the time has come for us to stand-up for our rights again

Government of IndiaMinistry of Consumer Affairs, Food and Public Distribution

Department of Consumer AffairsKrishi Bhawan, New Delhi - 110001

Websites : www.fcamin.nic.in, www.core.nic.inNational Consumer Helpline Number : 1800-11-4000



Websites : www.fcamin.nic.in, www.core.nic.in

ANNUAL REPORT2006-07

The time has comeFor us to stand-up for our rights again.

Prin

ted

at

: Ara

vali

Prin

ters

& P

ub

lish

er P

vt. L

td.,

New

Del

hi

“A Customer is most important visitor on our premises. He is not dependent on us. We are

dependent on him. He is not an outsider on our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by

giving us an opportunity to do so.”

Mahatma Gandhi

Contents

CHAPTER SUBJECT PAGE NO.

I FUNCTIONAL AND ORGANISATIONAL SET UP 1-4

II EXECUTIVE SUMMARY 5-22

III GENERAL PRICE SITUATION AND AVAILABILITY 23-36OF ESSENTIAL COMMODITIES

IV ESSENTIAL COMMODITIES ACT, 1955 37-42

V CONSUMER PROTECTION 43-62

VI PUBLICITY CAMPAIGN FOR CREATING 63-76CONSUMER AWARENESS

VII FORWARD MARKETS COMMISSION 77-96

VIII BUREAU OF INDIAN STANDARDS 97-120

IX WEIGHTS & MEASURES 121-124

X NATIONAL TEST HOUSE 125-136

XI NUMBER OF SC/ ST / OBC / PH / EXM OFFICERS 137-138

XII SEXUAL HARASSMENT OF WOMEN AT 139-140WORKPLACE-CONSTITUTION OFCOMPLAINTS COMMITTEE

XIII PROGRESSIVE USE OF HINDI 141-144

XIV DEVELOPMENT OF NORTH EASTERN REGION 145-148

XV INTEGRATED FINANCE DIVISION 149-156

XVI SCHEMES FOR THE BENEFIT OF THE PERSONS 157-158WITH DISABILITIES

National Consumer Helpline No. 1800-11-4000 (Toll Free) 1

Functional And Organisational Set Up

1.1 Sh. Sharad Pawar continued as theCabinet Minister for ConsumerAffairs, Food & Public Distributionw. e. f. 22.05.2004. Shri Taslimuddincontinued as Minister of State forConsumer Affairs w. e. f. 25.05.2004.

1.2 Shri Yashwant Bhave joined asSecretary in Department ofConsumer Affairs from 01.11.2006vice Shri L. Mansingh who retiredon superannuation on 31.10.2006.

Secretary (CA) is assisted by oneAdditional Secretary and oneSenior Economic Adviser.

1.3 The Department has beenentrusted with the following work:

i. Internal Trade

ii. Control of future trading: TheForward Contracts(Regulation) Act, 1952 (74 of1952).

iii. The Essential CommoditiesAct, 1955 (10 of 1955) (Supply,Price and Distribution ofEssential Commodities notdealt with specifically by anyanother Department).

iv. Prevention of BlackMarketing and Maintenance

FUNCTIONAL AND ORGANISATIONAL SET UP

CHAPTER - I

of Supply of EssentialCommodities Act, 1980(7 of1980). Persons subjected todetention there under.

v. Regulation of PackagedCommodities.

vi. Training in legal Metrology.

vii. The Emblems and Names(Prevention of Improper Use)Act, 1952 (12 of 1952).

viii. The Standards of Weights andMeasures. The Standards ofWeights and Measures Act,1976 (60 of 1976) andStandards of Weights andMeasures (Enforcement) Act1985.

ix. Bureau of Indian StandardsAct, 1986 (63 of 1986).

x. Laying down specifications,standards and codes andensuring quality control ofbio-fuels for end uses.

xi. Forward MarketsCommission

xii. Consumer Cooperatives

xiii. Monitoring of prices andavailability of essentialcommodities.

2 Annual Report 2006-07

Department of Consumer Affairs

xiv. National Test House

xv. The Consumer Protection Act,1986 (68 of 1986

Citizens’ Charter

1.4 The Citizens’ Charter, which is thedeclaration of commitment ofDepartment to achieve excellencein the formulation andimplementation of Policies andProcedures for the benefit ofconsumers and the public at large,is available at www.fcamin.nic.in.

Right to Information Act 2005

1.5 The information required to bemade available to the citizensunder Section 4 of the Right toInformation Act 2005 has beenposted on the Departmentalwebsite www.fcamin.nic.in. The listof Public Information Officers andappellate authorities in variousOrganisations/Divisions forproviding information to the publicunder the Act is also available onthe Departmental website. Alltender notices and other decisionsof public importance are beingposted on this website.

Vigilance

1.6 In the Department, AdditionalSecretary has been designated asthe Chief Vigilance Officer inaddition to her otherresponsibilities.

1.7 This Department also monitors thevigilance work of the Bureau ofIndian Standards, NationalConsumer Cooperative Federationof India Ltd., Super Bazar, IndianInstitute of Legal Metrology,National Consumer DisputesRedressal Commission, ForwardMarkets Commission, Mumbai andNational Test House and itsRegional Laboratories at Kolkata,Mumbai, Chennai, Ghaziabad,Jaipur and Guwahati.

1.8 With a view to preventingcorruption and ensuringtransparency and accountability,emphasis is placed on thefollowing points from the vigilanceside:-

(a) to conduct surprise vigilanceinspections more vigorously,especially in areas which arecorruption-prone;

(b) closer monitoring of disposalof vigilance cases in allorganizations under thisDepartment; and

(c) Rotation of staff in sensitiveareas.

1.9 Periodic returns pertaining toVigilance and Anti- CorruptionMeasures are being sent regularlyto Central Vigilance Commission,Prime Minister’s Office,Department of Personnel &Training etc.


Functional And Organisational Set Up

1.10 The Department observed VigilanceAwareness Week between 6th

November and 10th November, 2006as per the directions of the CVC. Aseminar was held on 9th November,

2006 with active participation fromofficers of the Department on thetheme “Necessity of VigilanceAwareness among GovernmentServants”.


Executive Summary

1. PRICE TREND AND AVAILABILITYOF ESSENTIAL COMMODITIESDURING 2006-2007 (UptoDecember 2006)

During the year 2006-07, upto December2006, the prices and availability of certaincommodities such as wheat and pulseshave registered an upward trend. Theprices of other essential commoditieshave generally remained withinreasonable levels. The reasons for the risein prices of wheat and pulses are shortfallin domestic supplies relative to demandand hardening of international prices.

1.2 The Price Monitoring Cellmonitored the retail prices of 14essential commodities viz. rice,wheat, gram dal, arhar dal, tea,sugar, salt, potato, onion, vanaspati,groundnut oil, mustard oil, milk andatta on a daily basis and thewholesale prices on a weekly basis.Daily retail prices and weeklywholesale prices are collected from18 and 37 centres respectively. Witheffect from 12.7.2006, nineadditional centres have beenincluded in the Daily Price Report.

1.3 During the first 9 months of theyear 2006-07 (upto December

EXECUTIVE SUMMARY

CHAPTER - II

2006), all commodities' WholesalePrice Index ( WPI) number wasestimated to be higher at 5.7% ascompared to 4.1% in thecorresponding period a year ago.

1.4 The stock of rice and wheat withthe Central Pool as on 1.12.06 wasat 176.50 lakh tonnes as comparedto 187.61 lakh tonnes on thecorresponding date in the previousyear. Stocks of wheat in the CentralPool declined and reached a low of20.09 lakh tonnes as on 1st April2006. During marketing year 2006-07, procurement of wheat was only92.26 lakh tonnes as against 147.85lakh tonnes in the correspondingperiod last year. Wheat prices haveregistered increase during the yearowing to, inter-alia, lowerproduction, lower procurementand a larger purchases by theprivate trade this year.

1.5 Increasing trend in prices of pulsesincluding gram dal, moong dal andurad dal was registered since June2006. The reasons for rise in theprices of various types of pulses arelargely shortfall in production andlow carry over stocks from previousyear. . However, since November,



prices of pulses have registered adeclining trend in Delhi. Retailprices of sugar in Delhi, after beingpegged in the bracket of Rs 21.00-22.00 per kg since the beginning ofthe financial year, declined to Rs20.00 per kg with effect from16.11.06 and further to Rs 19.00 perkg with effect from 26.12.06.

1.6 Government is aware of theincrease in prices of essentialcommodities such as wheat, pulsesand sugar and has responded bytaking a series of measures. Theimportant measures taken aregiven below:

(i) State Trading Corporation hasalready contracted for importof 55 lakh tonnes of wheat tosupplement domesticavailability. (ii) Import duty onpulses was reduced to zerowith effect from 8.6.2006 andGovernment have issued anotification on 4.12.2006extending the validity periodof zero duty on import ofpulses up to 1.8.2007. (iii) Aban was imposed on exportof pulses with effect from22.6.2006, which is valid upto31.3.2007. (iv) Import ofwheat has been permitted atzero duty w.e.f 9thSeptember 2006 andGovernment have issued anotification on 14.12.2006extending the validity period

of zero duty on import ofwheat from 31.12.06 up to28.2.2007. (v) Export of sugarwas banned till the end of thecurrent financial year witheffect from June 22, 2006.(vi)Import of sugar at zeroduty was permitted witheffect from June 23, 2006 upto September 30, 2006. (vii) Atthe initiative of theGovernment, NationalAgricultural CooperativeMarketing Federation of IndiaLtd. (NAFED) executed acontract for import of 49,300MTs of pulses. (viii) Duty onpalm group of oils wasreduced by 10 percentagepoints in August 2006. (ix) Tocontain volatility in thefutures prices of wheat, sugar,pulses, etc. Forward MarketsCommission (FMC) has takenrequired regulatory measuressuch as imposition of limitson open position, reductionin limits on daily pricefluctuations and impositionof additional/special margins.(x) Government has beenmonitoring the prices ofessential commodities closelyon a regular basis.

1.7 Apart from above steps,Government reintroduced enablingprovisions to prescribe stock limitsand licensing requirements (in


Executive Summary

August 2006) under the EC Act forthe State Governments. In view ofthe prevailing price situation,Government has issued a CentralOrder dated 29.8.2006 empoweringState Governments to issue ControlOrder in respect of purchase,movement, sale, supply, distributionor storage for wheat and pulses.However, this Order would notapply to transport, distribution ordisposal of wheat and pulses toplaces outside the State or importof these commodities. Thisdelegation is currently valid for sixmonths.

2. CONSUMER PROTECTIONPROGRAMME

2.2 Consumer movement is a socio-economic movement to protectthe rights of consumers in relationto the goods purchased andservices availed.

2.3 The Consumer Protection Act, 1986(68 of 1986) is enacted for betterprotecting the interest ofconsumers by establishing a three-tier quasi-judicial consumerdispute redressal machinery at theNational, State and District levelsfor settlement of consumerdisputes. The State of Jammu &Kashmir has enacted its ownlegislation in this field.

2.4 A provision has been made in theConsumer Protection Rules, 1987

for appointment of upto 9members in the NationalCommission (NCDRC).

2.5 The size of the Central ConsumerProtection Council (CCPC) hasbeen reduced from 150 to 35members for its effectivefunctioning and easy convening ofits meeting.

2.6 Computerization and ComputerNetworking of Consumer Fora'CONFONET' is to provide I.T.solutions in order to achieve e-governance, transparency,efficiency of consumer fora andfacilitate disposal of cases in a timebound manner. On completion ofthis scheme, consumers would beenabled to file their complaintsonline and see the status of theircases on the website. At presentcomputer systems and systemsoftware have been delivered to 33State Commissions and 533 DistrictFora.

2.7 The 'Integrated Project onConsumer Protection' envisagesprovision of financial assistanceto States/UTs to supplement theirefforts in strengthening theinfrastructural requirements ofthe consumer fora by filling upthe critical gaps in infrastructureso that each forum is providedwith the minimum requiredfacilities.



2.8 Training Programmes forPresidents and Members of DistrictFora & State Commissions andother staff are also organized fromtime to time to update them onlatest developments in the field ofconsumer protection.

3. CONSUMER WELFARE FUND

3.1 The scheme for Consumer Clubshas been introduced in the Statesof Arunachal Pradesh,Lakshadweep (UT ), HimachalPradesh, Punjab, and Pondicherry(UT) in addition to the existingStates. Phase II of the Scheme wasalso launched in Andhra Pradesh,Karnataka and Tamil Nadu. Thelist of schools to whom theseconsumer clubs have beensanctioned have been displayedon the website of theDepartment.

3.2 Seed money for creation of StateConsumer Welfare Funds havebeen sanctioned to the States ofArunachal Pradesh, Goa, Mizoram,Uttaranchal, Chhattisgarh andTamilnadu.

3.3 Under the scheme on Research/Seminars/Consumer Rightsfestivals being implementedthrough IIPA, New Delhi, an amountof Rs.93.17 lakhs has beensanctioned for 87 proposals duringthe period October'05 toSeptember'06.

4. FORWARD MARKETSCOMMISSION

4.1 The important developmentsduring the year 2006-07 were: -

4.2 The total value of trade during2006-07 (April -December 06)stood at Rs.27.39 Lakh crores asagainst Rs. 14.10 lakh crores duringthe corresponding period last year.Total value of trade during 2005-06was Rs. 21.55 lakh crores.

l Regulatory Initiatives takenduring 2006-07.

Ø Restrictions imposed on thenumber of terminals amember can use forproprietary trading, toprevent possible circulartrading and authorizedappropriation of clients'business.

Ø The penalty for violation oflimit on open positionincreased from Rs. 1000/- toRs. 10,000/- or 2% of the valueof the limit exceeded whichever is higher to link thepenalty with the value of theviolation. It also provides forsuspension of the habitualdefaulters.

Ø PAN made mandatory for theclients for trading inCommodity Derivatives w.e.f.1st April 2007. The clients whodo not possess PAN will be


Executive Summary

required to give declarationin the prescribed form andwill have to furnish otherdocument for identification.

Ø The Commission continuedto be proactive in regulatoryaspects to promote marketintegrity and customerprotection and initiatedvarious steps by interveningthe wheat, Mentha Oil, Potato,Chana, Urad, Chilli, Natural gasetc. markets by revising thelimits on open position andimposing price bands andspecial margins from time totime.

Ø Audit of exchanges andtheir members throughprofessional auditorsinitiated.

Ø Real time monitoring of theopen positions of membersand clients put in place from2nd November 2006. Themonitoring of open positionsof the members shall be doneby the Exchanges. Themembers are being heldresponsible for monitoringtheir clients trading activityon a real-time basis.

Ø The exchanges asked todirect the members that themembers shall not indulge inportfolio managementservices and such other

services as they are notpermitted by theCommission.

Ø Limit on open positionimposed for near monthcontracts in eightcommodities traded indifferent National Exchangeswith this the total number ofcommodities in which nearmonth limits have beenprescribed is gone up to 15.

Ø The Commission issuedorders on 4th December2006, initiating action againstsuch defaulting members ofNCDEX, Mumbai for repeatedviolations of client level openposition limit during theperiod 16.08.2005 to31.07.2006.

l Developmental Initiatives

Ø 35 awareness programsorganized in various parts ofthe country.

Ø Training programs/capacitybuilding programmes werealso organized throughNational Institute of BankManagement, Pune (forcreating awareness amongstthe bank officers), IndianInstitute of Ruralmanagement (IRMA) Anandfor creating awarenessamongst the Co-operativesand through Indian Institute



of Management, Bangalore(IIM, Bangalore) for seniorofficers of the AgricultureDepartment, Civil Supplies,Agricultural Produce Marketcommittees of the StateGovernment for creatingawareness about thesemarkets.

Ø Four interactive meetingswith members of NationalExchange belonging to theEast, West, North and Southzones were held.

Ø A seminar on CommodityFutures Market wasorganised for the benefit ofthe officers of theDepartment of Agriculture atNew Delhi on 10th November2006.

l Agreement signed withInternational bodies

Ø A Memorandum ofUnderstanding was signedbetween the United StatesCommodity Futures TradingCommission (USCFTC) andForward Markets Commission(FMC) at Mumbai on 18thOctober, 2006.

Ø FMC also signed an MOU withChina Securities RegulatoryCommission (CSRC) duringthe visit of the ChinesePresident Shri. Hu Jintao toIndia on 21.11.2006.

Ø FMC became an AssociateMember of IOSCO. IOSCO isthe body of all InternationalSecurity and CommoditiesMarket Regulators.

5. ESSENTIAL COMMODITIESREGULATIONS ANDENFORCEMENT

This Department, inter alia, is alsoadministering the following Acts:

(a) Essential Commodities Act,1955 (E C Act, 1955)

(b) Prevention of Black-marketing andMaintenance of Supplies ofEssential Commodities Act,1980 (PBM Act,1980)

5.1 The Essential Commodities Act,1955 provides for the control ofproduction, supply, distribution etc.of essential commodities formaintaining or increasing suppliesand for securing their equitabledistribution and availability at fairprices. Most of the powers underthe Act have been delegated by theCentral Government to the StateGovernments. Exercising powersunder the Act, various Ministries/Departments of the CentralGovernment and StateGovernments/UT Administrationshave issued Control Orders forregulating production, distribution,pricing and other aspects oftrading in respect of the


Executive Summary

commodities declared as essential.To implement the provisions of theAct, States/UTs have been takingaction against the violators andsending the action taken reportsregularly to the CentralGovernment. As per the reportsreceived from the StateGovernments/UT Administrations,135224 raids were conducted, 5432persons arrested, 3355 personsprosecuted and 599 personsconvicted under the Act during theyear 2006 as reported upto31.12.2006.

5.2 The commodities declared as'essential' under the EssentialCommodities Act, 1955 arereviewed from time to time in thelight of changes in the economicsituation and particularly withregard to their production andsupply in consultation with theconcerned Ministries/Departmentsadministering these commodities.Number of such commoditieswhich stood at 70 in the year 1989had been brought down to 15. Thisnumber has now been furtherpruned to 7, in order to furtherfacilitate free trade and commerce.

5.3 It is now universally accepted thatall unnecessary and redundantrestrictions which distort andimpede operation of market forcesshould be removed. In addition,regulations under the umbrellawhich have no bearing on the

essentiality of an item or objectiveof the said Act, are required to bemade transparent. Afterconsultation with all Ministriesconcerned, the EssentialCommodities (Amendment) Act,2006 has been notified on 26thDecember, 2006. In this Act, the listof essential commodities has beenconsiderably pruned down andonly those commoditiesconsidered essential to life, orwhich are in the interest of farmersand the large section of the peoplebelow the poverty line have beenretained. The Central Governmentalso gets the powers to add,remove or modify any essentialcommodity in consultation withState Governments in publicinterest where there is a scarcity.The Amendments will come intoeffect from 12.2.2007.

5.4 In the context of recent rise inprices of some essentialcommodities the Central Govt.through its Central Order dated29.08.2006, kept in abeyanceprovisions relating to purchase,movement, sale, supply,distribution or storage for sale inthe "Removal of (Licensingrequirements, Stock limits andMovement restrictions) onspecified foodstuffs Order, 2002"wheat and pulses for a period of 6months. The objective was toenable State Governments to



tackle rise in price and availabilityof these commodities. They willhowever not affect inter-statemovement and import of thesecommodities.

5.5 The Prevention of Black-marketing and Maintenance ofSupplies of Essential CommoditiesAct, 1980 empowers the CentralGovernment or a StateGovernment to detain personswhose activities are found to beprejudicial to the maintenance ofsupplies of commodities essentialto the community. As per reportsreceived from the StateGovernments, 161 persons wereordered for detention under theAct during the period from 1.1.2006to 31.12.2006. The CentralGovernment and the StateGovernments also have the powerto modify or revoke the detentionorders. The representations madeby or on behalf of the personsordered for detention areconsidered and decided by theCentral Government. 129 suchrepresentations were consideredand decided by the CentralGovernment during the periodfrom 1.1.2006 to 31.12.2006. Writpetitions are filed by the detenuesin the High Courts and SupremeCourt against their detention.Counter Affidavits to the same arerequired to be filed by the Union ofIndia being pleaded as a party in

these petitions. 88 such affidavitswere filed in the High Court duringthe same period.

6. BUREAU OF INDIAN STANDARDS

6.1 With the changed socio-economicenvironment, higher pace ofindustrialization, technologicaladvancement and risingexpectations of the consumers, theBureau of Indian Standards was setup as a statutory organizationunder the Bureau of IndianStandards Act, 1986 taking over theassets and liabilities of the IndianStandards Institution (ISI), whichhad started functioning in the year1947 with Headquarters at NewDelhi. It has a network of fiveregional offices, 33 branch offices,5 inspection offices and 8laboratories which act as effectivelink between BIS, government,industry and consumers.

6.2 Bureau has made a steady progressin its key activities, namelyStandards formulation, Productand System Certification .

IMPORTANT ISSUES PERTAININGTO BIS

Ø Standards Formulation: BIS isformulating need-based IndianStandards in line with the nationalpriorities as a time boundprogramme. The Bureau has takena decision to harmonize national


Executive Summary

standards with regional andinternational standards in order tofacilitate adoption of internationalstandards by all segments ofbusiness and industry. Some of theimportant standards during Apr -December 2006 which are beingpublished are:

l IS 15741:2006, Textiles -Resistance to Ignition ofCurtains and Drapes -Specification

l Textiles - Resistance toIgnition of UpholsteredComposites Used for Non-Domestic Furniture

l IS 15651:2006 Textiles -Requirements forEnvironmental Labelling-Specification

l IS 8310 - Information andDocumentation -International Standard BookNumber (ISBN)

l IS 15729:2006 'Natural GasPressure Regulating andMetering Terminal - Code ofPractice '

l Geophysical Logging ofBoreholes for Hydro-geological Purposes

l IS 4457 - Ceramic UnglazedVitreous Acid Resisting Tiles -Specification (SecondRevision)

l IS4025:2006 Rolling Bearings- Gauging Practice (SecondRevision)

In addition a total of 29 standards on GasPipelines were published out of whichsome of the important standards are IS15666:2006 - Gas Turbines, IS15654:2006 - Supervisory Control andData Acquisition (SCADA) System for Oiland gas pipeline and IS 15657:2006 -Centrifugal Pumps for PetroleumPetrochemical and Natural gasindustries.

Ø Product Certification

New Initiatives Taken

l Simplification of Procedurefor Grant of Licence -Initiative has been taken toreduce the time taken forgrant of licence. One of themajor factor whichcontributed towards delay ingrant of licence was the timetaken in testing of samples.Under the new simplifiedprocedure, this has beenaddressed and licences arebeing granted on the basis oftests reports from BISapproved labs also. This hassignificantly reduced the timeperiod for grant of licencefrom 4 months to 1 month.An alternate option has alsobeen provided to theapplicants to get the pre-



requisite for grant of licenceverified by a CharteredEngineer in place of visit by aBIS officer. However,subsequent visits by BISofficers will ensurecontinuance andmaintenance ofmanufacturing and testingequipment.

l Outsourcing of Inspection -Due to constraint of manpower, BIS has alsooutsourced surveillanceinspections to outsideagencies. Agents have beenappointed and agreementssigned with them. Traininghas been imparted anddetailed guidelines havebeen issued. It is expectedthat this will help in provisionof better services to thelicensees and protectingconsumer's interest.

l Outsourcing forprocurement of Marketsamples - With a view toinvolve consumer andother Non GovernmentOrganizations in the activity ofconformity assessment, BIShas taken an initiative tooutsource the task ofprocurement of marketsamples to agents includingsuch organizations. . It hasalso been decided to associate

Faculty and students of Govt.and Universities / EngineeringColleges in the procurementof market samples.

l Policy for MandatoryCertification - BIS has beenreceiving proposals fromdifferent stakeholders forcovering different products/standards under mandatorycertification. BIS hasformulated a policy forselection of such items thatneed to be brought undermandatory certification. Thiswill ensure a uniform andobjective approach.

Ø Certification of Govt.Organization(s) for ServiceDelivery- The QualityManagement Systems StandardIS/ISO 9001 provides a genericframework for organizations toensure quality of service/products. In order to develop anew mechanism for certifyinggovernment organizations, a newstandard has been developednamely 'Quality ManagementSystems - Requirements forservices delivery by public serviceorganization' (IS 15700:2005 ).This standard has beenspecifically designed for publicservice organizations andprescribes a system that serviceorganizations should install withfocus on Citizen's Charter, Public


Executive Summary

Presentation Ceremony on Rajiv Gandhi National Quality Awards presided over by Hon'ble Minister,Ministry of Consumer Affairs, Food and Public Distribution

Grievance Redressal and ServiceQuality to deliver quality ofservice. This standard focuses ondelivery of quality service acrossthe counter. Further, theorganization implement thisstandard can be certified byBureau of Indian Standards atwhose request the Standard wasprepared. Deptt. of AdministrativeReforms and Public Grievance(DARPG) has drawn up a roadmapfor implementation of thisstandard in governmentdepartment. Ten departmentshave been initially identified toimplement this standard andachieve certification during 2006-07. BIS has already identified andtrained about 50 auditors all overIndia who would be certifying the

Govt. department as and whenthey are ready.

Ø Progress of Hallmarking Scheme

With the implementation of asimplified and rationalized scheme,Hallmarking of gold and silverarticles, has grown significantlyduring the period April toDecember 2006. The no. of licencesfor Hallmarking of gold jewelleryhas grown from 1410 on 1 April2006 to 2794 as on 31 December2006. Similarly the number of silverlicences for Hallmarking of silverjewellery / artefacts has grownfrom 23 on 31 March 2006 to 172as on 31 December 2006.

The average number of licencesgranted per month beforesimplification and rationalization



were 16 per month, which hassignificantly grown to 169 permonth for the period April toDecember 2006.

65.76 lakh articles of goldjewellery/artifacts have beenhallmarked during the period April-December 2006, bringing the totalnumber of hallmarked articles to180.76 lakh.

Based on the feedback receivedfrom stakeholders, the Scheme hasbeen further modified by makingappropriate changes in theapplication form and formulatingguidelines for centralizedinteraction by one BO with thejewellers having multi chain outletsfalling under different BOs. Further,Jewellers having multi chainoutlets have been permitted 25%discount for every subsequentoutlet after the first licence.

The BIS hallmarking scheme forgold is a third party certificationscheme in which the licensees canget their jewellery/ artifactshallmarked by the BIS recognizedAssaying & Hallmarking (A& H)Centres. Recognition is granted toCentres, on the basis of complianceto BIS criteria for recognition ofA&H centres which is based on ISO/IEC 17025 General requirements forthe competence of testing andcalibration laboratories. During theyear, the number of BIS recognized

Assaying and Hallmarking centreshas grown to 41 from 36. Financialincentives in terms of 15% of thecost of machinery and equipmentlimited to Rs.15 lakhs is available tonew assaying and hallmarkingcentres in non-traditional areas. Inthe case of the North-Eastern andspecial category States theassistance available for new centresis 30% limited to a maximum of Rs.30 lakhs. This it is hoped will helpcreate the requisite infrastructurefor Hallmarking, to cater to theincreasing demand for Hallmarkedjewellery / artifacts.

l Market Survey of Non-Hallmarked Jewellery

A market survey was gotconducted by Bureau of IndianStandards during the year 2006 in16 cities. Out of 162 samples takenand tested for purity, 146 samples(90%) were found short in puritywith average shortfall of 13.5% andmaximum shortfall of 44.66% incase of non Hallmark jewellery. Inorder to save the consumers fromheavy losses on account of shortfall in purity of gold, theDepartment and BIS are taking upa campaign for consumerawareness.

l Publicity about Hallmarking

To promote hallmarking in thecountry for effective consumerprotection in gold jewellery trade,


Executive Summary

92 awareness programmes wereorganized by various Regional andBranch offices across the country.Some of these programmes werechaired by the top management ofBIS for direct interaction and takingfeedback from the stakeholders.

In addition to the aboveprogrammes 174 advertisementshave been released in variousnewspapers across the country forspreading awareness among theconsumers / jewellers about thebenefits of hallmarking scheme.

l Draft Bureau of Indian Standards(Hallmarking of Precious Metals)Regulations, 2006

To provide a legal back up toHallmarking, Draft Bureau of IndianStandards (Hallmarking of PreciousMetals) Regulations have beenformulated and circulated tostakeholders and hosted on BISwebsite for comments ofstakeholders.

l Accession to Vienna Conventionon Control and Marking ofPrecious Metals

As a part of ongoing efforts foraccession to Vienna Conventionthe meeting of the StandingCommittee of the convention wasattended by an Indian delegationin September 2006 at Prague.Accession to the convention willfacilitate export of jewellery.

Ø INTERNATIONAL ACTIVITIES

l BILATERAL CO-OPERATIONPROGRAMMES

BIS signed an MOU with theAmerican National StandardsInstitute (ANSI), USA inSeptember, 2006 in the field ofStandardization andConformity Assessment. z

BIS also signed an MOU withAfghan NationalStandardization Authority(ANSA), Afghanistan forcooperation the fields ofstandardization, certification,testing, technical informationand training. The agreementwas signed in April 2006.

An MOU with DIN, Germanyhas been signed forcooperation in the field ofstandardization andproviding technicalassistance and training forestablishing infrastructure.

BIS has signed a bilateralcooperation agreement withSri Lanka StandardsInstitution (SLSI), Sri Lanka inAugust 2006. The agreementcovers provisions foracceptance of test reportsand inspection reports ofeach other for the purpose ofoperation of the respectivecertification schemes. The



agreement also coverscooperation in the areas ofstandardization, qualityassurance and testing.

An MOU with The AssociacaoBrasileira De Norms Tecnicas(ABNT), Brazil was also signedin September 2006. The MOUcovers cooperation in the fieldsof standardization, certification,technical information andtraining.

BIS continued to worktowards closer bilateralcooperation with countriessuch as Singapore, Oman,USA, Israel, and Thailand inclose association withMinistry of Commerce andMinistry of External Affairs.

l WTO/TBT ENQUIRY POINT

BIS strengthened its activitiesas the WTO / TBT Enquiry Point,as designated by the Ministryof Commerce. Closeinteraction with Ministry ofCommerce and Industry onvarious issues of nationalinterest under WTO/TBTAgreement was maintained.The activity of providingservices of the Enquiry Pointwas outsourced by BIS. Theinformation with regard to theNotifications issued by variouscountries were downloaded,prioritized, segregated and

disseminated to a largenumber of stakeholderswithin the country. A systemof sending reminders to stakeholders for their commentshas been established;comments received fromstake holders are analyzedand sent to Ministry ofCommerce. The notificationsissued by various countries arealso being uploaded on theBIS website to assist the stakeholders. Notifications relatingto the products being broughtunder mandatory certificationof BIS are also notified to WTOthrough the Ministry ofCommerce.

