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NEW ECONOMIC POLICIES
In the presence of a more globalized environment all over the world, the policies of a country act as a key determinant for getting the real benefits of the same. Particularly for the developing nations, the Government's policies largely affect its economic environments. After the adoption of the new economic policies in India, the country has reviewed its policies and
NEW ECONOMIC POLICIES IN DIFFERENT SECTORS OF THE ECONOMY CIVIL AVIATION POLICY FOREIGN DIRECT INVESTMENT POLICY DRUG POLICY INDUSTRIAL POLICY BROAD BAND POLICY 2004 NATIONAL ELECTRICITY POLICY AMENDMENTS TO COMPANIES ACT 1956
FOREIGN TRADE POLICY FOREIGN TRADE POLICY SUPPLEMENT EXIM POLICY NEW TELECOM POLICY 1999 NATIONAL MINERAL POLICY
CIVIL AVIATION POLICY The objectives of this policy are the creation and continued facilitation of a competitive and service-oriented civil aviation environment in which: The interests of the users of civil aviation are the guiding force behind all decisions, systems and arrangements, Safe, efficient, reliable and widespread quality air transport services are provided at reasonable prices, There exists a well-defined regulatory framework catering to changing needs and circumstances,
Private participation is encouraged and opportunities created for investors to realize adequate returns on their investments; Recognizing that aviation today is an important element of infrastructure, rapid upgradation of airport infrastructure to world class with priority to the busiest airports and those handling international flights; Recognizing that transportation of air cargo is vital to the economic growth of the country, creation and development of specific infrastructure for air transportation of cargo and express cargo is encouraged,
"Airline operations and acquisition of aircraft" is conferred "infrastructure" status for overall growth of civil aviation sector in the country Domestic and international aviation in the country are encouraged to grow at par with world aviation industry; Inter-linkages with other modes of transport are encouraged and stimulated; Trade, tourism and overall economic activity and growth is encouraged;
International cooperation in aviation and development in tune with international trends and best practices, consistent with airspace sovereignty is promoted; Indigenous development of aircraft, components and aviation products is encouraged, Security of civil aviation operations is ensured through appropriate systems, policies, and practices, and Effective systems are put in place for timely crisis and disaster management, including investigation of incidents/accidents.
A statutory autonomous Civil Aviation Authority (CAA) will be constituted. The basic objectives of setting up of the Authority will be to ensure aviation safety, security and effective regulation of air transport in the country in the liberalized environment.
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Private sector participation will be a major thrust area in the civil aviation sector for promoting investment, improving quality and efficiency and increasing competition. The Government will aim at ensuring adequate world class airport infrastructure capacity in accordance with demand, ensuring maximum utilization of available capacities and efficiently managing the airport infrastructure by increasing involvement of private sector.
The central Government has increased the FDI Limits in Air Transport Service (Domestic Airlines) on 10th November 2004. Now Foreign equity up to 49% and Non-Resident Indian investment up to 100% will be permitted for domestic passenger transport services. However, equity participation from foreign airlines either directly or indirectly will not be permitted. Substantive ownership and effective control by Indians will be a prerequisite.
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The Government will aim at ensuring adequate capacity to fully meet the requirement of international trade and tourism. The government will give thrust on use of Information technology in all aspects of civil aviation sector. Each organisation will have time-bound IT action plan.
A thrust for international tourism in India will be given by Providing freedom to International Tourist Charters to all airports linking places of tourist interest Declaring additional airports as international airports resulting in easy connectivity and better services, Upgradation of airports at places of Tourist interest like Buddhist circuit, sanctuaries, beach resorts etc.
Standards for civil aviation safety for all agencies will be set as per international norms prescribed by ICAO and enforced by CAA New Communication, Navigation Surveillance/ Air Traffic Management (CNS/ATM) system will be introduced on a priority basis as per ICAO's regional plan.
A strict national civil aviation security programme to safeguard civil aviation operations against acts of unlawful interference will be established through regulations, practices and procedures, which take account of the safety, regularity and efficiency of flights. Periodic review of threat perception will be carried out taking into account the international situation, internal security scenario and other relevant inputs. Security arrangements and drills will be updated and
The role of aviation support services like human resource development, maintenance facilities and manufacture of aircraft is very important, as these are the backbone of civil aviation services. These services should be available in state-of-art condition in adequate supply in accordance with demand. For this, the role of private sector needs to be emphasised. Training Standards and guidelines for training institutions will be prescribed and enforced by CAA. Private sector participation will be
FOREIGN DIRECT INVESTMENT POLICY
FDI up to 100% is allowed under the automatic route in all activities/sectors except the following which will require approval of the Government : Activities/items that require an Industrial Licence; Proposals in which the foreign collaborator has a previous/existing venture/tie up in India in the same or allied field
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All proposals relating to acquisition of shares in an existing Indian company by a foreign/NRI investor. All proposals falling outside notified sectoral policy/caps or under sectors in which FDI is not permitted. FDI policy is reviewed on an ongoing basis and measures for its further liberalization are taken. Change in sectoral policy/sectoral equity cap is notified from time to time through Press Notes by the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. Policy announcement by SIA are subsequently notified by RBI under FEMA. All Press Notes are available at the website of Department of Industrial Policy & Promotion.
FDI Policy permits FDI up to 100 % from foreign/NRI investor without prior approval in most of the sectors including the services sector under automatic route. FDI in sectors/activities under automatic route does not require any prior approval either by the Government or the RBI. The investors are required to notify the Regional office concerned of RBI of receipt of inward remittances within 30 days of such receipt and will have to file the required documents with that office within 30 days after issue of
The Foreign Investment Promotion Board (FIPB) considers approving all proposals for foreign investment, which requires Government approval. The FIPB also grants composite approvals involving foreign investment/foreign technical collaboration.
FDI applications with NRI Investments and 100% EOU should be submitted to the Public Relation & Complaint (PR&C) Section of Secretariat of Industrial Assistance (SIA), Department of Industrial Policy & Promotion.
FDI is not permissible in Gambling and Betting, or Lottery Business, Business of chit fund, Nidhi Company, Housing and Real Estate business, Trading in Transferable Development Rights (TDRs), Retail Trading, Atomic Energy Agricultural or plantation activities or Agriculture (excluding Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisiculture and Cultivation of Vegetables, Mushrooms etc. under controlled conditions and services related to agro and allied sectors) and
RBI has granted general permission under Foreign Exchange Management Act (FEMA) in respect of proposals approved by the Government. Indian companies getting foreign investment approval through FIPB route do not require any further clearance from RBI for the purpose of receiving inward remittance and issue of shares to the foreign investors.
An Indian corporate can raise foreign currency resources abroad through the issue of American Depository Receipts (ADRs) or Global Depository Receipts (GDRs). FCCBs are issued in accordance with the scheme [the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993] and subscribed by a non-resident in foreign currency and convertible into ordinary shares of the issuing company in any manner, either in whole, or in part, on the basis of any equity related warrants attached to debt instruments;
100% FDI is permitted under automatic route for setting up of Special Economic Zone. Units in SEZ qualify for approval through automatic route subject to sectoral norms. 100% FDI is permitted under automatic route for setting up 100% EOU, subject to sectoral norms. 100% FDI is permitted under automatic route for setting up of Industrial Park.
