Industries: India (ministry data)

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This article has been sourced from an authoritative, official publication. Therefore, it has been ‘locked’ and will never be thrown open to readers to edit or comment on. After the formal launch of their online archival encyclopædia, readers who wish to update or add further details can do so on a ‘Part II’ of this article.

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

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)

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

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

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

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

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

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

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

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

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

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

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

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

TEXTILES

The Indian Textiles Industry has an overwhelming presence in the economic life of the country. Apart from providing one of the basic necessities of life, the textiles industry also plays a pivotal role through its contribution to industrial output, employment generation, and the export earnings of the country. Currently, it contributes about 12 per cent to industrial production, 4.0 per cent to the GDP, and 12 per cent to the country’s export earnings. It provides direct employment to over 35 million people, which includes a substantial number of SC/ST, and women. The Textiles sector is the second largest provider of employment after agriculture. Thus, the growth and all round development of this industry has a direct bearing on the improvement of the economy of the nation.

Due to policy measures initiated by the Government in the recent past, the Indian Textiles Industry is in a stronger position than it was in the last six decades. The industry which was growing at 3-4 per cent during the last six decades has now accelerated to an annual growth rate of 8-9 per cent in value terms. The catalyst for this exponential growth is a buoyant domestic economy, substantial increase in cotton production, a conducive policy environment provided by the Government and the end of the Multi Fibre Arrangement (MFA) on December 31, 2004. The rationalization of fiscal duties undertaken during the last few years has also provided a level playing field in all segments of the industry resulting in the holistic growth of the industry. A strong foundation for industry has been laid on which world class manufacturing units can realize their full potential and make a mark in the international economy.

The growth manifests through a consistent increase in production of fabric and investments. During 2010-11, the production of fabric was 61.81 billion sq. mtrs (Prov.), as compared to 49.58 billion sq. mtrs in 2005-06. The textiles sector has witnessed a spurt in investment. The Technology Upgradation Fund Scheme (TUFS), encouraged investment of more than Rs.2,11,000 crores as on 30.06.2011. The restructured TUFS was implemented w.e.f. 28.04.2011 and is expected to trigger additional investments of over Rs.46,900 crores during the balance period of the 11th Five Year Plan. This investment is also expected to generate more employment.

EXPORTS

India's textiles and clothing industry is one of the mainstays of the national economy. It is also one of the largest contributing sectors of India's exports worldwide. The Vision Statement for the textiles industry for the 11th Five Year Plan (2007-12), interalia, envisages India securing a 7% share in the global textiles trade by 2012. At current prices the Indian textiles industry is pegged at US$ 55 billion, 64% of industrial production, which is 4% of GDP, employs 35 million people and accounts for nearly 12% share of the country's total exports basket.

The export of textiles and clothing aggregated to US$ 22.41 billion in 2009-10. As per latest available provisional figures, exports of textiles and clothing aggregated to USD 26.82 billion during 2010-11 (against the target of USD 25.48 billion) registering an increase of 19.6% over exports of 22.41 billion in 2009-10. Readymade garments account for almost 45% of the total textiles exports. Apparel and cotton textiles products together contribute nearly 70% of the total textiles exports. The exports basket consists of a wide range of items comprising readymade garments, cotton textiles, handloom textiles, man-made fibre textiles, wool and woolen goods, silk, jute and handicrafts including carpets. India's textiles products, including handlooms and handicrafts, are exported to more than a hundred countries.

However, the USA and the EU, account for about two-third of India's textiles exports. The other major export destinations are Canada, U.A.E., Japan, Saudi Arabia, Republic of Korea, Bangladesh, Turkey, etc. Keeping this trend in view, a target of USD 32.35 billion has been fixed by the Government for 2011-12.

TECHNOLOGY UPGRADATION

In order to facilitate modernization/technology upgradation of textiles mills, Government had launched Technology Upgradation Fund Scheme (TUFS) for Textile and Jute Industries w.e.f. 1.4.1999 for a period of 5 years which was subsequently extended up to 31.3.2007. The scheme was continued in modified form w.e.f. 01.04.2007 to 28.06.2010. The scheme has again been launched in restructured form for the period 28.04.2011 to 31.03.2012.

It is a credit linked scheme and provides following benefit: Reimbursement of 5% points on the interest charged by the lending agency on project of a technology upgradation in conformity with the schemes, for spinning machinery the scheme will provide 4% for new stand alone/replacement/ modernisation of spinning machinery; and 5% for spinning units with matching capacity in weaving/knitting/processing/garmenting; cover for foreign exchange rate fluctuation/forward cover premium not exceeding 5% for all segments except for new stand alone/replacement/modernisation of spinning machinery, the foreign exchange rate fluctuation/forward cover premium will be 4%; additional option to the powerlooms units and independent perpetratory units to avail of 20% margin money subsidy under Restructured TUFS in lieu of 4% interest reimbursement on investment in TUF compatible specified machinery; subject to a capital ceiling of ` 500 lakhs and ceiling on margin money subsidy Rs.60 lakhs. However, for brand new shottleless looms the ceiling on margin money subsidy will be Rs.1 crore.

Under Restructured TUFS (28.04.2011 to 31.03.2012), this office has provided UID to 87 applications with total project cost of Rs.4054.62 crores and subsidy requirement of Rs.69.99 crores upto 31.03.2012 as on 30.08.2011.

TECHNICAL TEXTILES

Technical textiles are materials and products used for their technical performance and functional properties. These products have a presence in major areas of activity such as, aerospace, shipping, sports, agriculture, defence, medicine/health, manufacturing, etc. Technical textiles are an emerging industry with a huge potential to attract investment. The global market size of technical textiles was US$127 bn for the year 2010 and it is expected to reach to US $ 136 bn by the year 2012-13 at an annual growth rate of 3.5% as per David Rigby Associates Report. The Domestic market size of technical textiles during the year 2001-11 was Rs.57,106 crore and it is expected to increase to Rs.70,151 crore by the year 2012-13 at 11% year on year.

To tap the potential of technical textiles and to unleash the investments in this industry, the Government has launched Scheme for Growth & Development of Technical Textiles (SGDTT) during the year 2007-08. Under SGDTT, four Centres of excellence (COEs) have been set up. The COEs identified are The Mills Research Association (SASMIRA) for Agrotech, Northern India Textile Research Association (NITRA) for Agrotech, Northern India Textile Research Association (NITRA) for Protech and South India Textile Research Association (SITRA) for Meditech. The COEs have almost been established and they have started providing assistance to the industry to facilitate investment in this sector. So far, more than 60 seminars/ workshops/training programmes on technical textiles have been organised across the country to attract investors. Baseline survey on technical textile industry in India was conducted and the report is placed in the website www.technotexgov.in

The Government has also launched the Technology Mission on Technical Textiles (TMTT) during December 2010 with two Mini-Missions for five years (2010- 11 to 2014-15) with a financial outlay of Rs.200 crore.

Under the Mini Mission—1 of TMTT, in addition to existing four COEs, four new Centres of Excellence (COEs) are being created for Sportech, Non-Wovens, Indutech & Composites segments. The COIEs identified are DKTE Society's Textile & Engineering Institute, Ichalkaranji, Maharashtra for Non-Wovens; PSG College of Technology, Coimbatore, Tamil Nadu for Indutech; Ahmedabad Textile Industry's Research Association (ATIRA), Ahmedabad, Gujarat for Composites; and Institute of Chemical Technology, Mumbai for Sportech.

SCHEME FOR INTEGRATED TEXTILES PARKS

Scheme for Integrated Textile Parks was approved in the 10th Five Year Plan to provide the industry with world-class infrastructure facilities for setting up their textile units by merging the erstwhile 'Apparel Parks for Exports Scheme (APES)' and 'Textile Centre Infrastructure Development Scheme (TCIDS).

The Scheme targets industrial clusters/locations with high growth potential, which require strategic interventions by way of providing world-class infrastructure support. The project cost covers the cost of common infrastructure and buildings for production support activities, depending on the needs of the ITP. There will be flexibility in setting up ITPs to suit the local requirements.

This scheme is implemented through Special Purpose Vehicles (SPVs), where, Industry Associations/Group of Entrepreneurs are the main promoters of the Integrated Textile Park (ITP). At each ITP, there would be a separate Special Purpose Vehicle (SPV) formed with the representatives of local industry, Financial Institutions, State Governments and the Central Government. SPV shall invariably be a Corporate Body registered under the Companies Act. Any different structure for the SPV requires the approval of the Project Approval Committee. The SPVs shall have operational autonomy so that they do not become surrogate Public Sector Enterprises or be controlled by Central/State Governments.

