Annual Report 2016-17 - MoCI | GoI · Annual Report 2016-17 ... From Automobiles to Agro products From hArdwAre to soFtwAre From sAtellites to submArines From televisions to telecom

Annual Report 2016-17

Government of IndiaMinistry of Commerce and Industry

Department of Industrial Policy & Promotion

From Automobiles to Agro products

From hArdwAre to soFtwAre

From sAtellites to submArines

From televisions to telecom

From phArmAceuticAls to biotech

From pAper to power plAnts

From roAds to bridges

From houses to smArt cities

From Friendship to pArtnership

From proFit to progress

whAtever you wAnt to mAke : mAke in indiA

# mAkeinindiA

Contents

S. No. Chapter Page No

1. Role and Functions 1

2. Evolution and Development of Industrial Policy 13

3. National Manufacturing Policy 22

4. Industrial Corridors 25

5. Improvement of Business Environment : eBiz Project 34

6. Ease of Doing Business 39

7. Make in India Initiative 47

8. Development Schemes 50

9. Industries and Industrial & Technical Development 62

10. United Nations Industrial Development Organisation (UNIDO) 82

11. Foreign Direct Investment 87

12. Investment Promotion & International Cooperation 91

13. Protection of Intellectual Property Rights 99

14. Administration of Indian Boilers Act, 1923 111

15. Attached&SubordinateOfficesandotherOrganisations 114

16. Representation of Scheduled Castes/Scheduled Tribes/OBCs/ 195 Ex-servicemen and Physically Disabled persons in Services

17. Women Welfare Activities 196

18. ImplementationofOfficialLanguagePolicyoftheUnion 197

19. Vigilance Activities 201

20. Citizen's Charter 203

21. Right to Information 207

Appendices I-IX 208

1

Role and Functions

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

Under the seventh schedule of the Constitution, those industries which are declared by Parliament, by law, in the public interest, to be under control of Union, are administered by DIPP. In addition to this Constitutionally delineated role, matters relating to development of industries by the Union, explosives, UNIDO, patents, innovations and designs, trademarks and merchandise marks, manufacture, supply and distribution of salt by Union agencies and regulation and control of manufacture, supply and distribution of salt by other agencies, are specifically administeredby the Department of Industrial Policy and Promotion on behalf of the Union of India. Further, the Department is also responsible for the administration of the Boilers Act, 1923, for the subject “Boiler” which is in theConcurrentList.

Objectives, Functions and Laws Administered

The broad objectives of the Department, in line with its defined role, are as follows:

(i) Accelerating industrial growth by providing financial, infrastructural andother support.

(ii) Facilitating foreign investment in industries and coordinatingwithdifferent agenciesfor fastracking of investment approvals.

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

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

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

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

Over the years, the role of DIPP has evolved from being a regulator and administrator of the industrial sector to that of a facilitator of new technology,andForeignDirectInvestmentinflowsinto the country.

The key functions of DIPP are:

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

(ii) Monitoring and stimulation of industrial growth in general as also the industries specifically assigned to DIPP as perAllocation of Business Rules, 1961.

iii) Promotion of industrial development in North East and special category States of J&K, Himachal Pradesh and Uttarakhand through appropriate incentives framework.

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

Chapter 1 Role and Functions

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v) Formulation of policies relating to IntellectualPropertyRightsinthefieldofPatents, Trade Marks, Industrial Design and Geographic Indication of Goods and administration of regulations and rules under IPR.

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

The Department of Industrial Policy and Promotion administers the following Central Legislations through its attached/subordinateofficesandstatutoryorganizations:

a) The Patents Act, 1970, the Trade Marks Act , 1999, the Geographical Indications of Goods (Registration and Protection) Act, 1999, Designs Act, 2000, Copyright Act, 1957 ( as amended in 2012) and the Semi-conductor Integrated Circuits Layout -Design Act, 2000. The associated Rules areadministeredthroughtheOfficeoftheController General of Patents, Designs and Trade Marks (CGPDTM). The Intellectual Property Appellate Board provided under the Trade Marks Act, 1999, has been set up in Chennai. The Copyright Board provided under Section 11 of the Copyright Act 1957.

b) The Explosives Act, 1884, and the Rules made thereunder i.e. the Explosives Rules, 2008; Gas Cylinder Rules, 2016, Static & Mobile Pressure Vessels (Unfired) Rules,2016, and Ammonium Nitrate Rules, 2012, which are administered through the Petroleum & Explosives Safety Organization, Nagpur.

c) The Salt Cess Act, 1953, is administered through the Office of the SaltCommissioner, Jaipur.

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

Organization of DIPP

The Organization Chart of the Department of Industrial Policy and Promotion is at Appendix-I whilethelistofattachedandsubordinateofficesand other organizations under the Department is at Appendix-II.

Industrial Policy

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

National Manufacturing Policy

In order to bring about a quantitative and qualitative change and to give necessary impetus to the manufacturing sector, the Department has notified the National Manufacturing Policy(NMP) with the objective of enhancing the share of manufacturing in GDP to 25% and creating 100

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million jobs over a decade or so. The policy is based on the principle of industrial growth in partnership with the States. The Central Government will create the enabling policy frame work, provide incentives for infrastructure development on a Public Private Partnership (PPP) basis through appropriate financing instruments, and StateGovernments will be encouraged to adopt the instrumentalities provided in the policy. The Department has taken up the implementation of the policy in consultation with concerned Central Government agencies as well as the States.

National Investment and Manufacturing Zones (NIMZs) are an important instrumentality of the Policy. These zones have been conceived as large integrated industrial townships with state-of-the-art infrastructure; land use on the basis of zoning; cleanandenergyefficienttechnology;necessarysocial infrastructure; skill development facilities, etc. to provide a conducive environment for manufacturing industries. So far fourteen NIMZs have been granted in-principle approval outside the DMIC region, of which NIMZs at Prakasam in Andhra Pradesh; Medak in Telangana and Kalinganagar, Jajpur district in Odisha have been grantedfinalapproval.

Government has also launched the Technology Acquisition and Development Fund (TADF) as envisaged in the National Manufacturing Policy on 18th November, 2015 to provide the funding specifictoacquisitionanddevelopmentofcleanand green technologies. The fund will support, via subsidies, manufacturing of equipment/machines/devices for controlling pollution, reducing energy consumption and water conservation. The fund is now being managed by the Ministry of Micro, Small and Medium Enterprises.

Foreign Direct Investment (FDI) Policy

The Department of Industrial Policy & Promotion is the nodal Department for formulation of the

policy of the Government on Foreign Direct Investment (FDI). It is also responsible for maintenance and management of data on inward FDI into India, based upon the remittances reported by the Reserve Bank of India.

The FDI policy is reviewed on an ongoing basis, with a view to making it more investor-friendly. With a view to attracting higher levels of FDI, Government has put in place a liberal policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/ activities.Significantchangeshavebeenmadeinthe FDI policy regime in recent times, to ensure that India remains an increasingly attractive investment destination. The Department plays an active role in the liberalization and rationalization of the FDI policy. Towards this end, it has been constructively engaged in extensive stakeholder consultations on various aspects of the FDI policy.

Specific Industries Administered by DIPP

The Department monitors industrial growth and production in general and in select industrial sectors such as leather, cement, paper and pulp, tyre and rubber, light electrical industries, consumer goods, consumer durables, light machine tools, light industrial machinery, light engineering industries etc. as indicated in the Allocation of Business Rules, 1961.

Appropriate policy interventions are made, as required from the emerging concerns from time to time.

For overall development of Leather Sector, theDepartment administers the Indian LeatherDevelopment Programme (ILDP). The Schemeaims at augmenting raw material base through modernization and technology up-gradation of leather units, address environmental concerns, human resource development, support to traditional leather artisans, address infrastructure constraints and establish institutional facilities.

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Investment Promotion and International Cooperation

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 stimulatetheinflowofforeigndirectinvestmentinto India.

Ease of Doing Business

In order to improve the business environment in the country, the Department of Industrial Policy and Promotion (DIPP) has taken up a series of measures to simplify and rationalize the regulatory processes (registration and inspection processes) and introduction of information technology as enabler tomakegovernancemoreefficientandeffective.Statestoohavebeenbroughtonboardin the process to expand the coverage of these efforts. DIPP has been closelyworkingwith theState Governments and Union Territory (UT) Administration to help them identify constraints in doing business and improving the overall business environment in respective States and Union Territories. DIPP launched an online portal to track implementation of reforms on a real-time basis. The same are available on www.eodb.dipp.nic.in. State-wise ranking in carrying out reforms has been done again this year based on extensive criteria.

India ranks 130th in the World Bank’s annual Doing Business Report (DBR) 2017 as against 131st rank (revised) in the Doing Business Report 2016. The Doing Business report 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 53.93 in DBR 2016 to 55.27 in DBR 2017. The ease of doing business index is meant to measure regulations directlyaffectingbusinessesandanation’srankisbased 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 borders, enforcing contracts and resolving insolvency.

Other important measures taken by the Government to boost the business regulatory environment and to improve ease of doing business in the country include integration of 20 services on e-biz portal to function as a single window for obtaining Government clearances, integration of the process of incorporation of the company and application for Director’s Identification Number (DIN), removal ofrequirements of minimum paid-up capital and common seal for companies.

Make in India

The Department has launched “Make in India” initiative, a global promotional campaign to project India as an investment destination and potential manufacturing hub. The campaign was launched by the Prime Minister on 25th September 2014.

Invest India

In order to assist and handhold foreign investors, Invest India has been set up as a Joint Venture Company (Not for Profit Company) betweenDepartment of Industrial Policy & Promotion

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(DIPP), Ministry of Commerce and Industry, Government of India, Federation of Indian Chambers of Commerce and Industry (FICCI) and various State Governments. Invest India is responsible for promoting and facilitating investments to India. The shareholding is 51% of FICCI and 49% of DIPP. Subsequently DIPP will dilute its equity to include all State Governments. Already seven states have taken up shares in Invest India.

InvestIndiashallactasafirstreferencepointforinvestors. Invest India shall also be a facilitator and partner offering handholding services tothe investors to help them speedily fructify their investment plans.

An Investor Facilitation Cell has been created at Invest India to assist, guide, support, handhold and facilitate investors during various states of their project.

Startup India

The “Start-up India” initiative announced by the Hon’ble Prime Minister on 15.08.2015 aims at fostering entrepreneurship and promoting innovation by creating an ecosystem that is conducive to growth of Startups.

Startup India is a flagship initiative ofthe Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.

The efforts of the government are aimed at empowering Startups to grow through innovation and design. It is intended to provide the much needed impetus for the Startups to launch and scale greater heights.

In order to meet the objectives of the

initiative, the Honourable Prime Minister on 16th January 2016 launched the Startup India Action Plan.

The Startup India Action Plan consists of 19 action items spanning across areas such as “Simplification and handholding”, “Fundingsupport and incentives” and “Industry-academia partnership and incubation”. Since the launch of the program, a number of forward looking strategic amendments to the existing policy ecology have been introduced, like:

1. Fund of Funds

For providing fund support for Startups, Government has created a ‘Fund of Funds for Startups (FFS)’ at Small Industries Development Bank of India (SIDBI) with a corpus of Rs. 10,000 crore. The FFS shall contribute to the corpus of Alternate Investment funds (AIFs) for investing in equity and equity linked instruments of various Startups. The FFS is managed by Small Industries Bank of India (SIDBI) for which operational guidelines have been issued. In 2015-16, Rs. 500 crores was released towards the FFS corpus.

2. Credit Guarantee Fund for Startups

• Since debt funding for Startups is perceived as high risk activity, a Credit Guarantee Fund for Startups is being setup with a budgetary corpus of Rs 500 crore per year, over the next four years, to provide credit guarantee cover to banks and lending institutions providing loans to Startups.

• Once rolled out, the scheme, in the lines of credit guarantee scheme for MSME, is likely to provide a huge impetus for enabling flow ofmuch needed credit tothe Startups which may run into several thousands of crores.

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3. Relaxed Norms in Public Procurement for Startups

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 March 10, 2016) to relax norms pertaining to prior experience / turnover for Micro and Small Enterprises. Department of Expenditure has issued a notification for relaxing public procurementnorms in respect of all Startups (including medium enterprises) by all central Ministries/Departments.

4. Tax Incentives:

• 3 Year Tax Exemption: The Finance Act, 2016 (Section 80- IAC) has provision for Startups (Companies and LLPs) to getincome tax exemption for 3 years in a block of 5 years, if they are incorporated between 1st April 2016 and 31st March 2019. To avail these benefits, a Startupmust get a Certificate of Eligibility fromthe Inter-Ministerial Board.

• Removal of Angel Tax: Tax exemption on investments made in excess of face value in the shares of a Startup company has been introduced on 14 June 2016.

• Tax Exemption on Capital Gains: Section 54 EE has been introduced in the Finance Act, 2016 which provides for exemption of capital gain (not exceeding INR 50 lakhs in afinancialyear)arisingoutoftransferoflong term capital asset invested in a fund notifiedbyCentralGovernment.

Section 54GB of Income Tax Act, 1961 has been amended to provide for 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 equity shares of eligible Startups.

5. Legal Support and Fast-tracking Patent Examination at Lower Costs

A scheme for Startups IPR Protection (SIPP) for facilitatingfasttrackfilingofPatents,Trademarksand Designs by Startups has been introduced. The scheme provides for expedited examination ofpatentsfiledbyStartups.Thiswill reducethetimetakeningettingpatents.Thefeeforfilingofpatents for Startups has also been reduced up to 80%.

Panels of facilitators for Patents and Trademark applications have been formed to facilitate the process of patent filing and acquisition. Thefacilitators would provide legal guidance and handholding through the entire patent acquisition process free of cost.

6. Self-Certification based Compliance Regime:

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 and Forests (MoEF) 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 3 Environment Acts -

• The Water (Prevention & Control of Pollution) Act, 1974;

• The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003

• The Air (Prevention & Control of Pollution) Act, 1981)

Further, Ministry of Labour and Employment(MoLE)hasissuedguidelinestoStateGovernmentswhereby Startups shall be allowed to self-certify compliance in respect of 6 Labour laws. TheseshallbeeffectiveafterconcurrenceofStates/UTs.

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The Acts are:

• The Building and Other Constructions Workers’ (Regulation of Employment & Conditions of Service) Act, 1996

• The Inter- State Migrant Workmen (Regulation of Employment & Conditions of Service) Act, 1979

• The Payment of Gratuity Act, 1972

• The Contract Labour (Regulation andAbolition) Act, 1970

• The Employees’ Provident Funds and Miscellaneous Provisions Act, 1952

• The Employees’ State Insurance Act, 1948

So far 9 States have confirmed compliance tothe advisory issued by Ministry of Labour andEmployment(MoLE):• Rajasthan• Uttarakhand• Madhya Pradesh• Chhattisgarh• Delhi• Jharkhand• Gujarat• Chandigarh

• Daman & Diu

7. Setting up Incubators

• Under Atal Innovation Mission, Niti Ayog will set up Atal Incubation Centers (AICs) in public and private sector. NITI Aayog has received 3658 applications (1719 from academic institutions and 1939 from non-academic institution) for setting up Atal Incubation Centers (AICs) from both Public and Private sector organizations.

• Under the Mission, a grant-in-aid of Rs. 10 crore would be provided to scale up

an existing incubator for a maximum of 5 years to cover the capital and operational costs in running the center. NITI Aayog has received 232 applications for providing scale up support for established incubation centers.

8. Setting up of Startup Centers and Technology Business Incubators (TBIs)

14 Startup Centres and 15 Technology Business Incubators are to be setup collaboratively by Ministry of Human Resource Development (MHRD) and the Department of Science and Technology (DST). Out of the 14 Startup Centers, 10 have been approved. Once MHRD releases its share of Rs. 25 lakhs each for the Startup centers, the Startup centers would be supported by DST by December, 2016.

Against the target of sanctioning 15 TBIs, 9 TBIs have been approved and other 6 TBIs are under process of being approved.

9. Research Parks

7 Research Parks will be set up as per the Startup India Action Plan. Out of these 7, IIT Kharagpur already has a functional Research Park. Further, DST will establish 1 Research Park at IIT Gandhinagar and the remaining 5 shall be set up by Ministry of Human Resource Development (MHRD) at IIT Guwahati, IIT Hyderabad, IIT Kanpur, IIT Delhi and IISc Bangalore.

Intellectual Property Rights

DIPP is entrusted with the responsibility of formulation of policy in respect of Intellectual Property Rights (IPRs) i.e. Patents, Designs, Trade Marks and Geographical Indications of Goods. The department administers Intellectual Property Rights (IPRs) Legislations, namely, thePatents Act, 1970, the Designs Act, 2000, the Trade Marks Act, 1999, Geographical Indications of Goods (Registration & Protection) Act, 1999,

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The Copyright Act, 1957(as amended in 2012) and the Semi-conductor Integrated Circuits Layout-Design Act,2000throughtheOfficeofController General of Patents, Designs & Trade Marks (CGPDTM), a subordinate office of thisDepartment. It also administers establishment matters in respect of the Intellectual Property Appellate Board (IPAB).

DIPP undertakes bilateral and multilateral cooperation activities in respect of Intellectual Property Right matters on behalf of the government. It is the nodal department for all matters relating to the World Intellectual Property Organization(WIPO).

Productivity and Quality

DIPP is the nodal department for the promotion of productivity and quality in the industrial sector. National Productivity Council, New Delhi, an autonomous body under this Department, undertakes programmes of technical cooperation with the Asian Productivity Organization(APO), Tokyo by sourcing experts to advise on productivity related projects and by deputing officials from the private and public sector toprogrammes conducted by the APO in industry, agriculture and service related sectors, in addition to its own training and awareness programmes on productivity.

The Quality Council of India, another autonomous body under this Department, promotes adoption of quality standards relating to Quality Management Systems (ISO 9001 Series), Environment Management Systems (ISO 14001 Series), Food Safety Management Systems (ISO 22000Series),Productcertificationandinspectionbodies through the accreditation services provided byNationalAccreditationBoardforCertificationBodies (NABCB). Besides NABCB, there are three other boards viz National Accreditation Board for Education & Training (NABET); National Accreditation Board for Hospitals and Healthcare

Providers (NABH); and National Board for Quality Promotion(NBQP) which provide accreditation certification on education, health and qualitypromotion respectively.

UNIDO Activities

The department is the nodal Department for all matters related to UNIDO operations in India. UNIDO is a specialized agency of the United Nations for industrial activities within the United Nations system.

India has been an active member of the organization since its inception. UNIDO has established its presence in India by means of followingcenters/officeswithdifferentmandatesviz. (i) UNIDO Regional Office (URO) which isheaded by UNIDO Representative (UR) to India and Asian region and (ii) International Center for Inclusive and Sustainable Industrial Development (IC-ISID), New Delhi.

TheUNIDORegionalOfficeforSouthAsia,setupin New Delhi on 1st January, 2000, covers seven countries – India, Bangladesh, Sri Lanka, Nepal,Bhutan, Maldives and Afghanistan – and acts as a focal point to mobilize knowledge, information and technology for the region.

The Country Program of Cooperation between the Republic of India and UNIDO (CP 2013-17) signed in Vienna in September, 2013, by then Secretary, DIPP and DG, UNIDO, is presently guiding the activities of UNIDO in India. CP (2013-17) serves as the framework for interventions by UNIDO in India, as aligned with the Government’s 12th Five Year Plan and the United Nations Development Action Framework (UNDF) (2013-2017).

DIPP has established a new center, IC-ISID (International Center for Inclusive and Sustainable Industrial Development) in collaboration with UNIDO after successfull completion of UCSSIC and ICAMT. The center started its operation from 1st May 2015. The IC-ISID echoes the theme of

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UNIDO’s post-2015 development agenda .i.e. Inclusive and Sustainable Industrial Development aims to bring best practices and new improved manufacturing technology to Indian Industry and share India’s experience in cluster based development within the framework of South-South Cooperation. DIPP has undertaken 5 core projectsunderIC-ISIDrelatedtoLeather,Pulp&Paper, Cement, Bicycle and Cluster Development.

Programmes for Industrial Infrastructure Development- Modified Industrial Infra-structure Upgradation 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 potential to become globally competitive. The Scheme was recast in February, 2009, on the basis of an independent evaluation to strengthen the implementation process. A modified versionof IIUS viz ‘Modified Industrial InfrastructureUpgradationScheme(MIIUS)’wasnotifiedinJuly2013. Under MIIUS, projects have been undertaken to upgrade infrastructure in existing Industrial Parks/ Estates/ Areas. Greenfield Projects havealso 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 Rs.50.00 crore is provided under MIIUS with at least 25% contributions of State Implementing Agency and in case of North Eastern States, the central grant and minimum contribution of the SIA are up to 80% and 10% respectively. A two stage approval mechanism has been retained in the MIIUS. Final approval has been accorded to 24 projects with central grant amounting to Rs. 604.71 crore and 6 projects with central grant of Rs.129.91 crore are at ‘in-principle’ approval stage. Central assistance

of Rs. 186.74 crore has been released to 22 projects as on 22.12.2016 under MIIUS.

Summary of IIUS Projects: 37 projects have been approved in the 10th and 11th Five Year Plan Periods under IIUS and these projects have been provided central assistance of Rs.1400.58 crore (up to 22.12.2016), out of sanctioned central grant of Rs.1526.00 crore. Out of these 37 projects, 28 have been completed. One project namely Bamboo Technology Park, Guwahati has been completed in October, 2016 and three more projects are likely to be completed within the financial year 2016-17. In the year 2016-17, Rs.106.88 crore (up to 22.12.2016) has been disbursed out of an allocation of Rs.152.00 crore.

Delhi Mumbai Industrial Corridor (DMIC) Project

The DMIC project was launched in pursuance of an MOU signed between the Government of India and the Government of Japan in December 2006. The Delhi-Mumbai Industrial Corridor is being developed on either side, along the alignment of the 1504 km long Western Dedicated Rail Freight Corridor between Dadri (UP) and Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai. The project seeks to create a strong economic base with a globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance investments and attain sustainable development. This covers the six States namely Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra. Delhi Mumbai Industrial Corridor Development Corporation was incorporated in January 2008 as the project implementation agency and has been restructured with 26% equity of the Govt. of Japan. The Japanese Government has also announced their financial support forDMIC project to an extent of US $ 4.5 billion in the firstphasefortheprojects.Initially,eightnodes/cities in the six DMIC States have been taken up for development.

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Perspective planning for the entire DMIC corridor has been completed and subsequently, the master planning and preliminary engineering has been undertaken for the nodes/cities identifiedas part of phase-1 of DMIC corridor i.e. States of Gujarat, Maharashtra, Madhya Pradesh and Uttar Pradesh.

TheworkofTrunkInfrastructureatfouridentifiedlocations in DMIC project namely, (i) Ahmedabad-Dholera Special Investment Region in Gujarat (ii) Shendra-Bidkin Industrial Area in Maharashtra (iii) Integrated Industrial Township Project in Greater Noida, Uttar Pradesh (iv) Integrated Industrial Township Project in Vikram Udyogpuri in Ujjain, Madhya Pradesh is under progress.

Chennai-Bengaluru Industrial Corridor (CBIC)

During the visit of the Prime Minister of Japan to India in December, 2011, the two Prime Ministers stressed the importance of infrastructure development in the areas between Chennai and Bengaluru and directed to operationalize the modalities for preparation of the Comprehensive Integrated Master Plan for development of Chennai Bengaluru Industrial Corridor (CBIC).

Japan International Cooperation Agency (JICA) Study Team undertook the Preliminary Study for Chennai- Bengaluru Industrial Corridor (CBIC) and submitted its Final Draft Report on the Comprehensive Integrated Master Planning of 3 identified IndustrialNodes namely Ponneri (Tamil Nadu), Tumakuru (Karnataka) and Krishnapatnam (Andhra Pradesh).

Bengaluru Mumbai Economic Corridor (BMEC)

During the Summit meeting held between Prime Ministers of India and United Kingdom in February,

2013, it was agreed to examine and evolve the modalities and content of a feasibility study for the development of BMEC. It will be now called as Bengaluru Mumbai Industrial Corridor (BMIC) for the sake of uniformity of nomenclature. Dharwad node in Karnataka has been identified fordevelopment by State Government. Government of Maharashtra has given in principle approval for development of Sangli/Solapur Node in the State.

Amritsar-Kolkata Industrial Corridor (AKIC)

In order to give a boost to industrial development in the densely populated states of Northern and Eastern India, the Government planned to commence preparatory work on creating an Amritsar Kolkata Industrial Corridor (AKIC). This will be structured around the Eastern Dedicated Freight Corridor (EDFC) as the backbone and also the highway system that exists in this route. The AKIC will also leverage the Inland Water System being developed along National Waterway-1 which extends from Allahabad to Haldia. The AKIC will cover the seven states namely Punjab, Haryana, Uttar Pradesh, Uttarkhand, Bihar, Jharkhand and West Bengal. The Perspective Plan for the overall AKIC region is being finalized.

Vizag Chennai Industrial Corridor (VCIC)

Department of Economic Affairs (DEA) hasengaged Asian Development Bank (ADB) to conduct feasibility study and preparation of Conceptual Development Plan (CDP) for East Cost Economic Corridor (ECEC) linking Kolkata in the east through Chennai to Tuticorin in the south. In compliance of the commitment made by the Central Government in the Andhra Pradesh Reorganization Act, 2014, it was decided that in thefirstphaseofthestudy,ADBwouldfocusontheVizag-ChennaiSectionsothatafinalviewonVizag- Chennai Industrial Corridor may be taken

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within the timeline prescribed in the Act and further action would be taken accordingly.

As part of feasibility study of VCIC and also in terms of AP Reorganization Act, 2014, ADB team hassincesubmittedthefinalreportonConceptualDevelopment Plan (CDP) of VCIC within prescribed time period.

The master planning of the four nodes namely Vishakhapatnam, Srikalahasti-Yerpedu, Machili-patnam and Donakonda of Andhra Pradesh has since been initiated and is likely to be completed by March 2017.

National Industrial Corridor Development & Implementation Trust (NICDIT)

Union Cabinet in its meeting held on 7th December, 2016 accorded approval for the expansion of the mandate of Delhi Mumbai Industrial Corridor Project Implementation Trust Fund (DMIC-PITF) and its re-designation as National Industrial Corridor Development & Implementation Trust (NICDIT) for integrated development of Industrial Corridors with permission to utilize financialassistance already sanctioned and sanction of additional amount of Rs. 1584 crore within extended period upto 31st March, 2022.

Package for Special Category States

For promoting industrialization in the remote, hilly and inaccessible areas, Central Government hasformulatedandnotifiedNorthEastIndustrialand Investment Promotion Policy (NEIIPP), 2007, for the eight states of North East Region and Transport Subsidy Scheme, 1971, which in addition to the eight states of North East Region also covers Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Darjeeling district of West Bengal, Andaman & Nicobar Administration and Lakshadweep Administration. Benefits/incentives available under different schemes of

North East Industrial and Investment Promotion Policy (NEIIPP), 2007, include Capital Investment Subsidy, Interest Subsidy, Reimbursement of Insurance, 100% Income Tax Exemption and Excise Duty Exemption based on value addition normsspecifiedby theDepartmentofRevenue,Ministry of Finance.

Transport subsidy, ranging from 50% to 90% is provided on the transport cost for transportation ofrawmaterialandfinishedgoodstoandfromthe location of the unit and the designated rail-head or port as the case may be. Transport subsidy also covers movement of raw materials/finishedgoodsfromonestatetoanotherwithinthe North Eastern Region. The Transport Subsidy Scheme, 1971, has beenmodified and replacedby Freight Subsidy Scheme, 2013, which has been notifiedon23rdJanuary,2013.

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

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

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Monitoring of Industrial Activity, Production and Prices

DIPP monitors the performance in the industrial sector through collating information on Industrial Entrepreneurs’ Memorandum (IEM), Industrial License,LetterofIntent(LOI),ForeignInvestment

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

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Evolution and Development of Industrial Policy

General Industrial Policy

The Industrial Policy Resolution of 1948 laid the foundation principles of a mixed economy. It definedtheshapeandpatternofindustrializationdelineating industries into public sector and private sector. The Industries (Development & Regulation) Act, 1951, provided for the development and regulation of certain industries in order to direct balanced investment into desired channels of industrial activity keeping in view the national development objectives and goals. It provided for regulating the production and development of industries in consultation with States, Central Advisory Council & Development Councils. It also provided for categorization in industries into various schedules for licensing, relief, reconstructions. Within this broad legal framework, detailed Policies, Rules, Regulations, Procedures have been formulated. The objectives of the Industrial Policy formulated from time to time are (i) to ensure sustained growth & contribution to GDP; (ii) to enhance gainful employment & productivity (iii) to attain international competitiveness; and (iv) to transform India into a major manufacturing partner and player in the global arena.

Liberalization, Privatization, Globalization

To achieve these objectives, the focus at present is on liberalizing Indian industry by allowing freedomandflexibilitytoindustryinrespondingto market forces and facilitate ease of doing business.

In order to implement the Industrial Policy Statementof1991aNotificationNo.477(E)dated25.07.1991 has been issued under the Industries (D&R) Act, 1951. The Notification has threeSchedules:

Schedule(I)-ListofIndustriesreservedforPublicSector: Presently, only following, two industries are reserved exclusively for the public sector:

(a) Atomic Energy (Production, separation or enrichmentofspecialfissionablematerialsand substances and operation of the facilities) and,

(b) Railway Operations only:

Private investment has been allowed in railways for other construction, operation and maintenance.

Schedule(II)-ListofIndustriesinrespectofwhichIndustrialLicenceiscompulsory:ThelistofitemscoveredunderCompulsoryLicensingisreviewedon an ongoing basis.

After passing the bill in Parliament and Presidential assent, Industries (Development & Regulation) Amendment Act, 2016 (Act 27 of 2016) was notified on 14.5.2016 transferring industriesengaged in manufacturing alcohol meant for Potable purposes under the total and exclusive control of States. Consequently, the Department hadvideGazetteNotificationno.2737(E)dated11.8.2016 deleted the entries relating Potable alcohol from Schedule-II. Currently, only following four industries require an industrial licence:

Chapter 2

Evolution and Developm

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a) Cigars and cigarettes of tobacco and manufactured tobacco substitutes;

b) Electronic aerospace and defence equipment;

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

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

Schedule (III)-Article reserved for Small Scale Sector: Presently, there are no items reserved for exclusive manufacture by Small Scale Sector.

Ease of doing Business

The following measures have been taken up by Government for ease of doing business for IndustrialLicensing:

a. Process of applying for Industrial License (IL) and Industrial EntrepreneurMemorandum (IEM) has been made completely online and this service is now available to entrepreneurs on eBiz website, without human interface.

b. Defence products list for industrial licensing, has been issued, wherein large number of parts/components, castings/ forgings etc. have been excluded from the purview of industrial licensing. Similarly, dual use items, having military as well as civilian applications (unless classifiedas defence item) will also not require IndustrialLicencefromdefenceangle.

c. InitialvalidityperiodofIndustrialLicensehas been increased from 2 years to 3 years.

d. Extensionofvalidityof IndustrialLicenceincreased from 5 years to 7 years.

e. Guidelines have been issued to streamline the processing of applications for grant of extensionofvalidityofIndustrialLicence.

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

g. The advanced version of NIC Code (NIC 2008) has been adopted, which is a superior/sophisticated industrial classification.

h. The‘SecurityManualforLicensedDefenceIndustry’ has been issued. With the issue of the Security Manual, the requirement ofaffidavit fromtheapplicantshasbeendone away with.

i. Process cleared for issue of Industrial License for manufacture of UnmannedAerial Vehicle (UAV) for defence use

j. Restriction of annual capacity in the Industrial License forDefenceSectorhasbeen removed.

k. Licensee has been allowed to sell thedefence items to the government entities under the control of MHA, PSUs, State Governments and other Defence Licensee companies without approval ofDepartment of Defence Production.

l. MappingofSectorspecificFDIpolicywithNIC 2008 code has been completed and Press Note issued.

m. Initial validity of Industrial Licence forDefence Sector has been increased from the existing 3 years to 15 years with a provision of further extension of 3 years.


Government of India had announced National Manufacturing Policy (NMP) in the year 2011

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with the objective of enhancing the share of manufacturing in GDP to 25% and creating 100 million jobs by 2022. The Policy also seeks to empower rural youth by imparting necessary skill/sets to make them employable. Sustainable development is integral to the spirit of the policy and technological value-addition in manufacturing has received special attention.

NMP provides that the National Investment and Manufacturing Zones (NIMZ) as well as the other Industrial Clusters willing to adopt the parameters laid down in the policy can benefit from theinvestment friendly provisions of NMP.

‘Make in India’ Initiative

In the continuous process of evolution of Industrial Policy to boost manufacturing, the ‘Make in India’ global initiative was launched on 25th September 2014, to invite both domestic and foreign investors to invest in India. The initiative was simultaneously launched in all State capitals and in several Indian Embassies/High Commissions where time-zones permitted. A few other Indian Embassies also organized “Make in India” interactions after the launch.

The ‘Make in India’ initiative is based on four pillars, identified to boost entrepreneurship inIndia, not only in manufacturing but also other sectors. These are:

(i) New Processes

(ii) New Infrastructure

(iii) New Sectors

(iv) New Mindset

To promote India as a preferred investment destination in the markets overseas and to increase Indian share of Global FDI, an interactive portal http://www.makeinindia.com for dissemination of information and interaction with the investors has been created and is being further enhanced. Action Plans in respect of 22

Sectors were announced and the implementation is being monitored by the Cabinet Secretariat.

Policy for Foreign Direct Investment (FDI)

Department of Industrial Policy & Promotion is mandated with the work of formulation of the FDI policy of the Government of India. Based upon the remittances reported by the Reserve Bank of India, this Department maintains data on inward FDI into India.

The FDI policy is reviewed on an ongoing basis, with a view to making it more investor friendly, in keeping with national interest. In order to attract higher levels of FDI, Government has put in place a liberal policy on FDI, under which FDI up to 100%, is permitted, under the automatic route, in most sectors/activities.Significantchangeshavebeenmade in the FDI policy regime in recent times, to ensure that India remains an increasingly attractive investment destination. The Department plays an active role in the liberalization and rationalization of the FDI policy. Towards this end, it has been constructively engaged in holding extensive stakeholder consultations on various aspects of the FDI policy.

The Government has taken a number of FDI Policy reforms, which are not only bold but also historic. The measures taken by the Government were directed to open new sectors for foreign direct investment, increase the sectoral limit of existing sectors and simplifying other conditions of the FDI policy. These policy reforms are meant to provide ease of doing business and accelerate the pace of foreign investment in the country. The reforms undertaken by the Government include increasing the FDI limit up to 100% with 49% under automatic route in the Defence sector. 100% FDI under government approval route has been permitted for trading, including through e-commerce, in respect of food products manufactured and/ or produced in India.

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Further, Government has allowed 100% FDI under automatic route in brownfield airport projects.Foreign equity cap of activities of Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline has been increased from 49% to 100%, with 49% under automatic route, and beyond that through government approval route. Further, foreign equity cap of activities of Non-Scheduled Air Transport Service, Ground Handling Services have been increased from 74% to 100% under the automatic route. The other sectors/ activities in which FDI policy reforms have been undertaken are Broadcasting, Manufacturing, Single Brand Retail Trading, Pharmaceuticals, Private Security Agencies, E-commerce and Other Financial Services.

FDI Inflows

Total FDI into India, since April, 2000 including equity inflows, reinvested earnings and othercapital is US$ 457.35 billion (April, 2000 – November, 2016). During the calendar year 2016 (uptoNovember,2016),FDIequityinflowsofUS$43.06 billion have been received. This represents increaseof24%overtheFDIequityinflowsofUS$ 34.69 billion received during the corresponding period.

The FDI equityduring the current financial year2016-17 (up to November, 2016) surged by 31% to US$ 32.50 billion from US$ 24.81 billion in the year-ago period. Further, during the last 32 months i.e. April, 2014 to November, 2016, FDI equity inflow recorded a growth of 54% fromUS$ 67.30 billion to US$ 103.43 billion over the preceding period of 32 months (August, 2011 to March, 2014).

Industrial Management

It has been continuous endeavour of the Department of Industrial Policy and Promotion to make its functioning Industry friendly. The Industrial Entrepreneur Memorandum Section

is ISO 9001:2008 certified for maintaining theQuality Policy.

(a) Industrial Entrepreneur Memo- randum (IEM)

As per the liberalized policy in place since 1991, all non-MSME Industrial undertakings (with an investment above Rs.10 crore in Plant and machinery for manufacturing sector and more than Rs. 5 Crore for service sector) which are exempt from obtaining an industrial licence are required to file an Industrial EntrepreneurMemorandum(IEM) with the Secretariat for Industrial Assistance.

As a measure to facilitate ease of doing business, filing of online IEMs under e-BIZ has beeninitiated since January 2014. This means that the entrepreneurs do not need to travel to Udyog Bhavan, New 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’oftheIEMisrequiredtobefiled.

Filing an IEM is primarily for the purpose of collecting data about 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 preclude manufacturing of a compulsory licensable/SSI reserved item by IEM route.

A total of 89033 IEMs with proposed investment of Rs.1,04,55,130 crore are on record as on 31.12.2016. Statewise and sectorwise lists of IEMs filedduringthelastfiveyearsonayear-wisebasisare at Appendices III and IV.

Since the inception of the IEM scheme in August 1991 till December 2016, a total of 11,937 units have formally intimated commencement of

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commercial production. The investment reported in respect of these IEMs is Rs.7,42,920 crore. The Statewise report of implementation of IEMs for thelastfiveyearsisatAppendix-V.

(b) Industrial Investment Intentions

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. Statewiseand Sectorwise details of Industrial Investment Intentions during the 11th and 12th Plan periods are given at Appendices ‘VI’ & ‘VII’ respectively.

The information on Industrial Investment, information on IEMs filed on daily basis etc isbeing disseminated through this Department’ website for the information of the investors which leads to transparency and accountability of the functioning of this division.

(c) Industrial Production

(i) Industrial Performance

The Index of Industrial Production (IIP) over the base of 2004-05, measuring industrial performance monitors production in manufacturing, mining and electricity sectors and also in use-based group such as basic goods, capital goods, intermediate goods and consumer goods. The growth of IIP hasbeenfluctuatingoverthelastfewyears.Thegrowth in overall IIP, peaked at 15.5 % in 2007-08 (manufacturing growth rate was 18.4%) but declined to 2.5 % in 2008-09. However, it recovered to 5.3 % in 2009-10 and thereafter improved to 8.2 % in 2010-11. Subsequently, the industrial growth decelerated to 2.9 % in 2011-12 and 1.1 % in 2012-13 and the industrial production again moderated recording a negative growth of (-) 0.1 % in 2013-14. During 2014-15 and 2015-16, IIP recovered and registered positive growth of 2.8 % and 2.4% respectively. The details are given below in Table-2.1.

Table-2.1Annual Growth Rate of Industrial Ptroduction (in per cent)

Period Weight 2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17 (Apr-Nov)

Mining 14.2 4.6 2.6 7.9 5.2 -2.0 -2.3 -0.6 1.5 2.2 -0.3

Manufacturing 75.5 18.4 2.5 4.8 8.9 3.0 1.3 -0.8 2.3 2.0 -0.3

Electricity 10.3 6.3 2.7 6.1 5.5 8.2 4.0 6.1 8.4 5.7 5.0

Overall 100 15.5 2.5 5.3 8.2 2.9 1.1 -0.1 2.8 2.4 0.4

Source: Central Statistics Office.

During April-November, 2016-17, IIP increased by 0.4%. Manufacturing sector, which has more than 75% weight in IIP, declined by 0.3% during this period. This decline was primarily due to the negative growth in the production in industry groups like Food products & beverages, Wearing apparel,Luggage,handbagsetc,Wood&wood

products, Publishing, printing & reproduction of recordedmedia,Office,accounting&computingmachinery, Electrical machinery & apparatus, Medical, precision & optical instruments, watches and clocks and Furniture. The details of the growth in the manufacturing subgroups are given in the Table – 2.2.

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Table 2.2

Growth Rates of Production of Manufacturing Sub-Groups (Base: 2004-05=100) (in per cent)

Code Industry Weight 2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17 (Apr-Nov)

15 Food products & beverages 72.76 12.5 -8.2 -1.4 7.0 15.4 2.9 -1.1 4.8 -6.2 -3.4

16 Tobacco products 15.7 -4.4 4.4 -0.6 2.0 5.4 -0.4 0.8 1.0 -0.2 1.4

17 Textiles 61.64 6.6 -3.6 6.1 6.7 -1.3 5.9 4.4 2.8 2.6 2.3

18 Wearing apparel 27.82 9.3 -10.2 1.9 3.7 -8.5 10.4 19.5 5.1 6.6 -3.6

19 Luggage,handbags etc. 5.82 5.8 -5.1 1.3 8.1 3.7 7.3 5.2 10.4 -1.4 -7.3

20 Wood & wood products 10.51 17.5 4.9 3.1 -2.2 1.8 -7.1 -2.2 4.4 3.2 -2.0

21 Paper & Paper products 9.99 1.4 4.8 2.6 8.6 5.0 0.5 -0.1 3.3 2.8 0.8

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Publishing, printing & reproduction of recorded media

10.78 14.2 1.6 -6.0 11.2 29.6 -5.1 0.3 -4.1 -9.0 -1.9

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Coke,refinedpetroleum products & nuclear fuel

67.15 6.2 3.2 -1.3 -0.2 3.5 8.5 5.2 0.8 6.0 8.3

24 Chemicals and chemical products 100.59 7.2 -2.9 5.0 2.0 -0.4 3.8 8.9 -0.3 3.8 2.6

25 Rubber and plastic products 20.25 13.4 5.1 17.4 10.6 -0.3 0.2 -2.1 4.5 0.6 3.0

26Other non-metallic mineral products

43.14 9.3 3.3 7.8 4.1 4.8 1.9 1.1 2.5 1.6 2.8

27 Basic metals 113.35 17.9 1.7 2.1 8.8 8.7 1.9 0.3 12.7 1.0 5.8

28 Fabricated metal Products 30.85 7.8 0.1 10.2 15.3 11.2 -4.7 -7.0 -0.6 1.5 0.6

29 Machinery and equipment n.e.c. 37.63 22.6 -7.6 15.8 29.4 -5.8 -4.7 -4.7 4.0 2.6 8.4

30Office,accounting& computing machinery

3.05 6.0 -9.7 3.8 -5.3 1.6 -13.9 -15.7 -38.0 0.8 -7.1

31Electrical machinery & apparatus

19.8 183.5 42.3 -13.5 2.8 -22.2 0.6 14.5 21.1 -11.4 47.3

32Radio, TV and communication equipment

9.89 93.1 20.3 11.3 12.7 4.3 5.6 -27.3 -54.4 3.7 12.8

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Medical, precision & optical instruments, watches and clocks

5.67 6.3 7.5 -15.8 6.8 10.9 -2.0 -5.1 -2.3 -2.2 -0.7

34 Motor vehicles, trailers 40.64 9.5 -8.7 29.8 30.2 10.8 -5.3 -9.6 2.5 7.5 7.6

35 Other transport equipment n.e.c. 18.25 -2.9 3.8 27.7 23.2 11.9 -0.1 5.9 6.4 1.3 7.3

36 Furniture 29.97 18.7 7.4 7.1 -7.5 -1.8 -5.1 -13.9 7.4 44.4 -4.4Source: Central Statistics Office.

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As per the use-based classification of IIP, theproduction of Capital goods shrank during 2011-12, 2012-13 and 2013-14. In 2014-15, though, the growth in production of Capital goods picked up but, it again registered negative growth during 2015-16. In April-November, 2016-17, Capital goods sector declined by 18.9%. After registering negative growth in two consecutive years 2013-

14 and 2014-15, Cosumer goods sector recovered to some extent and registered positive growth of 3.0% in 2015-16 and 1.8% during April-November, 2016-17 mainly on account of decent growth of consumer durable. The growth in production of Basic goods and Intermediate goods have been positive in the previous few years and during April-November, 2016-17 (Table-2.3).

Table 2.3: Growth Rate of Use-Based Classification of IIP (in per cent)

Sectors Weight 2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17 (Apr-Nov)

Basic Goods 45.7 8.9 1.7 4.7 6.0 5.5 2.5 2.1 7.0 3.6 4.1

Capital Goods 8.8 48.5 11.3 1.0 14.8 -4.0 -6.0 -3.6 6.4 -2.9 -18.9

Intermediate Goods 15.7 7.3 0.0 6.0 7.4 -0.6 1.6 3.1 1.7 2.5 3.4

Consumer Goods 29.8 17.6 0.9 7.7 8.6 4.4 2.4 -2.8 -3.4 3.0 1.8

(i) Consumer Durable 8.5 33.1 11.1 17.0 14.2 2.6 2.0 -12.2 -12.6 11.3 6.9

(ii) Consumer Non-durable 21.3 10.2 -5.0 1.4 4.3 5.9 2.8 4.8 2.8 -1.8 -1.8

IIP 100 15.5 2.5 5.3 8.2 2.9 1.1 -0.1 2.8 2.4 +0.4

Source: Central Statistics Office.

The Graph below shows that growth in overall IIP and its three sectors has been volatile. The volatility appears to have increased during recent months. During April–November, 2016-17, volatility in the

sectors persisted as displayed in the month-wise growthtrendofIIP.Duringcurrentfinancialyear,the highest growth of 5.7 percent was recorded in November, 2016 while the lowest growth of (-) 2.5 percent recorded in October, 2016 (Graph – 2.1).

Graph-2.1: Month-wise Sectoral growth rates during 2016-17 (April-October)

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The items included in IIP for which information is collected by DIPP and showing negative growth during April-November, 2016-17 are listed below in the Table – 2.4.

Table-2.4Products showing negative growth during 2016-17 (April-November)

Use-based industry groups DIPP products

Basic GoodsStampings & Forgings, Aluminium wires & extrusions, Aluminium Sheets/Plates, Copper Metal Cathode, Granites, Aluminium Foils, Molasses, Bagasse, Phosphoric Acid, Ammonia, Glycerine, Dissolved Acetylene Gas.

Capital Goods

Three-Wheelers(including passenger & goods carrier), Grinding Wheels, Transformers (Small), Computers, Conductor, Aluminium, Air Break Switches / Circuit Breakers, Cable, Rubber Insulated, Sugar Machinery, X-ray equipment, Heat Exchangers, UPS/Inverter/Converter, H.T.Insulators, Electric Motors Phase-I ,Medical and Surgical Equipment (except x-ray), Rubber Transmission And V Belts, Industrial Chains, Packaging Machinery, Furnaces, Electrical Switchboard, Computer Peripherals, Agricultural Implements , Food Processing Machinery, Printers, Material Handling Equip., Dairy Machinery, DC Motors, Forklift, Construction Machine/Equipment, Agricultural Machinery, Air Conditioner (Packaged), Magnesite, Dead Burnt.

Intermediate Goods

Block Board, Indust. Alcohol(Rectified/Denatured Spirit)., Particle Boards, Polyester Chips,PrintedCircuitBoard/Plate,Dyes,TannedorChromeSkinsandLeathers,SealedCompressors,StrawAndPaperBoardsofAllKinds,HosePipe,WoodVeneer,ElectricalStampingLamination,Guar Gum Splits, Fibre Glass, Newsprint, Plastic Sheets, Fatty Acid, Gelatin, Valve, Rubber Chemical,EmptyCapsules,RubberTread,LeatherFinishingChemicals&Auxiliaries,ToughenedGlass, Plastic Bottles, IC Chips & Transistors.

Consumer Durables

Glazed Tiles /Ceramic Tiles , Pressure Cooker, Marble Tiles/Slabs, Bicycles, Aluminium Utensils, Tyre, Cycle/Rickshaw, Watches, Electric meter of all kinds, Pvc/Plastic Suitcases, Tube, Cycle/Rickshaw, Mixers & Grinders, Rubber Flaps, Tyre, Jeep (Incl. SUVs, MUV), Battery Charger.

Consumer Non-durables

Antibiotics& It's Preparations, Apparels, Newspapers, Leather Garments, Rice, Pens of AllKind, Milk, Skimmed, Pasteurised, Biri, Writing & Printing Paper, Vitamins, Cashew Kernels, Ayurvedic Medicaments, Footwear except leather, Toilet Soap, Synthetic Detergents, Indian madeForeignLiquor,PolytheneBagsIncl.Hdpe&LdpeBags,FruitPulp,MilkPowderallkind,FrozenBuffalo/MuttonMeatandedibleOffals,FluorescentTubes,Chocolate, Ghee,Zarda/Chewing Tobacco, Safety Matches, Syringes,Sports Goods, Rubber, Leather Bags, Wallets,Purses, Agarbattis andDhoop,MineralWater, Butter, Incandescent Lamp, Leather Gloves,Bread,Glucose(powder&liquid),MercuryVapourLamp,ToothPowder.

Source: DIPP.

(ii) Performance of Eight Core Industries

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 37.90 % in Index of Industrial Production (IIP). ICI is released 12 days prior to the release of IIP by CSO.

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The growth rates for eight core industries since 2008-09 are given in Table – 2.5. During 2014-15, the ICI grew at 4.5 %. In 2015-16, ICI grew only at 3.2% mainly due to negative growth in production of Crude Oil, Natural Gas and Steel. However, the productionofCoal,RefineryProducts,Fertilizers,Cement and Electricity registered positive growth during this period. In April-December, 2016-

17, Index of Eight Core Industries registered growth of 5.0 percent. The production of Steel has registered more than 8% growth during this period. Theproductionof Refineryproduct andElectricity each registered more than 5% growth during April-December, 2016-17. However, the production of Crude Oil and Natural Gas registered negative growth during this period.

Table 2.5Growth Rate of Eight Core Industries (in per cent)

Sector Weight 2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

2015-16

2016-17 (Apr-Dec)

Coal 4.38 8.0 8.1 -0.2 1.3 4.6 1.3 8.1 4.5 2.0Crude Oil 5.22 -1.8 0.5 11.9 1.0 -0.6 -0.2 -0.9 -1.4 -3.2Natural Gas 1.71 1.3 44.6 10.0 -8.9 -14.5 -13.0 -4.9 -4.2 -3.3RefineryProducts 5.94 3.0 -0.4 3.0 3.1 29.0 1.5 0.3 3.7 7.8Fertilizers 1.25 -3.9 12.7 0.0 0.4 -3.4 1.5 -0.1 12.2 3.4Steel 6.68 1.9 6.0 13.2 10.3 4.1 11.5 4.7 1.2 8.9Cement 2.41 7.2 10.5 4.5 6.7 7.7 3.1 5.6 4.9 2.8Electricity 10.32 2.7 6.2 5.6 8.1 4.0 6.0 8.4 6.8 5.4Overall Index 37.90 2.8 6.6 6.6 5.0 6.5 4.2 4.5 3.2 5.0

Source: Office of the Economic Adviser, DIPP

*RefineryProducts’yearlygrowthratesof2012-13arenotcomparablewithotheryearsonaccountofinclusionofRIL(SEZ)production data since April, 2012.

Chapter 3


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

Important Instruments/Features of the Policy

National Investment and Manufacturing Zones (NIMZs);

Rationalization and simplification ofbusiness regulations;

Simple and expeditious exit mechanism for manufacturing units;

Incentives for SMEs;

Industrial training and skill upgradation measures;

Financial and institutional mechanisms for technology development, including green technologies;

Government procurement;

Special Focus Sectors.

National Investment and Manufacturing Zones (NIMZs)

NIMZs have been conceived as large integrated industrial townships with state-of-the-art infrastructure; land use on the basis of zoning; cleanandenergyefficienttechnology;necessarysocial infrastructure; skill development facilities, etc. to provide a conducive environment for manufacturing industries. To enable the NIMZ to function as a self governing and autonomous body, it will be declared by the State Government as a Industrial Township under Article 243 Q (1)(c) of the Constitution. These NIMZs would be managed by a Special Purpose Vehicle (SPV) which would ensure master planning of the zone; pre-clearances for setting up the industrial units to be located within the zone and undertake such otherfunctionsasspecifiedinthevarioussectionof the policy.

TheNIMZswouldbedifferentfromSEZsintermsof size; level of infrastructure planning; governance structures related to regulatory procedures; exit policies;fiscalincentives,etc.

The policy mandates that the SPV in a zone will be headed by a senior government officialand will include inter-alia an official expertconversant with the work relating to pollution control/environmental protection. There shall be a provision of suitable representation of the allottees and subsequently industrial units.

Progress Made so far with respect to NIMZs

• Constitution of the approval/monitoring mechanism i.e. Manufacturing Industry

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anufacturing Policy

Promotion Board (MIPB), Green Manufacturing Committee (GMAC) and High Level Committee (HLC) underNational Manufacturing Policy.

• The States have been requested to identify land banks for setting up of the National Investment and Manufacturing Zones and to initiate the process of rationalization and simplificationof state level businessregulations.

• Definition of Cluster to be used fordispensations under NMP has been circulated to all State Government.

• Draft advisory on simplification &rationalization of business regulations and skill development has been prepared and forwarded to Ministry of Labour &Employment(MoLE)forfurthernecessaryaction.

• Draft mechanism for delegation of power of inspection/enforcement of labour laws undertherelevantLabourActstotheCEOof NIMZ has been prepared and sent to MoLE.

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

Status of NIMZs

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

i. Ahmedabad-Dholera Investment Region, Gujarat

ii. Pithampur - Dhar - Mhow Investment Region, Madhya Pradesh

iii. Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra

iv. Dighi Port Industrial Area, Maharashtra

v. Manesar-Bawal Investment Region, Haryana

vi. Khushkhera - Bhiwadi - Neemrana Invest-ment Region, Rajasthan

vii. Jodhpur-Pali-Marwar Region in Rajasthan and

viii. Dadri - Noida - Ghaziabad Investment Region, Uttar Pradesh

Fourteen NIMZs outside the DMIC region have been given in-principle approval:

i. Nagpur in Maharashtra

ii. Prakasam in Andhra Pradesh

iii. Chittoor in Andhra Pradesh

iv. Medak in Telangana

v. Hyderabad Pharma NIMZ at Rangareddy and Mahabubnagar Districts in Telangana.

vi. Tumkur in Karnataka

vii. Kolar in Karnataka

viii. Bidar in Karnataka

ix. Gulbarga in Karnataka

x. Kalinganagar, Jajpur District in Odisha

xi. Ramanathapuram District of Tamil Nadu

xii. Ponneri Taluk, Thiruvallur District, Tamil Nadu

xiii. Auraiya District in Uttar Pradesh and

xiv. Jhansi District in Uttar Pradesh

Out of these NIMZs, the NIMZ at Prakasam in Andhra Pradesh; Medak in Telangana and Kalinganagar, Jajpur district in Odisha have been grantedfinalapproval.

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Special Benefits/Measures for SMEs Under NMP

• Rollover relief from long term Capital Gains tax to individuals on sale of a residential property (house or plot of land) in case of re-investment of sale consideration in the equity of a new start-up SME company in the manufacturing sector for the purchase of a new plant and machinery.

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

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

• Easier access to bank finance throughappropriate bank lending norms, to be arrived at in consultation with RBI, to cater specificallytotheMSMEsectorandearlystage business units.

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

• Technology Acquisition and Development Fund: SMEs will be given access to the patent pool and/or part reimbursement of technology acquisition costs upto a maximum of Rs.20 lakhs for acquiring appropriate technologies patented upto a maximum of 5 years generally, prior to the date of submission of the project.

• 25% grant to SMEs for expenditure incurred on Environmental and Water audits subject to a maximum of Rs.1 lakh in NIMZs.

Project undertaken/work done under Technology Acquisition And Development Fund (TADF)

• Scheme for Technology Acquisition and Development Fund (TADF) under the NMP was launched on 18th November, 2015.

• In Cycle-1 of Request for Proposal (RFP) under this TADF Scheme a total number of 11 projects covering user friendly dialysis technology; energy generation from domestic waste; developing a low cost fully automatic plastic injection molding machine; water management system for conservation and pollution control; development of electric 3 wheelers; inverter less solar DC power solution etc. have been considered and approved by the Green Manufacturing Committee (GMAC), constituted under NMP in its meeting held on 22nd February, 2016.

• In Cycle-2 of Request for Proposal (RFP) under this TADF Scheme a total number of 7 projects covering smart rural electrification; thermal energy storage;technology for solid waste management; recycling of footwear etc. have been considered and approved by the Green Manufacturing Committee (GMAC) in its meeting held on 22nd April, 2016.

• The Scheme has now been transferred to Ministry of Micro, Small and Medium Enterprises on 16th September, 2016.

Industrial Corridors

Delhi Mumbai Industrial Corridor (DMIC)

Background

The Delhi-Mumbai Industrial Corridor is being developed on either side, along the alignment of the 1,504 km long Western Dedicated Rail Freight Corridor between Dadri (UP) and Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai. The project seeks to create a strong economic base with a globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance investments and attain sustainable development. The DMIC project covers the six States namely Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra. DMIC Development Corporation was incorpo rated in January 2008 as the project implementation agency and has been restructured with 26% equity of the Govt. of Japan. The Japanese Government has also announced their financial support forDMIC project to an extent of US $ 4.5 billion in the firstphasefortheprojects.Initially,eightnodes/cities in the six DMIC States have been taken up for development.

Current Status

i. Perspective planning for the entire DMIC corridor has been completed;

ii. Subsequent to the perspective planning, master planning and preliminary engineering has been undertaken for the nodes/citiesidentifiedaspartofphase-1of DMIC corridor i.e. States of Gujarat,

Maharashtra, Madhya Pradesh and Uttar Pradesh.

iii. For the first time, all the utilities namely,storm water drainage, power, ICT, city wide gas (cooking gas) sewerage etc. have been planned below the ground. In addition to the above sufficient provisioning in termsof empty conduits is being considered to avoid any digging up of roads in the future.

iv. During the preparation of preliminary design and engineering of the trunk infrastructure, benchmarking against the best global practices has been undertaken for the provision of state-of-the-art trunk infrastructure.