FDI inflows are required to be under the following modes: By inward remittances through normal banking channels or By debit to the specified account of person concerned maintained in an authorized dealer/authorized bank. Issue of equity to non-residents against other modes of FDI inflows or in kind is not permissible.
A foreign company planning to set up business operations in India has the following options: Joint Ventures; or Wholly Owned Subsidiaries Liaison Office/Representative Office Project Office Branch Office The Reserve Bank of India's Exchange Control Department, administers Foreign Exchange Management Act, 1999, (FEMA) which has replaced the earlier act , FERA, with effect from June 1, 2000.
Prior approval of the RBI is required for acquiring foreign currency above certain limits for the following purposes: Holiday travel over US$ 10,000 p.a. Gift / donation over US$ 5,000 / US$ 10,000 per beneficiary p.a. Business travel over US$ 25,000 per person Foreign studies as per estimate of institution or US$ 100,000 per academic year Architectural / consultancy services procured from abroad over US$ 1,000,000 per project Remittance for purchase of Trade Mark / Franchise Reimbursement of pre incorporation expenses over US$ 100,000
DRUG POLICY
Abolition of industrial licensing for manufacture of all drugs and pharmaceuticals except for bulk drugs produced by the use of recombinant DNA technology, bulk drugs requiring in-vivo use of nucleic acids, and specific cell tissue targeted formulation. Reservation of 5 drugs for manufacture by the public sector only was abolished in Feb.1999, thus opening them up for manufacture by the private sector also. Foreign investment through automatic route was raised from 51% to 74% in March, 2000 and the same has been raised to 100%.
Drugs and pharmaceuticals manufacturing units in the public sector are being allowed to face competition including competition from imports. Wherever possible, these units are being privatized. Introduction of the Patents (Second Amendment) bill in the Parliament. It, interalia, provides for the extension in the life of a patent to 20 years.
Two major issues have surfaced on account of globalization and implementation of our obligations under TRIPs which impact on long-term competitiveness of Indian industry. These have been addressed in the Pharmaceutical Policy-2002. The main objectives of this policy are: Ensuring abundant availability at reasonable prices within the country of good quality essential pharmaceuticals of mass consumption.
pharmaceuticals by reducing barriers to trade in the pharmaceutical sector. Strengthening the system of quality control over drug and pharmaceutical production and distribution to make quality an essential attribute of the Indian pharmaceutical industry and promoting rational use of pharmaceuticals. Encouraging R&D in the pharmaceutical sector in a manner compatible with the country's needs and with particular focus on diseases endemic or relevant to India by creating an environment conducive to channelising a higher level of investment
Creating an incentive framework for the pharmaceutical industry which promotes new investment into pharmaceutical industry and encourages the introduction of new technologies and new drugs. Industrial Licensing Industrial licensing for all bulk drugs cleared by Drug Controller General (India), all their intermediates and formulations will be abolished, subject to stipulations laid down from time to time in the Industrial Policy, except in the cases of bulk drugs produced by the use of recombinant DNA technology, bulk drugs requiring in-vivo use of nucleic acids as the active principles, and specific cell/tissue targetted formulations.
Foreign investment upto 100% will be permitted, subject to stipulations laid down from time to time in the Industrial Policy, through the automatic route in the case of all bulk drugs cleared by Drug Controller General (India) Automatic approval for Foreign Technology Agreements will be available in the case of all bulk drugs cleared by Drug Controller General (India).
Imports of drugs and pharmaceuticals will be as per EXIM policy in force. ENCOURAGEMENT TO RESEARCH AND DEVELOPMENT (R&D) Maximum Allowable Post-manufacturing Expenses (MAPE) will be 100% for indigenously manufactured formulations. For imported formulations, the margin to cover selling and distribution expenses including interest and importer's profit shall not exceed fifty percent of the landed cost.
The DPCRC's recommendations to have effective monitoring and enforcement system and to move away from the "controlled regime" to a "monitoring regime" is in the present context an extremely important recommendation as imports will increasingly compete with local drugs and pharmaceuticals in the domestic market. A new system based on solely market prices data is required to be evolved and controls applied selectively only to cases where, either profiteering or monopoly profit seeking is
INDUSTRIAL POLICY Objectives of the Industrial Policy Maintaining a sustained growth in productivity; Enhancing gainful employment; Achieving optimal utilisation of human resources; Attaining international competitiveness and Transforming the country into a major partner and player in the global arena.
BROAD BAND POLICY
Keeping in view the present status, Broadband connectivity is defined at present as "An 'always-on' data connection that is able to support interactive services including Internet access and has the capability of the minimum download speed of 256 kilo bits per second (kbps) to an individual subscriber from the Point Of Presence (POP) of the service provider intending to provide Broadband service where multiple such individual Broadband connections are aggregated and the subscriber is able to access these interactive services including the Internet through this POP. The interactive services will exclude any services for which a separate licence is specifically required, for example, real-time voice transmission, except to the extent that it is presently permitted under ISP licence with Internet Telephony."
Various access technologies are: Optical Fibre Technologies; This is being deployed in commercial buildings and complexes and some metros / big cities having high-density potential broadband subscribers. There are more than 4.5 lakh route kms. of optical fibre laid by BSNL / MTNL and more than 1 lakh route kms laid by private operators.
Digital Subscriber Lines(DSL) on copper loop : Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) as well as other access providers are expected to aggressively use their copper loop infrastructure for providing Broadband services through this technology. Use of brand-name being treated as a part of the value shall be permitted in commercial arrangements.
Management of BSNL and MTNL decided to provide 1.5 million connections by the end of 2005 Cable TV network can be used as franchisee network of the service provider for provisioning Broadband services. However, all responsibilities for ensuring compliance of terms & conditions of the licence shall vest with the Licensee. Satellite Media Very Small Aperture Terminals (VSAT) and Direct-to-Home(DTH) services would be encouraged for penetration of Broadband and Internet services with the added advantage to
Commercial VSAT service providers having ISP licence shall be permitted use of same hub station and remote station to provide Internet service directly to the subscribers. DTH service providers shall be permitted to provide Receive Only Internet Service after obtaining ISP licence from Department of Telecommunications.
To accelerate penetration of Broadband and Internet, the 5.15-5.35 GHz band shall be de-licensed for the indoor use of low power Wi-Fi systems. In the changing technology scenario, there is a possibility of new options being used for provisioning of Broadband services. These technologies can also be utilised for provisioning of such services within the licensing framework of the service provider and the spectrum management policy of DoT.
As per TRAI Act, 1997, TRAI has to prescribe QoS parameters. Government recognises that QoS parameters are extremely important and have an impact on investment and roll-out decisions of operators. TRAI would be requested to prescribe QoS parameters for provisioning of broadband service using various access technologies at an early date.
