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AN ENTERPRENEURSHIP PROJECT REPORT
ON
STEEL AND ALLOY CASTING
Submitted by:
SOUMYA RANJAN PANIGRAHI
REGD. NO.:-0601216209
UJJWAL KU. BHAKAT
REGD. NO.:-0601216210SOUMYA RANJAN BEHERA
REGD. NO.:-0601216217
AMIT KU. RANJIT
REGD. NO.:-0601216220
SIDDHARTH MEHER
REGD.NO.-0501216246
Electronics & Telecomm. Engg.
Supervised by
Mr. B.M.Shetty
Miss T.Behera
PADMANAVA COLLEGE OF ENGINEERING, ROURKELA
BIJU PATNAIK UNIVERSITY OF TECHNOLOGY
ROURKELA, ORISSA
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INTRODUCTION OF ENTREPRENURSHIP
ENTREPRENEURAL PHILOSOPHY
EXPECTATIONS OF ENTREPRENEURSHIP
CHARACTERISTICS OF ENTREPRENUR
CHALLENGES FOR ENTREPRENURSHIPPROJECT
ROLE OF FIs & BANKS IN SSI FINANCING
MAJOR STEPS TAKEN BY THE FIs & BANKSFOR ENTREPRENURSHIP PROGRAMMEPRODUCT AND ITS APPLICATIONS
APPLICATION FIELDS
MARKET POTENTIAL
RECOMMENDED PROJECT CAPACITY
MANUFACTURING PROCESS
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TESTING
INSPECTION
SOME ESTEEMED CUSTOMERS
DETAILS SPECIFICATION OF MACHINARYS
LIST OF PLANT & MACHINARY
REQUIREMENT OF RAW MATERIALS ANDCONMABLE
REQUIREMENT OF INFRASTRUCTUREFACILITIES
COST OF PROJECT
PROFITABILITY ESTIMATES
RULES & HR POLICY
REGULATIONS
BENEFITS
ALLOWANCES
LEAVE TECHNICAL & FINANCIAL CONSULTANCY
SUPPLIERS OF MACHINARY AND RAWMATERIALS
INDUSTRIAL POLICY
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OCCUPATIONAL SAFETY AND HEALTH FORTHE TENTH FIVE YEAR PLAN (2002-2007)
ENVIRONMENTCLEARANCE PROCEDURES
CONCLUSION LIST OF ABBREVIATIONS
Introduction of Entrepreneurship
The word entrepreneur has its origin in the French language. It
refers to the organiser of musical or other entertainments.
Entrepreneurship can be described as a creative &
innovative response to the environment. Such response can take
place in any field of social Endeavour-business, agriculture,
education social work the like.
An entrepreneur is one who organizes, manages & assumes
the risk of an enterprise. An entrepreneur visualizes a business,
takes bold steps to establish under taking, co-ordinates the various
factors of production gives it start.Entrepreneurs are the owner of the business who contribute the
capital & bear the risk of uncertainties in business life.
Entrepreneur is action-orient & highly motivated person who has
the ability to evaluate business opportunities, to gather the
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necessary resource to take advantage of them & to intimate
appropriate action to ensure success.
Entrepreneur takes decision regarding what to produce,
where to produce & whom to produce. He mobilizes other factorsof production namely; land, Labour, capital, organization&
initiates production process. He is responsible for either profit or
the loss. Entrepreneur is associated with innovations. He is the
main factor of production.
Entrepreneurial Philosophy
1. To take calculated risk
2. Willingness to accept responsibility for ones own work .
3. Failure must be accepted as a learning experience.
4. Goal orientedness.
5. Acceptable results are more important than perfect
results.
6. Personal growth.
Expectations of Entrepreneurship
It are expected from the entrepreneurs that they will help: -1. Increase number of industries.
2. Increase production.
3. Increase employment opportunities.
4. Earn foreign exchange through exports.
5. Develop the underdeveloped parts
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of the country. 6. Economical development.
Characteristics of Entrepreneur
Self Confidence
Task- Result oriented
Risk taker
Leadership
Originality
Future oriented
Challenges for Entrepreneurship Project: -
1.Technology up gradation: - It is found that our small scale sector is
not able to compete because of outdated technology. We must
appreciate that small scale Industry has to keep itself updated and
then only it can sell goods. In the post WTO era, the best thing
would be available anywhere in the world as there is no restriction
for goods to move. People will purchase only if the gods are ofgood quality. We must remember that we may or
may not need imported technology for up gradation. Our small
industries have the advantage of developing in import substitution
period. Many SSI can therefore become world class with only
small modification or improvement.
2. Testing facilities: -
Because our small scale industries are situatedin far flung areas there for it is not possible to service by one or
two central laboratory. We suggest that educational institution
even in small town should be equipped to provide testing facilities
to small scale industries.
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3. Exports: - We find that small scale
industries engagedin exports do not have any benefits, althoughthey count for bulk export. We strongly advocate specialconcession for small industries which are engaged in exports.
4.
Involvement of industrial association: - We fell that many problems of small sector can be taken
care of if industrial associations are involved in a big way.
5. Infrastructure development: -Small scale industries suffer maximum
from lack of infrastructure development. The quality of power is
bad and the power available is at very high cost. This must be
corrected. Roads are bad. Communication facilities are not up to
mark etc.
6. Credit: - The credit is still not available
to small scale industries. The credit guarantee fund created bySIDBI is not being exploited as there are still short coming in the
scheme.
7. Skill up
gradation: -Small scale industries are known for providing on job training. But
in the post WTO era when cost cutting is order of the day, the
people are running small scale industries must be skilled and these
skills must be up graded continuously so tat they are in the job &no unemployment result.
8.
Marketing: -The present market assistance scheme is most welcome.
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More such scheme are required. Small scale industries are being
bundled out of the market by aggressive advertisement done by
large & multinationals. The small sector must be protected from
this, if the small sector has to survive.
9. Changing the Labour laws: -The present Labour laws must be
changed to have more flexibility & suitability for running of small
scale sector.
