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Annual Report 2019-20
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....nnual Report 2019-20 <br>News and Press Release<br>Dated:- 11-3-2020<br><BR>Annual Report 2019-20 ============= Document 107856 3A129 2901 9890 6786 RS 23 29169 16909 EF6 FE EF67F 78507870 867E Annual Report 2019-20 110 011 101 10 503450 3 2.B B 20180187 BO CD45DE5CD4BD BC484BC 34B23AB23BC3A9 2078F677075 EFED D45CD4C 14 34829 6:F0785 67E 10 100 A 5 D5 0000 CD4 0890180 8F 5DE5CD4 323B 7F67 CD4BO सतà¥à¤¯à¤®à¥‡à¤µ जयते Department for Promotion of Industry & Internal Trade Ministry of Commerce & Industry Government of India Annual Report 2019-20 सतà¥à¤¯à¤®à¥‡à¤µ जयते Government of India Ministry of Commerce and Industry Department for Promotion of Industry & Internal Trade CONTENTS S.No. Chapter Page 1. Role and Functions 1 2. Industrial Promotion 19 3. Regulatory Reforms- Creating Ease for Doing Business 28 4. Startup India 36 5. Protection of Intellectual Property Rights 45 6. United Nations Industrial Development Organisation (UNIDO) 58 7. Industrial Corridors 68 8. India International Convention & Expo Centre (IICC), Dwarka 74 9. Schemes for Regional Development 76 10. Specific Industri....
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....es and their Development 86 11. Investment Promotion & International Cooperation 111 12. Administration of the Boilers Act, 1923 117 13. Attached & Subordinate Offices and other Organisations 120 14. Representation of SCS/STS/OBCs/Ex-servicemen and PwD in Services 163 15. Women's Welfare Activities 164 16. Implementation of Official Language Policy 165 17. Vigilance Matters 168 18. Citizen's Charter 169 19. Right to Information 173 Appendices I-X 175 AKIC APO ASSOCHAM BIRAC BMEC BRAP CBIC CEDA CGPDTM CII List of Abbreviations Amritsar Kolkata Industrial Corridor Asian Productivity Organization Associated Chambers of Commerce & Industry Biotechnology Industry Research Assistance Council Bengaluru Mumbai Economic Corridor Business Reform Action Plan Chennai Bangaluru Industrial Corridor Centre of Excellence for Date Analysis Controller General of Patents, Designs and Trade Marks Confederation of Indian Industry Cell for IPR Promotion and Management Central Institute of Plastics Engineering and Technology Central Pulp & Paper Research Institute Central Vigilance Commission Doing Business Ranking CIPAM CIPET CPPRI CVC DBR DMIC Delhi Mumbai Industrial Corridor DMRC DPIIT ECEC Delhi Metr....
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....o Rail Corporation Department for Promotion of Industry & Internal Trade East Coast Economic Corridor EoDB Ease of Doing Business EPF FDI FEMA FFS FICCI FIPB Employees Provident Fund Foreign Direct Investment Foreign Exchange Management Act Fund for Startup Federation of Indian chambers of Commerce & Industry Foreign Investment Promotion Board GeM GI GII GIR GoS GST IDC IDEX IDS IEM IICC IIP IIS IIT IIUS IP IPAB IPR IPRS IRMRA ΙΤΡΟ LANIDS LOI MDI MeitY MHRD MII Government e-Marketplace Geographical Indications Global Innovation Index Geographical Indications Registry Group of Secretaries Goods and Services Tax India Design Council Innovations for Defence Excellence Industrial Development Scheme Industrial Entrepreneurs Memorandum India International Convention & Expo Centre Index of Industrial Production Industrial Information System Indian Institute of Technology Industrial Infrastructure Upgradation Scheme Intellectual Property Intellectual Property Appellate Board Intellectual Property Rights Industrial Park Rating System Indian Rubber Manufactures Research Association International Trade Promotion Organization Lakshadweep and Andaman & Nicobar Island Industrial Dev....
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....el- opment Scheme Letter of Intent Medical Device Industry Ministry of Electronics & Information & Technology Ministry of Human Resource Development Make in India MIIUS MSME NABCB NABET NABH NABL NASSCOM NBQL NCCBM NEIDS NEIIPP NER NHAI NIC NID NIEI NIT NPC NPMC NSO OL PFA PIS PMG PMIC PPP Modified Industrial Infrastructure Upgradation Scheme Micro, Small and Medium Enterprises National Accreditation Board for Certification Bodies National Accreditation Board for Education and Training National Accreditation Board for Hospital and Healthcare Pro- viders National Accreditation Board for Testing and Calibration Labora- tories National Association of Software and Services Companies National Board for Quality Promotion National Council for Cement and Building Material North East Industrial Development Scheme North East Industrial and Investment Promotion Policy North Eastern Region National Highway Authority of India National Informatics Centre National Institute of Design National Internet Exchange of India National Institute of Technology National Productivity Council National Plan for Manufacturing Clusters National Statistical Office Official Language Preferential Market Access Pat....
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....ent Information system Project Monitoring Group Project Monitoring-Invest India Cell Public Private Partnership QCI RGNIIPM SAARC SCO SCO SIDBI SNZ SOP TISC TMR TRIPS UNIDO UT WIPO WPI Quality Council of India Rajiv Gandhi National Institute of Intellectual Property Manage- ment South Asian Association of Regional Cooperation Salt Commissioner Office Shanghai Cooperation Organization Small Industries Development Bank of India Special Notified Zone Standard Operating Procedure Technology and Innovation Support Centre Trade Marks Registry Trade Related Aspects of Intellectual Property Rights United Nations Industrial Development Organization Union Territory World Intellectual Property Organization Wholesale Price Index Role and Functions 1 Chapter 1.1 Introduction 1.1.1 The Department for Promotion of Industry and Internal Trade (DPIIT) was established in the year 1995 and was reconstituted in the year 2000. Earlier, separate Ministries of Small Scale Industries & Agro and Rural Industries (SI & A& RI) and Heavy Industries and Public Enterprises (HI&PE) were created in October, 1999. The department was earlier called Department of Industrial Policy & Promotion; and was renamed as DPI....
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....IT in January, 2019. 1.1.2 In 2018, matters related to e-commerce were transferred to the Department and in 2019, the Department has been given charge for matters related to Internal Trade, welfare of traders and their employees and Startups. The role of DPIIT is to promote accelerate Industrial Development of the Country by facilitating investment in new and upcoming technology, foreign direct investment and support balanced development of Industries. 1.2 Allocation of Business to the Department 1.2.1 According to the Allocation of Business (AOB) Rules, as updated, the Department is responsible for determining the Industrial Policy at Central Government level, including the following matters: (i) Productivity in Indian industry (ii) Industrial management 1 (iii) Matters related to e-Commerce and start- ups (iv) Facilitating Ease of Doing Business (EODB) (v) Promotion of internal trade including retail trade, Welfare of traders and their employees, and (vi) Administration of Industries (Development and Regulation) Act, 1951, grant of Industrial Licenses (IL) and acknowledging Industrial Entrepreneurs Memorandum (IEM) 1.2.2 The Department handles matters related to Protection of Int....
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....ellectual Property Rights (IPR) and administers six Acts related to IPR The Department also handles matters related to Foreign Direct Investment (FDI) and investment by NRIs, and undertakes promotion of investment for industrial development of the country. There are five territorial divisions for international cooperation and industrial promotion handling matters emanating from Americas, Europe, CIS countries, Africa and Middle East, and Asia and Oceania. 1.2.3 The Department is responsible for promotion and development of sectors related to cables, Light Engineering Industries, Light Industries, Light Electrical Engineering Industries, Paper and Newsprint, Tyres and Tubes, Salt, Cement, Ceramics, Tiles and Glass, Leather Goods Soaps and detergents and Industries not covered by other Ministries/ Departments. Role and Functions Role and Functions 1.2.4 The following legislations administered by the Department: (i) The Industries (Development Regulation) Act, 1951 (ii) The Explosives Act, 1884 are and (iii) The Inflammable Substances Act, 1952 (iv) The Boilers Act, 1923 (v) The Copyright Act, 1957 (vi) The Patents Act, 1970 (vii) The Design Act, 2000 (viii) The Geographical Indicatio....
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....ns of Goods (Registration and Protection) Act, 1999 (ix) The Trade Marks Act, 1999 (x) The National Institute of Design Act, 2014. 1.3 Organization of DPIIT 1.3.1 The Organization chart of the Department for Promotion of Industry & Internal Trade (DPIIT) is at Appendix-I, while a list of the attached and subordinate offices and other organizations under the Department is at Appendix-II. 1.4 Make in India (MII) 1.4.1 Make in India initiative was launched on 25th September, 2014 along with action plans for 25 sectors with the objective of facilitating investment, fostering innovation, building best in class manufacturing infrastructure, making it easy to do business and enhancing skill development. The initiative is further aimed at creating a conducive environment for investment, modern and efficient infrastructure, opening up new sectors for foreign investment and forging a partnership between government and industry through positive mindset. 1.4.2 Make in India initiative has made significant achievements and has been 2 reviewed now, focusing on 27 sectors under Make in India 2.0. Department for Promotion of Industry and Internal Trade is coordinating action plans for 15 manufactu....
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....ring sectors, while Department of Commerce is coordinating action plan for 12 service sectors. 1.4.3 DPIIT is making continuous efforts for Investment Facilitation including utilizing the services of Invest India and implementation of 'Make in India' action plans to identify potential investors. Support is being provided to Indian Missions abroad and State Governments for organizing events, summits, road-shows and other promotional activities to attract investment in the country under the Make in India banner. Investment Outreach activities are being carried out for enhancing International co-operation for promoting FDI and to improve Ease of Doing Business in the country. 1.5 1.5.1 Project Monitoring Group (PMG), was set up in Cabinet Secretariat in 2013 and has recently been merged with DPIIT w.e.f. 14.02.2019, with Invest India providing implementation support in its functioning. It is an institutional mechanism for resolving of issues and bottlenecks and fast tracking the setting up and commissioning of large infrastructure projects in Public and Private sectors. Project Monitoring Group (PMG) 1.5.2 Any investor facing delays or bottlenecks in the execution of a project with an....
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.... estimated value of Rs.500 crore and above can raise them on the PMG portal, which in turn takes them up with the concerned authorities in the Central or State Governments, until the issues are decided. 1.5.3 Since its inception, PMG has received more than 4000 issues in respect of 1067 projects and has thus unlocked anticipated investment of approx. 32.00 lakh crore. Of these, 340 project have been partly/fully commissioned with actual flow of investment amounting to Rs.11.66 lakh crore approx till 13.1.2020, while 236 projects worth Rs.8.50 lakh crore were under construction. Invest India 1.6 1.6.1 Invest India has been set up as a Joint Venture (Not for Profit) Company between Department for Promotion of Industry and Internal Trade, Federation of Indian Chambers of Commerce & Industry (FICCI), CII, NASSCOM and various State Governments. Invest India is the National Investment Promotion and Facilitation Agency of India and acts as the first point of reference for investors in India. Invest India is transforming the country's investment climate by simplifying the business environment for investors. Its experts, specializing across different countries, Indian states and sectors, ha....
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....ndhold investors through their investment lifecycle - from pre- investment to after-care. Invest India provides multiple forms of support such as market entry strategies, deep dive industry analysis, partner search and location assessment policy advocacy with decision makers. 1.7 1.7.1 Public Procurement The Public procurement (Preference to Make in India ) order 2017 (PPP-MII Order) had been issued on 15th June, 2017 pursuant to Rule 15.3(iii) of the General Financial Rules, 2017 as an enabling provision to promote domestic value addition in public procurement. 1.7.2 This Order is applicable for procurement of goods, services and works (including turnkey works ) by a Central Ministry/ Department, their attached/subordinate offices, autonomous bodies controlled by the Government of India and Government companies as defined in the Companies Act. 1.7.3 Under the PPP-MII Order, a Standing Committee, headed by Secretary, DPIIT has been constituted to review the implementation of order. A Public procurement Cell has been created in the Department to monitor the grievances received for violation of PPP- MII order. 19 Nodal Departments have been designated for notifying minimum local cont....
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....ent for the relevant product. 1.8 1.8.1 In order to improve the business environment in the country, DPIIT has taken up a series of measures to simplify and rationalize the regulatory processes (registration and inspection processes) and introduce 'information technology' as enabler to make governance more efficient. Ease of Doing Business (EODB) 1.8.2 India ranks 63rd in the World Bank's annual Doing Business Report (DBR) 2020 as against 77th rank in the DBR 2019 registering a jump of 14 ranks. The DBR ranks countries on the basis of Distance to Frontier, an absolute score that measures the gap between India and the global best practice on 10 specified indicators. India's absolute score improved from 67.32 in DBR 2019 to 71.00 in DBR 2020. The ease of doing business index is meant to measure regulations directly affecting business and a nation's rank is based on the average of 10 indicators viz. starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across border, enforcing contracts and resolving insolvency. 1.8.3 States too have been brought on board in the process to....
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.... expand the coverage of these efforts. DPIIT has been closely working with the state Governments and Union Territory (UT) Administrations to help them identify the constraints in doing business and improving the overall business environment. DPIIT launched an online portal to track implementation of reforms in a real-time basis. The same is available of www.eodb.dipp.gov. in. 3 Role and Functions Role and Functions 1.8.4 The assessment of under state reform Action Plans have been successfully completed for the year 2015, 2016 and 2017-2018. The ranking can be accessed on www.eodb.dipp.gov.in. The assignment of states and UTs under state reform action plan 2019 is underway. 1.8.5 DPIIT has also prepared a 218 point District Reforms Plan and shared with States and UTs for implementation of reforms by all the districts. States and UTs will conduct the feedback exercise in Districts on the basis of a questionnaire. 1.9 Start-up India 1.9.1 Startup India is a flagship initiative of the Government of India, intended to catalyse startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. The Startup India Action Plan was launched on 16th Januar....
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....y, 2016 with the objective of supporting entrepreneurs, building a robust startup ecosystem, and transforming India into a country of job creators instead of job seekers. Department for Promotion of Industry and Internal Trade (DPIIT) acts as the nodal Department for coordinating the efforts of all central government departments and state governments in carrying this plan forward. 1.10 Foreign Direct Investment (FDI) Policy 1.10.1 The Department for Promotion of Industry and Internal Trade is the Nodal Department for formulation of policy of the Government on Foreign Direct Investment (FDI). It is also responsible for maintenance and management of data on inward FDI into India, based upon the remittances reported by the Reserve Bank of India. With a view to attracting higher levels of FDI, Government has put in place a liberal policy on FDI, under which FDI, up to 100%, is permitted, under 4 the automatic route, in most sectors/activities. Significant changes have been made in the FDI policy regime in recent times, to ensure that India remains an increasingly attractive investment destination. The Department plays an active role in the liberalization and rationalization of the FDI ....
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....policy. Towards this end, it has been constructively engaged in extensive stakeholder consultations on various aspects of the FDI Policy. 1.10.2 Further, after abolition of the erstwhile Foreign Investment Promotion Board (FIPB), process for granting FDI approvals has been simplified wherein the work relating to processing of applications for FDI and approval of the Government thereon under the extant FDI Policy and FEMA, is now handled by the concerned Ministries/Departments. However, Department for Promotion of Industry and Internal Trade (DPIIT) is a single point interface of the Government to facilitate investors for Foreign Direct Investment through approval route. In this regard, a new portal (http:// www.fifp.gov.in) has been created, which is administered by this Department and the portal will continue to facilitate the single window clearance of applications which are through approval route. DPIIT is the Nodal Department for approvals in case of Multi Brand Retail Trading, Food, Product Retail, Trading, Non-Resident Indian/Export oriented Units investments. Cases pertaining to issue of shares against capital goods/machinery/pre- operative and pre-incorporation expenses are....
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.... also processed by DPIIT. 1.11 1.11.1 National IPR Policy The National IPR Policy, approved on 12th May, 2016 lays the roadmap for intellectual property in India. The Policy recognizes the abundance of creative and innovative energies that flow in India, and the need to tap into and channelize these energies towards a better and brighter future for all. The National IPR Policy is a vision document that aims to create and exploit synergies between all forms of intellectual property (IP), concerned statutes and agencies. It sets in place an institutional mechanism for implementation, monitoring and review. It aims to incorporate and adapt global best practices to the Indian scenario. This policy shall weave in the strengths of the Government, research and development organizations, educational institutions, corporate entities including MSMEs, start-ups and other stakeholders in creation of an innovation-conducive environment, which stimulates creativity and innovation across sectors, as also facilitates a stable, transparent and service-oriented IPR administration in the country. 1.11.2 The policy recognizes that India has a well established TRIPS- compliant legislative administrativ....
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....e and judicial framework to safeguard IPRs, which meets its international obligations while utilizing the flexibilities provided in the international regime to address its developmental concerns. It reiterates India's commitment to the Doha Development Agenda and the TRIPS agreement. 1.11.3 The Policy lays down the following objectives: (i) IPR Awareness: Outreach and Promotion to create public awareness about the economic, social and cultural benefits of IPRs among all sections of society. (ii) Generation of IPRS: To stimulate the generation of IPRs. (iii) Legal and Legislative Framework: To have strong and effective IPR laws, which balance the interests of rights owners with larger public interest. (iv) Administration and Management: To modernize and strengthen the enforcement and adjudicatory mechanisms for combating IPR infringements. (v) Human Capital Development: to strengthen and expand human resources, institutions and capacities for teaching, training, research and skill building in IPRs 1.11.4 These objectives are sought to be achieved through detailed action points. The action by different Ministries/Departments shall be monitored by DPIIT, which shall be the nodal depar....
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....tment to coordinate, guide and oversee implementation and future development of IPRs in India. The National Intellectual Property Rights (IPR) Policy will endeavor for a “Creative India; Innovative India". 1.12 National Design Policy 1.12.1 The National Design Policy was approved by the Government on 8th February, 2007, which inter-alia, includes: (i) Promotion of Indian design through a well-defined and managed regulatory, promotional and institutional framework. (ii) Setting up of specialized Design Centres of "Innovation Hubs" for sectors such as automobiles and transportation, jewelry, leather, soft goods, digital products, toys and games, which will provide common facilities and enabling tools like rapid product development, high performance visualization, etc. along with enterprise incubation as well as financial support through mechanisms like venture funding, loans and market development assistance for start-up design-led ventures and young designers' design firms/houses. (iii) Formulation of schemes for setting up Design Centres/Innovation Hubs selected locations/industrial clusters/ backward states, particularly in the North east; in (iv) Laying special focus on up ....
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....gradation 5 Role and Functions of existing design institutes and faculty resources to international standards, particularly the National Institute of Design (NID) and its new campuses/ centres with a view to spreading quality education in design to all regions of India. (vi) Encouraging " of (v) Initiation of action to seek “Deemed University†or “ University†under section 3(f) of the University Grants Commission Act, status for NIDs, so that they can award degrees or ‘B. Des.' and 'M. Des.' instead of just diplomas as at present. establishment Departments of design in all the Indian Institutes of Technology (IITs) and all the National Institutes of Technologies (NITs) as well as in prestigious private sector colleges of Engineering and Architectures. (vii) Preparation of a mechanism for recognizing and awarding industry achievers in creating a brand image for India design through award of India Design Mark on designs which satisfy key design criteria like originality, innovation, ergonomic features, safety and Eco- friendliness. (viii) Facilitating the establishment of a Chartered Society for designers (on the lines of institutions of engineers, the ....
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....institution of Architects., the Medical Council, the Bar Council, etc.), to govern the registration of Design Professionals and various matters relating to standards setting in the profession. (ix) Setting up an Indian Design Council (IDC) with eminent personalities drawn from different walks of life. 1.12.2 The Design Clinic Scheme project being implemented by NID across the country is intended to improve the manufacturing competency of the MSMEs through design intervention to their products and services and to provide them design edge in the global market and hence supports the Make in India programme of the Government of India. 1.13 Industrial Park Rating System (IPRS) 1.13.1 To further enrich the industrial information system, DPIIT has developed Industrial Park Rating System (IPRS). The Department has released a pilot phase report on "Industrial Park Rating system" enhancing industrial competitiveness at a National Workshop held on 19th November, 2018 in New Delhi. The pilot phase of Industrial Park Rating System (IPRS) considered nominations received from States/UTS and analyzed information/responses received to bring a view on quality and adequacy of industrial infrastructur....
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....e from Indian perspective. Nominated parks needed to have minimum 25% occupancy. 1.13.2 A total number of 202 Industrial Park nominations were received from 22 States/ UTs. 177 parks out of the 202 nominated parks were considered for assessment. Response in respect of 25 parks nominated by States was incomplete. 177 industrial parks were assessed across 34 parameters under four pillars contributing to development of industrial ecosystem viz., Internal Infrastructure and Utilities, External Infrastructure and Connectivity, Business Support Services & Facilities, Environment & Safety Management. 1.13.3 The Industrial Park Rating System is expected to evolve to deliver the following objectives: (i) (ii) Provide information to prospective tenants and compare parks on various choices of identified parameters Enhance competitiveness of industrial parks and help identify areas of intervention Role and Functions 00 6 (iii) Recognize best practices and promote competitive spirit among park developers and operators (iv) Identify requisite policy support to be delivered by state/central government for driving competitiveness of the ecosystem. 1.13.4 Going forward, Industrial Park Rating Syst....
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....em (IPRS) is proposed to be translated into an annual exercise with wider coverage of industrial parks assessment across parameters relating to the development of industrial ecosystem. The parameters will be updated on an annual basis to address ongoing investor expectation trends and to bring in deeper qualitative assessment feedback including technological advancement in order to develop Industrial Park Rating System as a tool that enables demand driven interventions both by policy makers and investors effectively. of 1.14 IPR (Negotiation and Cooperation) 1.14.1 Department for Promotion Industry and Internal Trade (DPIIT) is the nodal department for administration of various laws related to Intellectual Property Rights in the country such as Patents, Trade Marks, Industrial Designs, Geographical Indications of Goods, Copyrights, and Semiconductor Integrated Circuits Layout Designs. Being nodal Department for IPR related matters, DPIIT has been vetting number of MoUs / MoCs / MoAs/ Cabinet Notes/NDAs etc. entered into by various Ministries/ Departments of Government of India from IPR angle. The negotiations on IPR Chapter under various International Trade Agreements are also done....
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.... by DPIIT. Besides, DPIITis also the nodal department for matters related to World Intellectual Property Organization (WIPO). 1.14.2 The office of the Controller General of Patents, Designs and trademarks (CGPDTM), a subordinate Office under DPIIT, carries out statutory functions related to grant of Patents and registration of Trademarks, Designs and 7 Geographical Indications. The registration of copyrights is administered by the Registrar of Copyright Office, working under the CGPDTM. It functions out of offices situated in Delhi, Kolkata, Mumbai, Chennai and Ahmadabad, while the Central IP Training Academy is at Nagpur. 1.14.3 The CGPDTM supervises the functioning of the following IP offices: (i) The Patent Offices (including the Design Wing) at Chennai, Delhi, Kolkata & Mumbai. (ii) The Patent Information System (PIS) and Rajiv Gandhi National Institute of Intellectual Property Management (RGNIIPM) at Nagpur. (iii) The Trade marks Registry at Ahmadabad, Chennai, Delhi, Kolkata & Mumbai. (iv) The Geographical Indications Registry (GIR) at Chennai. (v) The Copyright Office at Delhi. (vi) The Semiconductor Integrated Circuits Layout-Design Registry at Delhi. 1.14.4 Intellectual Pr....
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....operty Appellate Board (IPAB): Intellectual Property Appellate Board (IPAB) has been established in the year 2003, under Section 84 of the Trade Marks Act, 1999. The Board hears appeals against the decision of Controller of Patents (under the Patents Act, 1970), and Registrar of Trade Marks (under the Trade Marks Act, 1999) and Geographical Indication cases (under the Geographical Indication & Protection Act, 1999). The Copyright Board and Plant Varieties Protection Appellate Tribunal function under the ambit of IPAB in accordance with their respective Acts and Rules. 1.14.5 Presently, IPAB has its Headquarters at Chennai and conducts its Circuit Bench sittings periodically at Ahmedabad, Delhi, Kolkata and Mumbai. Role and Functions Role and Functions 1.15 1.15.1 Cell for IPR Promotion and Management (CIPAM) In pursuance of the National IPR Policy 2016, a specialized professional body/ Cell for IPR Promotion and Management (CIPAM), was created under the aegis of DPIIT, which has been instrumental in taking forward the objectives and visions of the Policy. Since the adoption of the Policy, CIPAM has worked towards changing the IP landscape of the country, which inter-alia includes: ....
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....(i) IPR Awareness Programs are conducted in over 200 academic institutions for industry, police customs and judiciary. (ii) To reach out to rural areas, awareness programs are being conducted using satellite communication (EduSat). In one such programme, 46 rural schools with over 2700 students were reached. Over 300 schools and more than 12,000 students have been reached. (iii) More focus is being given to develop e-content and disseminate content through online channels. (iv) Content on IPRs has been included in the (v) NCERT curriculum of commerce stream. Work is ongoing to include IPRs in other academic streams too. Competitions have been launched in conjunction with industry for school and college students for developing mobile apps, vides and online games. Competition has been launched in conjunction with industry for school and college students for developing mobile apps, videos and online games. (vi) India's first IP Mascot-"IP Nani" - has been launched. A series of animated videos on Intellectual Property Rights for school students have been launched in collaboration with European Union Intellectual Property office (EUIPO). 8 1.16 1.16.1 DPIIT is the nodal department for t....
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....he promotion of productivity and quality in the industrial sector. The National Productivity Council (NPC) represents India in the Tokyo based Asian Productivity Organization (APO), of which the Government of India is a founder member and implements APO programmes/ activities relating to India. NPC undertakes productivity augmentation through domain specific consultancy, training, workshops, seminars and conferences for Government, Public and Private sectors, Productivity related research, Monitoring & Evaluation of various government schemes & projects and information dissemination through collaboration with APO. Productivity and Quality 1.16.2 The Quality Council of India (QCI), another important organization under this Department, promotes adoption of quality. standards relating to Quality Management Systems (ISO 9001 Series), Environment Management Systems (ISO 14001 Series), Food Safety Management Systems (ISO 22000 Series), Product certification and inspection bodies through the accreditation services provided by National Accreditation Board for Certification Bodies (NABCB). Besides NABCB, there are four other boards viz. National Accreditation Board for Education & Training ....
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....(NABET); National Accreditation Board for Hospitals and Healthcare Providers (NABH); National Accreditation Board for Testing and Calibration Laboratories (NABL); and National Board for Quality Promotion (NBQP), which provide accreditation certification on education, health and quality promotion respectively. 1.17 1.17.1 Nations Industrial Organization United Development (UNIDO) Activities DPIIT is the nodal Department for all matters related to UNIDO operations in India. UNIDO is a specialized agency of the United Nations for industrial activities within the United Nation's system. India has been an active member of the organization since its inception. UNIDO has established its presence in India by means of following centres/offices with different mandates viz. (i) UNIDO Regional Office (URO) which is headed by UNIDO Representative (UR to India and Asian region and (ii) International Centre for Inclusive and Sustainable Industrial Development (IC- ISID), New Delhi 1.17.2 The URO, set up in New Delhi or 1st January 2000, covers seven countries India, Bangladesh, Sri Lanka, Nepal, Bhutan, Maldives and Afghanistan and acts as a focal point to mobilize knowledge, information and tech....
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....nology for the region. 1.17.3 UNIDO and DPIIT have worked on the preparation of the UNIDO Country Programming Framework 2018-2022. It is foreseen to continue and expand the ongoing work in regards to competitive and resilient MSMEs and climate, environment and resource solutions, complemented with new results areas in regard to inclusive value chains and responsible business and strategy for industrial transformation. These areas support the aims and objectives of the 2017 Industry Policy discussion paper of DPIIT and are aligned with the United Nations Sustainable Development Framework, agreed upon for 2018-2022 between the United Nations in India and the Government of India, through NITI Aayog. 1.17.4 DPIIT has established a new centre, IC-ISID (International Centre for Inclusive and Sustainable Industrial Development) in collaboration with UNIDO after successful completion of UCSSIC and ICAMT. The centre started its operation from 1st May 2015. The IC-ISID echoes the theme of UNIDO's post- 2015 development agenda i.e. Inclusive and Sustainable Industrial Development which aims to bring the best practices and new & improved manufacturing technology to Indian Industry and share In....
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....dia's experience in cluster based development within the framework of South-South Cooperation. DPIIT has undertaken 4 core projects under IC-ISID related to Leather, Pulp & Paper, Cement and Bicycle Sector. Out of these the Cement and Leather projects have been completed. The Bicycle project, which started w.e.f. 01.01.2017, has been operationally closed on 30.11.2019. The Pulp & Paper project, which started w.e.f. 01.08.2019, is still ongoing and is likely to be completed by 31.07.2022. 1.18 Industrial Development of North Eastern Region (NER) 1.18.1 To promote industrialization in North Eastern Region, the Government of India has notified North East Industrial Development Scheme (NEIDS) - 2017 for the States of North East Region including Sikkim effective from 01.04.2017 to 31.03.2022. The incentives under the scheme include- (i) Central Capital Investment Incentive for Access to Credit (CCIIAC) (ii) Central Interest Subsidy (CIS) (iii) Central Comprehensive Insurance Incentive (CCII) (iv) Goods and Services Tax (GST) Reimbursement (v) Income Tax (IT) Reimbursement (vi) Transport Incentive (TI) and (vii) Employment Incentive (EI). 1.18.2 Under the erstwhile scheme, North East Ind....
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....ustrial and Investment Promotion Policy (NEIIPP), 2007 scheme which ended on 31st March, 2017, a total no. of 27,644 industrial units, were set up. These generated employment for 2,28,224 people and attracted an investment of Rs.11,466.22 crore in NER states up to 31.03.2017. Since inception of 6 Role and Functions the scheme, a sum of Rs.2,749.04 crore has been released to the States of NER. In the FY 2019-20 (upto 31.12.2019) Rs.326.33 crore has been released under the scheme. 1.18.3 The Freight Subsidy Scheme, effective from 22nd January, 2013, is also applicable to the NER States including Sikkim for a period of 5 years. The Scheme has been discontinued, with effect from 22.11.2016. However, Industrial units registered under the scheme prior to discontinuation would be eligible for the benefits of the scheme. Since inception of the scheme, a total of Rs.5,312.54 crore (approx.) has been released to the State/ UTS. 1.19 Industrial Development of Lakshadweep and Andaman & Nicobar Island 1.19.1 Anewscheme, namely: Lakshadweep and Andaman & Nicobar Island Industrial Development Scheme (LANIDS), 2018, has been notified for the Union Territories of Lakshadweep and Andaman & Nicobar I....
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....slands and will remain effective from 01.04.2018 to 31.3.2020. The incentives provided under the scheme are (i) Central Capital Investment Incentive for Access to Credit (CCIIAC) (ii) Central Interest Subsidy (CII) (iii) Central Comprehensive Insurance Incentive (CCII) (iv) Goods and Services Tax(GST) reimbursement (v) Income Tax (IT) reimbursement (vi) Transport Incentive (TI) and (vii) Employment Incentive(EI). 1.19.2. This Scheme is being administered by the Ministry of Home Affairs. 1.20 1.20.1 Programmes for Industrial Infrastructure Development- Modified Industrial Infrastructure Up-gradation Scheme (MIIUS) Industrial Infrastructure Upgradation Scheme (IIUS) was launched in 2003 with the objective of enhancing industrial competitiveness of domestic industry by providing quality infrastructure through public private partnership in selected functional clusters/locations, which have the potential to become globally competitive. 37 projects have been approved in the 10th and 11th Five Year Plan under IIUS and these projects have been provided a central assistance of *1429.25 crore (up to 31.12.2019) out of sanctioned central grant of Rs.1455.64 crore. 1.20.2 'Modified Industrial ....
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....Infrastructure Up-gradation Scheme (MIIUS)' was notified in July 2013. Under MIIUS, projects have been undertaken to upgrade infrastructure in existing Industrial Parks/ Estates, Areas. Greenfield projects have also been undertaken in backward areas and North Eastern Region (NER). Projects are being implemented by the State Implementing Agency (SIA) of the State Government. Central Grant up to 50% of the project cost with a ceiling of Rs.50.00 crore is provided with at least 25% contributions of State Implementing Agency (SIA) and in case of North Eastern States, the central grant and minimum contribution of the SIA are up to 80% and 10% respectively. Under this scheme, 20 projects with central grant of *354.91 crore are under implementation, of which 5 projects have been completed. Central assistance of *329.58 crore (as on 31.12.2019) has been provided to 20 projects under MIIUS. MIIUS scheme was valid till 31.03.2017 and no new projects are being taken up under this scheme. In the year 2019-20, Rs.11.12 crores (as on 31.12.2019) has been disbursed against Revised Estimate (RE) of 18.00 crore. Industrial Corridors 1.21 1.21.1 Government of India is developing Industrial Corridors....
