2014-An Year of Events for Ministry of Heavy Industries & Public Enterprises

Year End Review 2014 M/o of Heavy Industries & Public Enterprises                                                                    Ministry of Heavy Industries & Public Enterprises has taken a number of initiatives during 2014 in its endeavour to create a working atmosphere for the industrial arena: BHEL, SECL, SSL, POWERGRID, SJVN AND REIL SIGNED HISTORIC MOU FOR ESTABLISHING A 4,000 MW ULTRA MEGA SOLAR POWER PROJECT IN RAJASTHAN  A Memorandum of Understanding (MoU) was signed on 29th January, 2014 between BHEL, SECL, SSL, POWERGRID, SJVN AND REIL for establishing a 4,000 MW Ultra Mega Solar Power Project (UMSPP)  in Jaipur, close to Sambhar Lake near Rajasthan. It was signed in the presence of Shri Praful Patel and Dr. Farookh Abdullah the then Ministers for Heavy Industries and Public Enterprises and Ministry  of New and Renewable Energy respectively and other dignitaries. Shri B. Prasada Rao, CMD, BHEL; Shri Rajendra Nimde, MD, SECI; Shri R.K. Tandon, CMD, SSL; Shri R.N. Nayak, CMD, Powergrid; Shri R.P. Singh, CMD, SJVN and Shri A.K. Jain, CMD, REIL, signed the MoU.  The plant will be set up in two phases over a period of 7 years with Phase-I comprising 1,000 MW and the balance 3,000 MW in subsequent phases. The JVC will be incorporated as a public limited company under DHI and will have at its registered office in Delhi/NCR.  Significantly, with the commissioning of this plant and commercial utilisation of the harvested energy therein, this would become the largest single location solar electricity generation project in the world.  PROVIDING GRANT TO HINDUSTAN PAPER CORPORATION FOR MEETINGS ADDITIONAL OPERATIONAL COSTS  The Cabinet Committee on Economic Affairs on 28th February, 2014 approved support of approximately Rs. 75 crore per annum on actual basis to Cachar Paper Mill (CPM), a unit of Hindustan Paper Corporation Limited (HPC) located in Panchgram, Hailakandi District, Assam as grant. This shall be to the extent of 90 percent of the transportation cost for meeting operational costs till such time that the gauge conversion of the Lumding-Silchar railway line is completed.  FINANCIAL ASSISTANCE TO HMT MACHINE TOOLS LIMITED  The Cabinet Committee on Economic Affairs (CCEA) on 28th February, 2014 approved financial assistance and other measures for HMT Machine Tools Limited (HMT MTL).    The total financial implication of the proposal in the form of non-plan loan was estimated be Rs. 136.04 crore.  An increase in turnover will bring back business of the company towards a positive growth.   Implementation of 1997 pay scale and increase in the retirement age would motivate the workforce. The company is expected to turnaround with the proposed infusion of funds at its head office in Bangalore and its manufacturing units located at Bangalore (Karnataka), Pinjore (Haryana), Kalamassery (Kerala), Hyderabad (Andhra Pradesh) and Ajmer (Rajasthan). VRS PACKAGE FOR THE EMPLOYEES OF HINDUSTAN PHOTO FILMS MFG. COMPANY LIMITED  The Cabinet Committee on Economic Affairs on 28th February, 2014 approved the proposal for providing non-plan budgetary support of Rs. 181.54 crore for VRS at 2007 notional pay scales as one time relaxation of DPE Guidelines for all employees of Hindustan Photo Films Mfg. Co. Ltd. (HPF), Udhagamandalam (Tamil Nadu). This is a Central Public Sector Enterprise [CPSE] under the Department of Heavy Industry [DHI], Ministry of Heavy Industries & Public Enterprises (HI&PE).  Employees of the company are in the 1987 pay scale. With the increased cost of living, it is very difficult for them to survive and meet their immediate financial obligations. With this decision employees will come out of their current financial crises. The enhanced VRS will also help HPF employees in their post retirement rehabilitation.  