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Industry

19- INDUSTRY

Introduction

THE Department for Promotion of Industry and Internal Trade (DPIIT) was established in 1995 and was reconstituted in 2000 with the merger of the Department of Industrial Development. Earlier separate Ministries for Small Scale Industries & Agro and Rural Industries (SSI&A&RI) and Heavy Industries and Public Enterprises (HI&PE) were created in October 1999. The Department was earlier called Department of Industrial Policy & Promotion; and was renamed DPIIT in 2019. In 2018, the matters related to e-Commerce were transferred to the Department and in 2019 the Department was given charge for matters related to internal trade, the welfare of traders, and their employees and Startups. The Department also handles matters related to Protection of Intellectual Property Rights (IPR) and administers six Acts related to IPRs. It also handles matters related to Foreign Direct Investment (FDI) and Investment by NRIs and undertakes the promotion of investment for the industrial development of the country.

National Manufacturing Policy

  • Objective: Enhancing the share of manufacturing in GDP to 25 percent and creating 100 million jobs over a decade or so.
  • The Policy is based on the principle of industrial growth in partnership with the states.
  • The policy envisages that the central government will create the enabling policy framework, provide incentives for infrastructure development on a Public-Private Partnership (PPP) basis through appropriate financing instruments, and state governments will be encouraged to adopt the instrumentalities provided in it.
  • National Investment and Manufacturing Zones (NIMZs) are an important instrumentality of the Policy.
  • To provide a conducive environment for manufacturing industries, these zones have been conceived as:
    • Large integrated industrial townships with state-of-the-art infrastructure
    • Land use on the basis of zoning
    • Clean and energy-efficient technology
    • Necessary social infrastructure
    • Skill development facilities

Manufacturing Clusters:

  • The objective of the National Plan for Manufacturing Clusters is to bring about convergence in the multiple models of development of industrial clusters by the central and state governments so as to affect better cost efficiency and optimal utilization of resources.
  • Following this DIPP has developed Industrial Information System, a web-portal to capture information of all industrial clusters/zones/nodes/parks in existence and those which are in pipeline.

Foreign Direct Investment Policy:

  • DPIIT is the nodal department for the formulation of the policy on Foreign Direct Investment (FDI).
  • It is also responsible for the maintenance and management of data on inward FDI into India based on the remittances reported by the Reserve Bank of India.
  • With a view to attracting higher levels of FDI, a liberal policy has been put in place on FDI under which FDI up to 100 percent is permitted under the automatic route in most sectors/ activities.
  • After the abolition of the Foreign Investment Promotion Board (FIPB), the process for granting FDI approvals has been simplified wherein the work relating to the processing of applications for FDI and approval of the government thereon under the extant FDI Policy and FEMA is now handled by the concerned ministries/departments.
  • However, DIPP is a single point interface of the government to facilitate investors for FDI through the approval route.
  • DIPP is the nodal department for approvals in the case of single-brand retail trading, multi-brand retail trading, food product retail trading, nonresident Indian/export-oriented unit investments.

Investment Promotion:

  • The Department plays an active role in investment promotion and facilitation through the dissemination of information on investment climate and opportunities within the country and by advising prospective investors about investment policies and procedures and opportunities.
  • It also coordinates with apex industry associations like Invest India (National Investment Promotion and Facilitation Agency), Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII), Associated Chambers of Commerce and Industry (ASSOCHAM), etc., in activities relating to the promotion of industrial cooperation, both through bilateral and multilateral initiatives, intended to stimulate the flow of foreign direct investment into India.

Make in India:

  • The initiative was launched in September 2014 as a national effort towards making India an important investment destination and a global hub for manufacturing, design, and innovation.
  • The program is based on four pillars namely, new processes, new infrastructure, new sectors, and new mindset.
  • Action plans were put in place for 21 sectors covering infrastructure, manufacturing, and services.
  • The Action plans include initiatives for infrastructure creation; Ease of Doing Business; innovation and R&D; fiscal incentives and skill development.
  • Make in India initiative is now focused on 27 sectors - 15 manufacturing sectors and 12 champion service sectors.
  • The sectoral plans for manufacturing sectors are coordinated in DPIIT while the sectoral plans for services are coordinated by the Department of Commerce in convergence with the Champion Services Sector initiative.

Public Procurement:

  • The Public Procurement (Preference to Make in India) Order 2017 (PPP-MII Order) was issued in 2017 pursuant to Rule 153 (iii) of the General Financial Rules 2017 as an enabling provision to promote domestic value addition in public procurement.
  • This Order is applicable for procurement of goods, services and works (including turnkey works) by a central ministry/department, their attached/subordinate offices, autonomous bodies controlled by the Government of India and government companies as defined in the Companies Act.
  • Under the PPP-MII Order, a Standing Committee, DPIIT has been constituted to review the implementation of the order.

Ease of Doing Business:

  • India ranks 77th in the World Bank’s annual Doing Business Report (DBR) 2019 as against 100th rank in the DBR 2018.
  • The DBR ranks countries on the basis of Distance to Frontier, an absolute score that measures the gap between India and the global best practice on 10 specified indicators.
  • India’s absolute score improved from 60.76 in DBR 2018 to 67.23 in DBR 2019.
  • The ease of doing business index is meant to measure regulations directly affecting businesses and a nation’s rank is based on the average of 10 indicators viz., starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency.
  • States too have been brought on board in the process to expand the coverage of these efforts.
  • DPIIT launched an online portal to track the implementation of reforms on a real-time basis.
  • The assessment of the Business Reforms Action Plan, 2017-2018 was released jointly by DPIIT and the World Bank in 2018.
  • An 80-point Business Reforms Action Plan 2019 has been prepared and shared with states and UTs.