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.... with the objective of fast- tracking growth and facilitates development of a well- planned and resource - efficient Role and Functions 10 industrial base served by world-class sustainable connectivity infrastructure, bringing significant benefits in terms of innovation, manufacturing, job creation and resource security to the nation. DMIC Project is the first Industrial Corridor which is being implemented in the country. For coordinated and unified development of industrial corridor projects, Government of India on 7th December 2016, approved expansion of the scope of existing DMIC Project Implementation Trust Fund (PITF) and re-designated it as National Industrial Corridor Development and Implementation Trust (NICDIT). for 1.21.2 Presently, following 5 Industrial Corridors have been undertaken development: 1) Delhi Mumbai Industrial Corridor (DMIC); 2) Chennai Bengaluru Industrial Corridor (CBIC) with extension to Kochi via Coimbatore; 3) Amritsar Kolkata Industrial Corridor (AKIC); 4) East Coast Economic Corridor(ECEC) with Vizag- Chennai Industrial Corridor (VCIC) Project as part of phase- I. Bengaluru Mumbai Industrial Corridor (BMIC). 5) 1.21.3 The Delhi Mumbai Industrial Cor....
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....ridor (DMIC): This project was launched with the cooperation of Government of Japan. The project is being developed on either side, along the alignment of the 1,504 km long Western Dedicated Freight Corridor (WDFC) between Dadri (UP) and Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai, broadly aimed to develop futuristic industrial cities in India which can compete with the best manufacturing and investment destinations in the world and converging next generation technologies across different sectors thereby creating employment opportunities and economic growth leading to overall socio- economic development. The project covers six States namely Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra. Mumbai Industrial 1.21.4 Delhi Corridor Development Corporation Ltd. (DMICDC) was incorporated in January, 2008 for development, coordination and implementation of the project. The company has an equity stake of 26% by Government of Japan and remaining by Government of India and public financial institutions like HUDCO, ||FCL, LIC. The project has been planned for implementation in phases. Perspective planning for the entire DMIC corridor has been completed. Subseque....
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....ntly master planning and preliminary engineering of the nodes/ cities identified as part of phase-l in the states of Gujarat, Maharashtra, Madhya Pradesh and Uttar Pradesh has also been completed. 1.21.5 The Delhi Mumbai Industrial Corridor (DMIC) Project has made considerable progress in the recent time as Node/City level/ project SPVs have been incorporated and land allotment process have been initiated at the following four locations where construction activities are nearing completion. 1) 2) Ahmedabad Dholera Special Investment Region in Gujarat (22.5 sq. kms activation area). Shendra-Bidkin Industrial Area in Maharashtra (18.55 sq. kms activation area). 3) Integrated Industrial Township Project at Greater Noida in Uttar Pradesh (747.5 acres). 4) Integrated Industrial Township Project 'Vikram Udyogpuri' near Ujjain in Madhya Pradesh (1100 acres). 1.21.6 Hon'ble Prime Minister has dedicated Shendra Industrial Area (under DMIC) to the 11 Role and Functions Nation. 67 plots have been allotted in all the above four(4) nodes. Some of the prominent investors include HAIER (123.7 acres), HYOSUNG (100 acres), AMUL (12 acres) and TATA Chemicals (126 acres). Four major industries have al....
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....ready started production in Shendra. 1.21.7 Apart from the above city/node level projects, following standalone projects are also being implemented as part of phase-1 development of DMIC Project: (i) Multi Modal Logistic Hubs at Dadri, Uttar Pradesh and Nangal Chaudhary, Distt.- Mahendragarh, Haryana. (ii) Multi Modal Logistic Hubs at Sanand, Gujarat. (iii) Multi Modal Transport Hub (MMTH) at Boraki in Greater Noida. (iv) Dighi Port Industrial Area in Maharashtra. 1.21.8 Chennai Bengaluru Industrial Corridor (CBIC) Project: The Chennai Bengaluru Industrial Corridor proposes to address infrastructure bottlenecks through a holistic approach while benefiting from the inherent strengths and competitiveness of each of the CBIC states. The perspective plan has been completed for the overall CBIC region and three priority nodes have been identified for further development. These are Krishnapatnam (Andhra Pradesh), Ponneri (Tamil Nadu) and Tumakuru (Karnataka). 1.21.9 For Krishnapatnam node in Andhra Pradesh and Tumakuru node in Karnataka, the project SPVs have been incorporated between NICDIT and respective State Govt(s). Further, the detailed master planning and preliminary engineering f....
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....or both the nodes have been finalized. Process for obtaining approval of Cabinet Committee on Economic Affairs (CCEA) in respect of Krishnapatnam and Tumakuru is under process. 1.21.10 Amritsar Kolkata Industrial Corridor (AKIC) Project: In order to give a boost to industrial development in the densely populated states of Northern and Eastern India, the Government has commenced project development activities on creating Amritsar Kolkata Industrial Corridor (AKIC). This is proposed to be structured around the Eastern Dedicated Freight Corridor (EDFC) as the backbone. The AKIC will cover seven states namely Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal. 1.21.11 The Perspective Plan for the overall AKIC region has been completed and seven Integrated Manufacturing Clusters (IMCs) sites, one in each AKIC State(s) namely: Gamhariya (Bihar), Rajpura-Patiala (Punjab), Saha (Haryana), Prag-Khurpia Farms (Uttarakhand), Bhaupur (Uttar Pradesh), Barhi (Jharkhand) and Raghunathpur (West Bengal) have been identified. Detailed master planning and preliminary engineering for IMC site in West Bengal is underway. Finalization of Shareholder's Agreement (SHA) and State....
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.... Support Agreement (SSA) for Raghunathpur with Government of West Bengal and the Land acquisition along with Shareholder's Agreement (SHA) and State Support Agreement (SSA) for Prag-Khurpia Farms with Government of Uttarakhand is under process. 1.21.12 East Coast Economic Corridor (ECEC) with Vizag Chennai Industrial Corridor (VCIC) Project as part of phase-l: East Coast Economic Corridor (ECEC) is India's first coastal corridor with Visakhapatnam- Chennai Industrial Corridor (VCIC) as phase-1 of the project. VCIC is aligned with the Golden Quadrilateral and is poised to play a critical role in driving India's Act East Policy. For VCIC, Conceptual Development Plan (CDP) has been prepared by Asian Development Bank (ADB) and Visakhapatnam, Machilipatnam, Donakonda and Chittoor have been identified for development. Master planning of two prioritized Role and Functions 12 nodes by the State i.e. Vishakhapatnam and Chittoor have been completed. Industrial 1.21.13 Bengaluru Mumbai Corridor (BMIC) Project: The Bengaluru Mumbai Industrial Corridor (BMIC) is envisioned to facilitate development of a well- planned and resource-efficient industrial base to the two states. Perspective Plan has....
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.... been completed. Dharwad node in Karnataka has been identified as the priority node for further developments. 1.21.14 India International Convention & Expo Centre (IICC), Dwarka): 1.21.14.1 The Government of India has approved development of India International Convention and Expo Centre (IICC) in Sector-25, Dwarka, New Delhi & allied infrastructure in PPP and non-PPP Mode (including Exhibition & Convention spaces, arena, trunk-infrastructure, Metro/NHAI connectivity, hotels, office and retails spaces etc.) at an estimated cost of $25,703 crore by the year 2025. The Government has further approved incorporation of a new Government company as a Special Purpose Vehicle (SPV) for the implementation and development of IICC, Dwarka project with 100% equity from Government through DPIIT. A Special Purpose Vehicle for development of the project i.e. India International Convention and Exhibition Centre Limited (IICC Ltd), a 100 % owned and controlled Company by Government of India represented through DPIIT has been incorporated on 19.12.2017. 1.21.14.2 Phase-1 of the project comprising trunk infrastructure along with Exhibition- cum Convention Centre will be implemented and planned to be c....
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....ommissioned by 2020-21. These will be implemented as non- PPP component. EPC Contractor for Phase-I development and Operator for Exhibition and Convention Centre have been appointed. Phase-2 of the Project comprising of the remaining Exhibition Area will be implemented by 2025. The PPP components comprising hotels, retail and offices will be implemented by the PPP developers. Hon'ble Prime Minister laid the foundation stone of this project on September 20, 2018. The operator for Exhibition and Convention Centre has been appointed. 1.21.14.3 A MoU has been signed with Delhi Metro Rail Corporation (DMRC) for extension of Airport Express line to IICC Project. The construction work of metro connectivity by DMRC is in progress and Tunneling works under Exhibition Hall - 3 was completed by DMRC and handed over to L&T for further construction works. IDBI Capital Markets & Securities Limited has been appointed as Financial Advisor to assist IICC in raising loan for the project. LoA has been issued to SBI on 31st January 2019 for providing a term loan amounting to Rs.2150.16 crore with the approval of Board of IICC. National Council for Cement & Building Material (NCCBM) has been appointed ....
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....as Third-Party Quality Assurance Agency (TPQA). 1.21.14.4 A MoU was signed with BSES Rajdhani Power Ltd (BRPL) for Bulk power supply to IICC Dwarka. Payment amounting to 40 Cr as first installment has been released on 15.01.2019 to BRPL for execution of this work. The work of feeder cable laying up to IICC plot by BSES and procurement of GIS substation has been completed. An amount of 92.39 crore has been transferred from IICC to NHAI for onward payment to DDA for transfer of 18.66 acres of land for external road connectivity to IICC being developed by NHAI. Further, an amount of 87.50 Cr has been paid to NHAI for this construction works. NHAI has awarded LoA to J. Kumar Infra projects Limited for Package-II of development of Dwarka Expressway (which includes road connectivity to IICC Complex). DDA has permitted IICC Ltd. to plant trees & maintain as Public Park in 34 Ha of land in the green belt adjoining IICC site (South Side). 13 Role and Functions Role and Functions 1.22 Special Package for Industrial (iii) Central Interest Incentive (CII) (Only for Development in Himalayan States 2017 (IDS-2017) 1.22.1 Earlier Scheme (Special Package I&II): Department of Industrial Policy & Pr....
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....omotion (DIPP) had introduced various concessions for the UT of Jammu & Kashmir, UT of Laddakh, namely, J&K package-l from June, 2002 to 14th June, 2012 and J&K package- II, from 15th June, 2012 to 14th June, 2017 to boost up industrialization. For the States of Himachal Pradesh and Uttarakhand, various concessions were introduced by the DIPP for a period of ten year from 7.1.2003 to 6.1.2013. Thereafter revised scheme namely Package-II was effect from 07.03.2013 to 31.03.2017. Industrial 1.22.2 Progress made during the current year: A total amount of 131.75 Cr. got released during the current year 2019-20. Rs.79.70 crore to 492 industrial units (UT of J & K and UT of Laddakh), 31.01 crore to 133 industrial units (Himachal Pradesh) and 21.04 crore to 107 industrial units (Uttarakhand). 1.22.3 Current Scheme: Development Scheme (IDS) 2017 for UT of J&K, UT of Laddakh and States of Himachal Pradesh & Uttarakhand: To boost up industrialization in the Himalayan States, DPIIT have launched new Industrial Development Scheme (IDS) for UT of J&K, UT of Laddakh w.e.f. 15.06.2017 up to 31.03.2020 and IDS for Himachal Pradesh and Uttarakhand w.e.f. 01.04.2017 to 31.03.2022. For the UT of J&K ....
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....and UT of Laddakh extension of scheme beyond 31.03.2020 will be considered after evaluation of the scheme. The Scheme includes the following incentives: (i) Central Capital Investment Incentive for access to credit (CCIIAC) (ii) Central Comprehensive Incentive (CCII) Insurance 14 J&K) 1.22.4 Additional Benefits for J&K: The Government of India has extended the following additional benefits for the State of J&K (now UT of J&K and UT of Laddakh). vide notification 2(2)/2018-SPS dated 01.01.2019 with effect from 15.06.2017. 1) 2) GST reimbursement Income Tax Reimbursement 3) Transport incentive 4) Employment Incentive 1.22.5 Progress made: The following progress has been made during 2019: a) b) 1.23 An online portal developed for registration of new Industrial units under the Scheme. 499 (Union Territory of J&K-87, Union Territory of Laddakh- 3, HP- 256 and Uttarakhand-153) industrial units have already been registered by Empowered Committee. Scheme of Budgetary Support to the eligible units located in the UT of J&K, UT of Laddkh, States of Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim under GST Regime. 1.23.1 Pursuant to the decision of the Cabinet Committee....
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.... on Economic Affairs to pay financial support to the industrial units that are already availing excise duty exemptions Department for Promotion of Industry and Internal Trade (DPIIT) has notified a scheme of Budgetary Support to the eligible units located in the then State of Jammu & Kashmir (now UT of J&K and UT of Laddakh), States of Uttarakhand, Himachal Pradesh and North Eastern States including Sikkim under Goods and Service Tax Regime on 05.10.2017. It will remain in force from 01.07.2017 till 30.06.2027. 1.23.2 The Scheme is offered as a measure of goodwill to continue committed liability for the residual period out of a total of 10 years. Under this new Scheme, budgetary support to the extent of Central Government's share in the CGST collected from the industrial units is to be provided. Under the Scheme 2192 units have so far applied for registration. The Budget Estimate for F.Y. 2019-20 for the scheme is *1700/- crore. In the F.Y. 2019-20, DPIIT authorized CBIC 1700/- crore to refund to the industrial units. Till 24.01.2020, a sum of *1697.63 crore has been disbursed by CBIC to eligible registered units under the Scheme. 1.23.3 As per Scheme guidelines, one time inspectio....
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....n of units is to be conducted. To carry out this huge task, 95 teams have been formed by DPIIT comprising of representatives from sectoral Ministries, CGST authorities and State authorities. 1.24 National Plan for Manufacturing Clusters (NPMCs) on 1.24.1 The Group of Secretaries Commerce and Industry formed by the Government in September 2016 recommended that NITI Aayog may coordinate and develop a comprehensive National Plan for Manufacturing Clusters in collaboration with the respective Ministries and States. 1.24.2 The objective of the National Plan is to bring about convergence in the multiple models of development of industrial clusters by the Central Government and State Governments so as to affect better cost efficiency and optimal utilization of resources. 1.24.3 In accordance with recommendations of the Groups of Secretaries, the Department for Promotion of Industry & Internal Trade has developed Industrial Information (URL: www.ncog.gov.in/IIS), in the 15 coordination with National e-Governance Division, Ministry of Electronics & Information Technology (MeiTY) and Bhaskaracharya Institute for Space Applications and Geo- Informatics (BISAG) to assimilate information of ind....
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....ustrial infrastructure across the country. The Beta Version of IIS was made open to public on 15th May 2017. 1.24.4 Information on the said portal has been entered and is periodically updated by Central Government, Ministries, Departments and State Governments. IIS provides GIS enabled database of industrial areas including clusters, parks, nodes, zones etc. across the country. The portal also serves as a Decision Support System for effective planning and industrial investment. A GIS layer regarding agricultural and horticultural raw material availability has also been added. The GIS mapping features help identify presence of industrial clusters like light engineering, heavy machinery manufacturing, automobile and allied parts manufacturing, textiles, food processing, electronics, etc.; their distances from key logistic points, incentive schemes offered to strengthen the existing framework. 1.24.5 Over the period, the IIS web portal has evolved and presently, nearly 3355 parks/ clusters covering about 4.75 lakh hectare land have been mapped on the system. A series of video conferences were conducted in this regard for stakeholder consultations. Workshops and hands-on training sessi....
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....ons were organized by DPIIT in the respective States to facilitate smooth data entry and transfer of knowledge. 1.24.6 IIS is an open web portal that can benefit multiple stakeholders including various government stakeholders, industrial park developers, industries and investors by providing updated information regarding the land available in different industrial parks, their potential, their occupancy, incentives Role and Functions available therein. In other words, there will be complete transparency, accountability and system to put an end to the problem of information asymmetry. 1.25 Specific Industries Administered by DPIIT 1.25.1 The Department monitors industrial growth and production in general and in select industrial sectors such as leather, cement, paper and pulp, tyre and rubber, light electrical industries, consumer goods, durables, light machine tools, light industrial machinery, light engineering industries etc. as indicated in the allocation of Business Rules, 1961. consumer Leather & 1.25.2 Indian Footwear, Accessories Development Programme (IFLADP) is a Central Sector Scheme approved for implementation during 2017-18 to 2019- 20 with total outlay of *2600/- crore.....
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.... The scheme aims at development of infrastructure for the leather sector, address environment concerns specific to the leather sector, facilitate additional investments, employment generation and increase in production. 1.26 Investment Promotion International Cooperation and 1.26.1 The Department plays an active role in investment promotion and facilitation through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. International Co-operation for industrial partnerships is solicited through both bilateral and multilateral arrangements. It also coordinates with apex industry associations like Federation of Indian Chambers of Commerce and Industry (FICCI). Confederation of Indian Industry (CII), the Associated Chambers of Commerce and Industry (ASSOCHAM), etc; in their activities relating to promotion of industrial cooperation, both through bilateral and multilateral initiatives intended to stimulate the inflow of foreign direct investment into India. 1.27 Monitoring of Industrial Activity, Production and Prices 1.27.1 DPIIT monitors the performance of the i....
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....ndustrial sector by collating information from Industrial Entrepreneurs' Memorandum (IEM), Industrial License, Letter of Intent (LOI), Foreign Investment data and Industrial production returns. The Department also compiles and prepares Index of production of 8 core infrastructure industries on a monthly basis. Besides, the Department publishes the monthly Wholesale Price Index (WPI) which forms the basis for official information on inflation. 1.28 National Medical Devices Promotion Council 1.28.1 The Medical Devices Industry (MDI) plays a critical role in the healthcare ecosystem and is indispensable to achieve the goal of health for all citizens of the country. A National Medical Devices Promotion Council has been setup in December, 2018. As Indian manufacturing companies and startups move towards creating innovative products, the setting-up of the Council will spur domestic manufacturing in this sector. 1.28.2 The Council is headed by Secretary, DPIIT. Apart from the concerned departments of Government of India, it will also have representatives from health care industry and quality control institutions. Andhra Pradesh MedTech Zone, Visakhapatnam, will provide technical support t....
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....o the Council. The National Medical Devices Promotion Council will have the following objectives and activities: (i) Act as a facilitating and promotion & Role and Functions 16 developmental body for the Indian MDI. (ii) Hold periodic seminars, workshops and all related networking activities to garner views of the industry and understand best global practices in the sector and deliberate on various parameters for inclusion in the industrial and trade policies in medical devices. (iii) Identify redundant processes and render technical assistance to the agencies and departments concerned to simplify the approval processes involved in medical device industry promotion & development. (iv) Enable entry of emerging interventions and support certifications for manufacturers to reach levels of global trade norms and lead India to an export driven market in the sector. (v) Support dissemination and documentation of international norms and standards for medical devices, by capturing the best practices in the global market and facilitate domestic manufacturers to rise to international level of understanding of regulatory and non-regulatory needs of the industry. (vi) Drive a robust and dynami....
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....c Preferential Market Access (PMA) policy, by identifying the strengths of the Indian manufacturers and discouraging unfair trade practices in imports; while ensuring pro-active monitoring of public procurement notices across India to ensure compliance with PMA guidelines of DPIIT and Department of Posts (DOP). (vii) Undertake validation of Limited Liability partnerships (LLPs) and other such entities within MDI sector, which add value to the industry strength in manufacturing to gain foot hold for new entrants. (viii) Make recommendations to government 1.29 based on industry feedback and global practices on policy and process interventions to strengthen the medical technology sector, including trade interventions for related markets. E-Commerce 1.29.1 Department for Promotion of Industry and Internal Trade (DPIIT) is responsible for matters related to E-Commerce, including formulation of e-commerce policy, conduct and follow the recommendations of the Standing Group of Secretaries (GoS) on e-commerce, stakeholder interactions, inter-departmental coordination on cross cutting aspects of e-commerce and analysis of discussion papers thereof. The draft National e-commerce Policy was p....
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....laced in public domain on February, 23, 2019 for receiving stakeholder's comments and so far about 120 comments have been received on the same. 1.29.2 This Department is also responsible for putting forward India's position at International forums such as WTO, G20, India- Peru Trade Negotiations, Shanghai cooperation Organization (SCO) etc and was the negotiating lead for e-commerce at the Regional Comprehensive Economic Partnership (RCEP). 1.30 Internal Trade 1.30.1 The Department of Industrial Policy and Promotion was renamed as Department for Promotion of Industry and Internal Trade (DPIIT) in January, 2019 and designated as nodal department for Internal Trade as per Gazette Notification dated 27.01.2019, S.O. 503(E), Government of India (Allocation of Business) Rules, 1961. Additional responsibilities for promotion of Internal Trade, including Retail and Welfare of Traders and their Employees, were assigned to DPIIT. 1.30.2 A National Traders' Welfare Board 17 Role and Functions Role and Functions (NTWB) has been constituted for the following objectives:- (i) To identify policy measures to achieve the objective of welfare of traders and their employees. (ii) To suggest simplifi....
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....cations in the Acts and rules applicable to traders. (iii) To make recommendations to reduce the compliance burden of traders. (iv) To improve access to funds for traders. (v) To make recommendations regarding social security benefits like insurance, pension, healthcare etc, for traders and their employees. (vi) To make recommendations to address any other problems and issues of traders and their employees. 1.31 Technical Regulation 1.31.1 For ensuring human safety, environment protection and availability of quality products to consumers, this Department is in the process of formulating Technical Regulations in respect of various items. Technical Regulations, inter-alia will also help in curbing import of substandard products in country. Technical Regulations are governed under BIS Act, 2016. During 2019, DPIIT has initiated 15 Quality Control Orders (QCOs) concerning 42 products; 6 QCO's covering 24 products have been notified, in respect of LPG stove, transparent Float glass, plugs & sockets, meter, air conditioner, cables, pressure cooker etc. Remaining products like Safety glass, flat transparent sheet glass, house-hold products, plain copier paper etc will be notified shortly.....
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.... 1.31.2 Technical Regulations for New Products: Department of Commerce has given 58 new Tariff Lines for formulation of Technical Regulations. DPIIT has initiated action for the same. 1.31.3 Development Councils for promotion & Growth of Industries: Under Industrial (Development & Regulation Act, 1951, the Department has given the responsibility for setting up Development councils for Scheduled Industries to help provide a forum for discussion on Policy strategies and formulation. In keeping the above stated objective of the Department to guide the growth & development of industries, following Development Councils merit a mention:- (i) (ii) 1.32 Foundry Development Council: It was constituted for Foundry Industry in 2014 and re-notified in 2017 for a period of 2 years. It will be re-notified again. Bicycle Development Council: Bicycle Development Council has been notified on 15.11.2019. Other activities of the Department during 2019-20 1.32.1 Some of other activities of DPIIT undertaken during the year such as participation in 'Swachhata Hi Sewa Campaign', 'National Run for Unity' and 'Celebration of Constitutional Day' have been briefly indicated in the APPENDIX-III. 18 Industrial....
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.... Promotion 2 Chapter 2.1 Make in India 2.1.1 The initiative was launched in September, 2014 as a national effort towards making India an important investment destination and a global hub for manufacturing, design and innovation. The program is based on four pillars namely New Processes, New Infrastructure, New Sectors and New Mindset. 2.1.2 The initiative has been built on layers of collaborative effort of all stakeholders. Action plans were put in place for 21 sectors covering infrastructure, manufacturing and services. The Action plans include initiatives for infrastructure creation; Ease of Doing Business; innovation and R&D; fiscal incentives and skill development. - 2.1.3 Make in India initiative is now focused on 27 sectors 15 manufacturing sectors and 12 champion service sectors. The sectoral plans for manufacturing sectors are coordinated in DPIIT while the sectoral plans for services are coordinated by the Department of Commerce in convergence with the Champion Services Sector initiative. 2.2 Industrial Licensing 2.2.1 The list of items covered under Compulsory Licensing is reviewed on an ongoing basis. Presently, there are no items reserved for exclusive manufacture by Sm....
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....all Scale Sector. Presently, only following, two industries are reserved exclusively for the public sector: i. ii. Atomic Energy (Production, separation or enrichment of special fissionable materials and substances and operation of the facilities) and, Railway Operations only: Private investment has been allowed in Railways for other construction, operation and maintenance activities. 2.2.2 Currently, only following four industries require an industrial licence: i. ii. iii. iv. Cigars and cigarettes of tobacco and manufactured tobacco substitutes; (However, licencses for these items are not being issued on health grounds) Electronic aerospace and defence equipment; Industrial explosives including detonating fuses, safety fuses, gunpowder, nitrocellulose and matches; Specified hazardous chemicals i.e. (a) Hydrocyanic Acid and its derivatives, (b) Phosgene and its derivatives and (c) Isocyanates and diisocyanates of hydrocarbon, not elsewhere specified (example methyl Isocyanate). 2.2.3 The following measures have also been taken up by Government for easing the process of Industrial Licensing: i. Period of validity of Industrial Licence in general has been extended from 2 years to 3 ....
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....years. As a measure of further ease of doing business, two extensions of two 19 Industrial Promotion Industrial Promotion ii. iii. iv. V. vi. years each in the initial validity of three years of the Industrial Licence shall be allowed up to seven years. Guidelines have been issued to streamline the processing of applications for grant of extension of validity of Industrial Licence. Partial commencement of production is treated as commencement of production of all the items included in the licence. The advanced version of National Industrial Classification (NIC-2008) has been adopted, which is a superior/ sophisticated industrial classification. The 'Security Manual for Licensed Defence Industry' has been issued. With the issue of the Security Manual, the requirement of affidavit from the applicants has been done away with. Restriction of annual capacity in the Industrial Licence for Defence Sector has been removed under Industries(Development & Regulation) Act, 1951. vii. Licensee has been allowed to sell the defence items to the government entities under the control of MHA, PSUs, State Governments and other Defence Licensee companies without approval of Department of Defence Produ....
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....ction. viii. Mapping of Sector specific FDI policy with NIC 2008 code has been completed and Press Note issued. ix. Initial validity of Industrial Licence for Defence Sector has been increased in phases from the earlier validity period of 2 years to 15 years now, further extendable up to 18 years, under Industries (Development & Regulation) Act, 1951. It was done as a measure to further promote ease of doing business, in view of the long gestation period of defence contracts to mature. X. xi. Licensee has been allowed to manufacture enhanced capacity up to fifteen percent of the existing capacity with prior intimation to the licensing authority under Arms Act, 1959. Vide MHA Notification No. G.S.R. 1342(E), dated 27.10.2017, it has inter alia been stipulated that a licence granted in Form VII for manufacture and/or proof- test of arms and ammunition under Arms Act 1959, shall be valid for the life time of the licensee company, provided that the licensee shall be required to setup the facility for manufacture or proof test of arms and/or ammunition, recruit technical and administrative staff, develop and proof- test prototypes of arms and ammunition, conduct trial runs and any other....
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.... activity related to the setting up of the facility for the manufacture or proof-test of arms and ammunition, within a period of seven years from the date of grant of a licence. The licensing authority may extend the period of seven years by a further period of three years on the basis of a written representation received from the licensee and after recording reasons for granting such an extension. The above is with the condition that if during the period of seven years or the extended period of three years, as the case may be, the licensee fails to set up the manufacturing or proof-test facility or is unable to take other operating steps required for starting commercial production, the licence shall be suspended or revoked. xii. A new online portal has been developed for facilitating filing of online applications for Industrial Licence under Industries (Development & Regulation)-IDR Act 1951/Arms Act 1959. The link of the portal is https://services.dipp.gov.in. This online portal is available for Public with effect from 16.10.2018 for filing 20 20 applications. xiii. Subsequent to issue of MHA Notification No. S.O. 6203(E) dated 14.12.2018, Defence products list requiring compulso....
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....ry licence from DPIIT under Industries (Development & Regulation) Act, 1951 and Arms Act, 1959 has been pruned, and DPIIT Press Note 1(2019 Series) dated 01.01.2019 has been issued. This is in supersession of DPIIT Press Note 3(2014 Series) dated 26.06.2014. With issue of Press Note 1(2019 Series), the licensing in defence sector has been further liberalized. xiv. To facilitate further ease of doing business in Industrial Licensing Press Note 2(2019 Series) dated 11.09.2019 has been issued clarifying that No Industrial Licence/Arms Licence is required for manufacture of any parts or accessories in Defence Sector, unless they are specifically listed in any of the Annexures of Press Note 1(2019 Series). This shall not apply to issue of Arms Licence for small arms by MHA. XV. Press Note 3(2019 Series) dated 11.09.2019 was issued thereby withdrawing Press Note 17(1984 Series). xvi. Final notification regarding Amendment in the Registration and Licensing of Industrial Undertaking Rules, 1952 under Industries (Development & Regulation) Act, 1951 was published vide Notification No. G.S.R 637(E) dated 04.09.2019 and the Registration and Licensing of Industrial Undertaking Rules, 2019 has b....
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....een laid on table of the Houses of Parliament in the Winter Session 2019. 2.3 Foreign Direct Investment (FDI) 2.3.1 Foreign Direct Investment (FDI) is a major driver of economic growth and a source of non-debt finance for the economic development of India. It has been the endeavor of the Government of India to put in place an enabling and investor friendly FDI Policy. The intent has been to make the FDI policy more investor friendly and remove the policy bottlenecks that have been hindering the investment inflows into the country. 2.3.2 FDI Policy 2.3.2.1 DPIIT is mandated with the task of formulation of FDI policy of the Government of India. The policy pronouncements on FDI are made by DPIIT through Press Notes and based on the policy pronouncements made by DPIIT, necessary notifications are issued under Foreign Exchange Management Act, 1999. The Department also maintains data on inward FDI into India based upon the remittances reported by the Reserve Bank of India (RBI). 2.3.2.2 FDI in India is permitted either through the automatic route or the government approval route. It has been the intent and objective of the Government of India to attract and promote Foreign Direct Investm....
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....ent and make FDI policy regime more investor friendly, in keeping with national interests. In line with its stated objective, the Government has put in place a transparent, predictable and easily comprehensible policy framework on FDI. Further, FDI policy regime has been liberalized continuously over the years wherein FDI up to 100% is permitted under automatic route in most sectors/activities. It has been the endeavor of the Government to ensure that India remains a favorable and attractive Investment destination. 2.3.2.3 The country has registered highest ever FDI Inflow of US $ 62.00 billion during the financial year 2018-19. The FDI worth US$ 284 billion has been received in last five years. FDI brings in resources, the latest technology and best practices to push economic growth on to a higher trajectory. 21 221 Industrial Promotion Industrial Promotion 2.3.2.4 The extant FDI Policy framework follows a negative list approach wherein only a select few sectors have been specified in the FDI Policy document, and barring these, FDI upto 100% under the automatic route is permitted in all other sectors. The select few sectors that are laid down in the FDI policy document are the re....
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....gulated sectors. These include sectors where FDI is permitted under automatic route but with certain conditionalities. In addition, there are sectors, where FDI limit is capped below 100%, and FDI may be allowed with/or without conditions. Lastly, sectors where FDI is permitted through Government approval route have been included in the FDI policy document. In respect of sectors where FDI is permitted under automatic route, no separate permission is required from the Government. For sectors where FDI is allowed under automatic route but with conditionalities, the investee entity has to be self-compliant in respect of such conditions laid down in the policy. For FDI under Government approval route, a well-established, transparent and time-bound mechanism has been laid down. 2.3.2.5 The FDI policy is regularly reviewed on an ongoing basis, with a view to make it more investor-friendly. Government plays an active role in investment promotion through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. FDI policy in its present shape has evolved over the years,....
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.... with the intent of making it simpler and easier to promote larger volumes of foreign investment inflows into the country. During the course of FDI policy formulation and subsequent amendments, intensive consultations are held with concerned stakeholders. These include other Ministries/ Departments, RBI, law firms, consultants, industry associations etc. 2.3.3 Liberalization & FDI Policy Reforms 2.3.3.1 In 2015-16, with a view to provide ease of doing business, licensed and non-sensitive activities were placed under automatic route and investment caps were raised. FDI policy provisions were radically overhauled across sectors such as Construction Development, Broadcasting, Retail Trading, Air Transport, Insurance and Pension among others. In addition, initiatives such as introduction of composite caps in the FDI policy and raising the FIPB approval limit were also undertaken to promote ease of doing business in the country. 2.3.3.2 The measures towards FDI policy liberalization and reforms continued in the last financial year. A paradigm shift was made in the FDI policy on retail and other financial services sector. For retail trading of food products, the Government permitted 100%....
