Annual Report

2016-17

Government of India
Ministry 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

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 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 & Subordinate Offices and other Organisations 114

16. Representation of Scheduled Castes/Scheduled Tribes/OBCs/ 195

Ex-servicemen and Physically Disabled persons in Services

17. Women Welfare Activities 196

18. Implementation of Official Language Policy of the Union 197

19. Vigilance Activities 201

20. Citizen's Charter 203

21. Right to Information 207

Appendices I-IX 208


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 administered
by 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 the Concurrent List.
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 and
other support.
(ii) Facilitating foreign investment in industries
and coordinating with different agencies
for fastracking of investment approvals.
(iii) Facilitating development of industries
in North East and other special category
states.
Chapter 1
Role and Functions
(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, and Foreign Direct Investment inflows
into the country.
The key functions of DIPP are:
(i) Formulation and implementation of
industrial policy and administration of
Industries (Development & Regulation)
Act, 1951.
(ii) Monitoring and stimulation of industrial
growth in general as also the industries
specifically assigned to DIPP as per
Allocation of Business Rules, 1961.
iii) Promotion of industrial development in
North East and special category States of
J&K, Himachal Pradesh and Uttarakhand
through appropriate incentives framework.
iv) Formulation of Foreign Direct Investment
Policy and promotion and facilitation
of direct foreign and nonresident
investments.
1
 v) Formulation of policies relating to
Intellectual Property Rights in the field of
Patents, Trade Marks, Industrial Design
Role and Functions
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/subordinate
offices and statutory organizations:
a) The Patents Act, 1970, the Trade Marks
Act , 1999, the Geographical Indications of
Goods (Registration and Protection) Act,
1999, Designs Act, 2000, Copyright Act,
1957 ( as amended in 2012) and the Semi-
conductor Integrated Circuits Layout -
Design Act, 2000. The associated Rules
are administered through the Office of the
Controller General of Patents, Designs and
Trade Marks (CGPDTM). The Intellectual
Property Appellate Board provided under
the Trade Marks Act, 1999, has 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 Salt
Commissioner, Jaipur.
2
d) The Boilers Act, 1923, is administered
through the Indian Boiler Regulations,
1950, framed by the Central Boilers
Board, which is a statutory body under
the said Act. Enforcement of this Act is
the responsibility of both the State and
Union governments since the subject
“Boiler” is listed in the concurrent list of
the Constitution of India.
Organization of DIPP
The Organization Chart of the Department of
Industrial Policy and Promotion is at Appendix-I
while the list of attached and subordinate offices
and other organizations under the Department is
at Appendix-II.
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 allocated
to them, this department is responsible for the
overall Industrial Policy. The Statement of Industrial
Policy 1991, tabled in Parliament as a Resolution,
forms the basis of the subsequent steps taken
by the Government under the Policy to liberalize
and promote industries over the years, including
the Foreign Direct Investment (FDI) Policy and
the specific National Manufacturing Policy (NMP)
announced in 2011.
National Manufacturing Policy
In order to bring about a quantitative and
qualitative change and to give necessary impetus
to the manufacturing sector, the Department
has notified the National Manufacturing Policy
(NMP) with the objective of enhancing the share
of manufacturing in GDP to 25% and creating 100
million jobs over a decade or so. The policy is based
on the principle of industrial growth in partnership
with the States. The Central Government will
create the enabling policy frame work, provide
incentives for infrastructure development on a
Public Private Partnership (PPP) basis through
appropriate financing instruments, and State
Governments 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;
clean and energy efficient technology; necessary
social 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
granted final approval.
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
specific to acquisition and development of clean
and 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
Role and Functions
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. Significant changes have been made in
the FDI policy regime in recent times, to ensure
that India remains an increasingly attractive
investment destination. The Department plays an
active role in the liberalization and rationalization
of the FDI policy. Towards this end, it has been
constructively engaged in extensive stakeholder
consultations on various aspects of the FDI policy.
Specific Industries Administered by DIPP
The Department monitors industrial growth and
production in general and in select industrial
sectors such as leather, cement, paper 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, the
Department administers the Indian Leather
Development Programme (ILDP). The Scheme
aims 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.
3
 Investment Promotion and International
Cooperation
Role and Functions
The Department plays an active role in
investment promotion and facilitation through
dissemination of information on the investment
climate and opportunities in India and by advising
prospective investors about investment policies
and procedures and opportunities. International
co-operation for industrial partnerships is
solicited through both bilateral and multilateral
arrangements. It also coordinates with apex
industry associations like Federation of Indian
Chambers of Commerce and Industry (FICCI).
Confederation of Indian Industry(CII), the
Associated Chambers of Commerce and Industry
(ASSOCHAM), etc; in their activities relating to
promotion of industrial cooperation, both through
bilateral and multilateral initiatives intended to
stimulate the inflow of foreign direct investment
into India.
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 to make governance more efficient and
effective. States too have been brought on board
in the process to expand the coverage of these
efforts. DIPP has been closely working with the
State 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.
4
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
directly affecting businesses and a nation’s rank is
based on the average of 10 indicators viz. starting
a business, dealing with construction permits,
getting electricity, registering property, getting
credit, protecting minority investors, paying taxes,
trading across 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 of
requirements 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) between
Department of Industrial Policy & Promotion
(DIPP), Ministry of Commerce and Industry,
Government of India, Federation of Indian
Chambers of Commerce and Industry (FICCI)
and various State Governments. Invest India
is responsible for promoting and facilitating
investments to India. The shareholding is 51% of
FICCI and 49% of DIPP. Subsequently DIPP will
dilute its equity to include all State Governments.
Already seven states have taken up shares in
Invest India.
Invest India shall act as a first reference point for
investors. Invest India shall also be a facilitator
and partner offering handholding services to
the 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 of
the 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
Role and Functions
India Action Plan.
The Startup India Action Plan consists of 19
action items spanning across areas such as
“Simplification and handholding”, “Funding
support 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 of much needed credit to
the Startups which may run into several
thousands of crores.
5
 3. Relaxed Norms in Public Procurement for
Startups
Role and Functions
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 procurement
norms 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 get
income 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 Startup
must get a Certificate of Eligibility from
the 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
a financial year) arising out of transfer of
long term capital asset invested in a fund
notified by Central Government.
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.
6
5. Legal Support and Fast-tracking Patent
Examination at Lower Costs
A scheme for Startups IPR Protection (SIPP) for
facilitating fast track filing of Patents, Trademarks
and Designs by Startups has been introduced.
The scheme provides for expedited examination
of patents filed by Startups. This will reduce the
time taken in getting patents. The fee for filing of
patents 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. The
facilitators 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) has issued guidelines to State Governments
whereby Startups shall be allowed to self-certify
compliance in respect of 6 Labour laws. These
shall be effective after concurrence of States/UTs.
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 and
Abolition) Act, 1970
• The Employees’ Provident Funds and
Miscellaneous Provisions Act, 1952
• The Employees’ State Insurance Act, 1948
So far 9 States have confirmed compliance to
the advisory issued by Ministry of Labour and
Employment (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
Role and Functions
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, the
Patents Act, 1970, the Designs Act, 2000, the
Trade Marks Act, 1999, Geographical Indications
of Goods (Registration & Protection) Act, 1999,
7
 The Copyright Act, 1957(as amended in 2012)
and the Semi-conductor Integrated Circuits
Layout-Design Act, 2000 through the Office of
Role and Functions
Controller General of Patents, Designs & Trade
Marks (CGPDTM), a subordinate office of this
Department. It also administers establishment
matters in respect of the Intellectual Property
Appellate Board (IPAB).
DIPP undertakes bilateral and multilateral
cooperation activities in respect of Intellectual
Property Right matters on behalf of the
government. It is the nodal department for all
matters relating to the World Intellectual Property
Organization(WIPO).
Productivity and Quality
DIPP is the nodal department for the promotion
of productivity and quality in the industrial
sector. National Productivity Council, New Delhi,
an autonomous body under this Department,
undertakes programmes of technical cooperation
with the Asian Productivity Organization(APO),
Tokyo by sourcing experts to advise on
productivity related projects and by deputing
officials from the private and public sector to
programmes conducted by 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
22000 Series), Product certification and inspection
bodies through the accreditation services provided
by National Accreditation Board for Certification
Bodies (NABCB). Besides NABCB, there are three
other boards viz National Accreditation Board
for Education & Training (NABET); National
Accreditation Board for Hospitals and Healthcare
8
Providers (NABH); and National Board for Quality
Promotion(NBQP) which provide accreditation
certification on education, health and quality
promotion respectively.
UNIDO Activities
The department is the nodal Department for all
matters related to UNIDO operations in India.
UNIDO is a specialized agency of the United
Nations for industrial activities within the United
Nations system.
India has been an active member of the
organization since its inception. UNIDO has
established its presence in India by means of
following centers/offices with different mandates
viz. (i) UNIDO Regional Office (URO) which is
headed by UNIDO Representative (UR) to India
and Asian region and (ii) International Center for
Inclusive and Sustainable Industrial Development
(IC-ISID), New Delhi.
The UNIDO Regional Office for South Asia, set up
in New Delhi on 1st January, 2000, covers seven
countries – India, Bangladesh, Sri Lanka, Nepal,
Bhutan, Maldives and Afghanistan – and acts as
a focal point to mobilize knowledge, information
and technology for the region.
The Country Program of Cooperation between 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
UNIDO’s post-2015 development agenda .i.e. of Rs. 186.74 crore has been released to 22
Inclusive and Sustainable Industrial Development projects as on 22.12.2016 under MIIUS.

Role and Functions

aims to bring best practices and new improved
Summary of IIUS Projects: 37 projects have
manufacturing technology to Indian Industry
been approved in the 10th and 11th Five Year
and share India’s experience in cluster based
Plan Periods under IIUS and these projects have
development within the framework of South-
been provided central assistance of Rs.1400.58
South Cooperation. DIPP has undertaken 5 core
crore (up to 22.12.2016), out of sanctioned
projects under IC-ISID related to Leather, Pulp &
central grant of Rs.1526.00 crore. Out of these
Paper, Cement, Bicycle and Cluster Development.
37 projects, 28 have been completed. One project
Programmes for Industrial Infrastructure namely Bamboo Technology Park, Guwahati has
Development- Modified Industrial Infra- been completed in October, 2016 and three
structure Upgradation Scheme (MIIUS) more projects are likely to be completed within
the financial year 2016-17. In the year 2016-
Industrial Infrastructure Upgradation Scheme
17, Rs.106.88 crore (up to 22.12.2016) has been
(IIUS) was launched in 2003 with the objective of
disbursed out of an allocation of Rs.152.00 crore.
enhancing industrial competitiveness of domestic
industry by providing quality infrastructure Delhi Mumbai Industrial Corridor (DMIC)
through public private partnership in selected Project
functional clusters/locations which have potential
The DMIC project was launched in pursuance of
to become globally competitive. The Scheme
an MOU signed between the Government of India
was recast in February, 2009, on the basis of
and the Government of Japan in December 2006.
an independent evaluation to strengthen the
The Delhi-Mumbai Industrial Corridor is being
implementation process. A modified version
developed on either side, along the alignment of
of IIUS viz ‘Modified Industrial Infrastructure
the 1504 km long Western Dedicated Rail Freight
Upgradation Scheme (MIIUS)’ was notified in July
Corridor between Dadri (UP) and Jawaharlal Nehru
2013. Under MIIUS, projects have been undertaken
Port Trust (JNPT), Navi Mumbai. The project seeks
to upgrade infrastructure in existing Industrial
to create a strong economic base with a globally
Parks/ Estates/ Areas. Greenfield Projects have
competitive environment and state-of-the-art
also been undertaken in backward areas and
infrastructure to activate local commerce, enhance
North Eastern Region (NER). Projects are being
investments and attain sustainable development.
implemented by the State Implementing Agency
This covers the six States namely Uttar Pradesh,
(SIA) of the State Government. Central Grant upto
Haryana, Madhya Pradesh, Rajasthan, Gujarat and
50% of the project cost with a ceiling of Rs.50.00
Maharashtra. Delhi Mumbai Industrial Corridor
crore is provided under MIIUS with at least 25%
Development Corporation was incorporated
contributions of State Implementing Agency and
in January 2008 as the project implementation
in case of North Eastern States, the central grant
agency and has been restructured with 26% equity
and minimum contribution of the SIA are up to
of the Govt. of Japan. The Japanese Government
80% and 10% respectively. A two stage approval
has also announced their financial support for
mechanism has been retained in the MIIUS. Final
DMIC project to an extent of US $ 4.5 billion in the
approval has been accorded to 24 projects with
first phase for the projects. Initially, eight nodes/
central grant amounting to Rs. 604.71 crore and 6
cities in the six DMIC States have been taken up
projects with central grant of Rs.129.91 crore are
for development.
at ‘in-principle’ approval stage. Central assistance

9
 Perspective planning for the entire DMIC corridor
has been completed and subsequently, the
Role and Functions
master planning and preliminary engineering has
been undertaken for the nodes/cities identified
as part of phase-1 of DMIC corridor i.e. States of
Gujarat, Maharashtra, Madhya Pradesh and Uttar
Pradesh.
The work of Trunk Infrastructure at four identified
locations 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 Industrial
Nodes 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,
10
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 for
development 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) has
engaged 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
the first phase of the study, ADB would focus on
the Vizag- Chennai Section so that a final view on
Vizag- Chennai Industrial Corridor may be taken
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
has since submitted the final report on Conceptual
Development 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 financial
assistance 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
has formulated and notified North East Industrial
and Investment Promotion Policy (NEIIPP),
2007, for the eight states of North East Region
and Transport Subsidy Scheme, 1971, which in
addition to the eight states of North East Region
also covers Himachal Pradesh, Uttarakhand,
Jammu & Kashmir, Darjeeling district of West
Bengal, Andaman & Nicobar Administration
and Lakshadweep Administration. Benefits/
incentives available under different schemes of
North East Industrial and Investment Promotion
Policy (NEIIPP), 2007, include Capital Investment
Role and Functions
Subsidy, Interest Subsidy, Reimbursement of
Insurance, 100% Income Tax Exemption and
Excise Duty Exemption based on value addition
norms specified by the Department of Revenue,
Ministry of Finance.
Transport subsidy, ranging from 50% to 90% is
provided on the transport cost for transportation
of raw material and finished goods to and from
the location of the unit and the designated
rail-head or port as the case may be. Transport
subsidy also covers movement of raw materials/
finished goods from one state to another within
the North Eastern Region. The Transport Subsidy
Scheme, 1971, has been modified and replaced
by Freight Subsidy Scheme, 2013, which has been
notified on 23rd January, 2013.
New Industrial Policy and other concessions for
the State of J&K were introduced by DIPP on
14th June, 2002 for a period of ten years. The
incentives/concessions provided for industrial
development in the State included (i) Central
Capital Investment Subsidy Scheme, 2002; (ii)
Central Interest Subsidy Scheme, 2002; (iii) the
Central Comprehensive Insurance Scheme, 2002.
The package of incentives for the State of J&K has
been extended for a further period of five year
upto 14.06.2017.
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
access to provide a fillip to the private investment
in the state. The scheme which was originally
valid till 6th Jan., 2013, has been extended upto
31st March, 2017.
11
 Monitoring of Industrial Activity, data and industrial production returns. The
Production and Prices Department also compiles and prepares index of
production of 8 core infrastructure industries on a
Role and Functions

DIPP monitors the performance in the industrial

monthly basis. Besides, the Department publishes
sector through collating information on Industrial
the monthly Wholesale Price Index (WPI) which
Entrepreneurs’ Memorandum (IEM), Industrial
forms the basis for official information on
License, Letter of Intent (LOI), Foreign Investment
inflation.

12

Evolution and Development
of Industrial Policy
General Industrial Policy
The Industrial Policy Resolution of 1948 laid the
foundation principles of a mixed economy. It
defined the shape and pattern of industrialization
delineating 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
freedom and flexibility to industry in responding
to market forces and facilitate ease of doing
business.
Chapter 2
Evolution and Development of Industrial Policy
In order to implement the Industrial Policy
Statement of 1991 a Notification No.477(E) dated
25.07.1991 has been issued under the Industries
(D&R) Act, 1951. The Notification has three
Schedules:
Schedule (I)- List of Industries reserved for Public
Sector: Presently, only following, two industries
are reserved exclusively for the public sector:
(a) Atomic Energy (Production, separation or
enrichment of special fissionable materials
and 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)-List of Industries in respect of which
Industrial Licence is compulsory: The list of items
covered under Compulsory Licensing is reviewed
on 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 industries
engaged in manufacturing alcohol meant for
Potable purposes under the total and exclusive
control of States. Consequently, the Department
had vide Gazette Notification no. 2737 (E) dated
11.8.2016 deleted the entries relating Potable
alcohol from Schedule-II. Currently, only following
four industries require an industrial licence:
13
 a) Cigars and cigarettes of tobacco and
manufactured tobacco substitutes;
b) Electronic aerospace and defence
equipment;
Evolution and Development of Industrial Policy
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
Industrial Licensing:
a. Process of applying for Industrial
License (IL) and Industrial Entrepreneur
Memorandum (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 classified
as defence item) will also not require
Industrial Licence from defence angle.
c. Initial validity period of Industrial License
has been increased from 2 years to 3 years.
14
d. Extension of validity of Industrial Licence
increased from 5 years to 7 years.
e. Guidelines have been issued to streamline
the processing of applications for grant of
extension of validity of Industrial Licence.
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 ‘Security Manual for Licensed Defence
Industry’ has been issued. With the issue
of the Security Manual, the requirement
of affidavit from the applicants has been
done away with.
i. Process cleared for issue of Industrial
License for manufacture of Unmanned
Aerial Vehicle (UAV) for defence use
j. Restriction of annual capacity in the
Industrial License for Defence Sector has
been removed.
k. Licensee has been allowed to sell the
defence items to the government
entities under the control of MHA, PSUs,
State Governments and other Defence
Licensee companies without approval of
Department of Defence Production.
l. Mapping of Sector specific FDI policy with
NIC 2008 code has been completed and
Press Note issued.
m. Initial validity of Industrial Licence for
Defence Sector has been increased from
the existing 3 years to 15 years with a
provision of further extension of 3 years.
National Manufacturing Policy
Government of India had announced National
Manufacturing Policy (NMP) in the year 2011
with the objective of enhancing the share of
manufacturing in GDP to 25% and creating 100
million jobs 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 the
investment 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 in
India, 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
Evolution and Development of Industrial Policy
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. Significant changes have been
made in the FDI policy regime in recent times, to
ensure that India remains an increasingly attractive
investment destination. The Department plays an
active role in the liberalization and rationalization
of the FDI policy. Towards this end, it has been
constructively engaged in 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.
15
 Further, Government has allowed 100% FDI under is ISO 9001:2008 certified for maintaining the
automatic route in brownfield airport projects. Quality Policy.
Foreign equity cap of activities of Scheduled Air
(a) Industrial Entrepreneur Memo-
Transport Service/ Domestic Scheduled Passenger
randum (IEM)
Airline has been increased from 49% to 100%,
Evolution and Development of Industrial Policy

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 other
capital is US$ 457.35 billion (April, 2000 –
November, 2016). During the calendar year 2016
(upto November, 2016), FDI equity inflows of US$
43.06 billion have been received. This represents
increase of 24% over the FDI equity inflows of US
$ 34.69 billion received during the corresponding
period.
The FDI equity during the current financial year
2016-17 (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% from
US$ 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
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 Entrepreneur Memorandum
(IEM) with the Secretariat for Industrial Assistance.
As a measure to facilitate ease of doing business,
filing of online IEMs under e-BIZ has been
initiated 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’ of the IEM is required to be filed.
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
filed during the last five years on a year-wise basis
are 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

16
commercial production. The investment reported (c) Industrial Production
in respect of these IEMs is Rs.7,42,920 crore. The
(i) Industrial Performance
Statewise report of implementation of IEMs for
the last five years is at Appendix-V. The Index of Industrial Production (IIP) over the
base of 2004-05, measuring industrial performance
(b) Industrial Investment Intentions

Evolution and Development of Industrial Policy

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. Statewise
and 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 is
being disseminated through this Department’
website for the information of the investors which
leads to transparency and accountability of the
functioning of this division.
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
has been fluctuating over the last few years. The
growth 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-2.1
Annual Growth Rate of Industrial Ptroduction (in per cent)

2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016-17
Period Weight
08 09 10 11 12 13 14 15 16 (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, handbags etc, Wood & wood
products, Publishing, printing & reproduction of
recorded media, Office, accounting & computing
machinery, 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.

17
 Table 2.2
Growth Rates of Production of Manufacturing Sub-Groups (Base: 2004-05=100) (in per cent)
2016-17
2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015-
Code Industry Weight (Apr-
08 09 10 11 12 13 14 15 16
Nov)
Evolution and Development of Industrial Policy

Food products &

15 72.76 12.5 -8.2 -1.4 7.0 15.4 2.9 -1.1 4.8 -6.2 -3.4
beverages
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
Luggage,
19 5.82 5.8 -5.1 1.3 8.1 3.7 7.3 5.2 10.4 -1.4 -7.3
handbags etc.
Wood & wood
20 10.51 17.5 4.9 3.1 -2.2 1.8 -7.1 -2.2 4.4 3.2 -2.0
products
Paper & Paper
21 9.99 1.4 4.8 2.6 8.6 5.0 0.5 -0.1 3.3 2.8 0.8
products
Publishing,
printing &
22 10.78 14.2 1.6 -6.0 11.2 29.6 -5.1 0.3 -4.1 -9.0 -1.9
reproduction of
recorded media
Coke, refined
petroleum
23 67.15 6.2 3.2 -1.3 -0.2 3.5 8.5 5.2 0.8 6.0 8.3
products &
nuclear fuel
Chemicals and
24 100.59 7.2 -2.9 5.0 2.0 -0.4 3.8 8.9 -0.3 3.8 2.6
chemical products
Rubber and
25 20.25 13.4 5.1 17.4 10.6 -0.3 0.2 -2.1 4.5 0.6 3.0
plastic products
Other non-
26 metallic mineral 43.14 9.3 3.3 7.8 4.1 4.8 1.9 1.1 2.5 1.6 2.8
products
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
Fabricated metal
28 30.85 7.8 0.1 10.2 15.3 11.2 -4.7 -7.0 -0.6 1.5 0.6
Products
Machinery and
29 37.63 22.6 -7.6 15.8 29.4 -5.8 -4.7 -4.7 4.0 2.6 8.4
equipment n.e.c.
Office, accounting
30 & computing 3.05 6.0 -9.7 3.8 -5.3 1.6 -13.9 -15.7 -38.0 0.8 -7.1
machinery
Electrical
31 machinery & 19.8 183.5 42.3 -13.5 2.8 -22.2 0.6 14.5 21.1 -11.4 47.3
apparatus
Radio, TV and
32 communication 9.89 93.1 20.3 11.3 12.7 4.3 5.6 -27.3 -54.4 3.7 12.8
equipment
Medical, precision
& optical
33 5.67 6.3 7.5 -15.8 6.8 10.9 -2.0 -5.1 -2.3 -2.2 -0.7
instruments,
watches and clocks
Motor vehicles,
34 40.64 9.5 -8.7 29.8 30.2 10.8 -5.3 -9.6 2.5 7.5 7.6
trailers
Other transport
35 18.25 -2.9 3.8 27.7 23.2 11.9 -0.1 5.9 6.4 1.3 7.3
equipment n.e.c.
36 Furniture 29.97 18.7 7.4 7.1 -7.5 -1.8 -5.1 -13.9 7.4 44.4 -4.4
Source: Central Statistics Office.

18
As per the use-based classification of IIP, the
production 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
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

Evolution and Development of Industrial Policy

2015-16. In April-November, 2016-17, Capital Basic goods and Intermediate goods have been
goods sector declined by 18.9%. After registering positive in the previous few years and during
negative growth in two consecutive years 2013- April-November, 2016-17 (Table-2.3).

Table 2.3: Growth Rate of Use-Based Classification of IIP (in per cent)
2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016-17
Sectors Weight
08 09 10 11 12 13 14 15 16 (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
15.7 7.3 0.0 6.0 7.4 -0.6 1.6 3.1 1.7 2.5 3.4
Goods
Consumer
29.8 17.6 0.9 7.7 8.6 4.4 2.4 -2.8 -3.4 3.0 1.8
Goods
(i) Consumer
8.5 33.1 11.1 17.0 14.2 2.6 2.0 -12.2 -12.6 11.3 6.9
Durable
(ii) Consumer
21.3 10.2 -5.0 1.4 4.3 5.9 2.8 4.8 2.8 -1.8 -1.8
Non-durable
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
growth trend of IIP. During current financial year,
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)

19
 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-2.4
Products showing negative growth during 2016-17 (April-November)
Evolution and Development of Industrial Policy

Use-based
DIPP products
industry groups
Stampings & Forgings, Aluminium wires & extrusions, Aluminium Sheets/Plates, Copper Metal
Basic Goods Cathode, Granites, Aluminium Foils, Molasses, Bagasse, Phosphoric Acid, Ammonia, Glycerine,
Dissolved Acetylene Gas.

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),
Capital Goods
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.

Block Board, Indust. Alcohol(Rectified/Denatured Spirit)., Particle Boards, Polyester Chips,

Printed Circuit Board/Plate, Dyes, Tanned or Chrome Skins and Leathers, Sealed Compressors,
Intermediate Straw And Paper Boards of All Kinds, Hose Pipe, Wood Veneer, Electrical Stamping Lamination,
Goods Guar Gum Splits, Fibre Glass, Newsprint, Plastic Sheets, Fatty Acid, Gelatin, Valve, Rubber
Chemical, Empty Capsules, Rubber Tread, Leather Finishing Chemicals & Auxiliaries, Toughened
Glass, Plastic Bottles, IC Chips & Transistors.

Glazed Tiles /Ceramic Tiles , Pressure Cooker, Marble Tiles/Slabs, Bicycles, Aluminium Utensils,
Consumer
Tyre, Cycle/Rickshaw, Watches, Electric meter of all kinds, Pvc/Plastic Suitcases, Tube, Cycle/
Durables
Rickshaw, Mixers & Grinders, Rubber Flaps, Tyre, Jeep (Incl. SUVs, MUV), Battery Charger.
Antibiotics & It's Preparations, Apparels, Newspapers, Leather Garments, Rice, Pens of All
Kind, Milk, Skimmed, Pasteurised, Biri, Writing & Printing Paper, Vitamins, Cashew Kernels,
Ayurvedic Medicaments, Footwear except leather, Toilet Soap, Synthetic Detergents, Indian
Consumer Non- made Foreign Liquor, Polythene Bags Incl. Hdpe & Ldpe Bags, Fruit Pulp, Milk Powder all kind,
durables Frozen Buffalo/Mutton Meat and edible Offals, Fluorescent Tubes,Chocolate, Ghee, Zarda/
Chewing Tobacco, Safety Matches, Syringes,Sports Goods, Rubber, Leather Bags, Wallets,
Purses, Agarbattis and Dhoop, Mineral Water, Butter, Incandescent Lamp, Leather Gloves,
Bread, Glucose(powder&liquid), Mercury Vapour Lamp, Tooth Powder.
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.

20
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
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. The production of Refinery product and
Electricity each registered more than 5% growth

Evolution and Development of Industrial Policy

production of Coal, Refinery Products, Fertilizers, during April-December, 2016-17. However,
Cement and Electricity registered positive growth the production of Crude Oil and Natural Gas
during this period. In April-December, 2016- registered negative growth during this period.

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

2008- 2009- 2010- 2011- 2012- 2013- 2014- 2015- 2016-17

Sector Weight
09 10 11 12 13 14 15 16 (Apr-Dec)
Coal 4.38 8.0 8.1 -0.2 1.3 4.6 1.3 8.1 4.5 2.0
Crude Oil 5.22 -1.8 0.5 11.9 1.0 -0.6 -0.2 -0.9 -1.4 -3.2
Natural Gas 1.71 1.3 44.6 10.0 -8.9 -14.5 -13.0 -4.9 -4.2 -3.3
Refinery Products 5.94 3.0 -0.4 3.0 3.1 29.0 1.5 0.3 3.7 7.8
Fertilizers 1.25 -3.9 12.7 0.0 0.4 -3.4 1.5 -0.1 12.2 3.4
Steel 6.68 1.9 6.0 13.2 10.3 4.1 11.5 4.7 1.2 8.9
Cement 2.41 7.2 10.5 4.5 6.7 7.7 3.1 5.6 4.9 2.8
Electricity 10.32 2.7 6.2 5.6 8.1 4.0 6.0 8.4 6.8 5.4
Overall 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
*Refinery Products’ yearly growth rates of 2012-13 are not comparable with other years on account of inclusion of RIL (SEZ)
production data since April, 2012.

21
 Chapter 3
National Manufacturing Policy
National Manufacturing Policy
The Department notified the National
Manufacturing Policy (NMP) through a Press Note
dated 4th November, 2011 with the objective of
enhancing the share of manufacturing in GDP
to 25% and creating 100 million jobs over a
decade or so. The policy is based on the principle
of industrial growth in partnership with the
States. The Central government will create the
enabling policy frame work, provide incentives
for infrastructure development on a Public Private
Partnership (PPP) basis through appropriate
financing instruments, and State Governments
are encouraged to adopt the instrumentalities
provided in the policy.
Important Instruments/Features of the
Policy
 National Investment and
Manufacturing Zones (NIMZs);
 Rationalization and simplification of
business regulations;
 Simple and expeditious exit mechanism
for manufacturing units;
 Incentives for SMEs;
 Industrial training and skill upgradation
measures;
 Financial and institutional mechanisms
for technology development, including
green technologies;
 Government procurement;
 Special Focus Sectors.
22
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;
clean and energy efficient technology; necessary
social infrastructure; skill development facilities,
etc. to provide a conducive environment for
manufacturing industries. To enable the NIMZ
to function as a self governing and autonomous
body, it will be declared 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
other functions as specified in the various section
of the policy.
The NIMZs would be different from SEZs in terms
of size; level of infrastructure planning; governance
structures related to regulatory procedures; exit
policies; fiscal incentives, etc.
The policy mandates that the SPV in a zone
will be headed by a senior government official
and will include inter-alia an official expert
conversant 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
 Promotion Board (MIPB), Green
Manufacturing Committee (GMAC)
and High Level Committee (HLC) under
National 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 simplification of state level business
regulations.
• Definition of Cluster to be used for
dispensations 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) for further necessary
action.
• Draft mechanism for delegation of power
of inspection/enforcement of labour laws
under the relevant Labour Acts to the CEO
of NIMZ has been prepared and sent to
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’ and final approval.
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
National Manufacturing Policy
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
granted final approval.
23
 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
National Manufacturing Policy
• 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)

the manufacturing sector for the purchase

• Scheme for Technology Acquisition and
of a new plant and machinery.
Development Fund (TADF) under the NMP
• Tax pass-through status for Venture was launched on 18th November, 2015.
Capital Funds(VCFs) registered with SEBI
• In Cycle-1 of Request for Proposal (RFP)
with a focus on SMEs in the manufacturing
under this TADF Scheme a total number of
sector.
11 projects covering user friendly dialysis
• Liberalization of IRDA guidelines to technology; energy generation from
provide for investments by insurance domestic waste; developing a low cost
companies in Venture Capital Funds with fully automatic plastic injection molding
a focus on SMEs in consultation with IRDA. machine; water management system
for conservation and pollution control;
• Easier access to bank finance through
development of electric 3 wheelers;
appropriate bank lending norms, to be
inverter less solar DC power solution etc.
arrived at in consultation with RBI, to cater
have been considered and approved by
specifically to the MSME sector and early
the Green Manufacturing Committee
stage business units.
(GMAC), constituted under NMP in its
• Setting up of a stock exchange for SMEs meeting held on 22nd February, 2016.
and implementation of SEBI’s “framework
• In Cycle-2 of Request for Proposal (RFP)
for recognition and supervision of stock
under this TADF Scheme a total number
exchanges/platforms of stock exchanges
of 7 projects covering smart rural
for SMEs.”
electrification; thermal energy storage;
• Technology Acquisition and Development technology for solid waste management;
Fund: SMEs will be given access to the recycling of footwear etc. have been
patent pool and/or part reimbursement considered and approved by the Green
of technology acquisition costs upto a Manufacturing Committee (GMAC) in its
maximum of Rs.20 lakhs for acquiring meeting held on 22nd April, 2016.
appropriate technologies patented upto a
• The Scheme has now been transferred
maximum of 5 years generally, prior to the
to Ministry of Micro, Small and Medium
date of submission of the project.
Enterprises on 16th September, 2016.