10. Removal of
inspector : - A small scaleindustry is generally a single man show. He cannot find time to
attend to all the inspectors visiting small scale factory. The
inspector must be finished.
Conclusion can be taken considering above challenges SSI unit in
the following areas will have a bright future & compete with world
industries very well as the areas of our strength: -
1. Tourism & hotel industry
2. Dairy industries
3. Food processing industries4. Floriculture
5. Shoe & leather industries
6. Forging unit
7. Steel alloy casting
8. Plastic processing industry
ROLE OF FIS & BANKS IN SSI
FINANCING:The credit needs of
entrepreneurs could be divided in three parts:- short term, medium
term and long term finance. Accordingly, the conventional
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mechanism for financing of SSIs in India stressed provision of
terms loans and working capital. The public & private sector
banks, Small industries development Bank of India (SIDBI),
Regional Rural Banks (RRBS), urban Cooperative banks (UCBs)
and foreign loans for setting up of new industries or modernizationof the exiting ones, Khadi and Village Industries Commission
(KVIC) and Khadi & Village Industries Boards (KVIC) ,Khadi and
village Industries Boards (KVIBs) assist in financing Khadi and
Village industry sector. National small industries corporation
(NSIC) and state small industries corporation (SSICs) in their own
way, also attempt to develop the cottage and small scale sector by
supplying machinery on a hire-purchase basis to small-scale and
ancillary industries, inclusion of the value of machinery andequipment already installed.
SFCs are one of the oldest credit
institutions in the country which mainly cater to he long term
credit needs of small & medium enterprises. At present, there are
18 SFCs covering the entire country & they have been in existence
for 5 decades now. The cumulative sanction & disbursement of
SFCs aggregated Rs33000 crore & Rs27000 crore respectively.It needs to be high lighted that almost 75% of SFCs assistance
flows to the SSI sector. Over the years the financial health of SFCs
has become a cause of concerns. Some of the reasons for the poor
financial health of SFCs is poor recovery performance increase in
non-performing assets Govt. of India had amended the SFCs act
1951 in the year 2010 so as to give them more operational
flexibility & freedom so that they can improve their performance
& play their role more effectively.
MAJOR STEPS TAKEN BY
THE FIS & BANKS FOR ENTREPRENEURSHIP
DEVELOPMENT: -
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Sub allocation of credit for SSIsector with priority basis: - In order to achieve a high
rate of GDP growth, there is an imminent need to earmarkallocation of credit to sector out of the total priority sector
allocation. Factory Services: -
In order to mitigate
the post sale problems of ENTREPRENEURS in realizing the sale
proceeds, there is a need to encourage bills culture without
recourse. Recently, RBI had advised the banks to take a pro-active
stance in providing help to the ENTREPRENURS which are
affected by delays in payments against supplies made by them to a
large scale 7 other units. In this context, there is a need to create
conducive climate for development of factoring services throughappropriate policy prescription/legislative changes, rationalization
of stamp duty, registration charges & assignment of debt. Etc.
Collateral free lending: -RBI advised to the banks
to dispense with collateral requirement for loans from the existing limit of
Rs5lakhs on the basis of good track record of the units & their financial
position. In this context, it is expected that banks would come forward to
implement these directives in letters & sprit, extend collateral free credit to
the borrowers.
Technology up
gradation fund scheme for entrepreneurs: - After launching of TUFS by GOVT. OF INDIA, interest reimbursement of 5% on
the interest charged by FIs/banks for rupee loans or cover free exchange rate
fluctuations not exceeding 5% in respect of foreign currency loans for bench
marked technologies provided to the units. Commercial banks, with their
vast branch net work, can play a very important role in facilitating creation
of awareness about the scheme so as to maximize the flow of credit to the
eligible units.
ROLE OF DIC
(DISTRICT INDUSTRY CENTRE) FOR
ENTREPRENURSHIP PROGRAMME: -
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During district reformation programme of Govt. of
Orissa, 13 districts became 30 districts. The major objective was
Administration can reach to the lower level of society & different
development project can be successfully implemented. Thisobjective gave a new vision to District Industry Centre.
District Industry Centre is the gate way of
industrialization program. Same time it works as the technical
supporting body for ENTREPRENURSHIP. This is the working
body of Government of Orissa, under the ministry of INDUSTRY.
It also works as a supporting structure for implementation of
different EMPLOYMENT PROGRAM. Major objective is to set
up a DIC to promote the entrepreneurship at the grass root level.Due to globalization & fluctuating competitive market
strategy Entrepreneurs were facing a lot of problems to set up an
enterprises through our conventional burecracy functions. DIC
arranges to remove the legal barriers for establishing
ENTREPRISES. DIC is going to adopt the single window
system for entrepreneurship. Same time it promotes self
employment programme among technical unemployed as well as
Non-technical unemployed through skill development programme.
DIC increases employability of the community. It also helpspoverty elevation programme.
It co-ordinates different projects for SELF HELP
GROUP basically those are formed by lower income level of
society. DIC is also coordinating different welfare programme for
economically backward community. It is playing a major role for
successful implementation of five year plan. It is also giving
emphasis for development of cottage industry & handicraft product
which is the basic structure of rural economy. It can beconcluded that DIC is a non-profitable Government
entrepreneurship project consultancy for entrepreneurs.
PRODUCT
AND ITS APPLICATIONS: -
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Thecorrosion resistance properties of alloys steel casting are excellent.
Therefore, alloys steel castings in various shapes and sizes are
extensively used in dairy, chemicals and pharmaceuticalindustries. Other special properties like non-toxicity and strength
establish its use in a large measure in the above stated industries,
were probably no other better substitute can be found. Generally
the casting conform to the austenitic/non magnetic grade in the
form of flanges, valves, bodies, propeller for agitator, pipe fitting,
machine parts etc relating to above types of industries though there
are some castings conforming to other grades also.
APPLICATIONS FIELDS ARE: -
1. STEEL INDUSTRY
2. FOOD PROCESSING INDUSTRY3. CONSTRUCTION &
STRUCTURAL WORKS 4. AGRICULTURE
5. SANITATION &
WASTE TREATMENTS 6. AUTOMOBILES
& POWER TRANSMISSION 7. HOUSE HOLD
FITTINGS 8. MARINE
APPLICATION
The entire above application field can be taken into consideration
for our project market point of view.
