFC) between Dadri (in UP) and JNPT (Navi
Mumbai), as a Model Industrial Corridor of international      With a view to giving overall guidance, planning and
                                                                     approvals, an Apex Monitoring Authority has been
                                                                     set up with the Finance Minister as Chairperson
                                                                     and    five   Union    Ministers/Dy.    Chairperson,
                                                                     Planning Commission/Chief Ministers of six States
                                                                     as Members. Five more Union Ministers are
                                                                     Invitees. A similar monitoring mechanism at the
                                                                     State level is also in place.

                                                                     Delhi – Mumbai Industrial Corridor Development
                                                                     Corporation (DMICDC), the central SPV, has been
                                                                     incorporated with an authorized equity base of
                                                                     Rs.10 Crores (49% equity participation by GoI,
                                                                     41% by IL&FS and 10% by IDFC). DMICDC is
                                                                     envisaged for project development, coordinating
                    Signing of MOU with UP                           the implementation of the numerous projects and

                                                                    Annual Report 2009-10

     also raising finances, wherever needed. Secretary, DIPP          states and districts across India during its second stage.
     is the ex-officio Chairman of DMICDC.                            Operations in the second stage will be through a public-
                                                                      private partnership (PPP) mode. Modalities for the
     DMICDC had signed MoUs with the States of Gujarat,               operation of the second stage are being finalized.
     Madhya Pradesh, Haryana and Rajasthan during 2008-09
     for preparation of perspective and development plans             Doing Business
     for each Node jointly. MoUs with the Government of
                                                                      Bringing transparency in business regulations and
     Maharashtra and Uttar Pradesh have been signed during
                                                                      improving the business environment in the country
     2009 –10.                                                        has been the endeavour of DIPP. A series of meetings
     24 Early Bird Projects (EBPs) were finalized with 4              with various agencies involved in the process has been
                                                                      convened in this direction. A meeting of State Industry
     projects each in the States in Gujarat, Madhya Pradesh,
                                                                      Secretaries was held in October 2009, wherein they were
     Haryana and Uttar Pradesh 3 projects in Rajasthan and 5
                                                                      requested to adopt best regulatory practices available
     in Maharashtra. The Japanese side has also announced
                                                                      in the country to create a better business environment.
     five Early Bird Projects during the visit of Hon’ble Prime
                                                                      A conference of State Industry Ministers was also held
     Minister to Japan in October 2008.
                                                                      in November, 2009, to deliberate on improvement of
     The PMO has constituted a Monitoring Committee on                regulatory environment in the country. The suggestions
     5th June 2009 to monitor the progress of DMIC and DFC            and ideas that came up in the meeting are under active
     Projects under the Chairmanship of Principal Secretary to        consideration for implementation. In consultation with
                                                                      DIPP, the Dept. of Legal Affairs has drafted a Bill for setting
     PM. Chairman, Railway Board, Foreign Secretary, Finance
                                                                      up Commercial High Courts in all the States for speedy
     Secretary and Secretary, DIPP are its other members.
                                                                      settlement of commercial disputes. These efforts are
     Chief Secretaries of the participating states in the DMIC
                                                                      expected to bring about fruitful results for doing business
     are invited as and when required.
                                                                      in the country.
     E -Biz project                                                   World Bank compares various countries on parameters
                                                                      related to the ease of starting and operating a business
     Under the National E-Governance Plan (NEGP) of the
                                                                      through out its life cycle. In its report on Doing Business
     Government of India, DIPP has set up the eBiz project
                                                                      2010, India has been placed at 133rd position, out of 183
     as a Mission Mode Project (MMP). The contract for this
                                                                      countries surveyed.
     project has been awarded to M/s Infosys Technologies
     Limited, Bangalore. The eBiz portal will be a single
     window service for the end users. It will provide a number
     of services to the end users, covering the entire life cycle     Work relating to the new website of DIPP is currently
     of their operations. This will enhance India’s business          underway. This new site will replace the existing web
     competitiveness through a service oriented, event-driven         site. The home page of the portal was launched by the
     G2B interaction. The Pilot phase of the project covers           Hon’ble CIM on 17th November, 2009. The content pages
     9 Central Govt. Ministries/Depts./Offices and 5 State            and other information are being updated. The new
     Governments (Haryana, Tamil Nadu, Andhra Pradesh,                website is likely to be available for the public by the end
     Maharashtra and Delhi).                                          of the year.

     The project is scheduled to be completed over a period           Meeting of the State Industry Ministers
     of 10 years. 29 services will be available during the first
     3 years (pilot phase) of the project. Through this portal,       A meeting of the State Industry Ministers was held on 17th
     the end users will have easy access to the services offered      November 2009 in New Delhi, under the Chairmanship of
     by the Central, State and Local Governments for their            Hon’ble CIM, Shri Anand Sharma. The meeting actively
     business related needs. The Beta Launch of the Project           deliberated on issues being faced by the manufacturing
     was held in December, 2009. The Project will cover all           sectors, especially the export oriented labour intensive

 Department of Industrial Policy & Promotion

sectors, which have been adversely affected by the            initiate action on fruitful suggestions that emerged in the
challenging global economic environment.                      Meeting.

The Ministers presented the difficulties and bottlenecks      A core group of Officers is being created in DIPP to follow
in the industrial development of their respective states.     up and implement the decisions taken in the meeting.
To discuss and remove such bottlenecks and to ensure
a better growth of the economy, it was decided that
                                                              Industrial Park Scheme
the State Industry Ministers may now meet every year.         This Department undertakes activities leading to
Accordingly, it has been decided to make the State Industry   infrastructure development for industries. The Industrial
Ministers meeting an annual feature in the DIPP calendar.     Park Scheme is one major initiative towards this goal.
It was also decided to formulate a National Manufacturing     The objective of the scheme is to encourage private
Policy, to be unveiled at the next meeting of the State       investment in development of high quality infrastructure
Industry Ministers. Linking Industrial Corridors for better   in an integrated manner. The scheme, which originally
transportation and preparation of a blue print of core        started as the Industrial Park Scheme, 1999, was revised
competencies of all the States for industrial development     and renotified by this Department on 01-04-2002 as
was deliberated in detail. The National Manufacturing         the Industrial Park Scheme, 2002. Under this Scheme,
Competitiveness Council (NMCC) will initiate dialogues        tax exemption under Section 80-IA of Income Tax Act,
with State Governments in this regard. It was also agreed     1961 is allowed for a maximum consecutive period of 10
to create a core group of State Industry Ministers with       years within a total period of 15 years, from the date of
suitable regional representation to further discuss and       commencement of the park, to the undertakings which

          Hon’ble CIM Shri Anand Sharma, MOS (Industry) Shri Jyotiraditya Scindia and the then Secretary IPP,
         Shri Ajay Shankar in Conference of State Industry Ministers held in New Delhi on 17th November, 2009

                                                                  Annual Report 2009-10

     develop, develop and operate or maintain and operate           for a further period of 3 years i.e. up to March, 2009.
     an Industrial Park, during the period beginning on the 1st     Accordingly, a notification was issued by the Central
     day of April , 1997 and ending on the 31st day of March,       Board of Direct Taxes, Department of Revenue, Ministry
     2006.                                                          of Finance on 8th January, 2008 in respect of the industrial
                                                                    parks set up on or after 1st April, 2006 but not later than
     While the applications eligible under the automatic route
                                                                    31st March, 2009.
     are considered and approved by the Department itself,
     an Empowered Committee under the Chairmanship
                                                                    Foreign Investment Promotion Board (FIPB)
     of Secretary of this Department,            consisting of
     representatives from the CBDT and the concerned                Activities
     State Government, considers all applications falling
                                                                    Foreign Investment Promotion Board (FIPB) was
     under the non - automatic route which are not covered
                                                                    reconstituted in 2003 under the Chairmanship of the
     under eligibility criteria laid down for automatic route.
                                                                    Finance Secretary. FIPB includes, inter-alia, Secretary
     Under this scheme, this Department has granted 283
                                                                    (IPP), as a permanent Member of the Board. Meetings
     approvals till 31st December, 2009 (including four cases
                                                                    of the FIPB are held on bi-monthly basis. DIPP examines
     of amendments to the earlier approvals). Out of these,
                                                                    all proposals listed before the Board, for providing
     233 are live approvals, with a projected investment of
                                                                    inputs from the FDI policy angle. The Secretariat for
     Rs.17,122.10 crore. In the remaining 46 cases, approvals
                                                                    FIPB functions in the Ministry of Finance (Department
     earlier accorded were withdrawn. The table 4.1 shows
                                                                    of Economic Affairs). However, applications involving
     year-wise details of the number of meetings of the
                                                                    investment by NRI investors, as also proposals seeking
     Empowered Committee and the number of approvals
                                                                    approval for Foreign Direct Investment (FDI) in Single
     given under both the Industrial Park Schemes.
                                                                    Brand Retail Trade, are received and processed in
                               table 4.1                            Department of Industrial Policy & Promotion (DIPP).
          Year         Number of          Number of total           During 2009-2010, (as on 31st December, 2009), 12
                      meetings of      Approvals (both under        applications were received under the NRI Scheme and
                      Empowered          Automatic Route            14 applications were received under the category of
                      Committee         and Non- Automatic
                                                                    Single Brand Retail Trade.
      1999-2000            2                              14
                                                                    Public Relations and Complaints Section
      2000-2001            1                              10
      2001-2002            -                              11        The Public Relations and Complaints Section (PR&CS)
      2002-2003            1                               9        functioning under the SIA provides assistance to
      2003-2004            1                              13        prospective entrepreneurs with respect to licensing policy
                                                                    and procedures, foreign technical collaboration etc. The
      2004-2005            3                              61
                                                                    Section attends to enquiries from entrepreneurs relating
      2005-2006            4                              55
                                                                    to investment decisions, provides information regarding
      2006-2007            4                              99        status of applications filed for various industrial approvals
      2007-2008            1                               1        and assists entrepreneurs and investors through other
      2008-2009            1                              10        advisory services.
      2009-2010            2                                -
                                                                    A separate computerized “Information Facilitation
         total           20                283( includes four       Counter” has been set up for attending to public
                                                                    enquiries/grievances. The Information Facilitation
                                                                    counter, functioning under the overall supervision of the
     Hon’ble Finance Minister, in his budget announcement
                                                                    Joint Secretary (Public Grievances), provides information
     of 2006-07, had extended the benefits of this scheme

 Department of Industrial Policy & Promotion

on all matters relating to the Department. The grievances       Since the announcement of New Industrial Policy until
are also acknowledged at the counter.                           the end of December,2009, 79,938 IEMs had been filed
                                                                with the Government for establishing new units, for
More than 1500 entrepreneurs visited the Information
                                                                manufacture of new articles and for expansion of existing
Facilitation Counter during the period April, 2009 to 31st
                                                                units, etc. These IEMs had a proposed investment of
December, 2009. The Counter receives a large number
                                                                over 5755 thousand crore and employment for more
of enquiries, including telephonic ones, every day, from
                                                                than 1.7 crore persons. Statewise and sectorwise lists of
entrepreneurs seeking information, including on the
                                                                IEMs during the last five years on a year-wise basis are at
status of pending proposals. All enquiries/grievances are
                                                                Appendices V and VI.
attended to expeditiously and clarifications furnished to
the satisfaction of entrepreneurs. During April, 2009, to       Since the inception of the IEM scheme, till December,
December, 2009 more than 3500 Industrial Entrepreneurs          2009 a total of 8468 units have formally intimated
Memorandum (IEM) applications were received and                 commencement of commercial production. The
Acknowledgements issued. In addition, almost an equal           investment reported in respect of these IEMs is
number of Amendments and Acknowledgements for Part              Rs. 2,88,110 crore. Statewise report of implementation
‘B’ were also issued.                                           of IEMs for the period August 1991 to December, 2009 is
                                                                at Appendix VII.
Para (VI) Industrial Entrepreneur Memorandum
(IEM)                                                           Industrial Licence Applications
The Government’s liberalization and economic reforms            During the period January,2009-December 2009, a
programme aims at rapid and substantial economic growth,        total of 56 applications were received for grant of
and integration with the global economy in a harmonized
                                                                Industrial Licence. 78 applications received earlier were
manner. The industrial policy reforms have reduced the
                                                                pending for grant of licence as on 1.1.2009. Out of the
industrial licensing requirements, removed restrictions on
                                                                134 applications thus available, 26 applications were
investment and expansion, and facilitated easy access to
foreign technology and foreign direct investment. With          disposed of till the end of December, 2009, leaving a
the introduction of Micro, Small & Medium Enterprises           balance of 108 applications. The following Table 4.2 gives
Development Act, 2006 this Department is now                    a comparative picture of the disposal of applications,
acknowledging IEM applications where investment in Plant        in respect of the old, as well as fresh applications, for
Machinery is more than Rs.10 crore.                             industrial licence, during the years 2008 to 2009(up to
All Industrial undertakings, exempt from obtaining
an industrial licence, are required to file an Industrial                               table 4.2
Entrepreneur Memorandum (IEM). An acknowledgement                    Status of application for           2008         2009
                                                                        Industrial Licence            (January-    (January-
is issued immediately on receipt of Part ‘A’ of the IEM form
                                                                                                     December)    December)
and no further approval is required, under the Industries
                                                                Applications awaiting disposal as
(D&R) Act, 1951. Immediately after commencement of                                                       143           78
                                                                on 1st January of the year
commercial production, Part ‘B’ of the IEM has to be filed.
                                                                Applications received/
                                                                                                          93           56
Filing an IEM is primarily for the purpose of collecting data   registered during the year
about the delicensed sector on investment, employment           Total number of applications             236         134
and type of industrial activity. It is also for the purpose     Number of applications disposed
                                                                                                         158           26
of conducting a limited post facto scrutiny of the              during the year
unit, mainly to preclude them from manufacturing a              Balance pending applications as
compulsory licensable/SSI reserved item and/or from             on 31st December of 2008 and              78         108
operating in a restricted location.                             2009.

                                                                    Annual Report 2009-10

     Industrial Investment Intentions                                 which are consumed / utilized to obtain export products,
                                                                      may also be allowed under the scheme.
     The complete Industrial Investment scenario covers the
     Industrial Entrepreneur Memoranda for the delicencesed           Applications under this scheme are considered by the
     sector and Letters of Intent and Direct Industrial Licences      Seven Norms Committees in the Office of Director
     for licensable sector. Statewise and Sectorwise analysis         General of Foreign Trade at Head Quarters. The Technical
     of Industrial Investment Intentions from August, 1991            Support Wing provides technical information on these
     to December, 2009 is given at Appendices ‘VIII’ and ‘IX’         applications so as to arrive at justified requirement of
     respectively.                                                    different inputs for export production.

                                                                      (C) Work related to Duty Entitlement Pass Book Scheme:
     Foreign Technology Collaborations
                                                                      The objective of the Duty Entitlement Pass Book Scheme
     Foreign Technology collaborations are permitted either           is to neutralize the incidence of customs duty on the
     through the automatic route under delegated powers               import content of the export product. The custom duty
     exercised by the RBI or by the Government. Major                 paid on fuel as per SION is also factored in the DEPB
     sectors attracting foreign technology collaborations             rates. The neutralization is provided by way of grant of
     are Electrical equipments (including electronics &               duty credit against the export product.
     software),Industrial machinery, Chemicals (other than
     fertilizers) and Transportation industry (including              The representative of TSW attends the DEPB meeting in
     automobiles). These four sectors account for 47 percent          DGFT in order to provide technical input in the decision
     of the total collaborations. During the period August,           making process. This may include essentiality of the input
     1991 to October, 2009, 8080 foreign technology                   as well as classification of a product under a given entry
     collaborations were approved/filed. Industry wise details        in the list notified by DGFT for the purpose of permitting
     of total foreign technical collaborations approved by the        credit to the exporter
     RBI and the Government is given at Appendix – X.
                                                                      (D) Work related to Import of Restricted Items under
     Technical Support Wing (TSW) in the Department                   Foreign Trade Policy: All second hand goods, excepting
     of Industrial Policy and Promotion is looking after              second hand capital goods and other items specifically

     the following items of work:                                     notified, as restricted, are restricted for imports and
                                                                      may be imported only in accordance with the provisions
     1.     Technical advice to the Directorate General of            of Foreign Trade    Policy, ITC (HS), Handbook (Vol.1),
            Foreign Trade(DGFT)                                       Public Notice or an authorisation issued in this behalf.
                                                                      Applications for import of restricted items are considered
      (A) Work related to fixation of input/output norms: To
     facilitate the users of Duty Exemption Scheme and DEPB           by Exim facilitation Committee in the DGFT.           The
     Scheme, an exercise is undertaken on a continuous basis          representative of TSW is a permanent member of this
     for fixation of standard input/output (SION) and value           Committee.
     addition norms. Efforts are being made to fix the norms          (E) Work related to Export Promotion Capital Goods
     for additional items and to review the existing norms, so as
                                                                      Scheme (EPCG): As per the current Foreign Trade policy,
     to make duty exemption scheme effective and hassle free.
                                                                      capital goods for pre production, production and post -
     (B) Work related to Import of Raw Material, Component            production (including CKD/SKD thereof as well as computer
     etc. under the Duty Exemption Scheme: An Advance                 software systems) are allowed for import at zero percent
     Authorization is issued under Duty Exemption Scheme to           Customs duty, subject to an export obligation, equivalent
     allow import of inputs, which are physically incorporated        to 6 times of duty, saved on capital goods imported under
     in the export product (making normal allowance for               EPCG scheme, to be fulfilled over a period of 6 years,
     wastage). In addition, fuel, oil, energy, catalysts etc.         reckoned from the date of issue of authorization. The

     Department of Industrial Policy & Promotion

concessional 3 percent duty EPCG scheme allows import        iii)   TSW coordinates any reference received from
of capital goods at 3 percent custom duty, subject to an            Department of Revenue (Duty Draw Back
export obligation equivalent to 8 times of duty, saved on           Scheme) and gives necessary inputs for this
import of capital goods imported under EPCG scheme, to              Scheme. In addition to above, various other
be fulfilled over a period of 8 years, reckoned from the            Government agencies such as Drug Controller,
date of issue of authorization.                                     Bureau of Indian Standards etc. seek technical
                                                                    advice from this Division. TSW also sends
Under the scheme, manufacturer exporters, with
                                                                    technical advice to coal/rail authorities for
or     without   supporting   manufacturer(s)/vendor(s),
                                                                    allotment of coal wagons in favour of a group of
merchant exporters tied to supporting manufacturer(s)
and service providers, are eligible to import capital
goods. Import of capital goods is subject to the Actual
                                                             Industrial Policy Relating to Environment-Energy
User condition, until such time the export obligation is
                                                             Conservation Technology Development and
                                                             Quality Control.
Applications under this scheme are considered by Export
Promotion Capital Goods Committee in the Office of the       The Department has taken several initiatives for facilitating
Directorate General of Foreign Trade at headquarters. The    conservation of natural resources and environmental
Technical Support Wing provides technical information        improvement in the Industrial Sector. The following
                                                             paragraphs are some of the major initiatives taken in this
on these applications on the need of capital goods to be
imported and product to be exported.
                                                             (i)    Items of manufacture which are hazardous or
2.      Imports under Indo – US Memorandum of
                                                                    which may have serious implications on pollution,
                                                                    have been retained under compulsory licensing.
Import of specified capital goods, raw material,                    For these industries, the industrial approvals
components, etc. from the United States of America is               carry an additional condition that the safety of
                                                                    plants and adoption of safety measures would
subject to US Export Control Regulations. US suppliers
                                                                    be ensured before commencing commercial
of such items are required to obtain export authorization
on the basis of import certificate furnished by the Indian
importer to the US supplier. TSW issues such certificate     (ii)   All approvals i.e. Industrial Licences, foreign
for organized sector units registered under dIPP, except            investment approvals, technology approvals are
for import of computers and computer based systems.                 subject to the conditions that the entrepreneurs/
                                                                    investors shall obtain necessary clearance
3.      Miscellaneous Work handled by TSW:                          from the Pollution Control Board and would
                                                                    separately obtain all approvals required under
i)      TSW has prepared guidelines for handling of metal
                                                                    the various statues of Ministry of Environment
        scrap by Indian Users as decided in the meeting
                                                                    and Forests.
        of COS. TSW is also representing DIPP in the
        meetings of Inter-Ministerial group in the O/o       iii)   For approvals governing technology transfer, use
        DGFT for enlistment of Pre-Shipment Inspection              of environment friendly Modern technology such
        Agencies for metal scrap.                                   as Non-CFC based technology for refrigeration
                                                                    and air conditioning, caustic soda etc. are being
ii)     TSW is representing DIPP in the Technology                  encouraged. The Department is represented on
        Development Board (TDB) and Technical Appraisal             the Ozone Cell and Genetic Engineering Approval
        Committee (TAC) meetings held in Department of              Committee (GEAC ) of the Ministry of Environment
        Science & Technology.                                       and Forests.

     CHAPTER 5                                                      Annual Report 2009-10

     Foreign Direct Investment

     The role of Foreign Direct Investment (FDI) in the               Major Policy Initiatives (During 2009-2010)
     upgradation of technology, skills and managerial
     capabilities is now well accepted. Additional investments,
                                                                      Press Note 1(2009)
     over and above the investments possible with the                 Foreign investment in Print Media dealing with
     available domestic resources, help in providing much
                                                                      news and current affairs
     needed employment opportunities.
                                                                      (a)   FDI up to 100% is permitted with prior approval of
     Fdi Policy:                                                            the Government in publication of facsimile edition
                                                                            of foreign newspapers provided the FDI is by the
           Government has put in place a liberal and investor-             owner of the original foreign newspaper(s) whose
            friendly policy for FDI, under which FDI, upto 100%,
                                                                            facsimile edition is proposed to be brought out in
            is permitted on the automatic route, in almost all
                                                                            India subject to the following conditions:
            sectors/activities, except the following :
                                                                            (i)    the entity is incorporated or registered in
            (i)     Proposals where more than 24% foreign
                                                                                   India under the Companies Act, 1956; and
                    equity is proposed to be inducted for
                    manufacture of items reserved for small-                (ii)   the entity would be subject to the
                    scale sector;                                                  Guidelines for publication of newspapers
                                                                                   and periodicals dealing with news and
            (ii)    Proposals where the foreign investor
                                                                                   current affairs and publication of facsimile
                    has an existing joint venture/ technical
                                                                                   edition of foreign newspapers issued by
                    collaboration/ trademark agreement in
                                                                                   Ministry of I & B.
                    the ‘same’ field of activity and attracts
                    the provision of Press Note 1 (2005               (b)   Foreign investment, including FDI and investment
                    Series).                                                by NRIs/PIOs/FII, up to 26%, is permitted with
                                                                            prior approval of the Government for publication
           FDI is prohibited in only the following activities:
                                                                            of Indian editions of foreign magazines dealing
            i.      Retail Trading (except single brand product             and news and current affairs.

            ii.     Atomic Energy;                                    Press Note 2 (2009 Series)
            iii.    Lottery Business;
                                                                      Guidelines for calculation of total foreign
            iv.     Gambling and Betting;
                                                                      investment i.e. direct and indirect foreign
            v.      Business of chit fund;                            investment in Indian companies
            vi.     Nidhi Company;

            vii.    Trading in Transferable Development Rights
                                                                      Salient features
                    (TDRs); and                                       l     All investment directly by a non-resident entity
            viii.   Activities/sectors not open to private sector           into the Indian company would be counted
                    investment.                                             towards foreign investment.

    Department of Industrial Policy & Promotion

l      The foreign investment through the investing           from resident Indian citizens to non-resident
       Indian company would not be considered for             entities
       calculation of the indirect foreign investment in
       case of Indian companies which are ‘owned and
                                                              Salient features:
       controlled’ by resident Indian citizens and Indian
       Companies which are owned and controlled               Government/FIPB approval will be required in sectors
       ultimately by resident Indian citizens.                with caps where:

l      For cases where this condition is not satisfied or     l     An Indian company is being established with
       if the investing company is owned or controlled              foreign investment and is owned by a non-resident
       by ‘non resident entities’, the entire investment            entity; or
       by the investing company into the subject Indian       l     An Indian company is being established with
       Company would be considered as indirect foreign              foreign investment and is controlled by a non-
       investment.                                                  resident entity; or
                                                              l     The control of an existing Indian company, currently
l      As an exception, the indirect foreign investment
                                                                    owned or controlled by resident Indian citizens and
       in only the 100% owned subsidiaries of operating-
                                                                    Indian companies, which are owned or controlled
       cum-investing/investing companies will be limited
                                                                    by resident Indian citizens, will be/is being
       to the foreign investment in the operating-cum-
                                                                    transferred/passed on to a non-resident entity, as a
       investing/ investing company. This exception has             consequence of transfer of shares to non-resident
       been made since the downstream investment of a               entities through amalgamation, merger, acquisition
       100% owned subsidiary of the holding company is              etc; or
       akin to investment made by the holding company
                                                              l     The ownership of an existing Indian company,
       and the downstream investment should be a
                                                                    currently owned or controlled by resident Indian
       mirror image of the holding company.
                                                                    citizens and Indian companies, which are owned or
l      In the I& B and Defence sectors where the sectoral           controlled by resident Indian citizens, will be/is being
                                                                    transferred/passed on to a non-resident entity as a
       cap is less than 49%, the company would need
                                                                    consequence of transfer of shares to non-resident
       to be ‘owned and controlled’ by resident Indian
                                                                    entities through amalgamation, merger, acquisition
       citizens and Indian companies, which are owned
       and controlled by resident Indian citizens. For this
       purpose, the equity held by the largest Indian
       shareholder would have to be at least 51% of the       Press Note 4 (2009 Series)
       total equity.
                                                              Policy for downstream investment by Investing
l      Any foreign investment already made in
                                                              Indian Companies
       accordance with the guidelines in existence prior
       to issue of this Press Note would not require any      l     The guidelines clarify the need for obtaining
       modification to conform to these guidelines. All             government/FIPB approval (or otherwise) for
       other investments, past and future, would come               foreign investment into Indian companies, which
       under the ambit of these new guidelines.                     can be either:

                                                                          Operating companies or
Press Note 3 (2009 Series)
                                                                          Investing companies or

Guidelines for transfer of ownership or control                           Operating-cum-investing companies or

of Indian companies in sectors with caps                                  Neither of the above

                                                                    Annual Report 2009-10

     It has been clarified that operating companies, as               Enterprises (MSE) and in Industrial Undertaking
     well as operating-cum-investing companies, need to               manufacturing items reserved for SSI/ MSE –
     comply with relevant sectoral conditions on entry route,
     conditionalities and sectoral caps

     Investing companies, as well as companies which are              It has been clarified that:
     neither investing nor operating companies, require               l      The present policy on FDI in MSE permits FDI
     prior Government/FIPB approval for infusion of foreign
                                                                             subject only to the sectoral equity caps, entry
     investment, regardless of the amount or extent of foreign
                                                                             routes and other relevant sectoral regulations
                                                                      l      Any industrial undertaking, with or without FDI,
     Downstream investments by investing companies, as well
                                                                             which is not a MSE, manufacturing items reserved
     as operating-cum-investing companies, would need to
     comply with relevant sectoral conditions on entry route,                for manufacture in the MSE sector (presently
     conditionalities and sectoral caps                                      21 items) as per the Industrial Policy, would
                                                                             require an Industrial Licence under the Industries
     Benefits expected from adoption of these                                (Development & Regulation) Act, 1951, for such
     guidelines:                                                             manufacture. Such an industrial undertaking would
                                                                             also require prior approval of the Government
     l      The guidelines would ensure application of simple,
            homogenous and uniform norms for calculation                     (FIPB) where foreign investment is more than 24%
            of direct and indirect foreign investment across                 in the equity capital
            sectors excepting those where it is governed
            specifically under any statutes or rules there            Press Note 8(2009)

     l      They would also ensure that approval of                   Liberalization of Foreign Technology Agreement
            Government of India/FIPB would be required for            Policy
            establishment/change in ownership or control of
            an Indian company from resident Indian citizens           The Government of India has reviewed the payment of
            to non-resident entities in sectors with sectoral         royalties under Foreign Technology Collaboration, which
            caps.                                                     provides for automatic approval for foreign technology
                                                                      transfers involving payment of lumpsum fee of US$ 2
     l      The guidelines clarify that only Investing
                                                                      million and payment of royalty of 5% on domestic sales
            companies, as well as companies which are neither
                                                                      and 8% on exports. Now, Government of India has decided
            investing nor operating companies, require prior
                                                                      to permit payment for royalty, lumpsum fee for transfer
            Government/FIPB approval for infusion of foreign
                                                                      of technology and payments for use of trademark/brand
            investment. Operating companies, as well as
            operating-cum-investing companies, only need to           name on the automatic route i.e. without any approval
            comply with relevant sectoral conditions on entry         of the Government of India. All such payments will be
            route, conditionalities and sectoral caps. This           subject to Foreign Exchange Management (Current
            clarification would result in clarity on the need for     Account Transactions) Rules, 2000, as amended from
            Government/FIPB approval for Indian companies             time to time.
            that are making downstream investments
                                                                      Draft FDI Regulatory Framework
     Press Note 6(2009)
                                                                      In various interactions with foreign investors, counterpart
                                                                      government organizations and other stakeholders, it
     Foreign Direct Investment (FDI) into a Small                     was felt that there was a need for consolidation of the
     Scale Industrial Undertaking (SSI)/ Micro & Small                FDI policy framework to make it more comprehensible

     Department of Industrial Policy & Promotion

to all investors and stakeholders. An exercise has been                    Under the extant FDI policy, FDI upto 100% is
initiated for integration of all prior regulations on FDI,                 allowed under the automatic route in most
contained in FEMA, RBI circulars, various Press Notes                      sectors/activities, except a few, where sectoral
etc., into one consolidated document, so as to reflect the                 equity/entry route restrictions have been
current regulatory framework. The draft consolidated                       retained. FDI, under the automatic route, does
FDI Framework has been launched by Department of                           not require any approval and only involves
Industrial Policy & Promotion on 24-12-2009 and is                         intimation to the Reserve Bank of India within
available at DIPP’s website ( for inviting                 30 days of inward remittances and/or issue of
comments from all stakeholders.                                            shares to non-residents.

                                                                   II.     Sector-wise distribution of FDI equity inflows:
NRI Investment
                                                                           The highest FDI equity inflows were received in
The general policy and facilities for FDI are applicable to
                                                                           the services sector (financial & non financial),
NRIs as well. In addition, Government has extended some
                                                                           amounting to 17% (approximately) of the total
additional facilities to NRIs, which include investment
                                                                           FDI inflows, followed by housing & real estate
in the real estate and civil aviation sectors up to 100
                                                                           (11%), telecommunications (11%), construction
per cent, besides a liberal investment regime on non-
                                                                           activities (11%), agriculture services (6%),
repatriation basis.
                                                                           power sectors (6%), automobile industries (5%),
                                                                           electrical equipments & computer software
FDI Equity Inflows Performance during the Year
                                                                           hardware (3% each) & hotel & tourism (2%). The
2009-10 (Upto December 2009)                                               balance of inflows (25%) was accounted for by
I.      FDI equity inflows of Rs. 100,539 crore (US$ 20.9                  other sectors.
        billion) were received during the financial year 2009-     III.    Country-wise distribution of FDI inflows:
        10 (from April 2009 to December 2009). Only the
        equity component of FDI has been covered in the                    FDI from Mauritius accounted for 43% of total
        inflows data. This does not include the reinvested                 inflows into the country, followed by Singapore &
        earnings and other components of FDI, which are                    U.S.A. with 8% each, Cyprus with 6% & Japan with
        compiled at the end of the financial year.                         5% of the total inflows.
                                                         FIGURE 5.1

                                          COUNTRY-WISE FDI INFLOWS
                                       (from April 2009 to December 2009)

                         Sweden         12
                             U.K.        18
                        Germany           26
                           U.A.E.         28
                     Netherlands            37
                           Japan              52
                          Cyprus               64
                           U.S.A.                76
                       Singapore                  82
                        Mauritius                                                                     429
                                                        (Rupees billion)

                                                                 Annual Report 2009-10

     IV.        Cumulative Inflows from August 1991 to             (a)   On the policy front, while the FDI policy is already
                December 2009:                                           very liberal, it is being further progressively
                                                                         rationalised. An exercise has been initiated
               The cumulative FDI equity inflows since 1991             for integration of all prior regulations on FDI,
                have been Rs. 5,54,270 crore (US$ 127,460                contained in FEMA, RBI circulars, various Press
                billion).                                                notes etc., into one consolidated document, so
                                                                         as to reflect the current regulatory framework.
     V.         Financial year-wise FDI inflows:
                                                                         The draft consolidated FDI framework has been
                                table 5.1                                launched by Department of Industrial Policy &
           S.            Financial Year            AMOUNT OF             Promotion on 24.12.2009 and is available at DIPP’s
          No.           (April – March)            FDI INFLOWS
                                                                         website ( for comments.
                                                    (In rupees
                                                       crore)      (b)   On the investment promotion front, the
      (A) From August 1991 to March 2000                                 Department organizes ‘Destination India’ and
           1.    1991-92 (August-March)                 409              ‘Invest India’ events in association with CII and
           2.    1992-93                               1,094             FICCI.
           3.    1993-94                               2,018
                                                                   (c)   DIPP has been undertaking concerted efforts for
           4.    1994-95                               4,312
                                                                         improving the business environment in the country.
           5.    1995-96                               6,916             The business reforms aimed at improving the
           6.    1996-97                               9,654             business environment include setting up of single
           7.    1997-98                              13,548             windows, online registrations, computerization of
           8.    1998-99                              12,343             information, simplification of taxes and payments,
           9.    1999-00                              10,311             reduction of documents through developing
                 total of (A) above                   60,605             single forms for various licences/permissions and
      (B) From April 2000 to December 2009                               reduction of inspections etc.
          10.    2000-01                              12,645       (d)   As a step towards promoting an online single
          11.    2001-02                              19,361             window at the national level for business users,
          12.    2002-03                              14,932             the Department has undertaken the eBiz project,
          13.    2003-04                              12,117             which is one of Mission Mode Projects (MMPs)
          14.    2004-05                              17,138             under the National eGovernance Plan (NeGP). The
          15.    2005-06                              24,613             objectives of setting up of the e-Biz Portal are to
          16.    2006-07                              70,630             provide a number of services to business users
          17.    2007-08                              98,664             covering the entire life cycle on their operation.
                                                                         The project aims at enhancing India’s business
          18.    2008-09                             123,025
                                                                         competitiveness through a service oriented,
          19.    2009-10 (upto December              100,539
                 2009)                                                   event-driven G2B interaction.
                 total of (B) above                  493,665       (e)   The National Manufacturing Competitiveness
      Cumulative Total (A) + (B)                     554,270             Council (NMCC) has been set up to provide a
      (from August 1991 to December                                      continuing forum for policy dialogue to energize
                                                                         and sustain the growth of manufacturing
     5.         Fdi Promotion initiatives:
                                                                   (f)   The Department has regular interaction with
     Several steps have been initiated to facilitate                     foreign investors. Such interactions have been
     increased FDI inflows. These include, inter-alia, the               held in bilateral/ regional/ international meets
     following:                                                          such as Indo-ASEAN, Indo-EU, Indo-Japan, etc.

 Department of Industrial Policy & Promotion

       Meetings with individual investors were also held    India as an emerging investment destination. Some of the
       on a regular basis.                                  independent assessments in this regard include:

(g)    The Department website ( has         •     The UNCTAD World Investment Report (WIR) 2009,
       been made both comprehensive and informative               in its analysis of the global trends and sustained
       with online chat facility. About 4500 investment           growth of Foreign Direct Investment (FDI) Inflows,
       related queries were replied during the year.              has reported India as the third most attractive
                                                                  location for FDI for 2009-2011. According to the
6.     Prospects                                                  WIR 2009 report, the top five most attractive
                                                                  locations for 2009-11 are China, United States,
The advantages of India as an investment destination
                                                                  India, Brazil and the Russian Federation.
rest upon strong fundamentals, which include a large
and growing market; world-class scientific, technical and   •     India has retained the second place in A.T.
managerial manpower; cost effective and highly skilled            Kearney’s 2007 Foreign Direct Investment
labour; abundant natural resources; a large English               Confidence Index, a position it has held since
speaking population; independent judiciary, etc. This is          displacing the US in 2005. India continues to
now recognized by a number of global investors who have           attract investors in the high value-added services
either already established a base in India or are in the          industries like financial services and information
process of doing so. Ongoing initiatives, such as further         technology. The top position is occupied by China,
simplification of rules and regulations, improvement in           while the US is the fourth in the list. The report
infrastructure is expected to provide necessary impetus           predicts India to be on the cusp of FDI take off ,
to increase FDI inflows in future.                                in view of the Government maintaining focus on
                                                                  reforms, overcoming narrow business interests,
The inflows of FDI depend on domestic economic
                                                                  de-bottlenecking infrastructure, logistics and
conditions, world economic trends, and strategies
                                                                  regulatory barriers.
of global investors. Government, on its part, is fully
committed to creating strong economic fundamentals          •     The 2009 survey of the Japan Bank for
and an increasingly proactive FDI policy regime.                  International Cooperation, conducted among
                                                                  Japanese investors, continues to rank India as
The positive efforts of the Government to improve the
                                                                  the second most promising country for overseas
investment climate, including sustained improvement on
infrastructure front, have led to renewed optimism about          business operations.

     CHAPTER 6                                                       Annual Report 2009-10

     Industrial Infrastructure
     and Development Schemes

     After the announcement of new Industrial Policy in 1991,          Industrial Policy and Promotion. While considering the
     decisions for investment have been left to the commercial         project proposals the Apex Committee takes into account
     judgment of the entrepreneurs, which in turn, depend              factors such as number of units, persons employed, value
     on the initiatives of the State Governments in creating           of output, export potential, comparative advantages,
     conducive environment by way of providing infrastructure          growth potential, nature of critical gaps in infrastructure
     facilities and other incentives. The role played by the           and ability of industrial units to contribute 15% of the
     Central Government has changed from that of exercising            project cost, etc.
     control to providing help and guidance by making essential
     procedures fully transparent and by eliminating delays.           The projects are executed by the SPVs, which are
     The Central Government also supplements the efforts of            independent legal entities registered under Section 25
     the State Governments through various schemes. These              of the Companies Act. They are required to ensure the
     schemes play an important role in stimulating flow of             sustainability of assets created under the Scheme by
     capital to these areas.                                           levying appropriate user charges.

