e-Book of the

Department of Industrial Policy and Promotion

On

Good Governance

2014-15

Table of Contents

1. Performance of Industrial Sector .......................................................................................................... 1

1.1 Introduction ................................................................................................................................... 1

1.2 Review of 2014-15 .......................................................................................................................... 1

1.2.1 GDP Growth .......................................................................................................................... 1

1.2.2 Industry Growth .................................................................................................................... 2

1.2.3 Use based classification of Index of Industrial Production (IIP) ............................................ 2

1.2.4 Foreign Direct Investment .................................................................................................... 3

1.2.5 Inflation ................................................................................................................................. 3

2. Good Governance Measures Taken ...................................................................................................... 4

2.1 Ease of Doing Business ................................................................................................................... 4

2.2 Make in India .................................................................................................................................. 8

2.3 Liberalisation in Foreign Direct Investment (FDI)......................................................................... 11

2.4 Facilitation of Intellectual Property Rights (IPR) including Design ............................................... 12

2.5 Japan Plus .................................................................................................................................... 13

2.6 Industrial Corridors ...................................................................................................................... 13

2.6.1 Delhi Mumbai Industrial Corridor (DMIC) ........................................................................... 13

2.6.2 Chennai Bangalore Industrial Corridor (CBIC) ..................................................................... 14

2.6.3 Vizag Chennai Industrial Corridor (VCIC) ............................................................................ 14

2.6.4 Bengaluru Mumbai Economic Corridor (BMEC) ................................................................. 14

2.6.5 Amritsar Kolkata Industrial Corridor (AKIC) ........................................................................ 14

2.6.6 National Industrial Corridor Development Authority (NICDA) ........................................... 14

2.7 Modified Industrial Infrastructure Upgradation Scheme (MIIUS) ............................................... 15

3. Important Developments for Good Governance in Industries Administered By DIPP ....................... 15

3.1 Leather Sector .............................................................................................................................. 15

3.2 Boiler ............................................................................................................................................ 16

3.3 Salt ................................................................................................................................................ 17

3.4 Explosives ..................................................................................................................................... 18

4. Development Councils and Measures for Standardisation ................................................................ 18

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1. Performance of Industrial Sector

1.1 Introduction

The Government took office at a time when India’s Gross Domestic Products (GDP) at factor

cost with base 2004-05 was estimated to have grown at just 4.7%, in which contribution of

industrial growth was negligible, and in particular manufacturing sector grew at very low rate.

Seen in the backdrop of the National Manufacturing Policy 2011 objective of increasing the

share of manufacturing in GDP to 25% by 2022, the emergent situation called for a paradigm

shift in the way the Government needed to strategize for growth, particularly for inviting

investment and fostering indigenous manufacturing. There was a need to give a significant

impetus to manufacturing activities through taking immediate measures for boosting

sentiments and creation of conducive environment to promote entrepreneurship.

1.2 Review of 2014-15

1.2.1 GDP Growth

During the year, the Central Statistics Office revised the base year and the methodology of

calculating GDP. GDP at market prices was calculated with the year 2011-12 as base. With this

new base, the Provisional Estimate of growth of GDP in 2014-15 was 7.3% and that of

manufacturing 7.1%, as against estimated growth of 6.9% and 5.3% respectively in 2013-14. In

fact, the International Monetary Fund (IMF) in the World Economic Outlook has recently

estimated that India’s GDP growth will be about 7.5% in both 2014-15 and 2015-16.

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1.2.2 Industry Growth

The Index of Industrial Production (IIP) grew by 2.8% during 2014-15 as compared to -0.1%

growth in 2013-14. In this, manufacturing grew by 2.3%, mining by 1.4% and electricity by 8.4%.

The Graph below shows the growth of these three sectoral components in 2014-15 as

compared to growth in 2013-14.

1.2.3 Use based classification of Index of Industrial Production (IIP)

As per use based classification of IIP, the growth of Basic Goods, Capital Goods and

Intermediate goods has increased to 6.9%, 6.2% and 1.6% respectively during 2014-2015 as

compared to last year. However, the growth of consumer goods is negative at 3.5% (Graph 3).

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1.2.4 Foreign Direct Investment

The Foreign Direct Investment (FDI) (equity) inflow into the economy was USD 30.93 in 2014-15

Billion as against USD 24.30 Billion in 2013-14, recording a growth of 27% (Graph 4).