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.... FDI with the condition that such food products have to be manufactured and/or produced in India. The measure promotes domestic industry, creates local jobs and helps in conserving valuable foreign exchange. In the Financial services sector, Government promulgated that any financial sector activity which is regulated by a financial sector regulator will be eligible for 100% FDI under automatic route, and approval would be needed only for unregulated financial sector activities. During the last financial year, FDI policy reforms were also undertaken in other sectors such as Defence, Airport Infrastructure, Broadcasting, Animal Husbandry and Retail Trading. The path breaking reform measures taken by the Government have resulted in increased FDI inflows in the country, which year after year is setting up new records. FDI inflows in India stood at US $ 45.15 billion in 2014- 2015 and have increased since then. Country registered its highest ever FDI Inflow of US $ 62.00 billion during the financial year 2018- 19, a new all-time high. 22 22 2.3.3.3 FDI equity and total FDI inflow in last five years is given below: S. Financial No. Year (Amount in US$ billion) Total FDI Inflow 45.15 FDI ....
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....Equity Inflow 1. 2014-15 29.74 2. 2015-16 40.00 55.56 3. 2016-17 43.48 60.22 4. 2017-18 (P) 44.86 60.97 5. 2018-19 (P) 44.37 62.00 Source RBI. (P) Data is provisional. 2.3.3.4 Continuing on the path of FDI liberalization and simplification, in January, 2018, Government has carried out FDI reforms across various sectors. 100% FDI under automatic route has been permitted for entities engaged in Single Brand Retail Trading. It has also been clarified in the FDI policy that ‘real estate broking service' does not amount to real estate business and is therefore, eligible for 100% FDI under automatic route. Government has also permitted foreign investment up to 49% under approval route in M/s Air India Ltd. FDI reforms have also been undertaken in sectors such as Power Exchanges, issuance of equity against pre-incorporation expenses/ import of capital goods/machinery/equipment (excluding second-hand machinery). The Government vide Press Note 4(2019) series dated 18.09.2019 has liberalized FDI policy in the Coal Mining, Contract Manufacturing, Single Brand Retail Trading and Digital Media. 2.3.3.5 Further, in order to simplify the approval process of foreign investment, a new Investm....
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....ent Regime for FDI approvals has been put in place. The Foreign Investment Promotion Board (FIPB) has been abolished by the government. FIPB was an inter-ministerial body that used to consider FDI proposals under approval route, wherein final approval was granted by Finance Minister/ CCEA. Under the new Regime, process for granting FDI approvals has been simplified wherein the work relating to processing of applications for FDI and approval of the Government thereon under the extant FDI Policy and FEMA, is now handled by the concerned Ministries/ Departments in consultation with the Department for Promotion of Industry & Internal Trade (DPIIT). DPIIT is the nodal Department for approvals in case of Single Brand Retail Trading (for products having state of art and cutting edge technology), Multi Brand Retail Trading, Food Product Retail Trading, NRI/ EOU investments. Cases pertaining to issue of shares against capital goods/machinery/preoperative and pre- incorporation expenses will also be processed by DPIIT. 2.3.4 Foreign Investment Facilitation Portal: A new Investment portal, Foreign Investment Facilitation Portal, has been operationalized by DPIIT. The Foreign Investment Facili....
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....tation Portal is the new online single point interface of the Government of India for investors to facilitate Foreign Direct Investment. This portal is being administered by DPIIT and the portal will continue to facilitate the single window clearance of applications which are through approval route. DPIIT has also issued the Standard Operating Procedure (SOP) for processing of applications and decision of the Government under the extant FDI policy. The SOP provides for time bound processing of FDI proposals by the concerned Ministries/ Departments. 2.4 Industrial Promotion It has been continuous endeavour of the Department for Promotion of Industry and Internal Trade to make its functioning Industry friendly. The Industrial Entrepreneur Memorandum Section is ISO9001:2008 certified for maintaining the Quality Policy. 23 Industrial Promotion Industrial Promotion 2.4.1 Industrial Entrepreneur Memorandum (IEM) 2.4.1.1 As per the liberalized policy in place since 1991, all non-MSME Industrial undertakings (with an investment above 10 crore in Plant and machinery for manufacturing sector and more than 75 Crore for service sector) which are exempt from obtaining an industrial licence are ....
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....required to file an Industrial Entrepreneur Memorandum (IEM) with the Secretariat for Industrial Assistance. 2.4.1.2 As a measure to facilitate ease of doing business, filing of online IEMs under e-BIZ has been initiated since January 2014 and new portal in place of e-BIZ portal has been launched on 1st November 2018 as G2 B Portal. This means that the entrepreneurs do not need to visit to Udyog Bhavan, N. Delhi and can apply for IEM online on 24X7 basis. An acknowledgement is issued within 48 hrs on receipt of Part 'A' of the IEM form and no further approval is required, under the Industries (D&R) Act, 1951. Relevant information is uploaded on website of the Department and is available in public domain. Immediately after commencement of commercial production, Part 'B' of the IEM is required to be filed and it is also issued within 48 hours without approval. It is an acknowledgement of information on capacity, location, investment and item of manufacture. 2.4.1.3 Filing an IEM is primarily for the purpose of collecting data for the delicensed sector on proposed investment, and type of industrial activity. It is also useful for the purpose of conducting a limited scrutiny mainly to ....
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....preclude manufacturing of a compulsory licensable item by IEM route. 2.4.1.4 Since August 1991 a total of 1,05,782 IEMs with proposed investment of *1,27,77,351 crore are on record as on 31.12 2019. Statewise and sectorwise lists of IEMs filed during the last five years on a year-wise basis are at Appendices IV and V. 24 24 2.4.1.5 Since the inception of the IEM scheme in August 1991 till December 2019, a total of 14,742 units have formally intimated commencement of commercial production. The investment reported in respect of these IEMS is 29,17,554 crore. The Statewise report of implementation of IEMs for the last five years is at Appendix- VI. 2.5 Industrial Investment Intentions 2.5.1 The Industrial Investment information maintained by the Department of Industrial Policy and Promotion covers the non-MSME category Industrial Entrepreneur Memoranda for the delicensed sector and Direct Industrial Licences (DIL) for licensable sector. 2.5.2 The information on Industrial Investment, information on IEMs filed on daily basis etc is being disseminated through this Department' website for the information of the investors which leads to transparency and accountability of the functioning o....
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....f this division. 2.6 Industrial Performance 2.6.1 The Index of Industrial Production (IIP), measuring industrial performance monitors production in Manufacturing, Mining and Electricity sectors and also in use-based groups such as Primary goods, Capital goods, Intermediate goods, Infrastructure/construction goods, Consumer durables and Consumer non-durables. IIP registered growth rate of 3.8 per cent on account of growth in Electricity generation (5.2 per cent), Manufacturing (3.9 per cent) and Mining (2.9 per cent) in 2018-19. As per the use-based classification, Primary goods, Capital goods, Intermediate goods, Infrastructure/construction goods, Consumer durables and Consumer non- durables registered growth of 3.5 per cent, 2.7 per cent, 0.9 per cent, 7.3 per cent, 5.5 per cent and 4.0 per cent respectively during the same period. 2.6.2 IIP registered cumulative growth of 0.5 per cent during the period April to October, 2019-20 over corresponding period of previous year. The Index of Manufacturing, Mining and Electricity sector grew by 0.5 per cent, (-) 0.4 per cent and 1.6 per cent respectively during April to October, 2019-20 over corresponding period of previous year. As per t....
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....he Use-based classification, for the period April-October, 2019-20, Primary goods, Intermediate goods, (Base: 2011-12) Sectors and Consumer non-durables registered positive growth of 0.2 per cent, 11.3 per cent and 4.3 per cent respectively, whereas, the index of Capital Goods, Infrastructure/construction goods, Consumer Durables registered negative growth of (-) 12.0 per cent, (-) 2.4 per cent and (-) 7.0 per cent respectively. The details of sector-wise and use-based category-wise performance are given in Table 2.1. Table: 2.1 Annual Growth Rate of Industrial Production (Figures in per cent) Weight 2012-13 2013- 2014- 2015- 2016- 2017- 2018- 2019-20 14 15 16 17 18 19 (Apr-Oct) Mining 14.37 -5.3 -0.1 -1.4 4.3 5.3 2.3 2.9 -0.4 Manufacturing 77.63 4.8 3.6 3.8 2.8 4.4 4.6 3.9 0.5 Electricity 7.99 4.0 6.1 14.8 5.7 5.8 5.4 5.2 1.6 Overall 100.00 3.3 3.3 4.0 3.3 4.6 4.4 3.8 0.5 Use-based Classification Primary goods 34.05 0.5 2.3 3.8 5.0 4.9 3.7 3.5 0.2 Capital goods 8.22 0.3 -3.7 -1.1 3.0 3.2 4.0 2.7 -12.0 Intermediate 17.22 5.1 4.6 6.1 1.5 3.3 2.3 0.9 11.3 goods Infrastructure/ construction 12.34 5.4 5.7 5.0 2.8 3.9 5.6 7.3 -2.4 goods Consumer 12.84 4.9 5.6 4.0 3.4 2.9 0.8 5.5 -7.0 du....
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....rables Consumer 15.33 6.1 3.7 3.8 2.6 7.9 10.6 4.0 4.3 non-durables IIP 100.00 3.3 3.3 4.0 3.3 4.6 4.4 3.8 0.5 Source: National Statistical Office 2.6.3 Industrial Performance during the year 2019-20 2.6.3.1 Overall IIP grew by 0.5 per cent. The decline in performance of industry was basically due to under performance of industry in the last quarter of the year 2019-20. For the 25 year 2019-20, Manufacturing sector, as per IIP has also recorded a growth rate of 0.5 per cent. Electricity generation has grown by 1.6 per cent and Mining sector registered growth of (-) 0.4 per cent for the same period. As per the provisional estimates of Gross Value Industrial Promotion Industrial Promotion Added (GVA) released by NSO, Industry Gross Value Added (GVA) is estimated to grow by 6.9 per cent for 2018-19 in comparison to the increase of 5.9 per cent registered in 2017- 18. The Manufacturing sector GVA is also estimated to grow by 6.9 per cent in 2018- 19. 2.6.3.2 As per the 2-digit classification, industry groups registering positive growth rates are namely, Manufacture of food products, 7.0 Manufacture of beverages, Manufacture of tobacco products, Manufacture of wearing apparel, Manufactu....
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....re of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials, Manufacture of chemicals and chemical products, Manufacture of pharmaceuticals, medicinal chemical and botanical products and Manufacture of basic metals. Year-wise IIP based growth rates for major sectors is depicted in the graph 2.1. Graph 2.1: Year-wise IIP based Sectoral growth rates (in per cent) 6.0 5.7 5.8 5.3 5.0 4.3 4.0 3.3 2.8 3.0 2.0 5.4 5.2 4.6 4.6 4.4 4.4 3.9 3.8 2.9 2.3 â– Mining Manufacturing Electricity Overall IIP 1.6 1.0 0.5 0.5 -0.4 0.0 2015-16 2016-17 2017-18 2018-19 Apr-Oct 2019-20 -1.0 Source: NSO 2.6.4 Performance of Eight Core Industries 2.6.4.1 The Index of Eight Core Industries (ICI) monitors production of eight core industries i.e. Coal, Crude Oil, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity every month. These eight industries have combined weight of around 40.27 per cent in Index of Industrial Production (IIP). ICI is released 12 days prior to the release of IIP by NSO. The growth rates for Eight Core Industries since 2012-13 are given in Table 2.2. 2.6.4.2 During the year 2018-19, the Index of Eight Core....
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.... Industries registered growth of 4.4 per cent. The production of Coal, Natural Gas, Refinery Products, Fertilizers, Steel, Cement and Electricity registered positive growth. 2.6.4.3 During the year 2019-20, Index of Eight Core Industries registered growth of 0.2 per cent. The production of Fertilizers, Steel and Electricity registered positive growth. 26 Table 2.2: Growth Rate of Eight Core Industries (Figures in per cent) Sector 14 15 Weight 2012- 2013- 2014- 2015- 2016- 2017- 2018- 13 16 17 18 19 2019-20 (Apr-Oct.) Coal 10.3335 3.2 1.0 8.0 4.8 3.2 2.6 7.4 -5.8 Crude Oil 8.9833 -0.6 -0.2 -0.9 -1.4 -2.5 -0.9 -4.1 -5.8 Natural Gas 6.8768 -14.4 -12.9 -5.3 -4.7 -1.0 2.9 0.8 -2.6 Refinery 28.0376 7.2 1.4 0.2 4.9 4.9 4.6 3.1 -1.7 Products Fertilizers 2.6276 -3.3 1.5 1.3 7.0 0.2 0.03 0.3 2.6 Steel 17.9166 7.9 7.3 5.1 -1.3 10.7 5.6 5.1 6.7 Cement 5.3720 7.5 3.7 5.9 4.6 -1.2 6.3 13.3 -0.6 Electricity 19.8530 4.0 6.1 14.8 5.7 5.8 5.3 5.2 1.5 Overall Index 100.0000 3.8 2.6 4.9 3.0 4.8 4.3 4.4 0.2 Source: Office of the Economic Adviser, DPIIT 27 ***** Industrial Promotion Regulatory Reforms- Creating Ease for Doing Business 3 Chapter Regulatory Reforms- Creating Ease for Doing Business 3.1 In....
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....troduction 3.1.1 Regulatory burden on a business has a significant impact on its performance. Regulations impose both time and cost for compliance and, thus, affect competitiveness of business. Regulations, however, are an important tool for ensuring that markets work effectively and do not meet failure due to trust deficit in products or among various players. Regulations bring in the minimum threshold of acceptability and thereby make markets work. 3.1.2 In view of these conflicting aspects, there is a requirement to ensure that, while necessary regulations are imposed, their implementation remains efficient and effective. The time and costs imposed by the regulations should be minimum. Low regulatory burden means that entrepreneurs can devote their time on productive activities. It also leads to lower costs as the requirement of engaging regulatory experts is reduced. There are several ways in which delivery of government services can be improved. 3.1.3 Government of India has since 2014 aimed at creating a conducive environment by streamlining the existing regulations and processes and eliminating unnecessary requirements and procedures. A detailed plan of regulatory reforms ha....
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....s been implemented not only in the Central Government Ministries but also in States through the active engagements with State Governments. 3.2 3.2.1 Improvement in India's Rank in World Bank's Doing Business (DB) Ranking The World Bank conducts an annual study of participating countries/economies [190 for Doing Business Report (DBR), 2019 and 2020], to assess the regulatory burden that a small size business has to face in these countries. For India, this study is conducted in the cities of Delhi and Mumbai. The DBR covers 10 indicators which span the lifecycle of a business. 3.2.2 The World Bank released the Doing Business Report (DBR), 2020 on 24th October, 2019. India ranks 63 among 190 countries assessed by the Doing Business Team. India has for the third consecutive year improved its rank significantly and leapt 14 ranks over its rank of 77 in the DBR 2019. The indicator wise ranks of India in World Bank's DBR 2019 and DBR 2020 are as follows: 28 28 Table 3.1 Indicator Wise Rank of India in : World Bank's DBR 2019-2020 S. Indicator No. 1. Starting a Business 3.3.1 i. iii. Rank DBR DBR ii. 2019 2020 137 136 2. Dealing with 52 27 Construction Permits 3. Getting Electricity 24 22 ....
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....4. Registering Property 166 154 5. Getting Credit 22 25 6. Protecting Minority 7 13 Investors 7. Paying Taxes 121 115 8. Trading Across Borders 80 62 iv. 9. Enforcing Contracts 163 163 10. Resolving Insolvency 108 52 Overall 77 63 V. 3.2.3 India has improved its rank in 7 out of 10 indicators during the year and has moved closer to international best practices calculated by a score of Distance to Frontier (DTF). India's DTF score improved from 67.5 in DBR 2019 to 71.0 in DBR 2020. India has been recognized as one of the top 10 improvers for the third time in a row, with an improvement of 67 ranks in three years. India's rank has improved from 142 in 2014 to 63 in 2019, registering an improvement of 79 positions since start of the initiative. 3.3 Major Indicator Wise Reforms: Some of the major indicator wise reforms undertaken by the Government towards easing the business environment in the country during the last five years are as under: vi. Starting A Business: Removing the requirements of company seal, minimum capital and obtaining certificate of commencement. Launch of a new and simplified web based service i.e. Reserve Unique Name (RUN) for reserving a name removing requirement....
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.... of digital signature certificate (DSC) and simplifying the procedure. Introduced a single form SPICE (Simplified Proforma for Incorporating Company electronically) by merging five different applications in it i.e. Name reservation, Company incorporation, Director Identification Number (DIN), Permanent Account Number (PAN) and the Tax Deduction/Collection Account Number (TAN). Incorporation fee has been eliminated for companies with authorized share capital up to INR 15 lakh. The requirement to issue a physical PAN card has been eliminated. Additionally, PAN and TAN are mentioned in the Certificate of Incorporation (Col) which is considered as a sufficient proof for PAN and TAN. for Common online registration Employees' Provident Fund Organisation (EPFO) & Employees' State Insurance Corporation (ESIC) is provided on Shram Suvidha Portal. vii. Registrations under Mumbai Shops & Establishments Act are provided instantly through an online application removing requirement of physical inspection. 3.3.2 Dealing Permits: with i. Construction Implementing an online system that has streamlined the process of obtaining 29 Regulatory Reforms- Creating Ease for Doing Business Regulatory Reform....
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....s- Creating Ease for Doing Business ii. iii. 3.3.3 i. ii. building permit at the Municipality of New Delhi and Municipality of Greater Mumbai by providing a single window. All agencies involved in granting clearance for construction have been integrated on the portal and applicant is no longer required to visit each agency individually. Joint Inspections by various agencies have been introduced to reduce multiple interactions by the applicant. The new system has reduced number of procedures and time taken in grant of construction permit. Getting Electricity: The number of processes involved has been reduced by elimination of non- essential processes. This has also reduced the time taken for grant of a new electric connection. The number of documents required has been restricted to (i) a proof of identity, (ii) a proof of address/ownership/occupancy, and (iii) for artificial persons a proof of authority. iii. A load based estimate has been introduced to reduce time taken in this process. 3.3.4 Getting Credit: i. Secured creditors are paid first during business liquidation, and hence have priority over other claims such as labor and tax. 3.3.5 ii. iii. Paying Taxes: Payments for the ....
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....contribution for EPFO and ESIC were made online. Paying taxes has been made easier by replacing many indirect taxes with a single indirect tax, Goods and Service iv. V. 3.3.6 i. ii. iii. iv. Tax (GST), for the entire country. The previous sales taxes including the central sales tax, CENVAT, state VAT and the service tax have been merged into the GST. Unification of these taxes will reduce the cascading effect of taxes and make taxes paid on inputs creditable to a higher percentage. Corporate income tax has been reduced from 30% to 25% for companies with a turnover up to INR 250 crore. Administrative charges on The Employees' Provident Funds Scheme, 1952 (EPFS) have been reduced in March 2017 from 0.85% to 0.65% of the monthly pay. The Employees' Deposit Linked Insurance (EDLI) administrative charges of 0.01% have been removed. Trading Across Borders: Time and cost to export and import has been reduced through various initiatives, including the implementation of electronic sealing of containers, upgradation of port infrastructure and allowing electronic submission of supporting documents with digital signatures. Enhancement of risk-based inspections for both imports and exports, whe....
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....reby only about 5% of goods are physically inspected. Adoption of the Advance Bill of Entry which allows importers to start the process of customs clearance before the arrival of the vessel. Upgrading equipment on the Nhava Sheva Port in Mumbai by adding 15 new Rubber Tyre Gantry Cranes. The Phase 1 of the Fourth Container Terminal at the Jawaharlal Nehru Port Trust, with an additional annual capacity of 2,400,000 TEUS, was completed in February 2018. 30 30 V. vi. 3.3.7 i. The new container terminal, Adani CMA Mundra Terminal Private Limited has been fully operational since June 2017, with an additional annual capacity of 1,300,000 TEUS. Implemented in April 2018, e-Sanchit is an online application system, under the Single Window Interface for Trade (SWIFT) that allows traders to submit all supporting documents electronically with digital signatures. Enforcing Contracts The Commercial Courts Act 2015 was amended to reduce the pecuniary jurisdiction of commercial courts at district level from INR 1 crore to INR 3 lakh. 75 courts in Delhi and 16 courts in Mumbai were designated as commercial courts. ii. Tools for e-Court management were introduced in both cities to facilitate greater....
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.... control and transparency in the matter of court procedures. These tools were made available to judges and lawyers. 3.3.8 Resolving Insolvency i. Introduction of the Insolvency & Bankruptcy Code, 2016 (IBC) has brought a paradigm shift in handling of corporate insolvency. The emphasis has been to ensure that instead of piecemeal sale of its asset, as viable unit is disposed of as a going-concern. ii. IBC has given time bound procedure for disposal of corporate insolvency thereby limiting possibility of delays in the process. 3.4 Regulatory Reforms in States- Business Reform Action Plan (BRAP) 3.4.1 The Department spearheaded a dynamic reform exercise that commenced in 2014 to rank all the States/UTs in the country based on implementation of designated reform parameters. The aim of this exercise is to create a conducive business environment by streamlining regulatory structures and creating an investor-friendly business climate by cutting down red tape. 3.4.2 A 98 point action plan was finalised and shared with States/UTS. Subsequently, a report titled "Assessment of State implementation of Business Reforms" was released in September, 2015 capturing the findings of reforms implement....
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....ed by States/ UTS. World Bank also partnered with DPIIT in this reform plan and to give the exercise momentum, 18 joint workshops were conducted along with World Bank specialists to help Departments concerned across States/ UTS understand the essence of the reforms better. a 3.4.3 In 2016, DPIIT released 340-point action plan which was drafted in consultation with all States/UTS which included recommendations on 58 regulatory processes, policies and process spread across 10 reform areas spanning the lifecycle of a typical business. Such an action plan was the first of its kind in India which promoted both competitive and cooperative federalism among the States/UTS. 3.4.4 DPIIT took up policy measures like enacting the Public Service Delivery Guarantee Act to ensure timely processing, setting up of a single window agency through legislation to serve as a single point of contact for all licensing required by businesses, mandating joint inspection under 10 labour Acts, etc. Extensive work was done to streamline 31 Regulatory Reforms- Creating Ease for Doing Business inspections and set the nation free from 'inspector raj,' for which best practices across 10 different countries were st....
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....udied. DPIIT also developed an online portal, which can be accessed at http://eodb.dipp.gov.in, wherein all the reforms implemented are accessible for public viewing. The portal also gives dynamic ranking which updates, as and when, any of the reform points are recognized and approved. 3.4.5 Final ranking of States/UTS on implementation of the 340 points were released on 31st October, 2016 with a national implementation average of 48.93%, significantly higher than national average of 32% in 2015. 3.4.6 The reform exercise in 2016 saw 12 States achieved more than 90% implementation score and some noteworthy achievements include 16 States implemented online Single Window System with functionality for online application submission, payment and approvals, 15 States developed a GIS system to provide details about the land earmarked for industrial use across the State, 13 States/UTS set up commercial courts at the district level, etc. 3.4.7 In 2017-18, the reform exercise was updated to 372 action points with additions introduced such as Central Inspection system, Trade License, Registration under Legal Metrology, and Registration of Partnership Firms & Societies. DPIIT had taken numerou....
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....s initiatives for the reform process as listed below: i. ii. A nationwide workshop was held on 29th July, 2017 to discuss the relevance and importance of implementing reforms. The all-day conference witnessed an active involvement of almost 100 participants from 26 States/UTS. The workshop witnessed sharing of the best practices by States/UTS. A unique handholding method was introduced where leading States were partnered with laggard States/UTS. West Bengal merits a special mention for its effort for conducting a 3 day workshop for Nagaland. iii. Priority reforms iv. V. vi. was identified for North east States and others with low implementation score. 8 workshops were conducted along with the World Bank to address queries posed by States/UTs in Tripura, Punjab, Haryana, Daman & Diu, Dadra & Nagar Haveli, Andaman and Nicobar Islands, Goa and Karnataka. To handhold all the 8 north-eastern States, video conferences were arranged. The assessment of Business Reform Action Plan, 2017-18 was released jointly by DPIIT and the World Bank on 10th July, 2018. The respective position of the States is given in the table 3.2. Regulatory Reforms- Creating Ease for Doing Business 32 Table 3.2 TOP ....
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....ACHIEVERS (Above 95%) ACHIEVERS (90-95%) FAST MOVERS (80-90%) ASPIRERS (BELOW 80%) Rank State Rank State Rank State Rank State 1 Andhra Pradesh 10 West Bengal 16 Himachal 19 Goa Pradesh 2 Telangana 11 Uttarakhand 17 Assam 20 Punjab 3 Haryana 12 Uttar pradesh 18 Bihar 21 Kerala 4 Jharkhand 13 Maharashtra 22 Jammu & Kashmir 5 Gujarat 14 Odisha 23 Delhi 6 Chhattisgarh 15 Tamil Nadu 24 Daman & Diu 7 Madhya 25 Tripura Pradesh 00 8 Karnataka Dadra & Nagar Haveli 9 Rajasthan 26 27 Puducherry 28 Nagaland 29 Chandigarh 30 Mizoram 31 | Andaman & Nicobar Islands 32 Manipur 33 Sikkim 34 Arunachal Pradesh 34 Lakshadweep 34 Meghalaya 3.5 3.5.1 Important Achievements Some important achievements under the exercise are as follows:- i. ii. iii. 19 States have designed an Information Wizard providing information for all approvals, licenses, registrations timelines, procedure to establish business/ industrial unit (pre-establishment & pre- operation) 21 States/UTs have designed and implemented online Single Window System. 16 States/UTS have stipulated 33 33 iv. Construction Permits to be provided within 45 days (Building plan approval to be provided in 30 days/ Plinth level inspection to be completed ....
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....in 7 days, final occupancy certificate provided in 8 days). Telangana, Assam and Tamil Nadu have mandated even shorter timelines of 29, 30 and 37 days, respectively. Tamil Nadu has claimed to have done away with the process of issuance of completion certificate. 21 States/UTs have implemented a GIS system to provide details about the land earmarked for industrial use across the State. Regulatory Reforms- Creating Ease for Doing Business V. vi. 23 States/UTs have reduced the number of documents required for Obtaining Electricity connection to only 2. 18 States/UTS have brought all compliance inspections conducted by Labour, Factories, Boilers Departments and Pollution Control Boards under Central Inspection Framework. vii. 12 States/UTs have merged of the payment of court fees and process fees into a single transaction with some states like Jharkhand, Maharashtra, and Gujarat even repealing process fees from the Court Fees Act. viii. 29 States/ UTs have notified a list of white category industries exempted from taking pollution clearances. 3.5.2 In new sector specific reforms added in 2017-18, States/ UTs have shown an active participation, with 20 States/UTs implementing an online ....
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....application system Wholesale Drug License and Retail Drug License (Pharmacy), 18 States/UTS have online systems for Registration of Partnership firms and Societies, 20 States/UTs have implemented an online system for registration and renewal under the Legal Metrology Act, 2009. 3.5.3 An important addition to methodology under BRAP 2017-18 had been the inclusion of a feedback exercise wherein feedback was sought on 78 reform points from actual users. The respondent data has been provided by the States/UTs across various categories viz. Architect/ lawyers/ new and existing business and electrical contractors. The reform plan's implementation and evolution has been successful in inculcating among States/UTs' aspiration to improve the business regulatory environment. 3.6 3.6.1 Business Reform Action Plan 2019-20 Assessment under BRAP 2019-20 shall be based only on the feedback received from service users and industries. The draft Action Plan has been thoroughly revised and compiled to include 80 points substantially derived from the 372 points BRAP 2017- 18. The selection of action points was done considering 100 % feedback based scoring and comments received from States. However, the ....
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....following 7 new points related to GST, inspections and contract enforcement have been added: i. ii. iii. iv. V. vi. Eliminate the requirement of Renewal of registration under The Shops and Establishment Act; Set up service centers to assist taxpayers for e-filing of returns under the State/ Union Territory GST Act; Establish a helpline providing basic services such as assisting users in preparing and filing returns under the State/Union Territory GST Act; Constitute an authority for advance ruling under the State Goods Service Tax and publish details of application procedure and checklist on the Department's website; Constitute an appellate authority for advance ruling under the State Goods Service Tax and publish details of application procedure and checklist on the Department's website; Mandate surprise inspection or inspections based on complaints are conducted with specific permissions from the respective Head of Department; vii. Each Commercial Court, Commercial Division, Commercial Appellate Division shall maintain, publish and update every month, statistical data regarding the number of suits, applications and appeals filed and pendency of such cases, status of each case and....
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.... number of cases disposed of. Regulatory Reforms- Creating Ease for Doing Business 34 3.6.2 On 11th October 2018, an 80 point Business Reform Action Plan 2019-20 was shared with States and UTs. The revised plan has been designed to obtain feedback on all reform points. The States/UTs have shared status of implementation on the BRAP Portal. The exercise to obtain user feedback is underway and is expected to be over by March, 2020. Feedback would be sought for BRAP 2019-20 only on those reform points which have been implemented by the States/ UTs and no feedback will be solicited on other points. District Reform Action Plan 3.7 3.7.1 For an entrepreneur, district level functionaries are key touch points and hence a district level reform exercise is the next logical step in the reform agenda. DPIIT has prepared a 218 point District Reform Plan which is spread across 8 areas: Starting a Business for Construction, Urban Local Body Services, Paying Taxes, Land Reform Enabler, Land Administration and Property Registration Enablers, Obtaining Approval for Construction, Miscellaneous and Grievance Redressal/ Paperless Courts and Law & Order. 3.7.2 On 27 February 2018, DPIIT had sought input....
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....s from Sates/UTs on all government services which are provided through the District Administration or wherein districts have a role to play in implementation. Later, a draft District Reform Plan was shared with Central Government Ministries and industry bodies requesting their inputs on 23rd May 2018 and with States/UTs on 20th June 2018. 7 States had provided suggestions viz. Andhra Pradesh, Haryana, Jharkhand, West Bengal, Assam, Chhattisgarh and Karnataka on the same. A detailed discussion with select District Magistrate/ Collectors on the draft plan was held on 2nd August 2018. Subsequently, the final plan was prepared after considering inputs received from above efforts. 3.7.3 The District Plan covers 43 NOCs/ Permissions/Registrations/Certificates which will ease doing business in sectors like retail, education, health, food and beverages, real estate, gems and jewelry, mining and entertainment. 3.7.4 A suggested questionnaire for the feedback for States/UTs has been prepared by DPIIT. The questionnaire is based on the reforms listed in the District Reform Plan. The questionnaire will assess implementation of the Plan by District level functionaries and effectiveness of utili....
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....zation of online systems, adherence to mandated timelines and lack of physical touch-points between applicant and department/agency. States/UTS shall be conducting the feedback exercise in Districts on the basis of a questionnaire. 35 Regulatory Reforms- Creating Ease for Doing Business 4 Chapter 4.1 Startup India The Startup India Action Plan was launched on 16th January, 2016 with the objective of supporting entrepreneurs, building a robust startup ecosystem, and transforming India into a country of job creators instead of job seekers. Department for Promotion of Industry and Internal Trade (DPIIT) acts as the nodal Department for coordinating the efforts of all central government departments and state governments in carrying this plan forward. a 4.1.1 The definition of startups was modified on 19.02.2019 with view to include more entrepreneurs in its ambit. An entity is now considered as a Startup up to ten years from the date of its incorporation/ registration, with an annual turnover not exceeding 100 cr for any of the financial years since incorporation/ registration. 4.1.2 As on 31st December 2019, 26,804 startups across 555 districts have been recognized as startups by DPII....
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....T. An employment data of 3,06,848 jobs has been reported by 24,848 startups with an average number of 12 employees per startup." 4.2 Fund of Funds: 4.2.1 For providing fund support for Startups, the Government has created a 'Fund of Funds for Startups' (FFS) at Small Industries Development Bank of India (SIDBI) with a corpus of INR 10,000 Crore. The FFS shall contribute to the corpus of Alternate Investment Funds (AIFs) for investing in equity and equity 36 linked instruments of various Startups. The FFS is managed by SIDBI for which operational guidelines have been issued. 4.2.2 As on 22nd December 2019, SIDBI has committed 3123.20 Cr to 47 SEBI registered Alternative Investment Funds (AIFs). These funds have raised a corpus fund of 25,728 Cr. *736.76 Cr. have been drawn from the FFS and 2,793.93 Cr. have been invested into 285 startups. 4.3 Relaxed Norms in Public Procurement for Startups: 4.3.1 Provision has been introduced in the procurement policy of Ministry of Micro, Small and Medium Enterprises (Policy Circular No.1 (2)(1)/2016-MA dated 10.03.2016) to relax norms pertaining to prior experience / turnover for Micro and Small Enterprises. 4.3.2 As directed in the circular iss....