The components of an ITP are broadly divided in the following groups :

(a) Group A : Land.

(b) Group B : Common Infrastructure like compound wall, roads, drainage, water supply, electricity supply including captive power plant, effluent treatment, and telecommunication lines etc.

(c) Group C : Buildings for common facilities like testing laboratory, design center, training center, trade center/display center, warehousing facility/raw material depot, creche, canteen, workers hostel, offices of service providers, labour rest and recreation facilities etc.

(d) Group D : Factory buildings for production purposes.

(e) Group E : Plant and machinery.

The total project cost for the purpose of this scheme includes the cost on account of components of ITP, as listed under Groups A, B, C and D above, provided the ownership of the factory buildings vests with the SPV. The SPV will, however, have the option of seeking financial support from Government of India for components under Groups B and C only, if factory buildings are individually owned.

A panel of professional agencies has been appointed as Project Management Consultants (PMCs) for implementing the Scheme.

The PMCs will be responsible for the speedy implementation of the Projects in a transparent and professional manner so as to achieve high degree of quality at a low cost acceptable to the members of the SPV for which fee will be paid to the PMCs by the Ministry of Textiles. The PMCs will report to Ministry of Textiles, which shall directly supervise the implementation of projects under the superintendence and control of Secretary (Textiles).

Funding Pattern

The Government of India's (GOI) support under the Scheme by way of Grant or Equity will be limited to 40% of the project cost subject to a ceiling of Rs.40 crores. GOI support under the Scheme will be generally in the form of grant to the SPV unless specifically decided to be equity. However, the combined equity stake of GOI/State Government/State Industrial Development Corporation, if any should not exceed 49%.

However, GOI support will be provided @ 90% of the project cost subject to a ceiling of Rs.40 crores for first two projects in the States of Arunachal Pradesh. Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Jammu & Kashmir.

STATUS OF IMPLEMENTATION

Textile Centre Infrastructure Development Scheme (TCIDS) : (202-28th July 2011)

• 18 Projects sanctioned

• GOI Share Rs.268.86 crores.

• Released Rs.210.59 crores.

• Four Projects completed, Kannur-Kerala, Bhiwandi-Maharashtra, and Tirupur- Tamil Nadu, Pandesara-Surat.

• One project nearing completion i.e. SEWA-Gujarat. Apparel Parks for Exports Scheme (APES) : (2002-28th July 2011)

• 12 Projects sanctioned.

• GOI Share Rs.185.22 crores.

• Released Rs.130.85 crores.

• Four Projects completed—Bangaluru-Karnataka, Thiruvananthapuram-Kerala, Tirupur-Tamil Nadu, and Tronica City-Uttar Pradesh.

• One project of Kanpur-Uttar Pradesh nearing completion (Training centre component yet to be completed.)

Scheme for Integrated Textile Park (SITP): (September 05-28th July 2011)

• As per the target, forty (40) Textiles Park projects have been sanctioned.

• Estimated project cost (for common infrastructure and common facilities) of the 40 sanctioned projects is Rs.4133.09 crores of which Government of India assistance under the scheme would be Rs.1419.69 crores. The projects are as under- Andhra Pradesh (5), Gujarat (7), Maharashtra (9), Tamil nadu (8), Rajasthan (5), Karnataka (1), Punjab (3), West Bengal (1), Madhya Pradesh (1).

• An amount of Rs.992.43 crores has been released under SITP.

• 2292 entrepreneurs will put up their units in these parks covering an area of 4307.97 acre. The estimated investment in these parks will be Rs.19456.90 crores and estimated annual production will be Rs.33568.50 crores.

• Seven projects have been completed—Brandix & Pochampally-Andhra Pradesh, Gujarat Eco Textile Park & Mundra-Gujarat. Palladam Hi-Tech Weaving Park, Karur—Tamil Nadu and Islampur Integrated Textile Park, Maharashtra, Production has been started in 24 out of 40 projects.

MEGA CLUSTER

The schemes for mega cluster support weavers/artisans, both in and outside the cooperative fold, including those in Self Help Groups (SHGs), Non Governmental Organisations (NGOs) etc. The schemes provide for development of all the facets of selected clusters like raw material support, design inputs, up-gradation of technology, infrastructure development, marketing support, welfare of weaves etc.

A convergence of the existing development interventions of the Ministry of Textiles & other Ministries/Departments will be affected in these cluster. The schemes also raise living standards of the weavers/artisans by improving the infrastructure facilities, with better storage facilities, technology up-gradation in pre-loom/onloom/ post-loom operations, weaving shed, skill up-gradation, design inputs, health facilities etc.

The development of 6 Mega Clusters in Handloom, Handicrafts and Powerlooms were first announced by the Finance Minister in his Budget Speech 2008-09. Consequently, following three Central Sector Plan Schemes were approved by the Cabinet Committee on Economic Affairs (CCEA) in the meeting held on 20.11.2008:

i) Comprehensive Powerloom Cluster Development Scheme

ii) Comprehensive Handloom Cluster Development Scheme

iii) Comprehensive Handicrafts Cluster Development Scheme.

Based on Budget Announcement made in 2008-09, 2009-10 and 2010-11, 12 centres are being developed as mega cluster on a Public Private Partnership (PPP) model to scale up infrastructure and production in Handloom, Handicrafts and Powerloom sectors, wherein Government contribution has been earmarked at maximum of Rs.70 crore for each mega cluster. At present, following 12 centres are being developed as Mega Cluster :

Table

Handlooms Handicrafts Powerloom

4 Mega Cluster 5 Mega Clusters 3 Mega Clusters

1. Varanasi (U.P.) 5. Moradabad (U.P.) 10. Bhiwandi (Maharasthra) 2. Sivsagar (Assam) 6. Narasapur (A.P.) 11. Erode (Tamil Nadu) 3. Murshidabad (W.B.) 7. Bhdohi-Mirzapur (U.P.) 12. Bhilwara (Rajasthan) 4. Virudhunagar (T.N.) 8. Srinagar (J&K) 9. Jodhpur (Rajasthan)

NATIONAL TEXTILE CORPORATION (NTC)

NTC has modernized 18 mills, which are now generating cash profits.

E-auction for Sale of Land

For the first time in the history of NTC, online e-auction of sale of surplus land has been introduced with the approval of Assets Sale Committee (ASC) :

• 2.39 acres land of Podar Mill (Process house), Mumbai was put on e-auction from 29th to 31st July, 2010. A total of 8 parties who had deposited the EMD participated in the online e-auction. As against the reserve price of Rs.250 crores, the highest bid was of Rs.474 crores by M/s Indiabulls Real Estate. The offer of M/s indiabulls worked out to Rs.198 crores per acre or Rs.45,000 per sq. ft.

• The second online e-auction of Bharat Textile Mills, Mumbai, admeasuring 8.37 acres took place from 4th to 6th August, 2010. A total of 7 parties who had deposited the requisite EMD participated in the online e-auction. As against the reserve price of Rs.750 crores, the highest bid offered was Rs.1505 crores by M/s Indiabulls Real Estate.

• As its third success towards online e-auction conducted from 29th to 31st December, 2010, the company has bagged Rs.118.40 crores, against the reserve price of Rs.41.27 crores, by sale of 8.21 acres of plot of New Manekchowk Textile Mills, Ahmedabad.

NTC was given the privilege of being the official licensee against the home ware category of Commonwealth merchandise for supply of bed sheets, duvets, towels etc. to Commonwealth Games Village.

RAW MATERIAL

COTTON

Cotton is one the principal crops of the country and is the major raw material for the domestic textiles industry. It provides sustenance to million of farmers as also the workers involved in cotton industry, right from processing to trading of cotton. The Indian textile industry consumes a diverse range of fibres and yarn, but is predominantly cotton based. The ratio of the use of cotton to man-made fibres and filament yarns by the domestic industry is about 56.94. Indian Textile Industry has an overwhelming presence in the economic life of the country.

Apart from providing one of the basic necessities of life, the textile industry also plays a pivotal role through its contribution to industrial output, employment generation and the export earnings of the country. It contributes about 14% to the industrial production, 4% to the GDP and 14.42% to the country's export earnings. The textile sector is the second largest provider of employment after agriculture. Hence, growth and all around development of cotton and cotton industry has a vital bearing on the overall development of the Indian economy.

Cotton is produced in India in three zones viz., Northern Zone comprising the State os Punjab, Haryana and Rajasthan, Central Zone comprising the States of Maharashtra. Madhya Pradesh and Gujarat and Southern Zone comprising the States of Andhra Pradesh, Karnataka and Tamil Nadu. Besides these nine States, cotton cultivation has gained momentum in the eastern State of Odisha.