State-wise Progress of various projects under Delhi Mumbai Industrial Corridor Project:

1. Gujarat

Ahmedabad - Dholera Special Investment Region (DSIR):

a) 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 i.e. TP scheme 1 to TP scheme 6;

b) Programme Managers have been appointed for entire DSIR for undertaking the implementation related activities by coordinating all the downstream activities;

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c) Since, the entire trunk infrastructure cannot be implemented in one go due to practical reasons, a phased approach was adopted and Preliminary Engineering activities for TP scheme-2 comprising of TP-2(East) and TP-2(West) were taken up and have been completed;

d) Further, an Activation Area of 22.5 sq kms has been carved out based on the maximum availability of Government Landwhichwillfacilitatetheearlytakeoffof various infrastructure components in DSIR;

e) Cabinet Committee on Economic Affairs (CCEA) had approved the tenderpackages for various trunk infrastructure components for Activation Area of Dholera (22.5 Sq.Kms ) for Rs. 2784.82 Crore.

f) SPV by the name of “Dholera Industrial City Development Limited” has beenincorporated

g) State Govt. has transferred 22.5 Sq.Kms. of land to the SPV and matching equity has also been released by the DMIC Trust;

h) TheStatusofProgressoffivepackagesofTrunk infrastructure of Activation Area is as under:

i. EPC for Roads and Services Contract (INR1,734CR)awarded.M/sL&Tisthe selected bidder. Work has been initiated on ground;

ii. EPC for ABCD Building Contract (INR 72.31 Crore) awarded. M/s Cube Construction Engineering Ltd. isthe selected bidder. Work has been initiated on ground;

iii. EPC for Water Treatment Plant (WTP) Contract (INR 90 Crore) awarded. M/s SPML is the selected bidder.Work will be initiated shortly;

iv. EPC for Sewage Treatment Plant (STP) Contract (INR 54 crore) awarded. M/s L&T is the selectedbidder. Work will be initiated shortly;

v. EPC tender for Central EffluentTreatment Plant (CETP) has been issued and bids received are under evaluation.

i) The Trunk Infrastructure work of the Dholera Activation area is likely to be completed by 2019.

The Status of Progress of various Support- Infrastructure projects for DSIR is as under:

I. Transaction Advisors have also been appointed for Greenfield InternationalAirport at Dholera;

II. DPR for MRTS Project has been approved by the State Govt. and the project has been included in the JICA Special Rolling Plan for DMIC Project. NHAI has appointed the Consultant for DPR preparation for Expressway Project. Land acquisition forthe MRTS Project will be initiated as part of RoW of expressway project once DPR is ready;

III. For Railway Line between Bhimnathand Dholera, Ministry of Railways has submittedtheFinalLocationSurvey(FLS)report to the Railway Board. The activities related to preparation of DPR are being initiated.

2. Maharashtra

Shendra -Bidkin Industrial Area (SBIA)

a) Preliminary Engineering works for Phase-1 of Shendra Bidkin Industrial Ares (SBIA-8.39 Sq. Kms) has been completed;

b) Programme Managers have been appointed for undertaking the

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implementation related activities by coordinating all the downstream activities;

c) Cabinet Committee on Economic Affairs (CCEA) had approved the tenderpackages for various trunk infrastructure components for phase –I of Shendra Industrial Area for Rs. 1,533 Crore.

d) Node/City level SPV by the name “AurangabadIndustrialTownshipLimited”has been incorporated. State Govt. has transferred 8.39 sq kms to the SPV and the matching equity has also been released by the DMIC Trust;

e) Details of Status of Progress of Trunk Infrasructure Work of SBIA- Phase- I are as under:

i. EPC for Roads, Drains, Culverts, Water Supply, Sewerage and Power systems awarded (INR 656.89 Crore). M/s Shapoorji Pallonji is the selected bidder. Work has been initiated on ground;

ii. EPC for construction of Road over Bridges awarded (INR 69.45 Crore). M/s Patil Construction and Infrastructure Ltd is the selectedbidder. Work has been initiated on ground;

iii. EPC for District Administration Building (INR 129 Crore). M/s Shapoorji Palloni is the selected bidder. Work has been initiated on ground;

iv. Other packages of landscaping and Sewerage Treatment Plant (STP), Common Effluent Treatment Plant(CETP) & Solid Waste Management will be issued in a phased manner;

f) The trunk infrastructure work for SBIA - Phase-1 of SBIA (8.39 Sq. Kms) is likely to be completed by 2019.

g) Project developmental activities for Bidkin are being taken forward and trunk infrastructure packages worth INR 6414.21 Crore have been approved by Cabinet CommitteeonEconomicAffairs(CCEA);

3. Madhya Pradesh

Industrial Township ‘Vikram Udyogpuri’ Project, Near Ujjain:

a) For Integrated Industrial Township ‘Vikram Udyogpuri’ Project, Detailed Project Report (DPR) has been approved by the State Govt. and SPV by the name of “VikramUdyogpuri Limited”hasbeenincorporated. Land admeasuring 1100acres has been transferred to the project SPV and the matching equity has also been released by the DMIC Trust;

b) Program Management Consultants has also been appointed to supervise the construction related activities;

c) M/s SPML has been appointed as theEPC Contractor for INR 332 Crore for undertaking the implementation of various trunk infrastructure components. Work has been initiated on ground;

d) The Trunk Infrastructure work for Integrated Industrial Township ‘Vikram Udyogpuri’ Project” is likely to be completed by 2018.

Pithampur Water Supply Project

For this Project, the project SPV by the name of ‘PithampurJalPrabandhanCompanyLimited’hasbeenincorporated.EPCcontractor(M/sL&T)hasbeen selected for INR 219 Crore. Work has been initiated on ground.

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4. Uttar Pradesh

Integrated Industrial Township Project, Greater Noida

a) For Integrated Industrial Township Project, preliminary engineering activities have been completed and SPV by the name of “Integrated Industrial Township Greater Noida Limited” incorporated. Landadmeasuring 747.5 acres transferred to the Project SPV and the matching equity has also been released by the DMIC Trust;

b) Programme Managers have also been appointed to supervise the construction related activities;

c) M/s Shapporji has been appointed as the EPC Contractor for INR 426 Crore for undertaking the implementation of various trunk infrastructure components;

d) The Trunk Infrastructure Work of “Integrated Industrial Township Greater Noida” is likely to be completed by 2018.

Multi Modal Logistics Hub (MMLH) and Multi Modal Transport Hub (MMTH) Project, Dadri, Uttar Pradesh

ForMultiModalLogisticsHub(MMLH)andMultiModal Transport Hub (MMTH) Project at Dadri, the consultant for preparation of Detailed Project Report (DPR) has been appointed. State Govt. is under the process of acquiring land. Discussions have also been initiated with DFCCIL so as toprovide connectivity to the site from Western and Eastern DFC.

5. Rajasthan

Kushkhera Bhiwadi Neemrana Investment Region (KBNIR):

a) For Kushkhera Bhiwadi Neemrana Investment Region (KBNIR), master plan hasbeennotifiedbytheStateGovernment

and land acquisition process has been initiated for 1425.36 Ha. In this regard, StateGovt. is in theprocessoffinalizingthe loan agreement with HUDCO for funding the land acquisition for phase-1 of the project;

b) Environment Clearance has already been obtained;

c) Rajasthan Special Investment Regions Act, 2016hasbeennotifiedbyStateGovt.;

d) Draft Shareholders Agreement (SHA) and the State Support Agreement (SSA) has been shared with the State Government.

e) For Aerotropolis Project, the process for preparation of Detailed Project Report (DPR) has been initiated by DMICDC through Airport Authority of India (AAI). It is expected that DPR shall be ready byMarch, 2017. Land details have beenshared with the State Govt. to initiate the process of land acquisition.

Jodhpur Pali Marwar Industrial Area (JPMIA):

For Jodhpur Pali Marwar Industrial Area (JPMIA), the Master Plan has been prepared and notificationhasalsobeendonebytheStateGovt.Environment Impact Assessment (EIA) studies are complete and public hearing is awaited for seeking environment clearance.

6. Haryana

a) For the MRTS Project from Gurgaon to Bawal in Haryana, Final Detailed Project Report (DPR) has been approved by the State Govt. Project SPV has also been incorporated between DMIC Trust and State Govt. Request has been made to DEA for inclusion of the project JICA Special Rolling Plan.

b) For Global City Project, the project consultants appointed by DMICDC for

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finalization of master plan is taking thestudy forward in close coordination with the State Govt. Land is in possession ofthe State Govt. Project SPV has also been incorporated between DMIC Trust and State Govt.

c) ForIntegratedMultiModalLogisticsHub(IMLH) Project, land admeasuring 1000acreshasbeenidentifiedatvillagesTalot,Ghatasher and Bashirpur, Tehsil Narnaul, District Mahendergarh. Project SPV has been incorporated between DMIC Trust and State Govt. Consultants for techno-economic feasibility study and master planning have been appointed.

Smart Community Projects

Model Solar Project at Neemrana, Rajasthan

a) An SPV “DMICDC Neemrana Solar Power Limited”hasbeenincorporatedandequityhas been released to the project SPV;

b) LeasedeedhasbeenexecutedandPowerPurchase Agreement (PPA) for 5 MW plant executed between NTPC Vidyut Vyapar NigamLtd.(NVVN)&projectSPV;

c) The project for 5MW has been commissioned as grid synchronization of 5MW Solar power plant is complete & power feeding to grid has commenced since 24th July, 2015. Commissioning Certificate has been issued by NTPCVidyutVyaparNigamLtd.(NVVN)on3rdSeptember, 2015.

d) PPA betweenM/sMikuni India Pvt. Ltd.,a Japanese company and M/s DMICDC NSPCLfor1MWhasbeenexecuted;

e) Implementation Document (ID) has been executed betweenM/s DMICDC LimitedandM/sHitachiLimited;

f) Data Purchase Agreement between M/s HitachiLimitedandM/sDMICDCNSPCLfor 1MW Solar has been executed;

g) Other project developmental activities are being taken forward for 1MW Solar PV plant integrated with DG & Micro Grid.

DMICDC Logistics Data Services Project

a) LDB System will provide near real timevisibility of the container position and custodian. This system will also provide comparative performance metrics for all Logistics Container Operators and helpusers take informed decisions;

b) The Shareholders’ Agreement has been executed and project SPV by the name of “DMICDC LogisticsData Services” hasbeen incorporated;

c) Port Operator Agreement has also been executed with JNPT Port on 17th February, 2016;

d) Operations have been initiated at JNPT Portwitheffectfrom1stJuly,2016;

e) More than 15,00,000 containers have been tagged/de-tagged till 31st December, 2016.

Indo-Japan Task Force Meeting: The 15th meeting of the Indo Japan Task Force on DMIC was held on 27th October, 2016 in Japan, with Additional Secretary, Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry (MoC&I), Government of India and Director-General for Southwest Asia, Trade Policy Bureau, Ministry of Economy, Trade and Industry (METI) of Japan as co-chairs.

India Japan Summit Meeting – November, 2016: H.E. Mr. Narendra Modi, Prime Minister of the Republic of India, visited Japan at the invitation of H.E. Mr. Shinzo Abe, Prime Minister of

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Japan. The two Prime Ministers held wide ranging consultations on 11th November, 2016 in Tokyo, during which they undertook a comprehensive review of all Indo-Japan Strategic Projects including Delhi Mumbai Industrial Corridor (DMIC) and Chennai-Bengaluru Industrial Corridor (CBIC).

Chennai-Bengaluru Industrial Corridor (CBIC)

Background

During the visit of the Prime Minister of Japan to India in December, 2011, the two Prime Ministers stressed the importance of infrastructure development in the areas between Chennai and Bengaluru and directed to operationalize the modalities for preparation of the Comprehensive Integrated Master Plan for development of Chennai Bengaluru Industrial Corridor (CBIC).

Japan International Cooperation Agency (JICA) Study Team undertook the Preliminary Study for Chennai- Bengaluru Industrial Corridor (CBIC) and submitted its Final Draft Report on the Comprehensive Integrated Master Planning of 3 identifiedIndustrialNodesnamelyPonneri(TamilNadu), Tumakuru (Karnataka) and Krishnapatnam (Andhra Pradesh) in June, 2015

The Perspective Plan along with the initial master planning for the Chennai Bengaluru Industrial Corridor Project is complete and the Preparation of Detailed Master Plan along with Preliminary Engineeringofthefollowingidentifiednodeshasbeen initiated:

1) Tumakuru ( Karnataka)

2) Ponneri ( Tamil Nadu)

3) Krishnapatnam (Andhra Pradesh)

DMICDC has been appointed as the nodal agency forfollowingactivitiesforidentifiednodesunderChennai Bengaluru Industrial Corridor (CBIC) Project:

• Detailed Master Planning and Preliminary Engineeringfortheidentifiednodes;

• Preliminary Environmental Impact Assessmentfortheidentifiednodes;

• Finalization of Shareholder’s Agreement (SHA) and State Support Agreement (SSA) fortheidentifiednodes.

Progress

A) Ponneri Node, Tamil Nadu :

1) Selection of Consultants for Detailed Master Planning and Preliminary Engineering:

• The RFP for selection of consultants for detailed master planning and preliminary engineering have been issued;

• Bid proposals have been received and are under evaluation.

2) Status of SHA/SSA:

• Response on the queries raised by the legal Consultants of DMICDC is awaited from the State Govt.;

• TIDCO has submitted a proposal to the State Govt. based on the approved institutional & financialframework of DMICDC;

• SHA and SSA’s of Maharashtra have been shared with the State Govt. for reference purpose.

B) Krishnapatnam Node, Andhra Pradesh

1) Selection of consultants for Detailed Master Planning and Preliminary Engineering:

• Consultant has been shortlisted for detailed master planning and preliminary engineering;

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• The Letter of Award (LoA) is beingissued.


• Draft SHA and SSA have already been discussed at length with State Govt.;

• Comments of the State Govt. have been suitably incorporated for finalizingtheSHA/SSA;

C) Tumakuru Node, Karnataka:

1) Selection of consultants for Detailed Master Planning and Preliminary Engineering:

• Four bid proposals received for detailed master planning and preliminary engineering are under evaluation;

• Consultants will be appointed shortly.


• Draft SHA and SSA have already been shared with State Govt.;

• The comments on the draft SHA and SSA are awaited from State Govt.(s) side.

Bengaluru Mumbai Economic Corridor (BMEC):

During the Summit meeting held between Prime Ministers of India and United Kingdom in February, 2013, it was agreed to examine and evolve the modalities and content of a feasibility study for the development of BMEC. It will be now called as Bengaluru Mumbai Industrial Corridor (BMIC) for the sake of uniformity of nomenclature. Dharwad node in Karnataka has been identified fordevelopment by State Government. Government of Maharashtra has given in principle approval for development of Sangli/Solapur Node in the State.

Amritsar-Kolkata Industrial Corridor (AKIC)

Background

In order to give a boost to industrial development in the densely populated states of Northern and Eastern India, the Government planned to commence preparatory work on creating an Amritsar Kolkata Industrial Corridor (AKIC). This will be structured around the Eastern Dedicated Freight Corridor (EDFC) as the backbone and also the highway system that exists in this route. The AKIC will also leverage the Inland Water System being developed along National Waterway-1 which extends from Allahabad to Haldia. The AKIC will cover the seven states namely Punjab, Haryana, Uttar Pradesh, Uttarkhand, Bihar, Jharkhand and West Bengal.

Delhi-Mumbai Industrial Corridor Development Corpn. Ltd. (DMICDC) has been entrusted withthe work of undertaking the Perspective Planning of AKIC, as the nodal agency. The Perspective Plan for the overall AKIC region is being finalized.

Vizag Chennai Industrial Corridor (VCIC)

Background

Department of Economic Affairs (DEA) hasengaged Asian Development Bank (ADB) to conduct feasibility study and preparation of Conceptual Development Plan (CDP) for East Cost Economic Corridor (ECEC) linking Kolkata in the East through Chennai to Tuticorin in the South. In compliance of the commitment made by the Central Government in the Andhra Pradesh Reorganization Act, 2014, it was decided that in thefirstphaseofthestudy,ADBwouldfocusontheVizag-ChennaiSectionsothatafinalviewonVizag- Chennai Industrial Corridor may be taken within the timeline prescribed in the Act and further action would be taken accordingly.

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As part of feasibility study of VCIC and also in terms of AP Reorganization Act, 2014, ADB team hassincesubmittedthefinalreportonConceptualDevelopment Plan (CDP) of VCIC within prescribed time period.

Progress Made

Four nodes namely Vishakhapatnam, Kakinada, Gannavaram-Kankipadu and Srikalahasti-Yerpedu of Andhra Pradesh were identified by ADBin their CDP-VCIC region. Two nodes namely Kakinada and Gannavaram-Kankipadu have been replaced with Machilipatnam and Donakonda. The master planning of the four nodes namely Vishakhapatnam, Srikalahasti-Yerpedu, Machili-patnam and Donakonda of Andhra Pradesh has since been initiated and is likely to be completed byMarch2017.LoanamountofUS$625millionfor the project was approved by ADB Board in September; 2016. The Counterpart funding of US$ 215 million will be made by State Government of Andhra Pradesh.

National Industrial Corridor Development And Implementation Trust (NICDIT)

Government of India has accorded approval for expanding the mandate and scope of Delhi Mumbai Industrial Corridor Project Implementation Trust Fund (DMIC-PITF) and re-designated it as National Industrial Corridor Development and Implementation Trust (NICDIT) for integrated development of industrial corridors in the country. NICDIT will function under the administrative control of the Department of Industrial Policy and Promotion.

NICDIT will take up new Industrial Corridors, Nodes, Early Bird Projects and Standalone Projects on the recommendation of State Governments. It will develop the overall enabling institutional, funding and operational framework for the Industrial Corridors; support project development activities through a Knowledge Partner for the

Industrial Corridors and agencies like SPVs and State Governments involved in implementation of industrial cities/ projects in the Industrial Corridors; assist States in identifying Anchor Investors for industries; and appraise all project proposals placed before it and sanction equity/debt to SPVs and grants for project development asperextantfinancialdelegation;

Exhibition cum Convention Centre (ECC) Dwarka, Delhi:

a) The project has been approved by the Cabinet;

b) Project Steering Committee has been constituted to steer the project;

c) M/s AECOM have been appointed as Program Management Consultants to take the various project developmental activities forward;

d) Physical possession of land has been taken by DIPP from DDA;

e) DelhiMetroRailCorporationLtd.(DMRC)has been appointed to prepare the DPR for direct metro connectivity to the project site;

f) AAI has provided the height restrictions for the building/structures to be constructed in the project area. Survey of India has completed physical site survey for supply ofcoordinatesandwillprovidetheAMSLheightcertificateofprojectsiteshortly;

g) Statutory approval on individual building blocks shall be provided upon receipt of application along with AMSL certificatefrom Survey of India;

h) EIA survey has been completed and EIA report will be submitted shortly;

i) M/sTrueEarthSurveysPvt.Ltd.hasbeenappointed as 3rd party surveying agency

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to conduct topographical survey for the project site. The process for obtaining permission of tree cutting/afforestationwill be initiated after completion of site survey;

j) DDA has submitted the details of existing utility/services within/around the periphery of project site. This detail has been sent to DJB to obtain tapping and disposal points for the Project Site;

k) Discussions have also been initiated with TRANSCO to provide uninterrupted power supply for the project.

l) Draft Note for Expenditure Finance Committee on the formation of SPV for implementation of the project has been circulated for comments.

Improvement of Business Environment: e-Biz Project

eBiz project is one of Mission mode Projects (MMPs) under the Digital India program of Government of India. The project envisages setting up a G2B portal to serve as a one-stop shop for delivery of services to the investors and addresses the need of business and industry from inception through the entire life-cycle.

The eBiz project is being implemented on a Public Private Partnership (PPP) model, with M/s Infosys Technologies Ltd selected as the concessionairefor designing, developing, maintaining and expanding the eBiz solution & services for 10 years. The eBiz Platform consist of 2 components namely:

• eBiz Portal which is the front-end that acts as the single point of entry and,

• The eBiz shared services infrastructure such as payment gateway, business vault to store documents, SMS gateway etc.

That enables development of application and provisioning of G2B services.

For the pilot phase, 50 (26 central and 24 state) serviceshavebeenidentifiedforimplementationthrough eBiz. The project has selected ten pilot states –namely Delhi, Andhra Pradesh, Haryana, Maharashtra, Tamil Nadu, Punjab, Rajasthan, West Bengal, Odisha and Uttar Pradesh. During the ExpansionPhase,theprojectwillofferalltheG2Bservices throughout the business life cycle, which potentially runs into over two hundred.

TheeBizportalwithLicense&PermitInformation

Wizard was launched on 28th January, 2013 during the Partnership Summit in Agra. During theperiodunderreportsignificantprogresshasbeen made in the implementation of the project. TheeBizplatformavailablewithLicense&PermitWizard, Payment gateway with Central Bank of India, Bank of Baroda, Bank of India, Canara Bank and Punjab National Bank and ePAO solution for centralized booking and reconciliation of all Central Government receipts &payments along with Twenty two Central Government services, fourteen services of Andhra Pradesh Government, Fourteen Services for Govt. of Odisha and two services of Govt. of NCT of Delhi. The eBiz portal is alsoofferingthreejoined-up(L3)servicesnamedINC7 with 5 services, INC29 with 7 services and 5 servicesunderLabouractofMinistryofLabour&employment. Two added functionalities are also launched with eBiz portal named as Validation of PAN Data w.e.f. 17th August, 2015 and Payment through Credit & Debit cards w.e.f 15th June, 2015. The portal can be accessed through www.ebiz.gov.in.

The eBiz portal is currently offering 22 CentralGovernment services, 14 State government services of Andhra Pradesh, Odisha and 2 State government services of Govt. of NCT of Delhi. Further, 3 joined-up services are also being offeredintheformofCompositeApplicationForm(Central CAF). The Central CAF covers the forms INC7, INC29andfiveregistrationservicesunderLabour Act. The details of the aforementionedservices are enclosed at Annexure-A. The remaining 5 Central Government services are

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expectedtobereadyforlaunchbyApril2017.Listof these services is enclosed at Annexure-B.

eBiz has also been migrated to Open Source System (OSS) platform with the formal launch on 16.01.2017. The new platform currently provides two services of Department of Industrial policy andPromotion(DIPP)viz.,IndustrialLicenseandIndustrial Entrepreneurs’ Memorandum (IEM). The other aforementioned services are being migrated to the new platform as of writing this report.

Implementation of State Services:

With a view to get the remaining 8 Pilot States on eBiz portal, DIPP has envisaged the development of a State level Composite Application Form (State CAF) catering to 14 state services. The State CAF has been demonstrated to these Pilot States on 20th October 2016. Delhi shall be the firstamongstthesePilotStatestoutilizetheStateCAF. The list of 14 services catered to in the State CAF as Annexure-C.

Annexure -A

List of 22 Central Government Services (Launched)S. No. Ministry/ Dept. Name Service Name Launch Date

1. Employee’s State Insurance Corporation

Employer Registration 12.12.2014

2. Department of Industrial Policy and Promotion

IndustrialLicense 20.01.2014

3. Department of Industrial Policy and Promotion

Industrial Entrepreneur Memorandum 20.01.2014

4. MinistryofCorporateAffairs Name Availability 19.02.20155. MinistryofCorporateAffairs DirectorIdentificationNumber 19.02.2015

6. MinistryofCorporateAffairs CertificateofIncorporation 19.02.20157. MinistryofCorporateAffairs Commencement of Business 1 19.02.20158. Central Board of Direct Taxes Issue of Permanent Account Number (PAN) 19.02.20159. Central Board of Direct Taxes Issue of Tax Deduction Account Number (TAN) 19.02.201510. Reserve Bank of India Advanced Foreign Remittance (AFR) 19.02.201511. Reserve Bank of India Foreign Collaboration-General Permission Route (FC-GPR) 19.02.201512. Employees’ Provident Fund

Organization Employer Registration 19.02.2015

13. Petroleum and Explosives Safety Organization

IssueofExplosiveLicense 19.02.2015

14. Directorate General of Foreign Trade ImporterExporterCodeLicense 19.02.2015

15. Reserve Bank of India Foreign Currency- Transfer of Shares2 24.08.2015

16. Department of Heavy Industry (DHI)

Issueofcustomdutyconcessioncertificatetoentrepreneurs under project import scheme

1.10.2015

17. Central Board of Direct Taxes (CBDT)

Changes or correction in PAN data 1.10.2015

18. MinistryofLabourandEmployment(MoL&E)

RegistrationundertheContractLabourAct,1970 28.10.2015

1 Withdrawn from eBiz Portal w.e.f. 15.07.2015 pursuant to the company’s amendment act 2015.2 FC-TRS is additional service integrated and launched with eBiz portal w.e.f. 24.08.2015 on request of RBI.

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Registration under the Building and other construction workers Act, 1996

28.10.2015


Registration under the Inter-State Migrant Workmen Act, 1979

28.10.2015

21. Ministry of Environment, Forests and Climate Change (MoEF & CC)

Terms Of Reference ( TOR) 6.10.2016

22. Ministry of Environment, Forests and Climate Change (MoEF & CC)

Application for Environment Clearance 6.10.2016

List of 14 State services (Launched) in Andhra Pradesh, Odisha and NCT of Delhi:Andhra Pradesh (14 Services) – Launched on 18.09.2015S.No. Department Name Service Name

1 AP-Ground Water Department Permission to draw Ground Water2 AP-Department of Factories Approvals of plans from Factories Department

3 AP-Department of Factories FactoriesLicense4 AP-Department of Factories Annual Filing under Factories Act

5 AP-Fire Department NOC from Fire Services Department6 AP-Department of Industries Industrial Incentives(Power)7 AP-Department of Industries Industrial Incentives (VAT)8 AP-Department of Industries Allotment of Scarce raw materials9 AP-Department of Industries MSME Registration10 AP-Department of Industries NOC Acknowledgement from GM, DIC for MSME

11 AP-Department of Drug Controller LicenseformanufacturingBulkDrugsandFormulations12 AP - Department of Town & Country Planning Permission from TCP for Site and Building

13 AP-Commercial Taxes Department VAT Registration14 AP-Commercial Taxes Department CST Registration

Delhi (2 Services) – Launched on 1.10.2015S.No. Department Name Service Name1. Factories Department Factory Filling2. BYPL(BSESYamunaPowerLimited) New Power Connection

Odisha (14 Services) - Launched on 14.02.2016

S.No. Departme Department Name Nam Service Name

1 Industries Department, Odisha ProjectEvaluationcumAllotmentofLand

2 Directorate of Factories & Boilers, Odisha

Registration under Boilers Act

3 LabourDirectorate,Odisha Registration under Shops and Establishment Act

4 LabourDirectorate,Odisha RegistrationofEstablishmentEmployingContractLabour

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5 Water Resources Department, Odisha Permission to draw Water for Industries-Ground Water & Surface Water


Approvals of Plan under Factories Act,1948

7 Department of Energy, Odisha New Power Connection

8 Housing and Urban Development De-partment, Odisha

Permission for Site and Building


FactoriesLicenseunderFactoriesAct,1948

10 Housing and Urban Development De-partment, Odisha

CompletioncumOccupancyCertificate

11 Commercial Taxes Organisation, Odisha VAT Registration

12 Commercial Taxes Organisation, Odisha CST Registration13. Odisha State Pollution Control Board Consent to Establish

14. Odisha State Pollution Control Board Consent to Operate

List of joined-up(L3) servicesS.No. Service Name Department /Ministry Launch date1.3 INC7 MinistryofCorporateAffairs,CentralBoardofDirect

Taxes, Employee’s State Insurance Corporation and Employees’ Provident Fund Organization

15.06.2015

2.3 INC29 MinistryofCorporateAffairs,CentralBoardofDirectTaxes, Employee’s State Insurance Corporation and Employees’ Provident Fund Organization

12.10.2015

3. 5 registration services under LabourAct

MinistryofLaborandEmployment 28.10.2015

Annexure B – List of remaining Central Government Services

S. No. Ministry/ Dept. Name Service Name Expected date for readiness for launch

1. Ministry of Corporate Affairs

NameReservationofLimitedLiabilityPartnership February 2017

2. Ministry of Corporate Affairs

IncorporationofLimitedLiabilityPartnership February 2017

3. Ministry of Finance Approval from Foreign Investment Promotion Board

March 2017

4. Ministry of Environment, Forest and Climate Change

Approval for diversion of forest land for non-forest purposes under section -2 of the Forest Act, 1980

March 2017

5. Director General of Foreign Trade

Issue of Import & Export License for RestrictedGoods

April 2017

3 Joined-upservicesofMinistryofCorporateAffairs(MCA)viz.,INC29andINC7hasbeensuspendedw.e.f28.03.2016becauseof upgradation of MCA system, thereafter, integration testing with eBiz system and MCA system.

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Annexure –C: List of State Services available in State CAF :

S. No. Name of Service1. LicenseunderSection18ofDrugs&CosmeticsAct2. NoC from Fire Services Department3. Approvals of plan under Factories Act 19484. AllotmentofLand/ShedinIndustrialEstate/Area5. Registration under Shops and Establishment Act6. Permission for Site and Building7. Consent to establish under Water Act, 1974 and the Air Act, 19818. Consent to operate under Water Act, 1974 and the Air Act, 19819. New Power Connection including permission to charge the line10. Permission to draw water outside industrial area11. Completioncumoccupancycertificate12. Permission to draw water13. Registration under Boilers Act14. FactoriesLicenseunderFactoriesAct1948


Ease of doing business is a fundamental priority of our Government’s Make in India campaign. Unless we can make it easier for business to invest, operate and stay in India, we will not be able to create the jobs that India’s young population requires. The ease of doing business index is meant tomeasure regulations directly affectingbusinesses and a nation's ranking is based on the average of 10 indicators.

The Central Government along with State Governments and UT administrations has undertaken a strategic and comprehensive reform package over the last two years which has greatly contributedtostrengtheninginvestorconfidence.

In Doing Business Report (DBR) 2016, India had jumped 12 places, however, in the 2017 report the ranking showed only a minor improvement despitetheeffortsandreformsundertakenbytheCentre and the States. The World Bank recognized reforms under four of the 10 indicators. The “distance to frontier” (DTF) score measurement used by the World Bank to ascertain the distance between each economy and the best performance in that category has improved for seven of the 10 indicators.

Some of the improvements mentioned in the DBR 2017 are in the parameters ‘getting electricity’ in Delhi, ‘paying taxes’ through the electronic system for employees State insurance contributions, ‘trading across borders’ by launching of the ICEGATEportalandsimplificationofborderanddocumented procedures and ‘enforcing contracts’ through establishment of dedicated divisions for resolving commercial cases. The report has

especially lauded India for achieving significantreduction in time and cost to provide electricity connections to businesses in Delhi.

Some of the reforms undertaken by the country towards easing the business environment in the country are listed below:-

Reforms undertaken on various Parameters of Doing Business

1. Starting a Business

• The Companies (Amendment) Act, 2015 has eliminated the need of a common company seal for incorporation.

• Registration with ESIC and EPFO has been made real-time by eliminating all physical touch-points.

• The requirement of opening a bank account has been removed as a mandatory condition for registration with ESIC and EPFO.

• "Shram Suvidha" Portal has been launched to issue Unique Labour IdentificationNumber (LIN), submission of commonelectronic returns under 16 Labour Actsand facilitate risk based inspections.

• Maharashtra has combined the process of registration with VAT and Profession Tax. The registration is now being granted within 24 hours in Mumbai.

• SPICe form has been notified as soleapplication form for incorporation of companies (w.e.f., from 01.01.2017). The

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fee for filing the incorporation form hasbeen reduced from Rs.2000/- to Rs.500.

• No Environment clearance is required for 36 white industries.

• Mine prospecting projects have been exempted from the requirement of compensatory afforestation and ForestRights Act (FRA) certificate for grant offorest clearance.

• No site inspection is required for mine prospecting projects on forestland for less than 100 ha. for construction of new roads/drilling of bore hole/ sample collection pits.

• Validity of Environment Clearance has been increased from 5 years to 7 years.

• Online submission of applications for environment/forest/wildlife clearances has been put in place for transparent and expeditious decision-making.

• District Environment Impact Assessment authority has been constituted to grant EC for mining of minor minerals for 5 ha. of individual lease and 25 ha. in a cluster.

• Regional empowered committees at sub national level have been delegated higher powers to dispose of proposals for Forest Clearance

a) Involving diversion of 5 to 40 hectares of forest land and

b) All proposals involving diversion of forestland for linear projects irrespective of area of forest land involved.

• The competent authorities in the stategovernment have been delegated powers to issue permission for tree felling and commencement of work for a period of one year of linear projects without

waitingforfinalapprovalundertheForestConservation Act.

2. Construction Permits

• Municipal Corporation of Greater Mumbai (MCGM) has completed the process of single window approval by integrating with internal Departments as well as external Departments like AAI and NMA through a common application form.

• In Mumbai, the building completion certificate and occupancy certificate cannow be processed simultaneously through single-window approval system.

• Site inspection for construction permits has been minimized by way of self- certification and introducing thirdparty certification. During construction,submission of video clips by architects has been introduced in online Auto DCR system.

• AutoCAD based software to scrutinize building plans has been implemented.

• Both Municipal Corporation of Delhi (MCD) and MCGM has introduced digital signing of building permit application, as well as maps, thereby eliminating need of physical submission of documents. The manual application for grant of construction permits has been discontinued.

• MCGM and MCD Single Window Application System have a provision for online transfer of application and receipt of NOC.

• MCD has completed the process of single window approval by integrating with internal departments as well as external Departments like DMRC, Delhi Fire Services, DUAC, AAI and NMA through a common application form. NOC from LabourDepartmentofDelhiGovernment

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is not required if no manufacturing activity is being undertaken in the building.

• MCD has eliminated the need for applicant to visit the Property Tax Department to collect receipt of tax payment.

• Delhi Development Authority (DDA) has notifiedtheUnifiedBuildingBye-laws.Theunifiedbuildingbyelawshaveprovisionofdeemed approval of sanctioning building plans within 30 days.

• Colour coded maps have been developed by AAI, DUAC and DMRC to enable applicants to determine whether NOC is required for the land for which permission is applied for.

• 88% of building plans have been sanctioned online by Municipal Corporation of Delhi.

• Infrastructure charges have been abolished by Delhi Jal Board Authority for commercial/ industrial connections. The development Charges for commercial and industrial water connections upto 50 sq. m is Rs. 45000 and above 50 sq. m is Rs. 1 lakh.

3. Getting Electricity

• Online application for connections above 100KVA mandatory in Maharashtra and Delhi.

• Delhi Electricity Regulatory Commission (DERC) has rationalized LT and HT tariffthereby allowing LT connections upto150KVA.

• In Delhi and Mumbai, for getting a new electricity connection the number of procedures has been reduced to 3. Further, DERC has revised the application format of Delhi Electric Supply Code and Performance Standards Regulations, 2007 for faster release of electricity connection.

The distribution licensees have been directed to process applications in the revised format along with the declaration form.

Following are the two documents required for getting electricity connection:

1. Identity proof

2. Proof of ownership/ occupancy of premises.

• NOC/Consent to Establish is not required for getting industrial electricity connection for setting up new industries and projects.

• Amendments in Central Regulatory Authority regulation has been done to allow installation of transformers up to 500 KVA on double pole structure.

• Amendments in Central Regulatory Authority notification to waive offelectrical approval for 11 KV installations carried out by DISCOMs and allowing self-certificationbyDISCOMsengineers.

• Supply Code Regulation and Standard of Performance (SOP) regulations have been modifiedbyDERCandMERCtocompletethe process within 15 days.

• Now the industrial/ commercial connections are being granted within 15 days in Delhi and Mumbai.

• Tata power has improved its System Average Interruption Duration Index (SAIDI) by 2.42 and it’s System Average Interruption Frequency Index (SAIFI) by 2.41.

• Brihanmumbai Electricity Supply and Transport (BEST) has improved its System Average Interruption Duration Index (SAIDI) by 1.72 and it’s System Average Interruption Frequency Index (SAIFI) by 3.26.

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4. Trading Across Borders

• Reforms affecting import of automobileparts from Korea: In JNPT there are 1637 import declarations filed during theperiod from 1st June 2015 to 31st May 2016 (the period of World Bank case study). The average time taken for giving cargo clearance by Customs authorities is 19.59 hours, wherever importer has paid appropriate Customs duty. Further, it is important to note that more than 80% of automobile shipments coming from Korea are treated as risk-free and Customs gives clearance within 6 hours, in cases where importer has paid appropriate Customs duty.

• On April 1, 2016, the Central Board of Excise and Customs of India launched the Customs Electronic Commerce Interchange Gateway (ICEGATE) portal, which allows for e-filing of integratedcustoms declaration, bill of entry and the shipping bill. ICEGATE also facilitates data and communication exchanges between applicants and customs.

• Central Board of Excise and Customs (CBEC) has implemented Single Window Interface for Facilitating Trade (SWIFT) (online single window for clearance of goods) on the ICEGATE portal by integrating 6 other Departments viz. FSSAI, Animal Quarantine, Plant Quarantine, Drug Controller, Wildlife Control Bureau and Textile Committee for imports. Also, online message exchange system under single window between Customs’ ICEGATE and Plant Quarantine Information System (PQIS) has been implemented for import clearances of agricultural commodities.

• Customs’ risk management system has been extended to other regulatory agencies to ensure risk- based inspection.

168 low phytosanitary risk agricultural commodities listed under schedule VII of thePQorder, 2003havebeen identifiedfor 5% random inspection. Mandatory testing of imports from countries where azo dye has not been banned has been reduced to 25%.

• The limit on the number of consignments released under direct delivery has been removed facilitating prompt delivery of goods.

• Terminal handling receipts have been eliminated from Jawaharlal Nehru Port Container Terminal, Gateway Terminals India and Nhava Sheva International Container Terminal by web based e-form 13.

• Filing of import and export declarations and manifests has been made online with digital signature. Importers, exporters using services of Customs Brokers, shippinglinesandairlinescanfilecustomsdocuments under digital signature mandatorily w.e.f. 01/01/2016.

• Electronic messaging system between shipping and custodians’ i.e. electronic delivery order instead of manual, paper based delivery order was introduced vide circular dated 14/10/2016.

• Customs’ Clearance Facilitation Committee has been set up at every major customs seaport and airport at Central level.

• The system of physical control and locking of public and private warehouses by Customs has been dispensed with and replaced by record based controls.

• Customs 24x7 clearances is now available on 19 sea ports and 17 Air Cargo ports.

• Reduction in number of mandatory documents required for exports and

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imports to 3 each for export and import. Earlier 7 documents were required for exports and 10 for imports. Implemented videnotificationdated12.03.2015.

• The port has reduced the "Gate in" time period for export containers from 5 days to 4 days which will further reduce export dwell time by another 24hrs.

• CBEC relaxed KYC norms with regard to consignments imported by individual vide circular dated 26.04.2016.

• Facility of deferred payment for select category of importers and exporters has been introduced. This provision enables release of cargo without payment of duty, which shall enable speedier clearance and improved liquidity in hands of the businesses.

5. Resolving Insolvency

• Constitution of National Company LawTribunal and National Company Appellate LawTribunalhasbeenoperationalized.

• Insolvency and Bankruptcy Board of India has notified liquidation norms on 15thDecember, 2016 under Insolvency and Bankruptcy Code.

• The Corporate Insolvency Resolution provisions have been notified on 30thNovember, 2016 to implement the Insolvency and Bankruptcy Code.

• Regulations for Insolvency Professionals have been notified on 23rd November,2016 for implementing the Insolvency and Bankruptcy Code.

• Regulations for Insolvency Professionals Agency have been notified on 21stNovember, 2016.

6. Enforcing Contracts

• On 7th January 2016, the Maharashtra High

Court established Commercial Division benches and Commercial Appellate Division benches under the High Court.

• Commercial divisions and appellate divisions in Delhi High Court have been established.

• The Arbitration and Conciliation Act has been amended to reduce the time taken in arbitration proceedings and grounds on which an award may be challenged.

• National Judicial Data Grid (NJDG) was opened to general public on 19th September, 2015. NJDG is a national data warehouse for case data including case registration, cause list, case status and orders/judgments of courts across the countrytillDistrictLevelCourts.

7. Registering Property

• Mumbai: Integration of Sub Registrars' officeswiththeLandRecordsDepartmenthas been completed. Registration data is being shared with the Land RecordsDepartment as part of the LR-SROlinkageundertheNationalLandRecordsModernization Program. This has been done for e-mutation in rural areas, and is presently being implemented across 358 tehsils comprising 427 Sub Registrar Officesinthestate.

• In Maharashtra, all property tax records have been digitized.

• In Mumbai, citizens can review the property details using e-search facility.

• In Mumbai, appointments to SRO have been made online through e-StepIn books slot.

• Grievances related to immovable property registration in Maharashtra has been made online.

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• Further, a project for “e-DISNIC software” (Revenue Courts) for making the land dispute information available online has been rolled out.

• Delhi: Out of 356 villages, 52 villages have their textual data fully digitized and online digitally signed RORs are being issued. An additional 63 villages will have their RORs issued online soon. Digitization of cadastral maps has been done. 28 maps have been validated. The integration of textual and spatial data has started.

• InDelhi,allsub-registrarofficeshavebeendigitized and sub-registrars' records have been integrated with the Land RecordsDepartment.

• In Delhi, model sale deed format for property registration is available on the website of Department of Revenue.

• In Delhi, an electronic database for recording boundaries, checking points and providing cadastral information has been completed.

• In Delhi, linking of land ownership registry and mapping agency database on a pilot basis have been completed.

8. Getting Credit

• SARFAESI (Central Registry) Rules, 2011 has been amended. The amendment modifiesrule4toincludeadditionaltypesof charges, including: "security interest in immovable property by mortgage other than deposit of title deeds"; "security interest in hypothecation of plant and machinery, stocks, debt including book debt or receivables"; "security interest in intangible assets, being know-how, patent, copyright, trademark or any other business or commercial right of similar nature"; and "security interest in any under construction residential or

commercial building or a part thereof". This amendment allows (Central Registry of Securitization Asset Reconstruction and Security Interest) CERSAI to register these additional charges.

9. Paying Taxes

• Payment of Employee State Insurance Corporation and Employee Provident Fund Organization contributions can now be made online through 58 banks, debit cards or credit cards.

• ESIC and EPFO returns have also been unified and are available on ShramSuvidha Portal.

• Sales tax department of Maharashtra has eliminated physical touch point for filingoftaxreturns,taxpaymentandtaxcompliances by introducing online return filingandonlinepayment throughGRAS(Government Receipt Accounting System) for VAT, CST, Profession tax, Luxury Taxand Entry Tax.

• ElectronicVerificationCode(EVC)hasbeenintroduced as one of the possible mode for validation of tax returns. Earlier, some categories of taxpayers were required to submit Form ITR-V manually through post for validation of tax returns. Introduction of EVC has made the exercise of filingtax return electronic. It has also reduced the time period for filing the tax returnconsiderably. During the year, income-tax returns were also made much simpler with culling of many irrelevant columns for all categories of taxpayers. Further, the Tax Audit Report which is required to befiledonlinewasalsostandardizedandharmonized with various provisions of the Companies Act.

• Anoptionfore-filingisavailableforfilingor revising Corporate Tax returns with CBDT.

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Assessment of State Implementation of Business Reforms 2016

The Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry released the results of the Assessment of Implementation of Business Reforms 2015-16 by States on 31.10.2016. The Assessment studies the extent to which states have implemented DIPP’s 340-point Business Reform Action Plan (BRAP) for States/UTs, covering the period July 1, 2015 to June 30, 2016. The BRAP includes recommendations for reforms on 58 regulatory processes, policies, practices or procedures spread across 10 reform areas spanning the lifecycle of a typical business.

Data for this assessment was collected from State Governments on the BRAP portal. The portal, amongthefirstofitskindglobally,allowedStateGovernments to submit evidence of implemented reforms. At least 32 State and UT Governments submitted evidence of implementation of 7,124 reforms. These submissions were reviewed by the World Bank team and validated by DIPP’s team to study whether they met the objectives of the BRAP. The portal allowed for collaborative dialogue between DIPP and the State Governments in finalizingtheevidencesubmitted.

The results of the assessment demonstrate that States have increasingly risen to address the challenge of making it easier to do business. The national implementation average stands at 48.93%, significantly higher than last year’snational average of 32%. This demonstrates the great progress made by States this year.

ThefinalrankoftheStatesasofOctober30,2016is shown in the table below:

2016 Rank

State Score (%)

2015 Rank

1. ANDHRA PRADESH 98.78 2

1. TELANGANA 98.78 13

3. GUJARAT 98.21 1

2016 Rank

State Score (%)

2015 Rank

4. CHHATTISGARH 97.32 4

5. MADHYA PRADESH 97.01 5

6 HARYANA 96.95 14

7. JHARKHAND 96.57 3

8. RAJASTHAN 96.43 6

9. UTTARAKHAND 96.13 23

10. MAHARASHTRA 92.86 8

11. ODISHA 92.73 7

12. PUNJAB 91.07 16

13. KARNATAKA 88.39 9

14. UTTAR PRADESH 84.52 10

15. WESTBENGAL 84.23 11

16. BIHAR 75.82 21

17. HIMACHALPRADESH 65.48 17

18. TAMILNADU 62.80 12

19. DELHI 47.62 15

20. KERALA 26.97 18

21. GOA 18.15 19

22. TRIPURA 16.67 26

23. DAMAN & DIU 14.58 -

24. ASSAM 14.29 22

25. DADRA & NAGAR HAVELI

1.79 -

26. PUDUCHERRY 1.49 20

26. NAGALAND 1.49 31

28. MANIPUR 1.19 -

29. MIZORAM 0.89 28

30. SIKKIM 0.60 27

31. ARUNACHALPRADESH 0.30 32

31. JAMMU & KASHMIR 0.30 29

31. CHANDIGARH 0.30 24

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2015 Rank

31. MEGHALAYA 0.30 30

31. ANDAMAN & NICOBAR ISLANDS

0.30 25

31. LAKSHADWEEP 0.30 -

Reform Highlights

Single Window Systems:

Various States have created a dedicated body as a one-stop online system for State level regulatory and fiscal incentive approvals. It has provisionsfor filing applications, payment, status tracking,online scrutiny and application approvals. 24 States have operational single window system.

Construction Permits:

Many States allowed online applications and uploading building plans for automated construction permit approval. Several States developed AutoCAD-based systems that automatically scan building plans and monitor compliance with existing building bye-laws and codes.

Environment and labour reforms:

Advanced automated solutions implemented to deal with environmental and pollution-related applications. These solutions provide hassle-free, 24X7 e-access for businesses to apply online, trackapplications,filereturnsandstatementsandget online permissions under various Acts and regulations.

Inspection Reforms:

A number of inspection reforms regarding labour, tax and environmental compliances introduced to make compliance to inspection requirements user-friendly for businesses. States also published comprehensive procedures and checklists for inspections and have implemented online systems for allocation of inspectors.

Commercial disputes and paper-less courts:

Significantprogressmade in theareaof judicialreforms, particularly due to the passage of Commercial Courts, Commercial Divisions and Commercial Appellate Divisions Act. Addressing the concern of time and costs associated with various legal processes, various States’ District Courts have made provisions for making online payments,e-filingande-summons.

For next year’s assessment, a brain storming session was organized by DIPP on 16th November 2016 with all the States/UTs to take their feedbacks and suggestions. The suggestions received from States including assigning weightages to reform measures, law and order situation, availability of key infrastructure, skilled manpower and industrial peace will be duly considered in the methodology for next year’s assessment. The development of next year’s reform is already underway.

Make in India Initiative

The Make in India initiative was launched by Prime Minister of India on 25th September, 2014 to project India as a preferred investment destination and a global manufacturing hub.

The major objective behind the initiative is to renew focus on job creation, skill development, and fostering innovation and high quality standards in the manufacturing sector.

The Make in India initiative focuses on four key areas to promote manufacturing and entrepreneurship.

• Policy Initiatives & New Processes: A number of initiatives to improve “ease of doing business” and to promote entrepreneurship have been taken under the aegis of “Make in India” with the objective of de-licensing and de-regulating the industry across the entire business life cycle.

• Robust Infrastructure: Availability of modern and facilitating infrastructure is a key enabler for the growth of industry. Government has announced various programs to strengthen the existing infrastructureandtodevelopgreen-fieldsmart cities and industrial corridors.

• Focus Sectors: Under “Make in India”, 25 focus sectors have been identified inmanufacturing, services and infrastructure, and detailed sector information is being shared through an interactive web portal. FDI has been opened up in reserved

sectors like defence production, media, construction and railway infrastructure in big way which allow for greater private sector participation.

• New Mind-set/Approach: “Make in India” is bringing a paradigm shift in the way industries perceive government, the approach of the government is now of a facilitator and not a regulator. Under this initiative various organizations like union ministries, state governments, private organizations, regulatory bodies etc. are collaborating for the economic development of the country.

The above mentioned focus in key areas is resulting in a road map for the single largest manufacturing initiative undertaken by a nation in recent history. This is also demonstrating the transformational power of public-private partnership.

After the initiation of the programme, India is emerging as the top destination globally for foreign direct investment (FDI) surpassing top global economies. India has been ranked as the most preferred destination for investment and among the world’s fastest growing economies by several international agencies.

The following activities were undertaken through the scheme for investment promotion for taking forward the objectives of Make in India initiatives.

1. Hosting of interactive web portal (http://makeinindia.com):

i. Development of an interactive web portal

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with detailed information regarding the investmentopportunitiesacrossidentifiedfocus sectors.

ii. Highlight central and state government initiatives for ease of doing business.

iii. Redirect potential investors to Investor Facilitation Cell, which in turn can provide primary support for all investment related queries.

2. Make in India Mittelstand:

Make in India Mittlestand program was launched asacountryspecificprogramtoattractGermanMittelstand Companies and provide various services such as financial, legal, regulatory etc.along with other handholding and liaising services to ensure smooth investments in India.

The progress of the same has been given below:

• Indian embassy in Germany with the support of Government of India implemented a strategic market entry support program, first of its kind, toassist German Mittlestand companies in entering Indian market

• MIIM is a highly innovative, integrated platform for market entry services which corresponds to the complex requirements of first time investors. It is a one stopsource for companies requiring market entry support services with the additional benefitsofspecialworkshops,networking,information exchange etc.

• A total of 134 German companies were approached under this program of which 56 companies expressed their interest in joining the program.Out of the final 43companies that eventually joined the program, 26 companies concretized their plans to invest in India.

• After successful execution of the said program, it was decided to replicate the same in other focus countries

• 30 countries were short-listed and support has been extended to Indian embassies in these countries for preparing publicity material for carrying out promotion of ‘Make in India’ initiative for year 2016-17.

3. Market Entry Support Program (MESP):

MESP (Market Entry Support Program) is a countryspecific investmentpromotionprogram,taking into consideration the sensitivities and requirements of the local industry. This is based on the learnings and success of the Make in India Mittelst and Program.

As part of executing MESP across nations, an analytical exercise called Country-Sector analysis was carried out. As an outcome of the analysis 13 nations were selected for MESP.

Indian Missions in all the 12 nations selected have been communicated of the same, and the next steps involve the Missions getting back to DIPP with the requirements of the local industry to enable them for their investments in India.

4. Domestic and International Outreach Programs (Events attended till date):

DIPP in association with industry representative bodies like CII and FICCI participated in following key global events for promotion of “Make in India” and to attract investments to India:

i. Domestic Events

a. India Chem in Bombay Exhibition Centre, Mumbai during 1st to 3rd September, 2016

b. North East Connectivity Summit in Pragna Bhawan, Agartala during 21st to 23rd September, 2016

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c. BRICS 2016 in New Delhi during 11th to 13th October, 2016

d. Make in India Conference (Invest Madhya Pradesh – Global Investors Summit) in Brilliant Convention Center, Indore during 22nd to 23rd October, 2016

e. ‘Make in India’ Conference in Bhubaneswar during 1st to 2nd December, 2016

ii. International Event

a. China International Fair for Investment and Trade (CIFIT) in Xiamen, China during 8th to 11th September, 2016

b. Automechanika in Messe Frankfurt, Germany during 13th to 17th September, 2016

c. TAITRONICS 2016 in Taipei, Taiwan during 6th to 9th October, 2016

d. Smart City Expo World Congress 2016 in Barcelona, Spain during 15th to 17th November 2016

e. The Big 5 in Dubai during 21st to 24th November 2016

5. Promotion of “Make in India” initiative in international and domestic markets through online and print media.

Promotion campaign was prepared and implemented by Department of Industrial Policy and Promotion in order to showcase the “Make in India” initiative amongst global manufacturers and investors and alleviate concerns regarding red tape, consistency of policies, lack of skills and infrastructure.

Development Schemes

One of the principal objectives of the Government of India’s Industrial Policy is to promote balanced industrial development throughout the country. For stimulating industrial development of hilly States, the Union Government has been supplementingtheeffortsofStateGovernmentsthrough various policies/schemes/packages of incentives. Another focus area of the Government of India’s Industrial Policy is to develop quality industrial infrastructure through various schemes for enhancing international competiveness of the domestic industries, especially in the functional clusters/locations which have greater potential to become globally competitive. Some of such policies/schemes/packages of incentives for development of industries and which are being currently administered by this Department are given in this Chapter.

Transport Subsidy Scheme

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 so that they could with stand competition with other similar industries, which are geographically located in better areas.

Applicability

To all industrial units (barring plantations, refineries and power generating units bothin public and private sectors irrespective of their size).

Coverage

All the eight States of the North East, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Andaman&NicobarAdministration,LakshadweepAdministration and Darjeeling District of West Bengal.

Quantum of Subsidy

Subsidy ranging between 50% to 90% of the transport costfortransportationofrawmaterialandfinishedgoods to and fro from the location of the unit and the designated rail-head. For North East States, J&K and UTs, the subsidy is 90%. For H.P., Uttarakhand and Darjeeling district of West Bengal, the subsidy is 75%. However, for movement of goods within NER, the subsidy is 50%.

Period of eligibility

A unit is eligible for subsidy for a maximum period offiveyearsfromthedateofcommencementofcommercial production.

Nodal Agency

The disbursement of subsidy to the eligible industrial units in the States is made through the nodal agencies appointed for the purpose. These are:

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

(ii) Jammu & Kashmir Development Finance Corporation limited (JKDFC) for Jammu & Kashmir;

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(iii) Himachal Pradesh State Industrial Development Corporation (HPSIDC) for Himachal Pradesh;

(iv) State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd.(SIIDCUL)forUttarakhand.

The disbursement of subsidy to the industrial units in the Union Territories is made through the UTs Administrations.

Validity of the Scheme

The Transport Subsidy Scheme ended on 21.01.2013andw.e.f.22.01.2013itwasmodifiedand notified as Freight Subsidy Scheme (FSS) –2013, with the approval of Cabinet Committee on EconomicAffairs(CCEA).Unitswhichcommencedproduction on or after 22.01.2013 or a unit which has not claimed subsidy under TSS, 1971 before the date of publication of FSS in the officialGazette would be covered under FSS – 2013. The salient features of this Scheme were as follows:

(i) Definition of ‘manufacturing activity’adopted from the Union Budget 2009-10;

(ii) Subsidy on transportation of fly ash

disallowed;

(iii) Sunset clause introduced so that the Scheme terminates after 5 years from its dateofnotification;

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

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

Funds released under the scheme

Under TSS, 1971 / FSS, 2013, since inception, an amount of Rs. 3496.13 crore (approx.) has been released to the States/UTs, including Rs. 220 crore released during FY 2013-14, Rs. 124.49 crore released during FY 2014-15, Rs. 60.00 crore released during FY 2015-16. In the current FY 2016-17, Rs. 69.99 crore has been released (up to 31.12.2016). Year-wise funds released under the Scheme have been depicted through a Bar-Chart given below:

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Major Policy Initiatives during 2016

With the approval of the CCEA, Freight Subsidy Scheme, 2013 has been discontinued, with effectfrom22.11.2016.However, industrialunitsregistered under the scheme prior to the date of issueofDIPP’snotificationdated22.11.2016willbeeligibleforthebenefitsofthescheme.

Government of India has taken a decision to disburse subsidy under NEIIPP, 2007/TSS, 1971/ FSS, 2013 to eligible industrial units through Direct BenefitTransfer(DBT)mechanismtobecreditedintothebankaccountofthebeneficiaryIndustrialunits. In view of revision of the disbursement mechanism of subsidy, all industrial units would be required to register themselves on the e-portal developed by NIC (http://ccaind.nic.in/dippdbt/mis/default).

North East Industrial and Investment Promotion Policy (NEIIPP), 2007

With a view to give a further boost to industrialization in the North Eastern Region, the erstwhile North East Industrial Policy (NEIP), 1997 was revised and a new policy, namely North East Industrial & Investment Promotion Policy (NEIIPP) 2007,wasnotifiedw.e.f.1.4.2007whichwillremainin forceupto31.03.2017.BenefitsunderNEIIPP,2007havealsobeenextended,forthefirsttime,to the select Service Sector units, Bio-technology units and Power Generating units (upto 10 MW), besides industries in the manufacturing Sector. This policy replaces the erstwhile NEIP, 1997.

Applicability

To all industrial units (barring the units producing tobacco and manufactured tobacco substitutes, pan masala and plastic carry bags of lessthan20microns,refineriesandunitsengagedin peripheral activities like preservation during storage, cleaning operations, packing, re- packing, labeling or re-labeling, sorting, alteration of retail sale price etc.).

Coverage

Entire North East Region comprising States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura and Sikkim.

Schemes under NEIIPP, 2007

• Central Capital Investment Subsidy Scheme, 2007:-The Scheme provides for subsidy @ 30% of the investment in plant and machinery or additional investment in Plant and Machinery by way of substantial expansion to all new units as well as existing units which go in for substantial expansion. The scheme has been revised w.e.f. 22.11.2016 and the subsidy is now limited to Rs. 5.00 crore per industrial unit operating in manufacturing sector and Rs. 3.00 crore per industrial unit operating in services sector.

• Central Interest Subsidy Scheme:- The Scheme provides for interest subsidy @ 3% on the working capital loan availed by an eligible unit from scheduled banks or Central/State financial institutions fora maximum period of 10 years from the date of commencement of production. The scheme has been revised w.e.f. 22.11.2016 and now the interest subsidy will be available only on term loans of 5-10 years maturity taken to financecapital expenditure on setting up of industrial units or for capital expansion on substantial upgradation/ modernization. The interest subsidy will be limited to term loans up to Rs. 10.00 crore to subsidize cost of borrowing above Prime LendingRate(PLR)totheextentofupto3%perannum. so as to ensure that post-subsidy interest rate does not fall below the PLR of the concerned bank or financial institution.

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

• 100% income tax exemption; and

• Excise duty exemption based on value addition norms.

