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[[Category:India|I]]
[[Category: Economy-Industry-Resources |I]]


==The source of this article==
''' INDIA 2012 ''' 

A REFERENCE ANNUAL

'' Compiled by ''

RESEARCH, REFERENCE AND TRAINING DIVISION

PUBLICATIONS DIVISION

MINISTRY OF INFORMATION AND BROADCASTING

GOVERNMENT OF INDIA
=Industry=

INDIA resumed her quest for industrial development after Independence in 1947.
The Industrial Policy Resolution of 1948 marked the beginning of the evolution of
the Indian Industrial Policy. The Resolution not only defined the broad contours of
the policy; it delineated the role of the State in industrial development both as an
entrepreneur and as authority. Successive policy resolutions also reiterated this basic
tilt in favour of the public sector. The Industrial Policy Resolution of 1956 gave the
public sector a strategic role in the economy. It categorised industries which would
be the exclusive responsibility of the State or would progressively come under State
control and others. Earmarking the pre-eminent position of the public sector, it
envisaged private sector co-existing with the State and thus attempted to give the
policy framework flexibility.

India’s strategy for industrial development witnessed a paradigm shift in
1991. Industrial development until then was largely based on product market
regulations, with capacity licensing being its principal instrument. Though this
strategy had successfully created an industrial base, it had encouraged rent seeking
to a considerable extent. There were limited incentives for product innovation and
for a competitive push. Economic reforms initiated in 1991 gradually removed these
product market licenses. The new industrial development strategy, therefore,
envisaged a significantly bigger role for private initiatives.

=INDUSTRIAL POLICY=

Industrial policy since 1991 has been more of facilitating the industrial development
rather than anchoring it through permits and controls. Industrial licensing has,
therefore, been abolished for most of the industries and there are only 5 industries
related to security, strategic and environmental concerns where an industrial license
is currently required:

i. Distillation and brewing of alcoholic drinks;

ii. Cigars and cigarettes of tobacco and manufactured tobacco substitutes;

iii. Electronic aerospace and defence equipment; all types;

iv. Industrial explosives including detonating fuses, safety fuses, gunpowder,
nitrocellulose and matches;

v. Specified hazardous chemicals i.e. (i) Hydrocyanic acid and its derivatives,
(ii) Phosgene and its derivatives and (iii) Isocyanates and disocyanates of
hydrocarbon, not elsewhere specified (example Methyl isocyanate)
For all other industries, an investor is to file an Industrial Entrepreneurs'
Memorandum (IEM) to the Secretariat for Industrial Assistance (SIA). Even in the
filling of an IEM, a threshold limit of investment of Rs.10 crores in plant and machinery
has been prescribed.

Along with the removal of the industrial licensing, reform has also been
initiated in areas of reservation of products for exclusive production in the small
scale sector. With the reduction in the tariff rates and removal of quantitative
restrictions on imports, product reservation for small scale sector has created an
anomalous situation. By virtue of reservation of a product for production in small
scale sector, entry of a domestic large scale player was not permitted though the
product could still be imported from outside. Review of the list of items exclusively
reserved for production in small scale sector has, therefore, been a continuous process
and their numbers have been brought down to 21 in 2009. The Government has
also enacted the Micro, Small and Medium Enterprises Development (MSMED)
Act, 2006 stepping up the investment limit to Rs.5 crores for small enterprises so as
to reduce the regulatory interface with the majority of the industrial units.

Promotion of small scale industry continues to remain a focus area for the
Government. Industrial Undertakings other than the small scale industrial
undertakings engaged in the manufacture of 20 items reserved for exclusive
manufacture by the small scale sector are, therefore, required to obtain an industrial
license and undertake an export obligation of 50 per cent of their annual production.
The condition of licensing, however, is not applicable to such industries operating
under 100 per cent Export Oriented Undertakings Scheme, the Export Processing
Zone and the special Economic Zone Schemes. This in a way attempts to achieve
the twin objectives of small industries, protection and general competitiveness of
the industrial sector.

Consistent with the policy of liberalization of domestic industry, the number
of industries reserved for public sector have also been reduced. Presently there are
only two areas which are reserved for public sector viz. Atomic Energy and Rail
Transport.

=GDP Performance=

Product market reforms in industrial sector ran concurrently with the reforms in
the international trade sphere resulting in reduction in the duty rates across the
manufactured products in a calibrated manner and dismantling of quantitative
import restrictions. Indian economy responded positively to these policy changes.
There was acceleration in the growth of GDP and also in the growth of industrial
output. GDP growth, which averaged under 4.0 per cent during 1951-92, increased
to 7.7 per cent during 2000-2010. The rate of growth of industrial sector also improved
in line with the GDP growth, though the share of industries in GDP improved only
moderately. Economic integration with the global economy, however, progressed
consistently with the share of trade in GDP improving from 12 per cent during
1950-1992 to over 50 per cent in last three years.

==Table==

Table : 1 Rate of growth of GDP and its Sectors (average annual per cent)

1950-92 1992-97 1997-2002 2002-07 2007-08 2008-09 2009-10 2010-11

Agriculture 2.44 4.72 2.43 2.34 5.8 -0.1 0.4 6.6

Industry 5.31 7.29 4.29 9.18 9.7 4.4 8.0 7.9

Manufacturing 5.17 9.42 3.31 8.57 10.3 4.2 8.8 8.3

Services 4.96 7.28 7.87 9.37 10.3 10.1 10.1 9.4

GDP at factor cost 3.95 6.54 5.51 7.8 9.3 6.8 8.0 8.5

Share of Industry 21.6 25.9 25.7 26.1 28.7 28.1 28.1 27.9

Share of 12.6 15.2 15.2 15.1 16.1 15.8 15.9 15.8

Manufacturing

Source : Central Statistical Organization (CSO)

KBK



Fertilizers

Coal

Crude Oil

*Provisional

280

334 340 320 340 340 335 335

3557.2 3483.6 3772.7

3367.52

3844.9 3850.5

3656.6 3694.1

2010-11*

2010-11*

2003-04

2003-04

2004-05

2004-05

2005-06

2005-06

2006-07

2006-07

2007-08

2007-08

2008-09

2008-09

2009-10

2009-10

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11*

142.65

154.05 155.75 160.95

147.06 143.34

162.21 163.80

PPrroodduuccttiioonn ooff SSeelleecctteedd IInndduussttrriieess

(Lakh Tonnes)

Cement

2009-10*

2461

2002-03 2003-04 2004-05 2005-06 2006-07 2008-09 2009-10

1613

1874

2070

1163 1234

1316

1478

==Table ends==

=Industrial Production= 

There are multiple sources of assessing industrial performance. Most common of
these, however, is the Annual Survey of Industries (ASI). ASI covers the entire
manufacturing sector employing 10 or more workers. The survey is conducted each
year by the National Sample Survey Office (NSSO) and is based on the factory
records. The results of ASI, however, become available with a time lag, but these,
nonetheless, reflect the performance of the organized manufacturing sector. As per
the ASI results, over the long run (1980-81 to 2008-09), output of the organized
manufacturing increased at an annual rate of 15.1 per cent (at current prices). Increase
in the number of factories and employment was at a substantially lower pace. Total
emoluments as per cent to output or cost (value of output-profits) had a negative
growth. Output per unit of labour (total persons engaged) and capital continued to
increase at rates generally aligned to the output growth.

==Table 2 : Characteristics of Organised Manufacturing Sector==

1981-82 1991-92 2001-02 2006-07 2007-08 2008-09 CAGR

Food products 105,037 112,286 128,549 144,710 146,385 155,321 1.5

Fixed Capital (Rs.crores) 34,703 151,902 431,960 715,314 845,132 1,055,966 13.5

Invested Capital (Rs.crores) 53,991 221,234 605,913 1,071.504 1,280,126 1,535,178 13.2

Number of Workers (lakhs) 61.1 62.7 59.6 78.8 82.0 87.8 1.4

Persons Engaged (lakhs) 78.9 83.2 77.5 103.3 104.5 113.3 1.3

Total Emoluments (Rs.crores) 6,778 20,970 51,060 88,751 105,443 129,442 11.5

Value of Output (Rs.crores) 73,630 299,196 962,457 2,408,548 2,775,709 3,272,798 15.1

Net Value Added (Rs.crores) 14,513 54,827 144,302 395,725 481,593 527,766 14.2

Gross Capital Formation 10,061 38,445 73,873 199,330 262,299 261,585 12.8
(Rs.crores)

Profits (Rs.crores) 3,396 9,635 34,884 241,425 297.576 296.991 18.0

Output/Labour 0.9 3.6 12.4 23.3 26.l6 28.9 13.6

Capital Labour 0.7 2.7 7.8 10.4 12.2 13.6 11.7
Emoluments as per cent to 9.2 7.0 5.3 3.7 3.8 4.0 (3.1)
output (per cent)

Emoluments as per cent to 9.6 7.2 5.5 4.1 4.3 4.3 (2.9)
total cost (per cent)

Source : Annual Survey of Industries—Various issues

=Table ends=

For regular tracking of growth, an ''' Index of Industrial Production (IIP) ''' is
compiled on a monthly basis. Since IIP is a fixed weight, fixed base index, it is
revised on a decadal basis to realistically reflect the industrial performance and
capture the structural shifts in this sector. Central Statistical Organisation (CSO)
has revised the base year of IIP from 1993-94 to 2004-05 and the new series was
launched in June 2011. The new series has an enlarged and more representative
basket which better capture the industrial scenario. The weighting diagram for the
new series has also been redrawn in line with the relative importance of the sectors
in GDP and is based on the National Accounts.

The new series of IIP with 2004-05 as its base covers the broad sectors of
industry, viz., mining, manufacturing and electricity with manufacturing sector
further divided into 22 major industry groups. IIP, therefore, is both comprehensive
and timely.

Measured in terms of IIP, industrial growth witnessed an average growth of
8.9 per cent per annum during the last five years. While plunging to 2.5 per cent in
2008-09 from a whopping growth of 15.5 per cent in 2007-08, the industrial sector
has shown a swift recovery from the global slowdown in the last two years by
registering growth rates at 5.3 per cent and 8.2 per cent respectively in 2009-10 and
2010-11.

During 2010-11, the industrial sector exhibited signs of slowdown as the IIP
growth moderated mainly on account of the high base effect and sharp deceleration
in capital and intermediate goods, which could be partly attributed to the moderation
in investment demand. There was a slowdown in growth of almost all sectors except
consumer goods. The continued high growth of consumer durables segment,
however, reflected higher private consumption demand.

To counter the adverse fallout of global slowdown, Government took
appropriate fiscal and monetary measures. Three stimulus packages were announced
in quick succession between December 2008 and February 2009. Total size of fiscal
stimulus packages was 3.5% of GDP. As the crisis intensified, the Reserve Bank of
India, like most Central banks, took a number of conventional and unconventional
measures to augment domestic and foreign exchange liquidity, and sharply reduced
the policy rates.

The growth during 2010-11 at 8.5% reflects a rebound in agriculture and
sustained levels of activity in industry and services. Notwithstanding the signs of
moderation in commodity prices and some declaration in growth, inflation still
remains an area of concern. In the last sixteen months there was unprecedented
policy activism shown by a tenth time hike in policy rates by RBI. As part of the
Liquidity Adjustment Facility (LAF), RBI in its Mid-Quarter Monetary Policy Review
in June 2011 enhanced the repro rate to 7.5 per cent and the reverse repo rate to 6.5
per cent with immediate effect.

==Table 3 : Industrial Performance (average annual growth in per cent)==

IIP at 2-digit level Weights 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

(Apr-
May)

Food product & 72.757 13.1 15.9 12.5 -8.2 -1.4 6.8 11.3
beverages

Tobaco products 15.703 1.0 1.8 -4.4 4.4 -0.6 1.9 1

Textiles 61.636 8.3 7.8 6.6 -3.6 6.1 6.6 -5

Wearing apparel 27.821 14.0 20.3 9.3 -10.2 1.9 3.9 2.4

Luggage, handbags etc. 5,821 -9.1 14.4 5.8 -5.1 1.3 8 0

Wood & Wood products 10.509 6.8 18 17.5 4.9 3.1 -2.2 -10.6

Paper & Paper products 9.991 6.3 4.4 1.4 4.8 2.6 8.5 8

Publishing, printing 10,784 13.7 8 14.2 1.6 -6 11.2 10.7

& reproduction of

recorded media

Coke, refined petroleum 67.153 0.6 11.9 6.2 3.2 -1.3 -0.2 6.9

products & nuclear fuel

Chemical and 100.589 1.0 9.3 7.2 -2.9 5 1.7 5.9

chemical products

Rubber & Plastic 20.247 12.3 6.6 13.4 5.1 17.4 10.4 -3.6

products

Other non-metallic 43.143 7.8 10.9 9.3 3.3 7.8 4 -0.7

mineral products

Basic metals 113.352 15.5 14.7 17.9 1.7 2.1 8.8 13.5

Fabricated metal Pro. 30.848 11.1 19.9 7.8 0.1 10.2 15 16.5

Machinery and 37.630 26.1 19.7 22.6 -7.6 15.8 29.3 -2.8

equipment n.e.c.

Office, accounting & 3,053 45.3 7 6 -9.7 3.8 -5.7 37.8

computing machinery

Electrical machinery 19.804 16.8 12.7 183.5 42.3 -13.5 2.8 -1.6

& apparatus

Radio, TV and 9,894 22.7 155 93.1 20.3 11.3 12.8 1.4

communication

equipment

Medical, precision & 5,668 -4.7 9.9 6.3 7.5 -15.8 6.7 33.9

optical instruments,

watches and clocks

Motor vehicles, trailers 40.643 10.1 25.3 9.5 -8.7 29.8 30.2 23

Other transport 18.250 15.3 15.2 -2.9 3.8 27.7 23.2 19

equipment n.e.c.

Furniture 29.974 16.2 -3.9 18.7 7.4 7.1 -7.4 -4.7

BROAD INDUSTRIAL SECTORS

Mining & Quarrying 141.570 2.3 5.2 4.6 2.6 7.9 5.2 1.3

Manufacturing 755.270 10.3 15 18.4 2.5 4.8 8.9 6

Electricity 103.160 5.2 7.3 6.3 2.7 6.1 5.5 8.4

General Index 1000.00 8.6 12.9 15.5 2.5 5.3 8.2 5.7

Source : Central Statistical Organization (CSO)

==Table ends==

Industrial sector recorded a swift recovery from the crisis. Quarter on quarter
basis, industrial growth recovered from under 1.1% in the quarter of October-
December, 2008 to 14.0 per cent in January-March 2010. In 2010-11, however, growth
moderated and on quarter on quarter basis were 9.6 per cent, 6.8 per cent, 8.6 per
cent, 7.7 per cent, respectively. Overall growth at 8.2 per cent in 2010-11 was still
healthy. Recovery was particularly significant for metal products, machinery and
equipments, transport equipments, chemicals and rubber, petroleum and plastic
products. Recovery remained relatively weak for the traditional sectors of textiles,
leather, beverages, food products and paper industries recovery is being sustained
in the current financial year. In the first two months of 2011-12, overall industrial
growth has been of the order of 5.7 per cent. All the modern sector, machinery and
equipments, transport equipments, metal products, rubber, plastic and petroleum
products have sustained their growth rates.

=INDUSTRIAL INVESTMENT=

==Gross Capital Formation (GCF)==

Industrial sector has been attracting a sizable chunk of domestic capital formation
resulting in an addition to the productive capacities. As per the new series of National
accounts, average annual growth of new investment in industrial sector was 11.8
per cent (2004-10), as against the growth of GDP which averaged 8.6 per cent during
this period. The rate of growth of gross capital formation (GCF) for mining, registered
manufacturing and electricity sector was even higher. There was a decline in the
rate of growth of GCF in 2008-09, which could be considered as an abnormal year
because the global economic meltdown had affected the investor sentiments resulting
in lesser investment and also deferment of investment decisions. The internal
accruals of the corporate sector were also adversely affected. A decline in stock
market indices also affected valuation gains and a combined effect of these factors
led to a decline in GCF in industry.

Table 4 : Gross Capital Formation (GCF) in Industry (Rs.in crores at 2004-05 prices)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 CAGR

Mining 37,322 52,260 60,412 68,470 59,266 96,079 20.8

Manufacturing 2,45,984 3,42,671 3,80,294 5,21,967 3,81,056 4,77,202 14.2

(Registered)

Manufacturing 98,533 62,376 91,929 89,502 36,915 86,431 -2.6

(Unregistered)

Electricity 53,300 64,673 76,366 85,040 95,533 98,908 13.2

Total 4,35,139 5,21,980 6,09,001 7,64,979 5,72,770 7,58,620 11.8

Total GCF 10,11,178 11,83,485 13,65,019 16,06,013 15,42,642 17,31,209 11.4

Share of GCF in 43 44.1 44.6 47.6 37.1 43.8

Source : Central Statistical Organisation (CSO)

==Table ends==

==Investment Intentions==

While GCF indicates actualization of investment, investment intentions indicated
in the Industrial Entrepreneurs Memoranda (IEM) filed are sort of lead indicators
of likely investment flows to industry and of entrepreneurs' perception. The
investment intentions also provide the sectoral preferences of investors and shifts
in these preferences over time. During 2001-2010, overall investment indicated in
the IEMs filed increased at an average annual rate of 38.7 per cent. There was, as
expected, a decline in investment intentions in 2009, but the revival in 2010 well
indicates the optimism in business sentiments and an improvement in entrepreneurs'
perception. Metals, machinery, cement, chemicals and auto sector continue to
dominate as the preferred industries. This is consistent with the growth of industries
as indicated in Table 4.

==Table 5 : Investment indicated in the IEMs Filed (Rs.in crores)==

Sectors 2004 2005 2006 2007 2008 2009 2010 2011 CAGR

(Jan (Per

-May) cent)

Food 16054 40,098 62,845 10,520 15,924 15,637 19663 11535 12.6

Fermentation

industries 2050 2,888 8,008 5,171 8,230 4,566 3139 2921 -6.2

Textiles 8053 21,605 26,325 22,193 10,730 9,200 26,566 11,788 25.1

Wood 14 163 - 105 622 96 122 465 18.2

Paper 1869 5,473 8,199 4,649 5,841 6,037 6264 1023 21.5

Leather 109 209 148 266 106 106 161 97 24.8

Chemicals 17,776 28,350 45,722 34,352 155,756 27,661 56,110 34898 34.6

Rubber 785 1,102 2,403 1,191 2,867 2,118 5819 3113 36.6

Cement 8289 11,800 42,406 76,906 125,948 53,742 101318 53730 40.9

Metals 87,060 101,730 144,128 180,973 364,978 254,285 391805 147316 63.9

Machinery 50425 87,340 165,227 375,276 556,635 503,651 955091 549980 69.1

Transport 1243 2,059 10,688 11,314 24,862 5,048 12290 3913 43.4

Others 16647 25707 48,669 69,583 207,842 95,958 80368 175484 25.3

Fuel 56695 25,432 23,782 35,001 42,225 61,743 73015 5883 6.5

Total 267069 353,956 588,550 827,500 1,522,566 1,039,848 1731731 1002146 38.7

Source : DIPP

==Table ends==

==Foreign Direct Investment (FDI)==

Domestic savings in India have not been able to fully meet the investment
opportunities that this country provides. The ratio of domestic savings to GDP has
generally been lower than the ratio of GCF to GDP. During 2004-10, this gap was 1.5
per cent of GDP. Capital inflows from other countries, particularly of an investment
nature, which adds to the domestic investment, have, therefore, been important.
Equity inflows are more stable and bring in new management practices and
technology together with the investment. To encourage FDI inflows, the FDI policy
has continued to be fine tuned and liberalized progressively allowing FDI in more
industries under the automatic route. Starting from 2000, FDI policy in India are
increasingly reflecting the requirements of the economy and facilitating its integration
with the global economy. In the new policy regime, all the activities have been put
on automatic route on a negative listing basis except those that attract industrial
licencing. Technology collaboration have also been brought under automatic route
and royalty ceilings have been removed.

=Changes in FDI policy=

Significant changes have been made in the FDI policy regime in the recent times to
ensure that India remains increasingly attractive and investor-friendly. Some of the
main changes have been as follows:

==Consolidation of FDI Policy==

For ease of reference, all existing regulations on FDI were integrated into one
consolidated document. The consolidation involved integration of 178 Press Notes,
covering various aspects of FDI policy since 1991, as also other regulations governing
FDI. The document was released as 'Circular 1 of 2010', effective from 1 April, 2010.
The consolidated circular is being issued every six months to keep it updated.

==Rationalisation and Liberalization of FDI Policy==

In order to make the FDI policy more liberal and investor-friendly, further
rationalization and simplification has been carried out since. Accordingly, a number
of clarifications were issued on various subjects, including inter alia the concepts of
'controlled conditions' for FDI in Agriculture/Animal Husbandry etc., 'valueaddition'
in case of mining and mineral separation of Titanium bearing minerals
and introduction of a specific provision for 'downstream investment through internal
accruals'.

Subsequently, significant policy changes were introduced in 'Circular 1 of 2011'
effective from 1.4.2011. These include : (i) flexibility in fixing pricing of convertible
instruments through a formula, rather than upfront fixation (ii) Inclusion of fresh
items for issue of shares against non-cash considerations, including import of capital
goods/machinery/equipment and pre-operative/pre-incorporation expenses
(iii) Removal of the condition of prior approval in case of existing joint ventures/
technical collaborations in the 'same field' (iv) simplification and rationalizations of
guidelines relating to down-stream investments and (v) development and
production of seeds and planting material, without the stipulation of having to do
so under 'controlled conditions'. The next revision of the consolidated Circular on
FDI policy will be issued on 30.9.2011. FDI has also recently been permitted in Limited
Liability Partnerships (LLPs), subject to specified conditions.

==Release of Discussion Papers on various aspects of FDI policy==

With a view to participative and informed policy making, the Department devised
a mechanism for undertaking stakeholder consultations through web-based
discussion papers, on important issues relating to FDI. Five Discussion Papers (DPs),
were released during 2010. These covered FDI in 'Multi-Brand Retail Trading',
'Defence' and 'Limited Liability Partnerships', as also 'approval of foreign/technical
collaborations in case of existing ventures/tie-ups in India' and 'issue of shares for
considerations other than cash'. Of these five, policy action has been completed in
respect of the last three papers, while issues pertaining to RDI in 'Multi-Brand Retail
Trading', and "Defence' are under consideration of Government. A discussion paper
on the 'rationale and relevance of caps' under FDI policy has been released on 23
May, 2011.

==FDI inflows==

There has been a tremendous growth in the FDI inflows to India since 2003-04. FDI
equity inflows have risen nearly thirteen-fold, from US $ 2.19 billion in 2003-04 to
US $ 27.33 in 2008-09 and US $ 25.83 billion in 2009-10. Under international practices
of reporting, i.e. including equity capital, reinvested earnings and intra company
loans, FDI inflows of US $ 197.84 billion was received between April 2000 to April
2011. According to the international practices of reporting, total FDI inflow was
US$ 4.32 billion in 2003-04 which increased to US $ 37.84 billion in 2008-09 but
moderated to US $ 30.38 billion in 2010-11.

While the FDI inflows have somewhat flattened out over the course of the last
three years, the pace of inflows has been stable, including during 2009-10. This is
despite the fact that the UNCTAD World Investment Report, 2010, had noted a fall
of global FDI inflows, from a historic high of 2.099 trillion in 2007 to 1.771 trillion in
2008, (a decline of 16 per cent) and to US$ 1.114 trillion in 2009 (fall by 37% over
2008). The Organisation for Economic Cooperation and Development (OECD), in
its report on investment, released in March, 2010, had also noted a significant
stagnation in the global investment activity due to the global economic crisis.

==Table 6 : Growth FDI inflows ( US $ billion)==

Financial year As per Percentage FDI Equity Percentage

International growth Inflow (DIPP) growth

practices

2003-04 4.32 (-) 14% 2.19 (-) 19%

2004-05 6.05 (+) 40% 3.22 (+) 47%

2005-06 8.96 (+) 48% 5.55 (+)72%

2006-07 22.83 (+) 146% 12.49 (+) 125%

2007-08 (P) 34.84 (+) 53% 24.58 (+) 97%

2008-09 (P) 37.84 (+) 9% 27.33 (+) 11%

2009-10 (P) 37.76* (-)0.2% 25.83 (-)5%

2010-11 30.38 (-)20% 19.43 (-)25%

2011-12 (Apr-May) - - 7.79 -

* As per RBI estimates

==Table ends== 

FDI equity inflows, as a percentage of GDP, grew from 0.37 per cent in 2003-04
to nearly 2.21 per cent in 2008-09. As a percentage of GCF, they grew from 1.35 per
cent to nearly 6.32 per cent during the same period. The 2010 survey of the Japan
Bank for International Cooperation, conducted among Japanese investors, continues
to rank India as the second most promising country for overseas business operations
in the medium term. However, for the long-term, India has been rated as the top
investment destination, with China being rated as the second.

The UNCTAD World Investment Report (WIR) 2010, in its analysis of the global
trends and sustained growth of Foreign Direct Investment (FDI) inflows, has reported
India as the the second most attractive location for FDI for 2010-2012. According to
the WIR 2010 report, the top five most attractive locations for FDI for 2009-11 are
China, India, Brazil, United States and the Russian Federation. In the World
Investment Report, 2009, India had been reported as the third most attractive
destination. For India to maintain its momentum of GDP growth, it is vital to ensure
that the robustness of its FDI inflows is also maintained.

==FDI inflows in the industrial sector==

Manufacturing sector were the first ones to be opened up for FDI inflows as with
the product market reforms, it was considered necessary to invite FDI inflows in
these sectors. The infrastructure and services sector were gradually opened up in
subsequent phases partly because these were for a long time considered to be the
public sector responsibility. The overall equity flow, however, indicate that industrial
sector covering mining, manufacturing and power as of today accounted for nearly
50 per cent of the total equity inflows. FDI has particularly been active in sectors
like machinery, chemicals, auto sector, miscellaneous manufacturing,
telecommunication and power. In case of telecommunication, the FDI is both for
the setting up of production base and also for providing telecommunication services.
In traditional sectors of Indian industry, inflow of FDI has been limited. This may
be partly because of a low technological intensity of these sectors. It may also be
due to the strength of domestic industry and the perception of foreign investors
with regard to these sectors. In some of the sectors, however, the perception appears
to be changing. The shift in FDI perception is apparent for metals, food products,
and paper.

