GOVERNMENT OF INDIA

MINISTRY OF COMMERCE & INDUSTRY

DEPTT. OF INDUSTRIAL POLICY & PROMOTION

 

 

 

 

 

 

 

Implementation

Of Right to Information Act.,

2005

 

 

 

 

 

 

 

Manual of Information in respect of Department of Industrial Policy & Promotion

 

 

 

 

 

 

 

 

 

DEPARTMENT OF INDUSTRIAL POLICY &PROMOTION

================================================

MANUAL ON RIGHT TO INFORMATION ACT, 2005

INDEX

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

   Promotion.

 

          2.                          Powers and Duties of Officers and Employees.

 

3.                           Procedure followed in decision-making process, including channels of supervision and accountability

 

4.                           Norms for the Discharge of Functions.

 

5.                           Rules, Regulations, Instructions, Manual and Records for discharging functions. 

 

6.                           Statement of the Categories of documents held by the Department or under its control.  

 

7.                           Particulars of Arrangements for Consultation with or Representation by the Members of the Public in Formulation of Policy or Implementation thereof.

 

8.                           Statement of Boards, Councils, Committees and Other Bodies constituted as in the Department of Industrial Policy & Promotion.

 

9.                           Budget allocated to each agency (Particular of all plans, proposed expenditures and reports on disbursement made.

 

10.                         Manner of Execution of Subsidy Programmes, Including the Amount Allocated and the Details of Beneficiaries of Such Programmes.

 

11.                         Particulars of Recipients of Concessions, Permits or Authorisations Granted.

 

12.                         Information Available in Electronic Form.

 

13.                         Particulars of the Facilities Available to Citizens for Obtaining Information.

 

14.                         Names, Designation and Other Particulars of the Public Information Officers.

 

15.                         Such other Information as may be prescribed .

 

16.                         How to apply.

ROLE AND FUNCTIONS OF THE DEPARTMENT OF

INDUSTRIAL POLICY & PROMOTION

 

            The Department of Industrial Policy & Promotion, established in 1995, was reconstituted in the year 2000 with the merger of the Department of Industrial Development .The Department of Industrial Policy and Promotion is responsible for the formulation and administration of overall Industrial Policy in India.

 

            With the progressive liberalization of the Indian economy, initiated in July 1991, there has been a consistent expansion in the role and functions of this Department.  From   regulation and administration of the industrial sector, the role of the Department has been transformed into facilitation of technology and investment flows and promotion of industrial development in the liberalized environment.

 

The role and functions of the Department of Industrial Policy and Promotion primarily include: -

 

·        Formulation and implementation of industrial policy and strategies for industrial development in conformity with the developmental needs and national objectives in order to make the Indian industry internationally competitive;

 

·        Monitoring and stimulation of industrial growth, in general, and performance of industries specifically assigned to it, in particular, and guidance in the creation of an enabling environment, infrastructure, and technology transfer/collaborations on all industrial and technical matters.

 

·        Encouragement to foreign technology collaborations at enterprise level and formulation of policy parameters for the same for enhancing productivity with reference to international benchmarking and by commissioning competitive studies;

 

·        Promotion and facilitation of Foreign Direct Investment (FDI) in India and mitigating investor grievances through coordinated grievance resolution mechanism;

The department is assigned the function of Foreign Direct and Non-Resident (NRI) investments in the industries and service  projects. The department is responsible for the formulation of FDI policy and facilitation and promotion of FDI into the country.
 

The department is associated as a nodal department for investment and economic cooperation related  issues in Bilateral/ Regional Economic  Cooperation Agreements. The  Department  is actively  associated  in  the  negotiations  on   Bilateral   Investment    Promotion &   Protection Agreements with various countries.

·        Formulation of policies relating to Intellectual Property Rights in the fields of Patents, Trademarks, Industrial Designs and Geographical Indications of Goods and administration of regulations and rules made hereunder;

 

·        Administration of Industries (Development & Regulation) Act, 1951; 

 

·        Promotion of industrial development of industrially backward areas and the remote, hilly and   inaccessible areas of the Special Category

 

 

 

·        states from Jammu & Kashmir to Arunachal Pradesh through special packages of incentives.

 

·        Promotion of international cooperation through productivity, quality and technical cooperation and

 

·        Compilation of monthly industrial production statistics for the use in the construction of Index of Industrial Production (IIP).

 

Department of Industrial Policy and Promotion 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, Department of Industrial Policy and Promotion is responsible for the overall Industrial Policy.   

 

The Department monitors industrial growth and production in general and in selected industrial sectors such as cement, paper and pulp, leather, tyre and rubber, light electrical industries, consumer goods, consumer durables, light machine tools, light industrial machinery, light engineering industries etc.  Appropriate interventions are made, as required by the emerging concerns, from time to time.

 

Formulation and implementation of Technology Up-gradation Scheme to improve competitiveness of Indian Industries’ is identified as one of the thrust/priority areas by the Committee of Secretaries under the Chairmanship of Cabinet Secretary.  This item has been allocated to the Department of Industrial Policy and Promotion for implementation during 2003-2004.  The Department studies, assesses and forecasts the need for technological introductions and up gradations in specific industrial sectors so that it keeps pace with the international developments in industrial technology on a continuing basis and enhances the competitiveness of the industry. The Department also Commissions studies through consultants of international repute. 

 

The Department is also responsible for facilitation and increase of the FDI inflow into the country.  The Department plays a pro-active role in the resolution of problems faced by foreign investors in implementation of their projects through Foreign Investment Implementation Authority (FIIA), which interacts directly with the investors along with the Ministry/State Government concerned.

 

The Department is responsible for encouragement acquisition of technological capability in various sectors of the industry through a liberal foreign technology collaboration regime.  Foreign technology induction is facilitated both through FDI and through foreign technology collaboration (FTC) agreement.  FTC agreements are approved either through the automatic route under the powers delegated to the RBI or by the Government.

 

In tune with its role as a facilitator of industrial development and investment, the Department plays an active role in investment promotion through dissemination of information on investment climate and opportunities in India and by advising prospective investors about licensing policy and procedures, foreign collaboration and import of capital goods,  etc. The information about policy and procedure is now available at Internet website (www.dipp.nic.in) of the Department.

 

Department of Industrial Policy and Promotion is also responsible for Intellectual Property Rights relating to Patents, Designs, Trade Marks and Geographical Indication of Goods and oversees the initiative relating to their promotion and protection.  These include the outlining of policy and its implementation through the Office of the Controller General of Patents, Designs and Trade Marks.  It promotes awareness regarding protection of the Intellectual Property Rights inherent in industrial property in conjunction with the World Intellectual Property Organisation (WIPO) and apex industry associations apart from similar initiatives involving regional industry associations.  It also provides inputs on various issues relating to the Agreement on Trade Related Aspects of Intellectual Properties (TRIPS) related to World Trade Organisation (WTO) in these fields.

 

The Department undertakes technical cooperation programmes with the World Intellectual Property Organisation (WIPO), Geneva for the modernization and up gradation of intellectual property administration relating to patents, designs, trademarks and geographical indications and the organization of Human Resource Development and awareness generation activities in the country.

 

The Department is the nodal point for the promotion of productivity in the industrial sector.  It undertakes programmes of technical cooperation with the Asian Productivity Organisation (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 the industry, agriculture and service related sectors.  It also promotes the adoption of quality standards relating to the ISO 9000/14000 series through the accreditation services provided by National Boards for Certifying Bodies and Auditors and Trainers under the Quality Council of India, which has been certified by international accreditation bodies.

 

International Cooperation for industrial partnerships is achieved through both bilateral and multilateral arrangements.  At bilateral level, in addition to being nodal Department for Indo-Swedish, Indo-Libyan, Indo-Hungarian and Indo–Belarus Joint Commissions, the Department is represented on joint commissions and joint working groups for promoting industrial, technical and scientific cooperation with select countries, serviced by other Ministries/Departments.  Similar initiative is also in place with the European Union and the ASEAN.  This Department is the nodal agency in the Government of India for various instruments of the Asia-Invest Programme of the European Commission.  The Department also coordinates with apex Industry Associations such as the FICCI,  the CII, the ASSOCHAM in their activities relating to promotion of industrial cooperation both through bilateral and multilateral initiatives and to stimulate foreign direct investment into India besides participating in the Joint Business Councils and other interactive sessions organized by them.

 

Department of Industrial Policy and Promotion is the nodal Department in Government of India for coordinating and implementing programmes with the United Nations Industrial Development Organisation  (UNIDO) in India.  UNIDO is a specialised agency   of United Nations with a mandate to act as the central coordinating body for industrial activities within the United Nations system. India has been an active Member of the Organization since its inception.  Under the country service framework, the UNIDO’s activities in India are to be focussed in the fields of strengthening the competitiveness of industry through technology up gradation, promotion of investments and cleaner and environmentally sustainable technologies.

The Department monitors the industrial sector through information on Industrial Entrepreneurs’ Memorandum (IEM), Letter of Intent (LOI), Foreign Collaboration (FC) approval and inflows, and industrial production returns.  The Department also coordinates the progress of  ‘infrastructure sectors’ approved for investment / technology transfer, promotion of private investment including foreign investment in the infrastructure sector. The Department also compiles sectoral policies, strategies and guidelines on infrastructure sector. 

 

The Department administers the following Central Legislations through its attached/subordinate offices and statutory organizations:

 

a.         The Explosives Act, 1884 and the Inflammable Substances Act, 1952, are administered through the Office of the Chief Controller of Explosives.

b.         The Salt Cess Act, 1953 is administered through the Office of the Salt Commissioner.

c.         Central legislations relating to Intellectual Property Rights (IPRs), namely, the Patents Act, 1970, the Trade Marks Act, 1999, the Geographical Indications of Goods (Registration and Protection) Act, 1999 and the Designs Act, 2000 and their 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.

d.         The Indian 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.

 

 

·                    The Department undertakes technical cooperation programmes with the World Intellectual Property Organistaion (WIPO), Generva.

 

·                    The Department is the nodal point for the promotion of productivity in the industrial sector. It undertakes programmes of technical cooperation with the

 

·                    Asian Productivity Organisation (APO), Tokyo by sourcing experts to advise on productivity related projects and by deputing officials from the private and public sector related programmes conducted by the APO in the industry, agriculture and service related sector. It also promotes the adoption of quality standards relating to the ISO 9000/140000 series through the accreditation services provided by National Boards for Certifying Bodies and Auditors and Trainers under the Quality Council of India, which has been certified by International accreditation bodies.

