Focus on ‘Make In India’

Full Guarantee of Employment For Skilled Manpower Establishment of  Ultra Mega Green Solar Park Improving the Process of Selection and Appointment of Independent Directors on the Boards of CPSES Boards of Cpses Have Been Empowered to Allocate 2% of Their Profits to CSR Activities  Union Minister of Heavy Industries and Public Enterprises, Shri Anant Geete has said here today that all round development of industries is the higher priority of the Government. It has taken a number of initiatives for the development of industries. Minister of State for Ministry of Heavy Industries and Public Enterprises, Shri Pon Radhakrishnan, Secretary for Department of Heavy Industries, Dr. Rajan Katoch and Secretary for Department of Public Enterprises, Ms Kusumjit Sidhu was also present.  Full text of the Minister addressed is as follows: “Progress of India and development of industries in India are more or less synonymous, because on the one hand industry contributes to GDP significantly and on the other hand, the government gets a lion’s share in the form of tax revenue from industrial production, which the govt. spends on the welfare schemes and a lot of employment opportunities are generated in industrial sector as well.   Hon’blePrime Minister has put forth the various dimensions of “Make in India” philosophy before the people in his address today. So far as the contribution of my Ministry with regard to “Make in India” is concerned, I would like to make it clear that my Ministry is always striving consistently in this direction. In the context of Department of Heavy Industry, the meaning of “Make in India” refers to the, production in India with global quality standards.  For this purpose, we will be needing substantial capital and technological investment in India.  My Ministry is continually striving to achieve this objective. Our government has recently conveyed its sanction for a pilot scheme for enabling industries in the capital goods sector to be in line with the global competition for which there is a provision of  ` 930 crore, out of which Govt. of India will provide ` 581.22 crore through grants-in-aid and the balance amount will be contributed by the consortium of industries.  This scheme includes the following major components; -          Five Centres of Excellence for technology development at IITs (Delhi, Mumbai, Chennai &Kharagpur) and CMTI, Bangalore (` 312.5 crore) -          One Integrated Industrial Infrastructure Facilities Park for Machine Tool, near Bangalore (` 400 crore) -          Two Common Engineering Facilities Centres (one of them at Surat, Gujarat) (` 61.20) -          Testing and Certification Centre for construction equipment and earthmoving machinery (`100 crore) -          Technology acquisition programme (` 50 crore) In my opinion, this pilot scheme will be proved very effective in promoting the small, medium and micro industries and after evaluation of the same, the scheme will be expanded in a big way. After Capital and Technical Investment in Capital Goods Industry, demand for skilled manpower in this sector will increase and keeping in view of long term demand, Capital Goods Skills Development Council is making a comprehensive plan under which components like skill gap identification, standardization of occupational standards, identification of master trainers, training for trainers and third party certification etc. are being finalized. Our Ministry is also serious on the issue of utilizing the infrastructure and manpower of the PSUs working under Department Of Heavy Industry, in making the youngsters living in the vicinity of the PSUs, skilled.  Such skilled youngsters may be provided employment opportunities in small and medium industries (SMEs) around these PSUs. This plan will be completely based on the demand of skilled manpower, so that there may be a full guarantee of employment for them. I am sure that we would soon be able to present before you the meaningful outcomes of this scheme.  There are 32 PSUs working under Department of Heavy Industry in our Ministry and 11 PSUs are paid Govt.  aid as non- plan loan for paying salary for their employees and meeting legal liabilities. A road map for these PSUs is being prepared under which, in future, salary support would not be required. BHEL, a Maharatna CPSE in our Ministry, is continuing to take decisive steps to invest in R&D and technology improvement with the launch of a totally flexible fuel boiler (for 0-100% domestic or imported coal) for Super Critical Power Plants, the first of its kind anywhere. We are proposing to establish an Ultra Mega Green Solar Park with an ultimate capacity of 4000MW in Rajasthan,with 1000MW solar power plant at an estimated cost of ` 7950 crore, in the first phase by a joint venture of various CPSEs viz. BHEL, Sambhar Salts Ltd., Rajasthan Electronic Instrumentation Ltd., Solar Energy Conservation of India, Power Grid Corporation of India Ltd. and Sutlej JalVidyut Nigam Ltd. Heavy Electrical Equipment Sector accounts for around 70% of the total capital goods sector in terms of production and is thus very important for the Indian industry.  Nearly 3/4th of India’s energy is produced through thermal power.  We are already facing coal shortage domestically due to various reasons, forcing us to rely increasingly on import of coal and LNG, nuclear fuel etc.  With a view to substantially improve thermal efficiency (approx. 11% over super critical level), we are initiating R&D project for Advanced Ultra Super Critical Technology by involving BHEL, NTPC and Indira Gandhi Centre for Atomic Research (IGCAR).    R&D project will run till 2017 which will be followed by a full-fledged thermal power plant of 800MW capacity to be set up by NTPC.  This will place India in the top 3 or 4 technologically advanced nations which are all presently in the race of developing this technology. Auto sector, also administered by my Ministry, is an important sector from the point of view of contribution to National GDP (7.1%) total turnover (approx. US $ 80 billion per year) and employment (approx. 19 million direct and indirect jobs).  Based on the bold decision to continue the lower excise duty rates till December 31, 2014, the auto sector has bounced back showing over 12% growth in sales till April-August, as compared to last year.  Two wheelers have shown nearly 15% increase, three wheelers 17% and passenger cars 4.5%.  