MARKET
POTENTIAL: -The
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units engaged in the manufacture of dairy equipments, chemicals
and pharmaceutical machinery require a nos of alloy steel casting
in different sizes and shapes. Moreover, NDDB, DDC regularly in
need of spares and few instrument like self-weighing scales, are
also regularly using alloy steel cast components. The nos of unitsengaged in manufacture of above castings are vary limited and
quality standards may not ultimately conform to the desired
specification, with lowest quality controls measures are adopted
with respected to chemical composition. In view of the above,
there is a tremendous scope for putting up of alloy steel casting in
the small scale sector with induction malting unit & quality control
facilities to cater the needs of different processing industries and
various equipments manufactures same time this unit can caterdifferent casting orders coming from the different jobs shops.
RECOMMENDED PROJECT CAPACITY: -
Installed capacity proposed
Quantity/annum : 325 MT
Annual sale turn over:
178.75 Location of the
project in between Cuttack& Bhubaneswar (according to the
availability of land suitable industrial location may be selected).
MANUFACTURING
PROCESS(foundry engineering): -
It
deals with the process of making casting in moulds prepared by
patterns. The whole process of producing casting may be classified
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in to five stages.
1. Pattern
making: - It is the
primary stages of this process in which pattern is prepared; a
pattern is a replica of the object to make by the casting process.During pattern making some consideration should be kept in the
mind a.
addition of pattern allowances
b. the provision of core prints
c elimination of fine details which cannot be obtained
by casting and hence are to be obtained by further processing.
Materials of pattern are wood, plastic andplaster of Paris; some cases metallic pattern may be used.
2. Moulding and core
making: - Mould is a
box of sand or other refractory having a hallow space which is the
required size of the component. This mould is prepared by the help
of pattern through the mould making process like ramming and themould material is silica grain & clay as binder and required
amount of water. This mould contains a well designed gating
system as well as a proper riser system.
Cores are the part of the mould which is used for making cavity
and depression on the component which can not normally be
produced by the pattern alone during mould making process.
3. Melting and casting: -
melting is the measured factor which controls thequality of the casting. There are a no of methods for melting and
casting. The choice of the furnace and casting process depends
upon the amount and the type of alloys being melted.
For alloy casting induction furnace is
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generally recommended due to following advantages: -
1. It can be used for all types
of materials because heat source is isolated from the charge and the
slag & flux would be getting necessary heat directly from thecharge instead of heat source. 2. Metal chips can be used due to
stirring effect of molten material. 3. Low cast raw material can be
used. 4. Better control of temperature &
composition can be achieved.
4. Fettling: -
The
complete process of cleaning of casting, called fettling, involves
the removal of the cores, gates, riser, cleaning of the casting
surface & chipping of any of the unnecessary projection on
surfaces.
TESTING: -
Casting component is tested in order to ensure
the quality of casting, there are two types of test is generallyconducted.
1. Destructive test: -
During this testing
component become partially or fully destroyed. So this process can
not be used always for all components.
2.Non Destructive test: -
During this
testing the component does not under go any type of destruction.So this process can be used for all component but these processes
are costly.
INSPECTION: -
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Components before delivering to the customer its dimensional
accuracy must be carefully inspected, if some modification
requires by the component this can be suitably changed orprocessed with disturbing its functional characteristics.
Though steel is an alloy but when steel contains other alloying
elements like nickel, chromium, molybdenum etc, then it is
recommended as alloy steel.
The most highly perfected steel making units
generally deals with alloy steel are using electric furnace in which
electrical energy supplied to the furnace is converted by various
methods into thermal energy for heating and malting the metal.
Induction furnaces that are found applicable in alloy steel casting
industries. Selected scrap 38%, flux 3%(lime
stone), Ferro-alloys 4%, nickel 1% and foundry return 54% is
charged in the furnace then due to induction effect material is
malted and slag is separated from its molten state. Alloys steel melt
is then transfer to the steel ladle and is poured into the mould.
Where the melt is poured that part of mould is termed as pouring
basin, in this mould a well arranged feeding system and gating
system are presented. After the cast is solidified and cooled downto ambient temperature, it is slackened from the mould. Then
mould shake out and care knock out down either by manual or by
vibrating knock outs, jolting grids and vibrators the next operation
is called fettling which involves the removal of adhering sand,
gating systems and fines from the casting.
Then cleaned casting are transferred to the heat treatment
section in order to achieve desired mechanical properties like
hardness, tensile strength, brittleness and toughness etc. thisoperation is fully depends upon the service requirement of the
esteemed customers.
Inspection and quality control test to be carried out by
using different techniques the desired quality before dispatch.
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SOME ESTEEMED CUSTOMERS(proposed)
1. ORISSA MACHINERY, BBSR (For gears & hubs)
2. LARSEN & TOUBRO LTD. ROURKELA
(For standard housing)
3. STATE WEIGHT & MEASURES, CUTTACK
(For standard weight)
4. PARADEEP PORT TRUST
MECHANICAL MAINTENNANCE
5. RUCHI SPICES LTD., CUTTACK.
6. JINDAL STEELS LTD., JAJPUR ROAD.
DETAILS SPECIFICATION OF MACHINERYS: -
Induction melting furnace Transformer 415/460v, 200kw solidinverter, and water cooled leads, hydraulic power packs, selector
switches 200kgs box etc.
Sand mixer 200kg batch capacity complete with 3hp motors and
accessories.
Vibrating sand sieving machine 3 decks with multiple sieves and
2hp motors.
Hand operated pin lift molding machine fitted with column
squeezing arm, plunger and pressure plate.Core and mould during oven Inside packing cap, 25 to 30 m*3,
oil fired, provided with necessary circulating fans blower, burner.
Foundry sand testing equipment Sand rammer, cgs permeability
meter, speedy moister, tester & weighing balance.