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....ued by Department of Expenditure (on 25.07.2016 and 20.09.2016), Central Ministries/ Departments have to relax condition of prior turnover and prior experience in public procurement to all Startups [whether Micro & Small enterprises or otherwise] subject to meeting of quality and technical specifications. Department of Public Enterprises has further endorsed these orders to all Central Public Sector Undertakings (on 08.11.2016). 4.3.3 Also, Rule 173 (i) has been incorporated in GFR, 2017 which provides for relaxation of conditions of prior turnover and prior experience for Startups. Startup India 4.3.4 Rule 170 (i) of GFR 2017 has been amended on 25.07.2017 allowing all Startups as recognized by DPIIT exemption from submission of EMD/Bid Security in public procurement tenders. 4.3.5 GEM Startup Runway, a dedicated corner for startups to sell products & services to Government, has been launched. 2,804 Startups have registered as sellers on GeM. 13,666 orders have been placed to startups. Value of orders served by startups is to the tune of about 463.50 crore. 4.4 Tax incentives: 4.4.1 Three Year Income Tax Exemption: With a view to stimulate the development of Startups in India and....
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.... provide them a competitive platform, the profits of Eligible DPIIT Recognized Startups are exempt from income-tax for a block of 3 years out of 7 years since incorporation under Section 801AC of the Income Tax Act. To avail these benefits, a Startup must get a Certificate of Eligibility from the Inter-Ministerial Board (IMB). 254 startups have been granted income tax exemptions till date. 4.4.2 Tax Exemption on Investments above Fair Market Value: DPIIT recognized startups are exempt from tax under Section 56(2)(viib) of the Income Tax Act when such a Startup receives any consideration for issue of shares which exceeds the Fair Market Value of such shares. The startup has to file a duly signed declaration in Form 2 to DPIIT {as per notification G.S.R. 127 (E)} to claim the exemption from the provisions of Section 56(2) (viib) of the Income Tax Act. With regard to declarations received from entities, furnished in Form 2, intimation regarding receipt of declaration in Form 2 has been mailed in the cases of 1,867 entities, as on 31st of December 2019. 4.5 4.5.1 Legal Support and Fast-tracking examination at Lower Patent costs: The Scheme for Startups IPR Protection (SIPP) for facilit....
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....ating fast-track filing of Patents, Trademarks and Designs by Startups provides for expedited examination of patents filed by Startups. This reduces time taken in getting patents. Startups are eligible for 80% rebate in patent filing fees and 50% rebate in trademark filing fees. Under this, 1,031 facilitators have been empanelled to facilitate the process of filing and acquisition. The facilitators provide legal guidance and handholding through the entire patent acquisition process free of cost. Overall, 1,630 patent applications have been granted 80% rebate on filing fee and 474 applications were granted expedited examination. 2,895 trademark applications have been granted 50% rebate on filing fee. 4.6 Self-Certification Compliance Regime: based 4.6.1 Compliance norms relating to Environmental and Labour laws have been eased in order to reduce the regulatory burden on Startups thereby allowing them to focus on their core business and keep compliance costs low. Ministry of Environment, Forest & Climate Change (MoEF&CC) has published a list of 36 white category industries. Startups falling under the “White category†would be able to self-certify compliance in respect of ....
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....3 Environment Acts - i) The Water (Prevention & Control of Pollution) Act, 1974 ii) The Water (Prevention & Control of Pollution) Gess (Amendment) Act, 2003 The Air (Prevention & Control of Pollution) Act, 1981. 37 iii) Startup India 4.6.2 Further, Ministry of Labour and Employment (MOLE) has issued guidelines to State Governments whereby Startups shall be allowed to self-certify compliance in respect of 6 labour laws. These are effective after concurrence of States/UTs. The Acts are: i) The Building and Other Constructions Workers' (Regulation of Employment & Conditions of Service) Act, 1996 ii) iii) The Inter State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979 The Payment of Gratuity Act, 1972 iv) The Contract Labour (Regulation and Abolition) Act, 1970 v) The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 vi) The Employees' State Insurance Act, 1948. 4.6.3 27 states and UTs have implemented the process of self- certification to startups under 6 labour laws. 9 States (Haryana, Madhya Pradesh, Maharashtra, Rajasthan, Gujarat, Uttar Pradesh, Punjab, Uttarakhand, and Delhi) have integrated their portals with Shram Suvidha Portal. Ove....
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....rall, 169 DPIIT recognized Startups have availed the benefits of self-certification. A list of 64 Startups that have self-certified has been uploaded on the Shram Suvidha Portal. 4.7 4.7.1 Setting up of Incubators and Tinkering Labs Atal Innovation Mission (AIM) has selected 102 incubators across the country to provide financial support through grants in aid. Under this, 38 Atal Incubation Centers (AICs) and 9 Established Incubation Centers (EICs) are operational across the country. A total of 139.91 Cr has been disbursed to these 38 AICs and 9 EICs. 4.7.2 More than 620 Startups have been incubated in the AICS/EICs out of which 121 are women-led start-ups. More than 150 MSME's have been supported to build business sustainability. Additionally, more than 500 mentors have been on-boarded by the AICS/ EICs to guide the Startups. 4.7.3 Further, to promote entrepreneurship at the grassroots level, 8,878 schools have been selected across the country for establishing Atal Tinkering Labs(ATLs), out of which 4,020 have already received Rs.12 Lakhs grant each and are operational. A total of 482.40 Crore grant has been given to Atal Tinkering Labs. 4.7.4 NITI Aayog has launched Innovation Awa....
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....rds through the challenge route by the name of Atal New India Challenges (ANIC). For this, call for applications in 24 focus areas across 5 ministries was conducted and 26 Applicants have been shortlisted for funding and handholding support and additional 26 applicants have been shortlisted for handholding support. 4.8 Building Innovation Centre at National Institutes 4.8.1 11 Technology business Incubator (TBIS) have been approved for set up by Department of Science and Technology (DST). 42.23 Crore has been sanctioned and 18.69 Crore has already been disbursed to various TBIs. 21 new TBIs (over and above 15 TBIs envisaged) and 5 Center of Excellence (COEs) are proposed to be established. 4.9 4.9.1 Research Parks The objective of setting up Research Parks is to propel successful innovation through incubation and joint Research and Development (R&D) efforts between academia and industry. 8 new Research Parks are being Startup India 38 setup under Startup India initiative. *575 Crore have been sanctioned and Rs.250 Crore has already been disbursed. The Research Park at IIT Gandhinagar is expected to be operational by January 2020. 4.10 Promoting Startups Biotechnology Sector in 4.10....
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.....1 With the aim to foster and facilitate bio entrepreneurship, Bio Bio clusters, Bio incubators, Technology transfer offices and bio connect offices are being established in research institutes and universities across India. Seed fund and equity funding support is also provided to bio tech startups under the initiative. Kalyani, Pune are 4.10.2 Four bio-clusters at Bangalore, Faridabad, and operational. 401 crore have been sanctioned, and 300 crore has been disbursed to these bio-clusters. In 2019, EFC has been approved for the establishment of 10 URJIT clusters- (University Research Joint Industry Translational Cluster). As per this model, the universities in the region would become central part of the cluster approach. 41 bio- incubators have been supported and all of them are operational. Rs.272.26 crore have been sanctioned and 193.88 crore have already been disbursed. Five bio-connect offices have been established as following: I) CCAMP, Bengaluru with California Institute for Quantitative Biosciences (QB3) ii) CCAMP Sister Innovation HUB with Roslin Innovation Centre, University of Edinburgh, UK iii) iv) v) - CEIIC BiONEST with European Union KIIT BiONEST – with TECHN....
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....OPORT SA - BELVAL Business Incubator, Luxembourg KIIT BioNEST - with Start-Life Centre, Wageningen University Netherland 4.10.3 The target for 2020 - 2021 is to set up 8 additional Bio-connect offices. Four BIRAC Regional Centres have already been set up at Hyderabad, Bengaluru, Bhubaneswar, and Pune. For this, 16.95 crore have been sanctioned and 9.42 crore have been disbursed. - 4.10.4 BIRAC Seed Fund – The basic idea of Seed Fund is to provide capital assistance to Startups with new and meritorious ideas, innovations and technologies. Thus, the proposed seed support is positioned to act as a bridge between promoters' investment and Venture investment. 4.10.5 The Funds are disbursed to Bio- Incubators who in turn provide seed funding to their incubatees. So far, 150 crore has been committed to Alternate Investment Funds (AIFs) and 25.1 crore has been disbursed. BIRAC'S SEED Fund with 14 Bio-incubators as Seed fund partners are operational, Rs.26 Crores have been sanctioned for BIRAC SEED Fund and INR 18.3 Cr has been disbursed. 4.11 Startup India Portal 4.11.1 Startup India web portal and mobile app were developed and operationalized on the 31st of March, 2016. The portal,....
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.... www. startupindia.gov.in has also been merged with the Startup India Hub platform which was launched on 19th March, 2017. The portal serves as a virtual incubator to Startups which provides access to information, knowledge, industry programmes, Government schemes, and networking opportunities within Startup community and provides a one-stop digital platform for Startup aspirants, Startups and Ecosystem builders. The portal hosts Startups, investors, funds, mentors, incubators, accelerators, corporates, academia, Government bodies and more. The online hub also hosts pro-bono services, knowledge 39 Startup India Startup India modules and other relevant government schemes for all Startups and startup aspirants. i. ii. iii. iv. V. 3,67,773 users have registered on the website, as on 29th December 2019 A total of 26,804 Startups have been recognized by the portal till Dec 31, 2019 A total of 254 Startups have been provided Tax exemption under Section 80-IAC of the Income Tax Act A total of 1,63,272 queries have been addressed through the Startup India portal and Startup India's Twitter seva, as on 29th December 2019 10 International bridges have been established with the aim to provide....
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.... market opportunities for Startups in the respective countries (Portugal, Israel, Netherlands, Korea, Finland, Singapore, Sweden, UK, Japan, and Russia) till Dec 31, 2019 4.11.2 Additionally, various corporate programs and engagements are facilitated by the Startup India team. The objective of the corporate programs is to channelize resources such as mentorship, market access programs and financial support - either by way of investor interest or incubation grants. The Startup India portal is a one-stop shop for all such programs in the ecosystem. More than 130 Innovation Hunts and programs have been hosted on the Startup India portal by various government departments and corporates. 4.12 Learning and Development Program 4.12.1 One of the marquee programs on the Startup India platform is a 4-week learning and development course which covers 7 topics to educate Startups and aspiring entrepreneurs through various stages of their entrepreneurial journey. The course has been accessed by over 2,57,660 aspiring entrepreneurs. 4.13 Start Up India Yatra 4.13.1 Startup India launched Startup India Yatra in 2017 to promote entrepreneurship in rural and non-metro regions across States. Under t....
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....his program, grassroot Startup aspirants were provided incubation, mentorship and funding support. As part of the program, bootcamps were organized in tier-2 and tier-3 districts of the state where participants attended ideation workshops and pitch their ideas. The ideas shortlisted from these bootcamps further attend a two-day acceleration program. 4.13.2 Startup Yatra has been conducted across 23 States in 220 districts impacting 78,346 aspiring entrepreneurs. A total of 1,424 incubation offers worth 105.73 Lakhs have been given to the startups. 4.14 4.14.1 With the aim to foster competitiveness and to propel the States and Union Territories to work proactively towards promotion of their Startup Ecosystems, the States' Startup Ranking Framework was launched by Department for Promotion of Industry and Internal Trade (DPIIT) on 6th February 2018. A total of 27 States and 3 UTs participated in this exercise. The participating States and UTs were evaluated on a score of 100, against 38 Action Points categorized into 7 areas of intervention of the ranking framework. States' Startup Ranking 4.14.2 As a result of SRF 2018, new Startup policies were launched, old and archaic laws were ab....
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....olished, new Government orders were issued and many Startups were supported .Some of the major impacts of the ranking exercise include Implementation of Startup Policies in 25 States, Seed Funding 40 40 to 3213 Startups; Funding of 163 Startups through Venture Funds; 17 States announcing incentives for women entrepreneurs; Incubation area of 10.2 lakh Sq.ft supported by State Governments; Establishment of 596 Entrepreneurship Cells across 340 districts; Registration of 1996 mentors across 19 States and organization of 233 Startup events across 21 States. 4.14.3 The Department has launched States' Startup Ranking Framework for 2019 with the key objective to encourage States and UTs to take proactive steps towards strengthening the Startup ecosystems within their jurisdictions. Details of the framework have already been shared with all the state governments. The framework would evaluate the progress from 1st May 2018 to 30th September 2019. Feedback and evaluation started immediately thereafter, and the evaluation exercise is underway. 4.15 Regulatory Reforms 4.15.1 32 regulatory reforms have been undertaken since January 2016 for enabling small businesses or Startups across the coun....
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....try. 4.15.2 In order to improve regulatory regime, an institutional mechanism has been established within Startup India. A Committee of Secretaries (COS) chaired by Finance Secretary, for dealing with regulatory issues facing Startups, has been constituted. 4.15.3 Following is the list of regulatory reforms undertaken from January 2016 (till 31st December 2019) for enabling small businesses or Startups across the country: 4.15.3.1 Amendments made by RBI: i. Startup enterprises permitted to access loans under ECB framework up to USD 3 ii. iii. iv. million (Oct, 2016) A SEBI registered Foreign Venture Capital Investor (FVCI) may contribute up to 100% of the capital of an Indian company engaged in any activity mentioned in Schedule 6 of Notification No. FEMA 20/2000, including startups irrespective of the sector in which it is engaged, under the automatic route. (Aug, 2017) An Indian startup having an overseas subsidiary, may open a foreign currency account with a bank outside India for the purpose of crediting to it foreign exchange earnings out of exports/sales made by the said entity and/ or the receivables, arising out of exports/ sales, of its overseas subsidiary (June, 2016) SOF....
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....TEX form filed by software exporters moved online (Feb, 2019) 4.15.3.2 Amendments made by SEBI in SEBI (Alternate Investment Funds) Regulations, 2012: i) ii) iii) Lock in period for investments made by an Angel Fund reduced to 1 year from 3 years as amended by the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2016, w.e.f. 04-01-2017 Angel Funds are allowed to invest in overseas venture capital undertakings upto 25% of their investible corpus in line with other AIFs as provided by the SEBI (Alternative Investment Funds) (Amendment) Regulations, 2016, w.e.f. 04-01-2017 The upper limit for number of angel investors in a scheme is increased from forty nine to two hundred as amended by SEBI (Alternative Investment Funds) (Amendment) Regulations, 2016, w.e.f. 04-01-2017 41 Startup India Startup India iv) v) The requirements of minimum investment amount by an Angel Fund in any venture capital undertaking is reduced from fifty lakhs to twenty five lakhs as amended by SEBI (Alternative Investment Funds) (Amendment) Regulations, 2016, w.e.f. 04-01-2017 Issue of the "Operating Guidelines for Alternative Investment Funds in International Financial Services Centres" by SEBI (Nov,....
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.... 2018) 4.15.3.2 Amendments made by Ministry of Corporate Affairs in Companies Act: i. ii. The financial statement, with respect to private company (if such private company is a start-up) may not include the cash flow statement (June, 2017) A private company, which is considered as a start-up for a period of five years from the date of its incorporation, is also allowed to accept deposits from members without any restriction on the amount (Sep, 2017) iii. Startup defined for the purpose of Companies Act, 2013 - As per the definition, a start-up company means a private company incorporated under the Companies Act, 2013 and recognised as a "start-up" in accordance with the notification issued by the Department for Promotion of Industry and Internal Trade (June, 2017) iv. V. Exemption from procedural compliance (e.g. such as issue of an offer circular or creation of a deposit repayment reserve) for raising deposits from shareholders (June, 2017) In relation to a private company (if such private company is a start-up), the annual return shall be signed by the company vi. secretary, or where there is no company secretary, by the director of the company (June, 2017) A private company (if ....
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....such private company is a start-up) is required to conduct at least one meeting of the Board of Directors has been conducted in each half of a calendar year and the gap between the two meetings is not less than ninety days (June, 2017) vii. Name Reservation for Company incorporation: MCA has substituted Rule 8, Companies (Incorporation) Rules, 2014 with Companies (Incorporation) 5th Amendment Rules, 2019 which provides for new regulations on resemblance with an existing company name, new categories of undesirable names of a company and list of words which can be used only after obtaining approval from Central Government (May, 2019) viii. Amendment in Companies (Share Capital and Debentures) Rules, 2014: The Ministry of Corporate Affairs issued a notification on 16th August, 2019 increasing the period in which ESOPS could be granted to promoters and directors (holding more than 10% equity) of Startups, from 5 years to 10 years from the date of incorporation and thereby aligned the provisions of the Companies (Share Capital and Debentures) Rules with the provisions referred to in the DPIIT notification dated 19th Feb, 2019. The notification also escalated the limit on shares with Dif....
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....ferential Voting Rights in the Company from 26% of the total post-issue paid up equity capital of the Company to 74% of the total voting power. Further, the condition for the company to have consistent track record of distributable profits for the last three 42 42 ix. years for issue of DVR shares has been removed. CSR 2% fund can be spent on incubators funded by Central or State Government or any agency or Public Sector Undertaking of Central or State Government, and, making contributions to public funded Universities, IITs, National Laboratories and Autonomous Bodies (established under the auspices of ICAR, ICMR, CSIR, DAE, DRDO, DST, Ministry of Electronics and Information Technology) engaged in conducting research in science, technology, engineering and medicine aimed at promoting SDGs. 4.15.3.4Amendments i) ii) iii) iv) made by Department of Revenue in Income Tax Act: In the case of a domestic company, where its total turnover or the gross receipt in the previous year does not exceed four hundred crore rupees, income tax shall be charged at the rate of 25 percent of the total income (Feb, 2018) Definition of eligible business as stated in Section 80-IAC aligned with Startups d....
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....efinition (April, 2018) Introduction of Section 54EE in the Income Tax Act, 1961: Exemption from tax on long-term capital gain if such long-term capital gain is invested in a fund notified by Central Government. The maximum amount that can be invested is INR 50 lakh (May, 2016) Amendment in Section 54GB of Income- tax Act: Exemption from tax on capital gains arising out of sale of residential house or a residential plot of land if the amount of net consideration is invested in prescribed stake of equity shares of eligible Startup for utilizing the same for 43 v) vi) purchase of specified asset (Feb, 2016) MAT tax credit allowed to be carried forward up to fifteenth assessment years instead of ten assessment years (2017) Exemption under section 80-IAC of Income Tax Act: Exemption to eligible Startup for any 3 consecutive assessment years out of 7 years (earlier 5 years) beginning from the year in which such eligible Startup is incorporated (April, 2018) vii) Exemption from tax under the provisions of section 56(2)(viib) to Startups for issue of shares above fair market value on the basis of a self-declaration to the Central Board of Direct Taxes. Here the aggregate amount of paid up....
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.... share capital and share premium of the startup after issue or proposed issue should not exceed INR 25 Crores (Feb, 2019) viii) Taxation of convertible notes - Period for which a bond, debenture, debenture- stock or deposit certificate was held prior to conversion shall be considered for determining the period of holding of such shares or debentures acquired upon conversion (March, 2016) ix) x) Amendment in Section 54GB of Income Tax Act: (August 2019) a) b) The condition of minimum holding of 50% of share capital or voting rights in the start-up relaxed to 25% Extension of period under which benefit under section 54GB from for sale of residential property can be availed up to 31st March, 2021 Amendment in Section 79 of Income Tax Act (August 2019): Startups to carry forward their losses on satisfaction of any Startup India Startup India xi) one of the two conditions: 4.15.3.5 Ministry a) Continuity of 51% shareholding/ voting power or i) b) Continuity of 100% of original shareholders Pass through of losses allowed to Investment Funds i.e. Category I and II AIF similar to pass through of income. These amendments will take effect from the 1st April, 2020 and will, accordingly, apply....
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.... in relation to the assessment year 2020-21 and subsequent assessment years (July 2019) xii) The investment made by Venture Capital Fund of Category-I AIF in a startup was exempted from the applicability of the provisions of section 56(2)(viib) of the IT Act. This exemption has been extended to all sub-categories of Category-I AIF and Category-II AIF (July 2019) of Electronics and Information Technology (Meity) Removal of clause from Electronic Development Fund stating that if a fund draws from Fund of Funds then they cannot draw from EDF and vice versa (Nov, 2018) 4.15.3.6 Department for Promotion of Industry and Internal Trade i. Amendment in the definition of a Startup by way of a notification issued by DPIIT in this regard. Now, an entity shall be considered as a Startup upto a period of ten years from the date of incorporation/ registration and turnover of the entity for any of the financial years since incorporation/ registration has not exceeded one hundred crore rupees. Earlier, the criteria for period was seven years and turnover was twenty five crore rupees. (Feb, 2019) 44 5 Chapter Protection of Intellectual Property Rights 5.1 India - A Robust, compliant IPR Regime TRIP....
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....S i. The Patents Act, 1970 ii. The Trade Marks Act, 1999 iii. The Copyright Act, 1957 judicial iv. 5.1.1 India has a well-established legislative, administrative and framework to safeguard Intellectual Property Rights (IPRs), which meets its international obligations while utilizing the flexibilities provided in the international regime to address its developmental concerns. India has a Trade Related Aspects of Intellectual Property Rights (TRIPS) compliant, robust, equitable and dynamic IPR regime. 5.1.2 The Indian IP system maintains a fine balance between private rights through IPRs on one hand, and rights of the society as public interest on the other hand. 5.1.3 TRIPS Agreement has allowed policy space to countries to evolve a regime that best suits their conditions. This policy space is a sine qua non for sustainable development of the country. 5.1.4 India is a party to Doha Declaration on the TRIPS Agreement and Public Health which clarifies that TRIPS agreement does not, and should not, prevent members from taking measures to protect public health. 5.2 Intellectual Property Legislations administered by Department The following Acts related to IPRS are administrated by this ....
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....Department: 45 V. vi. 5.3 The Geographical Indications of Goods (Registration & Protection) Act, 1999 The Designs Act, 2000 The Semiconductor Integrated Circuits Layout-Design Act, 2000. Organization Structure 5.3.1 The Department for Promotion of Industry and Internal Trade (DPIIT) is nodal department for administration of various laws related to Intellectual Property Rights: Patents, Trade Marks, Industrial Designs, Geographical Indications of Goods, Copyrights, Semiconductor Integrated Circuit Layout Designs. DPIIT is also the nodal Department for vetting of MoUs for the Cabinet etc. entered into by various Ministries/ Departments of Government of India from IPR angle, as also international negotiations on IPR and for dealing with World Intellectual Property Organization (WIPO). 5.3.2 The office of the Controller General of Patents, Designs and Trademarks (CGPDTM), a subordinate office under DPIIT, carries out statutory functions related to grant of Patents and registration of Trademarks, Designs and Geographical Indications. The registration of Copyrights is administered by the Registrar of Protection of Intellectual Property Rights Copyright Office, working under the CGPDTM. I....
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....t has offices at Delhi, Kolkata, Mumbai, Chennai and Ahmedabad, while the Central IP Training Academy is at Nagpur. 5.3.3 The Intellectual Property Appellate Board (IPAB), established in September 2003, is the appellate tribunal to hear appeals against decisions of the Controller of Patents as also Registrar of Trade Marks and Geographical Indications. Vide the Finance Act, 2017, the Copyright Board has also been merged in the IPAB. It is headquartered at Chennai. 5.4 Other IP Legislations 5.4.1 DPIIT also interacts with various other Departments that administer statutes which have elements of innovation and IPR, such as,: i. The Biological Diversity Act, 2002 administered by the Ministry of Environment, Forest and Climate Change, implemented by the National Biodiversity Authority (NBA); 5.5 Strengthening of Institutional Mechanism 5.5.1 All IPRs under one umbrella: The administration of Copyright Act, 1957 and Semiconductor Integrated Circuits Layout- Design Act, 2000 has been transferred to DPIIT. This has enabled an integrated approach and synergy between different IP offices and Acts. 5.5.2 One Appellate Board: Under the Finance Act 2017, the Copyright Board has also been merge....
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....d with the Intellectual Property Appellate Board (IPAB). 5.6 National IPR Policy 5.6.1 A comprehensive National IPR policy was adopted in May 2016, to stimulate innovation and creativity across sectors, and provide a clear vision regarding IPR issues. The Policy is available at http://dipp.nic.in. 5.6.2 Objectives enshrined in the policy are as under: ii. IPR Awareness - Outreach and Promotion To create public awareness about the economic, social and cultural benefits of IPRs among all sections of society. Generation of IPRs - To stimulate the generation of IPR. i. ii. The Protection of Plant Varieties and Farmers' Rights Act, 2001- administered by the Ministry of Agriculture and Farmers Welfare, implemented by Protection of Plant Varieties And Farmers' Rights Authority; iii. iii. The Competition Act, 2002-administered by the Ministry of Corporate Affairs and implemented by the Competition Commission of India. Legal and Legislative Framework To have strong and effective IPR laws, which balance the interests of rights owners with larger public interest. - iv. 5.4.2 Trade secrets are protected in India on the basis of the principles of equity and/ or through common law approach. The ....
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....Indian courts regularly pass orders/ Judgements protecting trade secrets / confidential information. modernize Administration and Management oriented IPR administration. Commercialization of IPRs - Get value for and strengthen - To service- V. IPRs through commercialization. vi. Enforcement and Adjudication strengthen the enforcement To and Protection of Intellectual Property Rights 46 adjudicatory mechanisms for combating IPR infringements. vii. Human Capital Development To strengthen and expand human resources, institutions and capacities for teaching, training, research and skill building in IPRs. 5.7 5.7.1 Cell for IPR Promotion and Management (CIPAM) CIPAM has been established as a professional body under the aegis of the DPIIT to ensure focused action on issues related to IPRS and address the 7 identified objectives of the policy. CIPAM also assists in simplifying and streamlining of IP processes, apart from undertaking steps for furthering IPR awareness, commercialization and enforcement. 5.8 IP Awareness: Activities by CIPAM 5.8.1 IPR Awareness for youth 5.8.1.1 IPR Awareness programs have been conducted in various schools and colleges/ universities pan India, including Ata....
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....l Tinkering Labs. Many of these programs have also been conducted online to ensure wider coverage. Over 1 lakh students have been covered to date. 5.8.1.2 In addition to the awareness program, competitions have been launched in conjunction with industry for school and college students for developing mobile apps, videos and comics. 5.8.1.3 IPR cells are being established in colleges/universities; to date, 80+ cells have been established. State Governments have also been taking keen interest in strengthening the IPR regime. 5.8.1.4 Content on IPR has been included in the NCERT curriculum of Business Studies for Commerce stream. Also, a chapter on 'IPR, Innovation & Creative Works' is being included in NCERT's "Handbook on Entrepreneurship 47 for Northeast Region (NER)". Work is ongoing to include IPRs in other academic streams too. Content on IPRs has also been included as part of the curriculum for legal studies subject in CISCE. cpam Meet IP Nani - a tech-savvy smart, intelligent grandmother who helps the government and enforcement agencies in combating IP Grimes HELLO SMILE! 5.8.1.5 India's first Intellectual Property Rights Mascot - IP Nani – has been launched. DPIIT colla....
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....borated with European Union Intellectual Property Office (EUIPO) for a series of animated videos on Intellectual Property Rights for students. The videos can be accessed at cipam.gov.in/indias-first-ip- mascot/. 5.8.1.6 A Training of Trainers Module (beta version) to aid school teachers in teaching basic concepts of Intellectual Property using CIPAM's content has been created. An IPR Activity Book titled 'Let's Have Fun With IP' has also been curated in association with IP law firms to aid trainers in conducting IP related activities for the youth. 5.8.1.7 These resources have been used in teacher training programs taken up in collaboration with educational institutions such as National Institute of Open Schooling, Army Welfare Education Society and Navodaya Vidyalaya Samiti. Till date 700+ teachers have been trained on the subject of IPR awareness with the objective for them to educate students on the same. 5.8.1.8 Recently, CIPAM has undertaken the initiative of utilizing community radio to reach out to the youth. On June 7, 2019, the first radio talk on IPRS was hosted in association with NIOS' community Radio, Radio Vahini. Protection of Intellectual Property Rights Protection ....
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....of Intellectual Property Rights Radio talks were also hosted on every first Friday for the month of July, August and September, 2019. 5.8.1.9 A 20-minute tutorial video on overview of IPRs featuring IP Nani has also been created in collaboration with Qualcomm. 5.8.1.10 The draft "Model Guidelines on the Implementation of IPR Policy for Academic Institutions" have been put out for public comments. This is inline with the National IPR objective of encouraging the formulation of an IP Policy/Strategy in Higher Education, Research & Technical Institutions. The guidelines provide detailed provisions for ownership, commercialization and encourage entrepreneurship at the institutional level. 5.8.1.11 An article titled 'Thinking beyond the ordinary' was published in the April, 2019 edition of Teacher Plus magazine. Following this, the collaboration has extended for publishing six articles in the subsequent series of the magazine discussing different types of IP. MAKE IN INDIA 5.8.1.12 An online IP Learning Platform- L2Pro has been launched in collaboration with NLU, Delhi and Qualcomm which would provide students and industry (esp. SMEs) an easily accessible IP learning forum. This would a....
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....lso help them gain access to tools which aid them to bring innovations quickly to the market. 48 5.8.2 IPR Awareness in the Industry & MSME 5.8.2.1 CIPAM in collaboration with Ministry of Micro, Small and Medium Enterprises (MSMEs) has organised intensive IPR trainings for MSME Officers pan India; they can, in turn, provide IPR related services to MSMEs. 5.8.2.2 Awareness programmes have also been organised in MSME clusters. Over 125 such awareness programmes have been conducted. 5.8.2.3 CIPAM has made a Trade Secret Toolkit to guide Indian businesses especially Micro, Small & Medium Enterprises (MSMEs) and Start-ups regarding protection of trade secrets. 5.8.2.4 Recognising the role played by MSMEs in nurturing innovation and creativity in a knowledge economy, the Government proposed to reduce fees for various IPR. 5.8.3 Training Program for Enforcement Agencies 5.8.3.1 So far, 87 training programs on IP Enforcement have been conducted for various law enforcing agencies (Police, Judiciary and Customs) by CIPAM, pan India in association with IP experts from law firms and the industry. In addition, an advisory has been issued by the Ministry of Home Affairs to all State Police Acade....
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....mies to incorporate IPR in their training curriculum for both regular and in-service police officers. 5.8.3.2 CIPAM is collaborating with National Academy of Customs, Indirect Taxes & Narcotics (NACIN), Faridabad for training Custom Officials on 'Intellectual Property Rights: Scope, Importance and Objective'. Moreover, 13 training programs have been organized for custom officials. 5.8.3.3 Additionally, training of Judges on IP Enforcement and adjudication has also been undertaken in collaboration with the National Judicial Academy (NJA), Bhopal. 5.8.3.4 CIPAM is also in touch with various State Judicial Academies for conducting training programs for Judges at district and lower courts. 5.8.4 IPR Enforcement Toolkit for Police 5.8.4.1 CIPAM in association with Federation of Indian Chambers of Commerce & Industry (FICCI) has made an IPR Enforcement Toolkit for Police, which was released by Commerce and Industry Minister. 5.8.4.2 This Toolkit aids police officials in dealing with IP Crimes, in particular, Trademark counterfeiting and Copyright piracy. A similar Toolkit for Customs is in the process of being made. 5.9 IPR Awareness: IP Outreach Activities by the O/o CGPDTM 5.9.1 The of....
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....fice of CGPDTM provides financial support for conducting IP Awareness programmes. National and International symposia/seminar/workshops on IP, roving seminars on PCT/Madrid Protocol are conducted in collaboration with WIPO and JPO to facilitate the Indian stakeholders to protect their IPRs on the global platform. IPO Offices are nominated as resource persons for the IP-awareness programmes conducted by universities, industries, CSIR, NRDC etc. are 5.9.2 Annual National IP Awards distributed every year on 26th April on the occasion of World IP-day. Intellectual Property Offices at all locations also organise various activities on the occasion of World IP-Day. 5.9.3 IP awareness and training programmes are regularly conducted at Rajiv Gandhi National Institute of Intellectual Property Management (RGNIIPM) Nagpur, which has been specially established to strengthen IP awareness and also education and research in the Country. 5.9.4 In collaboration with Industry Associations, 114 awareness programmes were held by O/o CGPDTM in 2018-19 for schools, universities, innovation centres, startups, bar associations, enforcement agencies and industries as a part of awareness campaign, which incl....
