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Formation of Tirupati-Chennai-Nellore Industrial Growth Corridor



Formation of Tirupati-Chennai-Nellore Industrial Growth Corridor

Government of India has not proposed to form the Tirupati- Chennai-Nellore as the tri-city industrial growth corridor. However, this region falls under the influence zone of Two Industrial Corridors namely Chennai Bengaluru Industrial Corridor (CBIC) and Vishkhapatnam-Chennai Industrial Corridor (VCIC). Initial master planning of CBIC & Comprehensive Development Plan (CDP) of VCIC have been completed. Under VCIC, Asian Development Bank (ADB), has initiated the process of Master Planning of four nodes namely Vishakhapatnam, Kakinada, Ganavaram-Kankipadu and Srikalahasti-Yerpedu in Andhra Pradesh as identified in the CDP. Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) has been entrusted with the task of getting the Detailed Master Planning, Preliminary Engineering and Environment Impact Assessment of three nodes namely Ponneri(Tamil Nadu), Krishnapatnam (Andhra Pradesh) & Tumkur (Karnataka) done, for which process has been initiated.


This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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Crop loss to Cardamom Farmers due to Deficient Rainfall

In view of the prevalence of long dry spell in cardamom growing areas of South India, Spices Board had constituted a team to assess its impact on the cardamom production. The study was done in the Idukki District of Kerala, as it produces 80% of small cardamom production of the country. As per the report of the team, the prolonged dry spell with high temperature prevailed from December 2015 to first fortnight of May 2016 and this period is the crucial period for development of tillers and panicle initiation and development in cardamom. The team estimated that on an average about 10% plant loss and 20-25% crop loss may occur in Idukki District of Kerala during 2016-17.

Government through the Spices Board is implementing different programmes/schemes and providing financial assistance to the farmers for the development of cardamom. Apart from the regular schemes implemented by Spices Board for the development of cardamom, the Spices Board is also focusing on providing support to farmers through cardamom replanting scheme wherever plant loss is noticed, developing water resources through storage structures like farm ponds, wells, rain water harvesting devices, assistance for purchase of irrigation equipments and conducting the training/campaigns to educate the farmers on mulching/shade maintenance and irrigation etc.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.


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Approval for setting up of IT/ITES SEZs

Government has approved the proposal for setting up of IT/ITES Special Economic Zones in many parts of the Country. As on date, the Board of Approval (BoA) has approved 259 proposals for setting up of SEZ relating to Information Technology/Information Technology Enabled Services (IT/ITES)/ Electronic Hardware sectors SEZs in many parts of the Country.

In terms of Rule 6(2)(a) of the Special Economic Zones Rules, 2006, the letter of approval granted to a SEZ developer is valid for a period of three years within which time effective steps are to be taken by the developer to implement the approved proposal. The Board of Approval may, on an application by the developer, extend the validity period of the letter of approval. SEZ developers have sought extension of validity period of the letter of approval granted to them for the execution of their projects for various reasons including adverse business climate due to global recession, delay in approvals from statutory State Government bodies, delay in environmental clearance, lack of demand for space in SEZs, unstable fiscal incentive regime for SEZs etc. During the last four years and current financial year (upto 15th July, 2016), extension of time have been granted to 139 developers of SEZ including IT/ITES Sector across the country to complete their projects.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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Quality Standards for Import of Goods

Increase of tariff or imposition of Quantitative Restriction are measures to regulate the volume of imports of particular commodities. Technical regulations, also called mandatory standards, play a much more important role globally in checking import of poor quality goods.

WTO Agreement on Technical Barriers to Trade (TBT) empowers member countries to mandate standards on goods with the objective of maintaining national security requirements; prevention of deceptive practices; protection of environment, animal or plant life or health; human health or safety. Similarly, WTO Agreement on Sanitary and Phytosanitary (SPS) Measures empowers member countries to mandate standards on goods with the objective of protecting human, animal or plant life or health.