Nodal Agency

North Eastern Development Finance Corporation (NEDFi), Guwahati was the nodal agency for disbursal of subsidies under various subsidy schemes of NEIIPP, 2007. It has now been decided that henceforth the subsidies payable to all the industrial units will be disbursed through Direct BenefitTransfer(DBT)mechanismtobecredited

intothebankaccountofthebeneficiaryIndustrialunits. In view of revision of the disbursement mechanism of subsidy, all industrial units would be required to register themselves on the e-portal developed by NIC (http://ccaind.nic.in/dippdbt/mis/default).

Funds released under the various schemes of NEIIPP, 2007

Under NEIIPP, 2007, since inception, Rs. 1141.67 crores have been released to the States of NER out of which an amount of Rs. 149.99 crores during 2013-14, Rs. 221.90 crores during 2014-15 and Rs. 200.00 crore during 2015-16 has been released. In the current FY 2016-17, the Budget allocation of Rs. 169.97 crore had been released. Year-wise and scheme-wise funds released have been depicted through a Bar-Chart given below.

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Suspension of fresh registrations under NEIIPP

DIPP has incurred liabilities far in excess of the Plan outlay. In view of the resource crunch and to curtail further liabilities under the scheme, fresh registrations under NEIIPP have been suspended w.e.f 1.12.2014. It has now been decided by the Government to revise the above Policy for the industrial units which had commenced production on or after 01.12.2014 (hereinafter referred to as ‘the new industrial units’). The units registered before01.12.2014wouldcontinuetogetbenefitsas per pre-revised norms. The new industrial units who are eligible for registration may register themselves to avail the benefits as per revisednorms of subsidy. The suspended registration processhasbeenresumedwithimmediateeffect.

Future Policy Initiative

The Government has constituted a Committee under the Chairmanship of CEO, NITI Aayog consisting of Secretaries of Ministries/Departments of Development of North Eastern Region, Expenditure, Commerce, Skill Development and Entrepreneurship, Micro Small and Medium Enterprise, Textiles, Tourism, Health and Family Welfare, Power and Industrial Policy and Promotion to examine and suggest a roadmap for a new industrial policy for North Eastern and Himalayan States.

Package for SpecialCategory States of Jammu & Kashmir, Himachal Pradesh and Uttarakhand

a) Jammu & Kashmir

New Industrial Policy and other concessions for the State of J&K were introduced by DIPP on 14th June, 2002, for a period of ten years. Incentives/concessions provided for industrial development in the state are (i) Central Capital Investment Subsidy Scheme, 2002; (ii) Central Interest Subsidy Scheme, 2002; (iii) the Central Comprehensive Insurance Scheme, 2002. The

package of incentives for the State of J&K has been extended upto 14th June 2017. The package provides the following incentives:-

• 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. 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 for a period of five years from the dateof commencement of commercial production.

• Central Comprehensive Insurance Subsidy Scheme: An Insurance subsidy to the extent of 100% would be admissible during the extended package to all new units and to the existing units on substantialexpansionforaperiodoffiveyears from the date of commencement of commercial production.

Nodal Agency

Jammu & Kashmir Development Finance Corporation Ltd. (JKDFC) has been notifiedas Nodal Agency for routing the disbursal of subsidy under the Scheme. An amount of Rs.246.90 crore has been released since inception of the scheme to the State of J&K upto 27/12/2016.

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Progress Made

As per the reports received from the State Government, 14778 units were set up involving an investment of Rs.4219.501 crore which generated employment of 107541 persons since inception of the scheme in the State.

b) Special Package Scheme for Himachal Pradesh and Uttarakhand

New Industrial Policy and other concessions for the States of Himachal Pradesh and Uttarakhand were introduced by the Department of Industrial Policy & Promotion on 7th January, 2003, with an aim to provide incentives as well as an enabling environment for industrial development, improve availability of capital and increase market access toprovideafilliptotheprivateinvestmentinthestate. The scheme was valid till 6th January, 2013. However, scheme in the name of Package-II has beenextendedforanotherperiodfiveyearsw.e.f.,7th of January, 2013 to 31st of March, 2017. The new package includes Central Capital Investment Subsidy @ 15% of the investment in plant and machinery with maximum limit of 30 lakh for new units established or on substantial expansion for existing unit in notified area and for thrustindustries anywhere in the state. For MSMEs 15% of investment in plant & machinery with maximum upper limit of `50 lakh for same area.

Nodal Agency

Himachal Pradesh State Industrial Development Corporation Ltd. (HPSIDC) and State IndustrialCorporation of Uttarakhand Ltd. (SIDCUL) arethe Nodal Agencies for routing the disbursal of subsidy to the beneficiary industrial unitslocated at Himachal Pradesh and Uttarakhand respectively. Since inception of the Scheme, total amount of Rs.287.628 crore has been released to Himachal Pradesh and Rs.277.73 crore has been released to Uttarakhand, upto 27.12.2016.

Progress Made

As per the reports received from the Government of Himachal Pradesh, 11404 units with an investment of `15983.45 crore were set up in the State, since inception of the scheme. This has led to generation of employment for 130633 persons. As per the reports received from Uttarakhand Government, 31422 units with an investment of ` 35598.20 crore were set up in the State, 33174 units with an investment of Rs.36165.32 Crore were set up in the State, since inception of the scheme. This has led to generation of employment for 263744 persons.

Continuation of Scheme

Government has now taken a decision to constitute a Committee under the Chairmanship of CEO, NITI Aayog, consisting of Secretaries of Ministries/Departments of Development of North Eastern Region, Expenditure, Commerce, Skill Development and Entrepreneurship, Micro Small and Medium Enterprise, Textiles, Tourism, Health and Family Welfare, Power and Industrial Policy and Promotion to examine and suggest a roadmap for a new industrial policy for North Eastern and Himalayan States.

c) Andhra Pradesh & Telangana

Section 46(ii) to 94(1) of the Andhra Pradesh Re-organization Act 2014 provide for special development package and fiscal measuresincluding tax incentive to provide industrialization and economic growth of both the States. In view of the proviso made in the Act, both states Andhra Pradesh and Telangana requested for special development package and fiscalincentives including tax concession for industrial and economic development.

To realize the above objective, an allocation of Rs.100 crore was made in BE 2015-16 towards Interest Subvention to Industrial Unit(s) in Andhra Pradesh and Telangana. However, in

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view of the observation of the Committee on Non-Plan Expenditure (CNE) towards interest subvention, the allocation was withdrawn during the revised stage. To achieve the objective of AP Reorganization Act, 2014 and as per the recommendation of CNE, DIPP had requested both the State Governments to explore possibility of creating an Entrepreneurial Start-up Fund of Rs.100 crore for the period restricted to two years for promotion of new entrepreneurs in boththeStates.Duringthecurrentfinancialyear,2016-17, an allocation of Rs.100 crore has been made for the purpose. The proposals received from the respective State government are under consideration.

Modified Industrial Infrastructure Upgradation 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 potential to become globally competitive. The Scheme was recast in February, 2009 on the basis of

an independent evaluation to strengthen the implementation process. A modified versionof IIUS viz ‘Modified Industrial InfrastructureUpgradationScheme(MIIUS)’wasnotifiedinJuly2013. Under MIIUS, projects have been undertaken to upgrade infrastructure in existing Industrial Parks/ Estates/ Areas. Greenfield Projects havealso 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 Rs.50.00 crore is provided under MIIUS with at least 25% contributions of State Implementing Agency and in case of North Eastern States, the central grant and minimum contribution of the SIA are up to 80% and 10% respectively. A two stage approval mechanism has been retained in the MIIUS. Final approval has been accorded to 24 projects with central grant amounting to Rs. 604.71 crore and 6 projects with central grant of Rs.129.91 crore are at ‘in-principle’ approval stage. Central assistance of Rs. 186.74 crore has been released to 22 projects as on 31.12.2016 under MIIUS. A list of approved projects under MIIUS are given in Table 8.1.

I. List of projects which were accorded 'Final approval' under MIIUS

(Rs. in crore)S.

No. Name and location of the Project State Project

Cost Central Grant

Date of Final Approval

1 Upgradation of Hindupur Growth Centre & IP Gollapuram, Anantpur District, Andhra Pradesh 54.2 14.93 01.03.2016

2 Upgradation of industrial Growth Centre, Bobbili, Vizianagaram District Andhra Pradesh 30.61 8.68 01.03.2016

3 Industrial Growth Centre, Urla, Distt. Raipur Chhattisgarh 54.81 12.26 05.03.2015

4 Sirgitti Engineering Cluster Chhattisgarh 44.59 10.24 10.08.20155 Industrial Infra Upgradation of IMT Manesar Haryana 97.78 39.90 05.03.2015

6 Industrial Infra Upgradation at IMT, Bawal Haryana 84.85 34.19 05.03.20157 Industrial Area, Kandrauri HP 95.77 24.07 05.03.20158 Industrial Area, Pandoga HP 88.05 22.62 05.03.20159 Industrial Estate, Kathua J &K 36.55 16.89 10.08.2015

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10 Tupundana Industrial Area, Ranchi Jharkhand 35.57 14.05 10.08.2015

11 Bangalore Aerospace Park, Devenhalli Karnataka 90.50 42.69 10.08.2015

12 Kolhar Industrial Area, Bidar Karnataka 125.76 24.36 10.08.201513 KINFRA Defence Park, Palakkad Kerala 130.94 50 28.03.2016

14 Up gradation of Infrastructure at Zuangtui Industrial Estate Mizoram 18.02 14.42 01.03.2016

15 Industrial Area, Sitapur, Morena MP 75.00 12.75 05.03.201516 Industrial Area, Ujjaini, Dhar MP 44.88 11.50 05.03.201517 Angul Aluminium Park,Angul Odisha 99.60 33.44 18.08.201518 LightEngineeringCluster,Nabha,Patiala Punjab 76.60 16.58 05.03.2015

19 Upgradation of Physical infrastructure at SIPCOT-HOSUR Industrial Complex Tamil Nadu 30.4 7.69 01.03.2016

20 Pashamylaran Industrail Area, Medak Telangana 64.24 23.56 05.03.2015

21 Paddy Processing Cluster, Ranga Reddy Telangana 124.50 48.00 10.08.2015

22 Bodhjungnagar Industrial Area Tripura 55.38 39.80 05.03.2015

23 Upgradation Of RK Nagar Industrial Area Tripura 52.25 38.76 01.03.2016

24 Furniture Hub at Ernakulum District Kerala 86.156 43.33 14.07.2016 Total 1697.006 604.71

II. List of projects which were accorded 'In-principle' approval under MIIUS

(Rs. in crore)

S. No. Name and location of the Project State Project Cost

Central Grant

Date of 'in-principle'

approval

1 SIDCO, Industrial Growth Centre, Samba J &K 14.60 7.45 13.06.2014

2 Devipur Industrial Area Jharkhand 105.00 27.36 13.06.2014

3 TreatedEffluentCollectionandDisposalSystem Industries In Danilimbda Gujarat 112.75 44.16 01.03.2016

4 Upgradation Of Infrastructure In Sayakha Industrial Area, Bharuch District Gujarat 361.26 28.05 01.03.2016

5 Upgradation Of Industrial Estate Dimapur Nagaland 14.66 10.14 01.03.2016

6 Tarapur Industrial Area Maharashtra 109.45 12.75 28.04.2016

Total 717.72 129.91

Summary of IIUS Projects

37 projects have been approved in the 10th and 11th Five Year Plan Periods under IIUS and these projects have been provided central assistance of Rs. 1404.69 crore (up to 31.12.2016), out of

sanctioned central grant of Rs.1526.00 crore. Out of these 37 projects, 28 have been completed. The break-up of approved projects under IIUS and release of central grant are given in Table 8.2

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(Rs. in crore)FYP No. of Sanctioned Projects Total Project Cost Sanctioned Released

(Up to 31.12.2016)

10th 25 1558.54 893 870.5411th 12 915.26 633 534.15Total 37 2473.80 1526 1404.69

Thedetailsofthe37IIUSprojectsalongwithphysicalandfinancialprogressisenclosedatAppendix-VIII. Physical progress achieved for the 9 ongoing projects are illustrated as below:-

One project namely Bamboo Technology Park, Guwahati has been completed in October, 2016 and three more projects are likely to be completed withinthefinancialyear2016-17.

In the year 2016-17, Rs. 111.16 crore (up to 31.12.2016) has been disbursed out of an allocation of Rs.152.00 crore.

Indian Leather Development Programme

The major objective of the scheme Indian Leather Development Programme (ILDP) is toaugment raw material base, enhance capacity, modernization and up-gradation of leather units, address environmental concerns, human resource development, support to traditional leather artisans, address infrastructure constraints and establishinstitutionalfacilities.ILDPisanexistingcentral scheme initiated from the 10th Five Year Plan and continued in the 11th Five Year Plan with an expenditure of Rs. 669.02 crore. The same has

been continued in 12th Plan with an outlay of Rs. 990.36 crore. The ILDP comprises of thefollowing six sub-schemes:

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

ii. Mega Leather Cluster - The major objective ofdevelopingMegaLeatherClustersistocreate state of the art infrastructure and to integrate the production chain in a manner that caters to the business needs

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of the leather industry so as to cater to the domestic market and exports. These mega clusters will assist the entrepreneurs to set up units with modern infrastructure, latest technology, and adequate training and Human Resource Development (HRD) inputs. The development of Mega Leather Clusters would help in creatingadditional employment opportunity, particularly for the weaker sections of society. Mega Leather Clusters (MLC)for the development of leather industry will have minimum common facilities. The project cost would cover various infrastructure developments like Core Infrastructure, Special Infrastructure, Production Infrastructure, HRD & Social Infrastructure, R&D Infrastructure and Export services related infrastructure. During the year 2016-17, approval has beengivenforsetting-upofMegaLeatherCluster(MLC)atNellore,AndhraPradeshwith GOI assistance of Rs. 125 Crore.

iii. Human Resource Development (HRD)- HRD mission targets potential work force for leather sector and lays stress on skill development and technical development. This project is intended to trainandprepare individuals tobefit towork in medium to large industrial units. Assistance is provided for placement linked skill development training to unemployed persons @ Rs. 15,000 per person, for skill up-gradation training to employed workers @ Rs. 5,000 per employee and training of trainers @ Rs. 2 lakh per person. The placement of 75% of trained persons is mandatory for availing assistance related to skill development training component. During 2016-17 (As on October 2016), 60,705 unemployed persons have been provided placement linked skill development training and such 48,752 trainees (80%) were provided employment in the leather sector. The skill

up-gradation training of 14000 workers is underway.

TrainingunderPLSDPinprogress

iv. Establishment of Institutional Facilities - The sub-scheme of ILDP aims atproviding institutional facilities by way of establishing new campuses of FDDI to meet the growing demand of the leather industry for footwear technologies, designers, supervisors and mechanics. Two new branches of Footwear Design and Development Institute (FDDI) are being built in Ankleshwar (Gujarat) and Banur (Punjab) with GOI assistance of Rs.100 crore for each branch. The construction work of Gujarat campus is almost complete while the construction work of Punjabcampusisinthefinalstages.

FDDI, Ankleshwar Campus

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

vi. Support to Artisan - There are various clusters in India making traditional footwear and other leather goods. The aim of this scheme is to promote the clusters at various forums as they are an integral part of rural Indian economy and have potential for generating local employment and export. The artisan clusters all over India would be supported for enhancing their design and product development, capacity building, providing marketing support, establishing common facility centre and marketing support/linkage. The broad objective of this component is to ensure better and higher returns to the artisans resulting into socio-economic upliftment.

Achievements of Leather Sector

Under the Make in India Initiative, various Awareness Seminars/Roadshows were organized byCouncil forLeatherExports (CLE) inoverseascountries namely Germany, USA, China, Brazil, Italy and Taiwan during 2015-16 and 2016-17 to promote Indian leather industry as a favourable destination for Joint ventures/FDI/Technical collaborations etc.

The objective of organizing these promotional Roadshows & B2B events was to create awareness

of India’s manufacturing capabilities, strength and various proactive measures taken towards development of leather industry in India, and growth prospects both for export as well as in the domestic market and to attract foreign companies to invest in India.

• The Make in India – Investment Conference held in New York, USA on December 3, 2015 targeted leather garments, leather goods and accessories and footwear companies. Further, the B2B meetings were held between US and Indian companies to explore joint venture collaboration possibilities during December 2-4, 2015 alongside FFANY Shoe Expo. LeadingBuyers and importers of major US brands like Levi Dockers, Kenneth ColeAmerican Apparel, Donneger Group etc. and top representatives from fashion trade publications attended the event. A total of 57 US companies representing approximately 70 brands participated in the show.

• The Make in India Promotion – Roadshow & B2B Meetings Event in Offenbach,GermanywasheldalongsideIndiaLeatherDays during November 18-19, 2015. The Investment conference and B2B meetings were held between Indian and German companies. A total of 16 Indian and 17 German companies participated in the event.

• The Make in India investment conference and B2B meetings were held in Italy on January 18-19, 2016. A total of 14 Italian companies participated in the event along with 5 Trade Associations and Chamber of commerce.

• The Make in India seminar/conference was organized in Brazil alongside Couromoda – International Shoe, Leather Goods

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and Accessories Fair, Sao Paulo during 10-13 January, 2016 which presented the opportunities and advantages in invest in India in the leather sector with approximately 70 attendees from this sector. Further a B2B meeting was arranged with JBS Corus, a leading leather company in Brazil. JBS group has shown intense interest in exploring the possible opportunities in the leather sector in India.

• The Make in India Investment conference was held at Dongguan in Guangdong province of China during 6-7 January, 2016. The event was attended by around

200 Chinese businessmen, entrepreneurs and potential investors from Footwear Associations and Footwear Machinery Associationsinthefieldofleatherindustry.

• The Investment seminar on Indian FootwearandLeatherSectorwasheldinTaiwan in coordination with India Taipei Association (ITA), Taipei during August 24-25, 2016. Around 50 Taiwanese companies participated in the event.

Under the Make in India Programme ‘Council for Footwear,Leather&Accessories(CFLA)’hasbeenconstituted to promote scale and competitiveness of domestic leather industry.

Industries and Industrial & Technical Development

Cement Industry

India is the second largest manufacturer of cement in the world. The industry plays a crucial role in the development of the housing and infrastructure sector of the economy. The price and distribution control of cement was removed in 1989 and the cement industry has been de-licensed in 1991 under the Industrial (Development & Regulation) Act, 1951. Since then the Cement Industry has progressed well both in capacity/production and as well as in process technology.

India is producing, different varieties of cementlike Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, White Cement,etc.Thesedifferentvarietiesof cementare produced as per the Bureau of Indian Standard (BIS) specifications and its quality iscomparable with the best in the world. Recently BIShasformulatedanewcementspecificationforcomposite cement namely IS: 16415-2015.

Capacity, Production and Dispatch of Cement

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.

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 itsefficiencyby conserving energy, fuel and addressing the environmental concerns.

The cement industry comprises about 210 large cement plants with an installed capacity of 410.00 million tonnes and more than 350 mini cement plants with an estimated capacity of 11.10 million tonnes per annum. There are a few large cement plants owned by the Central and the State Governments.

TheProductionandDispatchfiguresfortheyear2015-16 are (up to March 2016) 283.45 Million Tonnes (MT) and 283.38 Million Tonnes (MT) respectively. The Department was collecting Cess on Cement @ Rs. 0.75 per metric tonne of cement manufactured/ produced from medium and large industries upto August, 2016. The Cess collected on cement for the years 2015-16 and 2016-17 are Rs. 21.09 Cr and Rs. 10.00 Cr( up to August, 2016) respectively and deposited in the Consolidated Fund of India. Central Government videGazetteNotificationdated05th August, 2016 has rescinded the Order of the Government of India in the erstwhile Ministry of Industry, Department of Industrial Development, number S.O. 125(E) dated 24th February, 1993, published in the Gazette of India, Extraordinary, vide number S.O. 125(E) dated 24th February, 1993, relating to collection of cess from cement industries; now cess is not collected from this sector.

Cement Information System (CIS) Portal was launched in 2014 for compilation of data regarding capacity, production, dispatch and export of cement, etc. from cement plants in the country; format for data collection has been simplifiedtoeasecomplexdatarequirementand

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the same is under security audit. CIS with revised format will be available for user industries shortly.

National Council for Cement and Building Materials (NCB) is a cooperative research organization (registered as a society under the Societies Registration Act, 1860) under Administrative Control of this Department. The Council provides scientific, technological andindustrial services support to the cement, related building materials and construction industries, and carries its activities through its Units located at Ballabgarh, Hyderabad and Ahmedabad. Its activities are carried out through six Programme Centres as under:

(i). Cement Research and Independent Testing.

(ii). Mining, Environment, Plant Engineering and Operation.

(iii). Construction Development and Research.

(iv). Industrial Information Services.

(v). Continuing Education Services.

(vi). Quality Management, Standards and Calibration Services.

The Budget provisions for the current financialyear 2016-17 is Rs. 6.00 Cr for ‘Plan ‘and Rs. 14.60 Cr for ‘Non-Plan’ activities. Outlay for the 12th Five Year Plan for NCCBM is Rs. 35 Cr.

Cigarette Industry (HS Code:24)

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.

The production of cigarettes during 2015-16 was 793,338.21 lakh (in numbers). During the current financial year (April, 2016 to October, 2016), the production has been 427,652.89 lakh (in numbers) .

The export and import of Cigars, Cheroots, Cigarillos and Cigarettes of Tobacco or Tobacco Substitutes in the year 2015-16 and for current financial year (April, 2016 to October,2016) (HS Code: 2402) are as follows:

(Value in Rs. Lacs)HS Code

Export Import

2402 2015-16 April, 2016 to October,

2016

2015-16 2015-16 (April, 2015

to November, 2016)

80,423.76 36,108.39 13,103.01 9646.32

Explosives Industry

There are 120 Explosives Plants and 141 Site Mixed Explosives Plants in the medium and Small Scale Sector, engaged in the production of Explosives. The installed and production capacity are as under:-

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Production of Explosives for the last 5 years

DescriptionAnnual Installed

Licenced capacity (MT)

2012-13 2013-14 2014-15 2015-162016-17 (up to

31.12.2016)

Class 1 Gun Powder (Metric Tonnes)

855.55 577.7 549 535.327 552.165 511.344

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

691046 1633675.5

267275 495946

269999 521419

344146.4 604234.6

378989.957 762850.379

291485.310 575768.364

Class 3 Div-1 ** Nil ------ ------- ------- ------- Nil

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

21149.67 5656.5 6186 7015 7996.384 6995.651

Class 6 Div 1 Safety Fuse (Million meters)

261.6 77.1 75 68.7 61.1 42.30

Class 6 Div 2 Detonating fuse (Million mtrs)

708 649.0 428 457.7 479.6 449.197

Class 6 Div 3 Detonators (Million Nos.)

1166.15 992.2 1032 906.7 969 872

**Possession, sale and transport of Class 3 Division 1 (Nitro-Glycerine based explosives has been prohibited since 01/04/2004). However, manufacturing units in private sector authorized to manufacture N.G. and N.G. based explosives for use by Armed Forces of the Union, Ordance factories or other establishments of Defence forces have been exempted w.e.f.13/02/2015..

*PETN- Penta Erythritol Tetra Nitrate

Glass Industry (HS Code:70)

Glass Industry comes under the category of delicensed industry. Glass Industry covers seven items such as sheet and flat glass (includingsheet, 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 globalmarket.The Indian manufacturers had explored new markets. There is considerable scope in demand

forglassfibreproductsparticularlyduetogrowthin petrochemical sector and allied products.

The production of Glass Sheet, Toughened Glass, Fibre Glass, Glass Bottles during 2015-16 were 87,544.08 thousand square metres, 31,17,950.40 square metres, 49,967.40 tonnes, 9,18,669.00 tonnes respectively and during the currentfinancial year (April, 2016 toOctober2016) have been 51,109.04 thousand square metres, 16,29,085.77 square metres, 26,322.26 tonnes and 5,42,348.00 tonnes respectively.

The export & import of glass & glassware in the year 2015-16 and current financial year (April, 2016 to October, 2016) (HS Code: 7005, 7007, 7008, 7009 and 7010 ) are as follows:

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(Value in Rs. Lacs)

HS Code Export Import

2015-16 2016-17 (April, 2016 to October, 2016)

2015-16 2016-17 (April, 2016 to October, 2016)

7005 21,749.11 9,930.34 80,785.19 50,221.897007 17,642.37 8,310.79 40,960.24 25,858.727008 3,018.38 2,093.13 2,126.91 1,749.027009 18,379.63 12,080.72 47,798.56 20,622.127010 136,674.88 92,285.29 34,054.50 16,570.26

TOTAL 1,97,464.37 96,022.14 2,05,725.40 1,15,022.01

Wood Based Industry (HS Code:44)

Plywood, Veneers of all types and other wood based products such as particle board, medium densityfiberboardetc.formthemajorsegmentof the Wood based Industry in India. The Industry comes 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 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.

The total production of Plywood, Wood Veneer and Particle Boards during 2015-16 was 52,871.23 thousand square metres, 74,331.60 thousand square metres and 8,693.28 thousand square metres respectively and the production of these productsduringthecurrentfinancialyear(April,2016 to October, 2016) has been 32,289.34 thousand square metres, 30,533.20 thousand square metres and 4.378 17 thousand square metres respectively .

The export and import of wood and articles of wood in the year 2015-16 and for the current financialyear (April,2016toOctober,2016) (HSCode: 4408, 4409, 4410, 4411, 4412, 4415 and 4416 ) are as follows:

(Value in Rs. Lacs)HS Code Export Import

2015-16 2016-17 (April, 2016 to October, 2016)

2015-16 2016-17 (April, 2016 to October, 2016)

4408 9,394.57 5,099.18 1,14,084.55 70,357.734409 1,109.03 857.59 10,667.69 6,865.024410 1,641.84 1,150.71 23,627.40 12,823.134411 7,820.27 4,693.82 59,394.26 29,367.224412 27,073.14 9,629.87 53,397.19 26,787.944415 7,629.09 4,735.83 7,089.84 3,921.694416 146.85 71.13 1,100.13 435.73

TOTAL 54,814.79 26,238.13 2,69,361.06 1,50,558.46

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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.

The production of Paints of all kinds and Printing Ink during 2015-16 was 7,98,715.22 tonnes and 2,29,693.88 tonnes respectively. During the current financial year (April, 2016 to October,2016), the production of these products has been 500,720.34 tonnes and 1,41,532.50 tonnes respectively.

The export and import of Paints & Allied Products intheyear2015-16andforthecurrentfinancialyear (April, 2016 to October, 2016) (HS Code: 3208, 3209, 3210 and 3215) are as follows:

(Value in Rs. Lacs)

HS Code Export Import

2015-16 2016-17 (April, 2016 to October, 2016)

2015-16 2016-17 (April, 2016 to October, 2016)

3208 20,095.97 13,536 49 111,974.97 59,354.313209 4,459.39 2,269.54 27,033.08 13,621.843210 3,128.87 4,755.30 10,955.06 5,462.753215 97,932.42 50,886.38 161,663.87 62,117.88

TOTAL 1,25,616.65 71,447.71 3,11,626.97 1,40,556.78

Watch Industry (HS Code:91)

The Watch Industry in India comprises of units both in the organized 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.

The production of Clock/Watch/Timepiece Movement and Watches (Wrist) during 2015-16 was 10,743,104.00 (in numbers) and 9,590.88

(thousand numbers) respectively. During the current financial year (April, 2016 to October,2016), the production has been 66,49,044.00 (in numbers) and 6,290.35 (thousand numbers) respectively.

The export & import of Clocks and Watches in theyear2015-16andforthecurrentfinancialyear(April, 2016 to October, 2016) (HS Code: 91) are as follows:


2015-16 2016-2017 April, 2016 to October, 2016

2015-16 2016-2017 April, 2016 to October, 2016

91 63,779.86 30,526.43 1,90,249.65 93,319.24

Metal Container Industry (HS Code:7310)

The principal types of metal (tin) containers are food containers generally known as OTS (Open TopSanitary)cansandGeneralLineContainersforpackaging non-food commodities such as paints, lubricants, pesticides, etc. The Metal Container

Industry is delicensed.

The production of Tin containers during 2015-16 was worth Rs. 412.55 crores and during thecurrentfinancialyear(April,2016toOctober,2016) has been Rs. 287.44 crores.

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The export & import of containers in the year 2015-16andforthecurrentfinancialyear(April,

2016 to October, 2016) (HS Code: 7310 ) are as follows:


2015-16 2016-2017 April, 2016 to October, 2016

2015-16 2016-2017 April, 2016 to October, 2016

7310 31,416.72 15,988.53 41,831.09 26.068.46

Soaps & Detergents Industry (HS Code:34)

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.

The production of Synthetic Detergents, Toilet

Soaps and Washing Soaps during the year 2015-16 was 1,293,177.84 tonnes, 715,732.50 tonnes and 128,990.25 tonnes respectively. During the current financial year (April, 2016 to October,2016), the production has been 719,899.65 tonnes, 410,718.95 tonnes and 78,194.02 tonnes respectively.

The export and import of Soap, Organic Surface Active Agents, Washing Preparations etc. in the year 2015-16 and for the current financial year(April, 2016 to October, 2016) (HS Code: 3401 and 3402 ) are as follows:


2015-16 2016-17 (April, 2016 to October, 2016)

2015-16 2016-17 (April, 2016 to October, 2016)

3401 68,430.33 36,466.47 30,392.72 24,043.753402 185,592.91 99,433.23 156,810.62 80,570.76

TOTAL 254,023.24 135,899.70 187,203.34 104,614.51

Leather Industry

Leather Industry plays an important role inthe Indian economy in view of its substantial overall output, export earnings and employment potential.TheLeatherIndustryisthetenthlargestamongst the manufacturing sector of India and is one of the top ten export earners for the country. The leather sector provides employment to about 2.5 million people, mainly from the weaker sections/minorities, of which about 30% are women. The sector has very strong linkage to job creation in rural economy and on social equity. The sector is dominated by small and medium enterprises.

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

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India’sExportperformanceoftheLeatherSectorduringthelastfiveyearsispresentedbelow:-

(Value in Million US$)2011-12 2012-13 2013-14 2014-15 2016-17*

Finished leather 1024.69 1093.73 1284.71 1329.05 884.39Footwear& Footwear-Components 2079.14 2066.91 2345.60 2638.73 2311.03Leather Garments 572.54 563.54 596.15 604.25 481.38Leather Goods 1089.71 1180.82 1353.91 1453.26 1221.67Saddlery & Harness 107.54 110.41 145.54 162.70 121.77Non-Leather Footwear - - 202.06 306.42 -Total 4873.62 5015.41 5937.97 6494.41 5020.24

*(April 2015–January 2016)Source - Council for Leather Exports (CLE), India

ItemsofmanufactureintheLeatherSectordonotattractLicensingProvisionsunderTheIndustriesDevelopment and Regulation Act 1951.

Light Electrical Industry Sector

The Light Electrical Industry is a diverse sectorhaving 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:-

1) Electrical wires and cables

Electrical wires and cable industry is one of the earliest industries established in the country in thefieldofelectricalproducts. Awiderangeofwires 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 voltagepower cables and EHT power cables. The power cable industry may be mainly divided into four segmentsviz:housewiring(upto440V),LT (1.1to 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 insulated cable & wires of all kinds in 2015-16 was 65.85 lakhs core km. and in 2016-17 (April - Oct) was 48.05 lakhs core km. The export and import of wires and cables (HS code. 7413 & 8544) in 2015-16 was Rs. 4809.06 Crore and Rs. 5461.80 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 2563.92 crore and Rs. 2565.90 crore respectively.

2) Transmission Towers

Transmission towers support high voltage transmission lines which carry electricity over long distance. These lines typically feed into sub-station so that the electrical voltage can be reduced to a level that can subsequently be used by the customers. There is an increasing trend in India to have larger power stations, particularly mega and ultra-mega power projects. Consequently while there would be fewer but larger power generating stations, the demand for transmission of energy would grow substantially. The move to integrate India's transmission networks through a national grid of inter-regional transmission lines will facilitate transfer of power from surplus regions to deficit regions. The industry has

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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.

The export and import of transmission towers (HS Code 730820) in 2015-16 was Rs. 2521.62 crore and Rs. 31.26 crore respectively whereas in 2016-17 (April-Sept.) the same was Rs. 636.23 crore and Rs. 8.86 crore respectively.

3) Cranes

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 Traveling (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 increased industrial activities in various fieldsaswellasconstructionindustry.

The production of cranes in 2015-16 was 14597.16 tonnes and in 2016-17 Apr-Oct) is 8828.28 tonnes. The export and import of cranes (HS Code No.8426) in 2015-16 was Rs. 1150.95 crore and Rs. 2395.89 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 385.46 crore and Rs. 1966.14 crore respectively.

4) Lifts and Escalators

The use of lifts and escalators is increasing rapidly due to substantial investments in construction of multi-storied housing complexes, large malls and supermarkets of international standards, modernization of airports and railway stations apart from industrial sectors. A wide range of lifts and escalators are manufactured in India. These include single speed, double speed, gearless, hydraulic, servo and Variable Voltage Variable Frequency (VVVF) elevators.

The production of lifts in 2015-16 was Rs. 1126.36 crore and in 2016-17 (April-Oct) was 714.87

crore.Theexportand importofLifts,Escalators,Conveyers etc. (HS Code No. 8428) in 2015-16 was Rs. 560.24 crore and Rs. 2410.84 crore respectively whereas in 2015-16 (April-Sept..) the same was Rs. 281.22 crore and Rs. 1315.78 crore respectively.

5) Refrigerators

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 thelarger220Landhighercapacityrefrigeratorswithdouble doors.

The production of refrigerators in 2015-16 was 92.03 lakh and in 2016-17 (April – Oct) was 61.33 lakhs. The export and import of refrigerators (HS Code 8418) in 2015-16 was Rs. 1682.27 Crore and Rs. 2571.44 Crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 970.56 Crore and Rs. 1446.02 Crore respectively.

6) Washing Machines

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 costsandimproveenergyefficiency.

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The production of washing machines by the units in the organized sector in 2015-16 was 43.10 lakh and in 2016-17 (April-Oct) was 31.09 lakh. The export and import of washing machines (HS Code 8450) in 2015-16 was Rs. 345.37 crore and Rs. 885.41 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 176.04 crore and Rs. 509.49 crore respectively.

7) Air Conditioners

Air Conditioners are gradually being treated as a necessity in changed socio-economic environment with changing life style. The air–conditioners’marketcanbeclassified intothreesegments: 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 inflats inmulti-storiedcomplexesandalsoduetolessnoise.BureauofEnergyEfficiency(BEE),astatutory body under the Ministry of Power has introducedenergyefficiencybasedstarratingforair conditioners to help consumers buy the best energyefficientproducts.

The production of air conditioners by units in the organized sector in 2015-16 was 27.97 lakh and in 2016-17 (April-Oct) was 17.12 lakh. The export and import of air conditioners (HS Code 8415) in 2015-16 was Rs. 905.36 crore and Rs. 5354.04 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 455.00 crore and Rs. 2888.82 crore respectively.

8) Lead Acid Storage Batteries

LeadAcid Batteries are accumulators of currentand power which is discharged over a period of time. They are used in vehicles and also for various industrial uses such as for back up power for UPS application, control rooms, power stations, telecommunications, etc. In addition, 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 specifiedbyBIS.Inordertoensuresafedisposalof lead acid batteries, Ministry of Environment and forest has issued a notification Batteries(Management and Handling) Rules, 2001 under Environment (Protection) Act 1986.

The production of lead acid batteries by the units in the organized sector in 2015-16 was 849.57 lakh and in 2016-17 (April-Oct) was 580.13 lakh. The export and import of lead acid batteries (HS code 8507) in 2015-16 was Rs. 1281.91 crore and Rs. 5038.91 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 710.48 crore and Rs. 2364.92 crore respectively.

9) Dry Cell Batteries

Dry cell batteries are one of the most commonly used items. These are the oldest type of batteries which are still being used. Performance of dry cell batteries has undergone progressive improvements through technological developments. New types of dry cell batteries with longer shelf life and greater dependability and also rechargeable cells have come up. Nickel cadmium batteries and other rechargeable batteries are manufactured in the country to meet the requirement of defence, telecommunications and electronics. The growing popularity of cellular phones, laptops and imported toys could open the market for a new range of batteries that are not produced at present.

The production of dry cells in 2015-16 was 19467.01 lakh and in 2016-17 (April-Oct) was

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12162.10 lakh. The export and import of dry cell batteries (HS Code 8506) in 2015-16 was Rs. 71.20 crore and Rs. 728.66 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 27.75 crore and Rs. 426.10 crore respectively.

10) Electrical Lamps and Tubes

Wide range of lamps and tubes are being manufactured in the country which include general lighting service lamps such as incandescent bulbs, halogen lamps, gas discharge lamps such as fluorescenttubelight,compactfluorescentlamp,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 ofenergyefficient lampsconsuming lesspowerand giving output as close to daylight. Compact Fluorescent Lamps (CFL) which consume about20% of the electricity for the same light output and last up to 8 times longer than the GLSare getting more popular. LEDs have a greatpotentialtoprovidehighlyefficientlightingwithlittle environmental pollution in comparison to the incandescent lamps (ICLs) and fluorescentlamps (FTLs,CFLs). PenetrationofLEDs in Indiacouldsignificantlyreducelightingloadasalmost22-25% of electricity is consumed for lighting, which is also a major contributing factor of peak demand.Duetohighercosts,LEDsarenotverypopular even though its production has started in the country.

The production of General Lighting Services(GLS) Lamps by units in the organized sectorand fluorescent tubes in 2015-16 was 6714.39lakh and 1955.62 lakh respectively. In 2016-17 (April-Oct)productionofGLSlampsbytheunitsintheorganizedsectorandfluorescenttubeswas3494.53 lakh and 846.17 lakh. The export and import of electric lamps and tubes (HS code-9405) in 2015-16 was Rs. 969.01crore and Rs. 3839.79 crore respectively whereas in 2016-17 (April-Sept)

the same was Rs. Rs.509.37 crore and Rs. 1795.82 crore respectively.

Light Engineering Industry Sector

The light Engineering Industry is a diverse industry with the number of distinct sectors. This industry includes mother of all industries like castings and forgings to the highly sophisticated micro-processor based process control equipment and diagnostic medical instruments. This group also includes industries like bearings, steel pipes and tubes, fasteners, etc. The products covered under the engineering industry are largely used as input to the capital goods industry. Hence the demand of this sector in general depends on the demand of the capital goods industry.

1) Roller Bearing Industry

Roller bearings are essential components in the rotating parts of virtually all machines such as automobiles, electric motors, diesel engines, industrial machinery & machine tools, etc. Bearings are used in diversified fields. Hence,the product range is vast and diversified. Theindigenous manufacturers are manufacturing bearings of quality and precision at par with world renownedmanufacturersinthediversifiedrangeof 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 estimated share of 35%, electrical industry’s share is 12%, after market (replacement) share is 40% and the remaining 13% consumption is by other industries.

The production of ball & roller bearings in 2015-

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16 was 8997.90 lakh and in 2016-17 (April-Oct) is 5789.22 lakh. The export and import of ball & roller bearings (HS code 8482) in 2015-16 was Rs. 2681.65 crore and Rs. 5717.02 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 1260.22 crore and Rs. 2956.46 crore respectively.

2) Ferrous Castings

Ferrous castings are pivotal to the growth and development of engineering industries since these constitute essential intermediates for automobiles, industrial machinery, power plants, chemical and fertilizer plants etc. Indian foundry industry is the third largest in the world. This industry is now well established in the country and is spread across a wide 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 clusterisknownforcateringtosomespecificenduse markets. For example, the Coimbatore cluster is famous for pump sets castings, the Kolhapur and Belgaum cluster for automotive castings, Rajkot cluster for diesel engine castings and Batala and Jalandhar cluster for machinery parts and agricultural implements. Advanced countries like USA, Japan, Germany are unlikely to add much capacity due to stringent pollution control norms there. India can thus have a dominant presence inthisfieldandcanbecomeanimportantcastingsupplier to the world.

The production of steel castings and C.I. castings in 2015-16 was 464375.73 tonnes and in 2016-17 (April-Oct) is 297983.14 tonnes. The export and import of casting (HS code 7325) in 2015-16 was Rs. 6305.74 crore and Rs. 609.70 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 3007.83 crore and Rs. 342.60 crore respectively.

3) Process Control Instrument Industry

Process control instruments cover wide range of

instruments and systems required for monitoring and measurement of physical, chemical and biological properties. They are used for measurement and control of process variables like pressure, temperature, humidity, liquid level, flow, specific gravity, chemical compositionincluding 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. Theirimportanceissignificantinhighcostlargeand sophisticated process industries like fertilizer, steel, power plant, refineries, petrochemicals,cement & other process industries. The present technology is a microprocessor based centralised control system.

The export and import of process control instruments (HS code 9032) in 2015-16 was Rs. 1596.86 crore and Rs. 4760.65 crore respectively whereas in 2016-17 (April-Sept.) the same was Rs.998.03 crore and Rs. 2405.79 crore respectively.

4) Seamless Steel Pipes & Tubes

Seamless steel pipes and tubes are produced in differentsizes.Thewidesizerangemakesthemsuitable for use in number of versatile area of application. The process of manufacture imparts strength and durability to the pipes and thus can be used for corrosion – resisting applications. These pipes are also used for aircraft, missile and anti-friction bearing, ordinance, etc. Ultra high strength and corrosion-resistant properties make these perfect for oil and gas industry, chemical industry and automobile industry. Oil sector accounts for around 60% of the total requirement of seamless pipes. Bearings and boiler sector contribute around 30% of demand. The Industry is able to manufacture tubes up to 14” outer diameter.

The export and import of seamless steel pipes and tubes industry (HS code 7304) in 2015-16 was Rs.

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1639.49 crore and Rs. 4216.80 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 783.98 crore and Rs. 2282.90 crore respectively.

5) Electrical Resistance Welded (ERW) Steel Pipes & Tubes.

Based on the customers’ requirement, ERW steel pipes and tubes are available in various qualities, wall thickness and diameters of the finishedpipes. High performance ERW steel pipes and tubes possess high corrosion resistance, high deformability, high strength and high toughness. These pipes are used in fencing, lining pipes, oil country tubulars, scaffolding, water and gasconveyance 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.

The export and import of ERW steel pipes and tubes (HS code 73059021,73059029, 73069011 & 73069019) in 2015-16 was Rs. 172.55 crore and Rs. 11.80 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 90.83 crore and Rs 5.40 crore respectively.

6) Submerged-Arc Welded (SAW) pipes

There are two types of SAW pipes namely longitudinal and helical welded SAW pipes. Longitudinal SAW pipes are preferred wherethickness of pipe is more than 25mm and in high pressure gas pipe line. Helical welded SAW pipes are used for low pressure applications. The cost of helical SAW pipes is less than longitudinal pipes. There is huge demand of SAW pipes in the country due to transportation of oil and gas and transmission of water.

The export and import of SAW pipes Industry (HS code 7305)in 2015-16 was Rs. 3475.98 crore and Rs. 219.57 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 1600.94 crore and Rs. 189.48 crore respectively.

7) Industrial Fasteners

The fastener industry in Indiamay be classifiedinto 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.

The production of nuts & bolts in the organized sector in 2015-16 was 108959.31 tonnes and in 2016-17 (April-Oct) was 66485.28 tonnes. The export and import of industrial fastener (HS code 7318) in 2015-16 was Rs. 3369.58 crore and Rs. 4561.26 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 1515.19 crore and Rs. 2288.59 crore respectively.

8) Steel Forgings

Forgings are intermediate products used widely by original equipment manufacturers in the production of durable goods. The composition of the Indian forging industry can be categorized into four sectors - large, medium, small and tiny. A major portion of this industry is made up of small and medium units/enterprises (SMEs). The industry was previously labour intensive but with increasing globalization it is becoming more capital intensive. Among the industries that depend on forgings are automotive; agricultural machinery and equipment; valves, fittings, andpetrochemical applications; hand tools and hardware; off-highway and railroad equipment;general industrial equipment; ordnance, marine and aerospace. The key driver of demand of forging is the automobile industry. About 65% of the total forging production is used in this sector.

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The production of stamping & forging in the organized sector in 2015-16 was 480540.61 tonnes and 2016-17 (April-Oct) is 250593.49 tonnes. The export and import of forging industry (HS code 7326) in 2015-16 was Rs 6136.63 crore and Rs. 4636.19 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 3072.83 crore and Rs. 1857.55 crore respectively.

Bicycle Industry

The bicycle industry of India is one of the most established industries. India is the second largest bicycle producer of the world, next only to China. Most of the manufacturing units are locatedinPunjabandTamilNaduwithLudhiana(Punjab) being a major Bicycle production hub. The industry is making endeavor for enhancing exportsincethereisasignificantscopeforexportof Indian bicycles, bicycle spare parts and bicycle accessories. Bicycle companies in India are now focusing on urban markets and are looking to expand their base in the professional and adventure categories.

The production of all kinds of bicycles in the organized sector in 2015-16 & 2016-17 (April-Oct) was 139.22 lakh and 71.99 lakh. The export and import of bicycle (HS code 8712) in 2015-16 was Rs 288.58 crore and Rs. 205.58 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 144.27 crore and Rs. 125.37 crore respectively.

Light Industrial Machinery Sector

1) Food Processing Machinery

The Indian market for food processing machinery has been growing steadily fuelled by strong domestic demand for processed food and beverage products spurred by increase in income level, increasing number of women joining the work force, rapid urbanization, changing life style and mass media promotion. The most promising areas of growth are fruit and vegetable processing, meat, poultry, dairy & seafood,

packaged/convenience food, soft drinks and grain processing. Food Processing Sector is expected to grow at a healthy pace considering the rapid changes in food habits and consumerist culture developing in the country. The machinery manufacturers have honed their expertise in manufacturing dairy machinery and other core equipment of food processing machinery.

The production of Food Processing Machinery in the organized sector in 2015-16 was Rs. 74.36 crore and 2016-17 (April-Oct) is Rs. 29.37 crore. The export and import of food processing machinery (HS code 8438) in 2015-16 was Rs 856.59 crore and Rs. 1201.38 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 382.57 crore and Rs. 528.37 crore respectively.

2) Packaging Machinery Industry

Packaging of consumer products or industrial products is emerging as the USP in the marketing strategies. Developments in packaging technology have not only contributed to improving the aesthetic appeal of the products but also the shelf life. In some cases specialized packaging becomes a technical necessity. Considering the growth prospects in industrial sector and growing consumer awareness of packaging, it is expected that there would be substantial growth in this area. There is a wide range of packaging machinery available in the country covering packaging of vast range of items. Some of the commonly available packing machinery includes machines for coding and on-line printing machines, feeding and labelingmachines,strippackaging, formfillandsealmachines,cartonfilling, fullyautomaticbag making machinery and automatic micro processor controlled packaging machines.

The export and import of packaging machinery industry (HS code 842220 to 842240) in 2015-16 was Rs 861.79 crore and Rs. 2469.37 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 387.55 crore and Rs. 1091.71 crore respectively.

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3) Water Pollution Control Equipment

Due to growing awareness regarding water pollution and stringent environmental control standards being enforced for various uses including process industries, the water/waste water treatment industry is poised for huge growth. The various categories of water pollution control equipment broadly include waste water treatment plants, drinking water treatment plants andeffluenttreatmentplants.Water/wastewatertreatment is the process of removing contaminants and it includes physical, chemical and biological processes to remove physical, chemical and biological contaminants. The primary treatment is thefirststepinthetreatmentprocessandinvolvesthe removal of pollutants that settles or floats.Thecommonindustrialequipmentsareclarifiersand oil – water separator devises. The secondary treatment is designed to substantially degrade the biological content of the sewage. The common equipmentsareactivatedsludge,filters,biologicalreactors 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. Chemicalprocess 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 methodlikeclarification.Thecompleteplantsaremanufactured mostly in the organized sector and many equipments are manufactured in the MSME Sector as well.

The export and import of Water Pollution Control Equipment (HS code 842121) in 2015-16 was Rs 744.05 crore and Rs. 939.56 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 341.95 crore and Rs. 289.76 crore respectively.

4) Air Pollution Control Equipment

Industrialization and urbanization have resulted in a profound deterioration of India's air quality. India's most severe environmental problem, come in several forms, including vehicular emissions and untreated industrial smoke. Air pollution in the country especially in metropolitan cities and largetownshasassumedgreatsignificancewiththe 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 foradoption of air pollution control measures. The choice of control method depends on factors suchasthenatureofpollutant,flow-rate(amountof pollutant emitted), particle size and desired collection efficiency. The air pollution controlequipments are broadly classified under thecategories such as Settling Chambers, Cyclone and multi –cyclones, Bag Filters, Wet Scrubbers, Spray Tower, Venturi Scrubber, Ionizing Scrubber and Electrostatic Precipitator. The industry is in a position to do basic and detailed engineering and supply of plants on turnkey basis.

The export and import of air pollution control equipment (HS code 842139) in 2015-16 was Rs 681.88 crore and Rs. 1311.80 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 371.29 crore and Rs. 562.18 crore respectively.

5) Industrial Gears

Industrial gears comprises mainly gears and gear boxes. Gears are used for two basic purposes: increase or decrease of rotation speed and increase or decrease of power or torque. Gears being an important part of a machine have immense usage within various industries. These industries include automotive industries, coal plants industry, steel plants industry, paper industry, in mining and many more. In these industries they behold a wide area of application. They are used in conveyors,

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elevators, kilns, separators, cranes and lubrication systems.Gearboxisdefinedasametalcasinginwhich 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 ofgears such as spur gears, helical gears, worm gears, spiral gears and many other kinds are manufactured in the country. The demand for gears and gear boxes predominantly depend on the growth of industrial machinery, machine tools, and consumer & automobile sector. Considering the industrial growth prospects, particularly in automobile sector, the demand for gears and gear boxes is expected to grow at a healthy pace.

The export and import of gears and gearing (HS code 848340) in 2015-16 was Rs. 1163.00 crore and Rs. 2020.18 crore respectively whereas in 2016-17 (April-Sept) the same was Rs. 632.68 crore and Rs. 978.99 crore respectively.

Source: 1. Export-Import Data – Export-Import Data Bank, D/o Commerce.

2. Production Data – Industrial Statistics Unit, DIPP

Paper, Paper Board & Newsprint Industry

India continued to rein as one of the fastest growing paper market in the world. The growing knowledge base coupled with synergistic contributions from flagship schemes of the government, namely,Saakshar Bharat, Skill India, Beti Bachao Beti Padhao, Sarva Shiksha Abhiyan, (SSA) Rashtriya Madhyamik Shiksha Abhiyan (RMSA), Inclusive Education for the Disabled at Secondary School (IEDSS), Adult Education, Right to Education and Central Government Scholarship & Education LoanScheme,assuredarobustdemandforpaperand paper board. The industry was delicenced in July, 1997. As per the the present policy, FDI up to 100 per cent is allowed on the automatic route

for the pulp and paper sector. There are around 850 units which manufacture pulp, paper, paper board and newsprint with an installed capacity of nearly 24 million tonnes out of which 3 million tonnes are lying idle. The total operating capacity is around 20 million tonnes. The Indian paper industry is in a fragmented structure, consisting of small, medium and large paper mills having capacity ranging from 10 to 1500 tonnes per day. These units use wood and agro residues as well as recovered paper as raw material. The production share of these units is around 20%, 10% and 70% respectively.

Paper & Paper board Segment

Indigenous paper and paper board segment produces all the main varieties of paper that are in demand in the market viz writing and printing (38%) packaging grade paper (53%), newsprint (8%) and speciality paper (<1 %). However, certain speciality paper such as coated paper, security papers and cheque paper, etc., are being imported in the country.

The production of paper and paper board in the year 2015-16 stood at around 17 million tonnes (estimatedfigure) as compared to 16.63milliontonnes in the previous year (2014-15). During the year 2015-16, 1.48 million tons of paper and paper board was imported whereas in the previousyear(2014-15)thisfigurestoodat1.36million tons. On the other hand about 0.64 million tons of paper and paper board was exported in theyear2015-16,upfromafigureof0.60milliontons in the year 2014-15.

Newsprint Segment

The newsprint sector in the country is governed by the Newsprint Control Order (NCO), 2004. The mills listed under the schedule of this order are exempt from excise duty, subject to actual user condition. At present, there are 123 mills registered under the Schedule to the NCO. However, only 64 are producing newsprint making the operating

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installed capacity 2.52 million tonnes per annum. 23 mills have closed operations since being listed in the NCO and 36 mills have discontinued the production of newsprint. The domestic production of newsprint dropped from 1.44 million tons in 2014-15 to1.02million tons (Estimatedfigures)in year 2015-16. Nearly half of the newsprint demand in the country is met by imports. 1.50 million tons of newsprint was imported in 2015-16, which is higher from a 1.33 million tons for the previous year. The export of newsprint from the country is negligible.

Rubber Goods Industry

The Rubber Goods Industry excluding tyre and tubes consists of 4550 small and tiny units generating about 5.50 lakhs direct jobs. The rubber industry manufacturers a wide range of products like rubber cots and aprons, contraceptives, footwear, rubber hoses, cables, camelback, battery boxes, latex products, conveyor belts, surgical gloves, balloons, rubber moulded goods etc. The main raw materials used by the rubber goods manufacturing industry are Natural Rubber, various types of Synthetic Rubber, Carbon Black, Rubber Chemicals etc. The export of rubber goods is expected to be the tune of Rs.6156 crore in 2016-17 as against Rs. 6035 crore in 2015-16. The import of rubber goods is expected to the tune of Rs. 11808 crore in 2016-17 against Rs.11018 crore in 2015-16.

The performance of rubber goods industry hardly needs any emphasis. From healthcare to footwear, high performance tyres to conveyer belts are indispensible for country’s infrastructure.

Tyres & Tubes Industry

Tyres play an integral role to ensure mobility including movement of passengers and essential goods across the urban and rural landscape of the country using all types of vehicles ranging from carts, tractors, trucks and buses to the latest generation passenger cars that ply on the modern

expressways. All types of tyres required to meet the domestic demand are manufactured in India. These tyres include Moped tyre weighing 1.5 Kg toOff theRoad tyres forEarthmoverswhichweigh 1.5 tonnes, Bias Ply tyres to rugged all steel radial truck tyres to high performance passenger car radial and tubeless tyres etc. India is one of the few countries worldwide which has attained selfsufficiencyinmanufacturingawiderangeoftyres for all applications.

Salient features of tyre industry:

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

II. Tyres & Tubes production during 2016- 17 will be 2385 lakh approximately. Three IndianCompanies(MRFLtd.,ApolloTyresand J&K Tyres) are in the list of top 25 Global Tyre companies.

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

IV. All large Indian tyre companies have initiated major capacity expansion programmes to the tune of Rs.36, 000 crore during 12th Five Year Plan period.

Export of Tyres & Tubes

Indian tyres are exported to over 75 countries worldwide. India’s share in world tyre market is 5%. During 2015-16, export of tyres & tubes was to the tune of Rs. 9077 crore. The estimated value for export of tyres & tubes for the year 2016-17 is to the tune of Rs.9718 crore.

Import of Tyres & Tubes

Tyres are imported @ Custom Duty of 10%. Tyres are also imported at concessional custom duty under various agreements such as Asia PacificTrade Agreement (8.6%), ASEANFTA (7%), Indo-SriLankaAgreement,IndoSingaporeAgreement,

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SAFTA Agreement (5%) and India-Malaysia Trade Agreement (7%). During 2015-16, import of tyres was to the tune of Rs.3375 crore. The anticipated import value of Tyres & Tubes during 2016-17 is 3770 crore.

Quality (Control) Order for Pneumatic Tyres and Tubes for Automotive Vehicles

A Quality (Control) Order for Pneumatic Tyres andTubes forAutomotive vehicleswasnotifiedby 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 donotconformtothespecifiedBureauofIndianStandards (BIS) standard and which do not bear the standard mark. This means the manufactures are required to obtain licences from BIS for use of standard mark to enable them to sell or distribute pneumatic tyres and tubes conforming to the specified standard. The Quality Control Order,2009 has come into force w.e.f. 13th May, 2011. In terms of the Clause 3(1) (f) of the said Quality Control Order, a Committee has been constituted under the Chairmanship of Additional Director General of Foreign Trade to finalize the list oftyres which are not manufactured domestically and to be imported by Original Equipment Manufacturers (OEMs). The Committee last reviewedandfinalizedalistof690sizesoftyres(not manufactured domestically) in August, 2016 which can be imported by OEMs. This list has been circulated among various stakeholders.

Salt Industry

Introduction

India is the third largest producer of salt in the world after China and USA with an average annual production of about 260 lakh ton. It is the second largest producer of iodized salt after China, with an average annual production of 60 lakh ton. At the time of independence, there used to be a shortfall in production of salt which

was met through imports. Since then, India has made tremendous progress in production of salt, achieving self-sufficiency in 1953 and exportingsalt to other countries.

Salt is one of the essential items of human consumption. The per-capita consumption of salt in the country is estimated to be 14 Kg, which includes edible and industrial salt. The current annual requirement of salt in the country is estimated to be 63 lakh ton for edible use (including requirement of cattle) and 120 lakh ton for industrial use. India exported 65.67 lakh tone of salt valued at Rs.789.45 crore during 2015-16 & during 2016-17 (up to November.) exported 40.60 lakh ton, valued at Rs.442.02 crore.

Salt is manufactured mainly by solar evaporation of seawater, sub-soil brine and lake brine. Sea salt constitutes about 82% of the total salt production in the country. Salt manufacturing activities are carried out in the coastal states of Gujarat, Tamil Nadu, Andhra Pradesh, Maharashtra, Karnataka, Orissa, West Bengal, Goa and hinterland State of Rajasthan. The 3 major salt producing States are Gujarat (75.38%), Rajasthan (9.68%) and Tamil Nadu (12.38%), which also cater to the requirement of other States.

Private sector contributes to more than 93% of the salt production, the public sector about 1.3% and the co-operative sector, about 5.7%.

Production

The targeted and actual production of salt during thelastfiveyearsareasunder:

(Figures in Lakh MT)

Year Target Production2012-13 240 245.472013-14 220 230.192014-15 270 268.872015-16 270 276.432016-17 (up to Nov.) 270 179.34

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Salt of high purity is needed for iodization and to meet the needs of industrial sector. To achieve the required level of purity by upgrading raw salt,SaltCommissionersOffice(SCO)hastilldatefacilitated establishment of 128 salt washeries /refinerieswithanannualinstalledcapacityof139lakh ton. All the units are registered with Salt Commissioner Organization.