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....udes 59 programmes conducted for schools. 5.9.5 During 2019-20, the office of CGPDTM has conducted 45 IP awareness programmes up to December 2019 for University Technical Institutions Women University, Startups/ Innovation Centers /MSME/Industrial clusters and enforcement agencies in association with industry associations like CII, FICCI, CWEI, ASSOCHAM and PHD Chambers. Also, 30 IPR awareness programs have been organized by the office of CGPDTM in various schools in the country during the year 2019- 20. Besides, 8 Roving Seminars on PCT have been conducted so far in collaboration with WIPO. 5.9.6 During 2018-19, Geographical Indications Registry has either conducted/ participated in 22 awareness programmes/ seminars which includes 16 programmes for Protection and Promotion of GI involving different products, 5 programmes for MSME and India International Trade Fair. 5.9.7 During 2019-20, GIR participated in 18 awareness programmes/Seminars/ workshops on Gl at different locations in the country for Protection and Promotion of Gl involving different products, which includes 6 programmes conducted for MSME. 5.10 Combating Online Piracy 5.10.1 To counter online piracy, CIPAM collaborat....
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....ed with National Internet Exchange 49 49 Protection of Intellectual Property Rights Protection of Intellectual Property Rights of India (NIXI) and Maharashtra Cyber and Digital Crime Unit (MCDCU), to suspend over 380 infringing websites on the basis of incomplete KYC (or WHOIS norms). 5.10.2 In addition, anti-piracy videos were shot with film stars such as Mr. Amitabh Bachchan, Ms Vidya Balan etc.; these are screened in cinema halls and on TV. 5.11 Technology and Innovation Support Centres (TISCs) 5.11.1 A Service Level Agreement (SLA) has been signed between DPIIT and the World Intellectual Property Organisation (WIPO) for establishing Technology and Innovation Support Centre (TISC) network in India. So far, 6 TISC have been established: PIC Chandigarh; Anna University, Chennai; NRDC- IPFC Visakhapatnam; PIC Kerala; GUJCOST, Gujarat and RAJCOST, Rajasthan. 9 more TISCS have been approved. 5.12 Global Innovation Index (GII) 5.12.1 In the past 4 years, India's rank in the Global Innovation Index has improved from the 81st rank in 2015 to the present 52nd rank in GII 2019 report. 52 57 60 2019 66 2018 81 2017 2016 2015 5.12.2 India maintains the 1 st rank in the Central and South Asi....
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....a region and remains the top exporter of ICT services according to the report. 5.13 GLOBAL INNOVATION IN EX Promotion and Marketing of Geographical Indications 5.13.1 An Action Plan for promotion of Geographical Indications of India has been Logo and Tagline Special campaign to promote GIs launched MYSORE ROSEWOOD INLAY Kullu Shawls B where the perse of the Darjeeling Tea Hullu abuwis furve the same looks from both the sides due to its waving, designing and colour combination which feature of Kullu Shund qu pan Mysore Agarbathi My Agathi hasarch incense sticlo mandactured atysare by ng locally grown ingredients which was Karnataka ber pam Wooden Mask of Kushmandi Mengal is f se that is used in household for the decoration purposes cpam RGNIIPM Comprehensive E-Filing Public Search Dynamic Utilities Journals Annual Reports Vacancy Announcement E-Gateways Publication Acts & Rules Manuals/Guidelines sing Controller's Decision Copyright Office SICLDR ISA/IPEA Resources About Us Protection of Intellectual Property Rights Protection of Intellectual Property Rights redesigned to make it more informative, interactive and user-friendly. A comprehensive and dynamic Patent Search Portal has b....
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....een developed on the IPO website. The status of patent applications including publication, examination, grant and renewal, as well as all post-publication patent documents, are available freely for public search through this portal. 5.19.3 Infrastructure Development: Four state of the art, modern and integrated Intellectual Property Office buildings have been constructed for housing the Patents, Designs, Trademarks and Geographical Indications, Copyrights and Semi-conductor Integrated Circuits Layout-Design, offices at New Delhi, Kolkata, Ahmedabad, Chennai and Mumbai. 5.19.4 ISA/IPEA Building Delhi: The ISA/ IPEA Building, constructed as an extension to IPO building at Dwarka, Delhi is fully functional and has been instrumental in establishing India as a competent office in the international arena. 5.19.5 TMR Complex Ahmedabad: A new building has been constructed through NBCC at Ahmedabad for accommodating Trade Marks Office and Intellectual Property Office Archives. 5.20 Geographical Indications Registry (GIR) 5.20.1 The GIR is a statutory organization setup for the administration of the Geographical Indications of Goods (Registration & Protection) Act, 1999 which came into force....
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.... on 15th September, 2003. A total of 361 Geographical Indications (Gls) have been registered as on 31-12-2019 in India, including 14 foreign products. 5.20.2 Apart from registration of Gls and authorised users of Gls, the registry has also actively participated in several awareness programmes on promotion of Indian Gls, exhibitions and seminars. 5.21 5.21.1 Copyright Office The administration of the Copyright Act, 1957 along with related matters has come under the purview of the Department of Industrial Policy & Promotion w.e.f. 17.03.2016, consequent to amendment in the Government of India (Allocation of Business) Rules, 1961. 5.21.2 The Copyright office was established in 1958 under section 9(1) of the Copyright Act, 1957. It is situated in Delhi. The main function of the Copyright Office is to undertake registration of copyrights. Copyright subsists in the following classes or works: i. ii. iii. Original literary, dramatic, musical, and artistic works; Cinematographic films; and Sound Recording 5.21.3 Digitization of Records of Copyright Office for the period from date of inception i.e. 1958 till 2015 have been completed. 5.21.4 Improvement in website (www. copyright.gov.in) inc....
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....reased transparency by means of publishing of entries in register of Copyrights and new applications. 5.21.5 Pendency in examination of new applications was reduced to about one month, which being the mandatory waiting period for inviting objections to new applications. This trend has been maintained in 2019-20 also. 5.21.6 India acceded to two WIPO treaties on Copyrights i.e. WIPO Copyright Treaty & WIPO Performances and Phonograms Treaty in 2018. The treaties came into force on 25th December 2018. 54 54 5.22 Semi-Conductor Integrated Circuits Layout Design Registry (SCILDR) 5.22.1 The objective of implementing Semi-Conductor Integrated Circuits Layout Design Act 2000 is to act as a catalyst for generation of Intellectual Property relating to Semiconductor Integrated Circuits Layout Designs. The Registry was established with Head Office at Ministry of Electronics and Information Technology (MeitY), the erstwhile DeitY, vide notification dated 1st March 2004 and was operationalised w.e.f. 1st May 2011. a 5.22.2 In order to bring all IPR- related activities under single umbrella, administration of the Semiconductor Integrated Circuits Layout Design (SICLD) Act 2000 and the semicondu....
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....ctor Integrated Circuit Layout Design (SICLD) Rules 2001 has been transferred to this Department in December 2016, consequent to amendment in the Government of India (Allocation of Business) Rules, 1961. 5.22.3 The Registry examines layout designs of the Integrated circuits and issues Registration Certificate to the original layout designs of semiconductor integrated circuits. The SICLD Registry is propagating the importance of semiconductor IC design registration. Till 2019, eight SICLD applications have been filed for registration of which two have been registered. 5.23 Intellectual Property Appellate Board (IPAB) 5.23.1 Intellectual Property Appellate Board (IPAB) has been established in the year 2003, under Section 84 of the Trade Marks Act, 1999. The Board hears appeals against the decision of Controller of Patents under the Patents Act, 1970 and Registrar/Asst. Registrar of Trade Marks under the Trade Marks 55 Act, 1999 and Geographical Indication cases under the Geographical Indication & Protection Act, 1999. The Copyright Board and Plant Varieties Protection Appellate Tribunal function under the ambit of IPAB in accordance with their respective Acts and Rules. 5.23.2 Presen....
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....tly, IPAB has its Headquarters at Chennai and conducts its Circuit Bench sittings periodically at Ahmedabad, Delhi, Kolkata and Mumbai. 5.24 Facilities for Startups 5.24.1 Patents (Amendment) Rules 2016, enacted on 16th May 2016, provides fee concession to startups in respect of their patent applications. Startups have to pay all patent fees including filing fee at par with a natural person only; thereby providing 80% fee concession in patent fees as compared to other legal entities. Further, expedited examination is also allowed for startup patent applications. 5.24.2 Similarly, Trade Marks Rules, amended with effect from 6th March 2017, provides 50% fee concession for startup applications. 5.25.3 Till 31st December 2019, applicants for 2632 new startup patent applications have availed benefit of 80% fee reduced in filing, while 5137 trademark applications filed by startups have been given 50% fee concession. 5.24.4 Scheme for Facilitating Startups Intellectual Property Protection (SIPP) for benefit to Facilitators of startup applications in Patents, Designs and trade Marks has been extended for 3 years. Till 31st December 2019, 211 facilitators in Patents and Designs and 241 faci....
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....litators in Trademarks have been registered. 5.24.5 Till 31st December 2019, 789 Startups have submitted request for expedited examination under Rule 24 (C) of Patent (Amendment) Rules 2016. First examination Protection of Intellectual Property Rights report has been issued in case of 689 applications and 269 patents have been granted. 5.25 Madrid Protocol for International Registration of Trademarks 5.25.1 India has acceded to the Madrid Protocol, which is a simple, facilitative and cost-effective system for international registration of trademarks. 5.25.2 Till 31st March 2019, 62041 international applications seeking protection of trademarks in India have been forwarded by WIPO to the Indian Trademark Office for confirming protection of such marks in India. 5.25.3 Further, up to 31st December 2019, 72532 such applications have been forwarded by WIPO. On the other hand, Indian Trade Marks Office received 1585 Indian applications for international registration of trademarks under the Madrid Protocol, out of which 1484 applications have been certified and forwarded to the WIPO and 1062 such applications have been registered at the International Bureau of WIPO. 5.26 5.26.1 on 5.27 De....
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....signs International Search Authority and International Preliminary Examining Authority 5.27.1 India started functioning as an International Search Authority/ International Preliminary Examining Authority (ISA/ IPEA) under PCT from 15th October, 2013. The ISA/ IPEA functions with a full-fledged set up at the new IPO premises at Delhi having all operational facilities of international standards, including dedicated manpower, establishment of digital database of patent records, access to major patent databases and modern search engines. 5.27.2 As on 31st December, 2019, the Indian Patent Office as ISA, has received 6483 international applications choosing India as ISA, requesting for international search reports and 236 applications choosing India IPEA for international as examination. ISA applications received 1215 940 711 519 preliminary 1736 2000 1800 1600 International 1400 1200 1000 800 600 400 134 200 0 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Treaties Classification (for Trademarks and Design) India has also acceded to these Treaties on International Classification (for trademarks and designs) in June 2019; came into force on September 2019: i. ii. iii. Nice Agreement Co....
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....ncerning the International Classification of Goods and Services for the Purposes of the Registration of Marks Vienna Agreement establishing an International Classification of the Figurative Elements of Marks Locarno Agreement Establishing an International Classification for Industrial Total applications in ISA received till 31st December 2019 = 6483 IPEA applications received 60 50 40 30 20 10 0 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Total applications received in IPEA till 31st December 2019 = 236 Protection of Intellectual Property Rights 56 5.27.3 Indian Patent office (ISA) has successfully improved the timeliness of establishing International Search reports (ISR) over the years. During the year 2015-16, about 41% search reports were issued within time i.e. 3 months from search copy received by ISA, whereas during 2016-17, about 68% reports were issued in time which improved to 97% during 2017-18. The percentage of timeliness in issuing ISRs has further increased to 99.3% by end of 2018-19. 5.28 Quality Management Processing of IP Applications: in 5.28.1 Patent - Computerisation and IT- enabled functioning of Patent Office and computerised work-flow for patent processin....
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....g has resulted in enhanced speed of patent processing, examination and grant, improved service to stake holders and transparency. 5.28.2 Requests of Examination (RQ) across four branch office filed in a particular examination group have been merged to form a single queue based on RQ Filing Date, which are allocated for examination automatically through a system. Thus, the discrepancy earlier existing among four branch offices with respect to time when RQs in the same group used to be taken up for examination has been removed. Further, auto-allocation of Requests of Examination (RQ) is irrespective of the number of examiners/controllers at a specific patent office location. Besides, physical presence of an examiner at a particular location has also become insignificant. 5.28.3 Trademarks - Computerised module- based system has been adopted for all functions in the registration process for trademarks and maintenance of register of trademarks. A Pre- Registration Amendment Section has been created at each of the five branches of the Trade Marks Registry to attend to corrections/ amendments in the records. Process of hearing has been streamlined and only those cases are set down for he....
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....aring where objection raised in the examination reports could not be waived after consideration of the reply. Publication of registered trademarks has been automated and registration certificates are generated and sent to applicant's e-mail address automatically. Similarly, process of renewal of trademarks has been automated. 5.29 IPR Trends (IPR Statistics in the form of Tables, Charts are at Appendix-VII) 57 Protection of Intellectual Property Rights United Nations Industrial Development Organisation (UNIDO) 6 Chapter United Nations Industrial Development Organisation (UNIDO) 6.1 Introduction and overview 6.1.1 The United Nations Industrial Development Organization (UNIDO) is the specialized agency of the United Nations that promotes industrial development for poverty reduction, inclusive globalization and environmental sustainability. 6.1.2 UNIDO's mission is to promote and accelerate inclusive and sustainable industrial development (ISID) in its 170 Member States. India has been an active member of UNIDO since its inception. India is both a recipient and well as a contributor to the programmes of UNIDO and hosts one of the UNIDO'S largest technical cooperation portfolios. The D....
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....epartment for Promotion of Industry and Internal Trade (DPIIT) is the nodal government- department for all matters related to the operations of UNIDO in India. 6.1.3 UNIDO's activities in India are guided by a Country Program (CP), which serves as the framework for its interventions, aligned with national priorities. The 2018 independent country evaluation confirmed the relevance and strong alignment between UNIDO projects and government policies, existence of strong partnerships with national institutions, and revealed across-the-board satisfactory progress towards outputs and outcomes. 6.1.4 These findings were included in CP 2018-2022 was approved and executed by DPIIT and UNIDO. CP 2018-2022 focuses 58 on 4 key result areas, namely (i) productive and resilient MSMEs; (ii) solutions for climate, resources and environment; (iii) inclusive and responsible value chains and businesses; and (iv) strategic policy for industrial transformation. The objectives of the CP 2018-22 are fully aligned with the United Nations Sustainable Development Framework (UNSDF) 2018- 2022 (agreed upon between the NITI Aayog, Government of India and all UN agencies in India) and are supportive to the poli....
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....cies, missions and initiatives of the Government of India (such as Make in India, Skill India, Smart Cities, Swachh Bharat, Start-up India, etc.). 6.1.5 UNIDO has established its presence in India by means of the following office and centre: 6.1.5.1 UNIDO Regional Office (URO), New Delhi The UNIDO Regional Office is headed by a UNIDO Representative (UR) in India. The URO promotes UNIDO's mandate of inclusive and sustainable industrial development. It coordinates mobilization and dissemination of knowledge, information, skill and technology for fostering industrial development by applying best practices and approaches to common problems of the region. The core elements of UNIDO's technical cooperation services in India are to implement its activities in support of national policy priorities and development strategies; to build strong and long-term partnerships with governments and manufacturing sector; to increase UNIDO's visibility; and to focus its assistance in a manner that addresses global, especially the 2030 Agenda for Sustainable Development and its Sustainable Development Goals (SDGs). 6.1.5.2 International Centre for Inclusive and Sustainable Industrial Development (IC-ISI....
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....D), New Delhi DPIIT and UNIDO jointly established the International Centre for Inclusive and Sustainable Industrial Development (IC-ISID) in August 2015. IC-ISID brings together best practices and manufacturing technology to Indian Industries and share India's experience in cluster-based development with other developing countries, within the framework of South-South Cooperation. Several projects have been undertaken through IC-ISID in sectors such as leather, pulp and paper, cement and bicycles. 6.2 About UNIDO 6.2.1 DPIIT is the nodal department in the Government of India for all matters related to UNIDO's operations in India. UNIDO, headquartered in Vienna (Austria), was established in 1966 and became a specialized agency of the United Nations in 1985 to promote industrial development and cooperation at the global, regional, national and sectoral levels. India has been an active member of the organization since its inception. 6.3 Aims and Objectives: 6.3.1 UNIDO's mission, as described in the Lima Declaration adopted at the fifteenth session of the UNIDO General Conference in 2013, is to promote and accelerate inclusive and sustainable industrial development (ISID) in developing....
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.... countries and economies in transition. In line with this mandate, the organization's programmatic focus is structured in four strategic priorities: i. Creating shared prosperity ii. Advancing economic competitiveness iii. Safeguarding the environment iv. Strengthening knowledge and institutions 6.3.2 Each of these programmatic fields of activity contains a number of individual programmes, which are implemented in a holistic manner to achieve effective outcomes and impacts through UNIDO's four enabling functions: (i) technical cooperation; (ii) analytical and research functions and policy advisory services; (iii) normative functions and standards and quality-related activities; and (iv) convening and partnerships for knowledge. transfer, networking and industrial cooperation. 6.4 6.4.1 Organization and Its Policymaking Organs The Organization is headed by a Director-General. The main policymaking organs of UNIDO are (i) General Conference; (ii) Industrial Development Board; and (iii) Programme and Budget Committee. 6.4.2 General Conference (GC) The General Conference (GC) is UNIDO'S supreme policymaking organ where all Member States meet once every two years. The GC determines the ....
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....guiding principles and policies of the Organization, approves the budget and work programme of UNIDO. Every four years, the GC appoints the Director-General. The GC also elects the members of the Industrial Development Board and the Programme and Budget Committee. The 18th Session was held during 3-6 November 2019 in Abu Dhabi, in which Ms Sumita Dawra, JS (DPIIT) led the Indian delegation. 59 United Nations Industrial Development Organisation (UNIDO) United Nations Industrial Development Organisation (UNIDO) 6.4.3 Industrial Development Board (IDB) The Industrial Development Board (IDB) comprises (53 members), elected for a four-year term on a rotational basis from all Member States. It reviews the implementa- tion of the work programme, the regular and operational budgets, makes recommenda- tions to the General Conference on policy matters, including the appointment of the Director-General. The IDB meets once a year. 6.4.4 Programme and Budget Committee (PBC) The Programme and Budget Committee (27 members) meets once a year to assist the Board in the preparation and examination of the work programme, the budget and other financial matters. 6.5 6.5.1 Collaboration with Agencies ot....
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....her UN United Nations Country Team (UNCT) 6.5.1.1 At the national level, UNIDO is part of the UN system, through the United Nations Country Team (UNCT), which comprises the Heads of Agencies residing in the country and convened by the UN Resident Coordinator (UNRC). Through the UNCT, UNIDO actively participates in government and business outreach, advocacy, coordination meetings and annual strategic meetings, aimed to facilitate joint programming and implementation with other UN agencies. 6.5.1.2 UNIDO's contribution to UNCT is guided by the India- United Nations Sustainable Development Framework (UNSDF) 2018- 2022, which was signed on 28th September 2018 between NITI (National Institution for Transforming India) Aayog and the UNCT. 6.5.1.3 With the implementation of the reform agenda for the UN development system from January 2019, UNIDO has been strengthening its collaboration with sister UN agencies, including in India. For example, UNIDO jointly implements project on sustainable city development with UN Habitat and on alternatives to DDT with UN Environment, whereas UNIDO also contributed to joint UN missions to support the International Solar Alliance (ISA) and the implementat....
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....ion of the National Clean Air Programme (NCAP). 6.6 India's Contribution 6.6.1 India is a founding member of UNIDO. It is both a recipient as well as a contributor to UNIDO's programs. India contributes to the regular budget of UNIDO (assessed contribution), which currently amounts to EUR 0.8 million annually. In addition, India also makes an annual voluntary contribution to the Industrial Development Fund (IDF) of UNIDO. 6.7 UNIDO- India Country Program (CP) 6.7.1 The CP 2013-17 had as its priorities advancing economic competitiveness and fostering green industrial development. Even though CP 2013-2017 is formally closed several longer duration projects still continue, particular in areas of energy efficiency and renewable energy, cleantech innovation and environmentally sound management of chemicals and waste. 6.7.2 The successor CP 2018-2022 was designed to enhance the support of the UNIDO to the Government of India to transition to inclusive and sustainable industrial development (ISID). This CP builds upon the achievements and lessons learned from UNIDO's five decade track record of technical cooperation in India and is aligned with the agreed priorities of the United Nations ....
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....in India, as established under the India United 60 60 Nations Sustainable Development Framework (UNSDF) 2018-22. The CP 2018-22 aims to support key initiatives of the Government of India, including, amongst others, the 2011 National Manufacturing Policy (NMP), the 2017 Industry Policy Discussion Paper and the Nationally Determined Contributions (NDCs) under the Paris Agreement on climate change, as well as the associated major missions of the Government of India, including Make in India, Skill India, Swachh Bharat and Start-up India. CP 2018-22 has established four key results areas namely: i. ii. iii. Productive and resilient micro, small and medium enterprises (MSMEs): including intervention strategies for MSME business ecosystem, for skilled workforce and for technology, quality and management. and Climate, resources environment solutions: including intervention strategies focused on energy, renewables and air pollution; resources, water and effluents; and chemicals and waste. Inclusive and responsible value chains and businesses: with as the intervention strategies sustainable livelihoods and responsible business. iv. Strategic policy 6.8 Centre for Inclusive and UNIDO-DPIIT Su....
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....stainable International Industrial Development (IC-ISID) 6.8.1 The UNIDO International Centre for Inclusive and Sustainable Industrial Development (IC- ISID), supported by the Department for Promotion of Industry and Internal Trade (DPIIT), has been designed to foster a holistic approach to interlinked development strategies. IC-ISID works to increase industrial competitiveness through technology upgrading, innovation, generation of decent jobs for women and men, environment protection and access to energy. The Centre was inaugurated on 27th August, 2015 and was the result of the merger of two previously existing UNIDO Centres in India: (i) The International Centre for Advancement of Manufacturing Technology (ICAMT) and (ii) The UNIDO Centre for South-South Industrial Cooperation (UCSSIC). 6.8.2 IC-ISID echoes the theme of the 2030 Sustainable Development Agenda, as well as UNIDO's mandate of inclusive and sustainable industrial development (ISID) with its objectives of: for industrial i. transformation: having as its intervention strategies insight and foresight and public private development partnerships and dialogue. 6.7.3 Further, CP 2018-22 also comprises cross-cutting flagshi....
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....p initiatives, that would operate at meta-level, building upon projects and activities from across the four key results areas, potentially complemented with additional strategic projects. These flagships are: (1) Industries for north-eastern states livelihoods; (2) India innovation incubator; and (3) Global Solutions from India. ii. introduction of the Promoting advanced manufacturing technologies to the manufacturing sector in India to strengthen the productivity and of competitiveness SMEs through technology-led interventions. Identifying and transferring the best and proven technology-led solutions from India to developing countries (particularly the LDCs), under the South-South and Triangular Cooperation modality iii. Fostering inclusive and responsible value chain development focussing on circular economy. 61 United Nations Industrial Development Organisation (UNIDO) United Nations Industrial Development Organisation (UNIDO) iv. V. Supporting initiatives in strategic areas for industrial transformation, aligning with UNIDO's mandate and initiatives of the Government of India. Serving as a model centre of excellence for promoting targeted interventions in select industrial and ....
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....manufacturing sectors. 6.8.3 IC-ISID furthermore serves as a platform for advocacy on aspects of inclusive and sustainable industrial development in India. On 14 November 2019, UNIDO in cooperation with DPIIT and Invest India, hosted a ministerial roundtable dialogue on Manufacturing for India@75, to explore challenges for moving towards a 1 trillion USD manufacturing sector in India. Moreover, UNIDO contributed to several DPIIT supported initiatives, including the state level consultation on Make in India on 30 Oct 2019. 6.8.4 Key Achievements of IC-ISID Projects 6.8.4.1 IC-ISID works to enhance competitiveness of select sectors and clusters, through technology demonstration and transfer of state-of-the-art technologies, enhancement of technical capacity and skills of the key Indian technical institutions and industries, the adoption of best practices and appropriate measures such as improved and cleaner manufacturing processes, waste management and energy efficiency, and assessment of innovation capacity in Indian industries. A brief description of the activities undertaken under each of the projects is given below. United Cycle & Parts Manufactures Association (UCPMA) to provide....
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.... management and technical support to the Indian bicycle sector with a view to strengthen its global competitive position. The project facilitated comprehensive technical capacity and capability upgrading for RDCBSM and the associations through a series of soft interventions (including technology transfer; technical workshops, international study tours; fellowship training programmes; partnerships with international organizations; and hands-on training programmes) and hard interventions (procurement of equipment for the testing facility of RDCBSM). 6.9.2 The following activities were undertaken in 2019: i. ii. iii. iv. The project set up testing facilities for ROHS (Restriction of Hazardous Substances)/ REACH (Registration, Evaluation, Authorization and restriction of Chemicals) Directives. This additional testing facility supports manufacturers in meeting compliance requirements for exports to European markets. An Optical emission direct reading spectrometer was procured under the project, towards upgrading of RDCBSM's testing facilities. RDCBSM's prototyping capabilities were strengthened through the procurement of a 3D printer and delivery of attendant training on its usage. Thre....
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....e technical workshops were conducted in the following areas: 6.9 Bicycle Project 6.9.1 The project aimed to strengthen the capacity and capability of the Research and Development Centre for Bicycle and Sewing Machines (RDCBSM), the All India Cycle Manufacturers' Association (AICMA) and the 62 V. a. Material behavior and analysis failure b. Finite element analysis (FEA) C. Entrepreneurial competencies. Fellowship training programmes: vi. a. b. E-bikes: 10 officials from RDCBSM and 4 representatives from industry units completed a two-week technical training in ‘Electric bicycles', conducted by the Light Electric Vehicle Association (LEVA), USA. The training covered theoretical and practical aspects of testing e-bike components and setting up test stations and requisite software for controller-display-sensor systems, batteries and chargers, motors and complete e-bike data logging. The 14 participants were certified as 'LEVA Instructors' to enable them to deliver training programmes in the area of E-bikes. Bicycle testing: A fellowship training programme in the area of 'Bicycle testing' was conducted at EFBE Pruftechnik, Germany for 3 officials from RDCBSM, to increase their pro....
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....ficiency in the testing they currently carry out, as well as providing exposure to newer, advanced testing procedures. Hands-on training programmes: A hands- on training programme was conducted in the area of ‘Bicycle assembly', covering procedures and best practices regarding frame inspection and alignment, finishing, and preparation for final assembly using different frame models. vii. Twinning of RDCBSM and industry associations was also facilitated for increased institutional linkages with leading international organizations. Towards this, the following joint declarations (JDs) were signed between: a. RDCBSM and EFBE Germany; Pruftechnik GmbH, 63 63 b. C. d. e. (RDCBSM and EFBE have conducted an inter-lab comparison of test results on a no-cost bases under this joint declaration) RDCBSM and the Light Electric Vehicle Association (LEVA), USA RDCBSM and the Kunshan Products Safety Inspection Institute (KBTC), China RDCBSM, AICMA and the National Association of Two Wheels Industries, Hardware, Furniture and Related Products (ABIMOTA), Portugal AICMA, UCPMA and the Confederation of the European Bicycle Industries (CONEBI) AICMA and the European Cyclists' Federation (ECF), Bel....
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....gium 6.9.3 A final evaluation of the project was conducted, which found that the project was considered highly relevant by all the stakeholders, who were interviewed, and that the intervention was a highly relevant step towards the growth and development of the Indian bicycle industry. The project was operationally completed on 30 November 2019. 6.10 Paper Project 6.10.1 The paper project, titled ‘Firm- level demonstration of technologies and productivity enhancement for the pulp and paper industry', started implementation in August 2019. The project is a successor to the earlier project, 'Development and adoption of appropriate technologies for enhancing productivity of the pulp and paper sector' (2015-2018). The objective of the ongoing project is to contribute to enhancing United Nations Industrial Development Organisation (UNIDO) United Nations Industrial Development Organisation (UNIDO) the productivity and competitiveness of the Indian pulp and paper industry. The project approach comprises two types of interventions at the firm-level: (i) process optimization and productivity enhancement measures; and (ii) pilot demonstration of new technologies with high potential for....
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.... productivity enhancement and replication across the sector. This project is being implemented in close cooperation with the Central Pulp & Paper Research Institute (CPPRI) and national and regional level industry associations. The details of these interventions are provided below: i. Process optimization and productivity enhancement measures (PEMs) ii. This activity involves the implementation and demonstration of shop-floor interventions in paper mills to enhance productivity and production efficiency through: a. Optimization of process parameters pertaining to technical aspects of paper production of manufacturing excellence tools (such as Kaizen, b. Adoption 5S, TQM, etc.) Demonstration of identified technologies This activity involves the pilot-level demonstration of two technologies at paper mills: a. b. Membrane filtration: to facilitate maximum recycling of treated process water by treating paper mill effluents to reduce color, total dissolved solids (TDS), chemical oxygen demand (COD) and other pollutants as per prescribed pollution norms Black liquor heat treatment: to improve the energy efficiency of the chemical recovery system by reducing the viscosity of black liquor,....
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.... enabling achievement of higher black liquor solids during evaporation in agro-based pulp and paper mills 6.10.2 Pilot Demonstration Units (PDUs) for each technology are being designed, developed and operationalized in paper mills (including trials, optimization of the process parameters, continuous operations under stabilized conditions and validation of the results) to show the techno-economic feasibility of adoption in the Indian context. 6.10.3 The primary beneficiaries of the project are pulp and paper mills, spread across the country. The project interventions are expected to support the Indian paper industry in (i) improved product quality, productivity and process and resource efficiency, (ii) increased water recycling and reduced freshwater consumption and wastewater discharge, and (iii) ability to meet stringent discharge norms prescribed by regulatory authorities. The following activities have been completed in 2019: i. ii. Project commencement meetings were organized with the senior management of CPPRI and the national-level industry associations to discuss the objectives and planned demonstration activities of the project. 4 sensitization workshops were conducted in th....
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....e 4 major paper industry clusters across India, in Kolkata (01 October 2019), Ludhiana (04 October 2019), Vapi (15 October 2019) and Coimbatore (17 October 2019). The workshops were attended by representatives of Indian paper mills, CPPRI, regional and national- level paper industry associations, as well as key stakeholders such as the National 64 19 iii. iv. V. vi. 6.11 Productivity Council, the Punjab Pollution Control Board (PPCB) and the Gujarat Council on Science and Technology. The industry representatives were apprised of the project activities and inputs were sought on the technologies and productivity-enhancement measures to be demonstrated under the project. The preliminary technical specifications of the two pilot demonstration units are currently being prepared in consultation with CPPRI and national and international technology experts. Consultations with national and international technology suppliers are also being conducted. A mission to Sweden and Finland (24- 30 November 2019) was organized for detailed consultations with international technical institutions and technology suppliers, such as RISE Innventia (Sweden), IVL Swedish Environmental Research Institute, Va....
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....lmet Technologies (Finland) and the Tampere University of Technology (Finland) to seek inputs towards the technology demonstration units and productivity enhancement measures. A visit of an international expert in the area of liquor heat treatment technology was also organized, to assess the processes and set-up of Indian paper mills, towards the development of the black liquor heat treatment pilot demonstration unit. Towards the implementation of the PEMS, the development of the audit tool to assess selected mills has also been initiated. Innovation survey project 6.11.1 This project, titled 'India Innovation and Systems Survey 2019', is being implemented in cooperation with 65 the Department of Science and Technology (DST), Government of India. The objective of the project is to assist DST in developing an analytical framework for measuring firm- level innovation and the national system of innovation (NSI) by collecting data from firms and NSI actors, as a follow up of the first Indian innovation survey conducted by DST in 2011. 6.11.2 The expected outcomes are: i. ii. Enhanced understanding of private sector innovation capabilities and capacities and the innovation support infra....
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....structure (system of innovation) Enhanced innovation performance by Indian firms 6.11.3 The project has been formally approved by DST for implementation by UNIDO, as a part of IC-ISID's project portfolio. The project document has been signed and the first tranche of funds has been released, following which project implementation is to commence (from December 2019). 6.12 Photographs 6.12.1 DPIIT UNIDO cooperation Manufacturing for Indian 75 Ministerial roundtable dialogue on Manufacturing for India@75, with Honorable Som Prakash, Minister of State for Commerce and Industry, Honorable Arjun Meghal, Minister of State for Heavy Industry and Public Enterprises and Honorable Rameswar Teli, Minister of State for Food Processing Industry, 14 November 2019. United Nations Industrial Development Organisation (UNIDO) United Nations Industrial Development Organisation (UNIDO) Ms Sumita Dawra, JS DPIIT, addressing the plenary meeting of the 18th General Conference of UNIDO, Abu Dhabi, 3-6 November 2019. 6.12.2 Bicycle project Workshop on 'Material behavior and failure analysis' (February 2019) 6.12.3 Paper project UNDO PROJECT a fie the pulp and papainy CRESI Sensitization workshop – Kol....
