Presentation - Make in India: Defence Manufacturing
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....resentation - Make in India: Defence Manufacturing <br>News and Press Release<br>Dated:- 22-7-2015<br><BR>Presentation - Make in India: Defence Manufacturing ============= Document 1 --- Slide 1 --- --- Slide 2 --- Indi a a s a n Investmen t Destination 10 U N C T AD ’ s W o r l d I n v e s tm e n t R e p o r t , 2 0 1 4 R an k e d 4 th a m o n g t h e T o p - pr i o r i t y H o s t E c o n om i e s J ap a n B a n k f o r I nt e r n a t io na l Coo p e r a t io n : 2 0 1 3 S u r v e y R an k e d 2 n d M o s t P r om i s i n g C o un t r y f o r O v e r s e a s B u s in e s s O p er a t i on s i n M e di u m T e r m R an k e d T o p I n v e stm e n t De st i n a t i o n i n Lo n g T e r m De loi t te ’ s G l o b a l M a nu fa....
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.... c t uri n g C om p e t i t i v e n e s s I n d e x, 2 0 1 3 R an k e d 4 th i n C u r r e n t C o m p e t i ti v en e s s R an k e d 2 n d i n C o m p e t i ti v en e s s i n f i v e y e a rs E r n s t & Y o u n g ’ s A t t ra c t i v e n e s s S u r v e y , 2 0 1 4 (I n d i a ) C o n t in ue s a s on e o f th e T o p G l o b a l De st i n a t i o n f o r F D I --- Slide 3 --- 11 --- Slide 4 --- DEFENCE MANUFACTURING 12 --- Slide 5 --- India has the world’s 8th largest annual Defence Budget Allocation of about 1.8% of its Gross Domestic Product (GDP) towards defence spending, of which 40% is allocated to capital acquisitions . Huge opportunity in Capital procurement by Armed Forces and Homeland Security during next 7 years....
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.... ( >US $ 200 Bn ) Presently about 70% of its defence requirements are met through imports. 13 Facts & Figures --- Slide 6 --- The Indian aerospace and defence market is among the most attractive globally and the Government is keen to leverage this in order to promote Defence Manufacturing O pportunities to avail defence offset obligations for technology up-gradation Preference to `Buy (Indian)’ and `Buy and Make (Indian)’ over `Buy (Global)’ and `Buy and Make (Global)’ to attract foreign investment & indigenization of latest technology Promote India as a Manufacturing hub WIN-WIN FORMULA FOR IMPORT SUBSTITUTION & EXPORT PROMOTION 14 Opportunities under Make in India: Defence Manufacturing --- Slide 7 --- FDI in....
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.... Defence Sector raised from 26% to 49 % Above 49% FDI, with the approval of Cabinet Committee on Security (CCS) in case of induction of modern and ‘state-of-art’ technology Portfolio investments upto 24% under automatic route* Condition of ownership of 51% shareholding by single largest Indian shareholder removed* 15 Foreign Direct Policy --- Slide 8 --- Defence items are covered under compulsory licensing under the Industries (Development & Regulation) Act, 1951. Almost 60% items delicensed . Applications for Industrial License are accepted online (24X7) at eBiz website – www.ebiz.gov.in Waiting period of Industrial License brought down from 7 years to 6 months 16 Industrial Licensing Policy --- Slide 9 --- Procedure ....
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....for grant of Industrial License (IL)has been streamlined: Initial validity period of Industrial License increased from 2 to 7 years, extendable to 10 years . Partial commencement of production is treated as commencement of production of all the items included in the license. Investor friendly Frequently Asked Questions (FAQs) placed on DIPP website. Restriction of annual capacity in the Industrial License for Defence Sector has been removed. Procedure for sale of Defence items to Govt. Agencies liberalised Process cleared for issue of IL for manufacture of Unmanned Aerial Vehicle (UAV) for defence use 17 Initiatives for Eas e O f D oin g B usiness --- Slide 10 --- Defence IL is not a pre-requisite for becoming an Indian Offset Partner The ....