                                                                              An illustrative list of infrastructure eligible for
     Industrial Infrastructure Upgradation Scheme
                                                                       assistance is as below:
                                                                       I.     Physical Infrastructure such as transport; road,
     Industrial Infrastructure Upgradation Scheme (IIUS)                      water;    common captive power generating
     was launched in 2003 with a view to enhancing the                        units, power transmission and distribution
     competitiveness of industry by providing quality
                                                                              infrastructure, common fuel / gas supply system,
     infrastructure through public-private partnership in selected
                                                                              common effluent treatment plant and solid waste
     functional clusters. The scheme has been suitably modified
                                                                              management facility.
     in 2009 mainly to cut delays in the implementation of the
     projects and streamline the process. Under the Scheme,            II.    Information and Communications Technology
     Central grant is provided to upgrade the infrastructure of               (ICT) Infrastructure.
     the existing clusters. The infrastructure includes Physical       iii.   R&d Infrastructure.
     Infrastructure, R & D Infrastructure, Common Facilities
     Centre etc. The central grant is restricted to 75% of             IV.    Quality certification & benchmarking centre,
     the project cost subject to a ceiling of Rs. 60 crore. The               improvement of soft skills in quality control
     remaining 25% is financed by other stakeholders with a                   and Total Quality Management technologies,
     minimum industry contribution of 15% of the project cost,                handholding of firms to achieve certificate, and
     which must be in form of cash and not in kind like the cost              benchmarking vis-à-vis international standards.
     of land or exiting building. In case of North Eastern States      V.     Common Facilities Centre.
     and Jammu & Kashmir, Himachal Pradesh and Uttarakhand
                                                                       VI.    Marketing/information dispersal infrastructure.
     the central grant is up to 90% with a ceiling of Rs. 60 crore
     of the project cost with minimum industry contribution of         VII.   Any other physical infrastructure identified by
     5% of the total project cost.                                            the industry cluster and approved by the Apex
     The projects are approved by an inter-ministerial
     Apex Committee headed by Secretary, Department of                 during 10th Five Year Plan, 26 projects with total cost

  Department of Industrial Policy & Promotion

of Rs.1693 crore and involving central grant of Rs. 945                benefited by Effluent Treatment Plant, 50%
crore were sanctioned under the IIUS. In addition, 5                   increase in the employment.
projects with total cost of Rs. 271 and central grant
                                                                (iv)   Cehmical Cluster, Vapi: Reduction in the pollution
of Rs. 185 crore have been sanctioned during 11th
                                                                       load of treated waste water up to 80%, improved
Five Year Plan. The total cost of all 31 sanctioned
                                                                       surface water quality of Daman Ganga River,
projects is Rs. 1964 crore including central grant of
Rs. 1130 crore. So far Rs. 867 crore has been released                 Scientific management of Hazardous waste from
to various Special Purpose Vehicles. Out of these 31                   700 SMEs of the Cluster.
projects sanctioned, 5 are for Tamil Nadu, 4 each               (v)    Textile Cluster, Ludhiana: 1800 industrial units
are for Gujarat and Madhya Pradesh, 3 each are for
                                                                       benefited by the Transport Storage and Disposal
West Bengal and Maharashtra and 2 each for Andhra
                                                                       Facility (TSDF). 12000 Tonnes of hazardous waste
Pradesh and Karnataka and 1 each in Chhattisgarh,
                                                                       disposed in SLF.
Haryana, Kerala, Orissa, Punjab, Rajasthan, U.P. and
Jharkhand. Five projects each have been sanctioned
                                                                Recast IIUS:
for Auto Components and Textiles clusters each,
three projects each for Chemical clusters and Foundry           On the basis of outcome of the evaluation of the Scheme,
clusters each and two projects each for Leather clusters        the IIUS has been recast. The Government on 23.02.2009
and Rubber clusters each. Eight projects, namely, Auto          approved the recast IIUS. Under the recast IIUS 10-15
Cluster, Pune, Machine Tools Cluster, Bangalore, Textile        cluster will be taken up with an estimated expenditure of
Cluster, Tirupur (TN), Chemical Cluster, Vapi, Chemical         Rs. 450 crore. Five project under recast IIUS have already
Cluster, Ankleshwar, Pump Motor & Foundry Cluster,              been given in - principle approval.
Coimbatore, Textile Cluster, Ludhiana and Foundry
Cluster, Belgaum are complete. Five more projects are           Scheme Outlay:
likely to be completed by March, 2010. The sanction
                                                                For 10th Plan outlay of the IIUS was Rs. 675 Crore. For the
given to Textile cluster, Panipat (Haryana) has been
                                                                11th Plan an amount Rs. 1050 crore has been allocated
withdrawn in April, 2007 due to its implementation
                                                                for the IIUS. Out of this amount Rs.275 crore has been
not being feasible in accordance with the guidelines of
                                                                for the projects sanctioned in industrially less developed
the Scheme. The rest of the projects are at different
                                                                States, Rs. 325 crore for completion of ongoing projects
stages of implementation. Significant progress has
                                                                sanctioned in 10th Plan and Rs. 450 crore for 10-15
already been achieved in these projects. The details of
                                                                projects to be sanctioned under the recast IIUS. In the BE
financial progress are at Annexure I.
                                                                for the current financial year 2009-10 Rs. 150 crore has
                                                                been provided for the Scheme.
Success Stories
(i)     Auto Cluster, Pune: Auto Electronic Centre, CAD/        North East Industrial and Investment Promotion
        CAM Centre for design, 15 Training Programmes           Policy (NEIIPP), 2007
        conducted for capacity building, 252 industrial
        units benefited by using product testing machines       The “North East Industrial and Investment Promotion
        and design on CAd.                                      Policy (NEIIPP), 2007” was notified w.e.f. 1.4.2007 on
                                                                revision of the erstwhile North East Industrial Policy
(ii)    Machine Tools Cluster, Bangalore: 3 Exhibition halls,   (NEIP), 1997. The Policy is applicable to the States
        Food Court and Conference centres constructed, 14       of Arunachal Pradesh, Assam, Manipur, Meghalaya,
        conferences conducted in the conference centre,         Mizoram, Nagaland, Tripura and Sikkim and it will remain
        200 direct employment generated.                        effective for a period of 10 years. Benefits under NEIIPP,
(iii)   Chemical Cluster, Ankleshwar:       965 industries      2007 are available to new industrial units as well as

                                                                  Annual Report 2009-10

     existing industrial units on their substantial expansion,             all new units as well as existing units on their
     irrespective of their location.                                       substantial expansion through the automatic
                                                                           route, Capital investment subsidy higher than
     The incentives/concessions provided to industrial units
                                                                           Rs.1.5 crore but upto a maximum of Rs.30
     under the Policy are excise duty exemption based on
                                                                           crore can be granted with the approval of an
     “value addition” norms specified by Department of
                                                                           Empowered Committee. Subsidy higher than
     Revenue, income tax exemption, Capital Investment
                                                                           Rs.30 crore would be granted with the approval
     Subsidy, Interest Subsidy, Comprehensive Insurance
                                                                           of the Union Cabinet.
     etc. Benefits under NEIIPP, 2007 have also been
     extended, for the first time, to the Select Service Sector     l      An amount of Rs. 48.17 crore was released under
     Industry and also to Bio-technology Industry and                      the Scheme in the year 2008-09.
     Power Generating Industry, besides industries i.e. the
                                                                    l      The Scheme was a part of the erstwhile NEIP,
     manufacturing sector. Certain industries considered
                                                                           1997 also. The total amount released under the
     hazardous to public health and environment such as
                                                                           Scheme (both under NEIP, 1997 and NEIIPP, 2007)
     Tobacco and its substitutes, Pan Masala, Plastics carry
                                                                           upto 31.3.2009 is Rs. 125.24 crore.
     bags, Refinery products etc. have been made ineligible
     for benefits under the Policy. In order to ensure that         l      A sum of Rs. 8.31 crore have been released during

     only genuine industries come up in the region, the                    the current financial year.

     Policy disallows concessions to goods in respect of
                                                                    II.    Central Interest Subsidy Scheme for North East
     which only peripheral activities take place.
                                                                    l      Under the Central Interest Subsidy Scheme,
     For proper coordination and monitoring of NEIIPP, 2007,
                                                                           interest subsidy @ 3% on the working capital
     various Committees like High Level Committee, Advisory
                                                                           loan is granted to new Industrial Units as well as
     Committee alongwith and Over-sight Committee have
                                                                           existing units on their substantial expansion.
     been set up.
                                                                    l      An amount of Rs.16.39 crore was released under
     Nodal Agency                                                          the Scheme in the year 2008-09.

     The North Eastern Industrial Development Finance               l      The Scheme was a part of the erstwhile NEIP,
     Corporation (NEDFi), Guwahati is the nodal agency for                 1997 also. The total amount released under the
     disbursal of subsidies under various subsidy schemes of               Scheme (both under NEIP, 1997 and NEIIPP, 2007)
     nEIIPP, 2007.                                                         upto 31.03.2009 is Rs. 47.77 crore.

     The subsidy Schemes under NEIIPP, 2007 and their salient       l      An amount of Rs. 40 crore has been released
     features are enumerated below: -                                      under the scheme in the current financial year
     I.     Central Capital Investment Subsidy Scheme for
            North East                                              III.   Central Comprehensive Insurance Scheme for North
     l      Under the Central Capital Investment Subsidy                   East.
            Scheme, subsidy @ of 30% of the investment in
                                                                    l      Under the new Scheme, new industrial units as
            plant and machinery or additional investment
                                                                           well as existing units on their substantial expansion
            in Plant and Machinery by way of substantial
                                                                           are eligible for reimbursement of 100% insurance
            expansion is provided without any upper limit.
            While subsidy upto Rs.1.50 crore is payable to                 premium.

    Department of Industrial Policy & Promotion

l      In the year 2008-09, an amount of Rs.3.60 crore         l      During the current financial year an amount of
       was released under the Scheme.                                 Rs. 401 crore has been released under the
l      The Scheme was a part of the erstwhile NEIP,
       1997 also. The total amount released under the          l      The Scheme has been extended from time
       Scheme (both under NEIP, 1997 and NEIIPP, 2007)                to time. On 26.2.2009, the Government last
       upto 31.3.2009 is Rs. 10.60 crore.                             approved extension of the Scheme beyond
                                                                      31.03.2008 till completion of the evaluation
l      No releases have been made so far during the
                                                                      process of the Scheme by an independent
       current financial year.
                                                                      agency. The evaluation of the scheme is being
IV.    Transport Subsidy Scheme                                       done by M/s Deloitte Touche Tohmastu (P) Ltd.,
l      Transport Subsidy Scheme was introduced in July,
       1971 with a view to facilitating the process of         l      On the request of D/o IPP, Office of the Controller
       industrialization in hilly, remote and inaccessible            and Auditor General (C&AG) has conducted
       areas. The Scheme is applicable to all the industrial          a Performance Audit of the Scheme and has
       units (barring plantations, refineries and power               submitted its draft report on 18.3.2009.
       generating units) irrespective of their size, both in
                                                               l      The scheme has been evaluated by an external
       private and the public sector, located in the North-
       Eastern States of Arunachal Pradesh, Assam,
       Manipur, Meghalaya, Mizoram, Nagaland, Tripura
       & Sikkim, Jammu & Kashmir, Himachal Pradesh,
                                                               Erstwhile Central Investment Subsidy Scheme
       hill Districts of Uttarakhand, Darjeeling District      l      In August 1971, Government had introduced
       of West Bengal, Andaman & Nicobar Islands and                  the Scheme of Central Investment Subsidy to
       Lakshadweep.                                                   promote industrialization in selected districts/
l      Under the Scheme, subsidy ranging between 50%                  backward areas, which were categorized into
       to 90% of the transportation cost is admissible on             Category ‘A’, ‘B’ and ‘C’ for the purpose of
       transportation of raw material and finished goods              quantum of the subsidy. The Scheme ceased to
       to and from the location of the industrial unit and            operate on 30.9.88
       the designated railhead.                                l      After cessation of the Scheme, residual cases are
l      North Eastern Development Finance Corporation                  being examined in pursuance of Hon’ble Supreme
       Ltd. (NEDFi), Himachal Pradesh State Industrial                Court’s judgement dated 5.12.95.
       Development Corporation (HPSIDC), Jammu &
                                                               l      Since inception of the Scheme, an amount of
       Kashmir Development Financial Corporation
                                                                      Rs.1114.76 crore has been released to various
       (JKDFC) and, State Industrial and Infrastructure
                                                                      States/Union Territories, up to 31.03.2009.
       Development Corporation for Uttarakhand
       (SIDCUL) are the designated nodal agencies              l      No releases have been made during the current
       for disbursement of subsidy in the NE States                   financial year.
       and in the States of Himachal Pradesh, J&K and
       Uttarakhand respectively. Disbursement to UTs is        Special Package for Jammu & Kashmir
       made directly.
                                                               New Industrial policy and other concessions for the State
l      Since inception, a total amount of Rs.1663.09           of J&K were introduced by the DIPP on 14th June, 2002.
       crore has been released under the Scheme upto           Details of incentives/concessions provided for industrial
       31.03.2009.                                             development in the State are:-

                                                                  Annual Report 2009-10

     Incentives/Concessions                                                Nodal Agency for routing the disbursal of subsidy
                                                                           under the aforesaid schemes.
     l    100% excise duty exemption with CENVAT benefit
          for a period of 10 years available to new industrial      Amount released during 2009-10
          units and existing units which have undertaken
          substantial expansion on or after 14th June, 2002.        l      An amount of Rs. 12.00 crore has been released
          The scheme is valid till 14th June, 2012.                        to the Nodal Agency during 2009-10 under the
     l    A subsidy @ 15% for investment in plant &
          machinery subject to a maximum limit of Rs.30             Progress made
          lakh available to new industrial units as well as the
          existing units which have undertaken substantial          l      As per the reports received from the State
          expansion under the Central Capital Investment                   Government, 6367 units were set up involving an
          Subsidy Scheme, 2002 notified by the Department.                 investment of Rs. 1743.00 crore which generated
          The scheme is valid till 14th June, 2012.                        employment of 45345 persons since inception of
                                                                           the scheme in the State till July, 2009.
     l    Interest subsidy of 3% on working capital loan
          available to all new units as well as the existing        Special Packages for Himachal Pradesh and
          units on substantial expansion under the Central
          Interest Subsidy Scheme, 2002 notified by this
          Department. The scheme is valid till 14th June,           New Industrial policy and other concessions for the States
          2012.                                                     of Himachal Pradesh and Uttarakhand were introduced
                                                                    by the DIPP on 7th January, 2003. Details of incentives/
     l    The insurance premium to the extent of 100% on
                                                                    concessions provided for industrial development in the
          capital investment available to all new units and
                                                                    States are:-
          the existing units on substantial expansion under
          the Central Comprehensive Insurance Scheme,               Incentives/concessions
          2002 notified by this Department. The scheme is
          valid till 14th June, 2012.                               l      100% excise duty exemption on outright basis
                                                                           to new industrial units and the existing units
     l    100% Income tax exemption allowed to all new                     on their substantial expansion on or after
          units for initial period of 5 years. Thereafter,                 07.01.2003. The “sunset clause” introduced
          30% for Companies and 25% for units other than                   by the Department of Revenue, Ministry of
          Companies, for a further period of five years, under             Finance, in 2004 restricting the benefit of excise
                                                                           duty exemption only to such industrial units in
          Section 80- IB of Income Tax Act,1961 would be
                                                                           these States as are set up or expanded on or
          allowed. The scheme is valid till 31st March, 2012.
                                                                           before 31.03.2007 has been further extended
     l    Industries like cigarettes/cigars of tobacco,                    till 31st March, 2010.
          manufactured tobacco and substitutes, distillation/       l      100% income tax exemption for an initial period of
          brewing of alcoholic drinks and manufacture                      five years and thereafter 30% for companies and
          of branded soft drinks are ineligible under the                  25% for other than companies for a further period
          package.                                                         of five years under Section 80-C of Income Tax Act,
                                                                           1961 would be allowed. The scheme is valid till
     Implementing Agency                                                   31st March, 2013.

     l    Jammu & Kashmir Development Finance                       l      A subsidy @ 15% for investment in plant & machinery
          Corporation Ltd, (JKDFC) has been notified as                    subject to a maximum limit of Rs.30 lakh provided

    Department of Industrial Policy & Promotion

       to all new as well as existing units on substantial          those not utilising local resources are excluded
       expansion under the Central Capital Investment               from the purview of proposed concessions. In
       Subsidy Scheme, 2003 notified by this Department.            addition, the Doon Valley Notification dated
       The scheme is valid till 6th January, 2013.                  01.02.1989 continues to operate in the Doon
                                                                    Valley Area and the industries notified under it
l      The financing pattern of Integrated Infrastructure
                                                                    excluded from the proposed concessions, in the
       Development Centres (IIDC) being implemented
                                                                    Doon Valley Area of the State of Uttarakhand.
       by Ministry of Micro, Small & Medium Enterprises
       between the Centre and these States changed
                                                               Implementing Agency
       from 2:3 to 4:1.

l      The funding pattern between Government of               l    Himachal Pradesh State Industrial Development
       India and both these States changed from 50:50               Corporation Ltd. (HPSIDC) and State Industrial
       to 90:10 under Deen Dayal Hathkargha Protsahan               and Infrastructure Development Corporation of
       Yojna of Ministry of Textiles. That Ministry to              Uttarakhand Ltd. (SIDCUL) are the Nodal Agencies
       extend its package of incentives, as notified for            for routing the disbursal of subsidy for Himachal
       North-Eastern States to the States of Uttarakhand            Pradesh and Uttarakhand
       and Himachal Pradesh also.
                                                               Amount released during 2009-10
l      Ministry of Food Processing Industries to include
       Uttarakhand in difficult area category States. The      l    An amount of Rs.19.00 crore and Rs. 18.50
       state of Himachal Pradesh is already included in             crore to the Nodal Agencies HPSIDC and SIDCUL
       this category.                                               respectively under the above package during
l      Ministry of Micro, Small & Medium Enterprises
       has provided relaxation for the States of Himachal
                                                               Progress Made
       Pradesh and Uttarakhand under Pradhan Mantri
       Rozgar Yojana (PMRY) with respect to age by             l    As per the reports received from the States
       5 years (i.e. 18-40 years from 18-35 years) and              Government, 6,439 units and 3574 units were
       enhanced subsidy @ 15% of the project cost                   set up involving an investment of Rs. 6,326.84
       subject to a ceiling of Rs.15,000/- per entrepreneur         crore and Rs.10489.00 crore in these two States
       as against the maximium limit of Rs. 12,500/- per            respectively which generated employment for
       entrepreneur in other States.                                80,338 persons and 64835 persons since inception
l      In order to utilise local resources in an environment        of the scheme in the States of Himachal Pradesh
       friendly manner, certain polluting industries and            and Uttarakhand respectively.

     CHAPTER 7                                                      Annual Report 2009-10

     Performance of Select Industries

     Performance of industries in general and select industries       in type, size, quality and standard. India ranks 5th
     like salt, cement, leather, tyre and rubber, paper and pulp,     in the world in terms of production of ceramic tiles
     light electrical, consumer durables, consumer goods,             and produced 355 million sq. meters of ceramic
     light industrial machinery, light engineering industries, in     tiles, out of global production of 8125 million
     particular are regularly monitored by this department. A         sq. meters during 2008-09. State-of-the-art ceramic
     brief background of select industries is explained in the        goods are being manufactured in the country and the
     following paragraphs.                                            technology adopted by the Indian ceramic industry is
                                                                      of international standards.
     Cement Industry
                                                                      Capacity and Production
     Capacity and Production                                          There are, at present, 16 units in the organized
     India is the second largest manufacturer of cement               sector with an installed capacity of 21,00,000 MT.
     in the world. The modern Indian cement plants are                This accounts for 2.5 per cent of world ceramic tile
     the state-of-the-art plants and are comparable to the            production. Ceramic tile industry has been growing
     best in the world. The cement industry comprises of              at about 12 per cent per annum. With the growth
     156 large cement plants with an installed capacity of            in the housing sector, the demand of ceramic tiles
     233.94 million tonnes and more than 350 operating                is expected to increase. Indian tiles are competitive
     mini cement plants with an estimated capacity of                 in the international market. These are exported to
     11.10 million tonnes per annum, make a total installed           East and West Asian countries. The exports during
                                                                      2008-09 was worth Rs.188 crore.
     capacity of 245.04 million tonnes as on 31-12-2009.
     There are a few large cement plants that are owned               Sanitaryware is manufactured both in the large and
     by the Central and the State Governments.                        small sector with variations in type, range, quality
                                                                      and standard. At present the production capacity
     Cement production during the year 2009-2010 (April,
                                                                      in organised sector is 1,43,000 MT per annum and
     2009 to December, 2009) has been 150.12 million
                                                                      in small scale sector, there are over 200 Units
     tonnes registering a growth of 10.52 per cent over
                                                                      with capacity of 53,000 MT per annum. The industry
     the corresponding period of 2008-09. India exported
                                                                      has turnover of Rs.500-600 crores approximately. This
     3.42 million tonnes of cement and clinker during
                                                                      Industry has been growing by about 5 per cent per
     April, 2009 - December, 2009.
                                                                      annum during the last two years. There is significant
     The buoyant demand and improved profitability                    export potential for sanitaryware. These are presently
     in this sector are conducive to the growth of                    being exported to East and West Asia, Africa, Europe
     industry. The industry is planning capacity addition             and Canada. The export was of the order of Rs.155
     of approximately 100 million tonnes during the 11th              crore during 2008-09.
     Five Year Plan.
                                                                      Potteryware signifying crockery and tableware are
                                                                      produced both in the large scale and the small
     Ceramic Industry                                                 scale sector. There are 16 units in the organised
     Ceramic Industry in India is more than 50 years old. It          sector with a total installed capacity of 43, 000 MT
     comprises of Ceramic Tiles, Sanitaryware and Crockery            per annum. In the small scale sector, there are
     items. Ceramic products are manufactured both in                 over 1,200 plants with a capacity of 3,00,000 MT
     the large and small scale sector with wide variance              per annum. Majority of the production of ceramics

 Department of Industrial Policy & Promotion

tableware is of bone china and stoneware. This                        December’ 09), the production has been 66810.74
industry in India is highly-labour intensive while                    million nos.
in USA, UK, Japan and other countries there is full
                                                                      The export and import of Tobacco and manufactured
automation. Quality of finished design and shapes are
                                                                      Tobacco substitutes during 2008-09 was Rs. 3461.05
still below international standards. The equipments
                                                                      crore and 118.37 crore respectively.
are obsolete and need to be upgraded to meet
international standard. The export of potteryware
                                                                      Explosives Industry
during 2008-09 was of the order of Rs.60 crore.
                                                                      There are 73 Medium and Small Scale units manufacturing
Cigarette Industry                                                    Explosives, with installed capacity of 2,327 MT of
                                                                      Gunpowder, 18,98,797 MT of High Explosives, 278
Cigarette is an item falling under the First Schedule to
                                                                      Million Meters of Safety Fuse, 543 Million meters of
the I(D&R) Act,1951 and requires an industrial licence.
                                                                      Detonating Fuse, 906 Million Numbers of Detonators,
The Cigarette Industry is one of the oldest industries
                                                                      2911 MT of Booster and 8457 MT of PETN etc. current
in India. It is an important agro-based industry. It is
                                                                      year 2009-10.
highly labour intensive and provides livelihood directly
and indirectly.                                                       The number of licences issued under the Explosives Act
                                                                      1884 and Petroleum Act 1934 and the production of
The production of cigarettes during 2008-09 was 87,047
                                                                      Explosive during the last 3 years are given in the above
million nos. During the current year 2009-10 (up to
                                                                      tables 7.3.

                                                          table 7.1
                                         Production of Explosives for the Last 5 years
                                                                                                                 (In Metric tonnes)
           Description                 Licenced          2005-06         2006-07         2007-08        2008-09           Upto
                                       capacity                                                                        31.12.2009
 Class 1 (Gun Powder)                      2117             596.0           575.0           624.0          908.7           532.99
 Class 2
 (a)Cartridges                         733600           205196.0         210676.0       200028.0       254807.8        127344.59
 (b)Site Mixed                        1157331           245137.0         258429.0       334740.0       343018.5         25337.39
 Class 3 (Division 1)                         **            263.5              nil             nil            nil                 nil
 (Nitroglycerine based)
 (a)Booster                                2911             979.0          1040.0           800          552.06            563.45
 (b)PETN*                                  8457            2601.0          2731.0         3290.0        2654.43           3045.00
* 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.

                                                          table 7.2
                                            Production of Million Meters/Numbers
        Description               Licenced capacity in          2005-06        2006-07       2007-08      2008-09          Upto
                                     Metric tonnes                                                                      31.11.2009
 division 1 Safety Fuse                    246                   158.0          110.0         127.0       131.79           94.88
 (million meters)
 Division 2 Detonating                     543                   205.0          214.0         292.0       334.42          488.78
 Fuse (million meters)
 division 3 detonators                     906                   436.0          446.0         589.0       610.36        1189.89
 (million meters)

                                                                 Annual Report 2009-10

                          table 7.3                                Leather Industry
            Number of LIcenced Premises under the
               Expensives Act & Petroleum Act                      Leather Industry plays an important role in Indian economy
          Year        Explosives     Petroleum       total         in view of its substantial overall output, export earnings
                         Act            Act                        and employment potential. The industry is the tenth
        2007-08           73931        195505      269436          largest amongst the manufacturing sector of India and is
        2008-09           69442        203713      273155          one of the top ten export earners for the country. The
                                                                   leather sector provides employment to about 2.5 million
        2009-             77107        190057      267164
       10 upto                                                     people, mainly from the weaker sections/minorities, of
      31.12.2009                                                   which about 30% are women. The sector has very strong
                                                                   linkage to job creation in rural economy and on social
     Glass Industry
                                                                   equity. The sector is dominated by small and medium
     Glass Industry is a delicenced industry. Glass Industry       enterprises with about 94% in this category.
     covers items such as flat glass (including sheet, float,
                                                                   The export of leather and leather products from India has
     figured, wired, safety, mirror glass) hollow-ware             undergone a structural change during the last two decades.
     containers, vacuum flasks, refills, laboratory glassware      India was traditionally an exporter of raw hides and skins and
     and other items such as bangles, beads, pearls etc. There     semi-processed leather. However, in the last two decades
     has been growing acceptability of the Indian flat glass       the share of leather footwear, leather garments, leather
     products in the global market. The Indian manufacturers       goods, footwear components and several other articles of
     had explored new markets. The technology up-gradation         leather in the total exports has increased substantially as a
     is taking place in fibre glass composites. There is           result of the Government’s policy to encourage export of
     considerable scope in demand for glass fibre products         value added leather products.
     particularly due to growth in petrochemical sector and
                                                                   India’s Export performance of the Leather Sector during
     allied products.
                                                                   the last five years is given in Table 7.4.
     The production of bottle glassware during 2008-09 was
                                                                   Industrial Licensing/Reservation Provisions: - All the
     9,03,113 tonnes, and during 2009-10 (up to December
                                                                   items of manufacture in the leather sector have been de-
     09) was 6,66,810 tonnes.
                                                                   reserved from the SSI list vide Notification No. S.O.603 (E)
     The export & import of glass & glassware during 2008-09       dated 29th June 2001 and S.O No. 649 (E) dated 3rd June
     was Rs.1,864.13 crore and Rs.2,017.33 crore respectively.     2003. At present, all items of manufacture in the leather
     The export & import of Float Glass/ Sheets during the         sector except full PVC Footwear Chappals, Sandals and
     same period was Rs.194.11 crore and Rs.240.46 crore           Shoes and Metal Fittings for Leather Goods and Garments
     respectively.                                                 have been de-reserved.

     Granite & Marble Industry                                     Initiatives taken by the Central Government for the
                                                                   development of the leather sector: -
     India is one of major producer and exporter of granite
                                                                   i.     Policy Support Measures: Leather industry
     and other stones. India has vast resources of granite
                                                                          was identified as one of the “Thrust Sector”
     with about 120 varieties of different colours and
                                                                          having significant export growth prospects and
     textures. Most of the units are producing products
                                                                          employment generation. Accordingly, special
     of granite tiles, building slabs and monuments
                                                                          focus initiatives have been announced in the
     simultaneously. Eighty to ninety per cent of the total
                                                                          National Foreign Trade Policy 2004-09.
     production is exported. The export of granite during
     2008-09 was about Rs.4900 crore. Most of the units            ii.    Support towards market development and
     in the marble industry are in the small scale sector.                export promotion: The Government is supporting
     The export of marble and its products during 2008-                   implementation of an aggressive International
     09 was about Rs.300 crore.                                           Marketing Programme through the Market

   Department of Industrial Policy & Promotion

          Development Assistance and Market Access                   initiated. It comprised of two sub-schemes, viz., Integrated
          Initiative Schemes. These include organizing               Development of Leather Sector (IDLS) and “Infrastructure
          group participation of leather exporters in leading        Strengthening of Leather Sector” (ISLS) with an outlay of
          International Leather Fairs and organizing exclusive       Rs. 290 crore and Rs. 110 crore respectively.
          Buyer-Seller Meets in select markets.
                                                                     The IDLS was notified on 3rd November 2005 and 174
iii.      Identification of Leather Sector as a priority             applications for technology up-gradation/modernization
          sector : In order to improve the competitiveness           of leather units involving total investment of Rs. 169.85
          of manufacturing in India and to increase its              crore and Government of India’s assistance of Rs. 38.20
          share in the economy as a means to provide                 crore were approved during the 10th Plan period. The
          larger employment opportunities, National                  aim of the ISLS was to provide infrastructure facilities
          Manufacturing Competitiveness Council (NMCC)               and capacity building in the Leather sector and 12 sub-
          has identified leather and leather goods as one of         programmes, viz, Establishment of Leather Complex at
          the sub-sectors having high potential for growth           Nellore; Footwear Complex and Footwear Component
          and employment.                                            Park at Chennai; Leather Goods Park at Kolkata; Human
                                                                     Resource Development; Support to Artisan; Global
iv.       Past Initiatives: - Support from the Government            Benchmarking of Leather Units; Establishment of branch
          to Leather Sector started in a limited way from            of Footwear Design & Development Institute (FDDI) at
          the 9th Five Year Plan. An amount of Rs. 4.5 crore         Fursatganj; Accreditation of FDDI at Noida; Saddlery
          was provided for the development of the leather            Development; INTECHMART; and Non Leather Footwear
          sector mainly for human resource development,              were approved for implementation during the 10th Plan
          capacity building and productivity improvement.            period. All the sub-schemes achieved desired outcome
          Tannery Modernization Scheme launched on                   during that plan period except for three sub-schemes,
          pilot basis in 2000-01 provided investment grant           viz., Establishment of Leather Complex at Nellore;
          of 30%, subject to a maximum of Rs. 28 lakh to             Footwear Complex at Chennai and Establishment of
          SSI units and 20% subject to a maximum of Rs. 35           branch of Footwear Design & Development Institute at
          lakh to non-SSI units. 109 tanneries were assisted         Fursatganj. These sub-schemes have been continued for
          under the scheme and the Government assistance             implementation during the 11th Five Year Plan period.
          of Rs. 11.7 crore resulted in a total investment of
          Rs. 52.00 crore in the tanning sector.                     v.     Indian Leather Development Programme (ILDP)
                                                                            for implementation during the 11th Five Year
During the 10th Five Year Plan (2002 – 07) the focus of                     plan period: - The Inter-Ministerial Committee
the Government was aimed at modernization of the                            under the Chairmanship of Member (Industry);
manufacturing capability and improving infrastructure.                      Planning Commission which was assigned the
A plan Programme “Indian Leather Development                                task to review the status of the Indian Leather
Programme” (ILDP) with an outlay of Rs. 400 crore was                       industry and to suggest further measures for
                                                            table 7.4
                                         India’s Export Performance of Leather Sector
                                                                                                          (Value in Million US$)
                                      2004-05            2005-06              2006-07           2007-08             2008-09
  Finished Leather                     607.73              636.26              724.00            807.19             673.37
  Footwear                             910.77             1045.24            1236.91            1489.35            1533.66
  Leather Garments                     329.44              333.30              309.91            345.34             426.15
  Leather goods                        585.72              660.17              706.28            800.46             873.30
  Saddlery & Harness                    61.71                77.52              82.33            106.18              92.15
  total                               2495.37             2752.49            3059.43            3548.52            3598.63

                                                                 Annual Report 2009-10

          its growth in terms of production and exports                 Pradesh project for setting up of state of art
          and to prepare a report for the 11th Five Year                tanning complex at nellore. A provision of Rs.29
          Plan found that the challenge before the Indian               crore is approved during 11th Plan as assistance
          Leather industry is to address effectively issues             to develop the infrastructure of the tanning park.
          relating to capacity inadequacy, raw material                 This Department has released the first installment
          base, environmental issues, availability of                   amounting to Rs. 15 crore during the financial year
          human resources and inadequate investment.                    2008-09. Work for establishment of the tanning
          These issues have adversely affected the growth               park has commenced.
          of the industry and redressal of these issues
          would result in higher exports and employment            c)   Establishment of Branch of FDDI at Fursatganj
          opportunities. Based on the recommendations                   (Outlay Rs. 7.17 crore): A branch of the Footwear
          of the Inter-Ministerial Committee, the Central               Design and Development Institute, Noida has
          Government has approved various sub-                          been established at Fursatganj. It is equipped
          schemes under Indian Leather Development                      with facilities to provide training of international
          Programme with emphasis on infrastructure                     standards with latest technology. The assistance
          development, capacity building, human                         from this Department to the project is Rs. 13.53
          resource development, investment promotion                    crore out of which Rs. 6.36 crore was released
          and addressing environment promotion and                      during the 10th Plan Period and the balance of
          addressing environmental issues for the leather               Rs. 7.17 crore was released in December 2007
          Industry. The details of the sub-schemes are as               i.e., during the 11th Plan Period. The branch has
          under: -                                                      become operational.

     a)   Integrated Development Of Leather Sector                 d)   Footwear Complex (Outlay Rs. 3 crore): This
          (IDLS) (Outlay Rs. 253.43 crore): Under the sub-              is an ongoing scheme of the 10th Plan and aims
          scheme assistance is provided for technology                  to build a Footwear Complex near Chennai in
          up-gradation/modernization leather units. The                 153.65 acres and provide infrastructure facilities
          scope of the sub-scheme has been expanded to                  for housing large footwear manufacturing units.
          include new units .The scheme would provide                   Infrastructure development towards design and
          assistance in the form of Investment grant @ 30%              testing centers, display centre, warehousing,
          to SSI Units and 20% Units to Non-SSI units upto              common power plant etc. would be provided.
          Rs. 50 lakh. Assistance will be provided @ 20% if             State Industries Promotion Corporation of Tamil
          the grant amount is above Rs. 50 lakh but within              Nadu Limited (SIPCOT), a State Government
          the overall ceiling of Rs. 2 crore. The disbursement          undertaking is the implementing agency. The
          above Rs. 25 lakh would be made in four equal                 Central Government has released Rs. 11 crore
          annual instalments. During the 11th Five Year Plan            during the 10th Plan and the balance of Rs. 3 crore
          period, a total of 910 applications involving total           would be released during the 11th Five Year Plan
          investment of Rs. 523.33 crore and Government                 period. Common infrastructure facilities have
          of India assistance of Rs. 126.60 crore have been             been completed and superstructure facilities are
          approved. An amount of Rs. 103.63 crore has                   being setup.
          been released during the 11th Plan period out of
                                                                   e)   Saddlery Development (Outlay Rs. 10 crore):
          which Rs. 25.46 crore has been released during
                                                                        Harness and Saddlery comprise a wide range
          this financial year till December, 2009.
                                                                        of products. The industry had identified up-
     b)   Leather Tanning Complex at Nellore (Outlay                    gradation and development of skilled manpower,
          Rs. 29 crore): The sub-scheme is to provide GOI               standardization & development of components
          assistance for the State Government of Andhra                 accessories and tools, development of low cost

     Department of Industrial Policy & Promotion

        indigenous machinery, and improvement in                       scheme is output linked where at-least 75% of
        production techniques and processes as major                   those trained would be placed in the industry.
        areas of concern. In order to achieve the above                Interventions at Agra and Kanpur in Uttar
        stated objectives an allocation of Rs. 10 crore                Pradesh by Footwear Design & Development
        has been approved for the 11th Plan period.
                                                                       Institute; and Chennai by Central Footwear
        Interventions by Indian Institute of Technology
                                                                       Training Institute have been approved and are
        (Kanpur), the implementing agency, are being
                                                                       under implementation. An amount of Rs. 7.09
        undertaken. An amount of Rs. 5.06 crore has
                                                                       crore has been released during the 11 th Plan
        been released during the 11th Plan period out of
                                                                       period out of which Rs. 3.09 crore was released
        which Rs. 2.50 crore has been released during this
        financial year till December, 2009.                            during this financial year till December, 2009.
                                                                       A total of 2478 persons have been trained
f)      Support to Artisan (Outlay Rs. 40 crore): There                under placement linked training programme
        are various clusters in the India making traditional
                                                                       till November, 2009.
        footwear and other leather goods. The aim of the
        component is to promote the clusters at various          h).   Up-Gradation/Establishment        of   Institutions
        fora, as they are an integral part of rural Indian             (Outlay Rs. 300.07 crore): As of now about 3,800
        economy and have potential for generating local                people are trained every year in leather and leather
        employment and export. The artisan clusters                    product sector. Against this, the demand of the
        (both urban and rural) would be supported for                  industry is around 1,00,000 skilled persons every
        enhancing their designs as per the changing                    year for the next five years. In order to increase
        trends and fashion, corpus of revolving funds for              the uptake of the student in each category and to
        obtaining bulk raw material, grant based livelihood
                                                                       train them in the latest technology, up gradation
        support, marketing support/linkages and also bank
                                                                       of the facilities in the existing units has become
        linkages. The broad objective of this component
                                                                       absolutely essential.
        would be to ensure better and higher returns to
        the artisans. Interventions under the sub-scheme               Footwear Design and Development Institute (FDDI),
        have been approved at Jaipur, Jodhpur and Alwar                Noida, is a premier Institute providing training,
        in Rajasthan; Patiala, Mukstar, Malout and Fazilka             consultancy services in the footwear and leather
        in Punjab; and Athani in Karnataka have been                   industry. Accordingly three new FDDI branches
        approved by this Department and are under
                                                                       at Chennai in Tamil Nadu, Kolkata in West Bengal
        implementation. An amount of Rs. 4.60 crore has
                                                                       and Rohtak in Haryana are being established at a
        been released during the financial year 2008-09.
                                                                       cost of Rs. 96.69 crore each during the 11th Plan
g).     HUMAN RESOURCE DEVELOPMENT (Outlay Rs.                         period to meet the growing demand of the leather
        60 crore): HRD mission targets non-traditional                 Industry. Construction works for these branches
        potential work force in the rural areas. Its aim is to         are in progress and these are proposed to be
        train and prepare individuals in the rural areas to
                                                                       operational by 2010. Besides, Rs. 10 crore would
        work in medium to large industrial units that are
                                                                       be provided for up gradation of existing FDDI
        likely to be set up. Up gradation of skills of persons
                                                                       campus at Noida. Assistance would be in the form
        already employed in the sector besides training for
        trainers/supervisors would also be undertaken.                 of one time grant for creation of capital assets and
        The scheme lays stress on skill development                    permanent infrastructure and no recurring cost
        and technical development especially in cutting                would be provided. An amount of Rs. 113.90 crore
        and stitching. The training proposed under the                 has been released during the 11th Plan period out

                                                                  Annual Report 2009-10

           of which Rs. 53.9 crore has been released during               institute in Central India for training in leather
           this financial year till December, 2009.                       sector. Therefore, a training centre in Madhya
                                                                          Pradesh with the aim to create employment
     i).   Environment Initiatives (Outlay Rs. 200 crores):
                                                                          opportunities for rural youth and also to provide
           Leather industry and tanning activity in particular,
                                                                          trained workforce for the industry is being setup.
           all over the World is linked to environmental
                                                                          Approximately, 150 students would be trained
           concerns. In view of the fact that environmental
                                                                          per annum in various disciplines of footwear
           issues are slowly gaining ground and measures
                                                                          manufacturing and retailing in the training centre.
           would need to be put in place for industries to
                                                                          The construction work for the training centre has
           cope with the stringent norms, an allocation of Rs.
                                                                          commenced and it is expected that the centre
           200 crores has been made in the 11th Five Year Plan
                                                                          would be operational by 2010. An amount of Rs.
           to address these concerns. Projects for meeting
                                                                          11.43 crores has been released during the 11th
           environmental concerns would be funded with
                                                                          Plan period out of which Rs. 6.46 crores has been
           50% grants from Central Government, with the
                                                                          released during this financial year till December,
           remaining fund coming from State Government
           (15%) and from the Industry (35%). The entire
           Operation and Maintenance costs would be borne           l)    Establishment       Of   Leather    Parks     (Outlay
           by the industry. Under the sub-scheme, 6 projects              Rs. 300.00 crores): - This sub-scheme aims
           for up-gradation of Common Effluent Treatment                  at addressing infrastructure inadequacy by
           Plants, installation of Reverse Osmosis and Reject             establishment of leather parks. This would
           Handling Systems in the State of Tamil Nadu                    enable the provision of infrastructure in a
           have been approved by this Department out of                   more cost effective manner, help in addressing
           which 5 projects are under implementation. After               the environmental concerns more effectively,
           completion there would be Zero Liquid Discharge
                                                                          ensure    greater     sustainability    and    would
           by these Common Effluent Treatment Plants. An
                                                                          improve the competitiveness of Indian leather
           amount of Rs. 18.67 crores has been released
                                                                          industry. The sub-scheme is demand driven.
           during the 11th Plan period out of which Rs. 8.52
                                                                          Grant at a rate of 50% of the cost on Common
           crores has been released during this financial year
                                                                          Infrastructure      (Physical   &      Environmental
           till December, 2009.
                                                                          Infrastructure; Technology Infrastructure; and
     j).   Mission Mode (Outlay Rs. 10 crores): This                      Marketing Infrastructure), Capacity Building
           programme envisages attracting investment in                   and Engineering & Construction Supervision
           to the sector and includes provision for research,             as well as project development and execution
           programme support, survey, and concurrent                      consultancy, subject to a limit of Rs. 40 crores
           evaluation etc in the field of leather. Besides,               would be provided to a Special Purpose Vehicle
           provision has also been made for cost on account               formed by a group of entrepreneurs (minimum
           of advisory and consultancy services in respect of             being 7 legally independent companies).
           various projects under ILDP being implemented
                                                                    vi)   Setting up of Empowered Committee and
           in the 11th Five Year Plan. Road shows in potential
                                                                          Steering Committee: - An Empowered Committee
           countries were organized. Studies pertaining to
                                                                          has also been constituted under the Chairmanship
           leather sector were also undertaken. An amount
                                                                          of Secretary (Industrial Policy & Promotion)
           of Rs. 1.376 crores has been released during the
                                                                          on November 27, 2008 in order to co-ordinate
           11th Plan period.
                                                                          and collate information about schemes being
     k)    Establishment Of Training Centre In Madhya                     implemented by various Ministries / Departments
           Pradesh (Outlay Rs. 24.85 crores): There is no                 having connection or linkage to leather industry