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LIST OF PLANTS & MACHINERY: -
Sl.no Particular Qty. Value(lakhs)
1. Induction melting furnace 1 11.7
2. Sand mixer 1 0.25
3. Vibrating sand sieving machine 1 0.20
4. Hand operated pin lift molding machine 1 0.25
5. Patterns pattern making tools - 0.17
6. Ladles (self fabricated) 10 0.04
7. Foundry tools - 0.07
8. Platform weighing machine 1 0.109. Molding boxes - 0.13
10. Core & mould drying oven 1 0.41
11. Materials handling equipment 3 0.04
12. Foundry sand testing equipment - 0.02
13. Immersion pyrometer - 0.07
14. Fettling and cutting tools - 0.08
15. Measuring tools - 0.08
16. Air compressor 1 0.2517. Flexible shaft grinder 2 0.05
18. Bench drilling machine 1 0.04
19. Bench grinder 1 0.03
20. Arc welding machine 1 0.08
21. Transformer - 0.95
22. Chemical testing lab - 0.33
23. Other equipment - 0.17
Total 15.5
Requirement of raw materials and consumable
SI. No. Particulars qty values (lakhs)
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1. Graded stainless 251T 70.28
Steel
2. Ferro alloy - 1.22
Total 71.48
Requirement of infrastructure facilities
i) Land 1000sq.mtrs.
ii) Building 420sq.mtrs.
iii) Manpower requirement
sl.no particulars number
1. Supervisors 22. Skilled workers 6
3. Semiskilled workers 10
4. Office staff 5
Total 23
COST OF PROJECT
Sl.no Particular Amount (lakhs)
1. Land 1.00
2. Factory building 5.00
3. Machinery 18.00
4. Dies, jigs& fixture -
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5. Preliminary and preoperative 1.00
Expenses
6. Contingency 2.40
7. Misc. fixed assets 0.60
8. Working capital margin 4.47
Total 32.47lakhs
Working capital margin (1st year)
Gross working capital 14.90lakhs
Working capital margin 4.47lakhs
Bank borrowing 10.43lakhs
Probability Estimates(1st year)
Sales turnover 89.37lakhs
Costs of production
a) Raw materials and consumables 71.50lakhs
b) Wages and salaries 5.00 lakhs
c) Interest 3.00lakhs
d)Depreciation 3.00lakhs
e)Other expenses 1.00lakhs
Total 83.50lakhsNet operating profit(before tax) 5.87
Net operating profit to sales(%) 6.57
Breakeven point 43%
HR POLICY(proposed)
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MANPOWER QUALIFICATION SALARY
Super visor Diploma/ITI,5yrs 7000
Skilled worker (H) ITI,3yrs experience 5000
Semi Skilled ITI,1Yr experience 4000Unskilled HSC 3000
Office Assistance GRADUATE 3500
RULES & REGULATION: -
1. According to requirement flexible duty hours can be allotted.2. All the personnel are the members of contributory P.F. scheme.
3. All the personnel will be under an insurance scheme for
accident on duty compensation.
4. Maximum 10 minutes late is allowed. If any body continues 5
late presents in a month half day leave will be cut off.
5. All the personnels are bound to perform their work at allotted
space.
6. Necessary skill development programmed may be imparted for
the need of the company.
7. There is a lunch/dinner break of 30minutes & one tea break of
15 minutes.
8. All the personnels should come with uniform supplied by the
company.
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9. No personnel can form union or accept the member ship of any
union.
BENEFITS: -1. Suitable bonus may be declared basing upon the profit of
organization.
2. An insurance premium will be paid by the company for the
accidental benefit as Rs.40000 & in case of death
Rs.100000.beyond that no other financial benefit will be
provided.
ALLOWANCES: -1. Dust allowance will be paid as Rs.41 working day.
2. TA/DA will be provided if employee goes out side for
company work.
3. Over time allowance will be provided Rs.201 (beyond his
over time salary) for more than 4hrs over time.
4. No other allowances will be provided under any conditions.
LEAVE: -
1. Leave should be taken when ever it is extremely necessary.2. 10 days casual leave & 5 days sick leave in a year.
3. Maximum 15 days accident on duty leave may be allotted
according to serious ness of injury.
4. If any employee continues 21 days leave with out notice, he
may be terminated.
TECHNICAL & FINANCIAL CONSULTANCY: -
1. SIDBI, BHUBANESWAR
2. DIRECTORATE OF SSI CUTTACK
3. SHYAM INDUSTRIES LTD., BHUBANESWAR
4. DISTRICT INDUSTRY CENTRE, KHURDA
5. STATE POLLUTION CONTROL BOARD, ORISSA
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SUPPLIERS OF MACHINARY AND RAW
MATERIALS: -
a. List of plant & machinery suppliers: -1. Inductotherm (i) ltd.
42, GIDC.Vatva, Pune
2. Simplicity engineers, Delhi
3. Pioneer equipments, Baroda
4. Kirloskar India pvt.ltd.Mysore
b. Raw materials suppliers: -
Required raw materials are freely available in the open
market. All of them are indigenous.
INDUSTRIAL POLICY: -
Introduction:1.0 Transforming Orissa into a vibrant industrial state remains
an important goal in the beginning of the new millenium.
With its abundance of mineral resources, long coastline and
inland water, the biodiversity of its forest and rich culture
heritage, Orissa ought to become a privileged destination for
industrial investment.
.1 The economic reforms and the liberalization process
initiated in 1991 provide an important opportunity tothe state to leverage the natural resources to attract
investment, both domestic and international.
.2 The super cyclone in October 1999 caused widespread
damage to all sectors of the state economy, including
industry. Reconstruction of the shattered industrial
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economy poses a major challenge to the government as
well as the civic society.
.3 The recent white paper on Orissa state finances
(Brought out by Finance department, Government of
Orissa, on the 29th March 2001) highlights the difficultsituation of the public budget and sets clear limits on
the future availability of financial incentives to spur
industrial growth.