Government have recently decided to reduce the licence fee for Infrastructure Provider category-II, who provides end to end bandwidth, to 6% of Adjusted Gross Revenue (AGR). Further, the amount of bank guarantee for such service provider has also been reduced to Rs.5 crores from Rs.100 crores. National Internet Exchange of India (NIXI) has been set up by DIT, Governmentof India to ensure that Internet traffic, originating and destined for India, should be routed within India. It is expected that NIXI will take
PCs, content and applications are important constituents for overall growth of Internet and Broadband services. Broadband services will accelerate decentralised governance at Panchayat level.
NATIONAL ELECTRICITY POLICY
Under the provisions of section 3(1) of the Electricity Act, 2003, the Central Government is required to prepare the National Electricity Policy for development of the power system based on optimal utilization of resources. The Policy has been evolved after extensive consultations with the States, other stake holders, the Central Electricity Authority and after considering the advice of the Central Electricity Regulatory Commission.
Objectives of the Policy Access to Electricity Available for all households in next five years. Availability of Power Demand to be fully met by 2012. Energy and peaking shortages to be overcome and spinning reserve to be available Supply of Reliable and Quality Power of specified standards in an efficient manner and at reasonable rates.
Financial Turnaround and Commercial Viability of Electricity Sector. Protection of consumers interests. The Policy recognizes the need for ensuring recovery of cost of service from consumers to make the power sector sustainable. The National Electricity Policy lays special emphasis on time bound reduction of transmission and distribution losses and advocates promotion of competition aimed at consumer benefits.
The National Electricity Policy lays down the approach for developing Rural Electrification distribution backbone and village electrification to achieve the target of completing household electrification in next five years as envisaged in the National Common Minimum Programme. The policy also envisages financial support in terms of capital subsidy to States for rural electrification and special preference to Dalit Bastis, Tribal Areas and other weaker sections for rural electrification.
The policy estimates that to meet the objective of rapid economic growth and power for all including household electrification, an investment of the order of Rs.9,00,000 crores would be required to finance generation, transmission, sub-transmission, distribution and rural electrification projects upto the year 2012. Open access in transmission will promote competition and in turn lead to availability of cheaper power.
The policy emphasizes that the Regulatory Commissions need to provide facilitative framework for non-discriminatory open access at the earliest including technological upgradation of the State Load Dispatch Centres by June 2006 to ensure data acquisition capability on a real time basis. The policy also emphasises on higher efficiency levels of generating plants through renovation and modernization, transmission capacity to have redundancy level and margins as per international standards, adequate transitional financial support for
Per capita availability of electricity to be increased to over 1000 units by 2012. Minimum lifeline consumption of 1 unit/household/day as a merit good by year 2012. CEA to notify first National Electricity Plan in six months with a perspective up B12th Plan period. The Plan prepared by CEA to be used by prospective generating companies, transmission utilities and transmission / distribution licensees as reference document.
Creation of adequate generation capacity with a spinning reserve of at least 5% by 2012 with availability of installed capacity at 85%. Exploitation of non-conventional energy sources such as small hydro, solar, biomass and wind for additional power generation capacity.
AMENDMENTS TO COMPANIES ACT 1956 The Union Cabinet has approved the proposal of Ministry of Company Affairs for introducing limited amendments in Companies Act, 1956 through a Bill called Companies (Amendment) Bill, 2006 in the ensuing session of Parliament. Some of the major changes envisaged through the proposed Amendment Bill are as follows: Allotment of Director Identification Number (DIN) to any individual, intending to be appointed as director in a company or for any existing director of a company, for the purpose of his identification as such, through electronic mode; Ensuring secure e filing and authentication of documents consistent with Information Technology Act, 2000 through Digital Signature Certificates. This modality would prevent any tempering of edocuments subsequent to filing. The e-documents
Provision of such value added services by the Government through electronic forms from the electronic database created in the data process. Enabling powers to the Government to prescribe rules where necessary to facilitate e filing by corporate entities and access to corporate data statutorily placed in the public domain
FOREIGN TRADE POLICY
Unshackling of controls and creating an atmosphere of trust and transparency to unleash the innate entrepreneurship of our businessmen, industrialists and traders. Simplifying procedures and bringing down transaction costs. Neutralizing incidence of all levies and duties on inputs used in export products, based on the fundamental principle that duties and levies should not be exported. Facilitating development of India as a global hub for manufacturing, trading and services. Identifying and nurturing special focus areas which would generate additional employment opportunities, particularly in semi-urban and rural areas, and
The new Policy envisages merchant exporters and manufacturer exporters, business and industry as partners of Government in the achievement of its stated objectives and goals. A new scheme called the Vishesh Krishi Upaj Yojana (Special Agricultural Produce Scheme) for promoting the export of fruits, vegetables, flowers, minor forest produce, and their value added products has been introduced Funds shall be earmarked under ASIDE for development of Agri Export Zones (AEZ) Specific funds would be earmarked for promoting handloom exports. New Handicraft SEZs shall be established which would procure products from the cottage sector and do the finishing for exports. Import of gold of 18 carat and above shall be allowed under the replenishment scheme. Duty free import entitlement of specified items shall be 5% of FOB value of exports during the preceding financial year.
FOREIGN TRADE POLICY SUPPLEMENT
Indian commerce minister, Kamal Nath has proposed new trade initiatives and has continued with the thrust on exports in his Annual Supplement to Foreign Trade Policy 2004-09.
HIGHLIGHTS OF THE FTP ANNUAL SUPPLEMENT • Exports zoom to record high of $ 80 billion in 2004-05 with highest ever growth rate - India on way to doubling her share in world trade
Measures to enhance competitiveness of India's manufacturing sector and employment generation Big thrust on agri exports -- removal of export cess on agri and plantation commodities proposed Additional EPCG benefits for agriculture and SSIs - EPCG for retail sector operationalised New initiatives on infrastructure to reduce congestion at major ports - EPCG extended to minor ports, ICDs and CFs Big leap towards procedural simplification and
Imports under 'served from India' scheme to allow bulk sourcing Marine sector gets special attention in the wake of tsunami Setting up of inter-state trade council proposed India's exports in the very first year of the comprehensive Foreign Trade Policy announced by him last year touched a record high of US $ 80 billion showing the highest ever export growth rate of 24% (in US dollar terms) surpassing the target set for the year.
In a major leap towards paperless trading, Nath has announced a series of initiatives in the direction of moving towards reduced paper transactions through procedural simplifications. A single common application form called "Aayaat Niryat Form" is being introduced, reducing the documentation requirements by more than 60%.
Further, three categories of advance licences are being merged into a single category and annual advance licence, which was available only to status holders, will now be available to all exporters with some export performance.
In the area of service exports, to enable service providers to upgrade infrastructure in their associate companies, goods imported under the "Served from India" Scheme will be transferable within the group companies and managed hotels. This provision would allow bulk sourcing and better utilization of the entitlement.