All reasonable queriespertaining to Standards andConformity AssessmentSystems, both national and ofother countries, fromconcerned interests in India aswell as overseas have beenreplied.

In order to sensitize thevarious stake holdersespecially the regulators asenior level workshop wasorganized on"Implementation of WTO TBTAgreement, Expectations fromWTO TBT Enquiry Point". Theworkshop was chaired jointlyby Secretary, Consumer Affairsand Special Secretary Min. of


Executive Summary

Commerce. Information withregard to the structure andfunctioning of WTO, TBTagreement, the Notificationsand their significance onGlobal Trade and the Role andResponsibilities of Regulatorsand BIS as Activity EnquiryPoint was provided to theparticipants during theworkshop.

l CE Marking informationCentre

To facilitate Export of productsto EU countries, aninformation centre has beenestablished at BIS. Throughthis information on CEMarking on EU legislation,directives and procedure isbeing disseminated to Indianindustries.

l Technical InformationService Centre

BIS provides TechnicalInformation Services toIndustry, importers, exporters,individuals and governmentagencies in response to theirenquiries. In this endeavor,more than 600 enquirieswere responded during theperiod.

Ø ENFORCEMENT

In its endeavor to sustain thepopularity of its Standard Mark, BIS

has strengthened its enforcementactivities. It organizes enforcement-cum-consumer awareness drivesthroughout the country to educatethe common consumer about theirrights, benefits of purchasingcertified goods and different formsof misuse of its StandardMark normally adopted bymanufacturers/suppliers, so thatthe consumer can distinguishbetween a genuine mark andforged one. 120 search & seizureswere also conducted for misuse ofthe Standard Mark and otherviolation of BIS Act during April toDecember 2006.

To further strengthen and increasethe effectiveness of enforcementraids, this activity has been partiallyoutsourced in 8 major locationsnamely National Capital Region,Mumbai, Chennai, Kolkata, Bangalore,Hyderabad, Ahmedabad and Jaipur.

Ø BIS Laboratories Modernizationprogramme

On directions of EC, a StandingCommittee was constituted formodernization of BIS Labs withfollowing terms of reference:

l Completion of partial testingfacilities

l Up-gradation of existingtesting facilities

l Creation of new testingfacilities

l Infrastructure



A comprehensive plan formodernization has been prepared.

Ø Computerization of BIS activities

The Project named "IntegratedComputerization of BIS Activities"launched in November 2002 incollaboration with NIC, has madeconsiderable progress. 36 servers,650 computers, 350 printers andnetworking equipment have beenprocured, installed and are in useat various locations. The applicationsoftware for certification marks hasbeen developed, installed andoperational in all offices of BIS.Software development for theother two core activities viz.standards formulation andlaboratory services is in process.The local area networking (LAN) atHeadquarters, Regional offices andBranch Offices has been completedand commissioned. All BIS officeshave been connected throughWide Area Network (WAN).

Ø Hindi Website

Hindi version of the BIS website hasbeen launched and is availablethrough link on http://www.bis.org.in. Content related tovarious certification schemes andservices offered by BIS has beenhosted.

Ø Online Complaint Registration

Software for online complaintregistration has also been placed

on the website, using which users/consumers can file complaintsrelated to ISI marked products andBIS services from anywhere in India.

7. WEIGHTS AND MEASURES

7.1 Weights and Measures Laws formthe basis of commercial transactionin any civilized society. To ensureaccuracy of measurement in suchtransaction, the Government hasenacted two legislation namely, theStandards of Weights and MeasuresAct, 1976 and the Standards ofWeights and Measures(Enforcement) Act, 1985. The twoamendment bills introduced in theRajya Sabha on 10th March, 2005had since been examined by theParliamentary StandingCommittee. On therecommendation of the StandingCommittee, an integrated billcombining the two legislations hasbeen prepared and inter ministerialconsultations on the bill are inprogress.

7.2 The Standards of Weights andMeasures (Packaged Commodities)Rules, 1977 regulate pre-packedcommodities sold in the course ofinter-State trade or commerce. TheRules require the manufacturers/packers to indicate certaindeclarations on the packagedcommodities in the interest of theconsumers and ensure availability ofthe declared quantity of the product


Executive Summary

in the package. The Rules alsorequire importers to indicate certaindeclarations on imported packagesin the interest of the consumers.After a comprehensive review witha view to simplification anamendment was effected videnotification GSR 425(E) dated17.7.2006.

7.3 The Department has already set inmotion the process of adoptingnew specifications in the Standardsof Weights and Measures (General)Rules, 1987 in accordance with therecommendations made by theInternational Organization of LegalMetrology (OIML). Towards thisend, the Rules have been amendedto incorporate new specification ofautomatic rail weighbridges, digitaltype clinical thermometers,automatic gravimetric fillinginstruments, Standard Weights fortesting higher capacity weighingmachines, discontinuous totalizingautomatic weighing instrumentsSphygmomanometer (BloodPressure measuring instruments)and CNG gas dispensers based onOIML recommendation.

8 NATIONAL TEST HOUSE

1. Buoyancy and Temperature RiseTest were carried out for LifeJackets to protect consumer safety.

2. The reasons for failure of MacalloyBars, imported from M/s. Macalloy

Limited, Sheffield, UK, which wasutilized as upstream side hangersof post-tensioning system by M/s.Larsen & Toubro Ltd. duringerection work of SecondVivekananda Bridge over theGanges was investigated.

3. Lucas TVS Motor has entrusted NTHthe work on investigation of failureof rubber moulded cap, fitted onSpark Plug. A critical testing ofBreakdown voltage of rubbermoulded cap currently used byLucas TVS has been determinedand the reason of failure identified.

4. The following actions have beenundertaken for the goal of Self-Reliance:

i) Internal Task Force (ITF) hasbeen constituted with thefollowing five workinggroups for overalldevelopment of theorganization.

1. WG-1: Business Promotion &Customer Satisfaction.

2. WG-2 : Development of TestLaboratories.

3. WG-3 : Implementation ofQuality System.

4. WG-4 : Human ResourceDevelopment.

5. WG-5 : InfrastructuralFacilities/ Welfare Schemesfor optimizing the efficiency.



ii) The following committees

have been formed for

optimizing the functioning of

the organization :

i) Revision of Test Fee

Structure..

ii) MIS (Management

Information System).

iii) Standardization of PDC

(Probable Date of

Completion) and its

monitoring system.

iv) Advisory & Monitoring

Committee related to ITF

(Internal Task Force).

v) Committee for FCS (from

Scientist-SB to Scientist-SG).

vi) Restructuring Committee for

Scientific Staff.

vii) Restructuring Committee for

Administrative Staff.

viii) Restructuring Committee for

Technical Supporting Staff.

9. CONSUMER COOPERATIVES

9.1 Consumer cooperatives have beenplaying a significant role in thedistribution of consumer goods,particularly supply of essentialconsumer items at fair prices to therural community, especially inremote, inaccessible and hilly areas.The objective of consumercooperatives has been to eliminatemiddleman, to protect thewholesalers and sell to consumersat reasonable prices. The surplus, ifany, is distributed among themembers as bonus on purchases orused for growth of the cooperatives.Consumer cooperatives havereceived a good deal of supportfrom the Government, as they helpto check rise in prices of consumergoods. Consumer Cooperativeshave a four-tier structurecomprising primary store,wholesale/Central store, StateConsumer Cooperative Federationsand National ConsumerCooperative Federation.


General Price Situation and Availability of Essential Commodities

GENERAL PRICE SITUATION AND AVAILABILITY OFESSENTIAL COMMODITIES

CHAPTER - III

3.1 During the current financial year2006-07(up to December, 2006),the prices certain commoditiessuch as wheat and pulses haveregistered an upward trend. Theprices of other essentialcommodities have generallyremained within reasonable levels.The reasons for the rise in prices ofwheat and pulses are shortfall indomestic supplies relative todemand and hardening ofinternational prices. Overallavailability of other essentialcommodities have remained atreasonable levels barring marginalvariations noticed in the prices ofsugar and potato. Since November2006, prices of pulses viz., gram dal,tur dal, moong dal and urad dalhave shown some decline atvarious centres at retail andwholesale level. Retail prices ofsugar in Delhi, after being peggedin the bracket of Rs 21.00-22.00 perkg since the beginning of thefinancial year, declined to Rs 20.00per kg with effect from 16.11.06and further to Rs 19.00 per kg witheffect from 26.12.06

PRICE MONITORING CELL

3.2 The Department of ConsumerAffairs is entrusted with the task ofmonitoring of the prices andavailability of essentialcommodities in the country. ThePrice Monitoring Cell (PMC) of theDepartment of Consumer Affairscontinued to monitor regularly theprices of 14 essential commodities,viz., rice, wheat, atta, gram dal, tur/arhar dal, tea, milk, sugar, vanaspati,mustard oil, groundnut oil, potato,onion and salt, and other mattersrelating to price scenario.

3.3 Monitoring of Daily retail pricesand weekly wholesale prices on 14essential commodities collectedfrom 18 and 37 centres respectivelyis done regularly. With effectfrom12.7.2006, nine additionalcentres viz, Jammu, Srinagar, Raipur,Ranchi, Dehradun, Chandigarh,Amritsar, Ludhiana and Kohimahave been added in the Daily RetailPrices Report which are reportingprices of essential commodities.

3.4 The Government has given highestpriority to check price rise in the



country. In the wake of rise in pricesof essential commodities, meetingsof the Committee of Secretaries(CoS) and of the CabinetCommittee on Prices of essentialcommodities are being heldregularly since March, 2006 toreview the prices of thesecommodities. Notes on themeasures taken by Government forensuring adequate suppliesincluding the rise in prices ofessential commodities wereprepared and given to PressInformation Bureau (PIB) on aweekly basis for wide publicity.Analytical notes on latest pricesituation and availability ofessential commodities wereprepared based on the WPI

numbers, wholesale/retail prices,production, procurement andexports/imports of select essentialcommodities for consideration ofthe meetings of High PoweredPrice Monitoring Board (HPPMB)and other high level meetings.

RETAIL PRICES

3.5 Barring an increase in pricesregistered for certain essentialcommodities like wheat, pulses viz.,gram dal, tur dal, urad dal andmoong dal, the retail prices ofother essential commodities havelargely exhibited a steady trend. Asummary of zone-wise movementof average prices during April -December , 2006 is given below:

(Rs per kg)

Item North Zone East Zone West Zone South Zone

3.4.06 29.12.06 3.4.06 29.12.06 3.4.06 29.12.06 3.4.06 29.12.06

Rice 12.67 14.10 11.08 11.50 11.19 12.38 11.75 11.67

Wheat 10.00 12.00 11.50 13.00 9.50 13.06 14.33 14.33

Atta 11.33 13.83 12.58 14.33 10.88 13.75 14.50 14.33

Gram dal 28.50 40.50 26.40 38.60 24.50 39.00 31.50 32.00

Tur/Arhar dal 32.50 34.33 29.83 31.17 29.00 30.25 32.75 32.33

Sugar 21.67 19.67 22.08 21.00 21.00 19.88 20.25 20.50

Groundnut oil* 81.00 83.67 80.00 80.00 56.62 65.50 52.00 52.67

Mustard oil * 52.67 59.67 50.83 54.50 53.50 55.00 68.50 68.50

Vanaspati 48.00 54.00 48.50 53.00 46.50 49.75 50.50 50.33

Tea 121.00 129.67 104.17 106.67 117.75 116.50 169.5 156.00

Milk (Rs. Per litre) 16.67 18.00 20.17 21.83 15.75 17.00 14.25 14.33

Potato 6.67 6.33 7.17 9.17 7.88 10.25 10.00 11.33

Onion 6.67 11.33 8.83 9.67 4.62 7.00 5.13 5.17

Salt(Packed) 8.75 8.67 7.58 7.50 7.19 7.12 7.00 6.50

* Includes refined oil. Price differential due to differences in quality specifications of the product reported

upon by the concerned State Governments Source:-State Food & Civil Supplies Depts.



TREND IN INFLATION IN TERMSOF WHOLESALE PRICE INDEX(WPI) NUMBERS:

3.7 During the first 9 months of theyear 2006-07 (upto December2006), the all commodities'Wholesale Price Index ( WPI)number was estimated to behigher at 5.7% as compared to 4.1%in the corresponding period a yearago. The annual rate of inflationduring the month of December2006 was also higher at 5.4% ascompared to 4.5% in the month ofDecember 2005. The higher rate ofinflation in the current year wasmainly attributed to a rise in pricesof primary articles specially foodarticles from the beginning of

September 2006. The inflation ratesfor primary articles at 8.6 per centwas significantly higher than 4.9per cent recorded a year ago; formanufactured products at 4.9 percent was also higher than 3.1 percent pegged last year; however, forthe fuel and power group theinflation rate at 3.6 per cent waslower than 7.8 per cent recorded ayear ago.

3.8 Out of the total 435 commoditiesincluded in the Wholesale PricesIndex basket (Base 1993-94=100)compiled by the Department ofIndustry, 27 commodities areconsidered as essential, whichaccount for 17.80% of the totalweight in the WPI. The annualpercentage variation in the

Trend of Average Retail Prices of Wheat, Gram Dal, Tur Dal and Sugar

3.6 The trend is graphically depicted below:



wholesale price indices of these 27selected essential commoditiesalong with their groups/sub-groupsduring the month of December,2006 and for the correspondingperiod in 2005 are given inAnnexure-I. During the first 9months of 2006-07, the annual rateof inflation hovered in the range of3.86% (recorded in April 2006) and5.43% (recorded in December 2006),while in the corresponding periodin 2005-06, the same was in therange of 3.66%(August 2005) and5.91% (April 2005).

INFLATION BASED ON CPI

3.9 During the first nine months of2006-07, the Consumer Price Indexfor Industrial Workers (CPI-IW) roseby an average of 6.58% while theWPI increased on an average by4.83%. A statement showing the

trend in the rate of inflation in CPIvis-à-vis WPI during 2006-07 isgiven below:

3.10 The current financial year startedwith an annual CPI inflation rate of5.1 per cent in April 2006, which washigher than WPI inflation rate 3.86per cent in April 2006. CPI inflationrate at 7.56 percent in June 2006 wasthe highest recorded in the last 7years. The WPI-based monthlyaverage inflation rate in October2006 at 5.51 per cent was lower than7.30 per cent CPI-based inflation inthe same month. The CPI-basedinflation remained higher than WPI-based inflation since November2005 with the food group having ahigher weight in the CPI-IW basketthan in the WPI basket. The trend ofCPI and WPI annual rates of inflationfrom April 2006 till date isgraphically depicted below:

(Para 3.9) (in percentage)

Index Apr.06 May.06 Jun.06 Jul.06 Aug.06 Sep.06 Oct.06 Nov. 06 Dec. 06 Average

(Apr- oct)

CPI 5.1 6.26 7.56 6.69 6.30 6.83 7.30 6.33 NA 6.54

WPI 3.86 4.73 5.12 4.83 5.12 4.92 5.51 5.31 5.43 5.04

*provisional

Rate of Inflation in WPI and CPI (Para 3.10)



COMMODITY-WISE TREND INAVAILABILITY AND PRICES OFESSENTIAL COMMODITIES

3.11 The availability of essentialcommodities other than wheat andpulses remained comfortable andthe retail prices indicated largely asteady trend for most of thecommodities Since the increase inthe prices of foodgrains, includingpulses, has largely been due tosupply side constraints (andconsequent demand-supply gaps)and hardening of internationalprices, steps have been taken toaugment the domestic availabilityby reduction in the duty rates andpermitting liberal imports. Month-end retail prices of 14 essentialcommodities at majormetropolitan cities from April, 2006to December 2006 are shown inAnnexure II. Commodity-wiseposition in the prices, productionand availability of essentialcommodities are briefly analyzedbelow:

RICE

3.12 During the current financial year, sofar, the retail prices of rice remainedat reasonable levels at almost allreporting centers. The retail priceof common variety of rice indicateda steady trend across the countryat Rs.8.00-16.00 per kg dependingon varieties, barring marginalvariations at some centers due to

higher input and transportationcost.

3.13 During 2005-06, the production ofrice, as per the 4th AdvanceEstimates of Production of theDepartment of Agriculture andCooperation, stood at 91.04 milliontonnes compared to 83.13 milliontonnes in 2004-05. Production ofkharif rice during 2006-07 (IstAdvance Estimates) is estimated tobe higher at 75.74 million tonnesfrom the 78.04 million tonnes in thecorresponding period a year ago.

3.14 The stocks of rice in the Central Poolavailable with Food Corporation ofIndia and State agencies as on 1stDecember 2006 was 12.06 milliontonnes as compared to 11.13million tonnes as on 1st December2005. The procurement of riceduring the marketing season 2005-06 (October - September) was28.04 million tonnes as comparedto 24.11 million tonnes in 2004-05.The progressive procurement ofrice during 2006-07 (upto 22.12.06)was 11.97 million tonnes ascompared to 12.45 million tonnesin the corresponding period lastyear. An incentive bonus of Rs 50per quintal in respect of rice hasbeen announced in respect ofpaddy procured during period1.10.06 to 31.3.07 in order to boostprocurement.



WHEAT

3.15 The retail prices of wheat whichwere ruling in the range of Rs 8.00to Rs 16.50 per kg( Thiruvananthapuram) in April2006 initially, started showing signsof hardening in November 2006when prices of wheat in Delhiincreased to Rs 12.00 per kg and inthe Southern States it increased atBangalore, Chennai andThiruvananthapuram by upto Rs.3.50 per kg. However, pricesdeclined at Hyderabad by Rs.2.00per kg. Since then, retail prices ofwheat are ruling in the range of Rs11.00 per kg (Bhopal) to Rs 18.00per kg (Thiruvananthapuram) as on29.12.06. NCDEX spot prices ofwheat at Delhi showed a consistentrising trend from mid October 2005from a plateau level in earliermonths. Futures prices mirroringthe trend in the spot market alsoreflected the underlyingfundamentals of the commodity.

3.16 The trends in the WPI of wheat forFY 2006-07 and FY 2005-06 aregraphically depicted below:

3.17 The production of wheat duringthe year 2005-06 is estimated to be69.48 million tonnes (FourthAdvance Estimates of Departmentof Agriculture and Cooperation) asagainst 68.64 million tonnes duringthe year 2004-05. The target forproduction of wheat during2006-07 is 75.53 million tonnes. Theopening stock of wheat in theCentral Pool was 2.01 milliontonnes which is lower incomparison to the buffer norm of4 million tonnes. Procurement ofwheat during marketing season2006-07 (April-March) was only9.23 million tonnes as compared tothe procurement target of 16.2million tonnes and 14.79 milliontonnes in previous year 2005-06.The largest shortfall was emanatingfrom Uttar Pradesh whichcontributed only 48,873 tonnes as

Trend in WPI of WHEAT in 2005-06 & 2006-07 (Para 3.16)



compared to 5,59,773 lakh tonnesin the previous year. Following theannouncement of MSP of Rs 650per quintal on 29.9.05, an incentiveof Rs. 50 per quintal payable overthe MSP was announced by theGovernment on 21.4.06. From thebeginning of the marketing seasonthis year, Private trade includingthose in organized/corporatesector were active in marketpurchases in the States of UttarPradesh, Haryana, Punjab andMadhya Pradesh.

3.18 In order to supplement domesticavailability, Government decided toimport 55 lakh tonnes of wheat atzero customs duty. The firstdecision to import 5 lakh tonnes ofwheat through the STC was takenin February, 2006. The imports wereto arrive only at the Southern ports(Chennai, Tuticorin and Kakinada).This was followed by a decision toimport 30 lakh tonnes of wheat andto import an additional 20 lakhtonnes of wheat. The State TradingCorporation had contracted forimport of 55 lakh tonnes of wheaton Government account tosupplement domestic availability.Apart from the above, customsduty on imports of wheat byprivate trade has been reducedfrom 50% to 5% on 28.6.06 andfurther to zero duty w.e.f. 9.9.06.Imports have also been allowedfreely upto 31.12.06. Government

have issued a notification on14.12.2006 extending the validityperiod of zero duty on import ofwheat from 31.12.06 for a furtherperiod up to 28.2.2007. Around 6.03lakh tonnes of wheat has beenimported on private account andanother 2-3 lakh tonnes areexpected to have arrived by31.12.2006.

3.19 Other steps taken by Governmentto contain prices of wheat are (i)Reintroduction of enablingprovisions to prescribe stock limitsand licensing requirements (inAugust 2006) under the EC Act forthe State Governments; (ii)Additional releases have beenmade under APL category of 1 lakhtonnes each for the months ofSeptember, October andNovember, 2006; (iii) Constantmonitoring of availability of wheatstocks in various regions to ensurethat all States of the country haveadequate wheat stocks to meet thecommitments under TPDS andwelfare schemes.

3.20 Along with urbanization, a changein diet in favour of wheat andwheat products in theconsumption basket is alreadyunderway and is likely to expandin the coming years. From 1993-94onwards, the per capitaconsumption of wheat and wheatproducts has been rising faster inurban areas than in the rural areas.



As per the data on householdconsumer expenditure 60th Roundof NSSO, the per capitaconsumption of wheat and wheatproducts in 2004-05 was around4.67 kg per capita in urban areas(4.44 kgs in 1993-94), compared tothe per capita consumption of 4.25kgs of wheat in rural areas (4.32 kgsin 1993-94). To meet the enhanceddemand, it is necessary to ensureadequate supplies by raisingproduction and productivity.

PULSES

3.21 The retail prices of pulses viz., gramdal, tur dal, moong dal and urad dalhave indicated an upward trend atthe various centers in the currentyear. Retail prices of gram dal andtur dal registered an increase sinceJuly 2006. Prices of gram dal atDelhi also increased from Rs 31.00per kg in end July, 2006 to Rs 42.50

per kg in end October 2006. Priceshave since declined to Rs 38.00 perkg in end December, 2006. Pricesof tur dal increased from Rs 33.00per kg in end July, 2006 to Rs 35.00per kg in end October 2006. Pricesof tur dal have declined to Rs 33.00per kg in end December, 2006.Similarly, retail prices of moong dal(split) at Delhi also increased fromRs 44.00 per kg to Rs 47.00 per kgand that of urad dal (split)increased from Rs 44.00 per kg toRs 52 per kg during the sameperiod. However, prices of moongand urad have also shown a declinesince November, 2006.

The trend in WPI of gram in 2006-07 and 2005-06 is graphicallydepicted below:

3.22 Production of pulses have beenstagnant (around 13-14 milliontonnes) for the past one decade.However it was comparatively

Trend in WPI of Gram Dal in 2005-06 & 2006-07 (Para 3.21)



lower at 13.11 million tonnes in2005-06 as compared to 13.13million tonnes in 2004-05. Duringthe year 2006-07, production ofkharif pulses is estimated to bemarginally higher at 4.97 milliontonnes compared to 4.66 in thecorresponding period a year ago.

3.23 The demand for pulses has beenincreasing steadily mainly due toincrease in population andenhanced protein requirements infood. In view of the near stagnancyin production, the gap in demandand supply is met, to some extent,through imports. Consumption ofpulses per capita has beenincreasing in the country. The gapbetween demand and supply is metthrough import of 1.5-2.0 milliontonnes per annum. This year thecrop in Pakistan and Bangladeshhave also been adversely affectedleading to significant rise ininternational prices of urad andchana which is mainly importedfrom Myanmar. Import of pulsesduring 2005-06 was 16.08 lakhtonnes as compared to 13.39 milliontonnes in 2004-05. During April-December,2006 it was 14.05 lakhtonnes as against 16.99 lakh tonnesin April-December 2005.

SUGAR

3.24 The retail prices of sugar hadremained high during the currentfinancial year upto the middle of

November 2006. On expectationsof a bumper harvest of sugarcane,prices started declining at Delhifrom 16th November, 2006. Pricesof sugar at other centres stood inthe range of Rs 17.00 per kg to Rs21.00 per kg as on 29th December2006 as compared to pricesranging from Rs 19.50 per kg to Rs23.00 per kg as on 3rd April 2006.

3.25 The production of sugar hasincreased to 191 lakh tonnes during2005-06 sugar season from 136.60lakh tonnes a year ago. During2006-07 sugar year, production islikely to be 227.34 lakh tonnes.

3.26 The production of sugarcane, asper the First Advance Estimates ofproduction for 2006-07 isestimated to be higher at 283.4million tonnes compared to 278.39million tonnes in 2005-06.

3.27 Export of sugar during the first sixmonths of 2006-07 (April-September 2006) was 10.92 lakhtonnes as compared to 0.35 lakhtonnes in the correspondingperiod a year ago.

EDIBLE OILS

3.28 During the current year, the edibleoil prices remained steady barringa marginal increase at some centres.Retail prices of groundnut oil(including refined) were quoted inthe range of Rs.60.00-92.00 per kgand mustard oil (including refined)



in the range of Rs.48.00 to Rs.81.00per kg. Vanaspati was available inthe range of Rs.43.00-58.00 per kgduring this period. Total productionof oil seeds during 2005-06 was at arecord level of 27.73 million tonnescompared to 24.35 million tonnes in2004-05. For the year 2006-07, targetof production of oil seeds has beenfixed at 26.58 million tonnes.

3.29 The edible oils have a weight of2.7% in WPI. In terms of WPInumbers, the sub-group of edibleoils recorded an increase of 11.0%during April - December 2006 asagainst a decline of 3.2% during thesame period last year. Amongindividual edible oils, increase of21.3% was noted in groundnut oil,13.4% in coconut oil, 12.6% inmustard oil and 6.9% in vanaspati.

3.30 The gap in the availability ofdemand and supply of edible oil tothe extent of around 40% is met byimports. Imports of edible oilsduring the year 2005-06 was 41.75lakh tonnes as compared to 45.42lakh tonnes in 2004-05. During thefirst six months of 2006-07 (April-September 06), 21.58 lakh tonnesof edible oils have been importedas against 24.86 lakh tonnes in thecorresponding period a yearago(source: DGCI&S).

3.31 International prices of crude palmoil have increased in the last oneyear by around 25%, those of RBD

palmolein by 22% and those ofsoyabean oil by 20%. In view therise in international prices,Government have reduced theimport duty on Crude Palm Oil/crude palmolein from 80% to 70%and import duty on refined palmoil/RBD palmolein from 90 % to80% with effect from 11.8.2006.

3.32 During 2006-07, tariff value ofdifferent imported edible oils hasbeen revised in tune with the trendin international prices. As on 1.12.06,tariff value on Crude Palm oil was US$ 447 PMT, RBD palmolein at US $476 PMT, Crude Palmolein at US $481 PMT, RBD Palmolein at US $ 484PMT and Crude Soyabean oil at US$ 580 PMT.

VEGETABLES

ONION

3.33 Vegetable prices are subjected tovariations depending on theavailability and seasonal factors.Government has kept a close watchon the prices and availability ofvegetables especially onion andpotato. During the current financialyear 2006-07 prices remained atlower levels as compared to last year.Production of onion during 2005-06is estimated to be 6.23 million tonnesagainst 5.94 million tonnes in lastyear. Exports of onion during 2006-07 (April-December) were 9 lakhtonnes higher than 5.55 lakh tonnes



in corresponding period of previousyear owing to good demand foronion in export market and failure ofthe crop in neighbouring countries.

POTATO

3.34 The first signs of increase in pricesof potato were registered in thebeginning of July 2006. Potatoprices generally tend to increaseduring the months of September-November, in almost all the markets,since only stored potato is availableduring this time from cold storages,hills and Karnataka. New crop ofpotato from Karnataka andHimachal Pradesh started arrivingfrom November 2006 in theAzadpur Mandi, Delhi. Potatoarrivals increased by third week ofNovember from the States of Bihar,Uttar Pradesh, Uttaranchal, Punjab,Gujarat and Haryana. Since then,prices of potato have eased invarious markets viz., Delhi, Lucknow,Shimla and Thiruvananthapuramand are now ruling in the range ofRs 5.00 per kg to Rs 14.00 per kg(Thiruvananthapuram).

3.35 Production of potato during 2005-06 is estimated at the around thesame level of 26.48 million tonnesas in the previous year (Source:National Horticultural Researchand Development Foundation,Nasik). The trend in WPI 2006-07and 2005-06 is graphically depictedbelow:

TEA

3.36 The retail prices and availability oftea indicated a steady trend duringthe period under review. Exportsof tea during the first six months of2006-07 (April-September 06) was899.60 lakh kg as against 764.15lakh kg in the correspondingperiod a year ago(source: DGCI&S).

SALT

3.37 The availability and prices of saltremained satisfactory all over thecountry. The retail price of salt(packed) as reported by the StateCivil Supplies Departments, was inthe range of Rs.4.50 to Rs.10.00 perkg in different centers of thecountry.

Trend in WPI of Potato in2005-06 & 2006-07 (Para 3.35)



Commodity/Sub-group Annual Rate of Inflation Percentage Variation duringApril-December

Dec. 06 Dec.05 Apr.-Dec.06 Apr - Dec.05(OverDec.05) (OverDec.04)

ALL COMMODITIES 5.4 4.5 5.7 4.1PRIMARY ARITCLES 8.6 4.9 10.5 6.2FOOD ARTICLES 8.2 6.9 10.3 7.3CEREALS 10.2 4.1 7.5 3.0Rice 4.3 2.9 4.3 1.9Wheat 18.4 4.6 11.0 4.8Jowar 12.3 2.7 9.0 2.2Bajra 10.6 12.1 8.6 2.8PULSES 29.2 16.8 22.7 22.2Gram 35.0 26.7 36.9 27.0Arhar 6.5 -4.9 5.8 5.7Moong 35.9 14.9 18.3 18.8Masur 2.9 1.3 5.5 7.1Urad 42.0 35.7 26.6 42.2VEGETABLES -2.7 33.2 31.9 42.2Potatoes -2.2 83.8 17.3 64.6Onion -30.5 74.3 33.9 85.5Milk 7.3 -0.7 4.9 -0.4Fish-Marine 0.0 17.5 -1.6 19.1Mutton 8.4 6.9 7.4 2.3Chillies(dry) 66.7 3.7 53.8 14.2Tea 20.7 -10.2 25.0 3.1FUEL,POWER,LIGHT & 3.6 7.8 2.1 7.3LUBRICANTSCoke 0.0 63.9 0.0 0.0Kerosene 0.0 0.0 0.0 0.0MANUFACTURED PRODUCTS 4.9 3.1 5.2 2.1Atta 24.4 7.3 21.7 6.9SUGAR, KHANDSARI & GUR -0.3 7.5 -5.1 1.2Sugar -0.7 8.7 -5.9 1.2Gur 0.7 10.3 4.3 6.4Salt -9.3 19.0 -5.4 -2.3EDIBLE OILS 10.6 -7.6 11.0 -3.2Vanaspati 8.7 -5.0 6.9 -1.3Mustard Oil 9.3 -9.8 12.6 -2.5Coconut Oil 10.7 -25.4 13.4 -23.0Groundnut Oil 18.0 -4.8 21.3 0.2TEXTILES 1.2 -2.8 1.2 -0.4Cotton Cloth (Mills) -0.6 -1.9 -0.2 -1.0

ANNEXURE - I

Percentage Variation in the Wholesale Price Index number of Selected EssentialCommodities During the Month of December 2006 and December 2005



(Rs per kg.)