.4 At the same time, the combined forces of economic
globalization and governance decentralization, pose
new challenges to the policy-makers and call for a
profound redefinition of the way, government can
effectively support business..5 This industrial policy resolution is a result of such an
exercise and contains the following parts:
PART A Statement of mission and objectives
PART B Definitions and interpretations
PART C - Policy instrument
PART-A
STATEMENT FOR MISSION AND OBJECTIVE
2.1. The mission of this IPR is to
*Create a business climate conductive to accelerate investment
in industry and infrastructure projects;
*Raise income, employment and economic growth in the state;
*Reduce regional disparities in economic development.
2.2. To this end, the Government will*Encourage Private Initiative and restricts its intervention to
such areas where it enjoys a distinct commutative advantage;
*Invite private investment for the development and operation of
quality infrastructure;
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* Promote the image of Orissa as an attractive destination for
investment and tourism;
*Assume a pre-active role in selected sectors, such as
*Mineral based industries
* Craft-based products;*Agro and marine based industries, industries based on
medicinal herbs and minor forest produce;
*tourism;
*Electronics, information technology & bio-technology;
* Encourage the creation of SSI cluster in similar lines of
business;
*Proceed more decisively with the restructuring and
consolidation of sick industrial units;*Leverage the potential in SL/ST build concentration of
technologically advanced manufacturing industries.
PART B
DEFINATION AND INTERPRETATION
For the purpose of this industrial policy resolution, the
various terms shall have the meanings assigned to them here
under-
3.1. BIFR- Means the board of industrial & financial
reconstruction.
3.2. Earlier IPR- Means the industry policy resolution, 1992
and/or the industrial policy, 1996, as the case may be.
3.3. Effective date- Means the date on and from which provision
of this IPR shall be operative.
3.4. Entry tax- Means the tax payable under Orissa entry tax act,
1999.
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3.5. Existing industrial unit- Means are industrial units where
fixed capital investment has commenced before the effective
date.
3.6. Fast track project- Means project having a project cost of
Rs100crore and above.3.7. Industrial units- Means any industrial undertaking located
inside the state and engaged in any manufacturing or servicing
activity as detail in the schedule appended to this policy.
3.8. Large, medium & small scale industry- Means industrial
unit defined the govt. of India from time to time.
PART C
POLICY INSTRUMENT
4. General policy
4.1. Deregulation and simplification of rules and procedure,
rationalization of Labour laws, facilitation of industrial
restructuring and accelerated development of physical & social
infrastructure through public- private partnership will enable aconductive business climate for attracting investment and
establishment of competitive industry.
Medium/Large/Mega Industrial Project
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4.2. Actively encouraged investment in large industrial units,
which the Govt. acknowledges have the potential to be the
nuclei for further industrial & economic development. For this
fast track project, clearness will be hastened eliminating the
factors causing delay and facilitating timely implementation ofsuch project.
SSI Tiny Sector
4.3 All effort will be encourage and ensure growth of small
scale industry sector, in particular through cluster development
approach.
4.4. Back-ended financial support for SSI unit in priority sector,the way of grant of interest subsidy.
4.5. Market support through preference in Govt. procurement as
detailed else where in this IPR, to the SSI or the tiny sector with
emphasis on competitiveness based on quality.
5. Clearness for fast track project
5.1. An industrial and infrastructural advisory board under the
chairemanship of the chief minister and prominent industrialist
and senior official of Govt. as membership will advise the Govt.
to ensure taking timely and effective steps for rapid and
sustainable industrialisation of state. The minister, industry
could be the vice chairman of board.
5.2. The board shall meet atleast twice a year to review and give
advice on various issues pertaining to industrialisation.
5.3. Industrial and Infrastructural Advisory Committee underthe chairmanship of the Chief secretary will process clearance to
the fast track project as well as all other industrial projects
needing interdepartmental references.
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5.4.On approval of chief minister ,the decision of IIAC will not
require further clearance from any other Department under the
state Government.
STRATEGY
6.1.The state govt. will introduce a land Bank scheme .Tracts of
Government Land will identified by IDCO in consultation
with collectors in potential locations throughout the state and
earmarked for industries. These tracts will be exclusively
reserved for location of industries. Concerned revenue
Authorities will make land from the land bank available to
IDCO and entrepreneurs to establish industrial andinfrastructure project.
6.2. The state government will encourage formulation of an
Infrastucture policy and establish a legal framework for
private participation in infrastructure projects.
6.3. Special economic zones, in accordance with new policy
initiatives of the central Govt already in place,would be
developed leveraging such location advantages of orissa having
long coast line and proximity to South-east Asia. PrivateInvestments will be encouraged for development of these zone
with world class infrastructure with full support from the Govt
in order to attract large investment particularly FDI ,in
manufacturing and service sector for export production. Special
Dispensations for easing regulatory burden will be provided
for these zones .
7.Human Resource Development
7.1. The state government would formulate policy for technical
education in the private sector to facilitate the establishment of
new technical institution of good quality and standard in the
private sector .New Engineering colleges and Medical colleges
will be permitted in the private sector in selected locations.
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7.2. A Technical University will be established in the state at the
earliest. Steps would be taken to ensure close co-operation and
coordination between industries and technical institution so that
a trainee gets education in conformity with needs of industries.
Entrepreneur training programs will be taken up .The policyalso promote training institute of international repute to be set
up by large industry houses in areas like IT, BT, etc.
Employment oriented Training scheme will introduced in it is
and engineering schools.
8. Priority Sectors
8.1. In addition to financial concessions provided in this policy,Efforts will be made to prepare competitive profiles of priority
industries in the state, so as to identify opportunities and
constraints in detail. These will be addressed in sector specific
policies, if needed.
8.2. Some sectors already have separate policies which will be
updated taking into account new information and realities.
9. Financial and other support measure
ELIGIBILITY
9.1. New and existing industrial units shall, be eligible for
incentives provided in this policy, subject to the general
conditions and specific conditions stipulated.
9.2. Industrial units, hotels, cinema halls etc. covered under
earlier industrial policy resolution shall continue to enjoy the
incentives admissible under the said policy, except to the extentabridged or modified or enlarged in this policy.
GENERAL PROVISIONS
9.3. Implementation of various provision covering the
incentives, concessions etc. will be subject to the issue of
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detailed guidelines notifications where ever necessary in respect
of each item by concerned Administrative Department.