24

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 incorpo­rated
in January 2008 as the project implementation
agency and has been restructured with 26% equity
of the Govt. of Japan. The Japanese Government
has also announced their financial support for
DMIC project to an extent of US $ 4.5 billion in the
first phase for the projects. Initially, eight nodes/
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/cities identified as part of phase-1
of DMIC corridor i.e. States of Gujarat,
Chapter 4
Maharashtra, Madhya Pradesh and Uttar
Industrial Corridors
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 terms
of 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;
25
 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
Industrial Corridors
Land which will facilitate the early take off
of various infrastructure components in
DSIR;
e) Cabinet Committee on Economic
Affairs (CCEA) had approved the tender
packages 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 been
incorporated
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) The Status of Progress of five packages of
Trunk infrastructure of Activation Area is
as under:
i. EPC for Roads and Services Contract
(INR 1,734 CR) awarded. M/s L&T is
the 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. is
the 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;
26
iv. EPC for Sewage Treatment Plant
(STP) Contract (INR 54 crore)
awarded. M/s L&T is the selected
bidder. Work will be initiated shortly;
v. EPC tender for Central Effluent
Treatment 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 International
Airport 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 for
the MRTS Project will be initiated as part
of RoW of expressway project once DPR is
ready;
III. For Railway Line between Bhimnath
and Dholera, Ministry of Railways has
submitted the Final Location Survey (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
 implementation related activities by
coordinating all the downstream activities;
c) Cabinet Committee on Economic
Affairs (CCEA) had approved the tender
packages 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
“Aurangabad Industrial Township Limited”
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 selected
bidder. 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
Committee on Economic Affairs (CCEA);
3. Madhya Pradesh
Industrial Corridors
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 “Vikram Udyogpuri Limited” has been
incorporated. Land admeasuring 1100
acres 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 the
EPC 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
‘Pithampur Jal Prabandhan Company Limited’ has
been incorporated. EPC contractor (M/s L&T) has
been selected for INR 219 Crore. Work has been
initiated on ground.
27
 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. Land
admeasuring 747.5 acres transferred to
the Project SPV and the matching equity
Industrial Corridors
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
For Multi Modal Logistics Hub (MMLH) and Multi
Modal 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 to
provide 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
has been notified by the State Government
28
and land acquisition process has been
initiated for 1425.36 Ha. In this regard,
State Govt. is in the process of finalizing
the 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,
2016 has been notified by State Govt.;
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
by March, 2017. Land details have been
shared 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
notification has also been done by the State Govt.
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
 finalization of master plan is taking the
study forward in close coordination with
the State Govt. Land is in possession of
the State Govt. Project SPV has also been
incorporated between DMIC Trust and
State Govt.
c) For Integrated Multi Modal Logistics Hub
(IMLH) Project, land admeasuring 1000
acres has been identified at villages Talot,
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” has been incorporated and equity
has been released to the project SPV;
b) Lease deed has been executed and Power
Purchase Agreement (PPA) for 5 MW plant
executed between NTPC Vidyut Vyapar
Nigam Ltd. (NVVN) & project SPV;
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 NTPC
Vidyut Vyapar Nigam Ltd. (NVVN) on 3rd
September, 2015.
d) PPA between M/s Mikuni India Pvt. Ltd.,
a Japanese company and M/s DMICDC
NSPCL for 1MW has been executed;
e) Implementation Document (ID) has been
executed between M/s DMICDC Limited
and M/s Hitachi Limited;
f) Data Purchase Agreement between M/s
Hitachi Limited and M/s DMICDC NSPCL
for 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 time
visibility of the container position and
Industrial Corridors
custodian. This system will also provide
comparative performance metrics for all
Logistics Container Operators and help
users take informed decisions;
b) The Shareholders’ Agreement has been
executed and project SPV by the name
of “DMICDC Logistics Data Services” has
been incorporated;
c) Port Operator Agreement has also been
executed with JNPT Port on 17th February,
2016;
d) Operations have been initiated at JNPT
Port with effect from 1st July, 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
29
 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
Industrial Corridors
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 Industrial Nodes namely Ponneri (Tamil
Nadu), 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
Engineering of the following identified nodes has
been initiated:
1) Tumakuru ( Karnataka)
2) Ponneri ( Tamil Nadu)
3) Krishnapatnam (Andhra Pradesh)
DMICDC has been appointed as the nodal agency
for following activities for identified nodes under
Chennai Bengaluru Industrial Corridor (CBIC)
Project:
30
• Detailed Master Planning and Preliminary
Engineering for the identified nodes;
• Preliminary Environmental Impact
Assessment for the identified nodes;
• Finalization of Shareholder’s Agreement
(SHA) and State Support Agreement (SSA)
for the identified nodes.
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 & financial
framework 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;
 • The Letter of Award (LoA) is being
issued.
2) Status of SHA/SSA:
• Draft SHA and SSA have already
been discussed at length with State
Govt.;
• Comments of the State Govt. have
been suitably incorporated for
finalizing the SHA/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.
2) Status of SHA/SSA:
• 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 for
development 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
Industrial Corridors
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 with
the 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) has
engaged 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
the first phase of the study, ADB would focus on
the Vizag- Chennai Section so that a final view on
Vizag- Chennai Industrial Corridor may be taken
within the timeline prescribed in the Act and
further action would be taken accordingly.
31
 As part of feasibility study of VCIC and also in
terms of AP Reorganization Act, 2014, ADB team
has since submitted the final report on Conceptual
Development 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 ADB
in their CDP-VCIC region. Two nodes namely
Industrial Corridors
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
by March 2017. Loan amount of US$ 625 million
for 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
32
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
as per extant financial delegation;
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) Delhi Metro Rail Corporation Ltd. (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
of coordinates and will provide the AMSL
height certificate of project site shortly;
g) Statutory approval on individual building
blocks shall be provided upon receipt of
application along with AMSL certificate
from Survey of India;
h) EIA survey has been completed and EIA
report will be submitted shortly;
i) M/s True Earth Surveys Pvt. Ltd. has been
appointed as 3rd party surveying agency
 to conduct topographical survey for the k) Discussions have also been initiated with
project site. The process for obtaining TRANSCO to provide uninterrupted power
permission of tree cutting/afforestation supply for the project.
will be initiated after completion of site
l) Draft Note for Expenditure Finance
survey;
Committee on the formation of SPV for
j) DDA has submitted the details of implementation of the project has been
existing utility/services within/around the circulated for comments.
periphery of project site. This detail has
been sent to DJB to obtain tapping and
disposal points for the Project Site;

Industrial Corridors

33
 Chapter 5
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
Improvement of Business Environment: e-Biz Project
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 concessionaire
for 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)
services have been identified for implementation
through 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
Expansion Phase, the project will offer all the G2B
services throughout the business life cycle, which
potentially runs into over two hundred.
The eBiz portal with License & Permit Information
34
Wizard was launched on 28th January, 2013
during the Partnership Summit in Agra. During
the period under report significant progress has
been made in the implementation of the project.
The eBiz platform available with License & Permit
Wizard, 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
also offering three joined-up (L3) services named
INC7 with 5 services, INC29 with 7 services and 5
services under Labour act of Ministry of Labour &
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 Central
Government 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
offered in the form of Composite Application Form
(Central CAF). The Central CAF covers the forms
INC7, INC29 and five registration services under
Labour Act. The details of the aforementioned
services are enclosed at Annexure-A. The
remaining 5 Central Government services are
expected to be ready for launch by April 2017. List
of 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
and Promotion (DIPP) viz., Industrial License and
Industrial Entrepreneurs’ Memorandum (IEM).
The other aforementioned services are being
migrated to the new platform as of writing this
report.
Annexure -A
List of 22 Central Government Services (Launched)
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
first amongst these Pilot States to utilize the State
CAF. The list of 14 services catered to in the State
CAF as Annexure-C.

Improvement of Business Environment: e-Biz Project

S. No. Ministry/ Dept. Name Service Name Launch Date
1. Employee’s State Insurance Employer Registration 12.12.2014
Corporation
2. Department of Industrial Policy Industrial License 20.01.2014
and Promotion
3. Department of Industrial Policy Industrial Entrepreneur Memorandum 20.01.2014
and Promotion
4. Ministry of Corporate Affairs Name Availability 19.02.2015
5. Ministry of Corporate Affairs Director Identification Number 19.02.2015
6. Ministry of Corporate Affairs Certificate of Incorporation 19.02.2015
7. Ministry of Corporate Affairs Commencement of Business 1
19.02.2015
8. Central Board of Direct Taxes Issue of Permanent Account Number (PAN) 19.02.2015
9. Central Board of Direct Taxes Issue of Tax Deduction Account Number (TAN) 19.02.2015
10. Reserve Bank of India Advanced Foreign Remittance (AFR) 19.02.2015
11. Reserve Bank of India Foreign Collaboration-General Permission Route (FC-GPR) 19.02.2015
12. Employees’ Provident Fund Employer Registration 19.02.2015
Organization
13. Petroleum and Explosives Safety Issue of Explosive License 19.02.2015
Organization
14. Directorate General of Foreign Trade Importer Exporter Code License 19.02.2015
15. Reserve Bank of India Foreign Currency- Transfer of Shares2 24.08.2015
16. Department of Heavy Industry Issue of custom duty concession certificate to 1.10.2015
(DHI) entrepreneurs under project import scheme
17. Central Board of Direct Taxes Changes or correction in PAN data 1.10.2015
(CBDT)
18. Ministry of Labour and Registration under the Contract Labour Act, 1970 28.10.2015
Employment (MoL&E)
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.

35
 19. Ministry of Labour and Registration under the Building and other 28.10.2015
Employment (MoL&E) construction workers Act, 1996
20. Ministry of Labour and Registration under the Inter-State Migrant Workmen 28.10.2015
Employment (MoL&E) Act, 1979
21. Ministry of Environment, Forests Terms Of Reference ( TOR) 6.10.2016
and Climate Change (MoEF &
CC)
22. Ministry of Environment, Forests Application for Environment Clearance 6.10.2016
and Climate Change (MoEF &
CC)

List of 14 State services (Launched) in Andhra Pradesh, Odisha and NCT of Delhi:
Andhra Pradesh (14 Services) – Launched on 18.09.2015
S.No. Department Name Service Name
Improvement of Business Environment: e-Biz Project

1 AP-Ground Water Department Permission to draw Ground Water

2 AP-Department of Factories Approvals of plans from Factories Department

3 AP-Department of Factories Factories License

4 AP-Department of Factories Annual Filing under Factories Act

5 AP-Fire Department NOC from Fire Services Department

6 AP-Department of Industries Industrial Incentives(Power)
7 AP-Department of Industries Industrial Incentives (VAT)
8 AP-Department of Industries Allotment of Scarce raw materials
9 AP-Department of Industries MSME Registration
10 AP-Department of Industries NOC Acknowledgement from GM, DIC for MSME
11 AP-Department of Drug Controller License for manufacturing Bulk Drugs and Formulations
12 AP - Department of Town & Country Planning Permission from TCP for Site and Building
13 AP-Commercial Taxes Department VAT Registration
14 AP-Commercial Taxes Department CST Registration
Delhi (2 Services) – Launched on 1.10.2015
S.No. Department Name Service Name
1. Factories Department Factory Filling
2. BYPL(BSES Yamuna Power Limited) New Power Connection

Odisha (14 Services) - Launched on 14.02.2016

S.No. Departme Department Name Nam Service Name

1 Industries Department, Odisha
2 Directorate of Factories & Boilers,
Odisha
3 Labour Directorate, Odisha
4 Labour Directorate, Odisha
Project Evaluation cum Allotment of Land
Registration under Boilers Act
Registration under Shops and Establishment Act
Registration of Establishment Employing Contract Labour

36
 5 Water Resources Department, Odisha
6 Directorate of Factories & Boilers,
Odisha
7 Department of Energy, Odisha
Permission to draw Water for Industries-Ground Water &
Surface Water
Approvals of Plan under Factories Act,1948
New Power Connection

8 Housing and Urban Development De- Permission for Site and Building
partment, Odisha
9 Directorate of Factories & Boilers, Factories License under Factories Act,1948
Odisha
10 Housing and Urban Development De- Completion cum Occupancy Certificate
partment, Odisha
11 Commercial Taxes Organisation, Odisha VAT Registration
12 Commercial Taxes Organisation, Odisha CST Registration

Improvement of Business Environment: e-Biz Project

13. Odisha State Pollution Control Board Consent to Establish
14. Odisha State Pollution Control Board Consent to Operate

List of joined-up(L3) services

S.No. Service Name Department /Ministry Launch date
1. 3
INC7 Ministry of Corporate Affairs, Central Board of Direct 15.06.2015
Taxes, Employee’s State Insurance Corporation and
Employees’ Provident Fund Organization
2.3 INC29 Ministry of Corporate Affairs, Central Board of Direct 12.10.2015
Taxes, Employee’s State Insurance Corporation and
Employees’ Provident Fund Organization
3. 5 registration Ministry of Labor and Employment 28.10.2015
services under
Labour Act

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 Name Reservation of Limited Liability Partnership February 2017
Affairs
2. Ministry of Corporate Incorporation of Limited Liability Partnership February 2017
Affairs
3. Ministry of Finance Approval from Foreign Investment Promotion March 2017
Board
4. Ministry of Environment, Approval for diversion of forest land for non-forest March 2017
Forest and Climate purposes under section -2 of the Forest Act, 1980
Change
5. Director General of Issue of Import & Export License for Restricted April 2017
Foreign Trade Goods
3
Joined-up services of Ministry of Corporate Affairs (MCA) viz., INC29 and INC7 has been suspended w.e.f 28.03.2016 because
of upgradation of MCA system, thereafter, integration testing with eBiz system and MCA system.

37
 Annexure –C: List of State Services available in State CAF :
S. No. Name of Service
1. License under Section 18 of Drugs & Cosmetics Act
2.
NoC from Fire Services Department
3. Approvals of plan under Factories Act 1948
4. Allotment of Land/Shed in Industrial Estate/ Area
5. Registration under Shops and Establishment Act
6. Permission for Site and Building
7. Consent to establish under Water Act, 1974 and the Air Act, 1981
8. Consent to operate under Water Act, 1974 and the Air Act, 1981
9. New Power Connection including permission to charge the line
10. Permission to draw water outside industrial area
11. Completion cum occupancy certificate
Improvement of Business Environment: e-Biz Project

12. Permission to draw water

13. Registration under Boilers Act
14. Factories License under Factories Act 1948

38

Ease of Doing Business
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 to measure regulations directly affecting
businesses 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
contributed to strengthening investor confidence.
In Doing Business Report (DBR) 2016, India had
jumped 12 places, however, in the 2017 report
the ranking showed only a minor improvement
despite the efforts and reforms undertaken by the
Centre 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
ICEGATE portal and simplification of border and
documented procedures and ‘enforcing contracts’
through establishment of dedicated divisions
for resolving commercial cases. The report has
Chapter 6
especially lauded India for achieving significant
reduction 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
Ease 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 Identification
Number (LIN), submission of common
electronic returns under 16 Labour Acts
and 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 sole
application form for incorporation of
companies (w.e.f., from 01.01.2017). The
39
 waiting for final approval under the Forest
fee for filing the incorporation form has
Conservation Act.
been reduced from Rs.2000/- to Rs.500.
2. Construction Permits
• No Environment clearance is required for
36 white industries. • Municipal Corporation of Greater Mumbai
(MCGM) has completed the process of
• Mine prospecting projects have been
single window approval by integrating
exempted from the requirement of
with internal Departments as well as
compensatory afforestation and Forest
external Departments like AAI and NMA
Rights Act (FRA) certificate for grant of
through a common application form.
forest clearance.
• In Mumbai, the building completion
• No site inspection is required for mine
certificate and occupancy certificate can
prospecting projects on forestland for
now be processed simultaneously through
less than 100 ha. for construction of
single-window approval system.
new roads/drilling of bore hole/ sample
collection pits. • Site inspection for construction permits
has been minimized by way of self-
• Validity of Environment Clearance has
certification and introducing third
been increased from 5 years to 7 years.
Ease of Doing Business

party certification. During construction,

• 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 state
government have been delegated powers
to issue permission for tree felling and
commencement of work for a period
of one year of linear projects without
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
Labour Department of Delhi Government

40
 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
notified the Unified Building Bye-laws. The
unified building bye laws have provision of
deemed 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
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

Ease of Doing Business

500 KVA on double pole structure.
online by Municipal Corporation of
Delhi. • Amendments in Central Regulatory
Authority notification to waive off
• Infrastructure charges have been
electrical approval for 11 KV installations
abolished by Delhi Jal Board Authority for
carried out by DISCOMs and allowing self-
commercial/ industrial connections. The
certification by DISCOMs engineers.
development Charges for commercial and
industrial water connections upto 50 sq. m • Supply Code Regulation and Standard of
is Rs. 45000 and above 50 sq. m is Rs. 1 Performance (SOP) regulations have been
lakh. modified by DERC and MERC to complete
the process within 15 days.
3. Getting Electricity
• Now the industrial/ commercial
• Online application for connections above
connections are being granted within 15
100KVA mandatory in Maharashtra and
days in Delhi and Mumbai.
Delhi.
• Tata power has improved its System
• Delhi Electricity Regulatory Commission
Average Interruption Duration Index
(DERC) has rationalized LT and HT tariff
(SAIDI) by 2.42 and it’s System Average
thereby allowing LT connections upto
Interruption Frequency Index (SAIFI) by
150KVA.
2.41.
• In Delhi and Mumbai, for getting a
• Brihanmumbai Electricity Supply and
new electricity connection the number
Transport (BEST) has improved its System
of procedures has been reduced to 3.
Average Interruption Duration Index
Further, DERC has revised the application
(SAIDI) by 1.72 and it’s System Average
format of Delhi Electric Supply Code and
Interruption Frequency Index (SAIFI) by
Performance Standards Regulations, 2007
3.26.
for faster release of electricity connection.

41
 4. Trading Across Borders 168 low phytosanitary risk agricultural
commodities listed under schedule VII of
• Reforms affecting import of automobile
the PQ order, 2003 have been identified
parts from Korea: In JNPT there are 1637
for 5% random inspection. Mandatory
import declarations filed during the
testing of imports from countries where
period from 1st June 2015 to 31st May
azo dye has not been banned has been
2016 (the period of World Bank case
reduced to 25%.
study). The average time taken for giving
cargo clearance by Customs authorities is • The limit on the number of consignments
19.59 hours, wherever importer has paid released under direct delivery has been
appropriate Customs duty. Further, it is removed facilitating prompt delivery of
important to note that more than 80% of goods.
automobile shipments coming from Korea
• Terminal handling receipts have been
are treated as risk-free and Customs gives
eliminated from Jawaharlal Nehru Port
clearance within 6 hours, in cases where
Container Terminal, Gateway Terminals
importer has paid appropriate Customs
India and Nhava Sheva International
duty.
Container Terminal by web based e-form
• On April 1, 2016, the Central Board of 13.
Ease of Doing Business

Excise and Customs of India launched

the Customs Electronic Commerce
Interchange Gateway (ICEGATE) portal,
which allows for e-filing of integrated
customs 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.
• Filing of import and export declarations
and manifests has been made online with
digital signature. Importers, exporters
using services of Customs Brokers,
shipping lines and airlines can file customs
documents 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

42
 imports to 3 each for export and import.
Earlier 7 documents were required for
exports and 10 for imports. Implemented
vide notification dated 12.03.2015.
• 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 Law
Tribunal and National Company Appellate
Law Tribunal has been operationalized.
• Insolvency and Bankruptcy Board of India
has notified liquidation norms on 15th
December, 2016 under Insolvency and
Bankruptcy Code.
• The Corporate Insolvency Resolution
provisions have been notified on 30th
November, 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 21st
November, 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
Ease of Doing Business
country till District Level Courts.
7. Registering Property
• Mumbai: Integration of Sub Registrars'
offices with the Land Records Department
has been completed. Registration data
is being shared with the Land Records
Department as part of the LR-SRO
linkage under the National Land Records
Modernization Program. This has been
done for e-mutation in rural areas, and
is presently being implemented across
358 tehsils comprising 427 Sub Registrar
Offices in the state.   
• 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.
43
 • 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.
• In Delhi, all sub-registrar offices have been
digitized and sub-registrars' records have
been integrated with the Land Records
Department.
Ease of Doing Business
• 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
modifies rule 4 to include additional types
of 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
44
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 Shram
Suvidha Portal.
• Sales tax department of Maharashtra
has eliminated physical touch point for
filing of tax returns, tax payment and tax
compliances by introducing online return
filing and online payment through GRAS
(Government Receipt Accounting System)
for VAT, CST, Profession tax, Luxury Tax
and Entry Tax.
• Electronic Verification Code (EVC) has been
introduced 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 filing
tax return electronic. It has also reduced
the time period for filing the tax return
considerably. 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
be filed online was also standardized and
harmonized with various provisions of the
Companies Act.
• An option for e-filing is available for filing
or revising Corporate Tax returns with
CBDT.
Assessment of State Implementation of
2016 State Score 2015
Business Reforms 2016 Rank (%) Rank
The Department of Industrial Policy and 4. CHHATTISGARH 97.32 4
Promotion (DIPP), Ministry of Commerce and
5. MADHYA PRADESH 97.01 5
Industry released the results of the Assessment of
Implementation of Business Reforms 2015-16 by 6 HARYANA 96.95 14
States on 31.10.2016. The Assessment studies the 7. JHARKHAND 96.57 3
extent to which states have implemented DIPP’s
8. RAJASTHAN 96.43 6
340-point Business Reform Action Plan (BRAP) for
States/UTs, covering the period July 1, 2015 to June 9. UTTARAKHAND 96.13 23
30, 2016. The BRAP includes recommendations 10. MAHARASHTRA 92.86 8
for reforms on 58 regulatory processes, policies,
11. ODISHA 92.73 7
practices or procedures spread across 10 reform
areas spanning the lifecycle of a typical business. 12. PUNJAB 91.07 16

Data for this assessment was collected from State 13. KARNATAKA 88.39 9
Governments on the BRAP portal. The portal, 14. UTTAR PRADESH 84.52 10
among the first of its kind globally, allowed State

Ease of Doing Business

15. WEST BENGAL 84.23 11
Governments to submit evidence of implemented
reforms. At least 32 State and UT Governments 16. BIHAR 75.82 21
submitted evidence of implementation of 7,124 17. HIMACHAL PRADESH 65.48 17
reforms. These submissions were reviewed by the
18. TAMIL NADU 62.80 12
World Bank team and validated by DIPP’s team to
study whether they met the objectives of the BRAP. 19. DELHI 47.62 15
The portal allowed for collaborative dialogue 20. KERALA 26.97 18
between DIPP and the State Governments in
21. GOA 18.15 19
finalizing the evidence submitted.
22. TRIPURA 16.67 26
The results of the assessment demonstrate that
States have increasingly risen to address the 23. DAMAN & DIU 14.58 -

challenge of making it easier to do business. 24. ASSAM 14.29 22

The national implementation average stands
25. DADRA & NAGAR 1.79 -
at 48.93%, significantly higher than last year’s HAVELI
national average of 32%. This demonstrates the
26. PUDUCHERRY 1.49 20
great progress made by States this year.
26. NAGALAND 1.49 31
The final rank of the States as of October 30, 2016
is shown in the table below: 28. MANIPUR 1.19 -

29. MIZORAM 0.89 28

2016 State Score 2015
Rank (%) Rank 30. SIKKIM 0.60 27

1. ANDHRA PRADESH 98.78 2 31. ARUNACHAL PRADESH 0.30 32

1. TELANGANA 98.78 13 31. JAMMU & KASHMIR 0.30 29

3. GUJARAT 98.21 1 31. CHANDIGARH 0.30 24

45
 Inspection Reforms:
2016 State Score 2015
Rank (%) Rank A number of inspection reforms regarding labour,
31. MEGHALAYA 0.30 30 tax and environmental compliances introduced
to make compliance to inspection requirements
31. ANDAMAN & NICOBAR 0.30 25
ISLANDS user-friendly for businesses. States also published
comprehensive procedures and checklists for
31. LAKSHADWEEP 0.30 -
inspections and have implemented online systems
Reform Highlights for allocation of inspectors.
Single Window Systems: Commercial disputes and paper-less
Various States have created a dedicated body as a courts:
one-stop online system for State level regulatory Significant progress made in the area of judicial
and fiscal incentive approvals. It has provisions reforms, particularly due to the passage of
for filing applications, payment, status tracking,
Commercial Courts, Commercial Divisions and
online scrutiny and application approvals. 24
Commercial Appellate Divisions Act. Addressing
States have operational single window system.
the concern of time and costs associated with
Construction Permits: various legal processes, various States’ District
Ease of Doing Business

Courts have made provisions for making online

Many States allowed online applications
payments, e-filing and e-summons.
and uploading building plans for automated
construction permit approval. Several States For next year’s assessment, a brain storming
developed AutoCAD-based systems that session was organized by DIPP on 16th November
automatically scan building plans and monitor 2016 with all the States/UTs to take their feedbacks
compliance with existing building bye-laws and and suggestions. The suggestions received from
codes. States including assigning weightages to reform
Environment and labour reforms: measures, law and order situation, availability of
key infrastructure, skilled manpower and industrial
Advanced automated solutions implemented to
peace will be duly considered in the methodology
deal with environmental and pollution-related
for next year’s assessment. The development of
applications. These solutions provide hassle-free,
next year’s reform is already underway.
24X7 e-access for businesses to apply online,
track applications, file returns and statements and
get online permissions under various Acts and
regulations.

46

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
infrastructure and to develop green-field
smart cities and industrial corridors.
• Focus Sectors: Under “Make in India”,
25 focus sectors have been identified in
manufacturing, services and infrastructure,
and detailed sector information is being
shared through an interactive web portal.
FDI has been opened up in reserved
Chapter 7
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
Make in India Initiative
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
47
 with detailed information regarding the
investment opportunities across identified
focus 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
as a country specific program to attract German
Mittelstand 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
Make in India Initiative
• nations were selected for MESP.
the support of Government of India
implemented a strategic market entry
support program, first of its kind, to
assist 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 stop
source for companies requiring market
entry support services with the additional
benefits of special workshops, 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 43
companies that eventually joined the
program, 26 companies concretized their
plans to invest in India.
48
• 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
country specific investment promotion program,
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
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
 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.
Make in India Initiative
49
 Chapter 8
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
supplementing the efforts of State Governments
through 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 Schemes
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  both 
in public  and private  sectors  irrespective of  (ii) Jammu
their size).
50
Coverage 
All the eight States of the North East, Himachal
Pradesh, Jammu & Kashmir, Uttarakhand,
Andaman & Nicobar Administration, Lakshadweep
Administration and Darjeeling District of West
Bengal.
Quantum of Subsidy 
Subsidy ranging between 50% to 90% of the transport
cost for transportation of raw material and finished
goods to and fro from the location of the unit and
the designated rail-head. For North East States, J&K
and UTs, the subsidy is 90%. For H.P., Uttarakhand
and Darjeeling district of West Bengal, the subsidy is
75%. However, for movement of goods within NER,
the subsidy is 50%.
Period of eligibility
A unit is eligible for subsidy for a maximum period
of five years from the date of commencement of
commercial production.
Nodal Agency
The disbursement of subsidy to the eligible
industrial units in the States is made through the
nodal agencies appointed for the purpose. These
are:
(i) North  East  Development  Financial 
Corporation (NEDFi), Guwahati for the
eight States of North Eastern Region;
& Kashmir Development
Finance Corporation limited
(JKDFC) for Jammu & Kashmir;
(iii) Himachal Pradesh State Industrial disallowed;
Development Corporation (HPSIDC) 
(iii) Sunset clause introduced so that the
for Himachal  Pradesh;
Scheme terminates after 5 years from its
(iv) State Infrastructure and Industrial date of notification;
Development Corporation of Uttarakhand
(iv) Provision for subsidy for an additional
Ltd. (SIIDCUL) for Uttarakhand.
period of 5 years to MSME;
The  disbursement  of  subsidy  to  the  industrial 
(v) Plantations, Refineries, Power generating
units  in  the Union Territories  is made  through 
units, Coke (including Calcined Petroleum
the  UTs Administrations. 
Coke) industry and the units producing
Validity of the Scheme tobacco and manufactured tobacco
substitutes, pan masala and plastic carry
The Transport Subsidy Scheme ended on
bags of less than 20 microns have been
21.01.2013 and w.e.f. 22.01.2013 it was modified
placed in the negative list.
and notified as Freight Subsidy Scheme (FSS) –
2013, with the approval of Cabinet Committee on Funds released under the scheme 
Economic Affairs (CCEA). Units which commenced
Under TSS, 1971 / FSS, 2013, since inception, an
production on or after 22.01.2013 or a unit which
amount of Rs. 3496.13 crore (approx.) has been
has not claimed subsidy under TSS, 1971 before
released to the States/UTs, including Rs. 220
the date of publication of FSS in the official
crore released during FY 2013-14, Rs. 124.49
Gazette would be covered under FSS – 2013.
crore released during FY 2014-15, Rs. 60.00 crore
The salient features of this Scheme were as
released during FY 2015-16. In the current FY
follows:
2016-17, Rs. 69.99 crore has been released (up
to 31.12.2016). Year-wise funds released under

Development Schemes
(i) Definition of ‘manufacturing activity’
adopted from the Union Budget 2009-10; the Scheme have been depicted through a
Bar-Chart given below:
(ii) Subsidy on transportation of fly ash