==Table 7 : FDI Inflows - Industries (US$ million)==

1991-2002 2002-07 2007-08 2008-09 2009-10 2010-11 Total Share

Equity (%)

flows

Food products 972.6 392.2 80.7 150.5 348.7 246.9 2191.7 2.8

Fermentation Industries 51.1 216.3 270.1 144.7 112.0 57.7 851.9 1.1

Textiles 249.2 327.2 186 157.4 150.6 129.8 1200/2 1.5

Wood Products 0.1 0.6 0.4 11.3 6.5 1.6 20.4 0.0

Paper 327.2 139 104.2 310.1 86.9 44.0 1011.3 1.3

Leather 43.4 16.8 7.5 3.3 5.1 9.3 85.3 0.1

Chemicals 1810.4 1934.1 582.3 992.5 616.1 734.0 6661.0 8.6

Rubber, plastic and

Petroleum Products

(Including oil exploration)342.1 464.7 1441.9 497.2 280.7 573.6 3617.5 4.6

Non Metallic Minerals 515.8 877.9 143 944.2 43.8 657.3 3182.0 4.1

Metals and Metal products223 548.7 1176.9 960.9 419.9 1098.1 4427.5 5.7

Machinery and

Equipments 5232.8 8360.3 3907.1 5086.5 2592.9 1846.7 19560.2 25.1

Transport Equipments 431.1 1130.8 674.8 1151.7 1214.8 1286.1 5889.3 7.6

Others Manufacturing 2834.2 1184.7 704.3 1566.1 1177.9 1495.3 8962.4 11.5

Mining (including mining

services) 7.8 55.8 458.3 34.4 174.4 79.5 810.4 1.0

Power 1885.8 398.5 1011.2 1070.1 1894.3 1464.4 7724.2 9.9

Telecommunication 2140.4 1505.9 1261.5 2558.4 2539.3 1664.5 11669.9 15.0

Total 17066.9 17553.5 12010.2 15639.3 11672.9 11388.7 77865.0 100

Source : DIPP excludes services and other FDI inflows such as RBI-NRI schemes, Acquisition of shares

and advance inflows

==Table ends== 

=Streamlining & Simplifying the Business Environment=
The Government of India, in partnership with various State Government and
Business Associations, is making concerted efforts to make regulations conducive
for business including establishment of on-line single-windows, adoption of nation
and international best practices, simplification of tax-regime etc.
In addition, the Government has initiated implementation of the e-Biz Project,
a Mission Mode Project under the National e-Governance Project, to provide online
registration, filing payment services to investors and business houses.

In order to harness its potential as an attractive FDI destination, the
Government of India has taken steps for improving infrastructure. Introduction of
Value Added Tax from April 2005 is a major step towards addressing the need of
uniform taxation. The regulatory framework is under periodical review and steps
have been taken to rationalize and simplify, to a substantial extent, procedures
dealing with FDI at the Central level.

=Industrial Employment=
The employment in the manufacturing sector in India seems to be declining over
the years. The last three rounds of NSSO surveys also indicate that share of
employment in industry (mining, manufacturing and electricity) has been declining.
As per NSSO 66th Round Survey the decline its particularly sharp in sectors such as
Textile, Non-metallic minerals & Metal products (Table-8).

==Table 8 : Employment in Industrial sector (in Lakhs)==

2004-05 2007-08 2009-10

Number Total Number Total Number Total

per 1000 Number per 1000 Number per 1000 Number

Employed Employed Employed

Mining 6 27.5 5 23.0 6 27.54

MANUFACTURING GROUPS

Food Processing 12 54.9 11 50.6 12 55.08

Tobacco Products 10 45.8 8 36.8 9 41.31

Textiles 21 96.1 22 101.2 18 82.62

Wearing Apparels 16 73.2 14 64.4 16 73.44

Leather 3 13.7 2 9.2 2 9.18

Wood 11 50.3 8 36.8 8 36.72

Paper 1 4.6 1 4.6 1 4.59

Printing 2 9.2 2 9.2 2 9.18

Chemicals 4 18.3 4 18.4 4 18.36

Rubber 2 9.2 2 9.2 2 9.18

Non metallic minerals 10 45.8 10 46.0 9 41.31

Metals 2 9.2 3 13.8 3 13.77

Metal Products 6 27.5 6 27.6 5 22.95

Machinery & Equipment 3 13.7 3 13.8 3 13.77

Total Manufacturing 117 535.5 115 528.8 110 504.9

Electricity 3 13.7 3 13.8 3 13.77

Total Industry 126 576.7 123 565.6 119 546.21

Source : National Sample Survey Office (NSSO)

==Table ends==  

Entrepreneurs in their IEMs filed with the Ministry of Industry have also been
indicating the number of persons that they are likely to employ. While the data for
2010 indicate a better picture than in 2009, still the number of persons that industry
was expecting employ has not been showing any increase over time. Sectoral
employment intentions numbers, however, are quite revealing. For the cumulative
employment intentions indicated in IEMs 26 per cent were likely to be employed in
textiles, followed by metals and machinery. These three sectors together were
expected to employ around 60 per cent of the total labour forces that the
entrepreneurs proposed to engage. These numbers are only indicative as these were
the intentions and actual realization may differ. But assuming that the proportion
of the IEMs that finally get implemented and persons employed follow a uniform
pattern, the traditional industries still appear to be dominant in so far domestic
IEMs are concerned. Industrial employment, seems to accelerate in 2011 as the first
five months data indicate employment intention of more than 15 lakh persons.

==Table 9 : Number of persons intended to be employed (in numbers)==

Sectors 2005 2006 2007 2008 2009 2010 2011 Share

(Jan- in

May) employ
ment

2001-

2011

(%)

Food products 231,349 241,090 48,761 61,272 64,890 75,515 31,708 10.6

Fermentation 10,125 18,696 12,290 22,800 19,515 7,783 4,812 1.3

industries

Textiles 221,687 1,101,441 189,463 120,771 83,540 227,241 1,132,123 26.2

Wood products 2,902 - 1,727 5,545 266 705 518 0.1

Paper 22,380 23,002 14,520 15,798 13,212 12,761 2,106 2.2

Leather 6,535 9,620 5,308 1,320 1,826 4,229 5,360 0.3

Chemicals 128,759 108,883 161,639 74,974 54,367 89,618 40,232 6.4

Rubber, Plastic 17,950 43,253 16,135 8,251 12,401 17,380 5,864 1.1

Products

Cement 26,656 45,753 185,181 227,211 61,143 68,498 40,194 5.4

Metals and 304,782 158,818 253,992 335,809 242,639 253,725 87,155 15.5

Metal Products

Machinery & 165,896 193,414 271,366 334,467 206,051 322,460 135,096 14.9

Equipment

Transport 10,884 34,354 26,721 79,653 24,628 40,864 11,852 2.0

Others 85,057 113,047 142,594 483,412 159,322 102,148 74,159 12.8

Fuel 35,562 9,079 12,456 22,458 9,485 10,626 3,231 1.1

Total 1,270,524 2,100,450 1,342,153 1,793,741 953,285 1,233,553 1,574,410 100

Source : DIPP

==Table ends== 

=Industrial Pricing=

Manufacturing products have also experienced an increase in the costs and have
attempted to pass on this cost by way of increasing the prices of the products, partially
or fully. While some costs, particularly interest on credit, are common across all
industries, each industry seems to have a differential pricing power. Textile, paper
& paper products, rubber & plastic products, chemicals & metals have been more
successful in passing the cost of production to the consumers. In some of the sectors
particularly wood and wood products, leather, non-metallic minerals and machinery
and machine tools seem to have absorbed part of the increase in the costs.

==Table 10 : Industrial Inflation (average annual per cent change)==

Weight 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

(Apr-

June)

Manufactured Products 64.97 2.4 5.7 4.8 6.2 2.2 5.7 7.2

Food Products 9.97 1.2 5.3 3.5 8.7 13.5 3.7 7.2

Beverages, Tobacco & 1.76 4.7 5.1 6.5 9.5 6.1 7.4 9.1

Tobacco products

Textiles 7.33 -1.1 1.9 0.7 1.6 3.4 12.1 15.8

Wood & Wood products 0.59 5.7 5.8 6.7 9.5 9.6 4.0 4.9

Paper & paper products 2.03 3.6 4.6 3.0 4.2 2.2 5.3 7.0

Leather & Leather Products 0.84 4.3 8.0 3.1 5.5 0.7 6.7 8.7

Rubber & plastic products 2.99 1.9 5.6 4.3 4.5 0.7 6.7 8.7

Chemical & chemical 12.02 3.8 5.0 3.6 4.6 -0.3 5.3 7.1

products

Non-metallic mineral 2.56 3.4 11.6 11.2 2.6 7.9 2.7 3.6

products

Basic metals, alloys 10.75 2.2 9.3 10.3 12.0 -6.1 8.7 8.1

& metal products

Machinery & machine tools 8.93 3.6 6.3 3.7 2.9 0.5 2.8 3.0

Transport equipments 5.21 2.7 2.2 2.5 5.4 3.1 3.0 2.7

& parts

Source : Office of the Economic Adviser, DIPP

==Table ends== 

=INDUSTRIAL INNOVATION: INTELLECTUAL PROPERTY RIGHTS= 

Government has taken multi pronged strategy to develop an Intellectual Property
regime in the country to promote creativity and to develop the culture of respect for
innovations and creativity. These are: Meeting international obligations;
Safeguarding national interests; Modernise administration; and Creating awareness.
The salient achievements in the recent past are as follows:-

(i) All the legislations related to patents, designs, trademarks and geographical
indications have been amended/enacted. These comply with India’s
international obligations under the Agreement on Trade Related Intellectual
Property Rights (TRIPS).

(ii) Trade Mark (Amendment) Bill, 2010:- The Trade Mark (Amendment) Bill,
was passed by the Parliament and assented to by the President on 21.9.2010
and become the Trade Mark (Amendment) Act, 2010. On notification the
Amendment will enable India to accede to the Madrid Protocol. The Madrid
Protocol is a sample, facilitative and cost effective system for registration of
international trade marks. India's membership of the protocol will enable
Indian companies to register their trade marks in Member Countries of the
Protocol through filing a single application in one language and by paying
one time fee in one currency.

(iii) To modernise the IPR infrastructure in the country, a Rs.150 crores modernization
programme for Intellectual Property Offices (IPOs) was implemented during
the 9th and 10th Five Year Plans. A Rs.300 crores scheme is being worked out to
develop a vibrant intellectual property regime in the country. The project also
aims at developing infrastructure to facilitate functioning as an ISA and IPEA
by the Patent Office and also for the Trade Marks Registry and Intellectual
Property Archives at Ahmedabad. The Government has set up a National
Institute of Intellectual Property Management (NIIPM) at Nagpur and it is
expected to be fully functional by next year. The (NIIPM), envisaged as a world
class institution, will undertake wide-ranging activities such as training,
education, research and would also function as an IP think tank.

(iv) IPR Awareness Programmes:- Awareness creation is one of the major planks
of the modernization scheme, as this will educate the stakeholders about the
benefits of registration of their rights as also educate the general public,
particularly the business community, on perils of infringement of IPRs held
by others/dealing in pirated and counterfeit products. These programmes
are also expected to sensitise the enforcement agencies such as the State police
forces, the judiciary, etc.

(v) National Design Policy:- Announced for the first time, this Policy envisages
a key role for design in enhancing the competitiveness of Indian industry. The
focus is on spread of design education, branding of Indian designs and the
establishment of a Design Council. This period witnessed both the expansion
and upgradation of India’s premier design institution i.e. the National Institute
of Design (NID) at Ahmedabad. Intake of students at NID was substantially
increased; new Post Graduate courses were introduced and a new PG campus
at Gandhinagar and a RS.&D centre at Bangaluru were setup.

(vi) Initiatives in the international fora :- India has taken a lead role in the
discussions in the United Nation's specialised agency for intellectual property
rights, namely, the World Intellectual Property Organisation. It played a
proactive role in building consensus for the renewal of the mandate of the
Inter-Governmental Committee (IGC) on Traditional Knowledge (TR), Genetic
Resources (GR) and Traditional Cultural Expressions (TCE) and was successful
in getting the IGC to begin negotiations for an effective international legal
instrument aimed at providing protection to TK, GR and TCEs.

(vii) Increase in IPR applications and IPRs granted : The filing of patent
applications has increased from 10,592 in the year 2001-02 to 34,290 in the
year 2009-10. The grant of patents increased from 1,591 in 2001-02 to 6,430 in
2009-10. During the year 2010-11, 39,400 patent applications have been filed
and 14,535 patent applications have been disposed during this period.
The filing of trade mark applications increased from 90,236 in 2001-02 to
1,41,943 in 2009-10; as against 6,204 registrations in 2001-02, 67490 trade marks
were registered in 2009-10. During the year 2010-11, 1,79,317 trademark applications
have been filed and 1,15,472 trademarks have been registered during this period.
From 2003 to 2011 (till 27th June), 238 GI applications have been filed and 153
Geographical Indications of products have been registered during this period. The
registered products represent a wide variety of goods such as Darjeeling Tea,

Pochampally Ikat and Chanderi Sarees, Mysore Agarbathi, Kullu Shawl, Coorg
Orange, Aranmula Mirror, Kancheepuram Silk, etc.

The filing of applications for Design has increased from 3,350 in 2001-02 to
6,092 in 2009-10; the number of Designs registered has also increased from 2,426 in
2001-02 to 6,025 in 2009-10. During the year 2010-11, 7590 applications for Designs
have been filed and 6506 Designs were registered during this period. From April to
June, 2011, 1738 applications for Designs have been filed and 1797 were registered
during this period.

=PERFORMANCE OF INDUSTRIES=

==Cement Industry==

Cement is one of the most technologically advanced industries in the country. The
industry plays a crucial role in the development of the housing and infrastructure
sector of the economy. The price and distribution control of cement has been removed
since 1989 and the cement industry has been de-licensed in 1991 under the Industrial
(Development & Regulation) Act, 1951. Since then, the Cement industry has
progressed well both in capacity/production and as well as in process technology.
India is producing different varieties of cement like Ordinary Portland Cement
(OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement
(PBFS), Oil Well Cement, White Cement, etc. These different varieties of cement are
produced as per the Bureau of Indian Standard (BIS) specifications and its quality
is comparable with the best in the world. The Indian cement industry has managed
to keep pace with the global technological advancement. The induction of advanced
technology has helped the industry immensely to improve its efficiency by
conserving energy, fuel and by addressing to environmental concerns.

===Capacity and Production===

India is the second largest manufacturer of cement in the world. The modern Indian
cement plants are the State-of-the-art plants and are comparable with the best in
the world. The cement industry comprises 166 large cement plants with an installed
capacity of 282.69 million tonnes and more than 350 operating mini cement plants
with an estimated capacity of 11.10 million tonnes per annum, for a total installed
capacity of 293.79 million tonnes as on 31.03.2011. There are a few large cement
plants owned by the Central and the State Governments.

Cement production during the year 2010-11 (April, 2010 to March, 2011) has
been 215.98 million tonnes registering a growth of 4.31 per cent over the
corresponding period of 2009-10. India exported 4.62 million tonnes of cement and
clinker during April, 2010-March, 2011.

The buoyant demand and improved profitability in this sector are conducive
to the growth of industry. The industry is planning for a capacity addition of
approximately 100 million tonnes during the 11th Five Year Plan.

==Ceramic Industry==

Ceramic Industry in India is more than 50 years old. It comprises ceramic tiles,
sanitaryware and crockery items. Ceramic products are manufactured both in the
large and small scale sector with wide variance in type, size, quality and standard.
India ranks 5th in the world in terms of production of ceramic tiles and produced
391 million sq. meters of ceramic tiles, out of global production of 9000 million sq.
meters during 2010-11. State-of-the-art ceramic goods are being manufactured in
the country and the technology adopted by the Indian ceramic industry is of
international standards.

===Capacity and Production===

There are, at present, 16 units in the organized sector with an installed capacity of
21,00,000 MT. This accounts for 2.5 per cent of world ceremic tile production. With
the growth in the housing sector, the demand of ceremic tiles is expected to increase.
Indian tiles are competitive in the international market. These are exported to East
and West Asian countries. The exports during 2009-10 were worth Rs.259.22 crore.
Sanitaryware is manufactured both in the large and small sector with variations
in type, range, quality and standard. At present the production capacity in the
organised sector is 1,43,000 MT per annum and in small scale sector, there are over
210 Units with a capacity of 53,000 MT per annum. The industry has an annual
turnover of Rs.500-600 crores approximately. This industry has been growing by
about 5 per cent per annum during the last two years. There is significant export
potential for sanitaryware. These are presently being exported to East and West
Africa, Europe and Canada. The export were of the order of Rs.157.76 crores during
2009-10.

Potteryware signifying crockery and tableware are produced both in the large
scale and the small scale sector. There are 16 units in the organised sector with a
total installed capacity of 43,000 MT per annum. In the small scale sector, there are
over 1,400 plants with a capacity of 3,0,000 MT per annum. A majority of the
production of ceramics tableware is of bone china and stoneware. This industry in
India is highly-labour intensive while in USA, UK, Japan and other countries there
is full automation. The export of potteryware during 2009-10 were of the order of `
53.79 crores.

==Granite and Marble Industry==

India is one of major producer and exporter of granite and other stones. India has
vast resources of granite with about 120 varieties of different colours and textures.
Most of the units are producing products of granite tiles, building slabs and
monuments simultaneously. Eighty to ninety per cent of the total production is
exported. The export of granite during 2009-10 was about Rs.5050.80 crores. Most of
the units in the marble industry are in the small scale sector. The export of marble
and its products during 2009-10 was about Rs.188.90 crores.

==Leather Industry==

Leather Industry plays an important role in Indian economy in view of its substantial
overall output, export earnings and employment potential. The industry is the tenth
largest amongst the manufacturing sector of India and is one of the top ten export
earners for the country. The leather sector provides employment to about 2.5 million
people, mainly from the weaker sections/minorities, of which about 30 per cent are
women. The sector has very strong linkage to job creation in rural economy and on
social equity. The sector is dominated by small and medium enterprises with about
94 per cent in this category. The export of leather and leather products from India
has undergone a structural change during the last two decades. India was
traditionally an exporter of raw hides and skins and semi-processed leather.
However, in the last two decades the share of leather footwear, leather garments,
leather goods, footwear components and several other articles of leather in the total
exports has increased substantially as a result of the Government’s policy to
encourage export of value added leather products.

==Rubber Goods Industry==

The Rubber Goods Industry excluding tyre and tubes, consists of about 4400 small
and tiny units generating about 4.5 million direct jobs. The rubber industry
manufactures a wide range of products like conveyor belts, rubber hoses, surgical
gloves, balloons and rubber moulded goods, etc. The main raw materials used by
the Rubber Goods Industry are natural rubber, synthetic rubber, Styrene Butadiene
Rubber (SBR), Poly Butadiene Rubber (PBR) and Carbon Black, etc. The Rubber
Goods Industry had an annual turnover of Rs.18,000 crores in 2010-11 against `
17,000 crores in 2009-10. The estimated turnover of the industry for the year 2011-
12 is Rs.20000.00 crores. The industry exported goods worth Rs.3850.00 crores in 2010-
11 as against Rs.3500.00 crores in 2009-10. The rubber goods worth Rs.4500.00 crores is
estimated to be exported in 2011-12.

==Tyre Industry==

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

All requirements of tyres for existing and new vehicles are being met by Indian
tyre industries. India is one of the few countries worldwide which has attained self
sufficiently in manufacturing a wide range of tyres in all applications. The Indian
tyre industry has 39 manufacturing companies with 60 tyre manufacturing plants
which produce all categories of tyres. The annual tyre production in 2010-11 was
1191.96 lakh as against 971.07 lakh in 2009-10. the annual turnover of the Tyre
industry is about Rs.30,000 crore. The Indian tyre industry has done remarkably well
on the export front also. From an export earnings of Rs.183.00 crores in 1990-91, the
export of tyres has risen to Rs.3700.00 crores during 2010-11. Indian tyre companies
have a consistent track record of exporting to over 75 countries worldwide.

==Cigarette Industry==

Cigarette is an item falling under the First Schedule to be I (D&RS.) Act, 1951 and
requires an Industrial Licence. The Cigarette Industry is one of the oldest industries
in India. It is an important agro-based industry. It is a labour intensive industry and
provides livelihood directly and indirectly.

The production of cigarettes during 2009-10 was 90,217 million nos. During
the current year 2010-11 the production has been 101266 million nos. The export
and import of tobacco and manufactured tobacco substitutes during 2009-10 was
worth Rs.4344.40 crores and 116.48 crores respectively. The same figures for export
and import during 2010-11 (April-September) was worth Rs.1994.08 crores and `
52.27 crores respectively.

==Glass Industry==

Glass Industry is a delicenced industry. Glass Industry covers items such as flat
glass (including sheet, float figured, wired, safety, mirror glass) hollowware
containers, vacuum flasks, refills, laboratory glassware and other items such as
bangles, beads,, pearls etc. There has been growing acceptability of the Indian flat
glass products in the global market. The Indian manufactures had explored new
markets. There is considerable scope in demand for glass fibre products particularly
due to growth in petrochemical sector and allied products.

The production of Bottle/Bottle glassware during 2009-10 was 8,96,636 tonnes,
and during 2010-11 has been 10,67,372 tonnes. The export & import of glass glassware
during 2009-10 was worth Rs.888.55 and Rs.1342.08 crores respectively. The export &
import of Float Glass/Sheets during the same period was worth Rs.126.78 crores
and Rs.222.40 crores respectively. The export & import of Float Glass/Sheets during
2010-11 (April-September) was worth Rs.46.86 crores and Rs.162.68 crores respectively.
Paints and Allied Products Industry

The Paints and Allied Industry has been exempted from compulsory licensing, and
comprises two sectors, viz. organised sector and small scale sector. The Paints and
Allied Products Industry mainly consists of paints, enamels, varnishes, pigments,
printing inks, synthetic resins, etc. These play a vital role in the economy by way of
protecting national assets from corrosion.

The production of paints, enamels & varnishes during 2009-10 was 7,55,375
tonnes. During the current year 2010-11 the production has been 7,84,712 tonnes.
The export import of paints & allied products during 2009-10 was worth Rs.6527.68
crores and Rs.4066.19 crores respectively. The same figures for 2010-2011 (April-
September) were worth Rs.3579.62 crores and Rs.2434.29 crores respectively.

==Photo Goods Industry==

Photo Goods Manufacturing Industry is a de-licensed industry. Photo goods
comprise black and white, colour products, medical imaging films and special photo
sensitive goods. The industry caters to mass consumption in health sector, in the
amateur and professional cinema, camera films and graphic art films for education
and defense requirements. Photo goods are also required for the aerial survey
purposes.

The production of Photo Films/Roll film during 2009-10 was Rs.43.04 crores
and production during 2010-11 has been Rs.30.26 crores. The export & import of
photographic or cinematographic goods during 2009-10 was worth Rs.144.42 crores
and Rs.1328.04 crores respectively. The same figures for export & import during
2010-11 were worth Rs.69.93 crores and Rs.602.96 crores respectively.

==Salt Industry==

India continues to hold 3rd position in the production of salt in the world after China
and US with an average annual production of about 200 lakh tones and second
largest producer of iodised salt (60 lakh tones) next to China. From an era of short
fall and import at the time of Independence, the country has made spectacular
progress in the production of salt due to the pragmatic policies of the Government.
In a very short period of time, sufficiency was achieved (in 1953) and made a dent
in the export market. Since then the country has never resorted to imports. India
has exported about 38.68 lakh tones salt during 2010-11 values at about Rs.500 crores,
which is an all time record.

==Explosives==

There are 71 factories licensed under Explosives Rules in the medium and small
Scale Sector, engaged in the production of explosives, having an installed capacity
of 2,117 MT of Gunpowder, 18,90,931 MT of High Explosives, 246 million meters of
Safety Fuse, 543 million meters of Detonating Fuse, 906 Million numbers of
detonators, 2911 MT of Booster and 8457 MT of PETN for which inspection are
undertaken regularly.

==Paper Industry==

India has emerged as one of the fastest growing paper market in the world. The key
social objective of the Government namely eradication of illiteracy through Right
to Education Act, (RTE) supported by Sarva Shiksha Abhiyan, works as a major
demand driver for the paper industry. The Indian paper industry plays a pivotal
role in overall industrial growth and provides a vital vehicle needed to propel the
knowledge based economy of the country in the new millennium. The surging
economic growth and a GDP of 8.5 per cent (April to June 2011) of the country has
facilitated to maintain in an overall average rate of growth of about 6 per cent for
the Indian Paper Industry against the world average of about 3 per cent. Now with
the recessional trends almost over, many paper units have announced further
expansions. Recently International Paper, a well known pulp and paper
multinational has taken over Andhra Pradesh Paper Mills Ltd., Rajahmundry, at a
cost of US$ 319 million.

==Paper and Paperboard Segment==
India is self sufficient in most grades of paper and paper boards. Traditionally, only
certain specialty papers have been imported to meet the local requirements. The
domestic production of Paper and Paper Board was 70.07 lakh tones for the year
2009-10 and it is estimated to be 74.10 lakh tones in 2010-11. During the first four
years of the 11th Five (2007-12) year plan, 1.16 million tones of capacity was added
to the paper and paper board segment with an investment of around Rs.8000 crores.
Another 0.5 million tones of capacity addition with an investment of Rs.4000 crores
has been announced.
==Newsprint Segment==
There are at present 112 paper mills listed in the Schedule of the Newsprint Control
Order, 2004 with installed capacity of 16.90 lakh tones, which produce newsprint
conforming to BIS standards for supply to newspaper publishers. These mills avail
exemption of excise duty. Out of 112 mills, there are two Central Public Sector Units
and two State Public Sector units which manufacture newsprint paper. The domestic
production of newsprint for the year 2009-10 was 9.5 lakh tones and is estimated to
be 9.7 lakh tones for the year 2011-12.
==Light Electrical Industry Sector===
The Light Electrical Industry is a diverse industry having a number of distinct
products and sub-products. It includes goods like Electrical Wires and Cables
industry, Transmission Tower, Cranes, Lifts and Escalators, Refrigerators, Washing
Machine, Air Conditioners, Storage Batteries. Dry Cell Batteries, Electrical Lamps
and Tubes et. A brief of this industry is given below:-
==Electrical wires and cables Industry==
Wires and cables, be they made of fibre, optics, iron or nonferrous (copper, zinc,
aluminum), play a decisive role in almost all areas of industrial and daily life.
Electrical wires and cable industry is one of the earliest industries established in the
country in the field of electrical products.

A wide range of wires and cables are manufactured in the country which
includes communication cables such as jelly filled telephone cables, optic fibre cables,
local area network cables, switchboard cables, co-axial cables, VSAT cables, electrical
cables such as electrical wires, winding wires, automotive/battery cables, UPS cables,
flexible wires, low voltage power cables and EHT power cables. The power cable
industry may be mainly divided into four segments viz., house wiring (up to 440V),
LT (1.1 to 3.3kV), HT (11 to 66kV), EHV (66kV and above)adjust.

Well-established R.&D facilities are key factors for development of this industry.
In India, renowned laboratories like Central Power Research Institute (CPRI),
Electrical Research and Development Association (ERDA) are well equipped with
the most advanced product testing facilities to meet international standards. Most
of the major electrical and electronics manufacturing companies in India have a
strong Rand D base.

With infrastructure receiving priority attention from the Government of India,
construction, power and telecom sector are fast developing. This will give a boost
to wire and cable industries in near future. In 2009-10, the non-SSI sector have
reported production of insulated cable and wires of all kinds—96.50 lakh core kms
and in the year 2010-11 the production was reported at 110.20 lakh Core kms. India
exported wires and cables (HS code. 7413 and 8544) of value around Rs.1636.83 crores
in 2009-10 against import of around Rs.3276.80 crores during the same period. During
the year 2010-2011 (April-Sept.) the export was around Rs.860.07 crores against import
of Rs.1573.80 crores during the same period. The industry is de-licensed and eligible
for automatic approval for Foreign Direct Investment up to 100%.
==Transmission Towers==
Transmission towers support the high voltage transmission lines which carry
electricity over long distance. These lines typically feed into substation so that the
electrical voltage can be reduced to a level that can subsequently be used by the
customers. Keeping pace with growth of industries in the country and also spurt in
domestic demand for power, the electrical energy sector is growing at a rapid pace.
There is an increasing shift in India to have larger power stations, particularly super
thermal power stations. Consequently while there would be fewer but larger powers
generating stations, the demand for transmission of energy would grow substantially.
The transmission network of an electrical power utility constitutes a critical part of
the whole power system. The move to integrate India's transmission networks
through a national grid of inter-regional transmission lines will facilitate transfer of
power from surplus regions to deficit regions.