In order to develop niche market with distinct identity for quality products, Indian commerce minister said that the Government would develop a trademark for Handloom also on lines similar to 'Woolmark' and 'Silkmark'. To promote export of 'Minor Forest Produce' products Shellac Export Promotion Council has been designated as a nodal EPC for minor forest produce. The Target Plus Scheme aimed at rewarding incremental exports would continue in the year 200506 with such modifications as will be notified, separately for preventing misuse, if any. All Export Promotion Council (EPCs) shall open a separate Cell to involve and encourage youth and women entrepreneurs in the export effort
EXIM POLICY EXIM POLICY 2002-07 EXIM POLICY 2004-09
NEW TELECOM POLICY 1999
The Government of India (Government) recognizes that provision of world class telecommunications infrastructure and information is the key to rapid economic and social development of the country. It is Anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. In 1994, the Government announced the National Telecom Policy which defined certain important objectives, including availability of telephone on demand, provision of world class services at reasonable prices, ensuring India's emergence as major manufacturing / export base of telecom equipment and universal availability of basic telecom services to all villages.
It also announced a series of specific targets to be achieved by 1997. As against the NTP 1994 target of provision of 1 PCO per 500 urban population and coverage of all 6 lac villages, DoT has achieved an urban PCO penetration of 1 PCO per 522 and has been able to provide telephone coverage to only 3.1 lac villages. As regards provision of total telephone lines in the country, DoT has provided 8.73 million telephone lines against the eighth plan target of 7.5 million lines.
NTP 1994 also recognized that the required resources for achieving these targets would not be available only out of Government sources and concluded that private investment and involvement of the private
The objectives of the NTP 1999 are as under: Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, of and the provision high-level services capable of meeting the needs of the country's economy Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country; Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, telecom and consumer electronics and thereby propel India into becoming an IT superpower;
Convert PCO's, wherever justified, into Public Teleinfo centres having multimedia capability like ISDN services, remote database access, government and community information systems etc. Strengthen research and development efforts in the country and provide an impetus to build world-class manufacturing capabilities Achieve efficiency and transparency in spectrum management Protect the defence & security interests of the country Enable Indian Telecom Companies to become truly global players.
Make available telephone on demand by the year 2002 and sustain it thereafter so as to achieve a teledensity of 7 by the year 2005 and 15 by the year 2010 Encourage development of telecom in rural areas making it more affordable by suitable tariff structure and making rural communication mandatory for all fixed service providers Increase rural teledensity from the current level of 0.4 to 4 by the year 2010 and provide reliable transmission media in all rural areas Achieve telecom coverage of all villages in the country and provide reliable media to all exchanges by the year 2002 Provide Internet access to all district head quarters by the year 2000 Provide high speed data and multimedia capability
The New Policy Framework would look at the telecom service sector as follows – Cellular Mobile Service Providers, Fixed Service Providers and Cable Service Providers, collectively referred to as 'Access Providers'. Radio Paging Service Providers The Radio Paging Service Providers (RPSP) shall be permitted to provide paging services within their service area of operation
Public Mobile Radio Trunking Service Providers Direct interconnectivity between licenced PMRTSP's and any other type of service provider in their area of operation shall be permitted after examining the legal implications in view of the CMSP licences National long distance service beyond service area to the private operators will be opened for competition with effect from January 1, 2000 For applications like tele-banking, telemedicine, tele-education, tele-trading, ecommerce, other service providers will be
On line Electronic Commerce will be encouraged so that information can be passed seamlessly The Government has decided to separate the policy and licensing functions of DoT from the service provision functions as a precursor to corporatisation The corporatisation of DoT shall be done keeping in mind the interests of all stakeholders by the year 2001. Provide voice and low speed data service to the balance 2.9 lac uncovered villages in the country by the year 2002 Achieve Internet access to all district head quarters by the year 2000 Achieve telephone on demand in urban and rural areas by 2002 Setting up an empowered Inter-Ministerial Group to be called as Wireless Planning Coordination Committee (WPCC) as part of the Ministry of Communications for periodical review of spectrum availability and broad allocation policy. The Telecom Regulatory Authority of India (TRAI) was formed in January 1997 with a view to provide an effective regulatory framework and adequate safeguards to ensure fair competition and protection of consumer interests
AMENDMENT TO NTP 1999 Government, in the public interest in general and consumer interest in particular and for the proper conduct of telegraphs and telecommunications services, has decided that there shall also be the following categories of licences for telecommunication services: (i) Unified Licence for Telecommunication Services permitting Licensee to provide all telecommunication/ telegraph services covering various geographical areas using any technology; (ii) Licence for Unified Access (Basic and Cellular) Services permitting Licensee to provide Basic and /or Cellular Services using any technology in a defined
NATIONAL MINERAL POLICY
To explore for identification of mineral wealth in the land and in off-shore areas; To develop mineral resources taking into account the national and strategic considerations and to ensure their adequate supply and best use keeping in view the present needs and future requirements; To promote necessary linkages for smooth and uninterrupted development of the mineral industry to meet the needs of the country;
To promote research and development in minerals; To ensure establishment of appropriate educational and training facilities for human resources development to meet the manpower requirements of the mineral industry; To minimise adverse effects of mineral development on the forest, environment and ecology through appropriate protective measures; and
The Strategy for development of any mineral should naturally keep in view its ultimate end uses. The guiding principle in the strategy of development of any mineral or mineral deposit at any location shall ordinarily be the economic cost. The national inventory of mineral resources including those of ocean bed will be based on a comprehensive review of exploration data. Mine development and mineral conservation as governed by the rules and regulations will be on sound scientific basis, with the regulatory agencies closely interacting with R&D organisation, scientific and professional
Studies for fixation of productivity norms and goals will be taken up to promote productivity of men, machines and to improve the consumption norms of fuel and materials. Research organisations, including the National Mineral Processing Laboratories of the Indian Bureau of Mines should be strengthened for development of processes for beneficiation and mineral and elemental analysis of ores and ore dressing products. As an important conservation measure, recycling of metallic scrap like steel, copper, aluminium, zinc, lead etc. shall be encouraged and facilitated by fixation of appropriate standards for classification and grading of scrap and adoption of fiscal measures.
Indigenous industry for manufacture of mining equipment and machinery shall be strengthened. Existing facilities for basic and specialised training shall be constantly reviewed and upgraded from time to time to ensure that adequately trained manpower at all levels is available for the development of mines and minerals industries. Information about technological changes leading to substitution of the mineral or the products made out of such a mineral shall be compiled and disseminated from time to time
Steps shall be taken to facilitate the financing of mine development and also of exploration integral to the mining project. Induction of foreign technology and foreign participation in exploration and mining for high value and scarce minerals shall be pursued. To facilitate the choice or order of land use keeping in view the needs of development as well as needs of protecting the forests, environment and ecology. Steps will also be taken to minimise the adverse impact of mining on the health of
Whenever mine closure becomes necessary, it should be orderly and systematic and so planned as to help the workers and the dependent community rehabilitate themselves without undue hardship. While compensation is generally paid to the owner for the acquisition of his land, efforts shall be made to ensure suitable rehabilitation of affected persons.