51
 Major Policy Initiatives during 2016
With the approval of the CCEA, Freight Subsidy
Scheme, 2013 has been discontinued, with
effect from 22.11.2016. However, industrial units
registered under the scheme prior to the date of
issue of DIPP’s notification dated 22.11.2016 will
be eligible for the benefits of the scheme.
Government of India has taken a decision to
disburse subsidy under NEIIPP, 2007/TSS, 1971/
FSS, 2013 to eligible industrial units through Direct
Benefit Transfer (DBT) mechanism to be credited
into the bank account of the beneficiary Industrial
units. 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
Development Schemes
was revised and a new policy, namely North East
Industrial & Investment Promotion Policy (NEIIPP)
2007, was notified w.e.f. 1.4.2007 which will remain
in force upto 31.03.2017. Benefits under NEIIPP,
2007 have also been extended, for the first time,
to 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
less than 20 microns, refineries and units engaged
in peripheral activities like preservation during
storage, cleaning operations, packing, re- packing,
labeling or re-labeling, sorting, alteration of retail
sale price etc.).
52
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 for
a maximum period of 10 years from the
date of commencement of production.
The scheme has been revised w.e.f.
22.11.2016 and now the interest subsidy
will be available only on term loans of
5-10 years maturity taken to finance
capital 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 Lending
Rate (PLR) to the extent of up to 3% per
annum. so as to ensure that post-subsidy
interest rate does not fall below the
PLR of the concerned bank or financial
institution.
• 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
Benefit Transfer (DBT) mechanism to be credited
into the bank account of the beneficiary Industrial
units. 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.
Development Schemes
53
 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
before 01.12.2014 would continue to get benefits
as per pre-revised norms. The new industrial units
who are eligible for registration may register
themselves to avail the benefits as per revised
norms of subsidy. The suspended registration
process has been resumed with immediate effect.
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 Schemes
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
54
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 date
of commencement of commercial
production.
• Central Comprehensive Insurance
Subsidy Scheme: An Insurance subsidy to
the extent of 100% would be admissible
during the extended package to all
new units and to the existing units on
substantial expansion for a period of five
years from the date of commencement of
commercial production.
Nodal Agency
Jammu & Kashmir Development Finance
Corporation Ltd. (JKDFC) has been notified
as 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.
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
to provide a fillip to the private investment in the
state. The scheme was valid till 6th January, 2013.
However, scheme in the name of Package-II has
been extended for another period five years w.e.f.,
7th of January, 2013 to 31st of March, 2017. The
new package includes Central Capital Investment
Subsidy @ 15% of the investment in plant and
machinery with maximum limit of 30 lakh for new
units established or on substantial expansion
for existing unit in notified area and for thrust
industries anywhere in the state. For MSMEs 15%
of investment in plant & machinery with maximum
upper limit of `50 lakh for same area.
Nodal Agency
Himachal Pradesh State Industrial Development
Corporation Ltd. (HPSIDC) and State Industrial
Corporation of Uttarakhand Ltd. (SIDCUL) are
the Nodal Agencies for routing the disbursal
of subsidy to the beneficiary industrial units
located 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
Development Schemes
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 measures
including 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 fiscal
incentives 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
55
 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
both the States. During the current financial year,
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
Development Schemes
an independent evaluation to strengthen the
implementation process. A modified version
of IIUS viz ‘Modified Industrial Infrastructure
Upgradation Scheme (MIIUS)’ was notified in July
2013. Under MIIUS, projects have been undertaken
to upgrade infrastructure in existing Industrial
Parks/ Estates/ Areas. Greenfield Projects have
also been undertaken in backward areas and
North Eastern Region (NER). Projects are being
implemented by the State Implementing Agency
(SIA) of the State Government. Central Grant 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

to become globally competitive. The Scheme projects under MIIUS are given in Table 8.1.
was recast in February, 2009 on the basis of

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

(Rs. in crore)
S. Name and location of the Project State Project Central Date of Final
No. Cost Grant Approval
Upgradation of Hindupur Growth Centre &
1 Andhra Pradesh 54.2 14.93 01.03.2016
IP Gollapuram, Anantpur District,
Upgradation of industrial Growth Centre,
2 Andhra Pradesh 30.61 8.68 01.03.2016
Bobbili, Vizianagaram District

3 Industrial Growth Centre, Urla, Distt. Raipur Chhattisgarh 54.81 12.26 05.03.2015
4 Sirgitti Engineering Cluster Chhattisgarh 44.59 10.24 10.08.2015
5 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 05.03.2015
7 Industrial Area, Kandrauri HP 95.77 24.07 05.03.2015
8 Industrial Area, Pandoga HP 88.05 22.62 05.03.2015
9 Industrial Estate, Kathua J &K 36.55 16.89 10.08.2015

56
 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 10.08.2015
13 KINFRA Defence Park, Palakkad Kerala 130.94 50 28.03.2016
Up gradation of Infrastructure at Zuangtui
14 Mizoram 18.02 14.42 01.03.2016
Industrial Estate
15 Industrial Area, Sitapur, Morena MP 75.00 12.75 05.03.2015
16 Industrial Area, Ujjaini, Dhar MP 44.88 11.50 05.03.2015
17 Angul Aluminium Park,Angul Odisha 99.60 33.44 18.08.2015
18 Light Engineering Cluster, Nabha, Patiala Punjab 76.60 16.58 05.03.2015
Upgradation of Physical infrastructure at
19 Tamil Nadu 30.4 7.69 01.03.2016
SIPCOT-HOSUR Industrial Complex
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 Central Date of

Development Schemes
Cost Grant '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
Treated Effluent Collection and Disposal
3 Gujarat 112.75 44.16 01.03.2016
System Industries In Danilimbda
Upgradation Of Infrastructure In Sayakha
4 Gujarat 361.26 28.05 01.03.2016
Industrial Area, Bharuch District
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 sanctioned central grant of Rs.1526.00 crore. Out

of these 37 projects, 28 have been completed.
37 projects have been approved in the 10th and
The break-up of approved projects under
11th Five Year Plan Periods under IIUS and these
IIUS and release of central grant are given in
projects have been provided central assistance
Table 8.2
of Rs. 1404.69 crore (up to 31.12.2016), out of

57

FYP No. of Sanctioned Projects Total Project Cost
10th 25 1558.54
11th 12 915.26
Total 37 2473.80
The details of the 37 IIUS projects along with physical and financial progress is enclosed at Appendix-
VIII. Physical progress achieved for the 9 ongoing projects are illustrated as below:-
Development Schemes
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. 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 to
augment 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
establish institutional facilities. ILDP is an existing
central scheme initiated from the 10th Five Year
Plan and continued in the 11th Five Year Plan with
an expenditure of Rs. 669.02 crore. The same has
58
(Rs. in crore)
Sanctioned Released
(Up to 31.12.2016)
893 870.54
633 534.15
1526 1404.69
been continued in 12th Plan with an outlay of
Rs. 990.36 crore. The ILDP comprises of the
following 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
of developing Mega Leather Clusters is to
create state of the art infrastructure and
to integrate the production chain in a
manner that caters to the business needs
 of the leather industry so as to cater to up-gradation training of 14000 workers is
the domestic market and exports. These underway.
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 creating
additional 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 Training under PLSDP in progress
Infrastructure, R&D Infrastructure and
Export services related infrastructure. iv. Establishment of Institutional Facilities
During the year 2016-17, approval has - The sub-scheme of ILDP aims at
been given for setting-up of Mega Leather providing institutional facilities by way
Cluster (MLC) at Nellore, Andhra Pradesh of establishing new campuses of FDDI to
with GOI assistance of Rs. 125 Crore. meet the growing demand of the leather
industry for footwear technologies,
iii. Human Resource Development (HRD)- designers, supervisors and mechanics.
HRD mission targets potential work Two new branches of Footwear Design and

Development Schemes
force for leather sector and lays stress Development Institute (FDDI) are being
on skill development and technical built in Ankleshwar (Gujarat) and Banur
development. This project is intended to (Punjab) with GOI assistance of Rs.100
train and prepare individuals to be fit to crore for each branch. The construction
work in medium to large industrial units. work of Gujarat campus is almost
Assistance is provided for placement complete while the construction work of
linked skill development training to Punjab campus is in the final stages.
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 FDDI, Ankleshwar Campus

59
 v. Leather Technology, Innovation &
Environmental Issues - This sub-
scheme provides financial support to
Leather Cluster to meet the prescribed
pollution control discharge norms
and environmental issues. This covers
establishment/ expansion/ up gradation
of CETPs, Technology benchmarking for
implementing cleaner technologies for
environment management, utilization of
solid waste from tanneries and conducting
workshops to educate and train the
tanners and tannery workers.
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
Development Schemes
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
by Council for Leather Exports (CLE) in overseas
countries 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
60
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. Leading
Buyers and importers of major US
brands like Levi Dockers, Kenneth Cole
American 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,
Germany was held alongside India Leather
Days 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
 and Accessories Fair, Sao Paulo during 200 Chinese businessmen, entrepreneurs
10-13 January, 2016 which presented and potential investors from Footwear
the opportunities and advantages in Associations and Footwear Machinery
invest in India in the leather sector Associations in the field of leather industry.
with approximately 70 attendees from
• The Investment seminar on Indian
this sector. Further a B2B meeting was
Footwear and Leather Sector was held in
arranged with JBS Corus, a leading leather
Taiwan in coordination with India Taipei
company in Brazil. JBS group has shown
Association (ITA), Taipei during August 24-
intense interest in exploring the possible
25, 2016. Around 50 Taiwanese companies
opportunities in the leather sector in India.
participated in the event.
• The Make in India Investment conference
Under the Make in India Programme ‘Council for
was held at Dongguan in Guangdong
Footwear, Leather & Accessories (CFLA)’ has been
province of China during 6-7 January,
constituted to promote scale and competitiveness
2016. The event was attended by around
of domestic leather industry.

Development Schemes

61
 Chapter 9

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 cement
like Ordinary Portland Cement (OPC), Portland
Pozzolana Cement (PPC), Portland Blast Furnace
Slag Cement (PBFS), Oil Well Cement, White
Cement, etc. These different varieties of cement
are produced as per the Bureau of Indian
Standard (BIS) specifications and its quality is
Industries and Industrial &
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.
The Production and Dispatch figures for the year
2015-16 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

comparable with the best in the world. Recently

vide Gazette Notification dated 05th August, 2016
Technical Development

BIS has formulated a new cement specification for

has rescinded the Order of the Government
composite cement namely IS: 16415-2015.
of India in the erstwhile Ministry of Industry,
Capacity, Production and Dispatch of Cement Department of Industrial Development, number
S.O. 125(E) dated 24th February, 1993, published
Cement is one of the most technologically
in the Gazette of India, Extraordinary, vide number
advanced industries in the country. The modern
S.O. 125(E) dated 24th February, 1993, relating to
Indian Cement plants are state-of-the-art plants
collection of cess from cement industries; now
and are comparable to the best in the world.
cess is not collected from this sector.
The Indian Cement Industry has managed to keep
Cement Information System (CIS) Portal was
pace with the global technological advancement.
launched in 2014 for compilation of data
The induction of advanced technology has helped
regarding capacity, production, dispatch and
the industry immensely to improve its efficiency
export of cement, etc. from cement plants in
by conserving energy, fuel and addressing the
the country; format for data collection has been
environmental concerns.
simplified to ease complex data requirement and

62
the same is under security audit. CIS with revised The production of cigarettes during 2015-
format will be available for user industries shortly. 16 was 793,338.21 lakh (in numbers).
During the current financial year (April, 2016
National Council for Cement and Building to October, 2016), the production has been
Materials (NCB) is a cooperative research 427,652.89 lakh (in numbers) .
organization (registered as a society under
the Societies Registration Act, 1860) under The export and import of Cigars, Cheroots,
Administrative Control of this Department. The Cigarillos and Cigarettes of Tobacco or
Council provides scientific, technological and Tobacco Substitutes in the year 2015-16 and for
industrial services support to the cement, related current financial year (April, 2016 to October,
building materials and construction industries, 2016) (HS Code: 2402) are as follows:
and carries its activities through its Units located (Value in Rs. Lacs)
at Ballabgarh, Hyderabad and Ahmedabad. Its HS Export Import
activities are carried out through six Programme Code
Centres as under: 2402 2015-16 April, 2015-16 2015-16
2016 to (April, 2015
(i). Cement Research and Independent October, to November,
2016 2016)
Testing.
80,423.76 36,108.39 13,103.01 9646.32
(ii). Mining, Environment, Plant Engineering
Explosives Industry
and Operation.
There are 120 Explosives Plants and 141 Site
(iii). Construction Development and Research.
Mixed Explosives Plants in the medium and
(iv). Industrial Information Services. Small Scale Sector, engaged in the production of
Explosives. The installed and production capacity
(v). Continuing Education Services.
are as under:-
(vi). Quality Management, Standards and
Calibration Services.

Industries and Industrial &

Technical Development
The Budget provisions for the current financial
year 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.

63
 Production of Explosives for the last 5 years

Annual Installed 2016-17

Description Licenced capacity 2012-13 2013-14 2014-15 2015-16 (up to
(MT) 31.12.2016)
Class 1
Gun Powder 855.55 577.7 549 535.327 552.165 511.344
(Metric Tonnes)
Class 2
(a) Cartridges 691046 267275 269999 344146.4 378989.957 291485.310
(b) Site Mixed 1633675.5 495946 521419 604234.6 762850.379 575768.364
(Metric Tonnes)

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

Class 3 Div-2 21149.67 5656.5 6186 7015 7996.384 6995.651

Booster and PETN*
(Metric Tonnes)
Class 6 Div 1
Safety Fuse 261.6 77.1 75 68.7 61.1 42.30
(Million meters)
Class 6 Div 2
Detonating fuse 708 649.0 428 457.7 479.6 449.197
(Million mtrs)
Class 6 Div 3
Detonators 1166.15 992.2 1032 906.7 969 872
(Million Nos.)

**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..
for glass fibre products particularly due to growth
Industries and Industrial &

*PETN- Penta Erythritol Tetra Nitrate

Technical Development

in petrochemical sector and allied products.

Glass Industry (HS Code:70)
The production of Glass Sheet, Toughened
Glass Industry comes under the category of
Glass, Fibre Glass, Glass Bottles during 2015-
delicensed industry. Glass Industry covers seven
16 were 87,544.08 thousand square metres,
items such as sheet and flat glass (including
31,17,950.40 square metres, 49,967.40 tonnes,
sheet, float, figured, wired, safety, mirror glass)
9,18,669.00 tonnes respectively and during the
(NIC-26101), Glass Fiber and Glass Wool
current financial year (April, 2016 to October
(NIC-26102), Hollow Glassware (NIC-26103),
2016) have been 51,109.04 thousand square
Laboratory Glassware (NIC-26104), Table &
metres, 16,29,085.77 square metres, 26,322.26
Kitchen Glassware (NIC-26105) and Glass Bangles
tonnes and 5,42,348.00 tonnes respectively.
(NIC-26106) and other Glassware (NIC-26109).
There has been growing acceptability of the The export & import of glass & glassware in the
Indian flat glass products in the global market. year 2015-16 and current financial year (April,
The Indian manufacturers had explored new 2016 to October, 2016) (HS Code: 7005, 7007,
markets. There is considerable scope in demand 7008, 7009 and 7010 ) are as follows:

64
 (Value in Rs. Lacs)
HS Code Export Import
2015-16 2016-17 2015-16 2016-17
(April, 2016 to October, 2016) (April, 2016 to October, 2016)
7005 21,749.11 9,930.34 80,785.19 50,221.89
7007 17,642.37 8,310.79 40,960.24 25,858.72
7008 3,018.38 2,093.13 2,126.91 1,749.02
7009 18,379.63 12,080.72 47,798.56 20,622.12
7010 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
density fiber board etc. form the major segment
of 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
products during the current financial year (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
financial year (April, 2016 to October, 2016) (HS
Code: 4408, 4409, 4410, 4411, 4412, 4415 and
4416 ) are as follows:

Industries and Industrial &

Technical Development
(Value in Rs. Lacs)
HS Code Export Import
  2015-16 2016-17 2015-16 2016-17
(April, 2016 to October, 2016) (April, 2016 to October, 2016)
4408 9,394.57 5,099.18 1,14,084.55 70,357.73
4409 1,109.03 857.59 10,667.69 6,865.02
4410 1,641.84 1,150.71 23,627.40 12,823.13
4411 7,820.27 4,693.82 59,394.26 29,367.22
4412 27,073.14 9,629.87 53,397.19 26,787.94
4415 7,629.09 4,735.83 7,089.84 3,921.69
4416 146.85 71.13 1,100.13 435.73
TOTAL 54,814.79 26,238.13 2,69,361.06 1,50,558.46

65
 Paints & Allied Products Industry (HS The production of Paints of all kinds and Printing
Code: 32) Ink during 2015-16 was 7,98,715.22 tonnes and
2,29,693.88 tonnes respectively. During the
The Paints & Allied Industry which has been
current financial year (April, 2016 to October,
exempted from compulsory licensing, mainly
2016), the production of these products has
consists of paints, enamels, varnishes, pigments,
been 500,720.34 tonnes and 1,41,532.50 tonnes
printing inks, etc. These play a vital role in the
respectively.
economy by way of protecting national assets
from corrosion. These items are manufactured The export and import of Paints & Allied Products
both in the organized sector and small scale in the year 2015-16 and for the current financial
sector. year (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 2015-16 2016-17
(April, 2016 to October, 2016) (April, 2016 to October, 2016)
3208 20,095.97 13,536 49 111,974.97 59,354.31
3209 4,459.39 2,269.54 27,033.08 13,621.84
3210 3,128.87 4,755.30 10,955.06 5,462.75
3215 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) (thousand numbers) respectively. During the

current financial year (April, 2016 to October,
The Watch Industry in India comprises of units
2016), the production has been 66,49,044.00
both in the organized as well as the small scale
(in numbers) and 6,290.35 (thousand numbers)
sector. The organized sector contributes 40% of
respectively.
the total demand while the rest is met by the
unorganized sector. Most of the watches are The export & import of Clocks and Watches in
Industries and Industrial &
Technical Development

being manufactured under the electronic system. the year 2015-16 and for the current financial year
The production of Clock/Watch/Timepiece (April, 2016 to October, 2016) (HS Code: 91) are
Movement and Watches (Wrist) during 2015- as follows:
16 was 10,743,104.00 (in numbers) and 9,590.88 (Value in Rs. Lacs)
HS Code Export Import
2015-16 2016-2017 2015-16 2016-2017
April, 2016 to October, 2016 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) Industry is delicensed.

The principal types of metal (tin) containers are
food containers generally known as OTS (Open
Top Sanitary) cans and General Line Containers for
packaging non-food commodities such as paints,
lubricants, pesticides, etc. The Metal Container
The production of Tin containers during
2015-16 was worth Rs. 412.55 crores and during
the current financial year (April, 2016 to October,
2016) has been Rs. 287.44 crores.

66
The export & import of containers in the year 2016 to October, 2016) (HS Code: 7310 ) are as
2015-16 and for the current financial year (April, follows:

(Value in Rs. Lacs)

HS Code Export Import
2015-16 2016-2017 2015-16 2016-2017
April, 2016 to October, 2016 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:

(Value in Rs. Lacs)

HS Code Export Import
2015-16 2016-17 2015-16 2016-17
(April, 2016 to October, 2016) (April, 2016 to October, 2016)
3401 68,430.33 36,466.47 30,392.72 24,043.75

Industries and Industrial &

3402 185,592.91 99,433.23 156,810.62 80,570.76

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

Leather Industry
Leather Industry plays an important role in
the Indian economy in view of its substantial
overall output, export earnings and employment
potential. The Leather Industry is the tenth largest
amongst the manufacturing sector of India and is
one of 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.

67
 India’s Export performance of the Leather Sector during the last five years is presented below:-
(Value in Million US$)
2011-12 2012-13 2013-14 2014-15 2016-17*
Finished leather 1024.69 1093.73 1284.71 1329.05 884.39
Footwear& Footwear-Components 2079.14 2066.91 2345.60 2638.73 2311.03
Leather Garments 572.54 563.54 596.15 604.25 481.38
Leather Goods 1089.71 1180.82 1353.91 1453.26 1221.67
Saddlery & Harness 107.54 110.41 145.54 162.70 121.77
Non-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
Items of manufacture in the Leather Sector do not laboratories like Central Power Research Institute
attract Licensing Provisions under The Industries (CPRI), Electrical Research and Development
Development and Regulation Act 1951. Association (ERDA) are well equipped with the
most advanced product testing facilities to meet
Light Electrical Industry Sector
international standards.
The Light Electrical Industry is a diverse sector
The production of insulated cable & wires of all
having a number of distinct products and sub-
kinds in 2015-16 was 65.85 lakhs core km. and
products. It includes goods like electrical wires
in 2016-17 (April - Oct) was 48.05 lakhs core km.
and cables, transmission tower, cranes, lifts &
The export and import of wires and cables (HS
escalators, refrigerators, washing machine, air
code. 7413 & 8544) in 2015-16 was Rs. 4809.06
conditioners, storage batteries, dry cell batteries,
Crore and Rs. 5461.80 crore respectively whereas
electrical lamps & tubes etc. A brief of some of
in 2016-17 (April-Sept) the same was Rs. 2563.92
these industries is given below:-
crore and Rs. 2565.90 crore respectively.
1) Electrical wires and cables
2) Transmission Towers
Industries and Industrial &
Technical Development

Electrical wires and cable industry is one of the

Transmission towers support high voltage
earliest industries established in the country in
transmission lines which carry electricity over long
the field of electrical products. A wide range of
distance. These lines typically feed into sub-station
wires and cables are manufactured in the country
so that the electrical voltage can be reduced to
which includes communication cables such as
a level that can subsequently be used by the
jelly filled telephone cables, optic fibre cables,
customers. There is an increasing trend in India
local area network cables, switchboard cables, co–
to have larger power stations, particularly mega
axial cables, VSAT cables, electrical cables such as
and ultra-mega power projects. Consequently
electrical wires, winding wires, automotive/battery
while there would be fewer but larger power
cables, UPS cables, flexible wires, low voltage
generating stations, the demand for transmission
power cables and EHT power cables. The power
of energy would grow substantially. The move to
cable industry may be mainly divided into four
integrate India's transmission networks through
segments viz: house wiring (up to 440V), LT (1.1
a national grid of inter-regional transmission
to 3.3kV), HT (11 to 66kV), EHV (66kV and above).
lines will facilitate transfer of power from surplus
Well-established R & D facilities are key factors for
regions to deficit regions. The industry has
development of this industry. In India, renowned

68
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 of television. The refrigerator Industry has become
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
fields as well as construction industry.
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 1446.02 Crore respectively.
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. The export and import of Lifts, 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
highly competitive.A number of brands have
entered the market and the consumers have wider
choices. There are two basic designs adopted in
refrigerators presently being manufactured in the
country. These are commonly referred to as Direct
Cool (DC) and Frost Free (FF) Refrigerators. There
has been gradual consumer preference shift
towards frost free segment. Increasing number of
dual income households are shifting the demand
from the conventional 180L refrigerators to the
larger 220L and higher capacity refrigerators with
double doors.
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
Industries and Industrial &
Technical Development
Rs. 2571.44 Crore respectively whereas in 2016-17
(April-Sept) the same was Rs. 970.56 Crore and Rs.
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
costs and improve energy efficiency.
69
 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’ market can be classified into three
segments: window AC, split AC and central AC. The
split ACs are gaining popularity due to limitation
of space and increase in number of people living
in flats in multi-storied complexes and also due
to less noise. Bureau of Energy Efficiency (BEE), a
statutory body under the Ministry of Power has
introduced energy efficiency based star rating for
air conditioners to help consumers buy the best
energy efficient products.
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)
Industries and Industrial &
Technical Development
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
Lead Acid Batteries are accumulators of current
and power which is discharged over a period
of time. They are used in vehicles and also
for various industrial uses such as for back up
power for UPS application, control rooms, power
stations, telecommunications, etc. In addition,
it is also used for emergency lights for houses,
telephone systems and as power source for
mining etc. A new application of Lead Acid
70
Batteries has emerged today in electric vehicles.
The average life of the battery is approximately
2 years, hence these batteries will be needed as
replacement throughout the life of the vehicle
or the machinery in use. Although there are few
large scale manufacturers of the product in India,
there are large numbers of very small scale units
manufacturing the product in a most unorganized
manner. The product manufactured by them
normally does not meet the required standards as
specified by BIS. In order to ensure safe disposal
of lead acid batteries, Ministry of Environment
and forest has issued a notification Batteries
(Management and Handling) Rules, 2001 under
Environment (Protection) Act 1986.
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
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
fluorescent tube light, compact fluorescent lamp,
high pressure mercury vapour lamps, metal halide
lamps, low pressure and high pressure sodium
vapour lamps and variety of special lamps. The
higher energy cost have led to the development
of energy efficient lamps consuming less power
and giving output as close to daylight. Compact
Fluorescent Lamps (CFL) which consume about
20% of the electricity for the same light output
and last up to 8 times longer than the GLS
are getting more popular. LEDs have a great
potential to provide highly efficient lighting with
little environmental pollution in comparison to
the incandescent lamps (ICLs) and fluorescent
lamps (FTLs, CFLs). Penetration of LEDs in India
could significantly reduce lighting load as almost
22-25% of electricity is consumed for lighting,
which is also a major contributing factor of peak
demand. Due to higher costs, LEDs are not very
popular even though its production has started in
the country.
The production of General Lighting Services
(GLS) Lamps by units in the organized sector
and fluorescent tubes in 2015-16 was 6714.39
lakh and 1955.62 lakh respectively. In 2016-17
(April-Oct) production of GLS lamps by the units
in the organized sector and fluorescent tubes was
3494.53 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. The
indigenous manufacturers are manufacturing
bearings of quality and precision at par with world
renowned manufacturers in the diversified range
Industries and Industrial &
Technical Development
of general purpose where the demand is large
to justify indigenous production on economic
consideration. Bearings, generally used for special
applications that require high technology are still
being imported. There is a considerable scope
for development of bearings of smaller size
and lighter weight with improved performance
in harsh operating conditions like high or low
temperature. Automobile industry accounts for
bulk of the total demand of this industry with
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-
71
 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
cluster is known for catering to some specific end
use markets. For example, the Coimbatore cluster
is famous for pump sets castings, the Kolhapur
and Belgaum cluster for automotive castings,
Rajkot cluster for diesel engine castings and
Batala and Jalandhar cluster for machinery parts
and agricultural implements. Advanced countries
like USA, Japan, Germany are unlikely to add much
Industries and Industrial &
capacity due to stringent pollution control norms
Technical Development
there. India can thus have a dominant presence
in this field and can become an important casting
supplier to the world.
The production of steel castings and C.I. castings
in 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
72
instruments and systems required for monitoring
and measurement of physical, chemical
and biological properties. They are used for
measurement and control of process variables
like pressure, temperature, humidity, liquid level,
flow, specific gravity, chemical composition
including pH and many forms of spectrometry
and spectrophotometry. The process control
instruments have become an integral part of the
modern industrial activity. This industry is a key
industry which provides tools for automation.
Their importance is significant in high cost large
and sophisticated process industries like fertilizer,
steel, power plant, refineries, petrochemicals,
cement & other process industries. The present
technology is a microprocessor based 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
different sizes. The wide size range makes them
suitable for use in number of versatile area of
application. The process of manufacture imparts
strength and durability to the pipes and thus can
be used for corrosion – resisting applications.
These pipes are also used for aircraft, missile and
anti-friction bearing, ordinance, etc. Ultra high
strength and corrosion-resistant properties make
these perfect for oil and gas industry, chemical
industry and automobile industry. Oil sector
accounts for around 60% of the total requirement
of seamless pipes. Bearings and boiler sector
contribute around 30% of demand. The Industry
is able to manufacture tubes up to 14” outer
diameter.
The export and import of seamless steel pipes and
tubes industry (HS code 7304) in 2015-16 was Rs.
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 finished
pipes. High performance ERW steel pipes and
tubes possess high corrosion resistance, high
deformability, high strength and high toughness.
These pipes are used in fencing, lining pipes,
oil country tubulars, scaffolding, water and gas
conveyance etc. There has been tremendous
increase in the 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 where
thickness of pipe is more than 25mm and in high
pressure gas pipe line. Helical welded SAW pipes
are used for low pressure applications. The cost
of helical SAW pipes is less than longitudinal
pipes. There is huge demand of SAW pipes in the
country due to transportation of oil and gas and
transmission of water.
The export and import of SAW pipes Industry (HS
code 7305)in 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 India may be classified
into two segments: high tensile and mild steel
fasteners. High tensile and mild steel fasteners
broadly include nuts, bolts, studs, rivets and screws.
Mild steel fasteners are primarily manufactured
by the unorganized sector while high tensile
fasteners requiring superior technology are
dominated by companies in the organized sector.
Automobile industry accounts for bulk of the total
demand of this industry. Consumer durables and
railways are the other primary users of the high
tensile fasteners. Automobile sector is likely to
drive growth in the fastener industry.
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
Industries and Industrial &
Technical Development
production of durable goods. The composition
of the Indian forging industry can be categorized
into four sectors - large, medium, small and
tiny. A major portion of this industry is made up
of small and medium units/enterprises (SMEs).
The industry was previously labour intensive
but with increasing globalization it is becoming
more capital intensive. Among the industries that
depend on forgings are automotive; agricultural
machinery and equipment; valves, fittings, and
petrochemical applications; hand tools and
hardware; off-highway and railroad equipment;
general industrial equipment; ordnance, marine
and aerospace. The key driver of demand of
forging is the automobile industry. About 65% of
the total forging production is used in this sector.
73
 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
located in Punjab and Tamil Nadu with Ludhiana
(Punjab) being a major Bicycle production hub.
The industry is making endeavor for enhancing
export since there is a significant scope for export
of Indian bicycles, bicycle spare parts and bicycle
accessories. Bicycle companies in India are now
focusing on urban markets and are looking
to expand their base in the professional and
adventure categories.
The production of all kinds of bicycles in the
organized sector in 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
Industries and Industrial &
Technical Development
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,
74
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 labeling machines, strip packaging, form fill
and seal machines, carton filling, fully automatic
bag making machinery and automatic micro
processor controlled packaging machines.
The export and import of packaging machinery
industry (HS code 842220 to 842240) in 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.
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
and effluent treatment plants. Water/waste water
treatment 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
the first step in the treatment process and involves
the removal of pollutants that settles or floats.
The common industrial equipments are clarifiers
and oil – water separator devises. The secondary
treatment is designed to substantially degrade the
biological content of the sewage. The common
equipments are activated sludge, filters, biological
reactors etc. The tertiary treatment is a polishing
step to remove contaminants that missed in the
primary and secondary treatment and removal
of suspended solids, refractory organics and
toxic components. Tertiary physical processes
are filtration and carbon absorption. Chemical
process includes precipitation, oxidation and
neutralization. The biological processes involve
biodegrading. Organisms such as bacteria, fungi,
yeasts and algae are commonly used to break
down the organic matters. The cell tissues are
then removed from the treated water by physical
method like clarification. The complete plants are
manufactured mostly in the organized sector and
many equipments are manufactured in the MSME
Sector as well.
The export and import of Water Pollution Control
Equipment (HS code 842121) in 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
large towns has assumed great significance with
the adoption of stringent environmental control
standards for various industries. Hence the
pollution control equipment industry has acquired
importance. Further judicial pronouncements
have given a definite direction and urgency for
adoption of air pollution control measures. The
choice of control method depends on factors
such as the nature of pollutant, flow-rate (amount
of pollutant emitted), particle size and desired
collection efficiency. The air pollution control
equipments are broadly classified under the
categories such as Settling Chambers, Cyclone
and multi –cyclones, Bag Filters, Wet Scrubbers,
Spray Tower, Venturi Scrubber, Ionizing Scrubber
and Electrostatic Precipitator. The industry is in a
position to do basic and detailed engineering and
supply of plants on turnkey basis.
The export and import of air pollution control
Industries and Industrial &
Technical Development
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,
75
 elevators, kilns, separators, cranes and lubrication
systems. Gearbox is defined as a metal casing in
which a train of gears is sealed. The manufacture
of gears and gear boxes involve high precision
machining and accurate assembly as mechanical
power is to be transmitted noiselessly and with
minimum losses. Different types and sizes of
gears such as spur gears, helical gears, worm
gears, spiral gears and many other kinds are
manufactured in the country. The demand for
gears and gear boxes predominantly depend on
the growth of industrial machinery, machine tools,
and consumer & automobile sector. Considering
the industrial growth prospects, particularly in
automobile sector, the demand for gears and
gear boxes is expected to grow at a healthy pace.
The export and import of gears and gearing (HS
code 848340) in 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: imported in the country.
1. Export-Import Data – Export-Import Data
Bank, D/o Commerce.
2. Production Data – Industrial Statistics Unit,
DIPP
Industries and Industrial &
Technical Development
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
Loan Scheme, assured a robust demand for paper
and 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
76
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
The production of paper and paper board in the
year 2015-16 stood at around 17 million tonnes
(estimated figure) as compared to 16.63 million
tonnes 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
previous year (2014-15) this figure stood at 1.36
million tons. On the other hand about 0.64 million
tons of paper and paper board was exported in
the year 2015-16, up from a figure of 0.60 million
tons 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
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 to 1.02 million tons (Estimated figures)
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 to Off the Road tyres for Earthmovers which
weigh 1.5 tonnes, Bias Ply tyres to rugged all steel
radial truck tyres to high performance passenger
car radial and tubeless tyres etc. India is one of
the few countries worldwide which has attained
self sufficiency in manufacturing a wide range of
tyres for all applications.
Salient features of tyre industry:
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
Indian Companies (MRF Ltd., Apollo Tyres
and 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
Industries and Industrial &
Technical Development
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 Pacific
Trade Agreement (8.6%), ASEANFTA (7%), Indo-
Sri Lanka Agreement, IndoSingapore Agreement,
77
 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
and Tubes for Automotive vehicles was notified
by this Department on 19th November, 2009 in
exercise of the power conferred vide Section 14 of
the BIS Act, 1986. The Order prohibits import, sale
or distribution of pneumatic tyres and tubes which
do not conform to the specified Bureau of Indian
Standards (BIS) standard and which do not bear
the standard mark. This means the manufactures
are required to obtain licences from BIS for use of
standard mark to enable them to sell or distribute
pneumatic tyres and tubes conforming to the
specified standard. The Quality Control Order,
2009 has come into force w.e.f. 13th May, 2011.
In terms of the Clause 3(1) (f) of the said Quality
Control Order, a Committee has been constituted
under the Chairmanship of Additional Director
General of Foreign Trade to finalize the list of
tyres which are not manufactured domestically
Industries and Industrial &
and to be imported by Original Equipment
Technical Development
Manufacturers (OEMs). The Committee last
reviewed and finalized a list of 690 sizes of tyres
(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
78
was met through imports. Since then, India has
made tremendous progress in production of salt,
achieving self-sufficiency in 1953 and exporting
salt to other countries.
Salt is one of the essential items of human
consumption. The per-capita consumption
of salt in the country is estimated to be 14 Kg,
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
the last five years are as under :
(Figures in Lakh MT)
Year Target Production
2012-13 240 245.47
2013-14 220 230.19
2014-15 270 268.87
2015-16 270 276.43
2016-17 (up to Nov.) 270 179.34
Salt of high purity is needed for iodization and to salt iodization units including 128 refineries &
meet the needs of industrial sector. To achieve washeries (capacity 139 lakh ton) with an annual
the required level of purity by upgrading raw installed capacity of 224 lakh ton upto March
salt, Salt Commissioners Office (SCO) has till date 2016. All the salt iodization units are registered
facilitated establishment of 128 salt washeries / with Salt Commissioner. The production and
refineries with an annual installed capacity of 139 supplies of iodized salt during the last five years
is as under:-
lakh ton. All the units are registered with Salt
Commissioner Organization. (Figures in Lakh MT)
Salt Works and Area under Salt Production Year Production Supplies
2012-13 61.81 58.64
There are about 11794 salt works out of which only 2013-14 58.47 55.08
2014-15 64.54 60.59
5.7% i.e. 675 are big salt works contributed about
2015-16 64.76 62.43
66.2% of total salt production of the country and 2016-17 (up to Nov.) 43.35 41.28
remaining 33.8% of the total salt production is
contributed by the small salt manufacturers. The SCO periodically reviews the availability, price and
total area under salt production is about 6.10 lakh quality of iodized salt, in association with state
acre. (Patta land, State Govt. land, Port land, Salt governments, iodized salt manufacturers, traders
Department land).Out of which 58569 acres land and other stake holders.
belongs to Salt Department for manufacture of
Salt. The manufacturing activities provide direct Exports
employment to about 1.11 lakh persons. Export of common salt and iodized salt is permitted
under Open General License (O.G.L) India exports
Distribution of Salt
salt to Japan, Vietnam, UAE, Qatar, Korea, China,
Railways play an important role in transporting Malaysia, Nepal, Bangladesh, Indonesia, Bhutan,
salt from the three major salt producing States to Hong Cong and Singapore etc. Export of salt
others. About 65% of edible salt is transported during the last five years is as under :
by rail from production centres and the remaining Year Quantity in Lakh MT Value in Lakh Rs.
quantity by road/sea route. Salt is transported 2012-13 50.04 67943.95