9.4. An industrial unit which considers itself eligible for any
incentives shall apply in accordance with the operational
guidelines and instructions set out in the Manual to be broughtout and same shall be considered and disposed of on merit.
10. Sales Tax
10.1.In pursuance of the decision taken by all states and union
Territories regarding reforms in Sales tax, Govt. have decided
that no fresh Sales tax incentives will be extended to industrial
units in the state.
10.2. The state govt. is committed to reforms in the sales taxadministration with the objective over to the harmonized value
added tax system effective from 1st of february 2010.
10.3. The industrial units enjoying or eligible for the benefits
under I.P.R-09 and Pre-09, I.P.R. will not get Sales tax
incentives after 31-7-10 as per F.D.,S.R.O no.622/10,dated the
30th July 2010.
10.4. Industrial units which are in pipeline as on 1 st January
2010 shall entitle to incentives under said notification with sameterms and conditions as applicable to them if they fulfill the
following criteria as on the 1st January 2010, namely:
(i) Industrial unit which is registered under Orissa sales Tax
act,1947.
(ii) Industrial unit which has been allotted land for factory or
industrial unit which acquires land or space for its operation.
(iii) Industrial unit which has applied for finance from regular
Financial Institution.
(iii) Industrial unit which will start commercial productionbefore 1st January 2010.
11. Patent Registration.
Industrial units will be encouraged for filling patent of their
research and State will provide assistance to entrepreneurs for
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Patent and Intellectual property Right (IPR) provisions t the rate of
50 per cent of the expenditure up to maximum of Rs.5.00 lakhs.
12. Quality Certification
High priority being accorded by the State Government for
improvement of quality of the industrial units and will be providedwith assistance for obtaining quality certification from B.I.S. and
other internationally recognized Institutions at the rate of 50 per
cent of the expenditure up to maximum of Rs.2.00 lakhs.
13. Land
13.1. Government land earmarked for industry under the Land
Bank Scheme and other Government land wherever available will
be allotted for industrial projects.
13.2. IDCO will be the competent authority in the matter of
allotment of land for industrial and infrastructure projects
including those needed for creating social infrastructure in
designated Industrial Estates, Industrial Areas, Industrial Parks
and Growth Centres and also in respect of land transferred to it
under the Land Bank Scheme. For the above purpose IDCO will
fix up the premium cost of land for different locations based on
prevailing area rates and cost of acquisition including expenditure
in relief and rehabilitation requirement, if any, for private land.
Ground rent will be 1% or the premium cost of land. Development
cost will be charged by IDCO separately based on the scope and
extent of development undertaken.
Allotment of land by IDCO/State Government would be
considered after verifying the antecedents of partners/proprietors
of the new industrial units in respect of their past default,if any, in
the matter of payment of premium on the land allotted on theearlier occasion.
13.3. Rate of Government land, other than IDCO land for
industrial or infrastructure projects, will be as fixed by Revenue
Department/Collectors or the General Administration Department
as the case may be.
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ORDER:- Ordered that the Resolution be published in the Orissa
Gazettee and copies thereof be forwarded to all Departments of
Government, all Heads of Departments and Accountant General
Orissa.
By order of the Governor
D.P.BAGCHI
Chief Secretary, Orissa.
SCHEDULE UNDERTAKINGS CARRYING ON ACTIVITIES
RECOGNISED AS INDUSTRIAL UNITS, OR GIVEN THE
STATUS OF INDUSTRIAL UNITS, FOR THE PURPOSE OF
IPR,2001.
A. Units engaged in manufacturing and/or servicing activity
belonging to the following categories:
(a) Industries listed under the first schedule of the Industries
Development and Regulation Act,1951.(b) Industries falling within the purview of the following Bords
and Public Agencies:
(i) Small Scale Industries Board
(ii) Coir Board
(iii) Silk Board
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(iv) All India Handloom and Handicrafts Board
(v) Khadi and Village Industries Commission/ Board
(vi) Any other Agency constituted by Government for Industrial
development.
Infrastructure projects including projects undertaken for socialinfrastructure.
(d) Services sector projects such as Tourism, Information
Technology and IT Enabled Services, Bio-technology.
B. Industrial unit will not include non-manufacturing/servicing
industries except
(a) General workshops including repair workshops having
investment in plant & machinery of Rs.5.00 lakhs and above and
running with power.(b) Cold storage and Fish freezing units.
Electronics repair and maintenance units for professional grade
equipment and Computer Software, Data Processing and related
services.
(d) Technology Development Laboratory/Prototype Development
Centre.
C. The following units shall not be eligible for incentives as
industrial units:1. Rice hullers and rice mills excluding modern rice mill.
2. Flour mills including manufacture of basin, pulse mills and
Chuda mills excluding roller flour mill.
3. Making of spices, papad, etc. (excluding papad manufactured by
Co-operative Societies)
4. Confectionary (excluding mechanized confectionary)
5. Preparation of sweets and numkeens, etc.
6. Bred making (excluding mechanized bakery)
7. Mixture, Bhujia and Chanachur preparation units.8. Manufacture of ice candy and ice fruits.
9. Manufacture and processing of betel-nuts.
10. Hatcheries, Piggeries, Rabbit or Broiler farming
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11. Iron and Steel processors including cutting of sheets, bars,
angles, coils M.S. sheets, recoiling, straightening, corrugating,
drop hammer units, etc.
12. Cracker maing units
13.Tyrertreading units14. Stone crushing units
15. Coal/coke screening units or Briquette.
16. Production of fire-wood and charcoal.
17. Painting and spray painting units
18. Units for physical mixing of fertilizers
19. Brick making units (except units making refractory bricks and
those making bricks from flash, red mud and industrial waste).
20. Manufacturing of tarpaulin out of canvas cloth.21. Oil mills including oil processing, filtering, coloring,
discoloring, refining, hydrogenation, scenting, etc.