  Department of Industrial Policy & Promotion

       and synergize/disseminate the same to all              Electrical Research and Development Association (ERDA)
       concerned for overall development of the leather       are well equipped with the most advanced product
       sector. The Committee would also monitor and           testing facilities to meet international standards. Most
       suggest specific measures that may be required to      of the major electrical and electronics manufacturing
       achieve the desired outputs of the Indian Leather      companies in India have a strong R & D base.
       Development Programme implemented by the
                                                              With infrastructure receiving priority attention from the
       Department of Industrial Policy and Promotion. The
                                                              Govt. of India, construction, power and telecom sector
       Empowered Committee would approve proposals
                                                              are fast developing. This will give a boost to wire and
       under ILDP costing more than Rs. 15 crore. In
                                                              cable industries in near future. In 2008-09, the non-SSI
       addition there is a Steering Committee under           sector have reported production of insulated cable &
       the Chairmanship of Joint Secretary (Leather)          wires of all kinds 57.02 lakh core kms and in the year
       to approve proposals costing upto Rs. 15 crores        2009-10 (upto Dec.09) the production was reported at
       under ILDP. The Committee also reviews, monitors       54.23 lakh core kms. India exported wires and cables
       the progress and performance of implementation         (HS code. 7413 & 8544) of value around Rs 1785 crore
       of the various sub-schemes under ILDP.                 in 2007-08 against import of around Rs 3741crore during
                                                              the same period. During the year 2008-2009 (April-Dec.)
vii)   The guidelines of the sub-schemes have been
                                                              the export was around Rs.2409.91 crore against import
       finalized and are available in the website of this
                                                              of Rs.3965.52 crore during the same period. The industry
       Department (
                                                              is de-licensed and eligible for automatic approval for
                                                              Foreign Direct Investment up to 100%.
Light Electrical Industry Sector
The Light Electrical Industry is a diverse industry having    Transmission Towers
a number of distinct products and sub-products.
                                                              Large structures called transmission towers support the
It includes goods like Electrical Wires and Cables
                                                              high voltage transmission lines which carry electricity
Industry, Transmission Tower, Cranes, Lifts & Escalators,
                                                              over long distance. There is an increasing shift in India
Refrigerators, Washing Machine, Air Conditioners,
                                                              to have larger power stations, particularly super thermal
Storage Batteries, Dry Cell Batteries, Electrical Lamps &
                                                              power stations. Consequently while there would be
Tubes etc. A brief of this industry is given below:-
                                                              fewer but larger powers generating stations, the demand
                                                              for transmission of energy would grow substantially.
Electrical wires and cables Industry
                                                              The transmission network of an electrical power utility
A wide range of wires and cables are manufactured in          constitutes a critical part of the whole power system. The
the country which includes communication cables such          move to integrate India’s transmission networks through
as jelly filled telephone cables, optic fibre cables, local   a national grid of inter-regional transmission lines will
area network cables, switchboard cables, co–axial cables,     facilitate transfer of power from surplus regions to deficit
VSAT cables, electrical cables such as electrical wires,      regions. Current inter-regional transmission capacity of
winding wires, automotive/battery cables, UPS cables,         13600 MW will be raised to 37150 MW by the end of the
flexible wires, low voltage power cables and EHT power        11th plan period. This expansion is expected to bring
cables. The power cable industry may be mainly divided        order flows to power transmission companies.
into four segments viz; house wiring (up to 440V), LT (1.1
to 3.3kV), HT (11 to 66kV), EHV (66kV and above).             The country has sufficient capacity to cater to the demands
                                                              arising in the country and also for exports. The industry
Well-established R & D facilities are key factor for          has facilities for testing transmission towers up to 1000
development of this industry. In India, renowned
                                                              KV with the objective of catering to future growth of
laboratories like Central Power Research Institute (CPRI),
                                                              transmission systems in the country as well as to export

                                                                    Annual Report 2009-10

     demand. India imported Transmission towers (HS Code              international standards, modernization of airports and
     730820)of the value of Rs. 1317.5 Cr. 2007-08, against an        railway stations apart from industrial sectors.
     export of Rs 845.2 crore during the same period. During
                                                                      A wide range of lifts and escalators are manufactured in
     the year 2008-09 (April-Dec) the import was Rs.739.66
                                                                      India. These include single speed, double speed, gearless,
     crore against export of Rs.978.56 crore. The industry is
                                                                      hydraulic, servo and Variable Voltage Variable Frequency
     de-licensed and eligible for automatic approval for Foreign
                                                                      (VVVF) elevators. The industry has experienced healthy
     Direct Investment without any restriction.
                                                                      growth during the recent years. The production of lifts
                                                                      in the year 2008-09 was reported to be 8697 numbers
                                                                      and in the year 2009-10 (upto Dec. 09) the production
     Cranes and hoists are an important category of material          was reported at 6442 numbers. India imported Lifts,
     handling equipment required by almost all sectors                Escalators, Conveyers etc. (HS Code no.8428 ) of value
     across the industry. Needless to say, core manufacturing         around Rs.1152.86 Crores in 2007-08 against export of
     companies would have the maximum demand for                      around Rs.197.57 Crores in the same period. During the
     cranes due to the nature of their work. Automobile and           year 2008-09 (April-Dec) the import was 17825.17 crore
     ancillaries, power, infrastructure construction, shipyards,      against export of 140.54 crore The industry is de-licensed
     capital goods manufacturers, general engineering                 and eligible for automatic approval for Foreign Direct
     and fabrication industries in particular have a large            Investment up to 100%.
     demand for the these products. The category of cranes
     manufactured in the country include Electric Overhead            Refrigerators
     Travelling (EOT) cranes, mobile cranes, ladle cranes,
                                                                      The refrigerators Industry has become highly competitive
     hydraulic decks, crab cranes, floating cranes, controller
                                                                      as a number of brands have entered the market and
     cranes, etc. The industry has a great potential for growth
                                                                      the consumers has wide choices. Despite the fact that
     in view of increased industrial activities in various fields
                                                                      refrigerators have immense utility to housewives and
     as well as construction industry.
                                                                      provide a solution to avoid food wastage, the penetration
     In 2008-09, non-SSI sector have reported production of           level is still below 15%. There are two basic designs
     22409 Tonnes of cranes and in the year 2009-10 (upto             adopted in refrigerators presently being manufactured
     Dec. 09) the production of cranes was reported at 13735          in the country. These are commonly referred to as Direct
     tonnes. India imported cranes (HS Code No.8426) of               Cool (DC) and Frost Free (FF) Refrigerators. There has been
     value around Rs.1833.8 crores in 2007-08 against export
                                                                      gradual consumer preference shift towards frost free
     of around Rs.116.8 crores in the same period. During
                                                                      segment. In rural areas, where power cuts are frequent,
     the year 2008-09 the import was 2644.49 crore against
                                                                      people still prefer the direct cool refrigerators. Another
     export of 172.9 crore. Industry is de-licensed and eligible
                                                                      major change in refrigerator industry is adoption of Non-
     for automatic approval for Foreign Direct Investment up
                                                                      CFC Technology. Increasing number of dual income house
     to 100%.
                                                                      holds are shifting the demand from the conventional

     Lifts and Escalators                                             180L refrigerators to the larger 220L & more capacity
     Lifts and escalators are used in industrial, commercial and
     domestic sectors. Rapid urbanization and robust activity in      Quality products with superior technology have helped
     the construction industry and corporatization of the real        the industry to achieve higher growth in terms of volume
     estate sector has led to a healthy growth of this industry.      and also higher realization in value terms. In 2008-09, the
     The use of lifts and escalators is increasing rapidly due to     units in non-SSI sector have reported production of 7.619
     substantial investments in construction of multi-storied         million of refrigerators and in the years 2009-10 (upto
     housing complexes, large malls and supermarkets of               Dec. 2009) the production was reported at 6.822 million.

 Department of Industrial Policy & Promotion

India exported refrigerators (HS Code 8418) valued            increase in number of people living in flats in multi-storied
around Rs.529.84 crore in 2007-08 against import of           complexes and also due to less noise. With a perceptible
around Rs.864.01 crores during the same period. During        increase in the living standards of the Indian middle class,
the year 2008-09 (April-Dec) the import was 1177.89           there has been tremendous shift in demand of the air
crore against export of 770.63 crore.The industry is de-      conditioners from non-branded assembled air conditioners
licensed and eligible for automatic approval for Foreign      to branded products. Bureau of Energy Efficiency (BEE), a
Direct Investment up to 100%.                                 statutory body under the Ministry of Power has introduced
                                                              energy efficiency based star rating for air conditioners to
Washing Machines                                              help consumers buy the energy efficient products.

The washing machine market in India can be divided into       The market for AC has grown substantially during the
semi–automatic and fully–automatic. The semi–automatic        last few years. In 2008-09, the non-SSI sector reported
segment is more popular than the fully–automatic              production of 7.82 lakh of air conditioners and in
segment. However, with rising disposable incomes and          the years 2009-10 (up to Dec.09) the production was
higher aspirations, there is a gradual shift towards higher   reported at 7.84 lakhs. During 2007-08 India exported
capacity washing machines and also towards fully–             air conditioners (HS Code 8415) valued at around
automatic washing machines. Manufacturers, therefore,         Rs. 253 crore against import of Rs.1818.5 crore during
have started paying more attention to this segment and        the same period. During the year 2008-09 the import
are introducing more features in their products. Controls     was Rs.1724.35 crore against export of 342.76 crore.The
are changing from purely mechanical to fully electronic as    industry is de-licensed and eligible for automatic approval
microcontrollers are incorporated into the designs. While     for Foreign Direct Investment up to 100%.
providing intelligence, microcontrollers boost reliability,
drive down costs and improve energy efficiency. Washing       Lead Acid Storage Batteries
machines can use as many as three microcontrollers
                                                              The lead-acid storage battery is the most widely used
which adds intelligence for the increased functionality
                                                              secondary storage cell by automobile and other industries.
and user control. Energy efficiency is realized using
                                                              They are used in vehicles and also for various industrial
microcontrollers for controlling the motor, reducing
                                                              uses such as for back up power for UPS application,
noise and minimizing vibration. A large proportion of the
                                                              control rooms, power stations, telecommunications
demand is from replacement buyers in urban areas.
                                                              etc. In addition, it is also used for emergency lights for
In 2008-09, the non-SSI sector have reported production       houses, telephone systems, power tools, as power source
of 2.34 million of washing machines and in the years          for mining and material handling equipments, etc. A new
2009-10 (up to Dec. 09) the production was reported at        application of the product has emerged today in electric
2.31 million. India exported washing machines (HS Code        vehicles. The average life of the battery is approximately
8450) of value around Rs.34.96 crore in 2007-08 against       2 years hence these batteries will be needed throughout
import of around Rs.231.62 crores during the same             the life of the vehicle or the machinery in use. This
period. During the year 2008-09 the import was 230.74         indicates that ready market of the product will always
crore against export of 47.80 crore. The industry is de-      exist.
licensed and eligible for automatic approval for Foreign
                                                              With the phenomenal growth of automobile industries,
Direct Investment without any restriction.
                                                              the demand of such batteries is also increasing at a very fast
                                                              pace. Although there are few large scale manufacturers of
Air Conditioners
                                                              the product dominating in India, there are large number
The air–conditioners’ market can be classified into three     of very small scale units manufacturing the product in a
segments: window AC, split AC and central AC. The split       most unorganized manner. The product manufactured by
ACs are gaining popularity due to limitation of space and     them normally does not qualify the required standards

                                                                   Annual Report 2009-10

     as specified by BIS. In order to ensure safe disposal of        Rs.1931.63 crores against export of Rs.70.81 crores. The
     lead acid batteries, Ministry of Environment and forest         industry is de-licensed and eligible for automatic approval
     has issued a notification Batteries (Management and             for Foreign Direct Investment up to 100%.
     Handling) Rules, 2001under Environment (Protection)
     Act 1986.                                                       Electrical Lamps and Tubes

     The non-SSI sector has reported production of 43.05             Wide range of lamps and tubes are manufactured in the
     million of Lead Acid Batteries during 2008-09.and in the        country which include general lighting service lamps such
     year 2009-10 (upto Dec.09) the production was reported          as incandescent bulbs, halogen lamps, gas discharge lamps
     at 38.4 million. During 2007-08, export of Lead Acid            such as fluorescent tube light, compact fluorescent lamp,
     Batteries (HS code 8507) was approx. Rs.337.05 crores           high pressure mercury vapour lamps, metal halide lamps,
     against import of Rs.1545.74 crores. During the years           low pressure and high pressure sodium vapour lamps and
     2008-09 the import was Rs.11680.94 crore against export         variety of special lamps. The higher energy cost have led
     of 488.78 crore. The industry is de-licensed and eligible       to the development of energy efficient lamps consuming
     for automatic approval for Foreign Direct Investment            less power and giving output as close to daylight. Compact
     without any restriction.                                        Fluorescent Lamps (CFL) which consumes about 20% of
                                                                     the electricity for the same light output and last up to
     Dry Cell Batteries                                              8 times longer than the GLS are getting more popular.
                                                                     Compact Fluorescent Lamps having power factor of 0.85
     Performance of dry cell batteries has undergone
                                                                     are being manufactured in the country.
     progressive improvements through technological
     developments. New types of dry cell batteries with longer       Manufacturers are adopting imported designs and know-
     shelf life and greater dependability and also rechargeable      how through technical collaborations. Today, there has
     cells have come up. Leak proof dry cells are used in            been effective widening of locally produced range of
     expensive electronic/auto equipment and toys. Nickel            lamps along with serious advent of electronics in lighting,
     cadmium batteries and other rechargeable batteries are          thereby supplying better, more efficient and cheaper
     manufactured in the country to meet the requirement of          lighting systems with improved aesthetics. The future
     defence, telecommunications and electronics. Though             of the industry envisages immense prospects of growth
     the usage of high drain applications is yet to pick up in       and development for technologically advanced and
     the country, the growing popularity of cellular phones,         cost effective organization. Miniaturization, electronic
     laptops and imported toys could open the market for a           circuitry, newer chemicals, better luminaries are all
     new range of batteries that are not produced at present.        providing the world with products of larger light output
     Contrary to the global scene, alkaline batteries account        at minimum cost helping energy conservation. India
     for less than 2 per cent of India’s total battery market.       imported Electric Lamps and Tubes (HS code-9405) of
     In the developed countries, alkaline batteries constitute       value around Rs.437.9 crore in 2007-08 against export
     over 90 per cent of primary battery market. The huge            of Rs.82.56 crore in the same period. During the year
     price premium vis-à-vis the zinc variety has inhibited the      2008-09 the import was Rs. 600.24 crore against export
     widespread usage of alkaline batteries.                         of Rs.280.82 crore.

     The production of dry cells in the non-SSI sector in 2008-      The growth of the industry has been substantial during
     09 was reported to be 2150.74 million numbers. In the           the last few years. The production of GLS lamps in
     years 2009-10 (up to Dec. 09) the production of Dry             the non-SSI sector in 2008-09 was reported to 428.12
     Cell Batteries was reported at 1526.09 million numbers.         million numbers where as the production of fluorescent
     During 2007-08 there was export valued at Rs.49.83 crores       tube in the same period was 1979.89 lakh numbers.
     against import of Rs.266.4 crores of dry cell batteries (HS     During the year 2009-10 (upto Dec. 09) the production
     Code 8506). During the year 2008-09 the import was              of GLS lamps and fluorescent tube was reported at

  Department of Industrial Policy & Promotion

330.70 million numbers and 180.82 million numbers              Rs.2145.42 crore respectively .During the year 2008-09 the
respectively. The industry is de-licensed and eligible         import was Rs.2625.84 crore against export of Rs.1187.96
for automatic approval for Foreign Direct Investment           crore. In the years 2008-09 the production was reported at
without any restriction.                                       2961.76 lakh numbers and during the year 2009-10 (upto
                                                               Dec.09) the production was reported 2549.23 lakh number.
Light Engineering Industry Sector                              The bearing industry is delicensed and is eligible for 100%
The light Engineering Industry is a diverse industry with a    FDI under automatic route.
number of distinct sector. This industry includes mother
of all industries like castings and forgings to the highly     Ferrous Castings
sophisticated micro-processors-based process control           Ferrous castings are pivotal to the growth and development
equipment and diagnostic medical instruments. This             of engineering industries since these constitute essential
group also includes industries like bearings, steel pipes
                                                               intermediates for automobiles, industrial machinery,
and tubes, fasteners, etc. The products covered under
                                                               power plants chemical and fertilizer plants etc. Casting
the engineering industry are largely used as input to the
                                                               industry is the mother of all industries, as it impacts
capital goods industry. Hence the demand of this sector
                                                               practically every other industry. Indian Foundry Industry
in general depends on the demand of the capital goods
                                                               is the fifth largest in the world. This industry is now well
                                                               established in the country and is spread across a wide
                                                               spectrum consisting of large, medium, small and tiny
Rolling Bearing Industry
                                                               sector. A peculiarity of the foundry industry in India is its
Bearings are used in diversified fields from simple electric   geographical clustering. Typically, each foundry cluster is
fan to complex space rocket. Hence, the product range is       known for catering to some specific end use markets. For
vast and diversified. The indigenous manufacturers are         example, the Coimbatore cluster is famous for pump sets
manufacturing bearings of quality and precision at par with    castings, the Kolhapur & Belagaun cluster for automotive
world renowned manufacturers in the diversified range of       castings, Rajkot cluster for diesel engine castings and
general purpose bearings where the demand is large to          Batala    & Jalandhar cluster for machinery parts and
justify indigenous production on economic consideration.       agricultural implements.
Bearings, generally used for special applications, requiring
high technology and / or required in low volumes are           Advanced countries like USA, Japan, Germany are unlikely
still being imported.   There is considerable scope for        to add much capacity due to stringent pollution control
development of bearings of smaller sizes and lighter weight    norms there. India can thus have a dominant presence in
with improved performance in harsh operating conditions        this field and can become an important casting supplier
like higher temperature or low temperature.                    to the world. Most of the industries except large cement
                                                               plants generally require castings within the weight range
Automobile industry accounts for bulk of the total demand      of 5 kgs. to 4 tonnes. Requirement of steel castings for
of this industry with estimated share of 35%, electrical       large plants is in the range of 20 tonnes to 80 tonnes a
industry share is 12%, after market (replacement)              piece. The Indian industry, because of its technological
share is 40% and the remaining 13% consumption is by           strength in the field has advantage over other developing
other industries. As large number of world renowned            countries in exports. This is evident from current trend for
automobile companies have already set up units and             increase in outsourcing by international manufacturers
some are planning to set up units in India, the demand for     of engineering products from India. Considering the wide
bearings is going to increase in coming years.                 range of engineering applications of these castings and
                                                               high potential for exports, there is considerable scope for
The export and import figures of the ball & roller bearings
                                                               establishing additional capacity particularly for high end
(HS code 84.82) for the year 2007-08 are Rs.966.6 crore and

                                                                        Annual Report 2009-10

     The approximate export and import figures of the casting             and measurement of physical, chemical and biological
     industry (HS code 7325) for the year 2007-08 are Rs.2356.9           properties. They are used for measurement and control
     crore and Rs.81.87 crore respectively and in the year                of process variables like pressure, temperature, humidity,
     2008-09 the import was Rs.207.27 crore against export                liquid level, flow, specific gravity, chemical composition
     of Rs.3058.27 crore. The production of steel castings and            including pH and many forms of spectrometry and
     C.I. castings for the year 2008-09 was reported at 634696            spectrophotometry. The process control instruments
     tones and during the year 2009-10 (upto Dec.09) the                  have become an integral part of the modern industrial
     production was reported 433949 tones. The industry is                activity. This industry is a key industry which provides
     de-licenced and is eligible for automatic approval up to             tools for automation. Their importance is significant in
     100% Foreign Director Investment.                                    high cost large & sophisticated process industries like
                                                                          fertilizer, steel, power plant, refineries, petrochemicals,
     Medical and Surgical Instruments                                     cement & other process industries.

     The present day healthcare has become completely                     Transfer of technology has been the major foundation
     dependent on electro medical instruments and these have              of indigenous development. The technology tie-ups with
     become indispensable tools for medical professionals                 internationally reputed manufacturers have brought in
     mainly for diagnosis, therapy, and patient monitoring and            technological break through in various areas of industry.
     health care. Medical and surgical equipment industry have            Today it provides open control systems & smart control
     been playing a critical role in the health care delivery system.     devices. Present Technology is microprocessor based
     Medical equipment includes all types of instruments and              centralised control system. Future Technology is for
     appliances used in medical, surgical, dental including               decrease in the sensing and response time of the equipment
     electro medical apparatus, X-ray machines as well as                 and more & more automation control i.e. without manual
     physiotherapy equipments and orthopaedic appliances.                 interference. The demand for this sector is basically a
     During the last 20 years or so with the increased awareness          derived demand and depends largely on progress of
     for health, the demand for medical/surgical instruments              implementation of various projects such as fertilizer, steel,
     has gone up substantially. This has accelerated the growth           power plant, refineries, petrochemicals, cement etc.
     in indigenous production as well as imports. Indigenous
     manufacturers are currently in a position to manufacture             The production for the year 2008-09 in the non-SSI sector
     wide variety of electro medical equipment such as electro            is reported to be 371.22 crore and in the years 2009-
     cardiograph (ECG) machine, X-ray scanner, CT scanners,               10 (upto Dec. 09) the production was reported at 183.56
     short wave physiotherapy unit, electro surgical units,               crore. In the year 2007-08,there was export of process
     blood chemistry analyser etc. However, sophisticated                 control instruments (HS code 9032) worth Rs.196.6 crore
     instruments such as nuclear magnetic resonance (NMR)                 against import of around Rs.1674.7 crore. During the
     scanners, multi channel monitors etc. are not currently              year 2008-09 the import was Rs.1922.28 crore against
     manufactured in the country.                                         export of Rs. 304.11 crore. The Industry is delicensed and
                                                                          100% Foreign Direct Investment is allowed in this sector
     Most of the units manufacturing medical equipments are               under automatic route
     in SSI sector. The production for the year 2008-09 in the
     non-SSI sector is reported to be Rs. 32062.87 lakh and               Seamless Steel Pipes & Tubes
     during the year 2009-10 (up to Dec. 09) the production
     was reported at 18572.06 lakhs                                       Seamless steel pipes and tubes are used in both Oil sector
                                                                          and non oil sectors. They consist of both alloy steel and
     Process Control Instrument Industry                                  carbon steel tubes. Seamless pipes are used where strength,
                                                                          resistance to corrosion and product life is crucial. This
     Process control instruments and systems cover wide                   industry is an important segment of the Indian economy
     range of instruments and systems required for monitoring             as it meets critical requirements of oil and gas sector

 Department of Industrial Policy & Promotion

and other hydro carbon industry. In oil sector seamless          are preferred where thickness of pipe is more than
steel pipes and tubes are used as line pipe, casing pipe,        25mm and in high pressure gas pipe line. Helical welded
production tubing, drill pipe etc. In non oil sector these are   SAW pipes are used for low pressure applications. The
used in a number of important industries like boilers, ball      cost of helical SAW pipes is less than longitudinal pipes.
bearings, automobiles, chemical plants, fertilizer plants        There is huge demand of SAW pipes in the country due
petrochemical and industrial machinery etc.                      to transportation of oil and gas and transmission of
Oil sector accounts for around 60% of total requirement
of seamless pipes. Bearings and boiler sector contribute         The approximate export and import figures of the SAW
around 30% of demand. The Industry is able to                    pipes Industry (HS code 7305) for the year 2007-08 were
manufacture tubes up to 14” outer diameter. With                 Rs. 5200.3 crore and Rs. 1238.8 crore respectively. During
upcoming substantial growth in the power sector and
                                                                 the year 2008-09 (April-Dec) the import was Rs.266.19
increase in demand of bearings from automobile sectors,
                                                                 crore against export of Rs.7607.17 crore. This industry has
the demand pattern may change in favour of these two
                                                                 very good export potential. The industry is delicensed and
                                                                 upto 100% foreign equity is allowed for the manufacture
The approximate export and import figures of the                 of this item under automatic route.
Seamless Steel pipes & tubes industry (HS code 7304) for
the year 2007-08 were Rs. 2487.79 crore and Rs. 3284.53          Industrial Fasteners
crore respectively. During the year 2008-09 the import
                                                                 Fasteners are used in almost all engineering and
was Rs. 4097.27 crore against export of Rs. 2111.17
                                                                 chemical industries. Therefore the industry fortunes
crore. The Seamless steel pipes and tubes industry is
                                                                 are linked to the performance of their user industries.
delicensed and upto 100% foreign equity is allowed for
                                                                 Automobile industry accounts for bulk of the total
the manufacture of this item under automatic route.
                                                                 demand of this industry. Consumer durables and
                                                                 railways are the other primary users of the high tensile
Electrical Resistance Welded (ERW) Steel Pipes
                                                                 fasteners. Automobile sector is likely to drive growth in
& Tubes.                                                         the fastener industry. The fastener industry in India may
High performance ERW steel pipes and tubing possess high         be classified into two segments: high tensile and mild
corrosion resistance, high deformability, high strength          steel fasteners. High tensile and mild steel fasteners
and high toughness. Based on the end-user customers’             broadly include nuts, bolts, studs, rivets and screws.
requirement, ERW steel pipes and tubes are available             Mild steel fasteners are primarily manufactured by the
in various qualities, wall thickness and diameters of the        unorganized sector while high tensile fasteners require
finished pipes. These pipes are used in fencing, lining          superior technology and are dominated by companies
pipes, oil country tubular, scaffolding, water and gas           in the organized sector.
transportation, structural and engineering purposes etc.         The approximate export & import figures of the industrial
There has been tremendous increase in the production             fastener (HS code 7318) industry for the year 2007-08
of ERW steel pipes due to higher demand in oil and gas           were Rs.1061 crore & Rs. 1195.4 crore. respectively.
industry, infrastructure and automobile uses. There are          During the year 2008-09 the import was Rs.1621.3 crore
large numbers of units in the SSI Sector. The industry is        against export of Rs.1528.8 crore. The production of nuts
de-licensed and is eligible for automatic approval up to         & bolts in the organized sector for the year 2008-09 was
100% Foreign Direct Investment.                                  85027 tonnes and during the year 2009-10 (up to Dec.09)
                                                                 the production was reported 63955 tonnes. The fastener
Submerged-Arc Welded (SAW) pipes                                 industry is delicensed and is eligible for 100% FDI under
There are two types of saw pipes namely longitudinal             automatic route if the item is not reserved for the SSI
and helical welded SAW pipes. Longitudinal SAW pipes             Sector.

                                                                    Annual Report 2009-10

     Steel Forgings                                                   export of Rs. 2134.49 crore. The production of stamping
                                                                      & forging for the years 2008-09 in the organized sector
     Forging has unique value among manufacturing
                                                                      was 381948 tonnes and during the year 2009-10 (upto
     processes. The industry is a key link between critical
                                                                      Dec.09) the production was reported 266045 tonnes. The
     manufacturing segments--metal suppliers (both ferrous
                                                                      forging industry is delicensed and is eligible for 100% FDI
     and nonferrous) and end user industries. Forgings are
                                                                      under automatic route.
     intermediate products used widely by original equipment
     manufacturers in the production of durable goods.                Bicycle Industry
     The composition of the Indian forging industry can be
     categorized into four sectors - large, medium, small and         Bicycle manufacturing is an established industry in the
     tiny. A major portion of this industry is made up of small       country with well accepted quality standards in the
     and medium units/enterprises (SMEs). The industry was            international market. India is the second largest bicycle
     previously more labour intensive but now with increasing         producer of the world, next only to China. India has
     globalization it is becoming more capital intensive.             seen a tremendous increase in the number of bicycle
                                                                      manufacturers and bicycle exporters in the recent
     The Indian forging industry has emerged as a major
                                                                      past. Most of the manufacturing units are located
     contributor to the manufacturing sector of the Indian
                                                                      in Punjab and Tamil Nadu with Ludhiana ( Punjab )
     economy. Among the industries that depend on forgings
                                                                      being a major Bicycle production hub. The industry is
     are automotive and truck; agricultural machinery
                                                                      making endeavor for enhancing export since there is a
     and equipment; valves, fittings, and petrochemical
                                                                      significant scope for export of Indian bicycles, bicycle
     applications; hand tools and hardware; off-highway
     and railroad equipment; general industrial equipment;            spare parts and bicycle accessories. Bicycle companies
     ordnance and marine; and aerospace. The key driver of            in India are now focusing on urban markets and are
     demand of forging is the automobile industry. About              looking to expand their base in the professional and
     65% of the total forging production is used in this sector.      adventure categories.
     Thus, the fortunes of the forging industry are dependent
                                                                      The approximate export and import figures of bicycle (HS
     upon the growth of automobile industry.
                                                                      code 8712) for the year 2007-08 were Rs.115.8 crore &
     India’s forging industry not only meets almost the entire        Rs. 42.31 crore respectively. During the year 2008-09 the
     domestic demand of forgings but is also a large exporter         import was Rs.71.60 against export of Rs.169.74 crore.
     and is making a significant contribution to India’s exports.     The major export market for Indian bicycle and parts are
     The Indian forging industry has shown a commendable              African as well as South American Countries – Nigeria,
     performance on export front. Technological developments          Mexico, Kenya Uganda and Brazil. The total production of
     have also contributed to the industry’s steady growth in         all kinds of bicycles in the organized sector was 11123.38
     export. The major markets are USA, Europe, China, etc.           th. numbers in the year 2008-09 and in the year 2009-10
     The indigenous industry constitutes of about 10 large            (up to Dec.09) the production was reported at 9325.28 th.
     units followed by large number of medium, small & tiny           numbers. The industry is de-licensed under the current
     units. The future is bright in terms of the expected surge       industrial policy and this sector qualifies for 100% FDI
     in global demand. As a result of the liberalization, more        under automatic approval.
     MNCs have entered the domestic automobile market.
     This has opened up more business opportunities for the           Light Industrial Machinery Sector
     forging industry.
                                                                      Food Processing Machinery
     The approx export and import figures of the forging
     industry (HS code 7326) for the year 2007-08 were                India is the world’s second largest producer of food but
     Rs.1459.3 crores and Rs.1795.9 crores respectively. During       the processed food industry in the country is relatively
     the year 2008-09 the import was Rs.2771.36 crore against         small.The Indian market for food processing machinery

 Department of Industrial Policy & Promotion

has been growing steadily fuelled by strong domestic               specialized packaging becomes a technical necessity. In a
demand for processed food and beverage products                    competitive environment where Indian products have to
spurred by increase in income level, increasing number             compete in the international markets, packaging apart from
of women joining the work force, rapid urbanization,               other aspects, can tilt the balance.
changing life style and mass media promotion. The
                                                                   Considering the growth prospects in industrial sector and
pattern is likely to continue as more food processing
                                                                   growing consumer awareness of packaging, it is expected
units are commissioned. In recent years there has been
                                                                   that there would be substantial growth in this area. There
a marked shift among consumers for packaged food
                                                                   is a wide range of packaging machinery available in the
items in India. The most promising areas of growth                 country covering packaging of vast range of items. Some
are fruit & vegetable processing, meat, poultry, dairy &           of the commonly available packing machinery includes
seafood, packaged/convenience food, soft drinks and                machines for coding and on-line printing machines,
grain processing.                                                  feeding and labeling machines, strip packaging, form fill &
                                                                   seal machines, carton filling, fully automatic bag making
An important factor which has provided substantial
                                                                   machinery and automatic micro processor controlled
stimulation to the food processing equipment industry
                                                                   packaging machines.
is the emphasis on the rapid growth of processed food
exports from India. With this, the need for adopting               The packaging machinery industry, like other industrial
superior technology, food processing and packaging                 machinery, is de-licensed under the current Industrial
machinery to ensure quality has become very important              Policy and is eligible for 100% FDI under automatic
for Indian food products in the international market which         approval.
demands high quality standards. Food Processing Sector is
expected to grow at a healthy pace considering the rapid           Water Pollution Control Equipment
changes in food habits and consumerist culture developing
                                                                   The various categories of water pollution control
in the country. The machinery manufacturers have honed
                                                                   equipment broadly include waste water treatment
their expertise in manufacturing dairy machinery and other
                                                                   plants, drinking water treatment plants and effluent
core equipment of food processing machinery.
                                                                   treatment plants. As water is a scarce commodity,
The approximate export and import figures of food                  preservation and reuse of water has assumed great
processing machinery (HS code 8438) for the year                   importance and with growing awareness of preventing
2007-08 were Rs.209.83 crore & Rs. 348.21 crore                    water pollution and stringent environment control
respectively and during the year 2008-09 (upto Dec                 standards being enforced for various process industries,
09) the export was Rs.275.31 Crore and import was                  the water/waste water treatment industry has a good
Rs.421.35 crore. The food processing machinery can                 scope for growth.
be classified under the general category of industrial
machinery which is de-licensed under the current                   Water/waste water treatment is the process of removing
industrial policy and this sector qualifies for 100% FDI           contaminants and it includes physical, chemical and
under automatic approval.                                          biological processes to remove physical, chemical
                                                                   and biological contaminants. The primary treatment
Packaging Machinery Industry                                       is the first step in the treatment process and involves
                                                                   the removal of pollutants that settles or floats. The
Packaging Machinery Industry Sector has acquired
                                                                   common industrial equipments are clarifiers and oil –
considerable importance due to growing realization that
packaging of products be it consumer or industrial is one of the   water separator devises. The secondary treatment is
key areas of marketing strategy. Developments in packaging         designed to substantially degrade the biological content
technology have not only contributed to improving aesthetic        of the sewage. The common equipments are activated
appeal of the products but also the shelf life. In some cases      sludge, filters, biological reactors etc. The tertiary

                                                                 Annual Report 2009-10

     treatment is a polishing step to remove contaminants          emitted), particle size and desired collection efficiency.
     that missed in the primary and secondary treatment            The air pollution control equipments are broadly
     and removal of suspended solids, refractory organics          classified under the categories such as Settling Chambers,
     and toxic components. Tertiary physical processes are         Cyclone and multi –cyclones, Bag Filters, Wet Scrubbers,
     filtration and carbon adsorption. Chemical processes          Spray Tower, Venturi Scrubber, Ionizing Scrubber and
     are used to remove inorganic and organic, resistant to        Electrostatic Precipitator.
     biodegradation. Chemical process includes precipitation,
                                                                   The industry is in position to do basic and detailed
     oxidation and    neutralization. The biological processes
                                                                   engineering and supply of plants on turnkey basis.
     involve biodegrading. Organisms such as bacterial, fungi,
                                                                   Some of the indigenous units have collaborations
     yeasts and algae are commonly used to break down the
                                                                   with internationally reputed firms in this field.       Air
     organic matters. The cell tissues are then removed from
                                                                   pollution control equipment is de-licensed and is
     the treated water by physical method like clarification.
                                                                   eligible for automatic approval upto 100% Foreign Direct
     The complete plants are manufactured mostly in                Investment.
     the organized sector and many of the equipments
                                                                   Industrial Gears
     are manufactured in the Small Scale Sector as well.
     Reputed foreign companies from US, Germany, France,           Gears are a means of changing the rate of rotation of a
     Sweden and UK have either set-up their own facilities         machinery shaft. Gears being an important part of a
     in India or have collaboration with Indian Companies.         machine have immense usage within various industries.
     The industry is capable of meeting major domestic             These industries include automotive industries, coal plants
     requirements. However, there is need for continuous           industry, steel plants industry, paper industry, in mining
     up-gradation in technology especially with regard to          and many more. In these industries they behold a wide
     power consumption and efficiency. The industry is             area of application. They are used in conveyors, elevators,
     included in the Industrial Machinery Sector and is a          kilns, separators, cranes and lubrication systems.
     de-licensed one and is also eligible for 100% FDI under
                                                                   Gearbox is defined as a metal casing in which a train of
     automatic approval.                                           gears is sealed. The manufacture of gears and gear boxes
                                                                   involve high precision machining and accurate assembly
     Air Pollution Control Equipment
                                                                   as mechanical power is to be transmitted noiselessly and
     Air pollution particularly in the country especially in       with minimum losses. Different types and sizes of gears
     metropolitan cities and large towns has assumed great         such as spur gears, helical gears, worm gears, spiral gears
     significance with the adoption of stringent environmental     and many other kinds are manufactured in the country.
     control standards for various industries. Hence our           The demand for gears and gear boxes predominantly
     pollution control equipment industry has acquired             depend on the growth of industrial machinery, machine
     importance. Further judicial pronouncements have              tools, and consumer & automobile sector. Considering
     given a definite direction and urgency for adoption of        the industrial growth prospects, particularly in automobile
     air pollution control measures.     Industrialization and     sector, the demand for gears and gear boxes is expected
                                                                   to grow at a healthy pace. The industry is delicensed and
     urbanization have resulted in a profound deterioration
                                                                   is eligible for 100% FDI under automatic route.
     of India’s air quality. India’s most severe environmental
     problem, come in several forms, including vehicular
     emissions and untreated industrial smoke.
                                                                   Metal Container Industry

                                                                   This industry is delicensed. The principal types of metal
     The choice of control method depends on factors such as
     the nature of pollutant, flow-rate (amount of pollutant       (tin) containers are food containers generally known as

 Department of Industrial Policy & Promotion

OTS (Open Top Sanitary) cans and General Line Containers      Paints & Allied Products Industry
for packaging non-food commodities such as paints,
                                                              The Paints & Allied Industry has been exempted from
lubricants, pesticides, etc.
                                                              compulsory licensing, and comprises two sectors, viz.
There are a large number of units in the small scale sector   organised sector and small scale sector. The Paints & Allied
mainly manufacturing 18 litre capacity oil containers.        Products Industry mainly consists of paints, enamels,
The production during 2008-09 was 39,069 tonnes and           varnishes, pigments, printing inks, synthetic resins, etc.
production during 2009-10 (up to December 09) was             These play a vital role in the economy by way of protecting
                                                              national assets from corrosion. The market share for
23,832 tonnes.
                                                              organized share is approximately 57% whereas share for
The export & import of tin container during 2008-09 was       Small & Medium Enterprises (SME) sector is approximately
Rs. 698.95 crore and Rs.162.25 crore respectively.            43%. The organized sector comprises of about 10-12 players.
                                                              The market share of top five players is given at Table 7.6.
Newsprint Segment                                                                    table 7.6
                                                                S.          Name of the Industry            percentage
The Newsprint industry was delicensed under the                No.
Industries (Development & Regulation) Act, 1951                 1 Asian Paints (India) Ltd. (APIL)              55%
since July, 1997. The paper mills producing newsprint           2 Goodlass Nerolac Paints Ltd.                  11%
conforming to BIS standards and supplying to newspaper             (GNPL)
                                                                3 Berger Paints                                 10%
publishers are considered for inclusion in Schedule of
                                                                4 ICI (India) Ltd.                               7%
Newsprint Control Order, 2004 enabling them to avail            5 Jenson & Nicholson Ltd. (J&N) &                6%
exemption of excise duty. There are at present 101 mills           Others Players in organized Sector
including two Central Public Sector units and two State
                                                              The production during 2008-09 was 5,41,876 tonnes.
Public Sector units, which are manufacturing newsprint        During the current year 2009-10 (up to December 09), the
paper with a total installed capacity of 15.8 lakh tonnes.    production was 5,64,091 tonnes. India is self sufficient in
The domestic production of newsprint is 11.0 lakh tonnes      the production of paints.
for the year 2008-09 and 5.65 lakh tonnes in the year
                                                              The export & import of Paints & allied products during 2008-
2009-10 (April – October).
                                                              09 was Rs.5,873.27 crore and Rs.3,587.34 crore respectively.
The Production, Import and Export of newsprint during
the last four years are as given Table 7.5.
                                                              Photo Goods Industry
                                                              Photo Goods Manufacturing Industry is a de-licensed
                        table 7.5
                 (UNITS: LAKH TONNES)                         industry. Photo Goods comprise of black and white,
                                                              colour products, medical imaging films and special photo
              pRODUC-      CONSUMp-     IMpORt       eXpORt
                                                              sensitive goods. The industry caters to mass consumption
                tION         tION
                                                              in health sector, in the amateur and professional cinema,
 2004-05          7.65         14.38          6.79     0.05
                                                              camera films and graphic art films for education and
 2005-06          9.13         15.88          6.85     0.10   defense requirements. Photo Goods are also required
 2006-07         10.32         18.20          7.92     0.04   for the aerial survey purposes.

 2007-08         10.39         19.28          8.94     0.04   The production of Photo Films/Roll Film during 2008-09
 2008-09         11.04         20.91          9.93     0.06   was Rs.44.28 crore and production during 2009-10 (up to
                                                              December 09) was Rs. 31.15 crore.
(Figures based on CMIE data,)
                                                              The Export & Import of Photographic or Cinematographic
Classically, nearly half of the requirement of newsprint in   Goods during 2008-09 was Rs. 168.17 crore and
the county is met by imports.                                 Rs. 1314.75 crore respectively.