Industries and Industrial &

Technical Development
2013-14 58.47 84439.78
by rail under Preferential Traffic and sponsored
2014-15 56.76 83866.58
programmes on requirement basis. Railways grant 2015-16 65.67 78945.42
graded concession in freight for transportation of 2016-17 (up 40.68 44202.64
to Nov.)
non refined iodized salt depending upon distance.
Labour Welfare Activities and Development
Iodized Salt
Works
For human consumption, edible salt needs to be
(i) SCO is paying special attention to the
iodized to prevent and control Iodine Deficiency welfare of labourers engaged in salt
Disorders (IDD). SCO has been identified as industry by extending financial assistance
the Nodal Agency for creation of adequate salt for executing various welfare schemes, viz.
iodization capacity, monitoring production and - Medical facilities to salt workers and
quality of iodized salt at production centres their families.
and monitoring distribution of iodized salt in
- Drinking water facilities in salt works.
the country, under National Iodine Deficiency
Disorders Control Programme (NIDDCP) being - Education facilities and financial
implemented by the Ministry of Health & Family assistance to the children of salt
labourers.
Welfare. SCO has facilitated establishment of 706

79
 - Rest sheds and crèches in salt works.
- Recreation facilities to labourers and
their wards.
- Cash Rewards to the children of Salt
Workers.
Year Development Labour Welfare
Works
2012-13 5.66
2013-14 33.92
2014-15 1.52
2015-16 9.49
2016-17 1.18
(upto Nov.)
(ii) Health-cum-Eye Camp & Sports Meet
In the financial year 2014-15, 23 health camps
and 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
Industries and Industrial &
is proposed to organize 30 General Health cum
Technical Development
eye camps and 10 sports meets for benefit &
recreation of salt labourers during the year 2016-17.
(iii) Model Salt Farms and Industry, Department of Industrial Policy
SCO is making efforts to educate salt manufactures
in general and small salt producers in particular
for improving the quality of salt to meet the
stringent standards of industrial salt, in order to
compete in the international market.
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 of
salt works and proper brine management and
transfer of technology to the salt manufacturers.
80
In addition, financial assistance is provided for
undertaking various schemes for the benefit of
salt industry. The expenditure on development
and labour welfare works during last five years is
as under:-
(Figures in Lakh Rs.)
Other Total
Works Works Expenditure
91.44 24.63 121.73
38.13 49.33 121.38
11.63 61.76 74.91
25.80 - 35.29
- 29.76 30.94
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 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
master trainers were organized by the Central Restructuring of SCO
Salt and Marine Chemical Research Institute,
In pursuance of Expenditure Reforms Commission
(CSMCRI) Bhavnagar for 40 master trainers in two
Report, Office of the Salt Commissioner,Jaipur
batches @ cost of Rs.5.00 lakh each. These master
hasbeen restructured. Out of existing 147 offices
trainers will impart trainings to salt workers for
only 65 offices have been retained. The remaining
technology upgradation. As per the revised
82 offices have been closed/merged. Orders have
guidelines. Besides it 2 training programmes for
been issued to reduce existing staff strength of
the Salt laboureres of Andhra Pradesh were also
434 to 306.
organized during 2015-16. During 2016-17 (up to
Sept.) 2 training programmes for Salt labourers of
Tamil Nadu have been organized.

Industries and Industrial &

Technical Development

81
 Chapter 10
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
UNIDO
enhance cooperation, establish dialogue
and develop partnerships. India is a founder Member of the UNIDO. It
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
82
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 financial
matters. The Committee meets once a year.
India’s Contribution
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
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 and
the 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. Policy and Promotion (DIPP), Ministry of
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 the
recent 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 12 Five Year Plan by the Government
th
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 and
strategic 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
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
UNIDO
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:
83
 • Identifying and transferring the best and of SMEs through technology-led
proven technology-led solutions from interventions.
India to developing countries (particularly
• Serving as a model centre of excellence for
the LDCs), under the South-South
promoting targeted interventions in select
Cooperation framework.
industrial and manufacturing sectors.
• Promoting the introduction of advanced
Portfolio of projects under IC-ISID
manufacturing technologies to the
manufacturing sector in India to strengthen The portfolio of project under IC-ISID is as given
the productivity and c o m p e t i t i v e n e s s in the table below:

Projects pertaining to Indian industries

1 Leather Kanpur leather development project
Development & adoption of appropriate technologies for enhancing productivity in
2 Cement
the cement sector
Development and adoption of appropriate technologies for enhancing productivity in
3 Paper
the paper and pulp sector
Development and adoption of appropriate technologies for enhancing productivity in
4 Bicycle
the Indian bicycle and bicycle parts sector
International projects under South-South cooperation
5 Neem Promotion of Neem derived bio-pesticides in West Africa (Ghana, Nigeria, Sierra Leone)
Strengthening the technical service capabilities of the Kenya Industrial Research
6 KIRDI 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
UNIDO
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

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,
waste management, energy efficiency, etc. A brief
description of the activities undertaken under
each of the projects in 2016 is given below:
Leather project
The project’s specific objectives are sustainable
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
workshops on environmental certification; on-site
demonstration 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

84
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
Leather Panel portal; a feasibility study for waste
management 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
UNIDO
(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 testing
facility which assumes increased significance on
85
 account of road safety aspect. The project has (ii) 2nd Steering Committee meeting was
been recently approved and is in initial phase of held in April, 2016 under the chair of
commencement. Joint Secretary, DIPP. Steering Committee
meeting is the main decision making body
Important developments during 2016:
for strategic planning, overall coordination
(i) 4th National Steering Committee meeting and management of ICISID. SC holds its
was held in March, 2016 under the meeting twice a year.
chairmanship of Secretary, DIPP for
(iii) 50th Anniversary of UNIDO and 44th session
monitoring, approval and effective
of Industrial Development Board (IDB) was
coordination of the projects in India for
held during 21st – 25th November, 2016 at
UNIDO Country Programme (Addendum)
Vienna, Austria. Indian delegation led by
2013-17. NSC holds its meeting twice a
Smt. Ravneet Kaur, Joint Secretary, DIPP
year.
attended the programmes.
UNIDO

Stakeholders 44th session of Industrial Development Board

86

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. Significant
changes 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:
Chapter 11
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 automatic
route 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
been defined to bring clarity.
Food Product Retail Trading
With a view to benefitting farmers, give impetus
to 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
Foreign Direct Investment
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
87
 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 to
three 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.
opening of the first store for entities undertaking
single 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);
100%
(4) Mobile TV;
Automatic
(5) Headend-in-the Sky Broadcasting Service(HITS)
5.2.7.1.2 Cable Networks (Other MSOs not undertaking upgradation of net-
works towards digitalization and addressability and Local Cable Operators
(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
Foreign Direct Investment

by existing investor to new foreign investor, will require Government approval.

Private Security Agencies Pharmaceutical

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.
(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 brownfield
pharmaceuticals. FDI beyond 74% has

88
 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 in brownfield pharmaceuticals, under
both 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
maintained over the next five years
at an absolute quantitative level. The
benchmark for this level would be
decided with reference to the level
of production of NLEM drugs and/or
consumables in the three financial
years, 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 years
immediately 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
Brownfield Airport projects.
(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
For establishment of branch office, liaison office
or project office or any other place of business in
India if the principal business of the applicant is
Defence, Telecom, Private Security or Information
Foreign Direct Investment
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
89
 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 in financial services activities
regulated by financial sector regulators such as
RBI, SEBI, IRDA etc. will be permitted for 100% FDI
under the automatic route. In financial services,
which are not regulated by any financial sector
Foreign Direct Investment
90
regulator or where only part of the financial
service 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 other
capital is US$ 467.35 billion (April, 2000 –
November, 2016). During the calendar year 2016
(up to November, 2016), FDI equity inflows of US$
43.06 billion have been received. This represents
increase of 24% over the FDI equity inflows of US
$ 34.69 billion received during the corresponding
period.
The FDI equity during the current financial year
2016-17 (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% from
US$ 67.30 billion to US$ 103.43 billion over the
preceding period of 32 months (August, 2011 to
March, 2014).
 Chapter 12

International Cooperation (IP&IC)

Investment Promotion &
Investment Promotion & International
Cooperation (IP&IC)
Investment Promotion and International (i) Organization of Joint Commission
Cooperation (IP&IC) for enhancement of external Meetings;
economic engagement is undertaken through (ii) Organization of business and investment
bilateral as well as multilateral arrangements. promotion events;
There are four IP&IC divisions in DIPP to carry
(iii) Project Management, Capacity Building,
out the said functions, viz. IP&IC-I (Asia–Oceania
Monitoring and Evaluation;
region- Excluding West Asia and Japan), IP&IC-II
(Europe), IP&IC-III (North & South America and (iv) Establishment of G2B portal/ e-Biz Pilot
CIS Countries) and IP&IC-IV (Africa and Middle Project;
East). Investment Promotion and International (v) Foreign Travel;
Cooperation activities in r/o Japan are handled by
ID-I Division. (vi) Setting up of country focus desks for
promoting investment;
IP&IC Divisions are responsible for dissemination
(vii) Multi media audio visual campaign; and
of information about investment climate and
opportunities in India and investment facilitation. (viii) Creation of a dedicated investment
promotion agency.
IP&IC Divisions’ endeavor to increase economic
cooperation with developing, as well as developed IP&IC Divisions act as nodal point for the
countries, for mutual benefits through different following Joint Commissions/ Inter-Governmental
fora, such as Joint Commissions/ Joint Committees, Commissions:
other bilateral channels like interaction with (i) The India-Libya Joint Commission
the delegations visiting the country, organizing
(ii) The India-Hungary Joint Commission on
visits abroad for discussions on issues of mutual
Economic Cooperation.
interest and business/ investment meets between
Indian and foreign entrepreneurs, with the aim of (iii) The India-Belarus Inter Governmental
stimulating foreign investment into India. DIPP Commission for Economic, Trade,
is also the nodal department for all bilateral as Industrial, Scientific, Technological and
well as multi-lateral CEOs’ Fora which is primarily Cultural Cooperation.
engaged in promoting B2B engagements for
(iv) The India-Sweden Joint Commission
promotion of economic relation.
for Economic, Industrial, Technical and
IP&IC Divisions implement the ‘Scheme for Scientific Cooperation.
Investment Promotion’ which has the following (v) The India-Poland Joint Commission for
components:- Economic Cooperation.

91
 (vi) India-Taiwan Secretary-Vice Ministerial
level Economic Consultations.
International Cooperation (IP&IC)
The major activities undertaken by IP&IC Divisions
during 2016-17 were as under:
Investment Promotion &
(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, DIPP led an official-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.
92
• 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 specific
issues 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 attract
investments.
• Meeting with officials of Govt. of
Mauritius: An official delegation led by
Shri 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
efforts to take forward the India–Mauritius
Comprehensive 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
 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-Sri Lanka Business Forum
meeting 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 by
Joint 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 Launch event for Korea
International Cooperation (IP&IC)
Plus was organized in Seoul 9th November,
Investment Promotion &
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-Vice Ministerial Level
Economic 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 5 meeting of India-
th
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.
93
 • India-Russia Working Group on • India-US Strategic and Commercial
Modernization and Industrial Dialogue: The second meeting of the
Cooperation (JWG): The 5th meeting of Commercial track of the India US Strategic
International Cooperation (IP&IC)

the JWG was organised in New Delhi on and Commercial Dialogue was organised
Investment Promotion &

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 & progress made under the two Working
Information Technology, Chemicals &
Petrochemicals, Pharmaceuticals, Coal,
Transportation and Industrial Machinery,
Power, Urban Development, Shipbuilding
industry, Water treatment and Industry
sector.
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
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.

94
• India-US CEOs Forum: The third meeting by the CEO Forum in 2015.
of the re-constituted India-US CEOs
• India-Russia Working Group on Priority
Forum was organised in New Delhi on

International Cooperation (IP&IC)

Investment Projects: The 4th meeting
August 30, 2016. The Minister of State
of the India-Russia Working Group on

Investment Promotion &

(I/C) for Commerce and Industry, Ms
Priority Investment Projects was organised
Nirmala Sitharaman and US Commerce
on September 13, 2016, in New Delhi
Secretary Penny Pritzker led the two sides
which was co-chaired by Shri Ramesh
in the meeting. The meeting was attended
Abhishek, Secretary, Department of
by the Indian and US co-Chairs Mr. Cyrus
Industrial Policy & Promotion and Mr. A.V.
Mistry and Mr. Dave Cote respectively. In
Tsyboulsky, Deputy Minister of Economic
the meeting, the two co-Chairs submitted
Development of the Russian Federation.
a comprehensive report including
A Protocol was signed by the two sides
action taken report on the previous
highlighting the areas of cooperation in
recommendations of the Forum and a set of
sectors like Chemicals & Petrochemicals,
new recommendations in specific sectors
Heavy Industries, Revenue, Civil Aviation,
for enhancement of bilateral economic
Defence, Fertilizers, Mines, Road Transport
relation between the two countries. Both
& Highways, Urban Development, Space,
Sides appreciated the follow-up action by
Electronics and Information Technology,
different government departments and
Petroleum & Natural Gas, Steel, etc.
agencies on the recommendations made

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 

95
 • India-US Trade Policy Forum: Ms.
Nirmala Sitharaman, Minister of State (I/C)
International Cooperation (IP&IC)
for Commerce and Industry and the US
Trade Representative Ambassador Michael
Investment Promotion &
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
Ms. Nirmala Sitharaman, MoS (I/C) for Commerce & Industry in a bilateral meeting with the Minister
for Enterprise & Innovation, Sweden, Mr. Mikael Damberg, during the first meeting of the India-
Sweden Business Leaders’ Round Table, New Delhi, November 09, 2016.
96
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 Gerry
Grimstone, Chairman, Standard Life from
UK 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. Marcus
Wallenberg, Chairman, SEB from Sweden
side.
• ‘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
of PLAST FUTURE EAST-2016 held during
18-20 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
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,
of the Republic of Indonesia to India on
December 12-13, 2016.
International Cooperation (IP&IC)
(C ) Other important activities
Investment Promotion &
• 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, a special initiative to promote and
facilitate Korean Investments in India on
18th June 2016 in New Delhi.
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
97
 was held in Berlin on January 13, 2014 and Zusammenarbeit (GIZ), GmbH from Germany and
the 2nd Meeting was held on 18th October, CII and FICCI from India. DIPP is handling the inter
International Cooperation (IP&IC)

2016 at New Delhi. se coordination between the two sides. Around

600 Indian managers have undergone the training
The programme is being implemented by
Investment Promotion &

since the launch of the programme.

Deutsche Gesellschaft für Internationale

98

Protection of Intellectual
Property Rights
India – A Robust, TRIPS compliant IPR
Regime
In the 21st century, a nation’s progress is defined
by 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 international
regime to address its developmental concerns.
India has a TRIPS compliant, robust, equitable and
dynamic IPR regime.
The Indian IP system maintains a fine balance
between private rights through IPRs on one hand,
and rights of the society as public interest on the
other hand. 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
Agreement and Public Health which clarifies that
TRIPS 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
Chapter 13
Protection of Intellectual Property Rights
(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-defined and structured legislative framework
which comprises of the following Acts, supported
by rules made thereunder:
1. The Patents Act, 1970 (amended in 1999,
2002 and 2005) [administered through
the Patent Office ( HQ ), Mumbai, Chennai
and 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 circuitry
elements 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
99
 Intellectual Property Organization (WIPO).
To support the Legislative framework,
the Department has in place a dedicated
administrative architecture of various offices with
Protection of Intellectual Property Rights
clear demarcation of responsibilities.
Office of the Controller General of Patents,
Designs and Trade Marks (CGPDTM)
The Office of the Controller General of Patents,
Designs and Trade Marks (CGPDTM), a subordinate
office, with headquarters at Mumbai is primarily
concerned 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 office
was 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
function of the Copyright office is to undertake
registration of copyrights. Copyright subsists in
the following classes or works:
• Original literary, dramatic, musical, and
artistic works;
• Cinematographic films; and
• Sound Recording
100
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 provisions
of the Semiconductor Integrated Circuits Layout
Design Act 2000. The Registry was established
with Head Office at Ministry of Electronics and
Information Technology (MeitY), the erstwhile
DeitY, vide notification dated 1st March 2004
and was operationalised w.e.f. 1st May 2011.
So as to bring all IPR related activities under a
single umbrella, the subject matter related to
the Semiconductor Integrated Circuits Layout
Design (SICLD) Act 2000 and the Semiconductor
Integrated Circuit Layout Design (SICLD) Rules
2001 has been transferred to this Department in
December 2016 consequent to amendment in
the Government of India (Allocation of Business)
Rules, 1961. The Registry examines the layout
designs of the Integrated circuits and issues the
Registration Certificate to the original layout
designs of semiconductor Integrated Circuits.
Two Semiconductor Integrated Circuit Layout
Designs 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.
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.
This was then taken up by DIPP for finalization.
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 and
other 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 of
society
 Objective 2: Generation of IPRs - To
stimulate the generation of IPRs
 Objective 3: Legal and Legislative Frame-
work - To have strong and effective IPR
Protection of Intellectual Property Rights
laws, 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,
where Nodal Departments/ Ministries, specifically
identified for specific objectives, can upload the
milestones 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
ensure effective implementation of the National
IPR Policy 2016 in collaboration with various
101
 stakeholders in its journey of making a Creative
and Innovative India, working hand in hand
with the office of the Controller General of
Patents, Designs & Trade Marks (O/o CGPDTM).
In collaboration with Industry Associations, 19
Protection of Intellectual Property Rights
awareness programmes were held in June - July
2016 across 18 states.
Towards strengthening the enforcement
mechanism, CIPAM organized seven batches of
training programmes for Police officials in State
of Andhra Pradesh and a three-day interactive
training programme for APOs and Police Officials
in 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 on
Enforcement 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
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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
awareness generation in the field of Intellectual
Property with WIPO, South Centre, European
Patent Office, and Ministry of Economy, Finance
and Industry, of the Republic of France as also a
Memorandum of Cooperation with Japan Patent
Office (JPO).
Latest in the series are Memoranda of
Understanding signed with Intellectual Property
Office of Singapore (IPOS), and Intellectual
Property Office of United Kingdom (UK IPO), in
the months of October and November, 2016,
respectively.
Achievements in the field of IPRs
1. Infrastructure
Additional requirement of office space and
expansion 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.
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 existing strength of 130 examiners.
While the first batch of 286 examiners have
completed their training and are engaged
in actual examination work, the second
batch of 108 examiners is undergoing
training at the respective patent office
locations.
The proposal to fill up 58 posts of
Examiners of 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, created under
12th Plan, have been filled up through
the promotion mode. Further, four Senior
Examiners of Trademarks and Geographical
Indications, who were selected through
direct recruitment by Union Public Service
Commission have joined in the Office of
CGPDTM.
100 Contract Examiners for Trade Marks
have been recruited by the office of
Controller 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
Protection of Intellectual Property Rights
patent applications. Startups have to pay
patent fees including filing fee at par with
a natural person only; thereby providing
80% fee concession in patent fees as
compared to other legal entities. So far,
61 Start Ups have availed benefit of fee
rebate.
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 fully
compatible for online filing of all Forms
and 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
online filing of Trade Mark applications and
submission of other Forms in trademarks
has been provided.
Online filing of patent applications and all
related 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
Protection of Intellectual Property Rights
i sa simple, facilitative and cost effective
system 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
Trademark Office for confirming protection
of such marks in India. On the other hand,
Indian Trade Marks Office received 559
applications for international registration
of trademarks under the Madrid Protocol,
out of which 508 applications have been
certified and for warded to the WIPO
and 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 set
up 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 2044
international applications choosing India
as ISA, requesting for international search
104
reports and 47 applications choosing
India as IPEA for international preliminary
examination.
9. IPR Awareness and Training
Activities
The office of CGPDTM provides financial
support 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 resource
persons 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 organize
various 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 w o r k -flow for patent
processing has resulted in enhanced
 speed of patent processing, examination
and grant, improved service to stake
holders, transparency and reliability.
A significant achievement during this year
is removing the discrepancy earlier existing
among four branch offices with respect to
time when RQs in the same group used
to be taken up for examination. Requests
of Examination (RQ) across four branch
office filed in a particular examination
group have been merged to form a single
queue based on RQ Filing Date, which are
allocated for examination automatically
through a system. Thus, auto-allocation
of Requests of Examination (RQ) is
irrespective of the number of examiners
/controllers at a specific patent office
location. Further, physical presence of an
examiner at a particular location has also
become insignificant.
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 with
correct 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
Protection of Intellectual Property Rights
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.
It is to fill this very important lacuna that
the 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
itself in various technological fields.
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
105
 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 of
Protection of Intellectual Property Rights
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

IP 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
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 certain
cases 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 to
another, utilizing specialized technical manpower
more efficiently. Expedited Examination is now
permitted 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
benefit of fee rebate.

Global Innovation Index (GII)

In the recently released GII 2016 report, India has moved up by 15 places, reaching a rank of 66.
India moved up by 2 ranks to 6th position in Lower Middle Income Economies. The report mentions that “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.

106
 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.

Protection of Intellectual Property Rights

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 Disposal
2005-06 24505 11569 4320 NA
2006-07 28940 14119 7539 NA
2007-08 35218 11751 15316 15795
2008-09 36812 10296 16061 17136
2009-10 34287 6069 6168 11339
2010-11 39400 11208 7509 12851
2011-12 43197 11031 4381 8488
2012-13 43674 12268 4126 9027
2013-14 42950 18306 4225 11672
2014-15 42763 22631 5978 14328
2015-16 46904 16851 6326 20429
2016-17 33193 15649 6347 15910
2. Designs
Year Filed Examined Registered
2006-07 5521 4976 4250
2007-08 6402 6183 4928
2008-09 6557 6446 4772
2009-10 6092 6266 6025
2010-11 7589 6277 9206
2011-12 8373 6511 6590
2012-13 8337 6771 7250
2013-14 8533 7281 7178
2014-15 9327 7459 7147
2015-16 11108 9426 7904
2016-17 7612 9503 5421

107
 3. Trade Marks
Year Filed Examined Registered Disposal
2006-07 103419 85185 109361  NA
2007-08 123514 63605 100857  NA
Protection of Intellectual Property Rights

2008-09 130172 105219 102257 126540

2009-10 141943 25875 67490 76310
2010-11 179317 205065 115472 132507
2011-12 183588 116263 51765 57867
2012-13 194216 202385 44361 69736
2013-14 200005 203086 67873 104753
2014-15 210501 168026 41583 83652
2015-16 283060 267861 65045 116167
2016-17 209563 416821 160363 184168

4. Geographical Indications
Year Filed Registered
2006-07 33 3
2007-08 37 31
2008-09 44 45
2009-10 40 14
2010-11 27 29
2011-12 148 23
2012-13 24 21
2013-14 75 22
2014-15 47 20
2015-16 17 26
2016-17 30 21

5. Copyright
Calendar Year Number of Received Applications Number of applications processed
2012 13194 10555
2013 12148 9718
2014 14378 11502
2015 13171 10537
2016 16889 9823

IPR Trends (Till December in F.Y. 2016-17 vis a vis F.Y. 2015-16)

108
Protection of Intellectual Property Rights

109
 Protection of Intellectual Property Rights

110

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 independent
inspecting 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
resulted in a simplified and more accessible, user
- friendly framework for the administration of the
Boilers Act and has also protected manufacturers/
users' interests without sacrificing the safety of
boilers.
Chapter 14
Administration of the Boilers Act, 1923
For “Ease of Doing Business”, the concept of self-
certification and third party inspection of boilers
has 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/third party inspection of boilers
during use. This will benefit a broad spectrum
of industries both in large and small scale sector
which includes Power plants, Chemical plants,
Refineries, Paper plants, Steel plants, Sugar mills
and other process industries.
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
111
 State Governments, Bureau of Indian Standards,
Boiler and boiler component Manufacturers,
National Laboratories, Engineering Consultancy
agencies, users of Boilers and other interests
connected with the Boiler Industry.
Secretary, Department of Industrial Policy
and Promotion is the ex-officio Chairman and
Administration of the Boilers Act, 1923
Technical Adviser (Boilers) is the ex-officio
Member-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
persons for inspection and certification of boilers
and 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,
Material Testing laboratories and Remnant Life
Assessment Organisation under the Indian Boiler
Regulations, 1950 and granted recognition/
renewal in Sixty five cases during the period
under report. Authorisation Cards also issued to
competent persons for inspection and certification
of 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.
112
(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 for
submissions to the Central Boilers Board.
(v) Evaluate quality management systems
and production facilities of various firms
in 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 safety and quality
of the boilers and its components.
(vi) Evaluate inspection systems and
performance of firms for their recognition
as Inspecting Authorities for inspection
and certification of boilers and boiler
components in India and 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
 regarding amendment of the Indian Boiler (xi) Authorise “Competent Persons” for
Regulations, 1950 in line with the latest inspection and certification of boilers
technological developments all over the and boiler components in India during
world. manufacture, erection and use.

(ix) Interpret the provisions of the Indian One-day/Two days workshops on Efficient Boiler
Boiler Regulations, 1950. Operation and maintenance to apprise the
owners of boilers of the steps to be taken to
(x) Deal with problems which are thrown up

Administration of the Boilers Act, 1923

optimize the efficiency of their working boilers are
by the manufacturers and users of boilers
being continuously conducted through National
and others concerned and give necessary
Productivity Council to popularize the measures
advice and guidance.
for energy conservation.