In India nearly 35% area under cotton cultivation is irrigated and rest 65% is under rainfed especially a central and southern zones of the country.

Indian Cotton Varieties

India is the only country to grow all four species of cultivated cotton Gossypium arboreum and herbaceum (Asian cotton), G. barbadense (Egyptian cotton) and G. hirsutuim. India produces large number of cotton varieties and hybrids. Though the number of varieties in cultivation exceeds seventy-five, 98% of the production is contributed by about 25 varieties only.

Cotton Acreage

With the turn-around achieved in cotton production beginning cotton season 2004- 05, cotton farmers in the country encouraged by higher yields per hectare and resultant increase in their net income from cotton production, have exhibited a clear inclination for cotton cultivation in preference to other competing cash crops. With receipt of good prices for their produce in cotton season 2009-10 as compared to other competing crops, the cotton farmers made up for the increased acreage under cotton by switching over from other crops. As a result, the overall acreage under cotton in cotton season 2010-11 has reached at 111.42 lakh hectares as against the acreage of 103.10 lakh hectares in the previous season. For the cotton season 2011- 12, Cotton Advisory Board has estimated cotton acreage at 121 lakh hectare.

With receipt of attractive prices for their produce in cotton season 2010-11, the cotton farmers are enthused to increase acreage under cotton in the ensuring cotton season is expected to increase further. The details of acreage under cotton in past ten years are as follows :

Table

Year Acreage under cotton in lakh ha.

2000-01 85.76

2001-02 87.30

2002-03 76.67

2003-04 76.30

2004-05 87.86

2005-06 86.77

2006-07 91.44

2007-08 94.14

2008-09 94.06

2009-10 103.10

2010-11 111.61

2011-12 121.00

(Prov.)

Source : DoCD

Table ends

Acreage under Bt cultivation

Government of India has released Bt seeds for commercial cultivation in 2002-03. Bt cotton confers resistance to important insect pests of cotton. With adoption of Bt, besides increase in yield, there was a concomitant reduction in the use of insecticides due to Bt cotton, which has enabled the cotton farmers of country in increasing their income. As a result, over the years, the cotton farmers are inclined to increased usage of Bt. The details of year-wise acreage under Bt are as follows :

Table begins

Year Total area Area under Bt % of Bt to total

2002-03 76.67 0.29 -

2003-04 76.30 0.93 1%

2004-05 87.86 4.91 6%

2005-06 86.77 10.14 12%

2006-07 91.44 34.61 38%

2007-08 94.14 63.34 67%

2008-09 94.06 68.18 72%

2009-10 103.10 80.83 78%

2010-11 111.61 98.54 88%

2011-12 121.00 NA -

(Prov.)

Cotton Production

With various Governmental measures under Mini Missions I and II of the Technology Mission on Cotton (TMC) launched by the Government of India in February 2000, by way of transfer of technology from research level to farm level, release of good quality certified seeds, improved cropping system, supervision techniques, pest management, usage of fertilizers and release of Bt seeds for commercial cultivation, the cotton production in the country since last seven years has been continuously increasing. In terms of cotton production, India is the second largest producer of cotton in the world, after China.

The details of cotton production in the country in past ten years are as follows:

Table begins

Production in lakh bales of 170 kgs

Year Production

2000-01 140.00

2001-02 158.00

2002-03 136.00

2003-04 179.00

2004-05 243.00

2005-06 241.00

2006-07 280.00

2007-08 307.00

2008-09 290.00

2009-10 295.00

2010-11 325.00

2011-12 355.00

(Prov.)

Source : Cotton Advisory Board

Cotton Consumption

Domestic consumption of cotton fibre has witnessed sustained growth since 2003- 04 onwards due to growing demands for Indian textiles and subsequently there has been considerable expansion and modernization of textile mills. The CAB has placed cotton consumption at 281.00 lakh bales for 2011-12 season as against 253.00 lakh bales in previous year. The details of cotton consumption in the country in past ten years are as follows :

Table begins

Quantity in lakh bales of 170 kgs

Year Mill con. Small Mill Non-Mill Total

2000-01 149.36 10.97 12.70 173.03

2001-02 147.00 11.70 13.06 171.76

2002-03 142.42 11.63 14.78 168.83

2003-04 150.39 13.00 13.71 177.10

2004-05 163.98 16.57 14.48 195.03

2005-06 180.00 19.00 20.00 219.00

2006-07 194.89 21.26 15.88 232.03

2007-08 195.67 22.08 19.13 236.88

2008-09 190.00 20.00 19.00 229.00

2009-10 207.00 23.00 20.00 250.00

2010-11 236.00 17.00 253.00

2011-12 (P) 264.00 17.00 281

Source : Cotton Advisory Board

MINIMUM SUPPORT PRICE (MSP) OPERATIONS

The Government is operating the Minimum Support Price (MSP) Scheme through the agency of Cotton Corporation of India Ltd. (CCI), a public sector enterprise, to ensure a minimum return to the farmer even in the depressed market conditions. The support prices are fixed by the Government for two basic varieties of cotton of fair average quality, recommended by the Commission for Agriculture Costs and Price (CACP). While one is the medium long staple length group of 24.5 to 25.5 mm with micronaire value of 4.3 to 5.1 of the variety F 414/H-777/J-34 and the other is the Long Staple Length group of 29.5 to 30.5 mm with micronaire value of 3.5 to 4.3 of the variety H-4 of new crop of Seed Cotton (Kapas). Based on the support price of these two basic varieties and taking into account the normal price differential and other relevant factors., the MSP for other varieties of seed cotton of fair average quality are fixed by the Textiles Commissioner.

MAN-MADE FIBRE

The Man-Made Fibre (MMF) and yarn industry comprises fibres and filaments of both cellulosic and non-cellulosic origin, generally referred to as rayon and synthetic fibres/yarns. The man made fibres play an important role in manufacture of Textile items especially Technical Textiles. While most textiles producing countries have a consumption ratio of MMF to cotton as 60:40, in India it is still 49:59 (F.Y. 2009-10). Considering the importance of this sector, Government is promoting the MMF sector and production of such fibres and yarns has shown a rising trend during the last five years to the extent that India is second largest producer (2009) in the world.

JUTE AND JUTE TEXTILES INDUSTRY

The Jute industry occupies an important place in the national economy. It is one of the major industries in the eastern region, particularly in West Bengal. Jute, the golden fibre, meets all the standards for safe packaging in view of being a natural renewable, biodegradable and eco-friendly product.

Globally, India is the largest producer and second largest exporter of jute goods and this sector supports the livelihood of about 40 lakh farm families, and provides direct and indirect employment to 4 lakh workers. There are 79 composite Jute mills in the country. Out of the total 79 jute mills, 62 jute mills are located in West Bengal, 3 each in Bihar and Uttar Pradesh, 7 in Andhra Pradesh and one each in Assam, Orissa, Tripura and Chhattisgarh. Annually, the export of jute products ranges between 1,300-1,400 crore.

The production of raw jute varies between 100-110 lakh bales (180 kg. each), and the domestic consumption of jute goods is in the range of 13.5-14.5 lakh MT. The production of jute is concentrated in 36 districts of West Bengal, Odisha, Bihar, Assam, Meghalaya, Tripura and Andhra Pradesh. In the 2010-11 jute season (June- July), the production of raw jute is expected to reach 104.83 lakh bales (of 180 kgs each).

The Government on June 2, 2006, approved the implementation of the Jute Technology Mission (JTM) at an estimated cost of Rs.355.55 crores, of which the outlay for mini mission III and IV is Rs.38.60 and Rs.260.00 crores respectively. The Department of Agricultural Research and Education, Ministry of Agriculture, launched the Mini Mission I of the Jute Technology Mission (JTM) on November 9, 2006. The Department of Agriculture and Cooperative, Ministry of Agriculture, launched Mini Mission II of JTM on December 21, 2006. Mini Mission III and IV were launched by the Ministry of Textiles on February 6, 2007. The JTM comprises four Mini-missions:-

(i) Mini-mission I-Strengthening of Research and Development

(ii) Mini-mission II- Transfer of Technology

(iii) Mini-mission III-Development of Marketing Infrastructure

(iv) Mini-mission IV-Modernisation/Upgradation of Technology of Jute Sector and initiation of activities for promotion of Jute Diversified Products.

The cap on subsidy for Acquisition of Machinery and Plant under Jute Technology Mission has been raised to Rs.3.5 crores per mill and Rs.4 crores per mill in respect of new mills in North Eastern Region (NER). A subsidy of Rs.31 crores has been disbursed under the Scheme (corresponding to investment of Rs.155 crores) for modernization of Jute Mills.