In the presence of a more globalized environment all over the world, the policies of a country act as a key determinant for getting the real benefits of the same. Particularly for the developing nations, the Government's policies largely affect its economic environments. After the adoption of the new economic policies in India, the country has reviewed its policies and
NEW ECONOMIC POLICIES IN DIFFERENT SECTORS OF THE ECONOMY CIVIL AVIATION POLICY FOREIGN DIRECT INVESTMENT POLICY DRUG POLICY INDUSTRIAL POLICY BROAD BAND POLICY 2004 NATIONAL ELECTRICITY POLICY AMENDMENTS TO COMPANIES ACT 1956
FOREIGN TRADE POLICY FOREIGN TRADE POLICY SUPPLEMENT EXIM POLICY NEW TELECOM POLICY 1999 NATIONAL MINERAL POLICY
CIVIL AVIATION POLICY The objectives of this policy are the creation and continued facilitation of a competitive and service-oriented civil aviation environment in which: The interests of the users of civil aviation are the guiding force behind all decisions, systems and arrangements, Safe, efficient, reliable and widespread quality air transport services are provided at reasonable prices, There exists a well-defined regulatory framework catering to changing needs and circumstances,
Private participation is encouraged and opportunities created for investors to realize adequate returns on their investments; Recognizing that aviation today is an important element of infrastructure, rapid upgradation of airport infrastructure to world class with priority to the busiest airports and those handling international flights; Recognizing that transportation of air cargo is vital to the economic growth of the country, creation and development of specific infrastructure for air transportation of cargo and express cargo is encouraged,
"Airline operations and acquisition of aircraft" is conferred "infrastructure" status for overall growth of civil aviation sector in the country Domestic and international aviation in the country are encouraged to grow at par with world aviation industry; Inter-linkages with other modes of transport are encouraged and stimulated; Trade, tourism and overall economic activity and growth is encouraged;
International cooperation in aviation and development in tune with international trends and best practices, consistent with airspace sovereignty is promoted; Indigenous development of aircraft, components and aviation products is encouraged, Security of civil aviation operations is ensured through appropriate systems, policies, and practices, and Effective systems are put in place for timely crisis and disaster management, including investigation of incidents/accidents.
A statutory autonomous Civil Aviation Authority (CAA) will be constituted. The basic objectives of setting up of the Authority will be to ensure aviation safety, security and effective regulation of air transport in the country in the liberalized environment.
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Private sector participation will be a major thrust area in the civil aviation sector for promoting investment, improving quality and efficiency and increasing competition. The Government will aim at ensuring adequate world class airport infrastructure capacity in accordance with demand, ensuring maximum utilization of available capacities and efficiently managing the airport infrastructure by increasing involvement of private sector.
The central Government has increased the FDI Limits in Air Transport Service (Domestic Airlines) on 10th November 2004. Now Foreign equity up to 49% and Non-Resident Indian investment up to 100% will be permitted for domestic passenger transport services. However, equity participation from foreign airlines either directly or indirectly will not be permitted. Substantive ownership and effective control by Indians will be a prerequisite.
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The Government will aim at ensuring adequate capacity to fully meet the requirement of international trade and tourism. The government will give thrust on use of Information technology in all aspects of civil aviation sector. Each organisation will have time-bound IT action plan.
A thrust for international tourism in India will be given by Providing freedom to International Tourist Charters to all airports linking places of tourist interest Declaring additional airports as international airports resulting in easy connectivity and better services, Upgradation of airports at places of Tourist interest like Buddhist circuit, sanctuaries, beach resorts etc.
Standards for civil aviation safety for all agencies will be set as per international norms prescribed by ICAO and enforced by CAA New Communication, Navigation Surveillance/ Air Traffic Management (CNS/ATM) system will be introduced on a priority basis as per ICAO's regional plan.
A strict national civil aviation security programme to safeguard civil aviation operations against acts of unlawful interference will be established through regulations, practices and procedures, which take account of the safety, regularity and efficiency of flights. Periodic review of threat perception will be carried out taking into account the international situation, internal security scenario and other relevant inputs. Security arrangements and drills will be updated and
The role of aviation support services like human resource development, maintenance facilities and manufacture of aircraft is very important, as these are the backbone of civil aviation services. These services should be available in state-of-art condition in adequate supply in accordance with demand. For this, the role of private sector needs to be emphasised. Training Standards and guidelines for training institutions will be prescribed and enforced by CAA. Private sector participation will be
FOREIGN DIRECT INVESTMENT POLICY
FDI up to 100% is allowed under the automatic route in all activities/sectors except the following which will require approval of the Government : Activities/items that require an Industrial Licence; Proposals in which the foreign collaborator has a previous/existing venture/tie up in India in the same or allied field
•
All proposals relating to acquisition of shares in an existing Indian company by a foreign/NRI investor. All proposals falling outside notified sectoral policy/caps or under sectors in which FDI is not permitted. FDI policy is reviewed on an ongoing basis and measures for its further liberalization are taken. Change in sectoral policy/sectoral equity cap is notified from time to time through Press Notes by the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. Policy announcement by SIA are subsequently notified by RBI under FEMA. All Press Notes are available at the website of Department of Industrial Policy & Promotion.
FDI Policy permits FDI up to 100 % from foreign/NRI investor without prior approval in most of the sectors including the services sector under automatic route. FDI in sectors/activities under automatic route does not require any prior approval either by the Government or the RBI. The investors are required to notify the Regional office concerned of RBI of receipt of inward remittances within 30 days of such receipt and will have to file the required documents with that office within 30 days after issue of
The Foreign Investment Promotion Board (FIPB) considers approving all proposals for foreign investment, which requires Government approval. The FIPB also grants composite approvals involving foreign investment/foreign technical collaboration.
FDI applications with NRI Investments and 100% EOU should be submitted to the Public Relation & Complaint (PR&C) Section of Secretariat of Industrial Assistance (SIA), Department of Industrial Policy & Promotion.
FDI is not permissible in Gambling and Betting, or Lottery Business, Business of chit fund, Nidhi Company, Housing and Real Estate business, Trading in Transferable Development Rights (TDRs), Retail Trading, Atomic Energy Agricultural or plantation activities or Agriculture (excluding Floriculture, Horticulture, Development of Seeds, Animal Husbandry, Pisiculture and Cultivation of Vegetables, Mushrooms etc. under controlled conditions and services related to agro and allied sectors) and
RBI has granted general permission under Foreign Exchange Management Act (FEMA) in respect of proposals approved by the Government. Indian companies getting foreign investment approval through FIPB route do not require any further clearance from RBI for the purpose of receiving inward remittance and issue of shares to the foreign investors.
An Indian corporate can raise foreign currency resources abroad through the issue of American Depository Receipts (ADRs) or Global Depository Receipts (GDRs). FCCBs are issued in accordance with the scheme [the Scheme for issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993] and subscribed by a non-resident in foreign currency and convertible into ordinary shares of the issuing company in any manner, either in whole, or in part, on the basis of any equity related warrants attached to debt instruments;
100% FDI is permitted under automatic route for setting up of Special Economic Zone. Units in SEZ qualify for approval through automatic route subject to sectoral norms. 100% FDI is permitted under automatic route for setting up 100% EOU, subject to sectoral norms. 100% FDI is permitted under automatic route for setting up of Industrial Park.