                                                                    Annual Report 2009-10

     Paper Industry                                                   one of the high priority industries where FDI up to 100%
                                                                      is allowed on the automatic route in all activities except
     The paper industry in India is one of the 35 high                those requiring industrial license where Government
     priority industries having a bearing on socio-economic           approval is required. The entrepreneurs are required
     development of the country. The key social objective             to file only an industrial Entrepreneur’s Memorandum
     of the Government namely eradication of illiteracy               (IEM) with the Secretariat for Industrial Assistance (SIA)
     through compulsory primary education bears a direct              for setting up new paper unit or substantial expansion of
     relation with the paper industry. The Indian paper               the existing unit in permissible locations.
     industry plays a pivotal role in overall industrial
                                                                      There are about 708 units (the details are given in Table
     growth and provides the vital vehicle needed to propel           7.6) which manufacture pulp, paper, paper board and
     the knowledge based economy of the country in the                newsprint, out of which nearly 610 are in operation. The
     new millennium. The surging economic growth of                   total installed capacity is nearly 115 lakh tonnes out of
     the country has resulted in an overall average rate              which 11 lakh tonnes are lying idle due to closure of 98
     of growth of about 6% for the Indian paper industry              units. The Indian Paper Industry is in a fragmented state,
     against the world average of about 3%. With the                  consisting of small, medium and large paper mills, having
     recession taking route in December 2007, fears were              capacities ranging from 5 to 800 tonnes per day.
     expressed regarding its impact on the sectoral demand.
                                                                                               table 7.7
     Fortunately due to large indigenous consumer-base,
     the demand for cultural varieties of paper was not                                 SCALE OF   NO. OF pRODUCtION
     affected significantly. However the packaging sector                              OPERATION,  MILLS     ShARe
     did exhibit recessionary trends.                                                 TONS PER DAY             %
                                                                       Large             100-700            85        36
     With the emergence of open market economy leading to              Integrated
     reduced tariff barriers and the promulgation of Free Trade
                                                                       Medium           50 – 100           109        29
     Agreements with thriving neighboring economies, the
                                                                       Small               5 – 50          514        35
     competitiveness of the Indian paper industry has come
     in sharp focus on the fronts of costs and quality. Faced          total                               708       100
     with the various issues and challenges like availability
                                                                      Major players in paper sector are Ballarpur Industries Ltd,
     of fibrous raw material, technological obsolence, cost,
                                                                      ITC, Hindustan Paper Corporation, Tamil Nadu Newsprints
     quality and environment, the industry has taken steady
                                                                      and Papers, Orient Paper Mills, West Coast Paper Mills
     steps to enhance its competitiveness by way of addressing
     these issues.                                                    Ltd., Andhra Pradesh Paper Mills Ltd., Century Pulp &
                                                                      Paper and J. K. Paper. The Table No. 7.8 gives the installed
     Paper Industry in India was delicensed in July 1997. This is     capacities of these top 9 paper units.

                                                               table 7.8
                                      NAME OF THE COMPANY                           Installed Capacity (Tonne)
                    Ballarpur Industries Limited                                              381418
                    Itc Bhadrachalam Paperboards Ltd                                          315000
                    Hindustan Paper Corporation Limited                                       300000
                    Tamil Nadu Newsprint & Papers Limited                                     230000
                    Orient Paper Mills                                                        171000
                    The West Coast Paper Mills Ltd                                            163750
                    The Andhra Pradesh Paper Mills Ltd                                        153500
                    Century Pulp & Paper                                                      153170
                    J K Paper Mills                                                           147000

    Department of Industrial Policy & Promotion

Distribution of Paper Mills in the Country                            tonnes per day. Most plants still use old technology
                                                                      of chemical cooking and chlorine bleaching. Only
Gujarat leads the tally with maximum number of
                                                                      a handful of units have gone in for state of the art
mills (127). However, most of these mills are based
                                                                      ECF bleaching.
on recovered paper. This is followed by Uttar Pradesh
which has got 115 mills. However, the major players                                    table 7.9
                                                                                               (UNIT IN LAKH TONNES)
are located in southern and central part of the
country.                                                                   pRODUC-      CONSUMp-     IMpORtS eXpORtS
                                                                             tION         tION
Paper & Paperboard Segment                                       2004-05       57.9          57.2        1.9        2.7
                                                                 2005-06       58.9          58.7        2.9        3.0
India is self sufficient in most grades of paper and paper
                                                                 2006-07       61.3          61.4        3.5        3.4
boards. Traditionally, only certain specialty papers
have been imported in to the country to meet the local           2007-08       62.9          64.2        4.5        3.2

requirements. The domestic production of Paper and               2008-09       65.4          66.5        4.3        3.2

Paper Board is 65.4 lakh tones for the year 2008-09 and      (Figures based on CMIE data,).
40.84 lakh tones in the year 2009-10 (April to October).
                                                             l        Production from large plants (with capacity above
                                                                      100 TPD) account for nearly one third of the total
Salient Features of Indian Paper Industry
l      The industry presents a mixed picture with
                                                             l        The average capacity of paper machine is about
       production sizes varying from 5 tonnes to over 800

                                                                   Annual Report 2009-10

            14000 TPA as against the world average of 32,000         modern expressways. All types of tyres required to meet
            per annum.                                               the domestic demand are manufactured in India. These
                                                                     tyres include Moped tyre weighing 1.5 kg to Off the Road
     l      The paper industry is working towards evolving
                                                                     tyres for Earthmovers which weigh about 1.5 tonnes,
            energy efficiency norms and has taken significant
                                                                     Bias Ply tyres to rugged all steel radial truck tyres to high
            steps to address the problem of energy and
            environment.                                             performance passenger car radial and tubeless tyres etc.
                                                                     India is one of the few countries worldwide which has
     l      The Industry is a major employer in the rural sector     attained self sufficiency in manufacturing a wide range of
            as most mills are located in the hinterland.
                                                                     tyres for all applications.

     Rubber Goods Industry                                           Indian Tyre Industry consists of 36 Companies with 51
                                                                     tyre manufacturing plants. The 10 large tyre companies
     The Rubber Goods Industry excluding tyre and tubes,
                                                                     account for 95% of industry turnover in value and
     consists of about 4400 Small and tiny units generating
                                                                     tonnage terms. The industry has estimated turnover
     about 4.5 million direct jobs. The rubber industry
                                                                     of Rs.25,000 crore in 2009-10. It has estimated exports
     manufactures a wide range of products like conveyor
                                                                     to the tune of Rs.3,000 crore in 2009-10. Indian tyres
     belts, rubber hoses, surgical gloves, Balloons and
                                                                     are exported to over 75 countries worldwide. About
     rubber moulded goods, etc. The main raw materials
                                                                     15% of domestically manufactured Truck and Bus
     used by the rubber goods manufacturing industry are
                                                                     tyres are exported. Exports are in highly competitive
     Natural Rubber, various types of Synthetic Rubber,
                                                                     environment. India’s share in world tyre market is 5%.
     Carbon Black, Rayon, Rubber Chemicals etc. The main
                                                                     Three Indian Companies are in the list of top 25 Global
     raw materials used by the Rubber Goods Industry are
                                                                     Tyre companies.
     natural Rubber, Synthetic Rubber, Styrene Butadiene
     Rubber (SBR), Poly Butadiene Rubber (PBR) and Carbon            All large Indian tyre companies have initiated major
     Black, etc.                                                     capacity   expansion      programmes.     New     greenfield
                                                                     investments are also in the pipeline.
     The Rubber Goods Industry had an annual turnover of
     Rs.14,100 crore in 2008-09 against Rs.13,656 crore in
                                                                     Salt Industry
     2007-08. The estimated turnover of the industry for the
     year 2009-10 is Rs.15000 crore. The industry exported
     goods worth Rs.2750 crore in 2008-09 as against Rs.2594
     in 2007-08. The Rubber Goods worth Rs.3200 crore is             India continues to hold 3rd position in the production of

     estimated to be exported in 2009-10.                            salt in the world after China and USA with an average
                                                                     annual production of about 191 lakh tones and second
     Tyre Industry                                                   largest producer of iodised salt next to China. From an
                                                                     era of short fall and import at the time of independence,
     Tyres play an integral role to ensure mobility including
                                                                     the country has made spectacular progress in the
     movement of passengers and essential goods across the
                                                                     production of salt due to the pragmatic policies of the
     urban and rural landscape of the country using all types
                                                                     Government. In a very short period of time, sufficiency
     of vehicles ranging from carts, tractors, trucks and buses
                                                                     was achieved (in 1953) and made a dent in the export
     to the latest generation passenger cars that ply on the

 Department of Industrial Policy & Promotion

market. Since then the country has never resorted to          June next year till on set of monsoon season. However
imports.                                                      in case of Tamil Nadu, it starts from January and ends
                                                              in October.
Salt is one of the essential items of human consumption.
The per-capita consumption of salt in the country is          Production
estimated at about 17 Kg, which includes edible as well
                                                              The target of salt production and actual production
as industrial salt. The current annual requirement of
                                                              achieved during the last five years is as under;
salt in the country is estimated to be 60 lakhs tonnes
for edible use (including requirement of cattle) and                                  table 7.10
95 lakhs tonnes for industrial use. Caustic soda, soda                                                           Lakh MT
ash, chlorine etc. are the major salt-based industries.                     Year          target         Production
Besides, about 24 lakh tonnes of salt is exported every
                                                               2005-06                      180             189.69
                                                               2006-07                      180             178.98
Salt is manufactured mainly by solar evaporation               2007-08                      185             178.45
of seawater, sub-soil brine and lake brine.       Sea salt
                                                               2008-09                      185             191.51
constitutes about 73% of the total salt production in the
                                                               2009-10 (Upto Nov.)          190             162.68
country. Salt manufacturing activities are carried out in
the coastal states of Gujarat, Tamil Nadu, Andhra Pradesh,
                                                              For iodisation of salt and to meet the needs of industrial
Maharashtra, Karnataka, Orissa, West Bengal, Goa and
                                                              sector, emphasis is being laid on manufacture of high
hinter land State of Rajasthan. Among these States, only
                                                              purity salt. Up-gradation of raw salt quality to meet
Gujarat, Rajasthan and Tamil Nadu produce salt surplus
                                                              this requirement is done by encouraging establishment
to their requirement. These three states produce about
                                                              of salt washeries and refineries. Salt Department has
78%, 10% and 9% respectively of the total salt produced
                                                              facilitated establishment of 68 salt washeries / refineries
in the country and cater to the requirement of all the salt   till Novmber,2009 and all the units are registered with
deficit and non-salt producing states.                        the Salt Commissionerate have commenced commercial

The salt works having an area up to 10 acre set up by         production.

individuals or group of individuals are exempted from
the payment of the Cess under the Salt Cess Act, 1953
and Rules made thereunder. Similarly, salt exported
to foreign countries is exempted from payment of

Private sector plays a dominant role contributing over 88%
of the salt production, while the public sector contributes
about 2%; the co-operative sector contributes about

Salt manufacturing season commences with the
closure of monsoon i.e. by 15th August and last up to                              Harvesting of Salt

                                                                 Annual Report 2009-10

                                                                                        table 7.12
                                                                             CATEGORY WISE AREA HELD IN ACRES

                                                                      Year        I         II      III      IV      total
                                                                    2005       447255     22851 36786 43474 550366
                                                                    2006       442115     22772 35169 42010 542066
                                                                    2007-08    445506     24407 30426 48831 549170
                                                                    2008-09    490782     23662 29290 49876 593610
                                                                    2009-10    488691     23666 28786 49498 590641

                    Mechanized Stacking of Salt                    Distribution
                                                                   Railways play an important role in transporting salt from
     Salt Works And Acrege Under Salt Production
                                                                   three surplus states to the entire length and breadth
                                                                   of the country. On an average about 60% of edible
     There are about 12,000 salt works, mostly in small
                                                                   salt is transported by rail from production centers. The
     sector, engaged in the production of salt. The total area
                                                                   remaining quantity moves by road and waterway.
     under salt production is about 5 lakh acres. The salt
     manufacturing activities provide direct employment to         Arrangement has been made to move salt to various states
     about 1.5 lakh persons. Salt works are categorized into       under Preferential Traffic and sponsored programmes
     four groups                                                   on the requirement basis. Railways has granted graded
                                                                   concession in freight for transportation of ordinary
             I      Area more than 100 acres,                      iodised salt depending upon distance to which salt is
             II     Area more than 10 acres and less than 100
                                                                   Iodised Salt
             III    Co-operative societies holding areas up to     With a view to ensure universal access of iodised salt for
                    10 acres per member                            the prevention and control of Iodine Deficiency Disorders
                                                                   (IDD) in the country, Salt Commissioner’s Office has
             IV     Area less than 10 acres.
                                                                   been identified as the Nodal Agency for creation of
     The category wise details of number of salt works and         adequate salt iodisation capacity, monitoring production
     area held for the last five years is furnished below: -       and quality of Iodised Salt at production centres and
                                                                   monitoring distribution of Iodised Salt in the entire
                         table 7.11
                                                                   country, under National Iodine Deficiency Disorders
                                                                   Control Programme (NIDDCP) being implemented by
          Year          I       II      III       IV   total       the Ministry of Health & Family Welfare, Government
                                                                   of India. Salt Department has facilitated establishment
      2005            705      617     1956     9776 13054
                                                                   of 834 salt iodisation units including refineries with
      2006            704      610     1951     8192 11457         an annual installed capacity of 149 lakhs tonnes till
      2007-08         710      612      172     10827 12321        30th November,2009. All the salt iodisation units are
      2008-09         623      590      168     9990 11371         registered with Salt Commissionerate. The production
                                                                   and supplies of iodised salt during the last five years is
      2009-10         609      588      173     10566 11936
      (Upto Nov.)                                                  given in Table 7.12.

 Department of Industrial Policy & Promotion

                            table 7.13                                          and refined free flow iodised salt packets,
                                          ( Figures in Lakh MT)                 Model Salt Works, Model Iodisation Plant.
            Year               Production          Supplies                     Pamphlets were distributed to create
 2005-2006                        49.84             48.27                       awareness on IDD and benefits of use of
 2006-2007                        51.54             49.50                       iodised salt amongst general public.
 2007-2008                        49.61             48.64
                                                                         e.     A Programme sponsored by Tamil Nadu
 2008-2009                        53.68             49.23
 2009-10                          37.31             30.85                       Salt Corporation for Development of
 (Upto Nov.)                                                                    Women Ltd., through the District Collector,
                                                                                Villupuram was organized at Markanam
Salt Department periodically reviews availability, price
                                                                                Salt Factory. The students of various
and quality of iodised salt associating state Governments,
                                                                                schools were taught about the method of
Iodised Salt Manufacturers, traders and other stake
holders. The following activities were organized by the                         Salt Manufacture and use of iodised salt
Salt Department, during 2009-10 (Up to Nov.).                                   and quality control measures in the Salt
                                                                                Test Laboratory.
       a.          National Workshop on strengthening of
                   Internal/ External Quality Assurance in the           f.     Global IDD Prevention Day was celebrated
                   Quality Control Laboratories functioning                     at various salt producing centres & meetings
                   under the Salt Commissioner’s organization                   ware organized to create awareness among
                   was held at Gandhidham from 28th August                      general public about IDD and benefits of
                   2009 to 30th August 2009 with support from                   consuming iodised salt.
                   International Council for the Control of IDD
                   (ICCIDD), New Delhi and Global Alliance
                   for improved Nutrition (GAIN), New Delhi.
                                                                  Export of common salt and iodised salt is permitted under
       b.          Two days National Multi Sectoral Workshop
                                                                  Open General License (O.G.L). Salt is exported mainly to
                   on “National Iodine Deficiency Disorder
                                                                  Japan, Vietnam, UAE, UK, Quatar, Korea, Muskat, China,
                   Control Programme” was held at New
                                                                  Malaysia, Kenya, Nepal, Bangladesh, Indonesia, Bhutan,
                   Delhi on 19th & 20th November 2009 by
                                                                  Sri Lanka, Dubai, Kuwait etc. Export of salt during the last
                   Directorate General of Health Services,
                                                                  five years is given in Table 7.13.
                   New Delhi.

       c.          A State Level consultation for salt workers
                   was organized by Mahatma Gandhi Labour
                   Institute, Ahmedabad from 4th November
                   2009 to 5th November 2009.

       d.          The Ministry of Information and
                   Broadcasting, Press Information Bureau
                   has conducted a Bharat Nirman Public
                   Information Campaign-cum-Exhibition at
                   Chidambaram, Cuddalore Districts from 5th
                   to 9th September 2009 and Salt Department
                   took part in the Campaign. It exhibited
                   various brands of Iodised Crystal/Powder                   Loading of Salt in Ship for Export

                                                               Annual Report 2009-10

                           table 7.14                            22.17 crore for the implementation of the scheme. The
                                        (Figures in Lakh MT)     scheme has been evaluated by the National Institute
                    Year                   Quantity              of Rural Development (NIRD), Hyderabad.

      2005-06                                29.77               Other AchIevements
      2006-07                                18.97               (i)    Salt Department is paying special attention to
      2007-08                                18.93                      the welfare of labourers engaged in salt industry
                                                                        by extending financial assistance for executing
      2008-09                                24.38
                                                                        various welfare schemes viz.
      2009-10                                15.09
      (Upto Oct.)                                                       –       Medical facilities to salt workers and their

     Labour Welfare Activities and Development                          –       Drinking water facilities in salt works.
     Works                                                              –       Educational facilities to the children of salt
     (I)   Namak Mazdoor Awas Yojana
                                                                        –       Rest sheds and crèches in salt works.
     Salt Department attaches utmost importance to
                                                                        –       Recreational facilities to labourers and their
     improving the quality of life of workers engaged in
     salt industry. A Central Sector Plan Scheme called                         wards.
     ‘Namak Mazdoor Awas Yojana was formulated by                       –       Cash Rewards to the children of Salt
     the Govt. of India to improve the living standards of                      Workers.
     salt workers by providing shelters preferably at their
                                                                 Besides, financial assistance is also provided for
                                                                 undertaking various schemes for the benefit of salt
                                                                 industry. The expenditure on development and labour
                                                                 welfare works during last five years is given in Table
                                                                 7.16: -

                                                                                            table 7.15
                                                                                                         (Figures in Lakh Rs. )
                                                                       Year     Development    Labour       total
                                                                                   works    welfare works Expendi-

                                                                  2003-04             109.91             27.68       137.59
            Dwelling units constructed under Namak
                     Mazdoor Awas Yojana                          2004-05             147.40             49.00       196.40

     place of working. The scheme envisages construction          2005-06             139.95             38.69       178.64
     of 5000 dwelling houses during the 10th Five Year
                                                                  2006-07             128.78             36.51       165.29
     Plan with a total outlay of Rs. 24.75 crore 90% of the
     cost of construction is provided by Govt. of India and       2007-08             110.29             15.51       125.80
     the balance 10% by beneficiaries, NGOs and State             2008-09                53.81           25.22        79.03
     Governments. 4881 houses have been completed and
                                                                  2009-10                18.04              7.0       25.04
     111 houses are under construction (November 2009).
                                                                  (Upto Nov.)
     Till now, Govt. of India has released an amount of Rs.

  Department of Industrial Policy & Promotion

(I)    Children Reward Scheme                                     (Iii)   New Area Surveyed
As per the scheme approved by the Ministry of Commerce            A survey of the Runn of Kutch area in the Indo-Pak
& Industry for grant of rewards to the meritorious school         border of Barmer District in Rajasthan for assessing its
children of salt labourers, a sum of Rs.25.165 Lakh was           suitability for Salt Manufacture was carried out by Central
disbursed to the 2000 children giving preference to               Salt & Marine Chemical Research Institute (CSMCRI),
female children during the year 2009-10                           Bhavnagar (Gujarat) and the Commissioners of Industries
                                                                  Department, Govt. of Rajasthan. CSMCRI, Bhavnagar has
(Ii)   Model Salt Farm                                            been requested to carry out further study in the area
The Salt Department has been making concerted efforts             to enable the Government of Rajasthan to take further
to educate Salt Manufacturers in general and small salt           necessary action in this regard.
producers in particular for improving the quality of salt
                                                                  (Iv)    Augmentation of Salt Exports
to meet the stringent standards of industrial salt and to
compete in the international market.                              A study on the export potential of salt in Gujarat was
                                                                  entrusted to M/s. Price Water House Coopers Pvt. Ltd.
With a view to providing scientific know-how for the
                                                                  The study was jointly financed by the Govt. of Gujarat &
construction of salt works and proper brine management
                                                                  Central Govt. as per recommendation of GRAB. Follow
and transfer of technology to the salt manufacturers,
                                                                  up action is being taken as per recommendation of M/s.
another Model Salt Farms has been established at Ganjam
                                                                  Price Water House Coopers Pvt. Ltd.
in Orissa in addition to Model Salt Farm set up at Nawa
City Distt. Nagaur (Raj.). Both the Model Salt Farms              Indian Salt Industry poised to become a major international
have been established to demonstrate the production of            player in export of salt. Government of Gujarat has
good quality salt by proper brine management & made               allotted about 86102 Acres of land for opening the major
open to the Salt Manufacturers of concerned states. It is         salt works to produce 20 lakh tones of salt besided other
proposed to use the Model Salt Farms to impart training           marine chemicals like Potash, Bromine etc.
to the Salt Manufacturers/Workers for improving the
quality of salt by re-modeling and re-alignment of the            (V)     Survey of Availability of Sub- Soil Saline
existing salt works in association with the scientists of                 Water in Rajasthan
CSMCRI, Bhavnagar.
                                                                  It is proposed to undertake a survey of availability of
On the request of the Salt Manufacturers Association and State    sub-soil saline water in Rajasthan through National
Govt’s suitable sites have been identified for establishment of   Geophysical Research Institute (NGRI), Hyderabad.
Model Salt Farm at Markanam in Tamil Nadu.
                                                                  Soaps & Detergents Industry
                                                                  detergents and toilet soaps are delicensed. Soaps and
                                                                  Detergents Industry include Laundry soaps, synthetic
                                                                  detergents, and toilet soaps including bathing 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. Toilet
                                                                  soap is, however, dominated by the multinationals
                 Model Salt Farm in Orissa                        units.

                                                                 Annual Report 2009-10

     The production of soaps during 2008-09 was 4,77,793           Wood Based Industry
     tonnes and Detergents was 9,43,320 tonnes respectively.
                                                                   Plywood, Veneers of all types and other wood based
     During 2009-10 (up to December 09), the production of
                                                                   products such as particle board, medium density fibre
     soap has been 4,37,353 tonnes and that of detergents
                                                                   board have been delicensed vide Department of Industrial
     6,06,635 tonnes respectively.
                                                                   Policy & Promotion’s Press Note No.11 (1997 Series) dated
                                                                   the 17th July,1997. Plywood forms the major segment of
     Watch Industry
                                                                   the wood-based industry in the country.
     The Watch Industry in India comprises units both in the
                                                                   In terms of Press Note No. 9 (1998 Series) dated 27.8.98,
     organised and the small scale sector. Most of the watches
                                                                   issued by the Ministry of Industry, Department of
     are being manufactured under the electronic system. The
                                                                   Industrial Policy & Promotion, entrepreneurs who wish to
     prospects for the wrist watch industry in the country are
                                                                   obtain approval from the Government for setting up any
     encouraging. The demand for watches has been growing          wood based project should obtain prior clearance from
     over the years. Considerable emphasis has been laid on        the Ministry of Environment & Forests before submitting
     up gradation of technology in this field.                     the applications to the Administrative Ministry/SIA and

     The production of wrist watches during 2008-09 was            enclose a copy of “in principle” approval given by the

     11,927 thousand numbers. During the current year              Ministry of Environment & Forests.

     2009-10 (up to December 09), the production was 8,558         The total production of Plywood during 2008-09 was
     thousand numbers. Apart from above, the production of         117,05,116 Sq. Mtrs. and production during 2009-10 (up to
     Alarm time pieces during 2008-09 was 406.49 thousand          December 09) was 1,23,10,462 Sq. Mtrs. The production
     numbers. During the current year i.e. 2009-10 (up to          of Particle Board during 2008-09 was 54,59,175 Sq. Mtrs.
     December 09), the production was 3,324 thousand               and production during 2009-10 (up to December 09) was
     numbers.                                                      44,08,571 Sq. Mtrs.

     The export & import of Clocks and Watches during 2008-09      The export & import of wood and articles of wood during
     was Rs. 212.36 crore and Rs. 661.52 crore respectively.       2008-09 was Rs.7990.93 crore and Rs.6,263.61 crore

     Department of Industrial Policy & Promotion                                           CHAPTER 8

Attached and Subordinate Offices
and Other Organisations

Attached Offices                                                (b)   Compilation and Release of Economic Statistics

                                                                The Office of Economic Adviser compiles and brings out
Office Of The Economic Adviser                                  the following publications:

The Office of the Economic Adviser is an attached Office        l     Wholesale Price Index (WPI) Numbers for India,
of the Department of Industrial Policy & Promotion,                   every week for primary products and commodities
Ministry of Commerce & Industry. The Office was set up                in broad group ‘fual and power’ and a monthly
in 1937. This Office renders advice for the formulation               release for all commodities.
of policies having impact on the country’s industrial           l     Trends in wholesale prices and release of weekly,
development and for promoting investment. It also                     monthly and annual indices of wholesale prices
renders advice on trade, fiscal, competition and labour               [press release is available at website (http://
related issues having bearing on industrial performance.    ].
Further, the Office compiles and disseminates Wholesale         l     Handbook of Industrial Policy and Statistics (An
Price Index (WPI) besides various economic and statistical            annual publication).
data related to industrial sector.                              l     Monthly report on production of six infrastructure
                                                                      industries viz. crude oil, petroleum refinery
I.      Functions                                                     products, coal, electricity, cement and finished
                                                                      steel (also available at
The main functions of the Office of the Economic Adviser
include the following:                                          l     The Monthly Economic Scenario.

                                                                (c)   Coordination functions
(a)     Policy oriented functions
                                                                l     The Office co-ordinates, for the Department of
l       Economic policy inputs to the Department of
                                                                      Industrial Policy & Promotion, the work relating to
        Industrial Policy & Promotion (DIPP) and relating             preparation of Monthly Summary for the Cabinet,
        to Industrial development.                                    material for Pre-Budget Economic Survey, etc.
l       Rendering advice relating to formulation of             l     The Office co-ordinates research work concerning
        Industrial Policy, International Trade (PTA/FTA/              Industrial Sector.
        RTA) and tax issues related to industry.
                                                                l     The Office co-ordinates work relating to proposals
l       Analysis of trends of industrial production and               for changes in fiscal policy regime relating to
        growth.                                                       industrial goods and renders advice on matters
l       Examination of WTO issues pertaining to market                pertaining to changes in the tariff structure and
        access for non-agricultural commodities (industrial           fiscal incentives for industry.
                                                                II.   Major Activities
l       Examination of Labour issues, inter-alia, concerning
        labour laws and labour market issues.                   A:    Scheme for Development of Business Service Price
l       Comments on various legislative proposals relating            Index (BSPI)
        to tax, industrial relations, companies, labour laws,
        essential commodities act, draft Cabinet Notes,         During the Tenth plan, the Planning Commission approved
        etc.                                                    a Plan Scheme with the objective of developing Service

                                                                  Annual Report 2009-10

     Price Index for the country. The scheme ‘Development of        on the new series is at an advanced stage and is expected
     Business Service Price Index’ continues in the Eleventh        to be released shortly.
     Plan. The scope of the scheme includes development of
     Business Service Price Index and collection of price data      Research Studies:
     for the new series of Wholesale Price Index (base 2004-
                                                                    The scheme for conducting “Research Studies in Industrial
                                                                    Development” has been in operation since 1989-90.
     Ten service sectors namely Banking, Trade, Business            Earlier it was a Plan Scheme and was converted into Non-
     Services, Postal, Telecommunication, Air Transport, Port       Plan from the year 2007-08. Under this Scheme, research
     Services, Insurance, Rail Transport and Road Transport         studies are undertaken in-house as well as through
     have been identified in the initial phase for development      various research institutes. The objective of these studies
     of an experimental Service Price Index. An Expert              is to disseminate information on important issues with
     Committee on Development of Service Price Index under          a view to encouraging discussions & facilitating policy
     the Chairmanship of Prof. C.P. Chandrasekhar has been set      formulation on various issues.
     up to provide the technical guidance on the conceptual
                                                                    An expenditure of Rs. 2.71 lakhs was incurred under the
     and methodological issues. The Committee has so for,
                                                                    Non-Plan Scheme in 2007-08 and an expenditure of Rs
     accepted the experimental indices for six sectors, namely
                                                                    10.90 lakhs was incurred during 2008-09. An allocation
     Railways, Trade Services, Business Services, Banking,
                                                                    of Rs. 20 lakhs has been made for the Scheme during
     Postal Services and Telecommunication. In addition, a
                                                                    2009-10. A study relating to ‘Input Output Table, for
     new sector namely, ‘Health Services’ is being taken up.
                                                                    India 2004-05’, was awarded during 2008-09 under this
     B:     Revision of WPI series with Base:2004-05:               scheme. The Office has received the draft final report of
                                                                    the study, which is under review.
     The Working Group on revision of Wholesale Price
     Index numbers set up under the Chairmanship of Prof.           Under this scheme 32 studies have been published so far.
     Abhijit Sen, Member, Planning Commission submitted             All these studies have been well received and found to be
     its Technical Report to the Government in May, 2008.           useful in policy formulation as well as implementation of
     The Report is available on the website of Office of the        plan programmes for the industrial development of the
     Economic Adviser.                                              country.

     After the submission of the technical report, the Office
                                                                        Tariff Commission
                                                                        .   e   x   e

     of the Economic Adviser has tentatively finalized the
     commodity basket of about 700 items and have assigned          Tariff Commission came into existence on 2nd September
     the weight to these commodities. The responsibility of         1997 with the mandate to evolve an overall tariff
     collecting backlog prices for manufacutred products from       structure keeping in view the interests of various sections
     the factories up to December, 2007 was given to National       including producers, traders and consumers as also the
     Sample Survey Organization (Field Operation Division). The     international commitments.
     collection of backlog data from January, 2008 and regular
                                                                    The broad role & responsibilities encompassed in the
     supply of data has also been entrusted to NSSO (FOD) and
                                                                    Terms of Reference (TORs) as revised in September 1998
     they have started work after recruiting data collectors on
                                                                    are as follows:
     contractual basis. Price data has started flowing in from
     various factories and Office of the Economic Adviser is in     (a)                 To make recommendations as an expert body, on
     the process of scrutinizing, computerizing and validating                          matters referred to it by Government regarding
     the same. Based on their data and data collected from                              fixation of tariff and all tariff related issues in
     M/o Agriculture and other agencies, a test run of the                              relation to trade in goods and services, keeping
     series for the data up to 2007 has been done. The work                             in view the interest of various sectors including

  Department of Industrial Policy & Promotion

       production, trade and consumers and taking into        Additional Secretary. The Commission may also have 3
       the account the international commitments. The         to 5 part-time / full time members, so far, apart from the
       Commission should aim at rationalisation.              Chairman and Member Secretary, no other member has
                                                              been appointed.
(b)    To study critical market access offers received from
       trading partners as part of WTO framework and          I       Studies Completed
       to advise the Government on the opportunities
       and challenges generated by these offers (as per       Following studies have been completed during the year
       reference made by the Government).                     2009-10

(c)    To make a detailed impact analysis on select sectors   (1st April, 2009 to 31st December, 2009)
       like textiles, agriculture, automobiles, information   (i)     Report on Milk availability and its price
       technology, chemicals, steel and engineering
       goods through a multi-disciplinary team.               (ii)    Cost price study of B-Twill Jute Bags

(d)    To examine the transition-period required for          (iii)   Report of study on umbrellas
       select industries and to recommend the gradual
                                                              (iv)    Report on Cost study for levy sugar pricing
       phasing out of the tariffs to facilitate the reform
       process as referred to it by the Government from       (v)     Evolving modalities for fixation of selling price of
       time to time.                                                  various Alkaloids produced by GOAWs Neemuch
                                                                      & Ghazipur
(e)    To identify the tariffication process for select
       economic activities as referred by the Government      II      Studies at the advance stage of completion
       from time to time.
                                                              (i)     Critical analysis of the impact of Port Tariff
(f)    To monitor the tariff changes in the competing and             Regulation and the effect of such regulation on
       trade-partner countries and maintain an inventory              EXIM trade.
       of tariff rates at a sufficiently detailed level.
                                                              (ii)    India’s requirement of mineral & other critical
(g)    To carry out technical studies on cost of production           commodities for next 2 decades and their source
       of different goods and services and their                      countries.
       competitiveness in relation to other countries.
                                                              III     Studies in progress
(h)    To render advice on issues referred to it by the
                                                              (i)     Rationalization of sugar zones
       Government on classification of goods, and
       products along with applicable tariff on such          (ii)    Study on Fixing per Km and per tonne rate for
       goods and products.                                            transportation of Fertilizer by road.

(i)    To undertake such other tasks as may be assigned       (iii)   Study on fixation of normative transportation
       by the Government from time to time.                           charges to be paid by the FCI to Rice millers for
                                                                      transportation of CMR Paddy and CMR Levy rice
(j)    To present an annual report to the Government of
                                                                      beyond 8 KMs and reviewing of normative milling
       its activities.
                                                                      charges for raw and par boiled rice.
The erstwhile Bureau of Industrial Costs & Prices (BICP)
                                                              (iv)    Study on actual cost of production of potable water
was merged with the Tariff Commission on 1.4.1999.
                                                                      using various techniques and rural sanitations.
Presently, the Commission is headed by a full-time
Chairman of the rank of Secretary to Government of India,     (v)     Study on impact of various FTAs on petrochemicals,
assisted by a full-time Member Secretary in the rank of               plastics, pharmaceuticals.

                                                                   Annual Report 2009-10

     (vi)     Diagnostic study of 56 food parks to ascertain         (xx)    Study on impact of reduction in current tariffs on
              their present status vis-à-vis measures for                    skimmed milk powder/whole milk powder, butter
              revitalization.                                                and butter oil on India dairy industry as well as
                                                                             Indian dairy farmers as per India’s commitment to
     (vii)    Study on Pricing Structure of Iodized Branded Salt
                                                                             the WTO.
              (Vacuum & refined) vis-à-vis unbranded salt.
                                                                     (xxi)   Cost price study on determining the element wise
     (viii)   Study on Casting of Pharmaceuticals/ computer/
                                                                             cost of production of Cement Plants in H.P.
              cosmetics / Plastic goods manufactured in
              exempted States vis-à-vis not exempted States.         (xxii) Study on Pricing of Steel on the basis of raw
                                                                            material cost for integrated steel plant, sponge
     (ix)     Sectoral Impact of Chinese imports on the
                                                                            iron plant and rolling mills.
              competitiveness  of domestic manufacturing
              Industries.                                            (xxiii) Study on Socio-Economic Impact of the occurrence
                                                                             of the Avian Influenza in West Bengal, Assam and
     (x)      Cost price study on B-Type Hessain Jute Bags.
                                                                             Tripura on Poultry Industry and farmers in these
     (xi)     Study for the Cost of Pregnancy Detection Kit (                States and in the rest of the country.
              Card/ Cassettee Format) Supplied in Nishchay
                                                                     (xxiv) Cost based study of the Petroleum Products of the
              Brand Name reserved for Government of India
                                                                            National Oil Marketing Companies.
              supplies only.
                                                                     IV      Other Activities
     (xii)    Cost price study of single super phosphate (SSP).
                                                                     Other activities being taken by the Commission during the
     (xiii)   Study on impact of reduction in current tariff
                                                                     year are as under:-
              on Indian Poultry Industry as per country’s
              commitment to the WTO.                                 (a)     Strengthening of database for monitoring global
                                                                             trade & policies trends of goods & services as also
     (xiv)    Study on the capital goods of setting up steel
                                                                             WTO issues.
              projects of various types.
                                                                     (b)     Providing real-time information on the website
     (xv)     Study of export dependent industries which are
                                                                             of the Tariff Commission including requisite
              hit by slow down – e.g. Leather, Textile and Gem
                                                                             disclosures under Right to Information Act, 2005.
              and Jewellery.
                                                                     (c)     Continuous training of employees on emerging
     (xvi)    Assessment of production capacity of Bidders for               trade and industry aspects as also fast changing
              various types of condoms.                                      organizational concepts/techniques.

     (xvii) Cost price study of Ammonium Sulphate –                  (d)     Modernization cum updation of library and
              determine the Normative Cost of Ammonium                       documentation facilities to enable the organization
              Sulphate.                                                      to deal effectively with its mandate.