113
 Chapter 15

Attached & Subordinate Offices and

other Organisations
Office of the Economic Adviser Policy oriented functions
Attached & Subordinate Offices and other Organisations

The Office of the Economic Adviser(OEA) was
set up in 1937. This Office renders advice to the
Department 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
by the Office of the Economic Adviser.
The Office of the Economic Adviser renders advice
on trade, taxes, investment, fair trade practice
including anti-dumping and safeguards, and
labour related issues.
Among the time bound statistics related mandates
of the Office are, compilation and dissemination
of 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
The main functions of the Office of the Economic
Adviser include the following:
• 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 changes in tariff structure including
cases of Inverted duty (both MFN
& FTA). CENVAT accumulation, duty
drawback etc..
o changes in tax policy, procedures
and fiscal incentives.
• 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

114
 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
The Office coordinates the following work:-
 The work relating to preparation of
Monthly Summary for the Cabinet
highlighting monthly IIP Growth rate,
manufacturing growth rate, investment
scenario, FDI, inflation position etc.,
 Monthly D.O. letter to the Cabinet Secretary
regarding important achievements during
the month.
 Coordinating for the material regarding
Pre-Budget Economic Survey, material for
the Speech of President of India, Prime
Minister, Finance Minister.
 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-ministerial Committee on Non-Tariff
measures.
 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. Office of Economic Adviser, functions
as the secretariat of the Committee and appraising
agency for projects received by the Committee.
Departments/Ministries Allocated to O/o EA
Attached & Subordinate Offices and other Organisations
(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 and
releases 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,
115
 iv) Postal, v) Telecommunication, vi) Air Transport,
vii) Port Services, viii) Insurance, ix) Rail Transport
and x) Road Transport were identified for the initial
phase 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
Attached & Subordinate Offices and other Organisations
five sectors viz., Rail Transport, Banking, Postal
Services, Telecom (Cellular) and Air Transport have
been developed. The Indices for these sectors
along with their methodologies are available in
the public domain on the website of the Office
of 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
the Office of Economic Adviser.
• 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
116
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:
Table (A): Financial Year Wise WPI (Base: 2004-05=100)

Period All Commodities Primary Articles Fuel & Power Manufactured Products
Wt. (100.00) Wt. ( 20.12) Wt. (14.91) Wt. (64.97)
2005-06 104.47 104.30 113.58 102.42
2006-07 111.35 114.33 120.92 108.22
2007-08 116.63 123.85 120.96 113.39
2008-09 126.02 137.53 134.95 120.38
2009-10 130.81 154.94 132.10 123.05
2010-11 143.32 182.44 148.32 130.07
2011-12 156.13 200.32 169.03 139.51

Attached & Subordinate Offices and other Organisations

2012-13 167.62 219.97 186.49 147.06
2013-14 177.64 241.61 205.43 151.46
2014-15 181.19 248.80 203.49 155.12
2015-16 176.67 249.58 179.75 153.42
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 5.66
2007-08 4.74 8.33 0.03 4.78
2008-09 8.05 11.05 11.57 6.16
2009-10 3.80 12.66 -2.11 2.22
2010-11 9.56 17.75 12.28 5.70
2011-12 8.94 9.80 13.96 7.26
2012-13 7.36 9.81 10.33 5.41
2013-14 5.98 9.84 10.16 2.99
2014-15 2.00 2.98 -0.94 2.42
2015-16 -2.49 0.31 -11.67 -1.10
2016-17* (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 2.87, while during same period for Primary Articles,
inflation for ‘All Commodities’ based on WPI was Fuel & Power and Manufactured Products stood
minus 2.49, while rate of inflation for Primary at 4.87, 1.47 and 2.25 respectively.
Articles, Fuel & Power and Manufactured
Working Group Report for Revision of Current
Products stood at 0.31, minus 11.67 and minus
Series of Wholesale Price Index:-Based on the
1.10 respectively. However, rate of inflation for
recommendations of the Working Group for
‘All Commodities’ during F.Y. 2016-17 (upto
revision of the current Series of WPI (Base 2004-
December, 2016) was provisionally estimated at

117
 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.
Attached & Subordinate Offices and other Organisations
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 industry
consultations 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 for
correction to provide level playing field to the
domestic 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 part
of 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 to
India-Brazil Bilateral Investment Treaty in New
Delhi and Brazil.
118
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 the
result of the refinement and amalgamation of
the 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
Member Secretary in the rank of Secretary. Tariff
Commission 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 review of role of Tariff Commission by
the Hon'ble Commerce & Industry Minister
has decided to strengthen the Commission to
enable the Commission to continue to provide
useful inputs for informed decision making
by the Commerce and Industry Ministry with
regard to manufacturing and other ministries of
Government of India. The Tariff Commission is
actively involved in Inverted Duty Structure studies
on products which are undertaken to support
the 'Make in India' initiative of the Government.
The Tariff Commission has been engaged in
discharging the following functions drawn from
the TOR/ charter revised in September 1998 and
April, 1999.
(a) To make recommendations as an
expert body, on matters referred to
it by Government regarding fixation
of tariff and all tariff related issues in
relation to trade in goods and services,
keeping in view the interest of various
sectors including production, trade and
 consumers and taking into account
the international commitments. The
Commission should aim at evolving an
overall tariff structure and look into the
issue of tariff rationalisation.
(b) To make a detailed impact analysis on
select sectors like textiles, agriculture,
and automobiles information technology,
chemicals, steel and engineering goods
through a multi-disciplinary team.
(c) To carry out technical studies on cost of
production of different goods and services
and their competitiveness in relation to
other countries.
(d) Core function of BICP including pricing,
efficiency, improvement and cost
reduction, issue of Public & Private sector,
Industrial Product & Services
I. Commodities under Administrative
Pricing Mechanism(APM)
II. State monopolies/public utilities
III. Government procurement
IV. Price monitoring
V. Others
(e) To undertake other tasks as may be
assigned by the Government from time to
time.
Tariff Commission is an organization providing
research based inputs to Ministries/Departments
based on in-depth study using data on ground
realities collected from field for informed decision
making. The study team comprises of :-
• Engineers from the field of Science
and Technology belonging to Tariff
Commission 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 Government
organization which has the know-how and
expertise of using the tool of normation for
informed decision making across the board for
different sectors of the industry. Normation is
based on assessment of achievable efficiencies
Attached & Subordinate Offices and other Organisations
i.e optimal capacity utilization, productivity
parameters of respective inputs (such as man,
material, energy and machine) taking into account
technologies and manufacturing processes
etc. Normation analysis thus can be used to
benchmark sectors /units for enhancing their
competitiveness.
Merits of decision making through Normation
include:
• Considered fair by an individual and/or a
group.
• Determining the cost of goods/services at
optimal/efficient level of inputs
(manpower, material, energy and capital)
and provides thrust for
improvement in efficiency and enhances
competitiveness of the industry.
• It helps in identifying areas for physical
improvements leading to 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.
119
 • 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 deliver
study reports in a definite time frame in a phased
manner so that the findings are real time and
Attached & Subordinate Offices and other Organisations
nature and require submission of study reports
on a continuous basis are listed below:
a) Studies on inverted duty structure
b) Impact assessment of Free Trade
Agreements on different sectors with
different countries.
c) Studying competitiveness (including trade
competitiveness) of different sectors/
industry, firm/PSU and product.
d) Impact of prevailing tariff structures on

domestic manufacturers and industry

relevant for arriving at policy decisions and not
competitiveness
rendered redundant with the passage of time.
The Commission has submitted the following
This is ensured by phasing the studies and making
reports to various Govt./Referral Agencies during
them State specific and/or sector /unit/product
2015-16 .
specific. Study topics which are of continuing
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

Manufacturing Sector:
33
a) Studies related to Inverted Duty Structure/World Trade
30
1 Organization/Market Access Offer/Free Trade Agreement/Tariff
1
b) Industry specific studies
2
c) Pricing Study
Service Sector: 17

2 a) Pricing Study 16
b) Industry Specific studies 1
Grand 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 Report

1 Report on Inverted Duty Structure in Methylene Diphenyl Di-Isocyanate (MDI)
2 Report on Inverted Duty Structure in Copper Alloy Products-Brass.
Report on Inverted Duty Structure in Unsaturatede Polyester Resin used in the Manufacture of Rotor
3
Blades of Wind Operated Electricity Generators
4 Report on Inverted Duty Structure in Copper Alloy Products- Bronze
Report on Inverted Duty Structure on Vinyl Easter Adhesive (VEA) Used in the Manufacture of Rotor
5
Blades of Wind Operated Electricity Generator
Report on Inverted Duty Structure Inverted Duty Structure on Hardner Used in the Manufacture of
6
Rotor Blades of Wind Operated Electricity Generator

120
Sl. No Name of the Report
Report on Duty Structure Inverted Duty Structure on Epoxy Resins Used in the Manufacture of Rotor
7
Blades of Wind Operated Electricity Generator
8 Report on Inverted Duty Structure in Electrolytic Chrome Coated Steel Laminates
9 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 batches
12 Report on Inverted Duty Structure in Centrifugal Pump
13 Report on Inverted Duty Structure in Textile Machinery – Auto Cone Winding Machine
14 Report on Inverted Duty Structure in Pharmaceutical Products

Attached & Subordinate Offices and other Organisations

15 Report on Inverted Duty Structure in Surgical Blades
16 Report on Inverted Duty Structure in Balloons
17 Report on Inverted Duty Structure in Super Thermal Aluminium Conductor Invar reinforced
18 Report on Inverted Duty Structure in Ferrite Cores
19 Report on Inverted Duty Structure in Cement Industry
20 Report on Inverted Duty Structure in Radial Tyres
21 Supplementary Report on Inverted Duty Structure in Medical Implant Device (Pacemaker)
Supplementary Report on Inverted Duty Structure in Capacitor Grade BOPP Film (Used as Core
22
Dielectric Layer in Capacitor)
23 Supplementary Report on Inverted Duty Structure in Copper Products
24 Supplementary Report on Inverted Duty Structure in Medical Devices – Blood Collection Tubes
25 Supplementary Report on Inverted Duty Structure in Medical Devices – Needles
26 Supplementary Report on Inverted Duty Structure in Medical Devices – Syringes.
Supplementary Report on Inverted Duty Structure in Special Casting Components including Hub,
27
Base Frame, Bearing Housing and Main Shaft of Wind Operated Electricity Generators
28 Supplementary Report on Inverted Duty Structure in Textile Machinery
29 Report on Impact of Trade Agreement with Malaysia on India’s Trade
Report on Indo Singapore Comprehensive Economic Cooperation Agreement (CECA) on Trade in
30
plastics and Articles thereof (Chapter 39 of ITC-HS Classification)
31 Consolidated Report on Calculation of Rice Milling Charges
32 Note on Calculation of Milling Charges in the State of Punjab
33 Note on Calculation of Milling Charges in the State of Haryana
34 Note on Calculation of Milling Charges in the State of Karnataka
35 Note on Calculation of Milling Charges in the State of Odisha
36 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 Pradesh
39 Note on Calculation of Milling Charges in the State of Tamil Nadu
40 Note on Calculation of Milling Charges in the State of West Bengal
41 Revised Note on Calculation of Milling Charges in the State of Chhattisgarh
42 Note on Calculation of Milling Charges in the State of Uttar Pradesh

121
 Sl. No Name of the Report
Report on Study for determining additional compensation for complex fertilizers produced by use of
43
naphtha/fuel oil/ LSHS based feed stock under NBS Policy
44 Report on techno-economic Cost-price Study on Tyre
Report on Fare Structure and Principles of Determination of Fares in the City Bus Service in Non-Bus
45
Rapid Transit (Non BRT) Corridor in Kanpur City
Report on Fare Structure and Principles of Determination of Fares in the City Bus Services in BRT/
46
Non-BRT Corridors in City of Jaipur
Report on Principles of Determination of Tariffs for Passenger Fares by the City Bus Services in Bus
47
Rapid Transit (BRT) Corridors and Non-Bus Rapid Transit (Non-BRT) Corridors for Indore City
Attached & Subordinate Offices and other Organisations

48 Report on Operation & Maintenance Cost of Irrigation Projects in Rajasthan

Report on Fare Structure and Principles of Determination of Fares in the City Bus Services in Non-
49
BRT Corridors in City of Chandigarh
Supplementary Report on Quantum Value and Types of Animal Based Bio-Resources Exported from
50
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

Manufacturing Sector: 35

a) Studies related to Inverted Duty Structure/World Trade 30

Organization/Market Access Offer/Free Trade Agreement/Tariff
1
b) Industry specific studies
4
c) Pricing Study 1
Grand 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 Report

1 Report on Inverted Duty Structure in Printed Circuit Board
2 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

122
 Sl. No Name of the Report
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 Boiler
13 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

Attached & Subordinate Offices and other Organisations

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 Supplementary Report on Inverted Duty Structure in Electrolytic Chrome Coated Steel Laminates
29 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
Labour Intensive Sector with Unutilised Capacity”.
33 Note on Calculation of bonus due to amendments in Payment of Bonus Act, 1965
34 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 different stages of progress/completion which
already submitted during the current financial will be submitted by 31th March, 2017.
year (i.e till 16/1/2017) there are studies at

123
 Outcomes
A Budget Announcements
Status of findings of Tariff Commission on Inverted Duty Structure which have been incorporated in
2016-17 budget are as follows:
Sl. No. Product
1. Inverted Duty Structure
on Technical Textile items
– Baby & Clinical (Adult)
Diapers
Attached & Subordinate Offices and other Organisations
(Two Products)
2. Supplementary Report on
Inverted Duty Structure in
Capacitor Grade BOPP Film
(Used as Core Dielectric
Layer in Capacitor)
(one Product)
3. IDS in Unsaturated
Polyester Resin used in
the Manufacture of Rotor
Blades of Wind Operated
Electricity Generators
(one Product)
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)
124
Status as per 2016-17 Budget announcement
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%,
subject to actual user condition. S.No 242 of Notification No.12/2012-
Customs, dated 17th March, 2012 as amended by notification
No.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.No 260 of Notification No.12/2012-Customs, dated 17th
March, 2012 as amended by notification No.12/2016-Customs, dated
the 1st March, 2016 refers.
Basic Customs duty on Polypropylene granules / resins [3902] for the
manufacture of capacitor grade plastic films has been reduced from
7.5% to Nil, subject to actual user condition. Notification No.12/2012-
Customs, dated 17th March, 2012 as amended by notification
No.12/2016-Customs, dated the 1st March, 2016 [new S.No. 238A]
refers.
Excise duty exemption on 5 specified items for manufacture of rotor
blades 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 as
amended by notification No.12/2016-Central Excise dated 1st March,
2016 [New S. No.327A, List 9A] refers.
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 Basic Excise Duty on Carbon pultrusions, for manufacture of rotor
Duty Structure on Carbon blades and intermediates, parts and sub-parts of rotor blades for
Pultrusion wind operated electricity generators, has been reduced from 12.5%

Attached & Subordinate Offices and other Organisations

(one Product)
8. Inverted Duty Structure in
Centrifugal Pumps
(one Product)
9. Report on Inverted Duty
Structure in Balloons
(one Product)
to 6%, subject to actual user condition. Notification No.12/2012-
Central Excise, dated 17th March, 2012 as amended vide notification
No.12/2016-Central Excise dated 1st March, 2016 [New S. No. 327A,
List 9A] refers.
Basic Excise Duty on 5 specified parts required for the manufacture
of centrifugal pump has been reduced from 12.5% to 6%, subject to
actual user condition. Notification No. 12/2012-Central Excise, dated
17th March, 2012 as amended by Notification No. 12/2016-Central
Excise dated 1st March, 2016 [New S. No. 235A] refers
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
into force with immediate effect. Further, Basic Customs duty of 10%
has been retained for all goods other than natural rubber latex made
balloons falling under tariff lines 4016 95 90, 4016 99 90.

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
come into force with immediate effect. Further, Basic Customs duty of
10% has been retained for all goods other than natural rubber latex
made balloons falling under tariff lines 9503 00 90, 9505 10 00 & 9505
90 90.
10. Textile machineries IDs in textile Machinery addressed as Tariff rate of BCD has being
(Seven Products) increased from 7.5% to 10% on 206 specified tariff lines falling in
Carding Machine Chapters 84 and 85. Clause 138 (i) of the Finance Bill 2016 refers. By
Combing Machine virtue of declaration under the Provisional Collection of Taxes Act,
Blow Room Machine 1931, these changes will come into force with immediate effect.
Draw Frame Machine
Speed Frame Machine
Ring Frame Machine
Auto Cone Winding
Machine

125
 Total no. of Products where IDS addressed: 17
Status of findings of Tariff Commission on Inverted Duty structure in Medical Devices Sector

Sl. No. Product Status as per notification in January, 2016(*)

Medical Devices sector falling Inverted Duty Structure in Medical Devices covered under
under headings headings 9018, 9019, 9020, 9021 or 9022 addressed vide
1
9018, 9019, 9020, 9021 or 9022 notification no. 4/2016 and 5/2016 dated 19/1/2016
(thirteen Products)
(*) 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
Attached & Subordinate Offices and other Organisations

2015-16 budget are as under.

Sl. No. Product Status as per 2015-16 Budget announcement

Basic Customs Duty on specified components [8537 10 00] of CNC Lathe machines
and Machining Centres, namely Ball screws [8483 40 00], Linear Motion Guides
[8466 93 90] and CNC Systems has been reduced from 7.5% to 2.5%, subject to
Machine Tool actual user condition.
1
(four products)
Notification No.12/2012-Customs, dated 17th March, 2012 as amended by
notification No.10/2015-Customs, dated the 1st March 2015 [new S. Nos. 406B,
406C and 406D] refers.

CVD & SAD exempted on specified raw materials for use in the manufacture of
pacemakers, subject to actual user condition. Notification No. 12/2012-Customs,
dated 17th March, 2012 as amended vide notification No.10/2015- Customs, dated
Pacemaker
2 1st March, 2015 [new S. No. 488A] refers. Further, these good have been exempted
(one product)
from SAD subject to actual user condition. Notification No. 21/2012-Customs,
dated 17th March, 2012 as amended vide notification No.11/2015- Customs, dated
1st March, 2015 [new S. No. 14E] refers.

Special Additional Duty of Customs (SAD) on melting scrap of iron or steel, stainless
Copper steel scrap for the purpose of melting, copper scrap, brass scrap and aluminium
scrap has been reduced from 4% to 2%.
3 (three products)
Notification No.21/2012-Customs, dated 17th March, 2012 as amended by
notification No.11/2015-Customs, dated the 1st March 2015 [new S. Nos. 78A,
79A and 79B] refers

Basic Custom Duty has been reduced from 10% to 7.5% on metal parts for use in
Electrical
manufacture of electrical insulators, subject to actual user condition.
4 Insulators
Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide
(one product)
notification No.10/2015-Customs, dated 1st March, 2015 [new S.No.334B] refers.

Basic Customs Duty on specified inputs for use in the manufacture of flexible
Endoscopes medical video endoscope has been reduced from 5% to 2.5%.
5
(one product) Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide
notification No.10/2015- Customs, dated 1st March, 2015 [new S. No. 474A] refers.

126
Total no. of Products where IDS addressed 2015-16 budget : 10

Tariff Commission's findings on Inverted duty Structure which have been incorporated in the 2014-15
Budget are as under

Sl. No. Products Status as per 2014-15 Budget Announcement

Mono Ethylene Glycol
1 Basic Custom duty on Denatured ethyl alcohol reduced to 5 percent
(one product)
Aluminium Ingots
2 Basic Custom duty on coal tar pitch reduced to 5 percent
(one product)
Inputs and components used in the manufacture of personal computers
Personal computers exempted from 4 percent special additional duty (SAD)., subject to

Attached & Subordinate Offices and other Organisations

3
(one product) fulfillment of condition no 5 annexed to notification no 12/2012-customs,
dt 17/4/2012
Poly Vinyl Choride
4 (39042110 & 39042210) Basic custom duty on ethylene reduced from 5 percent to 2.5 percent
(Two product)
Ethylene Viniyl Acetate
Specified inputs for use in the manufacture of EVA sheets exempted from
5 (EVA)
custom duty
(one product)
Back sheet Specified inputs used in the manufacture of backsheet exempted from
6
(one product) custom duty
custom duty on Forge rings reduced from 10 percent to 5 percent , subject
Slewing Bearing
to fulfillment of condition 46 annexed to notification no 12/2012-customs,
(one product)
7 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
Tariff Commission had taken the initiative with the
Ministry of Corporate Affairs giving full justification
to ensure that the cost audit formats are restored
to its earlier format to include 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
the Commission the Ministry of Corporate Affairs
have been able to amend the Companies(Cost
Records and Audit) Rules, 2014 vide Notification
dated 31st December, 2014 to facilitate getting
detailed information required for studies
conducted by Tariff Commission particularly in
respect 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 Tariff Commission regarding BCD on
Steel Balls (HS code 84829119), Rubber
Seal (HS Code 40024900), Grub Screw (HS
Code 73182990) and Cage Strip (HS Code
84829119) required for the manufacture

127
 of Slewing Bearing, to be brought down
to 5% under actual user condition.
2) Light Engineering Industry Division of
DIPP vide their letter No. dated 17th
Nov, 2016 F.No.14(37)/2015-LEI at have
communication that their Department
of Industrial Policy & Promotion At the
existing concessional exemption on the
import duty on the final product and the
import duty of 12.5% on the raw material,
Attached & Subordinate Offices and other Organisations
Effective Rate of Protection (ERP) works
out 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
Nil duty on the final product.
3) Ministry of New and Renewable Energy
vide their letter dated 21/10/2015 have
recommended the proposals of Tariff
Commission 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
made by the Tariff Commission.
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.
128
6) Tariff Commissions fifth study report
on the "Plant based Normally Traded
Commodities' as part of the of the
study on quantum, value and types of
bio-resources exported from India”,
has been appreciated by the Ministry
of Environment and Forests (Reference
D.O. No. C-12025/1/10-CS-III dated
14/8/2014).
7) Office of Economic Adviser, Department
of Industrial Policy & Promotion in its
tax proposals for the union budget of
2013-14, used all the 26 reports of Tariff
Commission, on Inverted Duty Structure,
for making specific recommendations to
the 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
3/4/2013 endorsed the study done by Tariff
Commission to the Revenue Department
on inverted duty structure.
10) Tariff Commissions four reports on
Operation & 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 cost
of irrigation projects for Andhra Pradesh
 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 feed
stock under Nutrient Based Subsidy (NBS)
policy, would be finalized on the basis of
recommendations of Tariff Commission
in view of the Cabinet decision to this
effect.
13) The slab wise rates recommended by
the Tariff Commission for movement of
fertilizers 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 duly
considered 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 of
DGFT 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
Attached & Subordinate Offices and other Organisations
crops enabled the National Biodiversity
Authority to glean a total of 88 gazette
notified biological resources. (Reference
letter 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
of notification to be issued by the Ministry
on normally traded commodities under
provisions of the Biological Diversity Act.
19) Tariff Commission’s Report on “Study on
quantum 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”.
129
 21) Report on Comparative Performance the Competition Commission of India
of Bio- Fertilizers with their chemical (reference order date 20.6.2012, in case
counterparts in terms of usage, efficiency no. 29/2010).
and cost effectiveness appreciated by
28) The normative transportation from the
the Department of Agriculture and
nearest rake point to block headquarters
Cooperation, Ministry of Agriculture vide
is reimbursed on the basis of per tonne,
their letter no. 9.14.2013-Org. Fmg dated
per Km, by the Department of Fertilizers
08.10.2013.
on the basis of Tariff Commission’s
22) The two reports on price of Pregnancy Test recommendations. (PIB Note dated 8th
Kit recommended by Tariff Commission Dec., 2011).
Attached & Subordinate Offices and other Organisations

for the years 2009-10 and 2010-11 has

29) The recommendations of Tariff Commission
been adopted by the Ministry of Health
on the final rates of concessions for
(reference letter no.S.12012/35/2007/
Ammonium Sulphate (AS) produced by
Supply/Pregnancy Kit dated 16/5/2013).
FACT and GSFC were accepted by the
23) NMCC vide its letter No. 21(1)/2012-NMCC Department of Fertilizers(reference Letter
dated 14th January, 2013 endorsed the no. 22011/6/2009 dated 25/5/2012
recommendations of Tariff Commission
30) The concession scheme on
on the IDS reports to the Department of
decontrolled Phosphatic&Potassic
Revenue and PMO.
(P&K) fertilizers is substantially based
24) Office of Economic Adviser vide its on the recommendations of the Tariff
letter dated 19/9/2012 endorsed the Commission. (PIB note dated 26th June,
recommendations of Tariff Commission 2008)
on Naptha, to the Ministry of Revenue.
31) The price of B-Twill bags recommended
25) Department of IP&P has placed the by the Tariff Commission is adopted by
executive summary and findings of the the O/o Jute Commissioner using a price
Commission’s report on “Review of adjustment formula.(reference document
Performance of Cement Industry” on on price policy for jute, para 2.28)
its Web-site” for obtaining the views of
32) Tariff Commissions report on "study of
various stakeholders. (Ref. email dated
B-Twill Jute Bags- 2009 has been used by
10th April, 2013)
the Ministry of Textiles, while preparing
26) Department Related Parliamentary the policy document on Jute Fibre.
Standing Committee for Commerce in (reference acknowledgement on pg 250
its 95th report on Performance of Cement of the document).
Industry adopted Tariff Commissions
33) Ministry of External Affairs vide its letter
Report on Cement Industry submitted to
No. D.O. AC/202/20/2011 dated 2/6/2011
DRPSC in 2010. (dated 24th Feb., 2011)
communicated that Commission’s report
27) The Report on Cement Industry submitted on India’s need for critical raw material
by the Commission to Department Related and identification of sources of such
Parliamentary Standing Committee for raw materials in Asia, Africa and Latin
Commerce in 2010 was also used by America provided exhaustive and useful

130
 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
by Ministry of External Affairs in the year
2012-13.
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 period
2004-05 - 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 efforts
of Tariff Commission w.r.t. the three
comprehensive 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
analysis of share of various 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 of
Real 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 Tariff
Commission 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
Attached & Subordinate Offices and other Organisations
of LNG Import and Regasification and
Transportation Tariff of NG/R-LNG
suggested substantial reduction in tariff of
HVJ pipeline i.e. Rs. 832/MSCM as against
existing tariff of Rs. 1150/MSCM .
43) GAIL had entered into gas supply contracts
with the consumers. Independent power
producers are among consumers of gas.
Gas transportation charges were being
levied by GAIL from the consumers as per
these contracts. In the Commission’s study
transportation tariff were worked out
using pipeline network principle. Report
on Transportation Tariff for KG Basin Gas
Supply Network suggested substantial
reduction in tariffs as below:
Tariff charged by GAIL Vs Normative Tariff
Rs./MSCM
Name of IPP Transportation Tariff
Charged Normative
by GAIL computed by
TC
GVK Industry 805 298
Spectrum 805 298
Power
Reliance Energy 1,258 298
LANCO 1,732 730
(*) Note: Recommendations of TC adopted with modifications
44) Report on Gas Transportation Tariff
131
 for Bajhera-Agra-Firozabad Spur line
and Agra/Firozabad City Distribution
Network suggests substantial reduction
in transportation tariff of HVJ and
Agra – Firozabad spur line and city gas
distribution charges i.e. Rs. 1014/MSCM
as against Rs. 1217/MSCM.
45) The Tariff Structure for glass components
used for CPTs were endorsed to the
Department of Revenue and Department
Attached & Subordinate Offices and other Organisations
of Commerce by the Department of
Information Technology
Tariff Commission in its endeavor to
encourage the usage of Official language
celebrated 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 –
132
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
Test Kid supplied by /s.HLL Life Care
Ltd. (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 by Naptha/Fuel Oil/LSHS
based 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 its
appropriate place, the cleanliness drive in the
Commission revolved around cleanliness ot three
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 focused
outputs, inculcating the spirit of harmony, starting
daily activities with prayers and introspection,
organizing thoughts for efficient and focused
output through meditation, strengthening of
team spirit for better participation in official
assignments including study reports through
coordinated functioning of study teams,
affirmation, team building exercises etc.
The spiritual activities include weeding out
attitudes counterproductive to efficiency
and harmony through scientific methods of
affirmation, introspection, yoga, meditation,
motivational reading and reflection, doing
away 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 a
focused way, on a weekly basis, by way of reflection
meetings. 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
thoughts of great leaders and Affirmation which
reads as "Through our collective efforts we shall
bring pride to our organization".
Office of the Salt Commissioner, Jaipur
Salt is Central Subject under Item no.58 in 7 th
Schedule of the Constitution of India. The Salt
Commissioner's Office (SCO) is an Attached
Office of this Department, with it’s headquarter
at Jaipur. It is headed by the Salt Commissioner.
There are three Regional Offices at Chennai,
Mumbai and Ahmedabad, besides the field offices
in 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
Attached & Subordinate Offices and other Organisations
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 natural
calamities, etc.
The Ministry of Health and Family Welfare is
implementing a plan scheme National Iodine
Deficiency Disorders Control Programme
(NIDDCP). SCO is the nodal 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
agency for the issue of export-worthy certificate
for 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
has five Circle Offices located in Kolkata, Mumbai,
Chennai, Faridabad and Agra and 18 Sub-circles
Offices in the country.
133
Attached & Subordinate Offices and other Organisations
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-
134
friendly fireworks has been set up by PESO to
ensure safety and security of public and property
from fire and explosion. The organization has
statutory authority, entrusted with responsibilities
under the following Acts and Rules framed
hereunder:-
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,
security and other officers in safe handling
of explosives.
Revenue and Expenditure:
The Organization has always been in revenue
surplus. The trend of growth in revenue and
expenditure of the Organisation for the last five
years are as below:-
49.34
30.72
Dec.
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 under
Explonet Network. All licensing transactions viz.
construction approval, amendment, renewal,
suspension, cancellation etc. are being done
Attached & Subordinate Offices and other Organisations
online by all offices across the country. The data
is 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 by
licencees. 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
Attached & Subordinate Offices and other Organisations
under the Petroleum Rules, 2002, Explosives
Rules, 2008 and Ammonium Nitrate Rules, 2012
has started. The said e-filing facilities have been
integrated with e-payment gateway, so as to make
the licence fee payment cashless. The licensees
have been provided with facility to register with
PESO portal and maintain their License-Portfolio.
Under the SMPV (U) Rules, 2016 and Petroleum
Rules, 2002, an online module for Competent
Persons has also been launched. This initiative

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
has streamlined the online generation of test
certificates by competent persons to a great
extent. The online generated certificates also
get linked to respective licence file at the time
of processing of applications. During processing,
PESO officers can view online certificates issued
by the competent person and can also verify his
signature with the online record. This eliminates
scope for forgery in the certification process.