FDI inflows are required to be under the following modes: By inward remittances through normal banking channels or By debit to the specified account of person concerned maintained in an authorized dealer/authorized bank. Issue of equity to non-residents against other modes of FDI inflows or in kind is not permissible.
A foreign company planning to set up business operations in India has the following options: Joint Ventures; or Wholly Owned Subsidiaries Liaison Office/Representative Office Project Office Branch Office The Reserve Bank of India's Exchange Control Department, administers Foreign Exchange Management Act, 1999, (FEMA) which has replaced the earlier act , FERA, with effect from June 1, 2000.
Prior approval of the RBI is required for acquiring foreign currency above certain limits for the following purposes: Holiday travel over US$ 10,000 p.a. Gift / donation over US$ 5,000 / US$ 10,000 per beneficiary p.a. Business travel over US$ 25,000 per person Foreign studies as per estimate of institution or US$ 100,000 per academic year Architectural / consultancy services procured from abroad over US$ 1,000,000 per project Remittance for purchase of Trade Mark / Franchise Reimbursement of pre incorporation expenses over US$ 100,000
DRUG POLICY
Abolition of industrial licensing for manufacture of all drugs and pharmaceuticals except for bulk drugs produced by the use of recombinant DNA technology, bulk drugs requiring in-vivo use of nucleic acids, and specific cell tissue targeted formulation. Reservation of 5 drugs for manufacture by the public sector only was abolished in Feb.1999, thus opening them up for manufacture by the private sector also. Foreign investment through automatic route was raised from 51% to 74% in March, 2000 and the same has been raised to 100%.
Drugs and pharmaceuticals manufacturing units in the public sector are being allowed to face competition including competition from imports. Wherever possible, these units are being privatized. Introduction of the Patents (Second Amendment) bill in the Parliament. It, interalia, provides for the extension in the life of a patent to 20 years.
Two major issues have surfaced on account of globalization and implementation of our obligations under TRIPs which impact on long-term competitiveness of Indian industry. These have been addressed in the Pharmaceutical Policy-2002. The main objectives of this policy are: Ensuring abundant availability at reasonable prices within the country of good quality essential pharmaceuticals of mass consumption.
pharmaceuticals by reducing barriers to trade in the pharmaceutical sector. Strengthening the system of quality control over drug and pharmaceutical production and distribution to make quality an essential attribute of the Indian pharmaceutical industry and promoting rational use of pharmaceuticals. Encouraging R&D in the pharmaceutical sector in a manner compatible with the country's needs and with particular focus on diseases endemic or relevant to India by creating an environment conducive to channelising a higher level of investment
Creating an incentive framework for the pharmaceutical industry which promotes new investment into pharmaceutical industry and encourages the introduction of new technologies and new drugs. Industrial Licensing Industrial licensing for all bulk drugs cleared by Drug Controller General (India), all their intermediates and formulations will be abolished, subject to stipulations laid down from time to time in the Industrial Policy, except in the cases of bulk drugs produced by the use of recombinant DNA technology, bulk drugs requiring in-vivo use of nucleic acids as the active principles, and specific cell/tissue targetted formulations.
Foreign investment upto 100% will be permitted, subject to stipulations laid down from time to time in the Industrial Policy, through the automatic route in the case of all bulk drugs cleared by Drug Controller General (India) Automatic approval for Foreign Technology Agreements will be available in the case of all bulk drugs cleared by Drug Controller General (India).
Imports of drugs and pharmaceuticals will be as per EXIM policy in force. ENCOURAGEMENT TO RESEARCH AND DEVELOPMENT (R&D) Maximum Allowable Post-manufacturing Expenses (MAPE) will be 100% for indigenously manufactured formulations. For imported formulations, the margin to cover selling and distribution expenses including interest and importer's profit shall not exceed fifty percent of the landed cost.
The DPCRC's recommendations to have effective monitoring and enforcement system and to move away from the "controlled regime" to a "monitoring regime" is in the present context an extremely important recommendation as imports will increasingly compete with local drugs and pharmaceuticals in the domestic market. A new system based on solely market prices data is required to be evolved and controls applied selectively only to cases where, either profiteering or monopoly profit seeking is
INDUSTRIAL POLICY Objectives of the Industrial Policy Maintaining a sustained growth in productivity; Enhancing gainful employment; Achieving optimal utilisation of human resources; Attaining international competitiveness and Transforming the country into a major partner and player in the global arena.
BROAD BAND POLICY
Keeping in view the present status, Broadband connectivity is defined at present as "An 'always-on' data connection that is able to support interactive services including Internet access and has the capability of the minimum download speed of 256 kilo bits per second (kbps) to an individual subscriber from the Point Of Presence (POP) of the service provider intending to provide Broadband service where multiple such individual Broadband connections are aggregated and the subscriber is able to access these interactive services including the Internet through this POP. The interactive services will exclude any services for which a separate licence is specifically required, for example, real-time voice transmission, except to the extent that it is presently permitted under ISP licence with Internet Telephony."
Various access technologies are: Optical Fibre Technologies; This is being deployed in commercial buildings and complexes and some metros / big cities having high-density potential broadband subscribers. There are more than 4.5 lakh route kms. of optical fibre laid by BSNL / MTNL and more than 1 lakh route kms laid by private operators.
Digital Subscriber Lines(DSL) on copper loop : Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) as well as other access providers are expected to aggressively use their copper loop infrastructure for providing Broadband services through this technology. Use of brand-name being treated as a part of the value shall be permitted in commercial arrangements.
Management of BSNL and MTNL decided to provide 1.5 million connections by the end of 2005 Cable TV network can be used as franchisee network of the service provider for provisioning Broadband services. However, all responsibilities for ensuring compliance of terms & conditions of the licence shall vest with the Licensee. Satellite Media Very Small Aperture Terminals (VSAT) and Direct-to-Home(DTH) services would be encouraged for penetration of Broadband and Internet services with the added advantage to
Commercial VSAT service providers having ISP licence shall be permitted use of same hub station and remote station to provide Internet service directly to the subscribers. DTH service providers shall be permitted to provide Receive Only Internet Service after obtaining ISP licence from Department of Telecommunications.
To accelerate penetration of Broadband and Internet, the 5.15-5.35 GHz band shall be de-licensed for the indoor use of low power Wi-Fi systems. In the changing technology scenario, there is a possibility of new options being used for provisioning of Broadband services. These technologies can also be utilised for provisioning of such services within the licensing framework of the service provider and the spectrum management policy of DoT.
As per TRAI Act, 1997, TRAI has to prescribe QoS parameters. Government recognises that QoS parameters are extremely important and have an impact on investment and roll-out decisions of operators. TRAI would be requested to prescribe QoS parameters for provisioning of broadband service using various access technologies at an early date.