1.2.5 Inflation

The monthly rate of inflation for All Commodities (Graph 5) based on WPI (Base 2004-05)

plunged from a high of 6.18% in May 2014 to -2.65% in April 2015 (provisional). The decline is

attributed to moderation in Primary Articles including Food Articles, Fuel and Power group and

Manufactured Product’ group.

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2. Good Governance Measures Taken

During 2014-15, several initiatives have been taken to give the necessary thrust to

manufacturing, whose share in the GDP was hovering just around 15% for many years and

whose growth was also not picking up. Major Initiatives have been taken in the last one year for

improving ‘Ease of Doing Business’ in India through simplification and rationalization of the

existing rules and introduction of information technology to make governance more efficient

and effective.

2.1 Ease of Doing Business

2.1.1 A comparative study of practices followed by the States for grant of clearance and

ensuring compliances was conducted through M/s Accenture Services (P) Ltd. As a result of this

study, six best practices were identified. These best practices were circulated among all the

States for peer evaluation.

2.1.2 An Advisory has been sent to all Secretaries of Government of India and Chief Secretaries

of the States/UT to simplify and rationalize the regulatory environment. In order to improve the

regulatory business environment all departments/State Governments have been requested to

take the following measures on priority:

a. All returns should be filed on-line through a unified form;

b. A check-list of required compliances should be placed on Ministry’s/Department’s web

portal;

c. All registers required to be maintained by the business should be replaced with a single

electronic register;

d. No inspection should be undertaken without the approval of the Head of the

Department; and

e. For all non-risk, non-hazardous businesses a system of self-certification should be

introduced.

2.1.3 eBiz Portal

eBiz project is one of the 31 Mission Mode Projects (MMPs) under the Digital India

programme of Government of India. The project envisages setting up a G2B portal to serve

as a one-stop shop for delivery of services to the investors and addresses the needs of

business and industry from inception through the entire life- cycle.

For the pilot phase, 50 (26 Central and 24 state) services have been identified for

implementation through eBiz. The project has selected ten pilot states - namely Delhi,

Andhra Pradesh, Haryana, Maharashtra, Tamil Nadu, Punjab, Rajasthan, West Bengal,

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Odisha and Uttar Pradesh. During the Expansion Phase, the project will offer all the G2B

services throughout the business life cycle, which potentially runs into over two hundred.

The following milestones have been achieved so far for the eBiz project:

a. The process of applying for Industrial License (IL) and Industrial Entrepreneur

Memorandum (IEL) and the process of Registration with Employees State Insurance

Corporation (ESIC) were integrated with e-Biz in 2014.

b. Now, eleven more Central Services have been integrated with e-Biz on 19.02.2015,

eBiz portal is now offering a bouquet of 14 Central Government services. These are:

Department of Industrial Policy

and Promotion

Industrial License

Industrial Entrepreneur Memorandum

Employee's State Insurance

Corporation

Employer Registration

Employees Provident Fund

Organization

Employer Registration

Ministry of Corporate Affairs Allotment of Director Identification Number(DIN)

Company Name Availability

Certificate of Company’s Incorporation

Declaration for Commencement of Business

Reserve Bank of India

Advance Foreign Remittance (ARF)

Foreign collaboration - General Permission Route

(FC-GPR)

Central Board of Direct Taxes Tax Collection and Deduction Account Number

(TAN)

Permanent Account Number (PAN)

[NSDL/UTIITSL]

Petroleum and Explosives Safety

Organisation

License for Possession and Sale/ Possession and

Use of Explosives

Directorate General of Foreign

Trade

Importer Exporter Code

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The Hon’ble Union Minister for Finance, Corporate Affairs and Information & Broadcasting, Shri

Arun Jaitley addressing at the launch of the Central Services on eBiz Portal, in New Delhi on

February 19, 2015.

c. One more service of Reserve Bank of India viz., `Foreign Collaboration- Transfer of

shares (FC-TRS)’ is ready for public launch.