Rice Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06

DELHI 13.00 14.00 14.00 14.00 14.00 14.50 14.00 14.00 14.50

MUMBAI 12.25 12.50 12.50 12.50 12.50 12.50 13.00 13.00 13.00

KOLKATA 10.00 10.00 10.00 11.00 11.50 11.00 12.00 11.00 11.00

CHENNAI 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00 12.00

Wheat

DELHI 10.00 10.00 10.00 10.00 11.00 11.00 11.00 12.00 12.00

MUMBAI 13.50 13.50 14.00 14.00 14.00 14.50 15.25 15.75 16.25

KOLKATA NT NT NT NT NT NT NT NT NT

CHENNAI 13.50 13.50 14.00 14.00 15.00 17.00 17.00 17.00 17.00

Atta

DELHI 11.00 11.00 11.00 11.00 12.00 12.00 13.00 13.00 13.00

MUMBAI 14.00 14.00 15.00 15.00 16.00 16.00 16.00 16.00 17.00

KOLKATA 11.50 12.00 12.00 12.00 13.00 14.00 14.00 14.00 14.50

CHENNAI 15.00 15.00 15.00 15.00 16.00 17.00 17.00 18.00 18.00

Gram Dal

DELHI 29.00 31.00 31.00 31.00 35.00 42.00 42.50 40.00 38.00

MUMBAI 30.00 34.00 33.00 35.00 37.00 44.00 45.00 44.00 44.00

KOLKATA 26.00 26.00 32.00 32.00 34.00 40.00 42.00 40.00 40.00

CHENNAI 30.00 34.00 34.00 31.00 35.00 44.00 43.00 41.00 38.00

Tur Dal

DELHI 33.00 34.00 34.00 33.00 34.00 35.00 35.00 34.00 33.00

MUMBAI 32.00 30.00 30.00 33.00 33.00 35.00 34.00 34.00 35.00

KOLKATA 30.00 31.00 31.00 32.00 32.00 32.00 30.00 30.00 32.00

CHENNAI 34.00 34.00 34.00 32.00 34.00 36.00 36.00 35.00 35.00

Sugar

DELHI 22.00 22.00 22.00 21.00 21.00 21.00 21.00 20.00 19.00

MUMBAI 21.50 21.50 21.50 21.50 21.50 21.50 21.00 21.00 19.50

KOLKATA 21.00 22.00 21.50 21.00 21.00 21.00 21.00 20.00 20.00

CHENNAI 20.00 20.00 20.00 19.50 19.00 18.00 18.00 18.00 17.00

Groundnut Oil

DELHI* 85.00 85.00 85.00 85.00 89.00 90.00 90.00 91.00 92.00

MUMBAI 70.00 70.00 68.00 74.00 73.00 73.00 75.00 74.00 74.00

KOLKATA* 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00

CHENNAI 48.00 51.00 50.00 52.00 56.00 59.00 60.00 62.00 63.00

ANNEXURE - II

Month-end Retail Prices of Essential Commodities at Selected Centres

contd....



Mustard Oil

DELHI* 48.00 49.00 49.00 50.00 52.00 52.00 53.00 58.00 58.00

MUMBAI* 78.00 78.00 75.00 74.00 74.00 75.00 75.00 75.00 72.00

KOLKATA 48.00 48.00 50.00 50.00 50.00 50.00 50.00 56.00 56.00

CHENNAI NT NT NT NT NT NT NT NT NT

Vanaspati

DELHI 48.00 49.00 49.00 50.00 55.00 56.00 56.00 56.00 56.00

MUMBAI 58.00 58.00 58.00 58.00 58.00 58.00 58.00 58.00 58.00

KOLKATA 42.00 48.00 48.00 47.00 44.00 52.00 52.00 52.00 55.00

CHENNAI 51.00 52.00 52.00 53.00 55.00 54.00 55.00 56.00 56.00

Tea (Loose)

DELHI 105.00 106.00 108.00 105.00 105.50 107.00 109.00 110.00 109.00

MUMBAI 136.00 136.00 136.00 136.00 136.00 136.00 136.00 136.00 136.00

KOLKATA 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

CHENNAI 210.00 210.00 210.00 210.00 210.00 210.00 210.00 210.00 210.00

Milk@

DELHI 16.00 16.00 16.00 16.00 16.00 17.00 17.00 17.00 17.00

MUMBAI 14.00 15.00 15.00 17.00 17.00 17.00 17.00 17.00 17.00

KOLKATA 23.00 23.00 24.00 25.00 25.00 25.00 25.00 27.00 27.00

CHENNAI** 14.00 14.00 14.00 14.00 14.00 14.00 14.00 14.00 14.00

Potato

DELHI 8.00 9.00 10.00 11.00 12.00 13.00 17.00 9.00 6.00

MUMBAI 11.00 11.00 11.00 12.00 11.00 13.00 13.00 13.50 13.00

KOLKATA 5.50 6.50 7.00 7.00 7.50 8.00 8.00 8.00 6.00

CHENNAI 8.00 8.00 8.00 11.00 9.00 10.00 12.00 9.00 11.00

Onion

DELHI 6.00 6.00 9.00 9.00 9.00 9.00 11.00 9.00 11.00

MUMBAI 4.50 4.00 6.50 7.00 9.00 9.00 9.00 11.00 11.00

KOLKATA 6.00 6.00 7.00 8.00 8.00 10.00 10.00 10.00 10.00

CHENNAI 5.00 5.00 5.00 7.00 6.00 7.00 6.00 6.00 11.00

Salt (Packed)

DELHI 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00

MUMBAI 9.25 9.25 9.25 9.25 9.00 9.00 9.00 9.00 9.00

KOLKATA 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00

CHENNAI 8.50 8.50 8.50 8.50 8.50 8.50 8.50 9.00 9.00

Source : State Civil Supplies Deptt. NR - Not Reported NT - Not Traded.

@ - Rs per litre * - Refined oil ** - Three Roses Brand

contd....


Essential Commodities Act, 1955

ESSENTIAL COMMODITIES ACT, 1955

CHAPTER - IV

4.1 The Essential Commodities Act,1955 was enacted to ensure theeasy availability of essentialcommodities to consumers and toprotect them from exploitation byunscrupulous traders. The Actprovides for the regulationand control of production,distribution and pricing ofcommodities which are declared asessential for maintaining orincreasing supplies or for securingtheir equitable distribution andavailability at fair prices. Exercisingpowers under the Act, variousMinistries/Departments of theCentral Government and under thedelegated powers, the StateGovernments/UT Administrationshave issued Control Ordersfor regulating production,distribution, pricing and otheraspects of trading in respect of thecommodities declared as essential.The enforcement/implementationof the provisions of the EssentialCommodities Act, 1955 lies withthe State Governments and UTAdministrations.

4.2 The commodities declared as

‘essential’ under the Essential

Commodities Act, 1955 are

reviewed from time to time in the

light of changes in the economic

situation and particularly with

regard to their production and

supply in consultation with the

concerned Ministries/Departments

administering these commodities.

Number of such commodities

which stood at 70 in the year 1989

has now been brought down to 7

through such periodic reviews so as

to facilitate free trade and

commerce.

4.3 The State Governments and UT

Administrations being the

enforcement agencies under the

Act, are regularly taking recourse to

the Act for implementation of its

provisions by taking action against

violators. The results of

enforcement of the Essential

Commodities Act, 1955 in the

States/UTs during the year 2006 as

reported up to 31.12.2006 are as

under: -



ESSENTIAL COMMODITIES(AMENDMENT) BILL, 2006

4.4 As reflected in therecommendation of the Group ofCentral Ministers and State ChiefMinisters, it is now universallyaccepted that all unnecessary andredundant restrictions, whichdistort and impede operation ofmarket forces should be removed.Such restrictions neither benefitthe producer nor the consumer. Incase of agricultural commodities,such restrictions/regulations havebeen adversely affecting theinterests of the farmers without anybenefit flowing to the consumers.Further, it has been reiterated inPM’s address to the Nation on24.6.2004 that the NationalCommon Minimum Programmespecifically commits that farmersall over the country will receive fairand remunerative prices and thatthe terms of trade will bemaintained in favour of agriculture.Moreover, the goal of a commonIndian market, particularly foragricultural commodities, andpromotion of agro exports andagro processing industries will bedifficult to achieve unless and until

trade and commerce is freed fromsuch unnecessary anddiscretionary restrictions. Inaddition, regulations under theumbrella of the EssentialCommodities Act, which have nobearing on the essentiality of anitem or the objective of the said Act,require to be made transparent andobjective. It has also been decidedthat only those commoditiesconsidered essential to life, orwhich are in the interest of farmersand the large section of the peoplebelow the poverty line, may beretained as essential commodities.

4.5 Keeping in mind this unambiguousmandate to minimize if not removethe regulatory infrastructure underthe Essential Commodities Act,particularly those pertaining toagricultural commodities, theDepartment, after obtaining theapproval of the Cabinet, haveintroduced the EssentialCommodities (Amendment) Bill, inthe Rajya Sabha on 20.12.2005. TheEssential Commodities(Amendment) Bill, 2006 has nowbeen passed by Rajya Sabha on21.08.2006 and by the Lok Sabhaon 28.11.2006. After receiving the

i) No. of raids conducted - 135025ii) No. of persons arrested - 5421iii) No. of persons prosecuted - 3244iv) No. of persons convicted - 565v) Value of goods confiscated - Rs. 977.21 lakhs



assent of the President on the 24th

December, 2006, thecorresponding Act has beenpublished in the Gazette of India on26th December.2006 as Act No: 54of 2006. The amended provisionwill come into force from 12.2.2007.

4.6 The salient feature of theamendment is that the EC Act willfunction mainly as an umbrellalegislation, provisions of whichshould be invoked in publicinterest by the CentralGovernment in emergencieswhen supplies of essentialcommodities cannot be tackledthrough normal trade channels.The list of essential commoditieshas been pruned down from 15to 7. Those commodities retainedas essential commodities are: (i)drugs; (ii) foodstuffs includingedible oilseeds and oils; (ii i)fertilizer, whether inorganic,organic or mixed, (iv) petroleumand petroleum products; (v) hankyarn made wholly from cotton;(vi) raw jute and jute textile; and(vii) seeds of food-crops andseeds of fruits and vegetables,seeds of cattle fodder, and juteseeds.

4.7 In the context of liberalization ofthe economy and the relativelymore comfortable food situationand in pursuance of therecommendations of a StandingCommittee comprising of some

Union Ministers and State ChiefMinisters which had beenconstituted to review the impact ofWTO on Agriculture, a decision wastaken in February 2002 to removerequirement of licensing of dealersas also restrictions on storage andmovement of certain specifiedessential commodities. Thisdecision was implementedthrough Central Orders dated15.2.2002 and 16.6.2003.

ACTION TAKEN TO CHECKRECENT RISE IN PRICE OFESSENTIAL COMMODITIES

4.8 In the context of recent rise inprices of some essentialcommodities there has been widespread concern from variouscorners for taking immediate stepsto mitigate the rising trend ofprices of essential commodities.Representations were receivedfrom a number of States forrestoration of powers under theEssential Commodities Act, 1955 forundertaking dehoardingoperations in view of theassumption that there isspeculative holding back of stocksparticularly of wheat and pulses inanticipation of further rise in prices.Central Govt. took a number ofsteps to control the price rise inessential commodities by trying toaugment supply throughreduction of duty level and import



of wheat on Govt. account tosupport the Targeted PublicDistribution System ( TPDS).Similarly, the import duty level ofpulses has also been reduced tozero. These actions have physicallyimproved the supply position. Thesituation was further reviewed bythe Govt. and it has finally beendecided with the approval of theCabinet to keep in abeyance someprovisions in the central orderdated 15.2.2002 for a period of sixmonths with respect to wheat andpulses (whole and split), so as totackle the present crisis onavailability and prices of thesecommodities. Accordingly, theCentral Govt. has issued a CentralOrder No. 1373(E) dated 29.8.2006by virtue of which the words orexpressions made in respect ofpurchase, movement, sale, supply,distribution or storage for sale inthe “Removal of (Licensingrequirements, Stock limits andMovement Restrictions) onSpecified Foodstuffs Order, 2002”notified on 15.02.2002 have beenkept in abeyance for commoditiesnamely wheat and pulses for aperiod of six months from the dateof issue of the order or furtherorder, which ever is earlier. Thisorder however would not affect thetransport, distribution or disposalof wheat and pulses (whole or split)to places outside the State, nor shall

it be applicable to import of thesecommodities. These orders werevalid upto six months, but furtherextended upto 31.8.2007, videcentral government notificationdated 27.2.2007.

4.9 In pursuance to the above Orderdated 29.8.2006, all StateGovernments/UTs were requestedto implement this order by issuingeither a fresh control order orreviving the old control order forfixing stock limits for variouscategories of dealers such asmillers/producers, wholesalers andretailers in respect of wheat andpulses. States/UTs have also beenempowered to take effective actionexercising the powers vested with/ delegated to them under theEssential Commodities Act, 1955 tobring out hoarded stock of theseitems in the open market to ensuretheir availability to the commonpeople at reasonable prices.Exercising these powers, someState Governments have fixedstock holding limits for these twocommodities.

THE PREVENTION OFBLACKMARKETING ANDMAINTENENCE OF SUPPLIES OFESSENTIAL COMMODITIES ACT,1980

4.10 The Prevention of Blackmarketingand Maintenance of Supplies of



Essential Commodities Act, 1980 isbeing implemented by the StateG o v e r n m e n t s / D i s t t .Administrations for the preventionof unethical trade practices likehoarding and Blackmarketing etc.The Act empowers the Central andState Governments to detainpersons whose activities are foundto be prejudicial to themaintenance of supplies ofcommodities essential to thecommunity. Detentions are beingmade by the States/UTs inselective cases to preventhoarding and Blackmarketing ofthe essential commodities.Detention orders were made in161 cases by the StateGovernments during the period

from 1.1.2006 to 31.12.2006, as perdetails given below:

Gujarat - 85Tamil Nadu - 74Maharashtra - 1Orissa - 1Total 161

4.11 The Central Government and theState Governments also have thepower to modify or revoke thedetention orders. Therepresentations made by or onbehalf of the persons ordered fordetention are considered anddecided by the Central Government.129 such representations wereconsidered and decided by theCentral Government during theperiod from 1.1.2006 to 31.12.2006.


Consumer Protection

CONSUMER PROTECTION

CHAPTER - V

5.1 Consumer movement is a socio-economic movement which seeksto protect the rights of consumersin relation to the goods purchasedand services availed. Governmenthas been according a very highpriority to the programmes ofconsumer protection. TheDepartment of Consumer Affairsbeing a nodal Department in thefield of consumer protection hasinitiated a number of steps topromote a responsible andresponsive consumer movement inthe country. Such measures includethe use of multi-media forpromoting consumer awarenessand encouraging consumers'involvement through efforts ofGovernment and non-governmental organizations andothers.

5.2 The main objectives of theconsumer protection programmeare:-

(i) To create suitableadministrative and legalmechanisms which would bewithin the easy reach ofconsumers.

(ii) To involve and motivatevarious sections of societyincluding consumerorganizations, women andyouth to participate in theprogramme.

(iii) To generate awarenessamong consumers abouttheir rights andresponsibilities, motivatethem to assert their rightsand not to compromise onquality and standards ofgoods and services and seekredressal in consumer courts,wherever required.

THE CONSUMER PROTECTIONACT, 1986

5.3 The Consumer Protection Act, 1986(68 of 1986) is a milestone in thehistory of socio-economiclegislation in the country. It is oneof the most progressive,comprehensive and unique piecesof legislation enacted for betterprotecting the interest ofconsumers by establishing fora forsettlement of consumer disputes.All the provisions of the ConsumerProtection Act, 1986 came into



force with effect from 1.7.1987throughout the country except inthe State of Jammu & Kashmir. TheState of Jammu & Kashmir hasenacted its own legislation in thisfield.

5.4 Under the Act, a three-tier quasi-judicial consumer disputeredressal machinery wasestablished at the National, Stateand District levels. These agenciesare popularly known as ConsumerFora or consumer courts. Thesefora are mandated to providesimple, speedy and inexpensiveredressal of the consumers'grievances.

5.5 The National Conference of thePresidents of National Commission,State Commissions and theSecretaries in-charge of ConsumerAffairs in the States/UTs was

convened on 29th and 30th April,2006 in New Delhi to deliberate onvarious issues/ways forimprovement in the functioning ofthe Consumer Fora.

5.6 With the amendment of theConsumer Protection Rules, 1987 inFebruary, 2005, a provision hasbeen made in the rule whichenables appointment of upto 9members in the NationalCommission.

5.7 The Central Consumer ProtectionCouncil (CCPC), which is arecommendatory body under theConsumer Protection Act, 1986 toprotect & promote the rights of theConsumers, has been restructuredand its size has been reduced from150 to 35 for its effectivefunctioning and easy convening ofits meeting.

Landmark judgment on Consumer Protection: Educational Institutions

The National Consumer Disputes Redressal Commission in its Order dated7.7.2006 in the case of M.S. Parul v/s Maharishi Dayanand University, Rohtak,held that a student getting admission in an institution by paying fes is aconsumer and any disputes about the validity of such admission would becovered under the Consumer Protection Act. In another case {Deputy Registrar(Colleges) v/s Ruchika Jain & others] the National Commission had held that ingiving admissions to students in a school/college/institutional/university, if thereis any dispute with regard to the validity of such admission or illegality,irregularity committed by such institutions in giving admissions and recoveringof fees, such disputes would be covered under the Consumer Protection Act,1986.


Consumer Protection

'CONFONET' Project onComputerization And ComputerNetworking of Consumer Fora.

5.8 A scheme for "Computerization andComputer Networking of ConsumerFora in the country" amounting to Rs.48.64 crores has been launchedthrough National Informatics Centre(NIC) as a turnkey project to beimplemented in three phases inthree years from 2004-2005. Theobjective of this scheme is to provideI.T. solutions in order to achieve e-governance, transparency, efficiencyof consumer fora and facilitatedisposal of cases in a time boundmanner. Under the scheme, NIC is toprovide the necessary hardware &system softwares, to developapplication software and to providemaintenance as well as necessarytraining to the officials of theConsumer Fora. The scheme will helpin systematizing processing ofvarious types of cases, data &generation of reports and alsofacilitate better administrativecontrol.

5.9 This scheme would enableconsumers to file their complaintsonline and to see the status of theircases on the website. Under thescheme, all consumer relatedwebsites i.e. those of NationalCommission, State Commissionsand District Fora, the Departmentof Consumer Affairs at the Centre

as well those of States/UTs, CORECentre, National ConsumerHelpline etc. will be interlinked sothat consumers can access anyconsumer related information fromany of these websites.

Current Status:

5.10 Application Software: On the basisof detailed system study, NICpresented a prototype of casemonitoring system to bestandardized across the country tothe Core Group. The requirementspecifications were frozen througha series of Core Group meetingsand the application software hasbeen developed by NIC. A uniformapplication is being implementedat all District Fora in various States.

5.11 Hardware and Software supplies:NIC worked to finalize theminimum hardware and systemsoftware requirements at differentlocations viz NCDRC, 35 StateCommissions and 607 District Foraand arranged for supply of requiredhardware to each of these locationsthrough NIC empanelled vendors.At present computer systems andsystem software have beendelivered to 33 State Commissionsand 533 District Fora. The Stateshave signed an MOU with CentralGovernment and NIC to undertakeall necessary steps for successfulimplementation of the project.



Landmark judgment on Consumer Protection - Medical Services

The National Consumer Disputes Redressal Commission in its Order dated 7.7.2006in Prabhat Kumar Mukherjee v/s Ruby General Hospitals & Others has held thatDoctors / Hospitals cannot insist for money or fee at the time of admission whenthe death is knocking at the door of the patient. The Commission further heldthat the treatment of a patient cannot be stopped for non-payment of moneyonce he has been admitted and the treatment started. Accordingly, theCommission directed the Respondent to pay Rs. 10 lakhs to the dependents ofthe diseased patient who was an accident victim was denied admission on theground that he could not pay the fee for admission though his physical conditionwas such that it required immediate medical attention.

5.12 Working of consumer fora is alsoreviewed by the senior officersduring their visits to State/UTs.Similarly, the President, NationalCommission also visits a number ofState/UTs to monitor and discussfunctioning of Consumer Fora inState/UTs.

5.13 Parliamentary Committee on Food,Civil Supplies and PublicDistribution also reviewed thefunctioning of consumer fora andexpressed concern over thedisposal of cases within time-norms, pendency of cases andvacancies, non-functionalconsumer fora etc. in its variousreports. The extracts of the reportswere sent to Chief Secretaries of theStates/UTs and the NationalCommission for taking suitableaction at their end.

5.14 Direct rapport was furtherstrengthened with the State

Secretaries and Presidents of StateCommissions enabling theDepartment to take consumermovement forward. The progressis followed up with periodicalprogress reports and furtherdiscussions, either in Delhi or theconcerned State. Even far flungStates/UTs like Jharkhand,Karnataka, Mizoram, Tamil NaduUttar Pradesh and West Bengalhave been visited by senior officersof the Department.

5.15 With a view to implementthe recommendations of theParliamentary Standing Committeeand to dispose the cases with instipulated time norms, the States/UTs have been requested to set upbenches of their State Commissionswhere the pendency of cases areheavy. (National Commission hasbeen earlier recommended 46benches for 15 State Commissions).


Consumer Protection

5.16 As per the repor ts madeavailable by the NationalCommission, on 21.12.2006, thetotal number of cases filed anddisposed of in the NationalCommission, State Commissionsand District Fora, since inception,are given below and theStatewise details are given inAnnexure-A.

5.17 An additional office space of 2296square feet has been allotted bythe Directorate of Estates toNational Commission in the eighth

floor of Janpath Bhawan inSeptember, 2005 to facilitatesetting of the fourth bench of theCommission.

5.18 Eleven cities were notified asplaces other than New Delhiwhere National Commission couldhold its Circuit Benches vide S.O.No. 974(E) dated 31 August 2004.NCDRC held its Circuit Bench inBangalore in January, 2006 and itsnext Circuit Bench is scheduled tobe held in Chennai in January-February, 2007.

Sl. No. Consumer Forum Cases filed Disposed Pending %

1 National Commission 45907 33743 8564 81.34

2 State Commissions 386778 277636 109142 71.78

3 District Forums 2288814 2066372 222442 90.28

TOTAL 2721499 2360366 340148 87.50

Landmark Judgment on Consumer Protection - Insurance (i)

The National Consumer Disputes Redressal Commission in its Order dated3.10.2006 in case of Praveen Damani v/s Oriental Insurance Company Ltd. hasheld that claim cannot be repudiated to a Policy holder in a malafide mannerciting a clause in the Insurance Policy as most people taking insurance Policy areunaware of the symptoms of a disease which may manifest itself later in his lifecausing him to suffer.

(Para 5.16)



Hon'ble Minister Shri Sharad Pawar, Shri Y.S.Bhave, Secretary (Deptt. Of Consumer Affairs),

and Hon'ble Chief Justice of India Shri K.G.Balakrishnan on the occasion of "World

Consumer Rights Day" organized by NationalConsumer Disputes Redressal Commission in New

Delhi on 15th March, 2007.

Picture on right also shows President, NCDRC,Hon’ble Justice (Retd.) M.B. Shah on the dias.

President NCDRC, Justice (Retd.) M.B. Shahaddressing a Seminar of Presidents,

State Consumer Disputes Redressal Commissionand Secretaries In-Charge,

Consumer Affairs in the States held in April 2006.

A view of the audience in the seminarorganized by NCDRC


Consumer Protection

Integrated Project on ConsumerProtection:-

5.19 The scheme of Integrated Project onConsumer Protection envisagesprovision of financial assistance toStates/UTs to supplement theirefforts in strengthening theinfrastructure of the consumer foraby filling up the critical gaps ininfrastructure so that each forum isprovided with the minimumfacilities. To be eligible for assistancethe State/UTs have to fully utilize theone time grant of 1995 released forthe same purpose and furnishUtilization Certificates thereof.

5.20 A Committee has been constitutedto consider such proposals fromthe eligible States/UTs under thescheme of Integrated Project onConsumer Protection. Based on therecommendation of thecommittee, an amount of Rs.20.34crores have been released to 9eligible States till 31.12.2006. TheStates are Andhra Pradesh, MadhyaPradesh, Himachal Pradesh,

Arunachal Pradesh, Sikkim, Tripura,Kerala, Mizoram and Chhattisgarh.

Training:-

5.21 Four training programmes forPresidents and Members of DistrictFora and Members of StateCommissions were organizedduring 2005-06. Another fourtraining programmes are to bescheduled during this financial year2006-07 through IIPA. With bettercoordination between theDepartment, NCDRC, States andIIPA, each course is now betterattended.

5.22 A new course has also beenintroduced for the State/Districtlevel officers dealing with ConsumerProtection. This course is being heldat Bureau of Indian StandardsTraining Institute at NOIDA.

5.23 Senior officers of the Departmentalso interact with the participantsof these training programmes andalso make suggestions forimprovement, wherever necessary.

Landmark Judgment on Consumer Protection – Insurance (ii)

The National Consumer Disputes Redressal Commission in its Order dated28.11.2006 in case of LIC of India v/s Ram Singh Tanwar held that if the terms ofthe Insurance Policy are vague it should be interpreted for the benefit of theinsured as it would serve the purpose and object of getting insurance coverage.In any case where there is any ambiguity or the terms of the Policy are capable ofmore than one interpretation, the interest of justice would be served ifinterpretation serves the benefit of the Policy Holder.



ANNEXURE-A

Statement of cases filed/disposed of/pending in the National Commission

and State Commissions

Sl. Name of State Cases filed Cases Cases % of As OnNo. National since inception disposed of Pending Disposal

Commission 45907 37343 8564 81.34 31.11.061 Andhra Pradesh 19382 16692 2700 86.08 31.10.06

2 A & N Islands 57 56 1 98.25 31.3.06

3 Arunachal Pradesh 38 22 16 57.89 31.10.06

4 Assam 2070 1076 994 51.74 30.9.06

5 Bihar 11393 7490 3903 65.74 30.9.06

6 Chandigarh 6129 5974 155 97.47 310.12.06

7 Chattisgarh 3569 3107 462 87.06 31.10.06

8 D & N Haveli/ 16 16 0 100.00 30.11.06

9 Daman & Diu

10 Delhi 25532 23467 2065 91.91 30.11.06

11 Goa 1790 1604 186 89.61 30.11.06

12 Gujrat 24178 20477 3701 84.69 31.8.06

13 Haryana 31161 17830 13321 57.24 30.11.06

14 Himachal Pradesh 4890 4268 622 87.28 31.10.06

15 Jammu & Kashmir 5020 4339 681 87.28 30.9.06

16 Jharkhand 607 316 291 52.06 31.10.06

17 Karnataka 21278 20132 1146 94.61 30.11.06

18 Kerala 20481 16407 4074 80.11 30.11.06

19 Lakshadweep 12 12 0 100.00 31.12.06

20 Madhya Pradesh 24560 22216 2344 90.46 31.10.06

21 Maharashtra 34988 19819 15169 56.73 30.10.06

22 Manipur 47 20 27 42.55 30.6.06

23 Meghalaya 145 125 20 86.21 30.6.06

24 Mizoram 110 927 18 93.64 30.10.06

25 Nagaland 160 128 32 80.00 31.9.06

26 Orissa 15433 8509 6922 55.14 30.11.06

27 Puducherry 796 775 21 97.3 31.12.06

28 Punjab 17551 12767 4884 72.33 31.11.06

29 Rajasthan 35994 28244 7750 78.47 30.11.06

30 Sikkim 30 26 4 86.67 31.10.06

31 Tamilnadu 18200 15440 2760 84.84 30.10.06

32 Tripura 948 881 67 92.93 31.10.06

33 Uttar Pradesh 48129 14788 33341 30.73 30.11.06

34 Uttaranchal 2630 2154 476 81.90 31.10.06

35 West Bengal 9693 8955 738 92.39 31.10.06

TOTAL 386778 277636 109142 71.78


Consumer Protection

District Forums

Sl. Name of State Cases filed Cases Cases % of As On

No. since inception disposed of Pending Disposal

1 Andhra Pradesh 158133 153808 4325 97.26 31.1006

2 A & N Islands 330 301 29 91.21 31.3.06

3 Arunachal Pradesh 263 232 31 88.21 31.10.06

4 Assam 10094 9152 942 90.67 30.6.06

5 Bihar 62127 51700 10427 83.22 31.10.06

6 Chandigarh 24613 24103 510 97.93 30.11.06

7 Chattisgarh 23297 21107 2190 90.60 30.9.06

8 D & N Haveli/ 0 0 0 100% 30.9.06

9 Daman &Diu 125 104 21 83.20 30.11.06

10 Delhi 167755 156774 10981 93.36 30.11.06

11 Goa 5253 4372 881 83.23 30.11.06

12 Gujrat 114522 96187 18335 83.99 31.8.06

13 Haryana 152147 134486 18198 88.38 30.11.06

14 Himachal Pradesh 43355 40330 3025 93.04 31.10.06

15 Jammu & Kashmir 19239 16749 2490 87.06 30.6.06

16 Jharkhand 4001 1586 2415 39.64 31.10.06

17 Karnataka 96514 93532 2982 96.91 30.11.06

18 Kerala 149511 141424 8087 94.57 31.12.06

19 Lakshadweep 52 52 0 100.00 31.10.06

20 Madhya Pradesh 106915 100197 6718 93.72 31.10.06

21 Maharashtra 176364 160791 15573 91.17 31.10.06

22 Manipur 916 881 35 96.18 30.6.06

23 Meghalaya 456 390 66 86.00 30.9.06

24 Mizoram 2065 2005 60 97.09 30.9.06

25 Nagaland 246 205 41 83.33 30.9.06

26 Orissa 65423 61654 3769 94.24 31.10.06

27 Puducherry 2354 2289 65 97.23 31.12.06

28 Punjab 98789 93298 5491 94.44 30.11.06

29 Rajasthan 230916 217669 13247 94.26 30.11.06

30 Sikkim 191 183 8 95.81 31.10.06

31 Tamilnadu 80403 73298 7105 91.32 31.10.06

32 Tripura 1729 1487 242 86.00 30.6.06

33 Uttar Pradesh 406003 326894 79109 80.52 30.11.06

34 Uttaranchal 27553 25356 2197 92.03 31.10.06

35 West Bengal 58729 55367 3362 94.28 31.10.06

TOTAL 2288814 2066372 222442 90.28



Consumer Welfare Fund

5.24 In 1991, the Central Governmentamended the Central Excise andSalt Act, 1944 to create aConsumer Welfare Fund. The Fundhas been set up by theDepartment of Revenue and isbeing operated by theDepartment of Consumer Affairs.The money, which is notrefundable to manufacturers, iscredited to the Fund. The mainobjective of the fund is to providefinancial assistance to promoteand protect the welfare of theconsumers, generate consumerawareness and strengthenconsumer movement in thecountry, particularly in rural areas.So far, a sum of about Rs.134.36crores has accrued to the fund andan expenditure of Rs.38.05 croreshas been incurred.

