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Manufacturing Sector

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Manufacturing Sector

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Snehlata
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Industrial Policies of India

●​ 1948: First Industrial Policy:


○​ State Role: Entrepreneur and authority in a mixed economic model.
○​ Industry Classification:
■​ Strategic (Public Sector): Central government monopoly (e.g., arms,
atomic energy, rail).
■​ Basic/Key (Public-cum-Private): Government-led (e.g., coal, steel,
ship-building).
■​ Important (Controlled Private): Private-led, centrally controlled.
■​ Other (Private & Cooperative): Open to private sector.
○​ Industries (Development and Regulation) Act, 1951: Implemented 1948
policy.
●​ 1956: Industrial Policy Resolution:
○​ Reservation:
■​ Schedule A: 17 sectors for central government monopoly.
■​ Schedule B: 12 sectors for state initiatives with private follow-up.
■​ Schedule C: Open to private enterprise.
○​ Licensing Regime: Licence-Quota-Permit system to prioritize heavy industries,
reduce regional disparities, support small industries/agriculture.​

Import Substitution in India

●​ Objective: Replace imports with domestic production for self-reliance.


●​ Protection Mechanisms:
○​ Tariffs: Increased import costs.
○​ Quotas: Limited imported goods to protect local industries.
●​ Rationale:
○​ Protected nascent industries.
○​ Conserved foreign exchange.
○​ Focused on domestic market; export focus began in mid-1980s.
●​ Impact (1951-1991):
○​ Industrial GDP share grew from 13% (1950-51) to 24.6% (1990-91).
○​ Diversified from textiles to electronics and automobiles.
○​ Boosted small-scale industries.
●​ Criticisms:
○​ Public sector inefficiencies in areas suited for private sector.
○​ Permit-License Raj: Stifled innovation, favored large firms.
○​ Low-quality products due to lack of foreign competition.
●​ Shift to Liberalization (1991):
○​ New Economic Policy introduced reforms for deregulation, competition, and
global trade integration.
●​ 1991: New Industrial Policy:
○​ De-reservation: Only atomic energy and railways reserved for public sector.
○​ De-licensing: Licensing abolished except for aerospace, defense, hazardous
chemicals.
○​ Disinvestment:
■​ Token: Sale of ≤49% PSU shares, retaining government control.
■​ Strategic: Sale of ≥51% PSU shares, transferring control.
■​ Managed by Department of Investment and Public Asset Management
(DIPAM).
○​ Foreign Investment: Liberalized to encourage FDI.

National Manufacturing Policy, 2011

●​ Goals:
○​ Manufacturing growth of 12-14% (medium term).
○​ Contribute 25% to GDP by 2022.
○​ Create 100 million jobs by 2022.
○​ Enhance domestic value addition, technological depth, global competitiveness,
sustainability.
●​ GVA Growth (FY14-FY23):
○​ Chemicals: 9.6%, Pharmaceuticals: 6.7%, Machinery: 8.3%, Transport
Equipment: 6.5%, Manufacturing Overall: 5.3%.

Labour Laws in India

●​ Constitutional Context: Labour is a concurrent subject.


●​ New Labour Codes: Consolidated 29 laws into four codes:
○​ Code on Wages, 2019:
■​ Nationwide minimum wage, states can set higher rates.
■​ Defines wage components (basic pay, dearness allowance).
■​ Wages payable within two days of wage period end.
○​ Occupational Safety, Health and Working Conditions Code, 2020:
■​ Unifies 13 labour laws.
■​ Sets workplace health, safety, welfare standards.
■​ Empowers inspectors, mandates safety committees.
○​ Social Security Code, 2020:
■​ Merges nine laws for simplified benefits access.
■​ Covers organized/unorganized sectors.
■​ Enhances benefit transferability, transparency via centralized systems.
○​ Industrial Relations Code, 2020:
■​ Unifies laws on trade unions, disputes, standing orders.
■​ Introduces fixed-term employment, easier retrenchment.
■​ Expedites dispute resolution via conciliation/arbitration.
■​ Mandates worker committees for establishments with ≥100 workers.
National Investment and Manufacturing Zones (NIMZs) and Special Economic Zones
(SEZs)

●​ NIMZs (National Manufacturing Policy, 2011):


○​ Objective: Accelerate industrialization, job creation, increase manufacturing
GDP share.
○​ Features:
■​ Minimum 5,000 hectares, no upper limit.
■​ Integrated townships with schools, hospitals, utilities.
■​ Focus on high-value manufacturing ecosystems.
■​ State conducts Environmental Impact Assessment (EIA).
■​ Incentives similar to SEZs but broader industrial focus.
○​ Approved NIMZs: Prakasam (Andhra Pradesh), Sangareddy (Telangana),
Kalinganagar (Odisha).