Further, next set of 12 Central Government services have been identified to integrate with

eBiz portal. The integration of five Services has commenced for which a workshop was held

on 20.01.2015 & 21.01.2015 to finalize the process documents.

eBiz Workshops were organized on 17.03.2015, 23.03.2015, 30.03.2015and 07.04.2015 for

the States of Odisha, Maharashtra, West Bengal and Rajasthan respectively, to initiate the

roll-out of eBiz project in these states.

2.1.4 Reforms in Policy and Procedures for Industrial License (IL) and Industrial Entrepreneur

Memorandum (IEM)

Application forms for Industrial License (IL) and Industrial Entrepreneur Memorandum (IEL)

have been simplified.

Initial validity period of Industrial License has been increased to three years from two

years, with extension it has been increased to seven years.

Guidelines have been issued to streamline the processing of applications for grant of

extension of validity of Industrial License.

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Partial commencement of production is now being treated as commencement of

production of all the items included in the license.

The requirement of obtaining a certificate of commencement of business has been done

away with. Now companies are required to file a declaration.

Ministry of Home Affairs has stipulated that it will grant security clearance on Industrial

License Applications within 12 weeks. In matters other than Explosives and FIPB cases,

security clearances are valid for three years unless there is a change in composition of

management or shareholding.

2.1.5 Liberalization of Licensing and Deregulation of Defence Products

Defence products list for industrial licensing, has been issued wherein large numbers of

parts/components, casting, forgings etc. have been excluded from the purview of industrial

licensing. Similarly, dual use items, having military as well as civilian applications (unless

classified as defence items) will also not require Industrial License from Defence angle.

In view of the long gestation period of Defence contracts, the initial validity of Industrial

License for Defence Sector has been increased to seven years, further extendable upto

three years for existing as well as future Licenses.

‘Security Manual for Licensed Defence Industry’ has been issued. This has obviated the

requirement of affidavit from applicants.

Process cleared for issue of Industrial License for manufacture of Unmanned Arial Vehicle

(UAV) for defence use.

Restriction of annual capacity in the Industrial License for Defence Sector has been

removed.

Licensee has been allowed to sell the Defence items to the Government entities under the

control of MHA, PSUs, State Governments and Other Defence Licensee companies without

approval of Department of Defence production.

In September 2014, Dynamatic Technologies and its collaborator Boeing inaugurated a

plant in India to manufacture critical parts for a Boeing helicopter that is sold globally.

Dynamatics is Tier-I supplier to Airbus, Boeing and Bell Helicopters.

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2.1.6 The National Industrial Classification (NIC) 2008 has been adopted, which is the

advanced version of industrial classification. This code will allow Indian businesses to be part of

globally recognized and accepted classification that facilitate smooth approvals/registration.

2.1.7 Mapping of Sector Specific FDI Policy with NIC 2008 code has been completed and

released.

2.1.8 A checklist with specific time-lines has been developed for processing all applications

filed by foreign investors in cases relating to Retail/NRI/EoU foreign investments. This has been

placed on the DIPP website.

2.1.9 De-reservation of Items Reserved for Medium and Small Scale Sector

With the import liberalization, it has been felt that there is no prima facie justification for

continuation of reservation of manufacturing in the medium and Small Scale Sector since such

reservation may inhibit the possibilities of domestic manufacture based on technologies,

economy of scale, etc. vis-à-vis the imported items. Accordingly the Government of India, vide

Notification S.O. 998 (E) dated 10.04.2015 have decided to de-reserve the remaining 20

(Twenty) items reserved for exclusive manufacture of the Medium and Small Scale Sector. With

this, access to and growth of all industries to their potential will be facilitated.

2.1.10 Expert Committee

An Expert Committee has been constituted to examine the possibility of replacing multiple prior

permissions with pre-existing regulatory mechanism.

2.2 Make in India

The ‘Make in India’ programme has been launched globally on 25th September 2014 with

25 thrust sectors and a dedicated portal with back end support up to Sectoral and State

levels for facilitation. The initiative was simultaneously launched in the Capital of all States

and in several Indian Embassies/High Commissions. Few other Indian Embassies have also

organized “Make in India” interactions after the launch.