Start up India:

  • Startup India is a flagship initiative of the Government of India, intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India.
  • Launched in 2016.
  • Objective: Supporting entrepreneurs, building up a robust start up ecosystem, and transforming India into a country of job creators instead of job seekers.
  • These programs are managed by a dedicated Startup India team, which reports to DPIIT.
  • Under the Startup India Scheme, eligible companies can get recognized as startups by DPIIT in order to access a host of tax benefits, easier compliance, IPR fast-tracking and other benefits.

Invest India:

  • Invest India has been set up as a joint venture (not for profit) company between the Department of Industrial Policy and Promotion, Federation of Indian Chambers of Commerce & Industry (FICCI), CII, NASSCOM, and various state governments.
  • Invest India is the National Investment Promotion and Facilitation Agency of India and acts as the first point of reference for investors.
  • This venture provides multiple forms of support such as market entry strategies, deep dive industry analysis, partner search, and location assessment policy advocacy with decision-makers.

Project Monitoring – Invest India Cell:

  • Project Monitoring Group (PMG), was set up in Cabinet Secretariat in 2013 and has recently been merged with DPIIT from 2019, with Invest India providing support.
  • The PMG is now known as Project Monitoring- Invest India Cell (PMIC).
  • It is an institutional mechanism for resolving of issues and fast-tracking the setting up and expeditious commissioning of large public, private, and Public-Private Partnership (PPP) Projects.
  • Any investor having issues delaying or likely to delay the execution of a project of the estimated value of ? 1,000 crore and above (now this threshold has been reduced to ? 500 crores) can raise them on the portal before PMIC, which takes them up with the concerned authorities in the central or state governments.
  • Research Parks: Research Parks are being established at IIT Guwahati, Hyderabad, Kanpur, Kharagpur, IISc Bangalore, Gandhinagar, Delhi and Bombay to propel successful innovation through incubation and joint R&D efforts between academia and industry.
  • Promoting Startups in Biotechnology: With the aim to foster and facilitate bio-entrepreneurship, Bio-clusters, Bio-Incubators, Technology Transfer Offices (TTOs) and Bio-Connect offices are being established in research institutes and universities across India.

Intellectual Property Rights

  • DPIIT is the nodal department for the administration of various laws related to Intellectual Property Rights: patents, trademarks, industrial designs, geographical indications of goods, copyrights, and semiconductor integrated circuit layout designs.
  • DPIIT is also the nodal Department for vetting of MoUs for the Cabinet, etc., entered into by various ministries/departments of Government of India from IPR angle, as also international negotiations on IPRs.
  • DPIIT also is the nodal department for dealing with World Intellectual Property Organization (WIPO).
  • The office of the Controller General of Patents, Designs and Trademarks (CGPDTM), a subordinate office under DPIIT, carries out statutory functions related to grant of patents and registration of trademarks, Design and Geographical Indications.
  • The Intellectual Property Appellate Board (IPAB), established in 2003, is the appellate tribunal to hear appeals against decisions of the Controller of Patents as also Registrar of Trade Marks and Geographical Indications.
  • Under the Finance Act, 2017, the Copyright Board has also been merged in the IPAB.

National IPR Policy:

  • The National IPR Policy lays the future roadmap for intellectual property in India.
  • Aims: To create and exploit synergies between all forms of intellectual property (IP), concerned statutes and agencies.
  • The Policy recognizes that India has a well-established TRIPS-compliant legislative, administrative and judicial framework to safeguard IPRs, which meets its international obligations while utilizing the flexibilities provided in the international regime to address its developmental concerns.
  • It reiterates India’s commitment to the Doha Development Agenda and the TRIPS agreement.
  • The Policy lays down the following objectives:
    • IPR Awareness
    • To have strong and effective IPR laws
    • To modernize and strengthen service-oriented IPR administration
    • Commercialization of IPRs get value for IPRs through commercialization.
    • To strengthen the enforcement and adjudicatory mechanisms for combating IPR infringements
    • Human capital development

Productivity and Quality:

  • DPIIT is the nodal department for the promotion of productivity and quality in the industrial sector.
  • The National Productivity Council (NPC) represents India in the Tokyo based Asian Productivity Organization (APO), of which India is a founder member.
  • NPC undertakes productivity augmentation through domain-specific consultancy, training, workshops, seminars and conferences to government, public and private sectors, productivity-related research, monitoring and evaluation of various government schemes and projects and information dissemination through collaboration with APO.

Industrial / Economic Corridors

Delhi-Mumbai Industrial Corridor

  • The DMIC project was launched in pursuance of an MoU signed between the Government of India and the Government of Japan in 2006.
  • The DMIC is being developed on either side, along the alignment of the 1504 km long Western Dedicated Rail Freight Corridor between Dadri (UP) and Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai.

Chennai-Bengaluru Industrial Corridor

  • The CBIC proposes to address the infrastructure bottlenecks through a holistic approach while benefiting from the inherent strengths and competitiveness of each of the CBIC states.

Bengaluru-Mumbai Economic Corridor

  • The BMEC is intended to facilitate development of a well-planned and resource-efficient industrial base served by world-class sustainable connectivity infrastructure, bringing significant benefits in terms of innovation, manufacturing, job creation and resource security to the two states.

Amritsar-Kolkata Industrial Corridor

  • In order to give a boost to industrial development in the densely populated states of northern and eastern India, the government is to commence work on creating an Amritsar-Kolkata Industrial Corridor (AKIC).
  • This will be structured around the Eastern Dedicated Freight Corridor (EDFC) as the backbone and also the highway system that exists in this route.

Vizag-Chennai Industrial Corridor

  • The Visakhapatnam-Chennai Industrial Corridor (VCIC) is a key part of the east Coast Economic Corridor (ECEC), India’s first coastal corridor.
  • VCIC is aligned with the Golden Quadrilateral and is poised to play a critical role in driving India’s Act East Policy.