Various ministries and agencies in Government of India like Food Safety and Standards Authority of India (FSSAI), Ministry of Steel, Department of Electronics & Information Technology, etc. are pursuing these objectives and have mandated standards in the recent past. Any standard mandated by the national authority is equally applicable to domestically manufactured products as well as imported products.



Also, the Department of Commerce has been organizing National Standards Conclaves to sensitize stakeholders/ministries to meet the objectives of the standards like protection of human health or safety, animal or plant life or health, the prevention of deceptive practices, national security requirements or the environment with a view to protect the interests of consumers. The central government is also pursuing the agenda with the state governments and last year, five regional standards conclaves were organized to generate awareness across the country. This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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Capacity Building to Track Trade Restrictive Measures

Government of India has taken various steps to track the trade restrictive measures of other countries through various mechanisms such as regular interaction with trade, industry and legal experts dealing with international trade law, organizing conclaves/workshops on important issues like standards, monitoring of draft notifications of member countries, their implication, Indian Trade Portal, active feedback from Indian Embassies, etc.

India’s position is that issues related to labour and environment should be dealt in the appropriate forum. India have also maintained that in the WTO negotiations first the agenda of Doha round of trade negotiations should be completed. At the WTO ministerial conference held at Nairobi in December 2015 some members wished to identify and discuss issues other than the remaining issue in the Doha Development Agenda (DDA), others – mostly developing country members - did not agree. It was agreed in Nairobi that any decision to launch negotiations multilaterally on such issues would have to be taken by consensus. This is reflected in the Nairobi Ministerial Declaration. It acknowledges the differences in views and states that any decision to launch negotiations multilaterally on any new issues would need to be agreed by all Members.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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Foreign Investment under 'MAKE IN INDIA' Programme


            The `Make in India’ initiative was launched in September, 2014 with the aims of promoting India as an important investment destination and a global hub for manufacturing, design, and innovation. Thereafter, during the period October, 2014 to May, 2016, the FDI equity inflow has increased by 46%, i.e. from US$ 42.31 billion to US$ 61.58 billion in comparison to previous 20 months (February, 2013 to September, 2014). FDI inflow has also increased by 37% from US$ 62.39 billion to US$ 85.75 billion. India has been ranked 3rd in the list of top prospective host economies for 2016-18 in the World Investment Report (WIR) 2016 of UNCTAD.

            To further boost the entire investment environment and to bring in foreign investments in the country, the Government is taking various measures like opening up FDI in many sectors; carrying out FDI related reforms and liberalization and improving ease of doing business in the country. Steps are being taken for development of support infrastructure to facilitate setting up of industries such as transport infrastructure, utility infrastructure etc. The Department of Industrial Policy and Promotion has advised Ministries and State Governments to simplify and rationalize the regulatory environment through business process reengineering and use of information technology.

            Company wise classification of the investment based on the programme is not maintained centrally. However, sector-wise details of investment received through Foreign Direct Investment (FDI) equity inflows after launch of `Make in India’ programme in September, 2014, are at Annexure-I.

Year wise details of the increase in FDI inflow during the last three financial years are as follows:

Sl.No.
Financial Year
Total FDI inflow (in US$ billion)
Growth
1
2013-14
36.05
5%^
2
2014-15
45.15
25%
3
2015-16 
55.46
 23%

All figures are provisional subject to reconciliation with RBI.
            ^ Compared with figures of Financial Year 2012-13 i.e. US$ 34.30 billion.


This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

ANNEXURE-I

ANNEXURE REFERRED TO IN REPLY TO PART (c)  OF THE RAJYA SABHA UNSTARRED QUESTION NO. 298 FOR ANSWER ON 20.07.2016.