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According to felt need and assessment of competitiveness of sectors concerned, 25 thrust

sectors including manufacturing as well as relevant infrastructure and service sectors have

been identified, spanning a number of Administrative Ministries and Departments. A list of

thrust sectors is given in the box below:

List of Make in India Thrust Sectors

(i) Auto Components

(ii) Automobiles

(iii) Aviation

(iv) Biotechnology

(v) Chemicals

(vi) Construction

(vii) Defence Manufacturing

(viii) Electrical Machinery

(ix) Electronic System Design and

Manufacturing

(x) Food Processing

(xi) IT and BPM

(xii) Leather

(xiii) Media and Entertainment

(xiv) Mining

(xv) Oil and Gas

(xvi) Pharmaceuticals

(xvii) Ports

(xviii) Railways

(xix) Roads and Highways

(xx) Renewable Energy

(xxi) Space

(xxii) Textiles

(xxiii) Thermal Power

(xxiv) Tourism and Hospitality

(xxv) Wellness

The ‘Make in India” initiative is based on four pillars, which have been identified to give

boost to entrepreneurship in India, not only in manufacturing but also other sectors. The

four pillars are:

(i) New Processes: ‘Make in India’ recognizes ‘ease of doing business’ as the single most

important factor to promote entrepreneurship. A number of initiatives have already been

undertaken to ease business environment. The aim is to de-license and de-regulate the

industry during the entire life cycle of a business.

(ii) New Infrastructure: Availability of modern and facilitating infrastructure is a very

important requirement for the growth of industry. Government intends to develop

industrial corridors and smart cities to provide infrastructure based on state-of-the-art

technology with modern high-speed communication and integrated logistic

arrangements. Existing infrastructure to be strengthened through upgradation of

infrastructure in industrial clusters. Innovation and research activities are supported

through fast paced registration system and accordingly infrastructure of Intellectual

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Property Rights registration set-up has been upgraded. The requirement of skills for

industry are to be identified and accordingly development of workforce to be taken up.

(iii) New Sectors: ‘Make in India’ has identified 25 sectors in manufacturing, infrastructure

and service activities and detailed information is being shared through interactive web-

portal and professionally developed brochures. FDI has been opened up in Defence

Production, Construction and Railway infrastructure in a big way.

(iv) New Mindset: Industry is accustomed to see Government as a regulator. ‘Make in India’

intends to change this by bringing a paradigm shift in how Government interacts with

industry. The Government will partner industry in economic development of the country.

The approach will be that of a facilitator and not regulator.

An Investor Facilitation Cell has been created in ‘Invest India’ to guide, assist and handhold

investors during the entire life-cycle of the business. This Cell will provide necessary

information on vast range of subjects; such as, policies of the Ministries and State

Governments, various incentive schemes and opportunities available, to make it easy for

the investors to make necessary investment decision. Information on 25 sectors has been

put up on ‘Make in India’s web portal (www.makeinindia.com) along with details of FDI

Policy, National Manufacturing Policy, Intellectual Property Rights and Delhi Mumbai

Industrial Corridor and other National Industrial Corridors.

A National Workshop was held on 29th December 2014 with the Sectoral Ministries and

State Governments and Central Ministries to draw up a Plan of Action in the short and

medium term for creating an enabling framework for stimulating investments in

manufacturing.

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The industries that were covered in the Workshop are Chemicals, Oil and Gas, Capital

Goods, Basic Metals comprising steel and aluminum, Cement, Pharmaceuticals,

Biotechnology, Food Processing, Railways, Tourism, Media and Entertainment,

Automobiles and Auto Components, ICTE Manufacturing including electronics and

telecommunication, Aerospace and Defence, Textiles and Apparels, Leather and Leather

Products, Gems and Jewellery, Energy comprising power, coal and new and renewable

energy , Aviation and Shipping , and Micro Small and Medium Enterprises.

India participated as partner country in Hannover Messe Fair, 2015 organized in Germany

during 12-17 April, 2015. During India’s participation the Core theme of ‘Make in India’ was

showcased and German as well as Companies from other countries were invited to make

India their manufacturing base. Over 350 Indian Companies, 120 Indian CEO’s, 14 States of

India participated this year at Hannover Messe. The fair was inaugurated jointly by the

Prime Minister of India and Chancellor of Germany.

Hon’ble Prime Minister, Shri Narendra Modi, the German Chancellor, Ms. Angela Merkel and other dignitaries at the Opening Ceremony of the Hannover Messe, in Hannover, Germany on April 12, 2015.

