Industry and Infrastructure D evelopment in India Since 1947

Transcription

1 Industry and Infrastructure D evelopment in India Since 1947 Incorporating An Exhaustive Analytical Account of Various Policies and Programmes for Development of Industry and Infrastructure with Focus on a Post-Independence Industrial Policy Public Sector Enterprises D Micro, Small, and Medium Enterprises a Industrial Finance a Industrial Sickness o Tax Incentives for Industrialisation/Infrastructure Development D Industrial Relations and Labour Laws D Indian Industry and WTO D Energy Needs and Sources o Transport Infrastructure and Services Communications and Information Technology a Special Economic Zones D Urban Infrastructure and Services Rural Infrastructure and Services Plan-wise Review of Industrial Policy and Development: I to Xi Plan Year-wise Review of Developments in Industry/Infrastructure in India: to Appendices Containing Information on Indian Industry and Infrastructure Glossary of Industrial/lnfrastructural Terms By Anup Chatterjee K. Narindar Jetli NEW 'CENTURY New Century Publications New Delhi, India

2 Authors' Note on the Book vii-xvi Part I: Development of Industry in India 1. Indian Industry: An Introduction Pre-Independence Industrial Scene Self-sufficient Village Economy Well-knit Urban Economy Consequences of British Rule Unbalanced Occupational Structure Modern Factory System Introduction of Railways Other Developments Critical Appraisal 1.2 Legal Framework for Industrialisation Constitutional Provisions Industrial (Development and Regulation) Act, Monopolies and Restrictive Trade Practices (MRTP) Act, Consumer Protection Act, Foreign Exchange Management Act (FEMA), Competition Act, 2003 and Competition Policy 1.3 Consumer Protection in India Need for Consumer Protection United Nations and Consumer Protection Role of Standards Central Consumer Protection Council Quality Council of India 2. Post-Independence Industrial Policy: A General Review Industrial Policy Resolution, Industrial Policy Resolution, Categorisation of Industries Other Features 2.3 Devaluation of the Rupee and Industrial Liberalization, Industrial Licensing Policy Inquiry Committee (ILPIC), Secretariat for Industrial Approvals (SIA), 1973

3 xxi 2.6 Industrial Policy Statements 1973,1977 and 1980 " 2.7 Industrial Policy, : A Critique Expansion of Public Sector Regulation and Controls of Private Sector Absence of Internal Competition Absence of Foreign Competition 2.8 Disillusionment and Rethinking ; 2.9 Pressure for Industrial Liberalisation Internal Factors External Factors 2.10 New Economic Policy and Industrial Liberalisation, Industrial Policy Statement, 1991: The Turning Point 2.12 Industrial Policy Outlook 2.13 Conclusion 3. Plan-wise Review of Industrial Policy and Development: I to XI Plan First Five Year Plan: to Second Five Year Plan: to Third Five Year Plan: to Annual Plans Annual Plan: Annual Plan: Annual Plan: Fourth Five Year Plan: to Fifth Five Year Plan: to Sixth Five Year Plan: to Seventh Five Year Plan: to Eighth Five Year Plan: to Ninth Five Year Plan: to Tenth Five Year Plan: to Eleventh Five Year Plan: to Public Sector Enterprises Objectives of Public Sector Enterprises Development of Infrastructure Balanced Regional Development Employment Generation

4 xxii Industry and Infrastructure Development in India Since Promotion of Competitive Conditions Check on Concentration of Economic Power 4.2 Organisation of Public Sector Departmental Undertakings Government Companies Public Corporations Holding Companies 4.3 Poor Performance and Rethinking 4.4 Industrial Policy Statement, 1991 on Public Sector 4.5 Public Sector Disinvestment Commission Classification of Industry Groups Objectives and Strategy Loss-making PSUs Profit-making PSUs Criteria for Disinvestment Use of Disinvestment Proceeds National Investment Fund 4.6 Disinvestment/Privatisation in Action 4.7 Supreme Court Judgement, September 16, Public Sector at the State Level 4.9 Future of Public Sector 5. Micro, Small, and Medium Enterprises (MSMEs) Micro, Small and Medium Enterprises Development (MSMED) Act, Background Classification and Definitions of MSMEs Main Provisions of the MSMED Act, Advantages of Micro, Small and Medium Enterprises (MSMEs) High Employment Potential Widely Dispersed Entrepreneurial Base Relatively Low Capital Investment Regional Balanced Development Export Potential 5.3 Social Face of MSMEs in India 5.4 Problems of MSMEs Inadequate Availability of Finance and Credit Inadequate and Irregular Supply of Raw Material