22. Saw mill, sawing of timber Carpentry, joinery and furniture
23. Drilling rigs ,bore wells and tube-wells
24. Units for mixing or blending of tea
25. Units for cutting raw tobacco and sprinkling jiggery for
chewing purposes and gudakhu manufacturing units.
26.Units forbottling of medicinesNote:- List of Industrial units indicated above can be modified by
the Government in Industries Department from time to time.
OCCUPATIONAL SAFETY AND HEALTH FOR THE TENTH
FIVE YEAR PLAN (2010-2015)
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GOVERNMENT OF INDIA
PLANNING COMMISSION
SEPTEMBER,2009
Factories & Ports:-
Strengthening & Restructuring of DGFASLI: Need to grantautonomy to CLI and Labour Institutes units functioning. They
should be generating their resources under the principle of User
Pays.
Coordination of Administration of Factories Act: This will include
extensive training of factory inspectors, preparation of code of
practices, standard procedures and inspection manual in the
factories and ports. Setting up of task force to review and simplifythe information to be furnished in FAS forms. Compulsory
furnishing of information in FAS form by CIFs to DGFASLI.
Enforcement of dock workers (safety, healthy and welfare) act,
1986: - This will include appointment of qualified safety officers in
all ports and docks, Notification of dock workers (safety, healthy
and welfare) rules by all state government. Alternative it will be
notified by the central government. To enlarge the scope of docksafety advisory committee to include representative from small and
intermediate ports also.
Education and training of factory and dock workers: -
Consultancy studies and service: - Strengthening of facilities at
CLI, RLIs, NIOH, and ITRC etc. to undertake major consultancy
studies on OSH.
Following amendments should be made-
A). Factories Act:
i). Factories employing 500 and above workers should appoint
safety officer.
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ii). Independent safety audit of the facilities by factories involving
hazardous processes as defined under section 2(cb) should be
conducted.
iii). To ensure compulsory healthy insurance of workers employed
in hazardous processes.
B). Dock workers (safety, healthy & welfare) Act
(i) Inland container depots should be brought under its purview.
(ii). All offices of the inspectorates of docks safety as well as state
factory inspectorates should be strengthened in terms of
infrastructure facilities such as transport, electronic networking etc.
iii). Chief inspector of factories should be selected from amongst
the cadre of inspectors of factories and be given the status of headof department directly reporting to Labour secretary. This will
increase his functional autonomy.
iv). Medical inspectors of factories and certifying surgeons should
be appointed in all inspectorates of factories in the country.
A national committee on control of occupational
diseases under the apex body on OSH may be constituted. This
committee would facilitate close coordination and exchange ofinformation amongst agencies.
A data base containing information on handling of
containers and dangerous goods, hazardous installation, inland
container depots, minor and intermediate ports, competent persons,
panel of medical doctors, etc., for various ports should be created
for the benefits of the port users.
Training of crane operators should be undertaken by
respective owners of the equipment. This will help in addressing
the problem of accident due to transport equipments in port areasstatement of status of OSH in companys annual report.
Tiny/small (UN registered units): - The small scale units
employing less than 10/20 workers and outside the purview of the
factories act, 1948 should be covered by any other legislation to
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ensure OSH of the workers in these units. Software development
units to be brought under the purview of the factories act.
Environmental protection:The following is a brief description of the laws and
regulation relating to environmental protection in India.
A. Constitutional status:
Article 48A of the directive principal of the state policy
provides for the states commitment to protecting the environment
and the article 51A(g) states that to protect and improve the natural
environment shall be the fundamental duty of the citizens of India.
B. Regulatory Environment Protection Laws:
In observation of the directive principal, the union of
India has enacted the following major legislations:
a). The Environment (protection) Act, 1986, which is the umbrella
legislation.
b). The water (prevention & control of pollution) Act, 1981, asamended in 1978 and 1988.
c). The air (prevention & control pollution) Act,1981,as amended
in 1987.the above act has been substantially amended in recent
past and some of the most significant aspect of amendment are
1). Consent order is now valid for 15 years or till such time there is
some significant change in the process, whichever is earlier,
2). A consent order cannot be provided provisionally & will be
obtainable only when all the provision, prevention requirements
are adopted in to ,action under these acts are to be taken byrespective state control Boards.
d) The Forest Conservation act, 1980.
e) The Wildlife Preservation act, 1982 extend to cover biosphere
resources and the Hazardous wastes Rules 1989.
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f) Manufacture storage and import of hazardous chemical rules
1989
i) The Motor Vehicle Act, 1939, amended in 1988 and
j) The Environment Tribunal Bill, 1992.
C. Promotional Policy Framework:
a) The National Forest Policy,1988
b) The National Conservation Strategy and Policy Statement on
Environment & Development 1992.
c) The policy statement for abatement of pollution 1922
d) The above Policy statements complement the National water
Policy and Factories Act 1948 besides other related legislationhaving a bearing on resources and economic activities
e) The national Housing policy 1988 the National water policy
1987 and the National Land use Policy 1988 recognize the
importance of maintaining ecological balance.
D. Organizational structures of the Regulating Bodies for
Environment management
The ministry of Environment and Forest created in 1986 is the
nodal regulating agency .The Ministry has four division:
a) Environment: The central Pollution control Board function
under it and this Ministry is responsible for exercise of promotion
and regulatory functions under the water air and Environment
acts.
b) Forests and wildlife: Wildlife preservation offices responsible
for implementing the wildlife protection act,1972 and the Regionaloffices of the MOEF for implementing the provisions of Forest
conservation Act,1980.
c) Ganga project Directorate
d) National A forestation and Eco-Development Board.
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All the state governments looking after environment and forest
collectively.
Most of the states have states pollution control Boardswhich have a significant role to play in enforcing environmental
management and pollution control as required under different
laws.
Environmental Impacts Assessment as per a notification issued
on 27 January 1994. The EIA is a statutory for 29 different
activities in industry ,mining ,irrigation, power plant ,atomic
power plants, railway and roads highways, bridges, airport andcommunications. The central government apprises the following
types of projects:
a) Projects which requires the approval of the public Investment
Board commission Electricity Authority etc.
b) Projects referred to the MOEF by other ministries
c) Projects which are sensitive and fall in environmentally fragile
areas
d) projects under dispute.