Hon’ble Minister of State for Commerce and Industry, Smt Nirmala Sitharaman at CII Pavilion at Hannover Messe

2.3 Liberalisation in Foreign Direct Investment (FDI)

During 2014-15, FDI in Defence Industry has been permitted through the Government

route up to 49%. Also, higher FDI can be allowed on case to case basis. Further, portfolio

investment which was not permitted earlier has now been allowed up to 24% under

automatic route. Other important changes in the revised policy include doing away of the

lock-in period of three years, mandating that Investee Company should be structured to be

self-sufficient in areas of product design and development, with full Indian management

and control along with Chief Security Officer being resident Indian citizen.

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Further, FDI in construction, operation and maintenance of identified railway transport

infrastructure up to 100% has been permitted through the automatic route. In sensitive

areas, from security point of view, FDI beyond 49% would be allowed on a case to case

basis.

The permissible FDI in insurance sector and pension sector has been raised from 26% to

49%, effective from 02.03.2015 and 24.04.2015 respectively, in which 26% FDI will be

through automatic route and higher equity up to 49% would be permitted through the

Government route.

The norms for FDI in Construction Development Projects (which already permitted 100%

FDI through automatic route) have been further liberalised. The minimum land area

restriction has been removed for serviced plots. In case of construction-development

projects, minimum built up area of 50,000 sq. meter has now been reduced to floor area of

20,000 sq. meter. Minimum capitalization has been reduced from USD 10 million to USD 5

million. Norms relating to repatriation of funds or exit from the project have also been

liberalized. Investor can exit after the completion of the project or after development of

trunk infrastructure. Earlier provision to bring in entire FDI within six months of the

commencement of the project has been amended to provide that FDI can be brought in till

the period of 10 years from the commencement of the project or its completion, whichever

is earlier. To encourage investment in affordable housing, it has been provided that

minimum area and capitalization norms will not apply to the projects committing 30% of

the total project cost for low cost affordable housing.

The Government has also decided to permit FDI up to 100% under the automatic route

both for green field and brown field projects for manufacturing of defined medical

devices, which would not attract conditions specific for pharmaceutical industry. The

definition of medical device for the purpose would be subject to the amendment in Drugs

and Cosmetics Act.

2.4 Facilitation of Intellectual Property Rights (IPR) including Design

During 2014-15, approval has been given to the plan scheme for Modernization &

Strengthening of Intellectual Property Offices. The scheme aims at reducing transaction

costs, in improving transparency in the functioning of the IP Offices and in augmenting

human resources with a view to enable examination of applications in a timely manner.

Further during 2014-15, the National Institute of Design (NID) has been declared as the

Institute of National Importance. Four more NID are being set up in Assam, Andhra

Pradesh, Madhya Pradesh and Haryana.

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With a view to design an IPR Policy which would stimulate innovation across the sectors in

the country, an IPR Think Tank has been set up on 28.10.2014 with the mandate to prepare

a draft National IPR Policy and to advice on other IPR issues. After incorporating comments

received from all Ministries/Departments concerned and other stakeholders on the draft

IPR Policy, the Think Tank has submitted a Final Report to DIPP on 18.04.2015.

2.5 Japan Plus

DIPP has set up a special management team to facilitate and fast track investment proposals

from Japan. The team known as “Japan Plus” has been operationalized w.e.f October 8, 2014.

2.6 Industrial Corridors

Government of India is building a pentagon of corridors across the country to boost

manufacturing and to project India as a Global Manufacturing destination of the world. The

progress so far has been as follows:

2.6.1 Delhi Mumbai Industrial Corridor (DMIC)

The first node/city level Special Purpose Vehicle (SPV) under DMIC Project with the name and

title of “Aurangabad Industrial Township Ltd.” has been incorporated.

Work on 5 smart cities in Delhi-Mumbai Industrial Corridor has been taken up. These are

Ahmedabad-Dholera (Gujarat), Shendra-Bidkin(Maharashtra), Integrated Industrial Township

in Greater Noida (UP) Integrated Industrial Township in Vikram-Udyogpuri near Ujjain (MP),

and global City in Gurgaon (Haryana).

Request for Qualification proposal for the empanelment of the EPC Contractors for roads and

services for Activation Area of Ahmedabad Dholera Special Investment Region in Gujarat has

been floated.