Industrial Growth and Manufacturing in FY24

●​ Economic Growth: India’s economy grew 8.2% in FY24; industrial growth at 9.5%.
●​ Sector Performance:
○​ Manufacturing and construction: Double-digit growth.
○​ Mining, quarrying, electricity, and water supply: Positive growth.
●​ Manufacturing Contribution:
○​ 14.3% of Gross Value Added (GVA) in FY23.
○​ 35.2% of total output; 47.5% used as inputs for productive activities.
○​ Supplies 50% of inputs for agriculture, industry, and services.
●​ Growth Trends (Last Decade):
○​ Average annual manufacturing growth: 5.2%.

Public Sector Undertakings (PSUs)

●​ Definition: Government-owned companies with ≥51% equity held by Union/State


governments.
●​ Categories:
○​ Miniratna Category I:
■​ Criteria: Continuous profit for 3 years, net profit ≥₹30 crore in one year.
■​ Autonomy: Capital expenditure up to ₹500 crore or net worth (whichever
is lower).
○​ Miniratna Category II:
■​ Criteria: Continuous profit for 3 years, positive net worth.
■​ Autonomy: Capital expenditure up to ₹300 crore or 50% of net worth.
○​ Navratna:
■​ Criteria: Miniratna-I status, “Excellent”/“Very Good” MoU rating in 3/5
years, composite score ≥60 in six performance indicators.
■​ Autonomy: Invest up to ₹1,000 crore, enter joint ventures/mergers without
approval.
■​ Examples: Bharat Heavy Electricals Ltd, BPCL, Power Grid Corporation.
○​ Maharatna:
■​ Criteria: Navratna status, net worth >₹15,000 crore, turnover >₹25,000
crore, operating profit >₹5,000 crore for 3 years, listed on Indian stock
exchange, global presence.
■​ Autonomy: Invest up to ₹5,000 crore, form joint ventures abroad, raise
project resources independently.
■​ Examples: Coal India Ltd, Indian Oil Corporation, ONGC.
●​ Performance: Profit-making CPSEs increased from 178 (FY19) to 193 (FY23);
loss-making decreased from 70 to 57.

Micro, Small, and Medium Enterprises (MSMEs)

●​ Small-Scale Industry:
○​ Karve Committee (1955): Promoted small industries for rural development; initial
investment limit ₹5 lakh, later raised to ₹1 crore.
○​ Labor-Intensive: Generated jobs, supported by tax benefits, low-interest loans,
and reserved product categories.
●​ MSMED Act (2006):
○​ Manufacturing Enterprises: Produce goods.
○​ Service Enterprises: Provide services.
●​ Classification:
○​ Micro: Investment ≤₹1 crore, turnover ≤₹5 crore.
○​ Small: Investment ≤₹10 crore, turnover ≤₹50 crore.
○​ Medium: Investment ≤₹50 crore, turnover ≤₹250 crore.
●​ Economic Contribution:
○​ GVA share in GDP: 30.1% (2022-23). Trend - Zig Zag
○​ Manufacturing output: 35.4% (FY22).
○​ Exports: 45.7% of all-India exports (2023-24).
○​ Productivity: GVA per worker rose from ₹1,38,207 to ₹1,41,769; GVO per
establishment from ₹3,98,304 to ₹4,63,389 (2021-23).
●​ Formalisation:
○​ Udyam Registration Portal (July 2020): 4.69 crore registered MSMEs (July
2024).
○​ Benefits: Priority sector lending, access to government schemes.
●​ Initiatives:
○​ Samadhaan Portal: Addresses delayed payments.
○​ Sambandh Portal: Monitors procurement.
○​ Champions Portal: Facilitates grievance resolution.