 

·                    This Department is the nodal agency in the Government of India for various instruments of the Asia-Invest Programme of the European Commission.

 

 

 

·                    This Department is the nodal Department in Government of India for coordinating and implementing programmes with the United Nations Industrial Development organization (UNIDO) in India.

 

·                    The Department of Industrial Policy & Promotion is the nodal agency for development of industries through Research and Development (R&D) activities.

 

·                    The Department is also taking initiative for enhancing competitiveness of Indian industries through its UP-gradation Scheme (IIUS), which is a new Scheme.

 

The information about policy and procedure is now available at Internet website ( www.dipp.nic.in) of the Department.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIST OF ATTACHED & SUBORDINATE OFFICES/ ORGANISATIONS UNDER THE DEPARTMENT OF INDUSTRIAL POLICY AND PROMOTION,

NEW DELHI

 

 

To prevent attraction for spamming email addresses have been obstructed. Kindly read [at] as @ and [dot] as .

 

I.          ATTACHED OFFICES

 

 

S.No.

Name & Office Address

Phone No.

E-Mail Address

1.

Office of Salt Commissioner,

Lavan Bhavan,

Post Box No. 139,

Jaipur – 302004

0141-

516571

518116

lavan[at]raj[dot]nic[dot]in

 

 

2.

Office of the Economic Adviser

1st Floor, Udyog Bhavan,

New Delhi

3012721

singam.ea[at]ub[dot]nic[dot]in

 

gopal_snegi[at]otmail.com

3.

Tariff Commission

7th Floor,

Lok Nayak Bhavan,

New Delhi – 110003

4698454

4690779

taricom[at]giasd101[dot]vsnl[dot]net[dot]in

bicp[at]giasd101[dot]vsnl[dot]net[dot]in

 

 

 

 

 

II.         SUBORDINATE OFFICES

 

 

 

 

S.No.

Name & Office Address

Phone No.

E-Mail Address

1.

Office of the Chief Controller of Explosives,

A-Block, 5th Floor, C.G.O. Complex,

Seminary Hills,

Nagpur – 440006

0712-

510102

510103

510248

ccoengp[at]nag[dot]mah[dot]nic[dot]in

 

2.

Office of the Controller General of Patents, Designs and Trade Marks,

Central Building, Maharshi Karva Road

Mumbai

022-

2053372

2039050

cgpdpmum[at]vsnl[dot]net

 

 

 

 

 

III.        OTHER ORGANISATIONS/ GRANTEE INSTITUTIONS/ PUBLIC SECTOR UNDERTAKINGS

 

 

1.         Central Manufacturing Technology Institute, Bangalore.

 

2.         Central Pulp & Paper Research Institute, Saharanpur.

 

3.         Indian Rubber Manufacturers Research Association, Thane.

 

4.         National Council for Cement & Building Materials, Ballabhgarh.

 

5.         National Institute of Design, Ahmedabad

 

6.         National Productivity Council, New Delhi

 

7.                  Quality Council of India, New Delhi.

 

8.                  National Manufacturing Competitiveness Council – Administrative work.

 

*           The work relating to ARAI, Pune has been transferred to the Department of Heavy Industry as per the Allocation of Business Rules amendment order dated 6.1.2004. (Circular No. 6(2) 2004-IRS dated February 11,2004).

 

 

 


 

 

Powers and Duties of Officers and Employees

 

As defined in the Manual of Office Procedure brought out by the Department of Administrative Reforms & Public Grievances

Designation

Secretary

 

Secretary is the Administrative head of the Department. He is the principal Adviser of the Minister on all matters of policy and administration within the Department having complete and undivided responsibility.

 

Designation

AS &FA

 

AS & FA manages the financial matters in the Department.

 

All Financial powers subject to observation of the General Financial Rules (GFR) in vogue.

 

General Provident Fund (GPF) withdrawals upto 90% of the balance of accumulations at the credit of the subscriber subject to other conditions prescribed under the GPF Rules.

 

Designation

Joint Secretary

 

Joint Secretary is the overall in-charge of the Wing of the Department .allocated and entrusted to him. He is entrusted with the necessary measure of independent functioning and responsibility in respect of all business of the Wing, subject to his general responsibility of the Secretary for the administration of the wing as a whole.

 

All financial powers subject of limitation of delegation of financial powers delegated by Secy./AS & FA.

 

Designation

Director/Deputy Secretary

 

Director/Deputy Secretary acts on behalf of the Secretary. He holds charge of a Secretariat division and is responsible for the disposal of Government Business dealt within the Division under his charge. The officer takes orders from the Joint Secretary/Secretary on important cases, either orally or by submission of papers.

 

Further in terms of specific delegation of Powers, his appointing authority in respect of Upper Division Clerk and Lower Division Clerk of Central Secretariat Clerical Services (CSCS).

 

He is also empowered to impose all penalties under CCS (CCA) Rule 11 in respect of Upper Division Clerk and Lower Division Clerk of Central Secretariat Clerical Services (CSCS) employees under the Administrative Control of Deptt. of Industrial Policy & Promotion and impose all penalties under CCS (CCA) Rule 11 in respect of General Central Service, Group 'C' employees of the Deptt. of Industrial Policy & Promotion.

 

Designation

Under Secretary

 

An Under Secretary is in charge of a Branch in the Department Of Industrial Policy & Promotion, each Branch consisting of one or more Sections and, in respect thereof, exercise control both in regard to the despatch of business and maintenance of discipline. Work comes to him from Sections under his charge. As Branch Officer he disposes of as many cases as possible at his own level but he takes the orders of Deputy Secretary or higher officers on important cases.

 

Designation

Desk/Section Officer

 

The general duties of a Desk/Section Officer are distribution of work among the staff as evenly as possible; training, help and advising the staff; management and co-ordination of work; maintenance of order and discipline in the section maintenance of a list of residential address of the staff. A Desk Officer is expected to put up papers directly to the Division Head.

 

Designation

Private Secretary/Personal Assistant/Stenographer

 

The duties of a Private Secretary/Personal Assistant/Stenographer includes taking dictation in shorthand and its transcription; fixing up appointments, attending telephone calls and to the visitors in a graceful manner; keeping an accurate list of engagements, meetings, etc; keeping a note of movements of files; carrying out the corrections to the officer's reference books and making fair copies of drafts d.o. letters to be signed by the officer.

 

Designation

Assistant/Upper Division Clerk (UDC)

 

The duties of an Assistant/UDC are to see whether all facts open to check have been correctly stated; point out any mistakes or incorrect statement of the facts; draw attention, where necessary to precedents or Rules and Regulations on the subject; put up the guard file and to bring out clearly the question under consideration and suggest a course of action, wherever possible.

 

Designation

Lower Division Clerk

 

Lower Division Clerk are ordinarily entrusted with work of routine nature, e.g., registration of Dak, maintenance of Section Diary, File Register, File Movement Register, Indexing and Recording, Typing, Comparing, Preparation of arrears and other statements, supervision of correction of reference books and submission of routine and simple drafts.

 

 

 

 

 

 

 

 

Procedure followed in Decision making Process, including Channels of Supervision and Accountability.

 

 

       As per the procedure prescribed in the Central Secretariat Manual office Procedure,  a Section/Desk which is the lowest organisational unit in the Ministry and consists of Assistants and Clerks supervised by a Section Officer, initiates the processing of a case immediately after receiving a reference/communication by registering/diarising the receipt and initiating the note. As a general rule, no official is expected to keep a case pending with him/her for more than seven working days unless higher limits have been prescribed for specific types of cases separately. In some cases, the file is initiated on oral instructions by recording the instructions/discussions given by the senior officers. The case/subject is placed before the Under Secretary for advice and orders. The cases of minor and routine nature are disposed of at the level of Under Secretary.

 

            In case of matters  which are important in nature, the file is submitted for advice and orders to the higher level by the Under Secretary, and decisions or certain nature are disposed off at the level of Deputy Secretary/Director as per the delegated financial and administration powers.

 

          More important matters are placed by the Deputy Secretary/Director before the Joint Secretary who takes a decision as per the delegated power on issues relating to administrative, financial and policy matters.

 

          However, issues with major policy implications and major administrative and financial matters, requiring the advice and approval of higher authorities, are placed by the Joint Secretary before the Secretary of the Ministry for orders. Cases which require the approval of the Minister in –charge or the Cabinet/Cabinet Committees are placed before the Minister in-charge and/or Cabinet/Cabinet committees for order/approval.

 

         

 

 

 

 

 

 

 

 

 

 

The channel of submission as generally followed is as under :

 

Sl. No.

Items of work

Channel of submission

1

Establishment matters

Section Officer – Under Secretary –

Director/Deputy Secretary – Joint Secretary – Secretary - Minister

2

Financial and Administrative matters

Section Officer – Under Secretary – Deputy Secretary/Director – Joint Secretary – Under Secretary (IFW) – Director (IFW) – Additional Secretary & Financial Adviser – Secretary (when necessary under delegation of powers) – Minister

3

Legal/Court matters

Section Officer – Under Secretary – Deputy Secretary/Director – Joint Secretary – Ministry of Law & Justice – Central Government – Standing Council – Secretary (when necessary) – Minister.

4

VIP references, Parliament questions

Section Officer – under Secretary – Deputy Secretary/Director – Joint Secretary – Minister/Secretary – Minister.

5.

Miscellaneous matters

Section Officer – Under Secretary – Deputy Secretary/Director – Joint Secretary.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Norms for the Discharge of Functions

 

 

         

The Department of Industrial Policy & Promotion discharges its functions as per the Government of India ( Allocation  of Business Rules), 1961 on  matters of promotion & developing of industries in different parts of the country  & to create employment in various sectors.  The Department follows  the rules of IDR Act, 1951. as amended from time to timely

 

 

          The norms for discharge of function are as per the procedure evolved in Central Govt. However in the manual of office procedure the time limits have been indicated Apart from the necessary checks schedule is also followed.

 


 

 

Rules, Regulation, Instructions, Manual and Records for Discharging Functions

 

The Acts, rules, regulations, manuals, records, etc., used by the employees of this Department in the discharge of their functions consist of those relating, in particular, to the work of the Ministry as well as those issued by the Cabinet Secretariat, Department of Personnel & Training, Department of Administrative Reforms & Public Grievances, Ministry of Finance, Ministry of Urban Development, etc., from time to time.