Final environmental clearance has already been obtained from the Ministry of Environment,

Forest and Climate Change for three DMIC Nodes viz Manesar-Bawal Investment Region in

Haryana, Khushkhera-Bhiwadi-Neemrana Investment Region in Rajasthan and Ahmedabad

Dholera Investment Region in Gujarat.

Detailed Project Report for Mass Rapid Transit System between Ahmedabad Dholera has

been finalized. The preparation of Detailed Project Report for the Mass Rapid Transit project

between Gurgaon and Bawal is at an advanced stage of finalisation.

Significant progress has been made in the Model Solar Power Project at Neemrana, Rajasthan

which is being implemented as an Indo Japan Partnership Project. The first batch of Solar

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panels has arrived at the site, EPC contractor has been appointed and the actual

commissioning of the project has been initiated.

Considerable progress has also been made in the Logistic Data Bank Project, which is one of

the Smart Community Projects being implemented in partnership with the Government of

Japan. Tariff Authority for Major Ports (TAMP) has notified the levy of Mandatory User

Charges (MUC) as part of their scale of rates. The project is being taken forward for the

implementation in partnership with NEC Corporation of Japan.

2.6.2 Chennai Bangalore Industrial Corridor (CBIC)

Perspective plan has been finalized. Phase II Study for the CBIC is in progress and draft final

report of master planning in respect of industrial nodes namely Ponneri (Tamil Nadu),

Tumkur (Karnataka) and Krishnapatnam (Andhra Pradesh) is under consideration in

consultation with the stakeholders.

2.6.3 Vizag Chennai Industrial Corridor (VCIC)

The Conceptual Development Plan has been finalized.

Four nodes have been finalized and Asian Development Bank has agreed to prepare Master

Plans for the two identified nodes viz. Vizag and Yerpedu-Srikalahasti-Yerpedu, for which

parcels of land have been identified and for which master planning would also be shortly

initiated. The Regional perspective planning of complete VCIC area is in progress.

2.6.4 Bengaluru Mumbai Economic Corridor (BMEC)

Draft perspective plan has been already prepared. It has been decided to simultaneously

carry out the identification of nodes and master planning along with finalizing the

perspective plan.

2.6.5 Amritsar Kolkata Industrial Corridor (AKIC)

DMICDC has been entrusted with the responsibility of preparing feasibility report and

consultants have been appointed.

2.6.6 National Industrial Corridor Development Authority (NICDA)

National Industrial Corridor Development Authority (NICDA) is being created.

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2.7 Modified Industrial Infrastructure Upgradation Scheme (MIIUS)

‘In principle’ approval has been accorded for 24 projects involving central grant of

`623.87.00 crore under MIIUS. Out of these, final approval involving central grant of `283.15

crore have been accorded to 11 projects on 24.02.2014. Further, `17.09 crore of central

assistance has been released to five projects under MIIUS.

Five projects have reported completion in the year 2014-15 as against two in 2013-14. They

are: i) Gems and Jewellery Cluster, Surat, Gujarat, ii) Chhattisgarh Ispat Bhumi, Raipur,

Chhattisgarh, iii) Auto Cluster Vijayawada, Andhra Pradesh, iv) Coir Cluster, Alappuzha,

Kerala, v) Baddi Infrastructure, Himachal Pradesh.

3. Important Developments for Good Governance in Industries

Administered By DIPP

3.1 Leather Sector

One of the major activities under Indian Leather Development Programme is to provide

placement linked skill development training to unemployed youth.

For giving thrust to labour intensive leather industry, the training target under Integrated

Leather Development Programme (ILDP) in skill development was revised from 54,000

persons to 1.38 lakh persons for 2014-15. 138,608 unemployed persons have been provided

placement linked skill development training and of these 113,244 trainees (80%) have been

provided employment in the leather sector.

Further, 167 new cases have been approved during 2014-15 for modernization and

technology upgradation.

The Department has also approved establishment of two new branches of Footwear Design

and Development Institute (FDDI) in Banur (Punjab) and Ankleshwar (Gujarat) with

Government of India assistance of `100 crore for each branch. Construction works have

been started.

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The Hon’ble Minister of State for Commerce & Industry (Independent Charge), Smt. Nirmala Sitharaman addressing at the Footwear Design & Development Institute (FDDI) Convocation, in Noida, Uttar Pradesh on December 17, 2014.