Salt Works and Area under Salt Production

There are about 11794 salt works out of which only 5.7% i.e. 675 are big salt works contributed about 66.2% of total salt production of the country and remaining 33.8% of the total salt production is contributed by the small salt manufacturers. The total area under salt production is about 6.10 lakh acre. (Patta land, State Govt. land, Port land, Salt Department land).Out of which 58569 acres land belongs to Salt Department for manufacture of Salt. The manufacturing activities provide direct employment to about 1.11 lakh persons.

Distribution of Salt

Railways play an important role in transporting salt from the three major salt producing States to others. About 65% of edible salt is transported by rail from production centres and the remaining quantity by road/sea route. Salt is transported by rail under Preferential Traffic and sponsoredprogrammes on requirement basis. Railways grant graded concession in freight for transportation of nonrefinediodizedsaltdependingupondistance.

Iodized Salt

For human consumption, edible salt needs to be iodizedtopreventandcontrolIodineDeficiencyDisorders (IDD). SCO has been identified asthe Nodal Agency for creation of adequate salt iodization capacity, monitoring production and quality of iodized salt at production centres and monitoring distribution of iodized salt in the country, under National Iodine DeficiencyDisorders Control Programme (NIDDCP) being implemented by the Ministry of Health & Family Welfare. SCO has facilitated establishment of 706

salt iodization units including 128 refineries &washeries (capacity 139 lakh ton) with an annual installed capacity of 224 lakh ton upto March 2016. All the salt iodization units are registered with Salt Commissioner. The production and suppliesofiodizedsaltduringthelastfiveyearsis as under:-

(Figures in Lakh MT)

Year Production Supplies2012-13 61.81 58.642013-14 58.47 55.082014-15 64.54 60.592015-16 64.76 62.432016-17 (up to Nov.) 43.35 41.28

SCO periodically reviews the availability, price and quality of iodized salt, in association with state governments, iodized salt manufacturers, traders and other stake holders.

Exports

Export of common salt and iodized salt is permitted underOpenGeneralLicense(O.G.L)Indiaexportssalt to Japan, Vietnam, UAE, Qatar, Korea, China, Malaysia, Nepal, Bangladesh, Indonesia, Bhutan, Hong Cong and Singapore etc. Export of salt duringthelastfiveyearsisasunder:

Year Quantity in Lakh MT Value in Lakh Rs.2012-13 50.04 67943.952013-14 58.47 84439.782014-15 56.76 83866.582015-16 65.67 78945.422016-17 (up to Nov.)

40.68 44202.64

Labour Welfare Activities and Development Works

(i) SCO is paying special attention to the welfare of labourers engaged in salt industrybyextendingfinancialassistancefor executing various welfare schemes, viz.

- Medical facilities to salt workers and their families.

- Drinking water facilities in salt works.

- Education facilities and financialassistance to the children of salt labourers.

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- Rest sheds and crèches in salt works.

- Recreation facilities to labourers and their wards.

- Cash Rewards to the children of Salt Workers.

In addition, financial assistance is provided forundertaking various schemes for the benefit ofsalt industry. The expenditure on development andlabourwelfareworksduringlastfiveyearsisas under:-

(Figures in Lakh Rs.)

Year Development Works

Labour Welfare Works

Other Works

Total Expenditure

2012-13 5.66 91.44 24.63 121.732013-14 33.92 38.13 49.33 121.382014-15 1.52 11.63 61.76 74.912015-16 9.49 25.80 - 35.292016-17

(upto Nov.)1.18 - 29.76 30.94

(ii) Health-cum-Eye Camp & Sports Meet

In the financial year 2014-15, 23 health campsand 9 sports meets have been organized. As per scheme approved by the Ministry of Commerce and Industry for grant of rewards, during 2015-16 1255 meritorious school children of salt laborers Rs.16.73 lakh was sanctioned keeping provision of 50% awards to female children’s during the year 2015-16. During 2015-16, 9 General Health cum-Eye camps and 3 Sports Meets were organized for the welfare of salt workers and their families. It is proposed to organize 30 General Health cum eye camps and 10 sports meets for benefit &recreation of salt labourers during the year 2016-17.

(iii) Model Salt Farms

SCOismakingeffortstoeducatesaltmanufacturesin general and small salt producers in particular for improving the quality of salt to meet the stringent standards of industrial salt, in order to compete in the international market.

Three Model Salt Farms (MSF) one each at Nawa (Rajashtan), Ganjam (Odisha) & Markanam (Tamil Nadu) have been established for providing scientific know-how for the construction ofsalt works and proper brine management and transfer of technology to the salt manufacturers.

All the Model Salt Farms have been established to demonstrate the production of good quality salt by proper brine management. These are used to impart training to the salt manufacturers/workers for improving the quality of salt by re-modelling and re-alignment of the existing salt works in association with the scientists of CSMCRI, Bhavnagar.

(iv) Training for technology upgradation

With a view to educating salt workers/artisans for improving the quality of salt to meet the standards prescribed for industrial and edible salt, the Scheme “Training for technology upgradation” has been implemented by the Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, Government of India during the 12th Five year Plan period. A total number of 200 training programmes costing to Rs.3.00 Crore have been approved to be conducted during the 12th Plan period ending in 2016-17. Under this scheme 18 training programmes for technology up gradation were organized with an estimated cost of Rs.1.5 lakh each during 2014-15. Ministry of Commerce & Industry, Department of Industrial Policy & Promotion has issued the revised guidelines. As per the revised guidelines during 2015-16 two training programmes for

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master trainers were organized by the Central Salt and Marine Chemical Research Institute, (CSMCRI) Bhavnagar for 40 master trainers in two batches @ cost of Rs.5.00 lakh each. These master trainers will impart trainings to salt workers for technology upgradation. As per the revised guidelines. Besides it 2 training programmes for the Salt laboureres of Andhra Pradesh were also organized during 2015-16. During 2016-17 (up to Sept.) 2 training programmes for Salt labourers of Tamil Nadu have been organized.

Restructuring of SCO

In pursuance of Expenditure Reforms Commission Report, Office of the Salt Commissioner,Jaipurhasbeenrestructured.Outofexisting147officesonly65officeshavebeenretained.Theremaining82officeshavebeenclosed/merged.Ordershavebeen issued to reduce existing staff strengthof434 to 306.

United Nations Industrial Development Organisation (UNIDO)

Department of Industrial Policy and Promotion, Ministry of Commerce and Industry is the nodal department in Government of India for all matters related to UNIDO operations in India. The United Nations Industrial Development Organization (UNIDO) based in Vienna, Austria was established in 1966 and became a specialized agency of the United Nations in 1985 to promote industrial development and cooperation at the global, regional, national and sectoral levels. India has been an active member of the Organization since its inception. UNIDO has at present 170 countries as its members.

Aims and Objectives

(i) Promotion and acceleration of sustainable industrial development of the developing countries in order to ensure sustained socio-economic growth.

(ii) UNIDO generates and disseminates knowledge relating to industrial matters.

(iii) Provides a platform to the private sector, civil society organizations and the policy-making communities in general to enhance cooperation, establish dialogue and develop partnerships.

Organization and its Policy-making Organs

The Organization is headed by a Director- General. The main policy making organs of UNIDO are:

General Conference (GC)

The General Conference determines the guiding principles and policies of the Organization and

approves the budget and work programme. Every four years, the Conference appoints the Director- General. It also elects the members of the Industrial Development Board and of the Programme and Budget Committee. The Conference meets every two years.

Industrial Development Board (IDB)

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

Programme and Budget Committee (PBC)

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

India’s Contribution

India is a founder Member of the UNIDO. It is both a recipient as well as a contributor to the programmes of UNIDO. India contributes to the regular budget of UNIDO to Assessed Contribuiton, which currently amounts to Euros 0.8 million annually. In addition, India also makes an annual voluntary contribution of US$ 1.2 million to the Industrial Development Fund (IDF) of UNIDO. Both of these contributions are

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made from the Non-Plan Budget provision. The Voluntary Contribution has two components;

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

(ii) Special Purpose Component of US $ 1.1 million utilized for implementation of projects in India.

Country Programme of Cooperation between the Republic of India and UNIDO-2013-17

The Country Program of Cooperation between the Republic of India and UNIDO 2013-17 is under implementation. The Program aims at raising the competitiveness of industrial enterprises through technology-oriented initiatives to increase productivity, quality, energy efficiency, occupational health and safety andthe environmental sustainability of industrial production. Country Programme 2013-17 has two programmatic components viz

(i) Green Industrial Development of India

(ii) Inclusive Economic Development with Cross-cutting themes.

The Country Programme 2013-17 is under revision as some new projects have emerged and some projects have been discarded. Now, the revised budget for the projects to be taken under Country Programme 2013-17 stands at US$ 170.31 Million.

In June, 2015 the National Steering Committee of UNIDO Country Programme desired to revise Country Programme 2013-17 in order to streamline the activities and reflect therecent developments of Technical Co-operation portfolio. In addition to the planned expansion of the TC activities in energy and environment areas, the landmark establishment of IC-ISID was highlighted together with its related activities for

technology promotion in those industrial sub-sectors, i.e., leather, cement, pulp/paper and bicycles, which have been funded by DIPP.

The CP cycle was kept at 2013-2017 in view of the fact that the 12thFive Year Plan by the Government of India as well as United Nations Development Action Framework (UNDAF) are formulated and implemented within the same cycle.

The revised CP was prepared in the form of an Addendum reflecting the recent political andstrategic priorities of the Government of India, highlighting those important initiatives (such as Make in India, Smart Cities, etc.), reviewing the programmes and projects formulated and implemented since September 2013 with a revised list of projects. The current status of CP in terms of volume of funds is US$ 170 million, almost 70% increase in comparison to the original CP budget (US$ 101 million).

UNIDO International Centre for Inclusive and Sustainable Industrial Development (ICISID)

The UNIDO International Centre for Inclusive and Sustainable Industrial Development (IC-ISID),supported by the Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry Government of India, has been designed to foster a holistic approach to interlinked development strategies. This new Centre was inaugurated on 27th August, 2015 and is the result of the merger of two previously existing UNIDO Centres in India:

(i) The International Centre for Advancement of Manufacturing Technology(ICAMT)

(ii) The UNIDO Centre for South-South Industrial Cooperation (UCSSIC)

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:

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• Identifying and transferring the best and proven technology-led solutions from India to developing countries (particularly the LDCs), under the South-SouthCooperation framework.

• Promoting the introduction of advanced manufacturing technologies to the manufacturing sector in India to strengthen the productivity and competi t iveness

of SMEs through technology-led interventions.

• Serving as a model centre of excellence for promoting targeted interventions in select industrial and manufacturing sectors.

Portfolio of projects under IC-ISID

The portfolio of project under IC-ISID is as given in the table below:

Projects pertaining to Indian industries1 Leather Kanpur leather development project

2 CementDevelopment & adoption of appropriate technologies for enhancing productivity in the cement sector

3 PaperDevelopment and adoption of appropriate technologies for enhancing productivity in the paper and pulp sector

4 BicycleDevelopment and adoption of appropriate technologies for enhancing productivity in the Indian bicycle and bicycle parts sector

International projects under South-South cooperation

5 Neem PromotionofNeemderivedbio-pesticidesinWestAfrica(Ghana,Nigeria,SierraLeone)

6 KIRDIStrengthening the technical service capabilities of the Kenya Industrial Research and Development Institute (KIRDI) in collaboration with the framework of the Kenya Subcontracting and Partnership Exchange Programme (SPX)

Key updates pertaining to the projects for Indian industries

The projects pertaining to the Indian industries aim at enhancing competitiveness of select sectors and clusters. Their key components include technology demonstration and transfer of state-of-the-art technologies relevant to the Indian context, enhancement of technical capacity and skills of the key Indian technical institutions and industries, and the adoption of best practices and appropriate measures such as improved and cleaner manufacturing processes, wastemanagement,energyefficiency,etc.Abriefdescription of the activities undertaken under each of the projects in 2016 is given below:

Leather project

The project’s specific objectives are sustainable

leather processing and waste management in the leather tanneries in the Kanpur and Unnao leather clusters.

In 2016, the project activities aimed at facilitating sustainable leather processing included the development of E-learning resources and animated training materials; development of a benchmarking tool for an awarding system to promote best practices in the tanneries; ongoing training of trainers in cleaner tanning technologies; technology demonstrations in leather processing technology in 4 pilot tanneries; 6 pilot audits in best practices and sustainable production following 2 workshopsonenvironmentalcertification;on-sitedemonstration of Occupational Safety and Health (OSH) measures in tanneries and dissemination of related information; on-site trainings on cleaner technologies in 13 tanneries; 2 workshops and

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an awareness programme on pollution reducing technologies.

With reference to waste management, baseline data to assess waste generation in Kanpur-based tanneries is being collected; a concept paper for available options for conversion or disposal of solid wastes has been prepared; existing learning material and courses pertaining to waste minimization and product design have been made available to the tanneries on the LeatherPanelportal;afeasibilitystudyforwastemanagement is underway; a Cleaner Technology Core Group (CTCG) has been formed involving all stakeholders in the region; a launch event on E-learning and blended training programmes was organised on 1st October, 2016.

Cement Project

The primary objective of this project is to strengthen the capacity and capability of the National Council for Cement and Building Materials (NCCBM) to provide management and technical support to the Indian cement sector. In this direction, two key assessments were undertaken- technology benchmarking assessment and the diagnostic assessment of NCCBM, by the team of international experts. Based on these assessments, an Action Plan for NCCBM has been prepared. Further, three technical workshops were conducted on following topics:

(i) Alternate Fuels and Alternate raw materials,

(ii) Best Available Technologies and

(iii) Key Performance Indicator (KPI).

Additionally, in order to provide the requisite exposure to the scientists and engineers of NCCBM, two international study tours were organized- one focused on management/ strategy aspects (to Austria and Germany in September 2016) and the other one focussing on technology aspects (to Germany, Belgium and Poland in October

2016), covering appropriate institutions such as R&D institutes, industry associations, preparation unit for alternative fuels and cement units.

Pulp and Paper Project

The project aims to strengthen the capacity and capability of the Central Pulp and Paper research Institute (CPPRI) and nodal industry associations and enhance the competitiveness of the Indian pulp and paper sector. Under the project, four consultation meetings were organised across India with relevant stakeholders. Subsequently, two key assessments were undertaken with the help of reputed international institutions- the technology assessment by the Paper and Fibre Research Institute, Norway and the diagnostic assessment of CPPRI and industry associations by the University of Helsinki, Finalnd. Based on these assessments, an Action Plan has been prepared. Further, one technical workshop (for KPIs in the pulp and paper sector) was organized. Additionally, in order to provide the requisite exposure to the scientists and engineers of CPPRI and the representatives of the industry associations, an international study tour, focussing on management/ strategy aspects to Norway, Sweden and Belgium was organized in November 2016.

Bicycle Project

The project aims 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 United Cycle & Parts Manufactures Association (UCPMA) to provide management and technical support to the Indian bicycle sector with a view to strengthen its global competitive position. One of the key components of the project is to upgrade the testing facilities of the RDCBSM, including the reflector testingfacilitywhich assumes increased significanceon

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account of road safety aspect. The project has been recently approved and is in initial phase of commencement.

Important developments during 2016:

(i) 4th National Steering Committee meeting was held in March, 2016 under the chairmanship of Secretary, DIPP for monitoring, approval and effectivecoordination of the projects in India for UNIDO Country Programme (Addendum) 2013-17. NSC holds its meeting twice a year.

(ii) 2nd Steering Committee meeting was held in April, 2016 under the chair of Joint Secretary, DIPP. Steering Committee meeting is the main decision making body for strategic planning, overall coordination and management of ICISID. SC holds its meeting twice a year.

(iii) 50th Anniversary of UNIDO and 44th session of Industrial Development Board (IDB) was held during 21st – 25th November, 2016 at Vienna, Austria. Indian delegation led by Smt. Ravneet Kaur, Joint Secretary, DIPP attended the programmes.

Stakeholders 44th session of Industrial Development Board

Foreign Direct Investment

FDI Policy

The Government has put in place a liberal policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities. There is a small list of sectors, which are either prohibited for FDI, or are subject to restrictions in the nature of equity caps, entry route or conditionalities. Further, the FDI policy is reviewed on an ongoing basis, with a view to making it more investor-friendly. Significantchanges have been made in the FDI policy regime in recent times, to ensure that India remains an increasingly attractive investment destination. DIPP plays an active role in the liberalization and rationalization of the FDI policy. Towards this end, it has been constructively engaged in extensive stakeholder consultations on various aspects of the FDI policy.

The Department also plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. The Government has taken a number of path breaking FDI Policy reforms, including opening of new sectors for foreign direct investment, increasing the sectoral limit of existing sectors and simplifying other conditions of the FDI policy. These policy reforms are meant to provide ease of doing business and accelerate the pace of foreign investment in the country. Following are the FDI policy reforms undertaken during 2016:

E-commerce:

In order to provide clarity to e-commerce sector activities, the Government issued Guidelines for FDI on the sector. As per these guidelines, it has been clarified that 100% FDI under automaticroute is permitted in marketplace model of e-commerce. No FDI is permitted in inventory based model of e-commerce. Further, various terms like e-commerce, e-commerce entity, marketplace, inventory based model have also beendefinedtobringclarity.

Food Product Retail Trading

Withaviewtobenefittingfarmers,giveimpetusto food processing industry and create vast employment opportunities in the country, 100% FDI under Government route for trading, including through e-commerce, has been permitted in respect of food products manufactured and/ or produced in India.

Foreign Investment in Defence Sector up to 100%

Earlier FDI regime permitted 49% FDI participation in the equity of a company under automatic route. FDI above 49% and up to 100% was permitted through Government approval on case to case basis, wherever it is likely to result in access to modern and ‘state-of-art’ technology in the country. In this regard, the following changes have inter-alia been brought in the FDI policy on this sector:

(i) Foreign investment beyond 49% has been permitted through government approval

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route, in cases resulting in access to modern technology in the country or for other reasons to be recorded

(ii) FDI limit for defence sector has also been made applicable to Manufacturing of Small Arms and Ammunitions covered under Arms Act 1959.

Review of FDI Conditionalities in Single Brand Retail Trading (SBRT)

Local sourcing norms have been relaxed up tothree years for entities undertaking Single Brand Retail Trading of products having ‘state of art’

and ‘cutting edge’ technology. For such entities, sourcing norms will not be applicable up to three years from commencement of the business i.e. openingofthefirststoreforentitiesundertakingsingle brand retail trading of products having ‘state-of-art’ and ‘cutting-edge’ technology and where local sourcing is not possible. Thereafter, provisions relating to sourcing of 30% products sold from India will be applicable.

Review of Entry Routes in Broadcasting Sector

FDIpolicy on Broadcasting sector has been amended to read as under:

Sector/Activity Cap and Route

5.2.7.1.1

(1) Teleports (setting up of up-linking HUBs/Teleports);

(2) Direct to Home (DTH);

(3) Cable Networks (Multi System operators (MSOs) operating at National or State or District level and undertaking upgradation of networks towards digitalization and addressability);

(4) Mobile TV;

(5) Headend-in-the Sky Broadcasting Service(HITS)

100%

Automatic

5.2.7.1.2 Cable Networks (Other MSOs not undertaking upgradation of net-works towardsdigitalizationandaddressability andLocalCableOperators(LCOs))Infusion of fresh foreign investment, beyond 49% in a company not seeking license/permis-sion from sectoral Ministry, resulting in change in the ownership pattern or transfer of stake by existing investor to new foreign investor, will require Government approval.

Private Security Agencies

FDI limit for Private Security Agencies has been raised from 49% to 74%. FDI up to 49% is permitted under automatic route in this sector and FDI beyond 49% and up to 74% would be permitted with Government approval.

Pharmaceutical

(i) With the objective of making the sector more attractive to foreign investors and providing ease of doing business in the country, FDI up to 74%, under automatic route has been permitted in brownfieldpharmaceuticals. FDI beyond 74% has

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been allowed through Government approval route.

(ii) ‘Non-compete’ clause would not be allowed in automatic or government approval route except in special circumstances with the approval of the Foreign Investment Promotion Board.

(iii) FDI inbrownfieldpharmaceuticals,underboth automatic and government approval routes, will be subject to compliance of following conditions:

a) The production level of National List of Essential Medicines (NLEM)drugs and/or consumables and their supply to the domestic market at the time of induction of FDI, being maintainedover thenextfiveyearsat an absolute quantitative level. The benchmark for this level would be decided with reference to the level ofproductionofNLEMdrugsand/orconsumables in the three financialyears, immediately preceding the year of induction of FDI. Of these, the highest level of production in any of these three years would be taken as the level.

b) R&D expenses being maintained in value terms for 5 years at an absolute quantitative level at the time of induction of FDI. The benchmark for this level would be decided with reference to the highest level of R&D expenses which has been incurred in any of the three financial yearsimmediately preceding the year of induction of FDI

c) The administrative Ministry will be provided complete information pertaining to the transfer of

technology, if any, along with induction of foreign investment into the investee company.

Civil Aviation Sector

(i) With a view to aid in modernization of the existing airports to establish a high standard and help ease the pressure on the existing airports, 100% FDI under automatic route has been allowed in BrownfieldAirportprojects.

(ii) FDI limit for Scheduled Air Transport Service/ Domestic Scheduled Passenger Airline and Regional Air Transport Service has been raised to 100%, with FDI up to 49% permitted under automatic route and FDI beyond 49% through Government approval. For NRIs, 100% FDI will continue to be allowed under automatic route. However, foreign airlines would continue to be allowed to invest in capital of Indian companies operating scheduled and nonscheduled air transport services up to the limit of 49% of their paid up capital and subject to the laid down conditions in the existing policy.

Establishment of branch office, liaison office or project office

Forestablishmentofbranchoffice, liaisonofficeorprojectofficeoranyotherplaceofbusinessinIndia if the principal business of the applicant is Defence, Telecom, Private Security or Information and Broadcasting, approval of Reserve Bank of India would not be required in cases where FIPB approval or license/permission by the concerned Ministry/Regulator has already been granted.

Animal Husbandry

As per FDI Policy 2016, FDI in Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture and Apiculture was allowed up to

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100% under Automatic Route under controlled conditions. This requirement of ‘controlled conditions’ for FDI in these activities has now been removed.

Insurance and Pension Sector:

FDI Policy on Insurance sector was reviewed in view of amendment to the Insurance Laws(Amendment) Act 2015 to increase the sectoral cap of foreign investment from 26% to 49%. Further, it has been provided that FDI in the sector would be permitted under automatic route. Similar changes have also been brought in the FDI Policy on Pension Sector.

Other Financial Services:

Government reviewed FDI policy on Other Financial Services and NBFCs to provide that foreign investment infinancial servicesactivitiesregulated by financial sector regulators such asRBI, SEBI, IRDA etc. will be permitted for 100% FDI under the automatic route. In financial services,which are not regulated by any financial sector

regulator or where only part of the financialservice activity is regulated or where there is doubt regarding regulatory oversight, foreign investment up to 100% will be allowed under the government approval route.

FDI Inflows

Total FDI into India, since April, 2000 including equity inflows, reinvested earnings and othercapital is US$ 467.35 billion (April, 2000 – November, 2016). During the calendar year 2016 (uptoNovember,2016),FDIequityinflowsofUS$43.06 billion have been received. This represents increaseof24%overtheFDIequityinflowsofUS$ 34.69 billion received during the corresponding period.

The FDI equityduring the current financial year2016-17 (up to November, 2016) surged by 31% to US$ 32.50 billion from US$ 24.81 billion in the year-ago period. Further, during the last 32 months i.e. April, 2014 to November, 2016, FDI equity inflow recorded a growth of 54% fromUS$ 67.30 billion to US$ 103.43 billion over the preceding period of 32 months (August, 2011 to March, 2014).

Investment Promotion & International Cooperation (IP&IC)

Investment Promotion and International Cooperation (IP&IC) for enhancement of external economic engagement is undertaken through bilateral as well as multilateral arrangements. There are four IP&IC divisions in DIPP to carry out the said functions, viz. IP&IC-I (Asia–Oceania region- Excluding West Asia and Japan), IP&IC-II (Europe), IP&IC-III (North & South America and CIS Countries) and IP&IC-IV (Africa and Middle East). Investment Promotion and International Cooperation activities in r/o Japan are handled by ID-I Division.

IP&IC Divisions are responsible for dissemination of information about investment climate and opportunities in India and investment facilitation.

IP&IC Divisions’ endeavor to increase economic cooperation with developing, as well as developed countries, formutual benefits through differentfora, such as Joint Commissions/ Joint Committees, other bilateral channels like interaction with the delegations visiting the country, organizing visits abroad for discussions on issues of mutual interest and business/ investment meets between Indian and foreign entrepreneurs, with the aim of stimulating foreign investment into India. DIPP is also the nodal department for all bilateral as well as multi-lateral CEOs’ Fora which is primarily engaged in promoting B2B engagements for promotion of economic relation.

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

(i) Organization of Joint Commission Meetings;

(ii) Organization of business and investment promotion events;

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

(iv) Establishment of G2B portal/ e-Biz Pilot Project;

(v) Foreign Travel;

(vi) Setting up of country focus desks for promoting investment;

(vii) Multi media audio visual campaign; and

(viii) Creation of a dedicated investment promotion agency.

IP&IC Divisions act as nodal point for the following Joint Commissions/ Inter-Governmental Commissions:

(i) TheIndia-LibyaJointCommission

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

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

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

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

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(vi) India-Taiwan Secretary-Vice Ministerial level Economic Consultations.

The major activities undertaken by IP&IC Divisions during 2016-17 were as under:

(A) Major Investment promotion events/Conferences/JCMs held abroad

• India–Hungary Joint Commission on Economic and Co-operation (JCEC): The India- Hungary JCEC was established under the aegis of an agreement on Economic Co-operation signed by India and Hungary in Budapest on 23rd June, 2005. The 4th session of the JCEC was held in Budapest, Hungary during 2-3 June, 2016.Secretary,DIPPledanofficial-cum-business delegation to attend the JCEC. A protocol was signed during the meeting.

• St. Petersburg International Economic Forum (SPIEF) The Forum was held during June 16-18, 2016 at St. Petersburg, Russian Federation. Shri Ramesh Abhishek, Secretary, Department of Industrial Policy & Promotion participated in SPEIF 2016 at St. Petersburg. Secretary, IPP also attended and addressed the India-Russia Business Dialogue during the event. A meeting of the re-constituted India-Russia CEO Forum was also organized on the sidelines. Secretary, IPP addressed the CEOs of the two sides. He also had meetings with Russian Minister of Industry Mr. D. V. Manturov and Russian Deputy Minister for Economic Development on the sidelines of SPIEF.

• India-Spain CEOs Forum: Preliminary meeting of India-Spain CEOs Forum and FICCI IIFA Global Business Forum were organised in Madrid, Spain on 24th-25th June, 2016. Dr. Subhash Chandra Pandey, Additional Secretary & Financial Advisor, DIPP attended the said meeting.

• India–South Africa CEO’s Forum: The 3rd Meeting of India–Africa CEOs’ Forum was organised on 8th July, 2016 in Pretoria South Africa. Shri Ramesh Abhishek, Secretary, Department of Industrial Policy & Promotion (DIPP) attended the meeting. In his address at the CEOs’ Forum Secretary, DIPP provided the perspective of Indian Government on future economic engagement with South Africa. Further, the Indian members of the CEOs Forum had an exclusive interaction with Secretary, DIPP to discuss specificissues which they are facing while doing business with South Africa.

• India–Kenya Business Forum: The meeting of India –Kenya Business Forum coordinated by FICCI, was organized on 11th July, 2016 in Nairobi, Kenya coinciding with the visit of Hon’ble Prime Minister. Secretary, DIPP attended the meeting along with the Indian business delegation representing major Indian industrial/business houses. During the meeting, presentations were made by KenInvest and Invest India highlighting the incentives offered by both the countries to attractinvestments.

• Meeting with officials of Govt. of Mauritius: An official delegation led byShri Manoj Dwivedi, Joint Secretary, Deptt. of Commerce visited Mauritius from 12-13 September, 2016 to have a fresh look at the present trade scenario as part of effortstotakeforwardtheIndia–MauritiusComprehensive Economic Cooperation Partnership Agreement(CECPA) talks. Shri Shailendra Singh Joint Secretary represented Deptt. of Industrial Policy & Promotion in the meeting. A presentation was made on the investment opportunities in India. It was highlighted that several

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schemes such as ‘Make in India’; ‘Digital India’; ‘creation of 100 Smart Cities’ and ‘Start-up India’ had been devised to streamline procedures and encourage investment in India.

• Make in India Mittelstand (MIIM): Make in India Mittelstand (MIIM) Roundtable held in Frankfurt, Germany from 16-18 September, 2016. Shri Ramesh Abhishek, Secretary (IPP) and Shri Atul Chaturvedi, Joint Secretary attended the roundtable.

• India- Italy Business Forum: A meeting of the Forum was organized in Rome, Italy from 19-21 September, 2016. Shri Ramesh Abhishek, Secretary (IPP) and Shri Atul Chaturvedi, Joint Secretary, DIPP attended the same.

• India-Sri Lanka Business Forum, Ceylon, Sri Lanka:India-SriLankaBusinessForummeeting was organized in association with Embassy of India in Ceylon, Sri Lanka on 27th September 2016. Ms Nirmala Sitharaman, Minister of State (I/C), Commerce & Industry delivered the Keynote Address at the opening session.

• India-China Joint Working Group (JWG) on cooperation on Industrial Parks, Beijing, China: The 3rd India-China JWG on cooperation on Industrial Parks was held in Beijing, China on 2nd November 2016. A five member delegation led byJoint Secretary, DIPP participated in the meeting.

• ‘Make in India’ Road show, China: ‘Make in India’ Road shows were organized in association with Embassy of India in China on 3rd November 2016 in Beijing and on 4th November, 2016 in Zhengzhou, Henan.

• ‘Make in India’ Road show, Seoul, Republic of Korea: ‘Make in India’ Road show including the LauncheventforKoreaPlus was organized in Seoul 9th November, 2016 in association with Embassy of India in Seoul, South Korea and Invest India.

• India-Taiwan Joint Working Group (JWG), Taipei, Taiwan: The 1st meeting of India-Taiwan Joint Working Group (JWG) was held on 27th December 2016 in Taipei, Taiwan to follow up the decisions taken in the 9th Secretary-ViceMinisterial LevelEconomic Consultations (ITEC) between India and Taiwan.

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

• India-Korea Infrastructure Forum: ‘India-Korea Infrastructure Forum’ was organized in New Delhi in association with KOTRA and Embassy of Korea, New Delhi on 17th June 2016. Ms Nirmala Sitharaman, Minister of State (I/C), Commerce & Industry and Minister of Trade, Industry and Energy, Korea graced the occasion.

• India-Russia Sub-Group on Modernization: The 5th meeting of India-Russia Sub-Group on Modernization under the Working Group on Modernization and Industrial Cooperation was held in New Delhi on August 17, 2016 which was co-Chaired by Deputy Director of the Department of Strategic Development and Project Management of Ministry of Industry and Trade of the Russian Federation from the Russian side and by Joint Secretary, Department of Industrial Policy & Promotion from the Indian side.

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• India-Russia Working Group on Modernization and Industrial Cooperation (JWG): The 5th meeting of the JWG was organised in New Delhi on August 18, 2016 which was co-Chaired by Mr. Alexander Potapov, Deputy Minister of Industry and Trade of the Russian Federation from the Russian side and Shri Ramesh Abhishek, Secretary, Department of Industrial Policy & Promotion from the Indian side. A Protocol was signed by the two sides highlighting the areas of cooperation in sectors like Civil Aviation, Fertilizers, Mines, Energy & Hydrocarban sector, Metallurgy, Electronics & Information Technology, Chemicals & Petrochemicals, Pharmaceuticals, Coal, Transportation and Industrial Machinery, Power, Urban Development, Shipbuilding industry, Water treatment and Industry sector.

• India-US Strategic and Commercial Dialogue: The second meeting of the Commercial track of the India US Strategic and Commercial Dialogue was organised during August 29-30, 2016 in New Delhi which was co-Chaired by the Minister of State (I/C) for Commerce and Industry, Ms Nirmala Sitharaman from the Indian side and US Commerce Secretary, Penny Pritzker from the US side. Under the Commercial Dialogue, DIPP coordinates two Working Groups namely Ease of Doing Business and Innovation and Entrepreneurship. Both sides reviewed the progress made under the two Working Groups and agreed to continue dialogue and exchange of information for enhanced cooperation in these areas.

Ms. Nirmala Sitharaman, MoS (I/C) for Commerce & Industry with US Commerce Secretary Ms. Penny Pritzker during India-US Strategic and Commercial Dialogue, New Delhi, August 30, 2016.

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• India-US CEOs Forum: The third meeting of the re-constituted India-US CEOs Forum was organised in New Delhi on August 30, 2016. The Minister of State (I/C) for Commerce and Industry, Ms Nirmala Sitharaman and US Commerce Secretary Penny Pritzker led the two sides in the meeting. The meeting was attended by the Indian and US co-Chairs Mr. Cyrus Mistry and Mr. Dave Cote respectively. In the meeting, the two co-Chairs submitted a comprehensive report including action taken report on the previous recommendations of the Forum and a set of newrecommendationsinspecificsectorsfor enhancement of bilateral economic relation between the two countries. Both Sides appreciated the follow-up action by different government departments andagencies on the recommendations made

by the CEO Forum in 2015.

• India-Russia Working Group on Priority Investment Projects: The 4th meeting of the India-Russia Working Group on Priority Investment Projects was organised on September 13, 2016, in New Delhi which was co-chaired by Shri Ramesh Abhishek, Secretary, Department of Industrial Policy & Promotion and Mr. A.V. Tsyboulsky, Deputy Minister of Economic Development of the Russian Federation. A Protocol was signed by the two sides highlighting the areas of cooperation in sectors like Chemicals & Petrochemicals, Heavy Industries, Revenue, Civil Aviation, Defence, Fertilizers, Mines, Road Transport & Highways, Urban Development, Space, Electronics and Information Technology, Petroleum & Natural Gas, Steel, etc.

Shri Ramesh Abhishek, Secretary, DIPP and Mr. A.V. Tsyboulsky, Deputy Minister of Economic Development, Russian Federation at the 4th meeting of India Russia Working Group on Priority

Investment Projects on September 13, 2016, in New Delhi

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• India-US Trade Policy Forum: Ms. Nirmala Sitharaman, Minister of State (I/C) for Commerce and Industry and the US Trade Representative Ambassador Michael Froman met in New Delhi on October 20, 2016, for the tenth ministerial-level meeting of the India and United States Trade Policy Forum (TPF). The two Ministers agreed that the TPF has greatly strengthened India-US engagement on bilateral trade and investment and has enhanced the overall economic relationship. Shri Ramesh Abhishek, Secretary, IPP and Ambassador Holleyman, Deputy US Trade Representative co-chaired the meeting of the Working Group on Intellectual Property and Working Group on Promoting Investment in Manufacturing under TPF and reviewed the progress achieved in bilateral discussions held during the last one year.

• India-UK CEOs Forum: The 3rd Meeting

of the Forum was organised on 7th November, 2016 in New Delhi. The Meeting was co-chaired by Mr. Ajay Piramal, Chairman, Piramal Enterprises Ltd. from Indian side and Sir GerryGrimstone,Chairman,StandardLife fromUK side. The Prime Minister of India and the Prime Minister of UK participated in the event. Both the Co-chairs presented a letter of recommendations to both the Prime Ministers highlighting the outcome of the forum meeting and the action plan going forward.

• India Sweden Business Round Table: The First Meeting of India-Sweden Business Round Table was organized on November 9, 2016 at New Delhi. The meeting was co-chaired by Mr. Baba N Kalyani, Chairman and Managing Director, Bharat Forge Ltd. from Indian side and Mr. MarcusWallenberg, Chairman, SEB from Sweden side.

Ms. Nirmala Sitharaman, MoS (I/C) for Commerce & Industry in a bilateral meeting with the Minister forEnterprise&Innovation,Sweden,Mr.MikaelDamberg,duringthefirstmeetingoftheIndia-

SwedenBusinessLeaders’RoundTable,NewDelhi,November09,2016.

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• ‘Make in India’ work shop: ‘Make in India’ work shop was organized on 19th November 2016 in association with North Orissa Chamber of Commerce & Industry (NOCCi), Balasore, Odisha on the sidelines ofPLASTFUTUREEAST-2016heldduring18-20 November, 2016.

• India-Indonesia CEO’s Forum: The first meeting of the re-constituted India- Indonesia CEO’s Forum was held on December 12, 2016 in New Delhi in association with CII on the sidelines of the visit of H.E. Mr. Joko Widodo, President

of the Republic of Indonesia to India on December 12-13, 2016.

(C ) Other important activities

• Launching of KOREA PLUS: Ms Nirmala Sitharaman, Minister of State (I/C), Commerce & Industry and Mr. Joo Hyunghwan, the Hon’ble Minister of Trade, Industry & Energy, Government of the Republic of Korea, launched KOREA PLUS,aspecial initiative topromoteandfacilitate Korean Investments in India on 18th June 2016 in New Delhi.

Ms. Nirmala Sitharaman, MoS (I/C) for Commerce & Industry at the launch of Korea Plus, New Delhi, June 18, 2016.

• Cooperation in the field of advanced training of corporate executives from India in Germany through Indo-German Managers’ Programme: As part of the Joint Declaration signed between India and Germany in 2008,

Indian managers have been undergoing training in Germany. The programme has been extended till 2017 through a new Joint Declaration signed in 2015. The 1st meeting of the Steering Committee of the Indo-German Managers’ Programme

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was held in Berlin on January 13, 2014 and the 2nd Meeting was held on 18th October, 2016 at New Delhi.

The programme is being implemented by Deutsche Gesellschaft für Internationale

Zusammenarbeit (GIZ), GmbH from Germany and CII and FICCI from India. DIPP is handling the inter se coordination between the two sides. Around 600 Indian managers have undergone the training since the launch of the programme.

Protection of Intellectual Property Rights

India – A Robust, TRIPS compliant IPR Regime

Inthe21stcentury,anation’sprogressisdefinedby its knowledge economy, which is driven by leveraging the creative capabilities and talent for innovation. A vibrant Intellectual Property (IP) ecosystem enhances the economic development of a nation, and also promotes public welfare by protecting the rights of all its citizens.

India has a well-established legislative, administrative and judicial framework to safeguard Intellectual Property Rights, which meets its international obligations while utilizing the flexibilities provided in the internationalregime to address its developmental concerns. India has a TRIPS compliant, robust, equitable and dynamic IPR regime.

The Indian IP system maintains a fine balancebetween private rights through IPRs on one hand, and rights of the society as public interest on the other hand. TRIPS Agreement has allowed policy space to countries to evolve a regime that best suits its condition. This policy space is a sine qua non for sustainable development of the country.

India is a party to Doha Declaration on the TRIPS AgreementandPublicHealthwhichclarifiesthatTRIPS agreement does not and should not prevent members from taking measures to protect public health.

Allocation of Business

The second schedule to the Government of India

(Allocation of Business) Rules, 1961 mandates and entrusts the Department of Industrial Policy and Promotion, inter alia, with the subject matter of Protection of Intellectual Property Rights. These responsibilities are discharged within a well-definedandstructuredlegislativeframeworkwhich comprises of the following Acts, supported by rules made thereunder:

1. The Patents Act, 1970 (amended in 1999, 2002 and 2005) [administered through thePatentOffice(HQ),Mumbai,Chennaiand Delhi]

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

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

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

5. The Copyright Act, 1957, as amended last in 2012.

6. Layout of transistors and other circuitryelements is protected through the Semi-conductor Integrated Circuits Layout-Design Act, 2000.

This Department is also responsible for coordinating all issues relating to the World

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Intellectual Property Organization (WIPO).

To support the Legislative framework,the Department has in place a dedicated administrativearchitectureofvariousofficeswithclear demarcation of responsibilities.

Office of the Controller General of Patents, Designs and Trade Marks (CGPDTM)

TheOffice of the ControllerGeneral of Patents,Designs and Trade Marks (CGPDTM), a subordinate office,withheadquartersatMumbai isprimarilyconcerned with the issues relating Patents, Trade Marks, Designs and Geographical Indications.

Geographical Indication Registry (GIR)

The GIR is a statutory organizationset up for the administration of the Geographical Indications of Goods (Registration & Protection) Act, 1999 which came into force on 15th September, 2003. The Registry is situated at Chennai. A total of 282 Geographical Indications (GIs) have been registered as on 31st December, 2016 in India, including 12 foreign products.

Registrar of Copyright

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. The Copyright officewas established in 1958 under section 9(1) of the Copyright Act, 1957. It is headed by the Registrar of Copyrights, and situated in Delhi. The main functionof theCopyrightoffice is toundertakeregistration of copyrights. Copyright subsists in the following classes or works:

• Original literary, dramatic, musical, and artistic works;

• Cinematographicfilms;and

• Sound Recording

Semi-Conductor Integrated Circuits Layout Design Registry (SCILDR)

The objective of this implementing Unit is to act as a catalyst for generation of Intellectual Property of Semiconductor Integrated Circuits Layout Designs and implement the provisionsof theSemiconductor IntegratedCircuitsLayoutDesign Act 2000. The Registry was established with Head Office atMinistry of Electronics andInformation Technology (MeitY), the erstwhile DeitY, vide notification dated 1st March 2004and was operationalised w.e.f. 1st May 2011. So as to bring all IPR related activities under a single umbrella, the subject matter related to the Semiconductor Integrated Circuits LayoutDesign(SICLD)Act2000andtheSemiconductorIntegrated Circuit Layout Design (SICLD) Rules2001 has been transferred to this Department in December 2016 consequent to amendment in the Government of India (Allocation of Business) Rules, 1961. The Registry examines the layout designs of the Integrated circuits and issues the Registration Certificate to the original layoutdesigns of semiconductor Integrated Circuits. Two Semiconductor Integrated Circuit LayoutDesigns has been registered so far, of which 1 was registered last year.

Intellectual Property Appellate Board (IPAB)

IPAB has been set up at Chennai to hear appeals against the decisions of Registrar of Trademarks, Geographical Indications and the Controller of Patents.

Copyright Board (CRB)

CRB is a quasi-judicial body under Scetion 111 of Copyright Act 1957 to hear appeals against the orders of the Registrar of Copyright. It is also vested with original jurisdiction in certain cases, as provided in the Copyright Act.

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National IPR Policy

Creativity and innovation have been a constant in growth and development of any knowledge economy. Knowledge, in the form of Intellectual Property Rights (IPRs), is the currency of the future. It was in recognition of this fact that a Think Tank was set up in October 2014 with the mandate to prepare a draft National IPR Policy, synergizing the hitherto spread out activities and to bring clarity of objectives.

The Think Tank adopted an all-inclusive and consultative process involving various Ministries/ Departments and other stakeholders to submit a draft of the National IPR Policy in April, 2015. Thiswas then takenupbyDIPP forfinalization.This policy has been formulated after intensive stakeholder consultations with nearly 300 stakeholders and individuals, including 31 departments of the Government of India. The policy was adopted by the Government of India on 12th May, 2016.

The policy lays the framework of the future of IPRs in India, including the short, medium and long term action plans. The policy promotes the creation of a holistic and conducive ecosystem to catalyze the full potential IP for India's economic growth and socio-cultural development.

The policy recognizes the need for coordinated efforts from all Ministries/ Departments andother stakeholders to take forward the vision and mission of the policy and to work together towards a more creative and innovative India. The seven objectives, intended to be achieved through 170 actionable points, are as follows:

Objective 1: IPR Awareness: Outreach and Promotion - To create public awareness about the economic, social and cultural benefits of IPRs among all sections ofsociety

Objective 2: Generation of IPRs - To stimulate the generation of IPRs

Objective 3:LegalandLegislativeFrame-work - To have strong and effective IPRlaws, which balance the interests of rights owners with larger public interest

Objective 4: Administration and Manage-ment - To modernize and strengthen service oriented IPR administration

Objective 5: Commercialization of IPRs - Get value for IPRs through commercialization

Objective 6: Enforcement and Adjudica-tion - To strengthen the enforcement and adjudicatory mechanisms for combating IPR infringements

Objective 7: Human Capital Development - To strengthen and expand human resources, institutions and capacities for teaching, training, research and skill building in IPRs

Since the implementation of the policy requires collaboration at inter-departmental level, an IPR dashboard has been created by DIPP and NIC to monitor the progress of the action points, whereNodalDepartments/Ministries,specificallyidentified for specificobjectives, canupload themilestones with respect to action points assigned to them under the Policy. Timelines will be assigned to milestones under each Department for monitoring progress on a real time basis.

Cell for IPR Promotion and Management (CIPAM)

The Cell for IPR Promotion and Management (CIPAM) has been set up as a professional body under the aegis of the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry to coordinate the implementation of the National IPR Policy. CIPAM is working to ensureeffective implementationof theNationalIPR Policy 2016 in collaboration with various

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stakeholders in its journey of making a Creative and Innovative India, working hand in hand with the office of the Controller General ofPatents, Designs & Trade Marks (O/o CGPDTM). In collaboration with Industry Associations, 19 awareness programmes were held in June - July 2016 across 18 states.

Towards strengthening the enforcement mechanism, CIPAM organized seven batches of trainingprogrammes forPoliceofficials in Stateof Andhra Pradesh and a three-day interactive trainingprogrammeforAPOsandPoliceOfficialsin State of Uttar Pradesh. Trainees enacted plays and participated in quizzes and other activities based on IPRs. CIPAM is also coordinating with state police and judicial academies to undertake training of police and judicial officers onEnforcement of Intellectual Property Rights.

India-USA Workshop on Protection of Trade Secrets was successfully organized by CIPAM in October 2016 in DIPP to discuss various aspects related to Trade Secrets and its impact on Industry.

National Design Policy

National Design Policy was announced in 2007. The policy envisages a keyrole for designin enhancing the competitiveness of Indian industry.The focus is on spread of design education, branding of Indian designs and the establishment of a Design Council. The vision for a National Design Policy envisages the following:

1. Preparation of a platform for creative design development, design promotion and partnerships across m any sectors, states, and regions for integrating design with traditional and technological resources;

2. Presentation of Indian designs and innovations on the international arena through strategic integration and cooperation with international design organizations

3. Global positioning and branding of Indian designs and making “Designed in India” a by-word for quality and utility in conjunction with “Made in India” and “Served from India’

4. Promotion of Indian design through a well-defined and managed regulatory,promotional and institutional framework

5. Raising Indian design education to global standards of excellence

6. Creation of original Indian designs in products.

Bilateral negotiations

DIPP has already in place Memoranda of Understanding for Cooperation on capacity building, human resource development and awarenessgeneration in thefieldof IntellectualProperty with WIPO, South Centre, European PatentOffice,andMinistryofEconomy,Financeand Industry, of the Republic of France as also a Memorandum of Cooperation with Japan Patent Office(JPO).

Latest in the series are Memoranda ofUnderstanding signed with Intellectual Property Office of Singapore (IPOS), and IntellectualPropertyOfficeofUnited Kingdom (UK IPO), inthe months of October and November, 2016, respectively.

Achievements in the field of IPRs

1. Infrastructure

Additionalrequirementofofficespaceandexpansion of present IPO Buildings at IPO locations has become necessary in order to accommodate additional manpower beinginducted.Officespaceexpansionisbeing carried out at IPO Mumbai and IPO Chennai since 2015.

2. Human Resources

Recruitment process for 459 vacant posts of Examiners of Patents & Designs, which

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includes 252 posts created under 12th plan and earlier vacant posts carried forward has been completed by National Productivity Council.

As of 31 December 2016, 394 selected candidateshavejoinedtheoffice,addingto the existing strength of 130 examiners. Whilethefirstbatchof286examinershavecompleted their training and are engaged in actual examination work, the second batch of 108 examiners is undergoing training at the respective patent officelocations.

The proposal to fill up 58 posts ofExaminers of Trade Marks & Geographical Indications by direct recruitment has been sent to UPSC. 27 posts of Deputy Controllers and 49 posts of Assistant ControllersinPatentOffice,createdunder12th Plan, have been filled up throughthe promotion mode. Further, four Senior Examiners of Trademarks and Geographical Indications, who were selected through direct recruitment by Union Public Service Commissionhave joined in theOfficeofCGPDTM.

100 Contract Examiners for Trade Marks have been recruited by the office ofController General of Patents, Designs and Trademarks so as to reduce the pendency of applications awaiting examination in trademarks in the Trade Marks Registry.

3. Comprehensive Payment gateway

Electronic payment gateway for PCT application fees has been introduced w.e.f. 1st April 2016, to avoid delay in transmission of fees for PCT applications to International Bureau and International Searching Authority. This encourages cashless transactions.

4. Facilities for Startups

Patents (Amendment) Rules 2016, enacted on 16th May 2016, provides special fee concession to startups in respect of their patent applications. Startups have to pay patentfeesincludingfilingfeeatparwitha natural person only; thereby providing 80% fee concession in patent fees as compared to other legal entities. So far, 61 Start Ups have availed benefit of feerebate.

5. Redesigned IPO Website

The website of Controller General of Patents, Designs and Trade Marks, www.ipindia.nic.in, has been redesigned to make it more informative, interactive and user-friendly. A Comprehensive and Dynamic Patent Search Portal has been developed on the IPO website. The status of patent applications including publication, examination and grant as well as all post- publication patent documents are available freely for public search through this portal.

6. E-Filing

E-filing module has been made fullycompatible for online filing of all Formsand entries of the First Schedule of Amended Patents Rules of 2014 and 2016; new provisions of Patents (Amendment) Rules 2016 like withdrawal of applications, expedited examination, etc. have been suitably incorporated. The facility for onlinefilingofTradeMarkapplicationsandsubmission of other Forms in trademarks has been provided.

Onlinefilingofpatentapplicationsandallrelated forms has been made mandatory for Patent Agents through Patents (Amendment) Rules 2016.

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7. Madrid Protocol for International Registration of Trade Marks

Trade Marks Act and rules enable India to accede to the Madrid Protocol which i sa simple, facilitative and cost effectivesystem for international registration of trademarks.

Till 31st December, 2016, 31,276 international applications seeking protection of trademarks in India have been for warded by WIPO to the Indian TrademarkOfficeforconfirmingprotectionof such marks in India. On the other hand, Indian Trade Marks Office received 559applications for international registration of trademarks under the Madrid Protocol, out of which 508 applications have been certified and for warded to the WIPOand 340 such applications have been registered at the International Bureau of WIPO.

8. International Search Authority and the International Preliminary Examining Authority

India operationalized the International Search Authority/International Preliminary Examining Authority (ISA/IPEA) status on the 15th October, 2013. The ISA/ IPEA functions with a full-fledged setup at the new premises 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 .

As on 31st December, 2016, the Indian Patent Office has received 2044international applications choosing India as ISA, requesting for international search

reports and 47 applications choosing India as IPEA for international preliminary examination.

9. IPR Awareness and Training Activities

Theofficeof CGPDTMprovides financialsupport for conducting IP-awareness programmes to FICCI, CII, ASSOCHAM and other public organizations. 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 officers are nominated as resourcepersons for the IP-awareness programmes conducted by universities, industries, CSIR, NRDC etc.

Annual National IP Awards are distributed every year on 26th April on the occasion of World IP-Day. Intellectual Property Offices at all locations also organizevarious activities on the occasion of World IP- Day.

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.

10. Quality Management in Processing of IP Applications:

Patents

Computerization and IT-enabled functioning of Patent Office and computerized work-flow for patentprocessing has resulted in enhanced

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speed of patent processing, examination and grant, improved service to stake holders, transparency and reliability.

Asignificantachievementduringthisyearis removing the discrepancy earlier existing amongfourbranchofficeswithrespecttotime when RQs in the same group used to be taken up for examination. Requests of Examination (RQ) across four branch office filed in a particular examinationgroup have been merged to form a single queue based on RQ Filing Date, which are allocated for examination automatically through a system. Thus, auto-allocation of Requests of Examination (RQ) is irrespective of the number of examiners /controllers at a specific patent officelocation. Further, physical presence of an examiner at a particular location has also becomeinsignificant.

Trade Marks

Computerized module-based system has been adopted for all functions involved in the registration of trademarks and maintenance of register of trademarks

A Pre-Registration Amendment Section has been created at each of the five branches of the Trade Mark Registry to attend to corrections/ amendments in the computer records of applications for registration of trademarks on publication and issue Registration Certificates withcorrect details, as and when required.

Process of hearing has been streamlined and only those cases are set down for hearing where objection raised in the examination report could not be waived after consideration of the reply. In this regard, all cases in which hearing was already set down by December 2015 were reconsidered.

Process of Registration has been automated in August 2016 which has speeded up the disposal. Up to December 2016, 1,60,363 Trademarks have been registered against 65045 registered in 2015-16.

Process of renewal of trademarks has been automated.

IP Panorama

1. Background

With the growth of the IT industry as well as other technical sectors, there is an urgent need to protect the IPR generated out in India. Scientists and scholars alike need to be able to protect their ideas and ensure that their Intellectual property is protected.

Itistofillthisveryimportantlacunathatthe Patent Analysis Management System has been conceived and designed. It is specially targeted for SME sector for sharing/dissemination of knowledge to the concerned/interested parties on analysis of Indian ICT patents and protection of Indian ICT IP. Also, it creates awareness in the IPR Domain which is necessary for any country & its R&D institutions to keep abreast of latest developments/happenings so as to create a niche for itselfinvarioustechnologicalfields.

2. Contents

Taking advantage of the digital media, a customized version of WIPO’s IP Panorama, a user friendly e-learning multimedia toolkit has been developed by the Ministry of Information Technology (MeitY), formerly Department of Information Technology (DeitY). The prime purpose and focus of the IP Panorama is to

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create IPR awareness among the targeted stakeholders comprising MSMEs, startups and academia in India in the ICTE domain using the animation based multimedia technologies. The first 5 modules ofIP Panorama developed by MeitY in consultation with O/o CGPDTM and DIPP were launched on 31.3.2016 in DIPP, Udyog Bhawan, New Delhi in the presence of Mr. Francis Gurry, Director General, World Intellectual Property Organization (WIPO).

The following 5 modules were launched:

1. Importance of IP for SMEs

2. Trademark

3. Industrial Design

4. Invention and Patent

5. Patent information

3. Benefits

This portal provides all the means to keep watch on IP search which is required not only to generate unique IP but also to ensure avoidance of infringement and also take necessary actions to prevent/minimize or curb violation of its IP by

others. This portal is a platform through which you may like to avail listed services such as IPR Query, Prior art Search, Invention Analysis etc.

Amendments in Patent Rules

The Patent Rules, 2003 have been amended to streamline processes and make them more user friendly. Provisions have been included for condoning delay due to war/ natural calamities. For the first time, refund of fees in certaincases has been permitted, as also withdrawal of application being permitted without any fees. Time lines have been imposed to ensure speedy disposal, the number of admissible adjournments have been limited.

Applications can be transferred electronically from any of the Patent Office branches toanother, utilizing specialized technical manpower more efficiently. Expedited Examination is nowpermitted on certain grounds.

Special provisions have been made for start-ups whereby they will get 80% rebate in fees vis-à-vis other companies as also expedite their application. So far, 61 Start Ups have availed benefitoffeerebate.

Global Innovation Index (GII)In the recently released GII 2016 report, India has moved up by 15 places, reaching a rank of 66.

Indiamovedupby2ranksto6thpositioninLowerMiddleIncomeEconomies.Thereportmentionsthat“India is a good example of how policy is improving the innovation environment”.

A Task Force on Innovation has been constituted with industry experts to suggest ways to strengthen the innovative eco-system in the country, as also improve the GII ranking.

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Scheme for Start-Up Intellectual Property Protection (SIPP)

A scheme was launched for facilitating Start-Ups’ Intellectual Property Protection (SIPP) to encourage innovation and creativity in Start-Ups.

The Government shall bear the entire costs of the facilitators for any number of patents, trademarks or designs by start-ups.

All start-ups which meet the criteria defined under the Startup India scheme are eligible for availing facilitation under the SIPP scheme. There is no need for a certification of innovative business from the Inter-Ministerial Board.

IPR Statistics (figures for the F.Y. 2016-17 are upto Dec. 2016)

1. Patents

Year Filed Examined Granted Disposal2005-06 24505 11569 4320 NA2006-07 28940 14119 7539 NA2007-08 35218 11751 15316 157952008-09 36812 10296 16061 171362009-10 34287 6069 6168 113392010-11 39400 11208 7509 128512011-12 43197 11031 4381 84882012-13 43674 12268 4126 90272013-14 42950 18306 4225 116722014-15 42763 22631 5978 143282015-16 46904 16851 6326 204292016-17 33193 15649 6347 15910

2. Designs

Year Filed Examined Registered2006-07 5521 4976 42502007-08 6402 6183 49282008-09 6557 6446 47722009-10 6092 6266 60252010-11 7589 6277 92062011-12 8373 6511 65902012-13 8337 6771 72502013-14 8533 7281 71782014-15 9327 7459 71472015-16 11108 9426 79042016-17 7612 9503 5421

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3. Trade Marks

Year Filed Examined Registered Disposal2006-07 103419 85185 109361 NA2007-08 123514 63605 100857 NA2008-09 130172 105219 102257 1265402009-10 141943 25875 67490 763102010-11 179317 205065 115472 1325072011-12 183588 116263 51765 578672012-13 194216 202385 44361 697362013-14 200005 203086 67873 1047532014-15 210501 168026 41583 836522015-16 283060 267861 65045 1161672016-17 209563 416821 160363 184168

4. Geographical Indications

Year Filed Registered 2006-07 33 32007-08 37 312008-09 44 452009-10 40 142010-11 27 292011-12 148 232012-13 24 212013-14 75 222014-15 47 202015-16 17 262016-17 30 21

5. Copyright

Calendar Year Number of Received Applications Number of applications processed2012 13194 105552013 12148 97182014 14378 115022015 13171 105372016 16889 9823

IPR Trends (Till December in F.Y. 2016-17 vis a vis F.Y. 2015-16)

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Administration of the Boilers Act, 1923

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

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

The Indian Boilers (Amendment) Act, 2007 (49 of 2007), introduced improvements in the provisions of the law to enhance safety norms, to ensure uniformity in standards of inspection, expediting inspections and reducing bureaucratic delays by decentralization of inspection of boilers during their manufacture, erection and use, by allowing inspection and certification by the independentinspecting authorities.