PROVIDING BUDGETARY SUPPORT FOR PAYMENT OF SALARY/WAGES AND STATUTORY DUES TO THE EMPLOYEES OF HMT LTD., BANGALORE AND STATUTORY DUES TO HMT MACHINE TOOLS LTD., BANGALORE  The Cabinet Committee on Economic Affairs (CCEA) on 20th February, 2014 approved budgetary support, in the form of Non-Plan loan of Rs.27.06 crore for payment of salary/wages and statutory dues to the employees of HMT Limited for the period from March, 2013 to September, 2013. The CCEA also approved Rs.50.34 crore to HMT Machine Tools Limited for payment of statutory dues (Provident Fund, Gratuity etc.) for the period from September, 2012 to March, 2013. HMT Limited and HMT Machine Tools Limited, a subsidiary of HMT Limited, are Central Public Sector Enterprises under the administrative control of the Department of Heavy Industry. SETTING UP OF JAGDISHPUR PAPER MILLS LIMITED AT JAGDISHPUR, DISTRICT AMETHI, UTTAR PRADESH  The Union Cabinet 12th February, 2014  gave its approval for setting up of Jagdishpur Paper Mills Limited (JPML), a green field pulp and paper project at Jagdishpur, District Amethi, Uttar Pradesh at a cost of Rs. 3650 crore. The project will be implemented in two phases. Jagsihpur Paper Mill Limited will venture into production of coated/uncoated printing and writing paper. It will reduce the gap between production and import of writing and printing paper as well as act as a check on prices. Apart from direct employment to 900 persons, indirect employment will also be generated which will spur gainful economic activities in the vicinity.  ANANT GEETE ASSUMED CHARGE OF THE MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES Shri Anant Gangaram Geete assumed the charge of Ministry of Heavy Industries & Public Enterprises here on 28thMay 2014. On his arrival at Udyog Bhawan the Minister was received by Shri Sutanu Behuria, Secretary of the Ministry and other senior officials.  Born on June 02, 1951 in Mumbai Shri Geete is an agriculturist and social worker by profession. Elected to the present Lok Sabha for the sixth consecutive term Shri Geete was Union Minister of State for Finance and Cabinet Minister for Power during 2002- 2004. He has visited Russia, UK, USA, UAE, France and Egypt.  RADHAKRISHNAN ASSUMED CHARGE AS MOS FOR HEAVY INDUSTRIES & PUBLIC ENTERPRISES  Shri P Radhakrishnan assumed the charge of Ministry of Heavy Industries & Public Enterprises here on 28th May 2014. On his arrival at Udyog Bhawan the Minister was received by Shri Sutanu Behuria, Secretary of the Ministry and other senior officials.  Born on March 01, 1952 in District Kanyakumari (Tamilnadu) Shri Radhakrishnan has done BA, BL and is a lawyer by profession. Shri Radhakrishnan was first elected to 13th Lok Sabha in 1999 and held the portfolios of Union MoS for Youth Affairs & Sports, Urban Development and Poverty Elevation and Road Transport and Highways.  KAPIL DEV TRIPATHI TOOK CHARGE OF SECRETARY DEPARTMENT OF PUBLIC ENTERPRISES  Shri Kapil Dev Tripathi an IAS officer of 1980 batch of the Assam Meghalaya cadre took charge as the Secretary, Department of Public Enterprises, Ministry of Heavy Industries and Public Enterprises on 30th September, 2014.  Shri Tripathi held various posts in Central Government as well as State Government. Before taking his present charge he was Secretary, Central Vigilance Commission, Department of Personnel and Training, Ministry of Personnel, Public Grievances and Pensions.  SCHEME ON ENHANCEMENT OF COMPETITIVENESS IN THE INDIAN CAPITAL GOODS SECTOR  The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, on 15th September, 2014 approved the "Scheme for Enhancement of Competitiveness of the Capital Goods Sector" to boost the Indian economy. This scheme, on its implementation, would attempt to make the Indian capital goods sector globally competitive. The sub sectors of Capital Goods covered under the scheme are mainly for Machine Tools, Textile Machinery, Construction and Mining Machinery, and Process Plant Machinery. The proposed scheme addresses the issue of technological depth creation in the capital goods sector, besides creating common industrial facility centres.  The Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector will be implemented in the 12th Plan period and spill over to the 13th Plan period with an estimated outlay of Rs. 930.96 crore. The Gross Budgetary Support (GBS) from the government for the scheme would be Rs. 581.22 crore and the balance Rs. 349.74 crore would be contributed by the stakeholder industries.  