The country has sufficient capacity to cater to the demands arising in the
country and also for exports. The industry has facilities for testing transmission
towers up to 1000 KV with the objective of catering to future growth of transmission
systems in the country as well as to export demand. India imported transmission
towers (HS Code 730820) of the value of Rs.133.48 crores in 2009-10, against an export
of Rs.915.23 crores during the same period. During the year 2010-11 (April-Sept.) the
import was Rs.32.74 crores against export of Rs.277.31 crores. The industry is de-licensed
and eligible for automatic approval for Foreign Direct Investment without any
restriction.
==Cranes==
Cranes and hoists are an important category of material handling equipment
required by almost all sectors across the industry. Wide range of cranes are
manufactured in the country include Electric Overhead Travelling (EOT) cranes,
mobile cranes, ladle cranes, hydraulic decks, crab cranes, floating cranes, controller
cranes, etc. There is a good potential for growth of this sector in view of increased
industrial activities in various fields as well as construction industry.
In 2009-10, non-SSI sector has reported production of 18467 Tonnes of cranes
and in the year 2010-11 the production of cranes was reported at 20377 tonnes.
India imported cranes (HS Code No. 8426) of value around Rs.2279.56 crores in
2009-10 against export of around Rs.208.76 crores in the same period. During the
year 2010-11 (April-Sept.) the import was Rs.1309.97 crores against export of Rs.69.86
crores. Industry is de-licensed and eligible for automatic approval for Foreign Direct
Investment up to 100%.
==Lifts and Escalators==
As cities grow vertically, lifts and escalators become the corner stone to support this
development and the life line for the buildings that constitute this development.
Rapid urbanization and robust activity in the construction industry and
corporatization of the real estate sector has led to a healthy growth of this industry.
The use of lifts and escalators is increasing rapidly due to substantial investments
in construction of multi-storied housing complexes, large malls and supermarkets
of international standards, modernization of airports and railway stations apart
from industrial sectors.

A wide range of lifts and escalators are manufactured in India. These include
single speed, double speed, gearless, hydraulic, servo and Variable Voltage Variable
frequency (VVVF) elevators. The industry has experienced healthy growth during
the recent years. The production of lifts in the year 2008-09 was reported to be 8476
numbers and in the year 2010-11 the production was reported at 9220 numbers.
India imported lifts, escalators, conveyers etc. (HS Code No. 8428) of value around
Rs.132.44 crores during the same period. During the year 2010-11 (April-Sept). the
import was Rs.745.13 crores against export of Rs.62.54 crores. The industry is delicensed
and eligible for automatic approval for Foreign Direct Investment up to
100%.
==Refrigerators==
In India, refrigerators have the highest aspirational value of all consumer durables
with the exception of television. This accounts for the high growth rate of refrigerator
market. The refrigerator industry has become highly competitive as a number of
brands have entered the market and the consumers have wide choices. Despite the
fact that refrigerators have immense utility to housewives and provide a solution to
avoid food wastage, the penetration level is still below 15 per cent. There are two
basic designs adopted in refrigerators presently being manufactured in the country.
These are commonly referred to as direct Cool (DC) and Frost Free (FF) Refrigerators.
There has been gradual consumer preference shift towards frost free segment. In
rural areas, where power cuts are frequent, people still prefer the direct cool
refrigerators. Increasing number of dual income house holds are shifting the demand
from the conventional 180 L refrigerators to the larger 220L and more capacity
refrigerators with double doors.

Quality products with superior technology have helped the industry to achieve
higher growth in terms of volume and also higher realization in value terms. In
2009-10, the units in non-SSI sector have reported production of 9578.32 thousand
numbers of refrigerators and in the years 2010-11 the production was reported at
10574.43 thousand numbers. India exported refrigerators (HS Code 8418) valued
around Rs.797.89 crores in 2009-10 against import of around Rs.1102.28 crores during
the same period. During the year 2010-11 (April-Sept.) against export of Rs.360.83
crores, import was Rs.706.05 crores. The industry is delicensed and eligible for
automatic approval for Foreign Direct Investment up to 100%.
==Washing Machines==
During the last few years, in the consumer durable sector, the market for washing
machine has grown quite fast. The washing machine market in India can be divided
into semi-automatic and fully-automatic. The semi-automatic segment is more
popular than the fully-automatic segment. However, with rising disposable incomes
and higher aspirations, there is a gradual shift towards higher capacity washing
machines and also towards fully-automatic washing machines. Manufacturers,
therefore, have started paying more attention to this segment and are introducing
more features in their products. Controls are changing from purely mechanical to
fully electronic as micro-controllers are incorporated into the designs while providing
intelligence, microcontrollers boost reliability, drive down costs and improve energy
efficiency. Washing machines can use as many as three microcontrollers which adds
intelligence for the increased functionality and user control. Energy efficiency is
realized using microcontrollers for controlling the motor, reducing noise and
minimizing vibration.

In 2009-10, the non-SSI sector has reported production of 29.62 lakh numbers
of washing machines and in the years 2010-11 the production was reported at 29.36
lakh numbers. India exported washing machines (HS Code 8450) of value around
Rs.25.29 crores in 2009-10 against import of around Rs.306.20 crores during the same
period. During the year 2010-11 (April-Sept) against the export of Rs.14.69 crore,
import was Rs.349.75 crore. The industry is de-licensed and eligible for automatic
approval for Foreign Direct Investment without any restriction.
==Air  Conditioners==
Air Conditioners are no longer perceived as luxury products but are treated as
necessity in changed socio-economic environment with changed life style. The airconditioners
market can be classified into three segments: window AC, split AC
and central AC. The spilt ACs are gaining popularity due to limitation of space and
increases in number of people living in flats in multi-storied complexes and also
due to less noise. With a perceptible increase in the living standards of the Indian
middle class, there has been tremendous shift in demand of the air conditioners
from non-branded assembled air conditioners to branded products. Bureau of Energy
Efficiency (BEE), a statutory body under the Ministry of Power has introduced energy
efficiency based star rating for air-conditioners to help consumers buy the energy
efficient products.

The market for AC has grown substantially during the last few years. In 2009-
10, the non-SSI sector reported production of 12.52 lakh numbers of air conditioners
and in the year 2010-11 the production was reported at 19.24 lakhs. During 2009-10
India exported air conditioners (HS Code 8415) valued at around Rs.301.93 crores
against import of Rs.1985.43 crores during the same period. During the year 2010-11
(April-Sept.) against the export of Rs.143.37 crore, import was Rs.1771.85 crores. The
industry is de-licensed and eligible for automatic approval for Foreign Direct
Investment up to 100 per cent.
==Lead Acid Storage Batteries==
Lead Acid Batteries are accumulators of current and power which is discharged
over a period of time. They are used in vehicles and also for various industrial uses
such as for back up power for UPS application, control rooms, power stations,
telecommunications etc. In addition, it is also used for emergency lights for houses,
telephone systems, power tools, as power source for mining and material handling
equipments, etc. A new application of the product has emerged today in electric
vehicles. The average life of the battery is approximately 2 years hence these batteries
will be needed throughout the life of the vehicle or the machinery in use. This
indicates that ready market of the product will always exist.

With the phenomenal growth of automobile industries, the demand of such
batteries is also increasing at a very fast pace. Although there are few large scale
manufactures of the product dominating in India, there are large number of very
small scale units manufacturing the product in a most unorganized manner. The
product manufactured by them normally does not qualify the required standards
as specified by BIS. In order to ensure safe disposal of lead acid batteries, Ministry
of Environment and forest has issued a notification Batteries (Management and
Handling) Rules, 2001 under Environment (Protection) Act 1986.

The non-SSI sector has reported production of 509.30 lakh numbers of Lead
Acid Batteries during 2009-10 and in the year 2010-11 the production was reported
at 534.86 lakh numbers. During 2009-10, export of Lead Acid Batteries (HS code
8507) was approx. Rs.442.39 crores against import of Rs.1304.70 crore. During the year
2010-11 (April-Sept.) against the export of Rs.256.19 crores, import was Rs.749.38
crores. The Industry is de-licensed and eligible for automatic approval for Foreign
Direct Investment without any restriction.
==Dry cell Batteries==
Dry cell batteries are one of the most commonly used items. These are the oldest
type of batteries still being used. Performance of dry cell batteries has undergone
progressive improvements through technological developments. New types of dry
cell batteries with longer shelf life and greater dependability and also rechargeable
cells have come up. Leak proof dry cells are used in expensive electronic/auto
equipment and toys. Nickel cadmium batteries and other rechargeable batteries are
manufactured in the country to meet the requirement of defence, telecommunications
and electronics. Though the usage of high drain applications is yet to pick up in the
country, the growing popularity of cellular phones, laptops and imported toys could
open the market for a new range of batteries that are not produced at present.
Contrary to the global scene, alkaline batteries account for less than 2 per cent of
India’s total battery market. In the developed countries, alkaline batteries constitute
over 90 per cent of primary battery market. The huge price premium vis-s-vis the
zinc variety has inhibited the widespread usage of alkaline batteries.

The production of dry cells in the non-SSI sector in 2009-10 was reported to be
2053.74 million numbers. In the year 2010-11 the production of dry cell batteries
was reported at 2007.84 million numbers. During 2009-10 there was export valued
at Rs.294.74 crores against import of Rs.976.91 crores of dry cell batteries (HS Code
8506). During the year 2010-11 (April-Sept.) against the export of Rs.308.58 crores,
import was Rs.235.89 crores. The industry is delicensed and eligible for automatic
approval for Foreign Direct Investment up to 100%.
==Electrical Lamps and Tubes==
The emphasis on the power sector and its phenomenal growth and distribution
laid the foundations for the lighting industry in India. Electric Lighting Industry is
well developed in the country. Wide range of lamps and tubes are manufactured in
the country which include general lighting service lamps such as incandescent bulbs,
halogen lamps, gas discharge lamps such as fluorescent tube light, compact
fluorescent lamp, high pressure mercury vapour lamps, metal halide lamps, low
pressure and high pressure sodium vapour lamps and variety of special lamps. The
higher energy coast have led to the development of energy efficient lamps consuming
less power and giving output as close to daylight. Compact Fluorescent Lamps
(CFL) which consumes about 20 per cent of the electricity for the same light output
and last up to 8 times longer than the GLS are getting more popular. 

Compact
fluorescent Lamps having power factor of 0.85 are being manufactured in the country.
Today, there has been effective widening of locally produced range of lamps
along with serious advent of electronics in lighting, thereby supplying better, more
efficient and cheaper lighting systems with improved aesthetics. The future of the
industry envisages immense prospects of growth and development for
technologically advanced and cost effective organization. India imported Electric
Lamps and Tubes (HS code-9405) of value around Rs.581.67 crores in 2009-10 against
export of Rs.294.66 crores during the same period. During the year 2010-11 (April-
Sept.) the import was Rs.398.28 crores against export of Rs.186.55 crores.

The growth of the industry has been substantial during the last few years. The
production of GLS lamps in the non-SSI sector in 2009-10 was reported as 443.05
million numbers whereas the production of fluorescent tube in the same period
was 242.36 million numbers. During the year 2010-11 the production of GLS lamps
and fluorescent tube was reported at 397.99 million numbers and 242.16 million
numbers respectively. The industry is delicensed and eligible for automatic approval
for Foreign Direct Investment up to 100%.
==Light Engineering Industry Sector==
The Light Engineering Industry is a diverse industry with a number of distinct
sector. This industry includes mother of all industries like castings and forgings to
the highly sophisticated micro-processors-based process control equipment and
diagnostic medical instruments. This group also includes industries like bearings,
steel pipes and tubes, fasteners, etc. The products covered under the engineering
industry are largely used as input to the capital goods industry. Hence the demand
of this sector in general depends on the demand of the capital goods industry.
==Roller Bearing Industry==
Roller bearings are essential components in the rotating parts of virtually all machines
such as automobiles, electric motors, diesel engines, industrial machinery & machine
tools. etc. Bearings are used in diversified fields from simple electric fan to complex
space rocket. Hence, the product range is vast and diversified. The indigenous
manufacturers are manufacturing bearings of quality and precision at par with world
renowned manufacturers in the diversified range of general purpose bearings where
the demand is large to justify indigenous production on economic consideration.
Bearings, generally used for special applications, requiring high technology and/
or required in low volumes are still being imported. There is considerable scope for
development of bearings of smaller sizes and lighter weight with improved
performance in harsh operating conditions like higher temperature or low
temperature.

Automobile industry accounts for bulk of the total demand of this industry
with estimated share of 35 per cent, electrical industry share is 12 per cent, after
market (replacement) share is 40 per cent and the remaining 13 per cent consumption
is by other industries. As large number of world renowned automobile companies
have already set up units and some are planning to set up units in India, the demand
for bearings is going to increase in coming years.

The approximate export and import figures of the ball & roller bearings (HS
code 84.82) for the year 2009-10 are Rs.802.66 crores and Rs.3133.07 crore respectively.
During the year 2010-11 (April-Sept.) the import was Rs.1949.78 crores against export
of Rs.562.91 crores. In the year 2009-10 the production was reported at 3441.84 lakh
numbers and during the year 2010-11 the production was reported 4035.00 lakhs
number. The bearing industry is delicensed and is eligible for 100% FDI under
automatic route.
==Ferrous Castings==
Ferrous castings are pivotal to the growth and development of engineering industries
since these constitute essential intermediates for automobiles, industrial machinery,
power, plants, chemical and fertilizer plants etc. Casting industry is the mother of
all industries, as it impacts practically every other industry. Indian Foundry Industry
is the fifth largest in the world. This industry is now well established in the country
and is spread across a wide spectrum consisting of large, medium, small and tiny
sector. A peculiarity of the foundry industry in India is its geographical clustering.
Typically, each foundry cluster is known for catering to some specific end use
markets. For example, the Coimbatore cluster is famous for pump sets castings, the
Kolhapur and Belagaun cluster for automotive castings, Rajkot cluster for diesel
engine castings and Batala and Jalandhar cluster for machinery parts and agricultural
implements.

Advanced countries like USA, Japan, Germany are unlikely to add much
capacity due to stringent pollution control norms there. India can thus have a
dominant presence in this field and can become an important casting supplier to
the world. Most of the industries except large cement plants generally require
coatings within the weight range of 5 kgs. to 4 tonnes. Requirement of steel castings
for large plants is in the range of 20 tonnes to 80 tonnes a piece. The Indian industry,
because of its technological strength in the field has advantage over other developing
countries in exports. This is evident from current trend for increase in outsourcing
by international manufacturers of engineering products from India, Considering
the wide range of engineering applications of these castings and high potential for
exports, there is considerable scope for establishing additional capacity particularly
for high end applications.

The approximate export and import figures of the casting industry (HS code
7325) for the year 2009-10 are Rs.2110.37 crores and Rs.214.09 crores respectively and
in the year 2010-11 (April-Sept.) the import was Rs.149.07 crores against export of
Rs.1395.95 crores. The production of steel castings and C.I. castings for the year 2009-
10 was reported at 596812 tonnes and during the year 2010-11 the production was
reported 656432.44 tonnes. The industry is de-licenced and is eligible for automatic
approval up to 100% Foreign Direct Investment.
==Medical and Surgical Instruments==
The present day healthcare has become completely dependent on electro medical
instruments and these have become indispensable tools for medical professionals
mainly for diagnosis therapy, and patient monitoring and healthcare. Medical and
surgical equipment industry have been playing a critical role in the health care
delivery system. Medical equipment includes all types of instruments and appliances
used in medical, surgical, dental including electro medical apparatus, X-ray machines
as well as physiotherapy equipments and orthopedic appliances. During the last 20
years or so with the increased awareness for health, the demand for medical/surgical
instruments has gone up substantially. This has accelerated the growth in indigenous
production as well as imports. Indigenous manufacturers are currently in a position
to manufacture wide variety of electro medical equipment such as electro
cardiograph (ECG) machine, X-ray scanner, CT scanners, short wave physiotherapy
unit, electro surgical units, blood chemistry analyser etc. However, sophisticated
instruments such as nuclear magnetic resonance (NMR) scanners, multi channel
monitors etc. are not currently manufactured in the country.

Most of the units manufacturing medical equipments are in SSI sector. The
production for the year 2009-10 in the non-SSI sector is reported to be Rs.24929.45
lakh and during the year 2010-11 the production was reported at Rs.26062.71 lakh.
==Process Control Instrument Industry==
Process control instruments and systems cover wide range of instruments and
systems required for monitoring and measurement of physical, chemical and
biological properties. They are used for measurement and control process variables
like pressure, temperature, humidity, liquid level, flow, specific gravity, chemical
composition including pH and many forms of spectrometry and spectrophotometry.
The process control instruments have become an integral part of the modern
industrial activity. This industry is a key industry which provides tools for
automation. Their importance is significant in high cost large and sophisticated
process industries like fertilizer, steel, power plant, refineries, petrochemicals, cement
and other process industries.

Transfer of technology has been the major foundation of indigenous
development. The technology tie-ups with internationally reputed manufacturers
have brought in technological breakthrough in various areas of industry. Today it
provides open control systems & smart control devices. Present technology is
microprocessor based centralised control system. Future technology is for decrease
in the sensing and response time of the equipment and more & more automation
control i.e. without manual interference. The demand for this sector is basically a
derived demand and depends largely on progress on implementation of various
projects such as fertilizer, steel, power plant, refineries, petrochemicals, cement etc.

The production for the year 2009-10 in the non-SSI sector is reported to be
Rs.262.49 crores and in the years 2010-11 the production was reported at Rs.414.31
crores. In the year 2009-10, there was export of process control instruments (HS
code 9032) worth Rs.270.65 crores against import of around Rs.1824.23 crores. During
the year 2010-11 (April-Sept.) against the export of Rs.153.34 crore, import was `
842.64 crores. The industry is delicenced and 100% Foreign Direct Investment is
allowed in this sector under automatic route.
==Seamless Steel Pipes & Tubes==
Seamless steel pipes and tubes come in all kinds of sizes including thin, small, precise,
slender and other special pipes and are used in steam boilers and pipelines,
installation with high and super critical steam conditions. These pipes and tubes
are manufactured by commercial electric furnace, bearing consumable and electrode
vacuum melted quality steel. This process of manufacture imports strength and
durability to the pipes and thus can be used for corrosion—resisting applications.
Seamless steel comes in finishes such as hot rolled cold drawn, turned, roto-rolled,
etc. It is involved in the applications for aircraft, missile and anti friction bearing,
ordinance, etc. Ultra high strength and corrosion-resistant properties make these
perfect for oil & gas industry, chemical industry and automobile industry.

Oil sector accounts for around 60% of total requirement of seamless pipes.
Bearings and boiler sector contribute around 30% of demand. The Industry is able
to manufacture tubes up to 14" outer diameter. With upcoming substantial growth
in the power sector and increase in demand of bearings from automobile sectors,
the demand pattern may change in favour of these two sectors.

The approximate export and import figures of the Seamless Steel pipes & tubes
industry (HS code 7304) for the year 2009-10 were Rs.1402.96 crores. and Rs.4279.83
crores respectively. During the year 2010-11 (April-Sept.) the import was Rs.2154.47
crore against export of Rs.818.25 crores. The seamless steel pipes and tubes industry
is delicensed and upto 100% foreign equity is allowed for the manufacture of this
item under automatic route.

==Electrical Resistance Welded (ERW) steel Pipes and Tubes==
Based on the end-user customers requirement, ERW steel pipes and tubes are
available in various qualities, wall thickness and diameters of the finished pipes.
While manufacturing ERW steel pipes only high quality continuous cast, fully
kilned, control rolled, fine grain, low-carbon, steel is used. High performance ERW
steel pipes and tubing possess high corrosion resistance, high deformability, high
strength and high toughness. These pipes are used in fencing, lining pipes, oil country
tubular, scaffolding, water and gas transportation, structural and engineering
purpose etc. There has been tremendous increase in the production of ERW steel
pipes due to higher demand oil and gas industry, infrastructure and automobile
uses. There are large numbers of units in the SSI Sector. There is adequate capacity
for the manufacture of these type of pipes and tubes.

The industry is de-licenced and is eligible for automatic approval up to 100%
=Foreign Direct Investmen=
==Submerged-Arc Welded (SAW) pipes==
There are two types of saw pipes namely longitudinal and helical welded SAW
pipes. Longitudinal SAW pipes are preferred where thickness of pipe is more than
25mm and in high pressure gas pipe line. Helical welded SAW pipes are used for
low pressure applications. The cost of helical SAW pipes is less than longitudinal
pipes. There is huge demand of SAW pipes in the country due to transportation of
oil and gas and transmission of water.

The approximate export and import figures of the SAW pipes Industry, (HS
code 7305) for the year 2009-10 were   Rs.4672.10 crores and   Rs.188.28 crores
respectively. During the year 2010-11 (April-Sept.) the import was  Rs.139.18 crore
against export of  Rs.5364.02 crores. This industry has very good export potential.
The industry is delicensed and upto 100 per cent foreign equity is allowed for the
manufacture of this item under automatic route.
==Industrial Fasteners==
The fastener industry in India may be classified into two segments: high tensile and
mild steel fasteners. High tensile and mild steel fasteners broadly include nuts,
bolts, studios, rivets and screws. Mild steel fasteners are primarily manufactured
by the unorganized sector while high tensile fasterners requiring superior technology
are dominated by companies in the organized sector. Fasteners are used in almost
all engineering and chemical industries. Therefore the industry fortunes are linked
to the performance of their user industries. Automobile industry accounts for bulk
of the total demand of this industry. Consumer durables and railways are the other
primary users of the high tensile fasteners. Automobile sector is likely to drive growth
in the fastener industry.

The approximate export and import figures of the industrial fastener (HS code
7318) industry for the year 2009-10 were   Rs.1165.79 crores &   Rs.1735.29 crores
respectively. During the year 2010-11 (April-Sept.) the import was  Rs.1164.07 crores
against export of  Rs.743.04 crores. The production of nuts & bolts in the organized
sector for the year 2009-10 was 89640 tonnes and during the year 2010-11 the
production was reported 112926 tonnes. The fastener industry is delicensed and is
eligible for 100 per cent FDI under automatic route if the item is not reserved for the
SSI Sector.
==Steel Forgings==
Forging has unique value among manufacturing processes. The industry is a key
link between critical manufacturing segments-metal suppliers (both ferrous and
nonferrous) and user industries. Forgings are intermediate products used widely
by original equipment manufacturers in the production of durable goods. The
composition of the Indian forging industry can be categorized into four sectors -
large, medium, small and tiny. A major portion of this industry is made up of small
and medium units/enterprises (SMEs). The industry was previously more labour
intensive but now with increasing globalization it is becoming more capital intensive.

The Indian forging industry has emerged as a major contributor to the
manufacturing sector of the Indian economy. Among the industries that depend on
forgings are automotive and truck; agricultural machinery and equipment valves,
fittings, and petrochemical applications; hand tools and hardware; off-highway and
railroad equipment; general industrial equipment; ordnance and marine; and
aerospace. The key driver of demand of forging is the automobile industry. About
65 per cent of the total forging production is used in this sector. Thus, the fortunes
of the forging industry are dependent upon the growth of automobile industry.

India’s forging industry not only meets almost the entire domestic demand of
forgings but is also a large exporter and is making a significant contribution to
India’s exports. The Indian forging industry has shown a commendable performance
on export front. Technological developments have also contributed to the industry’s
steady growth in export. The major markets are USA, Europe, China, etc. The future
is bright in terms of the expected surge in global demand.

The approx. export and import figures of the forging industry (HS code 7326)
for the year 2009-10 were Rs.1599.22 crores and  Rs.2240.43 crores respectively. During
the year 2010-11 (April-Sept.) the import was Rs.695.77 crores against export of
Rs.1038.69 crores. The production of stamping & forging for the years 2009-10 in the
organized sector was 363315 tonnes and during the year 2010-11 the production
was reported 437835.45 tonnes. The forging industry is delicensed and is eligible
for 100% FDI under automatic route.

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

The approximate export and import figures of bicycle (HS code 8712) for the
year 2009-10 were Rs.120.88 crores and Rs.100.65 crores respectively. During the year
2010-11 the import was Rs.102.63 against export of Rs.80.82 crores. The major export
market for Indian bicycle and parts are African as well as South American Countries
- Nigeria, Mexico, Kenya Uganda and Brazil. The total production of all kinds of
bicycles in the organized sector was 12632.93 thousand numbers in the year 2009-
10 and in the year 2010-11 the production was reported at 13764.26 thousand
numbers. The industry is de-licensed under the current industrial policy and this
sector qualifies for 100% FDI under automatic approval.

=LIGHT INDUSTRIAL MACHINERY SECTOR=
==Food Processing Machinery==
The Indian market for food processing machinery has been growing steadily fuelled
by strong domestic demand for processed food and beverage products spurred by
increase in income level, increasing number of women joining the work force, rapid
urbanization, changing life style and mass media promotion. India is the world's
second largest producer of food but the processed food industry in the country is
relatively small.

The most promising areas of growth are fruit and vegetable processing, meat,
poultry, dairy and seafood, packaged/convenience food, soft drinks and grain
processing.

An important factor which has provided substantial stimulation to the food
processing equipment industry is the emphasis on the rapid growth of processed
food exports from India. With this, the need for adopting superior technology, food
processing and packaging machinery to ensure quality has become very important
for Indian food products in the international market which demands high quality
standards. Food Processing Sector is expected to grow at a healthy pace considering
the rapid changes in food habits and consumerist culture developing in the country.
The machinery manufacturers have honed their expertise in manufacturing dairy
machinery and other core equipment of food processing machinery.

The approximate export and import figures of food processing machinery (HS
code 8438) for the year 2009-10 were Rs.244.87 crores and Rs.347.26 crores respectively
and during the year 2010-11 (April-Sept.) the export was Rs.158.29 crores and import
was Rs.185.85 crores. The food processing machinery can be classified under the
general category of industrial machinery which is de-licensed under the current
industrial policy and this sector qualifies for 100% FDI under automatic approval.
==Packaging Machinery Industry==
Packaging of consumer products or industrial products is emerging as the USP in
the marketing strategy. Developments in packaging technology have not only
contributed to improving aesthetic appeal of the products but also the shelf life. In
some cases specialized packaging becomes a technical necessity. In a competitive
environment where Indian products have to compete in the international markets,
packaging apart from other aspects, can tilt the balance.

Considering the growth prospects in industrial sector and growing consumer
awareness of packaging, it is expected that there would be substantial growth in
this area. There is a wide range of packaging machinery available in the country
covering packaging of vast range of items. Some of the commonly available packing
machinery includes machines for coding and online printing machines, feeding and
labeling machines, form fill & seal machines, carton filling, fully automatic bag
making machinery and automatic micro processor controlled packaging machines.
The packaging machinery industry, like other industrial machinery, is de-licensed
under the current Industrial Policy and is eligible for 100% FDI under automatic
approval.

==Water Pollution Control Equipment==
Due to growing awareness of preventing water pollution and stringent
environmental control standards being enforced for various uses including process
industries, the water/waste water treatment industry is poised for huge growth.
The various categories of water pollution control equipment broadly include waste
water treatment plants, drinking water treatment plants and effluent treatment
plants. Water/waste treatment is the process of removing contaminants and it
includes physical, chemical and biological processes to remove physical, chemical
and biological contaminants. 