The process to be followed is:
Project authorities are required to provide relevant information
as indicated in the guideline along with a EIA
statement/environmental management plan. After the preliminary
scrutiny by the ministry, the appraisal committee evaluates the
impact and makes commendations for approval, rejection or
modification in the project. The above recommendations from thebasis of the ministrys decision regarding approval/rejection.
ENVIRONMENTAL CLEARANCE PROCEDURES
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Under the environment (protection) Act, 1986, 24
categories of projects and industries will require environmental
clearance from the central government.
In addition, any project proposed to be located within 10km of
the boundary of a reserved forest or a designated ecologicallysensitive area or within 25kms of the boundary of a national park
or sanctuary will require environmental clearance from the central
government.
For all other projects, environmental clearance needs to be
obtained only at the level of the state government. Clearance is
required from the environmental (for site clearance) and pollution
control angle, which has to be obtained by all units other than
certain, specified non-polluting units in the small scale sector.No objection certificate (NOC) for the site clearance usually
involves clearance from the concerned state pollution control board
NOC is also required for adequacy of pollution control measures.
In general, the state pollution control board is the concerned
authorities which will the state pollution control board is the
concerned authority which will usually specific certain pollution
control measures to be taken by the unit.
AUTHORITY OF STATE FOR ENVIRONMENTAL
CLEARANCE (ORISSA)Orissa state pollution control board
Gautam Nagar
Bhubaneswar 751014
Efforts have been made to ensure that data is accurate. However
the source of data may be referred to for further clarification.
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GOVERNMENT OF ORISSA
INDUSTRIES DEPARTMENT
No.XIV-HI-12/2005-7569 /I., Bhubaneswar, 13.04.2010From:
Shri Subas Pani
Chief Secretary, Orissa.
To
The All Collectors,
Sub: Role of Collectors in Promotion of Industries
Sir/madam,
The state government is committed to facilitate the
process of industrialization to achieve sustainable development and
generation of employment. Orissa offers tremendous investment
opportunities in the areas of mineral based industries agro
processing, value addition of forest products, tourism, fisheries,
I.T. and I.T.E.S. and power generation etc. Government have
enacted the Orissa Industries (Facilitating)act, 2004 to provide forthe constitution of clearance Authorities at the district and state
levels for speedy clearance of the investment proposals of the
entrepreneurs proposing to establish industries in the state. A copy
of the said act has been sent to you by the director of industries
vide his letter No.3506 dated 04.03.2010. The Act provides for
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issue of all clearances under various state laws for establishment of
industries through single window mechanism at district and state
levels. It also provides for self certification by industries as far as
compliance to various state laws are concerned and rationalization
of inspection with a view to reducing the transaction cost forestablishment and post entry operation of the industries. Recently
govt. has notified the district single window clearance authority
(DSWCA) under the chairmanship of collector for the purpose of
speedy issue of license/clearance/ certification required under
various enactments for setting up project where the amount of
investment is less than Rs.50 crore. The govt. has also notified the
Orissa industry rules to implement various provision of Act.
Copies of the act and rules are enclosed herewith for yourreference. District Industries centre shall be nodal Agencies to
undertake industrial promotion activities and to facilitate investor
at district level. The DIC have been entrusted with following
function.
i) Investment Promotional activities at district level.
ii)District image building to attract investment;
iii)Investment climate improvement exercise;
iv)Provide secretarial and other support services to district levelsingle window clearance authority.
v) Issue and receive combined application from entrepreneur and
arrange required clearance from department concerned within the
specified time limit.
Yours faithfully
Sd /-
Chief Secretary ,Orissa
CONCLUSION
This project will be successfully implemented within the
three month after approval of concerned authorities. The
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commercial production from unit may be started from the
unit may be started within the six month of approval if
everything goes right. This project is prepared through the
collection of different departmental policies of governmentas well as technical consultancy from various organization
and during these project financial policies of different
financial institutes and banks.
During real time implementation of project the
different management technique may be implemented to
reduce the set up cost and different overhead expenses maybe avoided by suitable industrial engineering methods. This
project is a analytical representation of data collected from
various sources. So during real time implementation further
clarification must be done to make success the project.
LIST OF ABBREVIATIONS
AMP Abandonment Mine Plan
BCCL Bharat Cooking Ltd.
BIS Bureau of Indian Standard
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CBWE Central Board of Workers Education
CFS Container Freight Station
CLC - Chief Labour Commissioner (Central)
CIF CHIEF inspector factory
CLI - Central Labour instituteCMAL- Coal Mines Authority Ltd
CONCOR-Container Corporation of India
CPWD Central Public Work Department
DDG Deputy Director General
DGFASLI-Directorate General Factory Advice Service & Labour
Institute
DGMS-Directorate General Mines Safety
DME-Department of Mines And EnergyDMRS-Development of mines rescue and service
DMSIS-Development of Mines Safety Information system
DOPT-Department of Personal & Training
ESIC-Employee State Insurance Corporation
FAS-Factory Advice Service
HAZOP-Hazard Operability
ICD-Inland Container Depots
ILO-International Labour OrganizationISO-Information system planning
ISP-Information System planning
ITRC-Indian Toxicology Research Centre
JNPT-Jawaharlal Nehru Port Trust
LPA-Loss Prevention Association
MAH-Major Accident Hazard
MOL-Ministry of Labour
MSHA-Mines safety and Health Administration
NB-OSH-National Board on occupation safety and healthyNGO-N0n-Governmental organization
NICMAR-National institute for construction Management and
research
NIOH-National Institute of Occupational Health
NSC-National Safety Council
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OISD-oil industry safety directorate
PIACT-an ILO training project
PIF-Providing infrastructure facility
POL-Petroleum oil liquid
PSCT-Port side Container TerminalR&D-Research and development
RCD-Rail container deports
SEWA-An NGO
SSI-Small Scale Industry
SWP-safe work procedure
TISS- Tata Institute of social science
UNDP-United nations Development Program
UT-Union TerritoryWHO-World Health Organization