The revival package of National Jute Manufactures Corporation (NJMC) has been approved which envisages operationalisation of three jute mills viz. Kinnison and Khardah in Kolkata (West Bengal) and Rai Bahadur Hadrut Mill (RBHM), in Katihar (Bihar). The trial runs in the three jute mills have been completed. The RBHM in Katihar has already started its production.

There is great scope in Jute Diversified Products specially Jute Geo Textiles (JGT). The Ministry of Rural Development is to construct about 1,000 km. of rural roads using Jute Geo textile and Indian Railways would be using more Jute Geo Textiles in track repair and new tracks. In addition, international project with IJSG for testing, standardization and certification of JGI has been launched.

THE SERICULTURE AND SILK TEXTILES INDUSTRY

Sericulture is a labour-intensive industry since all activities involve labour support such as cultivation of silkworm food plants, silkworms rearing, silk reeling, and other post-cocoon processes such as twisting, dyeing, weaving, printing and finishing. It provides employment to approximately 72.5 lakh persons, most of whom are small and marginal farmers. Cultivation of sericulture is being practiced regularly in contiguous districts in the traditional States of Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal and J&K; in all the States of the North Eastern Region; in the tribal areas of Jharkhand, Chhatisgarh, Uttarakhand, Odisha. The silk processing industry has traditionally existed in clusters. India has the distinction of producing all the four commercially known varieties of silk, namely, Mulberry, Tasar, Eri and Muga.

Central Silk Board

Central Silk Board is a statutory body functioning under the administrative control of the Ministry of Textiles, Government of India. One of the earliest commodity boards constituted in April, 1948 under the Act of Parliament, the Central Silk Board is entrusted with the overall responsibility of developing the silk industry covering the full gaomut of sericultural activities in the country. Besides coordinating the development of sericulture industry in various States, the Board is also directly responsible for organizing sericultural research, training of sericulture personnel, basic seed production, monitoring of prices and impact of imports and exports, standardization and quality control measures etc. The CSB is also responsible for advising the Govt. on all matters concerning they development of the industry.

The programmes of Central Silk Board are broadly classified as under.

1. Major Programme CSB

1. RS.&D/Transfer of Technology/Training/IT initiative

2. Seed Support & Technical Assistance/HRD

3. Catalytic Development Programme 4. Quality Certification Systems

Research & Development

For carrying out Research and Development activities, the Central Silk Board has established 3 major Research institutes for Mulberry at Mysore (Karntaka), Berhampore (West Bengal) and Pampore (Jammu & Kashmir). The Institute at Ranchi (Jharkhand) deals with Tasar, whereas, the Institute at Lahdoigarh (Assam) is looking after research and development related to Muga and Eri sericulture. Post cocoon RS.&D activities are carried out by Central Silk Technological Research Institute (CSTRI), Bangalore. The Silkworm Seed Technology Laboratory (SSTL), Bangalore (Karnataka), is engaged in research on issues relating to Silkworm Seed.

While the Central Sericultural Germplasm Resource Centre (CSGRC), Hosur (Tamil Nadu) has the responsibility of maintaining sericulture Germplasm, the Seri-Biotech Research Laboratory (SBRL), Bangalore, attends to RS.&D in frontier areas like molecular characterization of silkworm races and mulberry varieties. In order to increase productivity and quality of silk, the chain of Research Extension Centers are engaged for transfer of technologies from Research Institutes of the field. The following table indicates the increase in productivity of silk during 4 years of 11th Plan.

Table begins

Unit : Metric Tonnes

Year Mulberry Mulberry Non-MulberryTotal Raw Per Ha.

Hecterage Raw Silk Silk Productivity

Coccon Raw Silk (in kg.)

Mulberry

Raw Silk

2007-08 184928 132038 16245 2075 18320 87.84

2008-09 177943 124838 15610 2760 18370 87.73

2009-10 188773 131661 16332 3368 19690 88.82

2010-11 170314 130714 16360 4050 20410 96.06

2011-12 (P) 171697 43395 5384 783 6167 -

(upto July, 2011)

P : Provisional

Training

The Research Institutes of the Central Silk Board provide training to the staff of the departments of Sericulture, Entrepreneurs and Stake holders of the Industry. The EDP Cell of CSB conducts Entrepreneurship Development programmes, and other related training programmes to improve the technical and managerial skills of the trainees. During 4 years of 11th Plan (upto June, 2011) a total of 16988 number of persons under different courses by the RS.&D Units and a total of 2200 persons under Entrepreneurship Development Programme were trained.

Seed Support

CSB has the responsibility for supply of basic, seed material of (both silkworm and its host food plants) required for further multiplication besides undertaking production of quality silkworm seed (F1) to supplement the efforts of the concerned state sericulture departments as a quality leader to a limited extent. Under this programme, technical assistance and field level training are also provided to the farmers by the Grainage extension centers. The CSB has a chain of Basic Seed Farms supplying basic seeds to the States. For commercial seed production with the efforts of the States in supplying commercial silkworm seed to farmers. CSB's commercial seed production involvement is about 10-12 percent of the country's current estimated production.

During the 11th Plan 20 grainages (SSPCs) of the NSSO have produced 1196.10 lakh quality dfls (upto June 2011) of different combinations. Similarly, the production of Eri, Oak Tasar, Tropical Tasar and Muga dfls during 11th Plan (up to June, 2011) has been 8.28 lakh, 6.86 lakh, 128.32 lakh and 6.84 lakh respectively.

Catalytic Development Programme (CDP)

The Catalytic Development Programme (CDP) consists of various components (about 57 in numbers) and sub-components under Mulberry, Tasar, Eri and Muga sectors. The programme is being continued and implemented as a Centrally Sponsored Scheme with certain modifications but in a package-mode during 11th Plan. The components are beneficial for both existing and new farmers for practicing sericulture. The State Departments of sericulture have to identify existing as well as new farmers and offer the components according to their requirements from out of the basket of components.

The packages under CDP covers three major areas— Seed Sector, Cocoon sector and Post cocoon sector and will be supplemented by other components of Support Services, which are common to all packages. This has been done after merger/ZBB exercise of 10th Plan Schemes. Within each package, flexibility can be built-in to cater to the specific needs of different seri-zones in the country. The main Working Group in Textiles and Jute Industry for 10th Plan constituted by the Planning Commission had in-turn constituted the Sub-Group on Sericulture, which has recommended continuation of the CDP during the 11th Plan with certain modification and some more inputs. The projections are also based on the recommendations made by the Sub-Group and the Working Group, the report of which has been submitted to the Planning Commission.

• The package under Seed sector is having components for seed production in the Public/Private sector and/or with public-private partnership in case of Mulberry sector and through support to States and also for private Graineurs in the Vanya sector.

• The package under Cocoon sector supports component for food plant development (Mulberry varieties like V-1 and Bivoltine hybrids/Double hybrids) together with the technology for a concerted effort to produce Biuvoltine silk, supply of rearing equipments including improved mountages, irrigation facilities, construction of rearing houses, supply of disinfectants, chawki rearing centre, with the essential insurance coverage for all sectors under Sericulture.

• The above packages are supplemented by other components of Support Services in nature, which are common to all packages.

Cluster Development Projects

In pursuance of the suggestion from the Planning Commission and Ministry of Textiles, Govt. of India, Central Silk Board (CSB) in close association with Departments of Sericulture has implemented Cluster Promotion Programme during 11th Plan-the main objective being promotion and development of sericulture on a sound footing in a limited geographical areas by means of transfer of latest technology in a systematic way and also through infrastructure upgradation of farmers, improvement of skills & knowledge of farmers and strict discipline in sericulture practices to improve production, productivity and quality of cocoons to support the targeted production of both mulberry and vanya silk. The programme was commenced during 2008-09 after obtaining the concurrence from the participating States.

Under the Cluster Promotion Programme, 45 model Sericulture Clusters have been organized in 16 States viz., Karnataka (7), Tamil Nadu (6), Andhra Pradesh (6), Jammu & Kashmir (4), West Bengal (3), Maharashtra (3), Orissa (2), Uttarakhand (2), Uttar Pradesh (1), Himachal Pradesh (1), Chhattisgarh (1), Assam/BTC (4), Meghalaya (1), Mizoram (1), Nagaland (1), and Manipur (2), covering Mulberry (31), Tasar (3), Oak Tasar (4), Muga (4) and Eri (3) sectors in pre-cocoon sector in close co-ordination with State Sericulture Departments. In Mulberry Sector, assistance has been provided mainly towards raising plantation, irrigation, supply of improved rearing appliances, disinfectants, support for chawkie rearing, construction of rearing houses, seri-poly clinics, insurance, beneficiary training programme, etc. In vanya sector the assistance extended for raising plantation, supply of rearing equipments/tools to seed and commercial rearers, private graineurs, construction of eri rearing houses, Farmers' Training/Study Tour, insurance support, etc.