The primary treatment is the first step in the treatment
process and involves the removal of pollutants that settles or floats. The common
industrial equipments are clarifiers and oil - water separator devises. The secondary
treatment is designed to substantially degrade the biological content of the sewage.
The common equipments are activated sludge, filters, biological reactors etc. The
tertiary treatment is a polishing step to remove contaminants that missed in the
primary and secondary treatment and removal of filtration and carbon adsorption.
Chemical processes are used to remove inorganic and organic, resistant to
biodegradation. Chemical process includes precipitation, oxidation and
neutralization. The biological processes involve biodegrading. Organisms such as
bacterial, fungi, yeasts and algae are commonly used to break down the organic
matters. The cell tissues are then removed from the treated water by physical method
like clarification.

The complete plants are manufactured in the organized sector and many of
the equipments are manufactured in the small scale sector as well. Reputed foreign
companies from US, Germany, France, Sweden and UK have either setup their own
facilities in India or have collaboration with Indian Companies. The industry is
capable of meeting major domestic requirements. However, there is need for
continuous up-gradation in technology especially with regard to power consumption
and efficiency. The industry is included in the Industrial Machinery Sector and is a
de-licensed one and is also eligible for 100 per cent FDI under automatic approval.
==Air Pollution Control Equipment==
Like water pollution control, air pollution control is also in the public eye. Citizens
expect clean air to be available to them as these are basic necessities.
The choice of control method depends on factors such as the nature of pollutant,
flow-rate (amount of pollutant emitted), particle size and desired collection efficiency.
The air pollution control equipments are broadly classified under the categories
such as Setting Chambers, Cyclone and multi- cyclones, Bag Filters, Wet Scrubbers,
Spray Tower, Venturi Scrubber, lonizing Scrubber and Electrostatic Precipitator.
Air pollution control equipment is de-licensed and is eligible for automatic
approval upto 100% Foreign Direct Investment.
==Industrial Gears==
Industrial gears comprises mainly gears and gear boxes. Gears are used for two
basic purposes: increase or decrease of rotation speed and increase or decrease of
power or torque. Gears being an important part of a machine have immense usage
within various industries. These industries include automotive industries, coal plants
industry, steel plants industry, paper industry, in mining and many more. In these
industries they behold a wide area of application. They are used in conveyors,
elevators, kilns, separators cranes and lubrication systems.

Gearbox is defined as a metal casing in which a train of gears is sealed. The
manufacture of gears and gear boxes involve high precision machining and accurate
assembly as mechanical power is to be transmitted noiselessly and with minimum
losses. The industry is delicensed and is eligible for 100% FDI under automatic
route.
==Heavy Electrical Industry==
Heavy Electrical Industry is an important manufacturing sector that caters to the
need of energy sector & other industrial sectors. Major equipments like boilers,
turbines, transformers, condensers, switch gears and relays and related accessories
are manufactured by this sector. The performance of this industry is closely linked
to the power capacity addition programme of the country. The Government of India
has an ambitious mission of 'Power for All by 2012' and planned power capacity
addition of 78,577 MW in the 11th five year plan (2007-12). However, the actual
capacity addition may be around 52000 MW (in place of 62,374 MW) by the end of
11th Plan which ends in March 2012.

There is a strong manufacturing base for the manufacture of Heavy electrical
equipments in the country. Manufacturers of Heavy electrical equipment have
absorbed sub-critical technology up to a unit capacity of 660 MW and gearing up
for adoption super-critical technology for unit size of 800 MW and above for thermal
sets. Bharat Heavy Electricals Limited (BHEL) received number of orders for boilers
and turbines generator sets with super critical parameters from public as well as
private sector utilities upto unit size of 660 MW and 800 MW. Industry is augmenting
its installed capacity to meet ambitious 11th Plan target and future growth of
installation of nuclear reactors in the country. Gas turbines upto 260 MW Unit
capacity and Transmission and Distribution equipment up to higher voltage class
of 765 KV are also being manufactured by the Indian industry.
==Boilers==
BHEL is the largest manufacture of boilers in the country accounting to around
2/3rd of market share. It has the capacity to manufacture steam generators for utilities
ranging from 30MW to 500 MW capacity using coal, lignite, oil, natural gas or a
combination of these fuels. These are also manufacturing higher capacity boilers
with super critical parameters upto 800 MW Unit size. Manufacturing facilities are
also available for higher size super critical boilers. As per SIA statistics production
figures for the last three years for non SSI Sectors are as under :
==Table==
Product 2008-09 2009-10 April 2010 to January, 2011
(Rs.Crores) (Rs.Crores) (Rs.Crores)
Boiler 10155 12763 10472
==Table ends==

==Turbines and Generator Sets==
Indigenous capability for manufacture of various kinds of turbines such as steam
turbines and hydro turbines including industrial turbines has been established upto
unit size of 800 MW. Apart from BHEL which has largest installed capacity, there
are other manufacturers in the private sector who are manufacturing turbines for
power generation and industrial use. Generators up to 800 MW size for utility and
combined cycle application are also manufactured within the country. BHEL has
the capacity to manufacture gas turbines up to 260 MW.

The Generator industry in India is capable of manufacturing AC Generators
right from 0.5KVA to 25000KVA with specified voltage ratings.
As per SIA statistics production figures for the last three years for non SSI
Sectors are under :
==Table==
Product 2008-09 2009-10 April 2010 to
January, 2011
(Rs.Crores) (Rs.Crores) (Rs.Crores)

Turbines (steam & hydro) 4193 5428 4132

Electric Generator 1779 2117 1861
==Table ends==

==Transformers==
The Transformers Industry in India has developed for over 50 years and has a well
matured technology base. Energy efficient amorphous core transformers with low
losses and low noise levels are also being developed to meet International
requirement.

As per SIA statistics production figures for the last three years for non SSI
Sectors are under :
==Table ==

Product 2008-09 2009-10 April 2010 to
January, 2011
(Million KV A) (Million KV) (Million KV)

Transformer 73.19 85.23 72.06
==Table ends==

==Switchgear & Controlgear==
The Indian Switchgear Industry is manufacturing entire range of circuit breaker
from bulk oil, minimum oil, air blast, vacuum to sulphur hexafluoride as per standard
specification. Switchgear & Control gear Industry in India is a fully developed and
mature industry, producing and supplying a wide variety of switchgear; and control
gear items needed by the industrial and power sector. This industry sector in fact
manufacturers items in the entire voltage range from 240V to 800KV.
Secondary equipment such as relays used for various types of fault protection,
also known as controlgear, has made significant advances due to major development
in the field of electronics. The digital relays are fast replacing the conventional relays
due to technology advancement, compact size & reliability. As per recent trends, in
addition to protection and control of power, monitoring and signaling are becoming
integral part of switchgears. With monitoring the fault conditions can be predicted
whereas signaling helps to know the status of switch gears at various locations.
As per SIA statistics production figures for the last three years for non SSI
Sectors are as under :
==Table == 
Product 2008-09 2009-10 April 2010 to
January, 2011

(Rs.Crores) (Rs.Crores) (Rs.Crores)

Switchgear and Controlgear 17728849 18119497 18982604
==Table ends==

=AUTOMOTIVE INDUSTRY in India=
==Background==
Automotive Industry globally is one of the largest industries and is a key driver of
economy. Owing to its deep forward and backward linkages with several key
segments of industry, automotive industry has a strong multiplier effect on the
economy. A sound transportation system plays a pivotal role in the country's rapid
economic and industrial development. The well-developed Indian automotive
industry ably fulfils this catalytic role by producing a wide variety of vehicles such
as passenger cars, light, medium and heavy commercial vehicles, multi-utility
vehicles, scooters, motorcycles, mopeds, three wheelers, etc.
==Current Industrial Policy==
Automobile Industry was de-licensed in July 1991 with the announcement of the
New Industrial Policy. The passenger car was however de-licensed in 1993. No
industrial license is required for setting up any unit for manufacture of automobiles
except in some special cases. The norms for foreign investment and import of
technology have also been progressively liberalized over the years for vehicles
manufacture, including passengers cars, in order to make this sector globally
competitive. At present, 100% Foreign Direct Investment (FDI) is permissible under
automatic route in this sector including the passenger car segment. With the gradual
liberalization of the automobile sector since 1991, the number of manufacturing
facilities in India has grown progressively.
==Current status of Indian Automobile Industry==
The automotive industry, comprising automobile and the auto component sectors,
has made rapid strides since delicensing and opening up of the sector to FDI in
1991. The auto industry currently employes 12.5 million people both directly and
indirectly and contributes nearly 5% to the national GDP. The industry is also making
a contribution of nearly 20% to the kitty of indirect taxes of the Government. In
2009, India became the 7th largest vehicle manufacturer globally, second largest
manufacturers of two wheelers, largest manufacturer of tractors, 5th largest
manufacturer of commercial vehicles and the 4th largest passenger car market in
Asia. During 2009, India was the second fastest growing automobile market in the
world and also exported vehicles to more than 40 countries.

== Production==
The Indian automobile sector is described as the 'sun rise' sector. During
the last decade, the sector has been growing at approximately 12-15% per annum.
However, in 2008-09 the automobile sector was badly hit due to global economic
slowdown. In order to tide over the situation the Govt. of India took immediate
remedial action and announced three stimulus packages. These stimulus measures
have resulted in Indian automotive industry bouncing back on the high growth
track. During the year 2009-10, the overall production has recorded a growth of
25.76% over the corresponding period in 2008-09. The positive trend is continuing
and in the year 2010-11, the overall production of vehicles has recorded a growth of
27.45% over the previous year. Segment wise, in the year 2010-11, passenger vehicle
segment, two-wheeler segment, three-wheeler segment and commercial vehicle
segment have all recorded a growth of 26.72%, 32.63%, 29.13% and 27.24%
respectively over the last year. The details of actual production of various automobile
segments during the year 2006-07 to 2010-11 are given below :
==Table: Automobile Production==
(No. in thousands)

Segment 2006-07 2007-08 2008-09 2009-10 2010-11

Passenger Vehicle 1323 1426 1517 2351 2987

Total Commercial Vehicles 520 549 417 566 753

Three Wheelers 556 501 501 619 800

Two Wheelers 8444 8027 8419 10513 13376

Total 11065 10854 11175 14050 17916

Percentage growth 13.57 (-)2.29 2.96 25.76 27.45

Source : SIAM

==Table ends== 

==Export ==
In the year 2010-11, the export of two-wheeler, three wheeler and commercial
vehicles recorded a growth of 55.86%, 35.04% and 69.51% respectively; however,
the export of passenger vehicles has recorded very marginal growth of 1.64% over
the last year. The details of export of various automobile segments during the year
2006-07 to 2010-11 are as follows :

==Table: Automobile Export==
(No. in thousands)

Segment 2006-07 2007-08 2008-09 2009-10 2010-11

Passenger Vehicle 194 218 336 446 453

Total Commercial Vehicles 50 53 37 45 76

Three Wheelers 619 141 148 173 270

Two Wheelers 144 819 1004 1140 1540

Total 1011 1238 1530 1804 2339

Percentage growth 25.43 22.45 23.61 18.05 29.64

Source : SIAM
==Table ends== 
==Auto Components Industry ==
Auto Component Manufacturers Association
(ACMA) represents over 600 companies. In the domestic market, they supply
components to vehicle manufacturers, tier-one suppliers, state transport
undertakings, defence establishments, railways and also to the replacement market.
A variety of components are also being exported to OEMs and after-markets
worldwide. The overall details of this segment are given below:

==TableAutomotive Component Industry-Statistics==
(Rs.Crores)
2004-05 2005-06 2006-07 2007-08 2008-09 20009-10

Turnover 38,500 53,400 64,500 72,000 76,320 103,400

% Growth 25.7 38.7 20.8 11.6 6.0 35

Exports 7,937 11,198 13,184 14,132 16,522 17,860

% Growth 37.0 41.1 17.7 7.2 17 8

Imports 9,504 12,115 15,974 20,998 28,160 28,352

% Growth 46.2 27.5 31.9 31.5 34 36

Investment 16,800 19,500 24,400 28,800 32,000 42,300

% Growth 15.9 16.1 23.1 20.0 11.1 32

Import as % of Turnover 24.7 22.7 24.8 29.2 36.9 32

Export as % of turnover 20.6 21.0 20.4 19.6 21.6 15

Source : ACMA (*calculated @ `47 for 2009-10* `43.2 for 2008-09)

  

==Table ends== 
(Turnover includes supplies to OEMs, aftermarket sales and exports but sans imports. It does not take
into account production for captive consumption by OEMs, components manufactured by non-ACMA
members whose majority supplies are non-automotive and the unorganized sector)
Exports represent about 15% of the total turnover. Due to global recession in
the recent past, exports from India also took a beating and the exports stagnated in
the fiscal year 2009-10. Imports represent 32% of the total turnover of the industry
and registered a growth of 35% over the previous year. Till now, industry has been
recording a double digit growth in investments. Despite the global economic
slowdown, auto components industry continued to add new capacity. The year
witnessed Rs.7990 crore of capacity addition, green field and expansion taken together.

==Agricultural Machinery Sector :==
Agricultural Machinery mainly consists of
agricultural tractors, power tillers, combine harvesters and other agriculture
machineries & implements. Due to negligible production of power tillers, combine
harvesters and other agricultural machineries, this sector is mainly dominated by
agricultural tractors. Indian Tractor Industry is the largest in the world (excluding
sub 20 HP belt driven tractors used in China), accounting for one third of the global
production. The other major tractor markets in the world are China and United
States. The production figures for the period April 2010 to December, 2010 stands at
3,30,108 tractors and the sales figures at 3,53,737.

Indian tractors were exported to US and other countries like Malaysia, Turkey
etc. Indian players have aggressively started exporting to African countries by
bidding for government tender requirement. As such, Indian tractors are gaining
acceptance in international markets. During the period April-December, 2010, 29,460
number of tractors of various makes have been exported. As the cost of tractors in
India is cheapest in the world, there is tremendous scope for export of tractors in
future.

==Earth Moving and Construction Machinery==
Earthmoving and Construction
Equipment (ECE) industry constitutes a major background linkage of construction
along with the building material manufacturing industry. Construction materials
account for nearly two-third of the average of the construction costs. Construction
equipment cover a variety of machinery such as hydraulic excavators, wheel loaders,
backhoe loaders, bull dozers, dump trucks tippers, graders, pavers, asphalt drum/
wet mix plants, breakers, vibratory compactors, cranes, forklifts dozers, off-highway
dumpers (20T to 170T), drills scrapers, motor graders, rope shovels etc. They perform
a variety of functions like preparation of ground, excavation, haulage of material
dumping/laying in specified manner, material handling, road construction etc. The
Indian earthmoving and construction equipment industry has been undergoing a
silent revolution over the past few years, expanding volumes at a compounded
annual rate of 40 per cent.

The Indian earthmoving and construction manufacturing industry serves key
sectors relating to urban infrastructure, mining, power, construction, irrigation, roads
and highways, heavy infrastructure etc. Huge investments are being made in these
sectors which have created high demand for construction and earthmoving
equipment. As per the information furnished by the industry association, the
construction equipment requirement has grown at 19.3% from FY 2006 to FY 2010
and this is expected to continue to double every four years. Similarly, the demand
for earthmoving equipment is also expected to remain buoyant in the near term.

The global meltdown has resulted in the increase in import of equipments from idle
global capacities and also in sharp rise in import of used and obsolete machineries
as second hand equipments. The import of used crawler cranes and mobile cranes
is almost 50% to 80% of total consumption in Indian market during last three years.

Therefore, the biggest problem being faced by the domestic construction and
earthmoving equipment manufacturing industry is the lack of level playing field.
Important initiatives taken in respect of auto sector by the Department of Heavy
Industry (DHI): DHI being the nodal Department for automobile and auto
component industry takes up a range of issues relating to automobile sector at
various platforms for its growth. In this regard, DHI has taken various important
initiatives, as outlined below :

• Development Council for Automotive and Allied Industries (DCAAI) :
The last meeting of the DCAAI held in 2010-11 under the chairmanship of
Secretary, Heavy Industry was on 28th August, 2010. As the terms of the DCAAI
expired in August, 2010, it was reconstituted with the approval of Minister
(HI&PE) and the first meeting of the newly constituted Council was held on
16.3.2011. This forum provides an opportunity to identify key areas of concern
for which appropriate policy modulations and other actions can be taken by
various Ministries/Departments of the Government of India.

• Automotive Mission Plan : The automotive sector is a key sector of the
industry and accordingly a vision for its growth was unveiled by the Hon'ble
Prime Minister on 1st January, 2007 in the form of Automotive Mission Plan
2006-16. This document envisages growth of industry turnover to US$ 145
billion with an additional employment generation of 25 million in this sector.
A number of recommendations have been indicated in the AMP for achieving
these objectives.

• Setting up of IMG and JWG : In order to monitor the roadmap for
implementation of recommendations of AMP 2006-16 and also its progress,
five Inter Ministerial Groups (IMGs) have been set up in the Department of
Heavy Industry on various issues related to the automotive industry, like Fuel
Policy, Research & Development, Infrastructure and Institutional Support etc.
Three Joint Working Groups under the aegis of the Development Council for
Automotive and Allied Industries have also been constituted to carry ahead
and to deliberate upon the issues taken up during the DCAAI meeting as well
as various recommendations of the AMP 2006-16.

• Indo-German Joint Working Group (JWG) on Automotive Sector : Indo-
German Joint Working Group (JWG) on automotive sector was established
under the aegis of Indo-German Joint Commission on Industrial and Economic
Cooperation (JCM). This is the fifth JWG; the other four groups are in the
areas of Agriculture, Coal, Infrastructure and Tourism. The first meeting of
the JWG was held on 6.2.2009 in New Delhi. During the first meeting, three
working sub-groups were constituted on :

(i) Technology

(ii) Commercialization & Framework Development

(iii) Institutional Cooperation, Training & Skill Development.

The second meeting of the JWG and its working sub-groups was held at
Frankfurt, Germany during 21st to 22nd September, 2009. The third meeting of
the JWG was held in New Delhi on 18th April, 2011.

• Informal Group of Environmentally Friendly Vehicles (EFV) : DHI, as the
nodal Ministry for the auto sector, is required to attend the meetings of the
WP-29, the global body under the UNECE for formulation of automotive
regulations as India is a signatory of the 1998 agreement. The Chairmanship,
Co-chairman and Secretariat for the Informal Group on EFV under GRPE (WP-
29), UNECE have been conferred on India. As per WP-29 norms, the informal
group is required to meet on the sidelines of GRPE/WP-29 meetings and also
report progress to GRPE/WP-29. DHI is also functioning as the Secretariat for
the informal group till 2012 i.e., the period till the next EFV Conference to be
held in USA.

• ''' Electric Mobility :'''  In terms of the recommendations of the Prime Minister's
Group on Technology and on the initiatives taken by National Manufacturing
Competitive Council (NMCC), the Department of Heavy Industry has initiated
the task of finalizing policy recommendations for moving ahead in the field of
electric mobility in the country. Based on the various discussions held at
NMCC, and inputs obtained from all stakeholders, an elaborate policy
document has been prepared by DHI. Accordingly, the Department has
obtained the approval of Government of India for setting up of the fully
empowered apex body viz. National Council for Electric Mobility (NCEM)
and National Board for Electric Mobility (NBEM), at a very senior level with
members from all stakeholders and for expeditious implementation of this
initiative, encompassing all policy related matters on various issues on a
mission mode basis. The NCEM will be chaired by the Hon'ble Minister of
Heavy Industries and Public Enterprises and the NBEM will be chaired by
Secretary, DHI. On the basis of the approval of Government, notifications for
setting up the NCEM and NBEM have been issued.

• Study on Electric Mobility : The National Mission on Electric Mobility has
been announced by the Government. In this regard, a detailed report on various
interventions, incentives, policy modulation, etc. required has already been
undertaken through a study based on secondary data. In order to authenticate
the recommendation of this study, a study based on primary data collection
has also been approved by the Department. This shall be taken as the input to
prepare the National Mission Plan for Electric Mobility 2011-20 to be adopted
by the National Council for Electric Mobility. A Core Group along with
monitoring group has been constituted to finalise this study which is expected
to be completed by August, 2011.

• Setting up of task force for automotive sector in Planning Commission
for Twelfth Five Year Plan (2012-2017) : The Department received a reference
from Planning Commission requesting to take immediate action to formulate
the draft composition and Terms of Reference (ToRs) of the Working Group in
respect of the automotive and capital goods & engineering sectors to enable
them to finalize and issue the related notification. Accordingly for the
Automobile Sector Specific Working Group, a Task Force under the
chairmanship of SHI has been constituted. The composition of the Task Force
is as under :
 
Sr. No. Designation/Name/Organization Designation  in the Task Force

1. Secretary, DHI Chairman

2. Jt. Secretary, DST Member

3. Jt. Secretary, DRT Member

4. Jt. Secretary, MoPNG Member

5. Jt. Secretary, DIPP Member

6. Jt. Secretary, NMCC Member

7. Jt. Secretary, DHI Member

8. Director, Automotive Research Association of India (ARAI) Member

9. President, Society of Indian Automobile Manufacturers (SIAM) Member

10. President, Auto Component Manufacturers Assan. (ACMA) Member

11. President, Society of Manufacturers of Electric Vehicles (SMEV) Member

12. Mr. P.M. Telang, MD, TATA Motors, C/o SIAM Member


• Setting up of Sectoral Innovation Councils : Advisor to the Prime Minister,
Public Information Infrastructure and Innovations (PIII), chaired a meeting
on 15.1.2011 to discuss the creation of Sectoral Innovation Councils aligned to
the Ministries of the Government of India. The key issues that emerged in the
meeting are as under :

(i) Sectoral Innovation Councils would be autonomous and decentralised
bodies focussed on preparing a Road map for a Decade of Innovations
in the respective sectors.

(ii) Each Ministry would have to take the lead in defining the critical sectors
in its core area where innovations thinking is required. Hence there could
be possibility of setting up multiple Sectoral Councils in each Ministry.

(iii) The Sectroral Innovation Councils would focus on co-opting domain
experts for effective strategising on the needs and challenges in specific
sectors.

(iv) The private sector would have adequate representation on these proposed
Councils to understand market needs and demands in the sectors as
well as to ensure an industry focus.

Accordingly, the matter was considered in the Department and an Innovation
Council in respect of Auto Sector has been proposed with members drawn
from the concerned stake holders i.e. Government, industry and experts.

• Automotive Skill Development Council (ASDC) : Department of Heavy
Industry has taken an initiative for "Formulation of Skill Development Plan"
with a view to make available adequate, trained manpower for sectors like
achine tools, heavy electrical, auto industry etc. so as to ensure proper,
streamlined and high growth rate during the current fiscal year and in future.
As far as auto sector is concerned, the tasks of identifying the skill gaps in the
industry was undertaken through the specialized group formed during the
framing of AMP 2006-16, as per which the industry is expected to require an
additional 25 million workforce by 2016. Based on the deliberations held in
the Department on various occasions, the Society of Indian Automobile
Manufacturers (SIAM) prepared a Detailed Project Report (DPR). Based on
this an Automotive Skill Development Council (ASDC) is envisaged to be set
up. The proposal of ASDC has been approved by NSDC. The ASDC has been
registered under Societies Registration Act XXI of 1860 on 18.3.2011 and the
pilot module has been sanctioned with a amount of 75 lakhs by NSDC for
implementation upto Dec., 2011.

==Heavy Engineering and Machine Tools Industry==
Heavy Engineering and Machine Tools Sector mainly consists of Capital Goods
Industry. Prominent sub-sectors of Capital Goods Industry are Machine Tools, Textile
Machinery, Construction and Mining Machinery and other Heavy Industrial
Machinery such as Cement Machinery, Rubber Machinery, Metallurgical Machinery,
Chemical and Fertilizer Machinery, Printing Machinery, Dairy Machinery, Material
Handling Equipment, Oil Field Equipment, Paper Machinery etc. The capital goods
industry contributes 12% to the total manufacturing activity which is turn is 16% of
GDP and it provides critical input i.e. machinery and equipment to the remaining
sectors.

==Machine Tools Industry==
Machine Tools Industry is a strategic industry that determines the
manufacturing competitiveness in important sectors such as automobiles, heavy
electrical equipments, defence, aerospace and consumer goods and other sectors.
There are around 200 machine tool manufacturers in the organized sector as also
around 400 small scale units. The Industry lacks in design and engineering capability
to undertake high precision CNC machines. Due to technology gaps in the field of
metal cutting machine tools, metal forming technology as well as RS.&D initiatives is
encouraged to bridge the gaps. This industry is delicensed and foreign direct
investment (FDI) up to 100 per cent under automatic route as well as technology
collaboration is allowed freely. Machine tool industry, being strategic industry, the
Department is keen to develop the same as the domestic industry not at par with
the machines manufactured globally. The technology denial issue in respect of five
or more axes CNC machine tool have also been taken up with appropriate
authorities.

As per Indian Machine Tools Manufacturers Association (IMTMA) the
production, import and export figures for the last three years are as under :
==Table == 
2008-09 2009-10 2010-11

(Rs.Crores) (Rs.Crores) (Rs.Crores)

Production 1425 1656 2400

Import 6270 4842 6700

Export 147 89 81
==Table ends== 
==Textile Machinery Industry==
Textile Machinery Industry is a significant component of the capital goods industry.
This industry comprises of over 1446 machinery and components manufacturing
units with over 600 units producing complete machinery and other units are mainly
into the production of parts and accessories of textile machinery. The textile
machinery includes sorting machinery, cording machinery, processing machinery
of yarns/fabrics, weaving machinery, etc. This industry is also delicensed and foreign
direct investment (FDI) up to 100 per cent under automatic route as well as
technology collaboration is allowed freely.

As per Textile Machinery Manufacturers Association (TMMA) with a capital
investment of Rs.6900 crores and an installed capacity of Rs.8048 crores per annum,
the current production, exports and imports for the last three years are as under :
==Table == 
Year Production Exports Imports

(Rs.Crores) (Rs.Crores) (Rs.Crores)

2008-09 4063 607 4411

2009-10 4245 582 4357

2010-2011 6150 650 5000
==Table ends==

=MICRO SMALL AND MEDIUM ENTERPRISES (MSME) SECTOR=
The Ministry of Micro, Small and Medium Enterprises (MSME) performs its tasks
of formulation of policies and implementation of programmes mainly through Office
of the Development Commissioner (MSME), National Small Industries Corporation
Ltd. (NSIC), Khadi and Village Industries Commission (KVIC) and Coir Board. The
Micro, Small and Medium Enterprises Development Organisation (Earlier known
as small Industries Development Organization) set up in 1954, functions as an apex
body for sustained and organized growth of micro, small and medium enterprises.
As an apex/nodal organ, it provides a comprehensive range of facilities and
services to the MSMEs through its network of thirty Micro, Small and Medium
Enterprises-Development Institutes (MSME-DIs), twenty eight branch MSME-DIs,
four Micro, Small and Medium Enterprises-Testing Stations (MSME-TSs) six MSMETechnology
Development Centres (MSME-TDCs) (PPDCs) eleven MSME, Tool
Rooms (MSME-TRs) and two specialised Institutes namely MSME-Training
Institutes, Central Footwear Training Institutes (MSME-TIs), (CFTIs). Agra and
Chennai.