Setting up of Consumer Clubs inSchools / Colleges

5.25 This scheme was launched in 2002,according to which a consumerclub would be set up in eachMiddle/High/Higher SecondarySchool/College affiliated to agovernment recognized Board/University. A grant of Rs.10,000/-per consumer club is admissibleunder this scheme. This schemehas been decentralized andtransferred to the State/UTGovernments with effect from 1st

April 2004. So far, 7246 consumerclubs have been sanctioned in theStates of Andhra Pradesh, Tripura,Maharashtra, Gujarat, Orissa,Rajasthan, Karnataka, Tamilnadu,Jammu & Kashmir, Haryana, NCT ofDelhi (through VCOs), Punjab,Sikkim, Lakshadweep, HimachalPradesh and Arunachal Pradesh.The States of Andhra Pradesh,Karnataka, Tamilnadu andRajasthan have set up consumerclubs in the second phase also byavailing assistance from thisDepartment.

Scheme for promotinginvolvement of ResearchInstitutions/Universities/Colleges etc, in ConsumerProtection and ConsumerWelfare

5.26 This scheme has been launched in2004 with a view to sponsorresearch and evaluation studies inthe field of consumer welfare toprovide solution to the practicalproblems being faced by theconsumers, to sponsor seminars/workshops/conferences on theconsumer related topics, and tohave necessary inputs for theformulation of policy/programme/scheme for protection and welfareof the consumers. The IndianInstitute of Public Administration,New Delhi, has been identified asthe nodal organization to


Consumer Protection

administer the scheme. A totalgrant of Rs. 180.13 lakhs have beensanctioned to 146 applicantorganizations and institutions sofar.

National Consumer Helpline

5.27 The Department has sanctioneda National Consumer Helplineproject in coordination withDelhi University, Department ofCommerce, at an approved costof Rs.3.12 crores. Consumersfrom all over the country can dialtoll-free number 1800-11-4000and seek telephonic counselingfor problems that they face asconsumers. The Helpline intends

to deal with problems related totelecom, courier, banking,insurance, financial services etc.The Helpline has been formallylaunched on 15th March 2005,i.e., World Consumer Rights Day.On an average 4000 calls arereceived every month by theNCH from more that 30 Statesand UTs.

5.28 From the monthly reports receivedin the Department it is seen that34,210 calls have been received inthe Helpline from April 2006 to 31stDecember, 2006, from 28 States/UTs across the country. So far, a sumof Rs. 156.39 lakhs has beenreleased for this project.

Shri Yashwant Bhave Secretary (Deptt. Of Consumer Affairs) lighting the lamp onNational Consumer Day, 2006



Discussion Session onNational Consumer Day, 2006

Shri Yashwant Bhave Secretary(Deptt. Of Consumer Affairs) and

Shri Saroj K. Poddar,President FICCI on

National Consumer Day, 2006

Smt. Rinchen Tempo, Joint Secretary(Deptt. Of Consumer Affairs) & representatives

of FICCI signing an MoU.

Shri Yashwant Bhave Secretary (Deptt. OfConsumer Affairs) and Shri N. Mishra, Chairman

TRAI releasing the Calendar on NationalConsumer Day, 2006


Consumer Protection

CORE Centre

5.29 A Consumer Online Research andEmpowerment (CORE) Centre hasbeen set up in collaboration withConsumer Coordination Council(CCC) through signing of an MoU, ata total approved cost of Rs.3.50crores. The CORE Centre is intendedto provide the most scientific andeffective system of collection anddissemination of consumer relatedinformation to generate consumerawareness and empowerment of all

sections of the society. An amountof Rs.129.80 lakhs have beenreleased so far, in two installments.

Highlights of the Core Centre:

1) Over 51 Lac hits received from 50countries across the globe towww.core.nic.in till date

2) Over 17 Lac Requests

3) Over 3.7 Lac visits

4) 15400 Subscribers of CORE CentreE-Newsletter

5) Over 20 Thousand Complaintsreceived from 15th March 2005 to31st December 2006 from all partsof India as also from abroad

6) Total 2920 complaints (14% of allcomplaints handled) were resolvedby CORE Centre from 15th March2005 to 31st December 2006

7) For December 2006 151,233 hits,141,334 Pages viewed, 30,039 visitsrespectively

8) Top 11 most popular SearchEngines are able to identify keywords relating to CORE Centre

Nukkad Natak Performed by one ofthe team of College Students on

National Consumer Day 2006 at IIPA

Success Stories of CORE Centre.

Shri Dharam Prakash, 13/A, Opposite Old Post Office, S.T. Nagar, Hyderabad (A.P.)tried to withdraw Rs.4000 through his ATM Card of Standard Chartered Bank butcould get only Rs.1000. He complained to bank but to no avail, as the bank insistedthat their system was beyond reproach. They indirectly questioned the veracityof the complainant's statement. Shri Dharam Prakash filed a complaint with COREon November 10, 2006. The issue was taken up with bank authorities, whoconceded the demand of the complainant and made good the shortfall andtransaction money of Rs.3000 was credited in the account of complainant onJanuary 4, 2007. All this was done by CORE at no cost to the aggrieved party.



Online Registration & Redressalof Complaints is one of themajor day-to-day activities ofthe CORE Centre.

The following procedure is followed indealing with Complaints registered onthe website directly and received byemail, as also written complaints.

Stage # 1: Acknowledgement is sentimmediately to the Complainant and thecomplaints are sorted according to sectors,such as services, white goods etc. and sentto designate Complaint Managers.

Stage # 2: If the Grievance/Complaint isstill not redressed, a final letter is writtento the Opposite Party, mentioning that

their name will be included in a List titled"Beware of such Organizations",maintained by the CORE Centre andposted on the Website. This is now beingchanged with the introduction of newsystem and should come into operationby February 07.

Figure above shows the comparativepicture of complaints received by CORECentre from 15th March 2005 to 31stDecember 2006. As will be seen therefrom, though there has been a steadyincrease in the number of complaintsreceived from 15th March 2005 onwards,there are small variations in the numbersin between the months. This reflects theimpact of advertisements being issuedby this Department.

Month Wise Distribution of Complaints (From 15th March’05 to 31st Dec’06

Comparative analysis of the complaints received from 15th March 2005 to 31st Dec 2006.


Consumer Protection


Wg. Comdr. S. Tandon, CO Tettra School, OMQ150/2, New Project, Air Force Station,Gorakhpur (U.P.) was highly perturbed as M/s Samsung India Electronics Ltd wasnot making delivery of Printer even after full payment was made to the Company.He was running from pillar to post to get the delivery of the equipment which heneeded badly. Numerous complaints were made by the complainant to theSamsung company office of Delhi & Lucknow and even through telephones & emails.There was no response. He then heard about CORE Centre and its activities andfiled his complaint on August 27, 2006. The CORE Centre took the matter with theCompany and the complainant received the Printer immediately. The complainanthappily acknowledged that his problem has been solved and expressed his gratitudeto the CORE Centre through a letter dated November 8, 2006.

Subject wise Break-up of Complaints Received From

15th March 2005 to 31st Dec 2006

Total Complaints Received = 20,919


Shri Sanjay Dewan, EC-17, Maya Enclave, New Delhi, applied for a plot and depositedRs.7,50,000 on April 19, 2006. Even after surrendering the registration the Real EstateCompany, New Delhi did not return his money. When contacted company officialsassured him refund of amount and he was asked to contact persons from onetable to another. Ultimately, the Complainant was advised to approach the CORECentre and register his complaint on December 12, 2006. Mediation process startedbetween CORE and the company, because of which complainant received hisdeposited amount back, without having to go to a Consumer Forum. Thecomplainant sent letter of thanks to CORE Centre on January 6, 2007.

Figure above shows the subject wise breakup of the total complaints receivedfrom 15th March, 2005 to 31st December, 2006



Comparative Products TestingLaboratory

5.30 VOICE Society, New Delhi, has beensanctioned a project forComparative Testing of ConsumerProducts with the objective ofensuring product quality andsafety. The Society has executed anMoU with the Department. Thetotal approved cost of the projectis Rs.2.25 crores, initially for a periodof two years. A sum of Rs.175.30lakhs have been released so far, inthree installments. Under thisproject 10 products and 2 serviceshave been tested during the firstyear and the reports have beenpublished. Testing of fourteenproducts of two services for secondyear is under process.

Creation of Consumer WelfareFunds in States and UnionTerritories

5.31 In order to promote consumermovement throughout thecountry, the State Governmentsand Union TerritoryAdministrations have beenimpressed upon to create theirown Consumer Welfare Fund. Forstrengthening financial support,the ratio of amount of seed moneyto be provided to the States/UTshave been increased from 1:10 to50:50 (Centre:State). This ratio hasfurther been enhanced to 90:10 in

the case of 13 special categoryStates as per decision taken in the39th CWF Standing Committeemeeting. So far, the State levelConsumer Welfare Fund have beencreated in the States of AndhraPradesh, West Bengal, Gujarat,Rajasthan, Orissa, Karnataka,Tripura, Sikkim, Maharashtra,Punjab, Uttar Pradesh, Jammu &Kashmir, Arunachal Pradesh, Goa,Haryana, Mizoram, Uttaranchal,Chhattisgarh and Tamilnadu. Anamount of Rs. 75 lakhs have beensanctioned till October 2006,during 2006-07.

DEVELOPMENTS DURING THEYEAR

5.32 As part of new initiatives toenhance the levels and reach ofconsumer protection and welfareactivities, the Department hasconsidered and approved a projectby FICCI, New Delhi titled `FICCIAlliance for Consumer Care'. Theobjective of the venture is tofacilitate expeditious settlement ofconsumer grievances concerningmanufactured items and services,provided by different public andprivate utilities and industries.

CONSUMER GRIEVANCEREDRESSAL CELL

5.33 The Department has beenreceiving a large number of


Consumer Protection

complaints from consumersrelating to shortfall in the supplies/expectations, deficiency in serviceswhich covers complaints/grievances regarding (i) supply ofdefective household appliancesincluding automobiles; (ii) T.V. sets,poor construction materials; (iii)Non-refund of fixed depositamounts; (iv) non-realization ofdividend from companies. TheDepartment, therefore, decided on13.02.2002 to set up ConsumerGrievance Redressal(CGRC) Cell forproviding services for Redressal ofthe complaints of the Consumers.

5.34 The Cell had received a largenumber of complaints covering allover the country. All thesecomplaints are forwarded to theConsumer Coordination Council forRedressal. The Cell itself isattending to the complaints of theimportant nature with theconcerned manufacturers/authorities/Departments for theirRedressal at the earliest. The Celland Consumer CoordinationCouncil forward the complaints tothe concerned authorities to gettheir Redressal. However, theConsumer or the concernedorganizations/firms have theoption to go to the District Forum,State Commission or the NationalConsumer Disputes RedressalCommission as the case may be, toget Redressal as per law.

National CooperativeConsumers' Federation of IndiaLtd. (NCCF)

5.35 The NCCF is the National levelConsumer Cooperativeorganization in the country. TheNCCF was set up on 16th October1965 and is administered under theMulti State Cooperative SocietiesAct. The affairs of NCCF aremanaged by a Board of Directors,comprising both elected andnominated members as per theprovisions of the Bye-laws of theNCCF.

5.36 The commercial operations of theNCCF are handled at theheadquarter level at New Delhi andits 34 Branches/sub-brancheslocated in the State Capitals andother important centers in thecountry. The NCCF runs one PulsesProcessing Unit at Bhiwani(Haryana).

5.37 The total paid up share capital ofthe NCCF as on 31.03.2006 is Rs.13.79 crores. This amount has beencontributed by the members, out ofwhich the contribution of theGovernment of India is Rs. 10.74crores only. The Govt. of India nowholds about 78% of the total paidup share capital in the NCCF.

5.38 The NCCF provides linkagebetween the producers/manufacturers and thewholesalers/retailers and the



consumers. It is primarily engagedin the wholesale distributive trade.The NCCF is involved inprocurement and marketing ofvarious consumer goods like pulsesof different varieties, food grains,textiles, tea and othermanufactured items in bulk. It hasalso made arrangements for supplyof items like different varieties ofpulses, iodized salt, tea in consumerpacks, toilet soap, detergentpowder etc. all over the country.The Government has entrusteddistribution of coal to tiny and smallconsumers in the country throughthe selected Branches of the NCCF.

5.39 The details of the turnover of theNCCF as also the profitabilityduring the last three years are asunder:

5.40 The NCCF launched a Nation-wideScheme named "Sarvapriya" fordistribution of selected items ofconsumer goods to benefit thecommon people particularly thosebelonging to the lower incomegroups and living in the rural andurban areas. NCCF also providestechnical guidance and assistancein different fields of Managementto the consumer cooperatives with

a view to improve their commercialoperations and managerial skillsthrough its Consultancy &Promotional Cell (CPC), which hasnow been re-named as Research &Development Wing (R&D Wing) ofthe NCCF.

SUPER BAZAR - DELHI

5.41 The Cooperative Store Ltd.,popularly known as Super Bazaar,was registered under the Multi-State Cooperative Societies (MSCS)Act 1984 with its area of operationbeing the entire country. The SuperBazaar had a membership of 40020.The total paid up share capital, ason 31.03.2006 was Rs. 159.03 lakhsof which Govt. of India'scontribution was Rs. 116.49 lakhsi.e. 70%. The Super Bazaar had beenredeeming the share capitalcontribution of the GOI andrepaying the installments of loan asper the agreed term till 1995-96.Super Bazaar, started incurringlosses from 1996-97 onward and insubsequent years loss continued tomount with reducing turnover. TheCentral Registrar of CooperativeSocieties issued order for thewinding up of Super Bazar on 5th

(Para 5.39) (Rs. In crores)

Category 2003-04 2004-05 2005-06

(Audited) (Audited) (Audited)

Sales 629.81 695.12 638.15

Profit before tax 10.07 11.42 6.32

Profit after tax 7.31 8.02 4.12


Consumer Protection

July, 2002 and the Liquidator wasappointed on 25.7.2002. TheEmployees Union filed a number ofwrit petitions in Delhi High Courtchallenging the winding up ofSuper Bazar. These petitions weredismissed on 19.03.2004.

5.42 The Super Bazaar Dalit KarmachariSangh filed Special Leave PetitionNo.8398/2005 in the SupremeCourt. The Supreme Court in itsorder-dated 28.2.2006 hadobserved that professionalmanagement of the Super Bazaaris absolutely essential. With a viewto explore the possibility of havingan arrangement under which themanagement of the Super Bazaarmay be entrusted to a body ofprofessionals, the Supreme Courtconstituted a Committee ofGovernment Officials to considerall aspects of Super Bazaar. The saidcommittee submitted its report on29.3.2006 in the Supreme Court ofIndia. The report of the Committeesubmitted to the Supreme Courtdoes not involve any financialassistance from the Governmentfor revival of Super Bazaar.

5.43 On 5.5.2006, the Supreme Courtdirected the Committee to issue anadvertisement in two Nationaldailies - one in English and theother in Hindi within two weeksfrom 5.5.2006. In compliance of theCourt order, a notice for invitingbids to start. Super Bazaar afresh

was published on 19.5.2006 in twoNational dailies namely, The Timesof India (English) and Hindustan(Hindi) in all editions. M/s RelianceIndustries Ltd. and Indian LabourCooperative Society with IndianPotash Ltd. had submitted theirbids. These bids were opened bythe Committee on 8.6.2006 in thepresence of the representatives ofM/s Reliance Industries Ltd andIndian Potash Ltd and ChairmanIndian Labour Cooperative Society.The Evaluation Report of theCommittee was submitted in theSupreme Court on 4.7.2006. Afterconsidering the Evaluation Reportof the Committee, the SupremeCourt on 26.7.2006 inter-aliaobserved that "Counsel for theparties state that they will considerthe provisions of the Act and putin writing their proposals regardingthe manner which the object canbe achieved, either by amendingthe bye-laws or by appropriatedirections issued by the Registrar ofCooperative Societies under theAct, or in any other manner".

5.44 In the hearing held on 20.2.2007,the Supreme Court has directedthe Government of India to file itsresponse within 10 days statingwhether the Government isinclined to consider theamendment of the Act. If it isinclined to consider amendment ofthe Act the Supreme Court will give



sufficient time to the Union of Indiato do so but, in case, theGovernment is not inclined toamend the Act then the SupremeCourt proceed with the matter. Inthis regard, the Central Registrar of

Cooperative Societies, Departmentof Agriculture and Cooperation, isfiling an affidavit in the SupremeCourt. The next date of hearing ofthe case in the Supreme Court is15.3.2007.


Publicity Campaign for Creating Consumer Awareness

PUBLICITY CAMPAIGN FOR CREATINGCONSUMER AWARENESS

CHAPTER - VI

6.1 It is now universally accepted thatthe consumer has a right to beprovided with all relevantinformation for him to avoidexploitation and to make aconsidered choice in availing ofproducts and services from themarket. The guidelines adopted bythe United Nations GeneralAssembly in 1985 for consumerprotection (as expanded in 1999)lays down that Government shoulddevelop or maintain a strongconsumer protection policy takinginto account the guidelines laiddown by the UN as well as relevantinternational agreements with theobjective of inter alia facilitatingaccess of consumers to adequateinformation to enable them tomake informed choices andconsumer education, includingeducation on the environmental,social and economic impacts ofconsumer choice.

6.2 Though the consumer movement isslowly gaining ground in our country,it is still in its infancy as the successof consumer movement mainlydepends upon the level of consumer

awareness generated in the countryby educating the consumers abouttheir rights and responsibilities.Within India the level of consumerawareness varies from State to Statedepending upon the level ofliteracy and the social awareness ofthe people. Educating more than 100crores people of various categoriesof population particularly those inrural areas where consumers aremore susceptible to exploitation, onvarious subject matters on consumerinterests is a herculean task that cannot be undertaken only as asustained national programme withadequate funds made beingavailable for the purpose.

Central Plan Scheme on consumerawareness was launched in the10th Five Year Plan with a totaloutlay of Rs.15 crores with annualaverage allocation of around Rs.3crores during the first three yearsof the plan. However, followingpersistent representations fromconsumer groups to step up ourefforts on consumer awareness inthe country and the strongrecommendation of the



Department relatedParliamentary StandingCommittee, the outlay for theremaining two years of the 10th

Plan i.e 2006-07 was stepped uptoRs.69.40 crores each year by thePlanning Commission for creatingconsumer awareness.

6.3 Strategic Action Plan to achievethe objectives

The Division has got a detailedmedia project report on theconsumer awareness campaignprepared through a leadingagency. Media strategies havebeen worked out targeting urban

and rural population identifyingthrust areas in each sector.

For urban consumer, T.V. and printmedia has been proposed to act asthe lead media followed by radio,cinema and also outdoor activitieswith innovative use of petrolpumps, railway stations, PostOffices as communication channelsto take across the consumerawareness campaign.

In respect of rural areas mediastrategies are conceived taking intoconsideration the need to gobeyond consumer awarenesscampaign beyond literacyincluding establishing one to one

IMPACT OF NATIONAL CONSUMER HELPLINESECTOR : AUTOMOBILE

Shri Shailesh Chawla of Delhi had purchased a Tata Indica No. DLX-DL3CU9360on 9th February, 2004 from the dealer.

In the very first week of the purchase, the power steering of his car broke down.The car suffering from high emission and low pick-up. Fuel Injection Pump (FIP)was replaced in May, 2004. The car was overhauled successively three times andin June, 2006 Engine Valve Guide seats were replaced. In spite of all the efforts,the problem persisted.

It was seen that the problem which could occur after the mileage of 1.8 lakh K.M.,had crept in after covering a mileage of 37,253 K.M. only. No fruitful action wastaken either by Dealer or the Regional customer care unit of Tata Motors. It wasfeared by Shri Chawla that the car had been sold with refurbished/ reconditionedengine. Desperate, he contacted National Consumer Helpline.

Under their advice and guidance, Shri Chawla was able to get his complaintredressed within a fortnight and his engine assembly was replaced immediately.



communication and penetrationthrough mobile van campaign, folk,haat campaign, wall paintings etc.Other media details such as T.V.,radio have also been extensivelyused to reach the consumer inremote and far-flung areas.

6.4 North East Region

Keeping in view the uniqueness ofthis region and also consideringthe fact that media strategies

conceived for rest of the countrywould not have as large an impactin the North East region due to itsdistinct culture, customs and lifestyle, an innovative medium i.e.reaching through music had beenconceptualized. Fourteen Musicalconcerts were organized duringMarch 2006 in these States atvarious places to involve the localpopulation and disseminate themessage of consumer awareness.

Musical concerts were organized during March 2006 inthe North-Eastern States at fourteen different places to involve the local population and

disseminate the message of consumer awareness.



6.5 Impact Study on Publicity Campaign:

All activities visualized for creating consumer awarenessthrough print and electronic Media are being scrutinizedbeforehand by the inter-ministerial media committeeconstituted for the purpose for taking into considerationthe possible impact of each programme on the targetedconsumer.

Monitoring by The media committee, through regular meetings, has beenthe Media Committee monitoring the awareness campaign. All related issues

such as choice of creatives, contents of serials, video spots,radio spots, jingles are examined by the media committee.Feedback received from National Consumer Helpline andCORE projects indicates the concurrent impact ofawareness campaign.

Feedback from Awareness campaign initiated through print has its directNCH/CORE impact on the number of calls and queries received by the

National Consumer Helpline and by CORE projectrespectively. There is a direct link between a particular issuetackled through advertisements in the newspapers andnumber of queries received from people. In indicates apossible impact of these advertisements on the people.There is a string of letters, e-mails from the consumersreacting to the consumer information disseminatedthrough advertisements in newspapers. An amount ofincreasing receipt of mails indicates emergence of an alertconsumer.

Impact Survey by SNDT An impact survey of consumer awareness campaign of theUniversity, Bombay Department through print media had earlier been

conducted by the Department of Post Graduate Studiesand Research in Human Science, SNDT University Bombayduring January, 2005 and it was found that 66% of theconsumers interviewed by the research team had foundthe advertisements useful.

ORG MARG Survey During July 2005, Comptroller and Auditor General of India(2005) & IIMC Survey had a Performance audit done through ORG-MARG on the2006 implementation of the Consumer Protection Act and Rules



and consumer awareness. This study had included 27states, 138 districts and 1640 villages. The report hadindicated that awareness level on consumer rights was33% and on Consumer Protection Act 18%. Awarenessabout existence of redressal agency was found to be 13%only and perception about effectiveness of redressalmechanism was that it was simple but not speedy andeconomical. Electronic media had emerged as majorsource of awareness (75%) followed by print and NGO.

This was followed up by a survey on consumer awarenessconducted by this Department in July – August, 2006through IIMC in 12 states i.e. Madhya Pradesh, Maharashtra,West Bengal, Orissa, Tamil Nadu, Karnataka, Rajasthan,Gujarat, Uttaranchal, Delhi, Assam & Meghalaya, covering36 districts and 144 villages. The survey has reflected anencouraging picture. As per the study, 62.56% respondentsfrom both rural and urban areas of the 12 selected Stateshave been found to be aware of the campaign. It has alsorevealed that 82.8% out of those unaware of the campaignhave felt that there was need for such campaigns. The ruralrespondents (58.9%) were more in favour of educatingmasses about consumer rights than the respondents inurban areas (23.9%).

Major source of awareness has been Electronic media(80.5%) followed by print and radio.

Suggestions/ CAG survey report recommended increased involvementrecommendations of of NGO and VCOs in promoting awareness of the consumerCAG (ORG-MARG) and protection measures among the consumers by introducingIIMC Survey specific schemes of financial and other support. At the

same time it was stated that accountability of the NGOs/VCOs, has to be ensured. In the IIMC survey report, TV, radioand newspaper have emerged preferred channel ofcommunication. The NGOs’ consumer awareness activitieshave been found to be confined to the urban sector only.These have not reached the rural masses. It is hencesuggested that a combined approach for InformationEducation Communication (IEC) campaign for consumer



awareness need to be focused and may be planned out infuture. It is added in the report that during the survey, therehad been suggestions from various states in favour of doorto door campaigning, distribution of publicity material,putting up boards and posters in their localities.Combination of aired and telecast message along withtraditional and door to door campaigning in the line ofpulse polio and HIV – AIDS, which has large impact on thecommon masses was also suggested. Hence, theintroduction of IEC for such campaign can be a goodstrategic initiative and intervention.

The position as emerged from the survey has been takennote of and the Media Plan on consumer awarenesscampaign would address all these issues to improve thecampaign.

6.6 ON GOING PUBLCITY ACTIVITIES: 2006 - 2007

Generating consumer awareness isthe key for the success of consumermovement in the country. In orderto ensure that the message of

1. News Paper Advertisements: To

educate the consumers about their

rights and responsibilities, the

Department has been releasing

small advertisements through

DAVP repeatedly in National

SECTOR : TELECOM

Shri Kamal Dar of Uttam Nagar, New Delhi had taken Idea Cellular connectionwith the scheme of getting two free watches with a new connection of Rs. 500/-.But the Company did not provide it. National Consumer Helpline advised him toget in touch with the Nodal officer of Idea Cellular Company. The representativeof the company personally came to the complainant’s residence to deliver SimCard with two free watches.

consumer protection reaches everycitizen of the country, theDepartment has taken-up variousactivities to generate consumerawareness.

dailies/ regional newspapers in

local languages in accordance with

the New Advertisement Policy of

the DAVP.



IMPACT OF NATIONAL CONSUMER HELP LINESector – Electricity

Shri Pradyumn Giri of Mayurbhanj (Orissa) had complained against Orissa PowerGeneration Corporation Ltd. as the transformer of the area had got burnt twomoths back. But no action was being taken despite repeated complaints to localoffice of electricity department. Shri Giri was advised by NCH to write a letter tothe Nodal Officer of Orissa Power Generation Corporation Ltd. His grievance wasredressed. The transformer was replaced in a short span of time.

Sector – Passport

Shri Praveen Chajed, Ratlam (M.P.) had applied in the RatlamDivision for issuing of Passport in December, 2005 but despitethe passage of more than six months he did not get it. He wasadvised by NCH to write to the Passport Division of the CentralGovernment. He got his passport within a month.



2. Telecast of Video Spots: TheDepartment has got producedvideo spots of 30 seconds durationon various consumer related issuessuch as Short Measurement ofpetrol, Redressal system, ISI andHall Mark, MRP, which are beingtelecast through Doordarshan andSatellite channels such as Sony, StarPlus, Zee News, Star News,Doordarshan National Net work,kalyani, Krishi Darshankendnars,regional channels Sunnetwork, ETV Network, ZEETVnetwork, Discovery ,Entertainmentand religious channels.

3. Telecast of video spots in NorthEastern States: The Departmenthas produced 6 video spots inRegional languages of NorthEastern States of 20 seconds and 30seconds duration on variousconsumer related issues such asM.R.P.(Maximum Retail Price) ShortMeasurement, Expiry date onmedicine, adulteration, damagedproduct, Redressal system andstarted the telecast throughDoordarshan Kendras of NorthEastern States.

4. Meghdoot Postcards: TheDepartment in consultation withDepartment of Post has starteddisseminating consumer

awareness messages throughMeghdoot Post cards to reach far-flung rural areas including NorthEast States.

5. Printed Literature: TheDepartment has re-printed a folderentitled "Consumer AwarenessMission' containing the salientfeatures of Consumer ProtectionAct 1986, Consumer Resource kit aswell pocket calendars and postersfor distribution during variousevents such as IITF, Nukkad Nataksand also through the StateGovernments at grass root level.

6. Song & Drama : The Departmentin consultation with Song & Dramadivision of Ministry of Informationand Broadcasting has organized1900 programmes in all the States/UT to create awareness at grassroot level.

Campaign on Consumer Awareness by Song &Drama Division in collaboration with this

Department in Tamil Nadu



7. Special Scheme on assistance toState Government/ UT toundertake consumer awarenessactivities has been launched. Anamount of Rs. 10 crores has beenearmarked for undertaking variousactivities out of plan allocations.The Department has releasedRs.7.50 crores @ Rs.1.25 lakh perdistrict to each State/UT. Theremaining amount will be releasedafter receiving the utilizationcertificates from the States/UTs andon receipt of specific proposals onconsumer awareness from States.

8. Help Line :The Department haslaunched National Consumer HelpLine with Toll Free Number 1800-11-4000 which is being operatedby Delhi University for counselingthe Consumers to redress theirgrievances. The timing of toll freenumber facility is available toconsumers from 9-30 A.M. to 5-30P.M. on all working days (Monday- Saturday) .

9. Participation in IndiaInternational Trade Fair: To givegood exposure to the latestdevelopments of the consumermovement in the country theDepartment has participated inInternational Trade Fair, New Delhi

Campaign on Consumer Awareness by Song &Drama Division in collaboration with this

Department in Tamil Nadu

National Consumer Helpline advertisement atMetro Stations of Delhi

A Consumer filing a complaint in the 'JagoGrahak Jago' stall at India International Trade

Fair during November, 2006



from 14th to 27th November 2006.Updated literature on theconsumer movement has beendistributed and consumers guidedon how to file complaints on line.

10. Nukkad Nataks : To spread theconsumer movement amongyouths the Department organizeda youth festival on consumerawards during November 2006, inwhich 12 Delhi collegesparticipated. The Fine Arts clubsof colleges adopted variousconsumer themes in their dramassuch as misleading advertisement,spurious goods, expired medicines,Maximum Retail Price, salientfeatures of Consumer ProtectionAct 1986, popularizing NationalConsumer Help Line, Core web siteetc and the best 3 teams weregiven awards to encourage youth

A view of the different stalls relating to thisDepartment at India International Trade Fair

during November, 2006

Youth Festival on Consumer Awareness - 2006 atDilli Haat - Nukkad Natak performed by College

Students on Consumer Issues.