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....kata (01 Oct 2019) Fellowship training on 'E-bikes' at RDCBSM (February 2019) Practical session during fellowship training on 'E-bikes' Sensitization workshop - Ludhiana (04 Oct 2019) at RDCBSM (February 2019) 66 UNIDO PROJECT Sensitization workshop – Vapi (15 Oct 2019) H Div ENIDO PROJECT Firm level demonstration of technologies hancement for then and pap Interna Visit to pilot facility of IVL Swedish Environmental Research Institute Sensitization workshop - Coimbatore (17 Oct 2019) KONFERENS RS RI S Meeting with technical experts at RISE Innventia (Sweden) 67 largest membrane bioreactor Membrane bioreactor facility of IVL Swedish Environmental Research Institute Visit to Pilot facility at Tampere University of Technology (Finland) United Nations Industrial Development Organisation (UNIDO) 7 Chapter Industrial Corridors 7.1 The Delhi Mumbai Industrial Corridor (DMIC) 7.1.1 The Delhi Mumbai Industrial Corridor (DMIC) Project has made considerable progress in the recent time as land allotment process have been initiated at all the four (04) locations where construction activities are nearing completion. Also, many major industries have started production in the Industrial A....
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....rea. 7.1.2 The node/city wise progress is as under: 7.1.2.1 GUJARAT (a) Dholera Special Investment Region (DSIR): i. ii. DSIR has been planned over an extensive area of land measuring approximately 920 sq. km and the developable area in DSIR is divided into six (6) Town Planning Schemes, admeasuring 422.42 sq km, i.e. TP scheme-1 to TP scheme-6; Further, an Activation Area of 22.5 sq. kms has been carved out based on the availability of land which will facilitate the early take off of various infrastructure components in DSIR; V. vi. amounting to 1745.54 crore has been released by NICDIT Cabinet Committee on Economic Affairs (CCEA) had approved the tender packages for various infrastructure components amounting to 2784.82 crore divided into five packages, the individual status is as under: EPC for Roads and Services: Contract awarded. L&T is the selected bidder and implementation activities are in progress vii. EPC for ABCD Building Contract awarded. Cube Construction Engineering Ltd. is the selected bidder and implementation activities have been completed. viii. EPC for Water Treatment Plant (WTP): Contract awarded. SPML is the selected bidder and implementation activities are in ....
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....progress ix. X. iii. SPV by the name of "Dholera Industrial City Development Limited" has been incorporated xi. iv. State Govt. has transferred 30.27 sq. kms to the SPV and matching equity EPC for Sewage Treatment Plant (STP): Contract awarded. L&T is the selected bidder and implementation activities are in progress EPC for Central Effluent Treatment Plant (CETP): contract awarded. L&T is the selected bidder and construction activities are in progress The land allotment policy has been finalized and 03 plots admeasuring 152.71 acres allotted; Anchor Investor - Tata Chemicals (126 acres) Industrial Corridors 68 xii. Selection of Master System Integrator (MSI) for implementation of various smart city components is under progress. xiii. Further, project development activities are being taken forward for other connectivity projects i.e. Bhimnath Dholera Rail Link Project, and Greenfield International Airport at Dholera for which Airport Authority of India (AAI) has taken 51% equity into the project and Shareholders Agreement (SHA) has been executed between AAI, Govt. of Gujarat & NICDIT. NICDIT as part of its equity (16%) has released 19.85 crore. xiv. NHAI has taken up the implementat....
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....ion of Ahmedabad - Dholera expressway and has issued the construction tenders to build the expressway. Land within DSIR area to be provided by Dholera Special Investment Region Development Authority (DSIRDA). (b) Multi Modal Logistics Park (MMLP) at Sanand i. The Shareholder's Agreement (SHA) to be executed between NICDIT and Government of Gujarat through GIDC has been approved by the Board of Trustees of NICDIT in its 4th meeting held on 30th August, 2019. ii. The Feasibility report for the same is under finalization. 7.1.2.2 Maharashtra name (a) Shendra Bidkin Industrial Area (SBIA): i. Node/City level SPV by the "Aurangabad Industrial Township Limited" has been incorporated ii. State Govt. has transferred 8.39 sq kms to the SPV for Shendra Industrial Area and 13.76 sq. kms for Bidkin Industrial Area. Matching equity amounting to 602.80 crore and 1399.90 crore has also been released by NICDIT till Nov 19'. (b) Shendra Industrial Area For Shendra Industrial Area, Cabinet Committee on Economic Affairs (CCEA) had approved the tender packages for various infrastructure components for 1533 crore. Further the individual status of various packages is as under: i. EPC activities for Dist....
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....rict Administration (AURIC) Building work is completed along with testing and commissioning; Hon'ble Prime Minister dedicated Shendra Industrial Area (under DMIC) to the Nation. ii. iii. iv. V. vi. EPC for Roads, Drains, Culverts, Water Supply, Sewerage and Power systems awarded. Shapoorji Pallonji is the selected bidder and implementation activities are nearing completion. EPC for construction of Road over Bridges awarded. Patil Construction and Infrastructure Ltd is the selected bidder and implementation activities are nearing completion EPC for Sewerage Treatment Plant (STP), Common Effluent Treatment Plant (CETP) & Solid Waste Management awarded and implementation activities are in progress EPC for Landscape and Irrigation awarded and implementation activities are in progress vii. ICT Master System Integrator (MSI) works awarded and the Command & Control Centre with various functions is operational viii. The land allotment policy has been finalized and 58 plots admeasuring 160.30 acres allotted; Anchor Investor HYOSUNG (100 acres); Four (4) 69 69 Industrial Corridors Industrial Corridors industries have already started production at Shendra. (c) Bidkin Industrial Area For Bidki....
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....n Industrial Area, Cabinet Committee on Economic Affairs (CCEA) had approved the infrastructure packages worth *6414.21 crore for 31.79 Sq Km to be undertaken in 3 Phases and the individual status of various packages is as under: i. ii. iii. L&T has been appointed as the EPC Contractor for Phase-1 i.e. 10 sq. kms for roads, underground utilities/services and implementation activities are in progress. KEC has been appointed as the ICT Master System Integrator (MSI) works and implementation activities are in progress The Detailed Project Report for Paithan road for providing connectivity to Shendra and Bidkin Industrial area is being finalized by NHAI (d) Dighi Port Industrial Area (DPIA) i. ii. Project development works for Dighi Port Industrial Area (DPIA) are also being taken forward and detailed master planning and preliminary engineering is underway Entire land required for phase-1 development of DPIA i.e. 3000 Hec is in possession of the State Govt. 7.1.2.3 Madhya Pradesh (a) Integrated Industrial Township 'Vikram Udyogpuri' Project, Ujjain: i. Project SPV by the name "DMIC Integrated Industrial Township Vikram Udyogpuri Limited" has been incorporated ii. State Govt. has transf....
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....erred 1100 acres land to the SPV and matching equity 70 iii. iv. amounting to 55.93 crore has also been released by NICDIT. EPC for various infrastructure works awarded. Implementation activities are nearing completion. The land allotment policy has been finalized and 12 acres of land allotted to AMUL 7.1.2.4 Uttar Pradesh (a) Integrated Industrial Township Project at Greater Noida: i. ii. iii. iv. V. SPV by the name of "DMIC Integrated Greater Industrial Township Noida Limited" has been incorporated Land admeasuring 747.5 acres has been transferred to Project SPV and matching equity amounting to Rs.617.20 crore has also been released by NICDIT EPC for various infrastructure components was awarded. Implementation activities are in progress and nearing completion. SIEMENS has been appointed as the contractor for internal power infrastructure works and implementation activities are in progress Works related to transmission network has been awarded to Uttar Pradesh Power Transmission Corporation Limited (UPPTCL). vi. The land allotment policy has been finalized and 05 plots admeasuring 153.89 acres of land allotted; Anchor Investor Haier (123.7 acres); The land allottees have already ....
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....started the construction activities (b) Multi Modal Logistics Hub (MMLH) at Dadri and Multi Modal Transport Hub (MMTH) at Boraki in Greater Noida: The proposal was considered and approved by NICDIT for development of trunk infrastructure facilities at MMLH & MMTH. DFCCIL has given ‘in principle' approval for providing connectivity to the project site State Govt. is moving forward with the acquisition of remaining land parcels 7.1.2.5 Haryana (a) Integrated Multi Modal Logistics Hub (IMLH) at Nangal Chaudhary: İ. Land admeasuring approx. 886 acres has been identified in District Mahendergarh for the project approved by the State Govt. iii. Activities related to iv. V. preliminary engineering of internal infrastructure components is underway. Land is in the possession of the State Govt. Govt. of Haryana vide its letter dated 18th April, 2019 has informed that the State Govt. has intended to implement the project on its own. (c) Mass Rapid Transit System (MRTS) Project: i. Project SPV by the name of "DMIC Haryana MRTS Project Limited" has been incorporated ii. Project SPV by the name of "DMIC Haryana Multi Modal Logistic Hub Project Limited" has been incorporated ii. Detailed....
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.... Project Report (DPR) has been approved by the State Govt. iii. iv. V. Project has been approved by NICDIT and subsequently by Cabinet Committee on Economic Affairs (CCEA) for an amount of 1852 crore DFCCIL has given ‘in principle' approval for providing connectivity to the project site Out of total 886 acres, State Govt. has transferred 666 acres to the project SPV and equity of Rs.191.67 crore has been released to the SPV iii. iv. V. Land for phase-1 of the project is in possession of the State Govt. Project has been included in JICA Special Rolling Plan for DMIC Project NCRTC is being consulted for examining the DPR and Feasibility of developing the long hall MRTS network 7.1.2.6 Smart Community Projects: Solar Project, Neemrana, (a) Model Rajasthan: İ. vi. State Environment Appraisal Committee Environment (SEAC) has recommended the project to State Environment Impact Assessment Authority (SEIAA) Environment Clearance The 5MW Solar Power Plant has been connected to the State Grid on 23rd July, 2015 & Subsequently got commissioned on 03rd September, 2015. for ii. The power is being Supplied to State Grid i.e. 220 KV GSS Neemrana. (b) Global City Project: iii. i. Project ....
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....SPV by the name of "DMIC Haryana Global City Project Limited†has been incorporated ii. Master Plan has been completed and 1MW Micro Grid Solar Power Plant has been Commisioned on the 10th July, 2017 for feeding high quality, Stable and renewable green power to Mikuni India Pvt. Ltd; 71 Industrial Corridors Industrial Corridors iv. Demonstration Period of two years has been successfully completed (b) Logistic Data Bank (LDB), DMIC Region: i. DMICDC Logistics Data ii. iii. iv. 7.2 Services (DLDS)'s, LDB System, provides online container tracking in India by integrating multiple information nodes across various agencies and provides a common visibility platform for all, by leveraging RFID technology at its backend. Operations started at JNPT from 1st July, 2016. Service is presently operational (Pan India) at 5 JNPT Port Terminals, 6 Port Terminals at Southern Corridor, 3 Port Terminals at South-Western Corridor, 4 Port Terminals in Eastern Corridor, 1 Port Terminal at Kandla, 4 Port Terminal at Mundra and 1 Port Terminal at Hazira. Also, a total of 55 Toll Plazas are operational in the Western, Eastern and Southern Corridors covering NH 3, NH 8, Mumbai-Pune expressway routhe, ....
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....NH 27, NH 15, NH 79, Nh 4 & NH 6 A total of 20,070,746 containers have been tagged/de-tagged till 30th November, 2019 Chennai Bengaluru Industrial Corridor (CBIC) Project Krishnapatnam Industrial City Development Limited' has been incorporated in August, 2018. Detailed Master Planning and Preliminary Engineering activities have been finalized. 7.2.3 For Tumakuru node in Karnataka, the Shareholder's Agreement (SHA) and State Support Agreement (SSA) has been executed and project SPV i.e. CBIC Tumakuru Industrial Township Ltd. has been incorporated on 01st November, 2018. Detailed Master Planning and Preliminary Engineering activities have been finalized. 7.2.4 For Ponneri node in Tamil Nadu, the Shareholder's Agreement (SHA) and State Support Agreement (SSA) have been finalized and the execution has been approved by the Board of Trustees of NICDIT in its 4th meeting held on 30th August, 2019. An area of 1366 acres has been identified by the State Govt. for implementation of the project. 7.3 Amritsar Kolkata Industrial Corridor (AKIC) Project: Perspective Plan has been 7.3.1 completed. 7.3.2 One (01) Integrated Manufacturing Cluster (IMC) site has been finalized in each State for furt....
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....her development namely: 7.2.1 Perspective plan for the overall corridor has been completed and three nodes have been identified for development: İ. Punjab (Rajpura-Patiala) ii. Uttarakhand (Prag-Khurpia Farms) iii. Uttar Pradesh (Bhaupur) İ. Krishnapatnam, Andhra Pradesh (12083 iv. Bihar (Gamhariya) acres) ii. Tumakuru, Karnataka (9630 acres) V. Jharkhand (Barhi) vi. iii. Ponneri, Tamil Nadu (21966 acres) 7.2.2 For Krishnapatnam node in Andhra Pradesh, the Shareholder's Agreement (SHA) and State Support Agreement (SSA) has been executed and SPV by the name of ‘NICDIT West Bengal (Raghunathpur) vii. Haryana (Saha) 7.3.3 The project was reviewed in NICDIT meeting and it was decided that project development should be undertaken only in 72 those places where land is in possession and the State Government(s) is willing to transfer the same to the SPV. Accordingly, the detailed master planning and preliminary engineering for IMC site at West Bengal (Raghunathpur) is underway where 2483 acres of land is available. Finalization of Shareholder's Agreement (SHA) and State Support Agreement (SSA) is under process with Govt. of West Bengal. 7.3.4 Finalization of Land identification....
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...., admeasuring 2935 acres, along with Shareholder's Agreement (SHA) and State Support Agreement (SSA) for Prag-Khurpia Farms node with State Government of Uttakakhand is under process. 7.4 East Coast Economic Corridor (ECEC) with Vizag Chennai Industrial Corridor (VCIC) Project as part of phase I: 7.4.1 Envisaged as part of East Coast Economic Corridor linking Kolkata- Chennai Tuticorin; 7.2.2 Asian Development Bank (ADB) has prepared the Concept Development Plan (CDP) and following nodes have been identified for development: i. Visakhapatnam (6629 acres) ii. Machilipatnam (15543 acres) iii. Donakonda (17117 acres) iv. Chittoor (26731 acres) 7.4.3 Out of the above, the prioritized nodes are Visakhapatnam and Chittoor. Initial Master planning of these nodes has been completed by ADB. 7.4.4 State Govt. of Andhra Pradesh has requested Govt. of India for inclusion of VCIC under the ambit of NICDIT framework. 7.4.5 The inclusion of Visakhapatnam and Chittoor nodes has been approved by the Board of Trustees of NICDIT in its 4th meeting held on 30th August, 2019. 7.5 7.5.1 Bengaluru Mumbai Industrial Corridor (BMIC) Project: The Bengaluru Mumbai Industrial Corridor (BMIC) is intended to fa....
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....cilitate development of a well-planned and resource- efficient industrial base for the two states. 7.5.2 7.5.3 Perspective Plan has been completed Dharwad node in Karnataka has been identified as the priority node for further development 7.5.4 The details relating to the availability of Land along with connectivity infrastructure in the core districts identified by Govt. of Maharashtra and Karnataka has been sought from the respective State Govt. 73 Industrial Corridors India International Convention & Expo Centre (IICC, Dwarka) 8 Chapter India International Convention & Expo Centre (IICC), Dwarka 8.1 The Government of India has approved development of India International Convention and Expo Centre (IICC) in Sector-25, Dwarka, New Delhi & allied infrastructure in PPP and non-PPP Mode (including Exhibition & Convention spaces, arena, trunk-infrastructure, Metro/NHAI connectivity, hotels, office and retails spaces etc.) at an estimated cost of *25,703 crore by the year 2025. 8.2 The Government has further approved incorporation of a new Government company as a Special Purpose Vehicle (SPV) for the implementation and development of IICC, Dwarka project with 100% equity from Government....
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.... through DPIIT. 8.3 A Special Purpose Vehicle for development of the project i.e. India International Convention and Exhibition Centre Limited (IICC Ltd), a 100 % owned and controlled Company by Government of India represented through DPIIT has been incorporated on 19.12.2017. 8.4 Implementation of Phase-I of the project comprising trunk infrastructure along with Exhibition-cum Convention Centre in in Progress. This will be implemented as non- PPP component. EPC Contractor for Phase-I development and Operator for Exhibition and Convention Centre have been appointed. 8.5 Phase-2 of the Project comprising of the remaining Exhibition Area will be implemented by 2025. Components 74 comprising hotels, retail and offices will be developed in Phase-2 in PPP mode. 8.6 Hon'ble Prime Minister laid the foundation stone of this project on September 20, 2018. 8.7 EPC Contractor for Phase-I development and Operator for Exhibition and Convention Centre have been appointed. 8.8 The operator for Exhibition and Convention Centre has been appointed. 8.9 A MoU has been signed with Delhi Metro Rail Corporation (DMRC) for extension of Airport Express line to project site of the IICC Project. The constru....
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....ction work of metro connectivity by DMRC in in progress and Tunneling works under Exhibition Hall-3 was completed by DMRC and handed over to L&T for further construction. 8.10 IDBI Capital Markets & Securities Limited has been appointed as Financial Advisor to assist IICC in raising loan for the project. LoA has been issued to SBI on 31st January 2019 for providing a term loan amounting to 2150.16 crore with the approval of Board of IICC. 8.11 National Council for Cement & Building Material (NCCBM) has been appointed as Third-Party Quality Assurance Agency (TPQA). 8.12 A MoU was signed with BSES Rajdhani Power Ltd (BRPL) for Bulk power 75 supply to IICC Dwarka. Payment amounting to 40 Cr as first instalment has been released on 15.01.2019 to BRPL for execution of this work. The work of feeder cable laying up to IICC plot by BSES and procurement of GIS substation has been completed. 8.13 An amount of 92.39 crore has been transferred from IICC to NHAI for onward payment to DDA for transfer of 18.66 acres of land for external road connectivity to IICC which is being developed by NHAI. Further, an amount of 87.50 Cr has been paid to NHAI for this construction works. 8.14 NHAI has award....
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....ed LoA to J. Kumar Infraprojects Limited for Package-II of development of Dwarka Expressway (which includes road connectivity to IICC Complex). 8.15 DDA has permitted IICC Ltd. to plant trees & maintain as public park in 34 Ha of land in the green belt adjoining IICC site (South Side). India International Convention & Expo Centre (IICC, Dwarka) 9 Chapter Schemes for Regional Development 9.1 9.1.1 Introduction One of the principal objectives of the Government of India's Industrial Policy is to promote balanced industrial development throughout the country. For stimulating industrial development of hilly States, the Union Government has been supplementing the efforts of State Governments through various policies/ schemes / packages of incentives. Some of such policies/schemes/packages of incentives for development of industries and which are being currently administered by this Department are given in this Chapter. 9.2 Transport Subsidy Scheme: 9.2.1 The Scheme was introduced on 23.7.1971 to develop industrialization in the remote, hilly and inaccessible areas by providing for subsidy in the transportation cost incurred by the industrial units. The scheme is applicable to all industr....
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....ial units barring plantations, refineries and power generating units both in public and private sectors irrespective of their size. The scheme covers eight States of the North East (including Sikkim), Himachal Pradesh, Jammu & Kashmir, Uttarakhand and UTs of Andaman & Nicobar and Lakshadweep and Darjeeling District of West Bengal. 9.2.2 Eligible industrial units are provided subsidy for a period of five years from the date of commencement of commercial production, ranging between 50% to 90% of the transport cost for transportation of raw material and finished goods to and fro from the location of the unit and the designated rail-head. 9.3 9.3.1 Freight Subsidy Scheme: The Transport Subsidy Scheme was modified and notified as Freight Subsidy Scheme (FSS) - 2013 w.e.f. 22.01.2013. The salient features of this Scheme are as follows: i. ii. iii. iv. Definition of ‘manufacturing activity' adopted from the Union Budget 2009- 10; Subsidy on transportation of fly ash disallowed; Provision for subsidy for an additional period of 5 years to MSME; Plantations, Refineries, Power generating units, Coke (including Calcined Petroleum Coke) industry and the units producing tobacco and manufa....
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....ctured tobacco substitutes, pan masala and plastic carry bags of less than 20 microns have been placed in the negative list. Schemes for Regional Development 76 |1000 900 800 700 600 531 500 400 300 Graph 9.1 Funds released under TSS/FSS : 200 109 86 90 100 1971-2000 2000-01 2001-02 2002-03 2003-04 97 75 39 17 0 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 Rs. In crore 619 405 400 331 222.73 2011-12 2012-13 2013-14 2014-15 220 124.49 60 2015-16 2016-17 70 599.71 932.25 288.87 2017-18 2018-19 2019-20 9.3.2 The Freight Subsidy Scheme (FSS), 2013 has been discontinued, with effect from 22.11.2016. However, industrial units regis- tered under the scheme prior to the date of issue of DIPP's notification dated 22.11.2016 will be eligible for the benefits of the scheme upto 21.11.2021. 9.3.3 Since inception of the TSS/FSS scheme, an amount of Rs.5312.54 crore (approx.) has been released to the States/UTS. In the cur- rent FY 2019-20, out of the total allocation of 293.31 crore, *288.87 crore has already been released as on 31.01.2020. 9.4 9.4.1 North East Industrial Investment Promotion (NEIIPP), 2007: and Policy With a view to give a further boost to industrialization in the N....
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....orth Eastern Region, the erstwhile North East Industrial Policy (NEIP), 1997 was revised and a new policy, namely North East Industrial & Investment Promotion Policy (NEIIPP) 2007, was notified w.e.f. 1.4.2007 which remained in force up 77 to 31.03.2017. Benefits under NEIIPP, 2007 have also been extended, for the first time, to the select Service Sector units, Bio-technology units and Power Generating units (up to 10 MW), besides industries in the manufacturing Sector. This policy replaces the erstwhile NEIP, 1997. 9.4.2 The schemes under NEIIPP, 2007 were applicable to all industrial units, in the eight states of NER (including Sikkim) barring the units producing tobacco and manufactured tobacco substitutes, pan masala and plastic carry bags of less than 20 microns, refineries and units engaged in peripheral activities like preservation during storage, cleaning operations, packing, re- packing, labeling or re- labeling, sorting, alteration of retail sale price etc. 9.4.3 follows: i. Schemes under NEIIPP, 2007 are as Central Capital Investment Subsidy Scheme, 2007:- The Scheme provided for subsidy @ 30% of the investment in plant and machinery or additional Schemes for Regional De....
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....velopment for Regio egional Development Schemes ii. investment in Plant and Machinery by way of substantial expansion to all new units as well as existing units which go in for substantial expansion. The scheme was revised on 22.11.2016 and the subsidy was limited to Rs.5.00 crore per industrial unit operating in manufacturing sector and 3.00 crore per industrial unit operating in services sector. Central Interest Subsidy Scheme:- The Scheme provided for interest subsidy @ 3% on the working capital loan availed by an eligible unit from scheduled banks or Central/State financial institutions for a maximum period of 10 years from the date of commencement of production. The scheme has been revised w.e.f. 22.11.2016 and the interest subsidy was available only on term loans of 5-10 years maturity taken to finance capital expenditure on setting up of industrial iii. units or for capital expansion on substantial upgradation/ modernization. The interest subsidy was limited to term loans up to 10.00 crore to subsidize cost of borrowing above Prime Lending Rate (PLR) to the extent of up to 3% p.a. so as to ensure that post-subsidy interest rate does not fall below the PLR of the concerned ba....
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....nk or financial institution. Central Comprehensive Insurance Scheme: The Scheme provided for reimbursement of 100% insurance premium for a maximum period of 10 years from the date of commencement of production. 9.4.4 Since inception of the scheme, 2779.04 crore has been released to the States of NER. In the FY 2019-20, out of the total Budget allocation of Rs.483.53 crore, 326.33 crore has been released as on 31.01.2020. Graph 9.2: Releases under NEIIPP, 2007 (in crore) Releases under NEIIPP, 2007 (Rs. in crore) 700 600 500 400 300 200 100 647.6 294.14 0 2007-08 131.67 86.12 48.17 31.15° 45.45 43.55 12.53 16. 25.49 16.44 13.7 17.87 0 0 4 0 0 0.45 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 194.26 199.36 129.16 122.39 41.03 25.77 26.51 1.87 6.55 6.24 0225 2015-16 78 78 2016-17 2017-18 2018-19 187.2 9.92 27.04 5.15 2019-20 Central Capital Investment Subsidy Scheme Central Interest Subsidy ■Comprehensive Insurance Scheme 9.5 North East Industrial Develop- ment Scheme (NEIDS), 2017: 9.5.1 To promote industrialization in NE States and to boost employment and income generation, a new Scheme namely North East Industrial Development Scheme (NEIDS), 2017 has been notifi....
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....ed on 12.04.2018 which has come into force w.e.f. 01.04.2017 for a 1 period of five years. 9.5.2 The scheme will cover manufacturing and service sector. It will give encouragement to MSME in manufacturing, services. Information technology will be leveraged to process and approve proposals and release of payment. 9.5.3 Various benefits provided under the Scheme are given in table 9.1: Table 9.1: Benefits Provided under the Scheme Central Capital Investment Incentive for access to credit (CCIIAC) 2 Central Interest Incentive (CII) 30% of the investment in Plant & Machinery with an upper limit of 5 Cr. 3% on working capital credit advanced by Scheduled Banks or Central/State financial institutions for first 5 years from the date of commencement of commercial production/operation. The incentive will be so restricted as to ensure that subsidized interest rate is not below the Marginal Cost of funds based Lending Rates (MCLR) of the lending institution. 3 Central Comprehensive Insur- Reimbursement of 100% insurance premium on insurance of ance Incentive (CCII) 4 Income Tax(IT) LO 5 Reimbursement Goods and Services Tax (GST) Reimbursement 6 Employment Incentive (EI) 7 Transport Incentive(....
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....TI) building and Plant & Machinery for 5 years from the date of commencement of commercial production. Reimbursement of Centre's share of income tax for first 5 years including the year of commencement of commercial production. Reimbursement up to the extent of Central Govt. share of CGST and IGST for 5 Years. Additional 3.67% of the employer's contribution to Employees' Provident Fund (EPF) in addition to Government bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY). • 20% of the cost of transportation including the incentive currently provided by Railways/ Railway PSU for move- ment of finished goods by rail from the railway station nearest to industrial unit to railway station nearest to the location of the buyer. • 20% of cost of transportation for finished goods for movement through Inland Waterways Authority of India from the port nearest to the location of industrial unit to the port nearest to the location of the buyer • 33% of cost of transportation of air freight on perishable goods (as defined by IATA) from the airport nearest to place of production to any airport within the cou....
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....ntry, nearest to the location of the buyer. 79 Schemes for Regional Development Schemes for Regional Development 9.5.4 Overall Cap of 200 Cr per unit for benefits under all components subject to investment in Plant and Machinery. 9.5.5 Progress made: Ä°. ii. iii. iv. 9.6 Interactive sessions with stakeholders in the North Eastern Region states for familiarization on NEIDS were held in Guwahati, Itanagar and Tripura. Web portal for registration under NEIDS has been developed & operational. Total no. of applications received on NEIDS web ports are 471. 104 industrial units have been granted registration under the scheme by Empowered Committee. - Special Package Scheme/ Industrial Development Scheme (IDS-2017) for Himalayan States/ Union Territories Himachal Pradesh and Uttarkhand and Union Territory of Jammu & Kashmir and Union Territory of Ladakh Earlier Scheme 9.6.1 Union Territory of Jammu & Kashmir and Union Territory of Ladakh (Package I&II) 9.6.1.1 Industrial policy and other concessions for the Union Territory of J&K and Union Territory of Ladakh were introduced by the DPIIT on 14th June, 2002 for a period of ten years. The package of incentives for the Union Territory of J&....
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....K and Union Territory of Ladakh came to an end on 14th June, 2012. Thereafter revised scheme of central grant for industrial units in the Union Territory of J&K and Union Territory of Ladakh namely "J&K Package-II†was announced which came into effect from 15.06.2012 and remained in force up to 14.06.2017 9.6.1.2 The package provided the following incentives:- i. ii. iii. 9.6.2 Central Capital Investment Subsidy Scheme: All new industrial units and existing industrial units on their substantial expansion, would be eligible for Capital Investment Subsidy @ 15% of the investment of Plant & Machinery, subject to a ceiling of 30 lakhs. In package II the new benefit added i.e. Micro, Small and Medium enterprises would be eligible for Capital Investment Subsidy of 30% of the investment of plant & machinery, subject to ceiling of 3.00 crore and 1.50 crore for manufacturing and service sector respectively. Central Interest Subsidy Scheme: An interest subsidy of 3% on the average of daily working capital loan would be provided to all new industrial units from the date of commencement of commercial production. Central Comprehensive Insurance Subsidy Scheme: An Insurance subsidy to the ....
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....extent of 100% would be admissible during the extended package to all new units and to the existing units on substantial expansion from the date of commencement of commercial production. Himachal Pradesh and Uttarakhand (Package I&II) other 9.6.2.1 Industrial policy and concessions for the States of Himachal Pradesh and Uttarakhand were introduced by the DPIIT on 7th January, 2003 for a period of ten year from 7.1.2003 to 6.1.2013. The scheme I came to an end on 06.01.2013. Thereafter revised scheme of central grant for industrial 80 80 units in Himachal Pradesh and Uttarakhand, namely Package-II was announced which came into effect from 07.01.2013 and remained in force up to 31.03.2017. 9.6.2.2 The package provided the Central Capital Investment Subsidy. All new industrial units and existing industrial units on their substantial expansion, would be eligible for Capital Investment Subsidy @ 15% of the investment of Plant & Machinery subject to a ceiling of 30 lakhs. 9.6.2.3 In package II the new benefit added i.e Micro, Small and Medium enterprises would be eligible for Capital Investment Subsidy of 15% of the investment in plant & machinery subject to a ceiling of 50 lakh. 9.6.3 P....
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....rogress made During the current year 131.75 Cr. got 9.6.3.1 A total amount of released during the current year 2019-20 (up to till date) Rs.79.70 crore to 492 industrial units (Jammu & Kashmir), 31.01 crore to 133 industrial units (Himachal Pradesh) and 21.04 crore to 107 industrial units (Uttarakhand). Table 9.3 : Progress made since inception of the scheme State Ongoing Schemes 9.6.4 Industrial Development Scheme (IDS), 2017 for Union Territory of Jammu & Kashmir and Union Territory of Ladakh and Himachal Pradesh & Uttarakhand. 9.6.4.1 To boost up industrialization in the Himalayan States / Union Territories, Department for Promotion of Industry and Internal Trade (DPIIT) have launched new Industrial Development Scheme (IDS) for Union Territory of Jammu & Kashmir and Union Territory of Ladakh w.e.f. 15.06.2017 up to 31.03.2020 and IDS for Himachal Pradesh and Uttarakhand w.e.f. 01.04.2017 to 31.03.2022. For Union Territory of Jammu & Kashmir and Union Territory of Ladakh extension of scheme beyond 31.03.2020 will be considered after evaluation of the scheme. 9.6.4.2 The Scheme includes the following incentives:- i. Central Capital Investment Incentive for access to credit (CCIIAC....
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....) the All eligible new industrial units and existing industrial units on their substantial expansion in manufacturing and service sector located anywhere in the Union Territories of Jammu & Kashmir and Ladakh will be provided Central Capital Investment Incentive for access to credit (CCIIAC) @ 30% of the new investment in plant and machinery with an upper limit of 5.00 crore. Amount of central assistance released (in crore) No. of Industrial Units benefited Union Territory of 474.87 1160 Jammu & Kashmir and Union Territory ii. Central of Ladakh Himachal Pradesh 371.67 2365 Uttarakhand 350.42 1876 Total 1196.96 5401 81 Comprehensive Incentive (CCII) Insurance All eligible new industrial units and existing industrial units on their substantial expansion located anywhere in the Union Territories of Jammu & Kashmir and Schemes for Regional Development Schemes for Regional Development iii. Ladakh will be eligible for reimbursement of 100% insurance premium on insurance of building and Plant & machinery for a maximum period of 5 years from the date of commencement of commercial production/operation. Central Interest Incentive (CII) (Only for Union Teritory of J&K and Union Teritory of L....