SECTOR-WISE FDI EQUITY INFLOWS FDI EQUITY INFLOWS
FROM OCTOBER 2014 TO MAY 2016

Sl No
Sector
2014-15
Oct-14 to Mar-15
2015-16
Apr-Mar
2016-17
Apr-16 to May-16
Total
1
METALLURGICAL INDUSTRIES
162.64
456.31
79.51
698.46
2
MINING
227.53
520.67
0.77
748.98
3
POWER
258.27
868.80
19.01
1,146.08
4
NON-CONVENTIONAL ENERGY
239.50
776.51
126.45
1,142.46
5
PETROLEUM & NATURAL GAS
58.08
103.02
8.23
169.34
6
BOILERS AND STEAM GENERATING PLANTS
0.00
77.91
4.48
82.40
7
PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS)
136.72
159.13
16.60
312.45
8
ELECTRICAL EQUIPMENTS
165.06
444.88
43.14
653.08
9
COMPUTER SOFTWARE & HARDWARE
1,874.19
5,904.36
282.66
8,061.21
10
ELECTRONICS
23.91
208.39
18.07
250.36
11
TELECOMMUNICATIONS
424.05
1,324.40
888.62
2,637.08
12
INFORMATION & BROADCASTING (INCLUDING PRINT MEDIA)
205.22
1,009.34
39.20
1,253.76
13
AUTOMOBILE INDUSTRY
1,689.92
2,526.82
297.42
4,514.17
14
AIR TRANSPORT (INCLUDING AIR FREIGHT)
32.76
361.25
5.65
399.66
15
SEA TRANSPORT
199.38
429.30
9.31
637.98
16
RAILWAY RELATED COMPONENTS
7.99
73.99
0.00
81.98
17
INDUSTRIAL MACHINERY
378.91
568.26
48.03
995.20
18
MACHINE TOOLS
11.89
126.38
12.03
150.30
19
AGRICULTURAL MACHINERY
51.22
16.44
3.38
71.03
20
EARTH-MOVING MACHINERY
17.08
97.66
16.43
131.17
21
MISCELLANEOUS MECHANICAL & ENGINEERING INDUSTRIES
149.51
274.57
23.76
447.84
22
COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS
11.79
36.68
0.12
48.59
23
MEDICAL AND SURGICAL APPLIANCES
52.29
173.26
0.43
225.98
24
INDUSTRIAL INSTRUMENTS
0.85
7.42
0.00
8.27
25
SCIENTIFIC INSTRUMENTS
1.44
6.36
0.19
8.00
26
FERTILIZERS
224.30
20.93
0.08
245.31
27
CHEMICALS (OTHER THAN FERTILIZERS)
348.66
1,469.95
92.34
1,910.95
28
DYE-STUFFS
0.00
3.32
0.00
3.32
29
DRUGS & PHARMACEUTICALS
405.15
754.26
452.86
1,612.26
30
TEXTILES (INCLUDING DYED,PRINTED)
127.27
230.13
9.50
366.90
31
PAPER AND PULP (INCLUDING PAPER PRODUCTS)
112.02
85.21
6.56
203.79
32
SUGAR
26.77
105.85
0.60
133.22
33
FERMENTATION INDUSTRIES
118.00
202.36
28.86
349.21
34
FOOD PROCESSING INDUSTRIES
233.23
505.88
121.19
860.30
35
VEGETABLE OILS AND VANASPATI
111.87
34.22
19.65
165.74
36
SOAPS, COSMETICS & TOILET PREPARATIONS
85.03
193.26
0.77
279.05
37
RUBBER GOODS
162.09
296.15
53.61
511.86
38
LEATHER,LEATHER GOODS AND PICKERS
18.01
17.13
0.00
35.14
39
GLUE AND GELATIN
4.57
0.82
7.08
12.47
40
GLASS
39.70
25.78
0.03
65.51
41
CERAMICS
26.94
51.21
1.22
79.36
42
CEMENT AND GYPSUM PRODUCTS
105.14
19.69
0.10
124.93
43
TIMBER PRODUCTS
7.88
53.17
0.14
61.20
44
DEFENCE INDUSTRIES
0.08
0.10
0.00
0.17
45
CONSULTANCY SERVICES
157.02
517.47
61.89
736.38
46
SERVICES SECTOR (Fin.,Banking,Insurance,Non Fin/Business,Outsourcing,R&D,Courier,Tech. Testing and Analysis, Other)
3,201.67
6,889.46
1,862.19
11,953.32
47
HOSPITAL & DIAGNOSTIC CENTRES
354.74
742.35
74.28
1,171.37
48
EDUCATION
61.27
230.78
19.86
311.91
49
HOTEL & TOURISM
360.07
1,332.69
119.47
1,812.23
50
TRADING
1,751.91
3,845.32
117.71
5,714.94
51
RETAIL TRADING
1.20
262.24
7.94
271.38
52
AGRICULTURE SERVICES
30.53
84.65
1.82
117.00
53
DIAMOND,GOLD ORNAMENTS
254.66
58.54
64.27
377.47
54
TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE & RUBBER)
1.41
1.12
0.00
2.54
55
PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY)
37.97
122.81
4.64
165.42
56
CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES
744.20
4,510.71
196.38
5,451.29
57
CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction-development projects
189.59
112.55
16.12
318.26
58
MISCELLANEOUS INDUSTRIES
555.97
668.77
60.54
1,285.28