 

            A list (though not exhaustive) of important Acts, Rules, Regulations, Instructions, Manuals and records held by the Deptt. of IP&P and used by its employees for discharging their functions, is given below :

 

1.                  Constitution of India

 

2.                  Government of India (Allocation of Business) Rules.

 

3.                  Government of India (Transaction of Business) Rules.

 

4.                  Authentication (Orders & Other Instruments) Rules.

 

5.                  Procedure in regard to submission of cases to the Cabinet and its Committees, issued by the Cabinet Secretariat.

 

6.                  Official Languages Act, Rules and Instructions issued thereunder.

 

7.                  Rules of Procedure and Conduct of Business in Lok Sabha.

 

8.                  Directions by the Speaker under the Rules f Procedure and Conduct of Business in Lok Sabha.

 

9.                  Directions by the Chairman, Rajya Sabha under the Rules of Procedure and Conduct of Business in Lok Sabha.

 

10.              Procedure to be followed by Ministries in connection with Parliamentary Work, issued by the Lok Sabha Secretariat.

 

11.              Departmental Security Instructions issued by the Ministry of Home Affairs.

 

12.              General instructions regarding word-processing, typing, stencil cutting, carbon mani-folding, etc., issued by the Institute of Secretariat Training and Management.

13.              Channels of Communication between the Government of India and State Governments, on the one hand, and Foreign and Commonwealth Governments or their Missions in India, Heads of India Diplomatic Missions and Posts abroad and the United nations and its specialized Agencies, on the other, issued by the Ministry of External Affairs.

 

14.        Standardised Functional File Index including file numbering system relating to establishment, finance, budget and accounts, office supplies and services and other house keeping jobs common to all Departments, issued by the Department of Administrative Reforms and Public Grievances.

 

15.              Schedule of periods of retention for records common to all Departments issued by the Department of Administrative Reforms and Public Grievances.

16.              Manual for Handling Parliamentary Work in Ministries.

 

17.              Central Secretariat Manual of Office Procedure.

 

18.              Central Civil Services (Leave) Rules.

 

19.              Central Civil Services (Pension) Rules.

 

20.              Central Civil Services (Conduct) Rules.

 

21.              Central Civil Services (Classification, Control and Application) Rules.

 

22.              Fundamental and Supplementary Rules.

 

23.              Delegation of Financial Powers (Admn.) Rules.

 

24.              General Financial Rules.

 

25.              Leave Travel concession (LTC) Rules.

 

26.              General Provident Fund (GPF) Rules.

 

27.              ID Act, 1951 & Rules thereunder.

 

28.              Indian Boiler Act and Regulation.

 

29.              Explosives Act, 1884 including Explosives Rules.

 

30.              Salt Cess Act, 1953, Salt Cess Rules, 1964.

 

31.              Intellectual Property Appellate

i)                    (Procedure) Rules, 2003.

ii)                  Geographical Indications (Registration & Protection) Act, 2002.

 

32.              The Patents Acts.

 

 

 

 

 

 

Statement of the Categories of Documents held by the Department Industrial Policy & Promotion or under Its Control

Sl. No.

Name of the document and its introduction in one line

Category of document

Procedure to obtain the document

Held by/under Control of

1.

Annual Report of Deptt. Of IP&P

Official

By making written request

Section Officer (Estt. - III)

Deptt. of Industrial Policy & Promotion, Room No. 342,

Tel. No. 23062325

Udyog Bhavan, Rafi Marg,

New Delhi - 110 011

2.

Performance Budget of the Deptt. of IP&P

Official

By making written request

Account Officer,

Budget & Accounts Section,

Deptt. of Industrial Policy & Promotion, Room No. 437,

Tel. No. 23063321 Extn. 2360

Udyog Bhavan, Rafi Marg,

New Delhi - 110 011

3.

Transport subsidy scheme 1971

Official

By making written request

Section Officer (DBA-II) Deptt. of IPP Room No. 437,

Tel. No. 23062325 Extn. 3352

Udyog Bhavan,  Rafi Marg,

New Delhi - 110 011

4.

North East Industrial Policy 1997

Official

By making written request

-do -

5.

Sikkim Industrial Policy. 2002

Official

By making written request

- do-

6.

Central Capital Investment Subsidy Scheme, 1997 & 2002

Official

By making written request

- do-

7.

Central Interest  Subsidy Scheme, 1997 & 2002

Official

By making written request

- do-

8.

Central Comprehensive Insurance Scheme, 1997&2002

Official

By making written request

- do-

9.

Uttranchal & Himachal Pradesh Industrial Policy, 2003

Official

By making written request

Section Officer (Special Packages) Deptt. of IPP Room No. 460-B

Tel. No. 23062325 Extn. 2337

Udyog Bhavan, Rafi Marg,

New Delhi - 110 011

10

Jammu & Kashmir Industrial Policy (JKIP), 2002

Official

By making written request

-do-

11.

Industrial Park Scheme, 2002

Official

By making written request

Section Officer (IP&ID)Deptt. of IPP Room No. 452-A

Tel. No. 23068356

Udyog Bhavan, Rafi Marg

 

 

 

Particulars of Arrangements for Consultation  with or Representation by the Members of the Public in Relation to Formulation of Policy or Implementation Thereof

 

 

 

                        In the formulation of policies relating to the areas of its allocated work, the Deptt. of Industrial Policy Promotion (IPP) interacts with various stakeholders in the various sectors of Industry in the following forums:

 

(i)                Department –related Parliamentary Standing Committee which examines  the annual demands for grants of the Ministry and its proposals for legislation – this Committee, consists of Members of Parliament and also invites members of the public, as and when deemed necessary by it, in discussing and making recommendations on specific policies and / or programmes of the Deptt.

 

(ii)    The Deptt. of IPP interacts & consults   the public, trade Association like FICCI, ASSOCHAM & CII etc. as well as public debate in the Parliament for promotion & implementation of its policies.

 

(iii)     With the Liberalization of industrial policy, the Deptt. of  IPP only provides skeleton services in  setting up of industries in different parts of the country.  It is for the concerned State Governments to attract industries for setting up of their industry in their respective States by providing infrastructural  facilities like road, water electricity etc.

 

 

 

 

 

 

 

 


 

 

 

Statement of Boards, Councils, Committees and  Other Bodies Constituted  as in the Department of Industrial Policy & Promotion

 

I.                   OFFICIAL

 

  1. Central Boiler Board.
  2. Central Advisory Council  on Industry.
  3. Project Approval Board ,and  Licensing  Committee on   Foreign Technical Collaboration  & Industrial Licensing respectively.
  4. Empowered Committee on Industrial Parks Scheme
  5. ( i ). Selection Committee under Secretary (Industrial Policy & Promotion). in respect  

              of  Patent & Design.

(ii ).Intellectual Property Appellate  Board (IPAB)- Appellate Authority on Trade  

       Marks

      6.   Technical Expert Group on Patent law.

7    ( i )  Cess Committee on Paper Industry.

(ii )   Council of Association of Central Pulp   &   Paper   Research Institute.     

( iii ) Research Advisory Committee of Central Pulp & Paper Research  Institute. 

      (iv)  Development Council for Pulp, Paper  & Allied    Industries

            (v)   Development  Council for Printing Industry.

8.        Central Advisory Board for Salt.

9.        National Steering Committee , Monitoring & Advisory Committee in respect of UNIDO.

 

II.                NON-  OFFICIAL

 

       1.   All India Cement Manufacturer’s  Association

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

Budget allocated to each agency (Particular of all plans, proposed expenditure and reports on disbursement made.

 

  Budget allocated to each agency(Particulrs of all Plans and Non Plan ,proposed expenditure and report on disbursement made  
  Ministry of Commerce and Industry
 
 
  Demand No. 12 - DIPP
      (Rs. in crore)  
    Major Head      2009-10 Budget   
    Plan Non Plan Total Agencies
    Revenue 950.00 183.03 1133.03  
    Capital 50.00 0.00 50.00  
    Total 1000.00 183.03 1183.03  
1 Secretariat - Economic Services  3451 0.00 38.50 38.50 CDN Section
  Industries          
2 National Productivity  Council* 2852 0.00 8.00 8.00 UNIDO Section
3 National Institute of Design* 2852 0.00 1.79 1.79 IPR-V Section
4 Asian Productivity Organisation 2852 0.00 6.00 6.00 UNIDO Section
5 World Intellectual Property Organisation 3475 0.00 0.45 0.45 IPR-VI Section
6 Project Based Support to Autonomous Institutions 2852 50.00 0.00 50.00 Planning Section
  Other Administrative Services          
7 Petroleum and Explosives Safety Organisation  2070 3.00 23.49 26.49 Explosives Desk
  Other General Economic Services          
8 Controller General of Patents, Designs & Trade Marks   3475 0.00 35.00 35.00 IPR-III Section
9 Geographical Indications Registry 3475 0.00 1.00 1.00 IPR-II Section
10 Modernisation & Strengthening of Intellectual Property Office 3475 35.00 0.00 35.00 IPR-III Section
11 National Institute of Intellectual Property Management 3475 0.00 0.50 0.50 IPR-III Section
    4059 5.00 0.00 5.00 IPR-III Section
12 Economic Adviser   3475 2.00 4.11 6.11 E.IV Section
13 Intellectual Property Appellate Board (IPAB)   3475 0.00 2.30 2.30 IPR-I Section
  Total - Other General Economic Services   42.00 42.91 84.91  
14 Tariff Commission   2852 0.00 6.00 6.00 E.IV Section
15 Salt Commissioner   2852 0.00 23.00 23.00 Salt Section
16 Central Manufacturing Technology Institute* 2852 0.00 8.00 8.00 LEI Section
17 Industrial Education Research Training (IERT)          
17.01 Development Council for Paper, Pulp & Allied Industries 2852 0.00 5.50 5.50 Paper Section
17.02 Technology Upgradation Fund Scheme for Paper Section 2852 1.00 0.00 1.00 Paper Section
18 Development Council for Cement Industry 2852 0.00 3.50 3.50 Cement Section
  Development Commissioner for Residual Cell 2852 0.00 0.03 0.03 Cement Section
19 Indian Leather Development Programme 2852 100.00 0 100.00 Leather Section
20 Other Scheme-Ashok Paper Mills 2852 0.00 0.02 0.02 Paper Section
21 United Nations Industrial Development Organisation 2852 0.00 8.08 8.08 UNIDO Section
  Other Outlays on Industries and Minerals          
22 Development of Backward Areas          
22.01 Transport subsidy to Industrial Units 2885 401.00 0.00 401.00 DBA-II Section
22.02 Package for Special Category Statesfor J&K,HP and Uttarakhand 2885 50.00 0.00 50.00 Spl.Packages Section
22.03 Integrated Infrastructure Develoment Scheme 2885 3.00 0.00 3.00  
22.04 North East Industrial Package (formerly Package for North East States) 2885 0.01 0.00 0.01 DBA-II Section
  Total - Other Outlays on Industries and Minerals 2885 454.01 0.00 454.01  
23 Scheme of  Investment Promotion Activities 2852 15.00 0.00 15.00 IP&IC - IV Section
24 Industrial  Infrastructure Upgradation Scheme 2852 180.00 0.00 180.00 DBA-I Section
25 National Council for Cement and Building  Material* 2852 0.00 3.50 3.50 Cement Section
26 Indian Rubber Manufacturers Research Association* 2852 0.00 0.04 0.04 LR Section
27 Survey of Boiler 2852 0.00 0.12 0.12 Boiler Section
28 National Manufacturing Competitiveness Council  2852 5.00 4.10 9.10 CDN Section
29 Investment in Public Enterprises          
29.01 Delhi Mumbai Industrial Corridor Development Corporation 4875 50.00 0.00 50.00 ID-I Section
30  Provision for North Eastern Region and Sikkim 2552        
30.01 North East Industrial Package (formerly Package for North East States) 2552 99.99 0.00 99.99 DBA-II Section
  Grand Total   1000.00 183.03 1183.03  
  Deduct recoveries   0.00 0.03 0.03  
  Net Total   1000.00 183.00 1183.00  
  *Plan provisions are included under Project Base Support to Autonomous  Institutions          