Rules and regulations are already in place for third party inspection and inspection by the third party inspecting authorities and competent persons has been implemented in the country and it is already operational in many states. This has resultedinasimplifiedandmoreaccessible,user- friendly framework for the administration of the Boilers Act and has also protected manufacturers/users' interests without sacrificing the safety of boilers.

For “Ease of Doing Business”, the concept of self-certificationandthirdpartyinspectionofboilershas been taken up with the State Governments. Andhra Pradesh, Chhattisgarh, Daman& Diu and Dadra & Nagar Haveli, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Nagaland, Odisha, Punjab, Rajasthan, Telangana, Tripura, Uttrakhand & West Bengal Governments have already implemented the self-certification/thirdparty inspectionofboilersduringuse.Thiswill benefitabroadspectrumof industries both in large and small scale sector which includes Power plants, Chemical plants, Refineries,Paperplants,Steelplants,Sugarmillsand other process industries.

Regulations are being amended for simplifying the procedure for third party inspection of boilers during use by allowing the Competent Persons to undertake inspection independently also without taking employment with the Central Boilers Board recognised Inspecting Authority. Provision is also being made in the regulations for prescribing time limits for all the approvals/clearances under the Boilers Act/IBR after which the approvals shall be deemed to have been granted.

Central Boilers Board

Central Boilers Board, constituted under Section 27A of the Boilers Act, 1923 (5 of 1923) is responsible for making regulations consistent with the Act including for laying down the standards for material, design, construction as well as for registration and inspection of boilers. The Board comprises of the representatives of the Central and

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State Governments, Bureau of Indian Standards, Boiler and boiler component Manufacturers, National Laboratories, Engineering Consultancyagencies, users of Boilers and other interests connected with the Boiler Industry.

Secretary, Department of Industrial Policy and Promotion is the ex-officio Chairman andTechnical Adviser (Boilers) is the ex-officioMember-Secretary of the Board.

Board deals with the problems of both the users and manufacturers and takes policy decisions for proper growth of the boiler manufacturing industry in the country. Board formulates the Indian Boiler Regulations incorporating the latest developments taking place in the Boiler Industry all over the world. Board’s responsibilities have further increased with the introduction of third party inspecting authorities and competent personsforinspectionandcertificationofboilersand boiler components.

Evaluation Committee/Appraisal Committee of the Board considered sixty six recognition cases for recognition as Inspecting Authorities, Competent Authorities, Well-known Steel Makers, Tube/Pipe Makers, Well Known Foundry/Forge, MaterialTestinglaboratories andRemnantLifeAssessment Organisation under the Indian Boiler Regulations, 1950 and granted recognition/renewal in Sixty five cases during the periodunder report. Authorisation Cards also issued to competentpersonsforinspectionandcertificationof boilers and boiler component in India during manufacture, erection and use.

Functions of Boilers Division:

Boiler Division is headed by the Technical Adviser (Boilers) and its functions are to:

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

(ii) Deal with cases/matters on which direction is to be given to State Governments by the Central Government for carrying out execution of the provisions of the Boilers Act,1923.

(iii) Deal with the work relating to framing or amendment of regulations for laying down the standards for materials, design and construction of boilers and also for regulating the inspection and examination of boilers

(iv) Examine proposals for amendment of the regulations including drawings, designs, calculations and specifications forsubmissions to the Central Boilers Board.

(v) Evaluate quality management systems andproduction facilities of various firmsin India and foreign countries for their recognition as Competent Authorities, Well known steel makers, foundries, forges, tube & pipe makers, material testing laboratories and remnant life assessment organisations under the Indian Boiler Regulations, 1950 in order to cut down the inspection delays and increased availability of the boiler components without sacrificing the safetyandqualityof the boilers and its components.

(vi) Evaluate inspection systems and performanceoffirmsfortheirrecognitionas Inspecting Authorities for inspection and certification of boilers and boilercomponents in India and foreign countries.

(vii) Conduct meeting of all Technical Sub-Committees of the Central Boilers Board as Chairman of these sub-committees.

(viii) Deal with various matters in connection with the administration of the Boilers Act, viz. scrutiny of the proposals

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regarding amendment of the Indian Boiler Regulations, 1950 in line with the latest technological developments all over the world.

(ix) Interpret the provisions of the Indian Boiler Regulations, 1950.

(x) Deal with problems which are thrown up by the manufacturers and users of boilers and others concerned and give necessary advice and guidance.

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

One-day/TwodaysworkshopsonEfficientBoilerOperation and maintenance to apprise the owners of boilers of the steps to be taken to optimizetheefficiencyoftheirworkingboilersarebeing continuously conducted through National Productivity Council to popularize the measures for energy conservation.

Attached & Subordinate Offices and other Organisations

Office of the Economic Adviser

The Office of the Economic Adviser(OEA) wassetupin1937.ThisOfficerendersadvicetotheDepartment of Industrial Policy & Promotion on formulation of policies for promoting investment and country’s industrial development. It also provides supports with analysis of trade, fiscal,investment, competition and labour related issues having bearing on industrial performance. Wholesale Price Index (WPI) and Index for eight Core Sector industries are compiled and brought out by the Office of the Economic Adviser.Compilation of data in respect of DIPP items in Index of Industrial Production (IIP) is supervised bytheOfficeoftheEconomicAdviser.

TheOfficeoftheEconomicAdviserrendersadviceon trade, taxes, investment, fair trade practice including anti-dumping and safeguards, and labour related issues.

Among the time bound statistics related mandates oftheOfficeare,compilationanddisseminationof Wholesale Price Index (WPI) and the Index for Eight Core Sector industries. Besides, OEA also supervises compilation and validation of data in respect of 268 items for the Index of Industrial Production (IIP) prepared in the Industrial Statistics Unit (ISU) of DIPP, and its submission to CSO in time.

Functions

ThemainfunctionsoftheOfficeoftheEconomicAdviser include the following:

Policy oriented functions

• Economic policy inputs for industrial development and formulation of industrial policy.

• Analysis of trends of industrial production and growth.

• Research support for existing and new DIPP initiatives.

• Examining proposals and rendering advice for changes in Fiscal Policy Regime relating to industry.

o changesintariffstructure includingcases of Inverted duty (both MFN & FTA). CENVAT accumulation, duty drawback etc..

o changes in tax policy, procedures andfiscalincentives.

• Providing inputs with respect to industrial sector for Foreign Trade Policy.

• Analysis of cases relating to Safeguard and Anti-Dumping duty.

• Examination of multilateral and bilateral issues relating to industrial trade (PTA/ CECA/ FTA/ RTA /CEPA).

• Nodal for Bilateral Investment Treaties (BIT) related issues in DIPP.

• Processing Policy Notes - Cabinet Notes, CoS Notes, EFC Notes etc referred on subjects with economic implications and

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also not directly pertaining to any one Division of DIPP.

• Matters referred by Department of Skill Development and Entrepreneurship, NITI Aayog and Ministry of Statistics and Programme Implementation,

• Appraisal work relating to the Empowered Committee on Innovative Collaborations, Government of India.

Coordination functions

TheOfficecoordinatesthefollowingwork:-

The work relating to preparation of Monthly Summary for the Cabinet highlighting monthly IIP Growth rate, manufacturing growth rate, investment scenario,FDI,inflationpositionetc.,

Monthly D.O. letter to the Cabinet Secretary regarding important achievements during the month.

Coordinating for the material regarding Pre-Budget Economic Survey, material for the Speech of President of India, Prime Minister, Finance Minister.

Preparation of Executive Summary & Chapter-1 of Outcome Budget of the Department.

Preparation of Annual Plan.

Monitoring Status of approval (EFC/SFC) of Schemes.

Preparation of concept papers/ approach papers for the schemes of the Department.

Coordinating in DIPP for Board of Trade (BoT) meetings, Council on Trade Development and Promotion meetings, Trade Policy Review of WTO (Both of India and other WTO members countries) and Inter-ministerialCommitteeonNon-Tariffmeasures.

eBook of Good Governance.

Committee on Innovative Collaboration

The Government has set up an Empowered Committee on Innovative Collaborations. The Committee is chaired by Vice Chairman, NITI Aayog. Secretary, DIPP is the Convener of the Committee.OfficeofEconomicAdviser,functionsas the secretariat of the Committee and appraising agency for projects received by the Committee.

Departments/Ministries Allocated to O/o EA

(i) Ministry of Statistics and Programme Implementation

(ii) Department of Skill Development and Entrepreneurship

(iii) NITI Aayog.

Compilation and Release of Information/Publications

The Office of Economic Adviser compiles andreleases the following:

Whole Sale Price Index

• Wholesale Price Index (WPI) Numbers for India on the 14th of the month for all commodities (Press Release).

Core Industrial Production

• Monthly report on production of eight infrastructure industries viz. crude oil, petroleum refinery products, coal,electricity, cement and finished steel,natural gas, fertilizer on the last Working day of the month (Press Release).

Other activities

a) Development of Business Service Price Index (BSPI)

The work of development of experimental Business Service Price Indices was initiated in 2007 by OEA in consultation with concerned line Ministry/Department or the sector regulator. Ten sectors namely, i) Banking, ii) Trade, iii) Business Services,

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iv) Postal, v) Telecommunication, vi) Air Transport, vii) Port Services, viii) Insurance, ix) Rail Transport andx)RoadTransportwereidentifiedfortheinitialphase of development of Experimental Business Service Price Indices. An Expert Committee under the chairmanship of Prof. C.P. Chandrashekhar was also set up to provide technical guidance on the conceptual and methodological issues for development of Business Service Price Index.

So far, Experimental Service Price Indices for five sectors viz., Rail Transport, Banking, PostalServices, Telecom (Cellular) and Air Transport have been developed. The Indices for these sectors along with their methodologies are available in thepublic domainon thewebsiteof theOfficeof Economic Adviser (OEA) for comments. These Indices are also being updated from time to time.

• Monthly Experimental Railway Services Price Indices (Base: 2004-05) have been compiled from April 2005 to October 2015, on the basis of data provided by the Railway Board.

• Monthly Experimental Banking Services Price Indices (Base: 2004-05) have been compiled from April 2005 to August 2016 (provisional) by RBI in consultation with theOfficeofEconomicAdviser.

• Monthly Experimental Postal Services Price Indices (Base: 2004-05) have been compiled from April 2005 to November 2015 on the basis of data provided by the Department of Posts.

• Quarterly Experimental Telecom (Cellular) Services Price Indices (base: 2009-10) have

been compiled for quarter ending June, 2010 to quarter ending March 2016 using data published in

• Performance Indicator Report (a quarterly publication) released by Telecom Regulatory Authority of India (TRAI).

• Monthly Experimental Air Service Price Indices (Base: 2010-11) from April, 2011 to February, 2013 have been compiled on the basis of data received from airlines through Directorate General of Civil Aviation.

The work relating to development of Business Service Price Indices for Road Transport, Port Services and Insurance Service are currently in progress in consultation with Ministry of Road Transport & Highways, Ministry of Shipping and Insurance Regulatory Development Authority (IRDA) respectively. The methodology for Experimental Business Service Price Indices for Insurance Services has been developed and approved by the Expert Committee. The compilation of indices is in progress in consultation with IRDA.

b) Wholesale Price Index(WPI)

The current series of index numbers of wholesale prices (Base: 2004-05=100) was introduced from September, 2010. The series has 676 items with 5482 quotations. Table (A) gives the index numbers of wholesale prices (Base: 2004-05=100) for the period from 2005-06 to 2016-17* for All Commodities and Major Groups namely: (i) Primary Articles, (ii) Fuel & Power, and (iii) Manufactured Products:

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Table (A): Financial Year Wise WPI (Base: 2004-05=100)

Period All Commodities Wt. (100.00)

Primary Articles Wt. ( 20.12)

Fuel & Power Wt. (14.91)

Manufactured Products Wt. (64.97)

2005-06 104.47 104.30 113.58 102.422006-07 111.35 114.33 120.92 108.222007-08 116.63 123.85 120.96 113.392008-09 126.02 137.53 134.95 120.382009-10 130.81 154.94 132.10 123.052010-11 143.32 182.44 148.32 130.072011-12 156.13 200.32 169.03 139.512012-13 167.62 219.97 186.49 147.062013-14 177.64 241.61 205.43 151.462014-15 181.19 248.80 203.49 155.122015-16 176.67 249.58 179.75 153.42

2016-17* (Prov.) 182.34 262.23 185.57 156.90*Upto Dec-2016. The figures of Nov-16 and Dec-16 are provisional.Remarks for 2016-17 averages of indices from April 2016 to December, 2016.

Table (B): Rate of Inflation based on WPI (Base: 2004-05=100).

Period All Commodities Primary Articles Fuel & Power Manufactured Products

2006-07 6.59 9.62 6.46 5.662007-08 4.74 8.33 0.03 4.782008-09 8.05 11.05 11.57 6.162009-10 3.80 12.66 -2.11 2.222010-11 9.56 17.75 12.28 5.702011-12 8.94 9.80 13.96 7.262012-13 7.36 9.81 10.33 5.412013-14 5.98 9.84 10.16 2.992014-15 2.00 2.98 -0.94 2.422015-16 -2.49 0.31 -11.67 -1.102016-17* (Prov.) 2.87 4.87 1.47 2.25

*Upto Dec-2016. The figures of Nov-16 and Dec-16 are provisional.Figures for 2016-17 represent percentage difference in average of indices from April 2016 to December, 2016.

During the Financial year 2015-16 the rate of inflationfor‘AllCommodities’basedonWPIwasminus 2.49, while rate of inflation for PrimaryArticles, Fuel & Power and Manufactured Products stood at 0.31, minus 11.67 and minus 1.10 respectively. However, rate of inflation for‘All Commodities’ during F.Y. 2016-17 (upto December, 2016) was provisionally estimated at

2.87, while during same period for Primary Articles, Fuel & Power and Manufactured Products stood at 4.87, 1.47 and 2.25 respectively.

Working Group Report for Revision of Current Series of Wholesale Price Index:-Based on the recommendations of the Working Group for revision of the current Series of WPI (Base 2004-

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05), which had submitted its report on 31.3.2014 the new series of WPI with base 2011-12 is likely to be launched shortly.

Working Group on Producer Price Index (PPI)

A Working Group had been formed on 21st August 2014 under the chairmanship of Dr. B.N Goldar, Ex-member, the National Statistical Commission for suggesting methods for construction of Producer Price Index(PPI) in Indian context. Construction of experimental PPI is a work in progress currently. The Working Group is scheduled to submit its report by August 2017.

c) Trade, Fiscal Policy and Investment Treaties related work:

The Office has been conducting industryconsultations to examine industry proposals for formulating taxation related recommendations of DIPP for Union Budgets regarding all-industry duty drawback rates, negotiations/review of FTA/CEPA/CECA, and any occasion of concern of industry (eg. Steel industry).

In particular, cases pertaining to duty inversions (both MFN and FTA related) have been continuously identified with industry forcorrection to provide level playing field to thedomestic manufacturing. Cases are also referred to Tariff Commission for detailed examination.The Department of Revenue has addressed such cases in the last three Union Budgets in sectors including, information technology hardware, consumer electronics, electrical equipment, capital goods, medical devices, automotive components, chemicals, renewable energy etc.

The Office has also represented DIPP as partof Indian Delegation led by Department of Commerce for negotiations of Investment Chapter in Regional Comprehensive Economic Partnership to New Zealand and led by Department of Economic Affairs for negotiations relating toIndia-Brazil Bilateral Investment Treaty in New Delhi and Brazil.

d) ‘Make in India’ Initiative:

Sectoral achievements in respect of 22 sectors are being prepared. 11 sectoral reports have been released so far.

Tariff Commission New Delhi

The present Tariff Commission in India is theresult of the refinement and amalgamation ofthe functions of its predecessor organizations namely, Tariff Board, Tariff Commission (old)and Bureau of Industrial Costs & Prices (BICP). The Commission is presently being headed by MemberSecretaryintherankofSecretary.TariffCommission under the Department of Industrial Policy & Promotion provides useful inputs for informed decision making in areas having an impact on the manufacturing sector and other economic activities in the country.

The Department of Industrial Policy & Promotion after the reviewof roleof TariffCommissionbythe Hon'ble Commerce & Industry Minister has decided to strengthen the Commission to enable the Commission to continue to provide useful inputs for informed decision making by the Commerce and Industry Ministry with regard to manufacturing and other ministries of Government of India. The Tariff Commission isactively involved in Inverted Duty Structure studies on products which are undertaken to support the 'Make in India' initiative of the Government.

The Tariff Commission has been engaged indischarging the following functions drawn from the TOR/ charter revised in September 1998 and April, 1999.

(a) To make recommendations as an expert body, on matters referred to it by Government regarding fixationof tariff and all tariff related issues inrelation to trade in goods and services, keeping in view the interest of various sectors including production, trade and

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consumers and taking into account the international commitments. The Commission should aim at evolving an overall tariff structure and look into theissueoftariffrationalisation.

(b) To make a detailed impact analysis on select sectors like textiles, agriculture, and automobiles information technology, chemicals, steel and engineering goods through a multi-disciplinary team.

(c) To carry out technical studies on cost of productionofdifferentgoodsandservicesand their competitiveness in relation to other countries.

(d) Core function of BICP including pricing, efficiency, improvement and costreduction, issue of Public & Private sector, Industrial Product & Services

I. Commodities under Administrative Pricing Mechanism(APM)

II. State monopolies/public utilities

III. Government procurement

IV. Price monitoring

V. Others

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

Tariff Commission is an organization providingresearch based inputs to Ministries/Departments based on in-depth study using data on ground realitiescollectedfromfieldforinformeddecisionmaking. The study team comprises of :-

• Engineers from the field of Scienceand Technology belonging to TariffCommission cadre

• Cost Accountants/Chartered accountants from Indian Costs & Account Service (ICoAS)

• Economists from Indian Economic Service (IES); and

• Statisticians from Indian Statistical Service (ISS).

Tariff Commission is the only Governmentorganization which has the know-how and expertise of using the tool of normation for informed decision making across the board for different sectors of the industry. Normation isbased on assessment of achievable efficienciesi.e optimal capacity utilization, productivity parameters of respective inputs (such as man, material, energy and machine) taking into account technologies and manufacturing processes etc. Normation analysis thus can be used to benchmark sectors /units for enhancing their competitiveness.

Merits of decision making through Normation include:

• Considered fair by an individual and/or a group.

• Determining the cost of goods/services at optimal/efficientlevelofinputs(manpower, material, energy and capital) and provides thrust for improvement in efficiency and enhancescompetitiveness of the industry.

• It helps in identifying areas for physical improvements leading to enhanced competitiveness

• Normation is a fundamental management tool that supports quality / excellence and innovation. It is in fact a continuous process of measuring one’s own performance and practices against the best competitors. It is thus a bench marking tool in competitiveness studies.

• Normation balances the interest of all stakeholders while protecting the consumer interest.

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• It is a tool which also focuses on providing road map for improving industrial efficiency.

• Over the period this tool has passed the test of time and has become essential in the emerging complex global market scenario and cutting edge competition.

Tariff Commission always endeavours to deliverstudyreportsinadefinitetimeframeinaphasedmanner so that the findings are real time andrelevant for arriving at policy decisions and not rendered redundant with the passage of time. This is ensured by phasing the studies and making them State specific and/or sector /unit/productspecific. Study topics which are of continuing

nature and require submission of study reports on a continuous basis are listed below:

a) Studies on inverted duty structureb) Impact assessment of Free Trade

Agreements on different sectors withdifferentcountries.

c) Studying competitiveness (including trade competitiveness) of different sectors/industry,firm/PSUandproduct.

d) Impact of prevailing tariff structures ondomestic manufacturers and industry competitiveness

The Commission has submitted the following reports to various Govt./Referral Agencies during 2015-16 .

A. The Sector wise details of the study reports submitted during 2015-16 is given in the Table below

S. No. Sector/Type of Study No. of Reports

1

Manufacturing Sector:

a) Studies related to Inverted Duty Structure/World Trade Organization/MarketAccessOffer/FreeTradeAgreement/Tariff

b) Industryspecificstudies

c) Pricing Study

33

30

1

2

2

Service Sector:

a) Pricing Study

b) IndustrySpecificstudies

17

16

1Grand Total 50

The detailed list of the study reports submitted during 2015-16 (up to 31/3/2016) is given in the table below

Sl. No Name of the Report1 Report on Inverted Duty Structure in Methylene Diphenyl Di-Isocyanate (MDI)2 Report on Inverted Duty Structure in Copper Alloy Products-Brass.

3Report on Inverted Duty Structure in Unsaturatede Polyester Resin used in the Manufacture of Rotor Blades of Wind Operated Electricity Generators

4 Report on Inverted Duty Structure in Copper Alloy Products- Bronze

5Report on Inverted Duty Structure on Vinyl Easter Adhesive (VEA) Used in the Manufacture of Rotor Blades of Wind Operated Electricity Generator

6Report on Inverted Duty Structure Inverted Duty Structure on Hardner Used in the Manufacture of Rotor Blades of Wind Operated Electricity Generator

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Sl. No Name of the Report

7Report on Duty Structure Inverted Duty Structure on Epoxy Resins Used in the Manufacture of Rotor Blades of Wind Operated Electricity Generator

8 ReportonInvertedDutyStructureinElectrolyticChromeCoatedSteelLaminates9 Report on Inverted Duty Structure in Machine Tools (CNC Grinding Machine)10 Report on Inverted Duty Structure in Carbon Pultrusion (Used for Manufacturing Rotor Blades)11 Report on Inverted Duty Structure in Master batches12 Report on Inverted Duty Structure in Centrifugal Pump13 Report on Inverted Duty Structure in Textile Machinery – Auto Cone Winding Machine14 Report on Inverted Duty Structure in Pharmaceutical Products15 Report on Inverted Duty Structure in Surgical Blades16 Report on Inverted Duty Structure in Balloons17 Report on Inverted Duty Structure in Super Thermal Aluminium Conductor Invar reinforced18 Report on Inverted Duty Structure in Ferrite Cores19 Report on Inverted Duty Structure in Cement Industry20 Report on Inverted Duty Structure in Radial Tyres21 Supplementary Report on Inverted Duty Structure in Medical Implant Device (Pacemaker)

22Supplementary Report on Inverted Duty Structure in Capacitor Grade BOPP Film (Used as Core DielectricLayerinCapacitor)

23 Supplementary Report on Inverted Duty Structure in Copper Products24 Supplementary Report on Inverted Duty Structure in Medical Devices – Blood Collection Tubes25 Supplementary Report on Inverted Duty Structure in Medical Devices – Needles26 Supplementary Report on Inverted Duty Structure in Medical Devices – Syringes.

27Supplementary Report on Inverted Duty Structure in Special Casting Components including Hub, Base Frame, Bearing Housing and Main Shaft of Wind Operated Electricity Generators

28 Supplementary Report on Inverted Duty Structure in Textile Machinery29 Report on Impact of Trade Agreement with Malaysia on India’s Trade

30Report on Indo Singapore Comprehensive Economic Cooperation Agreement (CECA) on Trade in plasticsandArticlesthereof(Chapter39ofITC-HSClassification)

31 Consolidated Report on Calculation of Rice Milling Charges32 Note on Calculation of Milling Charges in the State of Punjab33 Note on Calculation of Milling Charges in the State of Haryana34 Note on Calculation of Milling Charges in the State of Karnataka35 Note on Calculation of Milling Charges in the State of Odisha36 Note on Calculation of Milling Charges in the State of Chhattisgarh.37 Note on Calculation of Milling Charges in the State of Madhya Pradesh.38 Note on Calculation of Milling Charges in the State of Andhra Pradesh39 Note on Calculation of Milling Charges in the State of Tamil Nadu40 Note on Calculation of Milling Charges in the State of West Bengal41 Revised Note on Calculation of Milling Charges in the State of Chhattisgarh42 Note on Calculation of Milling Charges in the State of Uttar Pradesh

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43Report on Study for determining additional compensation for complex fertilizers produced by use of naphtha/fueloil/LSHSbasedfeedstockunderNBSPolicy

44 Report on techno-economic Cost-price Study on Tyre

45Report on Fare Structure and Principles of Determination of Fares in the City Bus Service in Non-Bus Rapid Transit (Non BRT) Corridor in Kanpur City

46Report on Fare Structure and Principles of Determination of Fares in the City Bus Services in BRT/Non-BRT Corridors in City of Jaipur

47ReportonPrinciplesofDeterminationofTariffsforPassengerFaresbytheCityBusServicesinBusRapid Transit (BRT) Corridors and Non-Bus Rapid Transit (Non-BRT) Corridors for Indore City

48 Report on Operation & Maintenance Cost of Irrigation Projects in Rajasthan

49Report on Fare Structure and Principles of Determination of Fares in the City Bus Services in Non-BRT Corridors in City of Chandigarh

50Supplementary Report on Quantum Value and Types of Animal Based Bio-Resources Exported from India

B. The Sector wise details of the study reports submitted during 2016-17 (i.e. till 16/1/2017) is given in the Table below

S. No. Sector/Type of Study No. of Reports

1

Manufacturing Sector:

a) Studies related to Inverted Duty Structure/World Trade Organization/MarketAccessOffer/FreeTradeAgreement/Tariff

b) Industryspecificstudies

c) Pricing Study

35

30

4

1Grand Total 35

The detailed list of the study reports submitted during 2016-17 (up to 16/1/2017) is given in the table below

Sl. No Name of the Report1 Report on Inverted Duty Structure in Printed Circuit Board2 Report on Inverted Duty Structure in Cement Industry 3 Report on Inverted Duty Structure in Card Clothing 4 Report on Inverted Duty Structure on Measuring Tapes 5 Report on Inverted Duty Structure in Connectors 6 Report on Inverted Duty Structure in Hard Drawn Bare Aluminium Conductors Steel Re-inforced (ACSR)7 Report on Inverted Duty Structure in Voltage Regulator Housing 8 Report on Inverted Duty Structure in Reverse Osmosis (RO) Membrane For Household Type Filters 9 Report on Inverted Duty Structure in Metal Casting Components Used in Wind Operated Electricity

Generator

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10 Report on Inverted Duty Structure in Tractors 11 Report on Inverted Duty Structure on Cable Terminals and Connectors 12 Report on Inverted Duty Structure on Waste Heat Boiler13 Report on Inverted Duty Structure on Electrical Contacts 14 Report on Inverted Duty Structure on Rubber Rice De-husking Rolls (ITCHS : 40169990)15 Report on Inverted Duty Structure on Conveyor or Transmission Belts or Belting of Vulcanised Rubber

(ITCHS Code:40103999)16 Report on Inverted Duty structure in Bicycle Tubes (ITCHs Code:40132000)17 Report on Inverted Duty Structure on Pressure Vessels and Parts of Pressure Vessels (ITCHS Codes

84198910 & 84199090)18 Report on Inverted Duty Structure in Tubes, Pipes and Hoses of Vulcanised Rubber (Reinforced with

steel Wire) (ITCHS Code 40092100)19 Report on Inverted Duty Structure in Compounded Rubber Unvulcanised (ITCHS Code 40051000)21 Report on Inverted Duty Structure in Condenser (Used for Split Room Air Conditioner) (ITCHS Code

84159000)22 Report on Inverted Duty Structure on Bicycle Tyres (ITCHS Code 40115090)23 Report on Inverted Duty Structure on Parts of Nuclear Reactor (ITCHS Code 84014000)24 Report on Inverted Duty Structure on Automotive Tyres (ITCHS Code 40111010,40112010,40112090 &

40114010)25 Report on Inverted Duty Structure on Moulded Rubber Products (ITCHS Code 40169990)26 Status Note on Inverted Duty Structure in Compounded Rubber (ITCHS Code 40059990)27 Supplementary Report on Inverted Duty Structure in Slewing Bearing (Used in Wind Turbine Power

Generators)28 SupplementaryReportonInvertedDutyStructureinElectrolyticChromeCoatedSteelLaminates29 Note on Impact Assessment of Tax Incentives for Manufacturing Pacemakers 30 Note on Impact Assessment of Tax Incentives for Carbon Pultrusion (used for manufacturing Rotor

Blades )31 Note on Impact Assessment of Tax Incentives Provided Due to Inverted Duty Structure on Capacitor

Grade BOPP Film (Used as core dielectric layer in capacitor)32 Report on Quick Study on “Application of FTA level Customs duty to SEZs Clearance in DTA-Identifying

LabourIntensiveSectorwithUnutilisedCapacity”.33 Note on Calculation of bonus due to amendments in Payment of Bonus Act, 196534 Note on Impact Assessment Study of Indirect Tax Incentives in the Union Budget of 2015-16 “Reduc-

tion in Basic Customs Duty on Ethylene Dichloride(ITCHS Code 29031500 and Vinyl chloride Monomer (ITCHS Code 29032100) from 205% to 2 %”

35 Note on Impact Assessment Study of Indirect Tax Incentives extended in the Union Budget of 2015-16 “Reduction in Basic Customs Duty on Styrene (ITCHS code 29025000) from 2.5% to 2%”

In addition to the Inverted Duty Structure reports already submitted during the current financialyear (i.e till 16/1/2017) there are studies at

different stages of progress/completion whichwill be submitted by 31th March, 2017.

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Outcomes

A Budget Announcements

Statusoffindingsof TariffCommissionon InvertedDutyStructurewhichhavebeen incorporated in2016-17 budget are as follows:

Sl. No. Product Status as per 2016-17 Budget announcement 1. Inverted Duty Structure

on Technical Textile items – Baby & Clinical (Adult) Diapers

(Two Products)

Basic Customs duty on Super Absorbent Polymer (SAP) [3906 90 90] for manufacture of goods falling under heading 9619 [sanitary towels, tampons, napkins, diapers etc.] has been reduced from 7.5% to 5%, subjecttoactualusercondition.S.No242ofNotificationNo.12/2012-Customs, dated 17th March, 2012 as amended by notificationNo.12/2016-Customs, dated the 1st March, 2016 [S.No. 242] refers.

Basic Customs duty on Pulp of wood [4701-4706] for manufacture of goods falling under heading 9619 [sanitary towels, tampons, napkins, diapers etc.] has been reduced from 5% to 2.5% subject to actual user condition.S.No260ofNotificationNo.12/2012-Customs,dated17thMarch,2012asamendedbynotificationNo.12/2016-Customs,datedthe 1st March, 2016 refers.

2. Supplementary Report on Inverted Duty Structure in Capacitor Grade BOPP Film (Used as Core Dielectric Layer in Capacitor) (one Product)

Basic Customs duty on Polypropylene granules / resins [3902] for the manufactureofcapacitorgradeplasticfilmshasbeenreducedfrom7.5%toNil,subjecttoactualusercondition.NotificationNo.12/2012-Customs, dated 17th March, 2012 as amended by notificationNo.12/2016-Customs, dated the 1st March, 2016 [new S.No. 238A] refers.

3. IDS in Unsaturated Polyester Resin used in the Manufacture of Rotor Blades of Wind Operated Electricity Generators (one Product)

Excisedutyexemptionon5specifieditemsformanufactureofrotorblades and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators has been withdrawn. They will now attract a concessional excise duty of 6%, for manufacture of rotor blades and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators, subject to actual user condition. Notification No.12/2012-Central Excise, dated 17th March, 2012 asamendedbynotificationNo.12/2016-CentralExcisedated1stMarch,2016[NewS.No.327A,List9A]refers.

4. Inverted Duty Structure on Vinyl Easter Adhesive (VEA) Used in the Manufacture of Rotor Blades of Wind (one Product)

5. Inverted Duty Structure Inverted Duty Structure on Hardeners Used in the Manufacture of Rotor Blades of Wind Operated Electricity Generator (one Product)

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Sl. No. Product Status as per 2016-17 Budget announcement 6. Duty Structure Inverted

Duty Structure on Epoxy Resins Used in the Manufacture of Rotor Blades of Wind Operated Electricity Generator (one Product)

7. Duty Structure Inverted Duty Structure on Carbon Pultrusion

(one Product)

Basic Excise Duty on Carbon pultrusions, for manufacture of rotor blades and intermediates, parts and sub-parts of rotor blades for wind operated electricity generators, has been reduced from 12.5% to 6%, subject to actual user condition. Notification No.12/2012-CentralExcise,dated17thMarch,2012asamendedvidenotificationNo.12/2016-Central Excise dated 1st March, 2016 [New S. No. 327A, List9A]refers.

8. Inverted Duty Structure in Centrifugal Pumps

(one Product)

BasicExciseDutyon5 specifiedparts required for themanufactureof centrifugal pump has been reduced from 12.5% to 6%, subject to actualusercondition.NotificationNo.12/2012-CentralExcise,dated17thMarch, 2012 as amended byNotificationNo. 12/2016-CentralExcise dated 1st March, 2016 [New S. No. 235A] refers

9. Report on Inverted Duty Structure in Balloons

(one Product)

Basic Customs duty on Natural latex rubber made balloons [4016 95 90, 4016 99 90] has been increased from 10% to 20%. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come intoforcewithimmediateeffect.Further,BasicCustomsdutyof10%has been retained for all goods other than natural rubber latex made balloonsfallingundertarifflines40169590,40169990.

Basic Customs duty on natural latex rubber made balloons [9503 00 90, 9505 10 00 & 9505 90 90] has been increased from 10% to 20%. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will comeintoforcewithimmediateeffect.Further,BasicCustomsdutyof10% has been retained for all goods other than natural rubber latex madeballoonsfallingundertarifflines95030090,95051000&950590 90.

10. Textile machineries (Seven Products)

IDs in textile Machinery addressed as Tariff rate of BCD has beingincreased from 7.5% to 10% on 206 specified tariff lines falling inChapters 84 and 85. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931,thesechangeswillcomeintoforcewithimmediateeffect.

Carding MachineCombing MachineBlow Room MachineDraw Frame MachineSpeed Frame MachineRing Frame MachineAuto Cone Winding Machine

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Total no. of Products where IDS addressed: 17

StatusoffindingsofTariffCommissiononInvertedDutystructureinMedicalDevicesSector

Sl. No. Product Status as per notification in January, 2016(*)

1

Medical Devices sector falling under headings 9018, 9019, 9020, 9021 or 9022 (thirteen Products)

Inverted Duty Structure in Medical Devices covered under headings 9018, 9019, 9020, 9021 or 9022 addressed vide notificationno.4/2016and5/2016dated19/1/2016

(*) Total no. of Medical Products studied by TC and where IDS addressed = 13

Status of Tariff Commissions findings on Inverted duty structure which have been incorporated in 2015-16 budget are as under.

Sl. No. Product Status as per 2015-16 Budget announcement

1 Machine Tool (four products)

BasicCustomsDutyonspecifiedcomponents[85371000]ofCNCLathemachinesandMachiningCentres,namelyBall screws [84834000], LinearMotionGuides[8466 93 90] and CNC Systems has been reduced from 7.5% to 2.5%, subject to actual user condition.

Notification No.12/2012-Customs, dated 17th March, 2012 as amended bynotificationNo.10/2015-Customs,datedthe1stMarch2015 [newS.Nos.406B,406C and 406D] refers.

2Pacemaker (one product)

CVD&SADexemptedonspecifiedrawmaterialsforuseinthemanufactureofpacemakers,subjecttoactualusercondition.NotificationNo.12/2012-Customs,dated 17th March, 2012 as amended vide notificationNo.10/2015-Customs,dated1st March, 2015 [new S. No. 488A] refers. Further, these good have been exempted from SAD subject to actual user condition. Notification No. 21/2012-Customs,dated 17th March, 2012 as amended vide notificationNo.11/2015-Customs,dated1st March, 2015 [new S. No. 14E] refers.

3

Copper

(three products)

Special Additional Duty of Customs (SAD) on melting scrap of iron or steel, stainless steel scrap for the purpose of melting, copper scrap, brass scrap and aluminium scrap has been reduced from 4% to 2%.

Notification No.21/2012-Customs, dated 17th March, 2012 as amended bynotificationNo.11/2015-Customs, dated the 1stMarch 2015 [new S.Nos. 78A,79A and 79B] refers

4

Electrical Insulators

(one product)

Basic Custom Duty has been reduced from 10% to 7.5% on metal parts for use in manufacture of electrical insulators, subject to actual user condition.

Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide notificationNo.10/2015-Customs,dated1stMarch,2015[newS.No.334B]refers.

5Endoscopes

(one product)

Basic Customs Duty on specified inputs for use in themanufacture of flexiblemedical video endoscope has been reduced from 5% to 2.5%.

Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide notificationNo.10/2015-Customs,dated1stMarch,2015[newS.No.474A]refers.

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Total no. of Products where IDS addressed 2015-16 budget : 10

TariffCommission'sfindingsonInverteddutyStructurewhichhavebeenincorporatedinthe2014-15Budget are as under

Sl. No. Products Status as per 2014-15 Budget Announcement

1Mono Ethylene Glycol (one product)

Basic Custom duty on Denatured ethyl alcohol reduced to 5 percent

2Aluminium Ingots (one product)

Basic Custom duty on coal tar pitch reduced to 5 percent

3Personal computers (one product)

Inputs and components used in the manufacture of personal computers exempted from 4 percent special additional duty (SAD)., subject to fulfillmentofconditionno5annexedtonotificationno12/2012-customs,dt 17/4/2012

4Poly Vinyl Choride (39042110 & 39042210) (Two product)

Basic custom duty on ethylene reduced from 5 percent to 2.5 percent

5Ethylene Viniyl Acetate (EVA) (one product)

SpecifiedinputsforuseinthemanufactureofEVAsheetsexemptedfromcustom duty

6Back sheet (one product)

Specified inputsused in themanufactureofbacksheetexempted fromcustom duty

7

Slewing Bearing (one product)

custom duty on Forge rings reduced from 10 percent to 5 percent , subject tofulfillmentofcondition46annexedtonotificationno12/2012-customs,dt 17/4/2012

Total no. of Products where IDS addressed 2014-15 budget : 8

B) Data base refinement - In the back drop of the constraint of getting product wise information TariffCommissionhadtakentheinitiativewiththeMinistryofCorporateAffairsgivingfulljustificationto ensure that the cost audit formats are restored to its earlier format to include product-wise data in respect of production, imports, consumption of raw materials, domestic sales, exports, services rendered/obtained, element-wise cost details including per unit cost etc. in respect of all major sectors of the economy, both in physical as well as value terms. Based on the vital inputs provided by theCommissiontheMinistryofCorporateAffairshave been able to amend the Companies(Cost RecordsandAudit)Rules,2014videNotificationdated 31st December, 2014 to facilitate getting

detailed information required for studies conducted by Tariff Commission particularly inrespect of Inverted Duty Structure.

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

1) Department of Heavy Industry vide there letter No. dated 15th September, 2016 5(1)/2014-PE-XI at have communication that their Department of Industrial Policy & Promotion supports the proposal of the TariffCommission regardingBCDonSteel Balls (HS code 84829119), Rubber Seal (HS Code 40024900), Grub Screw (HS Code 73182990) and Cage Strip (HS Code 84829119) required for the manufacture

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of Slewing Bearing, to be brought down to 5% under actual user condition.

2) Light Engineering Industry Division ofDIPP vide their letter No. dated 17th Nov, 2016 F.No.14(37)/2015-LEI at havecommunication that their Department of Industrial Policy & Promotion At the existing concessional exemption on the importdutyonthefinalproductandtheimport duty of 12.5% on the raw material, Effective Rate of Protection (ERP) worksout to (-) 40.57%. The various ERP has been given in the report. We may support that the ERP should be zero, for which duty on raw material is also required to be brought down at par with the concessional Nildutyonthefinalproduct.

3) Ministry of New and Renewable Energy vide their letter dated 21/10/2015 have recommended the proposals of TariffCommission for redressing the inverted duty structure on input materials required for manufacturing Unsaturated Polyester Resins, Vinyl Ester Adhesive, Epoxy Resins ad Hardener.

4) Department of Revenue vide their letter No. 15012/3/2015-NC-1dated 11/5/2015 have communicated that the prices of various Alkaloids produced by GOAWs Neemuch and Ghazipur have been revised on the bases on the recommendations madebytheTariffCommission.

5) Ministry of water Resources vide its letter no. 11/1/2012-PP/1153 dt. 17/6/2014 have appreciated the studies done by Tariff Commission on Operational &Maintenance cost of Irrigation projects and Cost of Water in the context of its [proposed utilization by the 14th Finance Commission.

6) Tariff Commissions fifth study reporton the "Plant based Normally Traded Commodities' as part of the of the study on quantum, value and types of bio-resources exported from India”, has been appreciated by the Ministry of Environment and Forests (Reference D.O. No. C-12025/1/10-CS-III dated 14/8/2014).

7) Office of Economic Adviser, Departmentof Industrial Policy & Promotion in its tax proposals for the union budget of 2013-14,usedall the26 reportsofTariffCommission, on Inverted Duty Structure, formaking specific recommendations tothe Department of Revenue for correction of IDS in manufacturing products. (Reference letter no.Ec.Ad.2/16/2012-TFP dated 19th March, 2014).

8) Department of Commerce vide their letter no 14/7/2005-TPD dated 26th September, 2013 have expressed interest in the reports of the studies done on inverted duty structure in 2012-13.

9) Ministry of Health & Family Welfare vide No.X-11035/12/2012-DGQC dated 3/4/2013endorsedthestudydonebyTariffCommission to the Revenue Department on inverted duty structure.

10) Tariff Commissions four reports onOperation & Maintenance cost of irrigation projects and two reports on Assessment of normative cost of water for various uses viz. irrigation, drinking water and industrial water supply were presented before the Ministry of water resources on 4th March, 2014 (reference D.O. no. 2-7/2012-M.I. (stat) dated 28/2/2014).

11) Tariff Commissions report on O&M costof irrigation projects for Andhra Pradesh

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was requested by the MI(Stat) wing of the Ministry of Water Resources for submission to the XIV Finance Commission. (Ref. letter dated 16th August, 2013).

12) Ministry of Fertilizers vide its letter No. 23011/8/2010-MPR dated 2nd June, 2014 has informed that the additional compensation to the indigenous manufacturers producing P&K complex fertilizers using Naptha/fuel Oil(FOL)/Low Sulphur Heavy Stock(LSHS) as feedstock under Nutrient Based Subsidy (NBS) policy,wouldbefinalizedonthebasisofrecommendationsof TariffCommissionin view of the Cabinet decision to this effect.

13) The slab wise rates recommended by the Tariff Commission for movement offertilizers by road from plant/port to block up to 500 Km has been adopted by the Department of Fertilizers.(Reference letter no.12012/25/2013-FPP dated 14th March, 2014).

14) Department of Revenue vide its letter no. C-15012/2/1/10- SO(NC-1) dt. 5.7.13 have intimated that the recommendations of Tariff Commission have been dulyconsidered while revising the prices of bulk drugs produced by Govt. Opium & Alkaloid works, in March-April,2013.

15) The formula recommended by the Commission for the payment of interest by DGS&D on the withheld amount for procurement of Jute Bag for packing of food grains has been implemented by DGS&D. (Reference letter no. Kol/Jute/ADS(C-3)/Policy Matter/2014 dated 19th Feb., 2014)

16) Report of Second Hand Machinery and its impact on competitiveness of domestic

capital goods industry- Plastic Processing Machinery was presented before Director General of Foreign Trade Department of Commerce, during officers meeting ofDGFT on 12th December, 2013. (Reference D.O. letter no.01/93/180/20/AM-13/PC-2(B)/E50 dated 12th Dec., 2013)

17) The four reports prepared by the Commission on medicinal plants, species and aromatic crops and horticultural crops enabled the National Biodiversity Authority to glean a total of 88 gazette notifiedbiologicalresources.(Referenceletter no.NBA/Tech. Gen./22/61/11-12/ dated 3rd March, 2014)

18) Tariff Commissions study report on“study on quantum, value and types of bio-resources exported from India”, has been appreciated by the Ministry of Environment and Forests (Reference letter no. 28-13/2008-CS-III dated 19.6.2013) and have indicated that the data provided in the study would be helpful in the context ofnotificationtobeissuedbytheMinistryon normally traded commodities under provisions of the Biological Diversity Act.

19) TariffCommission’s Report on “Studyonquantum value and types of bio-resources exported from India”, has been cited in the background note of the Expert committee Meeting/Key-stake holder consultation on “strategies for up-scaling domestic and international trade in herbal & medicinal plant resources in the 12th FYP”.

20) Ministry of Environment and Forests vide their letter no. 12025/1/10-CS-III dated 22/8/2013 have appreciated the second and third report of the Commission on “Spices and Aromatic Plants and Horticultural Crops”.

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21) Report on Comparative Performance of Bio- Fertilizers with their chemical counterpartsintermsofusage,efficiencyand cost effectiveness appreciated bythe Department of Agriculture and Cooperation, Ministry of Agriculture vide their letter no. 9.14.2013-Org. Fmg dated 08.10.2013.

22) The two reports on price of Pregnancy Test Kit recommended by Tariff Commissionfor the years 2009-10 and 2010-11 has been adopted by the Ministry of Health (reference letter no.S.12012/35/2007/Supply/Pregnancy Kit dated 16/5/2013).

23) NMCC vide its letter No. 21(1)/2012-NMCC dated 14th January, 2013 endorsed the recommendations of Tariff Commissionon the IDS reports to the Department of Revenue and PMO.

24) Office of Economic Adviser vide itsletter dated 19/9/2012 endorsed the recommendations of Tariff Commissionon Naptha, to the Ministry of Revenue.

25) Department of IP&P has placed the executive summary and findings of theCommission’s report on “Review of Performance of Cement Industry” on its Web-site” for obtaining the views of various stakeholders. (Ref. email dated 10th April, 2013)

26) Department Related Parliamentary Standing Committee for Commerce in its 95th report on Performance of Cement Industry adopted Tariff CommissionsReport on Cement Industry submitted to DRPSC in 2010. (dated 24th Feb., 2011)

27) The Report on Cement Industry submitted by the Commission to Department Related Parliamentary Standing Committee for Commerce in 2010 was also used by

the Competition Commission of India (reference order date 20.6.2012, in case no. 29/2010).

28) The normative transportation from the nearest rake point to block headquarters is reimbursed on the basis of per tonne, per Km, by the Department of Fertilizers on the basis of Tariff Commission’srecommendations. (PIB Note dated 8th Dec., 2011).

29) TherecommendationsofTariffCommissionon the final rates of concessions forAmmonium Sulphate (AS) produced by FACT and GSFC were accepted by the DepartmentofFertilizers(referenceLetterno. 22011/6/2009 dated 25/5/2012

30) The concession scheme on decontrolled Phosphatic&Potassic (P&K) fertilizers is substantially based on the recommendations of the TariffCommission. (PIB note dated 26th June, 2008)

31) The price of B-Twill bags recommended by the Tariff Commission is adopted bythe O/o Jute Commissioner using a price adjustment formula.(reference document on price policy for jute, para 2.28)

32) Tariff Commissions report on "study ofB-Twill Jute Bags- 2009 has been used by the Ministry of Textiles, while preparing the policy document on Jute Fibre.(reference acknowledgement on pg 250 of the document).

33) Ministry of External Affairs vide its letterNo. D.O. AC/202/20/2011 dated 2/6/2011 communicated that Commission’s report on India’s need for critical raw material and identification of sources of suchraw materials in Asia, Africa and LatinAmerica provided exhaustive and useful

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information to Indian Embassies and mission abroad and have been appreciated by most of the Missions /Posts abroad.

34) Commission’s report on Critical Raw Materials: Australia as Potential Source has been circulated to related missions byMinistryofExternalAffairsintheyear2012-13.

35) Department of Health using the two reports of the Commission on Copper-T and Tubal rings made substantial savings (reference letter no. S12012/21/2004- supply dated 26/4/2005).

36) The Commissions assessment of savings made by MoH&FW by procuring condoms by adopting the prices recommended by Tariff Commission during the period2004-05 - 2007-08, works out to Rs 135.15 crores.

37) Ministry of Food Processing Industry vide its letter No. 4-5/2008 –F&VP/NE dated 23/6/2011 have appreciated the effortsof Tariff Commission w.r.t. the threecomprehensive study reports on food parks.

38) Ministry of Housing & Urban Poverty Alleviation vide its letter No.O-17034/145/2009-H/FTS –1674 dated 30/1/2012 appreciated the report on analysisof shareofvarious tariffs (Taxes,fees of govt.) in cost of construction of residential Apartments/Houses in select States/UTs and select Urban Local bodies.

39) Ministry of Housing and Urban Poverty Alleviation has acknowledge the support of Tariff Commission in preparation ofReal Estate(Regulation and Development) bill, 2013. (PIB note dated 14th August, 2013)

40) Department of Expenditure vide their D.O. No. 6/9/03 dated 6/3/2009 expressed the requirement of the studies of TariffCommission for policy formulation.

41) Based on Commission's studies in the case of fertilizer sector Govt. has been determining the subsidies since 2006-07 in Phosphatic&Potassic fertilizers and Urea.

42) Report on Pricing of Cost Components of LNG Import and Regasification andTransportation Tariff of NG/R-LNGsuggestedsubstantialreductionintariffofHVJ pipeline i.e. Rs. 832/MSCM as against existingtariffofRs.1150/MSCM.

43) GAILhadenteredintogassupplycontractswith the consumers. Independent power producers are among consumers of gas. Gas transportation charges were being leviedbyGAILfromtheconsumersasperthese contracts. In the Commission’s study transportation tariff were worked outusing pipeline network principle. Report onTransportationTariff forKGBasinGasSupply Network suggested substantial reductionintariffsasbelow:

Tariff charged by GAIL Vs Normative Tariff

Rs./MSCM

Name of IPP Transportation TariffCharged by GAIL

Normative computed by

TCGVK Industry 805 298Spectrum Power

805 298

Reliance Energy 1,258 298LANCO 1,732 730

(*) Note: Recommendations of TC adopted with modifications

44) Report on Gas Transportation Tariff

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for Bajhera-Agra-Firozabad Spur line and Agra/Firozabad City Distribution Network suggests substantial reduction in transportation tariff of HVJ andAgra – Firozabad spur line and city gas distribution charges i.e. Rs. 1014/MSCM as against Rs. 1217/MSCM.

45) TheTariffStructureforglasscomponentsused for CPTs were endorsed to the Department of Revenue and Department of Commerce by the Department of Information Technology

Tariff Commission in its endeavor toencouragetheusageofOfficiallanguagecelebrated Hindi Pakhwara during the fortnight of 01st September 2016 to 14th September 2016. The theme for this year's Hindi Pakhwara was "SPIRITUALITY (ADDHYATMA)". In addition the Commission publishes Hindi Magazine called “Diva”. Diva magazine has been published on the following themes – Vivekananda Visheshank, KarmayogiVisheshank and Mahtama Gandhi Visheshank.

The following reports of the Commission have been translated into Hindi

a) Review of performance of Cement Industry.

b) Realistic price of Pregnancy Test Kid supplied by /s.HLL Life Care Ltd.(2009-10).

c) Quantum Value and Types of bio-resources exported from India – Plant based Normally Traded Commodities.

d) Report on Assessing the Price of 'Freedays' Sanitary Napkins.

e) Quantum Value and Types of bio-resources exported from India –

Medicinal Plants.

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

g) Report on Cost Study of Iodized Branded Salt (Vaccum& Refined)and Non-Branded Salt.

h) Report on Realistic price of Pregnancy TestKidsuppliedby/s.HLLLifeCareLtd.(2010-11).

i) Report on Quantum Value and Types of bio-resources exported from India – (Part –II –Spices & Aromatic Plants).

j) Quantum Value and Types of bio-resources exported from India – (Part –III – Horticulture Crops).

k) Report on Cost Study for levy Sugar Pricing

l) Report on Inverted Duty Structure on Special Casting Components including Hub, Base Frame, Bearing Housing and Main Shaft of WOEG.

m) Supplementary Report on Inverted Duty Structure on Special Casting Components including Hub, Base Frame, Bearing Housing and Main Shaft of WOEG.

n) Study for determining additional compensation for complex fertilizer produced byNaptha/FuelOil/LSHSbased Feed Stock under NBS Policy.

o) Note on calculation of Bonus due to amendments in Payment of Bonus Act, 1965.

Defining garbage as anything not in itsappropriate place, the cleanliness drive in the Commission revolved around cleanliness ot three

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levels i.e. physical, mental and spiritual involving physical cleaning of the immediate environment and cleaning of mind and soul.

The activities on cleaning the mind include channelizing thoughts for effective and focusedoutputs, inculcating the spirit of harmony, starting daily activities with prayers and introspection, organizing thoughts for efficient and focusedoutput through meditation, strengthening of team spirit for better participation in officialassignments including study reports through coordinated functioning of study teams, affirmation,teambuildingexercisesetc.

The spiritual activities include weeding out attitudes counterproductive to efficiencyand harmony through scientific methods ofaffirmation, introspection, yoga, meditation,motivational reading and reflection, doingaway with character liabilities by systematically weeding out one defect at a time, organizing competitions such as just a minute, elocution, poetry, essay writing, story writing, quizzes etc., with “Spirituality” as the theme. A daily check list is maintained to keep track of all the cleanliness aspects.

The progress is reflected upon collectively in afocusedway,onaweeklybasis,bywayofreflectionmeetings. These meetings are a platform for introspection, deliberation on important issues and pave the way forward. The meeting begins with prayers, introspection chart & reading of thoughtsofgreatleadersandAffirmationwhichreadsas"Throughourcollectiveeffortsweshallbring pride to our organization".

Office of the Salt Commissioner, Jaipur

Salt is Central Subject under Item no.58 in 7th Schedule of the Constitution of India. The Salt Commissioner's Office (SCO) is an Attached

Office of thisDepartment,with it’s headquarterat Jaipur. It is headed by the Salt Commissioner. There are three Regional Offices at Chennai,MumbaiandAhmedabad,besidesthefieldofficesin all the salt producing States. SCO was primarily responsible for administration of the Salt Cess Act, 1953 and rules made thereunder but the Salt Cess Act 1953 now has repealed in the Financial Bill 2015-16. It is also responsible for planning and facilitating production of salt, promotion of technological development, arranging equitable distribution and monitoring the quality and price of salt, custody and superintendence of departmental salt lands, promotion of exports and pre-shipment inspection, assignment fee, ground rent, undertaking about welfare measures, rehabilitation of salt works affected by naturalcalamities, etc.

The Ministry of Health and Family Welfare is implementing a plan scheme National Iodine Deficiency Disorders Control Programme(NIDDCP). SCO is the nodal agency for its implementation of components pertaining to monitoring of production and the quality of iodized salt at production level and its distribution to the consuming centers. SCO is the inspecting agencyforthe issueofexport-worthycertificatefor export of salt under theQuality Control and Export Inspection Act,1963.

Petroleum & Explosives Safety Organisation (PESO), Nagpur

The Organization is headed by Chief Controller of Explosives with its headquarter located at Nagpur (Maharastra). It is the nodal Organization to look after safety requirements in manufacture, storage, transport and use of explosives and petroleum. It hasfiveCircleOfficeslocatedinKolkata,Mumbai,Chennai, Faridabad and Agra and 18 Sub-circles Officesinthecountry.

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It has a Departmental Testing Station (DTS) at Gondkhairy, Nagpur where tests on explosives, safety fittings of road tanker, cylinders/containers are carried out. Fireworks Research and Development Centre (FRDC) at Sivakasi, Tamil Nadu for testing and development of eco-

friendly fireworks has been set up by PESO toensure safety and security of public and property from fire and explosion. The organization hasstatutory authority, entrusted with responsibilities under the following Acts and Rules framed hereunder:-

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Major Activities and Functions of PESO:

1. To approve layout and construction plans/licence for explosives manufacturing units and other installations;

2. To scrutinize returns of purchase, use and sale of explosives;

3. To regulate and implement safety regulation norms in over 2.56 lakh licensed premises/units used for manufacture, storage, transport and handling of hazardous substances;

4. To advise Port, Airport and Railway authorities in respect of transportation of explosives & other dangerous substance whenever asked for;

5. To impart training to police personnel, securityandotherofficersinsafehandlingof explosives.

Revenue and Expenditure:

The Organization has always been in revenue surplus. The trend of growth in revenue and expenditureof theOrganisation for the lastfiveyears are as below:-

Dec.

30.7

2

49.3

4

Modernization and Computerization:

The following steps have been taken to make the functioning of the organization more efficient,transparent and user friendly:-

Under the e-governance project of Government of India, the processes relating to internal functioning of PESO as well as those relating to providing various services have been re-engineered and made entirely online. The wide area network (WAN) and related IT infrastructure (hardware and software) have been upgraded. All the PESO offices have been brought underExplonet Network. All licensing transactions viz. construction approval, amendment, renewal, suspension, cancellation etc. are being done onlinebyallofficesacrossthecountry.Thedatais simultaneously updated on the PESO’s website. Applicants can also view status of their application and can also download letters issued by PESO.

All Explosives manufacturers including SMEs are submitting their explosive production data online on day to day basis, since 1st July, 2010 and submission of online returns is compulsory for Explosives Magazine licence holders. Under the Explosives Rules, 2008, the existing ERS (Explosives Return System) has been enhanced to compulsorily generate RE-11 (indent) on the part of purchaser. Preparation of RE-12 also goes through the checks and balances provided in the system to adhere to various provisions of the Explosives Rules. On actual receipt of explosives, the consignee accepts the explosives online in the ERS. Thus, features like knowing the real-time stock have further enhanced the ERS and streamlined transactions of explosives to a greater extent. Introduction of pass for use (RE-13) is another initiative launched for users of explosives in mines and other sites to streamline the usage and maintenance of records. This initiative will help curb misuse and mis-appropriation of explosives and will also bring accountability. Sites of use of explosives with names of blasters will also be captured in the database.

The indents for sale and use of explosives are generated by the system which does not allow any licencee to deviate from the rules. Quarterly

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Returns of explosives (RE7) are filed online bylicencees. All transactions (Returns) are cross checked by ERS.

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

For penal action under the Explosives Rules i.e. Suspension & Cancellation, email facility has been integrated with the internal application. The system sends email to concerned DM and SP in case the licence is suspended or cancelled under their jurisdiction.

E-filing of application for external stakeholders

under the Petroleum Rules, 2002, Explosives Rules, 2008 and Ammonium Nitrate Rules, 2012 hasstarted.Thesaide-filingfacilitieshavebeenintegrated with e-payment gateway, so as to make the licence fee payment cashless. The licensees have been provided with facility to register with PESOportalandmaintaintheirLicense-Portfolio.