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....MRO activities in Defence sector are treated as Services and don’t require IL Level playing field for Private Manufactures in Defence Sector with Defence PSUs and Ordinance Factory Board by withdrawing excise and custom duty exemption available to Ordinance Factory Board and Defence PSUs. Relaxation in Offset guidelines. Easing of ecosystem for promotion of Defence Exports . 18 Initiatives for Promotion of Defense Manufacturing --- Slide 11 --- --- Table --- Larsen & Toubro Ltd. Warships, Sub-marines, Weapon Platforms, High speed boats & crafts, weapon launchers - Ship & Airborne Platform Based Bharat Heavy Electricals Ltd. Propulsion system for ships, sub-marines, Patrol research vessels ABG Shipyard Naval warship, sub-marines, und....
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....erwater vessels, naval support ships Bharati Shipyards Warships, Frigates, Sub-marines & Patrol boats Larsen & Toubro Ltd. Warships, Sub-marines, Weapon Platforms, High speed boats & crafts, weapon launchers - Ship & Airborne Platform Based Bharat Heavy Electricals Ltd. Propulsion system for ships, sub-marines, Patrol research vessels ABG Shipyard Naval warship, sub-marines, underwater vessels, naval support ships Bharati Shipyards Warships, Frigates, Sub-marines & Patrol boats 19 Major Industrial Licenses Issued in Naval Armament Sector --- Slide 12 --- Make in India: Defence Manufacturing Shubhra Singh Joint Secretary Department of Industrial Policy and Promotion Ministry of Commerce and Industry --- Slide 13 --- --- Table --- Alpha Des....
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....ign Technologies Naval radars Shoft Shipyard Warship & Naval vessels Titagarh Wagons Naval Warships & other naval vessels HBL Power Systems Ltd. Control & Monitoring System for Ships and Sub-marines Pipavav Naval Vessels, Under water systems, Naval electronic warfare systems 20 Alpha Design Technologies Naval radars Shoft Shipyard Warship & Naval vessels Titagarh Wagons Naval Warships & other naval vessels HBL Power Systems Ltd. Control & Monitoring System for Ships and Sub-marines Pipavav Naval Vessels, Under water systems, Naval electronic warfare systems --- Slide 14 --- --- Table --- Parameters Karnataka Maharashtra Telangana Mega Projects Mega: Project cost > 250 cr =250, Ultra Mega: Project Cost>500 Cr =500, Super Mega: Project Cost....
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....>1,000 Cr and Jobs>=1,000 Mega: Area A &B, Fixed Capital>=750 cr or >=1,500 jobs, Area C, Fixed Capital>=500 cr or >=1,000 jobs, Area D & D+ Fixed Capital>=250 cr or >=500 jobs, Backward areas, Fixed Capital>=100 cr or >=250 jobs, Ultra Mega: Fixed Capital>=1,500 cr or >=3000 jobs Mega: Capital Investment>= 200 Cr or >1,000 jobs Incentives: Special Package Yes Yes Yes Project Cost Land, Building, P&M, pre operative expenses and working capital margin Land, Building, P&M, Cost of development, Installation, technical know how etc) Capital Investment Land Rebate Not Specified Only a note No Yes VAT refund No Yes Yes Electricity Duty Exemption Yes Yes Yes Capital Subsidy Yes (Only for anchor units) No No Interest Subsidy Yes No No Stamp Duty Ex....
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....emption Yes Yes Yes Reimbursement of CST Yes No Yes Parameters Karnataka Maharashtra Telangana Mega Projects Mega: Project cost > 250 cr =250, Ultra Mega: Project Cost>500 Cr =500, Super Mega: Project Cost>1,000 Cr and Jobs>=1,000 Mega: Area A &B, Fixed Capital>=750 cr or >=1,500 jobs, Area C, Fixed Capital>=500 cr or >=1,000 jobs, Area D & D+ Fixed Capital>=250 cr or >=500 jobs, Backward areas, Fixed Capital>=100 cr or >=250 jobs, Ultra Mega: Fixed Capital>=1,500 cr or >=3000 jobs Mega: Capital Investment>= 200 Cr or >1,000 jobs Incentives: Special Package Yes Yes Yes Project Cost Land, Building, P&M, pre operative expenses and working capital margin Land, Building, P&M, Cost of development, Installation, technical know how etc) Capital In....