==PERFORMANCE OF MICRO, SMALLAND MEDIUM ENTERPRISES (MSMEs)==
The micro, small and medium enterprises (MSME) sector contributes significantly
to the manufacturing output, employment and exports of the country. It is estimated
that in terms of value, the sector accounts for about 45 per cent of the manufacturing
output and 40 per cent of the total exports of the country. The sector is estimated to
employ about 59 million persons in over 26 million units throughout the country.
Further, this sector has consistently registered a higher growth rate than the rest of
the industrial sector. There are over 6000 products ranging from traditional to hightech
items, which are being manufactured by the MSMEs in India.

Recognizing the contribution and potential of the sector, the definitions and
coverage of the MSE sector were broadened significantly under the Micro, Small
and Medium Enterprises Development (MSMED) Act, 2006 which recognized the
concept of "enterprise" to include both manufacturing and services sector besides,
defining the medium enterprises.
==IMPORTANT SCHEME AND PROGRAMMES OF MSMEs==
===Credit Linked Capital Subsidy Scheme (CLCSS)===
The M/o MSME is operting a Scheme namely Credit Linked Capital Subsidy Scheme
(CLCSS) for Technology Upgradation of Micro and Small Enterprises. The Scheme
aims at facilitating technology upgradation of Micro and Small Enterprises. The
Scheme was launched in October, 2000 and revised w.e.f. 29.9.2005. The revised
scheme provides for 15% Capital Subsidy (12% prior to 29.9.2005) on institutional
finance availed by them for induction of well-established and improved technology
in approved sub-sectors/products. The maximum limit of eligible loan for calculation
of capital subsidy under the scheme is j 100 lakh with a maximum subsidy of j 15
lakh. 

The admissible capital subsidy under revised scheme is calculated with
reference to purchase price of the plant and machinery, instead of the term loan.
Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGFSFMASE)
The Government of India launched the Credit Guarantee Fund Scheme for Micro
and Small Enterprises in August, 2000 with the objective of making available credit
to micro and small enterprises (MSEs), particularly micro enterprises, for loans upto
j 100 lakh without collateral/third party guarantees. The Scheme is being operated
through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
set up jointly by the Govenment of India and Small Industries Development Bank
of India (SIDBI).
==Micro Finance Programme==
The Ministry has been operating a Scheme of Micro Finance Programme since 2003-
04, which has been tied up with the existing Micro Credit Scheme of SIDBI. Under
the Scheme, the Government of India provides funds to SIDBI under 'Portfolio Risk
Fund' (PRF) which is utilized for security deposit requirements of loan from the
MFIs/NGOs. At preset SIDBI takes fixed deposit equal to 10% of the loan amount.
Under the PRF, the share of Micro Finance Institution (MFIs)/NGOs is 2.5% of the
loan amount (i.e. 25% of security deposit) and balance 7.5% (i.e. 75% of security
deposit) is adjusted from the funds provided by the Government under the scheme.

The funds under PRF are to be utilized for extending loans in the underserved
States like North Eastern States including Sikkim, Bihar, Jharkhand, West Bengal,
Odisha, Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Jammu & Kashmir, Rajasthan
and Uttarakhand and underserved pockets/ districts of other States.

==Micro & Small Enterprises Cluster Development programme (MSECDP)==
The Ministry of Micro, Small and Medium Enterprises (MSMEs) initiated selected
interventions in industrial clusters first in 1998 through its scheme 'Integrated
Technology Upgradation and Management Programme' (UPTECH). In August 2003,
the Scheme was renamed as Small Industry Clusters Development Programme
(SICDP) and was broadbased for holistic and integrated development of micro and
small enterprises through interventions such as capacity building, marketing
development, export promotion, skill development, technology upgradation,
exposure visits, etc and setting up of common facilities.
==National Manufacturing Competitiveness Programme (NMCP)==
The National Manufacturing Competitiveness Programme (NMCP) is the nodal
programme of the Government of India to develop global competitiveness among
Indian MSMEs. Conceptualised by the National Manufacturing Competitiveness
and Council (NMCC), the Programme was initiated in 2007-08. An amount of Rs. 682
crores has been allocated during the 11th Plan period for NMCP.
==OTHER IMPORTANT SCHEMES==
===Rajiv Gandhi Udyami Mitra Yojana===
The objective of Rajiv Gandhi Udyami Mitra Yojana (RGUM) is to provide
handholding support and assistance to the potential first generation entrepreneurs,
through the selected lead agencies i.e. 'Udyami Mitras', in the establishment and
management of the new enterprise, completion of various formalities required for
setting up and running of the enterprise and in dealing with various procedural
and legal hurdles. Under this Scheme, the selected lead agencies i.e. 'Udyami Mitras'
provide guidance and consultation to the potential entrepreneurs registered with
them, in preparation of project report; arranging finance; selection of technology;
marketing tie-ups with buyers; installation of plant and machinery as well as
obtaining various approvals, clearances etc.

==Marketing Assistance Scheme==
This is an ongoing scheme for providing support to MSMEs. NSIC is the
implementing agency on behalf of the M/o MSME. The main objectives of the scheme
is to enhance the marketing competitiveness of MSMEs; to provide them a platform
for interation with the individual/institutional buyers; to update them with
prevalent market scenario and to provide them a forum for redressing their problems.
Marketing, a strategic tool for business development, is critical for the growth the
survival of MSMEs in today's intensely competitive market. One of the major
challenges before the MSME sector is to market their products/ services. MSMEs
are supported under the scheme for capturing the new market opportunities through
organizing/participating in various domestic & international exhibition/trade fairs,
buyer-seller meets, intensive-campaigns and other marketing events.
==Credit Rating Scheme==
This scheme was launched in the year 2005. NSIC has been appointed as
implementing agency for the scheme by the M/oMSME. Under the scheme, seven
renowned, accredited rating agencies viz., CARE, CRISIL, Dun & Bradstreet (D&B),
FITCH, ICRA, ONICRA and SMERA have been empanelled to carry out the rating.
MSMEs are free to choose any one of them as per their convenience. The scheme is
aimed at creating awareness among micro and small enterprises (MSEs) (medium
enterprises are not included under the Scheme) about the strengths and weaknesses
of their existing operations and to provide them an opportunity to enhance their
organizational strengths and credit worthiness. 

The rating under the scheme serves
as a trusted third party opinion on the capabilities and creditworthiness of the micro
and small enterprises. An independent rating by an accredited rating agency has a
good acceptance from the Banks/ Financial Institutions, Customers/Buyers and
Vendors. Under this scheme, rating fee payable by the micro and small enterprises
is subsidized for the first year only subject to a maximum of 75% of the fee or
Rs. 40000/-, whichever is lower.

==Employment creation==
===2014-18===
[https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F03%2F09&entity=Ar02509&sk=4E7A54D3&mode=text  MSMEs created 1.5cr jobs a year since ’14: Survey, March 9, 2019: ''The Times of India'']

[[File: Employment created by MSMEs, 2014-18..jpg|Employment created by MSMEs, 2014-18. <br/> From: [https://epaper.timesgroup.com/Olive/ODN/TimesOfIndia/shared/ShowArticle.aspx?doc=TOIDEL%2F2019%2F03%2F09&entity=Ar02509&sk=4E7A54D3&mode=text  MSMEs created 1.5cr jobs a year since ’14: Survey, March 9, 2019: ''The Times of India'']|frame|500px]]


A survey of 105,347 micro, small and medium enterprises firms (MSME), has shown a growth of 13.9% in net jobs created over the last four years at 3.3% per annum.

The survey conducted by the Confederation of Indian Industry (CII) said the overall job creation works out to 13.5 to 14.9 million per annum given that the total workforce size according to the Labour Bureau is 450 million annum. ‘Net jobs created’ is defined as recruitment less exits.

Three states —Maharashtra (29%), Gujarat (14%) and Telangana (10%) – accounted for 54% of the jobs created in the last four years. The top eight states accounted for over 80% of the jobs.

“…Assuming a more conservative growth of 3.0%, the extrapolated jobs addition works out to 13.5 million jobs. The assumption of 3.0% growth assumes that employment growth in MSMEs is likely to be higher relative to the larger firms,” the survey said.

The survey comes amid the sharp debate on job creation with critics saying that the government has failed to create jobs despite robust economic growth.

The top job generating sectors were hospitality and tourism followed by textiles and apparel and metal products. Machinery parts and transport and logistics were the next main job creators.

=MSME sector: bank loans=
==The 2019 loan restructuring scheme & its impact==
[https://www.livemint.com/Industry/BbxC3DQBEYMHLsDmbT15tI/RBIs-MSME-loan-restructuring-scheme--its-impact.html  Shayan Ghosh, RBI’s MSME loan restructuring scheme & its impact, January 3, 2019: ''Livemint'']


''Mint analysis what the RBI relief on loans means for MSMEs and banks''

The Reserve Bank of India (RBI) has allowed lenders to restructure loans of stressed micro, small and medium enterprises (MSMEs), provided the total fund and non-fund based exposure to a borrower doesn’t exceed ₹25 crore as on 1 January 2019. Mint analyses how this will affect MSMEs and lenders.


'''What are the terms of the MSME restructuring scheme?'''

RBI has allowed a one-time restructuring of existing MSME loans that have defaulted, but are not non-performing as on 1 January. Such a debt restructuring, the central bank said, would not lead to a downgrade in asset classification. To be eligible for the debt restructuring scheme, the aggregate exposure, including non-fund based facilities of banks and non-banking financial companies (NBFCs), to a borrower should not exceed ₹25 crore as on 1 January. Also, the restructuring has to be implemented by 31 March 2020.


'''Why did it become necessary to provide some relief to MSMEs?'''

The government has been pushing RBI to provide relief to the stressed MSME sector. The central bank’s board on 19 November advised RBI to consider a scheme to recast loans of those MSMEs that were hurt by the demonetisation of high-value currency notes on 8 November 2016 and, subsequently, the implementation of the goods and services tax (GST) in July 2017. A study by RBI in August 2018 found that credit growth in the MSME sector, which had started slowing even before demonetisation, declined further after note ban was implemented.


'''How important are MSMEs to lenders?'''

A Kotak Institutional Equities report said MSMEs form close to 25% of commercial lending in India as of FY18. The segment recorded an 18% year-on-year growth in Q1 FY19.


'''How will the scheme affect lenders?'''

Under this scheme, lenders have to set aside 5% of the outstanding loan as provision, over and above the current outstanding amount. All standard loans (being regularly repaid) attract 0.4% provision. The recast scheme ensures that MSME loans do not slip into the non-performing asset category, requiring 15% provision. RBI has also asked each bank and NBFC to formulate a policy for the scheme, with board approval for viability assessment of the stressed accounts and regular monitoring of the restructured accounts.


'''What is RBI’s existing framework for resolving stressed MSMEs?'''

In March 2016, RBI notified a mechanism for resolving stressed MSME loans of up to ₹25 crore. Under this, banks classify stress in such loans into three categories—special mention account (SMA) 0, SMA 1 and SMA 2—depending on the delay in repayment. RBI data for the six months ended March 2017 show that 137,282 MSME loan accounts were referred for resolution. Of these, banks used rectification in 80,905 cases and made recoveries in 54,180 others. Only 2,197 accounts were recast.

=KHADI AND VILLAGE INDUSTRIES COMMISSION (KVIC)=
KVIC is functioning under the administrative control of the Ministry of Micro, Small
and Medium Enterprises, Government of India. The Commission functions with its
Head Office in Mumbai and six Zonal Offices located in New Delhi; Bhopal;
Bangaluru; Kolkata; Mumbai and Guwahati and 36 State/Divisional Offices spread
all over the country to facilitate speedy implementation of K VI programmes. Khadi
& Village Industries Commission (KVIC) established under the Khadi and Village
Industries Commission Act, 1956 (61 of 1956), is a statutory organization under the
aegis of the Ministry of MSME, engaged in promoting and developing khadi and
village industries for providing employment opportunities in the rural areas, thereby
strengthening the rural economy. 

KVIC has been identified as one of the major
organizations in the decentralised sector for generating sustainable non-farm
employment opportunities in rural areas at a low per capita investment. It undertakes
activities like skill improvement; transfer of technology; research & development;
marketing etc. and helps in generating employment/self-employment opportunities
in rural areas.

The main objectives of KVIC include:-

(i) The social objective of providing employment in rural areas;

(ii) The economic objective of producing saleable articles; and

(iii) The wider objective of creating self-reliance amongst people and building up
a strong rural community spirit.
==SOME MAJOR SCHEMES BEING IMPLEMENTED BY KVIC==
===Rural Industries Service Centres (RISCs)===
KVIC has also taken up another small scale intervention called "Rural Industries
Service Centres (RISC)" scheme from 2004-05 onwards for providing infrastructural
support and services to selected units with a view to upgrading their production
capacity; skill upgradation and market promotion. RISC, inter alia, provides testing
facilities by establishing laboratories for ensuring quality of products; improved
machinery/equipment to be utilised as common facilities by nearby units/artisans
for enhancing production capacity or value addition of the product; attractive and
appropriate packaging facilities and machinery to the local units/artisans for better
marketing of their products; training facilities for upgrading artisans' skills in order
to increase their earnings and new designs and diversified products in consultation
with experts/agencies for value addition of rural manufacturing units. 

Under this
scheme, financial assistance for establishing smaller projects costing up to Rs. 5 lakh
each is provided to KVI units while in bigger projects, such assistance is up to Rs. 25
lakh. Each project costing up to w 5 lakh is expected to provide benefit to at least 25
individuals.

===Khadi Karigar Janashree Bima Yojana===
In order to provide insurance cover to khadi artisans, a group insurance scheme
namely Khadi Karigar Janashree Bima Yojana (JBY) was launched on August 15,
2003. The scheme was formulated by KVIC in association with the Life Insurance
Corporation of India (LIC) with annual premium of Rs. 200/- in case of Natural death
Rs. 30,000/- in case of accidental death Rs. 75,000/- in case of full permanent disability
due to accident Rs. 75,000/- in case of part permanent disability due to accident Rs.
37,500/- As an 'add-on' benefit without any additional premium, up to two schoolgoing
children of insured artisans studyings in class nine to twelve are also eligible
to get a scholarship of Rs. 100/- each per month, under the scheme per beneficiary.
=Coir Industry=
India is the largest coir producer in the world accounting for more than 80 per cent
of the total world production of coir fibre. The coir sector in India is very diverse
and involves households, co-operatives, NGOs, manufacturers and exporters. This
is the best example of producing beautiful artifacts, handicrafts and utility products
from coconut husks which otherwise is a waste. The coir industry employes more
than 6.50 lakh persons of whom a majority is from rural areas belonging to the
economically weaker section of society. Nearly 80% of the coir workers in the fibre
extraction and spinning sectors are women.

Historically, the coir industry started and flourished in Kerala which has a
long coast line, lakes, lagoons and backwaters providing natural conditions required
for retting. Coconut husk is left to soak in salty backwaters for months together and
thereafter yarn is possible to be woven from husk. However, with the expansion of
coconut cultivation, coir industry has also picked up in Tamil Nadu, Karnataka,
Andhra Pradesh, Odisha, West Bengal, Assam, Tripura, Puducherry and the Union
Territories of Lakshadweep and Andaman & Nicobar Islands through the efforts of
Coir Board. The production and processing methods in coir industry still continue
to be mainly traditional. For instance, spinning is mainly carried out on traditional
ratts which required repeated walking, forward and backward. The total production
of coir fibre in the country during the year 2009-10 was 5,15,500 M.T., The fibre
production during 2010-11 (up to December, 2010) was 3,91,255 M.T.
==Coir Board==
The Coir Board is a statutory body established under the Coir Industry Act, 1953
for promoting the overall development of the coir industry and improvement of
the living conditions of the workers engaged in this traditional industry.
===ACTIVITIES OF THE COIR BOARD===
====Research and Development in Coir Technology====
Central Coir Research Institute (CCRI), Kalavoor, Alleppey and Central Institute of
Coir Technology (CICT), Bangalore, undertakes research activities for the different
aspect of coir industry beginning with the method of extraction of fibre to the
processing to Coir Board for undertakings its various activities under Plan and
Non-Plan heads. The Central Coir Research Institute, Alleppey was established in
1959 and the Central Institute of Coir Technology, Bangalore in 1980. Whereas CCRI,
Kalavoor concentrates on research concerning both the white and brown fibre sectors,
CICT, Bangalore confines to the brown fibre sector. 

Identification of new user areas
for utilization of coir and coir waste (coir pith), modernization of production
infrastructure for elimination of drudgery in manual operation thereby attaining
higher productivity and improvement in quality are integral parts of the research
efforts. Research investigations in Central Coir Research Institute have led to
development of several new technologies for the coir industry and it has been
awarded the prestigious National Research and Development Corporation (NRDC)
Technology Awards thrice for innovations in 1999, 2002 and 2004. The recent
achievements of the Board include development of a versatile loom, named as
"Anupam', and a Mobile Fibre Extraction Machine "Swarna" for extraction and
manufacturing various coir products with ease and higher productivity and
development of a technology for pollution-free retting.
==DOMESTIC MARKET PROMOTION==

Promotion of the sale of coir products in India and elsewhere is one of the important
functions of the Coir Board. The Domestic Market Promotion includes efforts for
enhanced sale of coir products through Board's showrooms and sales outlets and
also popularizing coir and coir products by way of publicity, organizing exhibitions
in different parts of the country, through audio and visual media, sales campaign,
press advertisement and through pamphlets, hoardings etc.
==EXPORT MARKET PROMOTION==

Export promotion is one of the important programmes being implemented by the
Coir Board for sustainable development of the industry. Under this Programme,
the Board in association with trade and industry is participating in major
international fairs/expatiations.

==DEVELOPMENT OF PRODUCTION INFRASTRUCTURE==

Under this scheme, financial assistance is provided for setting up new coir units
and modernization of existing units for the sustainable growth of coir sector. The
financial assistance under this scheme is 25% of the project cost subject to a maximum
of Rs. 6 lakh for setting up of defibering unit, Rs. 4 lakh for automatic spinning unit
and Rs.  5 lakh for others, including coir pith unit. Financial assistance limited to
Rs. 2 lakh is also provided for modernization of existing units.

====Mahila Coir Yojana====

The Mahila Coir Yojana is the first women oriented scheme, which provides selfemployment
opportunities to the rural women artisans in regions producing coir
fibre. The conversion of coir fibre into yarn on motorised ratt in rural households
provides scope for large scale employment; improvement in productivity and
quality; better working conditions and higher income to the workers. The scheme
envisages distribution of motorized ratts/motarized traditional ratts for spinning
coir yarn to women artisans. Training is imparted in spinning motorised ratt and
motorised traditional ratt under the regular training programmes. The stipend being
paid to the trainees is Rs. 750/-per month.

==PRIME MINISTER'S EMPLOYMENT GENERATION PROGRAMME (PMEGP)==

A scheme title 'Prime Minister's Employment Generation Programme (PMEGP)'
was launched in 2008 with the merging of the then existing Prime Minister Rojgar
Yojana (PMRY) and Rural Employment Generation Programme (REGP) schemes of
this Ministry with a total Plan outlay of Rs. 4735 crores including Rs. 250 crores for
backward and forward linkages. The scheme is estimated to generate 37.37 lakh
additional employment opportunities during the remaining four years of the
11th Plan. The guidelines of the scheme are available on the website of the Ministry
of MSME (www.pmegp.in; www.msme.gov.in).

The main objectives of the PMEGP are:

• To generate employment opportunities in rural as well as urban areas;

• To bring together widely dispersed traditional artisans/rural and urban
unemployed youth and give them self-employment opportunities to the extent
possible, at their place;

• To provide continuous and sustainable employment to a large segment of
tradition and prospective artisans and rural & urban unemployed youth; and

• To increase the wage earning capacity of artisans.

• The salient features of the scheme are as follows:

• Any individual, above 18 years of age, is eligible

• No income ceiling has been prescribed for assistance.

• For setting up of project costing above Rs.  10 lakh in the manufacturing
sector and above r5 lakh in the business/service sector, the beneficiaries
should possess educational qualification of having passed at least
VIII standard.

• Assistance under the scheme is available only for new projects sanctioned.

• Self Help Group (SHG) including those belonging to BPL are also eligible
for assistance provided that they have not availed benefits under any other
scheme.

• The borrower is required to bring in own contribution of 10 per cent of the
project cost. In the case of beneficiaries belonging to SC/ST and borrowers
from other weaker sections, etc., the beneficiary's contribution is 5 per cent
of the project cost.

• Banks will sanction loan for the balance of the project cost (90% or 95% as
the case may be). After the sanction of the credit by the Bank and the
beneficiary has undergone EDP training, eligible amount of margin money
will be kept in term deposit for three years in the account of the borrower at
the leading bank branch, which will be credited to the borrower's loan
account after a period of two years from the date of first disbursement of
loan.

• The permissible margin money assistance is kept at a higher level as
compared to PMRY and REGP.

=CENTRAL PUBLIC SECTOR ENTERPRISES=

The pre-independence, Indian economy was basically agrarian with a weak
industrial base, low level of saving (and investment) and near absence of
infrastructure facilities. India adopted a mixed economy framework soon after
independence, which allowed for the role of both the public sector and the private
sector. Consequent to the Second Five Year Plan, in particular, public sector
enterprises were established in the different sectors of industry, power and energy,
transportation, mining, etc.

===Public Enterprises Survey===

The first consolidated report on the working of Central Public Sector Enterprises
(CPSEs) was laid in the Parliament in 1961. The latest Public Enterprises Survey
(2008-09) is the 49th in the series that was laid in the Parliament on 25 February
2010. There has been an appreciable growth in the investment in the CPSEs over
the years. The investment of Rs.81 crores in 21 CPSEs during 1956 has gone up to `
5,28,951 crores (in 246 CPSEs) as on 31.3.2009. Investment in these CPSEs increased
by Rs.73584 crores in 2008-09 over 2007-08 registering a growth of 16.16 per cent.

All the CPSEs, moreover, provided direct employment to about 15.35 million
people as on 31st. March, 2009. The CPSEs have been making substantial
contribution to Government through payment of dividend, interests payments,
corporate taxes and excise duties, Contribution to the Central Exchequer by CPSEs
through these avenues amounted to Rs.1,51,728 crores in 2008-09. The total turnover
of the 213 operating CPSEs, on the other hand, during 2008-09 stood at Rs.12,63,405
crores compared to Rs.10,94,484 crores in the previous year, showing a growth of
15.43 per cent.

Table below provides an overview of the performance of CPSEs since 1991.

==Table begins== 

TABLE 4: PERFORMANCE OF CENTRAL PUBLIC SECTOR ENTERPRISES
(1991-92 to 2008-09)

(Rs.in crore)

Year No. of Turnover/ PBIT Net Prov. Dividend Contribution Gross
operating Operating Profit for Payment to Central Internal
CPSEs Income Tax Exchequer Resource
Generation

1991-92 237 1,33,906 13,675 2,356 1,647 687 19,951 12,943

1992-93 239 1,47,266 15,957 3,271 1,805 792 22,449 14,792

1993-94 240 1,58,049 18,556 4,545 2,110 1,028 22,988 16,676

1994-95 241 1,87,355 22,630 7,187 2,581 1,436 27,472 19,992

1995-96 239 2,26,919 27,587 9,574 4,047 2,205 30,878 24,198

1996-97 236 2,60,735 30,915 10,186 5,192 2,836 39,009 25,554

1997-98 236 2,76,002 37,206 13,582 5,634 3,609 42,289 31,192

1998-99 235 3,10,179 39,727 13,203 6,499 4,932 46,934 31,302

1999-00 232 3,89,199 42,270 14,331 7,706 5,455 56,157 35,933

2000-01 234 4,58,237 48,767 15,653 9,314 8,260 61,037 37,811

2001-02 231 4,47,529 63,190 25,978 12,255 8,068 62,866 52,544

2002-03 227 5,35,165 73,374 32,399 17,432 13,768 81,867 54,273

2003-04 230 5,87,052 99,053 53,084 22,134 15,288 89,035 75,409

2004-05 227 7,44,307 1,09,494 64,963 21,662 20,718 1,10,604 83,863

2005-06 226 8,37,295 1,17,614 69,536 24,370 22,886 1,25,456 85,557

2006-07 217 9,64,890 1,42,888 81,055 34,352 26,819 1,48,789 96,202

2007-08 214 10,94,484 1,54,253 81,314 40,739 28,081 1,65,994 99,861

2008-09 213 12,63,405 1,58,258 84,228 33,700 25,493 1,51,728 1,10,860

Growth in 2008- 09 over 2007-08 and over

(-)1 15.43 2.60 3.58 (-) 17.28 (-) 9.22 (-) 8.59 11.36

1991-92 (-)24 843.50 1057.28 3475.04 1946.14 3610.17 696.43 756.52
(per cent)

Source : Public Enterprise Survey, 2008-09 and earlier issues

==Table ends== 

The MoU system in CPSEs was introduced in 1986. The main purpose of the
MoU system is to ensure a level playing field to public sector enterprises vis-a-vis
the private corporate sector. MoU system in CPSEs is a mutually negotiated
agreement between the management of the CPSE and the concerned administrative
Ministry/Department of Government of India. Under this agreement, the
performance of the enterprise is evaluated based on the targets set out at the
beginning of the year. 

The targets comprise both financial and non-financial
parameters having equal weight (50 per cent each). Based on the recommendations
of the Second Pay Revision Committee, the Performance Related Pay (PRP) payable
to executives in CPSEs, in the case of profit making CPSEs, will be linked to the
performance of the CPSEs as evaluated under the MoU system. While only 4 CPSEs
signed MoU during 1987-88 the number went up to 202 CPSEs who signed MoUs
in 2010-11.

==DELEGATION OF ENHANCED POWERS TO CPSES==

===Maharatna Scheme===

The Government introduced the Maharatna scheme in December, 2009 with the
objective to delegate enhanced powers to the Boards of identified large sizes
Navratna CPSEs to facilitate further expansion of their operations, both in domestic
as well as global markets. The Maharatna CPSEs in addition to having Navratna
powers, have been delegated additional powers in the area of joint ventures/
subsidiaries and human resources development. The Maharatna CPSEs accordingly
can invest Rs.5000 crores in one project (Rs.1,000 crores for Navartna CPSEs and create
below Board level posts upto E-9 level (E-6 for Navratna CPSEs). The Government
has currently conferred Maharatna status to 4 CPSEs namely, (i) Indian Oil
Corporation Limited, (ii) NTPC Limited. (iii) Oil and Natural Gas Corporation
Limited and (iv) Steel Authority of India Limited, in May, 2010.

===Navratna Scheme===

The Government had introduced the Navratna Scheme in 1997 in order to identify
CPSEs that enjoy comparative advantages in their respective sectors, and to support
them in their drive to become global giants. The Navratna CPSEs have been given
enhanced autonomy and delegation of powers to incur capital expenditure to enter
into technology joint ventures/strategic alliances, to effect organizational
restructuring, to create and wind-up posts up to Board level and to raise capital
from domestic and international markets. Restructuring of Board by inducting at
least 4 non-official Directors is a pre-condition for exercise of the enhanced powers.
Presently there are 15 Navratna CPSEs viz. (i) Bharat Electronics Limited, (ii) Bharat
Heavy Electricals Limited, (iii) Bharat Petroleum Corporation Limited, (iv) Coal
India Limited, (v) GAIL (India) Limited, (vi) Hindustan Aeronautics Limited, (vii)
Hindustan Petroleum Corporation Limited, (viii) Mahanagar Telephone Nigam
Limited, (ix) National Aluminium Company Limited (x) NMDC Limited (xi) Oil
India Limited, (xii) Power Finance Corporation Limited, (xiii) Power Grid
Corporation of India Limited, (xiv) Rural Electrification Corporation of India Limited
and (xv) Shipping Corporation of India Limited.