Government have recently decided to reduce the licence fee for Infrastructure Provider category-II, who provides end to end bandwidth, to 6% of Adjusted Gross Revenue (AGR). Further, the amount of bank guarantee for such service provider has also been reduced to Rs.5 crores from Rs.100 crores. National Internet Exchange of India (NIXI) has been set up by DIT, Governmentof India to ensure that Internet traffic, originating and destined for India, should be routed within India. It is expected that NIXI will take
PCs, content and applications are important constituents for overall growth of Internet and Broadband services. Broadband services will accelerate decentralised governance at Panchayat level.
NATIONAL ELECTRICITY POLICY
Under the provisions of section 3(1) of the Electricity Act, 2003, the Central Government is required to prepare the National Electricity Policy for development of the power system based on optimal utilization of resources. The Policy has been evolved after extensive consultations with the States, other stake holders, the Central Electricity Authority and after considering the advice of the Central Electricity Regulatory Commission.
Objectives of the Policy Access to Electricity Available for all households in next five years. Availability of Power Demand to be fully met by 2012. Energy and peaking shortages to be overcome and spinning reserve to be available Supply of Reliable and Quality Power of specified standards in an efficient manner and at reasonable rates.
Financial Turnaround and Commercial Viability of Electricity Sector. Protection of consumers interests. The Policy recognizes the need for ensuring recovery of cost of service from consumers to make the power sector sustainable. The National Electricity Policy lays special emphasis on time bound reduction of transmission and distribution losses and advocates promotion of competition aimed at consumer benefits.
The National Electricity Policy lays down the approach for developing Rural Electrification distribution backbone and village electrification to achieve the target of completing household electrification in next five years as envisaged in the National Common Minimum Programme. The policy also envisages financial support in terms of capital subsidy to States for rural electrification and special preference to Dalit Bastis, Tribal Areas and other weaker sections for rural electrification.
The policy estimates that to meet the objective of rapid economic growth and power for all including household electrification, an investment of the order of Rs.9,00,000 crores would be required to finance generation, transmission, sub-transmission, distribution and rural electrification projects upto the year 2012. Open access in transmission will promote competition and in turn lead to availability of cheaper power.
The policy emphasizes that the Regulatory Commissions need to provide facilitative framework for non-discriminatory open access at the earliest including technological upgradation of the State Load Dispatch Centres by June 2006 to ensure data acquisition capability on a real time basis. The policy also emphasises on higher efficiency levels of generating plants through renovation and modernization, transmission capacity to have redundancy level and margins as per international standards, adequate transitional financial support for
Per capita availability of electricity to be increased to over 1000 units by 2012. Minimum lifeline consumption of 1 unit/household/day as a merit good by year 2012. CEA to notify first National Electricity Plan in six months with a perspective up B12th Plan period. The Plan prepared by CEA to be used by prospective generating companies, transmission utilities and transmission / distribution licensees as reference document.
Creation of adequate generation capacity with a spinning reserve of at least 5% by 2012 with availability of installed capacity at 85%. Exploitation of non-conventional energy sources such as small hydro, solar, biomass and wind for additional power generation capacity.
AMENDMENTS TO COMPANIES ACT 1956 The Union Cabinet has approved the proposal of Ministry of Company Affairs for introducing limited amendments in Companies Act, 1956 through a Bill called Companies (Amendment) Bill, 2006 in the ensuing session of Parliament. Some of the major changes envisaged through the proposed Amendment Bill are as follows: Allotment of Director Identification Number (DIN) to any individual, intending to be appointed as director in a company or for any existing director of a company, for the purpose of his identification as such, through electronic mode; Ensuring secure e filing and authentication of documents consistent with Information Technology Act, 2000 through Digital Signature Certificates. This modality would prevent any tempering of edocuments subsequent to filing. The e-documents
Provision of such value added services by the Government through electronic forms from the electronic database created in the data process. Enabling powers to the Government to prescribe rules where necessary to facilitate e filing by corporate entities and access to corporate data statutorily placed in the public domain
FOREIGN TRADE POLICY
Unshackling of controls and creating an atmosphere of trust and transparency to unleash the innate entrepreneurship of our businessmen, industrialists and traders. Simplifying procedures and bringing down transaction costs. Neutralizing incidence of all levies and duties on inputs used in export products, based on the fundamental principle that duties and levies should not be exported. Facilitating development of India as a global hub for manufacturing, trading and services. Identifying and nurturing special focus areas which would generate additional employment opportunities, particularly in semi-urban and rural areas, and
The new Policy envisages merchant exporters and manufacturer exporters, business and industry as partners of Government in the achievement of its stated objectives and goals. A new scheme called the Vishesh Krishi Upaj Yojana (Special Agricultural Produce Scheme) for promoting the export of fruits, vegetables, flowers, minor forest produce, and their value added products has been introduced Funds shall be earmarked under ASIDE for development of Agri Export Zones (AEZ) Specific funds would be earmarked for promoting handloom exports. New Handicraft SEZs shall be established which would procure products from the cottage sector and do the finishing for exports. Import of gold of 18 carat and above shall be allowed under the replenishment scheme. Duty free import entitlement of specified items shall be 5% of FOB value of exports during the preceding financial year.
FOREIGN TRADE POLICY SUPPLEMENT
Indian commerce minister, Kamal Nath has proposed new trade initiatives and has continued with the thrust on exports in his Annual Supplement to Foreign Trade Policy 2004-09.
HIGHLIGHTS OF THE FTP ANNUAL SUPPLEMENT • Exports zoom to record high of $ 80 billion in 2004-05 with highest ever growth rate - India on way to doubling her share in world trade
Measures to enhance competitiveness of India's manufacturing sector and employment generation Big thrust on agri exports -- removal of export cess on agri and plantation commodities proposed Additional EPCG benefits for agriculture and SSIs - EPCG for retail sector operationalised New initiatives on infrastructure to reduce congestion at major ports - EPCG extended to minor ports, ICDs and CFs Big leap towards procedural simplification and
Imports under 'served from India' scheme to allow bulk sourcing Marine sector gets special attention in the wake of tsunami Setting up of inter-state trade council proposed India's exports in the very first year of the comprehensive Foreign Trade Policy announced by him last year touched a record high of US $ 80 billion showing the highest ever export growth rate of 24% (in US dollar terms) surpassing the target set for the year.
In a major leap towards paperless trading, Nath has announced a series of initiatives in the direction of moving towards reduced paper transactions through procedural simplifications. A single common application form called "Aayaat Niryat Form" is being introduced, reducing the documentation requirements by more than 60%.
Further, three categories of advance licences are being merged into a single category and annual advance licence, which was available only to status holders, will now be available to all exporters with some export performance.
In the area of service exports, to enable service providers to upgrade infrastructure in their associate companies, goods imported under the "Served from India" Scheme will be transferable within the group companies and managed hotels. This provision would allow bulk sourcing and better utilization of the entitlement.