Under the SMPV (U) Rules, 2016 and Petroleum Rules, 2002, an online module for Competent Persons has also been launched. This initiative has streamlined the online generation of test certificates by competent persons to a greatextent. The online generated certificates alsoget linked to respective licence file at the timeof processing of applications. During processing, PESOofficerscanviewonlinecertificates issuedby the competent person and can also verify his signature with the online record. This eliminates scopeforforgeryinthecertificationprocess.

Controller General of Patents, Designs and Trade Marks, Mumbai

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The Controller General of Patents, Designs and Trade Marks (CGPDTM) administers the Patents Act,1970, the Designs Act 2000, the Trade Marks Act 1999 and the Geographical Indications of Goods (Registration and Protection) Act,1999.The OfficeofController General of Patents, Designs and Trade Marks is located a t M u m b a i . The CGPDTM also advises the Government on matters relating to Intellectual Proper ty Rights. The Patent Information System and the Rajiv Gandhi National Institute of Intellectual Property Management (RNIIPM), both located at Nagpur comeunder the purview of the CGPDTM. The CGPDTM supervises the functioning of:

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

2. The Patent Information System(PIS) and R a j i v G a n d h i National Institute o f Intellectual Property Management (RGNIIPM) at Nagpur.

3. The Trade Marks Registry at Ahmedabad, Chennai, Delhi, Kolkata & Mumbai

4. TheCopyrightOfficeatDelhi

5. The Semiconductor Integrated Circuits Layout-DesignsRegistryatDelhi

6. The Geographical Indications Registry (GIR) at Chennai.

Major Areas of Activity in 2016-17

1. Infrastructure

Additional requirement of office space andexpansion of present IPO Buildings at IPO locations has become necessary in order to accommodate additional manpower being inducted. Office space expansion is being carried out at IPO Mumbai and IPO Chennai since 2015. This year, IPO Kolkata has also come under the ambit of expansion.

2. Human Resources

Recruitment process for 459 vacant posts of Examiners of Patents & Designs which includes 252 posts created under 12th plan and earlier vacant posts carried forward has been completed by National Productivity Council.

As of 31 December 2016, 394 selected candidates have joined the office, adding to the existingstrengthof130examiners.While thefirstbatchof 286 examiners have completed their training and are engaged in actual examination work, the second batch of 108 examiners is undergoing trainingattherespectivepatentofficelocations.

The proposal to fill up 58 posts of Examinersof Trade Marks & Geographical Indications by direct recruitment has been sent to UPSC. 27 posts of Deputy Controllers and 49 posts of Assistant Controllers in Patent Office, createdunder12thPlan,havebeenfilledupthroughthepromotion mode. Further, four Senior Examiners of Trademarks and Geographical Indications, who were selected through direct recruitment by Union Public Service Commission have joined the OfficeofCGPDTM.

100 Contract Examiners for Trade Marks have beenrecruitedbytheofficeofControllerGeneralof Patents, Designs and Trademarks so as to reduce the pendency of applications awaiting examination in trademarks in the Trade Marks Registry.

3. Awareness Generation

During 2016-17, the Office of CGPDTM hascontinued vigorously the activity of building IP awareness in the country. During the period from April to December 2016, 12 IP-awareness programmes have been conducted for MSME/Universities in different parts of the country,involving industry associations. 19 IPR Roadshows have been organized across various states in the monthsofJune-July,2016byDIPPandOfficeof

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CGPDTM in association with CII, PHD Chambers of Commerce,IndianChambersofCommerce,LaghuUdyog Bharti and Federation of Indian Export Organizations and NASSCOM. Officials fromOfficeoftheCGPDTMandCellforIPRPromotionand Management (CIPAM) gave address at each roadshow to sensitize the audience about the National IPR Policy and the IP system in India. TheseprogrammeswerefundedbytheofficeofCGPDTM.

During2016-17,theofficeofCGPDTMconductedIP awareness programmes jointly under CGPDTM/DIPP & OHIM bilateral collaborative project (now EU-India Intellectual Property Cooperation (EUIPO), which includes 4 programmes organized by Designs wing and 10 programmes organized by Trademarks Registry. Also, 2 programmes were organized under UK-IPO collaboration by the office of CGPDTM. A National Workshopon PCT System with the cooperation of WIPO and a training programme for Examiners of BRICS countries were organized at RGNIIPM Nagpur.

The officers of Intellectual Property Officehave participated as resource persons in 81 awareness programmes including 49 patent & design related programmes, 22 programmes on Trademarks and 10 programmes on GIR during 2016-17. These programmes were conducted by universities, industry associations, MSME, IITs and other technical institutes in the country.

4. Redesigning of the IPO Website

TheofficialwebsiteoftheCGPDTM,www.ipindia.nic.in, has been redesigned to make it more interactive, informative and easy to navigate. The website contains information which includes all IP-lawsandrulesadministeredby theOffice,reports, official e-journals, public search facilityof IP records, dynamic utilities for public, public notices and news.

5. IP Office Revenue

During the year 2015-16, the Patent Officegenerated revenue of 398.40 crore, Designs Wing Rs. 5.57 crore, Trade Marks Registry Rs. 183.16 crore, Geographical Indications Registry Rs. 0.03 crore and NIIPM/PIS generated Rs. 0. 27 crore. Thus, the total revenuegeneratedby theOfficeof CGPDTM during 2015-16 was Rs. 587.44 crore, which is 14.0 % higher than that earned in the year 2014-15. The total non-plan expenditure during 2015-16 was Rs. 37.77 crore. Thus, against a total revenue of Rs. 587.44 crore earned during 2015-16, IPO had a revenue surplus of. Rs. 549.67 crore.

During the period from April 2016 to December 2016, the total revenuegeneratedby theOfficeof CGPDTM is 433.22 crores, which includes the revenue of Rs. 290.47 crore generated by Patent Office, 3.75 crore by Design Wing , Rs 138.75crore by the Trade Marks Registry, Rs 0.07 crore by the Geographical Indications Registry and Rs. 0.18 crore generated by NIIPM/PIS. The total non-plan expenditure during the period from April to November 2016 was Rs. 40.84 crore.

A brief summary of the activities of the various offices under CGPDTM is given below:

Indian Patent Office

The Patent Office performs statutory functionsrelating to the grant of patents for inventions, renewal of patents, amendments, restoration of lapsed patents, grant of compulsory licenses, registration of patent agents etc. under the PatentsAct1970.TheHeadOfficeofthePatentOfficeisatKolkatawithbranchofficesatChennai,Delhi and Mumbai. The offices deal with theapplications for patents originating within their respective territorial jurisdictions.

Filing

A total of 46904 patent applications were filed

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during 2015-16, out of which 38417 patent applications were received through e-filingfacility. The number of applications examined during the year 2015-16 was 16853, whereas 6326 patents were granted and number of disposal of applications was 21987 during the above period.

The number of patent applications filed duringthe period from 1st April 2016 to 31st December is 33193, out of which 29485 patent applications havebeen received throughe-filing facility.Thenumber of applications examined during the period from 1st April 2016 to 31st December 2016 is 15649, whereas number of patents granted is 6347 and number of disposal of applications is 15910.

Patents (Amendment) Rules 2016

Patents (Amendment) Rules 2016, enacted on 16-5- 2016, provide special fee concession to startups in respect of their patent applications. Startupshavetopaypatentfees includingfilingfee at par with a natural person only; thereby providing 80% fee concession in patent fees as compared to other legal entities.

Indian applicants are also increasingly using the Patent Cooperation Treaty (PCT) route to obtain patents in other countries. The total number of international applications under the Patent CooperationTreaty(PCT)filedbyIndianapplicantsintheIndianPatentOfficeasReceivingOfficein2015-16was693;whereassuchapplicationsfiledduring April to December 2016 is 537.

International Searching Authority (ISA) and International Preliminary Examining Authority (IPEA)

The World Intellectual Property Organization (WIPO), a United Nations agency specialized in thefieldof Intellectual PropertyRights, in itsGeneral Assembly meeting held in September-October 2007 at Geneva recognized the Indian Patent Office as an International Searching

Authority (ISA) and an International Preliminary Examining Authority (IPEA) under the Patent Co-operation Treaty. This puts India in an elite group of21PatentOfficesrecognizedasISAandIPEA.Patent Office has started functioning as ISA/IPEAatPatentOfficeDelhiwitheffectfrom15thOctober, 2013.

During 2015-16, 711 international applications choosing India as ISA were received in Patent Offices at four locations, whereas during theperiod from April to December 2016, 680 such applicationshavebeenreceivedinPatentOfficesat four locations.

Dynamic Patent Search Portal

A comprehensive and dynamic Patent Search Portal has been developed in the IPO website. The patent search facility in the website has been considerably strengthened. The status of patent applications including publication, examination and grant as well as all post-publication patent documents are available freely for public search in the website.

Many dynamic utilities for patents have been madeavailable in thewebsite for thebenefitofthe public like, displaying the month of filingof Request for Examination for which First Examination Report is being issued; knowing the group-wise and location-wise dates of Requests of Examination (RQ) for which First examination Report (FER) has been sent to the applicants; displaying the status on disposal of patent applications by the respective examination groups during the specified period. The utilityfor facilitating search to ascertain the status of a patent has also been provided. Besides, the facility for displaying patents, which have expired or ceased tohaveeffectby reasonof failure topay the renewal fee has been provided by their number,titleandtechnical/scientificfield.Also,

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the facility for viewing “First Examination Report (FER)” issued (Jurisdiction and Group-wise) at all locations of Patent Office has been madeavailable. A Stock and Flow based Dynamic Utility for Patent has been made available to provide the applicants/stakeholders with the facility on realtimebasistoviewthePatentsunderdifferentstocks and the flow of applications at variousstages of processing.

E-Filing

E-filingmodulehasbeenmadefullycompatibleforonlinefilingofallformsandentriesoftheFirstSchedule of Amended Patents Rules of 2014 and 2016 and, new provisions of Patents (Amendment) Rules 2016 like withdrawal of applications, expedited examination, etc. have been suitably incorporated.Onlinefilingofpatentapplicationsand all related forms has been made mandatory for Patent Agents through Patents (Amendment) Rules 2016. With the objective of promoting onlinefiling,10%surcharge in feesonphysicalfiling has been introduced through Patents(Amendment) Rules, 2014, which has resulted in theincreaseofpatentonlinefilingtothetuneofabout90%.ThefacilityforonlinefilingofTradeMark applications and submission of other forms in trademarks has also been provided.

Requests of Examination (RQ) across four branch officefiledinaparticularexaminationgrouphavebeen merged to form a single queue based on RQ Filing Date, which are allocated for examination automatically through a system. Thus, the discrepancy that existed earlier among four branch officeswithrespecttotimewhenRQsinthesamegroup used to be taken up for examination has been removed. The auto-allocation of Requests of Examination (RQ) is irrespective of the number of examiners/controllersataspecificpatentofficelocation.

Comprehensive Payment Gateway

The Comprehensive Payment gateway (including internet banking, Debit and Credit Cards) for payment of patent and trademark fees integrated tothee-filingsystemhasbeenlaunchedon8thSeptember, 2014 to extend the facility of online payment gateway for Patent and Trademarks through multiple banks (about 70 banks) with Central Bank of India (CBI) as a focal and accredited bank. Due to introduction of Comprehensive Paymentgateway,theonlinefilingisexpectedtoincrease further for both patents and trademarks.

ThePatentOfficesubscribestomajorglobalpatentand non-patent databases for prior art search to be conducted by the examiners. The Manual of PatentOfficePractice andProcedures has beenprepared to ensure uniformity in operation and the same is available on the website. Further, the “Guidelines for Processing of Patent Applications relating to Traditional Knowledge and Biological Material” and “Guidelines for Examination of Biotechnology Applications” have been published intheofficialwebsite.

The Guidelines for examination of patent applications in the field of Pharmaceuticalshavealsobeenpublishedintheofficialwebsite.The digitization of old patent records is almost complete and current patent records are digitized immediately after filing the documents so thatthese are available for examination. These steps haveresultedinasignificantimprovementintheperformanceoftheoffice.

Electronic payment gateway for PCT application fees has been introduced w.e.f. 1st April 2016 to avoid delay in transmission of fees for PCT applications to International Bureau and International Searching Authority. This encourages cashless transactions.

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Rajiv Gandhi National Institute of Intellectual Property Management (RGNIIPM) and Patent Information System (PIS), Nagpur

The Rajiv Gandhi National Institute of Intellectual Property Management (RGNIIPM) Nagpur is a specialized institute for catering to training, education, research and think tank functions in the field of Intellectual Property. It providestraining to Examiners of Patents & Designs and regularly conducts refresher courses for them. It also organizes awareness programmes for users such as patent attorneys, scientists, researchers, industries etc.

Patent Information System (PIS) at Nagpur maintains a comprehensive collection of patent specifications and patent related literature onworldwide basis and provides technological information contained in patent or patent related literature through search services and patent

copy supply services to various users of industry, R&D organizations, inventors, Government departments, undertakings/ entrepreneurs, business community and other IP users within India.

During the period from April to December 2016, RGNIIPM has conducted induction training for 396 new Examiners of Patents & Designs. The institute also conducted 40 public training programmes of various durations and 25 IP awareness programmes for the benefitof stakeholders. Besides, RGNIIPM conducted National PCT Workshop in collaboration with WIPO and the special training programme for Patent Examiners from BRICS countries.

Industrial Designs Wing:

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The registration of industrial designs under the Designs Act 2000 is done by the Designs Wing of thePatentOffice locatedatKolkata.FilingofdesignapplicationsinbranchofficesatChennai,Delhi and Mumbai is also permitted. The thrust of the modernization programme of the Design office includes transition from the essentiallypaper-based examination procedure to an IT based system supported by computerization of existing records, online search facilities, setting up a user-friendly website and creation of a digital library.

Filing

During 2015-16, the number of new applications for design received was 11108 and the number of design applications examined was 9426 whereas 7904 designs have been registered during this period. During the period from 1st April 2016 to 31st December, 2016, 7612 new applications for design registration have been received, 9503 applications have been examined and 5421 designs have been registered.

Trade Marks Registry (TMR):

The Trade Marks Registry (TMR), with its Head Office at Mumbai and branch offices atAhmedabad, Chennai, Delhi and Kolkata, performs statutory functions relating to administration of the Trade Marks Act, 1999 and maintaining the register of trademarks.

Filing

During 2015-16, 283060 applications for trademarkswerefiled,267861applicationswereexamined and a total of 116167 applications were disposed of out of which 65045 trademarks havebeenregistered.Outoftotalfiling,267390applicationshavebeenfiledbyIndianapplicants.

During the period from 1st April 2016 to 31st December 2016, a total 209563 applications for trademarkshavebeenfiledoutofwhich130742applicationshavebeenreceivedthroughe-filing

facility.Outofthetotalfiling,200836applicationshavebeenfiledbyIndianapplicants.Applicationsexamined during this period are 416821 and the applications that have been disposed of are 184168, out of which 160363 trademarks have been registered. The total number of registered trademarks in India as on 31st December 2016 is 1169775 out of which the number of registered trademarks by Indian applicants is 1007286.

Madrid Protocol

The Government of India acceded to the Madrid Protocol for international registration of trademarks on 8th April 2013 and the provisions relating to the international registration of trademarks under the Madrid Protocol came into force in India since 8th July 2013. An International Registration Division has been set up in the Trade Marks Registry Mumbai for functions related to the Madrid Protocol.

The Indian Trademark Registry functions as an officeoforiginfortheIndianapplicantswhoseekinternational registrations of their trademarks through Madrid Protocol, and as an office ofdesignated Contracting party for the foreign applicants, who seek protection of their trademarks in India through international registrations under the Madrid Protocol. These functions are carried out only through the online system. Till the end of year 2015-16, a total of 23632 international applications,seeking protection of trademarks in India’ were forwarded by WIPO to the Indian TrademarkOfficeforconfirmingprotectionofsuchmarks in India, whereas 31276 such applications have been forwarded by WIPO till 31st December, 2016.

Dynamic Trade Mark Search Portal

A dynamic Trade Mark Search Portal has been developed in the IPO website and many dynamic utilities on trademarks have been made available to the public like, online tool for attending to the requests for correction of clerical errors in the

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trademark records, availability of the details of TMR hearing and adjournment, displaying on real time basis the details of examination of trademark applications, show-cause hearings, publications in the trademark journal, registrations of trademarks, other disposals of applications (i.e. by way of abandonment, refusal etc.), other notices issued month-wiseordate-wise,classificationofgoodsand services under section 8 (1) of Trade Marks Act, 1999 for the purpose of registration of trademarks andonlinefilingofreplytoanexaminationreportin respect of trademark application through the comprehensivee-filingservicesfortrademarks.

Further, the comprehensive details of pending Trade Mark Applications as well as Registered

Trademarks including the scanned copies of documents, prosecution history, examination report, copy of the application, copy of the trademarkcertificate,oppositiondetailsetc.havebeen made available free of cost to the public throughtheofficialwebsite.

A Stock and Flow based Dynamic Utility for Trademarks has been made available to provide the applicants/ stakeholders with the facility on real time basis to view the Trade marks under different stocks and the flow of applicationsat various stages of processing. Trademark registrationcertificateshavebeenmadeavailableonline and the same can be downloaded directly by the applicants.

Geographical Indications Registry (GIR):

The GIR is a statutory organization set up for the administration of the Geographical Indications of Goods (Registration and Protection) Act, 1999, which came into force on 15th September 2003. The Registry is situated at Chennai. Total 282 Geographical Indications (GIs) have been registered as on 31st December, 2016.

The list of registered GIs (products) inter alia includes Darjeeling Tea, PochampalliIkat, Chanderi

Fabric, Kota Doria, Kancheepuram Silk, Mysore Agarbathi, Mysore Silk, Madurai Sungudi, Kullu Shawl, Assam (Orthodox), Nilgiri (Orthodox), Kani Shawl, Kashmir Pashmina, Kashmir Sozani Craft, LucknowChikanCraft,VenkatagiriSarees,VillianurTerracotta Works, Mango MalihabadiDusseheri, Vazhakulam Pineapple, GirKesar Mango, Udupi MattuGullaBrinjal, etc.

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Filing

During 2015-16, 17 applications for Geographical Indications were received and 26 applications were registered. During the period from April-December 2016, the Geographical Indications Registry has received 30 applications which are under processing whereas 21 applications for GI have been registered.

Awareness Programs

The Geographical Indications Registry has conducted many awareness programmes throughout India to promote registration of the Indian Geographical Indications. The focus sectors are tea, coffee, rice spices, tobacco, horticultureproducts, handloom products, handicrafts, textiles, processed food items, and spirits & wines.

During April-November 2016, Geographical Indications Registry has conducted 4 awareness programmes/ seminars/workshops on GI and participated in 5 programmes conducted by external agencies.

Copyright Office

Acquisition of copyright is automatic and it does not require any formality. Copyright comes into existence as soon as a work is created and no formality is required to be completed for acquiring copyright. However, as per section 48 oftheAct,certificateofregistrationofcopyrightand the entries made therein serve as prima facie evidence in a court of law with reference to dispute relating to ownership of copyright. The State Governments are responsible for the enforcement of the copyright law through their respective police forces.

Modernization of Copyright Office

The E-filing facility was started on 17-02-2014and a new logo of Copyright with newly designed Certificateisbeingused.Digitizationofcopyrightrecords is under process.

31D Statutory license for broadcasting of literary and musical works and sound recording.

Department of Industrial Policy & Promotion (DIPP) Ministry of Commerce & Industry has issuedanOMNo.14-35/2015-CRB/LU/IPR-VIIon5thSeptember,2016regardingStatutoryLicensingas per provision of Section 31D of Copyright Act, 1957. It was clarified in the said OM that theprovisions of Section 31D are not restricted to radio and television broadcasting organizations only, but covers internet broadcasting organizations also.

Scheme for the Promotion of Copyright and Intellectual Property Rights

The Scheme for the Promotion of Copyright and Intellectual Property Rights is being implemented. The scheme is aimed at creating world class quality and diverse human resource in intellectual property rights in India to meet the emerging challenges of a dynamic knowledge society with a focus on requisite skill development for improving IP output and creation of IP assets, with a mission to create capacity and capability in IP management, enforcement, awareness, education, training and research through a multidisciplinary approach.

Intellectual Property Rights Chairs (IPR Chairs)

Under the scheme 19 IPR Chairs have been set up so far in various universities and institutes for development and growth of IPR education, research and training. Out of 19 IPR Chairs, six (6) IPR Chairs are in universities (i.e. CUSAT, Cochin; Faculty of Law, Delhi University; ClusterInnovation Centre, Delhi University; Jawaharlal Nehru University; Delhi, University of Madras and Tezpur University), six (6) IPR Chairs are in IITs (Delhi, Kanpur, Kharagpur, Bombay, Roorkee andMadras), five (5) IPR Chairs are inNationalLaw Universities (NLSIU, Bangalore; NALSAR,Hyderabad;WBNUJS,Kolkata;NLIU,Bhopal;and

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NLIU, Jodhpur) and two (2) IPR chairs in IIMs (Kolkata and Bangalore). Some of these Chairs have created necessary infrastructure facilities, appointed faculty members and have started functioningfully,whilefewothersareatdifferentstages of operationalization.

Apart from policy support to the Ministry each IPR Chair has to conduct activities / quality research resulting in academic papers of high value to generate and sustain interest in IPR research by holding national or international level IPR Conference, Seminar or Workshop on IPR issues including one programme of training of trainers every year, as per norms of the Scheme.

Copyright BoardThe Copyright Board is quasi – judicial body under section 11 of the Copyright Act, 1957. The jurisdiction of the Copyright Board extends to the whole of India. The Copyright (Amendment) Act, 2012 which came into force w.e.f. June 21, 2012 provides for a three member permanent Copyright Board consisting of a Chairman and two other members. The Copyright Board has the power to:

i. hear appeals against the orders of the Registrar of Copyright;

ii. hearapplicationforrectificationofentriesmade in the Registrar of Copyrights;

iii. adjudicate upon disputes on assignment of copyright;

iv. grant compulsory licenses to publish the works withheld from public;

v. grant compulsory licences to publish published and unpublished works if author is unknown;

vi. grant compulsory licences for benefit ofphysically disabled persons;

vii. grant statutory licences for sound recordings under the cover-version provision;

viii. grant statutory licences for in respect

broadcasting literary and musical works and sound recordings for Radio and TV broadcasting;

ix. grant compulsory licence to produce the publish a translation of a literary or dramatic work in any language after a period of seven years from the firstpublication of the work;

x. grant compulsory licences to publish or republish works (in certain circumstances);

xi. hearanddecidedisputesregardingTariffScheme of Copyright Societies;

xii. hear and decide disputes as to whether a work has been published or about the date of publication or about the term of copyright of a work in another country; and

xiii. fixtheresalesharerightinoriginalcopiesof a painting a sculpture or a drawing and of original manuscripts of a literary or dramatic or musical works.

Central Manufacturing Technology Institute, Bangalore

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

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CMTI continues to support the Indian engineering industry and various sectors through its value added services in manufacturing technology and product development/realization activities. It continues to play a vital role of a catalyst in the application of manufacturing technology. The Institute is equipped with trained manpower, equipment and facilities for design, research, prototype production, manufacturing, testing, inspection, calibration, product development, training and technical information.

The equipment, facilities and expertise required have been acquired & special civil infrastructure facilities are completed except for the Heating, Ventilation and Air Conditioning (HVAC) for the flagshipprojectNanoManufacturingTechnologyCentre (NMTC).The R&D projects that have been completed are now ready to be deployed for commercial applications. Vision lab has been set up to meet the special needs of vision based non-contact measurement. New ‘skill development’ training courses have been launched to enhance Human Resource Development (HRD) activities through Academy of Excellence for Advanced Manufacturing Technology (AEAMT). Regional Centre at Rajkot has been augmented with new measurement facilities to cater to metrology needs of Rajkot region.

As part of “Sensor Technology Development Facility (STDF)” for developing miniature, micro & nano level sensors, infrastructure & packaging equipment procurement are in progress.

The design of prototype Development of High SpeedShuttlelessRapier Loom technology is inthe advanced stages of completion.

CMTI inked MoUs/NDAs with (i) Faiveley TransportRailTechnologiesIndiaLimited(FTRTIL) New Delhi, GOI, (ii) Licensingagreementwith i2ntechnologies for commercialization of compact portable Scanning Tunneling Microscope

"The administrative control of the Central Manufacturing Technology Institute has been transferred to the Department of Heavy Industry under the Ministry of Heavy Industries and Public

Enterprises from January, 2017."

Performance During The Year

XII Plan Projects on Advanced Technology Areas:

a. Nano Manufacturing Technology Centre (NMTC)

As a part of this Flagship project under DIPP,

i. Collaborative R & D and related activities namely (a) Development of Digital Micro mirror Device based Projection Microstereolithography(PµSL)System,(b)Development of Nano precision motion system for ultra-precision machines (c) Development of Prototype of Magnetic Abrasive Finishing & Deburring Machine (MAFD) for Nano Finishing & Micro Deburringis completed and is being readied for commercial deployment.

ii. The following R&D projects are in various stages of progress

a) Development of Compact portable Scanning Tunnelling Microscope.

b) Development of micro needle array based electrode for bio potential measurement.

c) Development of Metal mirrors by Single Point Diamond Turning (SPDT) Process for space Applications.

iii. The civil structural work of the NMTC building has been completed. Tender documents for bulk services of the NMTC building (HVAC, Clean room, electrical, PHE,etc)arescheduled tobefloatedbyJan. 2017 and the work to be completed by December, 2017.

b) Academy of Excellence for Advanced Manufacturing Technology (AEAMT)

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

i. The second batch has commenced as

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part of the two year M.Tech program on Additive Manufacturing from August 2015 in collaboration with NIT, Warangal.

ii. The third batch has commenced as part of the two year M.Tech programme on Design & Precision Engineering from August 2015 in collaboration with NITK, Surathkal.

iii. A two year M.Tech programme on “Advanced Manufacturing Technology” in collaboration with Karunya University, Coimbatore was launched in 2016.

iv. The sixth batch of Post Graduate Diploma in Advanced Manufacturing Technology (PGDAMT) course is completed. Seventh batch has completed the second semester curriculum at CMTI.

v. A one year Post Graduate Diploma in AdditiveManufacturing Technology (PGDAMT) program was launched in collaboration with College of Engineering, Pune. CMTI Scientists are delivering lectures as adjunct faculty through video conferencing.

c) Sensor Technology Development Facility (STDF)

R&D and other activities of STDF are:

1. R & D Project

i) Machine Health Management System with integrated thermal and vibration sensor nodeisunderfieldtrials.

ii) ‘3D Scanner - Fringe Projection Technique and‘LaserScanningTechnique’areunderfinal stage of testing for measurementvalidation.

iii) Evaporation, Dry Etching and deposition systems are in the advanced stage of procurement.

iv) Installation and commissioning of

following equipment are completed (a) Wafer Dicer , (b) Critical Point Drier, (c) Optical Microscope, (d) Bond pull and Die Shear Test System, (e) Impedance Analyzer (f) Software Tools for MEMS Design and Analysis.

v) Following equipment have been received at CMTI and yet to be installed. (a) Flip Chip Bonder (b) X- Ray Inspection System, (c)LeakDetector

2. Design & Development

The Institute undertakes design and development of Special Purpose Machines, Equipments& Test systems for customers. Currently, the Institute is involved in the following development projects.

a) 4.5 T Vertical Planetary Mixer the second in line od similar mixer for ISRO is in progress with placement of purchase orders for major critical bought outs and sub contracted items and manufacturing of components.

b) Spill collection system for the earlier supplied mixer for ISRO is in progress with placement of PO’s and manufacturing of components.

c) Supply of critical spares for the earlier supplied MY120Vertical Planetary Mixer to DRDO is in progress.

d) Twin Screw Continuous Mixer (TSCM) development of the production model is completed.

e) ThefinalizationofdesignofprototypeofHighSpeedShuttlelessRapierLoomisinprogress with the development of various novel mechanisms.

3. Precision Manufacturing Services

Development of technology for manufacture of precision and micro parts, providing machining services for in-house projects, meeting external

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requirements in addition to R&D design are the focus of Precision Manufacturing services.

a) Copper nano-particles of size 40-60 nm were developed by using Femtosecond laser ablation under double distilled water.

b) Array of Micro-gratings consisting of width 2 µm x 1 µm deep were machined on Aluminium to optimize the Femtosecond laser parameters.

c) Machining of micro V-notch of 40 x 90 µm in stainless steel coated with ceramic used for material testing applications.

d) Slots of size 0.64 x 5.97 mm were cut on glass wafer required to insert micro cables in MEMS applications.

e) Machining of spiral grooves with depth of the groove 2 µm on spherical surface using femtosecond laser for bearing applications.

f) Machining of micro-fluidic device inBorosilicate glass used in processing and analysis of single cells in Bio-medical applications.

g) MachiningofmicrofluidicchannelinPSA(Pressure Sensitive Adhesive) material for use in MEMS applications.

h) Machining of mask in OHP sheet required for resistor coating. The resistors developed by PVD coating are used in sensor applications.

4. Additive Manufacturing

a) Direct Metal Deposition (DMD) Additive Manufacturing of Single-groove sleeved & Double-groove Turbocharger Shaft are completed.

b) LaserSinteringofBronzeNickelandBronzeNickel-Graphene by DMLS process” iscompleted

c) Direct Metal Laser Sintering (DMLS) of

H20 wear test specimens completed.

d) The following Projects are being undertakenby Direct Metal Deposition (DMD) Process

i) Development of Wear & Corrosion-resistant Colmonoy Bush.

ii) Development of Bi-metallic parts.

iii) DirectionallysolidifiedInconel718.

5. Technology Development

a) Technology developed for manufacture of Fuel Ductor having dimensional and positional tolerances in the order of 10 – 20 µm made of stainless steel for aerospace applications.

Fuel Ductor

b) Technology developed for manufacture of Integral Balance set made of MDN 300 steel having positional and dimensional tolerances in the order of 5-10 µm is used for measuring forces exerted on Aircraft scaled models during wind tunnel testing application.

c) Technology developed for manufacture of Micro Needles having dimensional tolerance in the order of 5µm and Needle electrode tip diameter of 10 µm made of PMMA Which finds application inbiopotential measurement

d) The development of Sphere LappingAttachment for CNC turning lathe to

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produce accurate form and Nano level surface finish on spherical surfaces, formedical implants is completed.

SphereLappingAttachment

e) Some of the manufacturing technology development projects (continuing activity) are:

i) Manufacture, assembly & testing of airborne quality hydraulic system filtersfor use in aircrafts.

ii) Hydrodynamic bearings having an accuracy <1µm and a surface finish of<50nm.

iii) Hyperbolic feed rollers of SPM’s used in bearing having high geometrical accuracy in the order of 5 µm and their surface quality in the order of 0.4µm.

6. Testing & Evaluation

a) Development of telescopic cover test rig is completed

b) A new feature SEA (Spindle Error Analyser) added to the already developed Spindle Test Rig.

c) Development of hydraulic actuator mechanism for cowl movement for aerospace application is completed

d) Development of Battery operated hydraulic rig to charge parking brake

accumulatorofLCAiscompleted.

e) Development of Qualification testing ofLeading edge slat actuator is nearingcompletion.

f) Annual Maintenance on Heat exchangers pressure cycling test rig and Thermal performance test facility.

g) Annual Maintenance on Pump test Rig facilitiesdevelopedforLCApumps

h) Overhauling & testing of Stud Tensioning equipment is completed.

Testing and evaluation of airworthy products are taken up as a continuing activity:

i) Proof pressure test on Actuator cylinder.

ii) Pressure Impulse test and proof pressure test on Ti Tubes.

iii) Assembly and acceptance testing of hydraulicsystemfilters

iv) Impulse fatigue test on Retraction actuator

v) Pressure cycling, Thermal shock, Proof pressure and burst pressure test of combined condenser & liquid air heat exchanger and air cooled liquid cooler of LCA,Mk2.

i) Pressure cycling test & Ageing test on hydraulic filters, Testing of pneumatic cylinders, Filtration efficiency test anddirt holding capacity test, Pullout test on hydraulic tubes, Calibration of thermal relief valve & Automatic particle counter, Inspection, integration and proving of hydraulic power pack with special purpose machines, Testing of hydraulic elements, measurement of oil contamination level, component cleanliness level checking, calibration of pressure gauges, temperature transducers, thermometers & RTD, hydrostatic pressure testing and supplyofcalibrationfluidwerecarriedoutas routine testing services. (183 assignments).

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j) TheChemicallaboratory(NABLaccredited)provided services in the area of chemical analysisofmetalsandalloys,identificationof metal coating and measurement of metal coating thickness, surface treatment, oil analysis and corrosion testing of components using salt spray chamber (607 Assignments).

k) Annual Maintenance for Pump Test Rig FacilitiesofLCAPumpscontinued

l) Qualificationtestingonsolenoidvalve

m) Annual Maintenance of Heat exchangers’ pressure cycling test rig and Thermal performance test facility.

7. Calibration & Inspection Services

a) Calibration of masters and inspection of very accurate components in the area of length,angle, form,surfacefinishandgears with traceability to international standards (438 assignments).

b) Calibration of gauges and masters carried out in the following major areas: Gauge blocks of all grades (‘K’/‘00’, ‘0’, ‘1’ and ‘2’), Angle gauge blocks, by comparison measurements with uncertainty on par with National/International laboratories.

c) Calibration of Masters: Surface roughness masters for parameters of roughness, groove depth, glass hemi-spheres, flickstandards, Artefacts like gear masters (involute&profileMasters),helix& leadmaster; optical flats, optical parallels;caliper checker/Check Masters, Radius Masters, Roundness Master, Reference Master Setting Rods, Master Glass Scales, Glasshemi-spheres,flickstandards.

d) Calibration of instruments / equipment Limit Gauges (Plain, Threaded & Taper),Equipments like extensometers, height gauges, depth gauges, micrometers etc., master cylinders, Cylindrical Squares; glass

scales, setting plug/ring gauges, thread plug gauges, Ring Gauges, Granite/Steel Squares, Thread measuring wires, Thread pitch micrometer, Ball bar.

e) On-site calibration of (27 assignments): I) Coordinate Measuring Machineii) ULMMiii) Gear Testing Machinesiv) CNC Machines

f. In addition, conventional measuring aids/ gauges/ instruments like Vernier and Dial Callipers, Master Balls, Scales, Test Sieves, Tapes,SpiritLevels,ElectronicLevels,DialGauges, Test Mandrels, Clinometers etc., were also calibrated.

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

h. Inspection & Measurement services include Dimensional and geometrical measurements of Pickup Segments & Radiating Segment, Pumping Plate, Bearing Cover, Cover Plate, Plate Mounting,Pneumaticcylinder/MotorLift,Master Gears.

i. Surface engineering activities continued research works in the area of LowTemperature CNT Growth for super black materials application in satellite, Sputtering of Titanium Nitride (TiN) on PMMA and optimized for its stoichiometry, bio-compatibility and improved electrical conductivity, DLC for

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industrial applications.

Collaborative R & D initiatives of Surface Engineering in various stages of progress include

i) RESPOND programme for development of carbon nanotubes for super black materials application.

ii) The development of DLC for nightvision application, an indigenous technology development for night vision lenses for Far IR region.

j. Noise & vibration analysis 20 assignments)

i) Vibration measurement of Centrifugal pump

ii) Self induced vibration measurement of transformer

iii) Vibration measurement of motor gear boxt

iv) Sound intensity measurement

v) Sound Power Measurement and Structure Borne Measurement of HVAC units

vi) Ground Vibration Measurement –Services in the field of groundvibration measurement were rendered.

8. Facilities Added / Upgraded

a) The following facilities were added/ upgraded under the various plan projects:

i. CAD/CAE Workstations

ii. CMM upgradation for performance improvement

9. Technology Transfer/ HRDa) 16 Scheduled and 8 Exclusive training

programs were conducted to train 254 participants for over 748 hours

b) 3 projects guided by CMTI scientists are offered for M.Tech students from

engineering colleges across India.

10. Publications & Papers

a) Design and development of microneedle array based electrode for bio-potential measurement’, International journal of Nano Manufacturing (IJNM)

b) "Modeling for Evaluation of Surface Roughness in Magnetic Abrasive Finishing of Flat Surfaces ", International Journal of Precision technology.

c) “AhighspeedportableXYflexure-basedNanopositioning stage”, ”International Journal for Scientific Research &Development, Pages 868-871 Vol.4 Issue 6, 2016.

d) “Design and analysis of a single-fixure parallelogram mechanism basedx- y nanopositioning state” Int. J. of Mechatronics and Manufacturing Systems, 2016 Vol.9, No.1, pp.24 – 35

e) “Development of Electro Hydraulic Force Exciter”, Fluid Power Technical seminar 2016.

f) The monthly journal ‘Manufacturing Technology Today’ is being brought o u t regularly.

CMTI has entered into an agreement with Informatics Publishing Limited, Bangalore for online hosting, as well as promotional activities through i-Scholar for the Manufacturing Technology Today journal.

11. Patent

Thefollowingpatentsarefiled

a) Patent on RCC as an Alternate Material for Machine Tool structures.

b) Testing of Writing Instruments

c) System and Method for making Micro-needleusingMSL

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12. Visit of Dignitaries & Delegations

Several International and Indian dignitaries from Industries, Government and Research Organisations visited CMTI for Technical Discussions/Business proposals and familiarization with the facilities and activities of the Institute.

a) Shri Ramesh Abhishek, IAS, Secretary, DIPP, Ministry of Commerce & Industry, Govt. of India accompanied by Shri Shailendra Singh, IAS, Joint Secretary, DIPP, visited the Institute on 11th June 2016 to witness the spectrum of activities and facilities.

This was followed by a walkthrough, wherein CMTI showcased the on-going work, extensive R&D undertaken by CMTI.

BriefingofTwinScrewContinuousMixer

Shri Ramesh Abhishek concluded his visit lauding CMTI for carrying out impressive & sensitive workandappreciatedtheeffortsbeingmadeinproviding support to Manufacturing Sector and remarked in the Visitors’ Book:

“Very Impressive Facility, We will make it stronger to deal with challenges of the future”

b) Shri Ramesh Hadagali, Retired Deputy Chief of Armed Forces visited the Institute on 1st July 2016 to familiarize the R & D activities carried out, Infrastructure and facility available at the institute.

c) Prof. Guy Littlefair, Pro Vice –Chancellor, Industry Development and Dr.AshwinPolishetty, Research Fellow, School of Engineering, Faculty of Science Engineering & Built Environment, Deakin

University, Australia, visited Institute on 1st July 2016, to study the infrastructure, facilities and activities carried out at the Institute on high end technology fieldssuch as additive manufacturing and to propose Joint Research Collaboration projects.

d) Shri S Sarkar, Associate Director, Chemical Technology Groupand his Team, BARC, Mumbai, visited the institute on 28th July 2016 for discussion regarding the ongoing project.

e) Shri Siddu B Nyamagouda, Former Minister of State for Coal and Mining and presentMLA, Bagalkot District, visited the Institute on 29th July 2016 to familiarize the R & D activities carried out, Infrastructure and facility available at the institute and for discussion regarding setting up of Skill University.

f) Prof Roy Rajkumar, f rom Cranfield University visited CMTI on 12th November 2016. Nano fabrication and laboratory facilities to explore possible collaborative avenues in ultra precision machine building and machining

g) Mr. Nick Cliffe, (Lead Technologist onResourceEfficiency)InnovateUK,whichisthe innovation arm of the UK Visited CMTI on 15th November 2016 for conducting a study to explore the potential for a UK-India jointly funded research centre for advanced manufacturing technologies in India.

h) UK delegates from Cranfield andNottingham University visited CMTI on 16th November 2016 for discussion and future collaboration possibility with CMTI in advanced manufacturing areas.

i) Dr.Kavita Gupta, Textile Commissioner of

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India,Ministry of Textiles, Govt. of India visited CMTI on 17th November 2016. She appreciated the work carried out by CMTI indeveloping the powerloomShuttleless machinery. Also she indicated that in CMTI’s success depends the future of shuttlelesspowerloom development in the country.

j) Visit of Shri B N Satpathy, Consultant (Industry), NITI Aayog to CMTI on 24th November 2016 to familiarize the R & D activities carried out, Infrastructure and facility available at the institute

13. Technical Lecture Programmes / Seminars

The following Technical / General presentations were arranged.a) “PADS Standard Plus” on 19th -20th

October 2016 by Mentor Graphics.b) “Solid Work Software” on 7th-8th November

2016 by Beaconc) Technical Presentation and demonstration

of ‘FARO3DX330LASERSCANNER’bySSrinivasan , Dy. General Manager, Smart LabtechPvt.Ltd.,Bangaloreon12th August 2016

d) “Prevention of Sexual Harassment of Women’s at Workplace” on 26th August 2016 by Dr. V S Elizabeth & Ms. Sumitra Acharya

14. HR Initiatives for CMTI Scientists

a) Participation in Conferences, Workshops, Seminars:

CMTI scientists were deputed for various conferences and seminars covering fatigue, durability, and fracture mechanics, MSC Software Simulation & Analysis, 3D - experience forum India, TWINCAT3, Application of system approach for precision grinding processes, “Visionary Leaders For Manufacturing (VLFM) 2016-17Senior Management Training Programme”, ANSYS tool, Bench marking, Particle counters, Solid

works software, NI days 2016, MEMS Fabrication & Characterization, Design & Implementation of Closed loop Nanopositioning Stage, etc.

i) CMTI Scientists delivered talk on ‘Machining Forming and Joining’, ‘CMTI Efforts for Skill Development’,‘Advanced Material and Processes’ in the 31st National Convention of Production Engineers, of the theme ‘India Emerging as a Manufacturing Hub of the World by 2020 – Prospects and Pathways’ on 6th and 7th May 2016, at the Institution of Engineers (India), Karnataka State Centre, Bengaluru

ii) CMTI Scientist presented the spectrum of activities of the CMTI, with highlights of the core strengths of Metrology and other laboratory services of the Institute. He also presented the Regional centre, Rajkot activities/ services and the need for upgradation of the centre to enhance the spectrum of activities by considering the demands of the region during the Technology Meet – Rajkot held on 3rd June 2016

iii) CMTI Scientist attended the R&D meet at Hubli on Industrial Valves, 29th July 2016 and made presentation on technologies andexpertiseavailableatCMTIspecifictoIndustrial Valve Technology organised by Department of Heavy Industry, GoI.

iv) ‘World Association of Industrial Technological Research Organisations (WAITRO)’ had conducted 23rd General assembly and Biennial Congress at from 26th to 30th Sep 2016 at Medellin, Colombia.

v) The Biennial Congress was hosted by CDET, Colombia and attended by representatives from more than 40 countries. CMTI is an active member of WAITRO and attended the Biennial congress and General Assembly.

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Meeting with WAITRO Secretary-General, Dr. Rohani Hashim, WAITRO New President, Dr. Yonvut SaavaprukandotherOfficebearersofWAITRO

vi) CMTI scientists participated in Machine Tool Fair at Brno Czech Republic for Technology Scouting, organised from 3rd to 7th October 2016.

b) Training on Advanced technology equipment

i) Two Scientists participated in the 4th meeting of Indo-Czech joint working group on Advanced Manufacturing & Heavy Engineering and visited MSV Engineering fair at Brno from 3rd to 6th October 2016.

ii) Two Scientists deputed to SET, France for training on Flip Chip Bonder.

iii) One Scientist was deputed toM/s. Thermo Fischer Scientific (Ecublems), Switzerlandfrom 18th to 22nd July 2016 for training on advanced version of Optical Emission Spectrometer (OES) with the special features of OXSAS software

iv) Dr. N. Balashanmugam, Joint Director, CMTI was awarded with PhD degree from NIT, Surathkal. The PhD degree was bestowed to him for the research work carried out on “Development and Characterization of Microneedles based electrode for bio-potential measurement”.

15. Memorandum of Understanding/ Non Disclosure Agreement

a) CMTI inked MoU with Faiveley Transport

RailTechnologiesIndiaLimited(FTRTIL)forSound Power Measurement and Structure Borne Measurement of HVAC units

b) Licensingagreementwithi2ntechnologiesfor commercialization of compact portable Scanning Tunneling Microscope

16. Events

a) Project launch meeting of second 4.5t vertical mixer on 23rd July 2016. Shri A Syed Hamed, Deputy Director, Satish Dhawan Space Centre (SDSC), SHAR, Sriharikota and his team members visited the institute on 23rd July 2016 to participate in the ‘Second Vertical Mixer- 4.5T’ project launch meeting organized by CMTI.

Project launch meeting of second 4.5t vertical mixer

b) A one day workshop on Nano Characterization was conducted at CMTI on 2nd December 2016 for creating awareness on nano-characterization techniques; demonstrate nano characterization facility for various practical applications at CMTI. About 100 participants from industry, R&D institutes and academia participated. This provided a platform for interaction and networking.

c) A one day Seminar on "Latest Trendsand Future Potential of Additive Manufacturing" on 28th December 2016 with Keynote Presentation on “ AM Technology Challenges and Applications in the fabrication of Aerospace & Defence components ” by Prof. Jyoti Mazumder, Director,CenterforLaser-AidedIntelligentManufacturing, University of Michigan, USA.

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Central Pulp & Paper Research Institute, Saharanpur

Central Pulp & Paper Research Institute (CPPRI), Saharanpur is a premier research institute dedicated to the service of pulp, paper and allied industries. It is an autonomous organization under administrative control of Ministry of Commerce and Industry, Government of India. The institute prides itself of having state of art facilities and equipment and an enthusiastic team of dedicated , well experienced and trained scientists to carry out quality research work in various areas of pulp & paper making i.e. conservation and upgradation of raw material , product quality improvement, energy and environmental management, biotechnological applications, waste paper processing, human resource development etc. A brief summary of the activities and notable achievements of the Institute during 2014-15 are summarized as under:

The management of the Institute rests with the Council of Association, which has members from the Industry, R&D organizations and the Academia. The activities funded by the plan funds are monitored by the Research Advisory Committee. The activities utilizing the Cess funds are monitored by the Cess Committee.

R&D activities of the Institute are designed to continuously support the growth of the Indian Pulp & Paper Industry in terms of sustainability and competitiveness. Accordingly, R&D schemes of XII Five Year Plan projects are focused on the following areas:

- Raw Material & Product Development

- Energy Conservation & Environmental Management

- Infrastructure Development and Capacity Building Activities

The salient achievements of the institute under the above projects are as under:

• Successful bagasse depithing pilot scale trails resulting in over 80 % reduction in pith content. The studies are to be scaled up to mill scale soon.

• Identificationofvariousnonconventional/ alternate raw materials like lantana camara, pine needle hard wood, meliadubia etc as raw materials with good paper making potential

• Development of infrastructure to provide services for Paper Board & Special Paper Testing.

• Development of expertise in optimization of coating color formulations for target values using statistical techniques.

• Assistance to pulp & paper mills in Ganga River Basin in implementation of Charter for for Water Recycling & Pollution Prevention in Pulp & Paper Industries of Ganga River Basin.

• Assistance to CPCB in verifying the progress of implementation of Charter for Water Recycling & Pollution Prevention in Pulp & Paper Industries of Ganga River Basin in various mills on regular basis.

• Feasibility study of zero liquid discharge in a RCF based pulp and paper mill producing kraft paper

• Successful Pilot scale trials of black liquor heat treatment and desilication to improve chemical recovery and energy efficiencycarriedoutattwoagrobasedpaper mills

Technical Services

Technical/Consultancy services were rendered to around 213 clients during April 2016-November 2016.

Receipts & Expenditure 2015-16

During the year 2015-16, Total Receipts of

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the Institute were ` 1909.30 Lacs and TotalExpenditure was ` 1242.55 Lacs (i.e. RevenueExpenditure `1140.37Lacs+CapitalExpenditure` 102.18Lacs).

Internal Revenue Generation during 2015 -16

Internal revenue worth `260.40LacswasgeneratedbyCPPRIduringthefinancialyear2015-16.

Gender Budgeting

Grants-in-Aid are released to CPPRI under plan head to carry out R&D activities in the field ofpulp and paper and such there is no Gender Based Budgeting involved.

(a) Plan

S. No.

Title of the Project Expenses up to December 2016

Anticipated Expenses (December 2016 – March 2017

Total

` inLacs ìnLacs ` inLacs1. Raw Material & Product

Development29 11 40

2. Energy Conservation & Environmental Management

54 16 70

3. Infrastructure Development and Capacity Building Activities

97 43 140

Grand Total 180 70 250

(b) Non Plan

Details of Expenses Expenses up to December 2016

Anticipated Expenses (January – March 2017)

Total Expenses

ìnLacs ìnLacs ìnLacsNon Plan Expenses* 525 693 1218

*Base level support through Development Council for Pulp, Paper & Allied Industries ` 525 Lacs.as B.E.

(c) Earnings

Earnings up to December 2016 Estimated Earnings (Janaury – March 2017) Total Earnings

` in Lacs ` in Lacs ` in Lacs115 85 200

Indian Rubber Manufacturers Research Association (IRMRA), Thane.

Overview

The Indian Rubber Manufacturers Research Association (IRMRA), registered under the Societies Registration Act 1860, was established in 1959 as a scientific and industrial research organisationfor promoting basic and applied research and technological development activities in the field of rubber and allied materials.

IRMRA’s progress is monitored and governed by a Governing Council consisting of members from Central and State Governments, Rubber Industries, and premier Research Institutes, and is functioning under the administrative control of Department of Industrial Policy and Promotion. Over the last 50 years, IRMRA has expanded and diversifieditsactivitiesinbothtyreandnon-tyresectors and has become a unique R&D ‘Centre of Excellence’.

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Aims & Objectives:

IRMRA is engaged in serving rubber and allied industries in research, technology development, testing and certification, industrial consultancyand manpower development so that the Indian industries can compete effectively in the globalbusiness.

Major activities:

i) Research and Development:-

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

ii) Non Tyre Testing and Certification Division:-

The material testing laboratory of IRMRA has developed new test methods and test procedures for assessment of hazardous nature of rubber processing oils, and rubber products. This division is supporting the non-tyre rubber product manufacturing industries by periodically carryingouttestingandcertificationofproductsas required by customers. The inter-laboratory testing programme conducted with international laboratories from Germany, Thailand and Japan proved that test results of IRMRA are highly

repeatable and reliable as good as test done by any international laboratory. IRMRA has successfully participated in international proficiency testingand got score of great success.

iii) Tyre Testing and Certification Division :-

The Centre of Excellence for tyre testing and certificationhasbeenregularlytestingandissuingthe certificates to tyre industries for getting ISImarking license as stipulated in Quality Order issued by DIPP, Govt. of India. During the current year it has tested more than 427 No’s. of tyres received from national and international tyre manufacturers. Further, this division has been working with automotive Original Equipment Manufacturers(OEM)fortestingandcertificationof tyres for rolling resistance and other safety parameters. Recently, this division developed expertiseforqualityassessmentoffighteraircrafttyres and forensic analysis of failed aircraft tyres forthebenefitofIndianAirForce.

iv) Industrial Consultancy (iCON) :-

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

V. Training, Seminars, Workshops :-

IRMRA conducts training, Seminars and Workshops on rubber technology, LaboratoryManagementSystems, and Soft Skill Development for the benefitof engineers and techniciansworking in

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rubber and allied industries. The programmes are conducted in our training centre and the participants are accommodated in the residential facility created under 11th Five Year Plan. Further such programmes are conducted at the customer’s places as per their requirement.

During the current year 19 such programmes have been conducted benefiting around 272participants. Also registered with RSDC for conducting training programmes and participated in India Rubber Expo-IRE- 2016 to promote such RSDC approved training activities.

As a part of HRD activities, IRMRA planned to impart high level learning in Rubber Technology and management and to provide technically savy management professional to Rubber Industry with adequate knowledge on both Rubber Technology / Business Management Tactics, IRMRA has signed an MOU with Universal Business School for conducting a long term course on Post Graduate Program on Rubber Technology and Management (PGPRTM). The course will be commencing from academic year 2017-18 onwards.

vi. National Accreditation Board for Educational and Training Accreditation:-

IRMRA has received NABET accreditation from Quality Council of India (QCI) for LaboratoryManagementSystem(LMS)trainingandenrolledBusiness Membership Organisation (BMO).

Students from IIT and other universities are regularly taking up research projects as part of their academic courses like B. Tech/ M. Tech./ PhD. This also leads to publication of research papers at national and international journals and conferences. IRMRA have taken initiative to introduce Star rating in Rubber Industries e.g. LPGhoseandConveyorBeltManufacturersandhas planned to conduct Safety Audit in Rubber Industry and also to announce Safety Award for Rubber Industries. A high level delegation from France Rubber Institute visited IRMRA and

discussedaction tobe taken formutualbenefitof business growth which will lead to strengthen testing & training business of IRMRA.

National Council for Cement and Building Materials, Ballabgarh

National Council for Cement and Building Materials (NCB) is a cooperative research organization, registered as a society under the Societies Registration Act, 1860. The Council provides scientific, technological and industrialservices support to the cement, related building materials and construction industries, and carries its activities through its Units located at Ballabgarh, Hyderabad and Ahmedabad. Its activities are carried out through six ProgrammeCentres; major activities programme-wise during the year 2016-17 were as under:

i. Cement Research and Independent Testing

• Limestone Consumption Factor (LCF)studies are very important from the point of view of rationalization of limestone consumption in production of cement, estimating royalty payable to state for the limestone mined from their respective captive mines besides internal material audit of the concerned cement plants. NCB has carried out LCF studies forcement plants from all over the country and so far established the same for 186 cement plants.

LCFStudy:ClinkerDropTest

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• Based on the research carried out by NCB, Bureau of Indian Standards (BIS) recently formulated an Indian standard IS: 16415-2015oncompositecementusingflyashand granulated blast furnace slag (GBFS). Composite Cement blends containing 40-60 percent clinker, 35-55 percent combinedmixesofflyashandGBFSwereevaluated for their physical characteristics. Since,theavailabilityofGBFSisconfinedto mainly in Eastern India, composite cement blends were also prepared using 15-40 percent fly ash and 5-15 percentlow grade limestone and evaluated for their physical properties. At above clinker replacement level, the values of compressive strength of cement blends were found to be low up to 28 days and improved at later ages as compared to control OPC. Preparation and evaluation of ternary blends containing clinker, flyash, GBFS and low grade limestone is in progress. The durability studies of concrete samples prepared using above cement blends is underway.

• Effectofnanoparticlesofvariousmaterials,including use of carbon nanotubes as a reinforcing material, on the properties of cement & concrete and cement based nano-composites is being investigated. Fibre reinforcement of cementitious matrices improves their flexural strengthas well as toughness by impeding crack formationandgrowth.Different typesoffibres including polymer, glass and steelfibreshavebeenusedasreinforcementforcementitious materials. Reinforcement of cementitious materials with high strength nanodiameterfibressuchasCNTcanbehelpful in achieving high performance cement based composites. CNT exhibits extraordinary mechanical properties

including high Young’s modulus (higher than some of the metals), as stiff asdiamond, high tensile strength and high strength to weight ratio. Aqueous dispersions of CNT were prepared using sonication and suitable dispersing agents. The aqueous dispersions of CNT were used to prepare cement paste and mortar, varying CNT concentration in the range of 0.01-1.0 percent. The microstructural features and physical properties of OPC-CNT composites and hydration mechanism are under investigation using advanced instrumental techniques such as DTA/TG, XRD and SEM-EDAX.

Scanning electron micrograph of OPC-CNT paste showing dispersed carbon nanotubes in the

hydrated cement matrix

• The manual gauging of cement paste and mortar may introduce man to man and lab to lab variation, especially in determination of normal consistency of cements. In order to avoid such variation, a study is undertaken on use of mechanical mixer and fixedwater to cement (w/c) ratio inphysical testing of cements. Samples of OPC, PPC and PSC were tested as per Indian standard test methods using manual gauging as well as mechanical mixing using mechanical mixer for preparation of paste and mortar. The samples were also tested for compressive strength using

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mechanical mixer and fixed w/c ratio of0.4. Use of mechanical mixer resulted in lower values of normal consistency compared with current practice of manual gauging for OPC, PPC and PSC samples, relatively lower setting times of OPC and higher setting times of PPC and PSC samples. Use of mechanical mixer

resulted in higher values of compressive strength of OPC, PPC and PSC samples in comparison to that obtained using manual gauging as per IS:4031. Further, use of fixed w/c ratio of 0.4 resulted inhigher values of compressive strength of OPC, PPC and PSC samples at all ages. Further investigations are underway.

Compressive strength of OPC samples at 28 days

Compressive strength of PPC samples at 28 days

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• Materials such as limestone, fly ash,granulated BF slag, etc. are used to improve the performance of cement/concrete in fresh and hardened state and are known as “Performance Improvers”. At present, use of these improvers is not permitted in the manufacture of Portland Pozzolana Cement (PPC) and Portland Slag Cement (PSC) and studies have been taken up for evaluating technical suitability of performance improvers in PPC and PSC to enable revision of Indian standards. PSC samples were prepared using OPC clinker, gypsum and 50% GBF slag (control cement, PSC-C) with addition of 5%, max flyash,highgradelimestoneanddolomiteas performance improvers replacing equal clinker content, maintaining 3.0% SO3 by inter-grinding as well as separate grinding and blending technique. Further investigation are continuing.

Compressive strength development of PSC prepared by inter-grinding(Blaine’sfineness:380±10m2/kg)

Compressive strength development of PSC prepared by separate grindingandBlending(Blaine’sfineness:340±10m2/kg))

• The chemical analysis of LD slag sampleshowed its conformance to Indian standard IS: 12089-1987 specified for granulated

BF slag to be used in the manufacture of Portland Slag Cement (PSC) except glass content (~39%). In view of the above, an investigation has been carried out on thepartialutilizationofLDslagbytakingblends of 90%BF slag and 10% LD slag(designated as BL) with resultant glasscontent of 87% in the manufacture of PSC. The results of compressive strength of PSCs, prepared by inter-grinding of 40,45,50and55%BFandBLslagswithclinker and gypsum, showed comparable strength development at all ages as shown below. The study indicated the feasibility ofusingLDslaginthemanufactureofPSCin combination with BF slag.