Youth Festival on Consumer Awareness - 2006 atDilli Haat - Scene of Nukkad Natak performed by

College Students on Consumer Issues.

to be associated with consumerrelated activities.

11. Use of Sports Events : In order toreach maximum number ofconsumers, the Department hastelecast video spots containingconsumer related informationduring popular sports events suchas World Cup Soccer and cricketmatches.



Sector - Banking

Shri Ravi Khandelwal of Shakarpur, New Delhi was using credit cardof HDFC Bank for the past three years. In August, 2005 he wascharged with some insurance for which he had not asked. Heapplied for ADD-ON card. He was given to understand that thiscard was free as at the time of applying for the card. He was,however, charged with annual fee for the card. In November, 2005he requested for cancellation of main card and was prepared togive the balance in EMI as scheduled. But Bank cancelled the cardand pre-closure was done for loan without informing him. Bankdidn't reverse the charges for 'add on card' and also other financialcharges.

Through advice from National Consumer Helpline, ShriKhandelwal's complaint of a two year problem was resolved within15 days.


Forward Markets Commission

FORWARD MARKETS COMMISSION

CHAPTER - VII

7.1 The Forward Markets Commission(FMC) is a statutory body set upunder the Forward Contracts(Regulation) Act, 1952 (hereinafterreferred to as the Act). It functionsunder the administrative control ofthe Ministry of Consumer Affairs,Food & Public Distributions; Dept.of Consumer Affairs, Govt. of India.

7.2 FMC at present comprises of ShriS. Sundareshan, IAS Chairman andother three members viz. Smt.Rinchen Tempo, IAS, Dr. Kewal Ram,IES, and Shri Rajeev Agarwal, IRS. Ithas its headquarters at Mumbaiand a regional Office at Kolkatta.

Under the Act the Commission has thefollowing functions:-

(a) to advise the Central Governmentin respect of the recognition of orthe withdrawal of recognition fromany association or in respect of anyother matter arising out of theadministration of this Act:

(b) to keep forward markets underobservation and to take suchaction in relation to them as it mayconsider necessary in exercise ofthe powers assigned to it by orunder this Act:

(c) to collect and whenever theCommission thinks it necessarypublish information regarding thetrading conditions in respect ofgoods to which any of theprovisions of this Act is madeapplicable, including informationregarding supply, demand andprices, and to submit to the CentralGovernment periodical reports onthe operation of this Act, and on theworking of forward marketsrelating to such goods.

(d) to make recommendationsgenerally with a view to improvingthe organization and the workingof forward markets.

(e) to undertake the inspection of theaccounts and other documents ofany recognized association orregistered association or anymember of such associationwhenever it considers it necessaryand,

(f ) to perform such other duties andexercise such other powers as maybe assigned to FMC by or under thisAct or as may be prescribed.

7.3 FMC thus is a statutory authorityentrusted with regulatory



functions under the Act. Thesanctioned strength of the officecomprises of 78 officers and 68staff members. The functions ofthe Commission are carried outthrough 5 divisions as givenbelow:

I. Market Division (Division ofMarkets, Trading andDevelopment)

l New application for recognition.

l New Contracts

l Contract designs

l Byelaws, Articles of Associations(vetting in consultation with LegalAffairs)

l Trading Permissions

l Compliance matters

l Any other correspondence/interaction with Exchanges notcovered under any otherdivision

l Policy

l Co-ordination with other countryRegulators

l Participation of FIIs, Banks, MFs

II. M & S Division (MarketIntelligence, Monitoring &Surveillance)

l Monitoring of trade data fromExchanges - large positionmonitoring.

l Inspection and auditing ofExchanges and members

l Risk Management Group (RMG),Margining, O.P. Limit, SpecialMargins, Capital adequacies.

l Complaint specific to trade/margin/settlement prices ofspecific nature having directbearing on current trade inExchanges. (If of the nature ofmalfeasance, manipulation, illegalactivities, then same may bereferred to Investigation/Enforcement Division)

III. I R Division (Research, Trainingand Intermediary, Registrationand IT)

New projects / Developments /Regulation, Externally assisted Projects

l Plan Schemes

l Training Programmes/ Seminars/Conferences

l Annual reports, Bulletin and otherpreparation of Literature onderivatives in commodities

l Media relations

l Parliamentary StandingCommittee

l Coordination Committee

l Consultancies

l Warehouse Receipt System

l D.O.s (monthly, Quarterly)



l Website Content/IT matters

l Research market as well asCommodity studies - Price analysis,

l Conducting surveys, developingand maintaining database

l Matters relating to Relationshipmanagement

l (Stakeholders/cl ient/publ ic/universities/institutions)

l Intermediary Registration,Certification and Regulation

IV Legal Affairs Division(Investigation, Vigilance andLegal Affairs Division)

l Investigation, Vigilance(Enforcement and work relatingthereto)

l Review legal and regulatoryframework

l Amendment to Act/Rules. Framingof Rules and Regulation

l Vetting of Byelaws, articles,Regulation (to support MarketsDivision)

l Deal with judicial/legalproceedings

l Legal opinion-interaction with LawMinistry.

l Matters relating to Taxation

l Library

V Administration Division(Commission Secretariatincluding HR, Administration,Finance and Grievances)

l Administration (HR) Recruitment,Training (Internal)

l Establishment

l Purchase, Maintenance Contracts,Accounts

l Vigilance (Internal)

l House-Keeping and Estatemanagement

l Records keeping and disposal

l Official Language

Each division is headed by Director/Directors and supported by DeputyDirectors, Assistant Directors, EconomicOfficers etc.

7.4 FMC has a Hindi Cell comprising ofone Hindi Officer, one HindiTranslator and one Hindi typist toimplement the provisions of theOfficial Language Act. FMCobserved the Hindi Fortnightprogram from 14th September to30th September, 2006 and variouscompetitions were organizedduring this period as a part of thecelebrations. The main function ofHindi Day celebration was held on14th September, 2006. An in-houseHindi magazine viz. 'VAYADABHARATI' is being published.



7.5 OVERALL PERFORMANCE OFTHE FORWARD MARKETSCOMMISISON FOR 2006-2007 INACHIEVING ITS OBJECTIVE ANDSPECIFIED TARGET AND THEOUTLOOK FOR 2007-2008 INTERMS OF THE BROAD PHYSICALDIMENSION AND FINANCIALOUTLAYS.

1. As referred to in paragraph 7.2above, the regulatory activities ofthe Commission are concerned withthe regulation of futures trading inall Commodities traded at present.To enforce the provisions the Act,FMC guides and trains the officersof the State Governments and theUnion Territories in effectivelyenforcing the penal provision of theAct. The powers of search, seizureetc., are vested in the State Policeauthorities. The activities of FMC inenforcement include (i) collection ofintelligence about illegal forwardtrading, (ii) communication of suchinformation to the police,requesting them to verify, and carryout raids etc., (iii) to assist police inorganizing raids and whereverpossible accompany them for raids,(iv) to scrutinize documents seizedduring raids and prepare scrutinyreports which involve interpretationof different entries and theircollation together with reference tolegal provisions; and (v) to tenderevidence in Courts of Law as " Expertwitness".

2. Regulation of Forward / FuturesTrading

2.1 Forward/futures tradinginvolve a passage of timebetween entering into acontract and its performancemaking thereby the contractssusceptible to risks,uncertainties, etc. Therefore,FMC takes suitable regulatorymeasures in accordance withthe provision provisions ofFCR Act.

2.2 After assessing the marketsituation and taking intoaccount therecommendations made bythe Board of Directors of theExchange, the Commissionprescribes various regulatorymeasures from time to time.These regulatory measuresrelate to open position, pricebands, margin requirements,basis variety, deliveryprocedures etc.

2.3 FMC provides the Ministry ofConsumer Affairs, Food &Public Distribution analysis ofthe prices of the essentialcommodities like food grains,pulses, edible oilseeds andoils, vanaspati, sugar and gurin the premier markets in thecountry from time to time.Besides, the internationalprice trends in many of the



above commodities are alsoreviewed on a periodic basis.Furthermore, various aspectsconcerning the commodityeconomics of the aboveitems are also reviewed anda regular feedbackcontaining inter-alia, the pricetrend and otherdevelopments in thedomestic and overseascommodity markets aresubmitted to the Ministry.

3. Regulatory Initiatives by theForward Markets Commission:

3.1 Restriction on pro accountTrading

In order to curb possiblecircular trading, preventunauthorized appropriationof clients' business by themembers and avoidingmargin liabilities thefollowing directions wereissued to the three nationalExchanges -

(i) Facility of placing orders on"Pro-Account" through thetrade terminals shall beextended only at onelocation of the Member asspecified/required by the saidmember;

(ii) In case any member requiresthe facility of using "Pro-Account" through trading

terminals from more thanone location, such membershall be required to submit anundertaking to the Exchangestating the reason for usingthe "Pro-Account" at Multiplelocations.

3.2 Imposition of penalties forviolation of limit on openposition

Penalties on members andtheir clients for exceeding theprescribed open interestpositions have been madevery stringent by relating thepenalty to the proportion ofthe violation and repetitiveviolations can even lead tosuspension. The penalty, inmajor cases of violation, wasincreased from Rs, 1000/- toRs. 10,000/- or 2% of the valueof the limit exceeded, whichever is more. As per the newprovisions the habitualdefaulters will be suspendedfrom trading.

3.3 Uniformity in RegulatoryMeasures

In order to bring uniformity inregulatory provisions at theExchanges, FMC issueddirections prescribinguniform daily price limits,position limits and initialmargin in respect ofcommodities which are



traded across three Nationallevel commodity Exchangesand have good volume oftrade as given in Annexure I.

3.4 Contract Designs made moreBroad based

The Commission approvedthe amendments to Contractdesigns to make them morebroad-based in case of Uradand Tur by introducing Desivarieties for the purpose ofdelivery with suitablepremium and discount inthese commodities.

3.5 Registration of Intermediaries

Registration of intermediariessuch as warehouses, assayers,etc has also been started byFMC for improvingregulation. The Registrationof members has already beencompleted in the lastfinancial year. So far, 3552members, 136 intermediariesand 21 warehouses areregistered with FMC.

3.6 Review of non-operativecontract

It was found that the numberof contracts permitted at theExchanges remainedinoperative. Hence, theExchanges were asked toreview non operativecontracts.

3.7 Audit of members

Audit of Exchanges and theirmembers throughprofessional auditors havebeen initiated by FMC. In factit is for the first time thatprofessional auditors havebeen engaged for audit ofmembers.

4. Developments in CommodityMarkets

The total value of trade during2006-07 (April - January 2007) wasRs.30.31 lakh crores. Total value oftrade during 2005-06 was Rs. 21.55lakh crores. The phenomenalgrowth in the value of trade waslargely because of the increase inthe number of commoditiesavailable for trading and the onlinetrading platform offered by theNational Exchanges. MCX, Mumbaiand NCDEX, Mumbai contributed57.48% and 35.67% of the totalvalue of the trade during the year2006-07. Presently, trading in 103commodities are regulated underthe Forward Contracts (Regulation)Act, 1952.

4.1 Renewal of Recognition:

Recognition was granted toEast India Jute and HessianExchange Ltd., Kolkatta inrespect of Raw Jute(including Mesta), andrenewed in case of First



Commoditities Exchange ofIndia, Kochi in respect ofRubber and BikanerCommodtiy Exchange,Bikaner in respect ofGuarseed, Guar gum andGram as given in Annexure II.

4.2 Revision in Regulatoryprovisions

FMC has been proactive inmonitoring the market andintervened the Chana, Wheat,Potato, Mentha Oil, Urad andChilli markets to regulate themarket by way of revising thelimit on open position, andrevising the margins fromtime to time as detailed inAnnexure III. Besidesimposition of Initial marginsand additional margins FMCalso took various steps likerevision in price limit, limit onopen position for clients etcas given in Annexure IV.

4.3 Awareness programs:

FMC continued its efforts tocreate awareness byconducting awarenessprograms in association withthe Exchanges. During theyear upto September 2006,22 awareness programs wereorganized in association withthe recognized Exchanges.One program was alsoorganized through Mumbai

Charter of Financial Analysts.Details of the awarenessprograms are given AnnexureV.

4.4 Value of Trade at MajorCommodity Exchangesduring the year 2006-2007 isgiven at Annexure-VI.

4.5 List Of Commodities NotifiedUnder Section 15 of the F.C.(R.) Act 1952 is givenAnnexure- VII.

4.6 Training Program:

During the period, followingtraining programs wereorganized by FMC throughvarious institutes.

l One day training programorganized on MarketMonitoring and Surveillancethrough SEBI on 16th June2006.

l Two days trainingprogramme on 'CommodityFinance for Banks' - organizedthrough the National Instituteof Bank Management (NIBM),Pune, on the 25th -26thAugust, 2006.

l Two days' seminar wasorganized through the IndianInstitute of Management,Bangalore from 1stSeptember 2006 to 2ndSeptember 2006 at Bangalorefor the benefit of Senior State



Government officers. In allaround 24 officersparticipated in the Seminar.

l FOW, an Internationalorganization, publishing amagazine on Futures andOptions, organized anInternational Seminar inMumbai on 22nd and23rd September 2006.International Exchanges likeChicago MercantileExchange, SingaporeExchange participated in theseminar.

l A Seminar on IndianCommodity Market: Trendsand Developments wasorganized by ASSOCHAM atMumbai on 26th September2006 in collaborations withMCX and NCDEX, Secretary(CA) inaugurated theSeminar. About 100 personsfrom commodity andcorporate sector participatedin the seminar.

l Seminar on CommodityFutures Markets wasorganized for the benefit ofsenior officers of the StateCooperative MarketingFederations in associationwith Indian Institute of RuralManagement, Anand atAnand from 29th - 30thSeptember, 2006.

l Regulatory Initiatives takenby Forward MarketsCommission (FMC) during2006-07.

- To avoid the risk of misuse ofmultiple terminals, directionsissued to the national levelExchanges to imposerestrictions on the number ofterminals a member can usefor proprietary trading.

- To bring discipline in themarket, the penalty forviolation of limit on openposition was increased fromRs. 1000/- to Rs. 10,000/- or 2%of the value of the limitexceeded which ever ishigher to link the penaltywith the value of theviolation. It also provides forsuspension of the habitualdefaulters.

- PAN made mandatory for theclients for trading inCommodity Derivatives w.e.f.1st April 2007. The clients whodo not possess PAN will berequired to give declarationin the prescribed form andwill have to furnish otherdocument for identification.

- FMC continued to beproactive in regulatoryaspects to promote marketintegrity and customerprotection and initiated



various steps by interveningthe in Wheat, Mentha Oil,Potato, Chana, Urad, Chilli,Natural gas etc. markets byrevising the limits on openposition and imposing pricebands and special marginsfrom time to time.

- Audit of Exchanges and theirmembers throughprofessional auditorsinitiated. In fact, it is for thefirst time that professionalauditors have been engagedfor audit of members.

l Developmental Initiatives

- 35 awareness programsorganized in various parts ofthe country.

- Training programs/capacitybuilding programmes werealso organized throughNational Institute of BankManagement, Pune (forcreating awareness amongstthe bank officers), IndianInstitute of Ruralmanagement (IRMA) Anandfor creating awarenessamongst the Co-operativesand through Indian Instituteof Management, Bangalore(IIM, Bangalore) for seniorofficers of the AgricultureDepartment, Civil Supplies,Agricultural Produce Marketcommittees of the State

Government for creatingawareness about thesemarkets.

- Four interactive meetingswith members of NationalExchange belonging to theEast, West, North and Southzones were held.

- A seminar on CommodityFutures Market wasorganised for the benefit ofthe officers of theDepartment of Agriculture atNew Delhi on 10th November2006.

l Agreement signed withInternational bodies

- A Memorandum ofUnderstanding was signedbetween the United StatesCommodity Futures TradingCommission (USCFTC) andForward MarketsCommission (FMC) atMumbai on 18th October,2006. Shri Sundareshan,Chairman, FMC signed theMOU on behalf of FMCwhereas Shri. Reuben Jeffery,Chairman CFTC signed theMOU on behalf of CFTC. TheMOU provides forconsultation on matters ofmutual interest in order topromote co-operation onmarket integrity, sharing ofinformation on each others



laws, consultation providingfor issues relating to RiskManagement etc.

- FMC became an AssociateMember of IOSCO. IOSCO isthe body of all InternationalSecurity and CommoditiesMarket Regulators.

- FMC also signed an MOU withChina Securities RegulatoryCommission (CSRC) duringthe visit of the ChinesePresident Shri. Hu Jintao toIndia on 21.11.2006. The MOUwas signed in the presence ofthe Chinese President, Shri.Hu Jintao and the Prime

Minister of India, Shri.Manmohan Singh, after thesummit meeting atHyderabad. On behalf of FMC,MOU was signed by ShriSundareshan, Chairman FMCand Shri Sun Yuxi, ChineseAmbassador to India, signedthe MOU on behalf of CSRC.

- FMC in consultation with theRBI allowed the members,registered with FMC, to set upwholly owned subsidiariesabroad. No ObjectionCertificates (NOCs) were issuedto 3 members to trade inCommodities related activities.

Mr. Reuben Jefferey, Chairman, CFTC and Mr. S. Sunderesha, Chairman Forward Markets Commissionsigned a Memorandum of Understanding between United States Commodity Futures Trading

Commission (USCFTC) and Forward Markets Commission (FMC) at Mumbai on 18th October, 2006.



Hon'ble Prime Minister of India, Dr. Manmohan Singh and Forward Markets Commission Chairman,Shri S. Sundareshan on the dais during the ceremony for sigining of an MoU with the China Securities

Regulatory Commission (CSRC) during the visit of the Chinese President Shri Hu Jintao to India.

Signing of MOU between Forward MarketsCommission, India and CommoditiesFutures Trading Commission, USA

Mr. SUN Yuxi, Ambassador of China to India (up)with Mr. S. Sundareshan, Chairman (FMC)



S.No. Name of Commodity Limit on Open Position

Client Members *

1 2 3 4

1. Cardamom 100 MT 300 MT

2. Gram 10,000 MT 30,000 MT

3. Guar Gum 1,000 MT 3,000 MT

4. Guar Seed 3,000 MT 9,000 MT

5. Gur 10,000 MT 30,000 MT

6. Jeera 200 MT 600 MT

7. Maize 15,000 MT 45,000 MT

8. Masur 4,000 MT 12,000 MT

9. Moong 3,000 MT 9,000 MT

10. Mustard seed 10,000 MT 30,000 MT

11. Parboiled Rice 10,000 MT 30,000 MT

12. Potato 15,000 MT 45,000 MT

13. Rice 10,000 MT 30,000 MT

14. Rice Bran Oil 2,000 MT 6,000 MT

15. Soy seed 15,000 MT 45,000 MT

16. Sugar – S 10,000 MT 30,000 MT

17. Sugar – M 10,000 MT 30,000 MT

18. Tur 5,000 MT 15,000 MT

19. Urad 5,000 MT 15,000 MT

20. Wheat 10,000 MT 30,000 MT $

21. Yellow peas 4,000 MT 12,000 MT

22. Pepper 1,000 MT 3,000 MT

23. Rubber 4,000 MT 12,000 MT

24. Turmeric 3,000 MT 9,000 MT

25. Basmati Rice 1,000 MT 3,000 MT

26. Raw Jute 8,000 MT 24,000 MT

27. Red Chilli 5,000 MT 15,000 MT

28. Gold 2 MT 6 MT

29. Silver 50 MT 150 MT

30. Crude Oil 4 Lakh Barrels 12 Lakh Barrels

31. Burmese peas 2,500 MT 7,500 MT

32. Castor oil 2,000 MT 6,000 MT

Annexure-I

Uniform limits on open position for 50 commodities prescribed by the Commission on

18th August 2006.

contd...



33. Castor seed 5,000 MT 15,000 MT

34. Coconut oil 2,000 MT 6,000 MT

35. Coffee Robusta 750 MT 2,250 MT

36. Coffee Arabica 480 MT 1440 MT

37. Cotton Long staple 20,000 Bales 60,000 Bales

38. Cotton medium staple 20,000 Bales 60,000 Bales

39. Green peas 300 MT 900 MT

40. Groundnut 3,000 MT 9,000 MT

41. Groundnut oil 6,000 MT 18,000 MT

42. Kapaskhali 12,000 MT 36, 000 MT

43. Linseed 750 MT 2,250 MT

44. Mustard oil Cake 3,000 MT 9,000 MT

45. RBD, Palmolein 7,500 MT 22,500 MT

46. Refined Soya Oil 6,000 MT 18,000 MT

47. Safflower 1,000 MT 3,000 MT

48. Sesame seed 3,000 MT 9,000 MT

49. Sunflower oil 3,000 MT 9,000 MT

50. Mentha Oil 200 MT 600 MT

* For a member the limit shall be either the limit indicated in column 4 of the table above or 15% of themarket-wide open positions whichever is higher on a real time basis.

$ In respect of wheat contracts only the absolute limits may be allowed for members’. Therefore theclause of 15% of Market vide open position would not applicable for wheat contract.

Annexure II

Renewal of Recognition

S. No. Name of the Exchange Commodity Period of recognition1. East India Jute and Hessian Raw Jute (including 7th April 2006 to

Exchange, Ltd., Kolkatta Mesta) 6th April 2009.

1 First Commodities Rubber 26.07.2006 toExchange of India, Kochi 31.03.2009.

2 Bikaner Commodity Guarseed, Guar gum 20.01.2007 toExchange, Bikaner and Gram 19.01.2010



Annexure III

Imposition of margins:

S. No. Commodity Date Additional Margins Initial margin

On longs % On shorts % ‘

1 Chana 13.07.2006 5

30.08.2006 15 10

14.09.2006 5 5

17.10.2006 5

2. Wheat 27.06.2006 10 10% minimum margin

30.08.2006 10 — —

3. Potato 18.08.2006 - - Minimum 11 % of which

w.e.f.22.08.2006 5% to be payable in cash.

4. Mentha Oil 22.09.2006 5 - -

w.e.f. 25.09.2006

5. Urad 27.03.2006 15 - -

7.04.2006 25

26.05.2006 15

22.09.2006 5

w.e.f. 25.09.2006

17.10.2006 10

6 Tur 27.03.2006 1525

07.04.2006

7 Chilli 22.09.2006 5 5 -

8 Bullion 13.06.2006 Minimum margin 10%

once the price cross the

limits prescribed

9 Copper 13.06.2006 Minimum margin 10%

The exchanges were directed to collect such margin in cash and these margins would be in addition to

the existing margins. No reduction in the one sided margins and special margins/ additional margins

allowed without the prior approval from the Commission



S. No. Commodity Date Action taken

1 Urad 27.03.2006 Reduced the limit on daily price fluctuation from 9% to 6%

2 Tur 27.03.2006 Reduced the limit on daily price fluctuation from 9% to 6%

3 Bullion 20.04.2006 Relaxed price band from 9% to 15% and further by

13.06.2006 7.5%.Relaxation on daily price limit 6% to 9% for gold and

9% to 15% for silver.

14 Wheat 27.06.2006 Limit on open position reduced to 50%Daily price fluctuation

9.05.2006 reduced from 6% to 4% initially and with a break of 15 minutes

13.07.2006 to 2%Cooling off period extended from existing period of 15

minutes to 30 minutes after the price limit of 4% is reached in

either side with break of 15 minutes to 2% .

5 Mentha Oil 16.05.2006 Reduce the limit on daily price fluctuation from 6% to 4% and

09.08.2006 with a break of 15 minutes to 2%The limit on open position

for clients and members fixed at 200 MT and 600 MT

respectively w.e.f from 1st September 2006.

6 Chilli 22.09.2006 The Daily price limit relaxed and were fixed at 4 % with further

relaxation of 2 % i.e (4%+2%) after a freeze at 4% level for 15

minutes. Such margins shall be collected in cash and made

applicable w.e.f. 25th September 2006.

7 Natural gas 14.09.2006 The daily price limit relaxed from 6% to 9% and thereafter

from 9% to 12 % and 12% to 15 % The exchanges were

directed to ensure that while relaxing the price band in stages,

initial margin would be collected at levels highet than 9%, 12%

or 15% as the case may be.Initial margin to be collected at a

levels higher than 9%, 12% or 15% as the case may be. While

relaxing the price band, in stages, initial margin to be collected

at a levels higher tha 9%. 12% and 15% as the case may be.The

revised limit on daily price fluctuations would become

applicable w e f 25th September 2006

8 Copper Relaxed daily price limits from 6% to 9%

Annexure IV

Revision in Regulatory measures



ANNEXURE-V

Details of the awareness programs held during April to September 2006.

S. No. Name of the Exchange Date Place1. NCDEX, MumbaiNational 21.04.2006 Nasik

Commodity and Derivatives 26.04.2006 GunturExchange Ltd. Mumbai. 12.5.2006 Dehradhun

26.5.2006 Surat (Gujarat)21.7.2006 Davangere/Karnataka

2 MCX, Mumabai 29.04.2006 Kolkatta20.5.2006 Ludhiana (Punjab)23.6.2006 Thiruvanan-thapuram24.06.06 Chennai21.7.2006 Mangalore27.7.2006 Jaipur28.7.2006 Kota2.8.2006 Muzaffar-pur12.8.2006 Shimla19.8.2006 Nasik7.9.2006 Indore29.9.2006 Bangalore

3 National Multi Commodity 10.06.2006 AhmedabadExchange of India Ltd., 8.09.2006 GwaliorAhmedabad 28.09.2006 Sultan Bathery

4 Mumbai Charter of Financial 26.05. 06 MumbaiAnalysts

5 First Commodity Exchange 17.6.2006 Kochiof India Ltd.,



Annexure- VI

Value of Trade at Major Commodity Exchanges

during the year 2006-2007

Value Rs in crores

Sr. No. Name of the Association April 2006 toJanuary 2007

1 2 3

1. National Commodity & Derivative Exchange Ltd., Mumbai 1013602.38

2. Multi Commodity Exchange of India Ltd., Mumbai 1832838.93

3. The National Multi Commodity Exchange of India Ltd., 104435.60Ahmedabad

4. National Board of Trade, Indore 62848.01

5. Surendranagar Cotton oil and Oilseeds Association Ltd., 2492.60Surendranagar

6. The Chamber of Commerce, Hapur 5686.66

7. The Ahmedabad Commodity Exchange Ltd.,Ahmedabad 2843.33

8. Vijay Beopar Chamber Ltd., Muzaffarnagar 2462.01

9. The Rajkot Seeds Oil & Bullion Merchants Association Ltd., 1496.71Rajkot

Total of these above Exchanges 3028706.23

Other Commodity Exchanges 2600.89

Grand Total 3031307.12



Sl.No Commodity

Fibres and Manufactures

1 Art Silk Yarn2 Cotton Cloth3 Cotton pods4 Cotton Yarn5 Indian Cotton (Full pressed, half pressed or loose)6 Jute goods (Hessian and Sackings and cloth and /or bags, twines and/or yarns mfd

by any of the mills and/or any other manufacturers of whatever nature made fromjute)

7 Kapas8 Raw Jute (including Mesta)9 Staple Fibre Yarn

Foodgrains And Pulses

10 Arhar Chuni11 Bajra12 Barley13 Gram14 Gram Dal15 Guar16 Jowar17 Kulthi18 Lakh (Khesari)19 Maize20 Masur21 Moth22 Mung23 Mung Chuni24 Mung dal25 Peas26 Ragi27 Rice or Paddy28 Small Millets (Kodan Kulti, Kodra, Korra, Vargu, Sawan, Rala, Kakun, Samai, Vari & Banti)29 Tur Dal (Arhar Dal)30 Tur(Arhar)31 Urad (Mash)32 Urad dal33 Wheat

Annexure- V1I

LIST OF COMMODITIES NOTIFIED UNDER SECTION 15 OF THE F.C.(R.) ACT 1952.



Metals

34 Copper, Zinc, Lead or Tin35 Gold36 Silver37 Silver Coins

Oilseeds and Oils

38 Celeryseed39 Copra Oil/Coconut Oil40 Copra Oilcake/Coconut Oilcake41 Copra/Coconut42 Cottonseed43 Cottonseed Oil44 Cottonseed Oilcake45 CPO Refined46 Crude Palm Oil47 Crude Palm Olive48 Groundnut49 Groundnut Oil50 Groundnut Oilcake51 Linseed52 Linseed oil53 Linseed Oilcake54 Rapeseed Oil/Mustard Oil55 Rapeseed Oilcake/ Mustardseed Oilcake56 Rapeseed/Mustardseed57 RBD Palmolein58 Rice Bran59 Rice Bran Oil60 Rice Bran Oilcake61 Safflower62 Safflower Oil63 Safflower Oilcake64 Sesamum (Til or Jiljilli)65 Sesamum Oil66 Sesamum Oilcake67 Soy meal68 Soy Oil69 Soybean70 Sunflower Oil71 Sunflower Oilcake72 Sunflower Seed



Spices

73 Aniseed74 Betelnuts75 Cardamom76 Chillies77 Cinnamon78 Cloves79 Coriander seed80 Ginger81 Methi82 Nutmegs83 Pepper84 Turmeric

Others

85 Camphor86 Castorseed87 Chara or Berseem (including charaseed or berseemseed)88 Crude Oil89 Gram Husk (Gram Chilka)90 Gur91 Khandsari Sugar92 Polymer93 Potato94 Rubber95 Seedlac96 Shellac97 Sugar98 Furnace Oil99 Ethanol100 Cooking Coal101 Electricity102 Natural Gas103 Onion


Bureau of Indian Standards

BUREAU OF INDIAN STANDARDS

CHAPTER - VIII

GENERAL

8.1 The Bureau of Indian Standards,the National Standards Body ofIndia became functional as astatutory body under the Bureauof Indian Standards Act, 1986 witheffect from 1 April 1987 takingover staff, assets and liabilities ofIndian Standards Institutionestablished in 1947. The Bureau issuccessfully promoting andnurturing the standardizationmovement in the country. During2005-06, BIS has made all-roundprogress in its key activitiesrelating to standardizationand certification (Product

and Management SystemsCertification).

STANDARDS FORMULATION

8.2 BIS is formulating need-basedIndian Standards in line with thenational priorities as a time boundprogramme. The Bureau has takena decision to harmonize nationalstandards with regional andinternational standards in order tofacilitate adoption of internationalstandards by all segments ofbusiness and industry. Theprogress on activities relating toformulation of Indian Standards isgiven in Table - 1.