These clusters have covered around 12846 farmers both in mulberry and vanya sectors during 11th Plan (upto July, 2011). This apart, 5 postcocoon clusters have been organized one each in the States of Tamil Nadu, West Bengal, Andhra Pradesh, Maharashtra and Assam, CSBs share of 3.83 crore has been released/sanctioned upto 2011-12.

This apart, seven mulberry clusters two each in Bihar and Himachal Pradesh, three in Kerala and one Eri cluster in Bihar have been established directly under CSB in 10th Plan and are continuing in 11th Plan (except eri culture in Bihar). While the Phase I of Cluster Development Projects in Bihar and H.P. have been completed during 2007-08, Phase II of cluster development projects for development of mulberry sericulture have been drawn for the States (i.e. Bihar-3 nos. and Himachal Pradesh-2 nos.) and the same are under implementation from 2008-09.

Application of Remote Sensing and Geographical Information System (GIS) in Sericulture

In order to map and identify additional potential areas for development of food plants for mulberry and Vanya sericulture in different states and to carry out an appraisal survey to evaluate the progress of sericulture development in few selected areas using remote sensing technology. The project is being implemented in collaboration with the NESAC, Shillong during the 11th Plan (2007-12) covering all the states, involving a total cost of 2.50 crores. Accordingly, the Central Silk Board, Ministry of Textiles, in association with North Eastern Space Application Center (NESAC), a unit of Department of Space, Government of India has taken up the project "Applications of Remote Sensing and GIS in Sericulture Development". The objectives of the Projects are :

• To map and identify the potential areas for development of food plants for mulberry and vanya sericulture in the non-traditional States on 1:50,000 scale.

• To carry out an appraisal survey to evaluate the progress of sericulture development (pre and post project) for a few selected areas from the four sericulture zones, and

• To develop and implement a network of Sericulture Information Linkage & Knowledge Systems (SILKS).

The Study Covers :

• States including NE States for -Identification of additional potential areas for development of silkworm food plants : All NER states including Sikkim (8 States), Bihar, Chhattisgarh, Himachal Pradesh, Jharkhand, Kerala Madhya Pradesh, Maharashtra, Odisha, Punjab, Uttarkhand and Uttar Pradesh.

• Selected areas/districts in the four sericulture zones, including traditional states viz., Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal & Jammu & Kashmir, will be covered for appraisal survey.

• All sericulture-practicing districts covered under the project will be covered for Sericulture Information Linkage & Knowledge System (SILKS).

Special Projects

The Central Silk Board is implementing integrated sericulture development projects in different states in collaboration with the State Sericulture Departments and the NGOs. The CSB is also implementing few special SGSY projects for sericulture development by availing the funds from the Rural Development Departments. During the last 3 years, the Central Silk Board has provided financial assistance to NGOs, under centrally sponsored Catalytic development Programme (CDP) being implemented during 11th Plan.

=Export Potential

The export earnings from the silk are growing steadily because of increasing demand for Indian Silk goods particularly from small markets-Asia region in addition to the traditional major markets like USA and European countries. During 11th Plan export earnings from silk goods of the country were Rs.2727.87 crores (2007-08), Rs.3178.19 crores (2008-09), Rs.2892.44 crores (2009-10) and Rs.2723.86 crores (2010-11). However, due to melt down in the global economy, sharp appreciation in the rupee vis-a-vis US$ witnessed in the year 2007-08 onwards, there was a slump in silk goods exports 18.3%, 4.8%, 13.4%, & 18.4% respectively when compared to the export of Rs.3338.35 crores at the end of 10th Plan (2006-07). Export earning for the year 2011-12 is available from the source for the month of April, 2011 only which was 163.13 crores, indicates a decrease of 12.6% (Rs.186.65 crores) over the same month of previous year.

Central Silk Board (Amendment) Act, 2006

The CSB (amendment) Act, 2006 was enacted to regulate the quality silkworm seeds and came in to force w.e.f. September, 2006. The broad objectives of the amendments are :

• To bring about the Qualitative improvement in silkworm seeds & seed cocoons to establish forward and backward linkages. The mechanism provided in the amendment ensures high quality silkworm seed used for basic seed crop rearing and also for commercial rearing of silkworms which ultimately helps in the production of good quality cocoons and silk yarn.

• To produce required quantity of quality seed.

• Seeds produced should be certified for quality and distributed to the farmers so that farmers are assured of quality.

• To develop ASR concept to constantly upgrade the quality as a part of backward linkage.

• To ensure quality production and certification, seed testing laboratories and seed Certification Centers have been proposed.

• The amendments effected are aimed to promote quality based seed & seed cocoon, free trade ensuring better and remunerative prices to the farmers, reelers, twisters and others in the silk production chain.

Silk Mark Organization of India (SMOI)

The Silk Mark Scheme was launched in India primarily to protect the silk consumers' interest. Silk in India has been facing unfair competition from man-made substitutes like viscose, polyester, nylon, etc. which is passed on to the unsuspecting consumers as pure natural silk, depriving them and the stakeholders like farmers, reeler, etc. the real value. This has been a serious problem in the Indian silk industry leading to lack of trust among consumers while buying silk.

Such unfair practices has also been affecting the Indian sericulture farmers rearers, reelers, graineurs and other stake holders who do not seem to get real value for their produce since these substitutes take the market share. The Govt. of India realising the seriousness of the issue, launched Silk Mark Scheme in June 2004 to help the consumers in identifying pure silk products. The Scheme is being implemented by the Silk Mark Organisation of India presently functioning under the Central Silk Board Ministry of Textiles, Govt. of India.

The Silk Mark Organisation of India has organised massive advertisements, awareness programmes, interactions with the various women's organizations, fashion institutes, textile research labs, consumer groups etc. During 11th Plan period till 2011-12 (upto July, 2011), more than 1300 programmes/events have been organised to crease consumer awareness. Silk Mark has reached many cities across the country. Some of these are Bangalore, Chennai, Mumbai, Pune, Hydrabad, Vijaywada, Kancheepuram, Salem, Coimbatore, Kolkata, Bhubaneshwar, Guwahati, New Delhi, Chandigarh, Varanasi, Lucknow, Srinagar, Trivandrum, Kochi etc. Extensive efforts were made for promotion of Silk Mark and consequently now, SMOI is a family of more than 1700 Members and more than 1.20 crores of Silk Mark labeled products has reached the market in the country.

As part of its efforts to protect consumers interest and for generic promotion of natural silk, the Silk Mark Organisation of India (SMO) continues to participate in various exhibitions and conducts expos/awareness programmes for consumers and trade across the country. In order to enable consumers to source pure silk products from different silk clustes of the country and also to provide a platform to authorised users to promote their exclusive silk products, the Silk Mark Organisation of India conducts a series of Silk Mark Expos in various cities across the country. During the 11th plan period, SMOI has conducted 52 Silk Mark Expos on a self sustaining basis in the cities of Bangalore, Mangalore, Mumbai, Pune, Chennai, Coimbatore, Hyderabad, Vishakapatanam, Kolkata, Bhuwaneshwar, Rourkela, Guwahati, New Delhi, Chandigarh, Lucknow, Jaipur, Kochi and Mysore.

Conducting such expos by SMOI has created an excellent platform for the weavers, designers, manufacturers, retailers etc not only to showcase their exclusive silk products but also to generate substantial business for them. A strong surveillance mechanism has also been put in place so that only 100% pure silk products are transacted during these expos which make Silk Mark Expos unique and different from other mushrooming silk expos in the country.

The Silk Mark has also made an entry into international arena by participating in major international events like Heimtextil, Silk Paradise, Tex Trends., International Handicraft Gift Fair, Australian Sourcing Fair, Namaste India etc.

The Wool and Woollen Textiles Industry

The woollen textiles industry is a rural based, export oriented industry in which the organized sector, the decentralized sector and the rural sector complement each other. This industry provides employment to 27 lakh workers in a wide spectrum of activities. The country is the sixth largest producer of wool and contributes 3 per cent to total world production. The production of indigenous raw wool was 45.0 million kgs in 2001-11. Of the total production of raw wool, 5 per cent is apparel grade, 85 per cent carpet grade, and 10% coarse grade. Domestic produce is not adequate, therefore, the industry is dependent on imported raw material. Wool is the only natural fibre in which the country is deficient.