Controller General of Patents, Designs and Trade Marks, Mumbai

136
The Controller General of Patents, Designs and
Trade Marks (CGPDTM) administers the Patents
Act,1970, the Designs Act 2000, the Trade Marks
Act 1999 and the Geographical Indications of
Goods (Registration and Protection) Act,1999.The
Office of Controller General of Patents, Designs
and Trade Marks is l o c a t e d a t M u m b a i .
The CGPDTM also advises the Government on
matters relating to Intellectual P r o p e r t y 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. The Copyright Office at Delhi
5. The Semiconductor Integrated Circuits
Layout-Designs Registry at Delhi
6. The Geographical Indications Registry
(GIR) at Chennai.
Major Areas of Activity in 2016-17
1. Infrastructure
Additional requirement of office space and
expansion 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 existing
strength of 130 examiners. While the first batch
of 286 examiners have completed their training
Attached & Subordinate Offices and other Organisations
and are engaged in actual examination work, the
second batch of 108 examiners is undergoing
training at the respective patent office locations.
The proposal to fill up 58 posts of Examiners
of 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, created
under 12th Plan, have been filled up through the
promotion mode. Further, four Senior Examiners
of Trademarks and Geographical Indications,
who were selected through direct recruitment by
Union Public Service Commission have joined the
Office of CGPDTM.
100 Contract Examiners for Trade Marks have
been recruited by the office of Controller General
of 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 has
continued 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
months of June-July, 2016 by DIPP and Office of
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 CGPDTM in association with CII, PHD Chambers of 5. IP Office Revenue
Commerce, Indian Chambers of Commerce, Laghu
During the year 2015-16, the Patent Office
Udyog Bharti and Federation of Indian Export
generated revenue of 398.40 crore, Designs Wing
Organizations and NASSCOM. Officials from
Rs. 5.57 crore, Trade Marks Registry Rs. 183.16
Office of the CGPDTM and Cell for IPR Promotion
crore, Geographical Indications Registry Rs. 0.03
and Management (CIPAM) gave address at each
crore and NIIPM/PIS generated Rs. 0. 27 crore.
roadshow to sensitize the audience about the
Thus, the total revenue generated by the Office
National IPR Policy and the IP system in India.
of CGPDTM during 2015-16 was Rs. 587.44 crore,
These programmes were funded by the office of
which is 14.0 % higher than that earned in the year
CGPDTM.
2014-15. The total non-plan expenditure during
Attached & Subordinate Offices and other Organisations

During 2016-17, the office of CGPDTM conducted 2015-16 was Rs. 37.77 crore. Thus, against a total
IP awareness programmes jointly under CGPDTM/ revenue of Rs. 587.44 crore earned during 2015-
DIPP & OHIM bilateral collaborative project 16, IPO had a revenue surplus of. Rs. 549.67 crore.
(now EU-India Intellectual Property Cooperation
During the period from April 2016 to December
(EUIPO), which includes 4 programmes organized
2016, the total revenue generated by the Office
by Designs wing and 10 programmes organized
of CGPDTM is 433.22 crores, which includes the
by Trademarks Registry. Also, 2 programmes
revenue of Rs. 290.47 crore generated by Patent
were organized under UK-IPO collaboration by
Office, 3.75 crore by Design Wing , Rs 138.75
the office of CGPDTM. A National Workshop
crore by the Trade Marks Registry, Rs 0.07 crore
on PCT System with the cooperation of WIPO
by the Geographical Indications Registry and Rs.
and a training programme for Examiners of
0.18 crore generated by NIIPM/PIS. The total non-
BRICS countries were organized at RGNIIPM
plan expenditure during the period from April to
Nagpur.
November 2016 was Rs. 40.84 crore.
The officers of Intellectual Property Office
A brief summary of the activities of the
have participated as resource persons in 81
various offices under CGPDTM is given
awareness programmes including 49 patent &
below:
design related programmes, 22 programmes on
Trademarks and 10 programmes on GIR during Indian Patent Office
2016-17. These programmes were conducted by
The Patent Office performs statutory functions
universities, industry associations, MSME, IITs and
relating to the grant of patents for inventions,
other technical institutes in the country.
renewal of patents, amendments, restoration of
4. Redesigning of the IPO Website lapsed patents, grant of compulsory licenses,
registration of patent agents etc. under the
The official website of the CGPDTM, www.ipindia.
Patents Act 1970. The Head Office of the Patent
nic.in, has been redesigned to make it more
Office is at Kolkata with branch offices at Chennai,
interactive, informative and easy to navigate.
Delhi and Mumbai. The offices deal with the
The website contains information which includes
applications for patents originating within their
all IP-laws and rules administered by the Office,
respective territorial jurisdictions.
reports, official e-journals, public search facility
of IP records, dynamic utilities for public, public Filing
notices and news.
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-filing
facility. 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 during
the period from 1st April 2016 to 31st December
is 33193, out of which 29485 patent applications
have been received through e-filing facility. The
number 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.
Startups have to pay patent fees including filing
fee at par with a natural person only; thereby
providing 80% fee concession in patent fees as
compared to other legal entities.
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
Cooperation Treaty (PCT) filed by Indian applicants
in the Indian Patent Office as Receiving Office in
2015-16 was 693; whereas such applications filed
during 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 the field of Intellectual Property Rights, in its
General 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
of 21 Patent Offices recognized as ISA and IPEA.
Patent Office has started functioning as ISA/
IPEA at Patent Office Delhi with effect from 15th
October, 2013.
During 2015-16, 711 international applications
choosing India as ISA were received in Patent
Offices at four locations, whereas during the
Attached & Subordinate Offices and other Organisations
period from April to December 2016, 680 such
applications have been received in Patent Offices
at 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
made available in the website for the benefit of
the public like, displaying the month of filing
of Request for Examination for which First
Examination Report is being issued; knowing
the group-wise and location-wise dates of
Requests of Examination (RQ) for which First
examination Report (FER) has been sent to the
applicants; displaying the status on disposal of
patent applications by the respective examination
groups during the specified period. The utility
for facilitating search to ascertain the status of
a patent has also been provided. Besides, the
facility for displaying patents, which have expired
or ceased to have effect by reason of failure to
pay the renewal fee has been provided by their
number, title and technical / scientific field. Also,
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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 made
available. A Stock and Flow based Dynamic Utility
for Patent has been made available to provide
the applicants/stakeholders with the facility on
real time basis to view the Patents under different
stocks and the flow of applications at various
stages of processing.
E-Filing
Attached & Subordinate Offices and other Organisations
E-filing module has been made fully compatible
for online filing of all forms and entries of the First
Schedule 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. Online filing of patent applications
and all related forms has been made mandatory
for Patent Agents through Patents (Amendment)
Rules 2016. With the objective of promoting
online filing, 10 % surcharge in fees on physical
filing has been introduced through Patents
(Amendment) Rules, 2014, which has resulted in
the increase of patent online filing to the tune of
about 90 %. The facility for online filing of Trade
Mark applications and submission of other forms
in trademarks has also been provided.
Requests of Examination (RQ) across four branch
office filed in a particular examination group have
been merged to form a single queue based on RQ
Filing Date, which are allocated for examination
automatically through a system. Thus, the
discrepancy that existed earlier among four branch
offices with respect to time when RQs in the same
group 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 /controllers at a specific patent office
location.
140
Comprehensive Payment Gateway
The Comprehensive Payment gateway (including
internet banking, Debit and Credit Cards) for
payment of patent and trademark fees integrated
to the e-filing system has been launched on 8th
September, 2014 to extend the facility of online
payment gateway for Patent and Trademarks
through multiple banks (about 70 banks) with
Central Bank of India (CBI) as a focal and accredited
bank. Due to introduction of Comprehensive
Payment gateway, the online filing is expected to
increase further for both patents and trademarks.
The Patent Office subscribes to major global patent
and non-patent databases for prior art search to
be conducted by the examiners. The Manual of
Patent Office Practice and Procedures has been
prepared to ensure uniformity in operation and
the same is available on the website. Further, the
“Guidelines for Processing of Patent Applications
relating to Traditional Knowledge and Biological
Material” and “Guidelines for Examination of
Biotechnology Applications” have been published
in the official website.
The Guidelines for examination of patent
applications in the field of Pharmaceuticals
have also been published in the official website.
The digitization of old patent records is almost
complete and current patent records are digitized
immediately after filing the documents so that
these are available for examination. These steps
have resulted in a significant improvement in the
performance of the office.
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.
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 provides
training 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 on
worldwide basis and provides technological
information contained in patent or patent related
literature through search services and patent
Industrial Designs Wing:
Attached & Subordinate Offices and other Organisations
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 benefit
of stakeholders. Besides, RGNIIPM conducted
National PCT Workshop in collaboration with
WIPO and the special training programme for
Patent Examiners from BRICS countries.
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 The registration of industrial designs under the
Designs Act 2000 is done by the Designs Wing
of the Patent Office located at Kolkata. Filing of
design applications in branch offices at Chennai,
Delhi and Mumbai is also permitted. The thrust
of the modernization programme of the Design
office includes transition from the essentially
paper-based examination procedure to an IT
based system supported by computerization of
existing records, online search facilities, setting up
Attached & Subordinate Offices and other Organisations
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 at
Ahmedabad, 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
trademarks were filed, 267861 applications were
examined and a total of 116167 applications
were disposed of out of which 65045 trademarks
have been registered. Out of total filing, 267390
applications have been filed by Indian applicants.
During the period from 1st April 2016 to 31st
December 2016, a total 209563 applications for
trademarks have been filed out of which 130742
applications have been received through e-filing
142
facility. Out of the total filing, 200836 applications
have been filed by Indian applicants. Applications
examined 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
office of origin for the Indian applicants who seek
international registrations of their trademarks
through Madrid Protocol, and as an office of
designated 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
Trademark Office for confirming protection of such
marks 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
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-wise or date-wise, classification of goods
and services under section 8 (1) of Trade Marks Act,
1999 for the purpose of registration of trademarks
and online filing of reply to an examination report
in respect of trademark application through the
comprehensive e-filing services for trademarks.
Further, the comprehensive details of pending
Trade Mark Applications as well as Registered
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
Trademarks including the scanned copies of
documents, prosecution history, examination
report, copy of the application, copy of the
trademark certificate, opposition details etc. have
been made available free of cost to the public
through the official website.
A Stock and Flow based Dynamic Utility for
Trademarks has been made available to provide
the applicants/ stakeholders with the facility on
real time basis to view the Trade marks under
Attached & Subordinate Offices and other Organisations
different stocks and the flow of applications
at various stages of processing. Trademark
registration certificates have been made available
online and the same can be downloaded directly
by the applicants.
Fabric, Kota Doria, Kancheepuram Silk, Mysore
Agarbathi, Mysore Silk, Madurai Sungudi, Kullu
Shawl, Assam (Orthodox), Nilgiri (Orthodox), Kani
Shawl, Kashmir Pashmina, Kashmir Sozani Craft,
Lucknow Chikan Craft, Venkatagiri Sarees, Villianur
Terracotta Works, Mango 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
Attached & Subordinate Offices and other Organisations
31D Statutory license for broadcasting
of literary and musical works and sound
recording.
Department of Industrial Policy & Promotion
(DIPP) Ministry of Commerce & Industry has
issued an OM No. 14-35/2015-CRB/LU/IPR-VII on
5th September, 2016 regarding Statutory Licensing
as per provision of Section 31D of Copyright Act,
1957. It was clarified in the said OM that the
provisions of Section 31D are not restricted to radio

The Geographical Indications Registry has and television broadcasting organizations only,
conducted many awareness programmes but covers internet broadcasting organizations
throughout India to promote registration of the also.
Indian Geographical Indications. The focus sectors
Scheme for the Promotion of Copyright and
are tea, coffee, rice spices, tobacco, horticulture
Intellectual Property Rights
products, handloom products, handicrafts,
textiles, processed food items, and spirits & wines. The Scheme for the Promotion of Copyright and
Intellectual Property Rights is being implemented.
During April-November 2016, Geographical
The scheme is aimed at creating world class
Indications Registry has conducted 4 awareness
quality and diverse human resource in intellectual
programmes/ seminars/workshops on GI and
property rights in India to meet the emerging
participated in 5 programmes conducted by
challenges of a dynamic knowledge society with a
external agencies.
focus on requisite skill development for improving
Copyright Office IP output and creation of IP assets, with a mission to
create capacity and capability in IP management,
Acquisition of copyright is automatic and it
enforcement, awareness, education, training and
does not require any formality. Copyright comes
research through a multidisciplinary approach.
into existence as soon as a work is created and
no formality is required to be completed for Intellectual Property Rights Chairs (IPR Chairs)
acquiring copyright. However, as per section 48
Under the scheme 19 IPR Chairs have been set
of the Act, certificate of registration of copyright
up so far in various universities and institutes
and the entries made therein serve as prima
for development and growth of IPR education,
facie evidence in a court of law with reference
research and training. Out of 19 IPR Chairs, six
to dispute relating to ownership of copyright.
(6) IPR Chairs are in universities (i.e. CUSAT,
The State Governments are responsible for the
Cochin; Faculty of Law, Delhi University; Cluster
enforcement of the copyright law through their
Innovation Centre, Delhi University; Jawaharlal
respective police forces.
Nehru University; Delhi, University of Madras
Modernization of Copyright Office and Tezpur University), six (6) IPR Chairs are in
IITs (Delhi, Kanpur, Kharagpur, Bombay, Roorkee
The E-filing facility was started on 17-02-2014
and Madras), five (5) IPR Chairs are in National
and a new logo of Copyright with newly designed
Law Universities (NLSIU, Bangalore; NALSAR,
Certificate is being used. Digitization of copyright
Hyderabad; WBNUJS, Kolkata; NLIU, Bhopal; and
records is under process.

144
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
functioning fully, while few others are at different
stages 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 Board
The 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. hear application for rectification of entries
made 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 of
physically 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 first
publication of the work;
x. grant compulsory licences to publish or
republish works (in certain circumstances);
Attached & Subordinate Offices and other Organisations
xi. hear and decide disputes regarding Tariff
Scheme 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. fix the resale share right in original copies
of 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.
Attached & Subordinate Offices and other Organisations
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
flagship project Nano Manufacturing Technology
Centre (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
Speed Shuttleless Rapier Loom technology is in
the advanced stages of completion.
CMTI inked MoUs/NDAs with (i) Faiveley
Transport Rail Technologies India Limited (FTRTIL)
New Delhi, GOI, (ii) Licensing agreement with i2n
technologies 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
146
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
Microstereoli thography (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) are scheduled to be floated by
Jan. 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
 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
node is under field trials.
ii) ‘3D Scanner - Fringe Projection Technique
and ‘Laser Scanning Technique’ are under
final stage of testing for measurement
validation.
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) Leak Detector
Attached & Subordinate Offices and other Organisations
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) The finalization of design of prototype of
High Speed Shuttleless Rapier Loom is in
progress 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
147
 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.
Machining of micro V-notch of 40 x 90 µm
Attached & Subordinate Offices and other Organisations
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) Directionally solidified Inconel 718.
5. Technology Development

c)
in stainless steel coated with ceramic used a) Technology developed for manufacture
for material testing applications. of Fuel Ductor having dimensional and
positional tolerances in the order of 10 – 20
d) Slots of size 0.64 x 5.97 mm were cut on
µm made of stainless steel for aerospace
glass wafer required to insert micro cables
applications.
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 in
Borosilicate glass used in processing and
analysis of single cells in Bio-medical
applications.
g) Machining of microfluidic channel in PSA Fuel Ductor

(Pressure Sensitive Adhesive) material for b) Technology developed for manufacture

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) Laser Sintering of Bronze Nickel and Bronze
Nickel-Graphene by DMLS process” is
completed
c) Direct Metal Laser Sintering (DMLS) of
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 in
biopotential measurement
d) The development of Sphere Lapping
Attachment for CNC turning lathe to

148
 produce accurate form and Nano level
surface finish on spherical surfaces, for
medical implants is completed.
Sphere Lapping Attachment
e) Some of the manufacturing technology
development projects (continuing activity)
are:
i) Manufacture, assembly & testing of
airborne quality hydraulic system filters
for 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 temperature transducers, thermometers
aerospace application is completed
d) Development of Battery operated
hydraulic rig to charge parking brake as routine testing services.
accumulator of LCA is completed.
e) Development of Qualification testing of
Leading edge slat actuator is nearing
completion.
f) Annual Maintenance on Heat exchangers
pressure cycling test rig and Thermal
performance test facility.
g) Annual Maintenance on Pump test Rig
facilities developed for LCA pumps
h) Overhauling & testing of Stud Tensioning
Attached & Subordinate Offices and other Organisations
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
hydraulic system filters
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 and
dirt 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,
& RTD, hydrostatic pressure testing and
supply of calibration fluid were carried out
(183
assignments).
149
 j) The Chemical laboratory (NABL accredited)
provided services in the area of chemical
analysis of metals and alloys, identification
of metal coating and measurement
of metal coating thickness, surface
treatment, oil analysis and corrosion
testing of components using salt spray
chamber (607 Assignments).
k) Annual Maintenance for Pump Test Rig
Facilities of LCA Pumps continued
Attached & Subordinate Offices and other Organisations
l) Qualification testing on solenoid valve
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, surface finish and
gears 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, flick
standards, Artefacts like gear masters
(involute & profile Masters), helix & lead
master; optical flats, optical parallels;
caliper checker/Check Masters, Radius
Masters, Roundness Master, Reference
Master Setting Rods, Master Glass Scales,
Glass hemi-spheres, flick standards.
d) Calibration of instruments / equipment
Limit Gauges (Plain, Threaded & Taper),
Equipments like extensometers, height
gauges, depth gauges, micrometers etc.,
master cylinders, Cylindrical Squares; glass
150
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 Machine
ii) ULMM
iii) Gear Testing Machines
iv) CNC Machines
f. In addition, conventional measuring aids/
gauges/ instruments like Vernier and Dial
Callipers, Master Balls, Scales, Test Sieves,
Tapes, Spirit Levels, Electronic Levels, Dial
Gauges, 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, Pneumatic cylinder / MotorLift,
Master Gears.
i. Surface engineering activities continued
research works in the area of Low
Temperature 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
 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 night
vision 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 ground
vibration 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/ HRD
a) 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.
Attached & Subordinate Offices and other Organisations
c) “A high speed portable XY flexure-based
Nanopositioning 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 based
x- 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
The following patents are filed
a) Patent on RCC as an Alternate Material for
Machine Tool structures.
b) Testing of Writing Instruments
c) System and Method for making Micro-
needle using MSL
151
 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
Attached & Subordinate Offices and other Organisations
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.
Briefing of Twin Screw Continuous Mixer
Shri Ramesh Abhishek concluded his visit lauding
CMTI for carrying out impressive & sensitive
work and appreciated the efforts being made in
providing 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
152
University, Australia, visited Institute on
1st July 2016, to study the infrastructure,
facilities and activities carried out at the
Institute on high end technology fields
such 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
present MLA, 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 on
Resource Efficiency) Innovate UK, which is
the 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 and
Nottingham 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
 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 Beacon
c) Technical Presentation and demonstration
of ‘FARO3D X330 LASER SCANNER’ by S
Srinivasan , Dy. General Manager, Smart
LabtechPvt. Ltd., Bangalore on 12th 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) 2016-17
Senior 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
Attached & Subordinate Offices and other Organisations
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
up- gradation 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
and expertise available at CMTI specific to
Industrial 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.
153

Meeting with WAITRO Secretary-General, Dr.
Rohani Hashim, WAITRO New President, Dr. Yonvut
Saavapruk and other Office bearers of WAITRO
Attached & Subordinate Offices and other Organisations
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), Switzerland
from 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
154
Rail Technologies India Limited (FTRTIL) for
Sound Power Measurement and Structure
Borne Measurement of HVAC units
b) Licensing agreement with i2n technologies
for 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 Trends
and 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, Center for Laser -Aided Intelligent
Manufacturing, University of Michigan, USA.
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.
• Identification of various non conventional
/ 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
Attached & Subordinate Offices and other Organisations
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
efficiency carried out at two agro based
paper 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
155
 the Institute were ` 1909.30 Lacs and Total Gender Budgeting
Expenditure was ` 1242.55 Lacs (i.e. Revenue
Grants-in-Aid are released to CPPRI under plan
Expenditure ` 1140.37 Lacs + Capital Expenditure
head to carry out R&D activities in the field of
` 102.18 Lacs).
pulp and paper and such there is no Gender
Internal Revenue Generation during 2015 -16 Based Budgeting involved.

Internal revenue worth ` 260.40 Lacs was generated

by CPPRI during the financial year 2015-16.

(a) Plan
Attached & Subordinate Offices and other Organisations

S. Title of the Project Expenses up to Anticipated Expenses Total

No. December 2016 (December 2016 – March 2017
` in Lacs ` in Lacs ` in Lacs
1. Raw Material & Product 29 11 40
Development
2. Energy Conservation & 54 16 70
Environmental Management
3. Infrastructure Development 97 43 140
and Capacity Building
Activities
Grand Total 180 70 250

(b) Non Plan

Details of Expenses Expenses up to December Anticipated Expenses Total Expenses
2016 (January – March 2017)
` in Lacs ` in Lacs ` in Lacs
Non 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 Lacs
115 85 200

Indian Rubber Manufacturers Research IRMRA’s progress is monitored and governed

Association (IRMRA), Thane. by a Governing Council consisting of members
Overview from Central and State Governments, Rubber
Industries, and premier Research Institutes, and
The Indian Rubber Manufacturers Research
is functioning under the administrative control of
Association (IRMRA), registered under the Societies
Department of Industrial Policy and Promotion.
Registration Act 1860, was established in 1959 as
Over the last 50 years, IRMRA has expanded and
a scientific and industrial research organisation
diversified its activities in both tyre and non-tyre
for promoting basic and applied research
sectors and has become a unique R&D ‘Centre of
and technological development activities
Excellence’.
in the field of rubber and allied materials.

156
Aims & Objectives:
IRMRA is engaged in serving rubber and allied
industries in research, technology development,
testing and certification, industrial consultancy
and manpower development so that the Indian
industries can compete effectively in the global
business.
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
carrying out testing and certification of products
as 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 testing
and got score of great success.
iii) Tyre Testing and Certification Division :-
The Centre of Excellence for tyre testing and
certification has been regularly testing and issuing
the certificates to tyre industries for getting ISI
marking license as stipulated in Quality Order
issued by DIPP, Govt. of India. During the current
Attached & Subordinate Offices and other Organisations
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) for testing and certification
of tyres for rolling resistance and other safety
parameters. Recently, this division developed
expertise for quality assessment of fighter aircraft
tyres and forensic analysis of failed aircraft tyres
for the benefit of Indian Air Force.
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, material
and product development, trouble shooting,
quality improvements etc., a separate division
“iCON” for doing consultancy work has been
created and so far this division has completed
more than 70 small projects for the benefit of
the MSMEs. A “Quality Cluster” programme is
initiated with the support of ministry of MSME
for inculcating the quality culture in the rubber
sector.
V. Training, Seminars, Workshops :-
IRMRA conducts training, Seminars and Workshops
on rubber technology, Laboratory Management
Systems, and Soft Skill Development for the
benefit of engineers and technicians working in
157
 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 272
participants. Also registered with RSDC for
conducting training programmes and participated
Attached & Subordinate Offices and other Organisations
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 Laboratory
Management System (LMS) training and enrolled
Business Membership Organisation (BMO). cement plants from all over the country
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.
LPG hose and Conveyor Belt Manufacturers and
has 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
158
discussed action to be taken for mutual benefit
of 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 industrial
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 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 for
and so far established the same for 186
cement plants.
LCF Study: Clinker Drop Test
• Based on the research carried out by NCB,
Bureau of Indian Standards (BIS) recently
formulated an Indian standard IS: 16415-
2015 on composite cement using fly ash
and granulated blast furnace slag (GBFS).
Composite Cement blends containing
40-60 percent clinker, 35-55 percent
combined mixes of fly ash and GBFS were
evaluated for their physical characteristics.
Since, the availability of GBFS is confined
to mainly in Eastern India, composite
including high Young’s modulus (higher
than some of the metals), as stiff as
diamond, 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

Attached & Subordinate Offices and other Organisations

features and physical properties of
cement blends were also prepared using
15-40 percent fly ash and 5-15 percent OPC-CNT composites and hydration
low grade limestone and evaluated mechanism are under investigation using
for their physical properties. At above advanced instrumental techniques such as
clinker replacement level, the values of DTA/TG, XRD and SEM-EDAX.
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, fly
ash, GBFS and low grade limestone is
in progress. The durability studies of
concrete samples prepared using above
cement blends is underway.

• Effect of nanoparticles of various materials,

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 strength
as well as toughness by impeding crack
formation and growth. Different types of
fibres including polymer, glass and steel
fibres have been used as reinforcement for
cementitious materials. Reinforcement of
cementitious materials with high strength
nano diameter fibres such as CNT can be
helpful in achieving high performance
cement based composites. CNT exhibits
extraordinary mechanical properties
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 fixed water to cement (w/c) ratio in
physical 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

159
 mechanical mixer and fixed w/c ratio of
0.4. 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
Attached & Subordinate Offices and other Organisations
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 in
higher 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

160
• 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
fly ash, high grade limestone and dolomite
as 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 developments of PSC samples
• In view of enhancing the use of fly ash in
Compressive strength development of PSC prepared by
inter-grinding (Blaine’s fineness: 380±10 m2/kg)
Compressive strength development of PSC prepared by separate
grinding and Blending (Blaine’s fineness: 340±10 m2/kg))
• The chemical analysis of LD slag sample
showed 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
the partial utilization of LD slag by taking
blends of 90% BF slag and 10% LD slag
(designated as BL) with resultant glass
content of 87% in the manufacture of
PSC. The results of compressive strength
of PSCs, prepared by inter-grinding of
40, 45, 50 and 55% BF and BL slags with
Attached & Subordinate Offices and other Organisations
clinker and gypsum, showed comparable
strength development at all ages as shown
below. The study indicated the feasibility
of using LD slag in the manufacture of PSC
in combination with BF slag.
Portland Pozzolana Cement (PPC) from the
existing maximum limit of 35% according
to Indian standard IS:1489 (1)-2015, an
investigation on high volume fly ash
cement (HVFAC) using fly ashes conforming
to the requirements of IS:3812-2013 has
been taken up. PPC blends containing up
to 50% fly ash along with OPC clinkers and
mineral gypsum have been prepared. The
physical characteristics of these cement
blends showed that at higher fineness
levels and with use of good quality clinker
and fly ash, the PPC prepared with 40-45%
fly ash conformed to the requirements
of compressive strength as specified
in Indian standard IS:1489 (1)-2015.
Durability characteristics of high volume
161
 fly ash cements including rapid chloride
permeability, accelerated carbonation and
sulphate expansion are in progress.
Attached & Subordinate Offices and other Organisations
use of sacrificing layer to protect kiln shell
from 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.

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 Remote controlled machine to reduce
refractories as well as imported basic the demolition time
bricks with ISO and VDZ shapes. The
• Studies on fly ash based geopolymeric
installation practices range from manual to
cements have been continued. Alkali
mechanized installation depending upon
activation of low lime, coarser fly ash was
the capacity of kilns. The major problems
carried out by employing initial thermal
encountered during the campaign are
curing at two different temperatures up to
undesirable coating and buildups, kiln
90°C for varying retention periods. It was
shell corrosion, ring formation, premature
observed that strength development was
failures of refractories particularly burner
rapid at 90°C temperature curing but the
lining failures. Accordingly, guidelines for
specimens showed dimensional instability.
improved refractory engineering practices
The performance of geopolymeric cement
are drawn, covering present practices
was found to be influenced by initial
in the country vis-à-vis global practices,
thermal curing conditions and therefore
particularly use of improved kiln access
needed optimization. Investigations have
for increased safety, ease of operation
also been carried out for preparation of
and reduced down time. Safety inspection
cementitious binders at 27°C temperature
cage during inspection in kilns during
using rationalized curing conditions by
shutdowns, remote controlled machine
alkali activation of blends of fly ash with
for reducing the demolition time, use of
granulated blast furnace slag (GBFS) having
specially designed pay loader for quick
94 percent glass content. The blend ratio
removal of debris, laser light for drawing
as well as water content at fixed range of
accurate centre line before starting
Na2O required to be optimized to obtain
brick installation, pallets to transported
better compressive strength property.
bricks, Improved version of installation
Tiles and brick shaped bodies were also
machine for increased lining speed and

162
 cast by alkali activation of fly ash mixed “UNFC” guidelines. The total limestone
with bottom ash. 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.

• Preliminary investigation for beneficiation

on laboratory scale for low / marginal

Attached & Subordinate Offices and other Organisations

Fly ash Based Geopolymeric Tiles
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.