Table - 1

Progress of Standards Formulation

Sl. No. Activities Progress during2005- 06* Apr-Dec 2006**

1. New and revised standards formulated 351 200

2. Sectional Committee meetings held 164 122

3. Standards in force 18219 18303

4. Standards Reviewed 3663 1362

* As on 31 March 2006** As on 31 December 2006



CERTIFICATION

Product Certification

8.3 BIS has been operating productcertification scheme for more thanfive decades. The CertificationScheme is basically voluntary innature but for a number of itemsaffecting health and safety of theconsumer and those of massconsumption, it has been mademandatory by the Governmentthrough various statutorymeasures such as Prevention ofFood Adulteration Act, Mines Act,Indian Gas Cylinders Rules besidesBIS Act. Some of the items broughtunder mandatory certification onconsideration of health and safetyare LPG cylinders, pressure stoves,safety items used in mines, clinicalthermometers, packaged drinkingwater, etc.

The progress of ProductCertification Scheme issummarized in Table - 2.

Certification of ForeignManufacturers & Importedproducts

8.4 BIS launched its ProductCertification Scheme to overseasmanufacturers and Indianimporters in the year 1999. Underthe provisions of this scheme,foreign manufacturers can seekcertification from BIS for markingtheir product with BIS StandardMark and Indian importers can alsoseek BIS certification for applyingBIS Standard Mark on the productbeing imported into the country.During the period 5 licences weregranted under the ForeignManufacturers Scheme.

8.5 The Directorate General of ForeignTrade, Ministry of Commerce haveissued a notification dated 24November 2000 according towhich products which are undermandatory BIS Certificationthrough various Notifications

Table - 2

Progress of Certification Marks Activities

Sl. No. Activities Progress during2005- 06* Apr-Dec 2006**

1. Licences granted 2536 1688

2. Total Licences in operation 19558 18735

3. Samples tested in BIS labs 26725 18767

* As on 31 March 2006** As on 31 December 2006



issued by Govt. of India, cannot beimported into India without BISCertification. For compliance to thisrequirement, all foreignmanufacturers of these productswho intend to export to India arerequired to obtain a BIS productcertification licence.

Hallmarking Of Jewellery

8.6 BIS has been nominated as the soleagency in India for Hallmarking ofGold Jewellery. The HallmarkingScheme which is on a voluntarybasis was formally launched by BISin April 2000 and later revised in Jan2006. Jewellers desirous ofoperating the BIS HallmarkingScheme for gold jewellery have toapply to BIS for Certification. A BIScertified jeweller gets his jewelleryassayed and hallmarked by any BISrecognized Assaying andHallmarking Centre. Therecognition of Assaying andHallmarking Centres is done by BISafter ensuring that the Assayingand Hallmarking Centre arefollowing BIS Criteria forHallmarking based on laid downnorms for sampling, assaying andhallmarking and also haveadequate testing facilities, trainedand competent manpower. Thenorms for recognition of thesecentres have been aligned withthose in other parts of the world, inorder to ensure the acceptability of

the jewellery with 'Indian Hallmark'world over. The number of licencesfor Hallmarking of jewellery hasgrown to 1410 on 1 April 2006 andto 2794 as on 31 December 2006.Similarly the number of licences forHallmarking of silver jewellery /artifacts has grown from 23 on 31March 2006 to 172 as on 31December 2006. During the period,the number of BIS recognizedassaying and hallmarking centreshas grown to 41 from 36.

Management System Certification

8.7 BIS continued to provide thefollowing Certification services asper International/Nationalstandards for managementsystems:

a) Quality ManagementSystems (QMS) CertificationScheme as per IS/ISO9001:2000

b) Environmental ManagementSystems (EMS) CertificationScheme as per IS/ISO14001:2000

c) Hazards Analysis & CriticalControl Point (HACCP)Scheme as per IS15000:1998

d) Occupational Health & SafetyManagement Systems(OH&SMS) CertificationScheme as per IS 18001:2000



For the promotion of variousManagement Systems Certification(MSC) schemes, a number ofappreciation programmes wereconducted and presentation was alsomade in various organizations. In orderto obtain feedback from the clients, 5review meetings of QMS/EMS were alsoconducted during the year.

Quality Management SystemsCertification Scheme

8.8 BIS Quality Management SystemCertification Scheme (QMSCS) waslaunched in September 1991 underthe provisions of the Bureau ofIndian Standards Act, 1986. TheScheme is being operated inaccordance with ISO/IEC Guide 62- General requirements for bodiesoperating assessment andcertification/registration of qualitysystems.

8.9 The Scheme continued to growand during 2006-07, 37 QualityManagement Systems Certificationlicences have been granted makinga total of operative licences to 1267as on 31 December 2006 coveringindustrial sectors such as chemicals,textiles, plastic, cement, electricals,pharmaceuticals, banking sector,telecommunications, health sector,construction, education, wood,insurance, dairy plants, engineeringservices etc

Accreditation of BIS QualityManagement Systems CertificationSchemes

8.10 BIS Quality Management SystemCertification has been accreditedby Raad voor Accreditatie (RvA),Netherlands for 23 major economicactivities. The scheme is regularlyaudited by RvA to confirmcompliance to the laid downrequirements. Based on thereassessment by RvA on 1 - 13 June,2005, the accreditation has beenrenewed by RvA up to October2009.

8.11 Besides RvA accreditation, BISQMSCS has also been accredited byNational Accreditation Board forCertification Bodies (NABCB) ofQuality Council of India (QCI) for 9economic sectors. Theaccreditation has been effectivefrom 22 Dec' 05 and is valid upto21 December 2008. BIS is furthertaking up with QCI to includeadditional scope sectors in theiraccreditation certificate.

Hazard Analysis and Critical ControlPoint Certification

8.12 Hazard Analysis and Critical ControlPoint (HACCP) is a process controlsystem designed to identify andprevent microbial and otherhazards in food production. HACCPcan be applied throughout thefood chain from primary producer



to final consumer. This scheme isbased on IS 15000:1998 - 'FoodHygiene - HACCP Systems andGuidelines' which is technicallyequivalent to the CodexAlimentarius Commission StandardALINORM - 97/13A, theInternational Standard on thesubject. During the period 2licenses have been granted underthe HACCP Integrated QualityManagement Systems CertificationScheme making a total of operativelicences to 66 as on 31 December2006. The process followed forcertification is similar to the processof QMSCS. This scheme will helpthe exporters in the field of foodand food products specially forexport to the countries like USAand EUROPE. BIS also offers astandalone HACCP CertificationScheme as per IS 15000.

Environmental Management SystemsCertification Scheme

8.13 The Environmental ManagementSystems (EMS) CertificationScheme launched by BIS as per IS/ISO 14001, continues to be popular.During the period,15 EMS licenseshave been granted making a totalof 120 operative licenses as on 31December 2006. These licensescover technology areas likeintegrated steel plants, thermalpower plants, aeronauticalindustries, atomic power stations,

textiles, plastic, cement,construction, electrical andtelecommunication cables,petroleum refinery, insecticides,industrial and explosive chemicals,railway wagon workshops, miningetc.

8.14 The EMS Certification Scheme isoperated as per Internationalcriteria laid down in ISO/IEC Guide66. BIS has applied to NABCB of QCIfor accreditation of its EMSCertification Scheme. Documentaudit has already been completedwith NABCB and office assessment/witness audit is being planned innear future.

Occupational Health &SafetyManagement Systems CertificationScheme

8.15 BIS launched Occupational Healthand Safety Management Systems(OH&SMS) certification as per IS18001:2000, in January 2003, whichessentially enables an organizationto define, plan and manage a policyand objectives, taking into accountlegislative requirements andinformation about significanthazards and risks, which theorganization can control or overwhich it can be expected to havean influence so as to protect itsemployees and others, whosehealth and safety may be affectedby the activities of the organization.During the period, 4 OH&SMS



licenses have been granted makinga total of operative licences to 28as on 31 December 2006. Thelicences cover technology areaslike thermal power plants, ceramicindustry, cycle industry, gas powerstation, health services andemployee development centre.

8.16 It may be mentioned that IS 18001is the first National standard worldwide on the subject which isamenable to certification.

Certification of Govt. Organization forService Delivery

8.17 The Quality Management SystemsStandard IS/ISO 9001 provides ageneric framework fororganizations to ensure quality ofservice/products. In order todevelop a new mechanism forcertifying service delivery bygovernment organizations, asdesired by Deptt. of AdministrativeReforms and Public Grievance(DARPG), BIS has recentlypublished an Indian Standard onService Quality by Public ServiceOrganization namely IS 15700:2005Quality Management Systems -Requirements for services deliveryby public service organizations.

8.18 Before finalizing this standard, itwas widely circulated to allinterested organizations includingabout 90 Central Govt. Ministries/departments and their comments

were suitably incorporated. This isa generic standard and lays downQuality Management performancerequirements for public serviceorganization. Further, theorganization implementing thisstandard can be certified by Bureauof Indian Standards. This standardfocuses mainly on the following 3key elements:

l Formulation of a realisticCitizen's Charter through aconsultative process,

l Identification of servicesrendered, Service deliveryprocesses, their control anddelivery requirements,

l An effective process forcomplaints handling

8.19 DARPG has drawn up a roadmapfor implementation of this standardin government department andten departments have been initiallyidentified to implement thisstandard and achieve certificationduring 2006-07. BIS has alreadyidentified and trained about 50auditors all over India who wouldbe certifying the Govt. departmentas and when they are ready.

New Scheme(s) Launched

8.20 BIS has launched Food SafetyManagement System (FSMS) as perIS/ISO 22000:2005. This system isdesigned to allow all types oforganizations within the food chain



to implement a food safetymanagement system & is a littlemore comprehensive compared toHACCP system.

Laboratory activities

8.21 BIS has established eightlaboratories beginning with theestablishment of CentralLaboratory, Sahibabad in 1962,whereafter, four regionallaboratories were established atMohali, Kolkata, Mumbai andChennai and three branch officelaboratories at Patna, Bangaloreand Guwahati. The purpose ofestablishing BIS laboratories is tosupport the activities of BISproduct certification marksscheme wherein the samplesgenerated from the licensees/applicants and also from the openmarket are tested. The Centrallaboratory, regional laboratoriesand the branch office laboratory atBangalore have facilities fortesting of products in the field ofchemical, food , electrical andmechanical discipline. In- housecalibration facilities in the filed ofelectrical disciplines are alsoavailable in some of theselaboratories. Approximately30000 test reports are beinggenerated out of the testingconducted in BIS laboratoriesevery year. During the current year19494 test reports have been

generated up to 31 December2006.

8.22 In order to ensure that BISlaboratory services are keepingpace with the developments at theInternational level, the laboratoriesat Mumbai, Kolkata, Chennai,Mohali, Bangalore and Sahibabadhave been accredited by theNational Accreditation Board forCalibration and TestingLaboratories (NABL) as per theinternational standard IS/ISO/IEC17025.

8.23 As the volume of workload fortesting of samples generated fromproduct certification scheme ismuch larger, BIS has established ascheme of recognition of outsidelaboratories. The scheme is basedon well documented internationalnorms (IS/ISO/IEC 17025:2005)which is inline with the normsadopted by the NationalAccreditation Board for Calibrationand Testing Laboratories (NABL).The recognized labs include thereputed R&D organizations,technical institutions, Govt labs andPrivate sector labs. The services ofsuch laboratories are generallyutilized where it is economicallynot viable to develop test facilitiesin BIS laboratories, or when there isa heavy rush of samples. So far 116outside laboratories have beenrecognized under this scheme.During the current year two



laboratories have been grantedrecognition.

8.24 BIS laboratories are organizingtraining programme on producttesting for BIS licensees regularlywith the purpose of upgrading thecapabilities of testing personnelemployed in the industry,particularly in the small and tinysectors. Around 12 programmesare being conducted every year.

ENFORCEMENT

8.25 In its endeavor to sustain thepopularity of its Standard Mark,BIS has strengthened itsenforcement activities. It organizesenforcement-cum-consumerawareness drives throughout thecountry in order to educate thecommon consumer about theirrights, benefits of purchasingcertified goods and different formsof misuse of its Standard Marknormally adopted bymanufacturers/suppliers, so thatthe consumer can distinguishbetween a genuine mark and aforged one. 120 search & seizureswere also conducted for misuse ofthe Standard Mark and otherviolation of BIS Act during April toDecember 2006.

8.26 To further strengthen and increasethe effectiveness of enforcementraids, the activity has been partiallyoutsourced in the National Capital

Region and 7 major cities viz.,Mumbai, Chennai, Kolkata,Bangalore, Hyderabad,Ahmedabad and Jaipur.

CONSUMER RELATED ACTIVITIES

8.27 To meet the growing expectationsof consumers in the country, BIS hascreated a separate departmentwith a mandate to provideconsumer protection and welfareand deal with public grievances.This department maintains closeliaison with the Central ConsumerProtection Council and consumerassociations, and co-ordinates withthe Ministry of Consumers Affairs,Food and Public Distribution onconsumer issues. It is guided in itsactivities by a Consumer PolicyAdvisory Committee which advisesBIS on all policy matters relating toefficient discharge of functions andmaking standardization andcertification activities user-friendly.A well-defined procedure has beenestablished for handlingcomplaints. The complaintsregistered are monitored regularly.

8.28 BIS organizes a large number ofawareness programmes for officebearers of Consumer Organizationsand for consumers, all over thecountry. During the period 96consumer awareness programmeswere organized. Such programmesare also conducted jointly with



Industry / Trade Associations /Educational Institutions andConsumer related departments ofState and Central Government,besides participating in Seminars,Workshops and Conferences.Exhibitions are also organized.Mass media like TV, Radio, otherelectronic media, Newspapers,hoardings etc. are beingextensively used to createawareness among consumersregarding Standards, Quality andISI mark.

PROMOTIONAL ACTIVITIES

8.29 Promotion of Indian Standardsassumes great significance and hasbeen a prime objective of BIS. Thebulk of standards are voluntary innature. Promotional activities are,therefore, essential to implementthe standards for deriving thedesired benefits. Promotion ofstandardization involves variedinterests ranging from ordinaryconsumers to educationalinstitutions. Appropriate strategiesare therefore adopted for thisactivity for the identification ofusers vis-à-vis their needs. Topropagate the concept ofstandardization and qualitysystems among small scaleindustries, BIS organizes awarenessprogrammes comprising oflectures, discussions and video filmshows where the participants are

exposed to the concepts ofstandardization, quality system,product certification and other BISactivities.

8.30 The implementation ofStandardization is monitored in thestates through state levelcommittees (SLCs), comprising ofState Government officers,members of industry associations,consumer organizations andorganized purchase agencies. Statelevel committees meet at suitableintervals and assess the level ofstandardization in their states andalso promote the implementationof standards and certificationschemes of BIS. A number of IndianStandards have been adopted asthe basis for purchase and otheractivities by the State Governmentsand other agencies, as a result ofclose interaction and persuasion bythe Bureau through SLCs. Manymajor purchasing organizationslike Directorate General of Suppliesand Disposal (DGS&D), RailwayDesign and StandardsOrganization (RDSO) and Defencehave well defined procedures foradoption of Indian Standardsrelevant to their operations.During the period meetings ofSLC's for the states of Uttranchal,Mizoram. Gujarat and Tamil Naduwere organized.

8.31 The students of technical andprofessional institutions are the



secondary users of standards andthey need to be educated in thefields of standardization andquality systems, so that they arewell equipped to introduce qualityin goods and services to bedelivered by them. Recognizingthis, regular Programmes onEducational Utilization ofStandards are conducted with thespecific aim to propagate themessage of standardization and tocreate awareness about latestIndian Standards in various fields,amongst the faculty members andsenior students. The facultymembers when properly sensitizedabout the importance andavailability of standards, have beenfound to be instrumental inimplementation of standards.During the period five programmeshave been organized.

Rajiv Gandhi National Quality Awardsfor year 2006

8.32 With a view to encourage Indianmanufacturing and serviceorganizations to adopt system

that will bring a significantimprovement in quality, RajivGandhi National Quality Awardswere instituted by the Bureau ofIndian Standards in 1991 with theapproval of Government of India.The applications for the thirteenthset of Rajiv Gandhi NationalQuality Awards for year 2006 wereinvited in April 2006. A total of 61applications were received fromvarious manufacturing and serviceorganizations. The 38 applicantsshort listed after preliminaryscreening were paid fact findingand evaluation visits, by fourregional evaluation committeesconstituted by the NationalAwards Committee, during August- October 2006. The awardwinners and recipients ofcommendation certificates for2006 awards were finalized in thethirteen meeting of NationalAwards Committee held on 30October 2006. Four awards andten commendation certificateswere given in a function held inFebruary 2007.



Hon'ble Minister of State for Agriculture, Consumer Affairs, Food &Public Distribution, Shri Taslimuddin Ji releasing the 29 Standards in

14 technological areas encompassing Natural Gas Pipeline Systems fortransmission of gases formulated under a project sponsored by GailIndia Ltd., with Shri Yashwant Bhave, Secretary (CA) and Smt. Alka

Sirohi, Additional Secretary (CA) & DG (BIS).

Hon'ble Minister of State for Agriculture, Consumer Affairs, Food &Public Distribution, Shri Taslimuddin Ji presenting the category awardfor Small Scale manufacturing organization for Rajiv Gandhi National

Quality Awards, 2006 to Smt. Saroj G Worke, Director IT &Management - Nasik.



All awardees of Rajiv Gandhi National Quality Awards, 2006 with Dignitaries sitting on dias [ from leftto right - Shri Rakesh Verma, ADG (Tech.), BIS; Smt. Alka Sirohi, Additional Secretary (CA) & DG (BIS);

Hon'ble Minister of State for Agriculture, Consumer Affairs, Food & Public Distribution, ShriTaslimuddin Ji, Shri Yashwant Bhave, Secretary (CA), Dr. U.D. Choubey, Chairman-cum-Managing

Director (GAIL) and Shri Y.P. Singh, ADG(Marks), BIS]

LIST OF AWARD WINNERS

BEST OF ALL AWARD Steel Authority of India Limited - Bhilai SteelPlant, Bhilai

CATEGORY AWARDSLarge Scale Manufacturing Industry Lucas-TVS Limited, ChennaiLarge Scale Service Industry Nipuna Services Limited, HyderabadSmall Scale Manufacturing Industry Himedia Laboratories Private Limited, Nasik

COMMENDATION CERTIFICATESLarge Scale Manufacturing Industry

Industrial Sector

Chemical Mangalore Refinery and PetrochemicalsLimited, Mangalore

Electrical and Electronic Hindalco Industries Limited - RenusagarPower Division, Sonebhadra

Engineering and Others J.K. Industries Limited - Banmore TyrePlant, Morena



Metallurgical Steel Authority of India Limited - BokaroSteel Plant, Bokaro

Textile Rajasthan Spinning and Weaving Mills Limited, Unit - Banswara, Banswara

Small Scale Manufacturing Industry

Industrial SectorElectrical and Electronic Fine Switchgears, PhagwaraEngineering and Others Hycount Plastics and Chemicals, KollamFood & Drug Pravin Masalewale, Works II, Daund, Pune

Large Scale Service Industry

Industrial Sector

Others Indian Oil Corporation Limited - MathuraJalandhar Pipeline Bijwasan, New Delhi

Small Scale Service Industry

Industrial Sector

Others Vaccine Center, Coimbatore

8.33 Marching further ahead on the pathof 'total customer satisfaction', BIShad set up a single-windowInformation & SSI Facilitation Cell atits headquarters in New Delhi whichbecame operational since 1997 withthe sole aim of providing variety ofinformation /assistance to Indianindustries, particularly in Small ScaleSector, which happens to be thebackbone of Indian Industrial Scene.A number of entrepreneurs,consumers and professionals visitthis centre for their quarries.

INFORMATION SERVICES

Library

8.34 BIS Technical Library is a nationalresource centre for information on

standards and related matters andmeets the needs of industry, trade,government, researchers andconsumers alike. It is today thelargest library of standards in theSouth Asian Region, covering a floorarea of 1000 square meters. Thecollection includes about 6 lakhstandards from all over the worldand 50 000 technical books. TheBureau's library system comprisesthe Headquarters' Library (NewDelhi) and four Regional OfficeLibraries at Mumbai, Kolkata,Chandigarh and Chennai. Referenceservices were provided to 2611visitors by way of preparing 04exhaustive subject bibliographiesand making available, the referencematerials of their choice. The



reference unit fully supported thestandards formulating departmentsby providing the bibliographies. Itassisted the Indian Trade andIndustry by answering 1267 longand short range queries as receivedfrom them. The Library continued tosupply basic information for theupdation of mechanized databaseof World Standards called"Manaksandarbhika" maintained byInformation Technology ServicesDepartment. All the standardsreceived here were codified as inputfor the database which nowcomprises above 3 lakh and 45,668records.

CE Marking information Centre

8.35 To facilitate Export of products toEU countries, an information centrehas been established at BIS.Through this information on CEMarking on EU legislation,directives and procedure is beingdisseminated to Indian industries.

Technical Information Services Centre

8.36 Technical Information ServicesCentre (TISC) was set up in 1992 atNew Delhi to provide informationon standards, technical regulationsand certification systems services.BIS has also been designated asWTO/TBT Enquiry Point by theMinistry of Commerce, Govt. ofIndia under the Technical Barriersto Trade Agreement of World Trade

Organization. In this endeavor,more than 550 enquiries wereresponded during the period.

This centre also provides followingservices:

a) Clarifications on items falling underDGFT Notification no. RE 44.

b) Issuance of World ManufacturerIdentifier (WMI), Issuers IdentificationNumber (IIN), Registered ApplicationProvider Identifier (RID), InstitutionIdentification Codes (IIC) number inaccordance to respective ISOstandards

TRAINING SERVICES

Training Institute

8.37 To impart training to technical andmanagement personnel fromindustry, consumer organizations,Public Sector Undertakings, GovtBodies and Developing Countries,BIS has established the NationalInstitute of Training forStandardization and QualityManagement (NITS) as a residentialInstitute at Noida.

Training to overseas Participants

8.38 BIS has been organizing theInternational Training Programme inStandardization and QualityAssurance for developing countriesof Asia, Africa, Europe and LatinAmerica every year since 1968. TheGovernment of India offers limited



number of fellowships to thenominees of many developingCountries under its TechnicalAssistance Plans for attending theprogramme. So for 38 suchprogrammes have been organized.The 3rd International TrainingProgramme on ManagementSystems for Developing Countrieswas organized at NITS, Noida from 04Sep - 29 Sep 2006 which wasattended by 22 participants from 17countries. The 39th InternationalTraining Programme onStandardization and QualityAssurance for Developing Countrieshas concluded on 8 December 2006.43 participants from 27 countriesparticipated in this programme.

New initiatives

MoUs Signed by NITS

l A Memorandum of Understandingwas signed by NITS, BIS and ISO(International Organization forStandardization) for cooperation inorganizing training programmeson behalf of ISO.

l DG BIS signed a Memorandum ofUnderstanding with SVP NationalPolice Academy, Hyderabad forcooperation in organizing trainingson subjects of mutual interest. TheMoU was signed at Hyderabad on26 Aug 2006. NITS and SVP NationalPolice Academy, Hyderabad jointlyconducted a 3-day "Workshop on

Quality Management forImproving the Delivery of PoliceService to the People" atHyderabad from 24 to 26 Aug 2006.The Workshop was attended by IPSofficers nominated by StateGovernments. DG BIS delivered theValedictory Address.

Training Programmes organized forthe first time

l As per the directions of Departmentof Consumer Affairs, Ministry ofConsumer Affairs, Food and PublicDistribution, the first trainingprogramme of 2 days duration onConsumer Protection for DistrictMagistrates was organized on 25-26May 2006 at NITS, Noida which wasattended by 16 officers from 10States. The programme wasinaugurated by Justice M.B. Shah,President, NCDRC. Shri L. Mansingh,the then Secretary, Department ofConsumer Affairs, chaired theconcluding session of theprogramme.

l For the first time a Workshop wasorganized for the participants fromindustry on preparing for RajivGandhi National Quality Awards -2006 on 15-16 June 2006 atBangalore.

l First Training programme onMeasurement of CustomerSatisfaction was organized during7-8 June at NITS Chennai.



l For the first time 3 openprogrammes on Measurement ofUncertainty were conductedseparately in 3 different fields, i.e.,Electrical, Mechanical andChemical.

l First Open Programme of two daysduration on Method Validation wasorganized on 30-31 Oct 2006 atNITS, Noida.

Training for representatives ofConsumer bodies

8.39 NITS is also conducting trainingprogrammes on ConsumerProtection for State and Districtlevel officials of Consumer Forums.

Other Training Programmes

8.40 BIS organized trainingprogrammes for industrypersonnel in the field of statisticalquality control, quality systemdocumentation, quality systemauditing, enhancing managementrepresentatives skills, awarenessprogramme on standardizationand quality system, producttesting etc. About 53 such opentraining programmes have beenorganized between April toDecember 2006.

INTERNATIONAL ACTIVITIES

8.41 Since its inception in 1947, the thenISI and now BIS has been an active

member of InternationalOrganizations namely: InternationalOrganization for Standardization(ISO) and International Electro-technical Commission (IEC). Itparticipates in various policy-making committees of theseinternational standards bodies. BISalso holds secretariat of some of theimportant ISO/IEC Committeeswhich are of trade interest to India.As member of ISO, BIS also takesactive part in the development ofInternational Standards with a viewto protect the interests of Indiantrade & industry.

8.42 India is a certifying member of theIEC System of Quality Assessmentof Electronic Components (IECQ).

8.43 BIS is actively involved in Regionaland Bilateral CooperationProgrammes pertaining tostandardization, conformityassessment & accreditation etc.

South Asia Regional Seminar on FoodSafety Management Systems and ISO22000 held during 10-11 August 2006at Hotel The Ashok, New Delhi.

8.44 As part of DEVT's efforts todisseminate the new ISO 22000standard on food safety managementsystems at regional and sub-regionallevel worldwide, a two day seminarwas held in New Delhi, India for theSouth Asian sub-region during 10-11August 2006 and organized by the



Bureau of Indian Standards(BIS).Among the200 participants wereregional guests from Afghanistan,Bangladesh, Bhutan, Iran, Maldives,Nepal and Sri Lanka. Financing forparticipation by regional memberbodies for the event was provided byISO's Funds- in - Trust within theframework of ISO's five year actionplan for developing countries.Participation from Maldives wassponsored by UNIDO. The participantsfrom India included manufacturers,hospitality industry, suppliersregulators, auditors and consumers.The main speaker for the two dayseminar was Dr. Martha Petro Turza,Former Secretary ISO/TC 34.

8.45 The seminar was inaugurated byMr. L. Mansingh, Secretary, Ministryof Consumer Affairs, Food & PublicDistribution, Government of India.In the inaugural session theimportance of internationalstandardization was highlightedby Dr. Bernardo CalzadillaSarmiento, Secretary DEVCO. Therepresentative of UNIDO Mr.Padikakudi informed about thetechnical assistance provided byUNIDO to various LDCs in the areaof food safety. Further Dr. V. Prakashan eminent Indian Food Scientistin his address emphasized theneed of healthy and safe food andthe role of ISO 22000 in managingthe vast food sector. The seminarconcluded with a positive note

to implement food safetymanagement systems throughunified regulations.

South Asia Regional Seminar on Food SafetyManagement Systems and ISO 22000

held during 10-11 August 2006 at Hotel Ashoka,New Delhi.

Shri L. Mansingh, the then Secretary (CA)addressing the SAR Seminar

Seminar on "Information TechnologyStandardization - Challenges and Wayforward in Converged W orld"

8.46 Bureau of Indian Standardsorganized one day Seminar on"Information TechnologyStandardization - Challenges andWay forward in Converged World"on 21 Feb 2007 at Hotel Taj



Mansingh, New Delhi. The objectiveof the seminar was to createawareness about IT standardizationat national and international level,problems and issues surrounding ITstandardization and to have somecommon implementable solutions.The seminar was attended byaround 125 delegates representingvarious interests groups of IT field.The seminar was inaugurated byShri Yashwant Bhave, Secretary,Deptt. Of Consumer Affairs, Ministryof Consumer Affairs, Food & PublicDistribution. In his inauguraladdress, Shri Bhave stressed uponthe need for evolving IT standardsat a fast speed in order to keep pacewith the dynamic changes in thetechnology taking place in this field.Smt. Alka Sirohi, Director General,BIS in her address invited IT industryand all the stakeholders toparticipate in the formulation ofeffective and useful IT standards inthe emerging technology areas forthe growth of country Mr. CraigMundie, Chief Research andStrategy Officer, MicrosoftCorporation delivered the key noteaddress. He laid emphasis on theimportance of interoperability in theIT Standards for their effectiveimplementation. BIS has alsodeveloped a new fast track process

National Seminar on Standardizationin Oil & Gas Sector

Bureau of Indian Standards organized aSeminar on "Standardization in Oil & GasSector" on 14th February 2007 in NewDelhi.

Mr. Craig Mundie, Chief Research and StrategyOfficer, Microsoft Corporation delivered the key

note address at the Seminar on "InformationTechnology Standardization - Challenges and Way

forward in Converged World"

Bureau of Indian Standards organized a Seminaron "Standardization in Oil & Gas Sector" on

14th February 2007 in New Delhi.

for development of standards in ITfield in consultation andconsonance with IT industry.



ISO General Assembly meeting atOttawa, Canada

8.47 An Indian delegation led by Shri L.Mansingh, the then Secretary,Deptt of Consumer affairs, Ministryof Consumer Affairs, Food andPublic Distribution attended the40th meeting of DEVCO and 29thmeeting of ISO General Assemblyduring 11-15 September 2006 atOttawa, Canada. On the sidelines ofthe meeting an MOU with ISO wassigned on 13th September 2006 touse NITS, BIS as regional trainingcentre of ISO for hosting regionaltrainings, seminars etc. AnotherMOU with ANSI was also signed on13th September for exchange ofinformation on standards andconformity assessment.

Standardization (ISO) visitedBureau of Indian Standards (BIS),New Delhi, India on 6th Nov2006. During his visit, aninteractive workshop wasorganized on "InternationalStandardization: ISO and itsworking post - WTO Scenario".The workshop was attended byrepresentatives of industry,regulators, Ministry officials,Senior BIS officials and otherstakeholders. Need for India toparticipate more actively ininternational standardizationactivity was emphasized. It wasalso strongly emphasized thatthere is a need to strengthenSAARC region so that the regionalview on issues related to variousISO technical committees couldbe presented forcefully.

MOU signing with ISO by the then Secretary (CA)Shri L. Mansingh and ISO Secretary General.

Visit of ISO President, Prof MasamiTanaka

8.48 Prof. Masami Tanaka, President,International Organization for

Prof. Masami Tanaka. President,International Organization forStandardization (ISO) visited

Bureau of Indian Standards (BIS), New Delhi,India on 6th Nov, 2006.