A small quantity of specialty fibre is obtained from pashmina goats and Angora rabbits. There are 958 woolen units in the country, the majority of which are in the small scale sector. Government is implementing the Integrated Wool Improvement and Development Programme (IWIDP). Quality processing of Wool and Social Security Scheme for the growth and development of the wool and woollen industry in the country. The programme is being administered by the Central Wool Development Board (CWDB), Jodhpur, through State Government Organizations/ NGOs etc.

Decentralized Powerlooms Industry

The Decentralized Powerlooms sector is one of the most important segments of the textiles industry as it provides employment to 57 lakh workers and contributes approximately 62 per cent of total cloth production in the country. There are 22.55 lakh powerlooms in the country. The cloth output from this decentralised sector had increased from 30.63 billion sq. mtrs in 2005-06 to 37.52 billion mtrs in 2010-11.

More than 60 per cent of the fabric meant for export is sourced from powerlooms sector. The ready-made garments and home textiles sectors are heavily depended on the powerlooms sector to meet their fabric requirement. The major powerlooms cluster are at Erode, Salem, Madurai, Ichalkaranji, Solapur, Bhiwandi, Burhanpur, Bhilwara, Kishangarh, Ludhiana, Amritsar and Panipat. Powerloom sector produces a wide variety of fabrics for domestic as well as export markets such as shirting, suitings, dress materials, saree, dhoti, towels, chaddar, furnishing, shawls, blankets etc made out of cotton, blended, synthetic, silk, wool etc.

In order to overcome the problems faced by powerloom sector, Government of India has set up 44 Powerloom Service Centres (PSCs) in different clusters for promoting the development and growth of the decentralised powerloom sector to improve the technology level, skill development, design development etc. The Government has given a thrust for modernisation of the powerloom sector. The main emphasis was on Technology Upgradation Fund Scheme (TUFS). This scheme has given an impetus to powerloom sector and provided an additional option to the decentralised powerloom sector to avail 20% Margin Money Subsidy till 2012, in lieu of 5% reimbursement on investment in TUFS compatible machinery.

In addition to above, Government of India has introduced a Group Workshed Scheme for decentralised powerloom sector. The scheme aims at setting up of powerloom park with modern weaving machinery to enhance their competitiveness in the global market. Government of India has also launched a welfare scheme for powerloom workers viz. Group Insurance Scheme in association with Life Insurance Corporation of India.

Handlooms

The Handloom sector is an intangible asset of the rich cultural heritage of India. Nearly 43.31 lakh persons are engaged in the handloom weaving and its ancillary activities as per the latest Handloom Census of India (2009-10).

The all India Handloom Census (initiated in 2009-10) has successfully been completed and the final report was released on 23.12.2010. Photo identity cards (PICs) for the eligible handloom weavers and allied workers have been issued. As per Third Handloom Census there are 43.31 lakh weavers & allied workers and 23.77 lakh handlooms across the country.

The fabric production, which was witnessing a down turn, has staged a smart recovery. The sector produced over 6,903 million sq. meters of handloom cloth in 2010-11. Moreover, the export of handloom products increased by more than 6% during 2010-11.

The Finance Minister in his annual Budget Speech 2011-12 has announced the Financial Package of Rs.3,000 crores for the Handloom sector which will benefit more than 15,000 Handloom Weavers' Cooperative Societies and more than three lakh handloom weavers for cleansing the overdue loans and interest of Weavers' Cooperative Societies and for providing loan to handloom weavers at lower rate of interest. In addition to this, the reduction of import duty on silk yarn from 30% to 5% (also announced during the Budget Speech) has brought down the prices of raw silk and stabilized the prices of domestic and imported raw silk.

The Schemes of the Government of India have played an important role in support and preservation of traditional skills and to facilitate the market linkage for the benefit of the handloom weavers. Four Mega Clusters at Varanasi (UP); Sivasagar (Assam); Murshidabad (WB) and Virudhnagar (TN) have been identified for the development of 25,000 looms in these four clusters. This is addition to 20 Pilot Projects (having 5000 looms each) running successfully in major handloom states all over the country. 541 clusters (having 300-500 looms) and 1788 Group Approach Projects (having 10-100 weavers' population) has also been developed throughout the country to provide various developmental and welfare schemes to enable the handloom weavers to withstand competition from powerloom and mill sectors.

During 2010-11, sales worth Rs.410 crores has been reported in 680 events. The websites provide free access to 1250 design, trends/forecast and linkage to various other related websites on handloom development activities. Market support is also being provided in the form of Marketing Incentive @ 10% on the average sales turnover for the last three years. To protect the distinctive identify of handloom products the handloom products the Handloom Mark and Geographical indication (GI) registration has been provided to traditional handloom products from specific regions such as chanderi; Varanasi, west Bengal etc.

As a social security cover, the Health Insurance Scheme provided comprehensive health insurance cover worth Rs.15,000/- (out of which Rs.7,500/- is for OPD) to more than 16 lakh weaver families. The Life Insurance Scheme provided life insurance cover in case of death or disability to 5.27 lakh weavers. During 2010- 11, scholarship benefits of Rs.300/- per quarter per child studying in standard IX to XII have been provided to 1.55 lakh weaver's children.

Five Indian Institute of Handloom Technology (IIHTs) and 25 Weavers' Service Centres are running at Varanasi, Salem, Guwahati, Jodhpur & Bargarh. These IIHTs are conducting 3 years Diploma Course in handloom technology to provide professionally qualified manpower to the Indian Handloom Industry. National Handloom Development Corporation (NHDC), a Government of India undertaking supplies yarn to eligible handloom agencies through 750 yarn depots and also reimburse the transportation expenses involved in the supply of yarn and expenses on operating the yarn deposits @ 2.5%. During the 11th Plan, 3893.62 lakh kg. of yarn valuing Rs.3783.58 crore (upto August 2011) has been supplied to the eligible agencies under the scheme.

Handicrafts

Handicrafts represent the rich and diverse cultural heritage of the country. Their cultural importance pertains to ensuring the preservation of heritage, traditional skills and talent. Their economic importance lies in their high employment potential, low capital investment, high value addition, and potential for export/foreign exchange earnings. The sector provides employment to an estimated 78.45 lakhs artisans during 2011-12 of which 47.42 per cent are female, 24.73 per cent belong to Scheduled Castes, and 12.38 per cent to Scheduled Tribes and 22.98 are minorities. The Government had launched the Rajiv Gandhi Shilp Swasthya Bima Yojana in March 2007 to provide health care services to the artisans family, including self, spouse and two children.

The Handicrafts sector has emerged as one of the most important foreign exchange earners for India on a sustained basis. India is the world leader in exported carpets with 26 per cent of global share. The progress in terms of product range, number of companies and value of exports has been tremendous-in 1997-98 exports of handicrafts were Rs.6457.69 crores and these reached the peak of industry ie Rs.13526.66 crores (including hand-knotted carpets) in 2010-11. The target of exports during 2011-12 has been fixed at Rs.15930.00 crores.

The Government has sanctioned 39 urban Haats across the country on the pattern of Delhi Haat to provide direct marketing outlets to artisans from rural and urban areas. The 20 Urban Haats at following locations have become operational. Jammu and Srinagar (J&K) Uchana Karnal (Haryana), Jodhpur and Jaipur (Rajasthan), Gohar Mahal, Bhopal (M.P.), Ahmedabad and Bhuj (Gujarat), Mysore (Karnataka). Tirupati (Andhra Pradesh), Bhubaneshwar, Konarak and Puri (Odisha), Agra and Varanasi (UP) and Pitampura, and INA (Delhi), Dimapur (Nagaland) and Raipur (Chhattisgarh), Mumbai (Maharashtra)

RESEARCH AND DEVELOPMENT

Textiles Research Associations (TRAs)

There are eight Textile Research Associations (TRAs) the Ahmedabad Textile Industry Research Association (ATIRA), the Bombay Textiles Industry Research Association (BTRA), the South India Textiles Industry Research Association (SITRA) and the Northern India Textiles Industry Research Association (NITRA) which carry out consultancy, testing training and research and development in cotton and cotton/ synthetic as well as cotton/natural fibre blends. The Man-made Textiles Industry Research Association, (MANTRA), and the Synthetic and Art Silk Mills Research Association (SASMIRA) work predominantly in synthetics. The Wool Research Association (WRA), and the Indira Jute Industry's Research Association (IJIRA) carry out work in wool and jute, respectively.

The Government recognizes that innovation is the key to survival in the globalized world. Continuous innovation in technology, machinery, products and processes is necessary for the Industry to fully exploit the opportunities available in the world market. To achieve the above objective, the Government during the 11th Five Year Plan period (2007-12), is adequately supporting TRAs.