     (xviii) Study on the Impact of various FTAs on Chemicals        (e)     Sustainably ensure the state-of-the-art computer
              Industries Comprising of Organic Chemicals,                    network infrastructure for e-functioning.
              Inorganic Chemicals, Dyestuffs Pesticides.
                                                                     Office of the Salt Commissioner, Jaipur
     (xix)    Study of the analysis of share of various
              tariffs (taxes and fees of Govt.) in cost of           The Salt Organisation with its headquarters at Jaipur
              construction of residential apartments/houses          is headed by the Salt Commissioner who is assisted
              infrastructure.                                        by five Deputy Salt Commissioners, nine Assistant

 Department of Industrial Policy & Promotion

Salt Commissioners and other supporting staff. There          standards on explosives, safety fittings of road tanker,
are five Regional Offices functioning at Chennai,             cylinders/containers values and regulates are carried out
Mumbai, Ahmedabad, Jaipur and Kolkota, besides                for ensuring safety as per statute.
the field offices in all the salt producing states. The
                                                              PESO administers the following Acts/Rules :-
Salt Organisation is responsible for administration of
the Salt Cess Act, 1953 and rules made thereunder.            Explosives Act,1884
The other main functions of the organisation include
planning the production targets, distribution of salt         1.     Explosives Rules,2008.
and price surveillance, promotion of technological            2.     Gas Cylinders Rules,2004.
development, maintenance of standards and quality
                                                              3.     Static & Mobile Pressure Vessels (Unfired ) Rules,
improvement of salt, planning, formulation and
monitoring the       execution of development and
labour welfare schemes particularly construction of           4.     Notification No.GSR 625 (E) dated 07.08.1983,
houses for salt workers under Namak Mazdoor Awas                     regarding Acetylene.
Yojna, custody and superintendence of departmental
                                                              Petroleum Act, 1934:
salt lands, promotion of export and pre-shipment
inspection and rehabilitation of salt works affected          1.     Petroleum Rules, 2002
by natural calamities. Salt Department’s website is           2.     Calcium Carbide Rules, 1987
                                                              3.     Cinematography Film Rules, 1948
The Salt Commissioner’s office is identified as the nodal
agency for implementation of National Iodine Deficiency       Major Activities and Functions:
Disorders Control Programme (NIDDCP), a plan scheme
                                                              1.     To approve layout and construction plans/licensing
being administered by the Ministry of Health and Family
                                                                     for explosives manufacturing units, Petroleum
Welfare, in so far as it relates to monitoring production
                                                                     Installations, Terminals, Jetties, Refineries,
and quality of iodised salt at production level and its
                                                                     Acetylene, Generation Units, LPG, Botling Plants,
distribution to the consuming centers.
                                                                     CNG, Auto LPG dispensing Stations etc.
Salt Commissioner has been declared as the inspecting         2.     To regulate and monitor the sale and transaction
agency for the issue of export-worthy certificate for                of explosives throughout the country;
export of salt under the Quality Control and Export
                                                              3.     To regulate and implement safety norms for over
Inspection Act, 1963.
                                                                     2.7 lakhs licensed premises used for manufacture,
                                                                     storage, transport and handling of explosives and
Subordinate Offices
                                                                     other hazardous substance;

Petroleum and Explosives Safety Organization                  4.     To advise Port, Airport and Railway authorities
                                                                     regarding transportation of explosives and other
The Petroleum and Explosives Safety Organization
                                                                     hazardous substances;
(PESO) is headed by the Chief Controller of Explosives
with headquarter at Nagpur. It is the nodal agency to         5.     To impact training to Police & Security personnel,
look after safety requirements of the Explosives and                 and other relevant officers in detection and safe
Petroleum Sectors. PESO has five circle offies located at            handling of explosives;
Kolkata, Mumbai, Chennai, Faridabad and Agra and 18
                                                              Revenue and Expenditure:
sub-circle offices and field offices at different places in
the country. It also has a testing station at Gondkhairy,     The Organization has continuously been revenue surplus.
Nagpur, where different tests with respect to codes and       The trend of growth in revenue and expenditure of the

                                                                  Annual Report 2009-10

     Organization for the last five years are as below in table     c.     The Trade Marks Registry at Ahmedabad, Chennai,
     8.1                                                                   Delhi, Kolkata & Mumbai and
                             table 8.1
                                              (Rupees in Crore)     d.     The Geographical Indications Registry (GIR) at
            Year            Revenue          Expenditure                   Chennai.
                                                                    During the year 2008-09 the Patent Office (including
      2005-06                35.36               11.33
                                                                    Designs Wing) generated an income of Rs. 157.38
      2006-07                39.45               11.86              crore, the Trade Marks Registry (including Geographical
      2007-08                40.38               13.05              Indications Registry) generated Rs. 69.20 crore and
      2008-09                32.21               17.25              NIIPM/PIS generated Rs. 0.05 crore. As against this, non-
      2009-10 upto           39.50               15.71              plan expenditure by the Patent Office (including Designs
      31.12.2009                                                    Wing), the Trade Marks Registry (including Geographical
                                                                    Indications Registry) and NIIPM/PIS was Rs. 18.54 crore,
     Modernisation and Computerisation:
                                                                    Rs. 9.54 crore and Rs 1.05 crore respectively. Thus against
     Under the e- governance project of Government of               total revenue of Rs. 226.63 crore earned during 2008-
     India, the working of PESO had been re-engineered and          09; the actual expenditure was Rs 29.13 crore, leaving a
     the entire day-to-day functioning made online. PESO has        revenue surplus of Rs. 197.50 crore. It is expected that in
     launched a Single Window approach for Dissemination            the financial year 2009-10 the revenue would be higher
     of Information through vibrant, bilingual user friendly        than in the previous year.
     website ( The wide area network
                                                                    The government has taken several initiatives to modernize
     (WAN) and related IT infrastructure (hardware and
                                                                    and streamline the intellectual property administration in
     software) have been upgraded according to the
                                                                    the country in view of the strategic significance assumed
     requirements of the users and organisation.
                                                                    by intellectual property in the context of globalization
                                                                    and liberalization of the Indian economy and increasing
     Office of the Controller General of Patents, Design
                                                                    thrust on innovation and creativity. These include both
     and Trade Marks                                                legislative and administrative measures to create a modern
     The Office of the Controller General of Patents, Designs       facilitative set-up. Through the official website of the
     and Trade Marks (CGPDTM) is a statutory office that            CGPdTM, namely, all laws and rules
     administers the Patents Act, 1970, the Designs Act             administered by the office are made available. Under the
     2000, the Trade Marks Act 1999 and the Geographical            modernization project four state-of-the-art IPO building
     Indications of Goods (Registration and Protection)             were constructed at Delhi, Mumbai, Kolkata and Chennai.
                                                                    Besides establishing limited online search, novelty search
     Act, 1999. CGPDTM also advises the Government on
                                                                    facilities have been strengthen by procuring various
     matters relating to Intellectual Property Rights.     The
                                                                    patent databases. Through the e-filing facility which was
     Patent Information System and the National Institute of
                                                                    established under the project, 7566 patent applications
     Intellectual Property Management (NIIPM), both located
                                                                    and 3959 trade marks applications were received till 31st
     at Nagpur, come under the purview of the CGPDTM.
                                                                    December, 2009. Awareness creation is one of the major
     CGPDTM supervises the functioning of:
                                                                    planks of the modernization scheme, as this will educate
     a.     The Patent Offices (including the Designs Wing) at      the IP right holders of the benefits of registration of their
            Chennai, Delhi, Kolkata & Mumbai.                       rights as also educate the general public, particularly
                                                                    the business community. These programmes are also
     b.     The Patent Information System (PIS) and National        expected to sensitise the enforcement agencies such
            Institute of Intellectual Property Management           as the state police forces, the judiciary, etc. In 2008-
            (NIIPM) at nagpur.                                      09, more than 100 such programmes were organised in

 Department of Industrial Policy & Promotion

2008-09.A brief summary of the activities of the various         within India. During the period 2008-09 PIS, supplied
offices under CGPDTM is given below:                             copies of 85 patent specifications and conducted 24
                                                                 patent searches. Total 43 patent searches have been
The Patent Office: The Patent Office performs statutory
                                                                 disposed during the period April to December 2009.
functions relating to the grant of patents for inventions,
renewal of patents, amendments, restoration of lapsed            National Institute of Intellectual Property management
patents, grant of compulsory licences, registration of           (NIIPM) Nagpur is a specialized institute for catering to
patent agents etc. under the Patents Act 1970. The               training, education, research and think tank functions in
Head Office of Patent Office is at Kolkata with branch           the field of Intellectual Property. It provides training to
offices at Chennai, Delhi and Mumbai. The offices deal           Examiners of Patents & designs and regularly conducts
with the applications, for Patents originating within            refresher courses for them. It also organizes awareness
their respective territorial jurisdictions. A total 36,812       programme for users such as patent attorneys, scientists,
applications including 30,651 from foreign countries were        researchers etc. Total 28 programmes were conducted
filed during 2008-09 registering an increase of about 4.53       by NIIPM during 2008-09 and 17 programmes have been
per cent over the previous year. The number of patents
                                                                 conducted of during the period April to December 2009.
granted during 2008-09 went upto 16,061 against
15,316 in 2007-08. The number of patent applications             Industrial Designs Wing: The registration of industrial
filed during the period between 1st April, 2009 and 31st         designs under the Designs Act 2000 is done by the Designs
December,2009 was 24335. 4251 patents were granted               Wing of the Patent Office located at Kolkata. Filing of
during this period.                                              designs applications in branch offices at Chennai, Delhi and

Indian inventions are also increasingly using the Patent         Mumbai is also permitted. The thrust of the modernization
Cooperation Treaty (PCT) route to obtain national patents        programme of the Design office includes a transition from
as well as patents in other countries. Total number of           the essentially paper-based examination procedure to an
international applications filed by the Indian applicants        IT based system supported by computerization of existing
using the PCT system was 887 during the year 2008-09             records, on line search facilities setting up a user-friendly
as against 707 applications in the year 2007-08.                 website and creation of digital library

World Intellectual Property Organization (WIPO), which           A total of 6,557 applications for registration of design
is a United Nations agency, specialized in the field of          were received in 2008-09 resulting 2.42 percent increase
Intellectual Property rights in its General Assembly             in filing. The number of new applications for design
meeting held in September-October 2007 at Geneva,                received during the period between April,2009 and
recognized the Indian Patent Office as an International
                                                                 December,2009 was 4370. 4802 designs were granted
Searching Authority (ISA) and an International Preliminary
                                                                 during this period.
Examining Authority (IPEA) under the Patent Co-operation
Treaty. This puts India in an elite group of 17 Patent offices   Trade Marks Registry (TMR): The Trade Marks Registry
recognized as ISAs and IPEAs.                                    (TMR) with its Head Office at Mumbai and branch offices
                                                                 at Ahmedabad, Chennai, Delhi and Kolkata, administers
Patent Information System (PIS): Patent Information
                                                                 the Trade Marks Act, 1999 and maintains the register of
System, (PIS) at Nagpur maintains a comprehensive
                                                                 trade marks (Table 8.2 to 8.6).
collection of patent specifications and patent related
literature on worldwide basis and provides technological         A total of 1,30,172 applications including 10,801 from
information contained in patent or patent related                other countries were filed during 2008-09 registering
literature through search services and patent copy supply        an increase of approximately 5.39 percent over the
services to various users of industry, R&D organizations,        previous year. Total 1,01,669 applications for trademarks
inventors, Government departments, undertakings/                 during the period from April to December 2009 have
entrepreneurs, business community and other IP users             been filed.

                                                                  Annual Report 2009-10

     The total number of registered trademarks in India             products, handloom products, handicrafts, textiles,
     during the period April 2008 to March 2009 is 1,02,257         processed food items, and spirits & wines. Till 31st March
     registering an increase of approximately 1.39 percent          2009 11 seminars/workshops had been conducted. The
     over the previous year. Total 7,55,335 trade marks have        Registry officials had participated as faculties in seminars
     been registered by 31st March 2009 and 9,084 trade
                                                                    workshops conducted by external agencies. Software has
     marks have been registered in India between 1st April
                                                                    been developed according to the workflow of GIR. The
     2009 to 31st December 2009.
                                                                    publication of Geographical Indications Journal has been
     The total number of registered trademarks in India as on       made in-house.
     31 December 2009 is 7,64,419 out of which the number

                                                                    Total number of Patent applications received through
     of Indian registered trademarks is 5,97,511.
                                                                    e-filing upto 31/12/2009 was 7566. Total number of
     The total IT solution of the Registry is an advanced stage     Trademark applications received through e-filing upto
     of implementation. This will enable TMR to provide
                                                                    31/12/2009 was 3959 and the number of on line public
     facilities for on-line filing through payment gateway and
                                                                    search in respect of Trademark made upto 31/12/2009
     web-enabled trade marks transactions. Ultimately, this
                                                                    was 26120.
     exercise will establish transparency and speedy disposal
     of trademark cases.                                            Intellectual Property Appellate Board
     Geographical Indications Registry (GIR): The GIR is a
                                                                    Intellectual Property Appellate Board (IPAB), a quasi
     statutory organization set up for the administration of
                                                                    judicial body was set up as a statutory Board by
     the Geographical Indications of Goods (Registration
                                                                    the Government of India on 15.9.2003. It has been
     and    protection) Act, 1999, which came into force
                                                                    established to hear appeals against the decisions of
     on 15th September 2003. The Registry is situated at
     Chennai. Total 106 Geographical Indications (GIs) have         the Registrar and to hear applications for rectification

     been registered as on 31st March 2009 and 11 GIs have          of entries in the Registrar of Trade Marks under the
     been registered in India between 1st April 2009 to 31st        Trade Marks Act, 1999, the Geographical Indication
     December,2009.                                                 of Goods (Registration and Protection) Act, 1999
                                                                    and Patents Act, 2005. IPAB has its headquarters at
     The list of registered GIs (products) inter-alia includes
                                                                    Chennai and it holds sittings, besides Chennai at New
     Darjeeling Tea, Pochampalli Ikat, Chanderi Fabric,
     Kota Doria, Kancheepuram Silk, Mysore Agarbathi,               Delhi, Mumbai, Kolkata and Ahmedabad. Presently,
     Mysore Silk, Madurai Sungudi, Kullu Shawl, Assam               Shri Z.S. Negi is Chairman of the Board, Ms. S. Usha
     (Orthodox), Nilgiri (Orthodox), Kani Shawl, Kashmir            is the Vice Chairman, Shri Syed Obaidur Rahaman is
     Pashmina, Kashmir Sozani Craft, Lucknow Chikan Craft,          Technical Member on the Trade Mark side and Shri S.
     Mango Malihabadi Dusseheri, Vazhakulam Pineapple               Chandrasekaran as Technical Member (Patents).
     etc., Total 165 number of Geographical Indications
     applications have been received till March 2009 and            The number of appeals/applications transferred from
     29 GI applications have been received between 1         st     various High Courts (Transferred Appeal / Transferred
     April,2009 to 31 December,2009.
                                                                    Rectification Application) and the number of original
                                                                    appeals/application     (Original   Appeal     /   Original
     GIR had conducted many awareness programmes
     throughout India to promote registration of the Indian         Rectification Application) directly filed before the

     Geographical Indications.     The Sectors being focuse         Intellectual Property Appellate Board are as given
     on are tea, coffee, rice spices, tobacco, horticulture         below:

 Department of Industrial Policy & Promotion

                                                       table 8.2
                                      PATENT CASES RECEIVED ( as on 31.1.2010)
 Cases Received     transferred      Transferred Rectification   Original    Original Rectification            TOTAL
                      Appeal               Application           Appeal           Application
                      APPEAL              APPLICATION            APPEAL          APPLICATION
Chennai                5                         14                 13                       33               65
Delhi                  5                          3                 19                       18               45
Mumbai                 4                          8                 13                        9               34
Kolkata                -                          2                  2                        7               11
total                 14                         27                 47                       67              155
                                                     table 8.3
                                      pAteNt CASeS DISpOSeD ( as on 31.1.2010)
     Cases           transferred        Transferred Rectification        Original   Original Rectification     TOTAL
    Disposed           Appeal                 Application                Appeal          Application
                       APPEAL                APPLICATION                 APPEAL         APPLICATION
     Chennai            5                            5                        5               1                     16
      Delhi             1                            1                         -              -                      2
     Mumbai             1                            -                        2               -                      3
     Kolkata             -                           -                         -              -                      0
      total             7                            6                        7               1                     21
                                                   table 8.4
                                   TRADE MARKS CASES RECEIVED ( as on 31.1.2010)
  Cases Received     transferred      Transferred Rectification       Original      Original Rectification   TOTAL
                       Appeal               Application               Appeal             Application
Chennai                53                           61               224                     214            552
Delhi                 208                          107               107                     501            923
Mumbai                 19                             7               44                     240            310
Ahmedabad              48                           21                65                      88            222
Kolkata                28                             4               91                     115            238
total                 356                          200               531                    1158           2245
                                                    table 8.5
                                TRADE MARKS CASES DISPOSED (as on 31.1.2010)
     Cases          transferred   Transferred Rectification   Original   Original Rectification                TOTAL
    Disposed          Appeal            Application            Appeal         Application
                      APPEAL           APPLICATION            APPEAL         APPLICATION
Chennai                53                       61            139                   78                        331
Delhi                 178                       78             32                   65                        353
Mumbai                 12                        4             12                   30                         58
Ahmedabad              45                       12             32                   23                        112
Kolkata                20                        3             10                   14                         47
                      308                      158            225                  210                        901

                                                        table 8.6
                              GEOGRAPHICAL INDICATION CASES RECEIVED ( as 31.1.2010)
  Cases Received      transferred     Transferred Rectification   Original Original Rectification              TOTAL
                         Appeal             Application           Appeal        Application
      Chennai               -                     -                2(1)              -                              3
* out of the three cases received one case has been admitted and numbered
  2 are under SR stage.

                                                                        Annual Report 2009-10

     Office of the Technical Adviser (Boilers)                            (ix)   Interpret the provisions of the Indian Boiler
     The office is headed by the Technical Adviser (Boilers).
     The functions of the Technical Adviser (Boilers) are to:             (x)    Deal with problems which are thrown up by
                                                                                 the manufacturers and users of boilers and
     (i)      Advise the Central Government on all matters                       others concerned and give necessary advice and
              relating to administration of the Boilers Act, 1923                guidance.
              and the Indian Boiler Regulations (IBR) framed
              thereunder.                                                 One-day/Two days workshops on Efficient Boiler
                                                                          Operation and maintenance to apprise the owners of
     (ii)     Deal with cases/matters on which direction is to
                                                                          boilers of the steps to be taken to optimize the efficiency
              be given to State Governments by the Central
              Government for carrying out execution of the                of their working boilers are being continuously conducted
              provisions of the Boilers Act,1923.                         through National Productivity Council to popularise the
                                                                          measures for energy conservation.
     (iii)    Deal with the work relating to framing or
              amendment of regulations for laying down the
                                                                          The Boilers Act, 1923
              standards for material, design and construction of
              boilers and also for regulating the inspection and          The Indian Boilers Act was enacted in 1923 to provide
              examination of boilers                                      mainly for safety of life and property from the danger
     (iv)     Examine proposals for amendment of the                      of explosion of boilers and for achieving uniformity
              regulations    including     drawings,    designs,          in registration and inspection during operation and
              calculations and specifications for submissions to          maintenance of boilers throughout the country. Since
              the Central Boilers Board                                   then there had been no major amendments to the Act.
                                                                          The legislation needed changes in consonance with the
     (v)      Advise the Chief Inspector/Director of Boilers of
                                                                          evolving developments and changes in the technology of
              the States and Union Territories on all difficult
                                                                          fabrication, operation, testing and inspection of boilers.
              cases including inspection, material testing and
              non-destructive examination involving use of                Accordingly, The Indian Boilers Act, 1923 has been
              X-rays, Radio Isotopes, Ultrasonic waves, etc.              amended by the Indian Boilers (Amendment) Act, 2007
     (vi)     Evaluate quality management systems and                     (49 of 2007) with a view to provide a simplified and more
              production facilities of various firms for their            user friendly framework and also to protect manufacturer/
              recognition as well known steel makers,                     users interest without sacrificing the safety of boilers.
              foundries, forges, tube & pipe makers, material             The notification for giving effect to many provisions of the
              testing laboratories and remnant life assessment            Amendment Act has been published on 27th May, 2008
              organisations under IBR, 1950 in order to cut               and remaining provisions would be implemented after
              down the inspection delays and increased                    framing of Rules/Regulations by the Central Government/
              availability of the boiler components without               Central Boilers Board which is underway.
              sacrificing the safety and quality of the boilers and
              its components.                                             Central Boilers Board
     (vii)    Conduct meeting of all Technical Sub-Committees             The Central Boilers Board, constituted under Section
              of the Central Boilers Board as Chairman of these
                                                                          27A of the Boilers Act, 1923 (5 of 1923) is responsible
                                                                          for making regulations for laying down the standards for
     (viii)   Deal with various matters in connection with the            material, design, construction as well as for registration
              administration of the Boilers Act, viz. scrutiny of the     and inspection of boilers. The Board comprises of the
              proposals regarding amendment of the IBR, 1950              representatives of the Central and State Governments,
              in line with the latest technological developments          Bureau of Indian Standards, Boiler and boiler component
              in the developed countries all over the world.              Manufacturers, National Laboratories, Engineering

 Department of Industrial Policy & Promotion

Consultancy agencies, users of Boilers and other interests            for incorporation in Union Accounts.
connected with the Boiler Industry.
                                                               (b)    Preparation of the Annual Finance Accounts and
The Secretary, Department of Industrial Policy and                    Appropriation Accounts for the Departments/
Promotion is the ex-officio Chairman and Technical Adviser            Ministries relating to Industry.
(Boilers) is the ex-officio Member-Secretary of the Board.     (c)    Administration and other related aspects
The Board deals with the problems of both the users                   pertaining to the Accounting organization.
and manufacturers and takes policy decisions for
proper growth of the boiler manufacturing industry in          Pay And Accounts Office (PAO)
the country. The Board formulates the Indian Boiler
                                                               Pay and Accounts Office is the basic unit of the Accounting
Regulations incorporating the latest developments taking
                                                               Organization. Its major functions includes:-
place in the Boiler Industry all over the world. The Board’s
responsibilities have also increased with the induction of     (a)    Arranging all kinds of payments including
800 MW Supercritical Pressure Boiler Units in the country.            disbursement of Salary and Loans, Grants in Aid,
                                                                      Subsidies to various autonomous bodies on behalf
Evaluation Committee of the Board considered fourteen
recognition cases for recognition as Inspecting Authority,            of the Ministry. Personal claims of the employees
Competent authority, Well-known Steel Makers, Tube/                   of the Ministry, attached and subordinate offices
Pipe Makers, Well Known Foundry and Material Testing                  were also released.
Laboratory under Indian Boiler Regulations, 1950 and           (b)    Compilation of Monthly Accounts for all the
granted recognition/renewal in twelve cases during                    payments made and receipts realized on behalf of
the period under report. Based on the decisions of the                the Government.
Board, 7 amendments to various provisions of Indian
Boiler Regulations are under process.                          (c)    Authorization of Pension.

Principal Accounts Office                                      Internal Audit Wing (IAW)

The Departmentalized Accounting Organization of the            Internal Audit Wing carries out audit of the Accounts of
Department of Industrial Policy and Promotion was set up       various units of the Ministry including the Accounting
in April 1976. The Accounting Organization is headed by        Organization itself and Public Sector Banks and Grantee
the Chief Controller of Accounts, who is assisted by two       institutions to the extent required.
Controllers of Accounts, One dy. Controller of Accounts
                                                               The Internal Audit Wing inspected 11 offices apart from
in New Delhi and Nine pay and Accounts Officers in
                                                               performance audit of 21 Growth Centres during the year
different parts of the country. The Principal Accounts
                                                               2008-09. During this period IAW also conducted audit of
Office , New Delhi functions as the administrative centre
of the Organization. There is also an Internal Audit Wing.     subsidy claims of N.E Region.
It’s Headquarters is at New Delhi. The Principal Accounts      As per the directions of Ministry of Finance, pay fixation
Office also supervises the Pay and Accounts of other           cases in r/o Departments arising due to revision of Pay
Departments such as Department of Heavy Industry,
                                                               were audited, before release of second installment of
Department of Public Enterprises and Ministry of Micro
                                                               pay arrears, by this Office.
Small and Medium Enterprises.

A brief description of various functions performed by          Performance
these units is given below:-
                                                               Computerized GPF Annual Statements for the year 2008-
(a)    Consolidation of Monthly Accounts received              09 were issued. The entire monthly accounts as well as
       from all Pay and Accounts Offices for onward            yearly accounts such as Appropriation Accounts, Finance
       transmission to the Controller General of Accounts      Accounts etc. were prepared and submitted to the

                                                                   Annual Report 2009-10

     Office of the Controller General of Accounts as per the         can be accessed instantly with all the relevant
     prescribed time schedule.                                       information.

     Payment of salaries and other related claims of the
                                                                     National Manufacturing Competitiveness Council
     staff and personnel of the Ministry and the attached
     and subordinate offices were attended to promptly.              The National Manufacturing Competitiveness Council
     Pension Payment Authorities for revision of pensionary          (NMCC) was set up in September, 2004, to function as
     benefits to the pensioners were also issued promptly as         inter-disciplinary and autonomous body to serve as a
     per instructions issued by Department of Pensions and           policy forum for credible and coherent policy initiatives
     Pensioners Welfare from time to time.                           in manufacturing sector. The main objective of the NMCC
                                                                     is to energize and sustain the growth of manufacturing
     e-Governance Practices and Automation                           industries in the country and also help in implementation
                                                                     of strategy. Dr. V. Krishnamurthy heads the Council as
     Compact                                                         Chairman in the rank of Union Cabinet Minister and Shri V.
                                                                     Govindarajan is the Member Secretary. The Government
     ‘COMPACT’ an automation accounting software by                  has nominated members in the Council from large, medium
     the Office of the CGA which was introduced in the               and small industries, academic and technical institutions
     Pay and Accounts Offices to integrate payment                   and senior representatives from the Government.
     and accounting Functions, has now become fully
     operational and all the Pay and Accounts Offices                Sectoral/Sub-Sector Engagement
     are running on the software successfully. Another
                                                                     Sub-sector wise engagements are a part of the national
     measures like e-payment are also being initiated to
                                                                     strategy for enhancing competitiveness of manufacturing
     facilitate full automation and to reduce the total
                                                                     sector and fit into overall manufacturing strategy
     time taken in processing of payment.
                                                                     appropriately. The NMCC has identified the following
                                                                     sectors that emerge in the forefront of growth and
                                                                     employment because of unique opportunities they
     A new software called Prao2elekha was introduced in this        enjoy at the present time. Textiles and garments;
     Office to facilitate the budget related automation. All the     Leather and Leather goods; Auto components; Drugs
     Detailed Demands for Grants for the corresponding year          & pharmaceuticals; Food processing; Chemicals
     are now fed on this software by the Principal Accounts          & Petrochemicals; IT hardware/electronics; Skill
     Office. The software is linked to e-lekha and COMPACT           Development; Ports & Shipping industry; Capital goods
     and to keep track of the budgetary control.                     industry; Paper industry; Minerals & Metals and Steel. In
                                                                     addition to the above mentioned sub-sectors, NMCC has
     Central Plan Scheme Monitoring System                           been constantly holding discussions on various sectors
                                                                     having growth potential for global competitiveness
     A new portal called Central Plan Scheme Monitoring              and employment generation. Meeting of Sub-Groups
     System (CPSMS) has been introduced to keep track of             for these sectors have been held with the concerned
     funds released through the plan schemes. Initially              Ministry/Department and other stakholders and follow
     it was introduced and integrated with the e-lekha               up action taken.
     only but now it has been made more user friendly
     and introduced independently. The Main functions                Setting up a High Level Committee on
     and benefits of this include on-line monitoring of
                                                                     Manufacturing (HLCM)
     the plan funds being issued including subsidies,
     Grants-in-Aid, Loans, Investments etc. It has been              In order to ensure speedy resolution of the problems
     designed to keep online details of releases which               involving different agencies and effective implementation

 Department of Industrial Policy & Promotion

of the Strategy, a High Level Committee on Manufacturing,        the HLCM. The Sub-Committee is serviced by the NMCC
under the Chairmanship of the Hon’ble Prime Minister             and concerned Ministries provide required assistance
for resolving policy issues that may arise in the                to the Sub-Committee. The mandate of the Empowered
operationalisation of the plans for the growth of various        Sub-Committee includes formulation/review/approval of
subsectors of manufacturing exists. Other Members                policy papers and proposals for submission to the HLCM,
include the Finance Minister, Commerce and Industry              and monitoring of the implementation of the decisions
Minister, Deputy Chairman, Planning Commission,                  of HLCM. The Empowered Sub-Committee has held six
Chairman, Economy Advisory Council, Principal Secretary          meetings so far.
to the PM and Ministers in charge of Sub-Sectors
concerned, with the Chairman, NMCC, as Member                    Follow-up Action on the NSM
Convener. The Member Secretary, NMCC, along with
                                                                 The NMCC has prepared the National Strategy for
Secretaries of Economic departments, are permanent
                                                                 Manufacturing (NSM), after extensive consultations with
invitees. The Committee has so far met three times.
                                                                 the various stakeholders. In order to ensure speedy and
The HLCM has identified Textiles and Garments; Food &
                                                                 effective implementation of the National Strategy for
Agro Processing; Leather and Footwear; IT Hardware and
                                                                 Manufacturing (NSM) and to resolve the policy issues
Electronics; Skill Development and Problems of small &
                                                                 that may arise in the implementation of the National
medium industries, including cluster development, as
priority sector areas. Out of the six priority sectors, action   Manufacturing Strategy, a High Level Committee on
plans for growth of Food & Agro Processing and Textiles          Manufacturing (HLCM) under the Chairmanship of the
& Garments have been approved by the HLCM under                  Hon’ble Prime Minister exists. The NMCC had written
the Chairmanship of the Hon’ble Prime Minister. The              to all concerned Departments of the Government of
proposals approved by the HLCM are being implemented             India, to take follow up action on the recommendations
by the Ministry of Food Processing Industries and the            contained in the NSM pertaining to them and to send
Ministry of Textiles.                                            suitable action plans to the NMCC for further processing
                                                                 and taking to the Empowered Sub-Committee of the
Constitution of the Empowered Sub-Committee                      HLCM for decision making.

                                                                 Visionary Leaders For Manufacturing (VLFM)
With a view to facilitating the functioning of the HLCM, an      Programme
Empowered Subcommittee has been constituted under
the Chairmanship of Dr. V. Krishnamurthy, Chairman               The Visionary Leaders for Manufacturing (VLFM)
NMCC, to formulate/review/approve policy papers and              Programme aims at creating visionary leader at the
proposals for submission to the HLCM. The other members          level of senior and middle management of large and
of Empowered Sub-Committee are Minister of State                 medium companies in the Indian manufacturing
(Industry) and Member (Industry), Planning Commission.           industry by establishing an advanced and innovative
The Chairman of the Empowered Committee may, from                education and training programme with the technical
time to time, invite Ministers concerned, for consultation.      assistance of JICA as one of the initiative of Indo-
Member Secretary, NMCC; Finance Secretary; Secretary,            Japan Cooperation in the field of “Human Resource
Department of Expenditure; Secretary, Department of              Development” as agreed during the visit of Hon’ble
Commerce; Advisor to the Finance Minister and PMO                Prime Minister to Japan from 13th to 16th December,
Representative have been designated as the permanent             2006. This is in the first ever unique programme jointly
invitees to the Empowered Sub-Committee of the HLCM.             run by the Government, Private and academia. Three
This Empowered Sub-Committee monitors the follow                 Apex institutes are jointly running this programme
up actions on implementation of the decisions taken by           along with CII and JICA. The programme consists of
the HLCM and also acts as the main executive body of             following four opportunities:

                                                                      Annual Report 2009-10

     (i)     Opportunity ‘A’ - Programme for Visionary                  support for SMEs (v) Entrepreneurial and Management
             Corporate Leaders in Manufacturing:   The                  Development for SMEs (vi) Design clinic; (vii) Quality
             participants of the second batch visited Japan in          Management Standards and Quality Technology Tools;
             June, 2009 for study visit. The convocation for the        (viii) Intellectual Property Rights; (ix) Market assistance/
             second batch was held on 27.7.2009 along with              SMEs and technology upgradation activities – Ministry
             initiation of the third batch.    The third batch is       of MSME in cooperation with TIFAC/CSIR; (x) Marketing
             presently undergoing training.                             support/assistance to MSMEs (Bar Code); (xi) NMCC Toy
                                                                        development Centre.
     (ii)    Opportunity ‘B’ - Programme for Visionary
                                                                        Out of the above 11 schemes, 7 schemes are already
             Executives in Manufacturing:       Candidates of 1st
                                                                        approved and under implementation by the Ministry
             Batch and 2nd Batch have been successfully placed
                                                                        of MSME under Public Private Partnership (PPP) mode.
             with the industry with substantial increase in their
                                                                        The remaining schemes are in the process of evaluation
             emoluments. Admission process for 3rd Batch is             and will be implemented after obtaining the necessary
             going on at IIM, Calcutta.                                 financial approval.

     (iii)   Opportunity ‘C’: Based on the decision taken
                                                                        Promotion of ICT in Manufacturing
             in the 10th Apex Committee meeting held on
             3.8.2009 a paper was prepared by CII and NMCC              l      The NMCC in partnership with Microsoft
             which was further discussed with JICA.             To             Corporation has launched A National
             operationalise the programme minutes of MoU                       Manufacturing Portal - ‘Project Vikas’ Portal on
             has been signed between JICA and NMCC on                          19.06.2007 with the objective of meeting overall
             15.9.2009. The programme was launched on                          competitiveness of the Indian manufacturing
             28.10.2009                                                        sector specially SME sector. It provides single
                                                                               point entry for the manufacturing units to
     (iv)    Opportunity ‘D’: The 1st batch completed their                    interact with each other, their customers,
             training in April 2009 and received their certificates            suppliers, financial institutions, training
             of completion of programme at the 2nd Annual                      institutions, Government and other regulatory
             Session of the VLFM Programme held on July 27,                    agencies. It also provides access to learning
             2009 in Mumbai. 2nd Batch is being conducted by                   contents through e-learning modules.
                                                                        l      The objectives of Project Vikas are:

     National  Manufacturing                  Competitiveness                        To address the development of soft
     Programme                                                                        skills including cluster level network and
                                                                                      common challenges of using ICT through
     As a part of National Strategy on Manufacturing,
                                                                                      creation of R&D linkages.
     Government had announced National Manufacturing
     Competitiveness Program (NMCP) to support the Small                             Capacity building with regional training
     and Medium Enterprises (SMEs) in their endeavor to                               institutes.
     become competitive. The objective of this programme is to                       Sharing of best practices and enabling
     ensure that the Small Scale Sector grows at a healthy rate,                      linkages within the SME cluster eco-system
     which is crucial for the overall growth of Manufacturing                         in 25 clusters across the country.
     Sector as also the National Economy. The programme
     has 11 schemes; (i) Application of Lean Manufacturing;             In the first two phases, clusters viz. Textiles in Tirupur,
     (ii) Promotion of ICT in Indian MSMEs; (iii) Setting up of         Pharmaceutical in Ahmedabad and Automotive
     Tool Room; (iv) Technology and Quality Management                  component in Pune, Leather Cluster in Agra and Chennai

 Department of Industrial Policy & Promotion

and Auto Cluster in Chennai and Textile Cluster in Ludhiana   c.       to suggest policy measures and immediate steps
have been taken up. The project is being extended to                   to boost exports of Indian manufactured goods
more clusters across the country.                                      in the face of appreciation of the rupee and
                                                                       high interest rates, particularly with respect to
Manufacturing Competitiveness Studies                                  labour intensive sectors like textiles, leather and
The Council has been engaging from time to time National
Productivity Council (NPC), Indian Council for Research       d.       to suggest policy measures to leverage FdI to
on International Economic Relations (ICRIER), Centre                   modernize manufacturing in India and create a
for Monitoring Indian Economy (CMIE), Federation of                    strong technological base.
Indian Chambers of Commerce & Industries (FICCI),
ICRA Management Consulting Services, Indian Institute         2.       The group submitted its report to the Hon’ble
of Foreign Trade (IIFT) and IIM Ahmedabad to conduct                   Prime Minister in September 2008. In order to
Research studies and surveys in the Manufacturing                      facilitate speedy consideration and follow up of
Sector, to assess the areas/sectors which can be explored              the recommendations of the Report submitted
which need attention, to improve the Manufacturing                     by the Prime Minister’s Group, Prime Minister’s
Sector in India, to achieve the sustainable 12% growth in              Office has requested Chairman NMCC to hold
the Industry, as envisaged in the “National Strategy for               necessary      preparatory   meetings      with   the
Manufacturing,” a document prepared by the NMCC. In                    concerned Ministries/Departments and suggest
addition, proposals have also been cleared for engaging                concrete policy measures and steps which can
some more consultancy organizations, such as Deloitte,                 be taken by Government for implementation in a
CRISIL and ICRA, for carrying out research studies in the              time bound manner. The meeting would also act
identified Manufacturing Sector.                                       as a platform for taking into account any inter-
                                                                       Ministerial issues that may arise in respect of any
Prime Minister’s Group Report - Action Taken so                        particular recommendation. The broad areas on
far                                                                    which the meetings are being or likely to be held
                                                                       include the following:
In January 2008, Prime Minister constituted a Group under
the Chairmanship of Dr. V Krishnamurthy, Chairman,            (i)      Manufacturing Policy
National Manufacturing Competitiveness Council (NMCC)
                                                              (ii)     Interest rate and exchange rate policies
to look into the reasons behind the sluggish growth of
the manufacturing sector and to suggest measures to           (iii)    Indirect Taxes and Domestic Value addition
ensure sustained high growth. The Terms of Reference
                                                              (iv)     Trade Policies
for the Group relate both to immediate and long-term
measures for ensuring a 12 to 14 per cent growth of           (v)      Technology Acquisition and Development
                                                              (vi)     Innovation
These were:-
                                                              (vii)    Regulations and Procedural reforms
a.     to suggest policy measures and a continuing
                                                              (viii)   Raw materials-Acquisition of assets abroad by
       mechanism to ensure sustained growth of the
                                                                       Indian companies
       Indian manufacturing industries for the next 10-
       15 years;                                              (ix)     Skills Development

b.     to suggest policy measures and immediate steps         (x)      Small & Medium Scale Manufacturing Industries
       to reverse the recent deceleration in the growth
       of the manufacturing industries;                       (xi)     Public Sector Undertakings

                                                                 Annual Report 2009-10

     (xii)    Infrastructure and Special Economic Zones                 held so far in the NMCC on various sectors relating
                                                                        to manufacturing which include Shipping Sector,
     (xiii)   Labour Reforms
                                                                        Aerospace, Technology Development, Monetary
     (xiv)    Industry Verticals                                        Policy, FDI Policy, SEZ, Acquisitions of raw materials
                                                                        abroad, Electric vehicle, Construction equipments,
     (xv)     Coordination with State Governments                       Machine tools and Telecom sector.
     (xvi)    Continuing Mechanism                                 4.   In each of the above areas, specific next actions
     3.       The details on each of the above mentioned areas          have been identified which the concerned
              are in the PMGR report. The NMCC has initiated            Ministries are taking up for decisions. There are
              the process to implement the recommendations              some areas in which further discussions are
              of the report and twenty one meetings have been           slated.

 Department of Industrial Policy & Promotion                                                  CHAPTER 9

Training, Research and
Design Institutes

Central Manufacturing Technology Institute,                      end of the previous year, projects of futuristic and current
Bengaluru                                                        technological relevance received approvals and funding
                                                                 commitments from the Ministry of Commerce and
Central Manufacturing Technology Institute(CMTI),                Industry for implementation in the 11th Plan. Notable
a premier R&D organization in the manufacturing                  amongst these initiatives are the following: - (i) Nano
technology, established in the year 1962, is an                  Manufacturing Technology Centre (NMTC), (ii) Applied
autonomous body, registered as a Society and under               Mechatronics Integration Facility (AMIF), (iii) Digital
the administrative control of Department of Industrial           Design Centre (DDC), (iv) An Academy of Excellence for
Policy & Promotion, Ministry of Commerce & Industry.             Advanced Manufacturing Technology (AEAMT) and (v) an
It is supporting Indian Industries to achieve excellence         exclusive common Testing Facility to service the needs of
in technology and stimulate economic growth. The                 the machine tool sector – Advanced Machine Tool Testing
Institute is active in metal working technology, evolving        Facility (AMTTF). The AMTTF is to be managed by the
solutions to national strategic initiatives and is a one-stop    beneficiaries themselves so that industrial investments in
destination for end-to-end solutions in manufacturing            innovation would be encouraged.
technology deployment. It functions through a Governing
                                                                 The implementation of these projects have commenced
Council, which has representatives from industries in
                                                                 and several activities in terms of Infrastructure creation
manufacturing sector, machine tool manufacturers,
                                                                 and R&D projects have been taken up. A high level
Government nominees and others.
                                                                 Research Advisory Board (RAB) has been constituted with
CMTI continues to support the Indian engineering industry        specialists from industry and Academia inducted to evolve
and various sectors through its value added services in          direction and oversee the R & D activities of CMTI.
manufacturing technology and product development/
                                                                 CMTI has established R & D linkages with 5 US universities
realization activities. It continues to play a vital role of a
                                                                 and Indian Institutes of Science, IITs and collaborative R &
catalyst in the application of manufacturing technology. The
                                                                 D projects have been initiated. Efforts are on to establish
Institute is equipped with trained manpower, equipment
                                                                 workable R & D linkages with institutions in Germany CMTI
and facilities for design, research, prototype production,
                                                                 is now focusing its attention on having revenue generation
manufacturing, testing, inspection, calibration, precision
                                                                 activities and regeneration of the R & D ethos of the
engineering, rapid product development, training and
                                                                 institute with engagement in futuristic R & D projects.
technical information.

In line with the national strategic imperatives to               Performance during the year
encourage R & D, enable technology generation and
                                                                 1.     XI Plan Projects on Advanced Technology Areas:
commitment to skills and knowledge enhancement,
CMTI has received support from the nation’s highest
                                                                 a)     Applied Mechatronics Integration Facility
level of decision makers including, the Department of
Industrial Policy and Promotion (DIPP), The National             Establishment of various laboratories such as
Manufacturing Competitiveness Council (NMCC), The                Mechatronics, Pneumatics and Hydraulic and the vision
Planning Commission, the Office of the Principal Scientific      lab has been completed. This would enable the Institute
Advisor, Department of Science and Technology, Leading           to undertake R & D in mechatronics and its application
industrialists and academics amongst others. During the          and integration in manufacturing.

                                                                   Annual Report 2009-10

     l     A Vision Laboratory has been established and                   modernized and Software and Hardware
           equipped with a high resolution Digital Cameras,               procurement for the establishment of a PLM
           lighting set up, optics and image processing                   platform has been initiated
           software tools to address the machine vision
                                                                     l    A state of the art CAD/ CAM system with high-end
           and online real time inspection. A project on
                                                                          software and hardware has been established.
           “DMD Vision” has been taken up under this
           activity.                                                 c)   Nano Manufacturing Technology Centre

     l     Parallel    kinematic   Machining      which   offers     1)   A Nano Manufacturing Technology Centre
           almost a spherical tool reach, lends flexibility               focusing on nano integrated manufacturing and
           in manufacturing complex components with                       Nano metrology is being set up under this new
           minimum set-ups reducing fixturing and job                     initiative dedicated to applied R&D in this area.
           handling leading to increase in productivity and               Facilities are being set up for Nano machining
           accuracy.                                                      / fabrication, characterization and for testing &
           A Swedish company, Exechon has developed
           Parallel Kinematic Machines, which can be                 2)   A Nano Technology lab with stringent
           practically deployed for industrial manufacturing.             environmental control is being established 10
           Machines based on their design are already being               meters below the ground to carry out Nano
           used in aerospace, automotive and other sectors                manufacturing and nano metrology. nano
           globally.                                                      metrology section will have a clean room class
                                                                          of 1000 and NEMS/ MEMS lab will have clean
     	     CMTI has entered into a research licence                       room class of 100 and 1000. Site for lab has been
           agreement with the Swedish company, which                      selected after extensive ground vibration studies
           enables the Institute to undertake R & D in the                and soil condition verification.
           areas of Parallel Kinematic Mechanisms, their
           applications in various areas of manufacturing            3)   Several advanced equipment like
           and developing technologies for manufacturing                  l      Atomic Force Microscope (AFM)
           complex components.
                                                                          l      Focused Ion Beam (FIB) machining system
           A group of Designers have been trained at CMTI,                l      Micro EdM
           in PKM technologies by the chief designer &
                                                                          have been procured and installed in the existing
           Technical Director of M/s Exechon, Sweden.
                                                                          under ground lab.
     l     Linkages are being established with Institutions in
                                                                          Advanced equipment like linear interferometers,
           Germany for collaborative R&D.
                                                                          X-Ray Diffractometer, Nano indenter etc are in an
     b)    Digital Design Centre                                          advanced stage of procurement.

                                                                     4)   Under CMTI’s initiatives for linkages with National
     Under the Digital Design activity, encompassing Virtual
                                                                          and International academic institutions, MoUs
     Manufacturing,     Virtual    Prototyping,     Simulation,
                                                                          have been entered into with 4 US Universities
     Product Life cycle Management, Product Database
                                                                          (Oklahoma State University, Western Michigan
     Management, etc. the following facilities have been
                                                                          University, Lawrence Tech. University and
                                                                          University of Michigan) for Research Training
     l     Design and manufacturing Computer Network                      of CMTI Scientists and for Collaborative R&D in
           / servers/ data back up facilities have been                   the areas of Ultra Precision machining systems

     Department of Industrial Policy & Promotion

        for turning, Laser Dressing system, thermal                     CAR-FhG committee, Director CMTI represented
        error compensation and MEMS applications in                     the manufacturing stream. A proposal for a flexible
        Machine Tools. Alternate / composite materials                  automated 3D vision based inspection system was
        for Machine Tool Structures, Nano Composite                     presented by him for joint R&D with Fraunhofer
        Structures, etc.                                                Institutes, Germany.