Approval has been given to a project on Solid Waste Management in Calcutta Leather

Complex (CLC) by Central Leather Research Institute (CLRI), Chennai under component of the

Leather Technology, Innovation & Environmental Issues sub-scheme of ILDP.

3.2 Boiler

Modified regulations and several forms to simplify registration of boilers and to reduce

paperwork for boiler manufacturers & users have been undertaken.

State Governments have been advised to introduce self-certification and third party

inspection in Boilers.

Qualification and experience for Competent Persons have been rationalized to facilitate

increase in availability of Competent Persons for third party inspection. This will facilitate

both, boiler manufactures as well as boiler users.

Regulations have been amended to increase time period between inspections requiring

mandatory shut down of the boilers in power plants and continuous process plants which

will result in increase in production from these plants.

Regulations have been framed for prescribing procedure/criteria for approval of boiler/boiler

component manufacturers in the country. It will result in increase in transparency and

setting of minimum quality standards for boilers manufacturers.

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Provisions have been made in boiler regulations for on-line submission of applications for

registration of boilers and for recognition of Well Known firms to do self-certification of their

activities without approaching Inspecting Authorities.

Time period for evaluation of firms by Evaluation Committee of the Central Boilers Board for

recognition of Well Known firms reduced from 120 days to 90 days for manufacturing works

in foreign countries and to 60 days for manufacturing works in the country.

Provision made in boiler regulations for recognition of welders by the third party inspecting

authorities which will facilitate boiler and boiler component manufacturers.

Time period have been prescribed for recognition of qualification of welders by the

Competent Authorities.

3.3 Salt

Identification of surplus salt land for development of infrastructure facilities for

manufacturing sector is being carried out. Around 1500 acres of Central Government salt pan

land surplus to the requirement of the Salt Commissioner’s Organization (SCO), have so far

being identified which are free from encumbrances. This land could be used for development

of infrastructure facility for manufacturing sector and use for public purposes.

Surplus salt land transferred in (a) Tamil Nadu : EPL (764.64 acres), BPCL (100 acres), NTECL

(75.19 acres) and ETPS (24.81 acres) for developmental activities on payment of market

value of the land, IPAB in Tondiarpet (1.2 acre), (b) Andhra Pradesh: Customs and Central

Excise (0.5 acre), (c) Maharashtra: National Highway Authority of India (23.07 acre).

The policy for transport of salt by rail was reframed and allocation of wagons to salt

manufacturers was streamlined.

The component of “Training for technology upgradation” under the Scheme for Salt Workers

has been revised by increasing the cost of each training from `1.50 lakh to `3.00 lakh,

number of salt workers/artisans in each training has been increased from 15 to 30, the

training period has been reduced from two weeks to six days. It is also provided for

preparing 40 master trainers, selected from the officials of SCO/salt cluster leaders by the

Central Salt and Marine Chemicals Research Institute (CSMCRI), Bhavnagar who will

subsequently provide training to salt workers/artisans in their respective States in Local

language. This will help educating salt workers and artisans for improving the quality of salt

to meet the stringent standards of industrial and edible salt to compete in the domestic and

international markets.

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3.4 Explosives

It has been decided that no licence under the Industries (Development and Regulation)

Act, 1951 will be necessary by mine owners to manufacture Ammonium Nitrate Fuel Oil

(ANFO) explosives. This will help mine owners using ANFO to continue mining operations

and will help the development of cement industry as well as the construction sector.

Tapering of user fee to Licensing Authority (PESO) has been introduced to ensure that

explosives manufacturers are required to pay less for production/ storage for increased

slabs beyond a ceiling. Licence fees for magazines used for fireworks has been kept lower

compared to other explosives. Fees for export of explosives and fireworks have been

abolished.

Keeping in view technological developments, the security scenario and demands of the

stakeholders, an extensive exercise to review the Rules administered by PESO has been

undertaken.

4. Development Councils and Measures for Standardisation

Development council been constituted for Foundry Industry and Paper Industry.

The DIPP has taken up the issue of preparation of standards for lead free paints with BIS. In

the first phase 9 items relating to different types of paints have been identified in

consultation with the Indian Paint Association (IPA). BIS has finalized the standards for these

9 items.

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