11. COMMITTEE SECTION (INDUSTRY)

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1 11. COMMITTEE SECTION (INDUSTRY) 11.1 Main functions of the Section: The Committee Section (Industry) is entrusted with the task of providing secretarial assistance to the Department-related Parliamentary Standing Committee on Industry in discharging its functions within its jurisdiction. The President under Notification dated 9 th May 2007 has amended the Government of India (Allocation of Business) Rules, Pursuant to this amendment, Ministry of Agro and Rural Industries (Krishi Evam Gramin Udyog Mantralaya) and Ministry of Small Scale Industries (Laghu Udyog Mantralaya) have been merged into a single Ministry, namely, MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES (SUKSHMA LAGHU AUR MADHYAM UDYAM MANTRALAYA) The following Ministries come under the jurisdiction of the Committee on Industry: 1. Ministry of Micro, Small and Medium Enterprises 2. Ministry of Heavy Industries and Public Enterprises. (i) Department of Heavy Industry (ii) Department of Public Enterprises Like other Department -related Parliamentary Standing Committees serviced by Rajya Sabha Secretariat, the Committee on Industry is governed by Rules 268 to 277 of the Rules of Procedure and Conduct of Business in the Council of States and Rules 74 to 92 of the said Rules relating to Select Committee on Bills apply mutatis mutandis to the Committee. Rule 270 of the Rules of Procedure and Conduct of Business in the Council of States assigns the Committee the following functions:- (i) to consider the Demands for Grants of the related Ministries/Departments and report thereon. The report shall not suggest anything of the nature of cut motions; (ii) to examine Bills, pertaining to the related Ministries/Departments referred to the Committee by the Chairman or the Speaker, as the case may be, and report thereon; (iii) to consider the Annual Reports of the Ministries/Departments and report thereon ; and (iv) to consider National basic long term policy documents presented to the House, if referred to the Committee by the Chairman or the Speaker, as the case may be, and report thereon.

2 11.2 Term of the Committee: The Department related Parliamentary Standing Committee on Industry for the year 2007 was constituted on 5 th August, 2007, with Shri Santosh Bagrodia as Chairman of the Committee Consideration of Demands for Grants ( ): Detailed Demands for Grants ( ) in respect of the Ministries of Small Scale Industries, Agro & Rural Industries and Heavy Industries and Public Enterprises were closely scrutinised together with the Performance Budgets ( ) and the Ministries' Annual Reports ( ), along with Status Notes on various subjects under these Ministries which were also scrutinized and placed before the Committee. The Committee was provided with the necessary secretarial assistance enabling it to examine the demands and drafted reports on the said Demands for Grants Meetings and Reports: Till December, 2007 the Committee held 29 sittings lasting for about 60 hours to deliberate on the following issues: - S.No. Date of Agenda meeting Meeting with the representatives of Ministries of SSI and Coal on the issue of allocation of coal to Small Scale Industries Meeting with the representatives of Ministries of SSI, Urban Development, DDA and State Govt. of Delhi on the issue of availability of land for the Small & Medium Enterprises in the NCT of Delhi particularly in hospitality sector including the hotels, motels and eateries Meeting with the representatives of DPE and Ministry of Defence ( Production Division) on the issue of status of reservation for people with disabilities in the Defence Sector Meeting with the representatives of DPE and Ministry of Petroleum & Natural Gas on the issue of status of reservation for people with disabilities in the PSEs in Oil Sector Consideration of Demands for Grants ( ) of the M/o HI & PE and SSI & ARI Meeting with the representatives of Ministries of SSI, NSIC and M/o Coal and Coal India Ltd. on the issue of allocation of coal to SSI units Meeting with the representatives of DPE and