Industries Requiring Compulsory Licensing


●​ Drugs and pharmaceuticals.
●​ Hazardous chemicals, gunpowder, industrial explosives.
●​ Aerospace and defense-related electronics.
●​ Alcohol drinks, tobacco, cigarettes.

One District One Product (ODOP) Initiative

●​ Launched: 2018.
●​ Objective: Promote unique district products for regional economic balance.
●​ Achievements:
○​ 1102 products across 761 districts.
○​ Unity Malls for ODOP and GI-tagged products.
○​ Global visibility via G20 events.
●​ Success Stories:
○​ Bhatinda (Punjab): Honey, 30% production rise.

Coal Sector

●​ Nationalization: Coal sector nationalized (1971-73) under Indira Gandhi.


●​ Coal Mines (Special Provisions) Act, 2015: Enabled coal mine allocation via
auction/allotment for private sector sales.
●​ Role in Energy:
○​ Supplies >55% of India’s primary commercial energy, 70% of power generation.
○​ FY24 Metrics:
■​ Production: 997.2 million tonnes (MT).
■​ Consumption: 1233.86 MT.
■​ Imports: 261 MT.
○​ Improved domestic production-to-consumption ratio over the last decade.
●​ Trends (CAGR):
○​ FY14-FY19: Production (5.2%), Consumption (5.6%), Imports (7.1%).
○​ FY19-FY24: Production (6.5%), Consumption (5.0%), Imports (2.1%).
○​ FY24 (YoY): Production (11.7%), Consumption (10.7%), Imports (9.8%).
●​ Initiatives:
○​ Coal Gasification: Target to gasify 100 MT by 2030; ₹8,500 crore scheme
(2023-24) for viability gap funding.
○​ Integrated Coal Logistics Policy (2024): Cost-effective, tech-advanced coal
evacuation.
○​ Amended Coal Blocks Allocation Rules (2023): Streamlined allocation
procedures.
○​ Renewable Energy by CIL: 3,000 MW renewable capacity for mining by FY26;
8.60 million solar units in 2023-24.
○​ First Mile Connectivity: Enhanced coal evacuation via high-capacity
plants/silos.
○​ Critical Minerals: Focus on acquiring lithium and cobalt assets.
●​ Challenges:
○​ Limited indigenous modern mining equipment.
○​ Regulatory delays (forestry, environmental clearances, land acquisition).
○​ Coking Coal: 85% imported for steel industry; rising demand requires better
beneficiation (Coking Coal Mission).
●​ Opportunities:
○​ Cleaner coal technologies to reduce emissions.
○​ Coal as green energy via Coal Mine Methane (CMM), Coal Bed Methane (CBM),
coal-to-liquid, coal-to-methanol.
●​ Production-to-Consumption Ratio:
○​ FY14: 76.6%, FY19: 78.6%, FY24: 80.8%.

National Coal Index

●​ Purpose: Calculates government revenue share from coal mine auctions.


●​ Developed by: Indian Statistical Institute, Kolkata.

Make in India and Startups

●​ Make in India (2014):


○​ Objectives: Boost manufacturing growth, create 100 million jobs by 2022,
achieve 25% GDP share by 2025.
○​ Make in India 2.0: Focuses on 27 sectors (15 manufacturing, 12 services).
●​ Startup India (2016):
○​ Promotes entrepreneurship, innovation in technology/services.
○​ Offers tax exemptions, simplified regulations.
●​ Stand Up India (2016):
○​ Facilitates loans (₹10 lakh-₹1 crore) for SC/ST and women borrowers per bank
branch for greenfield enterprises.
○​ Encourages entrepreneurship in manufacturing, services, agri-allied, trading.
●​ Startup Ecosystem:
○​ DPIIT-Recognized Startups: >1.25 lakh by March 2024 (from 300 in 2016).
○​ Sectors: 13,000+ in AI, IoT, robotics, nanotechnology (FY24).
○​ Geographic Spread: >45% from Tier 2/3 cities.
○​ Gender Diversity: >47% startups with at least one woman director.
○​ Patents: 12,000+ patent applications (2016-March 2024).
○​ Patent Growth: From 5,978 (FY15) to 103,057 (FY24); designs from 7,147 to
30,672.
●​ Initiatives:
○​ Patent Rules, 2024: Simplified patent acquisition/management.
○​ Anusandhan National Research Foundation (ANRF) Bill, 2023: ₹50,000 crore
(2023-28) for industry-academia-research collaboration.
○​ Fund of Funds for Startups: ₹10,500 crore to 135 AIFs, investing ₹18,000 crore
in startups (FY24).
○​ Bharat Startup Knowledge Access Registry: Unified platform for startup
ecosystem stakeholders.
●​ Global Innovation Index (GII): India ranks 1st among lower middle-income and
central/southern Asian economies; top in domestic market scale.

