Transcript Make in India - Department Of Industrial Policy & Promotion

Make in India:
Defence Manufacturing
Shubhra Singh
Joint Secretary
Department of Industrial Policy and Promotion
Ministry of Commerce and Industry
Make in India Initiative
Pillars of a new resurgent India
New Processes
New R&D
New Design
New Mindset
New Infrastructure
New Innovation
New Sectors
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Ease Of Doing Business
Make India the easiest and simplest place to do business
Eliminate paperwork, processes, procedures, rules & acts
Use technology to leapfrog
Converge & integrate departments
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List of 14 services Live on eBiz portal
Issue of Industrial Entrepreneur Memorandum
Issue of Industrial License
Issue of Employer Registration by Employees State Insurance
Corporation
Name Availability
Director Identification Number
Certificate of Incorporation
Commencement of Business
Issue of Permanent Account Number (PAN)
Issue of Tax Deduction Account Number (TAN)
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Advanced Foreign Remittance (AFR)
Foreign Collaboration-General Permission Route (FC-GPR)
Employer Registration
Issue of Explosive License
Importer Exporter Code License
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Ease of Doing Business
No minimum capital. No common seal. No declaration of
commencement of business
Online & real-time registration with ESIC & EPFO, PAN & TAN
Combined returns under 8 labour laws
Documents for exports and imports reduced from 11 to 3.
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Making India part of the
Global Supply Chain
India today is one of the most open economies of the world!
Railways – 100 %
Construction – 100 %
Medical devices – 100 %
Defence – 49 % can go upto 100 % in case of
modernization and state of art technology
Insurance & pension fnds – 49 %
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Industrial Corridors
India as an Investment Destination
UNCTAD’s World Investment Report, 2014
Ranked 4th among the Top-priority Host Economies
Japan Bank for International Cooperation: 2013 Survey
Ranked 2nd Most Promising Country for Overseas Business
Operations in Medium Term
Ranked Top Investment Destination in Long Term
Deloitte’s Global Manufacturing Competitiveness Index, 2013
Ranked 4th in Current Competitiveness
Ranked 2nd in Competitiveness in five years
Ernst & Young’s Attractiveness Survey, 2014 (India)
Continues as one of the Top Global Destination for FDI
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DEFENCE
MANUFACTURING
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Facts & Figures
India has the world’s 8th largest annual Defence Budget
Allocation of about 1.8% of its Gross Domestic Product (GDP)
towards defence spending, of which 40% is allocated to capital
acquisitions.
Huge opportunity in Capital procurement by Armed Forces and
Homeland Security during next 7 years( >US$ 200 Bn)
Presently about 70% of its defence requirements are met through
imports.
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Opportunities under Make in India: Defence
Manufacturing
The Indian aerospace and defence market is among the most
attractive globally and the Government is keen to leverage this in
order to promote Defence Manufacturing
Opportunities to avail defence offset obligations for technology
up-gradation
Preference to `Buy (Indian)’ and `Buy and Make (Indian)’ over
`Buy (Global)’ and `Buy and Make (Global)’ to attract foreign
investment & indigenization of latest technology
Promote India as a Manufacturing hub
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WIN-WIN FORMULA FOR IMPORT SUBSTITUTION & EXPORT PROMOTION
Foreign Direct Policy
FDI in Defence Sector raised from 26% to 49%
Above 49% FDI, with the approval of Cabinet Committee on
Security (CCS) in case of induction of modern and ‘state-of-art’
technology
Portfolio investments upto 24% under automatic route*
Condition of ownership of 51% shareholding by single largest
Indian shareholder removed*
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Industrial Licensing Policy
Defence items are covered under compulsory licensing under
the Industries (Development & Regulation) Act, 1951.
Almost 60% items delicensed.
Applications for Industrial License are accepted online (24X7) at
eBiz website – www.ebiz.gov.in
Waiting period of Industrial License brought down from 7 years
to 6 months
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Initiatives for Ease Of Doing Business
Procedure for grant of Industrial License (IL)has been
streamlined:
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Initial validity period of Industrial License increased from 2 to 7 years,
extendable to 10 years.
Partial commencement of production is treated as commencement of
production of all the items included in the license.
Investor friendly Frequently Asked Questions (FAQs) placed on DIPP website.
Restriction of annual capacity in the Industrial License for Defence Sector has
been removed.
Procedure for sale of Defence items to Govt. Agencies
liberalised
Process cleared for issue of IL for manufacture of Unmanned
Aerial Vehicle (UAV) for defence use
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Initiatives for Promotion of
Defense Manufacturing
Defence IL is not a pre-requisite for becoming an Indian Offset
Partner
The MRO activities in Defence sector are treated as Services
and don’t require IL Level playing field for Private Manufactures
in Defence Sector with Defence PSUs and Ordinance Factory
Board by withdrawing excise and custom duty exemption
available to Ordinance Factory Board and Defence PSUs.
Relaxation in Offset guidelines.