5 xxiii Technological Obsolescence * Lack of Infrastructural Facilities Deficient Managerial and Technical Skills Imperfect Knowledge of Market Conditions 5.5 Policy Measures to Help Small Industries Reservation of Items for Exclusive Production by Small-scale Industries (SSI) Excise Duty Concessions Priority in the Disbursement of Loans by the Financial Institutions Other Concessions 5.6 Recent Policy Initiatives for Promoting Small Industries 5.7 Small-Scale Industries in the Union Budget 5.8 MSMEs and Globalisation 5.9 Sectoral Profiling of MSMEs Handlooms Handicrafts Powerlooms Silk and Sericulture Unorganised Wool Sector Khadi and Village Industries (KVI) Coir Industry Food Processing Industries 5.10 Conclusion 6. Sources of Industrial Finance Need for Industrial Finance 6.2 Sources of Industrial Finance Internal Sources External Sources 6.3 Development Financial Institutions (DFIs) 6.4 All-India Financial Institutions (AIFIs) All-India Development Banks Specialised Financial Institutions Investment Institutions Refinance Institutions 6.5 State Level Institutions 6.6 Development Finance Institutions (DFIs): The Changed Scenario

6 xxiv Industry and Infrastructure Development in India Since Conclusion 7. Extent of Industrial Sickness Causes of Industrial Sickness External Causes Internal Causes 7.2 Measures to Help Sick Industrial Units 7.3 Government Policy Regarding Nationalisation of Sick Industrial Units 8. Tax Incentives for Industrialisation and Infrastructure Development Meaning of Tax Incentives 8.2 Forms of Tax Incentives Deductions Tax Credit 8.3 Rationale for Tax Incentives Individuals Business Organisations General Purpose Incentives 8.4 Problems Created by Tax Incentives 8.5 Alternatives to Tax Incentives 8.6 Tax Holiday Schemes in India Tax Holiday for Newly Established Industrial Undertakings in Free Trade Zones, Electronic Hardware Technology Parks, or Software Technology Parks Tax Holiday for Newly Established Hundred Per Cent Export-Oriented Undertakings Tax Holiday for Exporters of Wood-based Handicraft Items 8.7 Justification for Tax Incentives for Infrastructure Development 8.8 Tax Incentives for Infrastructure Development in India Incentives under Section 35-AC Extension of Tax Concessions for Infrastructure in the Union Budget 9. Industrial Relations and Labour Laws Industrial Relations: Post-Independence Trends From Laissez Faire to State Intervention First National Commission on Labour (NCL), 1969

7 xxv Declaration of Emergency, 1975 * Post-Emergency to Post-liberalisation Period (1991 onwards) 9.2 Industrial Disputes Act, Contract Labour Meaning and Forms of Contract Labour Contract Labour (Regulation and Abolition) Act, Employers Viewpoint " Workers Viewpoint Issues in Regulating Contract Labour 9.4 Second National Commission on Labour, Labour Reforms: A Touchy Issue 9.6 Conclusion 10. Indian Industry and WTO WTO: An Introduction 10.2 Non-Agricultural Market Access (NAMA) 10.3 Non-tariff Barriers 10.4 Services 10.5 Singapore Issues 10.6 Anti-dumping and Subsidies Agreements 10.7 TRIPS and Public Health 10.8 Agreement on Textiles and Clothing (ATC) 10.9 Textile Sector in the Post-Quota Era Implications for India Measures Taken by the Government Part II: Infrastructure Development in India 11. Infrastructure Development: Issues and Policies Meaning and Types of Infrastructure Economic Infrastructure Social Infrastructure 11.2 Infrastructure and Economic Development Infrastructural Bottlenecks 11.3 Traditional Approach to Infrastructure 11.4 Commercialisation of Infrastructure Services: The New Approach 11.5 Allocation of Risks: The Key Problem

8 xxvi Industry and Infrastructure Development in India Since Build-Operate-Transfer (BOT) Public-Private Partnership Value Guarantees 11.6 Infrastructure Finance: Nature and Options Role of Financial Institutions Debt Market External Sources 11.7 India Infrastructure Finance Company Limited (IIFCL) 11.8 Recent Policy Announcements on Infrastructure Infrastructure in Recent Union Budgets Eleventh Five Year Plan ( ) on Infrastructure 11.9 FDI in Infrastructure Conclusion 12. Energy Needs and Sources Energy Needs of India 12.2 Electric Power Basic Facts Legal and Regulatory Framework Institutional Reforms Private Sector Participation in Power Sector FDI in the Power Sector Poor Performance of State Electricity Boards (SEBs) Scope for Commercialisation of Power Sector Accelerated Power Development Programme (APDP) Hydro Power Development Nuclear Power Captive Power Generation Tax Incentives to Power Sector Trading in Electricity Rural Electrification New Tariff Policy of Central Electricity Regulatory Commission (CERC) for National Electricity Policy: Main Features Partnership in Excellence Eleventh Five Year Plan ( ) on Electric Power Recent Initiatives in the Power Sector Conclusion