BIS signs MOU with Afghan NationalStandardization Authority (ANSA)

8.49 A Memorandum of Understanding

(MOU) between Bureau of Indian

Standards & Afghan National

Standardization Authority was

signed on 10 April 2006 at New

Delhi .The MOU was signed by Shri

Mr Svayam Prakash Sharma,

Director General, Bureau of Indian

Standards on behalf of BIS and

Abdul Hai Khurasani Charge d,

Affaires Embassy of Afghanistan on

behalf of ANSA in the presence of

Hon'ble President of Afghanistan

Mr Hamid Karzai and Dr

Manmohan Singh Hon'ble Prime

Minister of India .

The MOU will facilitate closercooperation and provide amechanism by which the BIS &

ANSA would work togethertowards the common aim ofstrengthening standardization,certification, measurement andtesting activities and facilitatesharing of expertise and exchangeof scientific and technicalinformation on issues relating tostandardization.

BIS signs MOU with Sri LankaStandards Institute (SLSI)

8.50 Bureau of Indian Standards (BIS)has entered into a bilateralcooperation agreement with itscounterpart in Sri Lanka, Sri LankaStandards Institution (SLSI). Theagreement was signed byMr.S.P.Sharma, Director General BISand Mrs. S.G. Weragoda, DirectorGeneral, SLSI on 17th August 2006at Colombo, Sri Lanka.

This agreement envisagescooperation with regard to servicesin the field of standardization andconformity assessment with an aimto facilitate the market access toeach other's territory.

CE Marking

8.51 CE mark is a kind of trade passportfor entry of goods to EU consistingof 30 countries in the EuropeanEconomic Area (EEA). CE marking ismandatory for wide range ofproducts covered under many EUdirectives.

The MOU was signed by Shri Svayam PrakashSharma, former Director General, Bureau of

Indian Standards on behalf of BIS and Abdul HaiKhurasani Charge d’ Affaires Embassy of

Afghanistan on behalf of ANSA in the presence ofHon'ble President of Afghanistan Mr Hamid

Karzai and Dr Manmohan Singh Hon'ble PrimeMinister of India.



8.52 As part of implementation of theproject EU-India TIDP funded byEuropean Union, an InformationCentre on CE marking has been setup at BIS to facilitate exporters/manufacturers getting rightinformation quickly. A group ofofficers from BIS, STQC and EIC hadundertaken study visit to some ofthe organizations responsible foroperating the CE marking systemin Europe. Most of the informationrelated to CE marking has beenprovided through a link to BIShome page. Indian industriesparticularly small and mediumenterprises (SMEs) who would beinterested in exporting products,may find the information useful.Further information on specificquery are also being attended fromthis Information Centre.

International training programme atNITS, Noida - Thirty-NinthInternational Training Programme OnStandardization And QualityAssurance For Developing Countries

8.53 Bureau of Indian Standards (BIS)has been organizing InternationalTraining Programmes onStandardization and QualityAssurance for the DevelopingCountries of Asia, Africa, Europeand Latin America every year since1968. To take care of training needsof Industry, BIS had set up theNational Institute of Training for

Standardization (NITS) in 1995.Since then, this programme isbeing conducted by NITS. Thethirty ninth programme wasconducted during 16 October - 08December 2006. The Governmentof India offers limited number ofFellowships to the nominees ofmany Developing Countries underits Technical Assistance Plans forattending the programme. Besidesthe fellowships, some seats are alsoavailable on Self-Financing basis inwhich case the expenditure is meteither by the sponsoringgovernments or by the candidatesthemselves. 42 participantsattended this programme from 27countries

A participant in the NITS training programmebeing felicitated by Smt. Alka Sirohi, AdditionalSecretary (CA) & Director General, Bureau of

Indian Standards

Third International TrainingProgramme On Management SystemsFor Developing Countries

8.54 Based on the wide demand fromvarious developing countries, NITS



from these activities is given inTable - 3.

PUBLICITY

8.56 BIS continued to publicize itsactivities through sustained use ofmass media. Publicity activitiestargeted at common consumerswere executed in Hindi andregional languages through radiospots, bus panels, hoardings, etc.Interviews and talks of BIS officialswere telecast and broadcast fromvarious stations of All-India Radio,Doordarshan Kendras and privateTV networks. Monthly andquarterly bulletins and newsletterssuch as Standards India, EC NormScan, 'IT - Standards' etc werebrought out regularly to keep theconcerned interests informed onthe developments instandardization at national andinternational level in specific fields.

8.57 BIS participated in a number ofexhibitions/fairs in order to

started the International TrainingProgramme on ManagementSystems forDeveloping Countriesduring 2004 to cater to the needsof middle level executives of anorganization. The third programmewas held during 04 - 29 September2006 and was attended by 22participants from 17 countries.

A participant in the NITS training programmebeing felicitated by Shri Yashwant Bhave,

Secretary (CA)

Table - 3

Progress of Revenue Mobilization(Rupees in crores)

Sl.No. Activities Progress during2005-06 Apr- Dec 2006

1. Certification (incl. hallmarking) 112.235 95.43

2. Training Institute 1.750 2.19 *

3. Sale of BIS Publications 6.592 1.99

Total 120.577 99.61

* Includes notional income accrued on account of training of BIS officers/staff.

REVENUE MOBILISATION

8.55 BIS derives its income mainly fromcertification, training institute andsale of Indian standards. Theprogress of income mobilization



increase awareness among theconsumers about the benefits ofstandardization. It also organizedconferences and seminars all overthe country to highlight the workundertaken in the field ofstandardization and qualitysystems.

VIGILANCE ACTIVITIES

8.58 The Vigilance Departmentconducted vigilance audits ofBranches of Marks Department atMumbai, Hyderabad, and Jaipurand Western Region OfficeLaboratory. During these audits,meetings with BIS licensees/applicants, industry associationsand consumer organizations atWestern Regional Office, Mumbai;and Hyderabad Branch Officewere organized to elicit directfeedback regarding complaints, ifany; on the conduct and behaviorof the BIS employees; suggestions/feedback for improvement in theBIS-licensee relations; and BISsystems/procedures to makethem more simple, objective andtransparent.

8.59 A number of grey areas in variousnorms, practices and systems werealso identified during these auditsand suggestions for improvement

were given to the concernedActivity Heads in BIS. A number ofsurprise inspections of the licenseeunits, particularly of packageddrinking water, were also carriedout during these audits and as aresult of these inspections, somelicences were put under stopmarking and a few more wereprocessed for cancellation. Besides,vigilance investigations wereinitiated on instances ofirregularities/non-compliance ofprocedures against variousconcerned officials from the abovecases. Further, comments onprovisions of different IndianStandards, particularly, IS14543:2004 Packaged DrinkingWater, were forwarded forconsideration of the concernedTechnical committees of theBureau.

8.60 Vigilance Audit of five licenseeunits of electrical goods, coveredunder mandatory certification,located in China and operating BISlicences under the ForeignManufacturers' CertificationScheme of BIS, were carried out bythe CVO for the first time ever inOctober 2006. Recommendationsfrom these audits have been put upto the Competent Authority in BISfor consideration.


WEIGHTS & MEASURES

WEIGHTS & MEASURES

CHAPTER - IX

9.1 The Weights and Measures laws inthe country are enforced throughthe Standards of Weights andMeasures Act, 1976 and theStandards of Weights andMeasures (Enforcement) Act,1985. Through these legislations,the Government ensures that allweight or measure used for tradeor commerce, for industrialproduction or for protection ofhuman health and safety areaccurate and reliable so that usersare guaranteed of theirperformance. This in turn enablesthe consumer to get the rightquantity/quality which he has paidfor. With the developments in thefield of Science & Technologycoupled with economicliberalization policy being pursuedby the Government, a number ofstate-of-art weighing andmeasuring instruments are beingintroduced in the Indian marketrapidly. To accommodate thesenew types of weights or measures,their specification also needs to beadopted/updated. TheDepartment has set in motion theprocess of incorporating new

specifications in General Rules, inalignment with therecommendations made by theInternational Organizations ofLegal Metrology (OIML).

9.2 The Weights and Measuresregulation in India also regulate thesale of commodities in “pre-packedform”. The Standards of Weightsand Measures (PackagedCommodities) Rules, 1977 requiremandatory declaration of certainbasic information on the packagesto safeguard the interest ofconsumers. The Rules also requireimporters to provide certain basicdeclarations on importedpackages, similar to those forindigenous packages.

A view of the dias during Goverment and IndustryMeet on amendments in Standards of Weights andMeasures (Packaged Commodities Rules), 1977

held on 26 December, 2006 in New Delhi



Indian Institute of Legal Metrology,Ranchi.

9.3 To impart training to theenforcement officials of Weightsand Measures, the Institute hasbeen running a four months basic-training course as also workshopsand seminars of shorter durationon specific topics to update theknowledge of the enforcementofficers on the latest developmentsin the field of legal Metrology. TheInstitute has been conductingtraining seminars on ConsumerProtection for the non-judicialmembers of the State Commission,Districts Forum set up under theConsumer Protection Act. On anaverage, the Institute trains about200 personnel a year.

Regional Reference StandardsLaboratories and Indian Institute ofLegal Metrology

9.4 The Central Government hasestablished 5 Regional ReferenceStandards Laboratories (RRSL) at

Ahmedabad, Bangalore,Bhubaneswar, Faridabad andGuwahati. These RRSLs serve as avital link in dissemination of thevalues of national standards of mass,length, volume etc. down to thecommercial level. During the 10th

Load cell Testing Facility at Regional ReferenceLaboratory at Faridabad

Five year plan, the Department hastaken up schemes to modernize theRRSLs at Ahmedabad, Bhubaneswar,Bangalore and the Indian Instituteof Legal Metrology at Ranchi whichprovides training to theenforcement officials of the Statesand UT s. The construction of a newlaboratory building for RRSLGuwahati is likely to be completedshortly.

9.5 Apart from the statutory obligationof verification of legal standards ofthe States and conducting modelapproval tests of weights ormeasures, the RRSLs rendermetrological services to industriesby undertaking calibration of theirweighing and measuringinstruments. Each laboratory on an

Visit of German delegates to Regional ReferenceStandard Laboratory at Faridabad (UP)


WEIGHTS & MEASURES

average provides calibrationservice to about 200 industries inthe region.

9.6 Assistance is also being provided toState Governments to upgrade andmodernize their workingStandards Laboratories andsecondary standard laboratories

with modern equipment under theScheme of “Strengthening of LegalMetrology wing of the States andUTs in the country” with an outlayof Rs.24.72 crores. Under theScheme, Rs. 6.78 crores have beengiven as “grant-in-aid” for purchaseof standard balances.


National Test House

NATIONAL TEST HOUSE

CHAPTER - X

Introduction :

The National Test House (NTH) under theadministrative control of Ministry ofConsumer Affairs, Food & PublicDistribution, Department of ConsumerAffairs, Govt. of India, is a premierScientific Institution of the country. It wasestablished way back in 1912 under thethen Railway Board and since then it hasgrown into a Laboratory of Nationalimportance in the field of Testing,Evaluation and Quality-control of variousengineering materials and finishedproducts. It is actively involved in allaspects of technology connected withindustry, commerce, trade andstandardization.

Functions :

10.1 The main functions of the NTH areas under :-

(i) Testing and evaluationof materials, products,equipments, apparatus andsystems in practically allbranches of Science andTechnology except for food,pharmaceuticals, arms andammunitions.

(ii) Research and Developmentin testing and measurementtechnology and related areasincluding consultancy, forfailure analysis and alliedproblems.

(iii) Helping industries indeveloping indigenousproducts for importsubstitution and in their qualityassurance programmes.

(iv) Calibration at the level ofEchelon-II and maintenanceof proper standards andreference in areas of itscompetence.

(v) Assisting the 'NationalAccreditation Board forTesting and CalibrationLaboratories' (NABL) inaccreditation of the testingand calibration laboratories.

(vi) Association with Bureau ofIndian Standards (BIS) forevolving of national andinternational specificationsand standards.

(vii) Training of Scientists,Technologists & Techniciansin 'Testing and MeasurementTechnology'.



(viii) Providing Welders' Certificatesto the prospective candidates,after they are being dulyexamined in the field.

10.2 NTH charges fees for the servicerendered by it. National Test Housealso participates in various Nationalas well as International Seminarsand Symposia of relevance andarranges discussions anddemonstrations for creating qualityconsciousness among smallentrepreneurs and the public atlarge. It also arranges in-housetraining of its staff and encouragesinteraction with higher institutionsof learning and research. Selectedstaff are sponsored for variousspecialized training courses in thecountry and abroad with a view toup-dating their knowledge.

Organization :

10.3 NTH with its Headquarters atKolkata, functions through its sixlaboratories located in Kolkata (atAlipore and Salt Lake), Mumbai,Chennai, Ghaziabad , Jaipur andGuwahati.

10.4 The details of staff strength as on31.12.2006 are given below:-

Testing, Calibration and QualityAssurance:

10.5 The National Test House has beenrecognized as a member of variousBoards, including the NationalAccreditation Board for Testing andCalibration Laboratories (NABL)Programme of the Deptt. of Scienceand Technology. MechanicalCalibration Laboratory of NTH (ER),Alipore, NTH (WR), Mumbai, NTH(NR), Ghaziabad and NTH (SR),Chennai have already beenaccredited by NABL and receivedthe accreditation certificates, whilethe remaining labs. of NTH areunder process of gettingaccreditation.

10.6 The Scientists of the National TestHouse are in constant touch withthe industries, research institutesand other higher seats of learningthrough participation in Seminars/Symposia etc. to keep themselvesposted of the currentdevelopments in the field of testingand evaluation of materials. Thishelps the NTH in preparing futureprogramme closely linked withnational requirements.

10.7 The NTH is at present providingTesting and Evaluation facilities inthe following main disciplines:-

i) Civil Engineering;

ii) Electrical and ElectronicsEngineering;

Table - IGazetted Non-Gazetted Total

Sanctioned 204 509 713

Actual 155 408 563


National Test House

iii) Mechanical Engineering(Heavy and Light);

iv) Non-Destructive Testing;

v) Rubber, Plastics and Textiles;

vi) Chemical

Committees Constituted forNTH:

10.8 Two high powered Committeesexist to advise NTH on policy andvarious administrative matters.These are - (1) ExecutiveCommittee and (2) TechnicalAdvisory Council.

(i) Executive Committee (EC) :

The Executive Committee ofNTH (EC) has beenreconstituted under theChairmanship of theSecretary to the Ministry ofConsumer Affairs, Food andPublic Distribution toconsider administrative andfinancial matters related toNTH. The Member-Secretaryof the Committee is Director(ER). Members fromGovernment Departmentsand Scientific and TechnicalOrganizations have beennominated. EC Meeting isheld to take decisions on theproblems faced by NTH andits overall development. Lastmeeting of EC was held on5.7.2006 at Kolkata.

(ii) Technical Advisory Council(TAC):

The Technical AdvisoryCouncil for NTH (TAC) worksunder the Chairmanship ofDG (NTH) and the membershave been nominated fromBIS, New Delhi and Kolkata;NPL, New Delhi; VariableEnergy Cyclotron Centre(VECC), BARC, Kolkata; Headof Electrical Engineering,Jadavpur University, Kolkata,Head, MechanicalEngineering Department ofBengal Engineering & ScienceUniversity, Howrah; UnderSecretary (IF Wing), Deptt. OfConsumer Affairs, New Delhi;along with all the regionalheads of NTH as member. TheDirector, NTH (ER) has beennominated as Member-Secretary. The main functionsof the Advisory Council is toadvise for procurement ofsophisticated equipment forNTH in various disciplines,modifications/deletion ofpresent areas of work andaddition of new areas/activities in testing andcalibration, identification ofareas of cooperation andcoordination between NTHand BIS. Last meeting of TACwas held on 17.3.2006 atKolkata.



Plan Activity :

10.9 To enable the NTH to play its roleeffectively in the field of qualitycontrol, material evaluation,standardization and assistance inindustrial development, it has beenbrought under the Science andTechnology Plan Scheme. TheScheme envisages augmentationand modernization of testing,facilities and setting up of RegionalTest Houses, for the benefit of smallscale industries in particular. Theactivities of the NTH are beingregularly covered under thescheme since 5th Five Year Plan.

10.10 The allocation for NTH during the10th Five Year Plan has been fixedto the tune of Rs. 25.00 crores. In theAnnual Plan 2005-06 an amount ofRs. 5.66 Crores have been providedto NTH, of which an amount ofRs.1.65 Crores has been placed atthe disposal of CPWD forimplementation of "Land &Building" works and the balanceamount for meeting theexpenditure in procurement ofEquipment and Machinery andrecurring nature of items. During2005-06, actual Plan expenditure ofRs.5.42 crores was incurred by NTH.

10.11 The total budget allocation for the9th Five Year Plan was to the tuneof Rs. 21.19 crores and theutilization was around to the tuneof Rs. 18.97 crores i.e. approx. 89.5%.

10.12 The total revenue earning in the8th Five Year Plan was Rs. 4.50crores, which has been doubled inthe 9th Five Year Plan to approx.Rs.9.00 crores. The projection forrevenue earning in the 10th FiveYear Plan is around Rs.20.00 Crores.

Facilities available:

10.13 Besides facilities for testing inalmost all areas according tonational and internationalspecifications, facilities forStandards (Echelon-II level) andCalibration are available inMechanical and Electrical areas inthe Eastern Regional Centre. Similarfacilities are also available, in alimited way, at other centres innorthern, western and southernregions.

10.14 The NTH is also providing IndustrialQuality Consultancy Services(IQCS) in the following specializedareas:-

(a) Techno managerial servicefor setting up of testing andcalibration laboratory.

(b) Material identificationconsultancy in problemsrelating to importsubstitution.

(c) Failure analysis forengineering materials andplant/system and remedialmeasures.


National Test House

(d) Quality improvisation ofpaints and allied materials,fine chemicals, pesticidesetc.

(e) Development of test andcalibration methodology.

(f ) Strength, Serviceability andDurability (SSD) consultancyfor civil constructions.

(g) Interpretation of radiographsand grading of severity ofdefects with reference tostandards.

10.15 NTH have a direct interaction withthe customers for gettingquotation for test fee, receipt ofsample and testing charges etc.These aspects have beencomputerised and all the abovework is done on a Single WindowSystem. In addition to the above,redressal of public grievances forprompt and sympatheticattention is also available in all theunits of NTH. A computerized web-based Management InformationSystem (MIS) for both technicaland administrative functions hasbeen installed at NTH(ER), Kolkata.The main areas covered under thesystem are : Sample monitoring,Budget and Accounts monitoring,Personnel information andDocument management system.A new NTH-Website of both Hindi& English versions has beenhosted with multiple information

related to NTH. This websitecomprises some of the basicfeatures like Right to InformationAct , Citizen Charter etc. A readyreference related to sampletesting status will be available inthe website and secured soft copyof the testing & calibrationcertificates may be provided tothe customers against theirrequest.

Testing of Samples :

10.16The number of Test Reports issued,Region/ Centre-wise is as follows:-

Name of 2005-06 2006-07

the Region (up to Dec-'06)

ER, Kolkata 3173 2772

WR, Mumbai 1388 1580

SR, Chennai 1495 1065

NR, Ghaziabad 2543 2187

NWR, Jaipur 820 1215

NER, Guwahati 679 435

Total 10098 9254

10.17 Laboratory-wise Performance ofNTH :

Activities of Special Importance :

10.18 The exper tise and wealth ofexperience of NTH is utilized toprovide a major thrust in itsmodernization for protectionof the consumers as well as forthe N at ion in judging thequality of their products. Some



mi lestones of which are asfollows :

l Chemical (Paint) Laboratoryhas undertaken the testingand evaluation for differenttypes of paints being utilisedfor the repair and maintenanceof the famous Rabindra Setu(Howrah Bridge).

l Thermoplastic paintscurrently being used in theQuadrangular NationalHighway Project are mostlytested in Chemical PaintLaboratory.

l Non-Destructive Testing(NDT) Laboratory of NTH (ER),Kolkata has provided ableassistance by carrying outcrucial metallurgical analysisof imported Cycle Hub Cone.

DDT (A prohibited pesticide)contamination in minute

level present in "DicofolPesticides" (an approvedpesticide) has beendetermined by the ChemicalLaboratory of NTH (ER),Kolkata with the help of GasChromatography - MassSpectroscopy analyser.

l R&D Laboratory of SAIL,Ranchi has entered into aMemorandum ofUnderstanding (MoU) withthe Mechanical CalibrationLaboratory of NTH (ER),Kolkata for calibration of theirequipment and machinery.

l As a part of the socialobligatory service renderedby NTH for the nation,Chemical Laboratory of NTH(NR), Ghaziabad has assisted"UP Jal Nigam" in analysingthe potable water from anewly installed pump. The

(Para 10.17) (Rs. in lacs)

Sl. Region 2005-06 2006-07(up to December-'06)No. Non-Plan Revenue % of Non-Plan Revenue % of

Expenditure earned revenue to Expenditure earned revenue toNon-Plan Non-Plan

Expenditure Expenditure

1 NTH(ER) 585.61 123.73 21.13 466.01 110.53 23.72

2 NTH(WR) 163.49 54.25 33.18 142.27 48.74 34.26

3 NTH(SR) 173.75 43.20 24.86 147.66 40.45 27.39

4 NTH(NR) 156.00 135.91 87.12 131.06 138.58 105.74

5 NTH(JPR) 46.56 30.38 65.25 42..37 34.99 82.58

6 NTH(GUW) 24.86 14.59 58.69 27.62 9.66 34.98

Total 1150.27 402.06 34.95 956.99 382.95 40.02


National Test House

test certificate issued by NTH(NR) regarding the quality ofwater for drinking purposeswas endorsed by thePollution Control Board, UP.

l Electrical Laboratory of NTH(SR), Chennai, has carried outfollowing delicate analysis ofvarious cable samples toevaluate cable quality :

(a) Temperature rise of cable atdifferent ambient.

(b) Defect analysis of cable atCPCL, Manali.

(c) Analysis of cable camera.

l Assessment of the quality ofAtactic Poly Propylene (APP)membrane in non-woven mat,received from GarrisonEngineer, Mhow, UP, has beencarried out by the ChemicalLab. of NTH(ER), Kolkata. Theuse of APP as water repellentto stop seepage of water atDefence Establishment-" ArmyWar College" in Mhow, UP, is ofimmense value for the interestsof the Defence Personnel.

l The Chemical Lab. ofNTH(NR), Ghaziabad,participated in theprestigious project CMM-24on "Pesticides ReferenceMaterial Project", launched byCSIR, New Delhi.

l Chemical Paint Lab. ofNTH(ER), Alipur, Kolkata hasassisted M/s. Berger Paints(India) Ltd., by evaluating thequality of High Build Paints,as per internationalspecifications for promotingimport substitution.

Facilities added :(up to December-2006.)

10.19 Sophisticated equipment(Imported & Indigenous) have beenprocured and some are under theprocess of procurement by theregions of NTH.

A. The names of some notablee q u i p m e n t / i n s t r u m e n tpurchased for augmentation/new facilities for testing aregiven below:-

Sl. No. Name of the Equipment Regions

1 Multi-Secondary Isolation Voltage Transformer NTH (ER), Kolkata

2 Carbon Sulphur Determinator NTH(ER), Kolkata

3 15 KVA UPS NTH(ER), Kolkata

4 Brookfield Viscometer NTH(ER), Kolkata

5 Dry Block Calibrator NTH (SR), Chennai

6 Optical Emission Spectrophotometer NTH (NR), Ghaziabad



B. The equipment to be procured by March, 2007 are as under:

Sl. No. Name of the Equipment Regions

1 Potentiometer Auto Titrator NTH (ER), Kolkata.

2. Color Bench Spectrophotometer NTH (ER), Kolkata

3 Multi Function Calibrator NTH (WR), Mumbai

4 Spares for Carbon Sulphur Determinator NTH (SR), Chennai

5 Analytical Balance NTH (SR), Chennai

6. Optical Emission Spectrophotometer NTH (SR), Chennai

7 Inductive Couple Plasma Spectrophotometer NTH (SR), Chennai

8 Inductive Couple Plasma Spectrophotometer NTH (NR), Ghaziabad

9 Gas Chromatography with Mass NTH (NR), GhaziabadSpectrophotometer (GCMS)

10 -do- NTH (NWR), Jaipur

Receipts : (Rupees in lacs)

Sl.No. Name of the Region/ Centre 2004-05 2005-06 2006-07(up to Dec-'06)

i) ER, Kolkata 102.61 123.73 110.53

ii) WR, Mumbai 44.24 54.25 48.74

iii) SR, Chennai 30.67 43.20 40.45

iv) NR, Ghaziabad 85.96 135.91 138.58

v) NWR, Jaipur 44.03 30.38 34.99

vi) NER, Guwahati 10.41 14.59 9.66

TOTAL 317.92 402.06 382.95

Receipts and Expenditure :

10.20 The relevant details of receipts and expenditure at the six centres are given asfollows:-


National Test House

Public Grievance Set up in NTH :

10.22 National Test House is a premierScientific Institution engaged intesting, evaluation, qualityassurance and standardization ofmaterials and finished products.For the above mentioned servicesand activities there is a directinteraction with the public forgetting quotation for test fee,deposition of sample and receiptfor sample and test fee etc. Theseaspects have been computerizedand all the above work can be doneon a single window "SampleRoom". These facilities are availablein all the units of the NTH. In spiteof the above, if there is any publicgrievance, redressal machinery for

prompt and sympathetic attentionto it is also available in all the unitsof NTH.

Vigilance :

10.23 The cases of corruption are notmuch in this organization.However, every effort is beingmade to protect the honest andinnocent officers and dealt withthe corrupt officers severely. NTHhas separate set-up to look afterthe vigilance matters, headed bythe Vigilance officer at HeadQuarters, Kolkata and AssistantVigilance Officers in the rank ofAssistant Directors (Admn) at thesix regional laboratories of NTH.There are seven disciplinary /

(Rupees in lacs)

Name of 2004-05 2005-06 2006-2007 (up to

the Region December-06)

Name of Plan Non- Total Plan Non- Total Plan Non- Total

the Region Plan Plan Plan

i) NTH(ER) 299.63 542.95 842.58 262.46 585.61 848.07 131.99 466.01 598.00

including

Alipur &

Hd.Qr.

ii) NTH (WR) 16.22 152.71 168.93 21.37 163.49 184.86 9.29 142.27 151.56

iii) NTH (SR) 14.71 171.86 186.57 13.94 173.75 187.69 11.81 147.66 159.47

iv) NTH (NR) 38.78 148.14 186.92 42.03 156.00 198.03 28.91 131.06 159.97

v) NTH (JPR) 7.01 42.42 49.43 18.58 46.56 65.14 5.56 42.37 47.93

vi) NTH (GUW) 7.91 24.68 32.59 11.91 24.86 36.77 6.33 27.62 33.95

Total 384.26 1082.76 1467.02 370.29 1150.27 1520.56 193.89 956.99 1150.88

10.21 Expenditure (Excluding Works Outlay) :



vigilance cases in NTH. This figureexcludes the cases already dealtwith by the Vigilance Cell of theDepartment of Consumer Affairs,New Delhi.

Viability study of NTH

10.24 IIM Kolkata which was entrustedrecently with a study on viability ofNTH with reference to its non planexpenditure in the coming years,has submitted its preliminaryreport. As per the preliminaryreport, the estimated non planexpenditure of NTH is expected torise from Rs.12.34 crores in 2006-07to Rs.21.15 crores in 2010-11. Therevenues expected to begenerated by NTH from testing andcaliberation services, training/consultancy services and othernew activities are expected to risefrom Rs.5.28 crores in 2006-07 toRs.11.50 crores in 2010-11. Aspercentage of estimated non planexpenditure, the revenues of NTHare expected to rise from 43% in2006-07 to 54% in 2010-11.

10.25 NTH has spelt out the action taken/proposed to be taken to achievethe above mentioned revenueprojections, which, inter alia,include the following:-

(i) NTH has re-grouped itsactivities into three majorareas - physico-mechanical,electric0-technical and

chemical for better utilizationof scientists.

(ii) A new Technical cadrecomprising of 200 staff toassist the scientists in simpleand common testing andcalibration services and otherrelevant scientific andtechnical works is proposedto be introduced. It does notinvolve any increase in theexisting overall sanctionedstrength of NTH officers andstaff.

(iii) The ratio of 1:1:0.3 betweenScientists, Technical Staff andAdministrative Staffproposed by NTH would bereviewed by IIM afterstudying the productivitynorms.

(iv) Time for completion of testshas been reducedconsiderably, existing testand calibration facilities havebeen augmented andrevenue from calibrationservices has increased.

(v) NTH has initiated workinggroups for businessdevelopment and customercare in all its regions and nowreceives substantially moresamples from private sector.

(vi) The actions proposed to betaken by NTH include, inter


National Test House

alia, commencement oftesting of packageddrinking water and newhigh value materials andproducts from 2007-08,development of wellequipped training centre by2007-08, setting up ofcentres of excellences in allregions in time so that thesecentres start generatingrevenue from 2008-09, anddevelopment of newbusiness segments i.e.software testing andinspection service in 2008-09 and 2010-11 respectively.

10.26 The preliminary report hasconcluded that NTH is a scientificorganization with leading role notonly in testing and evaluationservices but it also serves as areference institution in its area ofoperation in national interest. 90%time of NTH scientists is devoted tocommercial activities. In order tomake NTH self-sufficient to fullymeet its non plan expenditureduring 12th Plan period, thepreliminary report has suggestedthat NTH be set increasingly higherrevenue targets as percentage ofnon plan expenditure from 50% in2006-07 to 80% in 2010-11.


Number of SC/ ST / OBC / PH / EXM Officers

NUMBER OF SC/ ST / OBC / PH / EXM OFFICERS

CHAPTER - XI

11.1 The instructions issued by theDepartment of Personnel andTraining from time to timeregarding representation ofScheduled Caste/ScheduledTribes/OBCs/PHs in directrecruitment and promotion tovarious grades and services werefollowed.