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....vestment Land Rebate Not Specified Only a note No Yes VAT refund No Yes Yes Electricity Duty Exemption Yes Yes Yes Capital Subsidy Yes (Only for anchor units) No No Interest Subsidy Yes No No Stamp Duty Exemption Yes Yes Yes Reimbursement of CST Yes No Yes 21 Package of Incentives by the State --- Slide 15 --- --- Table --- Parameters Madhya Pardesh Rajasthan Gujarat Mega Projects Mega: Investment>100 Crore Mega: Investment>500 Cr or Jobs>500 Mega: Investment>=1,000 cr and Jobs >=2,000 Incentives: Special Package Yes Yes Yes Project Cost Plant & Machinery & Building Land, Building, P&M, technical know how. 30% limit on land Land, Plant & Machinery, Building Other Incentives Labour Intensive Industries Scheme Incentives: Land Rebate Yes N....
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....o No VAT refund Yes Yes Yes Electricity Duty Exemption Yes Yes No Capital Subsidy Yes (Transfer Subsidy) No No Interest Subsidy No No Yes Stamp Duty Exemption No Yes No Reimbursement of CST Yes Yes No Parameters Madhya Pardesh Rajasthan Gujarat Mega Projects Mega: Investment>100 Crore Mega: Investment>500 Cr or Jobs>500 Mega: Investment>=1,000 cr and Jobs >=2,000 Incentives: Special Package Yes Yes Yes Project Cost Plant & Machinery & Building Land, Building, P&M, technical know how. 30% limit on land Land, Plant & Machinery, Building Other Incentives   Labour Intensive Industries Scheme Incentives:    Land Rebate Yes No No VAT refund Yes Yes Yes Electricity Duty Exemption Yes Yes No Capital Subsidy Yes (Transfer Subsidy....
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....) No No Interest Subsidy No No Yes Stamp Duty Exemption No Yes No Reimbursement of CST Yes Yes No 22 Package of Incentives by the State --- Slide 16 --- --- Table --- Parameters Haryana Tamil Nadu Andhra Pradesh Mega Projects Mega: Investment>100 cr or jobs >500 Mega: A: Investment 500-1,500 and Jobs: 300 in 3 years, B: Investment 350-100 and 200 jobs in 3 years C: Investment 200-500 and Jobs 100 in 4 years, Super Mega A: A: 1,500-3,000 and jobs 400 in 5 years B: 1,000-2,000 and Jobs 300 in 5 years, C: 500-1,500 and Jobs: 250 in 5 Years, Super Mega B: A: 3,000-5,000 and Jobs 600 in 6 years: B: 2,000-4,000 and Jobs: 500 in 6 years C: 1,500-3,000 and Jobs: 350 in 6 years, Ultra Mega: A: > 5,000 and Jobs 700 in 7 years, B: > 4,000 and Jobs 60....
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....0 in 7 years, C: >3,000 and Jobs 500 in 7 years Anchor Units: Investment>200 Cr and Order>=50 Cr, Mega: Investment>500 Cr or >2,000 Jobs Incentives: Special Package Yes Yes Yes Project Cost Plant & Machinery Building, Plant & Machinery Investment Land Rebate No No (Souther District Yes) No VAT refund Yes No Yes Electricity Duty Exemption Yes (Backword regions 2012 & 2013 policy) Yes Yes Capital Subsidy No No Yes Interest Subsidy Yes (Backword regions 2012 & 2013 policy) Yes No Stamp Duty Exemption No Yes Yes Reimbursement of CST No No Yes Parameters Haryana Tamil Nadu Andhra Pradesh Mega Projects Mega: Investment>100 cr or jobs >500 Mega: A: Investment 500-1,500 and Jobs: 300 in 3 years, B: Investment 350-100 and 200 jobs in 3 years C: Inve....