SEM of alkali activated 28 days cured fly ash-BF system

• At the Independent Testing Laboratories,

evaluation for chemical, mineralogical,
microstructural and physical properties
XRD Pattern at Different Sieve Size Fractions
of materials such as limestone, laterite,
bauxite, clay, coal, alternate fuel, water, • “Performance Assessment of Existing Air
admixture, clinker, cement, brick, Pollution Control Equipment (APCE)” at
aggregate, concrete, refractory etc one of the Cement plants in Meghalaya
samples were carried out at different was carried out, wherein 9 major (APCE)
NABL accredited and BIS recognized were monitored. This included 6 Bag
laboratories. During the year, more than House/filters and 3 ESPs. Various process
7800 samples are expected to be tested. parameters, dust concentration at inlet
and outlets of APCE were measured to
II. Mining, Environment, Plant Engineering
evaluate the performance.
and Operation
• Environment Monitoring studies were
• NCB under its continuous activity of
carried out at two cement plants in
“Updating of National Inventory of
Rajasthan under which ambient air quality,
Cement Grade Limestone Deposits in
point source emissions, water quality and
India” is updating it through regular
noise level near plant machinery and
interaction with various central agencies
ambient noise were monitored.
and state DGM’s for collection of data on
latest status of limestone resources as per

163
Attached & Subordinate Offices and other Organisations
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 reducing
the emissions of NOx and SO2 are being
evaluated.
• Studies on “Water Footprint Assessment
for Cement Plants” have been taken up.
Literature Survey on methodology for
carrying out water footprint assessment
(as per ISO 14046), studies carried out
worldwide on water footprint assessment,
water consumption in different sections
of 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.
164
• 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
for electrical, mechanical and fire fighting
installation 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 in
bid opening, monitoring and controlling
the project implementation activities
and providing the support for project
supervision”
• Technical Feasibility Study for fly ash
unloading from rail bowsers, storage,
feeding system and bulk cement truck
loading system
 “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, feeding
iii. Construction
and loading system for their plant at
Research
Walayar”
• Evaluation of Sintered Fly ash Light Weight
• Technical Feasibility Study for Fly ash
Handling System
“A study has been done by NCB for a cement
plant in Gujarat for installation of fly ash
unloading, storage and feeding system
with evaluation of various possible cost
effective and environmentally sustainable
• Petrographic and Mineralogical Analysis
options”
• 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, feeding and storage of different
grades 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
• Evaluation of concrete making materials,
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
study for efficient and highly accurate bag
counting 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 effective
solutions”
Development and
Coarse Aggregate as an alternative natural
coarse aggregate for production of light
weight structural concrete. Draft standard
Attached & Subordinate Offices and other Organisations
specification also prepared for sintered fly
ash light weight aggregate and sent to BIS
for formulation of Standard.
and Alkali Aggregate Reaction (AAR)
studies were carried out on different fine
and 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.
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, silica
fume, GGBS, water, fine and coarse
aggregates, 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.
165
Attached & Subordinate Offices and other Organisations
Mercury Intrusion Porosimetry for determination of porosity
Flexural testing of reinforced concrete beam
• 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
fine aggregate in concrete.
• 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
resistance of different grades of concrete
using 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
effectiveness of crystalline water proofing
admixture has been taken up.
166
and pore size distribution
• 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 by
laboratory 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 of
quantities. Centre has investigated more
than 25 projects.
• Study on field and laboratory investigations
of 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
 specified quality standards in delivering
quality 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.
Third party inspection/quality assurance for construction of
multistoried DDA apartments at Dwarka, New Delhi
iv. Industrial Information Services
• NCB Library serves as the national
information centre for cement, building
materials and construction industries. The
holdings of the Library have grown to 46,
510.
• The Library has maintained and updated
a bibliographic database consisting of
about 41,970 entries.
• Service of WEBOPAC is continued. List of
indexed 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
• 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 this
MoU, NCB is providing Third Party Quality
Assurance and Audit services for various
projects of IDCO spread all over Odisha.
Attached & Subordinate Offices and other Organisations
Third Party quality assurance for The construction of HIG
houses at Jasola, New Delhi
with some Power on Ethernet facility. IT
is strengthened with centralized D-view
network management software for
network flow monitoring.
• Web Technology based Laboratory
Information Management System (LIMS)
covering 3-5 Laboratories & 50 users
(Max), common database, Hardware &
Software/Data redundancy procured &
Installation Completed. 3 Laboratories
consisting 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
alongwith MS Windows 10, MS Office Std
2013 & Symantec Antivirus – Corporate
edition.
167
 • 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.
• Cyberoam Firewall with filters & bandwidth
management software installed after PoC
With Cyberoam Firewall & filters, internet
bandwidth is managed and monitored; it
is suitable to take multiple internet inputs.
Attached & Subordinate Offices and other Organisations
• Internet Leased Line (ILL), Radio Frequency
(RF) 4mbps bandwidth is effectively
utilized. After having the RF internet
connectivity, the internet connection
failures have been minimized.
• Fibre Vs. Copper cable redundancy
ensured for the NCB-B LAN to take care
of 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) on raw materials including industrial
waste, 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
168
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
Two Long Term Courses (Full time-Post Graduate
Diploma in Cement Technology & Distance
Learning Correspondence Course – Diploma in
Cement Technology), 19 Short Term Courses, 14
Special Group Training Programmes, 2 Simulator
Based Courses, 3 Contact Training Programmes
were organized on different topics covering
cement, 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:
• Assistance in NABL accreditation
• 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
• Calibration of lab equipment of 5 coal
testing laboratories
• Calibration of laboratory equipment of
material testing laboratories
• Interlaboratory comparison study at 3 QC
Laboratories for Proficiency Testing
• Quality audit of coal testing laboratory
• Laboratory assessment and proficiency
improvement study for quality control
laboratory of four cement plants
In addition, the centre has provided services in
proficiency testing (PT), equipment calibration
and 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 and
980 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 design
education 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 force with effect from September 16, 2014.
With an experience of more than five decades
in 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
as a scientific and industrial research organization
by the Department of Science & Technology,
Government of India.
Attached & Subordinate Offices and other Organisations
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
diverse fields such as textiles, product design, craft
design 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 education
and promote design awareness and application
towards improving the quality of life by or through
the fulfillment of the following:
• 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 the
masses.
• Undertaking fundamental and applied
research to create cutting-edge knowledge
in diverse areas of design and allied fields.
Attached & Subordinate Offices and other Organisations
• 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 consultancy
services 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.
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Professional Education Programmes:
NID has become one of the best design institutes
in the world with a graduate programme (B.Des.)
and Masters in Design (M.Des.) across five broad
faculty streams and eighteen diverse design
disciplines. The institute also has state-of-the-
art infrastructural facilities such as the Skill
Development Labs, Knowledge Management
Centre, Information Technology (IT) Centre, and
Design Vision Centre. These have helped NID
establish its leadership and pre-eminence among
various design institutions.
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
in a multidisciplinary environment for the benefit
of 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
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
Liver etc. Some of the other important projects are
“Discovery of India” exhibition at Nehru Centre,
Monetary Museum for Reserve Bank of India,
Interior Design Projects for Patent Offices, design
of 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
Attached & Subordinate Offices and other Organisations
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  Logo Design for Director General of
1stApril 2016 to 30th Nov 2016 : 08 Nos. Supplies and Disposals, Delhi

Number of projects on going as on  Design of UDID Card for Ministry of Social

30th Nov 2016 :48 Nos. Justice and Empowerment, New
Delhi
Proposals Sent 1st April 2016 to
30th Nov 2016 :27 Nos.  Logo Design for Swarnim Gujarat Sports
University, Gandhinagar
Projects in pipeline :7 Nos.
 Customization of Visual Design of Driving
Some of the Major On-going Projects are as
License and Vehicle Registration
under:
Attached & Subordinate Offices and other Organisations

Certificate for Daman Diu, Dadra & Nagar

 Design of GUI for Audio/AVN Screen Haveli
System in Car Dashboard for Hyundai
 User Interface (UI) Design of Digital
Motor India Engineering Pvt. Ltd (R&D
Evaluation Solution for Tablet for Tata
Center), Telangana
Consultancy Services, Mumbai
 Design of Mrignayanee Emporium at
 Design of Mamta Card Commisionerate of
Khajuraho for SantRavidas Madhya
Health Medical Services Medical Education
Pradesh HastshilpEvamHathkargaVikas
& Research, Gandhinagar
Nigam Limited, Bhopal
 Design of Home Museum, Lalbhai Family,
 Design of Visual Identity (Logo) for
Ahmedabad
Jharkhand State Co-operative Bank Ltd.,
Ranchi  Logo Design for Forum for Regulators,
C/o. Central Electricity Regulatory
 Development of Road Nomenclature,
Commission, New Delhi
Address System and Signage Manual
for Amaravati Capital City of Andhra  Logo Design for Income Tax
Pradesh for Capital City Development and Department
Maintenance Authority, Vijaywada
 Design of Thinking Curriculum for Tata
 Preparation of Feasibility Report for Consultancy Services
Setting Up Design Institute under Vedanta
 Jewellery Trend Research for India for
University
The Gem and Jewellery Export Promotion
 5 – Day Workshop on Design & Ergonomics Council
for Warship Building for Mazagon Dock
 Design of Think Space for Tata Consultancy
Ship Builders Limited, Mumbai
Limited., Chennai
 Logo Design for Agricultural and Processed
 Designing of Digital Exhibition on Sardar
Food Products Export Development
Patel
Authority (APEDA), Delhi
 Aesthetic improvement of interiors and
 Design of logo for Dial 100 for Additional
passenger amenity items: Non-AC sleeper
Director General (ITECCS & Traffic), Uttar
Coach
Pradesh Police, Lucknow

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 Logo Design for Indian Institute for
Packaging, 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
 Visual Design of IOCL Retail outlets
 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 workshop was to help the artisans by developing
Delhi
 Styling/aesthetic design of Fetal Heart
Rate (FHR) Device for Siemens Ltd.
 Interior Design of Conference Room/Hall
of office of the DGFT for Director General
of Foreign Trade
 Design of Logo for IIM Raipur
 Packaging System design for ELGI
Equipments Ltd. Coimbatore
 Aesthetic Design of Telecom
Towers- Ramboll Soft, IMI Ltd., Hyderabad
 Design of Regulator of Gas
Equipment-ESAB India Ltd., 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 INRECA
Dediapada, 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
Attached & Subordinate Offices and other Organisations
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 at
Baripada (Odisha). The main objective of the
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
artisans was conducted in October 2016 in five
Common 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 identified
skilled 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 – Sabka Vikaas”, at Vigyan Bhawan, New Delhi on
Workshop in Copper May 28, 2016.

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, "Product development & Diversification
workshop" in Copper was conducted in
Attached & Subordinate Offices and other Organisations
Teams consisting of faculty and students have
completed preliminary craft documentation and
submitted their reports and these reports are
being edited for final documentation. 
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.

November 2016 wherein the artisans worked in

Each team interacted with at least 20-25 artisans
collaborative manner under the guidance of NID
in each cluster.
Faculty Designer by exploring new opportunities
and utilizing their traditional skills and materials A Design Development Workshop in Glasswork
to develop marketable products. Towards Flame Work in Firozabad is planned to conduct
Phase-2, "Product development & Diversification from 15th December 2016 to 24th December
workshop" in Copper will be conducted in 2016. The main aim of the workshop is Capacity
December 2016. Building of artisans by development of new skills
and up-gradation of the existing skills.
Design Knowledge partner for USTTAD
In Manipur Black Pottery Cluster, the Cluster Head
NID has identified 11 clusters for the first phase
has invited two master craft persons to NID from
out of which work for seven clusters have already
Manipur to conduct an initial workshop from 5th
started. The Ministry had conveyed its approval to
Dec to 23rd Dec. to understand the techniques
start work on approved clusters vide letter dated
used by them and to develop new techniques
11th May 2016.
before the main three design development
NID conducted a month-long pilot project for workshops.
the Stone Craft and Jamdani Fabric Clusters of
In each Cluster, three Design Development
Varanasi wherein prototypes were launched.
Workshops – each works spans over 15 days (two
In Jamdani fabrics, NID team had developed a
design development workshops at each clusters
collection of 18-20 garments as value added
and one at NID) are planned and will be executed
products. The outcomes of the pilot project were
before March 2017.
exhibited at Banaras Hindu University (BHU)
Complex, Varanasi which was inaugurated by International Centre For Indian Crafts (ICIC)
the erstwhile Hon. Minister of Minority Affairs
Nakashima Workshop having keys activities
on April 30, 2016.  The Jamdani garments were
such as Exhibition -The Free Edge, Symposium
also showcased at the Seminar Hall of BHU.  A
Discovering Nakashima, Wood workshop and
catalogue of the products developed by NID was
Student Design Competition from 18th October
also launched during the event.   
to 21st November 2016 at NID 2016.
NID showcased the pilot project as part of the
Industry Programmes And Projects:
event "Achievements of the Ministry of Minority
Affairs" for welfare and development of minority In order to meet the specific requirements of
communities to achieve the vision, “Sabka Saath the 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 different
Institutes 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 different
Institutes and Organisations
 A five day workshop on “Introduction
to Design Thinking and Methods” was
conducted during 22-26 August, 2016 at
the NID, Ahmedabad. Total 30 participants
attended the workshop from different
Institutes 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 different
Institutes and Organisations.
In order to create design awareness among the city
students, IP&P also conducts summer workshops at
concessional fees. This year 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
Attached & Subordinate Offices and other Organisations
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:
Two days off campus workshop on “Basics
of UI and Implication of Automotive
Human Machine Interface (HMI) Design”
for Maruti Suzuki India Limited, MSIL
Campus, Gurgaon for their officials was
conducted during 17th and 18th
October 2016, Gurgaon. Total 25 officials
attended off campus progamme. The
programme 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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Attached & Subordinate Offices and other Organisations

Online Programmes (NODE): was soft launched in Feb. 2010 by the DC MSME.
Since inception, NID has set up zone-wise regional
With the seismic shift in technology and
Centres at Delhi, Ahmedabad, Bengaluru, and
education NID, has taken a progressive incentive
Kolkata and an Extension Centre for North-East
in imparting design education through online
at Guwahati during phase 1 implementation. The
medium. Received 668 registrations for NID’s
scheme aims for reaching out to the MSMEs by
Online Design Education (NODE) for “Design
providing hand holding support, design expertise
Fundamentals” course till date.
and financial assistance through various activities.
MSME – Design Clinic Scheme: During the phase 1 implementation, we have
successfully conducted 396 Design Awareness
For spreading design awareness among
Seminars across the country. So far 640 design
the MSMEs of the country and improving
project proposals have been registered with
competitiveness, the DC MSME has initiated
the Scheme by a varied group of MSMEs and
the Design Clinic Scheme for MSMEs. NID has
Professional Designers, out of which 353 have
appointed as the Single Coordinating body/
been approved. 192 projects stands successfully
Nodal Agency for implementation of the Design
completed and 54 are in various stages of
Clinic Scheme for increasing the manufacturing
completion. Young designers undergoing their
competitiveness of micro, small and medium
final year of studies in design and allied Institutions
enterprises across the country. The Scheme
across the country have continued to take the
envisaging a total budget outlay of Rs.73.00
programme seriously and 115 student projects
crores (Government of India’s component of
have been approved so far for finding design
Rs.49.5 crores with 5% design fees for NID) as first
solutions for MSMEs out of which 95 Student
phased of the scheme under 11th five year plan

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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
Profession firms, 73 Design Education Institutions,
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
a major tool for the benefit of Indian MSMEs in the
years ahead, and affords greater opportunities to
the 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) the same.
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
Attached & Subordinate Offices and other Organisations
 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 and
applied 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
 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
fields of design relevant to rail transport
and 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
Attached & Subordinate Offices and other Organisations
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
improvement in natural fibres processing
techniques, capacity building in natural
fibres development, and utilisation
through 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 fibers
as a primary material. It is expected
that, significant benefits to the local and
national 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 values
based on the research. This initiative will
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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.
 Creating Digital-Learning Environment for
Design 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- first
edition): 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 on Design (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.
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 Lifestyle Accessory Design Meet 2016 (03
& 04 December, 2016) at NID PG Campus,
Gandhinagar
Attached & Subordinate Offices and other Organisations
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
Attached & Subordinate Offices and other Organisations
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, French
Institute in India, New Delhi, Ms. Frédérique
Terzan, Director, Alliance Française of
Ahmedabad and Jatinder Singh, Deputy
Head French Language Office, French
Institute in India, New Delhi had visited
NID on 29th August 2016.
 Sir Dominic Asquith, British High
Commissioner to India and Geoff Wain,
British Deputy High Commissioner,
Ahmedabad had visited NID on 01st
September 2016.
 Sir Dominic Asquith, British High
Commissioner to India and Geoff Wain
NID Vijayawada transit campus
180
 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 finalized
selection of Design Consultant also. The tenders
for construction work will be floated by NBCC
soon.
NID Vijayawada transit campus Industrial Design and Communication Design is
20 in each discipline.
The first academic session of NID Vijayawada has
commenced from 7 September 2015 in transit NID Kurukshetra
campus in Acharya Nagarjuna University, Guntur
State Government of Haryana has allotted 20.5
provided by the State Government. The institute
acres of plot for the construction of National
has completed admissions for the second
Institute of Design at Village Umri, NH 1, Pipli,
successive year from 11 Jul 2016. The institute has
Kurukshetra. The foundation stone was laid by
successfully completed first semester of second
the then Hon’ble Chief Minister of Haryana and
academic year and started second semester on 26
the then Minister of Commerce and Industry,
Dec 2016. 112 students from the first two years are
Govt. of India on the 22nd May, 2013. The

Attached & Subordinate Offices and other Organisations

undergoing their courses of studies. Admissions
boundary wall of the plot has been completed.
for the third successive year are announced
Further NBCC has awarded the construction work
jointly with the NID Ahmedabad and admissions
to M/s Jaycon Infrastructure Ltd. The construction
will be conducted along with NID Ahmedabad
work has commenced in August 2016 and is likely
and Kurukshetra. The present intake capacity of
to be completed in February 2018.
the undergraduate program in Textile Design,

NID Kurukshetra transit campus

by the Government of Haryana with all the basic

NID Kurukshetra transit campus amenities. The first batch of students is selected
The institute has started its first academic year through the all India level Design Aptitude Test
from 15th November, 2016 from its transit conducted by NID Ahmedabad. The first batch
campus at Umri Polytechnic building provided of 54 students are undergoing one year common

181
 foundation programme. NID Kurukshetra offers
four 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
related software, well equipped Studios, Labs and
Workshops, etc. Other infrastructure facilities
Attached & Subordinate Offices and other Organisations
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
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
of NID and they have finalized selection of Design
182
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
senior officers of NID Ahmedabad are functioning
and providing all administrative, financial and
academic services in officiating capacities assigned
by 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.
Consultant also. NBCC has awarded work to M/s
Universal Contractors and Engineers Pvt. Limited
for 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
second floors of each building and The academic
session would be started after the construction of
the institute is over.
NID Jorhat
The Assam Government allotted land measuring
93 Bigha 1 Katha 17 Lessas covered by Dag No.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
they have finalized selection of Design Consultant
also. 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. The work is likely to be completed in
December 2017.
The Quality Council of India, New Delhi
The Quality Council of India (QCI) has been set
up as a non-profit autonomous society registered
under Societies Registration Act XXI of 1860
to establish an accreditation structure in the
country and to spread quality movement in India
Attached & Subordinate Offices and other Organisations
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.
183
 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
Certification Scheme” for Manufactur- Assessment, Rating & Scheme notified
ing Sector. Handholding of 22,222 FY 16-17: 500 units by the MoMSME in
(manufacturing) MSME FY 17-18: 10000 units the month of July,
Support & Subsidy by Ministry of
units in the next 3 years FY 18-19: 11722 units 2016.
MSME Rs. 491 Cr. (GoI Contribution
(2016-19). Ongoing
Attached & Subordinate Offices and other Organisations

365 Cr., Beneficiary: 126 Cr.) over a

period of three years

National Accreditation Board Of Healthcare (NABH)

Activity / Project Objective / Target Timeline Current Status
Hospital Accreditations 100 31st March 2017 17
SHCO Accreditations 35 31st March 2017 14
Blood Bank Accreditations 6 31st March 2017 6
MIS Accreditations 10 31st March 2017 9
Dental Accreditations 15 31st March 2017 14
AYUSH Accreditations AYUSH targets depends on Government support. 11
However, NABH commits to conduct approximately
20 promotion & awareness program including par-
ticipation in exhibitions / fair
Pre Entry Hospital Certifica-
120 31st March 2017 95
tion
Pre Entry SHCO Certification 24 31st March 2017 30
Safe -I Certification 35 31st March 2017 27
Nursing Excellence Certifica-
20 31st March 2017 16
tion
ECHS Empanelment 166
CGHS Empanelment All ECHS & CGHS applications shall be processed, 302
Oral Substitution Therapy being mandatory
(OST) Empanelment
TRAINING PROGRAMMES:
This includes Programs on
Promotion, Implementation, 50 31st March 2017 59
education workshops in all
NABH Accreditation Program
Accreditation of Integrated
Rehabilitation Centres for
Addicts (IRCAs) 50 Proposed Not yet started
(Ministry of Social Justice and
Empowerment)

184
National Accreditation Board for Certification Bodies (Nabcb)
Activity / Project Objective / Target Timeline Current Status
New Accreditation To establish NABCB accredita-
Programme(s) tion programme for Green House
In FY 2016-17 Ongoing
Gases (GHG) Validation and Verifi-
cation Bodies
Peer Evaluation of To have international peer evalu-
new NABCB Accredi- ation of NABCB accreditation
tation Programme(s) programme(s) for Ongoing

• Personnel Certification In FY 2016-17

Attached & Subordinate Offices and other Organisations

• GHG V&V In FY 2017-18
Training At least 2 training programmes * 2-day Workshop for Capacity
Programme(s) for Building in Certified Reference
personnel of other Material Production for the
Accreditation Bodies South Asian Association for
/ other Countries 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
In FY 2016-17
Certification Bodies.

> 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 5 Consumer Awareness Pro- * Dehradun – 08 July 2016
Programme(s) grammes on ‘Quality in Products In FY 2016-17
* Chennai – 25 November 2016
& Services’

185
 National Accredication Board For Quality Promotion (Nbqp)

Activity / Project Objective / Target Timeline Current Status

Promotion of ISO 9001 in government de- 6 (Completed)
5-10 By March 2017
partments., viz DIPP & Commerce (MoI&C) 3 (Ongoing)
Promotional Programs on Quality (ISO stan- 20 (Completed)
dards, Quality Tools & Techniques, Building 25-30 By March 2017 6 Programs planned –
Quality Culture etc. Nov/Dec
National Quality Conclave / Quality Month 1 (Completed)
1 each By March 2017
Celebration 1 (Ongoing)
Operational Excellence Projects in Depart-
1-2 projects By March 2017 1 Ongoing (Kaizen)
Attached & Subordinate Offices and other Organisations

ments through Kaizen, 5S, Lean etc

Registration to Professional Membership Total as on
To enhance by
Scheme of QCI Nov 7, 2016 – 520
100% (to 1000 By March 2017
From April ’16 – 184
members)
members added
Registration of Management System courses
To enhance by 20%
( Quality, Environment, OHSAS, Food safety, By March 2017 28
(to 36 courses)
Food Hygiene, ISMS, Energy Management)
Registration of Auditors / Consultant for Total as on Nov 7,
Management Systems related to Quality, To enhance by 10% 2016 – 91 From April
By March 2017
Environment, Food Safety etc. to 130 numbers ’16 – 14 Auditors/
Consultant added
QCI D L Shah Quality Award Scheme 1 By March 2017 1 completed
Periodic Publications for Quality Awareness 5 (mags/book) By March 2017 4
Management System Course Assessors Train-
25-30 assessors By March 2017 Planned for Q4
ing (New initiative)
Registration of Lab Consultant (New initia-
20-25 consultants By March 2017 2*
tive)
Specialized Training on TPM, TQM, Lean and
2-4 programs By March 2017 2
Operational Excellence (New Initiative)

National Accreditation Board for Education and Training (Nabet)

Activity / Project Objective / Target Timeline Current Status
ITI accreditation ITI Accreditation – QCI-NABET has been en- Completed
trusted the work of Accreditation of Industrial
1. 3775 applications have
Training Institutes (ITI) by Ministry of Skill Devel-
been received for the
opment and Entrepreneurship. Accreditation by
2500 ITIs period Jan – Oct, 2016
QCI is mandatory for ITI s to get NCVT affiliation.
by October
2. 2695 ITI’s have been
NABET-QCI has been able to successfully create 2016
accredited in the current
a user friendly, transparent and credible accredi-
session.
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.

186
Activity / Project Objective / Target Timeline Current Status
Rating of ITI's A case has been forwarded to MSDE/DGT for Approval of proposal
NA
rating of ITI's awaited
Capacity An MoU was signed between DGT and QCI for
Building of ATIs capacity building of ATIs (27 in Nos.). However Approval of proposal
NA
for ISO 29990 only 06 ATIs have been allocated so far the task awaited
for which has been completed.
Capacity A case has been forwarded to MSDE/DGT for
Approval of proposal
Building of ITIs capacity building of ITI's for ISO 29990. NA
awaited
for ISO 29990
Lean Manufacturing Competitiveness Scheme

Attached & Subordinate Offices and other Organisations

Operation
of Lean (LMCS) - NABET has been appointed as one
Manufacturing of the National Monitoring Implementation
Competitiveness Unit (NMIU) along with NPC in the current
Scheme of 5 year plan by Ministry of Micro, Small and
150 clusters have been
MSME Medium Enterprises for Implementing Lean
formed. Clusters are
Manufacturing Technology in MSME Clusters. 150 Clusters
in different stages of
The target allocated to NABET for the year by March
implementation. 14
2015-16 has been completed successfully. 2018
clusters are in final stages
Implementation of Lean Tools and Tech-
of implementation.
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
under LMCS Scheme.
1. Additional 50 clusters
and 50 Awareness
programs have been
allocation in august, 2016

2. As on date out of
additional 50 clusters
Formation of
being allocated to us, 35
new Clusters
clusters have been formed
and Awareness
while balance 15 clusters
Programs to be
are expected to formed by
allocated by DC
end of Dec / Jan
(MSME) Office
3. Out of additional 50
awareness programs
being allocated to us, 17
awareness programs have
been conducted and rest
are in pipeline stage

187
 Activity / Project Objective / Target Timeline Current Status
Schools 1. Mandate on assessments of Schools under Proposal submitted to
Assessment and CBSE board Odisha Govt. Approval is
Accreditation awaited.
2. Accreditation of schools under state boards
like Punjab, MP and Maharashtra NA

3. Grading of Schools

4. Accreditation of Kendriya Vidhalayas

Assessments of
182 accredited (process is
Attached & Subordinate Offices and other Organisations

EIA consultant 170 March 2017

going on)
organization
NABET-QCI Approval of proposal
proposal for awaited from Ministry
Expected in
assessing Awaiting MoEF&CC directive
this FY
compliance of
EC projects
Accreditation To provide voluntary accreditation to Vocational
of Vocational Training Providers. Accreditation of 10 Training 13 VTP Accredited. 4-5
March 2017
Training Providers targeted. more VTP’s are in pipeline.
Providers
Accreditation NABET-QCI has developed a scheme for
of Business accreditation of Business Membership
Membership Organisations (BMO) or Industry association in
Organisation cooperation with Ministry of MSME and GIZ,
(Voluntary Germany. The purpose of the scheme is to
Accreditation) accredit and recognize competent and credible
industry associations for strengthening the 11 accredited and 15 New
MSMEs for meeting various national objectives. March 2017 applications received.
Many financial institutions like SIDBI, IDBI bank
etc. 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.

Scheme for accreditation of SIA consultants has Status Quo. No Change in
Accreditation of
been developed by NABET and is awaiting sup- status
SIA Consultants
port from the Ministry of Urban Development
Existing schools and new schools to be added
School
this year On going Ongoing
Accreditation
Workshops and New Consultants to be added
NCTE - Teacher E monitoring of websites of all TEIs and assess- 1961 TEI’s has applied so
2016-17
education ment of TEIs conducting diploma courses far

188
Activity / Project Objective / Target Timeline Current Status
Approval of proposal
awaited from NDMC.

Assessments of Accreditation and capacity building of trainers Expected in NABET have backed a
NDMC schools of all NDMC schools this FY project from Delhi Govt. for
assessment and evaluation
for quality improvement of
5 Delhi Govt. Schools

QCI Projects

Attached & Subordinate Offices and other Organisations

Activity / Project Objective / Target Timeline Current Status
Part of the Swachh Bharat campaign of the
Government. In the second phase we neet To be completed
Swacchh Survekshan Ongoing
to assess cleanliness in 500 cities across the by February
country and rank them accordingly
Part of the Swachh Bharat campaign of the
government. To assess cleanliness in 75 To be completed
SBM Rural Completed
districts across the country and rank them by 30th June
accordingly
Part of the Swachh Bharat campaign of the
government. To assess if urban local body can First phase to be
SBM (U) – Open
be declared Open Defecation Free. Project completed by Ongoing
Defecation Free
Mandate to assess all 4041 towns and cities March 2017
across India at a regular interval of 6 months
Project to map all the publicly accessible
toilets of India on google maps. QCI to start in To be completed
NCR Bhopal and In-
NCR on private assessment model and Bhopal by 15th Septem- Completed
dore toilets mapping
and Indore on project management based ber, 2016
assessment model
To check Open defecation free status in To be completed
Gujarat Rural ODF Mehsana District as part of SwachhBharata by 1st October, Completed
Rural 2016
Conduct an extensive survey of first of its kind To be completed
Drinking Water Pilot to start from
in ~5600 village in India to assess current by 1st January,
Survey 10th November
status of piped drinking water 2017
Undertake the inspections of premises of
prospective project institutes for verifying the
To be completed
claims of fulfilling the eligibility conditions
PM Yuva by 9th November, Ongoing
for empanelment under the National scheme
2017
of Entrepreneurship Development, a scheme
delivering online education

189
 Lead Safe Paint To have a Lead Safe Scheme launched in India
Scheme An MoU with to be inked by Quality Council
of India (QCI) with IPEN so that activities are
In FY 2016-17 Ongoing
taken up under the seven-nation EU-SWITCH
Asia Lead Paint Elimination Project for e
reducing Lead in Paints.
AYUSH Mark Promoting quality in AYUSH manufacturing,
Scheme streamline processes and aiding international
trade.

In FY 2016-17 Ongoing
Working with M/o AYUSH to issue Certificate
Attached & Subordinate Offices and other Organisations

of Pharmaceutical Product (CoPP) to

manufacturers certified to AYUSH Premium
Mark

National Productivity Council, Knowledge Management, Energy Management,

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.
The Corporate Office of NPC is located at New
Delhi. 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
various productivity subjects for the benefit of its
clients. The specialized productivity functions dealt
by NPC are Process Management, Environment
Management, Information Technology and
Human Resource Management, Agri-business
Technology Management etc.
NPC also has a networks of over 24 Local
Productivity Councils (LPCs) situated in the
country to spread the message of productivity
and dissemination at grassroots level. NPC is
the implementation agency for programmes/
activities relating to India of the Tokyo based
Asian Productivity Organization – an inter-
governmental body for promotion of productivity
in the Asia-Pacific region of which the Government
of 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

190
• NPC conducted Manpower Optimization
study of Uttranchal Factory of Britannia
Industries Ltd., Bengaluru. The study has
helped 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
thermal and also gas fired heating systems.
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
identified total investment requirement of
Rs. 31.0 crores.
• Indian Rubber Manufacturers Research
Association (IRMRA), Mumbai an
autonomous organisation under DIPP
entrusted the task of conducting One
Time System Audit covering Testing Labs,
R&D, Stores, Purchase, Finance and HR
Divisions. NPC team identified the areas
for improvement in Asset Management,
Costing Method requirement,
Maintenance of Lab equipments, review of
project costing and realisation, monitoring
of lead time for testing, stores and
inventory management, review of disposal
procedures for tyre and non-tyre samples,
stream lining and fixing responsibility for
realising bad debts.
• NPC Mumbai and other regional
offices reviewed the security systems
implemented 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 Job
Positions 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
filled up for the representative workmen
by the supervisors of the various sections
/ groups of the plant. Positional Job
Attached & Subordinate Offices and other Organisations
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 as defined
in 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 Competitiveness
Scheme (LMCS) in the year 2009. Based
on 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
191
 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
implement Lean Manufacturing tools and
techniques.
In the state of Maharashtra 40 clusters
Attached & Subordinate Offices and other Organisations
each comprising of 7-10 units have been
formed. About 380 units are participating
in this scheme where Lean Manufacturing
techniques 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
officers and staff categories of employees
belonging 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,
192
recommended manpower for the
above listed departments, Productivity
improvement issues (wherever possible)
• Manpower assessment study at the Office
of 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 to
suggest a suitable revenue model for the
same.
• BCCL awarded the Man Productivity Study
of 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 quantifiable
in terms of coal output and manpower
utilization position wise for all jobs under
scope of work and its rationalization.
• Central Coalfields Limited (CCL) awarded
the 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 coal
output and manpower utilization position
wise for all jobs.
 Productivity Review and detailed study
of the OCP Rajrappa was carried out by
the NPC team on various factors like,
existing capacity utilization, age profile
of machines, manpower utilisation,
operation of various machines like shovel,
dumpers, dozers, drill machines, existing
organization.
• Safety Audit NTPC FSTPP -
• M/s Central Mine Planning & Design
Institute, Ranchi, (CMPDIL) awarded the
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,
National
Thermal Power Corporation, Farakka -
NPC Kolkata carried out an external Safety

Attached & Subordinate Offices and other Organisations

work order of establishing benchmark of
drilling output for different types of drilling
being carried out in different geographical
formations 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 drilling
technologies. 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 deployment will save a significant
demurrage charges as well as loading time,
enhance effective production capacity by
reduction in stoppages by implementing
short term measures,
• PAT Monitoring & Verification Audit
for DVC, BTPS, Bokaro and DVC, DTPS,
Durgapur. West Bengal State Electricity
Distribution Company Limited (WBSEDCL)
is the State Designated Agency to
implement the provisions of Energy
Audit as per IS: 14489:1998 (Reaffirmed
2002) 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) – Code
of 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

193
 Energy Development Agency (APEDA),
Itanagar, Arunachal Pradesh. Energy
management programme at Bongaigaon
Refinery, IOCL Manpower Assessment
programme for Bangalore Electric
Supply Co Ltd, Bangalore, Zuari Cement,
Sitapuram, Sri SriAyurvedha, Bangalore,
Kirloskar Ferrous Inds Ltd, Koppal.
• Energy Audit at Moog Control India
Pvt Ltd, Bangalore and Tumkur Diary,
Attached & Subordinate Offices and other Organisations
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 and
Maintenance 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.
194
• Assessment of Quality of School Education
in schools funded by NEEPCO Ltd in
Assam, 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, Assam
and ONGC Tripura Power Co. Ltd.,
Organisational Productivity through
Lean Management at 1 Advance Base
Workshop, 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 Effective Maintenance
Programme for Indian Oil Corporation
Ltd., Mumbai.
• Energy Conservation & Energy Efficiency
programme for Arunachal Pradesh Energy
Development Agency (APEDA), Itanagar,
Arunachal Pradesh.