Compressive strength developments of PSC samples

• InviewofenhancingtheuseofflyashinPortland Pozzolana Cement (PPC) from the existing maximum limit of 35% according to Indian standard IS:1489 (1)-2015, an investigation on high volume fly ashcement(HVFAC)usingflyashesconformingto the requirements of IS:3812-2013 has been taken up. PPC blends containing up to50%flyashalongwithOPCclinkersandmineral gypsum have been prepared. The physical characteristics of these cement blends showed that at higher finenesslevels and with use of good quality clinker andflyash,thePPCpreparedwith40-45%fly ash conformed to the requirementsof compressive strength as specifiedin Indian standard IS:1489 (1)-2015. Durability characteristics of high volume

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fly ash cements including rapid chloridepermeability, accelerated carbonation and sulphate expansion are in progress.

Trend of compressive strength development in HVFAC

• Studies have been carried out to evolve guidelines for improved refractory engineering practices for cement plants. The analysis of the collected data indicated that the Indian cement plants are employing indigenous high alumina refractories as well as imported basic bricks with ISO and VDZ shapes. The installation practices range from manual to mechanized installation depending upon the capacity of kilns. The major problems encountered during the campaign are undesirable coating and buildups, kiln shell corrosion, ring formation, premature failures of refractories particularly burner lining failures. Accordingly, guidelines for improved refractory engineering practices are drawn, covering present practices in the country vis-à-vis global practices, particularly use of improved kiln access for increased safety, ease of operation and reduced down time. Safety inspection cage during inspection in kilns during shutdowns, remote controlled machine for reducing the demolition time, use of specially designed pay loader for quick removal of debris, laser light for drawing accurate centre line before starting brick installation, pallets to transported bricks, Improved version of installation machine for increased lining speed and

useofsacrificinglayertoprotectkilnshellfrom corrosion etc. The use of improved refractory engineering practices in Indian cement plants shall result in reduced kiln downtime and refractory related problems with improved overall productivity of cement plant.

Remote controlled machine to reduce the demolition time

• Studies on fly ash based geopolymericcements have been continued. Alkali activationoflowlime,coarserflyashwascarried out by employing initial thermal curingattwodifferenttemperaturesupto90°C for varying retention periods. It was observed that strength development was rapid at 90°C temperature curing but the specimens showed dimensional instability. The performance of geopolymeric cement was found to be influenced by initialthermal curing conditions and therefore needed optimization. Investigations have also been carried out for preparation of cementitious binders at 27°C temperature using rationalized curing conditions by alkali activationofblendsofflyashwithgranulated blast furnace slag (GBFS) having 94 percent glass content. The blend ratio aswellaswatercontentatfixedrangeofNa2O required to be optimized to obtain better compressive strength property. Tiles and brick shaped bodies were also

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cast by alkali activation of fly ashmixedwith bottom ash.

Fly ash Based Geopolymeric Tiles

SEMofalkaliactivated28dayscuredflyash-BFsystem

• At the IndependentTestingLaboratories,evaluation for chemical, mineralogical, microstructural and physical properties of materials such as limestone, laterite, bauxite, clay, coal, alternate fuel, water, admixture, clinker, cement, brick, aggregate, concrete, refractory etc samples were carried out at differentNABL accredited and BIS recognizedlaboratories. During the year, more than 7800 samples are expected to be tested.

II. Mining, Environment, Plant Engineering and Operation

• NCB under its continuous activity of “Updating of National Inventory of Cement Grade Limestone Deposits inIndia” is updating it through regular interaction with various central agencies and state DGM’s for collection of data on latest status of limestone resources as per

“UNFC” guidelines. The total limestone resources of all categories is estimated at 124574.01 million tonnes as on 31st March 2016 out of which the proved, probable and possible categories are of 31605.73 million tonnes, 38580.24 million tonnes and 54388.04 million tonnes, respectively.

• Preliminaryinvestigationforbeneficiationon laboratory scale for low / marginal grade limestone for a limestone mine of a cement plant in Madhya Pradesh for enrichment in lime content & reduction of silica content have been completed.

XRDPatternatDifferentSieveSizeFractions

• “Performance Assessment of Existing Air Pollution Control Equipment (APCE)” at one of the Cement plants in Meghalaya was carried out, wherein 9 major (APCE) were monitored. This included 6 Bag House/filtersand3ESPs.Variousprocessparameters, dust concentration at inlet and outlets of APCE were measured to evaluate the performance.

• Environment Monitoring studies were carried out at two cement plants in Rajasthan under which ambient air quality, point source emissions, water quality and noise level near plant machinery and ambient noise were monitored.

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Measurement of process parameters in stack during plant study

• Studies on “Best Practices for Reduction of NOx and SO2 emissions for Indian Cement Industry” have been taken up. Study on various technologies currently available and their efficacy in reducingthe emissions of NOx and SO2 are being evaluated.

• Studies on “Water Footprint Assessment for Cement Plants” have been taken up. Literature Survey on methodology forcarrying out water footprint assessment (as per ISO 14046), studies carried out worldwide on water footprint assessment, water consumption in different sectionsof cement plant carried out. Data format for collection of plant data prepared and being circulated among the industry.

• Onsite training for strengthening capabilities in pyro-processing and grinding section for a cement plant in Madhya Pradesh was carried out.

• Plant performance audit for a cement plant in North-East was carried out.

• Diagnostic study for minimizing the tendency of coating & ring formation was carried out for a cement plant in Rajasthan.

• Diagnostic study for bag house chimney corrosion is in progress for a cement plant in Gujarat.

• Feasibility study for handling, storage and feeding system for co-processing of liquid hazardous waste is in progress for a cement plant in Gujarat.

• Feasibility study for capacity upgradation is in progress for a cement plant in Gujarat.

• Plant Optimization Study for a cement plant in North-East is in progress.

• Third Party Quality Assurance carried out forelectrical,mechanicalandfirefightinginstallation for MCD, PWD & CPWD.

• Project Monitoring and Control (PMC) Consultancy Services for setting up a 600 tpd Cement Plant in Republic of Congo (RoC).

“NCB is working as a project management consultant to RoC for preparation of EPC tender, offers evaluation, participation inbid opening, monitoring and controlling the project implementation activities and providing the support for project supervision”

• Technical Feasibility Study for fly ashunloading from rail bowsers, storage, feeding system and bulk cement truck loading system

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“In view of utilizing BCFC type wagons for Flyash transport, one of the cement plant in Kerala has sponsored a project to NCB to carry out a technical feasibility study for fly ash unloading, storage, feedingand loading system for their plant at Walayar”

• Technical Feasibility Study for Fly ash Handling System

“A study has been done by NCB for a cement plantinGujaratforinstallationofflyashunloading, storage and feeding system with evaluation of various possible cost effectiveandenvironmentallysustainableoptions”

• Technical Feasibility Study for automation of cement silo feeding system for better control of the operation

“In view of control the operation of cement transport,feedingandstorageofdifferentgrades of cement in multiple silos, one of the cement plants in Gujarat has sponsored a project to NCB for Technical Feasibility Study for automation of cement silo feeding system”

• Technical Feasibility Study for installation of Cement Bag Counting System

“To ensure the accuracy in packed cement bags dispatch from the plant, a cement plant in Kerala has sponsored a project to NCB to carry out a technical feasibility studyforefficientandhighlyaccuratebagcounting system for their cement plant”

• Technical Feasibility Study for Coal Handling System

“In view of separate grinding of coal &petcoke as well as avoiding high demurrage for rake unloading from railway, a cement plant in Gujarat has

appointed NCB as consultant to prepare technical feasibility report including various technical & cost effectivesolutions”

iii. Construction Development and Research

• EvaluationofSinteredFlyashLightWeightCoarse Aggregate as an alternative natural coarse aggregate for production of light weight structural concrete. Draft standard specificationalsopreparedforsinteredflyash light weight aggregate and sent to BIS for formulation of Standard.

• Petrographic and Mineralogical Analysis and Alkali Aggregate Reaction (AAR) studieswerecarriedoutondifferentfineand coarse aggregates by conducting accelerated mortar bar testing as per ASTM C-1260 and long term testing like mortar bar testing as per IS: 2386 (Part-7) and concrete prism test as per ASTM C-1293 & 1105 for various projects of NTPC and its subsidiaries and NHPC. Samples are analyzed for more than 40 thermal power plants and hydroelectric projects.

• Evaluation of concrete making materials, analysis of test results and establishing its correspondence into fresh, hardened and durability properties of concrete is an important and crucial step before carrying out concrete mix designs. Centre has evaluated various concrete making materials such as cement, fly ash, silicafume, GGBS, water, fine and coarseaggregates, and chemical admixtures and carried out concrete mix designs for various grades of concrete. Evaluations carried out for more than 60 projects including hydroelectric and thermal power plants.

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Flexural testing of reinforced concrete beamMercury Intrusion Porosimetry for determination of porosity

and pore size distribution

• More than 200 concrete mix designs are carried out for various grades up to M80 for various important structures of NTPC, NHPC, UJVN, CPWD, PWD, DDA, Delhi Jal Board, DSIDC and various commercial RMC suppliers in National Capital Region.

• Detailed study is being carried out on the use of bottom ash as a replacement to fineaggregateinconcrete.

• Detailed study is being carried out on the use of dredged marine sand as a replacement to river sand in concrete.

• Detailed study carried out for abrasion resistance of concrete to be used in spillways and glacis at dam site for hydroelectric projects.

• Carried out testing and evaluation of corrosion inhibitors.

• Study has been taken up on abrasion resistanceofdifferentgradesofconcreteusing normal & low strength coarse aggregate for use in wearing surfaces of Hydroelectric Project.

• Development of high performance concrete (HPC) for Hydroelectric Project.

• Evaluation and investigation of effectivenessofcrystallinewaterproofingadmixture has been taken up.

• The distress evaluation, condition assessment, repair and rehabilitation of existing structures such as buildings, bridges, tunnels, dams and industrial structures are becoming increasingly important to make them functional and conforming to the safety and serviceability requirements as these structures are aging. The structures were investigated by using visual observation, nondestructive evaluation technique (NDE) and other field test followed bylaboratory test on extracted core samples and chemical analysis of hardened concrete. The investigations are generally followed by recommendation for repair and rehabilitation with state of art repair materials and implementation techniques for distressed RC structures covering specifications, cost estimates and bill ofquantities. Centre has investigated more than 25 projects.

• Studyonfieldandlaboratoryinvestigationsof concrete structure carried out for concrete dam.

• Third Party Quality Assurance/Audit (TPQA) programme of the Centre has assisted various organizations to ensure quality workmanship to meet their

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specified quality standards in deliveringquality constructed facilities. Third party Quality Inspection and Assurance was carried out for 120 construction projects of Municipal Corporation of Delhi. Centre also carrying out projects for Delhi Development Authority (DDA), Delhi Urban Shelter Improvement Board (DUSIB) and UJVN, Uttarakhand.

• A Memorandum of Understanding (MoU) was signed with Odisha Industrial Infrastructure Development Corporation (IDCO), Bhubaneswar, Odhisa for Third Party Quality Assurance and Audit for different works in Odisha. Under thisMoU, NCB is providing Third Party Quality Assurance and Audit services for various projects of IDCO spread all over Odisha.

Third party inspection/quality assurance for construction of multistoried DDA apartments at Dwarka, New Delhi

Third Party quality assurance for The construction of HIG houses at Jasola, New Delhi

iv. Industrial Information Services

• NCB Library serves as the nationalinformation centre for cement, building materials and construction industries. The holdingsoftheLibraryhavegrownto46,510.

• TheLibraryhasmaintainedandupdateda bibliographic database consisting of about 41,970 entries.

• ServiceofWEBOPACiscontinued.Listofindexed articles from journals received in NCB are being posted on intranet and internet website www.ncbindia.com .

• NCB Ballabgarh premises is in Star Topology 1 GbsFiber optic network with Fiber Redundancy. Overall it is a 10 Gbps ready Fiber network. The Fiber optic consists of Layer 3 and Layer 2 switches

with some Power on Ethernet facility. IT is strengthened with centralized D-view network management software for networkflowmonitoring.

• Web Technology based LaboratoryInformation Management System (LIMS)covering 3-5 Laboratories & 50 users(Max), common database, Hardware & Software/Data redundancy procured & Installation Completed. 3 Laboratoriesconsisting of 20 terminals functional now.

• Completely revamped website – ncbindia.com has gone live after thorough testing.

• NCB’s IT infrastructure is strengthened with Intel i3 based PC’s & Printers alongwithMSWindows10,MSOfficeStd2013 & Symantec Antivirus – Corporate edition.

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• Proof of Concept demo was done for Sector Antenna (for campus Wi-Fi); Video conferencing system (skype based) installed in Board/ Conference Room after PoC.

• CyberoamFirewallwithfilters&bandwidthmanagement software installed after PoC WithCyberoamFirewall&filters,internetbandwidth is managed and monitored; it is suitable to take multiple internet inputs.

• InternetLeasedLine(ILL),RadioFrequency(RF) 4mbps bandwidth is effectivelyutilized. After having the RF internet connectivity, the internet connection failures have been minimized.

• Fibre Vs. Copper cable redundancy ensured for theNCB-BLAN to takecareof emergencies.

• With alternate internet connectivity, fail safe support for E-procurement infrastructure is ensured.

• One day Symposium on “Composite Cement for Resource Conservation, Environmental Protection and Enhanced Sustainability” was organized at NCB Ballabgarh Unit on 30 September 2016. About 200 delegates including 2 from abroad (1 Deutsche, 1 Chinese) from cement and construction industries, and academic institutions participated in the event. 17 technical papers (out of which 6 invited papers from eminent experts in the field)onrawmaterialsincludingindustrialwaste, specifications, quality, chemistry,properties, performance, resource and energy conservation, environmental impact and enhanced sustainability were presented. In the concluding session, a panel discussion was also organized wherein the need of composite cement

for reduction of energy, emission and conservation of natural resources were discussed. Concrete durability aspects, incentives for producers of composite cement, consumer education, commercial competitiveness of composite cement and the future prospects were also discussed. The discussions were well received by the participants from industries.

v. Continuing Education Services

TwoLongTermCourses(Fulltime-PostGraduateDiploma in Cement Technology & Distance Learning Correspondence Course – Diploma inCement Technology), 19 Short Term Courses, 14 Special Group Training Programmes, 2 Simulator Based Courses, 3 Contact Training Programmes were organized on different topics coveringcement, concrete and construction technologies for about 689 participants.

Further, about 09 Short Term Courses & 4 Simulator Based Courses are scheduled to be organized till 31 March 2017. Also, a few more special training programmes and contact training programmes are expected to be organized during the period.

vi. Quality Management, Standards and Calibration Services

The centre has completed following studies for cement, coal and concrete testing laboratories till 30th November, 2016:

• AssistanceinNABLaccreditation

• Four-Day training workshop on laboratory management system and internal audit as per ISO/IEC 17025: 2005

• Development of cement standards for calibration of X-ray Analyzer

• Development of clinker standards for calibration of XRD

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• Calibration of lab equipment of 5 coal testing laboratories

• Calibration of laboratory equipment of material testing laboratories

• Interlaboratory comparison study at 3 QC LaboratoriesforProficiencyTesting

• Quality audit of coal testing laboratory

• Laboratory assessment and proficiencyimprovement study for quality control laboratory of four cement plants

In addition, the centre has provided services in proficiency testing (PT), equipment calibrationand supply of CRMs.

Six PT schemes have been completed till 30th November, 2016. Following 11 PT schemes are likely to be completed during the year 2016-17:

1,032 equipment have been calibrated for cement plant QC laboratories, thermal power plant laboratories, construction laboratories, academic institutions and technical service organizations up to 30th November 2016. It is expected that about 1,650 equipment will be calibrated by 31st March 2017.

6,307 vials of certified reference materials and980 sets of standard lime have been supplied to cement and construction industries, national testing laboratories, academic institutions and overseas laboratories up to 30th November 2016. It is expected that a total of 9,400 vials of CRMs and 1,470 sets of hydrated lime will be supplied by 31st March 2017.

National Institute of Design (NID), Ahmedabad.

The National Institute of Design (NID) is an institute that offers multidisciplinary designeducation and research avenues. By an Act of Parliament, in July 2014, the institute has been declared as an Institution of National Importance

by the NID Act (No.18 of 2014) which has come into forcewitheffect fromSeptember16,2014.With an experience of more than five decadesin the field of design education, research,application of advanced teaching methodologies, and unparalleled design research projects, the National Institute of Design has attained national and international repute. It has been recognized asascientificandindustrialresearchorganizationby the Department of Science & Technology, Government of India.

NID is a unique institution with design excellence, intellectual wealth, and time-tested educational culture that is instrumental in addressing social problems and concerns. Today, the institute’s graduates are active in all sectors of the economy and many have distinguished themselves in diversefieldssuchastextiles,productdesign,craftdesign and promotion, advertising, filmmaking,multimedia, automobile design, developmental communication as well as design education. The institute believes that good design is good business and that it contributes to economic prosperity and better quality of life.

NID is to offer world-class design educationand promote design awareness and application towards improving the quality of life by or through thefulfillmentofthefollowing:

• World-class design education to create design professionals of excellence to help meet India's diverse design needs and to create global leaders in design education and research by recognising the changes in economic and business environment in a global context.

• Encouraging the scaling up of quality design professionals and faculty through existing and new institutional mechanisms.

• Becoming a repository of design knowledge, experience and information on products, systems, materials, design

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and production processes related to traditional as well as modern technologies.

• Upgrading the design of products and systems of everyday use with an aim to bring in indigenous design solutions by focusing on affordable design for themasses.

• Undertaking fundamental and applied research to create cutting-edge knowledge indiverseareasofdesignandalliedfields.

• Helping place designers in key sectors of national need for benchmarking of standards of design education and practice, and encouraging them to ‘think global and act local’.

• Offering integrated design consultancyservices and providing opportunities to faculty and students to get familiar with the practical applications of design knowledge, while generating revenues simultaneously.

• Providing design inputs from the point of view of using design as an integrating force in varied areas such as science, technology, and management. Also, improving the quality of life through well- designed products, services, processes, and systems.

• Humanising technology and integrating the physical with the virtual and digital worlds through better information and interface design by moving towards a holistic creative experience.

• Providing sustainable design interventions for crafts; handloom; rural technology; small, medium and large scale enterprises; and outreach programmes for capacity, capability, and institution building. All this would help create employment opportunities.

Professional Education Programmes:

NID has become one of the best design institutes in the world with a graduate programme (B.Des.) andMastersinDesign(M.Des.)acrossfivebroadfaculty streams and eighteen diverse design disciplines. The institute also has state-of-the-art infrastructural facilities such as the Skill Development Labs, Knowledge ManagementCentre, Information Technology (IT) Centre, and Design Vision Centre. These have helped NID establish its leadership and pre-eminence among various design institutions.

NID continues to be an aspirational ‘Institutional Global Brand’ for the youth. This is manifested in the increasing demand to secure admission at NID. There has been a positive increase in the intake of students, from about 83 in 2000 to 368 new students (109 in the B. Des. Programme and 259 in the M.Des. Programme) in the academic year 2016–17. Also, the number of students’ convocating from the institute each year has undergone a change; it has increased from 35 in 2000 to 288 in 2016. Next convocation will be held on 9th January 2017.

Integrated Design Services (IDS):

Client servicing is an integral part of NID's activity. Through Integrated Design Services (IDS) NID undertakes consultancy projects and professionally delivers design solutions in various areas of design disciplines.

The projects are undertaken by faculty mainly to bring market realities to the design studios of NID inamultidisciplinaryenvironmentforthebenefitof clients. Projects in line with NID’s areas of expertise are carefully chosen, so that institution can provide state of the art design solution to perspective clients.

Consultancy assignment at NID starts with an enquiry from the client mentioning details of their probable design requirement. In many cases, an

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enquiry is followed by the meeting with the client in order to understand the scope of the project and creative design brief. Based on the design brief, a techno-commercial proposal is made and sent to the client for approval. Design intervention is carried out in various phases which involve initial research, concept development, design detailing and prototyping.

Through its “Earn While Learn” scheme, IDS also facilitates students in getting involved with real life projects, which in turn adds value to the upcoming professionals giving them a taste of actual situations.

Over the last 50 years, NID has successfully completed many projects of national importance which includes logo design for more than 500 Government, Semi-Government and Private

Organizations ranging from SBI, Doordarshan, Right to Information, CBI, Indian Airlines, Hindustan Liveretc.Someoftheotherimportantprojectsare“Discovery of India” exhibition at Nehru Centre, Monetary Museum for Reserve Bank of India, InteriorDesignProjectsforPatentOffices,designof Vidhana Soudha at Bangalore, Coin Design for RBI, Multipurpose National Identity Card, trophy for organizations like DST, CISR, DRDO etc. A showcase of Design services and capabilities was done at international exhibition INNOPROM 2016 that was held in Russia in July 2016. Ms Nirmala Sitharaman, Hon'ble MoS (independent Charge) for Commerce and Industry visited display of Design in India at INNOPROM 2016 held at Russia, where NID Ahmedabad had participated.(11-14 July, 2016).

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Number of projects completed during 1stApril 2016 to 30th Nov 2016 : 08 Nos.

Number of projects on going as on 30th Nov 2016 :48 Nos.

Proposals Sent 1st April 2016 to 30th Nov 2016 :27 Nos.

Projects in pipeline :7 Nos.

Some of the Major On-going Projects are as under:

Design of GUI for Audio/AVN Screen System in Car Dashboard for Hyundai Motor India Engineering Pvt. Ltd (R&DCenter), Telangana

Design of Mrignayanee Emporium at Khajuraho for SantRavidas Madhya Pradesh HastshilpEvamHathkargaVikas NigamLimited,Bhopal

Design of Visual Identity (Logo) forJharkhand State Co-operative Bank Ltd.,Ranchi

Development of Road Nomenclature, Address System and Signage Manual for Amaravati Capital City of Andhra Pradesh for Capital City Development and Maintenance Authority, Vijaywada

Preparation of Feasibility Report for Setting Up Design Institute under Vedanta University

5 – Day Workshop on Design & Ergonomics for Warship Building for Mazagon Dock ShipBuildersLimited,Mumbai

LogoDesignforAgriculturalandProcessedFood Products Export Development Authority (APEDA), Delhi

Design of logo for Dial 100 for Additional DirectorGeneral (ITECCS&Traffic),UttarPradeshPolice,Lucknow

Logo Design for Director General ofSupplies and Disposals, Delhi

Design of UDID Card for Ministry of Social Justice and Empowerment, New Delhi

LogoDesign for SwarnimGujarat SportsUniversity, Gandhinagar

Customization of Visual Design of Driving LicenseandVehicleRegistrationCertificateforDamanDiu,Dadra&NagarHaveli

User Interface (UI) Design of Digital Evaluation Solution for Tablet for Tata Consultancy Services, Mumbai

Design of Mamta Card Commisionerate of Health Medical Services Medical Education & Research, Gandhinagar

DesignofHomeMuseum,LalbhaiFamily,Ahmedabad

Logo Design for Forum for Regulators,C/o. Central Electricity Regulatory Commission, New Delhi

Logo Design for Income TaxDepartment

Design of Thinking Curriculum for Tata Consultancy Services

Jewellery Trend Research for India for The Gem and Jewellery Export Promotion Council

Design of Think Space for Tata Consultancy Limited.,Chennai

Designing of Digital Exhibition on Sardar Patel

Aesthetic improvement of interiors and passenger amenity items: Non-AC sleeper Coach

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Logo Design for Indian Institute forPackaging, Mumbai

Visual Identity of SAC/ISRO

Design Implementation of Exhibition Hall located at GIDM Raisan, Gandhinagar

Packaging Design of Parag Milk Bags/bottles for Pradeshik Cooperative Federation,Lucknow

VisualDesignofIOCLRetailoutlets

Design and Development of S V Museum for Tirumala Tirupati Devasthanams

Design of Mess Block, Hostel area etc. of NADT, Nagpur

Designing of Museum for Ramakrishna Mission, Khetri, Rajasthan

Centenary Stamp Design for Department of Science& Technology, New Delhi

Styling/aesthetic design of Fetal Heart Rate(FHR)DeviceforSiemensLtd.

Interior Design of Conference Room/Hall ofofficeoftheDGFTforDirectorGeneralof Foreign Trade

DesignofLogoforIIMRaipur

Packaging System design for ELGIEquipmentsLtd.Coimbatore

Aesthetic Design of Telecom Towers-RambollSoft,IMILtd.,Hyderabad

Design of Regulator of Gas Equipment-ESABIndiaLtd.,Kolkatta

Outreach Programmes

NID’s Outreach Programmes provides design intervention for the craft and social sectors in governmental and non-governmental organisations at national and international levels.

Training of Trainers’ in Bamboo

NID team conducted a design led training workshop in bamboo for the bamboo instructors from different parts of Gujarat at INRECADediapada, Dist. Narmada (Gujarat) by adopting Training of Trainers approach using local bamboo of Gujarat.Through the interacting, exchanging ideas and processes this helped the participants bringing out more understanding of craft, design and new technology in bamboo. Towards the end of the workshop, all the products were displayed and they were well appreciated by the visitors.

Product Developed and Diversification workshop in Sabai Grass in Odisha

NID team conducted "Product Developed and Diversification workshop" in Sabai Grass atBaripada (Odisha). The main objective of the workshop was to help the artisans by developing new designs by retaining its traditional essence and preserving the skills for sabai grass products. It was also to give value addition to the existing products, introducing new concepts and making contemporary lifestyle products.

Design and Production Training in Bamboo Hangers and Hotel Accessory

A preliminary training workshop for bamboo artisanswas conducted inOctober 2016 in fiveCommon Facility Centres (CFCs) of Madhya Pradesh viz. Balaghat, North Seoni, Chhindwara, Satna and Harda so that they can learn to develop a range of products focusing on bamboo hangers and small bamboo products for hospitality industries/hotels and resorts. The identifiedskilled artisans from each CFCs will participate in the next level of "Design concept led training workshop" followed by “Production Oriented Training Workshop” wherein they will learn to develop various types of hangers and small accessory products using bamboo.

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Product Development and Diversification Workshop in Copper

NID had submitted a Feasibility report for setting up HariprasadTamta Traditional Craft Development Institute in Almora (Uttarakhand). To begin the activities of the institute UHHDC requested NID to impart training programme on Copper craft for the Tamtas(Copper artisans) in Almora. Towards Phase-1,"Productdevelopment&Diversificationworkshop" in Copper was conducted in November 2016 wherein the artisans worked in collaborative manner under the guidance of NID Faculty Designer by exploring new opportunities and utilizing their traditional skills and materials to develop marketable products. Towards Phase-2,"Productdevelopment&Diversificationworkshop" in Copper will be conducted in December 2016.

Design Knowledge partner for USTTAD

NIDhas identified11clustersforthefirstphaseout of which work for seven clusters have already started. The Ministry had conveyed its approval to start work on approved clusters vide letter dated 11th May 2016.

NID conducted a month-long pilot project for the Stone Craft and Jamdani Fabric Clusters of Varanasi wherein prototypes were launched. In Jamdani fabrics, NID team had developed a collection of 18-20 garments as value added products. The outcomes of the pilot project were exhibited at Banaras Hindu University (BHU) Complex, Varanasi which was inaugurated by the erstwhile Hon. Minister of Minority Affairson April 30, 2016. The Jamdani garments were also showcased at the Seminar Hall of BHU. A catalogue of the products developed by NID was also launched during the event.

NID showcased the pilot project as part of the event "Achievements of the Ministry of Minority Affairs"forwelfareanddevelopmentofminoritycommunities to achieve the vision, “Sabka Saath

– Sabka Vikaas”, at Vigyan Bhawan, New Delhi on May 28, 2016.

Teams consisting of faculty and students have completed preliminary craft documentation and submitted their reports and these reports are beingeditedforfinaldocumentation.

Preliminary visits to clusters viz. Manipur, Firozabad, Kerala, Rajasthan and Varanasi, have been carried out by the Cluster Heads (Senior Faculty) and their research and design teams. Each team interacted with at least 20-25 artisans in each cluster.

A Design Development Workshop in Glasswork Flame Work in Firozabad is planned to conduct from 15th December 2016 to 24th December 2016. The main aim of the workshop is Capacity Building of artisans by development of new skills and up-gradation of the existing skills.

In Manipur Black Pottery Cluster, the Cluster Head has invited two master craft persons to NID from Manipur to conduct an initial workshop from 5th Dec to 23rd Dec. to understand the techniques used by them and to develop new techniques before the main three design development workshops.

In each Cluster, three Design Development Workshops – each works spans over 15 days (two design development workshops at each clusters and one at NID) are planned and will be executed before March 2017.

International Centre For Indian Crafts (ICIC)

Nakashima Workshop having keys activities such as Exhibition -The Free Edge, Symposium Discovering Nakashima, Wood workshop and Student Design Competition from 18th October to 21st November 2016 at NID 2016.

Industry Programmes And Projects:

In order to meet the specific requirements ofthe industry and bring about design awareness,

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and promote design activity through IP&P, NID conducts short-term training programmes, workshops and seminars, which usually take place throughout the year; these activities are conducted at all the three NID campuses.

Some of the Major Design Workshops organized during April 2016 to November 2016 are as under

A workshop on “Introduction to Design Thinking and Methods” was conducted during 28 March -1st April, 2016 at the NID, Ahmedabad. Total 23 participants attended the workshop from differentInstitutes and Organisations.

A three day workshop on “Ergonomics & User Centered Design” was conducted during 25-27 April, 2016 at the NID, Ahmedabad. Total 30 participants attended the workshop from differentInstitutes and Organisations

A five day workshop on “Introductionto Design Thinking and Methods” was conducted during 22-26 August, 2016 at the NID, Ahmedabad. Total 30 participants attended the workshop from differentInstitutes and Organisations.

A three day workshop on “Designing Business Models” was conducted during 20 -22 September, 2016 at the NID, Ahmedabad. Total 18 participants attended the workshop from differentInstitutes and Organisations.

In order to create design awareness among the city students, IP&P also conducts summer workshops at concessional fees. This year Ten summer workshops were conducted in two schedules (23-27 May & 30 May -3rd June 2016) at NID, Ahmedabad. Total 230 participants were attended summer workshops. Summer workshops aimed to the students, teachers,

artisans, housewives etc. with a view to spread design awareness among them.

The workshops received very good feedback and the participants found them very interesting / informative and career driven. The participants of the above summer workshops were from following institutes, schools and organisation from all over India. The all above mentioned programmes were well appreciated by the participants

Some of the client specific programmes are as under:

In campus Workshops:

Three day in- campus client base workshop on “Experience Design – Retail” for retail business executive of Future Group, Mumbai, was conducted during 23-25 November 2016 at R&D Campus, NID, Bangalore

Off campus Workshops:

Twodaysoffcampusworkshopon“Basicsof UI and Implication of Automotive Human Machine Interface (HMI) Design” for Maruti Suzuki India Limited, MSILCampus, Gurgaon for their officials wasconducted during 17th and 18th October2016,Gurgaon.Total25officialsattended off campus progamme. Theprogramme was well appreciated and client is also very much interested in the next level programme.

The all above mentioned programmes were well appreciated by the participants and the clients.

Hon'ble Prime Minister inaugurated the Digital Exhibition on Sardar Patel and his Role in Integration of India, which was conceptualized and designed by NID Ahmedabad, on 31st October, 2016 at National Science Centre, New Delhi.

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Online Programmes (NODE):

With the seismic shift in technology and education NID, has taken a progressive incentive in imparting design education through online medium. Received 668 registrations for NID’s Online Design Education (NODE) for “Design Fundamentals” course till date.

MSME – Design Clinic Scheme:

For spreading design awareness among the MSMEs of the country and improving competitiveness, the DC MSME has initiated the Design Clinic Scheme for MSMEs. NID has appointed as the Single Coordinating body/Nodal Agency for implementation of the Design Clinic Scheme for increasing the manufacturing competitiveness of micro, small and medium enterprises across the country. The Scheme envisaging a total budget outlay of Rs.73.00 crores (Government of India’s component of Rs.49.5croreswith5%designfeesforNID)asfirstphasedoftheschemeunder11thfiveyearplan

was soft launched in Feb. 2010 by the DC MSME. Since inception, NID has set up zone-wise regional Centres at Delhi, Ahmedabad, Bengaluru, and Kolkata and an Extension Centre for North-East at Guwahati during phase 1 implementation. The scheme aims for reaching out to the MSMEs by providing hand holding support, design expertise andfinancialassistancethroughvariousactivities. During the phase 1 implementation, we have successfully conducted 396 Design Awareness Seminars across the country. So far 640 design project proposals have been registered with the Scheme by a varied group of MSMEs and Professional Designers, out of which 353 have been approved. 192 projects stands successfully completed and 54 are in various stages of completion. Young designers undergoing their finalyearofstudiesindesignandalliedInstitutionsacross the country have continued to take the programme seriously and 115 student projects have been approved so far for finding designsolutions for MSMEs out of which 95 Student

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projects have been completed with interesting design solutions. Outcome of successful design solutions have been highlighted in booklet forms for both professional designers and student designers design intervention specific to micro,small and medium enterprises. There has been increasing enthusiasm nationally from the MSMEs, Design Community and Design Institutions with 1026 professional designers, 472 Design Professionfirms,73DesignEducationInstitutions,477, design students,1844 MSME units, 290 MSME Associations and 27 Government Organisations registering with the same showing their interest in implementation of the Scheme. We have also conducted 32 orientation programmes, for various stakeholders during Phase 1.

The Design Clinic Scheme continues to be a shot in the arm for the MSMEs who, with Design Awareness and Sensitization, are now looking for more and more design intervention for their products and services. The Scheme stands out as amajortoolforthebenefitofIndianMSMEsintheyearsahead,andaffordsgreateropportunitiestothe Young Designers.

In 2016, the Government of India has approved the 2nd phase of scaled-up design clinic scheme with total budget outlay of Rs.149 cr. National Institute of Design continues as Single Nodal Agency and MoU has been executed on 08th August, 2016 in this regard between Ministry of MSME and National Institute of Design.

Activities conducted under Design Clinic Scheme – Phase 2

Design Awareness Seminar : 5 Nos. (in the month of Nov., 2016)

Design Awareness Programme : In Process

Professional Design Projects : 31 New Proposals registered

Student Design Project : In Process

Research:

NID undertakes research, mostly applied, in all areas of design, which have a direct bearing on all sectors of the economy. Over the last decade, NID has established Design Research Chairs, in collaboration with industry partners as well as from its own corpus, in several areas such as furniture, colour universal design, stainless steel, design education, textile and apparel design technology and transliteration

PhD Programme at NID

NID has consciously chosen the philosophy of context-driven learning over the conventional method of education. Unique curriculum and educational philosophy continues to be the core of research and design development activities. The institute seeks to become a repository of design knowledge, experience and information. It is making several new and concerted efforts to undertake fundamental andapplied research to create cutting edge knowledge that drives design innovation in future for meaningful socioeconomic progress. The framework of the Doctoral Programme is now completed by the programme team – the structure devised shall provide for practice-led pedagogy in PhD level research at NID. ‘Research by Design’ is going to be the core in pedagogy in practice-driven enquiry. The announcement of PhdProgramme in NID shall be made shortly. Preparations are ongoing for developing the admission of the same.

NID-Indian Railways Design Centre

National Institute of Design, Ahmedabad and Ministry of Railways (Railway Board), New Delhi entered into a MoU on 10th April 2015. It aims at collaboration

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between NID and the Railway Board in all fieldsofdesign relevant to rail transportand allied activities. These are with a view to design, research and develop, innovate design ideas and reinforce the best design practice in transportation design for the Indian Railways. This would entail participation of young designers, design service providers, design researchers, design professionals and practitioners under Railway Design Centre at NID.

Innovation Centre for Natural Fibre (ICNF)

NID has set up an Innovation Centre for Natural Fibre (ICNF) at the PG Campus, Gandhinagar with a focus on improvementinnaturalfibresprocessingtechniques, capacity building in natural fibres development, and utilisationthrough innovation in design, engineering and technology. The centre has prioritized some natural fibers’ such as banana,bamboo, coir, and hemp for exploration. In this pursuit, the Centre is networking with institutions within India and abroad, to appropriate and create sustainable design applications using these fibersas a primary material. It is expected that, significantbenefits to the localandnational economy can be attained with a focused programme that can leverage design and technology for sustainable livelihoods, as well as create cutting edge solutions for tomorrow's market.

Collaboration Agreement with Toshiba Corporation, Japan

NID will collaborate with the Toshiba Corporation and carry out research on local business needs in India and propose ‘New Business Design’ or ‘New Service Design’ with local fit ideas with valuesbased on the research. This initiative will

be spearheaded from NID’s R&D Campus in Bengaluru.

Some of the Major On-going Research Projects are as under:

India Digital Heritage (Hampi)

The project aims at exploring methods to represent heritage in new ways. The outcome of the project will help various stakeholders such as Karnataka Tourism and people of the region to showcase Hampi, its art, architecture, and social life in a more immersive manner. The project is being funded by Department of Science & Technology, New Delhi. The work on the project is in progress.

CreatingDigital-LearningEnvironmentforDesign in India (e-Kalpa)

The project is an initiative of the Ministry of Human Resource Development (MHRD) and seeks to promote involvement of information and communication technologies (ICT) to enhance quality and reach of design education in India. The work on the project is in progress.

Publications:

Ongoing Publications:

1. Design & Environment (Hindi- firstedition): Design and layout work is over. Editing is in progress based on feedback from Hindi Committee.

2. Design & Environment (English- third edition): The book is in the press.

3. Leading Lights onDesign (third edition):The work on design & layout is complete. Final editing is going on.

4. Towards Global Histories of Design: Postcolonial Perspectives – Proceeding of the 2013 annual conference of the Design History Society. The Publication is in pre – press stage.

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Upcoming Publications:

Symbols NID 1961-2014 A Visual Journey:

Publication “INSIGHT2015” Scholastic Papers from the International Design Research Symposium (Editor: Nijoo Dube & V Ravishanka)

Indian Crafts in a Globalizing World (Editor: Shilpa Das & Neelima Hasija)

The publication “Design for MSMEs’ by Shashank Mehta.

Instructional book for making leather product by Ramesh Kumar

Publication Sale:

Set up publications stall during following institutional events at NID, Ahmedabad and NID PG Campus Gandhinagar. Received good response for saling the publications of NID.

1 Interview and Studio test of B. Des (16 to 20 May, 2016) at NID, Ahmedabad

2 Alpavirama 2016 ( 4 to 8 Ocober, 2016) at NID, Ahmedabad

3 Nakashima at NID, (21 & 22 October, 2016) held at NID, Ahmedabad

4 LifestyleAccessoryDesignMeet2016(03& 04 December, 2016) at NID PG Campus, Gandhinagar

List of the key visitors to NID and noteworthy events during April 2016 to November 2016:

Delegation from Witwatersrand University, Johannesburg, South Africa had visited NID on 21th April 2016.

On 17th May 2016, Jan Cam pbell-Westlind, Consul & Deputy Head of Mission, Consulate General of Sweden, Mumbai had visited NID.

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On 19th May 2016, Dr Britta Kalkreuter M.A. HEA, Senior Lecturer in Design Context,School of Textiles and Design, Heriot-Watt University, Scotland had visited NID.

Shri Ramesh Abhishek, Secretary, Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Govt. of India had visited NID on27th May 2016.

On 20th July 2016 a delegation from Sheridan College, Canada had visited NID.

Delegates from Campus France had visited NID on 29th July 2016.

Delegates from British Council had visited NID on 29th August 2016.

Bertrand de Hartingh, Counsellor for Cooperation and Cultural Affairs, FrenchInstitute in India, New Delhi, Ms. Frédérique Terzan, Director, Alliance Française of Ahmedabad and Jatinder Singh, Deputy Head French Language Office, FrenchInstitute in India, New Delhi had visited NID on 29th August 2016.

Sir Dominic Asquith, British High Commissioner to India and GeoffWain,British Deputy High Commissioner, Ahmedabad had visited NID on 01st September 2016.

Sir Dominic Asquith, British High CommissionertoIndiaandGeoffWain

On 30th September 2016, H.E. Alexandre Ziegler, Ambassador of France and Ms. Frédérique Terzan, Director, Alliance Française of Ahmedabad hadvisited NID.

Delegates from UK for lectures organised by British Council, Mumbai had visited NID on 30th September 2016

On 29th November 2016, a delegation from Sheridan College, Canada had visited NID.

New NIDs at Vijayawada, Kurukshetra, Bhopal and Jorhat

As envisaged in the National Design Policy, approved by the Cabinet on 8th February, 2007, four new National Institutes of Design are being set up by the DIPP at Bhopal, Kurukshetra, Jorhat and Vijayawada. Out of the four, institutes at Vijayawada (A.P.) and at Kurukshetra (Haryana) have already started functioning from their transit campuses, from the academic year 2015-16 and 2016-17 respectively.

NID Vijayawada -The state Government has recently allotted 50 acres land for NID at Sakhamuru Village, Thulluru Mandal, Guntur District, APRCDA, Amravati on 15th November 2016 and has given possession of 45.36 acres land on watch antd ward basis on 30th November 2016. DIPP has entrusted NBCC with the task of construction of NID and they have finalizedselection of Design Consultant also. The tenders for construction work will be floated by NBCCsoon.

NID Vijayawada transit campus

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NID Vijayawada transit campus

ThefirstacademicsessionofNIDVijayawadahascommenced from 7 September 2015 in transit campus in Acharya Nagarjuna University, Guntur provided by the State Government. The institute has completed admissions for the second successive year from 11 Jul 2016. The institute has successfully completed first semester of secondacademic year and started second semester on 26 Dec2016.112studentsfromthefirsttwoyearsareundergoing their courses of studies. Admissions for the third successive year are announced jointly with the NID Ahmedabad and admissions will be conducted along with NID Ahmedabad and Kurukshetra. The present intake capacity of the undergraduate program in Textile Design,

Industrial Design and Communication Design is 20 in each discipline.

NID Kurukshetra

State Government of Haryana has allotted 20.5 acres of plot for the construction of National Institute of Design at Village Umri, NH 1, Pipli, Kurukshetra. The foundation stone was laid by the then Hon’ble Chief Minister of Haryana and the then Minister of Commerce and Industry, Govt. of India on the 22nd May, 2013. The boundary wall of the plot has been completed. Further NBCC has awarded the construction work toM/sJayconInfrastructureLtd.Theconstructionwork has commenced in August 2016 and is likely to be completed in February 2018.

NID Kurukshetra transit campus

NID Kurukshetra transit campus

The institute has started its first academic yearfrom 15th November, 2016 from its transit campus at Umri Polytechnic building provided

by the Government of Haryana with all the basic amenities.Thefirstbatchofstudentsisselectedthrough the all India level Design Aptitude Test conductedbyNIDAhmedabad. Thefirstbatchof 54 students are undergoing one year common

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foundationprogramme. NIDKurukshetraoffersfour years full time undergraduate programmes in Industrial Design, Communication Design and Textiles and Apparel Design with intake capacity of 20 students in each discipline.

Transit campuses at Vijayawada and Kurukshetra have good infrastructure with latest computer work stations, internet leased lines, design relatedsoftware,wellequippedStudios,LabsandWorkshops, etc. Other infrastructure facilities include a student cafeteria, dispensary, visiting consulting doctors, sport grounds, buses for the transportation of the students from hostels and visiting nearby cities. Since both the campuses are functioning from their transit campuses, separate

accommodation facilities for the boys and girls students are outsourced, with all basic amenities. These institutes are fully managed and hand held by NID Ahmedabad and very well in sync with the curriculum and academic calendar. Director and seniorofficersofNIDAhmedabadarefunctioningand providing all administrative, financial andacademicservicesinofficiatingcapacitiesassignedby the DIPP. Teams of senior faculty members from NID Ahmedabad are assigned with the academic coordination roles and responsibilities. Faculties from NID Ahmedabad, Bengaluru and Gandhinagar campuses are regularly involved in teaching and evaluation processes at both the new campuses, over and above senior visiting faculties.

NID Bhopal

NID Bhopal

The State Government has allotted 30 acres of land on 30.09.2008 at Gram Acharpura, Tehsil Hujur, District Bhopal, MP. The Society Registration of the institute is completed and application for change of land use has been submitted for approvals. In the mean time, DIPP has entrusted NBCC with the task of construction ofNIDandtheyhavefinalizedselectionofDesign

Consultant also. NBCC has awarded work to M/s UniversalContractorsandEngineersPvt.Limitedfor construction of buildings of the institute. The construction work has started in June 2016 and project is likely to be completed in December 2017. NBCC has progressed construction up to secondfloorsofeachbuildingandTheacademicsession would be started after the construction of the institute is over.

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NID Jorhat

The Assam Government allotted land measuring 93Bigha1Katha17LessascoveredbyDagNo.149,150, 347, 370, 371 and 514 (30.87 Acres) at Tocklai Chah Bagicha Gaon under Garmur Mouza of Jorhat District. The Construction of Boundary Wall has been completed at Jorhat. DIPP has entrusted NBCC with the task of construction of NID and theyhavefinalizedselectionofDesignConsultantalso. The construction work has been started w.e.f. June 2016. NBCC has further awarded the work of NID, Jorhat to M/s Prabhu Agarwalla Construction Pvt. Ltd. Thework is likely to be completed inDecember 2017.

The Quality Council of India, New Delhi

The Quality Council of India (QCI) has been set upasanon-profitautonomoussocietyregisteredunder Societies Registration Act XXI of 1860 to establish an accreditation structure in the country and to spread quality movement in India

by undertaking a National Quality Campaign. QCI works as the National Accreditation Body, governed by a Council comprising of 38 members, and has an equal representation of Government, Industry and other stakeholders.

The Mission of QCI is to lead nationwide quality movement in the country through National Quality Campaign aimed at creating awareness amongst citizens, empowering them to demand quality in all spheres of activities, and promoting and protecting their well-being by encouraging manufacturers and suppliers of goods and service providers for adoption of and adherence to quality standards and tools. QCI functions through the executive bodies (boards/committees) that implement the strategy, policy and operational guidance set by the Quality Council of India with a view to achieve international acceptance and recognition of various components including the accreditation systems.

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The status of projects at QCI and constituent Board Activities during the FY 2016-17 is listed below:

Zero Effect Zero Defect (ZED)

Activity / Project Objective / Target Timeline Current Status“Financial Support to MSMEs in ZED CertificationScheme”forManufactur-ing Sector.

Support & Subsidy by Ministry of MSME Rs. 491 Cr. (GoI Contribution 365Cr.,Beneficiary:126Cr.)overaperiod of three years

Assessment, Rating & Handholding of 22,222 (manufacturing) MSME units in the next 3 years (2016-19).

FY 16-17: 500 units

FY 17-18: 10000 units FY 18-19: 11722 units

Schemenotifiedby the MoMSME in the month of July,

2016. Ongoing

National Accreditation Board Of Healthcare (NABH)

Activity / Project Objective / Target Timeline Current StatusHospital Accreditations 100 31st March 2017 17SHCO Accreditations 35 31st March 2017 14Blood Bank Accreditations 6 31st March 2017 6MIS Accreditations 10 31st March 2017 9Dental Accreditations 15 31st March 2017 14AYUSH Accreditations AYUSH targets depends on Government support.

However, NABH commits to conduct approximately 20 promotion & awareness program including par-

ticipation in exhibitions / fair

11

PreEntryHospitalCertifica-tion

120 31st March 2017 95

PreEntrySHCOCertification 24 31st March 2017 30Safe-ICertification 35 31st March 2017 27NursingExcellenceCertifica-tion

20 31st March 2017 16

ECHS Empanelment All ECHS & CGHS applications shall be processed,

being mandatory

166CGHS Empanelment 302Oral Substitution Therapy (OST) Empanelment TRAINING PROGRAMMES: This includes Programs on Promotion, Implementation, education workshops in all NABH Accreditation Program

50 31st March 2017 59

Accreditation of Integrated Rehabilitation Centres for Addicts (IRCAs) (Ministry of Social Justice and Empowerment)

50 Proposed Not yet started

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National Accreditation Board for Certification Bodies (NABCB)

Activity / Project Objective / Target Timeline Current StatusNew Accreditation Programme(s)

To establish NABCB accredita-tion programme for Green House Gases(GHG)ValidationandVerifi-cation Bodies

In FY 2016-17 Ongoing

Peer Evaluation of new NABCB Accredi-tation Programme(s)

To have international peer evalu-ation of NABCB accreditation programme(s) for

• PersonnelCertification • GHG V&V

In FY 2016-17 In FY 2017-18

Ongoing

Training Programme(s) for personnel of other Accreditation Bodies / other Countries

At least 2 training programmes

In FY 2016-17

* 2-day Workshop for Capacity Building in Certified ReferenceMaterial Production for the South Asian Association for Regional Cooperation (SAARC) member states held at New Delhi on 25-26 July 2016

* Training for FAO in Bangladesh

> 3-days training during 12-14 July 2016 on ISO 17021-1:2015 and ISO 22003:2013 - Requirements for Food Safety Management Systems CertificationBodies.

> 2-days training during 09-10 August 2016 on Auditing Skills.

> 3-day training during 19-21 September 2016 on ISO 22000:2005.

* 5-day Training Programme from 01 - 05 August 2016 for Timber Industry Development Division (TIDD), Forestry Commission, Ghana on ISO/IEC 17020:2012 standard for Inspection Bodies.

Consumer Awareness Programme(s)

5 Consumer Awareness Pro-grammes on ‘Quality in Products & Services’

In FY 2016-17* Dehradun – 08 July 2016

* Chennai – 25 November 2016

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National Accredication Board For Quality Promotion (NBQP)

Activity / Project Objective / Target Timeline Current Status

Promotion of ISO 9001 in government de-partments., viz DIPP & Commerce (MoI&C)

5-10 By March 20176 (Completed) 3 (Ongoing)

Promotional Programs on Quality (ISO stan-dards, Quality Tools & Techniques, Building Quality Culture etc.

25-30 By March 201720 (Completed) 6 Programs planned – Nov/Dec

National Quality Conclave / Quality Month Celebration

1 each By March 20171 (Completed) 1 (Ongoing)

Operational Excellence Projects in Depart-mentsthroughKaizen,5S,Leanetc

1-2 projects By March 2017 1 Ongoing (Kaizen)

Registration to Professional Membership Scheme of QCI

To enhance by 100% (to 1000

members)By March 2017

Total as on Nov 7, 2016 – 520 From April ’16 – 184 members added

Registration of Management System courses ( Quality, Environment, OHSAS, Food safety, Food Hygiene, ISMS, Energy Management)

To enhance by 20% (to 36 courses)

By March 2017 28

Registration of Auditors / Consultant for Management Systems related to Quality, Environment, Food Safety etc.

To enhance by 10% to 130 numbers

By March 2017

Total as on Nov 7, 2016 – 91 From April ’16 – 14 Auditors/ Consultant added

QCIDLShahQualityAwardScheme 1 By March 2017 1 completedPeriodic Publications for Quality Awareness 5 (mags/book) By March 2017 4Management System Course Assessors Train-ing (New initiative)

25-30 assessors By March 2017 Planned for Q4

RegistrationofLabConsultant(Newinitia-tive)

20-25 consultants By March 2017 2*

SpecializedTrainingonTPM,TQM,LeanandOperational Excellence (New Initiative)

2-4 programs By March 2017 2

National Accreditation Board for Education and Training (NABET)


ITI accreditation ITI Accreditation – QCI-NABET has been en-trusted the work of Accreditation of Industrial Training Institutes (ITI) by Ministry of Skill Devel-opment and Entrepreneurship. Accreditation by QCIismandatoryforITIstogetNCVTaffiliation.

NABET-QCI has been able to successfully create a user friendly, transparent and credible accredi-tation process of ITI’s that has been appreciated by the stakeholders and led to a quantum jump in number of new institutions being opened.

2500 ITIs by October

2016

Completed

1. 3775 applications have been received for the period Jan – Oct, 2016

2. 2695 ITI’s have been accredited in the current session.

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Rating of ITI's A case has been forwarded to MSDE/DGT for rating of ITI's

NAApproval of proposal awaited

Capacity Building of ATIs for ISO 29990

An MoU was signed between DGT and QCI for capacity building of ATIs (27 in Nos.). However only 06 ATIs have been allocated so far the task for which has been completed.

NAApproval of proposal awaited

Capacity Building of ITIs for ISO 29990

A case has been forwarded to MSDE/DGT for capacity building of ITI's for ISO 29990. NA

Approval of proposal awaited

Operation of Lean Manufacturing Competitiveness Scheme of MSME

Lean Manufacturing Competitiveness Scheme(LMCS) - NABET has been appointed as oneof the National Monitoring Implementation Unit (NMIU) along with NPC in the current 5 year plan by Ministry of Micro, Small and Medium Enterprises for Implementing LeanManufacturing Technology in MSME Clusters. The target allocated to NABET for the year 2015-16 has been completed successfully. Implementation of Lean Tools and Tech-niques in MSME Sectors for improv-ing the competitiveness of MSME Sector. Assessment and successful implementation of lean tools and techniques in 150 Clusters formed underLMCSScheme.

150 Clusters by March

2018

150 clusters have been formed. Clusters are indifferentstagesofimplementation. 14 clustersareinfinalstagesof implementation.

Formation of new Clusters and Awareness Programs to be allocated by DC (MSME) Office

1. Additional 50 clusters and 50 Awareness programs have been allocation in august, 2016

2. As on date out of additional 50 clusters being allocated to us, 35 clusters have been formed while balance 15 clusters are expected to formed by end of Dec / Jan

3. Out of additional 50 awareness programs being allocated to us, 17 awareness programs have been conducted and rest are in pipeline stage

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Schools Assessment and Accreditation

1. Mandate on assessments of Schools under CBSE board

2. Accreditation of schools under state boards like Punjab, MP and Maharashtra

3. Grading of Schools

4. Accreditation of Kendriya Vidhalayas

NA

Proposal submitted to Odisha Govt. Approval is awaited.

Assessments of EIA consultant organization

170 March 2017182 accredited (process is going on)

NABET-QCI proposal for assessing compliance of EC projects

Awaiting MoEF&CC directiveExpected in

this FY

Approval of proposal awaited from Ministry

Accreditation of Vocational Training Providers

To provide voluntary accreditation to Vocational Training Providers. Accreditation of 10 Training Providers targeted.

March 201713 VTP Accredited. 4-5 more VTP’s are in pipeline.

Accreditation of Business Membership Organisation (Voluntary Accreditation)

NABET-QCI has developed a scheme for accreditation of Business Membership Organisations (BMO) or Industry association in cooperation with Ministry of MSME and GIZ, Germany. The purpose of the scheme is to accredit and recognize competent and credible industry associations for strengthening the MSMEs for meeting various national objectives. Manyfinancial institutions likeSIDBI, IDBIbanketc. and Ministries have now made it mandatory for the industry associations to be NABET-QCI accredited for any support from the respective ministries.

25 Voluntary Accreditations expected.

March 201711 accredited and 15 New applications received.

Accreditation of SIA Consultants

Scheme for accreditation of SIA consultants has been developed by NABET and is awaiting sup-port from the Ministry of Urban Development

Status Quo. No Change in status

School Accreditation

Existing schools and new schools to be added this year Workshops and New Consultants to be added

On going Ongoing

NCTE - Teacher education

E monitoring of websites of all TEIs and assess-ment of TEIs conducting diploma courses

2016-171961 TEI’s has applied so far

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Assessments of NDMC schools

Accreditation and capacity building of trainers of all NDMC schools

Expected in this FY

Approval of proposal awaited from NDMC.

NABET have backed a project from Delhi Govt. for assessment and evaluation for quality improvement of 5 Delhi Govt. Schools

QCI Projects


Swacchh Survekshan

Part of the Swachh Bharat campaign of the Government. In the second phase we neet to assess cleanliness in 500 cities across the country and rank them accordingly

To be completed by February

Ongoing

SBM Rural

Part of the Swachh Bharat campaign of the government. To assess cleanliness in 75 districts across the country and rank them accordingly

To be completed by 30th June

Completed

SBM (U) – Open Defecation Free

Part of the Swachh Bharat campaign of the government. To assess if urban local body can be declared Open Defecation Free. Project Mandate to assess all 4041 towns and cities across India at a regular interval of 6 months

First phase to be completed by March 2017

Ongoing

NCR Bhopal and In-dore toilets mapping

Project to map all the publicly accessible toilets of India on google maps. QCI to start in NCR on private assessment model and Bhopal and Indore on project management based assessment model

To be completed by 15th Septem-

ber, 2016Completed

Gujarat Rural ODFTo check Open defecation free status in Mehsana District as part of SwachhBharata Rural

To be completed by 1st October,

2016Completed

Drinking Water Survey

Conductanextensivesurveyoffirstofitskindin ~5600 village in India to assess current status of piped drinking water

To be completed by 1st January,

2017

Pilot to start from 10th November

PM Yuva

Undertake the inspections of premises of prospective project institutes for verifying the claims of fulfilling the eligibility conditionsfor empanelment under the National scheme of Entrepreneurship Development, a scheme delivering online education

To be completed by 9th November,

2017Ongoing

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Lead Safe Paint Scheme

TohaveaLeadSafeSchemelaunchedinIndiaAn MoU with to be inked by Quality Council of India (QCI) with IPEN so that activities are taken up under the seven-nation EU-SWITCH Asia Lead Paint Elimination Project for ereducingLeadinPaints.


AYUSH Mark Scheme

Promoting quality in AYUSH manufacturing, streamline processes and aiding international trade.

WorkingwithM/oAYUSHtoissueCertificateof Pharmaceutical Product (CoPP) to manufacturers certified to AYUSH PremiumMark


National Productivity Council,

The National Productivity Council (NPC) was established in 1958 as an autonomous body under the Societies Registration Act, by Govt of India. It has a tripartite character, wherein Government, Industry and Labour are equally represented.The Council is headed by the Union Minister of State (Ind.Charge) of Commerce and Industry as its President and the Governing Body is headed by Secretary, Department of Industrial Policy and Promotion as its Chairman.

The main objectives of the Council are to increase awareness of productivity and demonstration of the concepts and techniques of Productivity in all the sectors of the economy.

TheCorporateOffice ofNPC is located atNewDelhi. NPC also has a countrywide reach with 13 Regional Directorates (RDs), located in State capitals/Industrial centres and one training institute “Dr. Ambedkar Institute of Productivity (AIP)” located in Chennai.

NPC undertakes management and technological consultancy, training and information services in variousproductivitysubjectsforthebenefitofitsclients. The specialized productivity functions dealt by NPC are Process Management, Environment Management, Information Technology and

Knowledge Management, Energy Management, Human Resource Management, Agri-business Technology Management etc.