Production-Linked Incentive (PLI) Scheme

●​ Objective: Boost domestic manufacturing, reduce import dependency, promote exports


under Aatmanirbhar Bharat.
●​ Scope: Covers 14 key sectors with ₹1.97 lakh crore outlay.
●​ Achievements (May 2024):
○​ Investment: >₹1.28 lakh crore.
○​ Production/Sales: ₹10.8 lakh crore.
○​ Employment: 8.5 lakh direct/indirect jobs.
○​ Exports: ₹4 lakh crore (electronics, pharmaceuticals, food processing, telecom).
●​ Incentives:
○​ Financial rewards based on incremental production/sales.
○​ Promotes large-scale production, technological advancements, global
competitiveness.
○​ Open to domestic and international manufacturers.
●​ Example: PLI for speciality steel attracted ₹15,519 crore, adding 24,780 thousand
tonnes capacity.

UDAN (Ude Desh ka Aam Naagrik) Regional Connectivity Scheme

●​ Objective: Enhance regional connectivity, make air travel affordable for common people.
●​ Key Features:
○​ Subsidized airfares for regional routes linking smaller cities to urban centers.
○​ Targets underserved/unserved airports, especially in remote/rural areas.
○​ Develops smaller airports with improved infrastructure for accessibility.
○​ Connected >100 airports, boosting regional economic integration and tourism.

PM Gati Shakti National Master Plan

Introduction

●​ Launch: October 13, 2021, by Prime Minister Narendra Modi.


●​ Objective: Integrated infrastructure development for seamless multi-modal connectivity
to boost economic growth and global competitiveness by union govt, state govt and pvt
players. (39:39:22)
●​ Scope: ₹100 lakh crore initiative for holistic infrastructure development over five years.
●​ Developed by: Bhaskaracharya National Institute for Space Applications and
Geoinformatics (BISAG-N) using a GIS-based digital platform.

Key Features

●​ Digital Platform: Integrates 16 ministries (e.g., Railways, Roadways, Shipping, Aviation)


for coordinated planning and execution.
●​ Multi-Modal Connectivity: Links roads, railways, ports, airports, waterways, and mass
transport.
●​ GIS-Based Tools: Uses ISRO satellite imagery and over 200 data layers for spatial
planning and real-time monitoring.
●​ Incorporated Schemes: Bharatmala, Sagarmala, UDAN, inland waterways, dry/land
ports.
●​ District-Level Expansion: District Master Plan (DMP) portals for 27 aspirational
districts, targeting 750 districts by March 2025.

Objectives

●​ Enhance ease of living and ease of doing business.


●​ Reduce logistics costs (from 13-14% to -7.5% of GDP).

Achievements

●​ Infrastructure Projects: Assessed 293 projects worth ₹13.59 lakh crore across 57
ministries.
●​ Road Transport: Ministry of Road Transport and Highways planned 8,891 km of roads.
●​ Railways: Planned 27,000 km of railway lines; 449 Final Location Surveys (FLS) in
FY22 vs. 57 in FY21.
●​ Petroleum and Gas: Electronic Detail Route Survey (DRS) reduced report generation
time from 6-9 months to 1 day.
●​ Renewable Energy: 13 GW Green Energy Corridor from Leh to Kaithal optimized for
interstate transmission.
●​ Social Sector:
○​ Health: Mapped internet shadow areas for new healthcare facilities.
○​ Education: Uttar Pradesh used State Master Plan for school site selection; PM
Shri Schools linked to local industries.
○​ Skill Development: Training institutes planned near economic clusters.
●​ Rural Development: Integrated PMGSY and PMAY-G for better asset planning.
●​ Disaster Management: Goa used the platform for flood-prone area planning along the
Amona River.
●​ Global Outreach: Showcased to 30 countries at UNESCAP and Asia Pacific Business
Forum.