3 Ministry of Civil Aviation on the issue of status of reservation for people with disabilities in the PSEs in Civil Aviation Sector Meeting with the representatives of Ministries of SSI, Commerce & Industry and Govts. of Haryana, Karnataka and Gujarat on the issue of availability of land for SMEs with special reference to upcoming SEZs Adoption of Reports pertaining to Demands for Grants ( ). -Meeting with the representatives of Ministry of SSI, Ministry of Finance (Banking Division) on the issue of credit flow to Micro, Small and Medium Enterprises by Private Sector including foreign and multinational banks operating in India Meeting with the representatives of Ministry of Heavy Industries and HMT Ltd. on the issue of consideration of the revival of HMT Ltd., need for the disposal of surplus assets to generate resources and its impact over the ancillary units of the HMT Ltd Meeting to hear the representatives of M/o HI&PE and the M/o Power on the issue of Coal Gassification Project Meeting to hear the representatives of M/o HI&PE, M/o Law & Justice (Legal & Legislative Depts) and TCIL on the Tyre Corporation of India Ltd. (Disinvestment of Ownership) Bill, Meeting to hear the representatives of M/o HI&PE, Govt. of West Bengal, TCIL and West Bengal state based Allahabad Bank on the Tyre Corporation of India Ltd. (Disinvestment of ownership) Bill, Meeting to hear the representatives of M/o HI&PE and Auto Associations on the issue of review of Auto Policy Meeting to hear the representatives of M/o HI&PE, Law & Justice (Depts. of Legal & Legislative ), Dept. of Disinvestments, TCIL on the issue of clause by clause consideration of TCIL (Disinvestment of Ownership) Bill,2007. Meeting to the representatives of M/o HI&PE,

4 MSME, Indian Railways, Rail transportation facility for the specific requirements of Auto Sector & SME Sector Meeting to hear the representatives of M/o HI&PE, M/o Commerce, Dept. of Road Transport and Highways, All India Council for Technical Education (AICTE), Dept. of Revenue and Banking & Insurance Division, and Auto Associations (SIAM, ACMA and ATMA) and Punjab Tyre Manufacturers on the issue of review of Auto Policy Meeting for Adoption of 203 rd Report on Tyre Corporation of India Limited (Disinvestment of Ownership) Bill, Meeting to review of Auto Policy Introductory meeting of the main Committee to decide future course of action Meeting to hear representative of M/o HI & PE and HMT Ltd. to review of the performance of HMT and its subsidiaries Meeting to hear representatives from M/o MS & ME and KVIC on the issue of review of KVIC Meeting to hear representative of M/o HI & PE and AYCL to review the revival prospects of AYCL and its subsidiaries Meeting to hear representative of M/o HI & PE and BBUNL to review the revival prospects of BBUNL and its subsidiaries Meeting to hear representatives from M/o MS & ME to examine the revenue and capital expenditure made out of the Annual Grants during the first quarter of the current financial year Meeting to hear representative of M/o HI & PE and paper Sector and its subsidiaries on the issue of revival plans for the PSUs and the subsidiaries as approved by the BRPSE in context of over all performance of the Paper Industry Meeting to hear representative of Ministries of Heavy Industries & Public Enterprises, Mines and Steel on the issue of professionalisation of Boards of Directors in mining and steel sectors Meeting to hear representative of Dept. of Public Enterprises and Ministries of Textiles

5 and Tourism on the issue of consideration of professionalisation of Boards of CPSEs in Textiles and Tourism Sectors Meeting to hear representative of Ministries of Heavy Industries & Public Enterprises, Mines and Steel on the issue of professionalisation of Boards of Directors in mining and steel sectors Meeting to hear representative of Ministries of MSME, Textiles, Commerce, Finance (Revenue & Banking Divisions) and select Association in textiles Sector on the issue to discuss the constraints faced by Textiles SMEs in export, taxation and finance Meeting to hear representative of Ministries of Heavy Industries & Public Enterprises, Power and CPSEs to review the status of Heavy Electrical Industry in context of enhanced power generation target for 11 th Plan. Meeting to hear representative of Ministries of MSME, Power and Chief Secretaries of NCT of Delhi, Haryana and Uttrakhand on the issue of availability of power to MSME Sector. In addition to the Main Committee, the Sub-Committees held 09 meetings lasting for 20 hours. The details of the said meetings are as under: - S. Sub- No. Committees 1 Sub- II 2 Subcommittee- I Date of meeting Main Agenda Introductory meeting of Subcommittee-II Meeting of Subcommittee-I on the issue to discus the status of schemes of ARI in the Northeast region viz KVIC, REGP and

6 3 Sub- I 4 Sub- III 5 Sub- II 6 Sub- I 7 Sub- I 8 Sub- III PMRY with the representatives from M/o ARI and KVIC Meeting of Sub- I on the performance of Training and Skill up gradation scheme for KVI Sector. Introductory meeting of Sub- III to decide future course of action Introductory meeting of Sub- II pertaining to M/o SSI to decide future course of action Introductory meeting of Sub- I pertaining to ARI to decide future course of action Meeting of Sub- I pertaining to ARI to hear the representatives from Ministry of MS&ME, KVIC & Coir Board on the issue of Entrepreneurs Development Programmes (EDP) in KVI and Coir Sectors Meeting of Sub- III pertaining to M/o HI & PE to hear