NPC also has a networks of over 24 LocalProductivity Councils (LPCs) situated in thecountry to spread the message of productivity and dissemination at grassroots level. NPC is the implementation agency for programmes/activities relating to India of the Tokyo based Asian Productivity Organization – an inter-governmental body for promotion of productivity intheAsia-PacificregionofwhichtheGovernmentof India is a founder member.

NPC’s Activity Highlights:

Consultancy Projects

The details of some illustrative consultancy projects carried out by NPC during the year are as under:

• NPC Guwahati prepared appraisal reports for industrial units for claiming CCIS subsidy under NEIIPP-2007 and Assam Industrial Policy, 2014. Some of the units which were appraised are - M/s DS Group, Guwahati, M/s Neo-Plast, Guwahati, M/s Charu Projects, Guwahati, M/s Zion Machines, Meghalaya, M/s Tejasi Chai, Sibsagar, Assam, M/s Vivanta by Taj – 5 Star Hotel, Guwahati

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• NPC conducted Manpower Optimization study of Uttranchal Factory of Britannia Industries Ltd., Bengaluru. The study hashelped the industry in saving its manpower by 214 average man days per day leading to the saving of Rs 11.0 million per year.

• Energy Audit Studies were undertasken at Birla Century Ltd., Jhagadia Bharuch.The energy audit exercise covered energy saving opportunities in electrical and thermalandalsogasfiredheatingsystems.Energy audit exercise estimated savings potential of Rs.13.0 crores equivalent to 14% of the operating cost. The energy audit also highlighted priority for implementing energy saving opportunities and also identifiedtotalinvestmentrequirementofRs. 31.0 crores.

• Indian Rubber Manufacturers Research Association (IRMRA), Mumbai an autonomous organisation under DIPP entrusted the task of conducting One TimeSystemAuditcoveringTestingLabs,R&D, Stores, Purchase, Finance and HR Divisions. NPC team identified the areasfor improvement in Asset Management, Costing Method requirement, MaintenanceofLabequipments,reviewofproject costing and realisation, monitoring of lead time for testing, stores and inventory management, review of disposal procedures for tyre and non-tyre samples, streamliningandfixingresponsibilityforrealising bad debts.

• NPC Mumbai and other regional offices reviewed the security systemsimplemented by the printing presses as per IBA guidelines. Inspection was conducted for 11 printing presses all over the country.

• The Job Evaluation Study at the Mulund unit of Keva Fragrances Pvt. Ltd. for

workmen category has identified 35 JobPositions based on similarity or identical nature of activities performed by the 80 regular and contract Workmen across the various sections of the plant. Interviews were conducted across all the Departments after examining the Job Analysis forms filledup for the representativeworkmenby the supervisors of the various sections / groups of the plant. Positional Job Descriptions (PJD) was made based on the interviews conducted as well based on the Job Analysis forms.

The PJDs have been evaluated for their relative worth by adopting the “point rating system” of Job Evaluation. A Job Evaluation Plan (JEP) comprising 11 factors ranging from Education and Trade Knowledge (ETK) to Working Conditions has been formulated. Each Job has been evaluated against each factor asdefinedin the JEP. Prior to conduct of the study there was no gradation of jobs in workman category. On the basis of the ratings and cumulative points scored by each Job it is proposed to categorise the Jobs into 4 levels for workmen category viz. Manual, Semi-Skilled, Skilled and Highly Skilled.

• NPC was assigned the role of National Monitoring and Implementing Unit (NMIU) for 100 clusters in the pilot phase of Lean Manufacturing CompetitivenessScheme (LMCS) in the year 2009. Basedon the success of pilot phase, the scheme has been upscaled to 500 more clusters and NPC has again been assigned the role of NMIU for 300 clusters in the upscaled phase of scheme.

So far NPC has conducted 398 Awareness Programmes and formed 190 clusters pan India. The clusters are formed in major

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industrial hubs of the country and cover wide range of manufacturing sectors namely Automobiles parts, Engineering, Foundry, Food Processing, Sheet Metals, Readymade Garments etc. As per the scheme, an expert consultant is engaged in cluster for a period of 18 months to implementLeanManufacturingtoolsandtechniques.

In the state of Maharashtra 40 clusters each comprising of 7-10 units have been formed. About 380 units are participating inthisschemewhereLeanManufacturingtechniques are being implemented in a cluster approach over a period of 18 months. The 40 clusters are formed in all major Industrial hubs in Maharashtra namely: Pune, Nashik, Kolhapur, Jalgaon, Vasai, Nagpur, Satara and Aurangabad.

• NBC Bearings is the premier brand of India’s leading bearings manufacturer and exporter. NBC Bearings are widely used by 2 and 3 Wheelers, Cars, Trucks, Tractors, Electric Motors, Railway wagons, coaches & locomotives, Steel Mills, Heavy Engineering Plants, Bulldozers, Shovels, Tillers and Thermal Power Plants. The automotive and railway industries form the two largest client segments.

Assessment of manpower requirement in the Taper Roller Bearing division for the officersandstaffcategoriesofemployeesbelonging to LPE, Maintenance,Mechanical maintenance, Electronic & Electrical Maintenance, Manufacturing, Roll Grinding, Race Grinding, Assembly, Heat Treatment, departments. The report presented the function-wise recommendations detailing - Present manpower, deployment, Analysis and Findings, Proposed organization chart,

recommended manpower for the above listed departments, Productivity improvement issues (wherever possible)

• ManpowerassessmentstudyattheOfficeof the Salt Commissioner was conducted to assess the manpower requirement in the SCO, to suggest an alternative mechanism for the collection of data relating to production of salt if the salt cess collected by the SCO under the Salt Cess Act is to be abolished, to evaluate whether the quality control laboratories can be financially self sustaining and tosuggest a suitable revenue model for the same.

• BCCLawardedtheManProductivityStudyof Moonidih U/G Mine project under West Jharia Area to NPC Patna, The study broadly covered determination of Productivity of manpower employed in Mine’s Activities, expected rate of output per worker/group of workers involved in repetitive activities whose output are directly quantifiablein terms of coal output and manpower utilization position wise for all jobs under scope of work and its rationalization.

• CentralCoalfields Limited (CCL) awardedthe Man Productivity Study of Rajrappa OCP (Open Cast Project) to National Productivity Council (NPC) to improve the efficiency of production process,particularly of deployed manpower. The study broadly covered determination of Productivity of manpower employed in Mine’s Activities, expected rate of output per worker/group of workers involved in repetitive activities whose output are directly quantifiable in terms of coaloutput and manpower utilization position wise for all jobs.

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Productivity Review and detailed study of the OCP Rajrappa was carried out by the NPC team on various factors like, existing capacity utilization, age profileof machines, manpower utilisation, operation of various machines like shovel, dumpers, dozers, drill machines, existing organization.

• M/s Central Mine Planning & Design Institute, Ranchi, (CMPDIL) awarded thework order of establishing benchmark of drillingoutputfordifferenttypesofdrillingbeingcarriedoutindifferentgeographicalformations under varying conditions. The study covered coring and non-coring drilling activities at 22 borehole sites spread across various drilling sites in Jharkhand, Odisha, West Bengal and Maharashtra. The study established correlation of drilling time with various strata and depth of boreholes and accordingly benchmark norms were determined for various types of drilling activities, depth of boreholes, different type of formations and drillingtechnologies. Apart from these various other productivity improvement measures were recommended.

• Packing Plant Performance Analysis at UltraTech was conducted by NPC Kolkata. The recommended change in policy deploymentwill save a significantdemurrage charges as well as loading time, enhanceeffectiveproductioncapacitybyreduction in stoppages by implementing short term measures,

• PAT Monitoring & Verification Auditfor DVC, BTPS, Bokaro and DVC, DTPS, Durgapur. West Bengal State Electricity DistributionCompanyLimited(WBSEDCL)is the State Designated Agency to implement the provisions of Energy

Conservation (EC) Act 2001 (Amendment 2010) in West Bengal. NPC Kolkata assisted the WBSDA for successfully carrying out multiple Awareness Programmes & Projects towards implementation of the provisions of EC Act 2001 (Amendment 2010) in the state,

• Safety Audit NTPC FSTPP - National Thermal Power Corporation, Farakka - NPC Kolkata carried out an external Safety Audit as per IS: 14489:1998 (Reaffirmed2002) of their entire power stations. The safety Audit was conducted to ascertain the functioning of safety systems and practices in conformance with IS: 14489:1998 (Reaffirmed 2002) – Codeof Practice on Occupational Safety and Health Audit along with other statutory acts and rules such as Factories act and rules; Indian Electricity rules, gas cylinder rules, petroleum Act etc.

• NPC conducted Shorthand Skill Test (English & Hindi) for the post of Junior Stenographer and of Stenographer for Bureau of Indian Standards. The exam was conducted at Delhi for 102 & 47 candidates respectively. The process was completed by August, 2016.

Seminars and Training Programmes

NPC has organized a number of seminars and training programmes on various facets of productivity during the year, details of some of these follow:

• NPC Kolkata conducted 2-Day Theory-cum Practice Training Programme of Boiler Operators’ for Chhattisgarh State Renewable Energy Development Agency (CREDA) at Raipur and Bilaspur, Chhattisgarh. Energy Conservation & Energy Efficiency at Arunachal Pradesh

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Energy Development Agency (APEDA), Itanagar, Arunachal Pradesh. Energy management programme at Bongaigaon Refinery, IOCL Manpower Assessment programme for Bangalore Electric SupplyCo Ltd, Bangalore, ZuariCement,Sitapuram, Sri SriAyurvedha, Bangalore, KirloskarFerrousIndsLtd,Koppal.

• Energy Audit at Moog Control India Pvt Ltd, Bangalore and Tumkur Diary,Tumkur. Preparatory Training Programme for Energy Managers & Auditors for Department of Public Enterprises, Government of Karnataka, Energy Audit & Conservation in Thermal Energy Systems/CETEE, Chennai (REVENUE SHARING BASIS) for DPE Government of Karnataka

• Workshop on Efficient Operation andMaintenance of Boilers for Department of Public Enterprises, Government of Karnataka, Sponsored by Central Boiler Board, New Delhi

• Awareness Program on TQM & Six Sigma for Karnataka Milk Federation Limited,Bangalore

• Interactive Workshop on Best Practices in Pulp & Paper Sector for GHG emission.

• Assessment of Quality of School Education in schools funded by NEEPCO Ltd inAssam, Nagaland and Arunachal Pradesh. Implementation of ISO 9001:2015, ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007 at the Dy. Commissioner’s office of Goalpara District, Assamand ONGC Tripura Power Co. Ltd.,Organisational Productivity through Lean Management at 1 Advance BaseWorkshop, Narengi Military Station. Theory-cum Practice Training Programme of Boiler Operators at Chhattisgarh State Renewable Energy Development Agency (CREDA), Raipur (CG). Capacity Building of Designated Entities in Eastern & North Eastern Regions under PAT Scheme’ at Shakti Sustainable Energy Foundation, New Delhi.

• Awareness Programme on Energy Efficiency. MSME Development Institute,Ministry of MSME, Govt. of India, Kolkata. Preventive&Cost EffectiveMaintenanceProgramme for Indian Oil Corporation Ltd.,Mumbai.

• EnergyConservation&Energy Efficiencyprogramme for Arunachal Pradesh Energy Development Agency (APEDA), Itanagar, Arunachal Pradesh.

Representation of Scheduled Castes/Scheduled Tribes/OBCs/ Ex-servicemen and Physically

Disabled persons in ServicesTheGovernment’seffortsforsafeguardsofpublicemployment for persons belonging to Scheduled Castes and Scheduled tribes are instrumental in ensuring inclusive growth of the Nation, free from discriminationandsufferings.Inaccordancewiththe policy of the Government of India, a SC/ST Cell has been created in the Department under a LiaisonOfficeroftherankofDeputySecretarywiththe objective of ensuring proper implementation of the instructions issued from time to time relating to reservation for SCs/STs in Government service. The SC/ST Cell in the Department is responsible for monitoring the implementation of the instructions of the Government on the reservation of SC/ST in services in the Department aswellasinvariousattached/subordinateoffices,inspection of reservation rosters, ensuring submission of regular returns to the Department of Personnel & Training.

Similarly, a nodal officer has been appointed inthe rank of Deputy Secretary, for ensuring proper implementation of the instructions issued from time to time in respect of OBCs in government service.

Periodic directions are also issued by the Department to all administrative sections as well

as the appointing authorities under its control to ensure proper implementation of the directives on reservation for members of the Scheduled Castes/ Scheduled Tribes/OBCs/Ex-servicemen and Physically Disabled Persons.

Representation of Person with Disabilities in Service

Section 3 of the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995 stipulates that as a matter of policy, 3% reservation in the posts under the Government be provided for persons with disabilities. The Department of Industrial Policy& Promotion has beenmaking efforts inthe matter and the instructions issued by the Government of India from time to time are being implemented in the Department and circulated to allattached/subordinateofficesandautonomousorganizations under the Department, ensuring its compliance.

The breakup of number of Persons with Disabilities and Ex-servicemen working in the Department of Industrial Policy & Promotion and its Attached/SubordinateofficesandAutonomousBodiesisasfollows:

PROFORMAS.No. Category of Post Sanctioned

Strength No. of Physically

Handicapped PersonsNo. of

Ex-Servicemen 1. A 1777 13 12. B 1323 9 73. C 1326 27 184. C# 952 13 4

# Erstwhile Group ‘D’

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Women Welfare Activities

Constitution of India prominently underlines the principles of gender equality. It enables the Government to frame and implement policies aimed at advancement of women in all walks of life. It has thus always been an endeavor of the Government to promote social and economic empowerment of women through cross-cutting policies and programees; mainstream gender concerns; create awareness about their right; and to facilitate institutional and legislative support for enabling them realize their right and develop to their full potential.

Government of India has always emphasized that an empowered woman living with dignity and contributing as equal partners in development in an environment free from violence and discrimination in one of the basic necessities for the country to develop and to prosper. Accommodating these views and in order to address the concerns relating to safety and dignity of women at workplace the Government

has provided for the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013. The Act, while providing for a series of institutional and legal arrangements, requires every Ministry/ Department to have an Internal Complaints Committee to look into complaints of sexual harassment of women at workplace. The Department has constituted an Internal Complaints Committee meeting all its requirements, including its composition and hierarchy.

Apart from constitution of the Internal Complaints Committee the Department has undertaken a number of proactive steps in order to maintain a healthy and congenial atmosphere for women employees in line with the guidelines issued by the Government time to time. Women employees, as equal partners in this endeavor, are encouraged to make suggestions for improvement in their working conditions.

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Implementation of Official Language Policy

Official Language Policy of the Government

Hindi in Devnagari script has been adopted as theOfficial Language in the constitution of thecountry and for ensuring its progressive use in the Ministries/Departments and offices undertheir control, Official Language Policy has beenderived. As required in the above policy, every possible efforts weremade during the financialyear 2016-17 in the Department of Industrial Policy and Promotion, Ministry of Commerce & Industry to ensure proper compliance to constitutional provisions of Official LanguagePolicy and requirements of Programmes/Activities prescribed by the Nodal Ministry – Department of Official Language, Ministry of Home Affairsthereunder.

With the aim of ensuring maximum use and propagation of Hindi in the Department as well asintheofficesunderit,allpossiblestepsweretaken to implement the rules and provisions contained in the Official Language Act (O.L.Act), 1963 passed by the Parliament of India. All documents mentioned in the sub-section (3) of the main section 3 of the Act such as General Orders,Rules,Resolutions,Licensesetc.includingall papers meant for the Parliament were ensured to be issued mandatorily in bilingual form i.e., in Hindi and English. As prescribed in Rule-5 of OfficialLanguageRules1976ofOfficialLanguageAct, all letters received in Hindi, were ensured to be replied in Hindi only.

In consonance with the implementation of various provisionsofOfficialLanguageAct,1963enactedby the Parliament after independence and Rules underOfficialLanguageRules,1976,allstepsweretaken to ensure maximum correspondence in Hindi with the State Governments, Union Territories and attached/subordinate offices/public sectorundertakings/institutions of Central Government located in region ‘A’, ‘B’ and ‘C’ as prescribed by Deptt. Of Official Language, Ministry of HomeAffairs, for the purpose of implementation ofOfficialLanguagePolicy.Allouteffortsweremadeto achieve the targets laid down in the Annual Programme 2016-17 circulated by Department of Official Language to allMinistries/Departments.With active co-efforts byDepartment’s officers/employees, 78%, 74% and 68% (as on 30th September, 2016) of correspondence was done in Hindi with Central Govt./State Govt. offices,undertakings, institutions etc. in the Region ‘A’, ‘B’ and ‘C’ respectively during the year under review. Inthisway,effortstoachievethesaidtargetsfixedbyM/oHomeAffairs,werecontinued.Concertedeffortsarebeingmadetoachievefurtherprogress.

With the aim of achieving increased progressive useofHindiintheofficialworkandforeffectiveimplementation of Official Language Act, 1963,various Divisions of the Department have been notifiedtodotheirmaximumofficialworkinHindionly. This has helped a lot in getting increased andfruitfulcontributionofofficers/employeesinthefulfilmentofconstitutionalmandateofuseofHindiinofficialwork.

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Monitoring of Implementation of Official Language Policy

With a view to have the status of implementation of various provisions of Official LanguagePolicy in theDepartment andOffices/Institutes/Autonomous Bodies/Undertakings under it, a Quarterly Report is sought from all divisions of the Departmentandofficesunder its administrativecontrol. The position is reviewed regularly by the Official Language Wing of the Department incontext of relevant rules/provisions contained in OfficialLanguagePolicyoftheGovernment.Theposition is also reviewed extensively on quarterly basis in the meetings of Official LanguageImplementation Committee of the Department under the chairmanship of the Joint Secretary (Incharge, Official Language), comprising alldivisionalheads(officersofthelevelofDirector/Deputy Secretary) as members. Decisions taken in thesemeetings are circulated to the officersconcerned of the Department and attached/subordinateoffices for necessary action.Duringthe period under review, in the meetings of the Committee, very useful and elaborative discussion took place and effective as well as practicabledecisions were taken to ensure use of officiallanguage Hindi

For monitoring the position of implementation of Official Language Policy at highest level, ahigh level Hindi Advisory Committee under the chairmanship of Minister for Commerce & Industry exists in the Department in which many linguistic experts have been included besides prominent Members of Parliament. The Committee monitors the overall position regarding implementation of Official Language Policy and related provisionsin the Ministry as well as offices under itsadministrative control, in its biennial meetings.

With the aim of increasing use of Hindi and its extensive propagation and for providing information related to activities of the Department

in public domain, the related material is uploaded on the official website in Hindi & English. Thelatest information about working/activities/significantachievementsetc.of theDepartmentas a whole, is made available in Hindi alongwith English on the website.

The officers of the Department responsible forimplementationofOfficialLanguagePolicywork,inspect the Divisions of the Department, as well asitsattachedofficesfromtime-to-timetohavean on-the-spot assessment of implementation of provisions of the Policy. Position is regularly monitored by the concerned Divisions of the Ministry.

Training

WiththeaimofmaximizinguseofHindiinofficialwork, employees are imparted training in Hindi typing/shorthand as well as in Hindi language from time to time under Hindi Teaching Scheme beingadministeredbyM/OHomeAffairs.It isacontinuous process. This has been very useful in increasinguseofHindiintheofficialwork.Also,workshops are organized from time to time to acquaint the officers/staff of the Departmentwith requirements of Official Language Policyof the Government, resolve their practical/technical problems in working in Hindi and impart theoretical as well as practical training in this regard. Experienced Experts are invited to provide above training. The said experts inter-act with the participants extensively about OfficialLanguagePolicy,noting/draftinginHindiaswellas procedure for doing work easily in Hindi on computers. To facilitate them for this purpose, Unicode software has been provided in all the computers. A Departmental at Glossary has also beenmadeavailable toall theofficers/divisionsof the Department containing Hindi version of various English words, abbreviations, phrases, short notes etc. being used frequently in the day-to-dayofficialwork.Thishasbeenverybeneficial

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for them in doing work in Hindi and has made themmoreconfidentinthisregard.

Incentive Schemes

As per policy of the Government to propagate use of Hindi by encouragement, some departmental incentive schemes as well as schemes circulated by the nodal Ministry i.e. M/o Home Affairs,have been implemented in the Department as elaborated below:

1. Annual Cash Prize Scheme for noting/drafting in Hindi.

As per Official Language Policy of theGovernment, M/o Home Affairs, D/oOfficialLanguagehavepreparedanAnnualCash Prize Scheme for Noting/Drafting in Hindi, which is required to be implemented by all Ministries/Departments every year. Accordingly, the scheme is implemented regularly in the Department every year. Under it, First, Second & Third prizes of ` 2000(Two Prizes), ` 1200(Three Prizes), & ` 600(Five Prizes), (Total 10 prizes) respectively are being given till now, to individuals for doing noting/drafting in Hindi in prescribed words limit or above in afinancialyear.Recently,theaboveprizeshave been enhanced to ` 5000, 3000 and 2000 respectively.

2. Half Yearly Cash Prize Scheme for Sections/Units of the Department, doing their maximum official work in Hindi:

With the motive of encouraging the Divisions of the Department to do their maximumofficialworkinHindiasateamhaving sense of joint responsibility and to develop a positive competition among them, a Half Yearly Hindi Noting/Drafting Cash Prizes Scheme is being implemented continuously in the Department. Under

this scheme, Cash Prizes of Rs. 7000, 6000 & 5000 are awarded as first,second & third prize respectively and Two Consolation prizes of Rs.3000 each are given considering a section as one unit. During the year under review also, the scheme was implemented successfully.

Other Official Language related Incentive Activities

As per directives issued by the nodal Ministry – DepartmentofOfficialLanguage,MinistryofHomeAffairs,likepreviousyears,a‘HindiFortnight’wasarranged in the month of September, 2016 in the Department on the occasion of Hindi Diwas. An appeal was issued as from respected Secretary (IPP) as head of the Department to the employees of the Department as well as of attached/subordinate offices and other autonomous organisationsurging them to do their maximum work in Hindi.

During the above ‘Hindi Fortnight’, Hindi Essay, Noting/Drafting, Poem Recitation, Translation and Dictation for MTS employees competitions were also organized to encourage staff to dotheir officialwork inHindi. Above included twocompetitions exclusively for Non-Hindi speaking employees. Participation in these competitions was very enthusiastic. Successful contestants in the above competitions were awarded cash prizes.

With the aim of ensuring increased use of Hindi by the employees of the Department as well as of offices/institutes/autonomous bodiesetc. under it and to encourage and utilize their writing skill in Hindi, 6th issue of Departmental Magzine ‘Sugandhi’ was published this year also. Interesting and readable self-written compositions oftheofficers/employeesoftheDepartmentandofficesunder it, aswell as variousmotivative&entertaining writings of some prominent writers, were incorporated in the Magazine. The response was praise-worthy.

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Theoffices/institutesetc.underthisDepartment,continued their endeavour towards ensuring implementation of various provisions ofOfficialLanguageActandOfficialLanguagePolicyframedunder it, in true spirit. Their correspondence in Hindi with offices located in ‘A’, ‘B’ and ‘C’regions, was found to be encouraging. However, they were continuously urged to achieve further progress and prescribed related targets.

Like previous years, this year also, HindiWeek/Fortnight/Month was organized during the month

of September, 2016by all the aforesaid offices.Various competitions were organized by them during the period and successful contestants were suitably awarded.

In this way, Department of Industrial Policy and Promotion under Ministry of Commerce & Industry and offices/institutes/autonomousbodies etc. under it, made effective efforts toensure compliance of constitutional obligations ofOfficialLanguagePolicyoftheGovernment.

Vigilance Activities

The Vigilance unit of the Department is headed by aChiefVigilanceOfficer(CVO)oftherankofJointSecretary who is appointed on the advice of the Central Vigilance Commission. The Chief Vigilance Officeristhenodalpointinthevigilancesetupofthe Department in respect of the following:

• Identification of sensitive areas proneto malpractices and taking preventive measurestoensureintegrityandefficiencyin the functioning of the Department.

• Taking suitable action to achieve the targets fixed by the Department ofPersonnel and Training on anti-corruption measures.

• Scrutiny of complaints and initiation of appropriate investigation measures.

• Processing and initiation of disciplinary proceedings.

• Maintenance of property folders and issue of sanctions under CCS (Conduct) Rules / FR&SRinrespectof officers/officialsofDIPPandOfficeoftheEconomicAdviser,Tariff Commission as well as Group ‘A’/Group ‘B’ officers of Petroleum andExplosives Safety Organization (PESO) & Salt Department.

• Maintenance of APAR Dossiers of all officers / officials of DIPP, Office ofEconomic Adviser, Tariff Commissionas well as Group ‘A’/Group ‘B’ officersof Petroleum and Explosives Safety Organization (PESO) & Salt Department.

• Issue of Major / Minor Penalty and IntegrityCertificates.

• Preventive vigilance.

• Handling and custody of top secret papers like Union War Books etc.

Matters Relating To Annual Performance Appraisal Reports (APAR)

• MaintenanceofAPARofofficersofIndianAdministrative Service under Smart Performance Appraisal Report Recording Online Window (SPARROW) :

• Smart Performance Appraisal Report Recording Online Window (SPARROW), the electronic annual performance appraisal report has been adopted from April,2014inrespectofIASofficersasperinstructions of DoP&T.

• Smart Performance Appraisal Report Recording online Window (SPARROW) has been initiated forCSSofficersofDeputySecretary and above level and in respect ofCSSSofficersofSeniorPrincipalPrivateSecretariesandabovelevelofficers.

• Maintenance of APAR Dossiers of all officers/officials of DIPP, Office of theEconomic Adviser, Tariff Commissionas well as Group ‘A’/Group ‘B’ officersof Petroleum and Explosives Safety Organization (PESO) and Salt Department.

• The Department has also adopted Web Based Software Solution for Cadre

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Management System (CMC) in respect of CSS, CSSS and CSCS as per instructions issued by the Department of Personnel and Training, the Cadre Controlling Authority of these services. This involves feeding of relevant entries of Annual Performance Appraisal Reports( APARs) in the software (CMS) in respect of Group ‘A’& ‘B’ (Gazetted) officers of CSS/CSSSbefore sending the hard copy of APARs to the Cadre Controlling Authority of the two services. It involves scanning of APARs of the two Services in Cadre Management System (CMS).

There is no full time Chief Vigilance Officer forattached and subordinate offices as these aresmall organizations. Vigilance activities of these officesarebeinglookedafterbytheirDivisionalHeads/Part time Chief Vigilance Officers. The

overall responsibility of vigilance activities of these offices however, rests with the Chief VigilanceOfficeroftheDepartmentofIndustrialPolicyandPromotion.

Preventive vigilance continues to receive priority attentionwithprimaryemphasisonidentificationof areas sensitive or prone to malpractices and temptation. Compliance of the guidelines/instructions issued from time to time by the Department of Personnel and Training and Central Vigilance Commission in this regard is ensured.

Vigilance Awareness Week was observed from 31st October, 2016 to 5th November, 2016 to create awareness amongst officers and staff aswell as public / citizens for promoting Integrity and eradicating Corruption.

During the year 2016-17, the Vigilance Section hasreceivedfiveCVCcases.

Citizen's Charter

The Department consciously and diligently upholds the values of integrity, transparency and accountability in its day-to-day public dealings. The Department endeavors to add value to services and to speed up the process of decision making and timely implementation by adopting modern management systems and practices. The Department is committed to :

• Continuously consult the stakeholdersand other interest groups / stakeholders in reviewing the policies and procedures to reflect their views, perceptions andconcerns on the policy documents.

• Consider the stakeholders and interestgroups as partners in progress and accord them respect and cordiality, encourage them to come out with innovative concepts and procedures to provide for cross-fertilization of ideas that help overall promotion of industrial climate.

• Create more effective channels ofcommunication for a interface with the stakeholders and other interest group through e-governance with widespread use of electronic mode.

• Maintaintheconfidentialityofthepersonaland business information disclosed to the Department.

• Simplifying procedures for industrialapprovals keeping minimum controls that are considered critically essential.

• Placeinthepublicdomainallchangesinlaw and procedures through appropriate media channels as and when these are finalized.

Quick disposal of cases and redressal of grievances is accorded top priority. Towards this, the Department continues to issue on the spot written acknowledgments to all queries and applications and responds to all queries within time bound manner. A detailed list of service provided including standards thereof is at Table 20.1.

For successful implementation of the Citizen's – Charter, the Department expects cooperation of the users. An indicative list of expectations is given below:

• Submissionofdulycompletedapplicationforms in all respects.

• Proper utilization of central financialassistance released to States Governments/UT Administrations for specific projects and making efforts forthe timely completion of these projects.

• Extending courtesies to officials of theDepartment.

• Alwayskeepingproper recordsof lettersand communications with the Department.

• If the user has an appointment with anofficer in the Ministry, please arrive 15minutes prior to the appointment.

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• Iftheuserwantstocancelanappointment,please give a written notice via fax or email at least two days in advance.

• Sendreports in theprescribedformatasper prescribed timelines.

• Tocheckthewebsiteregularlyforupdateson policies, programmes and procedures.

• Give their suggestions/inputs on draftsplaced on Ministry’s website/those circulated to them.

• State representatives should attend theconference with complete information.

Service Audit

The Department is committed to periodical audit of the quality of the services based on stringent benchmarks and standards set, both at the unit and national levels. It is envisaged to hold independent surveys to capture the stakeholder’s perceptions and assessment of the quality of services.

Helpline

For any help please visit Department’s Information and Facilitation Counter (IFC) and the Public RelationOffice,atUdyogBhavan,NewDelhi,(NearGate No.11) Tele No. 011-23063088. Reception of all applications can be obtained from the IFC office.

The Department’s cell for investment Promotion and Infrastructure development provides information, guidance and escort services on investment promotion and infrastructure development.

Printed publications of the Department can be obtained from any outlet of the controller of Publications. Users may visit Department’s website (http://dipp.nic.in) for downloading relevant forms for making applications for IndustrialEntrepreneurs-Memorandum,LetterofIntent, Foreign Collaboration etc.

Grievance Redressal

The Department attaches great importance to redressal of grievances of the stakeholders for the overall promotion of industrial development. User complaints can be sent to us over phone, by mail,faxorpersonalvisit.Thefirstcontactpointis Investor Facilitation Cell. User can approach the GrievanceOfficerintheDepartment(Ms.VandanaKumar, Joint Secretary, Tel: 011-23061714, Email : [email protected]) if the issue is not resolved at the IFC.

Additional Secretary and Financial Adviser in the Ministry of Commerce and industry has been appointed as the Business Ombudsman to look into the complaints relating to delays in clearance of projects/approvals.

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1. Grant of ad-hoc permission for manufacture and sale of cement without standard mark for a maximum period of 150 days.

2. Certificationofessentiality for importof capital goods required for initial setting up of new projects of expansion of the existing projects.

3. Furnishing of comments of DIPP to the Ministry of Coal for long term coal linkage and allocation of coal blocks for cement sector.

4. Release of Plan and Non-Plan funds to National Council for Cement and Building Materials (NCCBM) and Development Council for Cement Industry (DCCI).

5. Inclusion of Paper Mill in Schedule-I of Newsprint Control Order 2004.

6. Furnishing of comments of the DIPP to the Ministry of Coal for allocation of coal for paper.

7. Release of Plan and Non-plan funds to Central Pulp and Paper Research Institute (CPPRI) and Development Council for Pulp and Paper Association of India (DCPPA).

8. Release of Plan funds to Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) for Project Development.

9. Essentiality Certificate for projects inExplosives sector.

10. Issuing Industrial License forcompulsory licensable items.

11. Issuing Acknowledgement for the Industrial Entrepreneur Memorandum (IEM).

12. Recognition of Competent Authority (CA), Inspecting Authority (IA), Wellknown Material Testing Laboratory, Well-known Steel maker,Well-Known Foundry/Forge-shops, Well-Known Tube/Pipe Maker And Well-KnownRemnantLifeAssessmentOrganisation under the Indian Boiler Regulations, 1950.

13. Approval under Regulation 393 (b) of the Indian Boiler Regulations, 1950.

14. Miscellaneous approvals/clarifica-tions under the Boilers Act, 1923/Indian Boiler Regulations, 1950.

15. Disbursal of Plan funds to Implementing Authorities.

16. In principle approval and release of funds to IIUS/MIIUS Projects.

17. Preparation and scrutiny of Bills to make payment to private firm/suppliers.

18. Furnishing of comments on FIPB cases forwarded by DEA (FIPB Division).

19. Essentiality Certificate for projects inConsumer Industry.

20. Bulletin Board Services for Investor.

21. Essentially Certificate for projects inLightEngineeringIndustry.

22. Release of Wholesale Price Index.

23. Approval of Foreign visit of Ministers andofficersof theStateGovernmentconcerning industry sector.

Table 20.1List of Some Services/ Transaction included in the Citizen's Charter

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Useful Addresses

Sl No.

Name and Designation Address Tel. No & e-mail

1 Ms. R. Mythili

Under Secretary and Public RelationsOfficer

Department of Industrial Policy & Promotion, Entrepreneurship Assistance Unit, Near Gate No. 11, Udyog Bhavan, New Delhi.

Tel: 011-23063088

EPABX: 011-23063321

Extn. 2237 [email protected]

2 Ms. Vandana Kumar,

Grievance Officer and JointSecretary

Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Room No. 126A, Udyog Bhavan, New Delhi.

Tel: 011-23061714

Fax: 011-23063656

[email protected]

3 Dr. Subhash Chandra Pandey

Business Ombudsman and Additional Secretary & Financial Adviser

Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, Room No. 244, Udyog Bhavan, New Delhi.

Tel: 011-23062756

Fax: 011-23062101

Right to Information (RTI)

The Department of Industrial Policy & Promotion has implemented the Right to Information Act, 2005.

The proactive disclosure scheme and other guidelines issued by the Department of Personnel and Training (DOPT) are being implemented scrupulously by this Department. All the 28 items required to be published proactively in terms of Section 4(i) to (xii) of the RTI Act have been placed on the website of the Department at http://dipp.nic.in.

To facilitate the citizens who come in person to submit RTI applications/appeals, an RTI counter at Gate No.11, Udyog Bhavan, New Delhi has been set up to receive applications from them. Disposal of all the applications/appeals received under RTI Act, 2005 in the Department is being centrally monitored by RTI Section.

All the Director/Deputy Secretary level officershave been designated as Central Public Information Officers to provide information tothe citizens. Further, Shri Rajiv Aggarwal, Joint Secretary has been designated as the Appellate Authority to entertain appeals and to pass appropriate orders thereon.

During the current financial year 2016-17 (upto December, 2016), total 1000 RTI applications were received in this Department out of which 05 No. of applications were transferred to concerned Public Authorities in other Ministries/Departments. Total 16 Appeals were received in the Department. All the applications and appealsweredisposedoffwithinthestipulatedtime-frame. Quarterly Reports in respect of RTI Act are being sent to Central Information Commission (CIC) regularly.

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Organizational Chart of Department of Industrial Policy and Promotion

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Appendix

APPENDIX -II

Offices/Organisations under the Department of Industrial Policy and Promotion, New Delhi

Attached Offices

1. Office of the Economic Adviser, New Delhi

2. The Tariff Commission, New Delhi

3. Office of the Salt Commissioner, Jaipur

Subordinate Offices

1. OfficeoftheControllerGeneralofPatents,DesignsandTradeMarks,Mumbai

2. Petroleum & Explosives Safety Organization, Nagpur

Other Organizations / Grantee Institutions

1. Central Manufacturing Technology Institute, Bengaluru

2. Central Pulp & Paper Research Institute, Saharanpur

3. DelhiMumbaiIndustrialDevelopmentCorporationLtd.,NewDelhi

4. Indian Rubber Manufacturers’ Research Association, Thane

5. Intellectual Property Appellate Board (IPAB), Chennai

6. National Council for Cement & Building Material, Ballabgarh

7. National Institute of Design, Ahmadabad

8. National Productivity Council, New Delhi

9. Quality Council of India, New Delhi

210210210210

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Appendix-IIIYEARWISE AND STATEWISE BREAKUP OF INDUSTRIAL ENTREPRENURS MEMORANDUM FILED

Name of the State 2011 2012 2013 2014 2016 Upto Dec 2016

Num-bers Filed

Pro-posed Invest-ment

(Rs.Cr)

Num-bers Filed

Proposed Invest-ment

(Rs.Cr)

Num-bers Filed

Pro-posed In-vestment (Rs.Cr)

Num-bers Filed


(Rs.Cr)

Num-bers Filed

Pro-posed In-vestment (Rs.Cr)

Num-bers Filed


Andaman & Nicobar 0 0 1 31 0 0 0 0 0 0 1 47Andhra Pradesh 260 91859 175 59392 128 17631 121 21510 133 21197 164 34464Arunachal Pradesh 7 1027 3 41 1 353 2 41 0 0 0 0

Assam 32 1231 39 2845 37 1587 33 1882 13 1058 55 3664

Bihar 31 44026 20 2374 33 2315 18 1449 23 1247 19 5794

Chandigarh 1 10 1 22 0 0 0 0 3 321 0 0

Chhattisgarh 114 102266 78 79575 57 34143 37 162584 117 36511 50 11853Dadra & Nagar Haveli 55 3885 31 4014 30 1605 24 683 20 590 36 1766

Daman & Diu 21 665 5 26 14 332 5 68 5 203 13 525

Delhi 12 68 6 83 5 83 16 588 19 275 5 72

Goa 23 563 21 494 25 673 21 16448 8 8 12 1165

Gujarat 541 141116 472 126201 352 94228 352 39597 306 63823 404 53621

Haryana 112 8660 115 5894 106 4172 65 2635 75 2791 58 2096Himachal Pradesh 36 1533 48 4798 13 449 26 969 11 537 9 803Jammu & Kashmir 21 1523 26 1529 11 450 12 297 11 663 8 979

Jharkhand 25 3198 32 10315 17 7739 7 368 5 153 14 1326

Karnataka 214 94082 169 47967 101 10019 83 21858 93 31544 283 154131

Kerala 12 3984 6 124 4 14264 13 3276 7 5104 0 0Lakshad-weep 0 0 0 0 0 0 0 0 0 0 0 0Madhya Pradesh 191 104527 126 10563 114 88715 96 12089 99 12971 84 16020

Maharashtra 973 133596 533 70181 451 53402 277 40367 338 32919 376 38084

Manipur 1 13 1 68 2 64 3 78 0 0 0 0

Meghalaya 6 2574 3 1807 5 159 1 58 2 30 2 114

Mizoram 1 27 0 0 1 15 1 33 0 0 0 0

Nagaland 1 38 0 0 0 0 1 26 0 0 0 0

Orissa 117 321032 57 63604 40 98723 27 28219 26 24524 36 22507

Puducherry 8 44 8 146 5 186 4 146 7 598 4 12

Punjab 112 13571 80 4477 49 2491 61 3624 36 1986 49 5596

Rajasthan 165 23488 163 18218 150 36948 77 7332 74 6577 97 5613

Sikkim 15 727 9 195 12 528 9 208 13 553 15 952

Tamil Nadu 255 73298 197 21253 167 27380 94 14596 104 19574 105 6007

Telengana 128 11967 131 10947 131 7718 109 6200 130 9676 133 21527

Tripura 3 71 3 129 3 60 2 16 0 0 0 0Uttar Pradesh 163 43672 134 13270 157 13330 106 12344 126 11248 120 13716

Uttarakhand 77 6854 42 1378 57 2012 38 1976 38 3061 42 2764

West Bengal 135 302515 91 5869 87 8054 60 2774 67 17615 62 5204

Total 4296 1731731 3868 1537710 2826 567830 2365 529828 1801 404339 1909 307357

211211211211

Appendix

Appendix IV

SECTORWISE AND YEARWISE LISTS OF IEMs FILED DURING LAST FIVE YEARS

2011 2012 2013 2014 2015 2016 (upto Dec)

SCHEDULED INDUSTRY Nos


NosProposed

Invest-ment

NosProposed

Invest-ment

NosProposed

Invest-ment

NosProposed

Invest-ment

Num-bers Filed

Proposed Investment

01 Metallurgical Indus-tries 532 268895 346 141983 240 106893 99 27239 63 14342 62 49436

02 Fuels 24 8575 11 1804 12 17868 8 1870 4 7849 7 880

03 Boilers&SteamGen.Plants 1 20 2 102 1 15 1 26 1 99 4 192

04 Prime Movers 184 9990 140 14696 94 7614 34 1625 7 901 15 3049

05 Electrical Equip-ments 348 778500 172 144210 122 82682 147 34873 259 64797 346 141870

06 Telecommunications 15 360 7 49 10 1049 2 26 19 1248 21 1913

07 Transportation Industry 97 9695 70 24591 58 7602 56 6109 66 5775 71 28204

08 Industrial Machinery 84 4780 51 2232 57 5646 40 3472 30 1586 35 1579

09 Machine Tools 4 1035 4 46 5 226 1 21 7 811 8 406

10 Agricultural Machin-ery 27 3136 8 654 9 727 4 673 5 274 2 141

11 Earth Moving Ma-chinery 9 779 5 265 6 634 3 601 4 101 1 59

12 Misc.Mechanical&Engg.Ind 186 15881 163 7976 130 4087 94 3881 100 7669 123 6782

13 Comm/Office/Hhold-equpts 3 132 2 11 4 123 12 949 52 6477 33 4081

14 Medical and Surgical equip 12 195 2 74 8 710 3 131 9 200 14 224

15 Industrial Instruments 0 0 2 50 1 21 3 95 3 458 5 225

16 Scientific Instruments 5 222 5 174 4 140 0 0 8 798 3 36

17 Math,Survey,Drawing Inst. 0 0 0 0 0 0 0 0 1 45 1 42

18 Fertilizers 45 9046 51 10443 33 22494 14 81754 12 1961 12 6331

19 Chemicals(Except Fertilizers) 272 37737 191 74270 147 57873 124 52874 114 23269 138 33967

20 Photographic raw film/Paper 0 0 0 0 0 0 2 16 1 16 0 0

21 Dye Stuffs 5 1177 2 36 1 102 3 42 6 221 6 262

22 Drugs and Pharma-ceuticals 133 6741 105 8291 105 6900 86 3942 79 6660 103 13952

23 Textiles 370 26174 327 14839 302 81667 260 16634 251 15080 287 21669

24 Paper and Pulp 64 5315 67 7428 52 3903 48 2175 56 2779 50 3208

25 Sugar 126 16735 62 5618 28 2446 38 3672 35 6150 22 4106

26 Fermentation Indus-tries 112 6644 48 4365 52 4916 28 2229 48 4249 68 5162

27 Food Processing Industry 147 10638 143 7022 161 10049 169 10223 199 17301 203 17233

212212212212

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Appendix IV

SECTORWISE AND YEARWISE LISTS OF IEMs FILED DURING LAST FIVE YEARS

2011 2012 2013 2014 2015 2016 (upto Dec)

SCHEDULED INDUSTRY Nos


NosProposed

Invest-ment

NosProposed

Invest-ment

NosProposed

Invest-ment

NosProposed

Invest-ment

Num-bers Filed


28 Vegetable Oil &Vanaspathi 78 3475 36 1064 27 3381 23 534 29 746 38 3026

29 Soaps, Cosmetics and Toiletries 21 2380 19 2106 16 1593 10 1895 4 359 28 3044

30 Rubber Goods 41 8292 28 1987 33 7191 14 4790 26 5609 13 1353

31 Leather 10 474 4 26 8 550 6 136 1 43 4 19

32 Glue and Gelatin 1 16 0 0 1 55 4 919 1 50 4 70

33 Glass 26 5610 11 211 10 579 5 206 13 1075 6 1880

34 Ceramics 53 2115 21 1628 14 328 35 1517 42 2407 84 4280

35 Cement and Gypsum 135 73681 94 38268 65 32242 44 19754 54 10478 62 15558

36 Timber Products 3 488 4 469 2 1182 8 760 5 151 12 1345

37 Defence Industries 0 0 0 0 0 0 1 61 74 3423 1 87

38 Misc.Industry 44 3503 32 487 25 324 44 1321 110 10028 158 9407

Others 651 215274 591 50355 522 56016 328 117294 200 85546 206 25344

Total 3868 1537710 2826 567830 2365 529828 1801 404339 1998 311031 2256 410422

Proposed investment (Rs.Cr)

213213213213

Appendix

Appendix –V STATEWISE BREAK UP OF IEMs IMPLEMENTED (During the last five years)

BASED ON PART B OF IEM FORM FILED BY ENTREPRENEURSName of the

State/UTs 2011 2012 2013 2014 2015 Dec-16

NoInv

(Rs.Cr) NoInv

(Rs.Cr) NoInv

(Rs.Cr) NoInv

(Rs.Cr) NoInv

(Rs.Cr) NoPropposed-Inv (Rs.Cr))

Andaman & Nicobar 0 0 0 0 0 0 0 0 0 0 0 0

Andhra Pradesh 60 2266 58 7150 41 5021 29 2804 51 4542 79 11395

Arunachal Pradesh 0 0 1 33 0 0 1 22 0 0 0 0

Assam 13 63 14 290 16 1012 12 470 13 578 14 1137

Bihar 2 0 9 471 7 869 4 420 9 610 7 959

Chandigarh 0 0 0 0 0 0 0 0 0 0 0 0

Chhattisgarh 0 0 0 0 1 31 0 0 5 2037 5 3993

Dadra & Nagar Haveli 6 294 3 42 2 69 4 96 4 226 4 131

Daman & Diu 1 0 1 0 1 3 2 41 3 88 1 25

Delhi 1 0 0 0 0 0 0 0 0 0 0 0

Goa 7 21 5 228 2 37 1 2 1 14 2 52

Gujarat 50 2148 153 49616 83 15478 78 40954 80 5991 101 8267

Haryana 7 394 18 1289 15 889 10 977 11 901 7 481

Himachal Pradesh 3 42 7 609 3 27 1 112 8 242 2 73

Jammu &Kashmir 0 0 0 0 0 0 0 0 1 648 0 0

Jharkhand 5 424 3 406 0 0 9 1002 1 345 2 86

Karnataka 22 890 26 1672 24 4912 17 2361 29 13780 32 9162

Kerala 0 0 0 0 0 0 1 37 3 82 0 0

Lakshadweep 0 0 0 0 0 0 0 0 0 0 0 0

Madhya Pradesh 11 268 14 2157 7 1519 13 2625 30 17277 48 2823

Maharashtra 120 4671 87 7509 96 30266 48 6024 69 18854 67 40588

Manipur 0 0 0 0 0 0 0 0 0 0 1 30

Meghalaya 2 51 3 401 7 1100 3 47 3 314 2 544

Mizoram 0 0 1 28 0 0 0 0 0 0 0 0

Nagaland 0 0 0 0 0 0 0 0 0 0 0 0

Orissa 5 163 2 105 4 652 1 7521 2 538 1 769

Puducherry 2 5 0 0 0 0 0 0 1 12 0 0

Punjab 2 0 6 1042 1 38 2 162 4 340 9 716

Rajasthan 14 158 18 2017 30 3173 13 1544 24 3918 32 7277

Sikkim 3 0 6 142 5 370 6 504 5 393 7 382

Tamil Nadu 28 235 10 524 12 2292 7 2500 6 501 20 4793

Telengana 26 173 29 1261 35 3365 8 1137 7 494 18 2405

Tripura 0 0 0 0 1 0 1 17 3 47 0 0

Uttar Pradesh 20 82 23 1450 22 4111 9 872 17 1791 16 522

Uttarakhand 31 197 52 2752 22 781 28 2749 23 2426 14 494

West Bengal 33 325 25 962 44 2482 32 3747 26 983 34 3433

Total 474 12870 574 82156 481 78497 340 78747 439 77972 525 100537

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Appendix-VI STATEWISE INVESTMENT INTENTIONS(IEMs +LOIs+DILs)

Plan Period wise

S.No Name of the StateXIth Plan Period

(Apr ‘07-Mar ‘12)XII th Plan Period (Apr’12 to Dec’16)

Numbers Prop. Inv Numbers Prop. Inv

1 Andaman & Nicobar Islands 2 136 1 31

2 Andhra Pradesh 1213 523020 966 140479

3 Arunachal Pradesh 27 3403 3 394

4 Assam 169 21152 170 10916

5 Bihar 166 139676 106 121187

6 Chandigarh 5 83 4 343

7 Chhattisgarh 1179 906386 306 304513

8 Dadra & N Haveli 263 21566 135 8316

9 Daman & Diu 190 4510 41 1154

10 Delhi 73 628 52 1105

11 Goa 163 5775 87 18805

12 Gujarat 2178 653978 1780 360714

13 Haryana 582 35044 414 16045

14 Himachal Pradesh 214 19843 88 3922

15 Jammu & Kashmir 143 6694 61 3677

16 Jharkhand 279 321358 71 19630

17 Karnataka 1087 538170 711 251645

18 Kerala 60 4621 27 22768

19 Lakshadweep 0 0 0 0

20 Madhya Pradesh 1074 594378 503 139986

21 Maharashtra 3586 537258 1855 223415

22 Manipur 2 13 6 210

23 Meghalaya 62 10768 13 2168

24 Mizoram 1 27 2 48

25 Nagaland 3 119 1 26

26 Orissa 662 1185876 170 188051

27 Puducherry 72 3007 27 1022

28 Punjab 492 45154 255 16888

29 Rajasthan 597 108003 508 66347

30 Sikkim 70 3011 56 2411

31 Tamil Nadu 1394 233509 625 82629

32 Telengana 762 77890 259 31103

33 Tripura 12 396 102 6395

34 Uttar Pradesh 895 93768 527 50500

35 Uttarakhand 712 36844 258 20990

36 West Bengal 949 511894 323 22988

37 Locations in More than one State 3 13 61 17228

Total 19341 6647971 10574 2158049

Proposed Investment ` Cr

Note: Investment in terms of Industrial Entrepreneur Memoranda (IEMs) filed by non-MSME category

industrial undertakings; Letters of Intent (LOIs) and Direct Industrial Licences issued.

215215215215

Appendix

Appendix -VII

SECTORWISE INVESTMENT INTENTIONS(IEMs +LOIs+DILs)

Plan Periodwise

Name of the Scheduled Industry XIth Plan Period (Apr'07 to Mar'12)

XII th Plan Period (Apr-12 to Dec '16)

Numbers Prop. Inv Numbers Prop. Inv

1.Mettallurgical Industries 3184 1467305 723 2959122. Fuels 200 222124 37 287373.Boilers and Steam Gen. Plants 10 1833 9 4344. Prime Movers 641 36006 251 247325.Electrical Equipments 2087 3001635 988 4161956. Telecommunications 113 8729 57 42787.Transportation 384 73674 300 613358.Industrial Machinery 369 19838 202 141669.Machine Tools 34 2239 24 151010.Agricultural Machinery 75 5184 23 183511.Earth Moving Machinery 29 1838 17 152912. Misc. Mechanical Industry 850 56856 572 2902313. Comm.H.HoldEquipments 28 1994 103 1164114. Medical and Surgical Equpts 39 1767 36 133915. Industrial Instruments 7 93 14 84916.ScientificInstruments 41 983 18 112617.Math,Survery&Drawing Equpts 0 0 2 8718.Fertilizers 186 20643 103 11770219.Chemical Other than Fertilizers 1458 270488 673 23369720.PhotographicRawfilms 0 0 9 29421.DyeStuffs 28 2277 18 66322.Drugs & Pharmaceuticals 586 32709 456 3900423.Textiles 1866 89766 1346 14768424.Paper & Paper products 375 27691 252 1862425.Sugar 471 47369 169 1976326.Fermantation Industries 497 29044 225 1852027.Food Processing Industries 730 32970 838 6025128.Vanaspathi,Veg Oil &Fats 471 15336 143 843729.Soaps,Cosmetics &Toileteries 120 8860 71 823530.Rubber Goods 179 21008 105 2035131.LeatherGoods 52 1081 22 77432. Glue &Gelatin 10 89 10 109433.Glass 112 11230 38 376734.Ceramics 220 9291 193 1007235.Cement & Gypsum 837 425105 303 10296436.Timber Products 21 1433 31 390737.Defence Industries 155 8309 151 807738.Miscellaneous Industries 190 6284 363 21408Others 2686 684890 1679 418033Total 19341 6647971 10574 2158049

Note: Proposed Investment ` Cr

Note:InvestmentintermsofIndustrialEntrepreneurMemoranda(IEMs)filedbynon-MSMEcategoryindustrialundertakings;LettersofIntent(LOIs)andDirectIndustrialLicencesissued.

216216216216

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Appendix-VIII Financial and Physical Progress of IIUS/MIIUS Projects as on 31.12.2016

S N Name of the Industrial Cluster State Date

Approval

Total Project

Cost (` Cr.)

Approved GOI grant

(` Cr.)

Released GOI grant

(` Cr.)

Progess Financial

(` Cr.)

Progress Physical (%)

Project Approval

Period

1 Pharma Cluster, Hyderabad Telangana 04.11.2004 66.16 49.62 48.13 62.08 Complete

10th Plan

2 Chemical Cluster, Ahmedabad Gujarat 14.03.2005 71.35 41.39 40.14 69.41 Complete

3 Chemical Cluster, Ankleshwar Gujarat 02.07.2004 152.83 50.00 49.47 161.40 Complete

4 Chemical Cluster, Vapi Gujarat 25.03.2004 54.31 40.49 39.27 71.25 Complete

5 Foundry Cluster, Belgam Karnataka 28.10.2004 24.78 18.58 18.02 24.38 Complete

6 Machine Tools Cluster, Bangalore Karnataka 28.10.2004 135.50 49.12 47.64 149.09 Complete

7 Textile Cluster, Ichalkaranji Maharastra 14.03.2005 65.07 32.70 31.72 67.00 Complete

8 Auto Components Cluster, Pune Maharastra 06.09.2004 59.99 44.99 44.54 63.05 Complete

9 Auto Components Cluster, Pithampur MP 28.10.2004 62.97 47.23 45.81 67.64 Complete

10 Textiles Cluster, Ludhiana, Punjab Punjab 06.09.2004 17.19 12.69 12.30 17.24 Complete

11 Marble Cluster, Kishangarh Rajasthan 28.10.2004 34.72 26.04 26.77 50.17 Complete

12 Auto Components Cluster, Chennai TN 02.07.2004 47.49 27.74 26.90 54.67 Complete

13Cereals Pulses & Staples Cluster, Madurai

TN 06.09.2004 39.96 29.97 29.07 40.03 Complete

14 Foundry/Pump/Motor Cluster, Coimbatore TN 14.03.2005 55.30 39.39 38.99 55.57 Complete

15 Leather Cluster, Ambur TN 14.03.2005 67.33 43.93 43.49 96.34 Complete

16 Textiles Cluster, Tirupur TN 09.03.2004 143.00 50.00 49.50 157.60 Complete

17 Multi Industry Cluster, Haldia WB 04.03.2005 26.28 25.40 34.89 52.76 Complete

18 Iron & Steel Cluster, Raipur Chhatishgarh 04.03.2005 54.86 31.61 30.79 58.33 Complete

19 Metallurgical Cluster, Jajpur Odisha 02.07.2004 80.60 47.00 45.59 88.62 Complete

20 Coir Cluster, Alappuzha Kerala 04.11.2004 56.80 42.60 41.31 54.75 Complete

21 Auto Components Cluster, Vijaywada AP 02.07.2004 30.67 23.01 22.31 30.66 Complete

22 Leather Cluster, Kanpur UP 04.03.2005 14.34 9.32 8.83 13.56 Complete

23 Gem &Jewellery Cluster, Surat Gujarat 04.11.2004 61.00 45.61 44.15 45.64 Complete

24 Rubber Cluster, Howrah WB 29.03.2005 41.01 15.71 14.8350 33.11 96.00%

25 Foundry Cluster, Howrah, WB 04.03.2005 95.03 38.68 36.07 57.55 62.00%

Total 10th FYP 1558.54 882.82 870.54

217217217217

Appendix

S N Name of the Industrial Cluster State Date

Approval

Total Project

Cost (` Cr.)

Approved GOI grant

(` Cr.)

Released GOI grant

(` Cr.)

Progess Financial

(` Cr.)

Progress Physical (%)

Project Approval

Period

26 Engineering Cluster, Nashik Maharastra 11.03.2008 67.26 42.87 41.88 56.48 Complete

11th Plan (IIUS)

27Pandhurna Industrial Cluster, Chhindwara

MP 02.02.2009 81.10 43.07 41.77 66.40 95.00%

28 Handloom Cluster, Chanderi MP 11.03.2008 42.66 20.30 18.89 25.95 92.70%

29 Auto Cluster, Adityapur Jharkhand 13.08.2008 65.63 47.79 42.91 41.12 60.00%

30Readymade Garments Cluster, Jabalpur

MP 11.03.2008 55.58 30.67 25.21 39.68 65.00%

Total 11 th FYP 312.23 184.70 170.67

31Plastic, Polymer and Allied Cluster, Balasore

Odisha 26.03.2010 81.90 58.28 49.71 69.80 82.00%

11th Plan (Recast

IIUS)

32

Tiruchirapalli Engineering and Technology Cluster, Tirruchirapalli

TN 01.10.2010 102.81 58.28 51.48 69.80 68.00%

33Marathwara Automobile Cluster, Aurangabad

Maharastra 31.05.2010 81.35 58.20 54.26 76.52 Complete

34 Baddi Infrastructure, Baddi HP 19.11.2010 88.43 59.95 55.04 86.58 Complete

35 Bamboo Technology Park, Guwahati Assam 01.10.2010 62.28 52.63 48.98 52.93 Complete

36

Narol Textiles Infrastructure and Environment Management, Narol

Gujarat 19.11.2010 196.56 58.28 50.32 158.88 96.00%

37 Kolhapur Foundry Cluster Maharastra 31.01.2012 42.63 30.92 27.28 35.17 Complete

Total 11th FYP 655.96 376.54 337.07

218218218218

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Year No of Paras/PA reports on which ATNs have been submitted to PAC after vetting by Audit

Details of the Paras/PA reports on which ATNs are pendingNo. Of ATNs not sent by the Ministry even for the first time

No. of ATNs sent but returned with observations and Audit is awaiting their resubmission by the Ministry

No. Of ATNs which have been finally vetted by audit but have not been submitted by the ministry to PAC

2016-17 0 0 0 2

Appendix-IX

Details of Public Accounts Committee (PAC) -CAG Para

Documents

Annual Report 2016-17 - MoCI | GoI · Annual Report 2016-17 ... From Automobiles to Agro products From hArdwAre to soFtwAre From sAtellites to submArines From televisions to telecom