Even Commercial vehicles have started improving during this period.  My Ministry has commenced work to draft Auto Mission Plan II for the period 2016-26 which will include important subjects of advance technologies, future fuels, export, investment, skills etc.  AMP II shall be finalised by middle of next year. My Ministry has also taken a number of steps to assist the auto sector to become more vibrant and strong.  These steps include assistance to auto component units, mainly in tier II & III levels, under the UNIDO-ACMAAuto Cluster Schemefor improving the productivity, management and technical processes etc., covering nearly 500 units over the next 3 to 4 years. Similarly, to improve the supply of high quality skilled manpower to both automobile and auto component units, Auto Skill Development Council (ASDC)has been energized and is now functioning in top gear.  Over 100 job rolls have been finalized, as also teaching curricula, training of trainers, identification of centres, accreditation, and certification/examination system, absorption in industry have all been firmed up.  During this year, a total of one lakh or more skilled personnel shall be churned out by ASDC. In a path breaking initiative, my Ministry has finalized the proposal for  electric vehicle scheme, which envisages the potential demand for 6-7 million hybrid/electric vehicles across all segments by 2020 which shall yield benefits in terms of fossil fuel saving (over ` 60000 crore) CO2 emission reduction (over two million tonnes) and additional job creation of 2.5-3 lakhs.  The scheme incorporating the important areas ofdemand and supply incentives, R&D, charging infrastructure, pilot projects in Delhiand other major citiesetc., involving a total outlay of approx. `14,000 crore is now before the EFC/Cabinet for approval.  We hope to launch the scheme very soon. Let me now talk about the other Department which comes under my Ministry – Department of Public Enterprises (DPE). This department is the nodal Department for all Central Public Sector Enterprises (CPSEs) and lays down policy guidelines on autonomy and financial delegation, performance improvement & evaluation , personnel management etc. Central Public Sector Enterprises (CPSEs) have played a key role in facilitating the process of India’s economic growth and development since independence. As on 31.3.2013, there were 277 CPSEs having aggregate investment of Rs. 8,50,599 crore and turnover of Rs. 19,45,777 crore. The total turnover of CPSEs has grown by about 6% and net profit has recorded a growth rate of about 17% from 2011-12 to 2012-13 . These CPSEs contributed Rs. 1,62,761 crore to central exchequer by way of excise duty, customs duty, corporate tax, dividend, etc. during the year 2012-13.The foreign exchange earnings through export of goods and services has shown a growth of 8% in the same period. About 14 lakh people are employed in CPSEs. Considering the importance of CPSEs in the economy especially in the strategic sectors like Energy, Transportation, Defence etc and the changing economic scenario the effort of DPE has been to enable CPSEs to face the challenges posed by an increasingly competitive domestic and global environment. This has been done by issuing guidelines on Empowerment and Professionalization of Boards, Performance Management & Accountability, Corporate Governance and Corporate Social Responsibility. We have reviewed the experience in implementing these guidelines and have identified areas which can assist CPSEs to operate more effectively. Operational and financial powers have been delegated to profit making CPSEs through the Maharatna, Navratna and Miniratna schemes. We are ascertaining the extent of usage of delegated powers and exploring areas in which further powers can be delegated to CPSEs so that they can expand operations both in domestic and global markets. To make the Boards of CPSEs more professional we are improving the process of selection and appointment of Independent Directors on the Boards of CPSEs. We are also aligning the existing Corporate Governance guidelines with the provisions of the Companies Act, 2013. The provision for appointing women directors on the Boards has been brought to the notice of all Administrative Ministries/Departments. The data bank of eligible persons has also been expanded. An important management tool i.e. the Memorandum of Understanding (MoU) signed between the Administrative Ministry/Department and the CPSE after agreeing on targets, is being strengthened by providing for greater flexibility, benchmarking of performance with national and international peer companies and emphasis on globalization. The CPSEs are also implementing Guidelines on Corporate Social Responsibility .Under the new Companies Act, 2013, the Boards of CPSEs have been empowered to allocate 2% of their profits to CSR activities in defined areas in a transparent manner. Since some CPSEs have desired that DPE should formulate guidelines on CSR, which are specifically applicable to CPSEs DPE has formulated the guidelines on the subject, to supplement CSR Rules of MCA. The same are under consideration of Ministry of Corporate Affairs. The previous Government had set up a Committee under the chairmanship of Shri S.K. Roongta, ex-Chairman, SAIL for suggesting a road map for further development of CPSEs. We are examining these suggestions afresh.  DPE issues guidelines and renders advice to Ministries/Departments/CPSEs in matters of pay revision of CPSE executives, non-unionised supervisors and wage settlement of workmen. To address unresolved issues of the previous pay revision of 2007 and also to review the pay structure in its entirety, DPE is contemplating the constitution of 3rd PRC for revision of pay scales, allowances and other benefits of executives and non-unionised supervisors of CPSEs.  The functioning of the Board for Reconstruction of Public Sector Enterprises (BRPSE) which is an advisory body looking at strengthening, modernisation, revival and restructuring of sick CPSEs , has been reviewed. We want to streamline the multiple mechanisms which are in place for revival of sick CPSEs and have identified the action points in this regard including strengthening of BRPSE.A committee under CMD,NTPC has been set up to explore the possibility of setting up a separate entity funded by financially strong CPSEs to look at management and revival of sick CPSEs.”