Key Facts
●​ Launch Year: 2021.
●​ Focus Areas: Transport, logistics, energy, IT, urban planning.
●​ Key Targets: Reduce logistics costs, improve supply chain efficiency, boost economic
growth.
●​ Institutional Mechanism: Network Planning Group (NPG) for synchronization; Unified
Logistics Interface Platform (ULIP) for transparency.

Industrial Corridors

●​ Overview: Government of India is developing 11 Industrial Corridor Projects under the


National Industrial Corridor Programme in phases.
●​ Key Corridors:
○​ Delhi-Mumbai Industrial Corridor (DMIC):
■​ Reduces logistic costs, creates smart cities from Delhi to Mumbai.
■​ Supported by Japan.
○​ Chennai-Bengaluru Industrial Corridor (CBIC):
■​ Connects Tamil Nadu, Andhra Pradesh, Karnataka for industrial growth.
■​ Supported by Japan.
○​ Bengaluru-Mumbai Industrial Corridor (BMIC):
■​ Spans Maharashtra and Karnataka.
■​ Supported by the UK.
○​ Amritsar-Kolkata Industrial Corridor (AKIC):
■​ Links Punjab, Haryana, Uttarakhand, Uttar Pradesh, Bihar, Jharkhand,
West Bengal.
○​ East Coast Economic Corridor (ECEC):
■​ Connects West Bengal, Odisha, Andhra Pradesh, Tamil Nadu.
■​ Supported by the Asian Development Bank.

SMILE - Strengthening Multimodal and Integrated Logistics Ecosystem

Type & Funding

●​ Programmatic policy-based loan from Asian Development Bank (ADB).


●​ $350 million for second subprogram.

Objectives

●​ Strengthen inter-ministerial coordination for multimodal logistics projects (MMLPs).


●​ Promote private sector participation.
●​ Support India’s National Logistics Policy (NLP) goals.

Key Features

●​ Promotes smart & automated systems to enhance external trade logistics efficiency.
●​ Focus on policy reforms and institutional frameworks rather than only building
infrastructure.
●​ Supports both brownfield and greenfield projects - not exclusive to greenfield.
●​ Complements PM GatiShakti for integrated infrastructure planning.

Expected Outcomes

●​ Reduce India’s logistics cost from 13-14% of GDP to global benchmark 8-9%.
●​ Improve ease of doing business & trade competitiveness.

Prelims Pointers:

●​ Loan from ADB, not World Bank or AIIB.


●​ Covers brownfield + greenfield, not greenfield only.
●​ Focuses on reforms + efficiency + automation, not just infrastructure construction.

India’s Port Sector

Major Ports & Governance

●​ Governed by Major Port Authorities Act, 2021.


●​ Operate under Landlord Port Model:
○​ Port Authority - owns land & acts as regulator.
○​ Private Players - handle operations (cargo handling, terminal management).
●​ Upcoming example: Vadhvan Port (Maharashtra) - will be India’s 13th major port and a
deep-water container port.

Sagarmala Programme

●​ Launched: 2015.
●​ Objective:
○​ Port-led industrialization.
○​ Reduce logistics costs.
○​ Improve export competitiveness.
●​ Focus Areas:
○​ Port modernization.
○​ Port connectivity enhancement.
○​ Coastal shipping & inland waterways.
○​ Promotion of coastal economic zones (CEZs).
●​ Implementation:
○​ Sagarmala Development Company (SDC): Provides equity support for projects.
○​ State governments establish state-level committees for implementation

Corporatized Port
●​ Kamarajar Port (Ennore Port), Tamil Nadu:
○​ Only major corporatized port in India.
○​ Registered under Companies Act.
○​ Different from other major ports governed directly by port authorities.

Key Data

●​ Share in India’s trade:


○​ -95% by volume.
○​ -70% by value.

Prelims Pointers:

●​ Landlord model - asset ownership with port authority, operations with private operators.
●​ Sagarmala is not just port modernization - it integrates industrialization & logistics cost
reduction.
●​ Only one corporatized major port - Kamarajar.