===Miniratna Scheme===

The Government had introduced the Miniratna scheme in 1997 in pursuance of the
policy objective to make the public sector more efficient and competitive and to
grant enhanced autonomy and delegation of powers to the profit making public
sector enterprises. The enhanced powers given to Miniratna CPSEs include the
power to (i) incur capital expenditure, (ii) enter into joint ventures, (iii) set up
technological and strategic alliances and (iv) formulate schemes of human resources
management. The administrative Ministries are empowered to declare a CPSE as a
Miniratna if it fulfils the eligibility conditions. Presently, there are 61 Miniratna
CPSEs (47 category-I and 14 category-II).

==Board for Reconstruction of Public Sector Enterprises (BRPSE)==

The Government set up the Board for Reconstruction of Public Sector Enterprises
(BRPSE) in December, 2004 to advise the Government, inter alia, on the measures to
restructure/revive both industrial and non-industrial CPSEs. The Board comprises
a part time Chairman in the rank of Minister of State, three part-time Non-Official
Members and three part-time Official Members including Secretary, Department of
Expenditure, Secretary, Department of Disinvestment and Secretary, Department
of Public Enterprises. In addition, Chairman, Public Enterprises Selection Board,
Chairman, Standing Conference of Public Enterprises and Chairman, Oil and Natural
Gas Corporation Limited are permanent invitees to the meetings of BRPSE.

Secretaries to the Government in the Adminstrative Ministry/Department concerned
with the CPSE under consideration by the Board are Special Invitees. There is a
full-time Secretary for BRPSE in the level / rank of Additional Secretary to the
Government of India. The Board is located in the Department of Public Enterprises
(DPE). The DPE provides necessary secretarial assistance to the Board.

For the purposes of making reference to BRPSE, a company is considered sick
if it has accumulated losses in any financial year equal to 50 per cent or more of its
average net worth during 4 years immediately preceding such financial year and/
or a company which is a sick company within the meaning of Sick Industrial
Companies (Special Provisions) Act, 1985 (SICA). The concerned administrative
Ministries/ Departments are required to send proposals of their CPSEs identified
as sick for consideration of BRPSE. 

Other loss making CPSEs may be considered by
the Board either suo moto or upon reference by the administrative Ministry if it is
of the opinion that revival/restructuring is necessary for checking the incipient
sickness (incurring loss for two consecutive years) and making the CPSE profitable,
keeping the industry specific business environment in view. The Board is expected
to make its recommendations within 2 months of the date of receipt of the complete
proposal from the administrative Ministry/Department.

===Corporate Social Responsibility in CPSEs===

The Department of Public Enterprises (DPE), has recently issued a comprehensive
"Guidelines on Corporate Social Responsibility for Central Public Sector Enterprises".
Corporate Social Responsibility (CSR) is a company's Commitment to operate in an
economically, socially and environmentally sustainable manner, while recognizing
the interests of its stake holders. This commitment is beyond statutory requirements.
CSR is, therefore, closely linked with the practice of Sustainable Development. CSR
extends beyond philanthropic activities and reaches out to integration of social and
business goals. Approach to CSR planning, on the other hand, implies a shift from
an ad-hoc charity to a long-term sustainable approach. The long-term CSR Plan has
to match with the long term Business Plan of the CPSE. This may be, furthermore,
broken down into medium term and short term plans.
===Permanent Machinery of Arbitration===
The Permanent Machinery of Arbitration (PMA) was set up in the Department of
Public Enterprises (DPE) in 1989 for resolving commercial disputes (except taxation
and matters relating to Indian Railways) between CPSEs inter-se as well as between
a CPSE and a Central Government Department/Ministry, Banks, Port Trusts
expeditiously out of Court. The disputes are required to be referred first to Secretary,
DPE, who forwards the cases to the Arbitrator for resolution of disputes. The
Arbitrator of the PMA is a Joint Secretary and Legal Adviser in the Ministry of Law
and is appointed by the Law Secretary. The Arbitration Act, 1996 or any other law is
not applicable in the case of PMA. Award of the Arbitrator may, however, be
challenged before the Law Secretary whose decision is final and binding upon the
parties. The matter in dispute has to be presented/defended only by the
representatives of the parties, and not by any lawyer or outsiders.

=STEEL=

India was the 4th largest crude steel producing country in the world in 2010. The
crude steel production in the country during 2010-11 (Provisional) was 69.57 million
tonnes (mt) as compared to the 58.44 million tonnes mt in 2009-10, a growth of
5.7%.

The production of Finished (Carbon) Steel during the period 2004-05 to 2010-
11 is as under :

==Table begins== 

Year Crude steel production in India (mt)

2004-05 43.44

2005-06 46.46

2006-07 50.82

2007-08 53.86

2008-09 58.44

2009-10 65.84

2010-11 (Provisional) 69.57

Source : Joint Plant Committee (JPC).

Production For Sale of Total Finished Steel (Non-Alloy+Alloy)

(in million tonnes)

Item 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 (Prov.)

Main Producers 15.82 16.41 17.61 18.02 17.22 18.04 18.28

% change * 2.9 3.7 7.3 2.3 -4.4 4.8 1.3

Majors and Others 31.04 34.81 40.04 43.33 46.22 51.09 57.46

% change* 11.0 12.1 15.0 8.2 6.7 10.5 12.5

Less: IPT/Own consumption 3.35 4.66 5.13 5.28 6.28 8.51 9.73

Total 43.51 46.56 52.52 56.07 57.16 60.62 66.01

Source : Joint Plant Committee (JPC); * over last year

==Table ends== 

==Sponge Iron==

The sponge iron industry had been specially promoted so as to provide an alternative
to steel melting scrap which was increasingly becoming scarce. Today, India is the
largest producer of sponge iron in the world. The production of sponge iron during
the period 2004-05 to 2010-11 (Provisional) is as under:
==Table begins== 
Year Sponge Iron production in India (mt)

2004-05 12.54

2005-06 14.82

2006-07 18.35

2007-08 20.38

2008-09 21.09

2009-10 24.33

2010-11 (Provisional) 26.71

Source : Joint Plant Committee (JPC)

==Table ends== 

==Import and Export==

In India import and export of all items of iron and steel are freely allowed. Exports
of high-grade iron ore, chrome ore and manganese ore are made through designated
canalizing agencies subject to the ceiling imposed by the Government.

''' (i) Imports : ''' Though the country’s production of iron and steel is sufficient to meet
the domestic demand, some quantity of steel is always needed to be imported
specially those grades and qualities which are required in small quantities and
therefore, do not justify setting up of production capacities. Additionally, a part of
imports is also to supplement domestic production in case of a demand-supply
mismatch. Typical items in the Indian import basket include hot rolled coils, cold
rolled coils, semis and steel scrap. Import of total finished steel (non-alloy + alloy)
during 2010-11 (provisional) was 6.79 mt compared to the 7.38 mt in 2009-10, a
decline of 7.9%. Also, India has turned into a net importer of total finished steel
since 2007-08.

''' (ii) Exports : ''' Value addition in the Indian export basket has been a major trend
with the export basket consisting primarily of hot rolled coils, cold rolled coils,
colour coated sheets, GP/GC sheets. Pig iron is also being exported. Export of total
finished steel (non-alloy +alloy) during 2010-11 (provisional) was 3.46 mt compared
to the 3.25 mt in 2009-10, a growth of 6.5%.

==Research and Development (RS.&D) in Iron and Steel sector==

Research and Development (RS.&D) in Iron & Steel industry is carried out mainly
by the steel plants, research laboratories and academic institutions. Annually, about
Rs.200.00 crore is spent in RS.&D activities by the Iron & steel which works out to
approx 0.2% of the total turnover of the Steel Companies as against 1-2% of the
international steel companies.

In order to encourage RS.&D activities in iron and steel sector, Ministry of Steel
is providing financial assistance under the following two schemes :

(A) Financial assistance from Steel Development Fund (SDF) under the
mechanism of Empowered Committee (EC)

Government of India had reviewed the situation in 1997-98 and decided to invest
up to Rs.150 crores per annum from the interest accrual from Steel Developments
Steel (SDF) to supplement Research Development activities in the iron & steel sector
and allied sector. Accordingly an Empowered Committee (EC) was set up in 1998
under the chairmanship of Secretary (Steel) and members comprising
representatives of major steel producers and other experts in the field to approve
and review RS.&D products.

Since inception (1998-99), the EC has approved 68 RS.&D projects costing
Rs.544.34 crores with SDF assistance of Rs.263.48 crores. Out of 68 RS.&D projects, 35
projects have been completed yielding benefits to the industries.

(B) Financial assistance from Government Budgetary Support (GBS) under the
mechanism of Project Approval and Monitoring Committee (PAMC)
Under this scheme RS.&D project proposals in three broad areas namely :

(i) development of innovative/path breaking technologies (ii) improvement of
quality of steel and (iii) beneficiation of raw materials in the Iron and Steel Sector
are being proposed. So far 8 RS.&D projects have been approved costing `143.87
crores with Government Budgetary Support of Rs.111.11 crores.

==Energy and Environment Management==

National CDM Authority has granted host country approval to 158 projects
submitted. Ministry of Steel (Technical Wing) provides the technical input to the
NCDMA. The projects once approved by the Executive Board at UNFCCC, will
help in reducing green house gas emission to considerable extent.

==Indian Steel Industry in 2010-11==

Helped to a significant extent by the well-designed back-to-back policy stimulus
packages of the Government of India and a relatively stable economic foundation
compared to many other nations, the Indian steel industry reinforced its performance
during 2001-11, buoyed by strong growth trends in the Indian economy and the
major steel consuming sectors.

==Table begins== 

Item Indian steel scene: 2010-11*

Qty (mt) % change over

2009-10

Total Finished Steel

Production for sale 66.01 8.9

Import 6.79 (-)7.9

Export 3.46 6.5

Consumption 65.61 10.6

Crude steel

Production 69.57 5.7

Capacity Utilisation (%) 89 -

Source : Joint Plant Committee (JPC). * = provisional

==Table ends== 

==Current Status==

The following is a status report on the performance of Indian steel industry (in
terms of total finished steel) during April-August 2011, based on provisional data
released by JPC. It is also to be noted that all growth comparisons are with regard to
same period of last year.

==Table begins== 

Total Finished Steel Indian steel scene: April-June 2011 (Prov.)

(alloy+non-alloy) Qty (mt) % change*

Production of sale 29.07 9.9

Import 2.27 (-)44.9

Export 1.82 56.7

Consumption 28.06 1.3

Source : Joint Plant Committee (JPC), * over same period of last year

==Table ends== 

=FERTILIZERS=

The rapid increase in the population of the country is the main reason for the growing
demand of agricultural products. As the demand of agriculture product is increasing
over the decades, so is the demand for nutrients to support the plant growth. The
total food grain production of the country has increased from 199.44 million tones
in the year 1996-97 to 235.88 million tones in 2010-11. On the one side the population
of India is increasing, on the other hand the total area under cultivation in India
remains stagnant at around 141 million hectares for last one decade which may get
further reduced due to urbanization and industrialization. Thus, to meet the future
food requirement, increasing cultivable area under irrigation and integrated nutrient
and pest management is the only way out.
India today is the third largest producer of nitrogenous fertilizers in the world,
only behind China and USA. At present, there are 56 large size fertilizer units in the
country manufacturing a wide range of nitrogenous, phosphatic and complex
fertilizers. Of these, 30 (as on date 29 are functioning) units produce urea, 21 units
produce DAP and complex fertilizers, 5 units produce low analysis strength
nitrogenous fertilizers. 

There are 9 units that manufacture Ammonium Sulphate as
by-product. Besides, there are about 72 small and medium scale units in operation
producing single super phosphate (SSP). The total installed capacity of fertilizer
production, which was 119.60 LMT of nitrogen and 53.60 LMT of phosphate as on
31.03.2004, has marginally increased to 120.61 LMT of nitrogen and 56.59 LMT of
phosphate as on 31.03.2011.

The consumption of fertilizers in the country has been showing an appreciable
growth in last few years. The total consumption of chemical fertilizers in nutrient
terms has increased from 6.06 million tones in 1981-82 to 24.91 million tones in 208-
09 and 26.49 million tones in 2009-10. The average consumption of 135.27 kgs per
hectare in the country however, is much below as compared to many other
developing countries. The consumption of fertilizers needs to be further increased
to meet our increasing requirement of food in the country. Along with increase in
consumption, there is a need to balance the use of nutrients with adequate application
of secondary and micro nutrients.

The consumption, indigenous production and imports of fertilizers in terms
of fertilizer nutrients, (NPK) during the period 1998-99 to 2010-2011 are given below :

==Table begins== 

(lakh tonnes)

Year Consumption Production Imports

1998-1999 167.98 136.21 31.45

1999-2000 180.70 142.89 40.75

2000-01 167.02 147.05 20.91

2001-02 175.60 146.28 23.99

2002-03 160.94 144.40 16.74

2003-04 167.98 142.65 20.18

2004-05 183.99 154.05 27.50

2005-06 203.40 155.75 52.53

2006-07 216.52 160.95 60.80

2007-08 225.70 147.06 75.83

2008-09 249.09 143.34 101.51

2009-10 264.86 162.21 91.47

20010-11 N.A. 163.82 123.63

==Table ends==
 
In the context of the Nation's Food security, the declining response of fertilizer
to agricultural productivity is a matter of concern. To ensure balanced application
of fertilizers, the Government introduced the Nutrient Based Subsidy (NBS) Policy
w.e.f. 1.4.2010 for decontrolled Phosphatic and Potassic (P&K) fertilizers (w.e.f.
1.5.2010 for SSP). This policy continues during 2011-12. An inter-Ministerial
Committee recommends the rates of subsidy on the nutrients of 'N', 'P', 'K' & 'S'
contained in the P &K fertilizers covered under the scheme. 

The Committee also
recommends the new fertilizers to be introduced into the scheme. As on date, 22
grades of P&K fertilizers namely, Di-Ammonium Phosphate (DAP) Lite, Muriate
of Potash (MOP), 15 grades of NPKS complex fertilizes, Mono Ammonium
Phosphate (MAP), Triple Super Phosphate (TSP), Ammonium Sulphate (AS) and
Single Super Phosphate (SSP) are covered under the subsidy scheme. As per the
NBS, any variant of fertilizers mentioned above with secondary and micronutrients
is also eligible for subsidy.

Distribution and movement of the fertilizers is monitored through the web
based Fertilizer Monitoring System. 50% of Urea and 20% of the decontrolled
fertilizers is covered under the movement control under Essential Commodities
Act 1956. While MRP of Urea is fixed by the Government, MRP of decontrolled
fertilizers is left open to be fixed by the manufacturers/marketers of the fertilizers.
Revival of closed unit of FCIL and HFCL : In order to examine the possibility to
revive closed units, Government evaluated all investment options for revival of the
closed units of FCIL/HFCL and various financial models for revival were considered.
Government has approved the proposal to the financial models suggested by
Department of Fertilizers with the stipulation that BIFR proceedings be expedited
and thereafter, the matter including changes, if any, required in the bid parameters
may be examined further.

==PUBLIC SECTOR UNDERTAKINGS==

In addition to two closed Companies namely FCIL & HFCL, there are seven public
sector undertaking and one cooperative functioning under the administrative control
of this Department. Company wise details are given below :

''' National Fertilizers Limited (NFL) ''' has, at present, five operating units producing
Urea, viz. Nangal, Bhatinda, Panipat and Vijaipur I & II (two units). The total installed
capacity of NFL is 14.86 LMIT of Nitrogen. During 2010-11 the company has
produced 15.55 LMT of Urea.

''' Rashtriya Chemicals and Fertilizers Limited (RCF) ''' is operating five fertilizer
plants at Trombay setup during the period from October 1965 to July 1982 and a
large gas based fertilizer plant at Thal which started commercial production in 1985.

The installed capacity of the RCF plants is 10.57 LMT of Nitrogen and 1.20 LMT of
Phosphate. During 2010-11, the production of Nitrogen and Phosphate was 10.76
LMT and 98.5 LMT, respectively. The company produces certain industrial chemicals
like Methenol, Concentrated Nitirc Acid, Methylamine, Ammonium Bicarbonate
Sodium Nitrate, Dimethylacetamide, Dimethylformamide, etc. too.
Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) has been constituted
into a new company from 1 April 2002 after hiving off the Namrup units from
HFCL. A major revamp of the units of BVFCL was undertaken at an approved cost
of Rs.509.90 crores. Unit I and III of BVFCL have been commissioned in March 2002
after their revamp. Unit II was commissioned in November 2005. Unit II was
produced 39.6 MT of Urea whereas Unit III has produced 91.5 LMT of Urea during
2010-11.

FCI-Aravali Gypsum and Mineral India Limited (FAGMIL) (Jodhpur) has been
incorporated as a PSU on 14th February, 2003 after hiving off the Jodhpur Mining
Organization (JMO) of Fertilizer Corporation of India (FCIL). Apart from taking
over the JMO which is engaged in mining of gypsum in four districts of the State of
Rajasthan, the new company's objectives include extending the mining activities in
other minerals available in the State of Rajasthan. During 2001-11 the company has
produced 8.24 LMT of gypsum.

''' The Fertilizers and Chemicals Travancore Limited (FACT)-Udyogmandal
(Kerala) ''' has three operating units, two at Udyogamandal and one at Cochin. Besides
fertilizers, the company is engaged in the manufacture of petro chemicals, with the
commissioning of a caprolactam plant in October 1990. FACT Engineering and
Design Organization (PEDO), a division of the company, is engaged in design,
engineering, procurement, supervision of construction and commissioning of
Fertilizer/chemical plant. FACT is also having one fabrication unit known as FACT
Engineering Work (FEW). The annual installed capacity of FACT is 1.79 LMT of
nitrogen and 1.33 LMT of phosphate. During 2010-11, the company has produced
1.70 LMT of Nitrogen and 1.29 LMT of Phosphate.

''' Madras Fertilizers Limited-(MFL) ''' is a joint venture between the Government of
India and the National Iranian Oil Company with the rest as public equity holding.
At present, GOI holds Rs.95.85 crores (59.50%), NIOC holds Rs.41.52 crores (25.77%)
and public hold Rs.23.73 crores (14.73%) of equity. The annual installed capacity of

MFL is 3.47 LMT of Ammonia, 4.87 LMTA of Urea and 8.4 LOMT of NPK. During
the year 2010-11 the company has produced 4.78 LMT of Urea.
Project & Development India Limited (PDIL) : (NOIDA, UP), formerly known as
Fertilizer (Planning and Development) India Limited, is engaged in design
engineering, procurement and supervision of construction/commissioning of
fertilizer and allied chemical plants. The company has played a pioneering role in
developing the know-how for manufacture of catalysts in India. During the year
2010-11 the company has posted a net profit of Rs.31.78 crores.

==COOPERAT[IV]E SECTOR==

KRIBHCO has a gas-based ammonia-urea plant at Hazira in Gujarat with a capacity
to produce 7.95 LMT in terms of nitrogen per annum. During the year 2010-11 the
society has produced 18.40 LMT of urea.

=CHEMICALAND PETROCHEMICAL INDUSTRIES=

==Chemical Industry==

The chemical industry, which includes basic chemicals and its products,
petrochemicals, fertilizers, paints and varnishes, gases, soaps, perfumes, toiletries
and pharmaceuticals is one of the most diversified of all industrial sector covering
thousands of commercial products. It plays an important role in the overall
development of Indian economy. It contributes about 3 per cent in the GDP of the
country.

==Chemical Sector-Production Trends==
Chemical Industry is one of the oldest industries in India, which contributes
significantly towards industrial and economic growth of the nation. It provides
valuable chemicals for various end products such as textiles, paper, paints, varnishes,
leather etc. which are required in almost all walks of life. The Indian Chemical
Industry forms the backbone of the industrial and agricultural development of India
and provides building blocks for downstream industries.

The Indian Chemical Industry comprises both small and large-scale units. The
fiscal concessions granted to the small sector in mid-eighties led to the establishment
of large number of units in the Small Scale Industries (SSI) sector. Currently, the
Indian Chemical Industry is in the midst of a major restructuring and consolidation
phase. With the shift in emphasis on product innovation, brand building and
environmental friendliness, this Industry is increasingly moving towards greater
customer orientation. Even though India enjoys an abundant supply of basic raw
materials, it will have to build upon technical services and marketing capabilities
to face global competition and increase its share of exports.

As the Indian economy was a protected economy till the early nineties, very
little large-scale RS.&D was undertaken by the Chemical industry to create intellectual
property. The product patent regime has come in force w.e.f. January 2005. The
units have to be more innovative with State-of-art RS.&D establishments. This will
help in development of newer molecules. With a number of scientific institutions,
the country's strength lies in its large pool of highly trained scientific manpower.
India produces a large number of fine and specialty chemicals, which have
very specific uses and find wide usage as food additives, pigments, polymer
additives and anti-oxidants in the rubber industry, etc.

In the Chemical Sector, 100 per cent FDI is permissible. Manufacture of most
chemical products, inter-alia covering organic/ inorganic, dyestuffs and pesticides
is delicensed. The entrepreneurs need to submit an Industrial Entrepreneurs'
Memorandum (IEM) to the Department of Industrial Policy and Promotion provided
no locational angle is applicable. Only the following items are covered in the
compulsory licensing list because of their hazardous nature:

Hydrocyanic acid and its derivatives

Phosgene and its derivatives

Isocynates and di-isocynates of hydrocarbons.

The Dyestuff sector is one of the important segments of the chemical industry
in India, having forward and backward linkages with a variety of sectors like textiles,
leather, paper, plastics, printing inks and foodstuffs. The textile industry accounts
for the largest consumption of dyestuffs at nearly 70 per cent. From being importers
and distributors in the 1950s, it has now emerged as a very strong industry and a
major foreign exchange earner. India has emerged as a global supplier of dyestuffs
and dye intermediates, particularly for reactive, acid, vat and direct dyes. India
accounts for approximately 7 per cent of the world production.

Chemical fertilizers and pesticides played an important role in the 'Green
Revolution' during the 1960s and 1970s. Indian exports of agrochemicals have shown
an impressive growth over the last five years. The key export destination markets
are USA, U.K., France, Netherlands, Belgium, Spain, South Africa, Bangladesh,
Malayasia and Singapore. India is one of the most dynamic generic pesticide
manufacturers in the world with more than 60 technical grade pesticides being
manufactured indigenously by 125 producers consisting of large and medium scale
enterprises (including about 10 multinational companies) and more than 500
pesticide formulators spread over the country.

The actual production of major chemicals during the years 2005-06 to 2009-10
and up to September for the year 2010-11 is exhibited in Table-1
==Table begins== 
Table 1—Production of Selected Major Chemicals

(Figures in '000/MT)

Sector PRODUCTION Growth (%)

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2009-10/ CARG

up to 2008-09 2009-10

Sept. 06-06

Alkali Chemicals 5475 5269 5443 5442 5602 2890 2.94 0.58

Inorganic Chemicals 544 602 609 512 518 281 -12.65 -1.2

Organic Chemicals 1545 1545 1552 1254 1280 649 -19.20 -4.6

Pesticides (Tech.) 82 85 83 85 82 44 -3.53 0.0

Dyes & Dyestuffs 30 33 44 32 42 24 31.25 8.8

Total Major

Chemicals 7676 7534 7731 7325 7524 3888 2.70 -0.5

CARG : Compound Annual rate of Growth

==Table ends== 

==PUBLIC SECTOR UNDERTAKINGS==

===Hindustan Organic Chemicals Limited===

Hindustan Organic Chemicals Limited (HOCL) was incorported in December, 1960
for setting up manufacturing capacities for chemicals/ intermediates which are
required for production of dyes, dye-intermediates, rubber chemicals, pesticides,
drugs and pharmaceuticals, laminates etc. It was expected that indigenous
manufacture of these chemicals and intermediates would give impetus to
downstream industry resulting in setting up of chemical units and achieving selfsufficiency
for the country in this area. The objective of setting up HOCL has been
achieved as over the years, more than 500 units based on HOCL's products have
been set up all over the country which have not only helped in achieving self
sufficiency but have also entered the international market by exporting chemicals,
dyes and drugs over the last many years.

The products manufactures by HOCL include phenol, acetone, formaldehyde,
nitrobenzene, aniline, nitro toluene, sulphuric acid/oleum, acetanilide and hydrogen
peroxide. The raw materials used by HOCL are benzene, toluene, LPG, methoanol,
naphtha and sulphur, most of which come from Petroleum Refineries.

HOCL has two units at Rasayani (Maharashtra) and Kochi (Kerala). It also
has a subsidiary company, M/s Hindustan Fluorocarbons Limited located at
Rudraram (Andhra Pradesh) for manufacture of poly-tetra-fluoro-ethylene (PTFE),
a high-technology engineering plastic.

As against a total installed capacity of 4,02,725 MT, (Rasayani Unit, 2,39,110
MT and Kochi Unit 1,63,615 MT) the operating capacity of Rasayani Unit is 1,42,000
MT, which is mainly because of non operating installed capacity of Aniline Plant I,
Nitrobenzene Plant I, Mono-chlorobenzene and Nitro-chlorobenzene Plant I, Monochlorobenzene
Plant I, Monochlorobenzene and Nitro-chlorobenzene plants. As part
of the physical restructuring of the Rasayani unit, Caustic Soda Chlorine plant
production has been resumed since 15th September, 2008 thereby increasing the
operating capacity to 1,78,000 MT. The other product line like Monochlorobenzene
and Nitro-chlorobenzene would be considered for start up as and when this product
line becomes financially viable.

The Kochi Unit has been achieving more than 100 per cent capacity utilization
due to the measures taken. HOCL management has already undertaken the
implementation of the same. HFL is implementing the Clean Development
Mechnism (CDM) Project to reduce greenhouse gas emissions through destruction
of HFC-23 gas in a proposed thermal oxidation system. HFC - 23 is generated as a
waste gas during the process of manufacture of HCFC 22 for which HFL has installed
capacity of 1265 MTPA. The project is being implemented by SRF Ltd in technological
collaboration with SGL Carbon on a turnkey basis. The project has been registered
with United Nations Framework Convention on Climate Change (UNFCCC).

Destruction of stored HFC-23 through thermal oxidation process will generate CERs.
The share of HFL in the CERs will generate annual revenue of about Rs.19.77 crores
per annum over the next five years.

===HINDUSTAN INSECTICIDES LIMITED===

Hindustan Insecticides Limited (HIL) was incorporated in 1954 and set up its factory
in Delhi for manufacturing DDT to meet the demand of National Malaria Eradication
Programme (NMEP) presently known as National Vector Borne Disease Control
Programme (NVBDCP) launched by Government of India. This plant went into
production in April 1955. In 1957, the company set up their second factory at
Udyogamandal, near Cochin for the manufacture of DDT. The company set up a
plant at Rasayani, Maharashtra in 1977 for the manufacture of Malathion, an
insecticide used in public health. 