Textile Committee

The Textiles Committee is a statutory body, constituted under the Textiles Committee Act 1963, under Ministry of Textiles; Government of India with an aim to ensure that quality of textiles and textile machinery for domestic and international market. The organisation works with a network of regional offices across the country and has more than five hundred technical personnel working with the committee. The committee has five major departments. They are (1) Testing Laboratories (2) Export Promotion and Quality Assurance (EP&QA) (3) Market Research and Intelligence study, GI Facilitation (4) Total Quality Management (TQM) and (5) Cluster Development Programme (CDP) (6) Integrated Skill Development Scheme (ISDS) and (7) Govt. Sponsored schemes such as (a) Assessment and Grading of Ginning and Pressing Factories (b) Handloom Mark Scheme and (c) Post GI Initiatives.

• The organisation runs the largest network of textile testing laboratories in the country and eighteen world-class laboratories in major textile centres across the country for providing testing facilities for textiles, chemicals, dyes and effluents.

• The Export Promotion and Quality Appraisal (EP&QA) Department of the Committee is rendering services to more than 32,000 exporters registered with Textiles Committee by issuing certificates or origin, classifying garments and making provision for quality appraisal.

• The Market Research Wing of the Textiles Committee collects and disseminates information released to textile consumption, production, distribution and related matters in the country for facilitating planning by industry, trade and the Government and also provides consultancy on specific requirements of the Government and Industry. Besides the above, the wing creates databases for the Industry and trade. As a part of supporting the traditional textile products for protecting their Intellectual Property Rights (IPR), the Geographical Indication registration is facilitated by the wing.

• In the post liberalisation era, the organisation has also reoriented its role from being a regulatory organisation to become a facilitator for quality Improvement in Indian textile and clothing industry. Now the Textiles Committee in collaboration with United Nations Conference on Trade and Development (UNCTAD) is implementing the project "Strategies and Preparedness for Trade and Globalisation in India for Textiles & Clothing Sector" for Trade Related Capacity Building (TRCB) of the stakeholders on emerging issues of international trade and its effect on textiles industry.

• The TQM consultancy division has been working with ISO certified quality engineers and well trained personnel to provide consultancy to the textile industry for implementation of ISO 9000, ISO 14000, SA 8000 and other quality/environmental management systems. So, far, more than 300 companies have benefited by this service of the Committee.

• The organisation is also implementing the Cluster Development Programme in the country. At present three clusters namely Shantipur in West Bengal. Trichy in Tamil Nadu and Bijnore in Uttar Pradesh are under implementation.

• The committee is also imparting training to the quality professionals under the Integrated Skill Development Scheme (ISDS). The course will facilitate supply of quality professionals to the industry after imparting training on different facets of textiles including textile testing. The project has been launched in 10 different centres of the country. The programme aims to address the shortage of trained manpower and to lap the huge employment potential of the sector. Once trained, the professionals will be called as Textiles Committee Certified Quality Professionals (TCCQP).

• The organisation is also implementing various Government sponsored schemes. The present schemes are

• The Textiles Committee is implementing the Handloom Mark Scheme as implementing agency to provide a collective identity to the handloom products that can be used for popularizing the hand woven products both in domestic and international market. The scheme also guarantees the buyer about the genuineness of the hand woven products. Besides, this would provide a distinctive name in identifying the product or he manufacturer. The Handloom Mark would, therefore, be a hallmark of powerful creative work that defines the product clarity, distinguishing it from competition and connecting it with customers. The Office of the Development Commissioner for Handlooms, Government of India is the nodal agency for the scheme.

• The organisation is also implementing the Scheme on "Assessment and Rating of Ginning and Pressing Factories" in India for enhancing quality of cotton.

HUMAN RESOURCE DEVELOPMENT (HRD)

Integrated Skill Development Scheme

The Integrated Skill Development Scheme was launched in July 2010 in the pilot mode for the 11th Five Year Plan. In all 14 proposals have been sanctioned with another 4 having been granted in principle approval. Total approved project cost of the proposals including in principle approvals is around j 433 crores with the grant component of j 322 crores targeting 4.34 lakhs trainees over a period of next five years.

Around 150 centres have become operational and more than 12000 candidates have been enrolled/trained. In the component II of the scheme dealing with projects in PPP mode, an RFP was issued and 47 proposals have been received. It is expected that projects worth j 70 crores shall be sanctioned with a grant component of j 52.50 crores targeting around 70 thousand trainees over a period of next five year.

Objectives of the Scheme:

• To address the trained manpower needs of textiles and related segments including Handicrafts, Handlooms, Sericulture, Jute. Technical Textiles etc, by developing a cohesive and integrated framework of training based on the industry needs. Addressing this need is critical for enhancing the competitiveness of the industry in the globalised economy.

• To increase the above, while simultaneously ensuring sufficient flexibility to meet the dynamic needs of these segments over a period of the next five years.

• To create a trainers' pool by conducting the advance training programmes at a cluster level employability of residents of the target areas through imparting of skills in the above segments.

• To ensure that the scheme is so designed as to cater to the wide range of skill sets required in various segments as listed.

Salient Features of the Scheme

• The Scheme would work on the basic principle of leveraging on existing resources and infrastructure as advised by the Planning Commission. Further, private sector participation would also be encouraged.

• The Scheme would target to train approximately 2.56 lakh persons during 2010-11 and 2011-12.

• It would cover all segments under the ambit of the Ministry. viz. i) Textiles and Apparel ii) Handicrafts iii) Handlooms iv) Jute v) Sericulture vi) Technical Textiles

• All facets of skill development will be covered viz. Basic Training, Skill upgradation, Advanced Training in emerging technologies. Training of Trainers, orientation towards modern technology, retraining, skill upgradation, managerial skill, entrepreneurship development etc.

• The training programme will be designed based on industry demand in different segments. The emphasis will be on measurable outcomes, wherein it will be ensured that all successful trainees are certified through an accredited agency. The training institutions supported under the scheme shall be required to enter into contract with a private partner for part funding as well as designing of the courses to be supported under this scheme.

• Private sector participation will be ensured, and outcomes will be strengthened by incentivising training where the trainees get employed/ self-employed after training is imparted.

• The average cost per trainee (for the Government) to be borne through the Scheme would be approximately j 7300/-.

• The Govt will meet 75% of the total cost of the project, and balance 25% would be met from Fee/ Industry Contribution. However. in courses/ programmes (of Component-I) where it is not feasible to organise the beneficiary contribution, the Empowered Committee shall be authorised to approve a higher level of government assistance.

National Institute of Fashion Technology (NIFT)

The National Institute of Fashion Technology was set up in 1986 as an autonomous Society in collaboration with the Fashion Technology (FIT), New York, to train professionals to meet the requirements of the textiles industry. The Institute has pioneered the evolution of fashion business education across the country through its network of fifteen (15) centres at New Delhi, Bangalore, Chennai, Ghandhinagar, Hyderabad, Kolkata, Mumbai, Rae Barli, Patna, Bhopal, Shillong, Kannur, Kangra, Bhubhaneswar and Jodhpur. NIFT will open a speciality Centre at Coimbatore very shortly. NIFT, besides conducting regular professional undergraduate and postgraduate programmes in Design, Management and Technology, also offers short duration part-time courses under its Continuing Education (CE) Programme.

The National Institute of Fashion Technology Act, 2006 came into force on July 14, 2006 and comes into effect from 1st April 2007. The Act provides statutory status to the Institute and formally recognizes its leadership in fashion technology sector, and empowers NIFT to award degrees to its students. NIFT is the first institute in the world to award degrees in fashion eduction.

Statutory Status

NIFT Act 2006 has accorded statutory status for the promotion and development of Education & Research in Fashion Technology with the President of India as the Visitor. The Act signifies public confidence in NIFT as a thought leader, with 'fashion' (defined in a much wider context) as a business strategy for value addition. NIFT is supported by the Ministry of Textiles and governed by the Board of Governors (BOG) and it Chairperson nominated under NIFT Act, 2006. The Director General is the Chief Executive Officer of the Institute with Head Office and a network of twelve Centres.

Leadership in fashion technology education

NIFT has been instrumental in bring about a paradigm shift in the perception of 'fashion' in India, with its connotation extending beyond the conventional apparel industry, to integrate with every aspect of the lifestyle industry. Fashion today encompasses popular trend or a lifestyle, specially in styles of dress and ornament or manners of behavior of the business of creating, promoting or studying styles in vogue or the designing, production and marketing of new styles of goods such as, clothing, accessories, craft and cosmetics, thus adding tremendous value to diverse industry and businesses.