5)      To support the academia to take forward their                   l      The Director and Joint Director visited
        proven R&D concepts, CMTI is collaborating                             a few select institutions in Germany
        with IITs, IISc, etc. for realizing functional real life               and Sweden to explore international
        prototypes and control systems - for Abrasive Flow                     collaborative avenues for applied R & D
        Machining, Micro Stereo Lithography, etc.                              and augmentation of research capabilities
                                                                               at CMTI.
d)      Academy of Excellence for Advanced Manufacturing
        Technology (AEAMT)                                         2.   Design & Development

        The AEAMT has been established at CMTI to meet             l    The design and development of a 4.5 T capacity
        the HR requirements of the manufacturing sector.                vertical mixer has been assigned to CMTI based on
                                                                        the earlier successful realization of similar mixers
        CMTI has signed MoUs with PSG Institute of
                                                                        in various other capacities by the Institute. This
        Technology, Coimbatore and Karunya University,
                                                                        is a special purpose machine being designed and
        Coimbatore for collaborative R & D and Certificate
                                                                        developed for the first time in the country. The
        and PG programmes for “Industry Ready
                                                                        machine is based on the planetary mixing concept.
                                                                        Several safety features are to be built into the
        1)     A one-year Post Graduate diploma in                      machine considering the explosive nature of the
               Advanced       Manufacturing        Technology           constituents of the mix.
               (PGDAMT) starting from January 2010 has
                                                                   l    Design and development of BEM (Ballistic End
               been launched with Karunya University
                                                                        Motors) Trimming machine is in progress.
               under the above initiative.
        2)     Conceptual design for the AEAMT facility            l    design and development of 300-gallon capacity
               has been finalized.                                      Vertical Mixer has been taken up. SCADA System
                                                                        (Supervisory    Control    and    Data   Acquisition
e)      Advanced Machine Tool Testing Facility                          System) for remote control & monitoring of Mixer
                                                                        operation & its associated auxiliary functions is
        This facility is being established at CMTI as a P-P-P
                                                                        being developed.
        project with participation from Indian Machine
        Tool Manufacturers Association (IMTMA) and Govt.           l    Special toolings for applications in the Ship building
        of India (Dept of Industrial Policy & Promotion                 industry are being Designed and developed. These
        (DIPP), Ministry of Commerce and Industry for                   include toolings for:
        taking up development testing of machine tools
                                                                   	          Stud Tensioning
        and pre competitive R & D.
                                                                   	          Cover Extraction
f)      Exploratory visit to Germany & Sweden                      	          Flange Extraction

        As a member of the CAR – PAC delegation led by             	          Thimble Cutting
        the Senior Scientific Adviser, DST and the Chairman        	          Surface Reconditioning

                                                                    Annual Report 2009-10

     3.     Precision Manufacturing Services                          6.   Testing & Evaluation

     Technologies for manufacture of several precision parts          l    Testing and evaluation of airworthy products are
     were developed for various customers.                                 taken up as a continuing activity:

     l      Micro machining of sensor specimen. Minimum               	          Assembly & testing of airborne quality
            feature size of the part is 200 micrometers.                          hydraulic system filters for aerospace
            This involves micro drilling, micro EDM machining
            and micro wire EDM machining on a tiny part.              	          Endurance, Mechanical strength, Thermal
            Special fixture has been designed to hold the                         Shock test on Conduit Assembly with heat
            micro components. Thickness of the sensor                             Shrinkable Sleeves for 1,40,000 cycles with
            specimen varies from 0.025 micrometers to 0.125                       specified load and pressure.
            micrometers and the materials are of Stainless
            steel and aluminum foil.

                                                                           Endurance Test on Heat Shrinkable sleeves

                                                                           Endurance Test on Heat shrinkable sleeves
                          Sensor specimen
                                                                      	          Pressure Impulse Test on Titanium tubes
     4. Rapid Prototyping Activities
                                                                      	          Pressure Test on Fill & Drain valve/ Vent
     Research in the area of Direct Metal deposition (DMD),                       valve at 1400 bar
     an advanced Rapid Prototyping technology, has been
                                                                      l    Testing of hydraulic elements, measurement of
     taken up. This enables prototype building using multiple
                                                                           oil contamination level, calibration of pressure
     metals and also repair / rebuilding of worn out complex
                                                                           gauges and supply of calibration fluid were carried
     components like turbine blades, impellers etc. A DMD
                                                                           out as routine testing services.
     equipment is under procurement for R & D.
                                                                      l    The Chemical laboratory (NABL accredited)
     5. Technology Development for Precision Fill and drain Valve
                                                                           provided services in the area of chemical analysis
     Poppets used in space application has been undertaken
                                                                           of metals and alloys, identification of metal
     l      Some of the technology development projects                    coating and measurement of metal coating
            (continuing activity) are:                                     thickness, calibration of balance & weights, surface
                                                                           treatment, oil analysis and corrosion testing.
     	            Agitator blades for planetary mixers.
                                                                      7.   Calibration & Inspection Services
     	            Momentum Wheel and Reaction Wheel
                   assembly, for aerospace applications               l    Calibration of masters and inspection of very
     	            Manufacture, assembly & testing of                      accurate components in the area of length, angle,
                   airborne quality hydraulic system filters for           form, surface finish and gears with traceability to
                   use in aircrafts.                                       international standards (168 assignments).

    Department of Industrial Policy & Promotion

l      Calibration of slip gauge sets, surfaces roughness        l     Resonant frequency determination of Tractor
       masters, Glass Hemi-Spheres and Master                          elements for product development.
       Cylinders. Glass Scales, Profile & Lead Masters for
       Gear Testers, Polygon Mirror, Step gauges, check
       masters and depth masters, autocollimators,
       Granite surface plates, straight edges, squares
       and Electronic Comparator and conventional
       measuring instruments like calipers, micrometers,
       height gauges, scales, etc.

l      Calibration / alignment of CNC machines (24
       instances), Special machines (2 instances), CMMs
       (6 instances) were carried out at customer’s works         Resonant Frequency Determination of Tractor Elements
       using Laser measurement systems.
                                                                 8.    Facilities Added / Upgraded
l      Inspection support for gears, on site calibration
       of Profile Projectors, inspection of profile data         The following facilities were added/ upgraded under the
       of diaphragm, Tilt table, Pick-up segment were            various plan projects:
       provided.                                                 l     4 axis CNC Horizontal Boring machine
l      Balancing of Machine Tool Spindles, Armatures,            l     CAD / CAM Software
       Tool adapters, Rotors, Electric Motors and
                                                                 	           Hyper mill CAM for product development
       Condition Monitoring service for industries were                       applications related to 5 axis machining
       also provided.
                                                                 	           Unigraphics NX6 Design and Manufacturing
Noise & Vibration measurement / Analysis & Consultancy                        Bundle for 3D Mechanical design, part and
services continued for industries from automobile OEMs,                       modeling
automobile component OEMs, machine tool & Inspection             l     Advanced Technology Equipment
machines OEMs, Diesel engine manufacturers, Defence,
                                                                       Integrated Multi-Process Micro Machining System
Aerospace and SMEs in manufacturing industry, etc. (23
                                                                       is a high precision machine meant for micro
                                                                       machining (Micro EDM) (Mikrotech, Singapore).
Highlights of the activities are as follows:                           Its unique integrated multi-processing ability
                                                                       enables the fabrication of micro electrodes, which
l      Sound Intensity Measurements of Tractors for
                                                                       can be used to fabricate micro patterns & features
       Noise Source Ranking.
                                                                       on a work piece.
l      Sound power measurement                 and   vibration
       measurement for Tractors.

l      Ground vibration measurement for assessing
       vibration level at proposed sites for setting up
       Metrology room, Standards room, Installation of
       CMM & other precision measuring machines.

l      Structural vibration measurements on Propellant
       Mixing Machine Structural Elements.

l      Dynamic balancing of high speed integrated motor
       spindles for Machine tool OEM                                            Atomic Force Microscope

                                                                 Annual Report 2009-10

           Dual Beam System (Carl Zeiss, Germany) - capable        l     Augmentation of capacity to the existing
           of machining micro and nano components and                    guesthouse and addition of mess facilities.
           visualizing the same simultaneously. This is an         l     Green Initiative – glazed tiles for water proofing of
           integrated machining and visualization center.                NC workshop roof.
           Multicomponent Force Dynamometer
                                                                   l     Digitisation of Assets of CMTI.
           Atomic Force Microscope (Veeco, USA)
                                                                   11.   Technology Transfer / HRD
                                                                   l     Guest lectures were delivered by CMTI resource
                                                                         persons at various professional platforms covering
                                                                         Condition Monitoring, Design of Precision Machine
                                                                         Tools, etc
                                                                   l     Exclusive training programmes were conducted
                                                                         for OFIL, Medak, IRIMEE, Jamalpur, GE BE
                                                                         Ltd, Bangalore etc. covering the operation,
                                                                         maintenance of CNC machines and trends in
                                                                         manufacturing technology
                                                                   l     In-house training courses (9) were conducted in
                                                                         different areas of manufacturing like Mechatronics
                                                                         & Manufacturing Automation, Uncertainty of
                                                                         Measurements in dimensional Measurements,
                                                                         Noise & Vibration Analysis, CMM & its Applications,
                                                                         Calibration, Precision Measurement & Metrology,
                                                                         CNC part Programming through CAD/CAM etc.
                                                                   12.   Publications & Papers
                       Dual Beam System
                                                                   l     Bibliographies on the following topics concurrent
           A nano Positioning System (which has movement
                                                                         with the respective events were compiled
           and control in nanometers)
                                                                   	           “Micro Machining & Micro Fabrication” -
     9.    IT in Manufacturing                                                  SERC School on Micro machining and Micro
                                                                                fabrication sponsored by SERC-DST, Govt.
     l     Redesign and enhancement of CMTI website to                          of India.
           improve access speed and user friendliness
                                                                   	           “Industrial Robotics” - Conference on
     l     Upgradation of internet speed from 25 kbps to                        robotics and automation for a safer
           2048 kpbs                                                            world organized by CII with CMTI as the
                                                                                knowledge partner
     l     Renovation of server room and commissioning of
                                                                   l     Technical Papers (3) have been presented in
           new server infrastructure & data back up facilities
                                                                         National and international conferences in the field
     l     Hosting of the upgraded CAD/ CAM/ CAE & PLM                   of Noise & Vibration and Rapid Prototyping.
                                                                   l     The monthly journal ‘Manufacturing Technology
     10.   Improvement of Infrastructure                                 Today’ is being brought out regularly.

     l     Enhancements to utilities like UPS systems and DG       13.   Visit of Dignitaries & Delegations
           sets for augmenting the existing facilities and to      l     German Engineering Federation (VDMA) - to
           support the upcoming NMTC laboratory.                         explore the business opportunities.

    Department of Industrial Policy & Promotion

l      Mr Frank Treppe, Dr Peter Blau, from Fraunhofer                   The presentations were led by Prof Jyoti
       Institute for Machine Tools & Forming Technology                  Majumdar, University of Michigan USA with
       (IWU), Germany - for the proposed collaborative R                 speakers from PES Institute of Technology,
       & D projects                                                      National Aerospace Laboratories and CMTI.

l      A 20 member student delegation from Cambridge
                                                             15   HR Initiatives for CMTI Scientists
       Institute of Manufacturing, UK - as part of their
       study to recognize the Indian Industry’s ability in        a)     Participation in Conferences, Seminars
       the Manufacturing area
                                                                  As part of this CMTI scientists were deputed
l      Prof P Khincha, Vice Chancellor, VTU, Belgaum -            for various conferences and seminars covering
       witnessed the facilities for R & D, the development        Scientific    Project   formulation,   Scientific
       work being carried out and interacted on the               achievements of SC/ST scientists, Programming
       possibilities of establishing durable functional           & maintenance of CNC systems, Administrative
       linkages and the possibility of CMTI being                 vigilance, Occupational Health and safety,
       recognised as a “Centre of Excellence”.                    Creativity innovation and design, Rapid product
l      Representatives of HOSMEC: Hosur Small Micro               development and manufacturing, Intellectual
       Engineering Components Ltd. for discussions                Property Rights etc.
       regarding the establishment of common facility
                                                                  (b)    Visionary Leader For Manufacturing
       centre for testing & measurement.
                                                                         Programme (VLFM) – A flagship programme
l      Vel Tech Technological University, Chennai - to                   by National Manufacturing Competitiveness
       explore the possibilities of mutual collaboration                 Council (NMCC), GOI to develop and create
       and linkages                                                      visionary leaders in Manufacturing under
14     Technical lecture programmes / seminars under                     the Indo-Japan cooperation agreement
       NMTC and AEAMT                                                    with JICA.

l      Under the aegis of Nano Manufacturing Technology           l      Two scientists from CMTI are participating
       Centre (NMTC) and Academy of Excellence for                       in the “Programme for Visionary Executives
       Advanced Manufacturing Technology (AEAMT) the                     in Manufacturing.
       following Technical Presentations were arranged.           l      Director and Joint Directors participated in
       1.     Selective Laser Melting or LaserCUSING                     the Programme for “VISIONARY CEO’s in
              applications by Concept Laser GmbH,                        Manufacturing”.
              Germany.                                            c)     Research Training
       2.     Surface Coating Technology by Cemecon,                     2 Scientists underwent research training
              Germany                                                    on Nano Technology at Oklahoma State
       3.     Unusual Applications of Machining by Dr. S                 University, USA
              Chandrasekar, Professor, Purdue University,         d)     Training on        Advanced     technology
              USA                                                        equipment
       4.     Laser Assisted Micro machining of Silicon
                                                                  l      1 Scientist underwent training on 4 axes
              by Dr Kamalesh Suthar, Argonne National
                                                                         CNC Horizontal Boring machine at TOS,
              Laboratory, USA
       5.     A seminar on Rapid Prototyping and Rapid
              Tooling was organized. Scientists from              l      2 Scientists underwent training on Dual
              R&D, Engineers from Industry participated.                 Beam system at Carl Zeiss, NTS, Germany

                                                                    Annual Report 2009-10

            l      1 Scientist underwent training on Atomic           l   Process developed for removal of chloride &
                   Force Microscope at Veeco, Singapore                   potassium from Chemical Recovery System

            16 Support to Programmes/ Events                          l   Effluent Treatment Plant (ETP) were upgraded
                                                                          in 10 pulp & paper mills based on the critical
            CMTI supported the following events as sponsors:              performance evaluation / adequacy assessment
            l      7th International High Energy Materials                carried out by CPPRI.
                   Conference & Exhibition at HEMRL, Pune             l   Successfully completed Rapid Environmental
                                                                          Impact Assessment (REIA) studies for proposed
            l      Seminar on “Propulsion Systems” organized
                                                                          expansion / modernisation programme in 3 mills.
                   by High Energy Materials Society of India
                                                                          Two of them have got environmental clearance
                   (HEMSI) at SFC, Jagadalpur
                                                                          from Ministry of Environment & Forest, New Delhi
                                                                          on the basis of REIA report prepared by CPPRI.
     Central Pulp and Paper Research Institute,
                                                                      l   Bagged the work order for Comprehensive Energy
                                                                          & Environment Audit at TNPL through open
     Central Pulp & Paper Research Institute(CPPRI) an                    tender.
     autonomous organization registered under the Societies           l   Successful completion of Pilot Plant trials on
     Act 1860 came into existence on Nov. 11, 1980 with its               Pulping and Bleaching of Malaysian Kenaf to
     headquarters at Saharanpur (UP). In the last 29 years of its         produce bleached pulp having more than 80%
     existence, the Institute has acquired expertise in various           I.S.O. brightness.
     areas of papermaking with each passing year & attained
     the status of an Institute of International repute. Sincere      l   In the area of Paper Recycling Institute provided
     & continued efforts of its scientific & technical expertise          complete know-how to Recycled Fibre based mills
     have been aimed to address the major challenges & issues             on quantification of stickies, neutral sizing of RCF
     lying ahead of Indian Paper Industry which is reflected              furnish etc.
     through its R&D programmes with focus on natural                 l   CPPRI is credited of being only Institute in India
     resource conservation, quality improvement and energy                providing comparative calibration check service of
     & environment management. Various research schemes                   paper testing instruments in paper mills.
     formulated in collaboration with industry aim to promote
                                                                      l   CPPRI is assisting Govt. organisations like Central
     environment benign / eco-friendly technologies and
                                                                          Pollution Control Board, New Delhi and Bureau
     development of infrastructure in new areas like recycled
                                                                          of Energy Efficiency, New Delhi in formulation of
     fibre, information technology, training etc.
                                                                          various standards related to effluent, hazardous
                                                                          waste and energy.
     Activities & Notable Achievements
                                                                      l   CPPRI Scientists are expert member in Govt.
     In the period 2009-10, the major focus of CPPRI has been             Stationery Department U.P., Printing & Stationery
     to address various issues related to quality improvement             Department Haryana, Delhi Bureau of Textbook,
     environmental challenges & global competitiveness                    Bureau of Indian Standard, RBI, State Pollution
     of Indian Paper Industry. Some of achievements                       Control Board.
     accomplished during the above period is as under:
                                                                      l   Training activities at CPPRI are gradually
                                                                          recognized by various Universities/Institutes
     Processes /Techniques /Expertise Developed
                                                                          across the nation and are becoming platform for
     l      Two stage pulping process developed for Malaysian             the student fraternity for specialized training in
            kenaf.                                                        the area of biotechnology, Forestry & Environment

 Department of Industrial Policy & Promotion

        Management. Students from Overseas countries         Aims & Objectives
        are also outsourcing our facilities for practical
                                                             IRMRA is engaged in servicing the non-tyre sector for
                                                             more than 50 years. Its main activities include testing,
                                                             training, product development, compound development,
Upgradation Of R&D Activities
                                                             quality audit, GMP services etc. Its main emphasis is to
Infrastructure facilities were further strengthened in the   serve the non trye as well as the tyre sector in the field of
areas of papermaking & environment management by             quality improvement and product indigenization.
acquiring state-of-art equipment like Motorised Research
Microscope, IGT High Speed Inking Unit, Laboratory           Plan Assistance to IRMRA
Surface Size Press, Surface Topography, Mercury Analyser,
                                                             Plan Assistance of Rs.22.50 crore has been approved
Oil & grease Analyser, Elerepho Brightness Tester &
                                                             under the Integrated Scheme “Project Based Support
Ultrasonic Flow Meter.
                                                             to Autonomous Bodies under DIPP during the 11th Five
                                                             Year Plan for implementing the three projects namely,
International Cooperation                                    (i) Setting up of Centre of Excellence for Tyre Research
CPPRI    continued   its   efforts   for   enhancing   the   and Testing (Rs.20.25 crore), (ii) HRD-Entrepreneurship
International recognition for its capabilities and world     Development programmes (Rs.1.75 crore) and (iii) Out-
                                                             reach programmes (Rs.0.50) by IRMRA. Plan assistance
class infrastructure facilities leading to outsourcing of
                                                             of Rs. 15.00 crore has been released to IRMRA upto
its expertise by neighbouring nations. Institute is also
                                                             December, 2009 so far.
making concerted efforts to work in close cooperation
with Sweden & Finland under bilateral cooperation
                                                             Major Activities
and Australian Pulp & Paper Industry, Forest Research
Institute Malaysia on projects of mutual interest.           (A)   Setting up of a Centre of Excellence for Tyre
                                                             Research and Testing: IRMRA has established tyre testing
Income & Expenditure                                         equipments like

During the year 2008-09, total receipts of the Institute            i.      Car & Truck tyre endurance testing
were Rs.1020.48 lac and total expenditure was Rs.713.06                     machine.

lac (i.e. revenue expenditure Rs.555.16 lac + capital               ii.     Universal Tyre testing machine having all
expenditure Rs.157.90 lac). Institute registered Internal                   facilites for tyre certification.
Revenue Generation of Rs. 189.41 lacs.                              iii.    Noise and vibration analyzer to study the
                                                                            quality of tyres.
Indian    Rubber      Manufacturers            Research      This will help to get quality tyres for users both from
Association (Irmra), Thane                                   indigenous and foreign manufacturers.

The Indian Rubber Manufacturers Research Association         (B)    HRD      –     Entrepreneurship      Development
(IRMRA) was established in 1959 as a scientific and          Programme: IRMRA is creating infrastructure facilities like
industrial research association for promoting basic and      Hostels, Class Rooms, Training Aids, etc. for conducting
applied research and development activities in the field     short and long term training courses in Rubber Technology.
of rubber and allied products. It is registered under the    The main objective of this programme is to strengthen
Societies Registration Act, 1860. IRMRA is governed by a     the hands of the Indian Rubber Industry by providing
Governing Council consisting of members from Rubber          them well trained personnel. More emphasis is given to
Industry, Central Government and Government of               bridge the gap between supply of trained manpower and
Maharashtra.                                                 the demand of the rubber industry.

                                                                   Annual Report 2009-10

     ( C ) Out-reach Programmes: The main objective of               Some of the major activities during the year 2009-10 are
     out-reach programme is to disseminate the knowledge to          as under:
     various sectors and above all to link up to work with world
     best institutes, This programme include an Information          1.    Cement Research and Independent Testing:
     Technology based on distance education programme in             l     Investigations on long term strength development
     association with foreign institutes like AKRON, USA.                  characteristics and leaching of heavy metals in
     IRMRA is also engaged in indigenization of many rubber                various curing mediums for one year from cement
     products used in Indian defence Sector and also in                    blends containing 10 % spent catalyst from three
     various PSUs and heavy engineering industries. IRMRA                  refineries namely Haldia, Barauni and Panipat of
     has developed an Electron Beam radiation cured tyre for               Indian Oil Corporation were completed.
     the first time in India with the financial support of BRNS,     l     Studies carried out for utilization of W K Slag
     BARC, Mumbai in co-ordination with M/s. Ceat Tyre.                    and copper slag indicated that these slags can be
     IRMRA has ventured into new diversified areas such as                 utilized in the manufacture of OPC to the extent of
     setting up of Rubber Engineering Section, Nano Technology             2 %, as effective mineralizer, resulting in reduction
     Lab and Rubber Consultancy Clinic. Underwriters                       of clinkering temperature by 50oC.
     Laboratory (UL), USA has recognized IRMRA as a quality          l     Investigations related to development of cements
     certifying agency for rubber components exported to                   and binders based on Nano Technology are
     USA and entered in a MOU with IRMRA.                                  continuing. State of art report was prepared.
                                                                           Cement blends have been designed using 2-5 %
     National Council for Cement and Building                              Nano silica and their performance evaluated.
                                                                     l     Investigations related to Enhancing the Use of Fly
     National Council for Cement and Building Materials                    ash in Cement and Concrete through Processing
     (NCCBM) is a cooperative research organisation                        of Fly ash are continuing. Fly ash samples from
     registered as a Society under the Societies Registration              different fields of two thermal plants obtained
     Act, 1860. The Council provides scientific, technological             and characterized. Fraction of coarser fly ashes
     and industrial services support to the cement, related                was mechanically and chemically activated and
     building materials and construction industries and carries            the characterization of resultant fly ash samples is
     on its activities through its units located at Ballabgarh,            underway.
     Hyderabad and Ahmedabad.
                                                                     l     Investigations on Performance and Durability
     NCB’s activities are channelised through the following six            of Ordinary Portland Cement and Portland Slag
     Programme Centres:                                                    Cement samples prepared utilizing Different types
                                                                           of Slag are continuing. Different slag samples from
     l      Cement Research and Independent Testing
                                                                           their source industries along with other materials
     l      Mining, Environment, Plant Engineering and                     from cement plants were characterized. Various
            Operation                                                      raw mixes were designed for the utilization of
                                                                           different slag samples as raw mix component for
     l      Construction Development and Research
                                                                           making OPC. The burnability studies of these raw
     l      Industrial Information Services                                mixes showed improvement in clinker quality and
                                                                           lowering of burning temperature. The performance
     l      Continuing Education Services
                                                                           of OPC thus prepared is comparable with that of
     l      Quality Management, Standards and Calibration                  control OPC. Studies on performance of these
            Services                                                       cements in aggressive medium are underway.

    Department of Industrial Policy & Promotion

l      Investigations to determine technical suitability of        mines at Mellacheruvu, Choutapalli and
       utilization of flouspar mine tailing wastes / lumps         Yepalamadhavaram, Dist. Nalgonda is in progress.
       in the manufacture of alternate building products
                                                               l   Survey, geological mapping, supervision of
       revealed that flouspar mine waste can produce
                                                                   exploration and computer aided deposit evaluation
       pozzolana on calcination at 1000 oC.
                                                                   of two limestone deposits in Andhra Pradesh are
l      Studies on Limestone Consumption Factor (LCF)               in progress.
       were taken up for plants situated at Andhara
                                                               l   At the instance of Central Pollution Control
       Pradesh and Gujarat. NCB conducted 120 LCF
                                                                   Board (CPCB), NCB has taken up preparation of
       studies so far resulting in rationalization of
                                                                   “Comprehensive Industry Document (COINDS)
       Limestone consumption in production of cement.
                                                                   on Cement Plants”. Pollution loads of PM, SO2
l      Detailed investigations were carried out for                and NOx were evaluated in terms of kg/tonne of
       determining suitability of Dolomite and Dolostone           clinker. The efficiency of the Air Pollution Control
       in the manufacture of refractory products. The              Equipment (APCE) was also evaluated. Noise levels
       recommendations were provided to plant for the              were measured at different locations of the plants.
       suitability of Dolomite and Dolostone and their             Mass balance of water was made in terms of input
       potential for future use.                                   from various sources, its consumption and recycle
                                                                   from sewage treatment plant. Specific water
l      Raw mix optimization studies were taken up for
                                                                   consumption per tonne of clinker and cement was
       three green field projects. In one of the studies,
       the raw mix was optimized with special emphasis
       on maximizing the fly ash use at clinker grinding       l   Environmental parameters like Ambient Air
       stage and in another study; lime sludge generated           Quality, ground water level and its quality, salinity
       at a fertilizer unit in Haryana was used as raw             intrusion and land use were monitored at Ran
       material in cement manufacture.                             Bauxite Mines and Adityana Limestone and
                                                                   Clay Mines in Kutch Region of Gujarat. Different
l      NCB    Independent     Testing    Laboratories    are       physico-chemical parameters were analyzed
       NABL accredited and can take up the testing                 to evaluate the quality of the ground water as
       as per national and international standards.                per MoEF guidelines. Ambient Air Quality was
       The laboratories undertake complete physical,               monitored at one of the mines for SPM, RSPM,
       chemical, mineralogical and micro-structural                and SO2 & nOx. A detailed micro level study was
       analysis of various types of cement, clinker,               carried out to evaluate effect of mining on salinity
                                                                   intrusion in another mine area. Land use pattern
       pozzolana, concrete, aggregates, admixtures,
                                                                   was interpreted using satellite imagery.
       water, refractory, bricks, limestone, coal, lignite
       and other raw materials and around 7200 samples         l   “Studies to reduce CO2 emissions from cement
       were tested during the current year.                        plants through absorption of CO2 by algal farms”
                                                                   involve screening and identification of appropriate
2      Mining, Environment,      Plant     Engineering    &        high yielding algae culture and development
       Operation                                                   of bioreactor on laboratory scale, where CO2 is
l      Supervision of Exploration and Computer Aided               absorbed by algae for its full growth as a bio fuel.
       Deposit Evaluation for two limestone deposits in            Designing of lab scale bioreactor for algae culture
       Andhra Pradesh are in progress.                             on continuous basis has been taken up with
                                                                   various institutes. A few algae species like spirulina
l      Computer aided deposit evaluation, mine                     Nannochoris and chlorallo were identified for lab
       planning and scheduling of three limestone                  scale culture.

                                                                Annual Report 2009-10

     l   Pollution load study was carried out in four                 carried out to establish their safe disposal through
         cement plants with performance evaluation of Air             co-processing in cement kiln route. Their impact
         Pollution Control Equipment (APCE). The pollution            on clinker quality and environment was assessed.
         loads were calculated in terms of kg of particulate
                                                                  l   In a diagnostic study, causes of excessive coating
         matter emission / day / tonne of material handled
                                                                      and ring formation in cement rotary kiln in a
         / tonne of clinker.
                                                                      cement plant in Meghalaya, were identified which
     l   “Life Cycle Assessment (LCA) Study for Construction          include mainly reducing condition inside the
         Sector (Gate-to-grave)”, entrusted by Ministry of            rotary kiln, low degree of calcinations at kiln inlet,
         Environment and Forests, Govt. of India to NCB, is           sulpho-spurrite formation, fluctuating moduli
         in progress.                                                 values etc. Remedial measures were suggested to
                                                                      minimise the tendency of excessive coating and
     l   Development       of   Comprehensive       Industry
                                                                      ring formation in kiln.
         Document (COINDS) and Environmental Standards
         for Plywood Industry, sponsored by Central               l   Static efficiency of all major process fans was
         Pollution Control Board (CPCB), has been taken               determined for a cement plant in AP through
         up.                                                          measurements of gas flows, temperature and
                                                                      draft parameters and electrical measurements
     l   A study for streamlining the fuel accounting system,
                                                                      of their drives and suggestions were given for
         heat balance of kilns and thermal performance
                                                                      improving the efficiency of low efficiency fans
         of boilers in captive power plant was carried out
                                                                      through retrofitting.
         in a cement plant in Tamil Nadu. Suggestions
         for estimation of actual consumption of coal in          l   A   Techno-Economic       Feasibility   Report   was
         different kilns as well as in captive power plants           prepared for setting up a 1.3 MTPA cement plant
         were provided to the plant. Recommendations to               in Rajasthan.
         reduce the heat losses from the kilns were also
         given.                                                   l   A report on “Reorganization of cement plant
                                                                      layout in 168 hectares instead of 268 hectares”
     l   Feasibility study and design for the project for             was prepared for Commissionerate of Geology &
         conversion to petcoke under Phase I was completed            Mining, Gujarat
         in a wet process cement plant manufacturing
         white cement. The findings of the study indicate         l   Assessment of suitability of VRM or Ball Mill as
         that existing fuel oil can be substituted up to 50%          Raw Mill at Bokajan Expansion Project for CCI.
         without adversely affecting the product quality
                                                                  l   A Hot Kiln Alignment (HKA) study was carried out
         that can largely improve the profitability of the
                                                                      in a cement plant having dry process kiln of size
                                                                      3.3 x 50 Mts long and three supports with 5-Stage
     l   A study on comprehensive technical audit of                  Preheater with designed slope of 3.5% located in
         process and quality aspects in different sections of         Shandong province of People’s Republic of China.
         cement manufacturing process of two kiln lines in            Corrective actions were carried to bring the kiln in
         a cement plant in Rajasthan was carried out and              alignment under NCB’s supervision.
         various suggestions were given to optimize the
                                                                  l   A study on comprehensive Technical Audit covering
         performance of mills and kilns.
                                                                      mechanical, electrical and instrumentation aspects
     l   Technical feasibility study for coprocessing of              was conducted in a major cement plant for Unit-I &
         pesticide sludges from a plant in Bhopal was                 II located in Rajasthan. Various recommendations

     Department of Industrial Policy & Promotion

        were given to improve the maintenance and             l     Roller Compacted Concrete Trial Mix designs and
        uptime of core equipment for Unit-I & II reducing           Evaluation of Materials and Compatibility with
        breakdowns.                                                 Different Cement Systems for a Hydro Power
                                                                    Project are in progress.
l       Compressed Air Audit study was carried out for
        one major cement plant in Rajasthan. Specific         l     Study on Mineral Wastes Integrated in Cement
        recommendations towards energy saving were                  and Concrete and use of recycled concrete
        formulated with various plans. A potential saving           aggregate has been taken up for SINTEF Building
        of 44 kW was identified for the plant.                      and Infrastructure, Norway

l       Technical and Energy Audit Study in a cement plant    4     Industrial Information Services
        covering 2 kiln streams was concluded. Specific
        recommendations towards energy conservation           NCCBM Library serves as the national information
        were formulated covering short, medium and            centre for cement, building materials and construction
        long-term action plans. Potential savings of about    industries. The holdings of the Library have grown
        20 kcal/kg clinker and 0.64 kWh/t cement were         to   46,150. The library also created a bibliographic
        identified. The equivalent potential cost savings     database consisting of about 38,000 entries. Lists of
        were Rs 1243 lakhs per annum.                         indexed articles from journals received in NCB are being
                                                              posted on intranet and internet website www.ncbindia.
3.      Construction Development and Research
                                                              com. Windows deployment service for quick software
l       Performance and Durability Studies on Prestressed     maintenance has been launched.          An e-book (CD)
        Concrete made with Portland Pozzolana Cements         consisting of the Proceedings and Exhibitors’ Profile
        are in progress.                                      was prepared and distributed to the delegates of the
l       Evaluation of concrete aggregates for alkali-         11th NCB International Seminar on Cement and Building
        aggregate reactivity and other properties was         Materials.
        carried out for 10 projects including hydroelectric   NCB organized the 11th NCB International Seminar
        and thermal power plants.                             on Cement and Building Materials from 17 to 20
l       Evaluated chemical and mineral admixtures for         November 2009 in New Delhi. The Seminar and the
        concrete in 6 cases.                                  accompanying Technical Exhibition were inaugurated
                                                              by Hon’ble Minister of State for Commerce & Industry,
l       About 90 concrete mixes were designed for various
                                                              Govt. of India, Shri Jyotiraditya Scindia,    who also
        grades of concrete for different projects.
                                                              released a Special Publication entitled “Global Economic
l       Structural design check for one concrete              Scenario – Challenges and Outlook for Indian Cement
        structure.                                            and Construction Industries” at the Inaugural Session.
l       In-situ testing, assessment of quality and            The Seminar drew participation of over 694 delegates
        distress evaluation was provided for 12 concrete      including 67 from 15 overseas and deliberated 85
        structures.                                           technical papers. There were five Special Lectures on
                                                              topical subjects by renowned international experts.
l       Third party quality audit/checking was carried
                                                              The Exhibition showcased the latest in technological
        out for 150 construction projects of Municipal
                                                              developments and services of 65 organizations. NCB
        Corporation of Delhi.
                                                              National Awards for Energy Performance, Environmental
l       Third party quality audit/quality assurance was       Excellence and Quality Excellence were given away
        carried out for 5 flyover/underpass projects of       by Smt. Renu Sharma, Joint Secretary, DIPP at the
        Public Works Department, Delhi.                       Concluding Session.

                                                                       Annual Report 2009-10

                 Shri Jyotiraditya Scindia, MoS (Industry) releasing Special Publication (Global Economic Scenario -
                  Challenges and Outlook for Indian Cement and Construction Industries) at the Inaugural Session
                                  of 11th NCB International Seminar on Cement & Building Material

      5     Continuing Education Services                                    one cement plant.

      One Long Term Course, 28 Short Term Courses, 15 Special            l   Inter- laboratory Proficiency Testing Programmes
      Group Training Programmes, 7 Simulator Based Courses                   on testing of cement- mortar cubes, chemical
      and 9 Contact Training Programmes were organized                       analysis of OPC by X-ray Analyser and testing of
      on different topics covering cement, concrete and                      PPC for chemical and physical test parameters
      construction technologies for about 1000 participants                  completed with participation of 20-25 laboratories
      from India and abroad.                                                 in each programme.
                                                                         l   Training and development of Competence of
      6     Quality Management, Standards and Calibration                    Laboratory Personnel was completed for one
            Services                                                         cement plant.
      l     4600 vials of Standard Reference Materials and 1000          l   Assisted one cement plant in getting Accreditation
            sets of standard lime were supplied during the year              from NABL, Govt. of India.
      l     1600 equipment were calibrated during the year.              l   Inter-laboratory Proficiency Testing Programme
            Calibration facilities in the fields of Force, Pressure,         on Fly Ash has been taken up. Around 22 cement
            Thermal, Dimension and Revolution are NABL                       plants are participating in the programme.
            accredited.                                                  l   Laboratory   Assessment     and      Proficiency
      l     Development of Certified Reference Materials for                 Improvement study for a cement plant was carried
            Calibration of X-ray Analyzer was completed for                  out.

 Department of Industrial Policy & Promotion

National Institute of Design, Ahmedabad                       Outreach Programmes
The National Institute of Design (NID), Ahmedabad             The Institute conducts Outreach Programmes for crafts
was set up in 1961 as an autonomous institution for           and other needy sectors in government and non-
design development, applied research, training, design        governmental organizations for design intervention. A
consultancy services and outreach services. National          study on Handicraft Articles for Felicitation Ceremony for
Institute of Design (NID) has, over the past four decades,    the Development Commissioner(Handicraft), New Delhi
gained international recognition as one of the foremost       and Development of Handicraft Mark for the Additional
institutions in the field of design, and as a catalyst for    Development Commissioner (Handicrafts), New Delhi are
Indian industry and commerce. NID is also recognized as       some of the major programmes undertaken by Outreach
a scientific and industrial research organization by the      Programmes during the year 2009-10.
Department of Science & Technology, Government of
India. NID is registered as a “Society” under the Societies   Industry Programmes & Projects
Registration Act and as a “Public Trust” under the Bombay
                                                              Industry Programmes & Projects (IP&P) are undertaken
Public Trust Act, and functions as an autonomous body
                                                              to meet specific requirements of Industry for design
under the aegis of this Department.
                                                              awareness and application. Short-term training
The professional education programmes of the Institute        programmes, workshops, seminars and design-clinics
operate through four main faculty streams and a common        for product development are conducted at NID as well
interdisciplinary stream namely the Industrial Design         as in the field through NID’s Centres/Satellites at New
Faculty, Communication Design Faculty, Textile and            Delhi and R&D Campus, Bangalore. Industry Programmes
Apparel Design Faculty, Exhibition Design Faculty and the     and Projects (IP&P) undertaken during 2009-10 include
Interdisciplinary design Studies Faculty.                     33 On-Campus/Off-Campus/ International programmes
                                                              covering 725 working professionals from different
Regular and continuing activities during the year 2009-10
                                                              industry segments.
are as under:

Professional Education Programme                              Design Consultancy Service
                                                              Under the Integrated Design Services (IDS) umbrella, NID
The Institute offers Professional Educational Programmes
                                                              has stepped up its Design Consultancy Services to various
resulting in Under-Graduate (UG) Diploma (GDPD) (4-year
                                                              industry segments, Government and non-Government
programme) and at Post-Graduate (PG) diploma (PGDPD)
                                                              agencies. Major projects undertaken include Modernisation
(2-2 ½ year programme) in several design domain such
as product design, textile design, furniture & interior       of State Central Library at Gandhinagar, Preparation of
design, ceramic & glass design, apparel design and            Mementoes of Rajya Sabha for the Secretary General,
merchandising, graphic design, animation design, film         Rajya Sabha, Design of Certificate for Patent and Design for
& video communication, exhibition design, new media,          the Office of the Controller General of Patents & Designs,
toy design & development, life style accessory design,        Mumbai, Visual Design of Census Data Collection Forms
software & user interface design, information and digital     for the Ministry of Home Affairs, etc.,
design, strategic design management and transportation
& automobile design, retail experience and digital            Research and Publications
experience. PGDPD programmes in Photography Design
                                                              Under Research and Design Development programmes,
proposed to be commenced from the academic year
                                                              NID undertakes design development of products as well
2010-11. The intake of students has gone up from about
                                                              as projects to explore fresh areas for design application
83 in 2000 to 300 in the academic year 2009-10, as also
                                                              which can be later incorporated into training and design
in the throughput of convocating students which has
                                                              consultancy services. With Ford Foundation’s and Industry’s
leapfrogged from 35 in 2000 to 223 in 2009.

                                                                    Annual Report 2009-10

                                  Shri Rahul Gandhi, Member of Parliament visiting the NID Campus.

      support, NID continued to offer Academic Research Chairs        selected to provide professional situations which serve
      in the area of Product Innovation and Development of            to train students as well as develop the faculty through
      IT related design innovations, application, Information         exposure and experience. Earnings from such client service
      & Interface design, development of fonts for Indian             projects form part of NID’s Non-plan expenditure budget.
      scripts, Sustainable Transportation Design etc. Publication
      programmes aim at strengthening the design education            Significant Events
      resources and building knowledge base for the growing
                                                                      i.     The 1st phase of the civil construction work of
      design service industry. During 2009-10 several research
                                                                             the living spaces of PG Campus, Gandhinagar
      monographs and publications have been planned.
                                                                             completed in December 2009. Construction of
                                                                             phase-II of Academic Block has commenced and
      Integrated Design Services (IDS)
                                                                             expected to be completed by December 2010.
      NID services the design intervention needs of corporates,       ii.    The first ever National Design Business Incubator
      design awareness and intervention for specific industry                (NDBI), as separate entity under Section 25 of
      segments, and socially relevant areas, and Consultancy                 Indian Companies Act, set up at the NID Campus.
      requirements of industry and public sector organisatios,               14 incubatees are being incubated currently.
      through (a) Outreach Programmes (b) Industry Programmes
                                                                      iii.   Work on two Research Chairs viz., Autodesk Design
      and Projects (c) Design Consultancy Services under the IDS
                                                                             Education Research Chair and Ravi J Mattahi
      Umbrella, in Faculties of Industrial Design, Communication
                                                                             Research Chair and two Charles Eames Design
      Design and Textile and Apparel Design, including
                                                                             Emeritus Fellowships and NID-Asian Paints Colour
      multidisciplinary projects. Certain projects are carefully
                                                                             Research Initiative have been completed.