National Industrial Corridor Development and Implementation Trust

  • In view of the success and importance of DMIC project, four more industrial corridors were assurance namely Amritsar - Kolkata Industrial Corridor (AKIC), Bengaluru - Mumbai Economic Corridor (BMEC), Chennai – Bengaluru Industrial Corridor (CBIC) and East Coast Economic corridor with Vizag Chennai industrial corridor (VCIC) as the initial phase of development.
  • It has been expanded and re-designated as National Industrial Corridor Development and Implementation Trust (NICDIT).

National Design Policy

  • The National Design Policy was approved in 2007.
  • A Design Clinic Scheme project is being implemented by National Institute of Design (NID) across the country which is intended to improve the manufacturing competency of the MSMEs through design intervention to their products and services and to provide them design edge in the global market and hence supports the Make in India programme.

Industrial Performance

  • The government has taken numerous steps to boost industrial development, capital formation and employment generation in the country.
  • These, inter-alia, include, ‘Make in India’, ‘Startup India’ initiatives and ‘Ease of Doing Business’.
  • Government has taken up a program of building pentagon of industrial corridors across the country with an objective to provide developed land and quality infrastructure for the development of industrial townships.

Performance of Eight Core Industries:

  • The Index of Eight Core Industries (ICI) monitors the production of eight core industries i.e., coal, crude oil, natural gas, refinery products, fertilizers, steel, cement, and electricity every month.
  • In line with the base year change in IIP, the Office of the Economic Adviser, Department of Industrial Policy and Promotion, revised the base year of Index of Eight Core Industries to 2011-12.
  • These eight industries have a combined weight of around 40.27 percent in Index of Industrial Production (IIP).

Leather Industry

  • Leather industry plays an important role in the Indian economy in view of its substantial overall output, export earnings, and employment potential.
  • The export of leather and leather products from the country has undergone a structural change in the last two decades, the share of leather footwear, leather garments, leather goods, and several articles of leather in the total exports has increased substantially as a result of government’s policy to encourage export of value-added leather products.

Indian Leather Development Programme:

  • Aims: Augmenting raw material base through modernization and technology upgradation of leather units, addressing environmental concerns, human resource development, supporting traditional leather artisans, addressing infrastructure constraints and establishing institutional facilities.

Cement Industry:

  • Cement is one of the most technologically advanced industries in the country.
  • Price and distribution control of cement has been removed since 1989 and the cement industry was de-licensed in 1991 under the Industrial (Development & Regulation) Act, 1951.
  • India is producing, different varieties of cement-like Ordinary Portland Cement (OPC), Portland Pozzolana Cement (PPC), Portland Blast Furnace Slag Cement (PBFS), Oil Well Cement, White Cement, etc.
  • These different varieties of cement are produced as per the Bureau of Indian Standard (BIS) specifications and its quality is comparable with the best in the world.
  • Cement cannot be sold in the country without the BIS mark.
  • India is the second-largest manufacturer of cement after China in the world.

Cigarette Industry:

  • The cigarette industry is an agro-based labor-intensive industry.
  • Cigarette included in the First Schedule to the Industries (Development & Regulations) Act, 1951 requires an industrial license.

Glass Industry:

  • The glass industry comes under the category of delicensed.
  • There is considerable scope in demand for glass fiber products particularly due to growth in the petrochemical sector and allied products.

Paper Industry:

  • India rules as one of the fastest-growing paper markets in the world.
  • The growing knowledge base coupled with synergistic contributions from flagship schemes, namely, Sarva Shiksha Abhiyan, (SSA) Rashtriya Madhyamik Shiksha Abhiyan (RMSA), Inclusive Education for the Disabled at Secondary School (IEDSS), adult education, Right to Education and central government scholarship and education loan scheme, assured a robust demand for paper and paper board.
  • The industry was de-licensed in July 1997.
  • As per the present policy, FDI up to 100 percent is allowed on the automatic route for the pulp and paper sector.

Salt Industry:

  • India continues to hold the third position in the production of salt in the world after China and the USA with an annual production of 260 lakh tonnes and the second-largest producer of iodized salt, next to China.

Central Public Sector Enterprises

  • The Ministry of Heavy Industries and Public Enterprises, comprising the Department of Heavy Industry and the Department of Public Enterprises, functions under the charge of Cabinet Minister (Heavy Industries and Public Enterprises).
  • There is a Minister of State for Heavy Industries and Public Enterprises.
  • The Ministry promotes the development and growth of three sectors i.e., capital goods, auto, and heavy electrical equipment in the country.
  • Some of the important tasks of the Department are listed as follows:
    • Coordination of matters of general policy affecting all public sector enterprises
    • Evaluation and monitoring the performance of public sector enterprises, including the Memorandum of Understanding mechanism
    • Matters relating to Permanent Machinery of Arbitration for such enterprises
    • Counselling, training, and rehabilitation of employees in CPSUs rendering advice relating to revival, restructuring or closure of public sector enterprises including the mechanisms;
    • Categorization of central public sector enterprises including conferring ‘Ratna’ status.

Micro, Small and Medium Enterprises

  • The Micro, Small, and Medium Enterprises (MSME) sector have emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades.
  • The Micro, Small and Medium Enterprises Development (MSMED) Act was notified in 2006 to address policy issues affecting MSMEs as well as the coverage and investment ceiling of the sector.
  • The Act provides the first-ever legal framework for recognition of the concept of “enterprise” which comprises both manufacturing and service entities.
  • It defines medium enterprises for the first time and seeks to integrate the three tiers of these enterprises, namely, micro, small, and medium.
  • The Act also provides for a statutory consultative mechanism at the national level with a balanced representation of all sections of stakeholders, particularly the three classes of enterprises; and with a wide range of advisory functions.
  • In 2007, subsequent to an amendment of the Government of India (Allocation of Business) Rules, 1961, erstwhile Ministry of Small Scale Industries and the Ministry of Agro and Rural Industries were merged to form the Ministry of Micro, Small and Medium Enterprises.
  • The primary responsibility of the promotion and development of MSMEs is of the state governments.
  • However, the Government of India supplements the efforts of the states through various initiatives.