Grand Total
16,239.13
40,000.98
5,345.21
61,585.32

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'START-UP INDIA'-Coverage and Eligibility

            Till date 728 applications have been received in the Startup India portal. Out of them, 180 applications are complete and have been recognized as startups by Department of Industrial Policy and Promotion (DIPP). Only 16 applicants are incorporated after 1.04.2016 and are thus eligible for consideration for tax benefits, as per the Finance Act 2016. The applications for tax benefits are examined by the Inter-Ministerial Board. 3 applications were considered and one has been recommended for tax benefit in the 2nd Inter Ministerial Board meeting held on 28.06.2016.

            Startups have been defined vide Notification No. 180(E) dated 17th February, 2016 of this Department. To increase the coverage of Startups in the country under the Startup India Action Plan the following steps have been taken:-

(i) Startup India Hub: Startup India Hub has been set up to resolve queries and provide handholding support to Startups. To seek clarifications pertaining to Certificate of Recognition as a “Startup”, Certificate of Eligibility to avail tax benefits, information on incubators or funding, one can get in touch with the Hub on Toll-Free number: 1800115565 or email: id dipp-startups@nic.in. Dedicated professionals are handling over 200 queries per day. DIPP has requested State governments and administration of Union Territories to set up hub as well as incubators to help Startups during various stages of their life cycle.

(ii) Startup Recognition: Till date (18.7.2016), 728 applications have been received for Startup Recognition. Out of them, 180 applications are complete and are recognised as a startup by DIPP. For remaining applications, Startup India Hub provides handholding support to facilitate recognition of more and more Startups.

(iii) Chief Secretaries of all States and Administrators of all Union Territories have been requested to partner with DIPP in taking the Startup India initiative forward;

(iv) Top 50 companies in India have been requested to contribute towards strengthening the incubation facilities in the country through their Corporate Social Responsibility (CSR) initiatives;

(v) List of recognized incubators has been augmented to provide more avenues to Startups to obtain mentoring support. 20 industry bodies and organisations have been recognized by DIPP who will assess the innovative nature of Startups and provide certificates to enable them to get recognition from DIPP.

(vi) For incubators to get recognition by Government of India a module to recognize incubators has been launched. This will allow them to issue recommendation letters to Startups.

(vii) A panel of facilitators has been constituted to assist Startups file Intellectual Property applications. DIPP has decided to bear the facilitation cost on behalf of Startups. To avail this benefit, the certificate of eligibility from the Inter-Ministerial Board was required which has been dispensed with. Now a certificate of recognition is sufficient to avail this benefit.