11.2 The number of personsbelonging to Scheduled Castes,Scheduled Tribes. OtherBackward Castes, PhysicallyHandicapped and Ex-Servicemenemployed in the Department ofConsumer Affairs and itsattached/subordinate offices areindicated as under:-

STATEMENT SHOWING THE NUMBER OF SC/ST/OBC/PH/EXM/ WOMEN

(As on 31.12.2006)

Group of Sanctioned Total Number of employees out of Col.2 belonging to

Post Strength Number of

employees

in position SC ST OBC PH EXM Women

VH HH OH

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Group A 215 146 23 6 2 1 - 1 17

Group B 174 141 17 3 2 - - - - 31

Gazetted

Non-Gazetted 186 120 18 5 23 - - - - 22

Group C 405 350 81 21 20 1 2 4 3 68

Group D 271 246 77 18 23 2 3 3 8 16

TOTAL 1251 1003 216 53 70 4 5 7 12 154

VH – Visually Handicapped, HH – Hearing Handicapped, OH – Orthopaedically Handicapped, EXM – Ex-serviceman

Note: The compilation includes information in respect of the Deptt. of Consumer Affairs and the following attached/

subordinate offices of the Deptt., National Test House-Kolkata, Forward Markets Commission-Mumbai, National

Consumer Disputes Redressal Commission-New Delhi., Indian Institute of Legal Metrology-Ranchi., Regional

Reference Standards Laboratories- (Ahmedabad, Bangalore, Bhubaneshwar, Faridabad, Guwahati.


Sexual Harassment of Women atWorkplace-constitution of Complaints Committee

SEXUAL HARASSMENT OF WOMEN ATWORKPLACE-CONSTITUTION OF

COMPLAINTS COMMITTEE

CHAPTER - XII

12.1 In order to implement theguidelines of Hon’ble SupremeCourt on prevention of sexualharassment of women at workplace, a complaint committee wasconstituted in the Department ofConsumer Affairs on 3rd August,1998 which has been reconstitutedon 8.1.2007 under theChairpersonship of Joint Secretary(CA) in the Department. ThisComplaint committee has beenentrusted with the work relating tothe time bound treatment ofcomplaints for redressal ofgrievances made by victim womenemployees. In addition, this Cellalso functions as a Women’s Cellwhich broadly covers the followingareas:

a) To attend to and to co-ordinate theaction for improvement of workingconditions for women employeesof the Department.

b) To attend to and expedite action onthe complaints received from thewomen employees.

c) Other general areas concerning thewelfare of women employees.

12.2 Being a small Department, sexualharassment as such is notperceived as much of a problem,nor has this Cell in this regardreceived any complaint during theyear. However, interactivemeetings are held periodically withall lady employees of theDepartment to get first handinformation regarding theirproblems, if any, so that remedialmeasures could be taken.


12.3 Following the guidelines andnorms laid by the Hon’ble SupremeCourt in Vishaka & Ors Versus Stateof Rajasthan and Ors, the SexualHarassment Committee was set upin the Bureau of Indian Standardsheaded by a lady officer with halfits members being women. TheCommittee has NGOrepresentation.



12.4 Regular Sensitization Programmeson Sexual Harassment are beingconducted in coordination with theCentral Board for Workers’ Educationunder the Ministry of Labour.

12.5 Notices prohibiting sexualharassment as defined in theSupreme Court judgment of 1992are prominently displayed in theoffice premises.


Progressive Use of Hindi

PROGRESSIVE USE OF HINDI

CHAPTER - XIII

COMPLIANCE WITH THEOFFICIAL LANGUAGES ACT ANDRULES FRAMED THEREUNDER

13.1 During the year, appropriate actionwas taken to ensureimplementation of the provisionsof the Official Languages Act andthe Rules framed thereunder.

13.2 For ensuring compliance with theprovisions of the OfficialLanguages Act, 1963 and rulesframed thereunder, check pointshave been set up in theDepartment. Effective steps weretaken for the adherence to thesecheck points.

13.3 The attached/subordinate officesunder the Department wherein80% or more than 80% of staff(except Group “D”) have workingknowledge in Hindi have beennotified in the Gazette of India asrequired in Rule 10(4) of the OfficialLanguages ( use for OfficialPurposes of the Union) Rules, 1976.Orders to make all correspondencein Hindi under rule 8(4) of the saidRules have also been issued by theDepartment and the offices sonotified under rule 10(4).

REVIEW

13.4 The Annual Programme for theyear 2006-2007 for implementationof the Official Language Policy ofthe Union, issued by theDepartment of Official Language aswell as orders issued by them werecirculated in the Department andto all the attached/subordinateoffices/corporations forcompliance. Progress made in thisregard was reviewed through thequarterly reports received fromthem and critically discussed in themeetings of the Official LanguageImplementation Committee.

13.5 Regular meetings of the OfficialLanguage ImplementationCommittee, set up in theDepartment, to review the progressmade in implementation of OfficialLanguage policy in theDepartment as well as in itsattached/subordinate offices wereheld during the year. Emphasis waslaid in the meetings on innovativeideas for promotion of Hindi as alsofor complementary use of regionallanguages.



13.6 Two meetings of the Hindi SalahkarSamiti of the Ministry were heldduring the year and follow upaction was taken on the decisionstaken therein.

INCENTIVE SCHEMES

13.7 The scheme for awarding cashprizes to Central Govt. Employeesfor noting and drafting in Hindicontinued to be implementedduring the year.

13.8 Special incentive for Hindi typing inaddition to English typingcontinued to be given toemployees of the Department.

13.9 The Department observed Hindifortnight from 1.9.2006 to15.9.2006. During this fortnight,various competitions wereorganised with a view toencourage the officers/employeesof the Department for doing theirofficial work in Hindi. The winnersof these competitions weresuitably awarded.

OTHER ACTIVITIES

13.10 Steps were taken to ensureprogressive use of Hindi forcorrespondence with Hindi speakingStates and Union Territories.

13.11 Employees untrained in the OfficialLanguage, Hindi stenography andHindi typing were nominated fortraining in the respective field.

13.12 The quarterly magazine “ UpbhoktaJagran” meant for creatingawareness among the consumersfor their rights continued to bebrought out both in Hindi andEnglish.

13.13 To impart training in noting anddrafting in Hindi, workshops wereorganised in the Department.

13.14 The Department has achieved thetarget of expending 50% of Libraryfund on Hindi books. In addition tothis, Hindi News papers, Magazinesand journals were purchasedregularly for the library of theDepartment.

13.15 Continuous efforts are being madeto encourage progressive use ofHindi in official work not only in theDepartment but also in its attachedand subordinate offices.Inspections were conducted towatch the progress in this regard.

13.16 This Department received thirdprize for the year 2004-05 underthe series of Indira GandhiRajbhasha Puruskar.

National Test House

13.17 Implementation of OfficialLanguages Act 05: In this regard100% implementation in is beingachieved by NTH Kolkata. BranchOffices have also tried to achieve100% implementation.


Progressive Use of Hindi

13.18 Implementation of section 3(3)NTH, Kolkata has achieved 100%implementation in this regard.Branch offices have also tried for100% implementation.

13.19 Cash Award in noting & drafting: 04employees from NTH (ER), Kolkatahave been awarded under thisScheme. (02 first prize & 02 secondprize).

13.20 Meeting of the OLIC were heldregularly & resolutions taken wereimplemented also.

13.21 Observance of Hindi Fortnight : Asin the past, in NTH Kolkata HindiFortnight has been observed from1st September. During thisfortnight different competitions. ie.Essay , Debate, extempore reading.(for group ‘D’) O.L. competition,Slogan & Poster competition wereheld along with the prizes forsuccessful candidates, consolationprizes were also given to all theparticipants. On the eve of theinauguration DG. NTH declaredCash Award Scheme for the Group‘D’ employees for doing work in

Hindi, During the Fortnight‘Lingulstic Harmony day’ wasobserved on 11.09.2006.

13.22 Besides NTH Kolkata, NTH, Mumbai,Chennai, Ghaziabad & Jaipur alsoobserved Hindi Fortnight/HindiWeek. NTH, Chennai & Ghaziabadpublished in-house magazine inHindi during the Fortnight.

13.23 From NTH, Kolkata 04 employeeswere being trained in Hindi Typing& 03 Employees were being trainedin Pragya course.

13.24 Website was prepared in Hindi &efforts were made to issue TestCertificates in Hindi to some extent.


13.25 Various steps have been taken forimplementation of the provisionsof the Official Languages Act in theday-to-day work. A number ofarticles, general orders, office notes,press communiqués and coveringletters of draft Indian Standardsand amendments were issued inHindi.


Development of North Eastern Region

DEVELOPMENT OF NORTH EASTERN REGION

CHAPTER - XIV

PRICE MONITORING IN NORTH-EASTERN STATES

14.1 Price monitoring based on the dailyand weekly price reports on 14essential commodities from theNorth Eastern States continued.

WEIGHTS AND MEASURES

14.2 The establishment of a RegionalReference Standards Laboratory(RRSL) at Guwahati at an estimatedcost of Rs.470 Lakhs to provideverification of standards of Weightsand Measures to the States of theNorth Eastern region is nearingcompletion. The laboratory will alsoprovide calibration facilities formeasuring instruments used byindustries in the region. The project,among other things, includesconstruction of a building to housethe laboratory.

14.3 During 2006-07, an allocation of Rs1.0 Crores has been made underthe Plan side, for the project as perthe following break up:

14.4 To meet the immediaterequirements, the laboratory hasbeen functioning at a temporarypremises at Guwahati since August2001. Some essential equipmentneeded have already beenprocured and the laboratory iscarrying out some of its basicfunctions.


14.5 Bureau of Indian Standards has gota Branch Office at Guwahati, whichcaters to the Quality Control,Certification and training needs ofthe industries of the North EasternRegion comprising 7 states –Assam, Arunachal Pradesh, Tripura,Manipur, Meghalaya, Mizoram andNagaland. Guwahati Branch Office(GBO) is providing informationregarding standardization,certification of products and thequality management systems. It isalso guiding the prospectiveproducts licensees in setting thelaboratories for obtaining theCertification Marks Licence. It alsoprovides information on thecertified goods to the StateGovernments.

i) Machinery and Equipment Rs. 0.1 Crore

ii) Major Works Rs 0.74 Crore

iii) Establishment Expenditure Rs 0.16 Crore



14.6 At present, 175 BIS licences (162licences on product and 13 licenceson Hallmarking) are in operation inNorth Eastern States. Threelicences have been granted onCertification of bamboo productsin GBO (First in All India basis).State-wise distribution of licencesis given below :-

brought various products underMandatory Certification. The SLCmeetings were held in Tripura (22-02-2006) and Arunachal Pradesh(18-01-2006).

14.9 GBO is also coordinating with SISI,CIPET and Manav Sarathi, an NGOin conducting ConsumerAwareness Programmes indifferent states of North East.Twelve Consumer AwarenessProgrammes and HallmarkingAwareness Programme wereorganized in different places ofNorth Eastern Region like,Guwahati, Agartala etc.

14.10 During this period, 8 enforcementraids were carried out at Guwahatiand 12 cases pertaining toenforcement raid has beenlaunched for prosecution in theCourt. Verdict of 2 cases has beengiven and in both the cases, theaccused has been convicted. Widepublicity was given in local media.GBO has also participated inexhibitions at Guwahati (2 nos),Shillong (1 no.) and Agartala (1 no.)to create awareness about BISactivities among the general public.GBO has received an award for bestparticipant from PSU Sector in the7th International Expo 2006 recentlyheld i.e. from 01-11-2006 to 16-11-2006. GBO had put up a stall toeducate masses of North EasternRegion about BIS activities and ithas got tremendous response from

Assam - - - 106

Tripura - - - 21

Manipur - - - 4

Arunachal - - - 0

Pradesh

Mizoram - - - 2

Meghalaya - - - 32

Nagaland - - - 10

Total - 175

14.7 GBO has got a laboratory attachedto it. GBOL has got completetesting facilities for testing ofgalvanized steel sheets (plain andcorrugated), M.S. wire rods forgeneral engineering purposes andpartial testing facilities for Highstrength deformed steel bars,structural steel, corrugated andsemi- corrugated asbestos cementsheet and A.C. fittings.

14.8 GBO is coordinating with the stategovernments through State LevelCommittee meetings forstandardization and qualitysystems. It is also coordinating withdifferent state departments forimplementation of various CentralQuality Control Orders which


Development of North Eastern Region

the people who had visited the saidExpo. GBO has also put uphoardings on Hallmarking Schemeand Product Certification in all thestate capitals of North East. It has afull-fledged library for BISstandards and also a sales counterfor providing assistance toindustries, consumers and thestudents of the North EasternRegion.

14.11 GBO celebrated the WorldStandards Day on 14 October 2006which was chaired by Shri S.Sonowal, Commissioner &Secretary (Industries), Govt. ofAssam, Shri S.K. Jain, President,Federation of Industries andCommerce of North Eastern Regionand Prof. U.S. Dixit of IIT, Guwahatiaddressed the gathering on thetopic of “Standards : Big benefits forsmall business”.

14.12 GBO has got translated publicitybrochures on Hallmarking of Gold

Jewellery “Myths about StandardMark” and “What to look for inStandard Mark” from English toAssamese for distribution at theexhibitions and the awarenessprogrammes.

CONSUMER WELFARE FUND

14.13 During the current financial year(up to 30-10-2006) an amount of Rs.15.73 lakhs have been released to1 State Government and 3organizations of the north-eastregion as grant-in-aid from theConsumer Welfare Fund.

Grants sanctioned to North-EastRegion:-

NATIONAL TEST HOUSE

Report on the Projects and Schemesbeing operated in the North EasternRegion of National Test House atGuwahati, since its inception.

State / Organisation Amount ( Rs. )

1) Department of Food, Civil Supplies & Consumer Affairs, Governmentof Mizoram, Aizawl. ( State level Convention & Workshop) 11,72,480/-

Distt Consumer Information Centres:

1) SC/ST Backward Women & Children Development Organisation inRural Areas, Thoubal, Khunon, PO/Distt- Thoubal, Manipur. 75,000/-

2) Nagaland Tribal Rural Development Association, Old Dairy Farm Road,Post Box No.196, Purana Bazar, Dimapur, Nagaland- 797112. 2,50,000/-

3) Resource Center for Social Welfare and Community Development,Japhou Bazar, Post & Distt- Chandel, Manipur. 75,000/-

Total 15,72,480/-

(Para 14.13)



14.14 A Satellite branch of NTH wasestablished in the year 1996 atC.I.T.I Complex, Kalapahar,Guwahati-781016 which was takenat a very nominal rent fromGovt. of Assam with a view tomeeting the Testing, Evaluation &Quality Control requirements ofmaterials and finished productsfrom the North-Eastern region ofthe country.

14.15 At present, NTH(NER), Guwahati,provides the following services tothe clients :

(i) Testing & Quality Evaluationof various Engg. Materials, viz.,Civil, Chemical, Textile,Mechanical etc.

(ii) Providing Training in TestingMethodologies for Cement,Water, Paints, GeneralChemicals, Steel etc.

(iii) Providing ConsultancyServices in the field ofLaboratory Set-up, PackagedDrinking Water, CeramicMaterials etc.

(iv) Participating in the Projectwork undertaken by variousNGOs and otherorganizations, depending onthe existing facilities inNTH(NER), Guwahati.

14.16 During the 10th. Plan period (2002-07) the total revenue earned by

NTH, Guwahati, from April-‘02December-‘06, is Rs. 46.56 lakh

14.17 NTH(NER) has a scope to play a vitalrole in the movement of growingindustrialization of the region, inboth sectors of “ Agro-based” and “Mineral-based” industries. As such,the future planning for this regionis as under:

(i) Augmentation of the existingChemical Laboratory bycreating test facilities fortesting of bituminousproducts, Tea includingResidual Pesticides Analysis,Gas Analysis, etc.

(ii) Augmentation of the existingCivil Laboratory by creatingtest facilities for testing ofMix-Design, Sanitary wares,Refractories, and Non-destructive tests of Civil Engg.Products.

(iii) Opening of new laboratoriesin the field of Rubber, Plastic& Textile Engg. andMechanical Engg. Testingfacilities for Tea will becreated in this region.

14.18 The Govt. of Assam has beenprovided Rs. 15.83 lakhs from theDepartment of Consumer Affairs,for transferring a land measuring22,600 sq.ft. (approx) to NTH atGreater Guwahati in the existingpremises at Kalapahar, Guwahati.


Integrated Finance Division

INTEGRATED FINANCE DIVISION

CHAPTER - XV

INTRODUCTION

15.1 The Integrated Finance Division ofthe Ministry of Consumer Affairs,Food and Public Distribution(Department of Consumer Affairs)is headed by Additional Secretaryand Financial Adviser who is overallin charge of Budget and AccountsSection in addition to the InternalFinance Section.

FUNCTIONS

15.2 It is the duty of Integrated FinanceDivision :-

(i) To ensure that the schedulefor preparation of budget isadhered to by the Ministryand the Budget is drawn upaccording to the instructionsissued by Finance Ministryfrom time to time.

(ii) To scrutinize budgetproposals thoroughly, beforesending them to Ministry ofFinance.

(iii) To see that completedepartmental accounts aremaintained in accordancewith the requirements underthe General Financial Rules. It

should, in particular, beensured that the Ministry notonly maintains accounts ofexpenditure against theGrants or Appropriationsdirectly controlled by it butalso obtains figures of theexpenditure incurred by thesubordinate offices so thatthe Ministry has a completemonth to month picture ofthe entire expenditure fallingwithin it jurisdiction;

(iv) To watch and review theprogress of expenditureagainst sanctioned grantsthrough maintenance ofnecessary Control Registersand to issue timely warningsto Controlling authoritieswhere the progress ofexpenditure is not even;

(v) To ensure the propermaintenance of the Registerof Liabilities andcommitments as requiredunder the G.F.Rs. to facilitaterealistic preparation of budgetestimates, watching of bookdebits and timely surrender ofanticipated savings;



(vi) To screen the proposals forsupplementary demands forgrants;

(vii) To advise the AdministrativeMinistry on all matters fallingwithin the field of delegatedpowers. This includes allpowers other than thosedevolving on a Ministry in itscapacity as Head of Office. Ithas to be ensured by I.F.Division that the sanctionissued by AdministrativeMinistry in exercise ofdelegated powers clearlyindicates that they issue afterconsultation with IF Division;

(viii) To identify, in particular,specific savings in cases ofcreation of posts and tomaintain a Register for thispurpose;

(ix) To scrutinize proposals for re-delegation of powers tosubordinate authorities;

(x) To keep himself closelyassociated with theformulation of schemes andimportant expenditureproposals from their initialstages;

(xi) To associate himself with theevaluation of progress/performance in the case ofprojects and othercontinuing schemes, and to

see that the results of suchevaluation studies are takeninto account in the budgetformulation;

(xii) To watch the settlement ofaudit objections, InspectionReports, draft audit paras, etc;;

(xiii) To examine foreigndeputation proposals inrespect of officers of theDepartment as alsoemployees of Bureau ofIndian Standards, anautonomous body underAdministrative Control ofDepartment of ConsumerAffairs;

(xiv) To represents CentralGovernment in variousCommittees of the BIS, i.e.Finance Committee, StandingStaff Committee andExecutive Committee of BIS;

(xv) To ensure prompt action onAudit Reports andAppropriation Accounts,Reports of Public AccountsCommittee, EstimatesCommittee and Committeeon Public Undertakings;

(xvi) To screen all expenditureproposals requiring to bereferred to Finance Ministryfor concurrence or advice;

(xvii) To ensure regular and timelysubmission to Finance



Ministry of quarterly staffstatements and other reportsand returns required byFinance.

Action Taken Notes on theOutstanding Audit Reports of the C &AG

15.3 All the ‘Action Taken Notes’ on theaudit observations included in theC & AG’s Reports upto 2005 havealready been sent to theMonitoring Cell in the Ministry ofFinance after getting them vettedby the O/o the Pr. Director of Audit.

15.4 In respect Audit observationsincluded in the C & AG’s Reports for2006 following is the statusposition of outstanding paras :-

DEPARTMENTALISED PAYMENTAND ACCOUNTINGORGANISATION

ORGANISATIONAL SET UP:

15.5 The Accounting Organizationworks under overall supervision ofthe Controller General of Accounts,Department of ExpenditureMinistry of Finance, for the CivilMinistries/Department of the Govt.of India as a whole. However underthe departmentalized AccountingSystem, the Secretary ofDepartment of Consumer Affairs isthe Chief Accounting Authoritywho discharges his duties throughand with the help of AdditionalSecretary & Financial Adviser andChief Controller of Accounts of the

Sl. No. Para No. Present Status

1. 6.10 of Report 1 of 2006 Final reply sent to Monitoring Cell in Ministry

of Finance on 22.12.2006 after vetting by Audit.

2. 7.13 of Report 1 of 2006 Final reply already sent to the Monitoring Cell

in the Ministry of Finance on 24.11.2006

after vetting by audit.

3. Report No. 14 of 2006 This report exclusively relates to the Performance

Report on Implementation of Consumer

Protection Act and Rules. Action Taken Notes on

this point is being finalized for onward submission

to the Monitoring Cell after getting it vetted by

Audit.

4. 1.1.2 of Report No. 3 of 2006. The ATN has been got approved and sent to Audit

for vetting.



Department of Consumer Affairs.The Budget division of thedepartment is also works under theChief Controller of Accounts.

15.6 The departmentalized paymentand accounting organization of theDepartment of Consumer Affairshas four Pay and Accounts Officeslocated at New Delhi, Mumbai,Chennai and Kolkata besides onePrincipal Accounts Office located atNew Delhi. The Chief Controller ofAccounts is the Head of thepayment and accountingorganization in respect ofDepartment of Consumer Affairs aswell as Food and PublicDistribution, which too has 4 Payand Accounts Offices located atNew Delhi, Mumbai, Chennai andKolkata.

JOB FUNCTIONS:

15.7 The Payment and AccountingOrganization under the ChiefController of Accounts isresponsible for:-

(i) Arranging payments,through Pay and AccountsOffices and cheque drawingand disbursing officers ofpay and allowances,provident fund claims ,officec o n t i n g e n c i e s ,miscellaneous payments,loans and advances toGovernment Servants and

others as well as grants-in-aid. There are 8 PAO’s, 2CDDO & 40 Non-CDDO’s inthe Ministry of ConsumerAffairs, Food and PublicDistribution. The Non-CDDO’s present their claims/bills to the accredited PAO’swho issue cheques afterscrutiny of the bills. TheCDDO’s are authorized tomake payments for salariesand contingent claims afterobserving the relevantchecks. The CDDO issuescheques on the basis ofLetter of Credit (LOC) issuedin their favour by the PAO’sto the accredited bankbranches.

(ii) Issuance of Pension PaymentOrders (PPO) in respect ofretiring Government servantsand payment of retirementbenefits.

(iii) Supervision & Monitoring ofUtilization Certificates.

(iv) Maintenance of records ofLoans and Grants in Aid toState Govt. /PSU/Autonomous Bodies.

(v) Budget formulation includingthe “Outcome” and“Performance Budget” of theDepartment.

(vi) Preparation of ReceiptBudget.



(vii) Estimation and flow of non-tax revenue receipts for theDeptt. Of Consumer Affairs.

(viii) Disclosure and reportingrequirement under FRBMAct-2003.

(ix) Technical Advices to Ministry/D e p a r t m e n t / P S U /Autonomous Bodies.

(x) Review of Expenditure underModified Cash ManagementSystem.

(xi) The Internal Audit Unit isresponsible for conducting theInspection and internal audit ofoffice of all the DDOs and otherauditable units of theDepartments of the Ministry.“Value of Money Audit” i.e.performance audit is alsobeing taken up by the internalaudit wing of the Ministry.

15.8 The Principal Accounts Office ofthis Ministry generates periodicreports like the monthly accountsand the annual accounts. Themonthly accounts fulfill the need ofthe administration in the matter offinancial decision making as well asprudent management of Food. Theannual accounts represent a fairlyaccurate view of the financialstewardship of the Departmentduring the year. The PrincipalAccounts Office compiles themonthly accounts submitted to itby the various PAOs through

another software called “CONTACT”.The consolidated account of theMinistry is sent to the Ministry ofFinance, Controller General ofAccounts for further consolidationof accounts of the Union of India.Several reports are generated byusing ‘CONTACT’

15.9 In the PAO’s Offices, COMPACTsoftware covers the majoraccounting tasks of the PAO’s andsupplies input to the CONTACTsoftware working at the PrincipalAccounts Office. It is designed anddeveloped with an attempt toaddress all the Software SystemAttributes such as availability,portability, security andmaintainability. The features of thesoftware are:

(i) It is at the lowest level ofaccounting and it providesinformation to the higherlevels of accounting systemfor further processing.

(ii) It covers all the majoraccounting and paymentfunctions i.e. Pre Check,Budget, Compilation, GPFand Pension.

(iii) It aims at generation ofMonthly ConsolidatedAccounts data in theelectronic format forincorporation of the PrincipalAccounts Offices in theCONTACT Software database.



(iv) It is to provide variousmanagerial reports forexpenditure analysis likeExpenditure Control Register,Receipts versus Expenditurecomparison, Date wiseMonthly Statement (DMS)etc.

(v) It would help in preparation/printing of cheques to beissued by the PAOs.

15.10E-Lekha is G2G e-governanceinitiatives. The scope of theCOMPACT software is nowextended to generate a dailyclosing accounting andadministrative data sub set, whichcan be exported to a central database server at the end of each dayfrom each PAO. As and when thedata from each of the 300 odd PAOsare received at the Database server,this web-based application willfacilitate an ONLINE FinancialInformation System for fact basedfiscal management.

15.11 The Internal Audit is managed bythree Audit Parties, two at Kolkataand one at Headquarters NewDelhi. The periodicities of audit ofthe DDOs are in accordance withthe relevant provisions of theInternal Audit Manual of thisorganization. On completion ofAudit, inspection reports arecomplied and vetted by the officerincharge and issued to the

concerned administrative headsand concerned DDOs forcompliance and remedial action.

15.12 During the financial year 2005-06,46 units (PAO & DDO’s) and 10Grantee Institutions came underthe preview of Audit. However,only 43 units & 10 GranteeInstitutions could be audited in2005-06.7 outstanding civil unitsfor the year 2004-05 have also beencompleted by the Internal Auditunit. Steps are being taken to clearbacklog arising mainly due to non-constitution of Headquarters party.

15.13 A number of paras raised by audithas resulted in recovery of overpayments. Suggestions were alsomade by Internal Audit Parties toDDOs for proper maintenance ofrecords and Accounts. Also advisedto make payments in accordancewith the rules and provisions of theGovt. of India.

ACHIEVEMENTS (up to December’2006):

(i) The Internal Audit unit conductedinternal audit of 43 units.

(ii) Account at a glance for the financialyear 2005-06, Scheme –WiseExpenditure, sanctions regardingadvices to state Govt. etc. areavailable on the ministry web-sites.

(iii) The audits of Non-GovernedOrganization has started from thisfinancial year.



(iv) The excess amount of Rs.18450which was deducted on account ofcommission by Central Bank ofIndia has been recovered fromthem.

(v) A conference of DDO’s of Depttof Consumer Affairs has beenorganized during the month ofNovember 2006 to discuss theshor tcomings of DDO’s inrespect of automation ofaccount.

(vi) Clearance amounting toRs.9221969 in the books of Ministryof Commerce and Industry (SupplyDivision) under Cheques and Billsis hereby accepted by this officethrough Proforma B.

CASH SECTION:

15.14 Under merged DDOs scheme CashSection works under ChiefController of Accounts and isresponsible for payment of salary,personal claims of officers and staffof Department of Food and PublicDistribution and contingencypayments.

MISCELLANEOUS

15.15 The accounts in all PAOs arecompiled and generated throughthe computers. The accounts arereceived through accounts floppyin the Principal Accounts Officewhere they are furtherconsolidated through a separatesoftware package. The softwareshave been developed by NIC.

15.16 The Controller General of Accountsunder the Ministry of Finance, who isresponsible for overall control andcompilation of the accounts of all theMinistries and presentation ofFinance Accounts and AppropriationAccounts in the Parliament hasintroduced another softwarepackage “COMPACT” to be utilized inall the PAOs. The said package wouldhelp in diarising, passing of the bills,payments and compilation of theaccounts right from the point of thepresentation of the bill besidessettlement of GPF and pension cases.The staff is being trained with a viewthat the said package becomesoperational at the earliest.



Statement showing BE, RE and Actuals in respect of Department of Consumer Affairs

for fiscal year 1999-2000 to 2006-07.

(Rs. In Crore)

Year Demand Budget Estimates Revised Estimates Actuals

No. Plan Non- Total Plan Non- Total Plan Non- Total

Plan Plan Plan

1999-2000 8 16.50 9.66 26.16 14.00 24.08 38.08 13.36 13.02 26.38

2000-2001 40 10.00 12.06 22.06 9.50 42.71 52.21 9.86 44.23 54.09

2001-2002 36 8.50 37.55 46.05 10.77 63.24 74.01 9.24 60.90 70.14

2002-2003 39 10.15 52.48 62.63 7.50 75.33 82.83 7.13 88.85 95.98

2003-2004 18 9.67 24.76 34.43 9.67 32.98 42.65 8.24 34.85 43.09

2004-2005 18 18.25 32.55 50.80 18.25* 64.81 83.06 36.11 43.26 79.37

2005-2006 17 107.94 56.90 164.84 90.00 59.89 149.89 86.09 34.04 120.13

2006-2007 17 163.00 68.00 231.00 150.00 52.66 202.66 114.50 24.72 139.22**

2007-2008 17 213.00 57.24 270.24

*Additional funds to the extent of Rs. 20.00 crores provided under Plan Schemes in final Supplementary

Grant for 2004-05.

** Provisional expenditure upto December 2006 (Gross)


Schemes for The Benefit of The Persons with Disabilities

SCHEMES FOR THE BENEFIT OF THE PERSONS WITHDISABILITIES

CHAPTER - XVI

STATEMENT SHOWING THE NUMBER OF PERSONS WITH DISABILITIES IN VARIOUS

GROUPS (As on 31.12.2006)

Name of Ministry/Department: Consumer Affairs Office/Organization:

S.No. Group of Post Sanctioned post No. of PH employeesVH HH OH

1. 2. 3. 4. 5. 6.

1 Group A 215 1 - -

2 Group B 360 - - -

3 Group C 405 1 2 4

4 Group D 271 2 3 3

Total 1251 4 5 7

VH – Visually HandicappedHH – Hearing HandicappedOH – Orthopaedically Handicapped



Websites : www.fcamin.nic.in, www.core.nic.inNational Consumer Helpline Number : 1800-11-4000



Websites : www.fcamin.nic.in, www.core.nic.in

ANNUAL REPORT2006-07

The time has comeFor us to stand-up for our rights again.

Prin

ted

at

: Ara

vali

Prin

ters

& P

ub

lish

er P

vt. L

td.,

New

Del

hi

“A Customer is most important visitor on our premises. He is not dependent on us. We are

dependent on him. He is not an outsider on our business. He is part of it. We are not doing him a favour by serving him. He is doing us a favour by

giving us an opportunity to do so.”

Mahatma Gandhi

the time has come for us to stand-up for our rights again

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