The scheme has five components to achieve the desired result in pilot mode -  (i) Creation of "Advanced Centres of Excellence" for R & D and Technology Development with National Centres of Excellence in Education and Technology such as the Indian Institute of Technology Delhi, the Indian Institute of Technology Bombay, the Indian Institute of Technology Madras, the Indian Institute of Technology Kharagpur and the Central Manufacturing Technology Institute (CMTI), Bangalore.  (ii) Establishment of "Integrated Industrial Infrastructure Facilities" popularly known as Machine Tool Parks with a basic objective of making the machine tool sector more competitive by providing an ecosystem for production. Establishment of Machine Tool Parks will cut down logistic cost substantially and would be a step forward in making the sector cost effective, having enhanced export capability and favourable for attracting more investment. The park would be established by a Special Purpose Vehicle (SPV) formed by local industries, industry associations, financial institutions, Central / State Governments, R & D Institutions, etc.  (iii) Common Engineering Facility Centre" for Textile Machinery is to be set up with active participation of the local industry and the industry association, which in turn would improve facilitation to the users along with visibility. The Common Engineering Facility that can be provided within such set ups are common foundry, common heat treatment, testing laboratories, design center, common prototyping, general and specific machinery, etc. The facility would enable textile machinery and other capital goods manufacturers to develop capital goods to meet the large requirements and improve capacity utilization, thereby reducing the variable cost of operation. This would also be established by a Special Purpose Vehicle (SPV) formed by local industries, industry associations, financial institutions, Central/State Governments, R&D Institutions, etc.  (iv) Testing and Certification Centre" for earth moving machineries in view of the fact that it is soon going to be made a mandatory requirement and at present there is no test facility to test earthmoving machinery like that in the automobile industry. By setting up of the test centre, the import of second hand and outdated machinery could be restricted through mandatory testing and certification, In addition, the centre would facilitate evaluating the performance, statutory and regulatory requirements of construction and mining machinery and equipment. The setting up of Test and Certification Centre for Earthmoving Machinery will be done by the SPV specifically created by the Department of Heavy Industry with the approval of the Cabinet. After approval of the Scheme, a separate proposal for information of SPV for implementation of this particular scheme component will be sent to the Cabinet for approval.  (v) The creation of a "Technology Acquisition Fund" under the Technology `Acquisition Fund Programme (TAFP) in order to help the Capital Goods Industry to acquire and assimilate specific technologies, for achieving global standards and competitiveness within a short period of time. The TAFP will provide financial assistance to Indian capital goods industry to facilitate acquisition of strategic and relevant technologies, and also development of technologies through contract route, in-house route or through joint route of contract and in-house. The Fund can extend partial support to industry to enhance their technology level, for achieving superior product quality / functionality, production capacity, safety and sustainability performance. This programme would bridge the technology gaps identified in the 12th Plan Working Group Report on "Capital Goods andEngineering Sector".  PAYMENT OF STATUTORY DUES, SALARY AND WAGES IN SICK/LOSS MAKING CPSES UNDER THE DEPARTMENT OF HEAVY INDUSTRY The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, on 10th September, 2014 approved the proposal for providing non-plan budgetary support of Rs. 287.67 crore for liquidation of statutory dues (Provident Fund, Gratuity, Pension, Employees State Insurance and Bonus) and salary and wages from 01-09-2013 to 31-03-2014 for eleven Central Public Sector Enterprises (CPSEs) under the Department of Heavy Industry.  