Another DDT plant was set up at Rasayani in
1983. DDT is even today the most effective tool to fight dreaded diseases like Malaria,
Dengue, Kala Azar, Japanese Encephalitis etc. The company has contributed
immensely in keeping these diseases under check in India. HIL is today the largest
producer of DDT in the world. The only other producer of DDT is China.
With a view to make quality pesticides available to farmers as part of the
Green Revolution, HIL has put up manufacturing facilities for various agro pesticides
at Udyogamandal, Kerala and Rasayani, Maharashtra. The company today
manufactures technicals such as Endosulfan, Dicofol, Malathion Butachlor, DDVP,
Monocrotophos, Mancozeb etc. and around 27 agro formulations at its plants at
Udyogamandal (Kerala), Rasayani (Maharashtra) and Bathinda (Punjab).

The company has a well-equipped Central RS.&D Complex at Udyog Vihar,
Gurgaon, Haryana along with an experimental farm. In an effort to achieve
international standard for its products and systems, all the Units of the Company
took an initiative and successfully received ISO 9001-2000 certificate. Rasayani Unit
has also been accredited with ISO:14000 and ISO 18001-2007.

The company also has a marketing tie up with M/s Rashtriya Chemicals and
Fertilizers Limited and M/s. Brahmaputra Valley Fertilizer Corporation Limited
for increasing sales turnover.

The company has initiated export of DDT 75 per cent and succeeded in getting
orders from Government of Mozambique, Gambia, Eritrea, and Namibia competing
in the global market. The company is also actively pursuing procurement of orders
in other countries, mainly in sub-Saharan Africa, which are more prone to malaria.
In addition to DDT 75 per cent WDP, the company is also exporting Malathion
Technical, Endosulfan Technical and Formulation to various countries in Europe,
Africa and Latin America.

=PETROCHEMICAL SECTOR=

==National Policy on Petrochemicals==

The Government approved the National Policy on Petrochemicals on 12 April 2007.

The National Policy on Petrochemicals aims to:

a) Increase investments in the sector (both upstream and downstream) and
capture a slice of the resurgent Asian demand in polymers and downstream
processing through additions in capacity and production by ensuring
availability of raw materials at internationally competitive prices, creating
quality infrastructure and other facilitation to ensure value addition and
increase exports;

b) Increase the domestic demand and per capita consumption of plastics and
synthetic fibres from the present level of 4 kgs and 1.6 kgs, increase the
competitiveness, polymer absorption capacity and value addition in the
domestic downstream plastic processing industry through modernization,
research and development measure and freeing it from structural
constraints;

c) Facilitate investment in the emerging areas of petrochemicals;

d) Achieve environmentally sustainable growth in the petrochemical sector
through innovative methods of plastic waste management, recycling and
development of bio-photogradable polymers and plastics; and

e) Promote Research and Development in Petrochemicals and promote
Human Resource Development.

The progress made so far in respect of the National Policy on Petrochemicals
is as follows:-

• A Standing Committee on Petrochemical Feedstock has been constituted.

• Plastic Development Council under the IDR Act, 1951 has been constituted.

• Inter-Ministerial Expert Committee on Development of Plastics in Thrust
Areas has been constituted.

• National Awards for technology innovations in petrochemicals and
downstream plastic processing industry.

• Setting up of dedicated Plastic Parks to promote a cluster approach in the
areas of development of plastic applications and plastic recycling.

• Setting up of Centre of Excellence in the field of updating products for
new uses, innovative product technology and product design changes,
improvements in the production process to make it more efficient, recycling
process technology, innovative, collective, segregation, cleaning and
development of recycled products, development of biopolymers and
biodegradable polymers etc.

• Promoting the petrochemical sector by way of supporting conferences,
workshops seminars, meetings etc.

• The proposals/schemes are being considered as per the guidelines for
promoting projects under PPP mode:

==Production Trends in Petrochemical Sector==

The petrochemical industry mainly comprises synthetic fibres, polymers, elastomers,
synthetic detergents intermediates and performance plastics. The main sources of
feedstook and fuel for petrochemicals are natural gas and naphtha. Today,
petrochemical products permeate the entire spectrum of daily use item and cover
almost every sphere of life, ranging from clothing, housing, construction, furniture,
automobiles, household items, toys, agriculture, horticulture, irrigation, packaging
to medical appliances.

There are three naphtha based and equal number of gas based cracker
complexes in the country with a combined ethylene annual capacity of 2.9 million
MT. Besides, there are four aromatic complexes also with a combined Xylene capacity
of 2.9 million MT. The actual production of major petrochemicals during the years
2005-06 to 2009-10 and up to September 09 for the year 2010-11 is exhibited in Table
given below.

==Table begins== 

Production of Selected Major Petro Chemicals

(Figures in '000/MT)

Growth (%)

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2009-10/ CARG

up to 2008-09 2009-10

Sept. 06-06

Synthetic Fibres 1906 2250 2524 2343 2601 1362 11.01 8.08

Polymers 4768 5183 5304 5060 4791 2486 -5.32 0.12

Elastomers

(S. Rubber) 110 101 106 96 106 51 10.42 -0.92

Synth. Detergent

Intermediates 556 556 585 552 618 302 11.96 2.68

Pefrormance Plastics 127 133 157 141 172 78 21.99 7.88

Total Major

Petrochemicals 7467 8223 8676 8192 8288 4279 1.15 2.64

CARG : Compound Annual rate of Growth

==Table ends== 

The production of polymers accounted for about 62 per cent of the total
production of major petrochemicals during 2008-09. The domestic capacity of
polymers was 5.72 million MT during 2008-09. With 88.5 per cent capacity utilization,
production of polymers declined annually @ 16 per cent over a period of last five
years (2008-09/2003-04) whereas imports registered an increase of 22.28 per cent
during the corresponding period.

The domestic production capacity of synthetic fibres was 3.49 million MT
during the year 2008-09. With 67 per cent capacity utilization, production of synthetic
fibres at the level of 2.34 million MT was achieved. The exports of synthetic fibres
registered an impressive annual growth at 11.13 per cent during the period 2003-09
as against decline in imports at (-)14.99 per cent during the corresponding period.
Over the years, synthetic fibres have supplemented the natural fibre i.e. cotton.
==AUTONOMOUS INSTITUTIONS==

===Central Institute of Plastics Engineering and Technology (CIPET)===

Central Institute of Plastics Engineering and Technology (CIPET) established in 1968
is an autonomous institute, functioning under the aegis of Department of Chemicals
and Petrochemicals, with its Corporate Office at Chennai. The Institute has 15 Centres
across the country located at Ahmedabad, Amritsar, Aurangabad, Bhopal,
Bhubaneshwar, Chennai, Guwahati, Haldia, Hajipur, Hyderabad, Jaipur, Lucknow,
Mysore, Panipat and Imphal.

CIPET's prime objectives include training of manpower in different disciplines
of Plastics Engineering and Technology and provision of technical support/
constancy services to the plastics and allied industries on various technological
aspects. CIPET has been accredited with ISO 17025 by National Accreditation Board
for Testing and Calibration Laboratories (NABL).

===Institute of Pesticide Formulation Technology (IPFT)===

IPFT located at Gurgaon, Haryana, is a non-profit making organization, registered
under the Societies Registration Act in May 1991, under the Department of Chemicals
and Petrochemicals, Ministry of Chemicals and Fertilizers, Government of India. It
has completed 18 years of operation. The main objective of the Institute of Pesticide
Formulation Technology as given in the Memorandum of Association of the Society
is development and production of the State-of-the art user and environment-friendly
pesticide formulation technology and promotion of efficient application technologies
suiting the existing requirements of the newer formulations. 

IPFT has established a
healthy rapport with the pesticide industry and has been able to successfully transfer
technology for safer, efficient and environment friendly formulations. IPFT consists
of three major divisions and a Pilot Plant. The Institute carries out both in-house
and external projects.

====Objectives of the Institute====

The main objectives of the Institute of Pesticide Formulation Technology as given in
the memorandum of Association of the Society are:

(i) Development and production of state-of-the art user and environment-friendly
pesticide formulation technology.

(ii) Promotion of efficient application technologies suiting the existing
requirements of the newer formulations.

(iii) Information dissemination of safe manufacturing practices, quality assurances,
raw material specification and sources.

(iv) Analytical and consultancy services.

(v) Fostering the improvement in the qualification and usefulness of pesticide
scientists working in the agrochemical area.

(vi) Continuing education through specialized training for pesticide personnel.

=PHARMACEUTICAL SECTOR=

The Indian pharmaceuticals industry has grown from a mere Rs.1,500 crores turnover
in 1980 to approximately Rs.1,00,611 crores in 2009-10 (upto Sept. 09). The country
now ranks 3rd in terms of volume of production (10 per cent of global share) and 14th
largest by value. One reason for lower value share is the lower cost of drugs in India
ranging from 5 per cent to 50 per cent less as compared to developed countries.
Indian pharma industry growth has been propelled by exports which have grown
from Rs.6,256 crores in 1998-99 to Rs.39,821 crores in 2008-09. Indian exports are
destined to various countries around the globe including highly regulated markets
of USA, Europe, Japan and Australia.

==PHARMACEUTICAL POLICY==

The Department of Pharmaceuticals has been exercising Drug Price Control on the
basis of criteria mentioned in 'Modifications in Drug Policy, 1986' annoucned in
September, 1994, which is based on prodcution data of 1990.

As per the direction dated 10.03.2003 of Supreme Court, the draft National
pharmaceutical Policy was prepared by this Department after extensive discussions
with variuos stakeholders, and in line with the National Common Minimum
Programme (NCMP). This Policy was submitted to the Cabinet for its approval.
The Cabinet considered the Policy in its meeting held on11th January, 2007 and
directed that in the first instance be considered by a Group of Minister (GOM).
National List of Essential Medicines (NLEM), 2011 is announced; action will
be taken to regulate the price of the medicines.

==NATIONAL PHARMACEUTICAL PRICING AUTHORITY (NPPA)==

The National Pharmaceutical Pricing Authority (NPPA), an independent body of
experts in the Ministry of Chemicals and Fertilizer, was formed by the Government
of India vide its Resolution published in the Gazette of India No. 159 dated 29.08.97.
The functions of NPPA, inter-alia, include fixation and revision of prices of 74
scheduled bulk drugs (list enclosing at Annexure-I) and formulations containing
any of the scheduled drugs under the Drugs (Prices Control) Order, 1995 (DPCO'95),
as well as monitoring and enforcement of prices.

The price fixation of MRP is done by NPPA as per DPCO provisions and the
formula prescribed in paragraph 7 of DPCO, 95 and the prices of scheduled
formulations are fixed under paragraph 8 and 9 of the said order. The process of
price fixation followed by NPPA is transparent as the same is based on established
guidelines and norms notified in respect of various cost inputs like notified rate of
scheduled bulk drug and notified norms are applied for conversion cost, packing
material cost, packing charges and process loss. The norms are revised annually.

The prices are notified through Gazette Notifications which are also uploaded
on NPPA's website at www.nppaindia.nic.in. As per the DPCO provisions, no one
can sell any scheduled drug/formulation at a price higher than the price fixed by
NPPA/Government. The controlled drugs account for about 20% of the formulation
market. Further, the prices of decontrolled medicines are monitored by NPPA, NPPA
also provides inputs to Government for policy formulation and one other specific
issues concerning affordable medicine to the consumers.

In respect of drugs, not covered under the Drugs (Prices Control) Order, 1995
i.e. non-scheduled drugs, manufacturers fix the prices by themselves without
seeking approval of Government/NPPA. Such prices are normally fixed depending
on various factors like the cost of bulk drugs used in the formulation, cost of
excipients, cost of RS.&D, cost of utilities/packing material, sales promotion costs,
trade margins, quality assurance cost, landed cost of imports etc.

As a part of price monitoring activity, NPPA regularly examines the movement
in prices of non-scheduled formulations. The monthly reports of ORG IMS and the
information furnished by individual manufacturers are utilized for the purpose of
monitoring prices of non-scheduled formulations. Wherever any abnormal prices
increase is noticed, necessary action is taken. The manufacturer is impressed upon
in such cases to bring down the price voluntarily failing which, if justified, action is
initiated under para 10 (b) of the DPCO, 1995. This is an ongoing process.

Based on monitoring of prices of non-scheduled formulation, NPPA has fixed
price in case of 28 formulation packs under para 10 (b) and companies have reduced
price voluntarily in case of 65 formulation packs. Thus in all, prices of 93 packs of
non-scheduled drugs have got reduced as a result of the intervention of NPPA.

A separate Enforcement Division was created during the year 2007-08 to
facilitate suo-motu detection of violation of DPCO, 1995.

Under para 13 of DPCO, the Government is vested with the powers to recover
the overcharged amount. Under this provision Government shall by notice require
the manufacturers, importers or distributors as the case may be to deposit the amount
accrued due to charging of prices higher than those fixed or notified by the
Government under the provisions of Drug (Prices Control) Order, 1987 and under
the provision of this order (DPCO'95).

NPPA is also entrusted with the job of monitoring the availability or drugs
and to identity shortage, if any, and to takes remedial steps to make the drugs
available. NPPA is carrying out this responsibility mainly through monthly field
reports from the State Drugs Controller and other available information. As and
when the reports for shortage of particular drug(s), in any part of the country are
received the concerned company is asked to rush the stock and to make the drugs
available. Generally shortage reported is brand specific. However, in most of the
cases alternate brands are available.
==NATIONAL INSTITUTE OF PHARMACEUTICAL EDUCATION & RESEARCH, (NIPER), MOHALI==
Notional Institute of Pharmaceutical Education & Research, (NIPER), SAS Nagar,
Mohali, Punjab has been set-up as an "Institute of National Importance" under an
Act of Parliament on 26th June 1998. It is an autonomous institute under the aegis
of Department of Pharmaceuticals, Ministry of Chemicals & Fertilizers, Government
of India.

The main objective of the Institute is to nurture and promote quality and
excellence in pharmaceutical eduction and research. NIPER is a member of
Association of Indian Universities and Association of Commonwealth Universities.
NIPER is offering four Masters level programmes and the PhD programme in the
14 streams and is catering to the needs of pharmaceutical industry.

The NIPER laboratories are fully equipped with modern equipments that are
equivalent to the other laboratories set up in the world. All the available facilities
are of international level and standards. A Technology Development Centre has
been set up in the NIPER SAS Nagar.

The WHO accredited National Bio-availability Centre established with support
of Department of Science & Technology, Government of India, is one of the two
centres to conduct bio-availability studies. The Institute has also set up the Good
Laboratory Practices Compliant National Texicology Centre, National Centre of
Pharmacoinformatics, National Centre for Safety Pharmacology and Centre for
Nanotechnology with the support of Dept. of Science & Technology.

The following central facilities provide support to the research groups within
the Institute as well as from outside;

1. Central Instrument Laboratory

2. Computer Centre

3. Library and Information Centre

4. Central Animal Facility

5. National Texicology Centre (GLP compliant)

6. Technology Development Centre

7. National Bio-availability Centre (WHO) accredited)

8. Impurity Profiling & Stability Testing Laboratory

9. Pharmacological & Toxicological Screening Facilities (GLP compliant)'

NIPERA also conducts regular continuing education programmes for academia
and industry in various disciplines and helps the Indian Pharmaceutical Industry
in solving their RS.&D related problems. NIPER has upgraded facilities for achieving
highest level of efficiency in imparting eduction and events.

==SETTING UP OF SIX NEW NATIONAL INSTITUTES OF PARMACEUTICAL==

==EDUCATION & RESEARCH (NIPERS)==

The Union Cabinet has given in principle approval for setting up of six National
Institutes of Pharmaceutical Education and Research (NIPER) at Ahmedabad
(Gujarat), Hyderabad (Andhra Pradesh), Hajipur (Bihar), Kolkata (West Bengal),
Rae Bareli (U.P.) and Guwahati (Assam), in August 2007. With this the Government
has fulfilled the demand of pharmaceutical industry to meet its long drawn demand
of highly skilled trained manpower. This would also help in providing better
healthcare to people in the long run. 

With the opening of six more NIPERs there
would be seven NIPERs in the country. These NIPERs would award Masters &
Doctoral Degrees in different streams of pharmaceutical sciences and would give
more emphasis on RS.&D activities of pharmaceutical industry. These new NIPERs
would be equipped with RS.&D infrastructure of International standards and having
various specializations suited to the needs of the Industry.

=MINERAL RESOURCES IN INDIA=

The classification of reserves/resources of various minerals based on United Nations
Frame work Classification (UNFC) as on 1.4.2005 has been updated. The UNFC
consists of a three dimensional system with the 3 axes :

• Economic Viability

• Feasibility Assessment and

• Geological Assessment

UNFC is a three-digit code based system, wherein the economic viability axis
represent the first digit, the feasibility axis the second digit and the geologic axis
represent the third digit. Each of these three axis have further codes in decreasing
order. The economic viability have three codes i.e. 1 (Economic), 2 (Potentially
economic) and 3 (Intrinsically economic); the feasibility assessment have three
codes i.e. 1 (Feasibility study and mining report), 2 (Pre-feasibility study) and 3
(Geological study) and the geological assessment have four codes. i.e. 1 (Detailed
exploration), 2 (General exploration), 3 (Prospecting) and 4 (Reconnaissance). Thus
the highest category and resources under UNFC system will have the code (111)
and lowest category the code (334). The various terms used in this classification are
as follows.

Total Mineral Resources: Reserve plus Remaining Resource comprise the Total
Mineral Resource.

A. Mineral Reserves: Economically mineable part of Measured and/or Indicated
mineral resource

i) Proved Mineral Reserves (111) and

ii) Probable Mineral Reserves (121) and (122)

B. Mineral Resources: It is the balance of the Total Mineral Resources that have not
been identified as a Mineral Reserve

i) Measured Mineral Resources - (331)

ii) Indicated Mineral Resources - (332)

iii) Inferred Mineral Resources - (333)

iv) Reconnaissance Mineral Resources - (334)

v) Prefeasibility Mineral Resources - (221) and (222)

vi) Feasibility Mineral Resources - (211)

The principal minerals found in the country along with their estimated
reserves/resources are given below:

===BAUXITE===

The Total Resources of Bauxite as per United Nations Framework Classification
(UNFC) in the country are placed at about 3,290 million tonnes as on 1.4.2005. These
resources include 899 million tonnes of Reserves and 2,391 million tonnes of
Remaining resources. Orissa, Andhra Pradesh, Gujarat, Chhattisgarh, Madhya
Pradesh, Jharkhand and Maharashtra are the principal states where bauxite deposits
are located. Major Bauxite deposits are concentrated in the East Coast of Orissa and
Andhra Pradesh.

===CHROMITE===

The total resources of Chromite in the country as per UNFC System as on 1.4.2005
are estimated at 213 million tonnes, comprising 66 million tonnes tonnes reserves
(31 per cent) and 147 million tonnes of remaining resources (69 per cent). In India
95 per cent resources are located in Orissa, mostly in the Sukinda valley in Cuttack
and Jaipur districts and the remaining 5 per cent resources are distributed in Manipur
and Karnataka and meagre quantities in the states of Jharkhand, Maharashtra, Tamil
Nadu and Andhra Pradesh.

===COPPER===

The total resources of copper ore as on 1 April 2005 as per UNFC system are placed
at 1.39 billion tonnes with a metal content of 11,418 thousand tonnes. Of these 369.49
million tonnes with a total metal content of 4383.97 thousand tonnes fall under
Reserves while balance 1.02 billion tonnes with a metal content of 7033.75 thousand
tonnes are ‘Remaining resources’. Rajasthan is credited with the largest resources
of copper ore at 668.5 million tonnes with a metal content of 3982 thousand tonnes
followed by Madhya Pradesh and Jharkhand. Copper resources are also available
in Andhra Pradesh, Gujarat, Haryana, Karnataka, Maharashtra, Meghalaya, Odisha,
Sikkim, Tamil Nadu, Uttarakhand and West Bengal.

===GOLD===

There are three important gold fields in the country, namely, Kolar Gold Field, Kolar
district and Hatti Gold Field in Raichur district (both in Karnataka) and Ramgiri
Gold Field in Anantpur district (Andhra Pradesh). As per UNFC as on 1.4.2005 the
total resources of gold ore (primary) in the country were estimated at 390.29 million
tonnes with a metal content of 490.81 tonnes. Out of these, 19.25 million tonnes
with a metal content of 85.12 tonnes were placed under Reserves category and the
remaining 371.03 million tonnes with a metal content of 405.69 tonnes under
Resources category. The resources include placer-type gold ore in Kerala estimated
at 26.12 million tonnes containing 5.86 tonnes gold metal. Largest resources of gold
ore (primary) are located in Bihar followed by Karanataka, Rajasthan, West Bangal,
Andhra Pradesh Madhya Pradesh, etc. While in terms of metal content. Karnataka
remained on the top followed by Rajasthan, West Bengal, Bihar and Andhra Pradesh.

===IRON ORE===

Haematite and Magnetite are the most important iron ores in India. About 60 per
cent haematite ore deposits are found in the Eastern sector and about 87 per cent
magnetite deposits occur in Southern sector, specially in Karnataka. The total
resources of iron ore as per UNFC are placed at 25,249 million tonnes as on 1.4.2005.
Out of these, the iron ore (haemetite) resources are placed at 14,630 million tonnes
of which 13,916 million tonnes (95 per cent) resources are distributed mainly in
Odisha. Jharkhand, Chhattisgarh, Karnataka and Goa. 

The resources of very high
grade ore are limited and are restricted mainly in Bailadila sector of Chhattisgarh
and to a lesser extent in Bellary-Hospet area of Karnataka and Barajamda sector in
Jharkhand and Odisha. Iron ore (magnetite) resources are placed at 10,619 million
tonnes of which only 59 million tonnes constitute reserves located mainly in Goa,
Rajasthan and Jharkhand. The remaining 10,560 million tonnes (99 per cent),
magnetite resources are under remaining resources category mainly in Karnataka
(74 per cent) and Andhra Pradesh (14 per cent). Other deposits are located in Goa,
Rajasthan, Tamil Nadu, Kerala, Assam, Jharkhand, Nagaland, Meghalaya, Bihar,
Maharashtra and Orissa.

===LEAD-ZINC===

Lead-Zinc resources are located in Rajasthan, Bihar, Maharashtra, Madhya Pradesh,
Andhra Pradesh, Gujarat, Uttarakhand, West Bengal, Odisha, Sikkim, Tamil Nadu
and Meghalaya. The total resources of lead and zinc ores as on 1.4.2005 as per UNFC
are estimated at 522.58 million tonnes with a metal content of 7207 thousand tonnes
of lead metal and 24260 thousand tonnes of zinc metal. Of these, 125.75 million
tonnes with a metal content of 2591 thousand tonnes of lead metal and 11093
thousand tonnes of zinc metal fall under ‘Reserves’ while balance 396.83 million
tonnes are with a metal content of 4617 thousand tonnes lead metal and 13167
thousand tonnes of zinc metal classified as ‘Remaining resources’.

===MANGANESE===

The total resources of manganese ore as per UNFC system as on 1.4.2005 are placed
at 379 million tonnes. Out of these, 138 million tonnes are categorized as Reserves
and the balance 240 million tonnes in the Remaining resources. Main deposits fall
in Orissa, followed by Karnataka, Madhya Pradesh, Maharashtra, Goa and Andhra
Pradesh. Minor occurrences of manganese are in Rajasthan, Gujarat, Jharkhand
and West Bengal.

===NICKEL===

The total resources of Nickel ore as per UNFC system as on 1.4.2005 have been
estimated at 189 million tonnes. About 92 per cent resources i.e. 174.48 million tonnes
are in Odisha and remaining 8 per cent are distributed in Jharkhand, Nagaland and
Karnataka.

===TUNGSTEN===

The total resources of tungsten ore as per UNFC system as on 1.4.2005 have been
estimated at 87.39 million tonnes with a WO3 content of 142094 tonnes. All these
resources are placed under ‘Remaining Resources’ category. The main deposits are
Degana in Nagaur district, Rajasthan. It also occurs in Karnataka, Andhra Pradesh,
Maharashtra, Haryana, West Bengal, Uttarakhand and West Bengal.

===BARYTES===

The total resources of barytes in India as on 1.4.2005 as per UNFC system are placed
at 74 million tonnes of which about 46 per cent (34 million tonnes) are in ‘Reserves’
category and 54 per cent (40 million tonnes) are in ‘Remaining Resources’ category.
The Mangampet deposit in Cuddapah district (Andhra Pradesh) is the single largest
barytes deposit in the world. Andhra Pradesh alone accounted for more than 94 per
cent country’s resources. Minor occurrences of barytes are located in Rajasthan,
West Bengal, Madhya Pradesh, Tamil Nadu, Himachal Pradesh, Maharashtra,
Jharkhand, Uttarakhand, Karnataka and Haryana.

===DIAMOND===

Diamond deposits occur in three types of geological settings such as kimberlite
pipes, conglomerate beds and alluvial gravels. The main diamond bearing areas in
India are Panna belt in Madhya Pradesh, Munimadugu-Banganapalie conglomerate
in Kurnool district, Wajrakarur kimberlite pipe in Anantapur district, the gravels of
Krishna river basin in Andhra Pradesh and damondiferous kimberlite in Raipur,
Bastar and Raigarh districts in Chhattisgarh. Reserves have been estimated in Panna
belt, Madhya Pradesh; Krishna Gravels in Andhra Pradesh; and in Raipur district,
Chhattisgarh. As per the UNFC system as on 1.4.2005 diamonds are placed at around
4582 thousand carats, out of which about 1206 thousand carats are under Reserve
category and remaining 3376 thousand carats are under emaining Resources
category.

===DOLOMITE===

Total resources of dolomite as per UNFC system as on 1.4.2005 are placed at 7533
million tonnes, out of which Reserves are 985 million tonnes and the balance i.e.
6548 million tonnes are in the ‘Remaining Resources’. Dolomite occurrences are
widespread in almost all parts of the country. The major share of about 90 per cent
resources is distributed in the states of Madhya Pradesh, Andhra Pradesh,
Chhattisgarh, Odisha, Karnataka, Gujarat, Rajasthan and Maharashtra.

===FIRECLAY===

Fireclay occurs as a bedded deposit, mostly associated with coal measures of
Gondwana and Tertiary periods. Important deposits are associated with Jharia and
Raniganj coalfields in Jharkhand and West Bengal, Korba coalfield in Chhattisgarh
and Neyveli Lignite field in Tamil Nadu. Notable occurrences of fireclay not
associated with coal measures are known in the state of Gujarat, Jabalpur region of
Madhya Pradesh and Belpahar-Sundergarh areas of Orissa. The total resources of
fireclay as per UNFC system as on 1 April 2005, are about 705 million tonnes in
India out of which 59 million tonnes and under Reserve category and about 646
million tonnes are under remaining Resources category. It is necessary to assess the
fireclay reserves on priority basis, especially those associated with coal measures in
the leasehold areas. The reserves of fireclay are substantial but resources of high
grade (non-plastic) fireclay containing more than 37 per cent alumina are limited.

===FLUORSPAR===

The total resources of fluorite as per UNFC system as on 1.4.2005 were estimated at
20.16 million tonnes. Out of these, 9.21 million tonnes were placed under ‘Reserves’
category and the remaining 10.95 million tonnes under Remaining Resources
category. Major deposits of Fluorspar are located in Gujarat, Rajasthan, Chhattisgarh
and Maharashtra.

===GYPSUM===

The total resources of mineral Gypsum as per UNFC system as on 1.4.2005 were
estimated at 1,237 million tonnes. Of these 69 million tonnes have been placed under
Reserve and 1,168 million tonnes under 'Remaining Resources' The main occurrences
of gypsum are located in Rajasthan, Jammu and Kashmir, Gujarat and Tamil Nadu.
Rajasthan alone accounts for more than 80 per cent country resource. Minor
occurrences of gypsum are in Andhra Pradesh, Himachal Pradesh, Karnataka,
Madhya Pradesh and Uttarakhand.