Representation of Scheduled Castes/Scheduled
Tribes/OBCs/ Ex-servicemen and Physically
Disabled persons in Services
The Government’s efforts for safeguards of public
employment for persons belonging to Scheduled
Castes and Scheduled tribes are instrumental in
ensuring inclusive growth of the Nation, free from
discrimination and sufferings. In accordance with
the policy of the Government of India, a SC/ST
Cell has been created in the Department under a
Liaison Officer of the rank of Deputy Secretary with
the objective of ensuring proper implementation
of the instructions issued from time to time
relating to reservation for SCs/STs in Government
service. The SC/ST Cell in the Department is
responsible for monitoring the implementation
of the instructions of the Government on the
reservation of SC/ST in services in the Department
as well as in various attached/subordinate offices,
inspection of reservation rosters, ensuring
submission of regular returns to the Department
of Personnel & Training.
Similarly, a nodal officer has been appointed in
the rank of Deputy Secretary, for ensuring proper
implementation of the instructions issued from
time to time in respect of OBCs in government
service.
Periodic directions are also issued by the
Department to all administrative sections as well
PROFORMA
S.No. Category of Post Sanctioned
Strength
1. A 1777
2. B 1323
3. C 1326
4. C# 952
# Erstwhile Group ‘D’
Chapter 16
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
Representation of SC/ST/OBCs/Ex-servicemen
in Service
and Physically Disabled persons in Services
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 been making efforts in
the matter and the instructions issued by the
Government of India from time to time are being
implemented in the Department and circulated to
all attached/subordinate offices and autonomous
organizations under the Department, ensuring its
compliance.
The breakup of number of Persons with Disabilities
and Ex-servicemen working in the Department of
Industrial Policy & Promotion and its Attached/
Subordinate offices and Autonomous Bodies is as
follows:
No. of Physically No. of
Handicapped Persons Ex-Servicemen
13 1
9 7
27 18
13 4
195
 Chapter 17
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.
Women Welfare Activities
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
196
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.

Implementation of Official Language Policy
Official Language Policy of the Government
Hindi in Devnagari script has been adopted as
the Official Language in the constitution of the
country and for ensuring its progressive use in
the Ministries/Departments and offices under
their control, Official Language Policy has been
derived. As required in the above policy, every
possible efforts were made during the financial
year 2016-17 in the Department of Industrial
Policy and Promotion, Ministry of Commerce
& Industry to ensure proper compliance to
constitutional provisions of Official Language
Policy and requirements of Programmes/Activities
prescribed by the Nodal Ministry – Department
of Official Language, Ministry of Home Affairs
thereunder.
With the aim of ensuring maximum use and
propagation of Hindi in the Department as well
as in the offices under it, all possible steps were
taken 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, Licenses etc. including
all 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
Official Language Rules 1976 of Official Language
Act, all letters received in Hindi, were ensured to
be replied in Hindi only.
Chapter 18
In consonance with the implementation of various
provisions of Official Language Act, 1963 enacted
by the Parliament after independence and Rules
under Official Language Rules, 1976, all steps were
taken to ensure maximum correspondence in Hindi
with the State Governments, Union Territories
and attached/subordinate offices/public sector
undertakings/institutions of Central Government
located in region ‘A’, ‘B’ and ‘C’ as prescribed by
Deptt. Of Official Language, Ministry of Home
Affairs, for the purpose of implementation of
Official Language Policy. Allout efforts were made
to achieve the targets laid down in the Annual
Programme 2016-17 circulated by Department of
Official Language to all Ministries/Departments.
With active co-efforts by Department’s officers/
Implementation of Official Language Policy
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.
In this way, efforts to achieve the said targets fixed
by M/o Home Affairs, were continued. Concerted
efforts are being made to achieve further progress.
With the aim of achieving increased progressive
use of Hindi in the official work and for effective
implementation of Official Language Act, 1963,
various Divisions of the Department have been
notified to do their maximum official work in Hindi
only. This has helped a lot in getting increased
and fruitful contribution of officers/employees in
the fulfilment of constitutional mandate of use of
Hindi in official work.
197
 Monitoring of Implementation of Official
Language Policy
With a view to have the status of implementation
of various provisions of Official Language
Policy in the Department and Offices/Institutes/
Autonomous Bodies/Undertakings under it, a
Quarterly Report is sought from all divisions of the
Department and offices under its administrative
control. The position is reviewed regularly by the
Official Language Wing of the Department in
context of relevant rules/provisions contained in
Official Language Policy of the Government. The
position is also reviewed extensively on quarterly
basis in the meetings of Official Language
Implementation Committee of the Department
under the chairmanship of the Joint Secretary
(Incharge, Official Language), comprising all
divisional heads (officers of the level of Director/
Deputy Secretary) as members. Decisions taken
in these meetings are circulated to the officers
concerned of the Department and attached/
subordinate offices for necessary action. During
the period under review, in the meetings of the
Committee, very useful and elaborative discussion
Implementation of Official Language Policy
took place and effective as well as practicable
decisions were taken to ensure use of official
language Hindi
For monitoring the position of implementation
of Official Language Policy at highest level, a
high 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 provisions
in the Ministry as well as offices under its
administrative 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
198
in public domain, the related material is uploaded
on the official website in Hindi & English. The
latest information about working/activities/
significant achievements etc. of the Department
as a whole, is made available in Hindi alongwith
English on the website.
The officers of the Department responsible for
implementation of Official Language Policy work,
inspect the Divisions of the Department, as well
as its attached offices from time-to-time to have
an on-the-spot assessment of implementation
of provisions of the Policy. Position is regularly
monitored by the concerned Divisions of the
Ministry.
Training
With the aim of maximizing use of Hindi in official
work, employees are imparted training in Hindi
typing/shorthand as well as in Hindi language
from time to time under Hindi Teaching Scheme
being administered by M/O Home Affairs. It is a
continuous process. This has been very useful in
increasing use of Hindi in the official work. Also,
workshops are organized from time to time to
acquaint the officers/staff of the Department
with requirements of Official Language Policy
of 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 Official
Language Policy, noting/drafting in Hindi as well
as 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
been made available to all the officers/divisions
of the Department containing Hindi version of
various English words, abbreviations, phrases,
short notes etc. being used frequently in the day-
to-day official work. This has been very beneficial
for them in doing work in Hindi and has made
them more confident in this regard.
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 the
Government, M/o Home Affairs, D/o
Official Language have prepared an Annual
Cash 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
a financial year. Recently, the above prizes
have 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
maximum official work in Hindi as a team
having 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 –
Department of Official Language, Ministry of Home
Affairs, like previous years, a ‘Hindi Fortnight’ was
arranged 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 organisations
urging 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 do
Implementation of Official Language Policy
their official work in Hindi. Above included two
competitions 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 bodies
etc. 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
of the officers/employees of the Department and
offices under it, as well as various motivative &
entertaining writings of some prominent writers,
were incorporated in the Magazine. The response
was praise-worthy.
199
 The offices/institutes etc. under this Department, of September, 2016 by all the aforesaid offices.
continued their endeavour towards ensuring Various competitions were organized by them
implementation of various provisions of Official during the period and successful contestants
Language Act and Official Language Policy framed were suitably awarded.
under it, in true spirit. Their correspondence
In this way, Department of Industrial Policy
in Hindi with offices located in ‘A’, ‘B’ and ‘C’
and Promotion under Ministry of Commerce
regions, was found to be encouraging. However,
& Industry and offices/institutes/autonomous
they were continuously urged to achieve further
bodies etc. under it, made effective efforts to
progress and prescribed related targets.
ensure compliance of constitutional obligations
Like previous years, this year also, Hindi Week/ of Official Language Policy of the Government.
Fortnight/Month was organized during the month
Implementation of Official Language Policy

200

Vigilance Activities
The Vigilance unit of the Department is headed by
a Chief Vigilance Officer (CVO) of the rank of Joint
Secretary who is appointed on the advice of the
Central Vigilance Commission. The Chief Vigilance
Officer is the nodal point in the vigilance set up of
the Department in respect of the following:
• Identification of sensitive areas prone
to malpractices and taking preventive
measures to ensure integrity and efficiency
in the functioning of the Department.
• Taking suitable action to achieve the
targets fixed by the Department of
Personnel and Training on 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&SR in respect of officers /officials of
DIPP and Office of the Economic Adviser,
Tariff Commission as well as Group ‘A’/
Group ‘B’ officers of Petroleum and
Explosives Safety Organization (PESO) &
Salt Department.
• Maintenance of APAR Dossiers of all
officers / officials of DIPP, Office of
Economic Adviser, Tariff Commission
as well as Group ‘A’/Group ‘B’ officers
of Petroleum and Explosives Safety
Organization (PESO) & Salt Department.
Chapter 19
Vigilance Activities
• Issue of Major / Minor Penalty and
Integrity Certificates.
• Preventive vigilance.
• Handling and custody of top secret papers
like Union War Books etc.
Matters Relating To Annual Performance
Appraisal Reports (Apar)
• Maintenance of APAR of officers of Indian
Administrative 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, 2014 in respect of IAS officers as per
instructions of DoP&T.
• Smart Performance Appraisal Report
Recording online Window (SPARROW) has
been initiated for CSS officers of Deputy
Secretary and above level and in respect
of CSSS officers of Senior Principal Private
Secretaries and above level officers.
• Maintenance of APAR Dossiers of all
officers/officials of DIPP, Office of the
Economic Adviser, Tariff Commission
as well as Group ‘A’/Group ‘B’ officers
of Petroleum and Explosives Safety
Organization (PESO) and Salt Department.
• The Department has also adopted Web
Based Software Solution for Cadre
201
 Management System (CMC) in respect of overall responsibility of vigilance activities of these
CSS, CSSS and CSCS as per instructions offices however, rests with the Chief Vigilance
issued by the Department of Personnel Officer of the Department of Industrial Policy and
Vigilance Activities

and Training, the Cadre Controlling Promotion.

Authority of these services. This involves
Preventive vigilance continues to receive priority
feeding of relevant entries of Annual
attention with primary emphasis on identification
Performance Appraisal Reports( APARs)
of areas sensitive or prone to malpractices and
in the software (CMS) in respect of Group
temptation. Compliance of the guidelines/
‘A’& ‘B’ (Gazetted) officers of CSS/CSSS
instructions issued from time to time by the
before sending the hard copy of APARs
Department of Personnel and Training and Central
to the Cadre Controlling Authority of the
Vigilance Commission in this regard is ensured.
two services. It involves scanning of APARs
of the two Services in Cadre Management Vigilance Awareness Week was observed from
System (CMS). 31st October, 2016 to 5th November, 2016 to
create awareness amongst officers and staff as
There is no full time Chief Vigilance Officer for
well as public / citizens for promoting Integrity
attached and subordinate offices as these are
and eradicating Corruption.
small organizations. Vigilance activities of these
offices are being looked after by their Divisional During the year 2016-17, the Vigilance Section
Heads/Part time Chief Vigilance Officers. The has received five CVC cases.

202

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 stakeholders
and other interest groups / stakeholders
in reviewing the policies and procedures
to reflect their views, perceptions and
concerns on the policy documents.
• Consider the stakeholders and interest
groups as partners in progress and accord
them respect and cordiality, encourage
them to come out with innovative
concepts and procedures to provide
for cross-fertilization of ideas that help
overall promotion of industrial climate.
• Create more effective channels of
communication for a interface with the
stakeholders and other interest group
through e-governance with widespread
use of electronic mode.
• Maintain the confidentiality of the personal
and business information disclosed to the
Department.
• Simplifying procedures for industrial
approvals keeping minimum controls that
are considered critically essential.
Chapter 20
Citizen's Charter
• Place in the public domain all changes in
law and procedures through appropriate
media channels as and when these are
finalized.
Quick disposal of cases and redressal of
grievances is accorded top priority. Towards
this, the Department continues to issue on the
spot written acknowledgments to all queries
and applications and responds to all queries
within time bound manner. A detailed list of
service provided including standards thereof is 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:
• Submission of duly completed application
forms in all respects.
• Proper utilization of central financial
assistance released to States
Governments/UT Administrations for
specific projects and making efforts for
the timely completion of these projects.
• Extending courtesies to officials of the
Department.
• Always keeping proper records of letters
and communications with the Department.
• If the user has an appointment with an
officer in the Ministry, please arrive 15
minutes prior to the appointment.
203
 • If the user wants to cancel an appointment,
please give a written notice via fax or email
at least two days in advance.
• Send reports in the prescribed format as
Citizen's Charter
per prescribed timelines.
• To check the website regularly for updates
on policies, programmes and procedures.
• Give their suggestions/inputs on drafts
placed on Ministry’s website/those
circulated to them.
• State representatives should attend the
conference with complete information.
Service Audit
The Department is committed to periodical audit
of the quality of the services based on stringent
benchmarks and standards set, both at the
unit and national levels. It is envisaged to hold
independent surveys to capture the 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
Relation Office, at Udyog Bhavan, New Delhi, (Near
Gate No.11) Tele No. 011-23063088. Reception
of all applications can be obtained from the IFC
office.
204
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
Industrial Entrepreneurs- Memorandum, Letter of
Intent, 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, fax or personal visit. The first contact point
is Investor Facilitation Cell. User can approach the
Grievance Officer in the Department (Ms. Vandana
Kumar, Joint Secretary, Tel: 011-23061714,
Email : vandanak.cgda@nic.in) if the issue is not
resolved at the IFC.
Additional Secretary and Financial Adviser in the
Ministry of Commerce and industry has been
appointed as the Business Ombudsman to look
into the complaints relating to delays in clearance
of projects/approvals.
 Table 20.1
List of Some Services/ Transaction included in the Citizen's Charter
1. Grant of ad-hoc permission for
manufacture and sale of cement
without standard mark for a maximum
period of 150 days.
2.   Certification of essentiality for import
of capital goods required for initial
setting up of new projects of expansion
of the existing projects.
3.   Furnishing of comments of DIPP to the
Ministry of Coal for long term coal
linkage and allocation of coal blocks
for cement sector.
4. Release of Plan and Non-Plan funds
to National Council for Cement and
Building Materials (NCCBM) and
Development Council for Cement
Industry (DCCI).
5. Inclusion of Paper Mill in Schedule-I of
Newsprint Control Order 2004.
6. Furnishing of comments of the DIPP
to the Ministry of Coal for allocation of
coal for paper.
7. Release of Plan and Non-plan funds
to Central Pulp and Paper Research
Institute (CPPRI) and Development
Council for Pulp and Paper Association
of India (DCPPA).
8. Release of Plan funds to Delhi-Mumbai
Industrial Corridor Development
Corporation (DMICDC) for Project
Development.
9. Essentiality Certificate for projects in
Explosives sector.
10. Issuing Industrial License for
compulsory licensable items.
11. Issuing Acknowledgement for the
Industrial Entrepreneur Memorandum
(IEM).
12. Recognition of Competent Authority
(CA), Inspecting Authority (IA),
Citizen's Charter
Wellknown Material Testing
Laboratory, Well-known Steel maker,
Well-Known Foundry/Forge-shops,
Well-Known Tube/Pipe Maker And
Well-Known Remnant Life Assessment
Organisation under the Indian Boiler
Regulations, 1950.
13. Approval under Regulation 393 (b) of
the Indian Boiler Regulations, 1950.
14. 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 in
Consumer Industry.
20. Bulletin Board Services for Investor.
21. Essentially Certificate for projects in
Light Engineering Industry.
22. Release of Wholesale Price Index.
23. Approval of Foreign visit of Ministers
and officers of the State Government
concerning industry sector.
205
 Useful Addresses
Sl Name and Designation Address Tel. No & e-mail
No.
1 Ms. R. Mythili Department of Industrial Policy Tel: 011-23063088
Citizen's Charter

& Promotion, Entrepreneurship

Under Secretary and Public EPABX: 011-23063321
Assistance Unit,
Relations Officer
Near Gate No. 11, Extn. 2237
Udyog Bhavan, New Delhi. r.mythili@gov.in

2 Ms. Vandana Kumar, Department of Industrial Policy & Tel: 011-23061714

Promotion, Ministry of Commerce
Grievance Officer and Joint Fax: 011-23063656
& Industry,
Secretary
Room No. 126A, vandanak.cgda@nic.in
Udyog Bhavan,
New Delhi.

3 Dr. Subhash Chandra Pandey Department of Industrial Policy & Tel: 011-23062756
Promotion, Ministry of Commerce
Business Ombudsman and Fax: 011-23062101
& Industry,
Additional Secretary &
Room No. 244,
Financial Adviser
Udyog Bhavan, New Delhi.

206

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.
Chapter 21
Right to Information (Rti)
All the Director/Deputy Secretary level officers
have been designated as Central Public
Information Officers to provide information to
the 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 (up
to 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
appeals were disposed off within the stipulated
time-frame. Quarterly Reports in respect of
RTI Act are being sent to Central Information
Commission (CIC) regularly.
207
 APPENDIX -I

Organizational Chart of Department of Industrial Policy and Promotion

Appendix

208
 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

Appendix
3. Office of the Salt Commissioner, Jaipur

Subordinate Offices
1. Office of the Controller General of Patents, Designs and Trade Marks, Mumbai

2. Petroleum & Explosives Safety Organization, Nagpur

Other Organizations / Grantee Institutions

1. Central Manufacturing Technology Institute, Bengaluru

2. Central Pulp & Paper Research Institute, Saharanpur

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

4. Indian Rubber Manufacturers’ Research Association, Thane

5. Intellectual Property Appellate Board (IPAB), Chennai

6. National Council for Cement & Building Material, Ballabgarh

7. National Institute of Design, Ahmadabad

8. National Productivity Council, New Delhi

9. Quality Council of India, New Delhi

209
 Appendix-III
YEARWISE AND STATEWISE BREAKUP OF INDUSTRIAL ENTREPRENURS MEMORANDUM FILED
Name of
2011 2012 2013 2014 2016 Upto Dec 2016
the State

Pro- Pro-
Proposed Pro- Pro- Pro-
Num- posed Num- Num- Num- posed Num- Num-
Invest- posed In- posed In- posed
  bers Invest- bers bers bers Invest- bers bers
ment vestment vestment Invest-
Filed ment Filed Filed Filed ment Filed Filed
(Rs.Cr) (Rs.Cr) (Rs.Cr) ment
(Rs.Cr) (Rs.Cr)
Andaman &
0 0 1 31 0 0 0 0 0 0 1 47
Nicobar
Andhra
260 91859 175 59392 128 17631 121 21510 133 21197 164 34464
Pradesh
Arunachal
7 1027 3 41 1 353 2 41 0 0 0 0
Pradesh
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
Appendix

Chhattisgarh 114 102266 78 79575 57 34143 37 162584 117 36511 50 11853

Dadra &
55 3885 31 4014 30 1605 24 683 20 590 36 1766
Nagar Haveli
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 2096
Himachal
36 1533 48 4798 13 449 26 969 11 537 9 803
Pradesh
Jammu &
21 1523 26 1529 11 450 12 297 11 663 8 979
Kashmir
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 0

Lakshad-
0 0 0 0 0 0 0 0 0 0 0 0
weep
Madhya
191 104527 126 10563 114 88715 96 12089 99 12971 84 16020
Pradesh
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 0
Uttar
163 43672 134 13270 157 13330 106 12344 126 11248 120 13716
Pradesh
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

210
 Appendix IV
SECTORWISE AND YEARWISE LISTS OF IEMs FILED DURING LAST FIVE YEARS
2011 2012 2013 2014 2015 2016 (upto Dec)

Proposed Proposed Proposed Proposed Proposed Num-

SCHEDULED Proposed
Nos Invest- Nos Invest- Nos Invest- Nos Invest- Nos Invest- bers
INDUSTRY Investment
ment ment ment ment ment Filed

01 Metallurgical Indus-
532 268895 346 141983 240 106893 99 27239 63 14342 62 49436
tries

02 Fuels 24 8575 11 1804 12 17868 8 1870 4 7849 7 880

03 Boilers&SteamGen.
1 20 2 102 1 15 1 26 1 99 4 192
Plants

04 Prime Movers 184 9990 140 14696 94 7614 34 1625 7 901 15 3049

05 Electrical Equip-
348 778500 172 144210 122 82682 147 34873 259 64797 346 141870
ments

Appendix
06 Telecommunications 15 360 7 49 10 1049 2 26 19 1248 21 1913

07 Transportation
97 9695 70 24591 58 7602 56 6109 66 5775 71 28204
Industry

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-
27 3136 8 654 9 727 4 673 5 274 2 141
ery

11 Earth Moving Ma-

9 779 5 265 6 634 3 601 4 101 1 59
chinery

12 Misc.
186 15881 163 7976 130 4087 94 3881 100 7669 123 6782
Mechanical&Engg.Ind

13 Comm/Office/Hhold-
3 132 2 11 4 123 12 949 52 6477 33 4081
equpts

14 Medical and Surgical

12 195 2 74 8 710 3 131 9 200 14 224
equip

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
0 0 0 0 0 0 0 0 1 45 1 42
Inst.

18 Fertilizers 45 9046 51 10443 33 22494 14 81754 12 1961 12 6331

19 Chemicals(Except
272 37737 191 74270 147 57873 124 52874 114 23269 138 33967
Fertilizers)

20 Photographic raw
0 0 0 0 0 0 2 16 1 16 0 0
film/Paper

21 Dye Stuffs 5 1177 2 36 1 102 3 42 6 221 6 262

22 Drugs and Pharma-

133 6741 105 8291 105 6900 86 3942 79 6660 103 13952
ceuticals

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-
112 6644 48 4365 52 4916 28 2229 48 4249 68 5162
tries

27 Food Processing
147 10638 143 7022 161 10049 169 10223 199 17301 203 17233
Industry

211
 Appendix IV
SECTORWISE AND YEARWISE LISTS OF IEMs FILED DURING LAST FIVE YEARS
2011 2012 2013 2014 2015 2016 (upto Dec)

Proposed Proposed Proposed Proposed Proposed Num- Proposed

SCHEDULED
Nos Invest- Nos Invest- Nos Invest- Nos Invest- Nos Invest- bers Invest-
INDUSTRY
ment ment ment ment ment Filed ment

28 Vegetable Oil
78 3475 36 1064 27 3381 23 534 29 746 38 3026
&Vanaspathi

29 Soaps, Cosmetics
21 2380 19 2106 16 1593 10 1895 4 359 28 3044
and Toiletries

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

Appendix

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)

212
 Appendix –V
STATEWISE BREAK UP OF IEMs IMPLEMENTED (During the last five years)
BASED ON PART B OF IEM FORM FILED BY ENTREPRENEURS
Name of the
2011 2012 2013 2014 2015 Dec-16
State/UTs
Inv Inv Inv Inv Inv Propposed-
No (Rs.Cr) No (Rs.Cr) No (Rs.Cr) No (Rs.Cr) No (Rs.Cr) No 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

Appendix
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

213
 Appendix-VI
STATEWISE INVESTMENT INTENTIONS(IEMs +LOIs+DILs)
Plan Period wise

XIth Plan Period XII th Plan Period

S.No Name of the State
(Apr ‘07-Mar ‘12) (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
Appendix

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.

214
 Appendix -VII
SECTORWISE INVESTMENT INTENTIONS(IEMs +LOIs+DILs)
Plan Periodwise
XIth Plan Period XII th Plan Period
Name of the Scheduled Industry
(Apr'07 to Mar'12) (Apr-12 to Dec '16)
  Numbers Prop. Inv Numbers Prop. Inv
1.Mettallurgical Industries 3184 1467305 723 295912
2. Fuels 200 222124 37 28737
3.Boilers and Steam Gen. Plants 10 1833 9 434
4. Prime Movers 641 36006 251 24732
5.Electrical Equipments 2087 3001635 988 416195
6. Telecommunications 113 8729 57 4278
7.Transportation 384 73674 300 61335
8.Industrial Machinery 369 19838 202 14166

Appendix
9.Machine Tools 34 2239 24 1510
10.Agricultural Machinery 75 5184 23 1835
11.Earth Moving Machinery 29 1838 17 1529
12. Misc. Mechanical Industry 850 56856 572 29023
13. Comm.H.HoldEquipments 28 1994 103 11641
14. Medical and Surgical Equpts 39 1767 36 1339
15. Industrial Instruments 7 93 14 849
16.Scientific Instruments 41 983 18 1126
17.Math,Survery&Drawing Equpts 0 0 2 87
18.Fertilizers 186 20643 103 117702
19.Chemical Other than Fertilizers 1458 270488 673 233697
20.Photographic Raw films 0 0 9 294
21. Dye Stuffs 28 2277 18 663
22.Drugs & Pharmaceuticals 586 32709 456 39004
23.Textiles 1866 89766 1346 147684
24.Paper & Paper products 375 27691 252 18624
25.Sugar 471 47369 169 19763
26.Fermantation Industries 497 29044 225 18520
27.Food Processing Industries 730 32970 838 60251
28.Vanaspathi,Veg Oil &Fats 471 15336 143 8437
29.Soaps,Cosmetics &Toileteries 120 8860 71 8235
30.Rubber Goods 179 21008 105 20351
31.Leather Goods 52 1081 22 774
32. Glue &Gelatin 10 89 10 1094
33.Glass 112 11230 38 3767
34.Ceramics 220 9291 193 10072
35.Cement & Gypsum 837 425105 303 102964
36.Timber Products 21 1433 31 3907
37.Defence Industries 155 8309 151 8077
38.Miscellaneous Industries 190 6284 363 21408
Others 2686 684890 1679 418033
Total 19341 6647971 10574 2158049
Note: Proposed Investment ` Cr

Note: Investment in terms of Industrial Entrepreneur Memoranda (IEMs) filed by non-MSME category industrial undertakings; Letters of Intent
(LOIs) and Direct Industrial Licences issued.

215
 Appendix-VIII
Financial and Physical Progress of IIUS/MIIUS Projects as on 31.12.2016
Total
Approved Released Progess Project
Name of the Date Project Progress
SN State GOI grant GOI grant Financial Approval
Industrial Cluster Approval Cost Physical (%)
(` Cr.) (` Cr.) (` Cr.) Period
(` Cr.)
Pharma Cluster,
1 Telangana 04.11.2004 66.16 49.62 48.13 62.08 Complete
Hyderabad
Chemical Cluster,
2 Gujarat 14.03.2005 71.35 41.39 40.14 69.41 Complete
Ahmedabad
Chemical Cluster,
3 Gujarat 02.07.2004 152.83 50.00 49.47 161.40 Complete
Ankleshwar
Chemical Cluster,
4 Gujarat 25.03.2004 54.31 40.49 39.27 71.25 Complete
Vapi
Foundry Cluster,
5 Karnataka 28.10.2004 24.78 18.58 18.02 24.38 Complete
Belgam
Appendix

Machine Tools
6 Karnataka 28.10.2004 135.50 49.12 47.64 149.09 Complete
Cluster, Bangalore
Textile Cluster,
7 Maharastra 14.03.2005 65.07 32.70 31.72 67.00 Complete
Ichalkaranji
Auto Components
8 Maharastra 06.09.2004 59.99 44.99 44.54 63.05 Complete
Cluster, Pune
Auto Components
9 MP 28.10.2004 62.97 47.23 45.81 67.64 Complete
Cluster, Pithampur
Textiles Cluster,
10 Punjab 06.09.2004 17.19 12.69 12.30 17.24 Complete
Ludhiana, Punjab
Marble Cluster,
11 Rajasthan 28.10.2004 34.72 26.04 26.77 50.17 Complete
Kishangarh

Auto Components
12 TN 02.07.2004 47.49 27.74 26.90 54.67 Complete
Cluster, Chennai
Cereals Pulses &
13 Staples Cluster, TN 06.09.2004 39.96 29.97 29.07 40.03 Complete
Madurai
10th Plan
Foundry/Pump/Motor
14 TN 14.03.2005 55.30 39.39 38.99 55.57 Complete
Cluster, Coimbatore

Leather Cluster,
15 TN 14.03.2005 67.33 43.93 43.49 96.34 Complete
Ambur

Textiles Cluster,
16 TN 09.03.2004 143.00 50.00 49.50 157.60 Complete
Tirupur
Multi Industry Cluster,
17 WB 04.03.2005 26.28 25.40 34.89 52.76 Complete
Haldia
Iron & Steel Cluster,
18 Chhatishgarh 04.03.2005 54.86 31.61 30.79 58.33 Complete
Raipur

Metallurgical Cluster,
19 Odisha 02.07.2004 80.60 47.00 45.59 88.62 Complete
Jajpur

Coir Cluster,
20 Kerala 04.11.2004 56.80 42.60 41.31 54.75 Complete
Alappuzha

Auto Components
21 AP 02.07.2004 30.67 23.01 22.31 30.66 Complete
Cluster, Vijaywada
Leather Cluster,
22 UP 04.03.2005 14.34 9.32 8.83 13.56 Complete
Kanpur

Gem &Jewellery
23 Gujarat 04.11.2004 61.00 45.61 44.15 45.64 Complete
Cluster, Surat

Rubber Cluster,
24 WB 29.03.2005 41.01 15.71 14.8350 33.11 96.00%
Howrah

Foundry Cluster,
25 WB 04.03.2005 95.03 38.68 36.07 57.55 62.00%
Howrah,

  Total 10th FYP     1558.54 882.82 870.54    

216
 Total
Approved Released Progess Project
Name of the Date Project Progress
SN State GOI grant GOI grant Financial Approval
Industrial Cluster Approval Cost Physical (%)
(` Cr.) (` Cr.) (` Cr.) Period
(` Cr.)

Engineering Cluster,
26 Maharastra 11.03.2008 67.26 42.87 41.88 56.48 Complete
Nashik

Pandhurna
27 Industrial Cluster, MP 02.02.2009 81.10 43.07 41.77 66.40 95.00%
Chhindwara

Handloom Cluster,
28 MP 11.03.2008 42.66 20.30 18.89 25.95 92.70%
Chanderi 11th Plan
(IIUS)
Auto Cluster,
29 Jharkhand 13.08.2008 65.63 47.79 42.91 41.12 60.00%
Adityapur

Readymade
30 Garments Cluster, MP 11.03.2008 55.58 30.67 25.21 39.68 65.00%
Jabalpur

Appendix
  Total 11 th FYP 312.23 184.70 170.67

Plastic, Polymer
31 and Allied Cluster, Odisha 26.03.2010 81.90 58.28 49.71 69.80 82.00%
Balasore

Tiruchirapalli
Engineering and
32 TN 01.10.2010 102.81 58.28 51.48 69.80 68.00%
Technology Cluster,
Tirruchirapalli

Marathwara
33 Automobile Cluster, Maharastra 31.05.2010 81.35 58.20 54.26 76.52 Complete
Aurangabad

Baddi Infrastructure, 11th Plan

34 HP 19.11.2010 88.43 59.95 55.04 86.58 Complete (Recast
Baddi
IIUS)

Bamboo Technology
35 Assam 01.10.2010 62.28 52.63 48.98 52.93 Complete
Park, Guwahati

Narol Textiles
Infrastructure
36 Gujarat 19.11.2010 196.56 58.28 50.32 158.88 96.00%
and Environment
Management, Narol

Kolhapur Foundry
37 Maharastra 31.01.2012 42.63 30.92 27.28 35.17 Complete
Cluster

  Total 11th FYP     655.96 376.54 337.07    

217
 Appendix-IX

Details of Public Accounts Committee (PAC) -CAG Para

Year No of Paras/PA Details of the Paras/PA reports on which ATNs are pending
reports on which No. Of ATNs not sent No. of ATNs sent No. Of ATNs which
ATNs have been by the Ministry even but returned with have been finally
submitted to PAC for the first time observations and vetted by audit
after vetting by Audit is awaiting their but have not been
Audit resubmission by the submitted by the
Ministry ministry to PAC

2016-17 0 0 0 2
Appendix

218