Number of MSMEs:

  • As per the National Sample Survey (NSS) 73rd round, conducted by National Sample Survey Office, in 2015-16, there were 633.88 lakh unincorporated non-agriculture MSMEs, in the country engaged in different economic activities excluding the MSMEs registered under:
    • Sections 2 m(i) and 2m(ii) of the Factories Act, 1948,
    • Companies Act, 1956 and
    • Construction activities

Khadi and Village Industries Commission

  • KVIC established under the Act of Parliament (No. 61 of 1956), and as amended in 1987 and 2006 is a statutory organization under the Ministry of MSME and engaged in promoting and developing Khadi and Village Industries (KVI) for providing employment opportunities in the rural areas, thereby strengthening the rural economy.
  • KVIC has been identified as one of the major organizations in the decentralized sector for generating sustainable non-farm employment opportunities in rural areas at a low per capita investment.

Coir Board

  • The Coir Board is a statutory body established under the Coir Industry Act, 1953 for promoting the overall development of the coir industry and improvement of the living conditions of the workers engaged in this traditional industry.

Textiles

  • The Indian textile industry is one of the largest in the world with a large raw material base and manufacturing strength across the value chain.
  • The uniqueness of the industry lies in its strength both in the hand-woven sector as well as in the capital intensive mill sector.
  • The mill sector, with 3400 textile mills having installed capacity of more than 50 million spindles and 842000 rotors is the second largest in the world.
  • Traditional sectors like handloom, handicrafts, and small scale power-loom units are the biggest source of employment for millions of people in rural and semi-urban areas.
  • The textile industry has inherent linkgage with agriculture, culture, and traditions of the country making for its versatile spread of products appropriate for both domestic and the export markets.
  • The textile industry contributes to 7 percent of industry output in value terms of 2 percent of India’s GDP and to 15 percent of the country’s export earnings.
  • With over 45 million people employed directly, this industry is one of the largest sources of employment generation in the country.

Silk

  • Silk in the Indian subcontinent is a luxury item.
  • In India, about 97 percent of the raw mulberry silk is produced in the five states of Karnataka, Andhra Pradesh, Tamil Nadu, West Bengal, and Jammu and Kashmir.
  • Three other commercially important types of silk fall into the category of non-mulberry silks namely: eri; tasar; and MUGA.

Cotton

  • Cotton is one of the most important cash crops in India and the country accounts for around 25 percent of the total global fiber production.
  • In the raw material consumption basket of the Indian textile industry, the proportion of cotton is around 59 percent.
  • Cotton sustains the livelihood of an estimated 5.8 million cotton farmers and 40- 50 million people engaged in related activities such as cotton processing and trade.
  • India has the largest area under cotton in the world with around 105 lakh hectares under cotton cultivation which is around 35 percent of the world area.
  • To support the cotton industry, the Government of India announces Minimum Support Price (MSP) for two basic staples groups viz., medium staple, and long-staple cotton.
  • Cotton Corporation of India (CCI), a Public Sector Undertaking under the Textile Ministry, is the principal agency of the Government of India for undertaking MSP operations in the event of prevailing seed cotton (kapas) price touching the MSP level.

Jute

  • India is the largest producer of jute in the world with an average production of about 80 lakh bales of raw jute annually.
  • The Government of India provides support to the jute growers not only through MSP operation by the Jute Corporation of India but also through direct purchase of jute sacking valued at around ? 6000 crores annually for packing foodgrains by invoking provisions under the Jute Packaging Material (Compulsory Use in Packing Commodities) Act, 1987.
  • A software platform “Jute-SMART” (Jute Sacking Supply Management & Requisition Tool) was implemented for procurement of jute sacking from 2016.
  • This platform is an excellent example of e-Governance where multiple stakeholders are on the same platform managing the complex transactions relating to procurement of jute sacking in a transparent and fair manner for a number of state governments from a number of jute mills involving various intermediaries.
  • Jute ICARE has been launched for increasing the income of jute farmers by at least 50 percent through the promotion of certified seeds, better agronomic practices, and the use of microbial retting of the jute plant.

Wool

  • For the holistic growth of the wool sector, the Ministry formulated a new integrated formulated a new integrated program i.e. Integrated Wool Development Programme, (IWDP).
  • The program is to be implemented through the Central Wool Development Board in major wool-producing states in the next three years.
  • A program for the development of the Pashmina sector in J&K was announced.

Technical Textiles:

  • Technical textiles are the future of the textile industry.
  • High tenacity fibers are the lightest and toughest fabrics yet.
  • They have a variety of applications in automobile, aerospace, architecture, and building, occupational therapy, sport and apparel industries, etc.

Steel

  • The Ministry of Steel, is responsible for planning and development of iron and steel industry, development of essential inputs such as iron ore, limestone, dolomite manganese ore, chromites, ferro-alloys, sponge iron etc, and other related functions.
  • Crude steel production has shown a sustained rise since 2013-14 along with capacity.
  • This industry has been a core pillar of industrial development in the country.
  • India’s crude steel capacity has steadily risen to 142 MT at present and India has become the world’s second largest producer of steel (-111 MT crude steel production in 2018).

Global Ranking of Indian Steel:

  • The consistent growth in production has ensured that India remains a dominant player in the global steel industry.
  • Out of a total global crude steel production of 1,241 MT (during January-August 2019, up by 4.4 percent), India was the 2nd  largest crude steel producer (75.69 MT) with a 6.1 percent share in total world production and a 4.4 percent growth in production over the same period of 2018.
  • China produced 664.87 mt of crude steel during this period and remained the largest crude steel producer in the world, accounting for 75 percent of Asian production and 54 percent of world crude steel production.