            Startup India Action Plan envisages  spreading of the Startup movement  beyond the digital/technology sector to a wide array of sectors including agriculture, manufacturing, social sector, healthcare, education etc. and from existing tier 1 cities  to tier 2 and 3 cities including semi-urban and rural areas.

The measures which have been implemented under Startup India Initiative till date in addition to those mentioned above are as follows:

(i)      Startup India Portal and Mobile App: These have been launched as online platform for providing updates, information, recognition and eligibility certificates to Startups and other stakeholders. Till date (18.7.2016), 728 applications have been received. Out of them, 180 applications are complete and the applicants are recognised as startups by DIPP. Only 16 applicants are incorporated after 1.04.2016 and are eligible for tax benefits. Out of these, 3 applications have been considered in the 2nd meeting of Inter-Ministerial Board (one has been recommended for tax benefits and other two have been disallowed).

(ii)  Fund of Funds: A 'fund of funds' (FFS) of INR 10,000 crores to support innovation driven Startups has been established which shall be managed by SIDBI. The fund will invest in SEBI registered Alternative Investment Funds (AIFs) which, in turn, will invest in Startups. It will act as an enabler to attract private capital in the form of equity, quasi-equity, soft loans and other risk capital for Startups. Rs. 500 crore has been released to SIDBI in FY2015-16 and Rs. 600 crore in FY2016-17. First meeting of Venture Capital Investment Committee (VCIC) was held on 12th July, 2016, wherein 13 proposals were examined for funding under FFS.



(iii) Tax Incentives: The Finance Act, 2016 Section 80- IAC has provision for Startups (Companies and LLPs) to get income tax exemption for 3 years in a block of 5 years, if they are incorporated between 1st April 2016 and 31st March 2019. To avail these benefits one must get a Certificate of Eligibility from the Inter-Ministerial Board. Tax exemption on investments above Fair Market Value have been introduced on 14 June 2016for investments made in Startups.



(iv) Self-Certification: Central pollution Control Board (CPCB) has exempted 36 industries in “white” category from all the applicable self-certifications under the 3 environment Acts (The water (Prevention & Control of Pollution) Act, 1974; The Water (Prevention & Control of Pollution) Cess (Amendment) Act, 2003 and The Air (Prevention & Control of Pollution) Act, 1981).



(v)  Atal Innovation Mission (AIM): The guidelines for harnessing private sector expertise to set up incubator, annual grand challenge for innovative solutions to problems posed by industry and Government Departments, annual grand challenge for incubators and establishments of tinkering labs have been formulated and have been published on NITI Aayog’s and Startup India websites.



(vi)   Relaxed Norms for Public Procurement: Relaxed norms for public procurement for micro and small enterprises have been provisioned in the Procurement Policy of Ministry of MSME.



(vii) IPR Benefits: A panel of facilitators has been constituted for assistance in filing Intellectual Property applications. DIPP would bear the facilitation cost on behalf of Startups and also provide rebate in the statutory fee for filing of application. To avail IPR-related benefits (rebate in fee and free of cost facilitation in filing IPR applications), a Startup is required to obtain a Certificate of Recognition from DIPP. A detailed guideline of the Scheme for Facilitating Start-ups Intellectual Property Protection has been published online whereby Government shall bear the entire fees of the facilitators. Facilitators shall provide assistance for startups in filing and disposal of patent applications related to patents, trademarks and design under relevant Acts. Fast track mechanism of startup patent applications has been enabled to allow startups to realise the value of their IPRs at the earliest possible. Further, to enable startups to reduce costs in their crucial formative years, startups have been provided an 80% rebate in filing patents (Patent Amendment Rules 2016, May 2016).

With the above measures, Government of India envisages to improve the participation of startup entrepreneurs in the Startup India programme across the country.

This information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Rajya Sabha today.

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