     Department of Industrial Policy & Promotion

iv.     NID’s PGDPD Programme in Strategic Design              NPC also networks with over 20 Local Productivity
        Management (SDM) has been ranked 15th among            Councils (LPCs) situated in the country to spread
        the world’s top 30 design programmes by the            the message of productivity and dissemination at
        Business Week magazine of USA in October 2009.         grassroots level.     NPC is the implementation agency
                                                               for programmes/activities relating to India of the
v.      The Post-Graduate Diploma Programme in
                                                               Tokyo based Asian Productivity Organization – an inter-
        Photography Design is scheduled to commence
                                                               governmental body for promotion of productivity in the
        from the Academic Year 2010-11.
                                                               Asia-Pacific region of which the Government of India is
vi      9 CII-NID Design Summit was held on 15-16
                                                               a founder member.
        December 2009 at New Delhi
                                                               NPC’s Activities: Highlights
National Productivity Council                                  The major activities of NPC in the various productivity
The     National      Productivity   Council    (NPC)   was    functions are as follows:-
established in 1958 as an autonomous body under the
                                                               Process Management
Societies Registration Act, by Govt. of India. It has a
tripartite character, wherein Government, Industry             NPC has been awarded an assignment to act as National
and Labour are equally represented.            The Council     Monitoring and Implementation Unit (NMIU) for
is headed by the Union Minister of Commerce and                implementation of Lean Manufacturing Competitiveness
Industry as its President and the Governing Body is            Scheme (LMCS) of Ministry of Micro, Small and Medium
headed by Secretary, Department of Industrial Policy           Enterprises, Government of India in 100 MSME clusters
and Promotion as its Chairman. NPC celebrated its 50th         all over India on pilot basis.
Golden Jubilee Year in 2008.
                                                               NPC has been entrusted to act as Project Management
The main objectives of the Council are to increase             Agency (PMA) for Industrial Infrastructure Upgradation
awareness of productivity and demonstration of the             Scheme (IIUS) in different sectors by Department of
concepts and techniques of Productivity in all sectors of      Industrial Policy & Promotion (DIPP).
the economy.
                                                               In association with Quality Council of India (QCI), NPC
The corporate office of NPC is located at New Delhi. NPC       is carrying out a research-based study on assessing the
also has a countrywide reach with 13 Regional Professional     Productivity & Quality competitiveness of the Indian
Management Groups (RPMGs), located at important                Manufacturing Sector (Auto-Component and Textile &
State capitals/industrial centres and one training institute   Garment Sector).
called Dr. Ambedkar Institute of Productivity (AIP) at
                                                               NPC is also working on various projects like Performance
                                                               Evaluation & Promotional Policies, Incentive Scheme, Job
NPC     undertakes      management      and    technological   Evaluation & Design, Productivity Norms, Manpower &
consultancy, training and information services in various      Capacity Assessment, Organization Restructuring, Quality
productivity subjects for the benefit of its clients. The      Management Systems, TQM, Quality Systems Audit,
specialized productivity functions dealt by NPC are            Comprehensive Productivity Audit, Management Systems
Process        Management,    Environment      Management,     development etc. for various Clienteles.
Information Technology and Knowledge Management,
                                                               In addition, NPC is also conducting various Training
Energy Management, Human Resource Management,
                                                               Programmes related to Productivity & Performance
Agri-business, etc.
                                                               Improvement for Executives & Officials round the year.

                                                                    Annual Report 2009-10

      Energy Management                                               (WMCs)” sponsored by the Ministry of Environment
                                                                      & Forests, Govt. of India. The small industries, mostly
      Sponsored by the European Union, a project for capacity
                                                                      in clusters, make the WMCs and different waste
      building of State Designated agencies under Energy
                                                                      minimization options are generated & implemented.
      Conservation Act 2001 is being carried out for six States
                                                                      Under this programme, more than 150 WMCs have
      namely, Assam, West Bengal, Chhattisgarh, Tamil Nadu,
      Haryana and Uttrakhand.                                         already established in different sectors in various regions
                                                                      of India.
      A Study for the Asian Productivity Organization (APO)
      towards Carbon Neutrality is being carried out.                 The major projects undertaken during 2008-09 were
                                                                      “Waste Identification, Characterization, Minimization
      National Certification Examinations for Energy Managers         & Management Hazardous Waste Recycling Units”,
      and Energy Auditors are being conducted as a part of the        “Preparation of Comprehensive Industry Document
      project sponsored by the Bureau of Energy Efficiency,           & Development of Standards for Pickling Industry”,
      Ministry of Power.                                              “Development & Demonstration of Environmentally
                                                                      Sound Technology for Recycling of Paint Sludge” &
      Environment Management Group
                                                                      “Preparation & Publishing of Eco Products Directory”
      The Environment Management Group of National                    etc.
      Productivity Council, India has been engaged in providing
      consultancy and training services in various areas of           Information Technology and Knowledge Management

      Environmental Management since 1983. The major                  National Productivity Council has taken up a demonstration
      areas in which consultancy & training is provided are           project in consultation with APO on Knowledge
      Pollution Prevention, Waste Minimization (WM), Cleaner          Management with an objective to demonstrate the utility
      Production(CP), Green Productivity(GP), Control of Water,       of KM for improvement of productivity, profitability and
      Air & Noise Pollution, Hazardous Waste Management,              growth at Bharat Electronics Ltd (BEL) unit Ghaziabad.
      Municipal Solid Waste Management, Bio-medical Waste
                                                                      The main focus of the project is to implement the APO
      Management,. The services include Environmental
                                                                      KM approach by way of successful design and implement
      Monitoring (Air , Water & Noise), Design & Performance
                                                                      knowledge management practices, outstanding business
      Evaluation of Pollution (Air, Water) Control Systems,
                                                                      results for the company, in promoting knowledge sharing
      Inventorization of Solid Waste, Design of Solid Waste
                                                                      and learning across the organization and to inspire other
      Management System, Preparation of Detailed Project
                                                                      corporations, workers, and stakeholders to promote
      Report (DPR), Design of Secured Landfill Facilities,
                                                                      knowledge management in their respective work places.
      Preparation of Comprehensive Industry Documents
      (COINDS) & Development of Emission Standards etc. The           Passport Seva Project (PSP) is a high impact e-Governance
      group has three Environmental Laboratory located at             initiative under NeGP. It is the second MMP under NeGP
      New Delhi, Chennai & Gandhinagar.                               and the largest e-Governance project in the world till
                                                                      date. It has been undertaken by CPV Division, MEA and
      The group has provided services to different organizations      is being implemented as a PPP Project with TCS. Several
      in Government, Public & Private sectors and the major           organizations like DIT, MHA, India-post, Police etc. are
      clients being the Ministry of Environment & Forests (Govt.      stakeholders in it. NISG, NPC, STQC, PwC etc. are involved
      of India), Central Pollution Control Board, State Pollution     in it as consultants/stakeholders. The project is still under
      Control Boards, Municipal Bodies, Reliance Industries Ltd,      process with All India Go-Live planned in year 2010.
      Hero Honda Motors Ltd, etc
                                                                      NPC’s Consultant helped in Process & Change
      One of the prestigious project being managed by the group       Management (P&CM) group of Project Management Unit
      is “Establishing & Running of Waste Minimization Circles        (PMU), involved in Process re-engineering, Monitoring

 Department of Industrial Policy & Promotion

of Service Provider’s work, SRS development & review,        Agri Business
Planning & Control, Process Solution development,
                                                             The mid term evaluation study of National Horticulture
Budget preparation for SPV, Stakeholder Interaction &
                                                             Mission has been carried out on behalf of Ministry of
Management, RPO interaction, data collection & analysis
                                                             Agriculture. The quality audit and inspection of dairy
                                                             units are being conducted by NPC under the Milk and
Human Resource Management                                    Milk Product Order, 1992, which is a sponsored project of
                                                             Food Safety and Standards Authority of India.
The HRM Group, through its Consultancy and Training
services, is helping the organizations to improve their      Productivity Awards for the Agriculture and Food
productivity and quality of services. HRM Group through      Processing Sectors are also being coordinated by NPC and
its Consultancy wing for various HR interventions            the presentation ceremonies are held every year.
such as Performance Management Systems studies,
Organizational Re-structuring, Manpower Rationalization,     Asian Productivity Organization
Designing of Performance & Motivational reward /             This is the nodal organization for the promotion of
Incentive Schemes, Organizational Development studies,       productivity in the industrial sector. APO undertakes
etc. through to a lot of PSUs, both Central and State        programmes of technical cooperation by sourcing experts
Governmental Departments and Organizations including         to advice on productivity related projects and by deputing
Private Sector companies.                                    officials from the private and public sector to programmes
                                                             conducted by the APO in industry, agriculture and service
The HRM Group through its training courses – both self
                                                             related sectors.
run as well as In-company has trained about 300 top,
senior, middle and supervisor level personnel so far         Asian Productivity Organization – Regional Intergovernmental
through its training courses on various key behavioural      organization was established in 1961 to systematically
and attitudinal aspects which will lead them to enhance      promote    international   cooperation    in   productivity.
their efficiency, better productivity, increased economic    Government of India is one of the founder members of APO
growth and socially and culturally groomed to assist         and is represented by NPC, India. The present membership
them to be prepared to take up newer challenges with         comprises 20 governments of Asia Pacific region.
right spirit and scaling newer heights and witness India
                                                             The Secretary, the Joint Secretary and the Deputy
emerging as a Global Leader.
                                                             Secretary, department of Industrial Policy & Promotion,
Recently, HRM Group has also ventured in the arena of        Ministry of Commerce and Industry, Government of India
providing Total Recruitment Solutions with a view to         are the APO Director, the APO Alternate Director and the
be able to contribute to the hiring process, as well as      APO Liaison Officer respectively for India.
to attract and help the client organizations in recruiting
/ hiring the right Talent and required ‘Human Capital’.      Quality Council of India
NPC has carried out successfully so far recruitment          The Quality Council of India (QCI) was set up in 1997
assignments for organizations like Power Transmissions       under the Societies Registration Act, 1860 to establish
Corporation of Uttarakhand Limited(PTCUL), Uttarakhand       an accreditation structure in the country and to spread
and Chhattisgarh State Power Holding Company                 quality movement in India by undertaking a National
Limited(CSPHCL), Chhattisgarh.                               Quality Campaign.

HRM Group through its constant endeavour is marching         QCI provides strategic direction to the quality movement
on the track of contributing to the national development     in the country by establishing recognition of Indian
and growth of the economy.                                   conformity assessment system at the international level.

                                                                   Annual Report 2009-10

      The society is governed by a Council comprising of                  The details of accreditation granted by NABCB are
      38 members, and has an equal representation of                      given below:
      Government, Industry and other stakeholders.
                                                                          Number of QMS accreditations – 40 out of which
      Structure of QCI:                                                   37 are active

                                                                          Number of EMS accreditations – 14 out of which
      The QCI function through its following executive bodies
                                                                          12 are active
                                                                          Number of FSMS accreditations - 5
      1.     National Accreditation Board for Certification
             Bodies (NABCB).                                              Number of Inspection Bodies accredited – 3

      2.     National Accreditation Board for Testing and                 Number of Product Certification Bodies accredited
             Calibration Laboratories (NABL).                             –1
      3.     National Accreditation Board for Education and
                                                                     2.   The National Accreditation Board for Testing and
             Training (NABET).
                                                                          Calibration Laboratories (NABL)(An autonomous
      4.     National Accreditation Board for Hospitals and               body under the Department of Science and
             Healthcare Providers (NABH)                                  Technology):
      5.     National Board for Quality Promotion (NBQP) and
                                                                          NABL offers accreditation to the Testing, Calibration
      6.     Quality Information and Enquiry Service (QIES)
                                                                          and Medical Laboratories in accordance with the
      The Council is the apex level body responsible for                  corresponding international standards ISO/IEC
      formulating the strategy, general policy, constitution and          17025 and ISO 15189.
      monitoring of various components of QCI including the
                                                                     3.   The National Accreditation Board for Education
      accreditation boards with objective to ensure transparent
                                                                          and training (NABet):
      and credible accreditation system. The Council through a
      Governing Body monitors the progress of activities and              NABET is gearing to play a vital role in other
      appeal mechanisms set by the respective boards.                     fields as well such as Vocational Training Courses,
                                                                          School Accreditation etc. At present, 37 NABET
      Activities of QCI
                                                                          accreditation schemes are operational in different
      1.     The National Accreditation Board for Certification           areas.
             Bodies (NABCB):
                                                                          Quality Council of India (QCI) has launched
             NABCB offers accreditation to the certification              an Accreditation Standard for Quality School
             bodies for the Quality Management Systems                    Governance in the country, with a view to provide
             (ISO 9001), Environmental Management Systems                 frameworks for effective management and delivery
             (ISO 14001), Food Safety Management Systems                  of the holistic education programme aimed at
             (ISO 22000), Inspection Bodies (ISO / IEC 17020)             overall development standards.
             and Product Certification Bodies as per ISO/IEC
                                                                     4.   National Accreditation Board for Hospitals & Health
             Guide 65. The accreditations offered by NABCB
                                                                          Care Providers (NABH):
             are according to relevant international standards
             to enable worldwide acceptance of India’s                    The board is responsible for accreditation activities
             conformity assessment. The Board is a member of              related to hospitals and other healthcare providers
             International Accreditation Forum (IAF) and Pacific          based on NABH Standards. NABH is the institutional
             Accreditation Cooperation (PAC).                             member of the International Society for Quality in

Department of Industrial Policy & Promotion

   Health Care (ISQua). ISQua is an international body          5.         The National Board for Quality Promotion (NBQP):
   which grants accreditation to Accreditation Bodies
                                                                           This Board is entrusted with the task of carrying
   in the area of healthcare under its International
                                                                           out National Quality Campaign of Government of
   Accreditation Program (IAP).
                                                                           India. The Campaign aims to spread awareness on
   At present the following accreditation programs                         the importance of achieving international level of
   are fully operational:                                                  quality of products and services. The campaign,
                                                                           apart from focusing on industry, looks at other key
   1.       Accreditation of Hospitals based on
                                                                           areas like health, education and public services.
            standards for hospitals, 2nd Edition, 2007
                                                                           An expert committee of eminent personalities
   2.       Accreditation     of     Small    Health    Care               provides the strategic direction to the activities of
            Organizations (SHCO) based on standards                        this Board.
            for SHCO, 1 Edition, 2008

                                                                           This Board promotes quality consciousness
   3.       Accreditation      of    Blood     Banks     and               through various initiatives that includes conduct
            Transfusion Services based on standards                        of awareness programmes, organization of
            for Blood Bank and Transfusion Services, 1st                   regional quality conclaves as well as annual
            Edition, 2007                                                  quality conclave, commissioning of studies/
   4.       Accreditation of Oral Substitution Therapy                     surveys, publication of newsletters and books and
            (OST)   Centre’s        based    on     standards              media campaign. NBQP has instituted a national
            developed by National AIDS Control                             award on Economics of Quality, to promote the
            Organization (NACO).                                           successful Indian case studies which have taken
                                                                           quality initiatives leading to financial gains in real
   5.       Accreditation of Primary/ Community                            terms.
            Health Centres.
                                                                           The summarized version of awareness
   Hospital standards have been accredited by ISQua                        programmes conducted during the period April
   for the full cycle of April 2008 to March 2012.                         2009 – September 2009 Table 9.1.
   This achievement of ISQua accreditation status                                             table 9.1
   provides a basis for international equivalence.
                                                                      S.                 Sector                 No. of
   Applications from 330 hospitals were received.                    No.                                     Programmes
                                                                                                             (April 2009 –
   Thirty    nine   hospitals       have     been    granted
                                                                                                           September 2009)
   accreditation by NABH.                                            1.     Education                             24
   Applications from 85 SHCO were received. Three                    2.     Environment                             -
                                                                     3.     Food Safety                             -
   SHCO have been granted accreditation by NABH.
                                                                     4.     Health                                13
   Applications from 19 blood banks were received.                   5.     Industry & Public                     28
   Ten blood banks have been granted accreditation                          Services
   by NABH.                                                                 Total                                  65

   Applications from 64 OST centers were received.              6.         Quality Information and Enquiry Services (QIES):
   Fifty two centers were granted accreditation and
                                                                           The QCI regularly receives enquiries on its
   12 centers were denied accreditation.
                                                                           schemes and other Quality related standards
   One PHC from district of Vadodara, Gujarat has                          and information either directly or through the
   been granted accreditation.                                             website.

      CHAPTER 10                                                    Annual Report 2009-10

      United Nations Industrial Development
      Organisation (UNIDO)

      The United Nations Industrial Development Organization          l      Environmentally sustainable industrial development.
      (UNIDO) based in Vienna, Austria was established in
      1966. In 1985, UNIDO became a specialized agency of             Organization and its bodies:
      the United Nations to promote industrial development
                                                                      The Organization is headed by a Director General. The
      and cooperation at the global, regional, national and
                                                                      main policy making organs of the UNIDO are:
      sectoral levels. India has been an active member of the
      Organization since its inception.                                      General Conference;
                                                                             Industrial Development Board; and
      Aims and Objectives
                                                                             Programme & Budget Committee
      UNIDO is committed to the promotion and industrialization
      of the developing countries in order to ensure sustained        The General Conference consists of representatives of all
      socio-economic growth. In its role as a global forum,           173 Member States and holds a regular session every two
      UNIDO generates and disseminates knowledge relating             years. The Industrial Development Board (IDB) comprises
      to industrial matters and provides a platform to the            of 53 members of the Organization elected by the General
      private sector, civil society organizations and the policy-     Conference and has a term of four years. The Programme
      making community in general to enhance cooperation,             and Budget Committee (PBC) consists of 27 members of
      establishes dialogue and develops partnerships.                 the Organization elected by the General Conference for
                                                                      period of two years.
      In pursuance of this goal and in response to the changing
      demands of the international community, UNIDO                   India’s Contribution
      concentrates its work programme to achieve the following
      major development objectives which are of direct interest       India, a founding member of UNIDO, is both a recipient and
      to the developing countries.                                    a contributor to its multifaceted industrial and cooperation
                                                                      programmes.        India makes an annual membership
      l      Industrial and technological         growth     and      contribution and voluntary contribution of around Rs.8 crore
             competitiveness;                                         each year. The voluntary contribution to UNIDO Industrial
      l      Equitable development         through     industrial     Development Fund is mainly utilized for implementing
             development;                                             UNIDO projects in India as well as extending technical
      l      International cooperation in investment and              assistance from India to other developing countries.
                                                                      The details of India’s voluntary contribution to UNIDO’s
      l      Development of human resources for industry; and         Industrial Development Fund are as given in Table 10.1:
                                                              table 10.1
            Year       Special Purpose (in US$ million)     General Purpose (in US$ million)       Total in US$ million (Rs.)
          2001-02                   1.100                                0.100                      1.200 (Rs.5,88,00,000)
          2002-03                   1.100                                0.100                      1.200 (Rs.5,88,00,000)
          2003-04                   1.060                                0.100                      1.160 (Rs.5,33,60,000)
          2004-05                   1.440                                0.100                      1.540 (Rs.6,70,29,850)
          2005-06                   1.211                                0.100                      1.311 (Rs.5,83,68,505)
          2006-07                   1.278                                0.100                      1.378 (Rs.6,20,25,840)
          2007-08                   1.079                                0.100                      1.179 (Rs.4,80,00,000)
          2008-09                   0.940                                0.100                      1.040 (Rs.5,40,00,000)
          2009-10                   1.100                                0.100                      1.200 (Rs.6,00,00,000)

 Department of Industrial Policy & Promotion

Country Programme for India 2008-2012                         A major project is the US $ 5.9 million Integrated Cluster
                                                              Development Programme (ICDP) which will focus on
The Country Programme of Cooperation between India
                                                              technology, management, skill development and the
and UNIDO 2008-2012 was signed in Vienna on May
                                                              environment. The Programme will be implemented
16, 2008 by Mr Ajay Shankar, Secretary, Department
                                                              during 2009-2014 at sites such as Pithampur, Chennai,
of Industrial Policy and Promotion (DIPP), Ministry of
                                                              Pune, Ankleshwar, Kanpur and NCR Delhi, meeting the
Commerce and Industry, on behalf of Government of India,
                                                              specific needs of each industrial location.
and Dr Kandeh K. Yumkella, Director-General, UNIDO.
The five-year US $ 42 million programme is aligned to the     The ICDP is designed to provide integrated turnkey
objectives of India’s 11th Five Year Plan 2008-2012 and its   solutions to the constraints affecting each of the 8 pre-
national manufacturing competitiveness strategy, while        selected SME sectors – constraints relating to technology,
supporting on the side of the UN, the UN Development          quality and environment. A combination of financial
Assistance Framework 2008-2012.                               support under the existing Industrial Infrastructure
                                                              Upgradation Scheme (IIUS) of DIPP; technical services
The Country Programme aims to raise the competitiveness
                                                              by DIPP-affiliated agencies such as the Quality Council
of industrial enterprises in India through industrial
                                                              of India, National Productivity Council and the National
policy advice, investment and technology promotion,
                                                              Institute of Design, and by UNIDO – through its specialized
technology-oriented initiatives to increase productivity
                                                              services namely, cleaner production, lean manufacturing
and the environmental sustainability of industrial            and energy efficiency, will be crafted to provide a
production.                                                   customized answer to the specific requirements of each
The thrust of the Country Programme is reflected in its       cluster.
three components – the first two are geared to firm-level     The Programme combines projects that will help improve
technological capabilities, with a strong emphasis on         resource productivity and environmental performance
environmental upgradation of industry through energy          of small and medium enterprises, in particular in auto
efficiency, renewable energy, water conservation and          components, leather and chemicals sectors.
waste management; and to the creation of social capital
through small and medium enterprises (SME) cluster            A separate project worth US $ 3 million will deal with
                                                              upgrading India’s machine tools industry. The machine
development. The third component has a distinctive
                                                              tools industry in India has come a long way, but it
function as it encompasses cross-border initiatives to
                                                              needs to be strengthened to cost-effectively produce
share knowledge and expertise between India and other
                                                              quality machine tools through technological upgrade
developing countries.
                                                              and market development. The Indian industry has an
                                                              abundance of skilled manpower, basic raw materials and
Integrated Cluster Development Programme 2009-
                                                              a rising class of technical entrepreneurs. By addressing
2014 & other new projects signed                              productivity, quality, reliability, service and technology,
Within the broader framework of cooperation with              the performance of the Indian machine tool enterprises
India, as outlined in the Country Programme of                can be greatly improved. And in this effort, a greater focus
Cooperation between India and UNIDO (2008-2012), a            on increased exports is needed for the long-term viability
number of new industrial projects were launched during        of the expanded industry.
the year and agreements to this effect were signed in
Vienna on 7 August 2009 by Mr Ajay Shankar, Secretary,
                                                              Projects/Activities in India
Department of Industrial Policy and Promotion (DIPP),         A number of projects are currently being implemented
Ministry of Commerce and Industry, Government of              by UNIDO under the Country Programme of Technical
India and Dr Kandeh K. Yumkella, Director-General,            Cooperation between India and UNIDO with the voluntary
UnIdO.                                                        contributions made to the Industrial Development Fund

                                                                    Annual Report 2009-10

                Meeting of Secretary, Department of IPP, Mr R. P. Singh with the DG, UNIDO Dr Kandeh K. Yumkella

      (IDF), bilateral and multilateral assistance through UNIDO,         Investment and Technology Promotion – covering
      Montreal Protocol, and the Global Environment Facility              leather footwear and automobile component
      (GEF) assistance. At the end of November 2009, there                sectors
      are a total of 33 ongoing programmes/projects with a            l   Environmentally Sound Management of Medical
      total budget of US $ 26 million.                                    Wastes in India – preparatory phase
      Some of the important ongoing UNIDO projects in India           l   Promoting Livelihoods in North Eastern India: The
      are:                                                                Cane and Bamboo Networking Project

      India-UNIDO Business Partnership Programme                      l   National Programme for Technology Upgradation
                                                                          of Brass and Bell Metal Industry/Artisan Enterprises
      l      Promoting Energy Efficiency and Renewable Energy             in Khagra and other areas in West Bengal and
             in Selected Micro, Small and Medium Enterprises              neighbouring states - Phase I
             (MSME) Clusters in India
                                                                      l   Cleaner Technology Promotion in India
      l      Integrated Cluster development Programme –
                                                                      l   Eco City – Eco Business Partnership Programme in
             preparatory phase
      l      India-UNIDO Business Partnership Programme
                                                                      l   Plan for Phase-out of CFCs in the manufacturing
             – Phase II (increased): Support to Small and
                                                                          sector (refrigeration)
             Medium Sized Manufacturers in the Automotive
             Component Industry in India                              l   CTC Phase-out for the Consumption and Production
      l      Consolidated Project for SME Development in
             India through establishment of Mutual Credit             l   Development of a National Implementation Plan
             Guarantee Schemes, Cluster Twinning and Foreign              in India as a first step to implement the Stockholm

 Department of Industrial Policy & Promotion

       Convention on Persistent Organic Pollutants            in achieving their developmental objectives within a
       (POPS)                                                 framework of environmental sustainability.

                                                              The highlights of India’s participation in the event were:
India’s Participation in the International
                                                              a) The National Statement on behalf of India which
Conference on Green Industry in Asia 2009
                                                              was read out at the plenary on 9th December 2009
A three-day International Conference on Green Industry        by Ms Anjali Prasad, Joint Secretary, Department of
in Asia 2009 was held in Manila on 9-11 September             Industrial Policy and Promotion, Ministry of Commerce
2009 under the theme “Managing the Transition to the          and Industry, Government of India, who led the official
Resource –Efficient and Low Carbon Industries” hosted         Indian delegation to the Conference. The statement
by the Philippines Government in cooperation with the         underlined India’s long standing association with
UNIDO, the United Nations Environment Programme               UNIDO; the areas of UNIDO’s expertise which are
(UNEP) and the UN Economic and Social Commission for          particularly relevant in meeting the challenges of the
Asia and the Pacific (ESCAP). The conference was held to      global economic crisis and climate change in order to
achieve a transition to a resource-efficient and low-carbon   enhance the competitiveness of Indian industry and
pattern of industrial development for Asian economies.        ensure environmental sustainability of the industrial
The Conference endorsed a Ministerial Declaration and         development process; and the promising areas of future
Plan of Action that outlined the steps needed to reduce       industrial cooperation. b) Signing of an agreement for
the resource intensity and greenhouse gas emissions           cooperation in the plastics sector; and c) An exhibition
of industries in Asia and track progress towards a low-       on Industrial Energy Efficiency which was organized by
carbon industrial future.                                     DIPP with the Bureau of Energy Efficiency (BEE) and the
                                                              UNIDO South Asia Regional Office, at the Rotunda of
India’s Participation in the UNIDO General                    the Vienna International Centre from 7 to 11 December
Conference 2009                                               2009, showcasing Green Industry initiatives in India,
                                                              with particular reference to the significant strides being
The General Conference, Thirteenth Session, of the            made in the field of industrial energy efficiency.
United Nations Industrial Development Organization
(UNIDO) was held in Vienna on 7-11 December 2009.
The General Conference, UNIDO’s highest policy making
organ, and consisting of all 173 member states, brought
together hundreds of participants including Heads
of State and Government, Ministers and other high-
level officials from around the world, as well as senior
representatives of other United Nations organizations,
prominent business leaders, representatives of civil
society and experts from research and academic
institutions. The Conference this year carried an
overarching thematic focus on “green industries” and
the opportunities they offer for developing countries         An overview of exhibition on Industrial Energy Efficiency
in the current global economic scenario. This served           organized by the Department of Industrial Policy and
to highlight the role of industry in finding solutions to        Promotion in cooperation with Bureau of Energy
                                                                   Efficiency and UNIDO Regional Office in India.
emerging and global challenges faced by these countries

      CHAPTER 11                                                   Annual Report 2009-10

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

      Representation of Scheduled Castes/Scheduled                   under Prime Minister’s new 15 Point Programme for the
      Tribes/OBCs                                                    welfare of minorities.

      An SC/ST Cell has been created in the Department               Representation of persons with disabilities in
      under a Liaison Officer of the rank of Deputy Secretary        services
      with the objective of ensuring proper implementation
      of the instructions issued from time to time relating to       In order to ensure effective implementation of “Persons
      reservations for SCs/STs/OBCs in Government service. The       with Disabilities Act, 1995” for reservation of physically
      SC/ST Cell in the Department is responsible for monitoring     handicapped persons, Department of Industrial Policy
      the implementation of instructions of the Government on        & Promotion has been making vigorous efforts. The
      the reservation of SC/STs in services in the Department        instructions issued by the Government of India from time
      as well as in various attached/subordinate offices,            to time are being implemented in the Department.
      inspection of reservation rosters, ensuring submission
      of regular returns to the Department of Personnel &            The breakup of number of persons with Disabilities and
      Training, examining the de-reservation proposals of            ex-servicemen working in the Department of Industrial
      reserved vacancies, submission of information to National      Policy & Promotion and its Attached/Subordinate and
      Commission for Scheduled Castes/Scheduled Tribes and           Autonomous Bodies is given in Table 11.1.
      looking into the grievances of SC/ST employees.
                                                                       S. Category Sanctioned           No. of     No. of Ex-
      Periodic directions are also being issued by the                No. of post   strength          Physically    Service-
      Department to all administrative sections as well as                                             handi-        men
      the appointing authorities under its control to ensure
      proper implementation of the directives on reservation
                                                                       1.       A        1453              6            -
      for members of the Scheduled Castes/Scheduled Tribes/
                                                                       2.       B        1168              4            6
      OBCs/Ex-servicemen and Physically Disabled Persons.
                                                                       3.       C        1798             38          20
      Suitable measures are being taken by the Department
                                                                       4.       d        1068             23          12
      to give special consideration to minorities in recruitment

 Department of Industrial Policy & Promotion                                            CHAPTER 12

Women Welfare Activities

The principle of gender equality is enshrined in the Indian   prompt action on any complaint of sexual harassment at
Constitution in its Preamble, Fundamental Duties and          work place.
Directive Principles. The Constitution not only grants
equality to women, but also empowers the State to adopt       The Department follows all the guidelines of the
measures of positive discrimination in favour of women.       Government in this matter and all possible efforts are
Within the framework of a democratic polity, our laws,        being made to create healthy and congenial atmosphere
developmental policies, plans and programmes have             so that women employees can perform duties with
aimed at advancement of women in different spheres.           honour, dignity and without fear. The suggestions from
                                                              women employees are invited from time to time for
In consonance with the guidelines proposed by the
                                                              improvement in their working conditions.
Hon’ble Supreme Court in the case of Vishakha and
others Vs. State of Rajasthan, the National Commission        A meeting of the Complaints Committee in the
for Women drafted a code of conduct for adopting the          Department was held in October, 2009 wherein it was
same in the Ministries/Departments. The Department            observed that no case of Sexual harassment of women
has a Complaints Committee headed by a woman                  employees at work place has been reported during the
Director in accordance with the code of conduct wherein       current year. In the meeting it was decided that the
it was stipulated that the Committee should be headed         members of the Committee would remain vigilant in their
by a woman and not less than half of its members should
                                                              respective Departments/Offices and provide all possible
be women.
                                                              assistance to women employees and shall bring such
The constitution and objectives of the Complaints             cases to the notice of the Committee, if any. It was also
Committee has been intimated to all sections in this          decided to follow the instructions of the Government to
Department. All the attached/subordinate offices under        have meeting of the Complaints Committee once in a
the Department have also such committees for ensuring         quarter, even if there is no live case.

      CHAPTER 13                                                       Annual Report 2009-10

      Use of Official Language

      Hindi in Devnagari script is the Official Language of the          Sections specified for working in Hindi
      Union of India and the Official Language policy aims
                                                                         15 Sections (earlier 17, as two sections do not exist now)
      at progressive use of Hindi in official work. Effective
                                                                         out of a total of 52 in the Department have been notified
      steps were taken during the year in the Department
                                                                         for doing their cent percent work in Hindi.
      to ensure compliance of the Official Language Policy
      of the Government, as also to implement the Annual                 Monitoring and Inspections
      Programme issued by the Department of Official
      Language, Ministry of Home Affairs and comply with                 In order to ensure compliance of the Official Language
                                                                         Policy, monitoring is done through review of quarterly
      the orders of the President on recommendations of
                                                                         progress reports in the meetings of the Official Language
      the Committee of Parliament on Official Language.
                                                                         Implementation Committee. During the year, 10 sections
      Consequently, there has been constant progress
                                                                         of the Department and two offices located outside
      in use of Official Language in official work in the                headquarters have been inspected with a view to ensure
      department.                                                        the progressive use of Hindi and compliance of Official
                                                                         Language Policy of the Government.
      Compliance of Section 3(3) of the Official
      Language Act, 1963                                                 Hindi Training

      All documents, such as, resolutions, general orders,               Priority is being given to the work of imparting training
      rules, licenses etc falling under Section 3(3) of the Official     in Hindi typing and stenography in the Department. A
      Language Act 1963, and all papers to be laid on the Table          number of officials of the Department have already been
      of the Houses of Parliament were issued bilingually, i.e.,         trained in Hindi typing and Hindi stenography. Efforts
      in Hindi and English.                                              to impart training in a phased manner to the remaining
                                                                         employees are continued. The facility of providing
      Replies to Hindi Letters                                           training in Hindi, including typing and shorthand under
                                                                         Hindi Teaching Scheme is available in Udyog Bhawan
      All letters received in Hindi were replied to in Hindi in the
                                                                         premises itself.

                                                                         Mechanical Aids
      Correspondence in Hindi
                                                                         As per provisions of Official Language Act, bilingual
      Letters to State Governments, Union Territories and their
                                                                         mechanical facilities have been provided on all mechanical
      offices as well as the offices of the Central Government
                                                                         equipments in the Department. Facility of unicode
      located in region ‘A’ and ‘B’ were issued in Hindi to the
                                                                         encoding to work in Hindi is available on almost all the
      extent possible. Similarly, efforts were also made to send
      letters in Hindi to Central Government offices located
      in region ‘C’ as per targets laid down in the Annual
      Programme. About 46%, 34% and 16% of correspondence
      was done in Hindi with Region ‘A’,’B’ and ‘C’, respectively,       To review the use of Hindi in the Department and to
      during the year.                                                   advise on progressive use of Hindi, a Hindi Salahakar
                                                                         Samiti has already been constituted. Consequent

 Department of Industrial Policy & Promotion

upon the formation of new government at the                   subordinate offices and other Organisations/Grantee
Centre, partial reconstitution of the Committee is            Institutions under the Department for information and
underway.                                                     compliance.

A departmental Official Language Implementation               During the ‘Hindi Fortnight’ celebrations, as many as 6
Committee under the Chairmanship of Joint Secretary (in-      competitions in Hindi typing, General Knowledge (Hindi)
charge-official language) in the Department has already       essay writings, General Knowledge (Hindi) competition
been constituted. Meetings of this committee were held        for Senior Officers, noting and drafting, Hindi debate
regularly in every quarter and important decisions were       and Self/Composed poem recitation competition were
taken regarding use of Hindi in official work. Necessary      held. Competitions like debate and self composed poem
follow up action was also taken to ensure compliance to       recitation were held for the first time in the Department
these decisions.                                              to encourage and motivate the employees for doing their
                                                              official work in Hindi. A large number of officers and
Hindi Fortnight                                               employees participated in these competitions with great
                                                              enthusiasm. Prizes were distributed to 63 successful
“Hindi Fortnight” was celebrated in the Department from
                                                              contestants in a prize distribution ceremony held at
1st to 15th September 2009.
                                                              ITPO Hall, Pragati Maidan under the chairmanship of
Messages of the Hon’ble Home Minister, Cabinet Secretary      Shri Jyotiraditya Scindia, Hon’ble Minister of State for
and Secretary (IPP) were circulated to the officers/          Commerce & Industry. A cultural programme was also
employees in the Department and to the attached and           organised on this occassion.

                            Hon’ble MOS (Industry) Shri Jyotiraditya Scindia addressing the
                                    Prize Distribution Function of Hindi Fortnight.

                                                                    Annual Report 2009-10

      Hindi Workshops                                                 department is reviewed through the quarterly progress
                                                                      reports submitted by them to this Department at the end
      With a view to apprise the Senior Officers and other
                                                                      of each quarter. With a view to ensure use of Hindi and
      employees of the Department of latest software/facilities
                                                                      compliance of the official language policy in these offices
      developed by the Department of Information Technology
      and Department of Official Language and to promote              periodic inspections were carried out. To accelerate the
      the use of Official Language Hindi in the Department,           pace of use of Hindi, necessary instructions issued by the
      Hindi workshops were organized. Hindi workshop two              Department of Official Language were also circulated to
      days was held on 19th and 20th of May, 2009 and again           these offices.
      a workshop of three sessions was conducted on 15th
      and 18th January, 2010. In these workshops, experts and         The attached and subordinate offices continued
      scholar officers were invited to deliver lectures on the        their   endeavour      towards      ensuring     effective
      subjects like working on Unicode supported Computers            implementation of various provisions of Official
      in Hindi, writing notes and drafts and filling up of QPR in     Language Act and Rules to promote and progressively
      a correct manner.
                                                                      propagate the use of official Language in their day-
                                                                      to-day working. Their correspondence in Hindi
      Incentive Scheme
                                                                      with offices located in ‘A’, ‘B’ and ‘C’ regions was
      An incentive scheme for doing official work (noting/            found to be satisfactory. However, they were given
      drafting) originally in Hindi already exists for officers
                                                                      instructions to further increase the percentage of
      and employees in the Department. In addition, another
                                                                      work done in Hindi.
      incentive scheme has also been launched this year for
      the sections for doing their maximum work originally in         Like previous years, this year also a Hindi Week/Fortnight
                                                                      was organized during the month of September, 2009
                                                                      in all the aforesaid offices. Wide-ranging Competitions
      Attached and Subordinate Offices
                                                                      encompassing Hindi noting & drafting, Hindi dictation,
      The progress of the use of Official Language in the             Hindi typing etc. were organized during the week/
      attached and subordinate offices/organisations of the           fortnight. Winners were awarded prizes.

    Department of Industrial Policy & Promotion                                         CHAPTER 14

Vigilance Activities

The Vigilance Unit of the Department is headed by a            however, rests with the Chief Vigilance Officer of the
Chief Vigilance Officer (CVO) of the rank of Joint Secretary   Department of Industrial Policy and Promotion.
who is appointed on the advice of the Central Vigilance
                                                               Preventive vigilance continues to receive priority
Commission. The Chief Vigilance Officer is the nodal point
                                                               attention with emphasis on identification of areas
in the vigilance set up of the Department and is entrusted
                                                               sensitive or prone to malpractices and temptation. The
with the following:
                                                               guidelines/instructions issued from time to time by
l      identification of sensitive areas prone to              the Department of Personnel and Training and Central
       malpractices and taking preventive measures to          Vigilance Commission in this regard are followed. Action
       ensure integrity and efficiency in the functioning      taken includes the following:-
       of the Department;
                                                               i)     The areas of sensitive nature have been identified
l      taking suitable action to achieve the targets fixed            in the Department and surveillance is kept
       by the Department of Personnel and Training on                 thereon.
       anti-corruption measures;
                                                               ii)    Regular and surprise inspections to check
l      scrutiny of complaints and initiation of appropriate           security have been carried out in the Department
       investigation measures;                                        throughout the year. Security measures have
                                                                      been strengthened appropriately.
l      inspection and follow-up action on the same;
                                                               iii)   Steps to put an end to the practice of professional
l      furnishing comments of the Department to the                   liaison- man approaching various officers in the
       Central Vigilance Commission on the investigation              Department have been taken and a fresh list of
       reports of the Central Bureau of Investigation;                unwanted liaison -man has been prepared.
l      taking appropriate action         in   respect    of    iv)    Vigilance Awareness Week was observed from
       departmental proceedings;                                      3.11.2009 to 7.11.2009 to create awareness
                                                                      amongst officers and staff.
 There is no full time Chief Vigilance Officer for attached
and subordinate offices as these are small organisations.      During the year 2009-10, in all fourteen complaints were
Vigilance activities of these offices are being looked         received in the Department up to 31st December, 2009.
after by their respective Divisional Heads. The overall        Of these, 1 complaint was disposed of. Remaining 13
responsibility of vigilance activities of these offices,       complaints are under investigation/ examination.

      CHAPTER 15                                                  Annual Report 2009-10

      Gender Budgeting

      The Department of Industrial Policy and Promotion             Accordingly, the Schemes and Programmes of the
      initiated the exercise of Gender Budgeting in 2006, in        Department of Industrial Policy & Promotion were
      order to advocate for and support the engendering of          analysed, from the gender perspective, by dividing them
      economic governance with the objective of increasing          into the following three categories:
      and highlighting the participation of women. A gender
                                                                    a.     Women-centric programmes / schemes and pro-
      analysis was also undertaken in this financial year to
                                                                           women allocation;
      enhance the outcomes of critical programmes to ensure
      accountability and transparency so as to promote equity       b.     Schemes /Programmes that have a significant
      in Government policy and implementation. Apart from                  (over 30 percent) allocation for women; and
      announcing its policy commitments towards women
      through this initiative, the Department also aims for         c.     Schemes/ Programmes that cannot have gender
      a more people-oriented development strategy and                      sensitive elements.
      equitable allocation of resources.                            The Schemes being implemented by this Department
      An analysis of the budgetary allocations has been done        can be categorized broadly into: (i) Subsidy Schemes
      through a gender perspective, so as to translate gender       (ii) Schemes for Strengthening Industrial Infrastructure
      commitments into budgetary commitments. This, in              (iii) Technology Up-gradation and (iv) Special Package for
      turn, is hoped, will ensure effective targeting of public     North East and other States. These are schemes which
      spending and improving the access of women to national        fall into the third category, as by their very nature, they
      resources.                                                    are gender neutral.