9 xxvii 12.3 Coal Eleventh Five Year Plan ( ) on Coal Conclusion 12.4 Oil and Gas Recent Initiatives in Oil and Gas Eleventh Five Year Plan ( ) on Oil and Gas Conclusion ^ 13. Transport Infrastructure and Services Need for Integrated Transport System 13.2 Indian Railways Introduction of Railways Importance of Railways National Rail Vikas Yojana Railway Safety Review Committee Participation of State Governments Public Private Partnership Technological Upgradation Dedicated Freight Corridors (DFCs) Other Initiatives Eleventh Five Year Plan ( ) on Railways Conclusion 13.3 Roads and Road Transport Introduction Deficiencies of Road Network National Highways Development Project Pradhan Mantri Gram Sadak Yojana (PMGSY) Public-Private Partnership (PPP) Special Accelerated Road Development Programme in the North Eastern Region (SARDP-NE) Current Issues in Road Network Development Eleventh Five Year Plan ( ) on Roads Network Conclusion 13.4 Shipping and Ports Importance of Maritime Activities Maritime Agencies/Legislations Coastal Shipping Inland Water Transport (IWT)

10 xxviii Industry and Infrastructure Development in India Since Ports 13.5 Civil Aviation Civil Aviation Agencies From Monopoly to Competition Recommendations of Naresh Chandra Committee Modernisation of Delhi and Mumbai Airports Greenfield Airports Non-metro Airports Other Recent Initiatives Eleventh Five Year Plan ( ) on Civil Aviation Conclusion 14. Communications and Information Technology Telecommunications Importance of Telecommunications Telecommunications in India New Telecom Policy (NTP), Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) Telecommunications Regulatory Authority of India (TRAI) FDI in Telecommunications Telecommunication Services in Rural Areas Recent Policy Initiatives in Telecom Sector Agenda for Reforms Eleventh Five Year Plan ( ) on Telecom and Connectivity Vision for the Future Conclusion 14.2 IT and IT-enabled Services Introduction Strategies of Indian IT-BPO Companies Information Technology in Indian Banking Information Technology in Agriculture Challenges Ahead 14.3 Postal Services Project Arrow 14.4 Information and Broadcasting Broadcasting Sector

11 xxix 15. Special Economic Zones (SEZs) ' Economics of SEZs Meaning of SEZs Types of SEZs Configuration of a SEZ Advantages of SEZs Pre-conditions for the Success of SEZs Possible Reasons for the Failure of a SEZ Role of the Government Role of the Private Sector SEZs and Small Enterprises Global Experience 15.2 SEZs in India Experience with Export Processing Zones (EPZs) 15.3 Main Features of the SEZ Policy in India 15.4 Criteria for Approval 15.5 Conversion of EPZs into SEZs How are SEZs Different from EPZs? Will EPZ Conversion Help? 15.6 Performance of SEZs in India 15.7 Apprehensions and Concerns 15.8 SEZs and National Security 15.9 Lessons from China Size of SEZ Customs Regulations Incentives Package Labour Laws Involvement of State and Local Authorities DTA Sales Foreign Investment and Technology Conclusion 16. Urban Infrastructure and Services Degree of Urbanisation in India 16.2 Constitution (Seventy-fourth Amendment) Act, Features of Urban Infrastructure Services 16.4 Urban Housing 16.5 Urban Transport

12 xxx Industry and Infrastructure Development in India Since National Urban Health Mission (NUHM) 16.7 Safe Drinking Water Major Issues in Urban Water Supply Eleventh Plan Programmes for Urban Water Supply 16.8 Sanitation Including Solid Waste Management 16.9 Jawaharlal Nehru National Urban Renewal Mission (JNNURM) Eleventh Five Year Plan ( ) on Urban Infrastructure Financing of Urban Infrastructure Cost Effectiveness Institutional Structure Conclusion 17. Rural Infrastructure and Services Constitutional Provisions 17.2 Rural Housing Indira Awaas Yojana (IAY) 17.3 Rural Electrification Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY), April Rural Water Supply Swajaldhara Eleventh Plan Targets for Rural Water Supply Major Issues in Rural Water Supply 17.5 Rural Sanitation Central Rural Sanitation Programme (CRSP) Total Sanitation Campaign (TSC) Nirmal Gram Pursakar (NGP) Eleventh Plan on Rural Sanitation 17.6 National Rural Health Mission (NRHM) Strategies of NRHM Five Planks of the National Rural Health Mission 17.7 Rural Transport Pradhan Mantri Gram Sadak Yojana (PMGSY) National Rural Roads Development Agency (NRRDA) 17.8 Rural Telephony New Telecom Policy (NTP), Digital Divide 17.9 Rural Infrastructure Development Fund (RIDF)

13 XXXI Bharat Nirman Programme for Rural Infrastructure Part III: Year-wise Review of Developments in Industry/Infrastructure in India: to Part IV: Appendices Appendix 1: Industrial Policy Resolution, Appendix 2: Statement on Industrial Policy, July 24, Appendix 3: New Industrial Policy and other Concessions in the North Eastern Region Appendix 4: Industrial Infrastructure Upgradatioii Scheme Appendix 5: Industrial Park Scheme, Appendix 6: Scheme for Integrated Development of Leather Sector Appendix 7: Draft National Design Policy Appendix 8: Scheme for Central Assistance to States for Developing Export Infrastructure and other Allied Activities Appendix 9: Report on Indian Electronics Hardware Exports Appendix 10: Anti-Dumping Laws and Procedures in India Appendix 11: Industrial Policy Reforms in Selected States of India