National Steel Policy:

  • The National Steel Policy (NSP) was launched in 2017 to ensure that the Indian steel sector is prepared to service the growing requirements of modern India and to promote healthy sustainable growth for the sector.
  • Key features of the NSP 2017 include establishing self-sufficiency in steel production by providing policy support and guidance to private manufacturers, MSME steel producers, and CPSEs.
  • The policy projects crude steel capacity of 300 million tonnes (MT), production of 255 MT, and a robust finished steel per capita consumption of 160 kg by 2030-31, as against the current consumption of 74 kg.
  • The policy also envisages 100 percent indigenous fulfillment of the demand for high-grade automotive steel, electrical steel, special steels and alloys for strategic applications along with an increase in domestic availability of washed coking coal so as to reduce major dependence on coking coal from about 85 percent to around 65 percent by 2030-31.

Key Initiatives:

  • The Ministry has initiated action on several initiatives to operationalize the actions enlisted in the National Steel Policy.
  • In addition, an integrated steel hub is being set up in Eastern India that will act as a pilot location for several of these initiatives.

Fertilizers

  • Department of Fertilizers comes under the ambit of the Ministry of Chemicals and Fertilizers.
  • The main objective of the Department is to ensure adequate and timely availability of fertilizers at affordable prices for maximizing agricultural production in the country.
  • The main functions of the Department include planning, promotion, and development of the fertilizer industry, planning and monitoring of production, import and distribution of fertilizers, and management of financial assistance by way of subsidy/concession for indigenous and imported fertilizers.
  • The Department has one attached office under it, viz., Fertilizers Industry Coordination Committee (FICC).
  • It also administers 9 Fertilizer Public Sector Undertakings (PSUs).
  • Agriculture which accounts for about one-seventh of the GDP provides sustenance to nearly two-thirds of our population, Besides, it provides crucial backward and forward linkages to the rest of the economy.
  • The Department of Fertilizers has taken various initiatives to augment the growth of the sector.
  • These initiatives aim at working in the direction of promoting the indigenous production of fertilizers and making them available to the farmers in time.

New Urea Policy-2015:

  • Objectives:
    • Maximizing indigenous urea production
    • Promoting energy efficiency in urea production
    • Rationalizing subsidy burden on the government.
  • It is expected that the domestic urea sector would become globally competitive in terms of energy efficiency over a period of three years.
  • On the basis of actual energy consumption and preset norms, the units have been divided into three groups and revised energy consumption norms have been fixed for the next three financial years.
  • The higher energy efficiency due to these measures will reduce the subsidy bill.

Neem Coating of Urea:

  • Neem coating of urea (NCU) has been made mandatory for all the indigenous producers.
  • Since NCU cannot be used for industrial purposes, illegal diversion of subsidized urea to non-agricultural use would not be possible.
  • By curbing this illegal diversion of urea for non-agricultural purposes, the government aims to prevent subsidy leakages.

New Investment Policy:

  • New Investment Policy was launched in 2013 to facilitate fresh investment in the urea sector and to make India self-sufficient in it.
  • Further, an amendment was brought in to give benefits to only those units whose production starts within five years from the amendment.
  • The subsidy will be given only upon domestic sales as at present for a period of 8 years from the date of the start of production.

Chemicals and Petrochemicals

  • The Department of Chemicals and Petrochemicals was under the Ministry of Industry until 1989 when it was brought under the Ministry of Petroleum and Chemicals.
  • In 1991, the Department of Chemicals and Petrochemicals was transferred to the Ministry of Chemicals and Fertilizers.
  • The Department is entrusted with the responsibility of planning, development, and regulations of the chemicals, petrochemicals and pharmaceutical industry sector, inducting:
    • Drugs and pharmaceuticals, excluding those specifically allotted to other departments;
    • Insecticides excluding the administration of the Insecticides Act, 1968;
    • Molasses;
    • Alcohol - industrial and potable from the molasses route;
    • All organic and inorganic chemicals not specifically allotted to any other ministry or department; Petrochemicals;
    • Synthetic rubber;
    • Planning, development, and control of, and assistance to, all industries dealt with by the Department.

Chemicals and Petrochemicals Industry:

  • The chemical and petrochemical industry is a knowledge and capital intensive industry.
  • It includes basic chemicals and its products, petrochemicals, fertilizers, paints, varnishes, gases, soaps, perfumes and toiletry, and pharmaceuticals.
  • The industry is the mainstay of industrial and agricultural development of the country and provides building blocks for several downstream industries, such as textiles, papers, paints, soaps, detergents, pharmaceuticals, varnish, etc.
  • India produces a large number of fine and specialty chemicals, which have very specific uses and find wide usage as food additives, pigments, polymer additives, and anti-oxidants in the rubber industry, etc.
  • In the chemical sector, 100 percent FDI is permissible.
  • Manufacture of most of the chemical and petrochemical products is delicensed.
  • The entrepreneurs need to submit an Industrial Entrepreneurs’ Memorandum (IEM) to the Department of Industrial Policy and Promotion provided no locational angle is applicable.
  • Only the following items are covered in the compulsory licensing list because of their hazardous nature:
    • Hydrocyanic acid and its derivatives
    • Phosgene and its derivatives
    • Isocynates and di-isocynates of hydrocarbons.
  • Department of Chemicals and Petrochemicals is implementing the three schemes under the National Policy on Petrochemicals:
    • Setting up of plastic parks
    • Setting up of Centres of Excellence in Polymer Technology
    • National awards for technology innovation in the petrochemical and downstream plastic processing industry.

Pharmaceuticals

  • The Department of Chemicals and Petrochemicals was under the Ministry of Industry until 1989 when it was brought under the Ministry of Petroleum and Chemicals.
  • In 1991, the Department of Chemicals and Petrochemicals was transferred to the Ministry of Chemicals and Fertilizers.
  • The Department is entrusted with the responsibility of planning, development, and regulations of the chemicals, petrochemicals and pharmaceutical industry sectors.