===GRAPHITE===

As per the UNFC the total resources of graphite in the country as on 1.4.2005 are
placed at about 168.77 million tonnes comprising 10.75 million tonnes in the Reserve
category and remaining 158.02 million tonnes under Resources category. Out of
total resources, Arunachal Pradesh accounts 43 per cent followed by Jammu and
Kashmir (37 per cent), Jharkhand (6 per cent), Tamil Nadu (5 per cent) and Odisha
(3 per cent). However, in term of reserves, Tamil Nadu has major share of about 37
per cent.
===ILMENITE===

The resources of Ilmenite are 461.37 million tonnes as per Department of Atomic
Energy. Ilmenite occurs mainly in beach sand deposits right from Ratnagiri
(Maharashtra) to coast in Kerala, Tamil Nadu and Orissa. The mineral is also found
in Andhra Pradesh, Bihar and West Bengal.

===KAOLIN===

India possesses fairly large resources of china clay. The total resources as per UNFC
system as on 1.4.2005 are about 2596 million tonnes out of which, 222 million tonnes
are placed in Reserves category. The occurrences of china clay are distributed in
Kerala, West Bengal, Rajasthan, Odisha, Karnataka, Jharkhand, Gujarat Meghalaya,
Andhra Pradesh and Tamil Nadu.

===LIMESTONE===

The total resources of limestone of all categories and grades as per UNFC system as
on 1.4.2005 are estimated at 175345 million tonnes. Of which 12715 million tonnes
are under 'Reserves' category and 162630 million tonnes are under 'Remaining
Resources' category. Karnataka is the leading state followed by Andhra Pradesh,
Gujarat, Rajasthan, Meghalaya, Chhattisgarh, Madhya Pradesh, Odisha,
Maharashtra and Uttarakhand.

===MICA===

Important mica bearing pegmatite occurs in Andhra Pradesh, Jharkhand,
Maharashtra, Bihar and Rajasthan. The total resources of Mica in the country as per
UNFC system as on 1.4.2005 are estimated at 393855 tonnes, out of which only
68570 tonnes are placed under 'Reserves' category. 'Remaining resources' are placed
at 325285 tonnes. Rajasthan accounts for about 51 per cent resources, followed by
Andhra Pradesh Maharashtra and Bihar.

===MAGNESITE===

The total resources of magnesite as per UNFC system as on 1.4.2005 are about 338
million tonnes, of which Reserves and Remaining resources are 76 million tonnes
and 262 million tonnes, respectively. Substantial quantities of resources are
established in Uttarkhand (68 per cent) followed by Rajasthan (16 per cent) and
Tamil Nadu (13 per cent). Andhra Pradesh, Himachal Pradesh, Jammu and Kashmir,
Karnataka and Kerala contribute for the balance.

===KYANITE AND SILLIMANITE===

The total resources of kyanite and sillimanite as per UNFC system as on 1.4.2005
are 103 million tonnes and 74 million tonnes, respectively. Out of these the Reserves
categories are 1.4 million tonnes for kyanite and 11 million tonnes for sillimanite.
Kyanite deposits are located in Maharashtra, Karnataka, Jharkhand, Rajasthan,
Andhra Pradesh, Kerala, Tamil Nadu and West Bengal. Sillimanite resources are
located mainly in Odisha, Tamil Nadu, Uttar Pradesh, Kerala, Andhra Pradesh,
Assam and West Bengal with minor occurrences in Jharkhand, Karnataka, Madhya
Pradesh, Maharashtra, Meghalaya and Rajasthan.

===PHOSPHATE MINERALS===

Deposits of phosphorites are located in Madhya Pradesh, Rajasthan, Uttarakhand,
Jharkhand, Uttar Pradesh and Gujarat. Besides, apatite deposits of commercial
importance are reported from Jharkhand, West Bengal, Andhra Pradesh, Tamil Nadu
and Rajasthan. The total resources of apatite as per UNFC system as on 1.4.2005 are
placed at 26.86 million tonnes, out of which 6 million tonnes are under Reserves
category and about 21 million tonnes are under Remaining resources category. Out
of the total resources, the bulk 61 per cent are located in West Bengal. The total
resources of rock phosphate as per UNFC system as on 1.4.2005 are placed at 305
million tonnes, out of which 53 million tonnes are placed under reserves and 252
million tonnes under remaining resources category. Bulk of reserves are located in
Rajasthan and Madhya Pradesh.

===OTHER MINERALS===

Other minerals occurring in significant quantities in India are bentonite (Rajasthan,
Gujarat, Tamil Nadu, Jharkhand and Jammu and Kashmir), corundum (Karnataka,
Andhra Pradesh, Rajasthan, Tamil Nadu and Chhattisgarh), calcite (Andhra Pradesh,
Rajasthan, Madhya Pradesh, Tamil Nadu, Haryana, Karnataka, Uttar Pradesh and
Gujarat), fuller’s earth (Rajasthan, Andhra Pradesh, Arunachal Pradesh, Assam
Madhya Pradesh and Karnataka), garnet (Tamil Nadu, Odisha Andhra Pradesh,
Rajasthan and Kerala), pyrites (Bihar, Rajasthan, Karnataka, Himachal Pradesh,
West Bengal and Andhra Pradesh), steatite (Rajasthan, Uttarakhand, Kerala,
Maharashtra, Andhra Pradesh and Madhya Pradesh), wollastonite (Rajasthan and
Gujarat), zircon (beach sand of Kerala, Tamil Nadu, Andhra Pradesh and Orissa)
and quartz and silica minerals are widespread and occur in nearly all the States.
Besides, the country has vast marble, slate and sandstone deposits. Granite is mainly
mined in Tamil Nadu, Karnataka, Andhra Pradesh and Rajasthan; marble in
Rajasthan, Gujarat and Madhya Pradesh; slate in Madhya Pradesh and Andhra
Pradesh and sandstone in Rajasthan.

==MINERALAND METAL PRODUCTION==

India produces as many as 86 minerals which include 4 fuel, 10 metallic, 46 nonmetallic,
3 atomic minerals and 23 minor minerals (including building and other
materials). The total value of country's mineral production in 2008-09 was estimated
to be about Rs.115981 crores. Of this, fuel minerals constituted Rs.73063 crores (63 per
cent), metallic minerals for Rs.29189 crores (25 per cent) and non-metallic minerals
including minor minerals of about Rs.13728 crores (12 per cent).

==ORGANIZATIONS UNDER THE MINISTRY==

The Ministry has following attached/subordinate offices. Public Sector undertakings,
disinvested companies and research organization under its administrative control.

===GEOLOGICAL SURVEY OF INDIA (GSI)===

Geological Survey of India, the premier earth science organization of the country, is
the principal provider of basic earth science information to the Government, Industry
and the geoscientific sector. The vibrant steel, coal, metals, cement and power
industries which expanded phenomenally in the post-Independence era, bear
eloquent testimony to the GSI's contribution to national development.
Beginning as a department engaged primarily in research for coal, GSI in the
last 158 years has expanded its activities manifold and has been involved either
directly or indirectly in almost all areas of nation building. 

GSI is now the custodian
of one of the largest and most comprehensive earth science database developed
over the last one and half century. Its charter of operation (revised, 21st May, 2009)
laid down by the Government of India, detailing the scope of activities and
responsibilities of the GSI encompasses practically the entire gamut of earth science
activities. The charter reflects the broad responsibility of GSI extending from the
lofty peaks of the Himalaya to the remote continent of Antarctica and from the
desert to the ocean and into the sky.

Creation and updation of national geoscientific information and knowledge
base through ground, marine and airborne surveys and their dissemination are the
primary goals of GSI. It has Central Head Quarters at Kolkata, six regional offices
at Nagpur, Kolkata, Shillong, Lucknow, Hyderabad and Jaipur besides Airborne
Miner Surveys and Exploration wing, Bangalore; Marine Wing, Kolkata; Coal Wing,
Kolkata and Training Institute, Hyderabad.

===INDIAN BUREAU OF MINES (IBM) ===

Indian Bureau of Mines (IBM) established on 1st March 1948, is a multidisciplinary
scientific and technical organisation under Ministry of Mines, with statutory and
developmental responsibilities for conservation and systematic exploitation of
mineral resources other than coal, petroleum and natural gas, atomic minerals and
minor minerals.

IBM has its headquarter at Nagpur with 3 Zonal Offices, 12 Regional Offices
and 2 Sub-Regional Offices spread all over the country, apart from the Modern
Minister Processing Laboratory Pilot Plant constructed with UNDP assistance at
Nagpur. Two Regional Ore Dressing Laboratories and Pilot Plants are in operation
at Ajmer and Bangalore.

The Indian Bureau of Mines (IBM) performs regulatory functions, namely
enforcement of the Mineral Conservation and Development Rules, 1988, the relevant provisions of the Mines and Mineral (Development and Regulation) Act, 1957,
Mineral Concession Rules, 1960 and Environmental (Protection) Act 1986 and Rules
made thereunder. It also undertakes scientific, techno-economic, research oriented
studies in various aspects of mining, geological studies, ore beneficiation and
environmental studies.

==Table begins== 
( Value in Rs.Crores)

PRODUCTION OF SELECTED MINERALS, 2005-06 to 2009-10

2005-2006 2006-2007 2007-2008 (RS.) 2008-2009 (P) 2009-2010 (E)

Mineral Unit Qty Value Qty Value Qty Value Qty Value Qty Value

All Minerals 90319.64 104490.48 119799.34 122281.53 127921.42

Fuel 63066.51 66158.29 70397.31 70527.66 79602.69

Coal M.Tonnes 407 33675.26 431 34836.79 457 38464.56 493 39084.70 549 43216.93

Lignite M.Tonnes 30 2153.14 31 2626.03 34 2960.88 32 2672.40 58 4819.05

Natural Gas(Utilised) M.C.M. 32202 9308.28 31747 9764.16 32417 9968.70 32849 10107.31 42328 13141.11

Petroleum (crude) M.Tonnes 32 17929.83 34 18931.32 34 19003.17 34 18662.84 33 18425.60

Metallic Minerals 13891.16 18285.80 29335.76 31533.17 27571.16

Bauxite th. tonnes 12596 293.32 157.33 384.78 22625 568.39 15554 430.88 13506 432.12

Chromite th. tonnes 3714 1092.95 5296 1450.17 4873 2142.19 3981 2217.06 3218 978.00

Copper Conc. th. tonnes 125 250.90 150 311.71 217 500.96 138 393.47 124 330.25

Gold Kg. 2879 270.00 2488 229.09 2969 301.74 2464 312.15 1788 264.19

Iron Ore th. tonnes 165230 10803.88 187696 14204.31 213246 23379.04 215437 25150.52 226008 22654.30

Lead Conc. th. tonnes 96 76.81 107 133.14 126 144.39 134 138.46 127 137.80

Manganese ore th. tonnes 1909.35 507.04 2116 557.37 2697 1206.04 2829 1730.38 2000 1330.93

Zinc Conc. th. tonnes 889 571.97 947 971.47 1036 939.42 1226 943.75 1338 1132.03

Other met. Minerals 24.29 43.76 153.60 216.50 311.55

Non-Metallic Minerals 2894.61 3351.46 3371.33 3525.78 4052.63

Ball Clay th. tonnes 407 4.93 627 13.87 796 14.04 912 18.03 876 18.71

Barytes th. tonnes 1156 44.41 1681 94.71 1076 57.01 1682 95.57 2801 380.28

Diamond Carats 44170 23.37 2180 1.47 586 0.57 536 0.43 4503 4.49

Dolomite th. Tones 4751 116.28 5172 112.57 5852 146.12 4469 118.62 5121 140.86

Fire clay * th. tonnes 536 6.24 497 6.59 545 8.69 391 6.50 524 8.17

Garnet (Abrasive) th. tonnes 672 18.28 859 25.92 1276 52.37 1053 45.37 4421 77.99

Gypsum th. tonnes 3291 40.12 3006 49.42 3400 71.97 3716 84.07 3182 81.70

Kaolin th. tonnes 1336 205.36 1460 162.22 1466 57.36 2213 70.05 2763 67.54

Laterite th. tonnes 931 9.81 1373 15.76 1479 21.74 1253 18.09 1022 16.03

Lime shell th. tonnes 110 5.98 104 7.29 128 8.44 95 7.00 93 6.80

Lime stone M. tonnes 170 1906.08 197 2405.01 193 2399.79 204 2499.86 219369 2653.53

Magnesite th. tonnes 340 38.57 239 34.17 253 33.43 246 34.72 272 40.26

Phosphorite th. tonnes 2049 294.28 1587 218.46 1849 212.57 1759 301.75 1495 292.58

Pyroxenite th. tonnes 341 11.19 302 8.27 289 9.07 283 14.44 342 19.45

Sand (others) th. tonnes 2278 7.75 1770 6.71 1804 7.50 1764 8.00 2802 11.61

Silica Sand th. tonnes 2370 28.75 2663 37.79 4304 50.73 2741 28.92 1891 26.92

Sillimanite th. tonnes 33 17.43 26 10.13 41 17.67 34 23.53 22 21.43

Steatite th. tonnes 682 36.38 740 40.12 923 59.33 832 50.73 843 50.71

Wollastonite th. tonnes 129.00 9.98 132 11.41 119 10.64 108 8.71 101 8.60

Other non-metallic 69.47 89.59 131.90 91.39 124.97

minerals

Minor Minerals 10467.36 16694.93 16694.93 16694.93 16694.93

Figures rounded off.

M. Tonnes - Million tonnes, 000 tonnes; thousand tonnes; M.C.M. Million cubic metre; Kg-Kilogram; ++ - Negligible

(P): Provisional and based on MCDR: return to the extent available with IBM

* : Excludes the production of Fireclay, if any recovered incidental to coal mining.

(RS.) : Revised figure (E) estimated figures

Note: (1) The value figures pertain to pithead value

(2) Date based on the returns received under MCDR 1988 except coal, lignite, petroleum (crude) natural gas (utilised) and minor minerals

Source a) Coal and Lignite Coal Controller Kolkata

b) Petroleum (crude) and National Gas : Ministry of Petroleum & Natural Gas. New Delhi

c) Minor Minerals : State Government

==Table ends== 

IBM provides technical consultancy services to the mining industry for the
geological appraisal of mineral resources, and the preparation of feasibility report
of mining projects, including beneficiation plants. It prepares mineral maps and
countrywide inventory of mineral resources of leasehold and freehold areas. It also
promotes and monitors community development activities in mining areas. IBM
also functions as Data Bank of Mines and Minerals and publishes statistical
information. It also brings out technical publications/monographs on individual
mineral commodities and bulletins of topical interest. It advises the Central and
State Governments on all aspects of mineral industry, trade, legislation etc.

==PUBLIC SECTOR AND DISINVESTED COMPANIES==

The Ministry of Mines has four Public Sector Undertaking (PSUs) under its
administrative control. National Aluminium Company Limited (NALCO),
Hindustan Copper Limited (HCL) and Bharat Gold Mines Limited (BGML) are
operating in the field of mining and mineral processing, and Mineral Exploration
Corporation Limited (MECL) is operating in the field of mineral exploration. The
BGML however, is closed since March 2001. In addition the Government holds 49
per cent equity in Bharat Aluminium Company Limited (BALCO) and 29.54 per
cent equity in Hindustan Zinc Limited (HZL) after their disinvestment.

===National Aluminium Company Limited (NALCO)===

National Aluminium Company Limited (NALCO), largest integrated Alumina-
Aluminium Plant Complex in India, was incorporated on 7th January, 1981 with its
registered office at Bhubaneswar. After completion of first phase expansion at an
investment of Rs.4200 crores in 2004, NALCO has presently installed capacity of
4.8 Million Tonnes Per Year (MTPY) Bauxite Mine and 1.575 MTPY of Alumina
Refinery at Panchapatmali, and 0.345 MTPY Aluminium Smelter at Angul. It has
960 MW (8X120) MW Capative Power Plant at Angul, all in Odisha and Port
Handling Facilities at Visakhapatnam (Andhra Pradesh) for export of alumina and
import of caustic soda. The Company also utilizes Kolkata and Paradeep Ports for
export of Aluminium. NALCO had been granted Navratna status on 28.4.2008.

Second phase expansion of NALCO’s Integrated Alumina-Aluminium
Complex, at an outlay of Rs.4091.51 crores, at July 2003 price level, approved by the
Government in October 2004, envisaging augmentation of Bauxite Mines capacity
from 4.8 MTPY to 6.3 MTPY, Alumina Refinery capacity from 1.575 MTPA to 2.1
MTPA,Aluminium Smelter capacity from 0.345 MTPA to 0.46 MTPA and Captive
Power Plant (CPP) capacity from 960 MW (8x120 MW) to 1200 MW (10x120) is
presently under implementation.

The company is one of the lowest cost producers of alumina and aluminium
in the world due to highly efficient operation and very high asset utilization with
benchmark in smelting technology. With sustained quality products, the Company's
export earnings account for nearly 40 per cent of the sales turnover.

NALCO has been exploring to set up new projects in the country and abroad.
The company is examining possibilities to set up a 5 lakh Tonnes Per Annum (TPA)
smelter at an investment of 1.3 billion in Indonesia, and 1.55 lakh TPA smelter in
first phase and a 1.55 lakh TPA smelter alongwith gas based power plant in second
phase at an estimated cost of US $ 3 billion in Iron NALCO plans to set up a 42 lakh
TPA bauxite mines and 14 lakh TPA alumina refinery complex in Andhra Pradesh
involving an investment of Rs.7000 crores.

The Company exports its products to more than 30 countries worldwide. The
Company has also opened stockyards in various parts of India to facilitate domestic
marketing. With its consistent track record in capacity utilization, technology
absorption, quality assurance, exports performance and posting of profits, NALCO
is a bright example of India's industrial capability.

===Hindustan Copper Limited (HCL) ===

HCL, a public sector undertaking under the administrative Control of the Ministry
of Mines, was incorporated on 9th November, 1967 under the Companies Act, 1956.
It was established as a Govt. of India Enterprise to take over all plants, projects,
schemes and studies pertaining to the exploration and exploitation of copper
deposits, including smelting and refining from National Mineral Development
Corporation Ltd. It has the distinction of being the nation's only vertically integrated
copper producing company as it manufactures copper right from the stage of mining
to beneficiation, smelting, refining and casting of refined copper metal into
downstream saleable products.

The company markets copper cathodes, continuous cast copper rod and by
products, such as anode slime (containing gold, silver, etc.) copper sulphate and
sulphuric acid. More than 90 per cent of the sales revenue is from cathode and
continuous cast copper rods. HCL's mines and plants are spread across four
operating units, one each in the States of Rajasthan, Madhya Pradesh, Jharkhand
and Maharashtra as named below. Khetri Copper Complex (KCC) at Khetrinagar,
Rajasthan, Indian Copper Complex (ICC) at Ghatsila, Jharkhand, Malanjkhand
Copper Project (MCP) at Malanjkhand, Madhya Pradesh, Taloja Copper Project
(TCP) at Taloja, Maharashtra.

The Government of India nationalized the only copper producing company
in the private sector, Indian Copper Corporation Ltd, at Ghatsila in Jharkhand in
March, 1972 and handed over its management and ownership too Hindustan Copper
Limited.

The smelter plant at Khetri Copper Complex (KCC) in Rajasthan with capacity
of 31000 tonnes was dedicated to the nation on 5th February, 1975.
In November, 1982, Malanjkhand Copper Project comprising a large and fully
mechanized open pit mine and concentrator plant was dedicated to the nation.
The continuous cast copper rod plant at Taloja Copper Project of Hindustan
Copper Ltd was commissioned in December, 1989 with an installed capacity of
60000 tonnes.

===Mineral Exploration Corporation Limited (MECL)===

The Mineral Exploration Corporation Limited (MECL) since inception in the year
1972 is carrying out mineral exploration activities. So far, it has added 1,36,376 million
tones of mineral reserves to National Mineral Inventory.

The Company manages the functioning of projects through a 2 tier system
from the Corporate office at Nagpur. To facilitate the prompt maintenance of plants
and machineries deployed at various projects, three Regional Maintenance Centres
at Ranchi, Nagpur and Hyderabad are being operated. Technical guidance to the
projects, finalization of geological reports, close liaisoning with the clients and
looking for new business opportunities is being carried out through the Zonal Offices
located at Ranchi, Nagpur and Hyderabad.

===Bharat Gold Mines Limited (BGML) ===

Bharat Gold Mines Limited (BGML) having registered office at Kolar Gold Fields,
was incorporated as a public sector company under the Ministry of Mines, on 1st
April 1972. It was engaged in mining and production of gold from its captive mines.
The company was referred to the Board for Industrial and Financial Reconstruction
(BIFR) who gave its verdict in June 2000 to wind up BGML in public interest. The
verdict of BIFR was upheld by Appellate Authority for Industrial and Financial
Reconstruction (AAIFR). The company was closed after the Ministry of Labour,
accorded permission for closure of BGML w.e.f. 1 March 2001. After prolonged
litigation the Division Bench of High Court of Karnataka in its order dated 26
September 2003 has also upheld the winding up/closure orders passed by BIFR/
AAIFR and Ministry of Labour. The Court has made certain recommendations which
are under consideration of the Government.

Government of India, on 27.7.2006, have approved a proposal regarding Special
Terminal Benefit Package (STBP) for Bharat Gold Mines Limited ex-employees, sale
of houses to the employees of BGML at nominal rates. calling of global tender for
sale of assets and giving purchase preference to the Employees Co-operative Society/
Society’s Company subject to the approval of the High Court of Karnataka (Company
Court) and viability of the project. Company Application has been filed in the
Hon’ble High Court of Karnataka (Company Court) which is being perused.

As per the Government decision STBP amount has been distributed to the exemployees
of BGML and allotment of the houses at the rates suggested by the High
Court of Karnataka (Company Court) are under process.

===Bharat Aluminium Company Limited (BALCO) ===

Bharat Aluminium Company Limited (BALCO) was incorporated on 27th November,
1965 as a Central Public Sector Undertaking with an integrated Alumina/Aluminium
Complex and a 270 MW Captive Power Plant at Korba presently in Chhattisgarh.
The Government of India disinvested 51 per cent equity in the Company
along with the transfer of management control in favour of M/s Sterlite Industries
(India) Limited with effect from 2nd March, 2001 and consequently, the Company
has ceased to be public sector undertaking.

Post disinvestment, BALCO has implemented the expansion at a cost of over
u 4000 crores leading to threefold increase in capacities. The smelter capacity has
been increased to 3,45,000 MT per annum from 1,00,000 MT per annum and the
capacity of the captive power plant from 270MW to 810 MW.

===Hindustan Zinc Limited (HZL) ===

Hindustan Zinc Limited (HZL) was incorporated in January 1966 as a public sector
undertaking after the take over of the erstwhile Metal Corporation of India Limited,
to develop mining and smelting capacities to substantially meet the domestic
demand of zinc and lead metals. HZL's operations are broad-based and its activities
range from exploration, mining and ore processing to smelting and refining of lead,
zinc together with recovery of by products like silver, cadmium and sulphuric acid.
Government of India disinvested its 26 per cent equity in HZL in favour of M/s
Sterlite Opportunities and Ventures Ltd (SOVL) on 28th March, 2002, and the
management control of the company was also transferred to SOVL on 11th April,
2002, Subsequently, SOVL acquired 20 per cent equity shares of HZL from the market
through its open offer. On 11th November, 2003. 

Government of India further offloaded
18.92 per cent of its equity in HZL in favour of SOVL in terms of the
Shareholders Agreement. The current shareholding of SOVL in HZL is 64.92 per
cent and the Government of India is 29.54 per cent.

HZL with its headquarters at Udaipur operates lead-zinc mines with a total
capacity of 7.1 million tonnes per annum and lead-zinc smelters with a total
lead-zinc metal production capacity of 762000 tonnes annum.

===National Institute of Rock Mechanics (NIRM) ===

The National institute of Rock Mechanics (NIRM) is a premier center for research in
applied and basic rock mechanics. Set up under the Ministry of Mines, Government
of India, the Institute provides research and consultancy services for improving
safety and productivity in the mining and civil engineering sectors. It is an ISO-
9001 : 2008 certified research Institute. NIRM is carrying out research work through
both government - funded and industry sponsored S and T and consultancy projects.
The Institute has been extending its support to the industry in areas:

• Engineering Geology,

• Engineering Geophysics,

• Geotechnical Engineering,

• Rock Fracture Mechanics and Materials Testing.

• Engineering Seismology

• Numerical Modelling. Rock Blasting and Excavation Engineering.

• Mine Design and Ground Control Microseismics and Automation.

• Environmental Engineering and Dimensional Stone Technology.
===National Institute of Miners Health (NIMH) ===
[[File: Industy.jpg|Index of Industrial Production (IIP), Dec 2013-Dec 2015; Graphic courtesy: [http://epaperbeta.timesofindia.com/Gallery.aspx?id=05_01_2016_019_042_010&type=P&artUrl=Mfg-activity-shrinks-first-time-in-two-yrs-05012016019042&eid=31808 ''The Times of India''] Jan 5 2016|frame|500px]] 

National Institute of Miners Health (NIMH), Nagpur was established for promotion
of occupational health and hygiene in mining and mineral based industries and for
development of trained manpower in these fields. It was registered as Society in
the State of Karnataka. On closure of BGML, a camp office was established at
Amravati Road. Wadi, Nagpur in 2002.

The Institute has State - of - the - art infrastructure, equipments and highly trained
manpower to conduct and carry out-

• Detailed initial and periodic medical examinations as per Mines Rules,
1955.

• Clinical investigations like routine hematological tests, blood biochemistry,
audiometry, spirometry, electrocardiography.

• Computerized vision screening.

• Exposure assessment of individual subjects for noise, dust and vibration
using personal dosimeters.

• Risk assessment of work environment for dust, noise, vibration.

• Risk characterization of dust for free silica (using FTIR), heavy metals
(using AAS) etc.

• Specialized tests in clinical biochemistry, Protein Biomarkers,
Electrophoresis, ELISA, Spectrophotometric analysis.

• HRD activities in mine related health and hygiene issues.
===Jawaharlal Nehru Aluminium Research Development and Design Center
(JNARDDC). ===

Jawaharlal Nehru Aluminium Research Development and Design Centre, Nagpur
is a "Centre of Excellence" set up in 1989 and became fully functional since 1996.
The Centre was conceived as the major RS.&D support system for the emerging
modern aluminium industry in India.

The Centre has well-established facilities for RS.&D activities in the field of
bauxite, alumina and aluminium. Its principal preoccupation is with all aspects of
Bayer process for conversion from bauxite to alumina and electrolytic smelting from
alumina to aluminium.

The Centre has successfully completed many major projects awarded by both
primary and secondary aluminium producers, bauxite mine-owners / importers
and also by Ministry of Mines. There has been a steady increase in the internal
revenue generation over the last five years.

The Centre also offers analytical and testing facilities to other non-ferrous
industries, steel plants, small-scale industries, RS.&D Organisations and academic
Institutions particularly in the areas of chemical and mineralogical analysis, power
characterisation, thermal mapping, micro-structural studies, mechanical and nondestructive
testing, failure analysis and technical information.
=See also=
[[Banking, India: I]]

[[Industries: India (ministry data)]], especially for Textile Machinery Industry

[[Textiles sector: India]]