In order to develop niche market with distinct identity for quality products, Indian commerce minister said that the Government would develop a trademark for Handloom also on lines similar to 'Woolmark' and 'Silkmark'. To promote export of 'Minor Forest Produce' products Shellac Export Promotion Council has been designated as a nodal EPC for minor forest produce. The Target Plus Scheme aimed at rewarding incremental exports would continue in the year 200506 with such modifications as will be notified, separately for preventing misuse, if any. All Export Promotion Council (EPCs) shall open a separate Cell to involve and encourage youth and women entrepreneurs in the export effort
EXIM POLICY EXIM POLICY 2002-07 EXIM POLICY 2004-09
NEW TELECOM POLICY 1999
The Government of India (Government) recognizes that provision of world class telecommunications infrastructure and information is the key to rapid economic and social development of the country. It is Anticipated that going forward, a major part of the GDP of the country would be contributed by this sector. In 1994, the Government announced the National Telecom Policy which defined certain important objectives, including availability of telephone on demand, provision of world class services at reasonable prices, ensuring India's emergence as major manufacturing / export base of telecom equipment and universal availability of basic telecom services to all villages.
It also announced a series of specific targets to be achieved by 1997. As against the NTP 1994 target of provision of 1 PCO per 500 urban population and coverage of all 6 lac villages, DoT has achieved an urban PCO penetration of 1 PCO per 522 and has been able to provide telephone coverage to only 3.1 lac villages. As regards provision of total telephone lines in the country, DoT has provided 8.73 million telephone lines against the eighth plan target of 7.5 million lines.
NTP 1994 also recognized that the required resources for achieving these targets would not be available only out of Government sources and concluded that private investment and involvement of the private
The objectives of the NTP 1999 are as under: Strive to provide a balance between the provision of universal service to all uncovered areas, including the rural areas, of and the provision high-level services capable of meeting the needs of the country's economy Encourage development of telecommunication facilities in remote, hilly and tribal areas of the country; Create a modern and efficient telecommunications infrastructure taking into account the convergence of IT, media, telecom and consumer electronics and thereby propel India into becoming an IT superpower;
Convert PCO's, wherever justified, into Public Teleinfo centres having multimedia capability like ISDN services, remote database access, government and community information systems etc. Strengthen research and development efforts in the country and provide an impetus to build world-class manufacturing capabilities Achieve efficiency and transparency in spectrum management Protect the defence & security interests of the country Enable Indian Telecom Companies to become truly global players.
Make available telephone on demand by the year 2002 and sustain it thereafter so as to achieve a teledensity of 7 by the year 2005 and 15 by the year 2010 Encourage development of telecom in rural areas making it more affordable by suitable tariff structure and making rural communication mandatory for all fixed service providers Increase rural teledensity from the current level of 0.4 to 4 by the year 2010 and provide reliable transmission media in all rural areas Achieve telecom coverage of all villages in the country and provide reliable media to all exchanges by the year 2002 Provide Internet access to all district head quarters by the year 2000 Provide high speed data and multimedia capability
The New Policy Framework would look at the telecom service sector as follows – Cellular Mobile Service Providers, Fixed Service Providers and Cable Service Providers, collectively referred to as 'Access Providers'. Radio Paging Service Providers The Radio Paging Service Providers (RPSP) shall be permitted to provide paging services within their service area of operation
Public Mobile Radio Trunking Service Providers Direct interconnectivity between licenced PMRTSP's and any other type of service provider in their area of operation shall be permitted after examining the legal implications in view of the CMSP licences National long distance service beyond service area to the private operators will be opened for competition with effect from January 1, 2000 For applications like tele-banking, telemedicine, tele-education, tele-trading, ecommerce, other service providers will be
On line Electronic Commerce will be encouraged so that information can be passed seamlessly The Government has decided to separate the policy and licensing functions of DoT from the service provision functions as a precursor to corporatisation The corporatisation of DoT shall be done keeping in mind the interests of all stakeholders by the year 2001. Provide voice and low speed data service to the balance 2.9 lac uncovered villages in the country by the year 2002 Achieve Internet access to all district head quarters by the year 2000 Achieve telephone on demand in urban and rural areas by 2002 Setting up an empowered Inter-Ministerial Group to be called as Wireless Planning Coordination Committee (WPCC) as part of the Ministry of Communications for periodical review of spectrum availability and broad allocation policy. The Telecom Regulatory Authority of India (TRAI) was formed in January 1997 with a view to provide an effective regulatory framework and adequate safeguards to ensure fair competition and protection of consumer interests
AMENDMENT TO NTP 1999 Government, in the public interest in general and consumer interest in particular and for the proper conduct of telegraphs and telecommunications services, has decided that there shall also be the following categories of licences for telecommunication services: (i) Unified Licence for Telecommunication Services permitting Licensee to provide all telecommunication/ telegraph services covering various geographical areas using any technology; (ii) Licence for Unified Access (Basic and Cellular) Services permitting Licensee to provide Basic and /or Cellular Services using any technology in a defined
NATIONAL MINERAL POLICY
To explore for identification of mineral wealth in the land and in off-shore areas; To develop mineral resources taking into account the national and strategic considerations and to ensure their adequate supply and best use keeping in view the present needs and future requirements; To promote necessary linkages for smooth and uninterrupted development of the mineral industry to meet the needs of the country;
To promote research and development in minerals; To ensure establishment of appropriate educational and training facilities for human resources development to meet the manpower requirements of the mineral industry; To minimise adverse effects of mineral development on the forest, environment and ecology through appropriate protective measures; and
The Strategy for development of any mineral should naturally keep in view its ultimate end uses. The guiding principle in the strategy of development of any mineral or mineral deposit at any location shall ordinarily be the economic cost. The national inventory of mineral resources including those of ocean bed will be based on a comprehensive review of exploration data. Mine development and mineral conservation as governed by the rules and regulations will be on sound scientific basis, with the regulatory agencies closely interacting with R&D organisation, scientific and professional
Studies for fixation of productivity norms and goals will be taken up to promote productivity of men, machines and to improve the consumption norms of fuel and materials. Research organisations, including the National Mineral Processing Laboratories of the Indian Bureau of Mines should be strengthened for development of processes for beneficiation and mineral and elemental analysis of ores and ore dressing products. As an important conservation measure, recycling of metallic scrap like steel, copper, aluminium, zinc, lead etc. shall be encouraged and facilitated by fixation of appropriate standards for classification and grading of scrap and adoption of fiscal measures.
Indigenous industry for manufacture of mining equipment and machinery shall be strengthened. Existing facilities for basic and specialised training shall be constantly reviewed and upgraded from time to time to ensure that adequately trained manpower at all levels is available for the development of mines and minerals industries. Information about technological changes leading to substitution of the mineral or the products made out of such a mineral shall be compiled and disseminated from time to time
Steps shall be taken to facilitate the financing of mine development and also of exploration integral to the mining project. Induction of foreign technology and foreign participation in exploration and mining for high value and scarce minerals shall be pursued. To facilitate the choice or order of land use keeping in view the needs of development as well as needs of protecting the forests, environment and ecology. Steps will also be taken to minimise the adverse impact of mining on the health of
Whenever mine closure becomes necessary, it should be orderly and systematic and so planned as to help the workers and the dependent community rehabilitate themselves without undue hardship. While compensation is generally paid to the owner for the acquisition of his land, efforts shall be made to ensure suitable rehabilitation of affected persons.
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