Pharmaceuticals Pricing Policy:

  • The Department notified the National Pharmaceutical Pricing Policy-2012 (NPPP-2012) in 2012
  • Objective: To put in place a regulatory framework for pricing of drugs to ensure availability of required medicines - “essential medicines” - at reasonable prices, even while providing sufficient opportunity for innovation and competition to support the growth of the industry.
  • Subsequently, to implement the NPPP-2012, the new Drugs (Prices Control) Order, 2013 was notified in 2013 to control the prices of specified dosages and strengths as under the National List of Essential Medicines-2011(NLEM-2011).
  • This was modified to include medicines included in NLEM-2015 in 2016 after the same was received from the Ministry of Health and Family Welfare that had constituted an Expert Core Committee to review and recommend the revision of the National List of Essential Medicines (NLEM-2011).

Medical Devices:

  • The medical devices industry is a multi-product industry, producing a wide range of products.
  • Indian Medical Devices industry depends on imports up to the extent of almost 70 percent.
  • In 2014, the government launched the “Make in India” campaign, with the objective of making India a global manufacturing hub; thus, bringing foreign technology and capital into the country.

Pradhan Mantri Bhartiya Janaushadhi Pariyojana:

  • The Jan Aushadhi Scheme was launched in 2008 with the aim of selling affordable generic medicines through dedicated sales outlets.
  • The first Jan Aushadhi Store was opened at Amritsar in Punjab in 2008.
  • The original target of the campaign was to establish Jan Aushadhi Stores in every district of our country.
  • Recently, “Pradhan Mantri Jan Aushadhi Yojana” (PMJAY) has been renamed as “Pradhan Mantri Bhartiya Janaushadhi Pariyojana” (PMBJP) and “Pradhan Mantri Jan Aushadhi Kendra” (PMJAK) as “Pradhan Mantri Bhartiya Janaushadhi Kendra” (PMBJK).

Indian Drugs and Pharmaceuticals Limited:

  • IDPL was incorporated in 1961 with the primary objective of creating self-sufficiency in essential life-saving drugs and medicines.
  • The company has presently three manufacturing plants, one each at Rishikesh (Uttarakhand), Hyderabad (Andhra Pradesh), and Gurgaon (Haryana).

Mines and Minerals

  • Ministry of Mines is responsible for survey and exploration of all minerals, other than natural gas, petroleum and atomic minerals as well as Offshore Areas Mineral (Development and Regulation) Act, 2002; for mining and metallurgy of non-ferrous metals like aluminum, copper, zinc, lead, gold, nickel, etc. and for the administration of the Mines and Minerals (Regulation and Development) Act, 1957.
  • The Ministry is responsible for legislation for the regulation of mines and development of minerals within the territory of India, including:
    • Mines and minerals underlying the ocean within the territorial waters or the continental shelf, or the exclusive economic zone and other maritime zones of India as may be specified, from time to time by or under any law made by Parliament;
    • Regulation of mines and development of minerals other than coal, lignite, and sand for stowing and any other mineral declared as prescribed substances for the purpose of the Atomic Energy Act, 1962 (33 of 1962) as declared by law.

National Mineral Exploration Trust:

  • The Government notified National Mineral Exploration Trust Rules, 2015 and has also established National Mineral Exploration Trust (NMET) in pursuance of subsection (1) of Section 9C of the Mines and Minerals (Development and Regulation) Amendment Act, 1957.
  • Objective: To promote regional and detailed mineral exploration in the country to increase overall mineral production and achieve sustainable development of the mineral sector.

Pradhan Mantri Khanij Kshetra Kalyan Yojana:

  • The government launched PMKKKY which is to be implemented by the district mineral foundations of the respective districts.
  • PMKKKY will help in creating a congenial mining environment, ameliorate the condition of the affected person and create a win-win situation for the stakeholders.
  • A national portal for DMF is being developed which will help monitor the implementation of projects under the PMKKKY scheme.
  • The monitoring of PMKKKY would be done under “DISHA”, the District Development Coordination and Monitoring Committee of Ministry of Rural Development to promote synergy and convergence for greater impact.

National Mineral Exploration Policy:

  • The government unveiled the National Mineral Exploration Policy, 2016 (NMEP) which spells out the strategy and outlines the action plan that the Government will adopt to ensure a comprehensive exploration of the country’s mineral resources (non-fuel and non-coal).
  • Aims: Accelerating the exploration activity in the country through enhanced participation of the private sector.
  • The Ministry has developed a Transparency, Auction, Monitoring and Resource Augmentation (TAMRA) portal and mobile application.

Star Rating of Mines:

  • The Ministry of Mines launched in 2016 Scheme of Star Rating of Mines/ mining leases for implementation of Sustainable Development Framework (SDF).
  • The Star Ratings are to be awarded, based on evaluation of the performance of mines on techno, socio-economic and environmental parameters and give objective reporting of their activities.
  • It has been instituted as a two-tier system providing self-evaluation templates to be filled in by the mine operator followed by validation through the Indian Bureau of Mines.

Mining Surveillance System:

  • To curb the menace of illegal mining, a satellite-based monitoring system namely Mining Surveillance System (MSS), was developed and launched.
  • Aims: To establish a regime of responsive mineral administration through automatic remote sensing detection technology.

Mineral Resources

  • The classification of reserves/resources of various minerals based on United Nations Framework Classification (UNFC) was done in April 2010 following which the National Mineral Inventory was prepared.
  • The UNFC consists of a three-dimensional system with three axes-economic viability; feasibility assessment; and geological assessment.

MINERAL RESOURCES

Bauxite

  • Total resources (as per UNFC): 3,897 million tonnes.
  • These resources include 656 million tonnes of reserves and 3,240 million tonnes of remaining resources.
  • By grades, about 81 percent of resources are of metallurgical grade.
  • The resources of refractory and chemical grades are limited and together account for about 5 percent.
  • Odisha alone accounts for 51 percent of the country’s resources of bauxite followed by Andhra Pradesh (16 percent), Gujarat (9 percent), Jharkhand (6 percent), Maharashtra (5 percent) and Chhattisgarh and Madhya Pradesh (4 percent each).
  • Major bauxite resources are concentrated on the east coast of Odisha and Andhra Pradesh.