Easing of ecosystem for promotion of Defence Exports.
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Major Industrial Licenses Issued in
Naval Armament Sector
Larsen & Toubro Ltd.
Warships, Sub-marines, Weapon
Platforms, High speed boats & crafts,
weapon launchers - Ship & Airborne
Platform Based
Bharat Heavy
Electricals Ltd.
Propulsion system for ships, submarines, Patrol research vessels
ABG Shipyard
Naval warship, sub-marines,
underwater vessels, naval support
ships
Bharati Shipyards
Warships, Frigates, Sub-marines &
Patrol boats
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Alpha Design
Technologies
Naval radars
Shoft Shipyard
Warship & Naval vessels
Titagarh Wagons
Naval Warships & other naval vessels
HBL Power Systems
Ltd.
Control & Monitoring System for Ships
and Sub-marines
Pipavav
Naval Vessels, Under water systems,
Naval electronic warfare systems
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Package of Incentives by the State
Parameters
Mega Projects
Incentives: Special
Package
Project Cost
Land Rebate
VAT refund
Electricity Duty Exemption
Capital Subsidy
Interest Subsidy
Stamp Duty Exemption
Reimbursement of CST
Karnataka
Maharashtra
Mega: Area A &B, Fixed
Mega: Project cost > 250 cr Capital>=750 cr or >=1,500 jobs,
<=500 cr and jobs >=250,
Area C, Fixed Capital>=500 cr or
Ultra Mega: Project
>=1,000 jobs, Area D & D+ Fixed
Cost>500 Cr <=1,000 Cr and Capital>=250 cr or >=500 jobs,
Jobs>=500,
Backward areas, Fixed
Super Mega: Project
Capital>=100 cr or >=250 jobs,
Cost>1,000 Cr and
Ultra Mega: Fixed Capital>=1,500
Jobs>=1,000
cr or >=3000 jobs
Yes
Land, Building, P&M, pre
operative expenses and
working capital margin
Yes
Land, Building, P&M, Cost of
development, Installation,
technical know how etc)
Telangana
Mega: Capital
Investment>= 200 Cr
or >1,000 jobs
Yes
Capital Investment
Not Specified Only a note
No
No
Yes
Yes
Yes
Yes
Yes
Yes
Yes (Only for anchor units)
No
No
Yes
Yes
Yes
No
Yes
No
No
Yes
Yes
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Package of Incentives by the State
Parameters
Mega Projects
Incentives: Special Package
Project Cost
Madhya Pardesh
Rajasthan
Gujarat
Mega: Investment>100 Crore
Mega: Investment>500
Cr or Jobs>500
Mega:
Investment>=1,000 cr
and Jobs >=2,000
Yes
Plant & Machinery & Building
Yes
Yes
Land, Building, P&M,
technical know how. 30% Land, Plant &
limit on land
Machinery, Building
Labour Intensive
Industries Scheme
Other Incentives
Incentives:
Land Rebate
Yes
No
No
VAT refund
Yes
Yes
Yes
Electricity Duty Exemption
Yes
Yes
No
Capital Subsidy
Yes (Transfer Subsidy)
No
No
Interest Subsidy
No
No
Yes
Stamp Duty Exemption
No
Yes
No
Reimbursement of CST
Yes
Yes
No
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Package of Incentives by the State
Parameters
Mega Projects
Incentives: Special
Package
Project Cost
Land Rebate
VAT refund
Electricity Duty
Exemption
Capital Subsidy
Interest Subsidy
Stamp Duty
Exemption
Reimbursement of
CST
Haryana
Tamil Nadu
Andhra Pradesh
Mega: A: Investment 500-1,500 and Jobs: 300 in 3 years,
B: Investment 350-100 and 200 jobs in 3 years C:
Investment 200-500 and Jobs 100 in 4 years, Super Mega
A: A: 1,500-3,000 and jobs 400 in 5 years B: 1,000-2,000
and Jobs 300 in 5 years, C: 500-1,500 and Jobs: 250 in 5 Anchor Units:
Years, Super Mega B: A: 3,000-5,000 and Jobs 600 in 6 Investment>200 Cr
years: B: 2,000-4,000 and Jobs: 500 in 6 years C: 1,500- and Order>=50 Cr,
Mega:
3,000 and Jobs: 350 in 6 years, Ultra Mega: A: > 5,000
Mega:
Investment>100 cr and Jobs 700 in 7 years, B: > 4,000 and Jobs 600 in 7
Investment>500 Cr
or jobs >500
years, C: >3,000 and Jobs 500 in 7 years
or >2,000 Jobs
Yes
Yes
Plant & Machinery Building, Plant & Machinery
No
No (Souther District Yes)
Yes
No
Yes (Backword
regions 2012 &
2013 policy)
Yes
No
No
Yes (Backword
regions 2012 &
2013 policy)
Yes
No
Yes
Yes
Investment
No
Yes
Yes
Yes
No
Yes
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No
No
Yes
Thank You
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