 Department of Industrial Policy & Promotion                                            CHAPTER 16

Citizens’ Charter

Mission Statement                                            cross-fertilization of ideas that help overall promotion
                                                             of industrial development.
We shall work consciously and dedicatedly for positioning
India amongst the top industrial countries of the world in   Endeavour to create more effective channels of
a relatively shorter time frame.                             communication and forums for interface with the
                                                             stakeholders and other interests groups through
We shall Create enormous opportunities for investment in
                                                             e-governance, which requires large-scale computerization
sustainable industrial activities and open up employment
                                                             and automation in our functioning.
avenues for enhancing the quality of life of the common
man.                                                         Maintain the confidentiality of the personal and business
                                                             information disclosed to us.
We shall achieve excellence in formulating balanced
Industrial policies and expeditiously implement them         Stand committed to simplifying procedures for industrial
for the maximum good of the people of India. Our             approvals and keep only minimum controls that are
guiding principles in realizing these lofty goals will be    considered critically essential.
through judicious resource utilization, improvement in
                                                             Place in the public domain all changes in law and
productivity, dispersal of industries, development of
                                                             procedures through appropriate media channels as and
backward areas and more importantly, blossoming of
                                                             when they are finalized.
entrepreneurial talents.

                                                             Standards for General Procedures
Our Values
                                                             Our guiding principles will be: Quick disposal of cases and
We shall consciously and diligently uphold the values of
                                                             redressal of grievances.
integrity, transparency and accountability in our day-to-
day public dealings.                                         Towards this, we shall:-

To add value to our services and to pace up the process of   Continue to issue on the spot written acknowledgments
decision - making and its timely implementation we shall     to all queries and applications.
adopt modern management systems and practices.
                                                             Respond to all queries within 15 working days of receipt
                                                             of the enquiry.
Our Commitment
                                                             In the event of an inevitable delay due to technical
While discharging our duty, we shall:-
                                                             reasons or matter being sub judice, the reasons for the
Continuously consult the stakeholders and other interest     delay shall be communicated.
groups in reviewing the policies and procedures to reflect
their views, perceptions and concerns on the policy          Standards for Industrial Approval
                                                             To facilitate speedy industrial approvals, we shall:-
Consider the stakeholders and interest groups
                                                             Continue to acknowledge on the spot the applications
as partner in progress and accord them respect
                                                             for Industrial Entrepreneurs’ Memorandum/Industrial
and cordiality, encourage them to come out with
                                                             Licence/Foreign Collaborations.
innovative concepts and procedures to provide for

                                                                      Annual Report 2009-10

      Take a decision within 14 working days on the receipt of a        assessment of the quality of our services. The results of
      completed application under automatic route for foreign           these surveys will be placed in the public domain.
      Continue to decide on applications for Letters of Intent/
      Industrial Licence, foreign collaboration and investment          Please visit our Information and Facilitation Counter (IFC)
      within six weeks from the receipt of the completed                and the Public Relation Office, at Udyog Bhavan, New
      applications.                                                     Delhi, Department of Industrial Policy and Promotion,
                                                                        Ministry of Commerce and Industry (Near Gate No. 11)
      Issue duty concession/project import facilities within four
                                                                        tel 011-23063088. Receipt of all applications can be
      weeks from the receipt of the completed applications.
                                                                        obtained from the IFC office.
      Forward our recommendations to other departments/
                                                                        Our Cell for Investment Promotion and Infrastructure
      ministries within four weeks from the receipt of completed
                                                                        Development will provide information, guidance
      requests/applications from the concerned Department,
                                                                        and escort services on investment promotion and
      applicant or redress-seeker, wherever the disposal of
                                                                        infrastructure development.
      case requires our recommendation.
                                                                        Printed publications of the Department can be obtained
      Provide an opportunity for personal hearing, with an
                                                                        from any outlet of the Controller of Publications. Please
      officer of appropriate rank in the Department in case it
                                                                        also visit our website ( for the latest
      is necessary.
                                                                        information through which the Proforma for making
      Continue to inform the applicant /petitioner the reasons          applications for IEM, LOI, foreign collaboration etc. can
      for the rejection of their applications and provide               also be downloaded.
      opportunity for appeal.
                                                                        Grievance Redressal
      Responsibilities of the Users                                     We attach great importance to redressal of grievances
      To serve our stakeholders in a result-oriented manner, we         of the stakeholders for the overall promotion of
      will create structures for regular two-way communications         industrial development. Therefore, a demanding time
      to assess their problems and to evolve quick solutions.           frame for quick disposal of your ‘wish list’ has been
      Towards this, we urge industrial units to send monthly            laid down. That includes resolving the issues within
      production returns regularly to facilitate national planning      14 working days of its receipt. In case of inevitable
      of industrial activities.                                         delay, the reasons for the delay, the time required for
                                                                        redressal of the complaint etc. will be intimated to the
      Other information like status of implementation of their          complainant.
      project till it commences production and suggestions
      for improvement of services are also equally important.           Your ‘wish list’ can be sent to us over the phone, by mail,
      These valuable feedbacks from the stakeholders and                fax or personal visit. Your first contact point is IFC. You
      interest groups will help us to take timely action and            can approach the Grievance Officer in the Department
      move up in the service value chain.                               (Shri Gopal Krishna, Joint Secretary, Tel No. 23062983,
                                                                        E.-Mail: if the issue is not resolved at the
      Service audit                                                     IFC.

      We shall periodically audit the quality of our services based     Additional Secretary and Financial Adviser in the Ministry
      on stringent benchmarks and standards set, both at the            of Commerce and Industry has been appointed as the
      unit and national levels. We will also hold independent           Business Ombudsman to look into the complaints relating
      surveys to capture the stakeholder’s perceptions and              to delays in clearance of projects/approvals.

 Department of Industrial Policy & Promotion

Right to Information (RTI)                                    Secretary level officer has also been designated as the
                                                              Appellate Authority to entertain appeals and to pass
The Department of Industrial Policy and Promotion has
                                                              appropriate order thereon.
implemented the Right to Information Act, 2005.
                                                              To facilitate the citizens, who come in person to submit
As prescribed in Section 4(1)(b) of the RTI Act, 2005, this
                                                              RTI applications/appeals, one RTI Counter at Gate No.
Department has placed all necessary information at the
                                                              11, Udyog Bhavan, New Delhi has also been set up to
website of the Department.
                                                              receive applications/appeals from them. Also, disposal
All the Director/Deputy Secretary level Officers have         of all the applications/appeals received under RTI Act,
been designated as Central Public Information Officers        2005 in the Department is centrally monitored by RTI
to provide information to the citizens. Further, one joint    Section.

                                                  Annual Report 2009-10

                                 USEFUL ADDRESSES
      DeSIGNAtION                ADDReSSeS

      Public Relations Officer   Entrepreneurship           Tel: 011-23063088
                                 Assistance Unit,           EPABX:011-23063321
                                 near Gate no. 11,          Extn. 2237
                                 Udyog Bhavan, New Delhi

      Grievance Officer and      department of Industrial   Tel: 011-23062983
      Joint Secretary            Policy & Promotion,        Fax: 011-23061034
                                 Ministry of Commerce &
                                 Industry, Room No. 135,
                                 Udyog Bhavan,
                                 New Delhi

      Business                   department of Industrial   Tel: 011-23062756
      Ombudsperson and           Policy & Promotion,        Fax: 011-23062101
      Additional Secretary &     Ministry of Commerce &     E-mail:
      Financial Adviser          Industry, Room no. 244,
                                 Udyog Bhavan, New Delhi

 Department of Industrial Policy & Promotion


          Most recent observation of C&AG paras in respect
           of Department of Industrial Policy & Promotion

There is no recent and important audit observation of C&AG pending against Department of Industrial Policy &

                                                         Annual Report 2009-10


            Organizational Chart of the Department of
                 Industrial Policy & Promotion


                                                                      Jt. Secy
      CCA           DS

                    US                       Director                    DS                    DS

                                                  US                     US                    US

                                                                      Jt. Secy

                                 Director   Director      Addl.IA                 Sr.DO       DS          DS

                                  US         US           IP&IC III              IP&IC IV     US          US

                                                                      Jt. Secy

                                Director    Director      Director     DS         Sr.DO       DS

                                 US          US            BE          DD+US     IP&IC II     US

                                                                      Jt. Secy

                                 Director    Dir.(L&I)     DS          DS         DS          Jt. Dir.

                                  US          Library      US          US         US        Hindi Sec



                                                                       Sr. A                  D.O.


                                                                         IA        DDG                   Director


 Department of Industrial Policy & Promotion


     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

Subordinate Offices
1.    Office of the Salt Commissioner, Jaipur

2.    Petroleum & Explosives Safety Organization, Nagpur

3.    Office of the Controller General of Patents, Designs and Trade Marks, Mumbai.

Other Organizations / Grantee Institutions

1.    Central Manufacturing Technology Institute, Bangalore.

2.    Central Pulp & Paper Research Institute, Saharanpur

3.    Indian Rubber Manufacturers Research Association, Thane

4.    National Council for Cement & Building Material, Ballabgarh

5.    National Institute of Design, Ahmedabad

6.    National Manufacturing Competitiveness Council (NMCC),New Delhi

7.    National Productivity Council, New Delhi

8.    Quality Council of India, New Delhi

9.    Delhi Mumbai Industrial Development Corporation Ltd., New Delhi.

                                                                 Annual Report 2009-10


                  List of Industries Reserved for the Public Sector

      1.   Atomic Energy - Production, separation or enrichment of special fissionable materials and substances and
           operation of the facilities, specified in notification No.S.O.2630(E) dated 19.10.2009 of Deptt. of Industrial Policy
           & Promotion, Ministry of Commerce & Industry, Govt. of India.

      2.   Railway transport.


                 List of industries for which Industrial Liecensing
                                 is compulsory are :

      1.   Distillation and brewing of alcoholic drinks.

      2.   Cigars and cigarettes of tobacco and manufactured tobacco substitutes.

      3.   Electronic Aerospace and defense equipment: all types.

      4.   Industrial explosives including detonating fuses, safety fuses, gun powder, nitrocellulose and matches.

      5.   Specified Hazardous chemicals i.e. (i) Hydrocyanic acid and its derivatives, (ii) Phosgene and its derivatives and (iii)
           Isocyanates & diisocyanates of hydrocarbon, not elsewhere specified(example Methyl isocyanate).

Department of Industrial Policy & Promotion


                       Statewise and Yearwise Lists of IEMs filed
                                during Last Five Years
                          Jan 05 to Dec 05          Jan06-Dec06              Jan07-Dec07          Jan’08-Dec’08          Jan’09-Dec’09

                         Nos       prop.Inv      Nos       prop.Inv (Rs.   Nos      prop.Inv     Nos       prop.Inv     Nos      prop.Inv
                                    (Rs.Cr)                    Cr)                   (Rs.Cr)                (Rs.Cr)               (Rs.Cr)

ANDAMAN & NICOBAR           0                0      1               30        0              0         1          123      1             13

AndHRA PRAdESH            412        15391        601           43455       375       59327       377       132005       313     104951

ARUNACHAL PRADESH          10           49          6              130        1             37         7          147      4       1303

ASSAM                      79          977         50             1969       26        1241        32         7428        45       2860

BIHAR                      12          410         79             8580       22        2194        29        13577        32      13710

CHAndIGARH                  0                0      5              234        2             40         0            0      0              0

CHHATTISGARH              284        41832        217          107899       239      168154       285       221863       293     130630

DADRA & NAGAR HAVELI       77         1216        110             3967       64        2959        40         1791        50       1709

dAMAn & dIU                77          905         51             1431       57        1615        45             967     39         858

DELHI                       5           13          8              129       12            180     12              59     21         289

GOA                        46          351         24              300       20            438     37         1000        46       1382

GUJARAT                   750        79548        568           66109       336       92480       361       125357       376     142239

HARYAnA                   209         5863        237           16269       131        6035       122         6429        85       2423

HIMACHAL PRADESH          119         3235        106             2103       34        1227        39         3972        41       6065

JAMMU & KASHMIR           150         2677         93             2197       54        2104        29         1115        23       1223

JHARKHAND                 179        28415         98           33649        77       82201        74       142702        65      79502

KARNATAKA                 244        13813        312           71813       203       58092       194       142218      179       92054

KERALA                    31           553         43             470        16            940     15             269     8          171

LAKSHADWEEP                 0                0      0                0        0             0          0            0      0             0

MAdHYA PRAdESH            171        19212        186           10971       197       21083       305       199116       182      66669

MAHARASHTRA               724        20274        861           38122       582       84957       705        92257       593      68069

MAnIPUR                     1                7      0                0        1             10         0            0      0              0

MEGHALAYA                  37          458         17             1482       16        3024        18         2587        10         970

MIZORAM                     0                0      0                0        0              0         0            0      0              0

NAGALAND                    0                0         0             0        2             81         0            0      0              0

ORISSA                    208        41838        107           69409       131      112120       160       253201        99     167932

POndICHERY                 41          413         53              840       16            899     24         1020        14         712

PUNJAB                    177         5098        189           10536        92        3607        91         9127        68       9731

RAJASTHAN                 171         5406        181             7496       82       13840       102        21899        88      13461

SIKKIM                      7           75         11             1331       21            797     13             575      8         150

TAMIL NADU                534         8782        724           19522       393       26387       289        24145       233      66864

TRIPURA                     3           92          0                0        2            151         3           68      2             83

UTTAR PRAdESH             690        33332        560           38811       181        9180       199        16480       176      10142

UTTARAKHAND               343         5209        467           13756       114        8139       148         6069       165       9293

WEST BENGAL               412        18512        295           15261       226       63961       223        95000       206      44390

TOTAL                    6203       353956       6260          588271      3725      827500      3979      1522566      3465    1039848

                                                                               Annual Report 2009-10


                                    Sectorwise and Yearwise Lists of IEMs
                                         filed during Last Five Years
                                   Jan 05 to Dec 05        Jan'06-Dec'06         Jan'07-Dec'07           Jan'08-Dec'08            Jan'09-Dec'09
      SCHEDULED INDUSTRY          Nos       proposed     Nos      proposed     Nos       proposed     Nos        proposed     Nos         proposed
                                           Investment            Investment             Investment              Investment               Investment
                                            (Rs.Crore)            (Rs.Crore)             (Rs.Crore)              (Rs.Crore)               (Rs.Crore)
      01 Metallurgical            1247     101730         841      144128       630       180973       781        364978        641         254285
      02 Fuels                      58      25432          32       23782        36       35001          42       42225             46      61743
      03 Boilers&Steam Gen.          1          7           8         342         1           7           2         197              3        410
      04 Prime Movers              139       5138         170       3766        105        6532         106        8716          87          4265
      05 Electrical Equipments     384      75466         366     150844        365      351685         440      530227         419        472403
      06 Telecommunications         34       1181          56       2975         38        1326          32         739          14          5371
      07 Transportation             75       2059         123      10688         66       11314          79       24862          60          5048
      08 Industrial Machinery      152       1803         142        1662        66        2694          77         4092            68        5805
      09 Machine Tools              10         54          12          95         6         121          12          211             4         174
      10 Agricultural               18        105          18         850         5         678           8          195            15         518
      11 Earth Moving                6         64           6          90         9         601           4          171             2         112
      12 Misc.Mechanical &         279       3265         284        4531       280       11353        144        11544         167         12976
      13 Comm/Office/Hhold          13        133          12          45         5           59          2           39             6        1583
      14 Medical and Surgical       12         48           7          15         7           55         11          318             0           0
      15 Industrial                  1         14           3           5         0            0          1           54             1           2
      16 Scientific Instruments     10         62          10           7        10         165           9          132             2          32
      17 Math,Survey,Drawing         0          0           0           0         0           0           0            0             0           0
      18 Fertilizers                86        659          59         391        19         245          34         835          38          2183
      19 Chemicals(Except          475      24245         403       38582       302       30356         316      151077         228         20818
      20 Photographic raw            0           0          0           0         0            0          0            0             0           0
      21 Dye Stuffs                  8        125          14         430         4          24          6           310          4            231
      22 drugs and                 206       2205         220        4290       110        3070        106          2878        104           2776
      23 Textiles                  815      21605        1080       26325       472       22193        326        10730         326           9200
      24 Paper and Pulp            141       5473         135        8199        67        4649         83         5841          79           6037
      25 Sugar                     517      36064         540       58295        80        6942         80         9047          73           4947
      26 Fermentation               83       2888         178        8008       117        5171        123         8230          75           4566
      27 Food Processing           241       2977         264        3302        86        2170         121         3950        157           6996
      28 Vegetable Oil &           141       1057         110        1248        55        1408        132          2927        114           3694
      29 Soaps, Cosmetics and       48       1034          68        1719        24         657          21          629            28        1626
      30 Rubber Goods               65       1102          52       2403         36        1191         27         2867          28          2118
      31 Leather                    54        209          46        148         19         266          6          106           7           106
      32 Glue and Gelatin            7         82           6         31          1           0          3           27           2            27
      33 Glass                      43        692          32       2179         12         957         22         2702          27           558
      34 Ceramics                   55       1316          65       1087         46        3066         43         2375          17           818
      35 Cement and Gypsum         106       9792         172      39140        214       72883        203       120871         143         52366
      36 Timber Products             9        163           0          0          4         105          8          622           2            96
      37 defence Industries          0          0           0          0          0           0          0            0           0             0
      38 Misc.Industry              61       1117          69       1115         57        1474         40          982          36           424
      Others                       603      24590         657      47554        371       68109        529       206860         442         95534
      total                       6203     353956        6260     588271       3725      827500       3979      1522566        3465       1039848

Department of Industrial Policy & Promotion


                       Statewise Details of IEMs Implemented
                                    From August 1991 to December 2009
                             Based on Part B of IEM Form filed by Entrepreneurs

          State/UT               No.of IeMs              Investment (Rs.Crore)    Employment (Numbers)
Andaman & Nicobar Islands                1                             0                    165
Andhra Pradesh                         813                        19788                  158651
Arunachal Pradesh                        4                             9                    474
Assam                                  103                         1567                    9595
Bihar                                   13                           168                   2215
Chandigarh                               4                           258                   1165
Chhattisgarh                            71                         2377                   13138
dadra & nagar Haveli                   101                         1705                    9536
daman & diu                             96                         2347                    6564
Delhi                                   50                           646                   4880
Goa                                    110                           818                  14261
Gujarat                               1500                        81591                  211795
Haryana                                442                        17121                   71586
Himachal Pradesh                        83                         1799                   12300
Jammu & Kashmir                         20                         2048                   29875
Jharkhand                               66                         2061                    9816
Karnataka                              233                        10223                   42491
Kerala                                  81                         1019                   11764
Lakshadweep                              0                             0                      0
Madhya Pradesh                         373                        10430                   86631
Maharashtra                           1445                        36474                  235727
Manipur                                  1                            13                    385
Meghalaya                               26                            73                   2083
Mizoram                                  0                             0                      0
nagaland                                 0                             0                      0
Orissa                                  74                         1866                   12127
Pondicherry                             51                           359                   5436
Punjab                                 317                         6810                   75005
Rajasthan                              412                        13448                   84648
Sikkim                                  16                            15                   3381
Tamil nadu                             530                        13831                   82129
Tripura                                  6                           253                    507
Uttar Pradesh                          587                        25667                   95564
Uttaranchal                            176                         2628                   39097
West Bengal                            663                        30698                  110956
total                                 8468                       288110                 1443947

                                                                                             Annual Report 2009-10


                                   Industrial Investment Proposals (Statewise)
                                          August 1991- December 2009
                                                                     INDUSTRIAL ENTREPRENEUR MEMORANDUM (IEMs)                           LOIs)+DIRECT INDUSTRIAL LICENCES(DILs)
      Name of the State/UTs                 total Invest- %age      Num-      %age    proposed      %age    proposed %age Num- %age                    pro-     %age     pro-   %age
                                             ment (Rs.              bers               Invest-                Emp.          bers                      posed             posed
                                               Crore)               Filed               ment                  (Nos)       granted                     Invest-           Emp.
                                                                                       (Rs.Cr)                                                         ment             (Nos)
      Andaman & Nicobar                             498     0.01        12     0.02          498     0.01        3081     0.02            0    0.00         0    0.00       0     0.00
      Andhra Pradesh                            513362      8.72     5875      7.35      498204      8.66    1141448      6.60          538   12.11    15158    11.61   97607   10.27
      Arunachal Pradesh                            1915     0.03        46     0.06        1914      0.03        7749     0.04            4    0.09         1    0.00     522     0.05
      Assam                                       22782     0.39       563     0.70       20347      0.35       79503     0.46           13    0.29     2435     1.86    4606     0.48
      Bihar                                       43043     0.73       327     0.41       41581      0.72       67708     0.39           33    0.74     1462     1.12   13674     1.44
      Chandigarh                                    742     0.01        46     0.06          733     0.01        8599     0.05            2    0.05         9    0.01     284     0.03
      Chhattisgarh                              760062     12.91     2511      3.14      759497     13.20     656785      3.80           31    0.70      565     0.43    3816     0.40
      dadra & nagar Haveli                        38149     0.65     2142      2.68       37831      0.66     244610      1.41           37    0.83      318     0.24    3994     0.42
      daman & diu                                 10718     0.18     1077      1.35       10618      0.18     122133      0.71           25    0.56      100     0.08    3605     0.38
      Delhi                                        7221     0.12       543     0.68        7191      0.12       53218     0.31           21    0.47        30    0.02    1652     0.17
      Goa                                         10960     0.19       694     0.87       10792      0.19       76255     0.44           37    0.83      168     0.13    3526     0.37
      Gujarat                                   748192     12.71     9369     11.72      724788     12.59    1741006     10.06          467   10.51    23404    17.92   75855     7.98
      Haryana                                     80696     1.37     4008      5.01       76315      1.33     633670      3.66          242    5.45     4381     3.35   64333     6.77
      Himachal Pradesh                            29228     0.50       907     1.13       28740      0.50     174545      1.01           35    0.79      488     0.37    6232     0.66
      Jammu & Kashmir                             13152     0.22       634     0.79       13076      0.23     115270      0.67            7    0.16        76    0.06    2074     0.22
      Jharkhand                                 389211      6.61       972     1.22      388737      6.75     369293      2.13           18    0.41      474     0.36    2368     0.25
      Karnataka                                 458960      7.80     3344      4.18      448398      7.79     786282      4.54          284    6.39    10562     8.09   76914     8.09
      Kerala                                      13667     0.23       618     0.77       10801      0.19     103493      0.60           76    1.71     2866     2.19   14918     1.57
      Lakshadweep                                      4    0.00         1     0.00            4     0.00         278     0.00            0    0.00         0    0.00       0     0.00
      Madhya Pradesh                            370995      6.30     3175      3.97      367721      6.39     807155      4.66          147    3.31     3274     2.51   31682     3.33
      Maharashtra                               567208      9.64    14411     18.03      548426      9.53    2670300     15.43          599   13.48    18782    14.38 139590    14.69
      Manipur                                         20    0.00         4     0.01           20     0.00         937     0.01            0    0.00         0    0.00       0     0.00
      Meghalaya                                   10338     0.18       275     0.34       10331      0.18       35500     0.21            3    0.07         7    0.01     207     0.02
      Mizoram                                          0    0.00         0     0.00            0     0.00            0    0.00            0    0.00         0    0.00       0     0.00
      nagaland                                    16325     0.28        15     0.02       16325      0.28     302337      1.75            1    0.02         0    0.00       0     0.00
      Orissa                                    728691     12.38     1434      1.79      723247     12.57     604373      3.49           37    0.83     5444     4.17   11882     1.25
      Puducherry                                  12197     0.21       733     0.92       10893      0.19       84385     0.49           19    0.43     1304     1.00    2894     0.30
      Punjab                                    100751      1.71     2980      3.73       92398      1.61     672894      3.89          266    5.99     8353     6.40   86078     9.06
      Rajasthan                                 105517      1.79     3286      4.11      103862      1.80     614733      3.55          101    2.27     1655     1.27   15680     1.65
      Sikkim                                       3188     0.05        76     0.10        3183      0.06       16117     0.09            1    0.02         5    0.00     204     0.02
      Tamil nadu                                275342      4.68     6805      8.51      261072      4.54    2087519     12.06          868   19.54    14270    10.93 151261    15.91
      Tripura                                      2436     0.04        38     0.05        2436      0.04        4741     0.03            0    0.00         0    0.00       0     0.00
      Uttar Pradesh                             201752      3.43     6657      8.33      191834      3.33    1779825     10.29          372    8.37     9918     7.59 102114    10.74
      Uttrakhand                                  52527     0.89     1818      2.27       51989      0.90     333635      1.93           33    0.74      538     0.41    8547     0.90
      West Bengal                               295687      5.02     4542      5.68      291532      5.07     904739      5.23          101    2.27     4155     3.18   20706     2.18
      Location in more than One State               406     0.01         0     0.00            0     0.00            0    0.00           25    0.56      406     0.31    3617     0.38
      total                                    5885942     99.99    79938 100.00       5755334 100.00 17304116 100.00              4443 100.00        130608 100.00 950442 100.00

      Note: Figures of 3 New States includes those units located in districts originally falling within the respective parent states.

 Department of Industrial Policy & Promotion


                       Industrial Investment Proposals (Sectorwise)
                               August 1991 - December 2009
Sch.Ind No. and Name             Total      %age     Numbers   %age     Proposed   %age    Proposed    %age    nos    %age     Pro-    %age      Pro-   %age
                              Investment              Filed              Invest-           Emp.(Nos)         granted          posed            posed
                               (Rs.Crore)                                 ment                                                Invest-           Emp.
                                                                         (Rs.Cr)                                               ment             (Nos)
01 Metallurgical Industries    1322010       22.46    13321     16.66   1319541    22.93    2899401    16.76    107    2.41     2469     1.89 16743      1.76
02 Fuels                        363159        6.17      556      0.70    335426     5.83     159647     0.92    143    3.22 27733       21.23 32445      3.41
03 Boilers&Steam Gen.             1063        0.02       24      0.03      1063     0.02       5976     0.03       0   0.00         0    0.00         0  0.00
04 Prime Movers                  37239        0.63     1402      1.75     37239     0.65     256856     1.48       0    0.00      0      0.00       0    0.00
05 Electrical Equpts           1703491       28.94     5443      6.81   1702795    29.59    1210841     7.00      92    2.07    696      0.53   25355    2.67
06 Telecommunications            43927        0.75     1420      1.78     43244     0.75     252913     1.46      49    1.10    683      0.52   14287    1.50
07 Transportation                84517        1.44     1217      1.52     78368     1.36     414751     2.40     100    2.25   6149      4.71   37622    3.96
08 Industrial Machinery          39209        0.67     1793      2.24     37094     0.64     226372     1.31      75    1.69   2115      1.62    9242    0.97
09 Machine Tools                  3086        0.05      232      0.29      2355     0.04      36738     0.21      31    0.70    731      0.56    4436    0.47
10 Agricultural machinery         5181        0.09      144      0.18      5129     0.09      31273     0.18       5    0.11     52      0.04    5191    0.55
11 Earth Moving Ma-               2114        0.04       87      0.11      2112     0.04      21415     0.12       1    0.02      2      0.00       0    0.00
12 Misc.Mechanical &              64871       1.10     2817      3.52     64483     1.12     330426     1.91      47    1.06     388     0.30    7783    0.82
13 Comm/Office/Hhold               6388       0.11      287      0.36      6328     0.11      54422     0.31      20    0.45      60     0.05   3100     0.33
14 Medical and Surgical            1088       0.02       92      0.12      1064     0.02      17177     0.10       3    0.07      24     0.02    418     0.04
15 Industrial Instruments           301       0.01       43      0.05       271     0.00       9592     0.06       6    0.14      30     0.02    1130    0.12
16 Scientific Instruments          4693       0.08      344      0.43      4693     0.08      66178     0.38       0    0.00       0     0.00       0    0.00
17 Math,Survey,Drawing              114       0.00        5      0.01       114     0.00       2006     0.01       0    0.00       0     0.00       0    0.00
18 Fertilizers                    29072       0.49      833      1.04     29072     0.51     116039     0.67       0    0.00       0     0.00       0    0.00
19 Chemicals(Except              481264       8.18     9456     11.83    444698     7.73    1273786     7.36     526   11.84   36566    28.00   73831    7.77
20 Photographic raw film/          1137       0.02      122      0.15      1136     0.02      10160     0.06       1    0.02       1     0.00      55    0.01
21 Dye Stuffs                      1486       0.03       78      0.10      1435     0.02       8049     0.05       5    0.11     51      0.04    1307    0.14
22 Drugs and Pharmaceu-           35553       0.60     2262      2.83     29722     0.52     236971     1.37     754   16.97   5831      4.46   70309    7.40
23 Textiles                      230073       3.91    10868     13.60    216709     3.77    3374310    19.50    1083   24.38   13364    10.23 254925    26.82
24 Paper and Pulp                 86951       1.48     2330      2.91     83573     1.45     509006     2.94      67    1.51    3378     2.59 27149      2.86
25 Sugar                         175042       2.97     2957      3.70    161575     2.81    1036678     5.99     414    9.32   13467    10.31 208614    21.95
26 Fermentation Industries        44024       0.75     1497      1.87     42753     0.74     173403     1.00     223    5.02    1271     0.97 32949      3.47
27 Food Processing                57246       0.97     3808      4.76     54930     0.95     950885     5.50      92    2.07    2316     1.77   7921     0.83
28 Vegetable Oil & Vanas-         31894       0.54     3023      3.78     31787     0.55     302431     1.75      22    0.50     107     0.08    2038    0.21
29 Soaps, Cosmetics and           11156       0.19      610      0.76     11022     0.19     112947     0.65      24    0.54     134     0.10    3524    0.37
30 Rubber Goods                   22779       0.39      824      1.03     22401     0.39     224029     1.29      31    0.70    378      0.29    6741    0.71
31 Leather                         5201       0.09      356      0.45      2277     0.04      65277     0.38     201    4.52   2924      2.24   48137    5.06
32 Glue and Gelatin                 919       0.02       80      0.10       919     0.02       8849     0.05       0    0.00      0      0.00       0    0.00
33 Glass                          16218       0.28      412      0.52     16139     0.28      79934     0.46       7    0.16     79      0.06    1046    0.11
34 Ceramics                       13857       0.24      626      0.78     13718     0.24     148507     0.86      18    0.41    139      0.11     977    0.10
35 Cement and Gypsum             371799       6.32     2039      2.55    370886     6.44     679928     3.93      38    0.86    913      0.70    7544    0.79
36 Timber Products                 3718       0.06      132      0.17      2745     0.05      29392     0.17      37    0.83    973      0.74    7343    0.77
37 defence Industries              5399       0.09        0      0.00         0     0.00          0     0.00     148    3.33   5399      4.13   25285    2.66
38 Misc.Industry                  10286       0.17      837      1.05      8101     0.14      76066     0.44      73    1.64   2185      1.67   12995    1.37
Others (Non-Scheduled            568417       9.66     7561      9.46    568417     9.88    1891485    10.93       0    0.00      0      0.00       0    0.00
total                          5885942      100.00    79938    100.00   5755334 100.00 17304116 100.00          4443 100.00 130608     100.00 950442 100.00

                                                                 Annual Report 2009-10


       Sector-Wise Break-Up of Foreign Technology Collaborations
        (Covering Both Automatic and Government Route) Since
                     August 1991 to October , 2009

      Name of the Sector                          No. of Approval by     No. of Approval by       total         Sectoral
                                                          RBI                 SIA+FIPB                         percentage
      Electrical Equipments (Including S/W &               811                     450            1261           15.6
      Industrial Machinery                                 623                     249             872           10.8
      Chemicals (Other than Fertilizers)                   451                     454             905           11.2
      Transport    Industries        (including            400                     356             756             9.4
      Miscellaneous Mechanical &                           267                     177             444             5.5
      Metallurgical Industries                             217                     161             378             4.7
      Fuels (including Power & Oil refineries)              56                     349             405             5.0
      Drugs and Pharmaceuticals                            197                      79             276             3.4
      Hotel & Tourism                                       42                     246             288             3.6
      Textiles                                              75                      95             170             2.1
      Food Processing Industries                            93                      73             166             2.0
      Telecommunications                                    52                      88             140             1.7
      Industrial instruments                                91                      30             121             1.5
      Miscellaneous and other industries                  1205                     693            1898           23.5
      total                                              4580*                    3500            8080            100
      * This does not include the foreign technology collaborations filed with the RBI under the automatic route from October,
        2004 onwards.

Department of Industrial Policy & Promotion


           Industrial Infrastructure Upgradation Scheme (IIUS)
                   Status of projects As on 31.12.2009
                                                                                                                       (Rs. in lakh)

Sl.             Name of the Project               Approved Cost   GOI Grant    Grant     Contribution of   Financial    Grant
No.                                                                           Released    SPV/FI/ State    progress    utilized

1.    Chemical Cluster, Ankleshwar (Gujarat)      15283.00          5000.00   4850.00       10999.41       15924.48    4850.00

2.    Textile Cluster, Tirupur (TN)               14300.00          5000.00   4950.00       10908.00       15691.00    4801.00

3.    Machine Tools Cluster, Bangalore (KTK)      13550.00          4912.00   4764.64        9085.00       14909.50    4764.64

4.    Auto Cluster, Pune (MS)                      5999.00          4499.00   4454.01        1520.00        5992.00    4454.01

5.    Chemical Cluster, Vapi (Gujarat)             5431.00          4049.00   3927.53        2645.78        6526.47    3927.53

6.    Pump, Motor and Foundry Cluster,             5530.00          3939.00   3899.61        1657.67        5557.28    3899.61

7.    Metallurgical Cluster, Jajpur (Orissa)       8060.00          4700.00   4559.00        3345.00        6681.27    5010.94

8.    Ispatbhoomi Cluster, Raipur                  5506.00          3176.00   3080.72        1905.00        4771.56    3079.00

9.    Leather Cluster, Ambur, (TN)                 6733.75          4393.54   4261.73        4482.81        9134.89    4261.73

10.   Textile Cluster, Ichalkaranji (MS)           6507.00          3270.00   3171.90        3028.46        5833.32    2963.08

11.   Auto Cluster, Pithampura (MP)                7329.00          4994.00   4581.31        2497.00        6407.00    4541.00

12.   Multi Industry Cluster, Haldia (WB)          5885.00          3597.00   3489.09        1693.83        4598.33    2904.50

13.   Foundry Cluster, Belguam (KTK)               2478.00          1858.00   1802.26          571.00       2349.00    1802.26

14.   Chemical Cluster, Ahmedabad (Gujarat)        7135.00          4139.00   4014.83        2708.04        6722.87    4014.83

15.   Pharma Cluster, Hyderabad (AP)               6616.00          4962.00   3308.00        1057.00        4110.33    3308.00

16.   Auto Cluster, Vijayawada (AP)                3067.00          2301.00   2231.97          564.00       2026.84    1560.00

17.   Marble Cluster, Kishangarh (Rajasthan)       3680.00          2760.00   2677.20        1512.00        3883.57    2677.20

18.   Textiles Cluster, Ludhiana (Punjab)          1719.00          1269.00   1230.93          589.10       1497.29    1200.00

19.   CPS Cluster, Madurai (TN)                    3996.00          2997.00   2907.09        1219.00        3214.41    2307.18

20.   Leather Cluster, Kanpur (UP)                 1646.00           975.00     650.00         329.43        691.31     650.00

21.   Rubber Cluster, Howrah (WB)                  2974.00          1571.75     524.00         454.00        909.00     524.00

22.   Gems & Jewellry Cluster, Surat. (Gujarat)    7300.00          5000.00   1670.00        1471.00        3131.00    1670.00

23.   Coir cluster, Alappuzha (Kerala)             5680.00          4260.00   2840.00          863.84       2282.44    1711.84

24.   Foundry Cluster, Howrah (WB)                12674.00          4040.00   1347.00        1743.76        1448.74     322.00

                                                                     Annual Report 2009-10

      Sl.             Name of the Project            Approved Cost   GOI Grant    Grant     Contribution of    Financial      Grant
      No.                                                                        Released    SPV/FI/ State     progress      utilized

      25.   Auto Cluster, Chennai (TN)                 4749.00         2774.00    2690.78        2614.05        4144.74      2690.78

      26.   Textile Cluster, Panipat                   5453.00         4090.00    1363.00           0.00           0.00          0.00

            Sanction withdrawn

            Sub-total (10th Plan projects)           169280.75        94526.29   79246.60      69464.18       138438.64     73895.13

      27.   Garment Cluster, Jabalpur (MP)             4392.82         3067.72    1022.57           ------          -----        0.00

      28.   Handloom Cluster, Chanderi (MP)            2780.45         2030.46     574.78         196.00         400.00       400.00

      29.   Engineering Cluster, Nashik (MS)           6726.20         4287.72    2858.48         924.10        3452.83      2191.51

      30.   Auto Cluster, Adityapur (Jharkhand)        6563.10         4779.00    1593.00           8.60          26.29        26.34

      31.   Pandurna Ind. Cluster, Chhindwara (MP)     6678.31         4307.00    1436.00           0.00           0.00          0.00

            Sub total (11th Plan Projects)            27140.88        18471.90    7484.83        1128.70        3879.12      2617.85

            GRAND TOTAL                              196421.63       112998.19   86731.43      70592.88       142317.76     76512.98

Department of Industrial Policy & Promotion


           Production Figures for Industries (2008-09 & 2009-10)
                                                                     2008-09                            2009-10
S.No.               Name of the         Accounting      No. of units        Actual         No. of units      Production
                     Industry              unit                           Production                         (Estimated)
     (1)                (2)                  (3)             (4)                (6)             (7)                (9)
I Cement Industry
1.          Cement Industry           Million Tonnes    146 large        187.42            156 large
                                                        plants +                           plants +         218.38
                                                        about 350                          about 350
                                                        mini cement                        mini cement
                                                        plants                             plants
II Ceramic Industry
     1.     Ceramic Tiles             Million. Sq.      16 + 200         332.90            16 + 200         390.00 Million
                                      Mtr.              SSI units        Million Sq.       SSI units        Sq. Mtr.
     2.     Potteryware               M.T               16 + 1200        66,324 MT         16 + 1400         75,000 MT
     3.     Sanitaryware              M.T.               7 + 200         3,99,514 MT        7 + 200         4,40,000 MT
III Electrical Components and Consumer Durables
     1      Refrigerators & air-      Rs.Lakh                        7         12064.15                 7          7570.17
            conditioning plants
     2      Cooling towers            Rs.Lakh                        2         54661.00                 2         31077.00
     3      Refrigerators             Th.Nos.                       14          7614.75                14          6822.13
     4      Cranes                    Tonnes                        13         22390.00                13         13735.00
     5      Lifts                     Numbers                        3          8697.00                 3          6442.00
     6      Power driven pumps        Th.Nos.                       44          1129.64                44          1370.62
     7      Air and gas               Numbers                       11         88990.00                11         77494.00
            compressor (IPP)
     8      Electric motors (IPP)     Lakh. H.P.                    24            134.49               24            112.67
     9      Electric fans all kinds   Lakh Nos                      12             76.73               12             70.02
     10     Power capacitors          KVAR                           6   12499787.00                    6    10410313.00
     11     ACSR/AA conductors        Tonnes                        12         17407.00                12         25083.00
     12     Winding wires             Tonnes                        11         30104.00                11         23465.00
     13     dry cells                 Mill.nos                      11          2146.57                11          1526.09
     14     G.L.S. lamps              Mill.nos                      15            427.39               15            330.70

                  lR;eso t;rs

            Government of India
Ministry of Commerce & Industry
 Department of Industrial Policy & Promotion
                                                        Annual Report 2009-10

                                                               2008-09                       2009-10
      S.No.   Name of the Industry Accounting unit   No. of units      Actual     No. of units     Production
                                                                     Production                   (Estimated)
       (1)              (2)               (3)            (4)             (6)          (7)              (9)
       15     Fluorescent tubes     Lakh Nos                 16         1975.03           16         1808.26
       16     Electrolytic          Mill.nos                  9          824.81            9           629.16
       17     Switchgear (circuit   Numbers                  31    17728849.00            31     13485801.00
       18     Protection system/    Rs.Thousand              16     5998807.00            16      4737363.00
              switch board/switch
              gear etc.
       19     Washinng/ laundry     Numbers                  14     2344542.00            14      2309944.00
              machines etc.
       20     Insulated cables/     Core Km.                 14     5702841.00            14      5423403.00
              wires all kinds
       21     Lighting, fitting &   Rs.Lakh                   1         4601.28            1         3450.96
       22     Electric motors       Numbers                  18     2944034.00            18      2166839.00
              phase one


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