 

 

Industrial Infrastrucutre Upgradation Scheme (IIUS)

 

            Industrial Infrastructure Upgradation Scheme (IIUS) was launched in 2003 with a view to enhance competitiveness of industry by providing quality infrastructure through public-private partnership in selected functional cluster.  The scheme has been suitably notified in 2009  mainly to cut delays in the implementation of the projects and streamline the process under the Scheme, central grant is provided to upgrade the infrastructure of the existing clusters.  The infrastructure include physical infrastructure, R& D infrastructure, Common Facilities centre etc.  The projects are executed by SPVs which are non profit bearing companies formed by the local industry association.  The central grant is restricted to 75% of the project cost subject to a ceiling of Rs. 60 crore.  The remaining 25% is financed by other stakeholders with a minimum industry contribution of 15% of the total project cost, which must be in form of cash and not in kind like the cost of land or existing building.  In case of North Eastern States and Jammu & Kashmir, Himachal Pradesh and Uttarakhand the central grant is up to 90% of the project cost with minimum industry contribution of 5% of the total project cost.

 

            During 10th Five Year Plan 26 projects with total cost of Rs. 1693 crore and involving central grant of Rs. 945 crore were sanctioned under the IIUS.  In addition, 5 projects with total cost of Rs. 271 and central grant of Rs. 185 crore have been sanctioned during 11th Five Year Plan.  The total cost of all 31 sanctioned projects is Rs. 1964 crore including central grant of Rs. 1130 crore.  So far, Rs. 846 crore has been released to various Special Purpose Vehicles.  Out of these 31 projects 5 are for Tamil Nady, 4 each are for Gujarat and Madhya Pradesh, 3 are for West Bengal and Maharashtra and 2 each for Andhra Pradesh and Karnataka and I each in Chhattisgtarh, Haryana, Kerala, Orissa, Punjab, Rajasthan, U.P. and Jharkhand, Five projects have been sanctioned for Ayuto Components and Textiles cluster each, three projects for Chemical clusters and Foundry clusters each and two projects for Leather clusters and Rubber clusters each.  7 projects, namely, auto Cluster, Pune, Machine Tools Clusters, Bangalore, Textile Cluster, Tirupur (TN), Chemical Cluster, Vapi, Chemical Cluster, Ankleshwar, Pump Motor & Foundry Cluster, Coimbatore and Textile Cluster, Ludhiana are complete.  The rest of the projects are at different stages of implementation.

 

            For the 11th Plan an amount Rs. 1050 crore has been allocated for the IIUS.  Out of this amount Rs. 325 crore has been for the projects sanctioned in industrially less developed States, Rs. 275 crore for completion of ongoing projects sanctioned in 10th Plan and Rs. 450 crore for 10-15 projects to be sanctioned under the recast IIUS.  In the BE for the current financial year 2009-10 Rs. 150 crore has been provided for the Scheme.

 

 

Brief on Quality Council of India (QCI), New Delhi an autonomous body under the administrative control of Department of Industrial Policy and Promotion, Ministry of Commerce and Industry, Udyog Bhawan, New Delhi:

 

Quality Council of India (QCI):

 

The Quality Council of India (QCI) was set up in 1997 under the Societies Registration Act, 1860 to establish an accreditation structure in the country and to spread quality movement in India by undertaking a National Quality Campaign.

 

Objectives of QCI:

 

The objectives for QCI as identified at the time of its formation were:

 

§         Establish an accreditation structure in the country

§         Provide a right and unbiased information on quality and related standards

§         Spread quality movement in the country

§         Facilitate upgradation of equipment and techniques related to quality

§         Represent India’s interest in International forums

§         Help establish brand equity of Indian products and services

 

To realize the objective of improving quality competitiveness of Indian products and services, QCI provides strategic direction to the quality movement in the country by establishing recognition of Indian conformity assessment system at the international level. Visit QCI website www.qciin.org  for more details.

 

Plan Assistance to QCI during the XI Five Year Plan: 

 

A Scheme for giving Plan Assistance to QCI for execution of the National Quality Campaign during the XI Five Year Plan is currently under implementation.  Under the scheme, an assistance of Rs.14.50 crore has been approved for planning and executing various programmes under the National Quality Campaign.  The focus of the Campaign is on Manufacturing, Health, Education and Public Services sectors.  QCI would also conduct studies on Impact of Compliance to Standards on the Competitiveness of Indian Industry.  An assistance of Rs.5 crore has also been approved for implementing the scheme for Study on Impact of Compliance of Standards on Competitiveness of Indian Industry. 

 

Release of funds to QCI:

(Rs. in crore)

Year

Allocation

Release/Actual expenditure

2007-08

0.75

              0.75

2008-09

2.00

              2.00

2009-10

5.00

1.00 (upto 30.06.2009)

……

 

Brief on Indian Rubber Manufacturers’ Research Association (IRMRA),Thane an autonomous body under the administrative control of Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Udyog Bhawan, New Delhi:

 

 Indian Rubber Manufacturers' Research Association (IRMRA):

 

The Indian Rubber Manufacturers Research Association (IRMRA), Thane, Maharashtra was established in 1959  as a scientific and industrial  research association for promoting basic and applied  research and development activities in the field of rubber and allied products.  It is registered under the Societies Registration Act, 1860. IRMRA is governed by a Governing Council consisting of members from Rubber Industry, Central Government and Government of Maharashtra.

 

Main objectives:

 

 

Visit IRMRA website at www.irmra.org  for more details.

 

Plan Assistance to IRMRA during the XI Five Year Plan:

 

Plan assistance of Rs.22.50 crore has been approved for IRMRA for implementing the following schemes during the XI Five Year Plan:

 

S.

No

Name of the projects

Plan assistance approved during the XI Five Year Plan

1

Centre of Excellence for Tyre Research and Testing

Rs.20.25 crore

2

HRD- Entrepreneurship Development programmes

Rs.1.75 crore

3

Out -reach programmes

Rs. 0.50 crore

 

 

Total

Rs.22.50 crore

 

Release of plan assistance to IRMRA:

(Rs. in crore)

Year

Allocation

Release/Actual expenditure

2007-08

2.00

              2.00

2008-09

10.00

            10.00

2009-10

4.50

3.00 (upto 30.06.2009)

 

Brief on the Plan Schemes “Indian Leather Development Programme (ILDP)” being implemented by DIPP (Leather Section) during 11th Five Year Plan

 

Leather Sector is the 10th largest manufacturing sector in India and it plays an important role in Indian economy in view of its substantial overall output, export earnings and employment potential. The Leather Sector employs 2.5 million people with majority from weaker sections of the society and about 30%  women. The Sector is dominated by small and medium enterprises In order to augment raw material base; enhance capacity; address environmental concerns; human resource development; attract investment and global marketing of Indian Leather, the Central Government has approved implementation of the Indian Leather Development Programme (ILDP) for the 11th Five Year Plan comprising of the following components: -

 

i)            INTEGRATED DEVELOPMENT OF LEATHER SECTOR (IDLS) (Outlay Rs. 253.43 crores): This is a 10th plan scheme and is being continued in the 11th plan. The scope of the scheme is enhanced to include new units .The scheme would provide assistance in the form of Investment grant @ 30% to SSI and 20% to Non-SSI upto grant of Rs. 50 lakh.  Assistance will be provided @ 20% if the grant amount is above Rs. 50 lakh within the ceiling of Rs. 2 crores.   The disbursement above Rs. 25 lakh would be made in four equal annual installments.

 

ii).            LEATHER TANNING COMPLEX AT NELLORE (Outlay Rs. 29 crores): This project was proposed to be implemented during the 10th Five Year Plan. However, the project could not take off for want of decision from the Government of Andhra Pradesh. This project aims to increase the capacity of the tanning sector. This project is proposed to be implemented during the 11th Plan. Government of Andhra Pradesh has transferred the required land to LIDCAP, an institution expected to implement the project. A provision of Rs.29 crores is approved during 11th Plan as assistance to develop the infrastructure of the tanning park.

 

iii)            ESTABLISHMENT OF BRANCH OF FDDI (NIFDT) AT FURSATGANJ (Outlay Rs. 7.17 crores): The Institute would be a branch of the Footwear Design and Development Institute, Noida and would be equipped with facilities of latest technologies to provide training of international standards with latest technology. The assistance from this Department to the project is Rs. 13.53 crores out of which Rs. 6.36 crores has been released during the 10th Plan Period. The balance of Rs. 7.17 crores has also been released in December 2007 i.e., during the 11th Plan Period.