7 9 Meeting of Sub- III the representative of M/o HI & PE on the issue of wage policy and man power rationalization in PSEs Meeting of Sub- III pertaining to M/o HI & PE to hear the views of representatives of M/o HI & PE and select Central Trade Unions on the issue of Wage Policy and its impact on VRS optees under manpower rationalisation in Central Public Sector Enterprises. The issues considered by the Committee and Reported to the Parliament during the year 2007: - S. Reports Subject No th Report on Action Taken by the Government on the recommendations contained in Committee's 189 th Report on Demands for Grants ( ) pertaining to the Ministry of Small Scale Industries Date of Date of Adoption Presentation

8 2 195 th Report on Action Taken by the Government on the recommendations contained in 190 th Report of the Committee on Demands for Grants ( ) of the Ministry of Heavy Industries and Public Enterprises (Department of Heavy Industries ) th Rep Report on Action Taken by the Government on the recommendation s contained in 191 st Report of the Committee on Demands for Grants ( ) of the Ministry of Heavy Industries and Public Enterprises (Department of Public Enterprises) th Report on Action Taken by the Government on the recommendations contained in 188 th Report of the Committee on Demands for Grants ( ) pertaining to Ministry of Agro rural Industries th Report on Professionalisation of boards of CPSEs

9 6 199 th Report on Demands for grants ( ) pertaining to The ministry of agro and rural industries th Report on Demands for grants ( ) Ministry of small scale industries st Report on Demands for grants ( ) Pertaining to the Ministry of heavy industries and public enterprises nd Report on Demands for grants ( ) Pertaining to the ministry of heavy industries and public enterprises ( department of public enterprises rd Report on Tyre Corporation of India Ltd. (Disinvestment of Ownership) Bill, Tours/Visits: - The Main Committee and Sub- Committees undertook study visits during the year under review to have an in depth study of their respective subjects which are as under: Sl. No Committee/ Sub- Committee 1. Main Committee Dates Places of visits Agenda 2 nd to 13 th January, 2007 Kolkata, Bangalore, Kochin, Jaipur, Ahmedabad (via Mumbai) and Goa. -Central and State Government and Bankers and SSI representatives on the status of SSI & Coir clusters in the State and the facilities therein. -Coal India Ltd., Balmer Lawrie &

10 co, Bengal Chemicals & Pharmaceuticals, BBUNL, HMT, Kudremukh Iron Ore Ltd., BEML, BHEL, HAL, BEL, Karnataka Antibiotics and Pharmaceuticals Ltd. and ITI, Hindustan Latex/ Cochin Shipyard/ Hindustan News Print, Goa Shipyard Ltd., Konkan Railways, MMTC/ PEC Ltd on the present status of reservation for persons with disabilities in Central PSEs. -Ancillary representatives of the HMT, the management of the HMT and the State Government on the issue of disposal of surplus assets and empowerment of the ancillaries. 2. Main Committee 2 nd to 12 th June, 2007 Bhopal, Mumbai, Hyderabadand, Bangalore, Bhubaneshwar, Guwahati and Kolkata. -BHEL and NEPA Ltd., Container Corp. India Ltd., Shipping Corp, Mumbai Railway Vikas Corp, Sponge Iron India Ltd., NMDC, BHPV,

11 HMT, Tungbhadra Steels, Central Cottage Industries Corp. Ltd, NALCO, India Rare Earth Ltd. Mahanadi Coalfields, CCI, NEEPCO, STC, HPC, SAIL, B&R on the present status of reservation for persons with disabilities in Central PSEs. -State Government and SSI/KVI associations, RBI, NABARD, SIDBI, CGTSI and nationalized bankers on credit flow. 3. Sub- II 4 Sub- I 1 st o 6 th, July, th to 1 st August, 2007 Chennai, Vishakhapatanam, Raipur and Nagpur. Chennai, Port Blair and Kolkata. State Government/ SIDO/NSIC/ REGP and KVI Associations on the cluster development for SMEs. Coir Board/ State Govts./ Bankers/ Coir entrepreneurs, MSME, KVIC on the issue of review of REGP, development of Coir Clusters and status of Credit Flow.