These are:       Hindustan Cables Ltd.;  HMT Machine Tools Ltd.;  HMT (Watches) Ltd.; HMT (Chinar Watches) Ltd., Nagaland Pulp and Paper Co. Ltd.; Triveni Structural Ltd.; Tungbhadra Steel Products Ltd.;        Nepa Ltd.; HMT Bearings Ltd.; Hindustan Photo Films Limited, and; Heavy Engineering Corporation Ltd. Payment of outstanding dues of salary and wages would mitigate the hardships of the employees.  The payment would also motivate them for giving better output and prepare them to achieve the goal of revival/re-structuring of these companies. In addition, clearance of outstanding statutory dues would result in fulfilment of statutory obligations. CAPITAL GOODS SECTOR  A scheme on” Enhancement of Competitiveness in the Indian Capital Goods Sector” was notified on 5.11.2014.  The Scheme aims to make Indian capital goods industry globally competitive by strengthening technology development, providing common manufacturing infrastructure and extending financial assistance for technology acquisition.    The Scheme envisages Government Budgetary Support of Rs. 581.22 crore and Industry contribution of Rs. 349.74 crore.    The proposed Scheme has components consisting of infrastructural interventions as well as financial intervention to boost competitiveness of the domestic capital goods industry as under: Setting up of Five Centers of Excellence (CoE) at Indian Institutes of Technologies/ Central Manufacturing Technology Institute for Technology Development in different sub sectors of Capital Goods. Setting up of one Integrated Industrial Infrastructure Facility (IIIF). Setting up of two common Engineering Facility Centers. Setting up of Test and Certification Centre with full Government Support. Technology Acquisition Fund Programme for acquisition of technology. Detailed Guidelines of the Scheme including funding pattern are available on the website of the Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises at http://dhi.nic.in. The scheme is likely to be implemented in five year. PRESIDENT GAVE AWAY SCOPE MERITORIOUS AWARDS TO PUBLIC SECTOR ENTERPRISES  The President of India, Shri Pranab Mukherjee on 5th November, 2014 presented the Standing Conference of Public Enterprises (SCOPE) Meritorious Awards at a function held in Vigyan Bhawan, New Delhi.  The Winners of the SCOPE Meritorious Awards were SAIL,BPCL, Indian Oil, HAL, BEL, PFC, NSKFDC. The Commendation Certificates were awarded to OIL, WAPCOS, IRCON, REIL and THDC. The President also felicitated EIL, NBCC and CONCOR, the new Navratna CPSEs.  Speaking on the occasion, the President complimented SCOPE for its initiative in instituting the SCOPE Meritorious Awards with the objective of identifying and recognizing outstanding performers in various segments of business activity. He also complimented the Department of Public Enterprises (DPE) and Standing Conference of Public Enterprises (SCOPE) for organizing the event which provides recognition to the efforts being made by CPSEs in a variety of areas such as Environmental Excellence & Sustainable Development; Corporate Governance; Corporate Social Responsibility & Responsiveness; Research and Development and Technology Development & Innovation.  SHRI G.M.SIDDHESHWARA TAKES OVER AS NEW MINISTER OF STATE FOR MINISTRY OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES Shri G.M. Siddheshwara 0n 12th November, 2014 took over as new Minister of State for Ministry of Heavy Industries and Public Enterprises.       DEPARTMENT OF PUBLIC ENTERPRISES ISSUED GUIDELINES ON CORPORATE SOCIAL RESPONSIBILITY (CSR) & SUSTAINABILITY – 2014 FOR CENTRAL PUBLIC SECTOR ENTERPRISES (CPSES) IN OCTOBER 2014  Department of Public Enterprises issued Guidelines on Corporate Social Responsibility (CSR) & Sustainability – 2014 for Central Public Sector Enterprises (CPSEs) in October 2014.  These Guidelines are issued to supplement the Companies (CSR Policy) Rules 2014 issued by Ministry of Corporate Affairs under the provisions of Companies Act, 2013.  The guidelines are intended to reinforce the complementarity of CSR and Sustainability and to advise the CPSEs not to overlook the larger objective of sustainable development in the conduct of business and in pursuit of CSR agenda. The guidelines are in the nature of initiatives or endeavour which the key stakeholders expect of CPSEs in discharging their CSR.   In the guidelines, the need for taking sustainability initiatives is emphasized in addition to requirement of mandatory compliance with CSR Rules.  (ii)   As per the mandate of DPE, Department of Public Enterprises does not implement schemes/programmes which directly impact the common people. However, the Department is implementing the Counseling, Retraining and Redeployment (CRR) Scheme to provide opportunities of redeployment through counseling and retraining to separated employees of CPSEs rendered surplus as a result of modernization, technology upgradation and manpower restructuring in CPSEs. The department, as a part of this scheme has trained 2136 VRS optees and redeployed 752 persons by the end of November, 2014. OTHER ACHIEVEMENTS MADE IN PAST SEVEN MONTHS Punctuality in attendance in the office – Installation of Aadhar based Biometric Attendance System.  169 employees of DHI are marking attendance on the Biometric System. Ensuring cleanliness on regular basis in the office.  Officer of the level of DS/Director are put on roaster duties for inspecting cleanliness in the premises/Sections/corridors on daily basis. Implementation of e-Office for official work.  All Sections have been covered. e-Leave has been made mandatory.  Re-designing of the Website of DHI to make it GIGW compliant as well as more interactive.  The re-designed version will be launched after security clearances.  Initiation of process for ISO 9001:2008 Certification for AEI, PE-XI and TSW(B) Sections.  The certifying agency has been invited for inspection.             A Scheme on “Enhancement of Competitiveness in the Indian Capital Goods Sector” notified on 5thNovember 2014 with a provision of Rs.930.96 crore out of which Rs.581.22 crore would be provided by GOI through grants-in-aid and remaining would be contributed by consortium of industries.  The scheme envisages creation of five Centres of Excellence, one Integrated Industrial Infrastructure Facility Park for Machine Tool, two Common Engineering Facilities Centres, one Testing and Certification Centre for Construction Equipment and Earthmoving Machinery and a Technology Acquisition programme.              R&D Project initiated for Advance Ultra Super Critical Technology through BHEL, NTPC, IGCAR.  It will increase fuel efficiency of Thermal Power Plants by 46% and achieve a reduction in coal consumption and CO2 emission by 11%.  The estimated cost of the project is Rs.1100 crore.  With this India will emerge as one of the primary developers of this technology. A Scheme for “Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India” prepared.  Its important components are – Demand and Supply Incentive, Public Charging Infrastructure, R&D and Pilot Projects.  The scheme envisages potential demand for 6-7 million hybrid/electric vehicles by 2020, anticipated fossil fuel saving of over Rs.60,000 crore, considerable CO2 reduction and additional job creation of 3 lakhs.  Total outlay of scheme is approx. Rs.14000 crore.               BHEL launched totally flexible fuel boilers, first of its kind for super critical power plant.  Flexible boilers can use both domestic and imported coal. Under NATRiP, the following facilities were completed:- ICAT-Manesar -  Pass by Noise, CAD/CAE Lab, Rotary Actuator facility, Universal Pneumatic Actuator and GARC-Chennai – Airbag Lab, CAD/CAE Lab, Universal Pneumatic Actuator, Equipment for   Optics Lab, Cyclic Actuator; NATRAX–Indore  – CAD/CAE Lab, Powertrain Lab; REIL to install one MWp SPV Power Plant at Shri Mata Vaishno Devi Katra Railway Station, J&K.  The work on Solar Power Plant started on 28th October 2014.  The Solar Power Plant of one MW will generate 14.6 lakh units in a year which will provide s saving of approx. Rs.1 crore per year to Railways and provide 24 hours power supply at the station.  The Power Plant will help in annual reduction of 1400 tons of CO2 emmission.  This is unique initiative taken by Indian Railways.  HMT Gear for Sonar Systems developed and exported by HMT Kalamassery for the first time in India.  HMT Kalamassery is currently working on the development and manufacture of a Directing Gear for the Indian Naval Ship Brahmaputra which is scheduled for delivery in January 2015. Preparing a road map for identifying PSUs that are not capable of revival for closing them after giving benefit of VSS.  The proposal for 5 CPSEs has been submitted to CCEA.