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....adakh) All eligible new industrial units and existing industrial units on their substantial expansion located anywhere in the Union Territories of Jammu & Kashmir and Ladakh shall be given an interest incentive @3% on working capital credit advanced by the scheduled banks or central/state financial institutions for the first 5 years from the date of commencement of commercial production/operation. The incentive will be so restricted as to ensure that subsidized interest rate is not below the Marginal Cost of funds based Lending Rates (MCLR) of the lending institution. 9.6.4.3 The Govt. of India has extended the following additional benefits for the Union Territory of J&K and Union Territory of Ladakh vide notification 2(2)/2018-SPS dated 01.01.2019 with effect from 15.06.2017. iv. GST reimbursement All New industrial units and existing industrial units undertaking substantial expansion shall be eligible for reimbursement of Goods and Services Tax (GST) paid on finished products manufactured in the Union Territories of Jammu & Kashmir and Ladakh up to the extent of Central share of the CGST and IGST for a period of 5 years from the date of commencement of commercial production subje....
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....ct to the following condition: GST reimbursement on finished goods V. vi. is applicable only on the net GST paid, other than the amount of Tax paid by utilization of Input Tax credit under the Input Tax Credit Rules, 2017. Income Tax Reimbursement The industrial unit set up under this scheme can claim reimbursement of Central share of income tax for first 5 years, including the year of commencement of commercial production by the unit. Transport incentive All eligible new industrial units and existing industrial units undertaking substantial expansion can avail incentive on Transportation of only finished goods through railways or the railway public sector undertaking, inland waterways or scheduled airlines for a period of 5 years from the date of commencement of commercial production / operation, subject to production of actual receipt. The terms and conditions of transport incentive through different modes are as follows:- a. Upto 20% of the cost of transportation including the incentive currently provided by railways or the railway PSUs for movement of finished goods by rail from the railway station nearest to the location of industrial unit to the railway station nearest to the....
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.... location of the buyer. b. C. 20% of the cost of transportation for finished goods for movement through Inland Waterways Authority of India from the port nearest to the location of industrial unit to the port nearest to the location of the buyer. 33% of the cost of transportation of Air Freight by scheduled airlines 82 32 and non-scheduled operator permit (NSOP) holders approved by DGCA for perishable items/ goods (IATA) from the airport nearest to the place of production to any airport within the country, nearest to the location of the buyer. vii. Employment Incentive DPIIT shall be paying additional 3.67% of the employer's contribution to Employees' Provident Fund (EPF) in addition to Government bearing 8.33% Employee Pension Scheme (EPS) contribution of the employer in the Pradhan Mantri Rojgar Protsahan Yojana (PMRPY), to the extent the claim is not already covered under PMRPY. In case of Union Territory of J&K and Union Territory of Ladakh, a single unit can avail overall benefits upto Crore. 9.6.4.4 Progress i. ii. 9.7 200 An online portal developed for registration of new Industrial units under the Scheme. 489 (Union Territory of J&K-87, Union Territory of Ladakh- 3, HP- 248....
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.... and Uttarakhand-151) industrial units have already been registered by Empowered Committee. Details of the Indian Footwear Leather and Accessories Development Programme (IFLADP) during 2019-20 9.7.1 Human Resource Development (HRD) sub-scheme: Against the total training target of 1,70,000 trainees for the year 2019- 20, primary skill development training has been provided to 90,608 persons and training of 33,279 persons is under progress (as on date). Further, skill upgradation training of 20,000 workers in leather and footwear sector is under progress. Funds to the tune of 67.17 crore have been released under the sub-scheme. 9.7.2 Integrated Development of Leather Sector (IDLS) sub-scheme: Financial assistance amounting to 40.73 crore has been released for modernization and up gradation of 106 units during 2019-20. Further, assistance amounting to 15.13 crore in respect of 31 units is under process. 9.7.3 Establishment of Institutional Facilities sub-scheme: Approval has been granted for upgradation of seven Footwear Design and Development Institute (FDDI) campuses at Noida, Chennai, Hyderabad, Jodhpur, Patna, Kolkata and Rohtak into Centres for Excellence (CoEs) at the cost of 12....
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....9.62 crores. 1st installment of funds amounting to 38.88 crores has been released to FDDI. 9.7.4 Mega Leather, Footwear and Accessories Cluster (MLFAC) sub-scheme: Final approval has been accorded for the project 'Setting up of Mega Leather Footwear and Accessories Cluster at Calcutta Leather Complex, Bantala, Kolkata' with project cost of 178.84 crore. 'In-principle' approval has been accorded to the project 'Setting up of Mega Leather Footwear and Accessories Cluster at Ratnagiri, Maharashtra'. 9.7.5 Leather Technology, Innovation and Environmental Issues sub-scheme: Approval has been provided for up gradation of 11 CETPs at Dindigul, Ranipet, Ambur, Vaniyambadi, Vellore, Pallavaram, Trichy and Erode districts of Tamil Nadu with total project cost of *506.47 crore and Gol assistance of Rs.354.53 crore. As on date, assistance amounting to *65.48 crore has been released in respect of 9 CETPS i.e. Ranipet, Maligaithope, Thutipet, Vanitec Pertec, SIDCO-I, SIDCO-II, Dintec and PTIETC CETPs. Two CETP projects at Trichy 83 Schemes for Regional Development Schemes for Regional Development and PLIES are under appraisal of Project Management Consultant i.e. Central Leather Research Institu....
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....te, Chennai. 9.7.6 Additional Employment Incentive for Leather, Footwear and Accessories Sector sub-scheme: Total 48 applications have been received under the sub-scheme by the implementing agency i.e. Footwear Design and Development Institute (FDDI). After physical inspection and financial vetting, reimbursement of 92,27,971/- in respect of eligible 48 units/applications has been released. 9.8 Industrial Infrastructure Up- Gradation Scheme (IIUS) and Modified Industrial Infrastructure Up-Gradation Scheme (MIIUS) 9.8.1 Industrial Infrastructure Up- gradation Scheme (IIUS) was launched in 2003 with the objective of enhancing industrial competitiveness of domestic industry by providing quality infrastructure through public private partnership in selected functional clusters/locations which has the potential to become globally competitive. Central assistance upto 75% of the project cost subject to a ceiling of 50 crore was given for each project. The scheme was recast in February, 2009 on the basis of an independent evaluation to strengthen the implementation process. Two stage approval mechanism was introduced, 'Final Approval' was to be given within six months of initial approval af....
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....ter achieving certain milestones. The ceiling of central grant was raised from 50 crore to 60 crore. Under IIUS, 37 projects were sanctioned in the 10th and 11th Five Year Plan Periods, out of these 31 projects have been completed (Appendix- VIII) and 6 projects (Appendix-IX) are under implementation. These projects were provided central assistance of Rs.1429.25 crore (up to 23.12.2019), out of sanctioned central grant of 1455.64 crore. 84 9.8.2 In 2011, the Recast IIUS was evaluated for its effectiveness and continuation in the 12th plan period by the National Productivity Council (NPC). The NPC had conducted the evaluation & observed the following: i. ii. iii. iv. V. vi. IIUS interventions contributed immensely in the technological up-gradation of the clusters; Revenue of the industries under cluster including exports alongwith employment has increased after interventions under IIUS; Provided a robust platform for development of common facilities such as R&D Labs, Skill up-gradation centre, Common Effluent treatment Plant (CETP) and basic infrastructure; About 80% of industrial units in projects are under Micro & Small Enterprises (MSE) category, hence, it is beyond their financi....
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....al capacity to invest in infrastructure facilities independently. Majority of the cluster have taken up green initiatives. Majority of the clusters are self- sustainable. 9.8.3 The scheme was continued after being renamed as MIIUS (Modified Industrial Infrastructure Up-Gradation Scheme) with effect from July, 2013. 9.8.4 Under MIIUS, projects have been undertaken to upgrade infrastructure in existing Industrial Parks/ Estates/ Areas. Greenfield Projects have also been undertaken in backward areas and North Eastern Region (NER). Projects are being implemented by the State Implementing Agency (SIA) of the State Government. Central Grant upto 50% of the project cost with a ceiling of 50 crore is provided under MIIUS with at least 25% 85 contribution of State Implementing Agency. In case of North Eastern States, the central grant and minimum contribution of the SIA are up to 80% and 10% respectively. At present, 20 projects have been sanctioned under MIIUS, out of which 5 projects have been completed (Appendix-VIII) and remaining 15 are under implementation (Appendix-IX). These projects have been provided central assistance of 329.58 crore (up to 23.12.2019), out of sanctioned central ....
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....grant of 354.91 crore. 9.8.5 Further, for continuation of MIIUS beyond the 12th Five-Year Plan, Department prepared Expenditure Finance Committee (EFC) memorandum for the period 2017-18 to 2019-20. However, it has been decided in EFC meeting that extension of scheme may be taken up after completion of the ongoing projects (IIUS/MIIUS). Schemes for Regional Development 10 Chapter Specific Industries and their Development Cement Industry 10.1 10.1.1 Cement Industry is amongst eight core industries of India, Indian cement industry is second largest in the world in terms of capacity and it plays a vital role in the growth and economic development of the country. The industry plays a crucial role in the development of the housing and infrastructure sector of the economy. It has strong linkage to other sectors such as infrastructure, construction, housing, transportation, coal, power, steel etc. It plays pivotal role in implementing various government schemes like Housing for All, Smart Cities, Concrete Highways, Dedicated freight Corridors, Clean India Mission, Ultra Mega Power Projects, Waterways etc. India's cement demand is expected to reach 550-600 Million Tonnes per annum by 2025. ....
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....10.1.2 Bureau of Indian Standards in India have specified 14 types of cements and clinker specification. These include Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Slag Cement (PSC), Composite Cement and other special purpose cements. Among all these, three most common cement types produced in India are OPC, PPC and PSC. 10.1.3 Capacity and Production of Cement 10.1.3.1 Cement is one of the most technologically advanced industries in the country. The modern Indian Cement plants are state-of-the-art plants and are comparable to the best in the world. 10.1.3.2 The Indian Cement Industry has managed to keep pace with the global technological advancement. The induction of advanced technology has helped the industry immensely to improve its efficiency by conserving energy, fuel and addressing the environmental concerns. 10.1.3.3 The total installed capacity of Indian Cement Industry is about 537 Million Tonnes. The capacity utilization of Indian Cement Industry during the last 10 years has fallen from 83% to 60%. The continuous downward trend of capacity utilization is indicative of the idle capacity of over 200 million tonne which is growing year by year. T....
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....he cement industry comprises of 144 integrated large cement plants 107 grinding units, 62 mini cement plants and 5 clinkersation unit. Cement consumption in India is around 240 kg per capita against global average of 530 kg per capita, which shows significant potential for the growth of industry. The Production of cement during the year 2018-19 was 337.32 Million Tonnes (MT) and during the year 2019-20 (up to October, 2019), it was 189.74 Million Tonnes (MT). 10.1.3.4 A large number of plants have installed waste heat recovery (WHR) System power for power cogeneration. The main barrier to the large scale adoption of the cogeneration technology is the high investment cost. Specific Industries and their Development 86 10.1.3.4.5 Cement Information System (CIS) Portal was launched in 2014 for compilation of data regarding capacity, production etc. from cement plants in the country; format for data collection has been simplified to ease complex data requirement and the same is now available for user industries. Users from the Industry can submit their monthly production details on the portal. Currently around 95% of Cement Units submits their Cement Production data on CIS Portal on mon....
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....thly basis. 10.1.3.6 Revised compendium “The Cement Industry India 2019" has been released by Hon'ble CIM on 03.12.2019 during the 16th NCB International seminar on Cement, Concrete and Building Materials at Manekshaw Centre, Parade Road, New Delhi. The revised version of Compendium on Cement Industry has been prepared by NCCBM. The objective of Compendium is to provide all stakeholders of Indian Cement Industry, the technical and technological status, research and innovation needs, issues and challenges such as sustainability, future outlook, climate change action etc. along with updated directory of the cement plants. The compendium amalgamates the details information on Indian cement sector and would be a coveted document giving details about Indian cement industries to be utilized by industry, policy planners, researchers, machinery manufacturers, academicians and so on. 10.1.3.7 National Council for Cement and Building Materials (NCCBM) is an autonomous organisation registered as a society under the Societies Registration Act, 1860, under administrative control of this Department. The Council provides scientific, technological and industrial services support to the cemen....
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....t, related building materials and construction industries, and carries its activities through its units located at Ballabgarh, Hyderabad, Ahmedabad and Bhubaneswar. 10.2 Explosive Industry Explosives 10.2.1 There are 138 Manufacturing Plants and 154 Site Mixed Explosives Plants in the medium and Small Scale Sector, engaged in the production of Explosives. The installed and production capacity for last 5 years is as follows: Table 10.1 Production of Explosives during the last 5 years : Annual Installed Description Licenced capacity (MT) 2015-16 2016-17 2017-18 2018-2019 2019- 20 Up to 31.12.2019 Class 1 Gun Pow- 855.55 552.165 662.038 684.914 636.986 der (Metric Tonnes) Class 2 (a) Cartridges (b) Site Mixed (Metric Tonnes) Class 3 Div-2 Booster and PETN* (Metric Tonnes) Class 6 Div 1 Safety Fuse (Million meters) Class 6 Div 2 Detonating fuse (Million mtrs) 381.92 330878.12 691046 378989.95 409488.87 475957.172 538652.527 1633675.5 762850.37 802238.10 844193.966 857266.694 536945.65 21149.67 7996.384 9079.647 9207.044 10203.326 6868.499 261.6 61.1 53.26 58.952 53.098 24.11 708 479.6 612.828 674.976 696.401 481.95 Class 6 Div 3 Detonators (Million no.) *PETN- Penta Erythritol Tetra Ni....
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....trate 1166.15 969 1120.731 983.962 1034.129 831.99 87 Specific Industries and their Development Specific Industries and their Development 10.2.2. Export and Import of Explosives: 10.2.2.1 PESO has issued 108 Nos of license for import of explosives and 442 Nos of licenses for export of explosives. The values of export and import of explosives for last 5 years is as follows: 55 2015-16 Graph 10.1 718 573 78 2016-17 49 2017-18 511 71 2018-19 660 29 549 2019-20 up to 31.12.2019 10.3 10.3.1 Value of imports (Rs in Cr) Leather Industry Leather Industry plays an important role in the Indian economy in view of its substantial overall output, export earnings and employment potential. The export of leather and leather products from India has undergone Table 10.2: India's Export performance of the â– Value of exports (Rs in Cr) a structural change In the last two decades, share of leather footwear, leather garments, leather goods, footwear components and several articles of leather in the total exports has increased substantially as a result of the Government's policy to encourage export of value added leather products. leather & footwear sector during the last years Value in US$ MN 2014-....
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....15 2015-16 2016-17 2017-18 2018-19 April-Oct 2019 Finished leather 1329.05 1046.45 886.39 874.24 721.73 326.73 Leather 2278.18 2147.98 2128.87 2193.86 2195.47 1244.99 footwear Footwear 361.29 284.34 298.69 335.24 319.10 156.72 components Leather 604.35 553.11 535.66 518.96 468.48 264.78 garments Leather goods 1452.83 1370.04 1316.63 1365.79 1434.24 811.77 Saddlery and 162.7 146.38 142.35 155.97 159.35 92.41 harness Non-leather 306.44 306.74 338.21 296.91 392.63 186.45 footwear Total 6494.84 % Growth 9.37% 5855.04 -9.85% 5646.80 -3.56% 5740.97 1.67% 5691.00 3083.85 -0.87% -6.66% 88 10.4 Light Electrical Industry Sector The Light Electrical Industry is a diverse sector having a number of distinct products and sub- products. It includes goods like electrical wires and cables, transmission tower, cranes, lifts & escalators, refrigerators, washing machine, air conditioners, storage batteries, dry cell batteries, electrical lamps & tubes etc. A brief of some of these industries is given below:- 10.4.1 Electrical wires and cables 10.4.1.1 Electrical wires and cable industry is one of the earliest industries established in the country in the field of electrical products. A wide range of wi....
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....res and cables are manufactured in the country which includes communication cables such as jelly filled telephone cables, optic fibre cables, local area network cables, switchboard cables, co-axial cables, VSAT cables, electrical cables such as electrical wires, winding wires, automotive/battery cables, UPS cables, flexible wires, low voltage power cables and EHT power cables. The power cable industry may be mainly divided into four segments viz: house wiring (up to 440V), LT (1.1 to 3.3kV), HT (11 to 66kV), EHV (66kV and above). Well-established R & D facilities are key factors for development of this industry. In India, renowned laboratories like Central Power Research Institute (CPRI), Electrical Research and Development Association (ERDA) are well equipped with the most advanced product testing facilities to meet international standards. The production of different type of cables in 2018-19 and 2019-20 was as follows: Table 10.3 Production of Different Types of Cables S.No. Item/item groups A/C Unit 2018-19 2019-2020 (Apr.-Nov.) 1. Fiber Optics/optical fiber cables Th. Kilo Me 20,018.93 5,592.83 Electronic/electrical conductor 2. Tonnes 5,84,106.09 3,40,847.64 Wire (single or m....
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....ultiple strands) 3. PVC Insulated Cable Th.Core Km 5,313.61 3,324.62 4. Rubber insulated Cables K. Meter 67,862.79 48,520.72 5. Jelly Filled Cables 6. ACSR Conductors Th.Core Km Tonnes 3,390.46 2,365.33 1,23,470.57 68,562.48 10.4.1.2 The export of wires and Cables (HS Code 7413 & 8544) in 2018-19 was Rs.651,721.76 lakhs and in 2019-20 (Apr.- Nov.) is 534,623.99 lakhs respectively whereas the import of wires cables in 2018- 19 was 802962.37 and in 2019-20 (Apr- Nov.) is 476,512.89 lakhs respectively. 104.2 Transmission Towers 10.4.2.1 Transmission towers support high voltage transmission lines which carry electricity over long distance. These lines 89 typically feed into sub-station so that the electrical voltage can be reduced to a level that can subsequently be used by the customers. There is an increasing trend in India to have larger power stations, particularly mega and ultra-mega power projects. Consequently while there would be fewer but larger powers generating stations, the demand for transmission of energy would grow substantially. The move to integrate India's transmission networks through a national grid of inter-regional transmission lines will Specific Industries and t....
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....heir Development Specific Industries and their Development facilitate transfer of power from surplus regions to deficit regions. The industry has facilities for testing transmission towers up to 1000 KV with the objective of catering to future growth of transmission systems in the country as well as to export demand. 10.4.2.2 The production of Steel frame work or skeletons for construction of towers including pit props in 2018-19 was 930.72 Th. Tonnes and in 2019-20 (Apr.-Nov.) is 559.15 Th. Tonnes respectively. The export of towers & Lattice Masts (HS Code 730820) in 2018-19 was 208,482.62 Lakhs and in 2019-20 (Apr.-Nov.) is 162,192.93 Lakhs respectively whereas the import in 2018-19 was 3594.89 Lakhs and in 2019-20 (April- Nov.) is 1851.82 Lakhs respectively. 10.4.3 Cranes 10.4.3.1 Cranes and hoists are an important category of material handling equipment required by almost all sectors across the industry. Wide range of cranes are manufactured in the country and these include Electric Overhead Travelling (EOT) cranes, mobile cranes, ladle cranes, hydraulic decks, crab cranes, floating cranes, controller cranes, etc. There is a good potential for growth of this sector in view of i....
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....ncreased industrial activities in various fields as well as construction industry. 10.4.3.2 The production of cranes- all types in 2018-19 was 13292.04 tonnes and in 2019-20 (Apr.-Nov.) is 6616.87 tonnes. The export of cranes-all types (HS Code No.8426) in 2018-19 was 77,397.55 Lakhs and in 2019-20 (Apr.-Nov.) is Rs.54287.42 Lakhs respectively whereas the import in 2018-19 was Rs.289,106.56 Lakhs and in 2019-20 (April- Nov.) is 175,632.33 Lakhs respectively. 10.4.4 Lifts and Escalators 10.4.4.1 The use of lifts and escalators is increasing rapidly due to substantial 90 90 investments in construction of multi- storied housing complexes, large malls and supermarkets of international standards, modernization of airports and railway stations apart from industrial sectors. A wide range of lifts and escalators are manufactured in India. These include single speed, double speed, gearless, hydraulic, servo and Variable Voltage Variable Frequency (VVVF) elevators. 10.4.4.2 The export of Lifting, Handling, Loading/Unloading, Machinery etc. (HS Code No. 8428) in 2018-19 was 130,481.85 lakhs and in 2019-20 (Apr.-Nov.) is Rs.87,290.90 lakhs respectively whereas the import in 2018-19 was 435,174....
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.....43 lakhs and in 2019-20 (April-Nov.) is 296,877.22 lakhs respectively. 10.4.5 Refrigerators 10.4.5.1 In India, refrigerators have the highest aspiration value of all consumer durables with the exception of television. The refrigerator Industry has become highly competitive. A number of brands have entered the market and the consumers have wider choices. There are two basic designs adopted in refrigerators presently being manufactured in the country. These are commonly referred to as Direct Cool (DC) and Frost Free (FF) Refrigerators. There has been gradual consumer preference shift towards frost free segment. Increasing number of dual income households are shifting the demand from the conventional 180L refrigerators to the larger 220L and higher capacity refrigerators with double doors. 10.4.5.2 The production of refrigerators for domestic use in 2018-19 was 15,635.61 Th. Nos. and in 2019-20 (Apr.-Nov.) was 10,210.84 Th. Nos. The export of Refrigerators, Frzrs & Other Refgrtng. (HS Code 8418) in 2018-19 was Rs.156,852.95 lakhs and in 2019-20 (Apr.-Nov) is 100,218.16 lakhs respectively whereas the import in 2018-19 was Rs.391,971.77 lakhs and in 2019-20 (April-Nov.) is Rs.281,421.7....
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....7 lakhs respectively. 10.4.6 Washing Machines 10.4.6.1 The washing machine market in India can be divided into semi-automatic and fully-automatic. With rising disposable incomes and higher aspirations, there is a gradual shift towards higher capacity washing machines and also towards fully-automatic washing machines. Controls are changing from purely mechanical to fully electronic as microcontrollers are incorporated into the designs. While providing intelligence, microcontrollers boost reliability, drive down costs and improve energy efficiency. 10.4.6.2 The production of washing machines/ laundry machines by the units in the organized sector in 2018-19 was 6892.62 Th. Tonnes and in 2019-20 (Apr.-Nov.) is 4651.64 Th. Tonnes. The export of washing machines (HS Code 8450) in 2018-19 was 28,624.16 Lakhs and in 2019-20 (Apr.-Nov.) is Rs.20,724.71 Lakhs respectively whereas the import of washing machines/laundry machines in 2018-19 was 167,078.58 lakhs and in 2019-20 (Apr.-Nov.) is Rs.118.738.29 lakhs respectively. 10.4.7 Air Conditioners 10.4.7.1 Air Conditioners are gradually being treated as a necessity in changed Socio- economic environment with changing life style. The air-conditi....
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....oners' market can be classified into three segments: window AC, split AC and central AC. The split ACs are gaining popularity due to limitation of space and increase in number of people living in flats in multi-storied complexes and also due to less noise. Bureau of Energy Efficiency (BEE), a statutory body under the Ministry of Power has introduced energy efficiency based star rating for air conditioners to help consumers to buy the best energy efficient products. 10.4.7.2 The production of air conditioners by units in the organized sector in 2018- 19 was 3515.88 Th. Tonnes and in 2019- 20 (April-Nov.) is 2036.16 Th. Tonnes. The export of air conditioners (HS Code 8415) in 2018-19 was Rs.115,269.95 lakhs and in 2019-20 (Apr.-Nov.) is 86,055.82 lakhs respectively whereas the import in 2018-19 was Rs.834,369.59 lakhs in 2019-20 (April- Nov.) is 428,555.91 lakhs respectively. 10.4.8 Lead Acid Storage Batteries 10.4.8.1 Lead Acid Batteries are accumulators of current and power which is discharged over a period of time. They are used in vehicles and also for various industrial uses such as for back up power for UPS application, control rooms, power stations, telecommunications, etc. In....
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.... addition, it is also used for emergency lights for houses, telephone systems and as power source for mining etc. A new application of Lead Acid Batteries has emerged today in electric vehicles. The average life of the battery is approximately 2 years, hence these batteries will be needed as replacement throughout the life of the vehicle or the machinery in use. Although there are few large scale manufacturers of the product in India, there are large numbers of very small scale units manufacturing the product in a most unorganized manner. The product manufactured by them normally does not meet the required standards as specified by BIS. In order to ensure safe disposal of lead acid batteries, Ministry of Environment and forest has issued a notification Batteries (Management and Handling) Rules, 2001 under Environment (Protection) Act 1986. 10.4.8.2 The production of lead acid batteries by the units in the organized sector in 2018- 19 was 146,806.28 Th. Tonnes and in 2019- 20 (Apr.-Nov.) is 100,674.05 Th.Tonnes respectively. The export of lead acid batteries (HS Code 8507) in 2018-19 was 263,175.01 lakhs and in 2019-20 (Apr.-Nov.) is 91 Specific Industries and their Development Spec....
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....ific Industries and their Development *199,277.19 lakhs respectively whereas the import in 2018-19 was 119,6774.42 lakhs and in 2019-20 (Apr.-Nov.) is Rs. 852,475.39 lakhs respectively. 10.4.9 Dry Cell Batteries 10.4.9.1 Dry cell batteries are one of the most commonly used items. These are the oldest type of batteries which are still being used. Performance of dry cell batteries has undergone progressive improvements through technological developments. New types of dry cell batteries with longer shelf life and greater dependability and also rechargeable cells have come up. Nickel cadmium batteries and other rechargeable batteries are manufactured in the country to meet the requirement of defence, telecommunications and electronics. The growing popularity of cellular phones, laptops and imported toys could open the market for a new range of batteries that are not produced at present 10.4.9.2 The production of Dry Cells & Primary Cells & Batteries in 2018-19 was 12,93,403.48 Th. Nos. and in 2019-20 (Apr.- Nov.) was 839,299.12 Th. Nos. The export of dry cell batteries (HS Code 8506) in 2018-19 was Rs.6,943.02 lakhs and in 2019-20 (Apr.- Nov.) is 9,097.16 lakhs respectively whereas the....
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.... import in 2018-19 was Rs.57,611.33 lakhs and in 2019-20 (April-Nov.) is 28,400.02 lakhs respectively. 10.4.10 Electrical Lamps and Tubes 10.4.10.1 Wide range of lamps and tubes are being manufactured in the country which include general lighting service lamps such as incandescent bulbs, halogen lamps, gas discharge lamps such as fluorescent tube light, compact fluorescent lamp, high pressure mercury vapour lamps, metal halide lamps, low pressure and high pressure sodium vapour lamps and variety of special lamps. The higher energy cost have led to the development of energy efficient lamps consuming less power and giving output as close to daylight. Compact Fluorescent Lamps (CFL) which consume about 20% of the electricity for the same light output and last up to 8 times longer than the GLS are getting more popular. LEDs have a great potential to provide highly efficient lighting with little environmental pollution in comparison to the incandescent lamps (ICLs) and fluorescent lamps (FTLs, CFLs). Penetration of LEDs in India could significantly reduce lighting load as almost 22-25% of electricity is consumed for lighting, which is also a major contributing factor of peak demand. Due....
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.... to higher costs, LEDs are not very popular even though its production has started in the country. 10.4.10.2 The production of Fluorescent Lamps/tubes & Incandescent Lamps by units in the organized sector in 2018-19 & 2019- 20 was as follows: Table 10.4: Production of Fluorescent Lamps/tubes & Incandescent Lamps by units in the organized sector in 2018-19 and 2019-Nov 2020 S.No. Item/item group A/C Unit 2018-19 2019-2020 (Apr.-Nov) 1. Fluorescent Lamps Th. Nos. 1,62,257.16 88,258.81 2. Incandescent Lamps Th. Nos. 5,45,535.01 3,07,446.70 92 92 10.4.10.3 The export of electric lamps & Lighting fittings including tubes (HS code- 9405) in 2018-19 was Rs.105,725.64 lakhs and in 2019-20 (Apr.-Nov.) is Rs.81,088.03 lakhs respectively whereas the import in 2018- 19 was Rs.455,899.82 lakhs and in 2019-20 (Apr-Nov) is 276,226.52 lakhs respectively. 10.5 Light Sector: Engineering Industry The light Engineering Industry is a diverse industry with the number of distinct sectors. This industry includes mother of all industries like castings and forgings to the highly sophisticated micro-processor based process control equipment and diagnostic medical instruments. This group also includes industr....
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....ies like bearings, steel pipes and tubes, fasteners, etc. The products covered under the engineering industry are largely used as input to the capital goods industry. Hence the demand of this sector in general depends on the demand of the capital goods industry. 10.5.1 Roller Bearing Industry essential 10.5.1.1 Roller bearings are components in the rotating parts of virtually all machines such as automobiles, electric motors, diesel engines, industrial machinery & machine tools, etc. Bearings are used in diversified fields. Hence, the product range is vast and diversified. The indigenous manufacturers are manufacturing bearings of quality and precision at par with world renowned manufacturers in the diversified range of general purpose where the demand is large to justify indigenous production on economic consideration. Bearings, generally used for special applications that require high technology are still being imported. There is a considerable scope for development of bearings of smaller size and lighter weight with improved performance in harsh operating conditions like high or low temperature. Automobile industry accounts for bulk of the total demand of this industry with esti....
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....mated share of 35%, electrical industry's share is 12%, after market (replacement) share is 40% and the remaining 13% consumption is by other industries. 10.5.1.2 The production of Roller and Ball bearings in 2018-19 was 17,477.58 lakh Nos. and in 2019-20 (Apr.-Nov.) is 11,293.09 lakh Nos. The export of ball & roller bearings (HS code 8482) in 2018-19 was Rs.4,11,439.91 lakhs and in 2019-20 (Apr.-Nov.) is *264,239.31 lakhs respectively whereas the import in 2018-19 was Rs.867,902.67 lakhs and in 2019-20 (April-Nov.) is Rs.498,625.80 lakhs respectively. 10.5.2 Ferrous Castings 10.5.2.1 Ferrous castings are pivotal to the growth and development of engineering industries since these constitute essential intermediates for automobiles, industrial machinery, power plants, chemical and fertilizer plants etc. Indian foundry industry is the third largest in the world. This industry is now well established in the country and is spread across a wide spectrum consisting of large, medium, small and tiny sector. The salient feature of the foundry industry in India is its geographical clustering. Typically, each foundry cluster is known for catering to some specific end use markets. For example, ....
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....the Coimbatore cluster is famous for pump sets castings, the Kolhapur and Belgaum cluster for automotive castings, Rajkot cluster for diesel engine castings and Batala and Jalandhar cluster for machinery parts and agricultural implements. Advanced countries like USA, Japan, and Germany are unlikely to add much capacity due to stringent pollution control norms there. India can thus have a dominant presence in this field and can become an important casting supplier to the world. 93 Specific Industries and their Development Table 10.5: Production of cast iron casting & castings products of iron/steel for sanitary fitting by units in the organized sector in 2018-19 & 2019-20 S. No. Item/item group A/C Unit 2018-19 2019-2020 (Apr.-Nov.) 1. Cast iron casting Th. Tonnes 1,291.73 684.79 2. casting products of iron/steel for sanitary Crore 2,608.13 1,664.13 10.5.2.3 The export of cast articles of iron or steel (HS Code 7325) in 2018-19 was Rs.801,444.93 lakhs and in 2019-20 (Apr.- Nov.) is *499,425.54 lakhs respectively whereas the import in 2018-19 Rs.107197.03 lakhs and in 2019-20 (April- Nov.) is 55,356.13 lakhs respectively. 10.5.3 Process Control Industry was Instrument 10.5.3.1 Proces....
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....s control instruments cover wide range of instruments and systems required for monitoring and measurement of physical, chemical and biological properties. They are used for measurement and control of process variables like pressure, temperature, humidity, liquid level, flow, specific gravity, chemical composition including pH and many forms of spectrometry and spectrophotometry. The process control instruments have become an integral part of the modern industrial activity. This industry is a key industry which provides tools for automation. Their importance is significant in high cost large and sophisticated process industries like fertilizer, steel, power plant, refineries, petrochemicals, cement & other process industries. The present technology is a microprocessor based centralized control system. 10.5.3.2 The export of process control instruments (HS code 9032) in 2018-19 was 187,278.96 lakhs and in 2019-20 (Apr.-Nov.) is 132,865.19 lakhs respectively whereas the import in 2018-19 was *656,326.68 lakhs and in 2019-20 (April- 94 Nov.) is 411,479.31 lakhs respectively. - 10.5.4 Seamless Steel Pipes & Tubes 10.5.4.1 Seamless steel pipes and tubes are produced in different sizes. T....