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....stment 200-500 and Jobs 100 in 4 years, Super Mega A: A: 1,500-3,000 and jobs 400 in 5 years B: 1,000-2,000 and Jobs 300 in 5 years, C: 500-1,500 and Jobs: 250 in 5 Years, Super Mega B: A: 3,000-5,000 and Jobs 600 in 6 years: B: 2,000-4,000 and Jobs: 500 in 6 years C: 1,500-3,000 and Jobs: 350 in 6 years, Ultra Mega: A: > 5,000 and Jobs 700 in 7 years, B: > 4,000 and Jobs 600 in 7 years, C: >3,000 and Jobs 500 in 7 years Anchor Units: Investment>200 Cr and Order>=50 Cr, Mega: Investment>500 Cr or >2,000 Jobs Incentives: Special Package Yes Yes Yes Project Cost Plant & Machinery Building, Plant & Machinery Investment Land Rebate No No (Souther District Yes) No VAT refund Yes No Yes Electricity Duty Exemption Yes (Backword regions 2012 & 2013....
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.... policy) Yes Yes Capital Subsidy No No Yes Interest Subsidy Yes (Backword regions 2012 & 2013 policy) Yes No Stamp Duty Exemption No Yes Yes Reimbursement of CST No No Yes 23 Package of Incentives by the State --- Slide 17 --- 24 Thank You --- Slide 18 --- Mak e i n Indi a I nitiative 3 P il l ar s o f a n ew r e su r g e n t I n d i a N ew P r o c e s s e s N ew R & D N ew D e s i gn N ew M i n d s e t N ew I nf ra s t r u c t u re N ew I n n o v a t io n N ew S e c t o r s --- Slide 19 --- Eas e O f D oin g B usiness 4 M a k e I n d i a t h e e a s i e s t a n d s i mpl e s t p la c e t o d o b u s in e s s E limi n at e p a p e r w o r k , pr o c e s s es , pr o c e d u res , r u l e s & a c t s U s e t e c h n o lo g y t o l e a p f ....
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....r o g Converge & integrate departments --- Slide 20 --- Lis t o f 1 4 service s Liv e o n eBi z portal 5 I s s u e o f I n d u s t r i a l E n t r ep r en e u r M e m o r a n d u m I s s u e o f I n d u s t r i a l L i c en s e I s s u e o f E mp l o y e r R e g is t r a t i o n b y E mp l o y e e s S t at e In s u r a n c e C o r p o r a t i o n N a m e A v a il a b i li t y D ir e c t o r I d e n t if i c a t i o n N u m b e r C e r t if i c at e o f I n c o rp o r a t i o n C om m e n c eme n t o f B u s in e s s I s s u e o f P e r m ane n t A cc o un t N u m b e r ( P A N ) I s s u e o f T a x D e du c t i o n A cc o un t N u m b e r ( T A N ) --- Slide 21 --- A d v a n c e d F o re i g n R emi t t a n c e ( A F R ) F o re i g n C o ....
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....ll a b o r a t i o n - G en er a l P e r m i s si o n R o u t e ( F C - G P R ) E mp l o y e r R e g i s t r a t i o n I s s u e o f E x p l o s i v e L i c en s e I m p o r t e r E x p o r t e r C o d e L i c en s e 6 --- Slide 22 --- Eas e o f D oin g B usiness 7 N o minim u m c a p i t a l . N o c om m o n s e a l . N o de c l a r a t i o n o f c om m e n c eme n t o f b u s in e s s O nlin e & r e a l - t i m e r e g is t r a t i o n wi t h E S I C & E P F O , P A N & T A N C o m b in e d r e t u r n s u n d e r 8 l a b o u r l a w s D o c u me n t s f o r e x p o r t s a n d i m p o r t s r e du c e d f r o m 1 1 t o 3 . --- Slide 23 --- Makin g Indi a part o f th e Globa l Suppl y Chain R a i l w a y s – 1 0 0 % C on s t r u ....
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....c t i o n – 1 0 0 % M e d i c a l d e v i c e s – 1 0 0 % D ef e n c e – 4 9 % c a n g o up t o 1 0 0 % i n c a s e o f mo d e r n i z a t i o n a n d s t at e o f a r t t e c h n o lo g y In s u r a n c e & p en si o n f n d s – 4 9 % I n d i a t o d a y i s on e o f t h e m o s t o p e n e c o n om i e s o f t h e w o r l d! 8 --- Slide 24 --- Industria l Corridors<BR> News - Press release - PIB....
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