Curriculum restructuring with international benchmarking

The new internationally benchmarked curriculum is aimed at providing education in a 10+2+4 pattern, consonant with global professional eduction system. Highlights of the curriculum include a common one-year foundation programme, craft experience, industry internships and a choice of intra-and inter-departmental electives, along with options for Twinning Programmes with international institutions. Students participate in international competitions, exposing them to the professional world and orienting them to the global industry adding to the country's talent pool in design, management and technology.

Cluster Development Initiatives

NIFT has made concerted efforts to mainstream the craft tradition of the country as an integral component of the curriculum of all programmes. It focuses on training, design intervention, technology upgradation, establishing market linkages and promotion. To facilitate this initiative, Rural Development Enterprise Centres at the cluster hubs and Shares Resource Technology and Support Centres at the sub-cluster level, have been established across the country. In all 10,000 artisans living below the poverty line in the States of Karnataka, Madhya Pradesh, Gujarat, Kerala and West Bengal will be benefited by this initiative.

NIFT has translated its vision of 'concern for social and human values' into a workable proposition by imparting knowledge to many NGOs strengthen their capabilities through classroom and other projects. Integration of craft cluster project into academic curriculum provides entrepreneurial experience, holistic learning, and real life care studies to students and faculty.

Technical Support

Over the years, NIFT has provided technical support and guidance to institution catering to the industry at the managerial, suppervisory, and shop floor levels as well as the institutions in the sub-continent. Over 75 Fashion Institutes, Schools, Education Boards and organizations have benefited from NIFT's expertise in developing fashion education programmes, infrastructure development, and systems management.

Governance

NIFT has commissioned Information & Communication Technology (ICT) enabled Enterprise Resource Planning (ERP) across NIFT Centres for online monitoring and evaluation of performance through Balanced Score Card linking it to the scheme of rewards and incentives.

New Initiatives

As a part of Research Initiative, NIFT has conceived two major research projects at "All India Level" namely. (i) Size India and 2) Design intelligence for Fashion Industry, two areas of critical contemporary relevance to the Fashion Industry, with Academic and Industry Collaborators. The findings of the research are expected to have far reaching impact on the fashion sensibilities of Indian population not without influencing the international fashion.

Sardar Vallabhbhai Patel International School of Textiles & Management

Sardar Vallabhbhai Patel Institute of Textiles Management set up in 2002 at Coimbatore. Tamil Nadu was upgraded into Sardar Vallabhbhai Patel International School of Textiles and Management (SVPISTM) and dedicated to the nation on July 7, 2010.

On July 7, 2010 SVPISTM entered into MoU with IGNOU which enables SVPISTM to offer certificate, diploma and degree programmes under the patronage of IGNOU for improving availability of educated and skilled manpower in the industry. Under this arrangement, MBA (Textile Management) course is offered at SVPISTM.

On 16th December 2010, SVPISTM entered into MoU with Technical University of Liberec, Czech Republic, providing for international exchange of research information, faculty, students etc. During 2010-11, MoUs have been signed with textile research associations viz., IJIRA, BTRA, SASMIRA, in the area of technical textiles.

SVPISTM won prestigious 18th Dewang Mehta Best Business Social Award (Under the category of Business School with best Industry Interface) on 24th November 2010.

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.

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

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)

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

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

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

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.

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.

MINERALS

Ministry of Mines is responsible for survey and exploration of all minerals, other than natural gases, petroleum and atomic minerals, for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel etc. and for administration of Mines and Minerals (Development and Regulation) Act, 1957 in respect of all mines and minerals other than coal, natural gas and petroleum.

Geological Context

Geologically India is divided into-

The Indian Peninsula (shield) comprising 1.9 million sq km

The Indo-Gangetic Alluvial plains comprising 0.5 million sq km

The Extra - Peninsula (Himalaya) comprising 0.7 million sq km.

The Indian Peninsula covers the area south of the Vindhyas, and the region is a plateau formed by the survival of the harder rocks, resistant to weathering. The region is made of stable and strong rock formations. The stratigraphic units are the Archaean Rocks (Dharwar and post-Dharwar). the Purana Group of Proterozoic rocks (Cuddapah and Vindhyan systems) the Gondwana sequence of Paleozoic and Mesozoic rocks and the Deccan Traps of the Mesozoic-Cenozoic era. Archaean rocks occupy two-thirds of the Peninsula spread over Tamil Nadu, Kerala, Karnataka, Andhra Pradesh, Odisha, Chattisgarh and Jharkhand and in a narrow tract extending from northern Gujarat into Rajasthan, forming some part of the Aravalli mountain range, as well in the Shillong plateau. Archaean rocks are the store house of mineral wealth, and except for coal, oil, gas and a few other mineral deposits, all our mineral wealth are in the Archaean areas.

The Cuddapah System of Purana rocks mainly comprise quartzite, limestone and slate and the Vindhyan system mainly comprises sandstones and shales with limestones with diamondiferous conglomerates. The Gondwana sequence of massive sedimentary rocks in linear tracts along Narmada-Son-Damodar alignment, along Mahanadi and along Godavari (and other outcrops) holds much of the coal reserves of the country. The offshore regions of some of these rivers are storehouses of gas and oil.

The Deccan Trap consisting of basaltic flows through long and narrow fissures and at places eruptive volcanoes resulted in formation of lava spread over some 15 lakh sq km, mainly in Gujarat (Kachchh), Madhya Pradesh, Maharashtra, Karnataka and Andhra Pradesh. The lava sheets have a thickness of nearly 2000 m in the western Ghats. The Trap rocks are good for building stones. road metal etc., though weathering of high grade basalts result in lateritic deposits at many places.

The Indo Gangetic plains stretching from Sindh (Pakistan) and Punjab in the west to Bengal and Assam in the east consist of alluvium of Recent (Quaternary) origin with a thickness of 1500 - 6000 m lying over older formations. Because they were created during uplift of the Himalaya and that the Himalaya is actively being eroded by many energetic rivers, this area is of geological interest from point of view of seismicity, its hydrology and natural hazards.

The Extra Peninsula region comprises the mountain chains of Baluchistan (Pakistan) to the Himalaya to Arakan Yoma (Myanmar). Being of recent origin and tectonically active the area is unstable, and barring a few areas of older rocks, usually consists of marine sedimentary rocks of the Cambrian to Cretaceous times in the inner areas. The sediments of the outer Himalaya (Shivaliks) being freshwater sediments are of geological importance because the Tertiary rocks of freshwater sedimentary origin may contain reserves of petroleum, seeing that similar rocks of Assam, Gujarat, Cambay and off shore areas have yielded results.

Mineral Legislation

India is richly endowed with many minerals. Under the Constitution, mineral rights and the administration of mining laws are vested in the respective State Governments. The Central Government, however, regulates the development of mines and minerals under the Mines and Minerals (Development and Regulation) Act, 1957 and the rules framed thereunder. The MMDR Act 1957 came into force on 1.6.1958 and a number of amendments have been carried out in 1972, 1986, 1994 and 1999.

This statute empowers the Central Government to formulate rules for (a) the grant, renewal, etc. of reconnaissance permits, prospecting licences and mining leases for major minerals viz. Mineral Concession Rules, 1960, framed under Section 13 of MMDR Act 1957; and the conservation and development of minerals, (viz. Mineral Conservation and Development Rules, 1988 framed under the Section 18 of the MMDR Act. 1957 for major minerals. These Rules are not applicable to atomic, fuel and minor minerals. Powers are vested under Section 15 of the above said Act, to the respective State Governments to frame Minor Mineral Concession Rules. And accordingly all State Governments and some Union Territories have framed their own Rules.

The Granite Conservation and Development Rules, 1999 and Marble Development and Conservation Rules 2002 are also framed under Section of 18 of the MMDR Act, 1957 for conservation and systematic development of granite and marble resources in the country, respectively.

Important Features of National Mineral Policy, 2008

As a sequel to the recommendations of the Hoda Committee which was constituted by the Planning Commission to review the National Mineral Policy, a New National Mineral Policy, 2008 was approved by the Government. The policy advocates:-

(i) use of State-of-the-art technology for exploration;

(ii) zero waste mining;

(iii) development of capital market structures to attract risk investment into survey and prospecting;

(iv) Transparency in allocation of concessions;

(v) auction of ore bodies prospected at public expense

(vi) Independent Mining Administrative Tribunal;

(vii) a framework of sustainable development to take care of biodiversity issues etc.

A draft Bill to replace the existing MMDR Act is under consideration of the Government and consultation process with Stakeholders including State Governments and Industry is under way.

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)

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.