 

iv)             FOOTWEAR COMPLEX (Outlay Rs. 3 crores): This is an ongoing scheme of the 10th Plan and aims to build a Footwear Complex near Chennai in 153.65 acres and provide infrastructure facilities for housing large footwear manufacturing units. Infrastructure development towards design and testing centers, display centre, warehousing, common power plant etc. would be provided. State Industries Promotion Corporation of Tamil Nadu Limited (SIPCOT), a State Government undertaking is the implementing agency. The Central Government has released Rs. 11 crores during the 10th Plan and the balance of Rs. 3 crores would be released during the 11th Five Year Plan period.

  

v)             SADDLERY DEVELOPMENT (Outlay Rs. 10 crores): Harness and Saddlery comprise a wide range of products.  The industry had identified upgradation and development of skilled manpower, standardization & development of components accessories and tools, development of low cost indigenous machinery, and improvement in production techniques and processes as major areas of concern. International Institute of Saddlery Technology and Export Management (Kanpur), a Special Purpose Vehicle constituted under the overall guidance and superintendence of IIT (Kanpur) would continue to provide skilled human resources to meet the need of the sector and function as an R & D base for the industry. In order to achieve the above stated objectives an allocation of Rs. 10 crores has been approved for the XI Plan period.

 

vi)              SUPPORT TO ARTISAN (Outlay Rs. 40 crores): There are various clusters in the India making traditional footwear and other leather goods. The aim of the component 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 (both urban and rural) would be supported for enhancing their designs as per the changing trends and fashion, corpus of revolving funds for obtaining bulk raw material, grant based livelihood support, marketing support/linkages and also bank linkages. The broad objective of this component would be to ensure better and higher returns to the artisans.

 

vii).             HUMAN RESOURCE DEVELOPMENT (Outlay Rs. 60 crores): HRD mission would target non-traditional potential work force in the rural areas. This project would train and prepare individuals in the rural areas to be fit to work in medium to large industrial units that are likely to be set up. Up gradation of skills of persons already employed in the sector besides training for trainers/supervisors would also be undertaken. The scheme would lay stress on skill development and technical development especially in cutting and stitching.  The training proposed under the scheme would be output linked where atleast 75% of those trained would be placed in the industry.

 

viii).     UP-GRADATION OF FACILITIES OF FDDI AND ESTABLISHMENT OF OTHER SUCH INSTITUTES AND CENTRES: (Outlay Rs. 300.07 crores): As of now about 3,800 people are trained every year in leather and leather product sector CLE 2008. Against this supply, the demand of the industry is around 1,00,000 skilled persons  every year for the next five years.  In order to increase the uptake of the student in each category and to train them in the latest technology, up gradation of the facilities in the existing units has become absolutely essential.

Footwear Design and Development Institute (FDDI), Noida, is a premier Institute providing training, consultancy services in the footwear and leather industry. It is therefore proposed that at least three new FDDI campuses each at Tamil Nadu, West Bengal and Haryana. would be established at a cost of Rs. 96.69 crores each during the 11th Plan period to meet the growing demand of the leather Industry. Besides, Rs. 10 crores would be provided for up gradation of existing FDDI campus at Noida. Assistance would be in the form of one time grant for creation of capital assets and permanent infrastructure and no recurring cost would be provided.

 

ix).         UPGRADATION/INSTALLATION OF INFRASTRUCTURE FOR ENVIRONMENT PROTECTION IN LEATHER SECTOR (Outlay Rs. 200 crores): Leather industry and tanning activity in particular, all over the World is linked to environmental concerns.  In view of the fact that environmental issues are slowly gaining ground and measures would need to be put in place for industries to cope with the stringent norms, an allocation of Rs. 200 crores has been made in the 11th Five Year Plan to address these concerns. Projects for meeting environmental concerns would be funded with 50% grants from Central Government, with the remaining fund coming from State Government (15%) and from the Industry (35%).  The entire Operation and Maintenance costs would be borne by the industry.

 

x).              MISSION MODE (Outlay Rs. 10 crores): This programme envisages attracting investment in to the sector and includes provision for research, programme support, survey, and concurrent evaluation etc in the field of leather. Besides, provision has also been made for cost on account of advisory and consultancy services in respect of various projects under ILDP being implemented in the 11th Five Year Plan.

 

xi)            ESTABLISHMENT OF TRAINING CENTRE IN MADHYA PRADESH (Rs. 24.85 crores): This sub-scheme aims at establishment of a training centre at Chhindwara in Madhya Pradesh to cater to the needs of shortage of manpower for the leather industry situated in Central India. The institute would also help in generation of employment in the region and would act as a catalyst for triggering development activities in the region by setting up of leather units in the region.

 

Transport Subsidy Scheme, 1971

 

           

The Transport Subsidy Scheme was announced on 23.7.1971.  The Scheme was introduced 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 stand competition with other similar industries, which are geographically located in better areas.

 

2.            Planning Commission, Ministry of Railways, Ministry of Finance (Department of Expenditure), State Governments and Industrialists in NER, were associated at the time of finalization of initial scheme.

 

3.         The salient features of the Scheme are as under:

 

  •  

Introduced on

 

:

23.7.1971

  •  

 

Applicability

:

The Scheme is applicable to all industrial units (barring plantations, refineries and power generating units both in public and private sectors irrespective of their size)

 

  •  

Coverage

:

-          8 States of North East

-          H.P.

-          Uttarakhand

-          J&K

-          Darjeeling District of West Bengal

-          Andaman & Nicobar Administration

-          Lakshadweep Administration

  •  

Validity of Scheme

:

The scheme has been extended beyond 31.3.2008 with the approval of the Cabinet Committee on Economic Affairs on the same terms and conditions till completion of the evaluation process.  The process of evaluation of the Scheme by an independent agency is in progress.

 

On the request of DIPP, the office of C&AG has also conducted a Performance Audit of the Transport Subsidy Scheme and has submitted their draft report on 18th March, 2009.   Action on the recommendations made in the report has been initiated.

 

  •  

Quantum of Subsidy

:

Subsidy ranging between 50% and 90% of the transport cost for transportation of raw material and finished goods to and 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. and Uttarkhand and Darjeeling District of West Bengal, the subsidy is 75%.  However, for movement of goods within NER, the subsidy is 50%.)

 

  •  

Period of eligibility

:

The subsidy is eligible to a unit 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 North Eastern Region.

(ii)                JKDFC for J&K

(iii)               HPSIDC for Himachal Pradesh

(iv)              SIDCUL for Uttarakhand

 

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

 

  •  

Releases under the scheme

:

Since inception of the Scheme, an amount of Rs.1796.98 crore (approx) has been released to the States/UTs.

 

 

BRIEF on NEIIPP, 2007

 

For accelerating industrial development in the entire North Eastern Region (NER), DIPP had announced the ‘North East Industrial Policy, 1997’ on 24.12.1997.  In 2002-03, similar Policies were issued for the States of J&K, Sikkim, Himachal Pradesh and Uttrakhand.  This had an adverse impact on the development in NER.  Therefore, in order to stabilize the existing investments and to attract new investment in NER, NEIP, 1997 was revised with the approval of CCEA and the new ‘ North East Industrial and Investment Promotion Policy (NEIIPP), 2007’ was notified by DIPP on 1.4.2007.

 

The salient features of NEIIPP, 2007 are as under: -

 

(i)         The benefits under the Policy are available to new industrial units as well as existing industrial unit on their substantial expansion, for a period of 10 years from the date of commencement of commercial production.

 

(ii)        Besides the seven States (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Tripura) of North East, Sikkim has also been included in the Policy.

 

(iii)       Unlike under the previous Policy, the benefits are available to the eligible industrial units, irrespective of their location in the NER.

 

(iv)       100% Excise duty exemption on finished goods made in NER.

 

(v)        100% Income tax exemption.

 

(vi)       Capital Investment Subsidy @ 30% of the value of plant and machinery, without any upper ceiling.  The limit of automatic approval of subsidy is Rs. 1.50 crore.   Subsidy higher than Rs.1.50 crore but upto a maximum of Rs. 30 crore would be granted with the approval of an Empowered Committee and proposals for grant of subsidy higher than Rs. 30 crore , would require approval of the Union Cabinet.   This subsidy is available to  units in the Private Sector, Joint Sector, Cooperative Sector as well as units set up by the State Governments of NER.

 

(vii)      Interest subsidy @ 3% on working capital loan.

 

(viii)     Comprehensive Insurance subsidy.

 

(ix)       In addition to ‘manufacturing sector’, the benefits under NEIIPP, 2007 have for the first time, been extended to ‘service sector’ (hotels- not below two star category, nursing homes- minimum capacity 25 beds, old age homes, adventure and leisure sports, training institutes etc.), ‘Bio-technology Industry’ and ‘Power generating Industries –upto 10 MW’ also.

 

(x)        North Eastern Development Finance Corporation (NEDFi), Guwahati has been designated as the nodal agency for disbursal of various subsidies.

 

(xi)       A Negative List/List of activities of low value addition has been introduced for the first time.   The list includes Tobacco and manufactured tobacco substitutes, Pan Masala, Plastic carry bags of less than 20 microns.  The industrial units falling in these Lists will not be eligible for benefits under the Policy.

 

(xii)      For effective implementation of the Policy, various Committees have been constituted.

 

BRIEF ON DELHI - MUMBAI INDUSTRIAL CORRIDOR  (DMIC) PROJECT

Background

 

With the objective to creating strong economic base with globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance foreign investments and attain sustainable development, Industrial Corridors are being developed all over the world.  In India, such an effort was initiated when the Union Government accorded its ‘in principle’ approval on 16th August 2007 to the Project outline of the Delhi - Mumbai Industrial Corridor, in pursuance of an MoU signed between the Government of India and the Government of Japan during Hon’ble Prime Minister’s visit to Japan in December 2006. 

 

Delhi - Mumbai Industrial Corridor (DMIC)

 

DMIC is proposed to be developed along the alignment of 1483-km long Dedicated Multi-modal High Axle Load Freight Corridor (DFC) between Dadri (in UP) and Navi Mumbai as a Model Industrial Corridor of international standards, with emphasis on expanding the manufacturing and services base and develop DMIC as the ‘Global Manufacturing and Trading Hub’.   The Project aims at doubling the employment potential, tripling the industrial output and quadrupling exports from the region, in the first five years.  DMIC is estimated to have potential to attract investments worth US$90 Billion in various industry and infrastructure initiatives through Public Private Partnership (PPP) route.  The Project Influence Area of DMIC covers parts of the States of Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.