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....he wide size range makes them suitable for use in number of versatile area of application. The process of manufacture imparts strength and durability to the pipes and thus can be used for corrosion resisting applications. These pipes are also used for aircraft, missile and anti-friction bearing, ordinance, etc. Ultra high strength and corrosion-resistant properties make these perfect for oil and gas industry, chemical industry and automobile industry. Oil sector accounts for around 60% of the total requirement of seamless pipes. Bearings and boiler sector contribute around 30% of demand. The Industry is able to manufacture tubes up to 14†outer diameter. 10.5.4.2 The export of Tubes, pipes & Hollow profiles, seamless of iron (other than cast iron or steel) industry (HS code 7304) in 2018- 19 was 247,743.00 lakhs and in 2019-20 (Apr.-Nov.) is 156,783.63 lakhs respectively whereas the import in 2018-19 was *686,192.19 lakhs and in 2019-20 (April- Nov.) is 506,517.19 lakhs respectively. 10.5.5. Electrical Resistance Welded (ERW) Steel Pipes & Tubes. 10.5.5.1 Based on the customers' requirement, ERW steel pipes and tubes are available in various qualities, wall thickness and diam....
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....eters Specific Industries and their Development of the finished pipes. High performance ERW steel pipes and tubes possess high corrosion resistance, high deformability, high strength and high toughness. These pipes are used in fencing, lining pipes, oil country tubular, scaffolding, water and gas conveyance etc. There has been tremendous increase in the production of ERW steel pipes due to higher demand in oil and gas industry, infrastructure and automobile uses. There are a large number of units in the MSME Sector. 10.5.5.2 The export of ERW steel pipes and tubes (HS code 73059021, 73059029, 73069011 & 73069019) in 2018-19 was *26,682.24 lakhs and in 2019-20 (Apr.-Nov.) is 13,292.83 lakhs respectively whereas the import in 2018-19 was Rs.5,088.87 lakhs and in 2019-20 (April-Nov.) is Rs.994.95 lakhs respectively. 10.5.6 Submerged-Arc Welded (SAW) pipes 10.5.6.1 There are two types of SAW pipes namely longitudinal and helical welded SAW pipes. Longitudinal SAW pipes are preferred where thickness of pipe is more than 25mm and in high pressure gas pipe line. Helical welded SAW pipes are used for low pressure applications. The cost of helical SAW pipes is less than longitudinal pipes. ....
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....There is huge demand of SAW pipes in the country due to transportation of oil and gas and transmission of water. 10.5.6.2 The export of SAW pipes & other tubes & pipes Industry (HS code 7305) in 2018-19 was 277,358.06 lakhs and in 2019-20 (Apr.-Nov.) is 223,569.38 lakhs respectively whereas the import in 2018-19 was Rs.14,430.82 lakhs and in 2019-20 (April- Nov.) is 16,768.36 lakhs respectively. 10.5.7 Industrial Fasteners 10.5.7.1 The fastener industry in India may be classified into two segments: high tensile and mild steel fasteners. High tensile and mild steel fasteners broadly include nuts, bolts, studs, rivets and screws. Mild steel fasteners are primarily manufactured by the unorganized sector while high tensile fasteners requiring superior technology are dominated by companies in the organized sector. Automobile industry accounts for bulk of the total demand of this industry. Consumer durables and railways are the other primary users of the high tensile fasteners. Automobile sector is likely to drive growth in the fastener industry. 10.5.7.2 The production of Fasteners/bolts and nuts in the organized sector in 2018-19 was Rs.3,197.17 Crore and in 2019-20 (April-Nov.) is 1,6....
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....96.37 Crore. The export of screws, bolts, nuts coach screws / hooks industrial (HS code 7318) in 2018-19 was Rs.4,20,802.67 lakhs and in 2019-20 (Apr.-Nov.) is Rs.263,470.08 lakhs respectively whereas the import in 2018- 19 was 666,288.03 lakhs and in 2019-20 (Apr.-Nov) is 397,101.06 lakhs respectively. 10.5.8 Steel Forgings are 10.5.8.1 Forgings intermediate products used widely by original equipment manufacturers in the production of durable goods. The composition of the Indian forging industry can be categorized into four sectors - large, medium, small and tiny. A major portion of this industry is made up of small and medium units/enterprises (SMEs). The industry was previously labour intensive but with increasing globalization it is becoming more capital intensive. Among the industries that depend on forgings are automotive; agricultural machinery and equipment; valves, fittings, and petrochemical applications; hand tools and hardware; off-highway and railroad equipment; general industrial equipment; ordnance, marine and aerospace. The key driver of demand of forging is the automobile 95 95 Specific Industries and their Development Specific Industries and their Development indu....
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....stry. About 65% of the total forging production is used in this sector. 10.5.8.2 The production of Fabricated metal products including forged blanks and other article iron or steel in the organized sector in 2018-19 was 156,597.25 tonnes and in 2019-20 (Apr.-Nov.) is 98,591.76 tonnes. The export of Fabricated metal products including forged blanks and other article iron or steel industry (HS code 7326) in 2018- 19 was 817,439.41 lakhs and in 2019-20 (Apr.-Nov.) is 494,902.46 lakhs respectively whereas the import in 2018-19 was *627,133.44 lakhs and in 2019-20 (April- Nov.) is 401,798.27 lakhs respectively. 10.5.9 Bicycle Industry 10.5.9.1 The bicycle industry of India is one of the most established industries. India is the second largest bicycle producer of the world, next only to China. Most of the manufacturing units are located in Punjab and Tamil Nadu with Ludhiana (Punjab) being a major Bicycle production hub. The industry is making endeavour for enhancing export since there is a significant scope for export of Indian bicycles, bicycle spare parts and bicycle accessories. Bicycle companies in India are now focusing on urban markets and are looking to expand their base in the p....
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....rofessional and adventure categories. 10.5.9.2 The production of bicycles-all type in the organized sector in 2018-19 was 10,246.01 Th. Nos. and in 2019-20 (Apr.- Nov.) is 5,552.34 Th. Nos. The export of bicycle & other cycle industry (HS code 8712) in 2018-19 was 33,735.69 lakhs and in 2019-20 (Apr.-Nov.) is Rs.21,840.53 lakhs respectively whereas the import in 2018-19 was $36,494.90 lakhs and 2019-20 (April- Nov.) is 14,707.71 lakhs respectively. 96 96 10.6 Light Industrial Machinery Sector 10.6.1 Food Processing Machinery 10.6.1.1 The Indian market for Forged metal products for tools and machinery or food processing machinery has been growing steadily fuelled by strong domestic demand for processed food and beverage products spurred by increase in income level, increasing number of women joining the work force, rapid urbanization, changing life style and mass media promotion. The most promising areas of growth are fruit and vegetable processing, meat, poultry, dairy & seafood, packaged/ convenience food, soft drinks and grain processing. Food Processing Sector is expected to grow at a healthy pace considering the rapid changes in food habits and consumerist culture developing in....
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.... the country. The machinery manufacturers have honed their expertise in manufacturing dairy machinery and other core equipment of food processing machinery. 10.6.1.2 The production of Forged metal products for tools and machinery or food processing machinery in the organized sector in 2018-19 was 9,598.18 Crore and in 2019-20 (Apr.-Nov) is Rs.4,797.04 Crore. The export of food processing machinery (HS code 8438) in 2018-19 was 108,248.27 lakhs and in 2019-20 (Apr.-Nov.) is Rs.64,457.99 lakhs respectively whereas the import in 2018- 19 was 148,890.78 lakhs and in 2019-20 (April-Nov.) is 89,644.09 lakhs respectively. 10.6.2 Packaging Machinery Industry 10.6.2.1 Packaging of consumer products or industrial products is emerging as the USP in the marketing strategies. Developments in packaging technology have not only contributed to improving the aesthetic appeal of the products but also the shelf life. In some cases specialized packaging becomes a technical necessity. Considering the growth prospects in industrial sector and growing consumer awareness of packaging, it is expected that there would be substantial growth in this area. There is a wide range of packaging machinery availabl....
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....e in the country covering packaging of vast range of items. Some of the commonly available packing machinery includes machines for coding and on-line printing machines, feeding and labelling machines, strip packaging, form fill and seal machines, carton filling, fully automatic bag making machinery and automatic micro processor controlled packaging machines. 10.6.2.2 The export of packaging machinery industry (HS code 842220, 842230 & 842240) in 2018-19 was 103,993.87 lakhs and in 2019-20 (Apr-Nov) is Rs.68,261.14 lakhs respectively whereas the import in 2018-19 was 284,365.66 lakhs and in 2019-20 (Apr. -Nov.) is Rs.151,175.85 lakhs respectively. 10.6.3 Water Equipment Pollution Control 10.6.3.1 Due to growing awareness regarding water pollution and stringent environmental control standards being enforced for various uses including process industries, the water/ waste water treatment industry is poised for huge growth. The various categories of water pollution control equipment broadly include waste water treatment plants, drinking water treatment plants and effluent treatment plants. Water/waste water treatment is the process of removing contaminants and it includes physical, chem....
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....ical and biological processes to remove physical, chemical and biological contaminants. The primary treatment is the first step in the treatment process and involves the removal of pollutants that settles or floats. The common industrial equipments are clarifiers and oil-water separator devises. The secondary treatment is designed to substantially degrade the biological content of the sewage. The common equipments are activated sludge, filters, biological reactors etc. The tertiary treatment is a polishing step to remove contaminants that missed in the primary and secondary treatment and removal of suspended solids, refractory organics and toxic components. Tertiary physical processes are filtration and carbon absorption. Chemical process includes precipitation, oxidation and neutralization. The biological processes involve biodegrading. Organisms such as bacteria, fungi, yeasts and algae are commonly used to break down the organic matters. The cell tissues are then removed from the treated water by physical method like clarification. The complete plants are manufactured mostly in the organized sector and many types of equipment are manufactured in the MSME Sector as well. 10.6.3.2....
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.... The export of Filtering and purifying machinery/Equipment (HS code 842121) in 2018-19 was Rs.96,109.69 lakhs and in 2019-20 (Apr.-Nov.) is 76,296.63 lakhs respectively whereas import in 2018-19 was Rs.78,414.16 lakhs and 2019-20 (April-Nov.) is 54,189.91 lakhs respectively. 10.6.4 Air Pollution Control Equipment 10.6.4.1 Industrialization and urbanization have resulted in a profound deterioration of India's air quality. India's most severe environmental problem, come in several forms, including vehicular emissions and untreated industrial smoke. Air pollution in the country especially in metropolitan cities and large towns has assumed great significance with the adoption of stringent environmental control standards for various industries. Hence the pollution control equipment industry has acquired importance. Further judicial pronouncements have given a definite direction and urgency for adoption of air pollution control measures. The choice of control method depends on factors such as the nature of pollutant, flow-rate (amount of pollutant 97 Specific Industries and their Development Specific Industries and their Development emitted), particle size and desired collection efficien....
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....cy. The air pollution control equipments are broadly classified under the categories such as Settling Chambers, Cyclone and multi –cyclones, Bag Filters, Wet Scrubbers, Spray Tower, Venture Scrubber, Ionizing Scrubber and Electrostatic Precipitator. The industry is in a position to do basic and detailed engineering and supply of plants on turnkey basis. 10.6.4.2 The export of Filtering/purifying machinery for pollution control equipment (HS code 842139) in 2018-19 was 89,408.30 lakhs and in 2019-20 (Apr.-Nov.) is *62,452.29 lakhs respectively whereas the import in 2018-19 was 202,919.36 lakhs and in 2019-20 (April-Nov.) is 150,322.74 lakhs respectively. 10.6.5 Industrial Gears 10.6.5.1 Industrial gears comprises mainly gears and gear boxes. Gears are used for two basic purposes: increase or decrease of rotation speed and increase or decrease of power or torque. Gears being an important part of a machine have immense usage within various industries. These industries include automotive industries, coal plants industry, steel plants industry, paper industry, in mining and many more. In these industries they behold a wide area of application. They are used in conveyors, elevator....
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....s, kilns, separators, cranes and lubrication systems. Gearbox is defined as a metal casing in which a train of gears is sealed. The manufacture of gears and gear boxes involve high precision machining and accurate assembly as mechanical power is to be transmitted noiselessly and with minimum losses. Different types and sizes of gears such as spur gears, helical gears, worm gears, spiral gears and many other kinds are manufactured in the country. The demand for gears and gear boxes predominantly depend on the growth of industrial machinery, machine tools, and consumer & automobile sector. Considering the industrial growth prospects, particularly in automobile sector, the demand for gears and gear boxes is expected to grow at a healthy pace. 10.6.5.2 The production of Gear Boxes-all type in the organized sector in 2018-19 was 1,586.50 Th. Nos. and in 2019-20 (Apr.- Nov.) is 1,044.42 Th. Nos. respectively. The export of gears and gearing Excl, Toothed wheel industry (HS code 848340) in 2018- 19 was 324,877.13 lakhs and in 2019-20 (Apr.-Nov.) is 245,097.44 lakhs respectively whereas the import in 2018-19 was *256,948.24 lakhs and in 2019-20 (April- Nov.) is 15,57,070.96 lakhs respectiv....
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....ely. Note: Source: 1. Export-Import Data - Export-Import Data Bank, D/o Commerce. (https://commerce-app. gov.in/eidb/) 2. Production Data - Industrial Statistics Unit, DPIIT 10.7 Cigarette Industry (HS Code:24) 10.7.1 The Cigarette Industry is an agro- based labour intensive industry. Cigarette includes in the First Schedule to the Industries (Development & Regulations) Act, 1951 and requires Industrial License. 10.7.2 The production of cigarettes, bidi and other tobacco products during (2018- 19) was 83305.96 Mill. Nos (in numbers), 840495.34 Lakh Nos and 2918.20 Crore respectively. During the current financial year (2019-20(April-November)), the production has been 59155.71 Mill. Nos (in numbers), 547246.36 Lakh Nos and 1911.27 Crore respectively. 10.7.3 The export and import of Cigars, Cheroots, Cigarillos and Cigarettes of Tobacco or Tobacco Substitutes in the year 2018- 19 and for current financial year (2019-20 (April-November)) (HS Code: 2402) are as follows: 98 98 Table 10.6: The export and import of Cigars, Cheroots, Cigarillos and Cigarettes of Tobacco or Tobacco Substitutes (Value in Lacs) HS Code Export 2018-19 2019-20 (April-November) Import 2018-19 2402 68,100.92 43,7....
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....23.63 17,284.54 2019-20 (April-November) 9,319.86 Source: Export & Import data- Department of Commerce website Production data- Industrial Statistical Unit, DPIIT 10.8 10.8.1 Paints & Allied Products Industry (Hs Code: 32) The Paints & Allied Industry which has been exempted from compulsory licensing, mainly consists of paints, enamels, varnishes, pigments, printing inks, etc. These play a vital role in the economy by way of protecting national assets from corrosion. These items are manufactured both in the organized sector and small scale sector. 10.8.2 The production of Paints (all types), Printing Ink and Varnish (all types) (2018-19) was 809200.27 tonnes, 196923.18 tonnes and 35833.52 tonnes respectively. During the current financial year (2019-20(April- November)), the production of these products has been 500779.57 tonnes, 134512.19 tonnes and 20541.50 tonnes respectively. 10.8.3 The export and import of Paints & Allied Products in the year 2018-19 and for the current financial year (2019-20 (April-November)) (HS Code: 3208, 3209 3210 and 3215) are as follows: Table 10.7: Export and import of Paints & Allied Products (Value in Lacs) HS Code Export 2018-19 2019-20 (April-Novem....
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....ber) Import 2018-19 2019-20 (April-November) 3208 42,110.63 27,080.89 154,425.85 104,852.38 3209 15,377.19 9,041.98 38,177.85 20,831.57 3210 4,801.01 1,535.92 13,021.11 7,194.47 3215 118,913.51 80,493.04 184,168.29 83,225.60 Total 181,202.34 118,151.83 389,793.10 216,104.02 Source: Export & Import data- Department of Commerce website Production data- Industrial Statistical Unit, DPIIT 99 Specific Industries and their Development Specific Industries and their Development 10.9 Soaps & Detergents Industry (HS Code:34) 10.9.1 Soaps and Detergents are not licensable and are manufactured both in the small-scale and organized sector. It includes Laundry soaps, synthetic detergents, toilet soaps, bathing bars, etc. Multinational Companies lead the manufacture of Toilet Soap in India. The success of manufacturing companies in this sector depends on many factors viz. quality, marketing, technology and distribution strategy. soap)- incl. liquid soaps and foam, Detergent cake, washing soap cake/bar, Detergent powder & Washing powder during the year (2018-19) was 3726.70 tonnes, 779918.43 tonnes, 439005.48 tonnes and 1517.48 th. tonnes respectively. During the current financial year (2019-20(Ap....
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....ril-November)), the production has been 3501.27 tonnes, 536113.00 tonnes, 263556.37 tonnes and 1008.57 th. tonnes respectively. 10.9.3 The export and import of Soap, Organic Surface Active Agents, Washing Preparations etc. in the year 2018-19 and for the current financial year (2019-20 (April- November)) (HS Code: 3401 and 3402) are as follows: 10.9.2 The production of Organic Surface active agents/Surfactants, except soaps including diswashing soaps, wetting and cleansing agents, Toilet Soaps (excl. baby Table 10.8: Export and import of Soap, Organic Surface Active Agents, Washing Preparations (Value in Lacs) HS Code Export 2018-19 2019-20 (April-November) Import 2018-19 2019-20 (April-November) 3401 79,719.96 51,133.71 93,971.25 47,838.75 3402 244,492.31 167,551.17 200,013.54 132,331.08 Total 324,212.27 218,684.88 293,984.79 180,169.83 Source: Export & Import data- Department of Commerce website Production data- Industrial Statistical Unit, DPIIT 10.10 Wood Based Industry Code:44) (HS 10.10.1 Plywood, Veneers of all types and other wood based products such as particle board, medium density fiber board etc. form the major segment of the Wood based Industry in India. The Industry c....
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....omes under the delicensed category. However, In terms of Press Note No. 9 (1998 Series) dated 27.8.98, issued by the Department of Industrial Policy & Promotion, entrepreneurs who wish to obtain approval from the Government to set up a wood based project should obtain prior 100 clearance from the Ministry of Environment & Forests before submitting the applications to the Administrative Ministry / SIA and enclose a copy of "in principle" approval given by the Ministry of Environment & Forests. 10.10.2 The total production of Plywood block boards, Lamination wooden sheets/Veener sheets and Particle Boards during (2018- 19) was 77065.86 thousand square metres, 82151.93 thousand square metres and 9076.29 thousand square metres respectively and the production of these products during the current financial year (2019-20(April- November) has been 51673.87 thousand square metres, 37457.34 thousand square metres and 6164.16 thousand square metres respectively 10.10.2 The export and import of wood and articles of wood in the year 2018-19 and for the current financial year (2019-20(April- November)) (HS Code: 4408, 4409, 4410, 4411, 4412, 4415 and 4416 ) are as follows: Table 10.9: Export and....
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.... import of wood and articles of wood (Value in Lacs) HS Code Export 2018-19 2019-20 (April-November) Import 2018-19 2019-20 (April-November) 4408 15,885.15 10,122.78 174,936.91 134,080.88 4409 2,724.16 1,361.02 25,413.63 17,468.78 4410 4,682.27 1,896.52 28,018.54 20,747.59 4411 15,763.92 15,087.77 79,314.76 50,071.19 4412 22,604.10 15,523.58 82,525.14 51,410.63 4415 9,932.33 5,681.52 8,562.93 7,593.36 4416 153.48 17.14 1,660.28 1,089.89 Total 71,745.41 49,690.33 400,432.19 282,462.32 Source: Export & Import data- Department of Commerce website Production data- Industrial Statistical Unit, DPIIT 10.11 Glass Industry (HS Code: 70) 10.11.1 Glass Industry comes under the category of delicensed industry. Glass Industry covers seven items such as sheet and flat glass (including sheet, float, figured, wired, safety, mirror glass) (NIC-26101), Glass Fiber and Glass Wool (NIC-26102), Hollow Glassware (NIC-26103), Laboratory Glassware (NIC- 26104), Table & Kitchen Glassware (NIC- 26105) and Glass Bangles (NIC-26106) and other Glassware (NIC-26109). There has been growing acceptability of the Indian flat glass products in the global market. The Indian manufacturers had explored new markets. T....
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....here is considerable scope in demand for glass fibre products particularly due to growth 101 in petrochemical sector and allied products. 10.11.2 The production of Sheet Glass, Fibre Glass, Glass Bangles, Glassware during (2018-19) were 91748.07 thousand square metres, 116743.29 Tonnes, 39.76 Crore, 3973.05 Crore respectively and during the current financial year (2019-20 (April- November)) have been 60200.42 thousand square metres, 89178.01 Tonnes, 26.38 *Crore and 2812.78 Crore respectively. 10.11.3 The export & import of glass & glassware in the year 2018-19 and current financial year (2019-20(April-November) (HS Code: 7005, 7007, 7008, 7009 and 7010) are as follows: Specific Industries and their Development Specific Industries and their Development Table 10.10: Export & import of glass & glassware (Value in Lacs) HS Code Export Import 2018-19 2019-20 2018-19 (April-November) 2019-20 (April-November) 7005 51,591.90 28,790.85 111,900.91 65,354.48 7007 86,326.34 29,948.84 101,501.85 75,426.93 7008 6,259.94 4,488.05 4,573.44 3,162.44 7009 31,008.04 24,346.30 49,893.64 29,806.66 7010 168,742.56 113,665.47 Total 343,928.78 201,239.51 47,822.83 315,692.67 44,011.23 217,761.74 Source: ....
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....Export & Import data- Department of Commerce website Production data- Industrial Statistical Unit, DPIIT 10.12 Metal Container Industry (HS Code:7310) 10.12.1 The principal types of metal (tin) containers are food containers generally known as OTS (Open Top Sanitary) cans and General Line Containers for packaging non- food commodities such as paints, lubricants, pesticides, etc. The Metal Container Industry is delicensed. 10.12.2 The production of Steel vessels/ containers including barrels, drums during (2018-19) was 101812.21 tonnes and during the current financial year (2019-20(April- November) has been 58814.11 tonnes. 10.12.3 The export & import of containers in the year 2018-19 and for the current financial year (2019-20(April-November)) (HS Code: 7310) are as follows: Table 10.11: Export & import of containers (Value in Lacs) HS Code 7310 Source: Export 2018-19 2019-20 (April-November) 57,170.05 36,322.35 Import 2018-19 79,436.26 2019-20 (April-November) 47,695.92 Export & Import data- Department of Commerce website Production data- Industrial Statistical Unit, DPIIT 10.13 Watch Industry (HS Code: 91) 10.13.1 The Watch Industry in India comprises of units both in the organiz....
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....ed as well as the small scale sector. The organized sector contributes 40% of the total demand while the rest is met by the unorganized sector. Most of the watches are being manufactured under the electronic system. 102 10.13.2 The production of Watches, automatic quartz and Watches, scientific/ digital & speed purpose during (2018-19) was 39843.05 (Th. numbers) and around 51.81 ( *Crore). During the current financial year (2019-20(April-November) the production has HS Code been 29001.96 (Th. numbers) and around 38.30 (Crore) respectively. 10.13.3 The export & import of Clocks and Watches in the year 2018-19 and for the current financial year (2019-20(April- November) (HS Code: 91) are as follows: Table 10.12: Export & import of Clocks and Watches (Value in Lacs) Export Import 2018-19 2019-20 (April-November) 2018-19 2019-20 (April-November) 70,510.41 42,006.36 266,461.98 177,037.12 91 Source: Export & Import data- Department of Commerce website Production data- Industrial Statistical Unit, DPIIT 10.14 Toy Industry (HS Code:95) 10.14.1 The Toy Industry in India comprises of units both in the organized as well as the small scale sector. Indian Toy Industry is fragmented and region b....
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....ased. 10.14.2 The production of Games & Toys (excl. video games machines & other mechanical/electrical equipment for gaming parlours/fairs) during (2018-19) was 99.64 ( Crore). During the current financial year ((2019-20(April-November), the production has been around 74.06 (*Crore) respectively. 10.14.3 The export & import of Toys, Games and Sports Requisites, Parts and Accessories thereof in the year 2018-19 and for the current financial year (2019-20(April-November) (HS Code: 95) are as follows: Table 10.13: Export & import of Toys, Games and Sports Requisites, Parts and Accessories thereof (Value in Lacs) HS Code Export Import 2018-19 2019-20 (April-November) 2018-19 2019-20 (April-November) 95 292,427.42 207,943.79 451,949.25 283,340.65 Source: Export & Import data- Department of Commerce website Production data- Industrial Statistical Unit, DPIIT 10.15 Pressure Cooker Industry (HS Code: 73239310) 10.15.1 The kitchenware category (pressure cookers, cookware, stoves and small kitchen electrical appliances) in India is highly fragmented, not only in terms of number of manufacturers, but also in terms of product range. Unorganized players command a significant portion of the cate....
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....gory. 103 Specific Industries and their Development Specific Industries and their Development 10.15.2 The production of Pressure Cooker during (2018-19) was 12376.06 (Th. numbers). During the current financial year (2019-20 April-Nov), the production has been 8409.48 (Th. numbers). 10.15.3 The export & import of Pressure Cooker in the year 2018-19 and for the current financial year (2019-20 (April-November)) (HS Code: 73239310) are as follows: Table 10.14: Export & import of Pressure Cooker (Value in Lacs) HS Code 73239310 Source: Export 2018-19 2019-20 (April-November) 2,703.27 1,461.14 Import 2018-19 894.99 2019-20 (April-November) 253.72 Export & Import data- Department of Commerce website Production data- Industrial Statistical Unit, DPIIT 10.16 Rubber Goods Industry 10.16.1 The Rubber Goods Industry excluding tyre and tubes consists of 4550 small and tiny units generating about 5.50 lakhs direct jobs. The rubber industry manufacturers a wide range of products like rubber cots and aprons, contraceptives, footwear, rubber hoses, cables, camelback, battery boxes, latex products, conveyor belts, surgical gloves, balloons, rubber moulded goods etc. The main raw materials used by th....
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....e rubber goods manufacturing industry are Natural Rubber, various types of Synthetic Rubber, Carbon Black, Rubber Chemicals etc. The estimated export of rubber goods is 78853.9 Crore in 2019-20 as against Rs.8994.6 crore in 2018- 19. The estimated of import of rubber goods is 14946.24 crore in 2019-20 as against 16726.25 crore in 2018-19. 10.16.2 The performance of rubber goods industry hardly needs any emphasis. From healthcare to footwear, high performance tyres to conveyer belts are indispensible for country's infrastructure. 10.17 Tyres & Tubes Industry 10.17.1 Tyres play an integral role to ensure mobility including movement of passengers and essential goods across the urban and rural landscape of the country using all types of vehicles ranging from carts, tractors, trucks and buses to the latest generation passenger cars that ply on the modern expressways. Various types of tyres are manufactured in India that includes Moped tyre weighing 1.5 Kg to Off the Road tyres for Earthmovers which weigh 1.5 tonnes, Bias Ply tyres to rugged all steel radial truck tyres to high performance passenger car radial and tubeless tyres etc. India is one of the few countries worldwide which has ....
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....attained self sufficiency in manufacturing a wide range of tyres for all applications. 10.17.2 i. ii. Salient features of tyre industry: Indian Tyre industry consists of 41 Companies with 62 tyre manufacturing plants. Tyres & Tubes production during 2018-19 was 274 lakh (in No.). The estimated figure of Tyres & Tube production for the year 2019-20 is 253 lakh (in No.). Four Indian Companies (MRF Ltd., Apollo Tyres, CEAT and J&K Tyres) are in the list of top 35 Global Tyre companies. 104 iii. iv. Large tyre companies account for approx. 92% of Industry turnover in value and tonnage terms. Turnover of Indian Tyre Industry is expected projected 63,000 Crore (approx.) during 2019-20. 10.17.3 Export of Tyres & Tubes: Indian tyres are exported to over 75 countries worldwide. During 2018-19 tyres were exported worth 13347.64 Crores. The estimated value for export of tyres & tubes for the year 2019-20 is 13154.42 crore 10.17.4 Import of Tyres & Tubes: Tyres are imported @ Custom Duty of 10% (except for Truck & Bus Radial (TBR) tyres and Passenger Car Radial (PCR) Tyres, Which are imported at a Customs Duty of 15%). Tyres are also imported at concessional custom duty under various agreement....
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....s such as Asia Pacific Trade Agreement (12.9% for TBR and PCR Tyres, 8.6 % for other Tyres), ASEAN FTA (5%), and India-Malaysia Trade Agreement (5%). During 2018-19, import of tyres was worth 33127.20 Crore into India. The estimated value for import value of Tyres & Tubes for the year 2019-20 is 2860.15 Crores. 10.17.5 Quality Control Order on Pneumatic Tyres and Tubes for Automotive Vehicle: A Quality (Control) Order for Pneumatic Tyres and Tubes for Automotive vehicles was notified by this Department on 19th November, 2009 in exercise of the power conferred vide Section 14 of the BIS Act, 1986. The Order prohibits import, sale or distribution of pneumatic tyres and tubes which do not conform to the specified Bureau of Indian Standards (BIS) standard and which do not bear the standard mark. This means the manufactures are required to obtain licenses from BIS for use of standard mark to enable them to sell or distribute pneumatic tyres and tubes conforming to the specified standard. The Quality Control Order, 2009 has come into force w.e.f. 13th May, 2011. In terms of the Clause 3(1) (f) of the said Quality Control Order, a Committee has been constituted under the Chairmanship of A....
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....dditional Director General of Foreign Trade to finalize the list of tyres which are not manufactured domestically and to be imported by Original Equipment Manufacturers (OEMs). Periodic Review and finalization of list of tyres sizes (not manufactured domestically) as per QCO is done and updated list is uploaded in DIPP's website. The Committee last reviewed and finalized a list of 667 sizes of tyres (not manufactured domestically) in June, 2019 which can be imported by OEMs. Revised list has been uploaded on the DPIIT's website. 10.18 Paper, Paperboard and Newsprint Industry 10.18.1 Indian paper industry accounts for about 4.29% of the world production of paper, paperboard and newsprint. Govt. of India's policy for discouraging the use of single use plastic has had a positive impact on the fortunes of the paper sector, particularly the packaging industry. Demand for paper also continued to be fuelled by increase in demand of quality packaging for FMCG products, ready to eat food, and various macroeconomic initiatives being taken up by the government such as Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Mahila Samakhya Programme, Sarva Shiksha Abhiyan (SSA), Beti Bachao Beti Padhao, ....
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....Right to Education, Strengthening for Providing Quality Education in Madrassas (SPQEM), Rashtriya Madhyamik Shiksha Abhiyan (RMSA), Saakshar Bharat (Adult Education) etc. Interestingly, the advent of e-commerce and online trade has actually added to the demand of paper and packaging segments. 10.18.2 Indian paper industry is a de-licensed sector and 100% FDI inflow is allowed on the automatic route. The sector attracted 71.2 Million US dollar FDI investment in 105 Specific Industries and their Development FY 2018-19¹. The Industry structure comprises of more than 850 paper units, with an installed capacity of nearly 27 million tonnes out of which 4.72 million tonnes are lying idle. As on date around 501 mills are in operation with a total operating capacity of around 21.812 million tonnes. In the year 2018-19 total capacity utilization stood at around 90% and total consumption of paper, paperboard, and Newsprint stood at 21.123 million tons. Total production for the year of 2018-19 stood at 19.364 which is slightly more (+2.38% increase) when compared to 2017-18. As per forecast model, it is projected that in 2019-20 production of paper, paperboard and newsprint would be around ....
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....19.9 million tons. 10.18.3 In India, per capita consumption of paper is about 15.75 kg, which is far lower than the world average (53 kg. in 2018). This indicates considerable headroom for the growth of the sector in order to reach the world average per capita consumption. 10.18.4 There have been few moves of consolidation within the sector, but Indian paper industry remains largely a fragmented sector. It consists of small, medium and large paper mills, having production ranging from 5 to 2000 tonnes per day. The sector uses wood, agro residues and waste paper as input substrates for production. Presently, in the total production, the share of wood, agro and waste paper based mills stand at 19%, 8% and 73%, respectively. 10.18.5 Paper & Paperboard Segment: Domestic paper and paperboard segment produces all the main varieties of paper that are in demand in the market viz. writing and printing (35%) packaging grade paper (55%), newsprint (6%) and others/ specialty paper (<BR> News - Press release - PIB....