Chromite

  • Total resources (as per UNFC): 344 million tonnes ( in 2015).
  • Comprising 102 million tonnes reserves (30 percent) and 242 million tonnes remaining resources (70 percent) mostly in the Sukinda valley in Jajpur and Keonjhar districts.
  • Minor deposits are scattered over Manipur, Nagaland, Karnataka, Jharkhand, Maharashtra, Tamil Nadu, and Andhra Pradesh and Telangana.
  • Gradewise, charge-chrome grade accounts for 31 percent resources followed by ferrochrome grade (18 percent), beneficial grade (25 percent), and refractory grade 14 percent.

Copper

  • Total resources (copper ore): 1511.50 million tonnes (2015), Copper metal: 12.16 million tonnes.
  • Of these 207.77 million tonnes (13.74 percent) fall under the Reserve category containing 2.73 million tonnes of copper metal and the balance 1303.73 million tonnes (86.26 percent) are ‘Remaining Resources’ containing 9.42 million tonnes of copper metal.
  • Rajasthan: 813.33 million tonnes ore (54 percent), Copper metal:  4.48 million tonnes.
  • Madhya Pradesh: 283.43 million tonnes ore (19 percent), Copper metal: 3.42 million tonnes.
  • Jharkhand: 295.39 million tonnes ore (20 percent), Copper metal: 3.28 million tonnes.

Gold

  • As per UNFC system, as in 2015, the total resources of gold ore (primary and placer) in the country were estimated at 527.96 million tonnes.
  • The resources include placer-type gold ore in Kerala estimated at 26.12 million tonnes containing 5.86 tonnes of gold metal.
  • The largest resources in terms of gold ore (primary): Bihar (44 percent) > Rajasthan (25 percent) > Karnataka (21 percent) > West Bengal and Andhra Pradesh (3 percent each), Telangana & Madhya Pradesh (2 percent each).
  • In terms of metal content, Karnataka remained on top followed by Rajasthan, Bihar, Andhra Pradesh, Jharkhand, etc.

Iron Ore

Hematite:

  • As per UNFC system, the total resources of hematite as in 2015 are estimated at 22,487 million tonnes.
  • Hematite and magnetite are the most important iron ores in India.
  • Of these, hematite is considered to be superior because of its higher grade.
  • About 59 percent of hematite ore deposits are found in the eastern sector.
  • Indian deposits of hematite belong to the Precambrian iron ore series and the ore is within banded iron ore formations occurring as massive, laminated, friable, and also in powdery form.
  • States: Odisha - 7,559 million tonnes (34 per cent) > Jharkhand 5,286 million tonnes (24 per cent) > Chhattisgarh - 4,858 million tonnes (22 per cent), Karnataka - 2,467 million tonnes (11 per cent) > Goa - 1189 million tonnes (5 per cent).

Magnetite:

  • As per the UNFC system, the total resources (2015): 10,789 million tonnes.
  • About 92 percent of magnetite ore deposits occur in the southern sector, especially in Karnataka.
  • It also occurs in the form of oxide, either in igneous or metamorphosed banded magnetite-silica formation, possibly of sedimentary origin.
  • Classification on the basis of grades shows 20 percent resources of metallurgical grade while 80 percent of resources belong to unclassified, not known, and other grades.
  • India’s 96 per cent magnetite resources are located in four states:  Karnataka - 7,802 million tonnes (72 per cent) > Andhra Pradesh - 1,392 million tonnes (13 per cent) > Rajasthan- 617 million tonnes (6 per cent) > Tamil Nadu - 507 million tonnes (5 per cent).

Lead and Zinc

  • Total resources of lead and zinc ores (2015): 749.46 million tonnes.
  • States: Rajasthan 670.34 mt (89.44 per cent) > Andhra Pradesh 22.69 mt (3.02 per cent) > Madhya Pradesh 14.84 mt (1.98 per cent), Bihar 11.43 mt (1.52 per cent) > Maharashtra 9.27 mt (1.24 per cent).
  • Resources are also established in Gujarat, Meghalaya, Odisha, Sikkim, Tamil Nadu, Uttarakhand, and West Bengal.

Manganese Ore

  • Total resources (2015): 496 million tonnes.
  • States: Odisha (44 per cent) > Karnataka (22 per cent) > Madhya Pradesh (12 per cent) Maharashtra and Goa (7 per cent) > Andhra Pradesh (4 per cent) > Jharkhand (2 per cent).

Nickel

  • Total resources (2015): 189 million tonnes.
  • An important occurrence is a nickeliferous limonite in the overburden of chromite in Sukinda Valley, Jajpur district, Odisha, where it occurs as oxide.
  • Nickel also occurs in sulfide form along with copper mineralization in East Singhbhum district, Jharkhand.
  • It is found associated with uranium deposits at Jaduguda, Jharkhand, and the process is being developed for its recovery.
  • States: Odisha (92 per cent) > Jharkhand (8 per cent) > Nagaland > Karnataka.

Diamond

  • Total resources: 31.84 million carats.
  • By grades: Gem variety (2.38 percent), Industrial variety (2.64 percent), Unclassified category (95 percent).
  • States: Madhya Pradesh (90.18 percent), Andhra Pradesh (5.73 percent), Chhattisgarh (4.10 percent).

Gypsum

  • Total resources (2015): 1,330 million tonnes.
  • By grades: Fertilizer/pottery (80 percent), Cement/paint (13 percent), unclassified and not-known (5 per cent).
  • States:  Rajasthan (81 percent), Jammu & Kashmir (14 percent).
  • The remaining 5 percent resources are in Tamil Nadu, Gujarat, Himachal Pradesh, Karnataka, Uttarakhand, Andhra Pradesh and Madhya Pradesh.