 

Proposed Developments and Duration

The Project is proposed to be developed in phases.  In the first phase 12 nodes - 6 Investment Regions and 6 Industrial Areas are proposed to be developed with requisite industrial infrastructure like industrial estates, knowledge hubs, IT/ITES hubs, logistics hubs and physical infrastructure.  An Investment Region (IR) would be a specifically delineated industrial region with a minimum area of around 200 square kilometers (20,000 hectares) and its maximum limit to depend on the specific site’s potential, while an Industrial Area (IA) would be developed with a minimum area of around 100 square kilometers (10,000 hectares) for the establishment of manufacturing facilities for domestic and export led production along with the associated services and infrastructure.  Another 12 nodes have been identified tentatively for development during Phase II of the project.

 

Phase I of the project is planned to be completed by 2012 and Phase II by 2018.
 

Monitoring

With a view to giving overall guidance, planning and approvals, an Apex Monitoring Authority has been set up with the Finance Minister as Chairperson and five Union Ministers/Dy. Chairperson, Planning Commission/Chief Ministers of six States as Members. Five more Union Ministers are Invitees.  Similar monitoring mechanism at State level is also in place.

 

Implementation

Delhi – Mumbai Industrial Corridor Development Corporation (DMICDC), the central SPV, has been incorporated with an authorized equity base of Rs.10 Crores (49% equity participation by GoI, 41% by IL&FS and 10% by IDFC).  DMICDC is envisaged for project development, coordinating the implementation of the numerous projects and also raising finances, wherever needed.  Secretary, DIPP is ex-officio Chairman of the Corporation and the process to appoint its full-time CEO is underway.  The Board of Directors of DMICDC consists of 3 GoI representatives, 3 IL&FS representatives and 1 IDFC representative.  M/s IL&FS Infrastructure Development Corporation Limited (IIDC) has been appointed as Project Management Consultant (PMC) to DMICDC.

 

Project Development Fund

         The Project will have a revolving Project Development Fund (PDF). The DMIC-PDF is proposed to be contributed equally by GoI and G/o Japan with two separate accounts viz. PDF-Japan Account and PDF-Indian Account.  While the PDF – Japan Account is expected to be set up through an untied commercial loan of US $ 75 M to be obtained from JBIC (for which negotiations are ongoing), the PDF - Indian Account would be set up with plan contribution from DIPP.    An amount of Rs.330 Crores has been allocated during 11th Five Year Plan (2007-2012) under DIPP Plan Resources.   The Expenditure Finance Committee (EFC) in its meeting held on 7th July 2008 recommended disbursement of Rs.100 Crores (to be equally contributed by Government of India and Government of Japan) to DMIC-PDF during 2008 – 09.   The budgetary allocation for Rs.50 Crores made in the Annual Plan of DIPP for the year 2008 – 09 has been released to DMICDC.  For the year 2009-10 also, a budget allocation of Rs.50 Crores has been made.

 

         Sourcing of funds for the DMIC-PDF-Japan Account is in its discussion stage to be procured as an untied commercial loan from JBIC through a Government owned company i.e. India Infrastructure Finance Company Ltd (IIFCL) to be guaranteed by a sovereign guarantee by the Ministry of Finance, Government of India.  MoU between JBIC and IIFCL/DMICDC was signed during Hon’ble Prime Minister’s visit to Japan in October 2008 to facilitate further cooperation in the DMIC project including untied commercial loan for the project.  Loan Agreement, Form of Guarantee, Term Sheets, etc. are being finalized. 
 

Memorandum of Understanding (MoU) & Early Bird Projects (EBPs)

 

DMICDC has signed four MoUs, one each with the State Government of Gujarat on 25th July, 2008, with the Government of Madhya Pradesh on 26th August, 2008, with the Government of Haryana on 3rd October 2008 and with the Government of Rajasthan on 20th February 2009 for preparation of perspective and development plan for each Node jointly.  Signing of MoUs with the State Governments of Uttar Pradesh and Maharashtra are under process. 

 

24 Early Bird Projects have been finalized - @ 4 projects in each of the States of Gujarat, Madhya Pradesh and Haryana, seven in Maharashtra and 5 in Rajasthan (list annexed).  The Japanese side has also announced five Early Bird Projects during the visit of Hon’ble Prime Minister to Japan in October 2008 (list annexed).

 

Appointment of Consultants

 

         M/s Scott Wilson has been awarded the consultancy of master planning the entire DMIC region in October 2008 and its final report is expected in August 2009.  The assignments of the Master Planning of the individual investment nodes in Gujarat, Madhya Pradesh and Haryana have been awarded to Halcrow in October 2008, M/s Lea Associates South Asia Pvt. Ltd. in November 2008 and M/s Jurong Consultants India Pvt. Ltd. in January 2009 respectively and their final reports are expected in November, 2009, December, 2009 and March, 2010 respectively.  RFP for Master Planning of individual investment nodes in Rajasthan is under preparation.  For the remaining States of Uttar Pradesh and Maharashtra, the Master Planning exercise will be initiated once the States have entered into MoUs with the DMICDC.

 

Indo – Japan Joint Task Force

 

An Indo-Japan Task Force was set up under the joint chairmanship of Secretary, DIPP and the Vice-Minister METI, Govt of Japan to assist in DMIC planning.  Task Force has held five meetings so far – two in New Delhi and three in Tokyo and provided useful inputs for the project.  Business houses from both countries showed enthusiasm and evinced interest in investing in the project.  Fifth Task Force meeting was held in Japan in February 2009.

 

MONITORING COMMITTEE

 

 

PMO has constituted a Monitoring Committee on 5th June 2009 to monitor the progress of DMIC and DFC Projects under the Chairmanship of Principal Secretary to PM and Chairman, Railway Board, Foreign Secretary, Finance Secretary and Secretary, DIPP are its members.   Chief Secretaries of the six participating States would be invited as may be required.


 

Annexure

 

List of Early Bird Projects under DMIC Project

 

Gujarat: 

1.      Amdavad- Vataman- Pipli- Dholera- Bhavnagar Six Lane Access Controlled Highway (180km)

2.      Regional Metro rail system between Gandhinagar- Amdavad- Dholera (120km)

3.      International Airport  between Amdavad- Dholera

4.      Integrated Mega Industrial Park at Dholera

Madhya Pradesh:

1.      Development of economic corridor along link road connecting Indore Airport to Pithampur.

2.      Development of integrated multimodal logistic hub near Maksi

3.      Continuous water supply and waste water management in Pithampur Industrial Area and

4.      Knowledge City in Ujjain District.

 

Haryana:

1.      Regional MRTS between Delhi-Manesar-Bawal with feeder service to enhance connectivity between Delhi and the upcoming manufacturing hubs.

2.      Exhibition-cum-Convention Centre in NCR

3.      Multi-modal Logistic Hubs at IMT Manesar

4.      New passenger Rail Links; Palwal-Rewari via Bhiwadi, Farrukhnagar - Jhajjar

Maharashtra:

1.      Connectivity of Alewadi Port by rail to Dedicated Freight Corridor and to Alewadi Port by 4 lane road to Mumbai – Ahmedabad Highway and to Mumbai-Nashik Highway

2.      4 lane Road Connectivity from Shirdi (Dist. Ahmednagar) to Igatpuri via Sinnar (Dist. Nashik)

3.      Rail connectivity of Revas port and Dighi Port (Dist. Raigad) to Konkan Railway and 4 lane road connectivity of these ports to nearest National Highways

4.      Trans Harbour Road – Railway Link Project

5.      Inland Container Depot at Talegaon (Dist Pune)

6.      Connectivity by 4 lane Road and Rail of Nevali Growth Centre (Dist. Thane) to Dedicated Freight Corridor

7.      Rail Connectivity of Mumbai Port Trust to Dedicated Freight Corridor

Rajasthan: 

1.      Shahjahanpur – Neemrana – Behrore (SNB) Global City Complex

2.      Train link from Delhi to Jaipur passing through Bhiwari, Neemrana and

Manoharpur

3.      Central Spine connecting Global City with Bhiwadi-Tapukada Industrial

Complex via Ajarka

4.      Logistic Hub at Bhiwadi

5.      Aerotropolis Project


 

Annexure

 

List of Early Bird Projects from Japanese side under DMIC Project

 

1.  IIJE (Integrated India – Japan Enclave)      :           MITSUI & CO. LTD

 

2.  FTWZ (Free Trade Warehousing Zone) Project:           MITSUI & CO. LTD

 

3.  DMIC Human Resources Training Project:

Project proposal and Planning: Techno Brain Company (technically supported by Sony Corporation)

Implementation Organization:

Science and Technology Park, promoted by Government of India’s Department of Science and Technology and University of Pune, Maharashtra

 

      4.  Captive Power Plant at Neemrana Japan Investment Park

           Hitachi, Neemrana Japanese Participating Companies

 

      5.  Neemrana Jet Stream Logistics Project

           NYK Line India & NYK Logistics India

 

 

 

Brief on Plan Schemes being handled by CPPRI under XI Plan

 

The paper industry in India is one of the 35 high priority industries and is growing @6% per annum. The installed capacity of paper production is presently 9.18 million tons which is likely to be doubled in the next 10 years. Despite of steady growth the paper industry continues to confront with the issues such as sustained availability of good quality of raw material and its effective utilisation, obsolescence of technology, higher cost of production and environmental management. The long term sustainability and competitiveness of the industry will largely depend upon how these issues are addressed.

 

Central Pulp & Paper Research Institute (CPPRI) has formulated the research programme focussed on these areas after detailed discussions with Indian Paper Industry Associations. Under XI Plan scheme following three major activities were finalized

 

-     Raw material & Product Development

-     Energy Conservation & Environmental Management

-      Infrastructure & Developmental Activities at CPPRI

 

These schemes were also reviewed by –

 

-     Governing Council (GC) of CPPRI - Comprising of representatives of Paper Industry, Ministry of Commerce & Industry (Department of Industrial Policy & Promotion), Department of Science & Technology (DST), Council of Scientific and Industrial Research (CSIR), Indian Council of Forest Research & Education (ICFRE) and Indian Institute of Technology (IIT), Roorkee.