12 11.6 Goals and Analysis: The main Committee examined the issue of the allocation of coal to Small Scale Industries; availability of land for the Small & Medium Enterprises in the NCT of Delhi; reservation for people with disabilities; availability of land for SMEs with special reference to upcoming SEZs; credit flow to Micro, Small and Medium Enterprises; revival of HMT Ltd; Tyre Corporation of India Ltd. (Disinvestment of Ownership) Bill, 2007; review of Auto Policy; review of KVIC; to review the revival prospects of AYCL and its subsidiaries.; revival prospects of BBUNL and its subsidiaries; professionalisation of Boards of Directors in mining and steel sectors; review the status of Heavy Electrical Industry in context of enhanced power generation target for 11 th Plan; availability of power to MSME Sector. The Sub-I took up the issues pertaining to status of schemes of ARI in the North-east region viz KVIC, REGP and PMRY with the representatives from M/o ARI and KVIC; performance of Training and Skill up gradation scheme for KVI Sector; Entrepreneurs Development Programmes (EDP) in KVI and Coir Sectors. Likewise, the Sub-Committee III undertook Wage Policy and its impact on VRS optees under manpower rationalisation in Central Public Sector Enterprises. The subjects under examination of Committee will continue in the year Budget and Expenditure of the Section: For the financial year the budget grant of the Committee on Industry was Rs.3, 00,000/- (Rupees Three lakhs only). The expenditure-incurred upto December, 2007 was to the tune of Rs. 8869/= (Eight thousand eight hundred sixty nine only) on refreshment served during the meetings. This Section maintains a register to note the expenditure Status of Computerisation: This Section has been provided with Seven PCs and three printers and one Scanner. Only two printers out of four are functional and moreover functional two printers have become quite old and frequently created problem. The Section faced computer / printer related problems which was communicated to Computer Cell to do the needful. Four Computers installed in this Section have been replaced, however, remaining three need to be replaced. As for the Scanner machine installed in the Section is concerned the same has become nonfunctional due to some faults in the machine for more than three years. This Section has approached computer cell many times to upgrade the existing level and replace the old computers/ printers but no action has been taken. Hence, it becomes pertinent for the

13 computer cell to make provision to increase the speed and memory of the existing computer; screening viruses at a regular interval; and arrangement may be made for proper monitoring of agencies involved in its maintenance Overall assessment of performance during last year: -This Section provided secretarial services with utmost sincerity and devotion. All the officials have shown team-spirit in the execution of the works assigned to this Section. All the works were finished in time and with a high degree of satisfaction. The fact that the Committee on Industry presented 10 reports during the year 2007, which is testimony to the performance of the Committee Section (Industry) Inspection of the Section: - Inspection of the Section for the year 2006 was done on by Shri S.K. Ganguli, Director (T) wherein it was noticed that due to shortage of space, accommodation and seating arrangement are very congested and even records cannot be accommodated in the Section. There is urgent need for renovation of the room. Since this room is located in the basement, exhaust fans may be provided. The entry point of the Committee Complex is giving a shabby look. The place is full of broken furnitures etc. Urgent steps may be taken to cleanse the place. An indicator board showing names of the Committees may be fixed at the entry point of the Committee Complex for convenience of visitors and others. There is no door while entering the Committee Branch at least a sliding door with locking facility may be provided. In view of the location of the room, in the office interest Emergency Exit may also be provided. The performance of the Section has been found good. More over it was also felt that the old Computers & Printers need to be replaced immediately Training of the Staff: So far the training to the Officer & staff is concerned, it may be stated that Shri Pritam Kumar, Senior Committee Assistant attended the Training Programmes organized by the Training Unit. The details are given below:- S.No. Name of the Participants 1. Shri Pritam Kumar, Senior Committee Assistant Title of the programme -Parliamentary procedure & practice -Office Procedure Duration -8 th to 12 th October, th to 31 st May 2007

14 11.12 Projection of the performance in ensuing year: In the coming year the Section aims at adopting an integrated and holistic approach towards examination of detailed Demands for Grants ( ) of the concerned Ministries/Departments. It aims to examine the Demands for Grants vis-a-vis the Eleventh Five Years Plan ( ), Supplementary Demands, if any, and the Economic Survey of the current year besides the relevant papers provided by the Ministries. As the Committee on Industry examines the Demands for Grants of significant Ministries/Departments having far-reaching impact on the country s socio- economy affairs, the Committee will accord due importance to the prevailing National and International economic scenario. Like other Sections the Committee on Industry has prepared Action Plan for the year (2008) and every efforts will be made to achieve the objectives and goals set in the Action Plan, subject to the amendment made therein as per the direction of the Chairman and the Members of the Committee from time to time.