Graphite

  • Total resources (2015): 194.89 million tonnes.
  • Graphite occurrences are reported from various states but the deposits of economic importance are located in Andhra Pradesh, Jharkhand, Karnataka, Kerala, Odisha, Rajasthan, and Tamil Nadu.
  • States: Arunachal Pradesh (37 per cent) > Jammu and Kashmir (32 per cent) > Odisha (10 per cent) > Jharkhand (9 per cent) > Tamil Nadu (4 percent).
  • However, in terms of reserves, Jharkhand has a leading share of about 52 percent followed by Tamil Nadu 41 percent.

Limestone

  • Total resources (2015): 203,225 million tonnes.
  • States: Karnataka (27 per cent ) > Andhra Pradesh and Rajasthan (12 per cent each) > Gujarat (10 per cent) > Meghalaya (9 per cent) > Telangana (8 per cent) > Chhattisgarh (5 per cent).

Mica

  • Total resources (2015): 635,302 tonnes.
  • States: Andhra Pradesh (40 per cent) > Rajasthan (28 per cent)> Odisha (16 per cent) > Maharashtra (13 percent) > Bihar (2 percent) > Jharkhand and Telangana (less than 1 percent).

Magnesite

  • Total resources (2015): 394 million tonnes.
  • States: Uttarakhand (59 per cent) > Rajasthan (14 per cent) > Tamil Nadu (25 per cent).
  • Resources are also located in Andhra Pradesh, Himachal Pradesh, Jammu and Kashmir, Karnataka and Kerala.
  • Occurrences of magnesite in Tamil Nadu are low in lime and high in silica whereas those of Uttarakhand are high in lime and low in silica.

Phosphate Minerals

  • Total resources (2015): 24.04 million tonnes.
  • States:  West Bengal (57 per cent) > Jharkhand (30 per cent) > Meghalaya (5 per cent).
  • The remaining 8 percent of resources are available in Rajasthan, Andhra Pradesh, Gujarat, and Tamil Nadu.

Geological Survey of India

  • Geological Survey of India (GSI) the premier earth science organization of the country, is the principal provider of basic earth science information to the Government, Industry, and the geo-scientific sector.
  • Beginning in 1851 as a department engaged primarily in research for coal, GSI in its last 163 years of existence has expanded its activities manifold and has been involved either directly or indirectly in almost all areas of nation-building.
  • GSI is now the custodian of one of the largest and most comprehensive earth science databases developed over the last one and a half-century.
  • The present activity domains of GSI include surface mapping, aerial and remote sensing surveys, offshore surveys, exploration for mineral and energy resources, engineering geology, geotechnical investigations, geo-environmental studies, the geology of water resources, geo-hazard studies, research and development, training and capacity building and information services, etc.

Indian Bureau of Mines

  • Indian Bureau of Mines (IBM) established in March 1948, is a multidisciplinary scientific and technical organization under the Ministry of Mines with statutory and developmental responsibilities for conservation and systematic exploitation of mineral resources other than coal, petroleum, and natural gas, atomic minerals and minor minerals.
  • The Indian Bureau of Mines performs regulatory functions under the relevant provisions of the Mines and Mineral (Development and Regulation) Act, 1957 amended in 2015 and rules made there under namely enforcement of the Mineral Conservation and Development Rules, 2017, Minerals (Other than Atomic and Hydro Carbon Energy Minerals) Concession Rules, 2016 and other new rules and Environmental (Protection) Act, 1986 and Rules made thereunder.
  • IBM also functions as a data bank of mines and minerals and publishes statistical information.
  • It advises the central and state governments on all aspects of the mineral industry, trade, legislation, etc.      

National Aluminium Company Limited:

  • National Aluminium Company Limited (NALCO) is a Navratna CPSE under the Ministry of Mines.
  • It was established in 1981 in the public sector, with its registered office at Bhubaneswar.
  • NALCO is the first Public Sector Company in the country to venture into the international market in a big way with London Metal Exchange (LME) registration since 1989.
  • The Company is listed at the Bombay Stock Exchange (BSE) since 1992 and National Stock Exchange (NSE) since 1999.

Hindustan Copper Limited:

  • Hindustan Copper Limited (HCL), a Mini Ratna Government of India Enterprise under the administrative control of the Ministry of Mines, was incorporated in 1967 under the Companies Act,1956.
  • It was established as a Govt. of India enterprise to take over all plants, projects, schemes, and studies pertaining to the exploration and exploitation of copper deposits, including smelting and refining from National Mineral Development Corporation Ltd.
  • It has the distinction of being the nation’s only vertically integrated copper producing company as it manufactures copper right from the stage of mining to beneficiation, smelting, refining, and casting of refined copper metal into downstream saleable products.

National Institute of Rock Mechanics:

  • NIRM is the only institution in south Asia exclusively devoted to research in rock mechanics.
  • Over the period of last 25 years, the institute has the privilege to provide its expertise to various central, state government agencies and public sector undertakings in the field of mining, hydroelectric projects, nuclear power projects, oil and gas sector and various infrastructure project authorities including rail, road, airports, hospital, etc.

National Institute of Miners’ Health:

  • National Institute of Miners’ Health, Nagpur (NIMH) is an autonomous institute established under the Ministry of Mines, with the objective of promotion of occupational health and prevention of occupational diseases among the persons employed in mining and mineral-based industries.

Jawaharlal Nehru Aluminium Research Development and Design Centre:

  • The JNARDDC, Nagpur is a Centre of Excellence set up in 1989 as a joint venture of Ministry of Mines, Government of India and UNDP with a view to providing a major R&D support system for the emerging modern aluminum industry in India.
  • The Centre became functional since 1996.
  • The Centre is recognized as a scientific and industrial research organization by the Department of Scientific and Industrial Research.
  • It is the only institute of its kind in India pursuing the cause of R&D from bauxite to finished product under one roof.

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