 

-         Research Advisory Committee (RAC) of CPPRI - which includes prominent scientists and technologist and also representatives of concerned departments such as Department of Science & Technology (DST), Council of Scientific and Industrial Research (CSIR), Indian Council of Forest Research & Education (ICFRE) and Indian Institute of Technology (IIT), Roorkee and representatives from Paper Industry.

 

 

Schemes in brief

 

1.      Raw material & Product Development

 

Under this scheme following three activities have been taken up-

 

(a)  Storage and preservation of fibrous raw materials used in Indian pulp & paper industries.

 

Indian Paper industry uses a wide variety of woody and non-woody raw materials. These raw materials are normally stored in the forest depots and mill yards, some times upto a period of nine months to one year. It has been observed by most of the paper mills that these raw materials are highly vulnerable to natural bio-degradation, fungal and insect attack. This causes fibre loss, poor fibre yield and low intrinsic strength of fibre thus deteriorating the quality of paper.

 

This project is aimed at reducing the storage losses by application of environmental friendly preservatives and study the effect of different storage period on end product.

 

Studies are being conducted in selected mills using Subabul, Casurina, Hardwoods, Bagasse, Eucalyptus, & Bamboo for different storage period to assess the losses and impact on pulp & paper properties. Studies so far has revealed that storage of raw material adversely affects the yield and strength of raw material. The yield of bagasse and rice straw dropped by 8-10% during storage and pulp strength (Tensile strength) dropped by 5-10% for different raw material.

 

(b)  Printing Quality Evaluation- Assessment and Improvement for Indigenous Coated Paper and paperboard.

 

The use of coated paper is gaining market in India. Due to the diversity of fibrous raw material used by the paper industry, a lot of variation is observed in coating quality Coating in paper is done primarily to improve printability of paper by enhancing smoothness and improving optical properties. Coating of paper is a multivariate system. There are number of parameters which needs to be optimised and therefore a thorough understanding of influences all these parameters needs to be studied systematically for different coated paper.

 

The project is aimed in depth study on printing quality of indigenous coated paper and paperboard and identifying the possible ways for improving quality of coated paper.

 

The studies carried out indicated that most of the Indian coated paper are lacking in parameter like print non-uniformity, print gloss and ink demand. These could be improved by modifying coating formulations with PCC & talc, reduction in binder level, etc.

 

 

(c)      Optimization of Wet End Operations of Paper making to improve the Quality of Paper

 

A paper making furnish is the suspension of charged particles- fibers, fiber fines, filler particles and anionic trash. Understanding of interaction among these charged particles is the key to wet end. Surface charge plays an important role in controlling the performance of wet end chemicals in paper making. It is therefore important that the colloidal charges of fibres are evaluated systematically for efficient operation.

 

The project is aimed at optimising the wet end of paper machine of 2-3 mills to improve paper economics and quality. The project has been initiated from April, 2009.

 


 

 

2.      Energy Conservation & Environmental Management

 

Under this scheme following three sub-activities are undergoing-

 

(a)  Improving the Rheological & Combustion behavior of Non-Wood Black Liquor for Enhanced Energy & Chemical Recovery

 

Black liquor generated in non-wood based pulp mill differs substantially from the wood black liquor. Presence of high amount of non-process elements and poor thermal & rheological properties of these non-wood black liquors limits both energy & chemical recovery.

 

The project is aimed at improving recovery boiler efficiency so as to make chemical recovery operation highly efficient through improved rheological and combustion behaviour of black liquor.

 

Studies conducted in selected mills to assess the levels of NPE’s (Chloride & Potassium) in black liquor has revealed that the level of chlorides ranges between 1.0-2.0% and level of potassium ranges between 3.5- 7.0% which is detrimental to recovery boiler operation. CPPRI has developed and validated the technology on bench scale to remove Potassium & Chlorides from ESP ash and thereby reducing the NPE’s level in the black liquor. CPPRI also provided technical support for successfully commissioning of first ever mill scale desilication plant for removal of silica in a rice straw based mill (30tpd) in collaboration with M/s ENMAS/Andritz Pvt. Ltd., Chennai.

 

 

(b)  Integrated Approach for Improving the Environmental Status of Pulp & Paper Industry

 

In last few years due to increased public awareness, strict environmental compliance tough competition even in domestic market for better product quality, the mills have already taken considerable efforts to reduce pollution load and volume of waste water discharge.  However, the measure taken by the mill so far are not sufficient to comply with the new emerging environmental issues particularly level of waste water discharge, level of AOX, disposal of AOX bearing ETP sludge etc.

 

The environmental issues in small scale agro based mills are more serious and critical as the existing ETP in these mills though adequate but are mostly operating below optimum level either due to overloading or lack of understanding of basics and regular monitoring.

 

Keeping in view of the above mentioned environment issues. The project is planned with an aim to reduce pollution load in both categories i.e. small scale agro based & large scale wood based pulp & paper mills involving reuse/recycle of resources, disposal of ETP sludge, management of NCG emissions & air pollutions including techno-economic viability of tertiary treatment to reduce colour and toxicity of effluents as well handling & disposal of AOX bearing ETP sludge as it has been notified as hazardous waste.

Performance evaluation of existing ETP conducted in 3 mills. Based on CPPRI’s recommendation the performance of ETP of bamboo based mill improved by 84% for COD removal, 62% for AOX removal, 18% for suspended solids removal & 4 % for BOD removal. Performance efficiency of air pollution monitoring equipments conducted in 5 mills. In most of the mill the emissions are within the permissible discharge limit.

 

(c)  Integrated Approach on Application of Bio technology in Pulp & Paper Industry

 

In the last few years, the enzyme application in pulp & paper manufacturing has gained a momentum to reduce production cost through cleaner production techniques. In the similar lines institute has extended its activities in the area of bio-refining to reduce energy usage in stock preparation and biological treatment of effluents for reduction of color & toxicity.

 

The project is aimed to develop and promote biotechnological applications in pulp and paper industry as clean & green technology to address problems of environmental pollution. The activities basically includes enzymatic refining of the virgin (wood and non-wood) and recycled fibres for reduction in refining energy with improved paper quality and the development of viable biotech-based technologies for the enzyme-bleaching including the bioremediation of effluents generated from large pulp and paper mills. Besides above, project activities also include development of infrastructure covering the construction of a biotechnology laboratory to extend the above R & D activities. 

 

The project has been initiated from April, 2009.

 

3.      Infrastructure & Developmental Activities

 

(a)      Strengthening of training & Human Resource Development (HRD) infrastructure in Pulp, Paper & Allied Industries

 

Continuing education has been a routine in all the western countries as it contributes significantly to the improvement of individual skills to deal with the new challenges in shop floor. However, in contrast to this technical manpower in Indian pulp & paper mills do not receive any significant training during the service. Continuous education is essential to improve the technical capabilities of the mill personnel, as there is consistent increase in the use of new technologies in the paper industry to meet the market demands. In India there is no institute that imparts technical training to the mill on continuous basis.

 

Therefore in view of above the project is initiated with an aim to create infrastructure facilities for imparting training to the technical manpower of the pulp, paper and allied industries across the country on a sustainable basis.

 

Besides short term training programmes, 2 training programmes were conducted in the area of “Biotechnological Applications in Pulp & Paper Industry & Environment Management” and “Maintenance & safety Aspects in Pulp & Paper Mills”. Around 200 personnel were trained under different training programmes. A one day International workshop on “Technological Trends in Pulp & Paper Industry” organized in New Delhi on 20th May 2009.

 

(b)      Infrastructure Development for Extension of Library & Documentation Service to the Indian Paper Industry

 

The project aim is to collect/update the knowledge in Pulp, Paper & Allied Industry and disseminate the research and development work carried out in CPPRI for last 25 years to Indian Paper Industry through various publications, periodicals and through electronics media.

 

(c)  Integrated Approach for Processing of Recycled Fibre

 

Over the years the use of recovered paper in the paper industry has increased and will continue to remain as a main raw material for paper making in the years to come. One of the important basics of effective processing of waste paper is the efficiency of contaminant removal, which depends mainly on selection of appropriate process configuration equipment and optimum process parameters for the particular waste paper/raw material furnish.

 

In the past few years CPPRI has done extensive work in the area of contaminant control & effective processing of waste paper, which included repulping of wet strength paper, quantification and control of stickies contaminants, development of new cost effective deinking technologies which have been successfully conducted on lab scale. The validation of lab findings requires pilot scale trials before implementing on commercial scale. In India and in entire Asia there is no such facility available where the lab scale research conducted at CPPRI or elsewhere could be simulated on plant scale.

 

Therefore this project aims at setting up of paper recycling pilot plant to demonstrate the lab scale research on a continuous plant simulating the Industrial plant conditions for processing of different varieties of recovered paper/wasted paper used by Indian paper industry.

 

Laboratory studies are being conducted on stickies control and bleaching of recycled fibre. Based on laboratory research & technical expertise, consultancy provided to 13 mills/agencies in Paper Recycling. Tender is being published for hiring a consultant for preparation of DPR on setting up of paper recycling pilot plant.

 

 

(d) Infrastructure and Capacity Building

 

Engineering & Maintenance Division supports the research activities of the various divisions of the Institute by providing support systems and infrastructure for Research and Development Activities. The project is aim to up-grade the infrastructure & support systems (Electrical/ Mechanical/ Civil/ Information Technology) in the Institute in order to insure smooth functioning of the R&D and Administrative/Finance activities.

 

Budget for the year 2009-10 for different schemes

 

Scheme

Budget (Rs. In Lacs)

Raw material & Product Development

 

58.00

Energy Conservation & Environmental Management

 

99.00

Infrastructure & Developmental Activities

 

143.00

Total

 

300.00

 


 

 

 

Manner of Execution of Subsidy Programmes, Including  the   Amounts Allocated  and  the Details of Beneficiaries  of Such Programmes

DBA-II/NER SECTION

DBA-II/NER Section administers the North East Industrial and Investment Promotion Policy (NEIIPP), 2007 and the Transport Subsidy Scheme, 1971.

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

For accelerating industrial development in the entire North Eastern Region (NER), Department of Industrial Policy and Promotion had announced an Industrial Policy titled the North East Industrial Policy (NEIP), 1997 on 24.12.1997. Similar policy was announced for the State of Sikkim in the year 2002. NEIP, 1997 was revised with the approval of CCEA and the new ‘North East Industrial and Investment Promotion Policy (NEIIPP), 2007’ was notified by DIPP on 1.4.2007, which is effective for 10 years. The Policy now covers Sikkim also. Under NEIIPP, 2007, benefits of the following three Schemes are available to Industrial Units in NER for period of five years from the date of commencement of commercial production:

 (a) Central Capital Investment Subsidy Scheme: The Scheme provides for Capital Investment Subsidy @ 30% of the value of plant and machinery, without any upper ceiling. The limit of automatic approval of subsidy is Rs. 1.50 crore; Grant of subsidy higher than Rs.1.50 crore but upto a maximum of Rs. 30 crore would require approval of an Empowered Committee; Grant of subsidy higher than Rs. 30 crore, would require approval of the Union Cabinet.

(b) Central Interest Subsidy Scheme: The Scheme provides for an Interest subsidy @ 3% on working capital loan taken by an industrial unit.

(c) Central Comprehensive Insurance Scheme: Provides for 100% reimbursement of insurance premium paid by an industrial unit.

. Besides benefits under the above-mentioned Schemes, the other features of NEIIPP, 2007 are as under:

In the current financial year 2008-09, there is a provision of Rs.100 crore under the three subsidy schemes under NEIIPP, 2007. The amount released under the Schemes during the financial year ending March 2008 is as under:-
 
Sl Scheme Amount
1 Capital Investment Subsidy Scheme 12.50
2 Interest Subsidy Scheme 12.50
3 Comprehensive Insurance Scheme --

II. Transport Subsidy Scheme, 1971

The Transport Subsidy Scheme was announced on 23.7.1971 with the objective of promoting industrialization in the remote, hilly and inaccessible areas by providing subsidy on the transportation cost incurred by the industrial units on movement of raw material and finished goods so that they could withstand competition from similar industries located in other areas, which are geographically better, placed. The Scheme is applicable to 14 States/UTs (North East, Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Darjeeling District of West Bengal, Andaman & Nicobar Administration and Lakshadweep).

 The Scheme is applicable to all industrial units (barring plantations, refineries and power generating units both in public and private sectors, irrespective of their size). The scheme has been extended from time to time. The last extension upto 31.3.2008 was approved by the Cabinet Committee on Economic Affairs on 29.3.2007, subject to an early evaluation of the Scheme with a view to introducing necessary safeguards to prevent possible leakages and misuse. Planning Commission is conducting evaluation of the Scheme, based on which a Note for extension of the Scheme beyond 31.3.2008 would be submitted for approval of the CCEA.

 The salient features of the Scheme are as under: ·

Quantum of Subsidy:

Subsidy ranging between 50% and 90% of the transport cost for transportation of raw material and finished goods to and 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. and Uttarkhand and Darjeeling District of West Bengal, the subsidy is 75%.  However, for movement of goods within NER, the subsidy is 50%.)

Period of eligibility: The subsidy is eligible to a unit for a maximum period of five years from the date of commencement of commercial production.  The period includes the period of ‘substantial expansion.’
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 North Eastern Region.

(ii)              JKDFC for J&K

(iii)             HPSIDC for Himachal Pradesh

(iv)            SIDCUL for Uttarakhand

The disbursement of subsidy to the industrial units in the Union Territories is made through the concerned UT administration..

 

Releases under the scheme

Since inception of the Scheme, an amount of Rs.1663.98 crore (approx) has been released to the States/UTs.

 

 Releases made under the Scheme during the financial year ending March 2008 are as under:

(i) NEDFi – for NER : Rs.595.63 crore
(ii) JKDFC – for J & K : Rs.8.60 crore
(iii) HPSIDC – for Himachal Pradesh : Rs.14.20 crore
(iv) Andaman & Nicobar Administration : Rs.0.86 crore

In the current financial year 2008-09, an amount of Rs.1 crore has been provided under the Scheme by the Planning Commission with the rider that further allocation would be made subject to the evaluation study.

 Special Package Section: Package of incentives for promoting industrialization in the States of Jammu & Kashmir, Himachal Pradesh & Uttarakhand are being implemented by Special Package Section.

     In 2002-03, the Government announced three packages of economic incentives for promoting industrialization in the State of Jammu & Kashmir, Himachal Pradesh and Uttarakhand. The package for Jammu and Kashmir was issued on 14.06.2002 and that for Himachal Pradesh and Uttarakhand on 07.01.2003.

    The aforesaid packages will be effective from the date of their issue and will be applicable to new units as well as existing units on their substantial expansion, for a period of 10 years.

    The economic incentives envisaged in J&K Package, inter-alia, include 100% income tax and excise exemption for a period of 10 years, Central Capital Investment Subsidy Scheme: @15% of investment of plant and machinery subject to a ceiling of Rs.30 lakh. Interest Subsidy @ 3% on working capital loan; Insurance Premium to the extent of 100% on capital investments, etc.

    The economic incentives envisaged in Himachal Pradesh and Uttarakhand packages, inter-alia, include 100% income tax and ecise exemption for a period of 10 years; Capital Investment Subsidy @ 15% for investment in plant and machinery subject to a maximum of Rs. 30.00 Lakh.

    The subsidies are released to the eligible industrial units through the designated Nodal Agencies in the respective States i.e. Jammu & Kashmir, Himachal Pradesh and Uttarakhand. The amount released from 2002-2003 to 2007-2008 is Rs. 82.79 crore to J&K, Rs. 56.30 crore to Himachal Pradesh and Rs. 39.84 crore to Uttarakhand. There is a provision of Rs. 50.00 crores for the current financial year 2008-2009, out of which Rs. 15.00 crore and Rs. 10.00 crores have been released to Himachal Pradesh and Uttarakhand respectively.
 

INDUSTRIAL PARK SCHEME With the objective of encouraging private investment in development of industrial parks/industrial model town/growth centres, in which high quality infrastructure is made available in a centralized manner, the Department of Industrial Policy & Promotion notified the Industrial Park Scheme in March 30, 1999 and revised on April 1, 2002. The projects that commenced their operation between 1.4.1997 and 31st March, 2006 were covered under the Industrial Park Scheme.

 Income Tax exemption under Section 80 IA of Income Tax, 1961, is available to undertakings accorded approval under this scheme for any ten consecutive years out of fifteen years beginning from the year in which the eligible projects commences operation.

Since the inception of the Scheme till date, 273 approvals (including 42 withdrawals) have been given under the Scheme. Around Rs.16449.74 crores is estimated investment in the approved live projects. Out of this amount Rs.14,425.41 crores is estimated investment on infrastructure development in the projects. Thus, around 88% of the total investment is on infrastructure development.

      

 

 

PACKAGE FOR  SPECIAL CATEGORY  STATES OF J&K, H.P. AND UTTARAKHAND

 

          The schemes for boosting industrialization in the Special Category States of Jammu & Kashmir, Himachal Pradesh and Uttarakhand were announced on 14.06.2002 (for J&K) and 07.01.2003 (for the other two States) in order to provide incentives to the new industrial units as well as the existing industrial units in these States on the substantial expansion of their activities after introduction of the schemes. This is a Centrally Sponsored Scheme and State-wise major components of the schemes are:

 

Jammu & Kashmir

 

(i)      Central Capital Investment Subsidy Scheme: @15% of investment of plant and machinery subject to a ceiling of  Rs.30 lakh for a period of 10 years till 14.06.2012;

(ii)                Central Interest Subsidy Scheme : @ 3% on the working capital loan for a period of 10 years till 14.06.2012;

(iii)              Central Comprehensive Insurance Scheme: 100% on capital investment for a period of 10 years till 14.06.2012;

(iv)               Transport Subsidy: 50-90% of cost of transportation of raw material and finished products to/from designated rail heads for a period of 5 years from the commencement of production;

(v)                 Central Excise Duty exemption: 100% exemption with CENVAT benefit for a period of 10 years; and

(vi)               Income Tax exemption: 100% exemption for new industrial units for a period of 10 years till 31.3.2012.

 
Himachal Pradesh  and Uttarakhand

 

(i)                  Central Capital Investment Subsidy Scheme: @15%  of  investment of plant and machinery subject to a ceiling of Rs.30 lakh for a period of 10 years till 07.01.2013;

(ii)                Central Excise Duty exemption: 100% exemption on outright basis to the industrial units set up or expanded in these States on or before 31.03.2010 (introduced as a sunset clause); and

(iii)              Income Tax exemption: 100% exemption for new as well as existing units for a period of 5 years and thereafter @ 30% for companies and 25% for other than companies for the next five years.

 

Implementing agencies

 

Jammu & Kashmir Development Finance Corporation Ltd. (JKDFC) has been notified as the Nodal Agency for routing the disbursal of subsidy to the eligible industrial units in the state of Jammu & Kashmir.  Himachal Pradesh State Industrial Development Corporation Ltd. (HPSIDC) and State Industrial Development Corporation of Uttarakhand Ltd. (SIDCUL) are the Nodal Agencies for routing the disbursal of subsidies in the states of Himachal Pradesh and Uttarakhand respectively.

                                                  

Details of the amount released by Department of Industrial Policy & Promotion to these nodal agencies since inception of the schemes are attached.

 

                                                              *********

 

 


 

 Details of the amount released under the scheme viz. “Package for Special Category States” (Plan) since its inception

                                                        

                                                                                                                                                 (Rupees in crores)

 

S.No

Nodal Agencies/State

Scheme

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

Total

1

Jammu & Kashmir Development Finance Corporation Ltd.

(JKDFC)/

Jammu & Kashmir

i) Central Capital Investment Subsidy Scheme

NIL

2.00

NIL

NIL

NIL

4.00

NIL

6.00

 

 

ii) Central Interest Subsidy Scheme

NIL

1.75

NIL

NIL

NIL

NIL

11.57

13.32

 

 

iii) Comprehensive Insurance Scheme

NIL

NIL

NIL

0.90

NIL

NIL

NIL

0.90

 

 

iv) Growth Centre

NIL

10.00

NIL

NIL

NIL

NIL

NIL

10.00

 

 

v) Transport Subsidy Scheme

NIL

4.50*

5.00

NIL

NIL

NIL

NIL

9.50

 

 

vi) Organizing of Seminar, etc.

 

NIL

0.04

NIL

NIL

NIL

NIL

NIL

0.04

 

 

vii) Setting up of Jammu & Kashmir Development Finance Corporation

 

NIL

12.71

37.29

NIL