Cruise Bharat Mission (CBM)

Launch Year: 2024​


Aim:

●​ Double cruise passenger traffic by 2029.


●​ Increase cruise calls from 254 (2024) - 500 (by 2030).
●​ Position India as a leading global cruise tourism hub.

Key Segments (3)

1.​ Ocean & Harbour Cruises - deep-sea, coastal cruises, yacht tourism.
2.​ River & Inland Cruises - rivers, canals, backwaters, lakes.
3.​ Island Cruises - inter-island travel, lighthouse tours.

Implementation

●​ Lead Ministry: Ministry of Ports, Shipping and Waterways (MoPSW).


●​ Works in collaboration with states, port authorities, and private players.
●​ Aligned with Sagarmala Programme for port-led development.

Expected Outcomes

●​ Boost cruise infrastructure & tourism ecosystem.


●​ Strengthen coastal and inland waterways tourism.
●​ Support growth of India’s cruise tourism market (CAGR -14.2% by 2030).

Prelims Pointers:
●​ CBM is MoPSW-led, not the Ministry of Tourism.
●​ Covers both coastal & inland cruise tourism.
●​ Focus on passenger & cruise call growth by set timelines.

Bharatmala Pariyojana

●​ Objective: Improve India’s road infrastructure under an umbrella program.


●​ Key Aspects:
○​ Develops economic corridors for national and international trade.
○​ Focuses on Greenfield (new roads) and Brownfield (upgrades to existing roads)
projects.
○​ Builds border and coastal roads for economic and defense purposes.
●​ Impact: Addresses road infrastructure challenges, reduces logistics costs.

Dedicated Freight Corridors (DFCs)

●​ Objective: Specialized railway tracks for freight to improve speed and capacity.
●​ Key Corridors:
○​ Eastern Dedicated Freight Corridor (EDFC):
■​ Connects Punjab, Haryana, Uttar Pradesh, Bihar, Jharkhand, West
Bengal.
■​ Funded by the World Bank.
○​ Western Dedicated Freight Corridor (WDFC):
■​ Spans Haryana, Rajasthan, Gujarat, Maharashtra, Uttar Pradesh.
■​ Funded by Japan International Cooperation Agency (JICA).
●​ Impact: Streamlines freight movement, enhances logistics efficiency.

National Infrastructure Pipeline (NIP)

●​ Objective: Implement ₹102 lakh crore worth of infrastructure projects by 2024-25.


●​ Key Features:
○​ Covers economic and social infrastructure.
○​ Funding ratio: Centre (39%), States (39%), Private Sector (22%).
●​ Implementation:
○​ Guided by the Atanu Chakraborty Committee report for effective execution.

Critical Minerals and District Mineral Foundation (DMF)

●​ Import Dependence: India relies on imports for 7/12 critical minerals (e.g., lithium,
cobalt, rare earths), except light rare earths and beryllium.
●​ Applications: Electric vehicles, aerospace, defense, smartphones, medical imaging,
nuclear energy.
●​ Global Supply: China leads in 6/12 critical minerals for India by 2030.
●​ DMF:
○​ Purpose: Welfare of mining-affected people/areas.
○​ Contributions:
■​ 10% royalty for leases after Jan 12, 2015.
■​ 30% royalty for leases before Jan 12, 2015.
○​ Fund Usage: 60% for high-priority areas (education, health), 40% for
infrastructure.
○​ Gram Sabha Approval: Required in Schedule V/VI areas.
○​ Note: States cannot issue mineral exploration licenses.

National Monetisation Pipeline (NMP)

Announcement & Period

●​ Announced in Union Budget 2021-22.


●​ Covers FY 2022-25 (4 years).

Objective

●​ Monetise brownfield infrastructure assets (already operational assets) to generate


resources for new infrastructure creation.
●​ Monetisation without transfer of ownership - only operating rights leased/licensed for
a fixed period. Assets revert to government after concession period.

Coverage

●​ 13 sectors targeted.
●​ Top contributors:
○​ Roads - 27%
○​ Railways - 25%
●​ Total indicative pipeline: ₹6 lakh crore.

Mechanism

●​ Implemented via concession agreements, InvITs (Infrastructure Investment Trusts),


PPP models.
●​ Risk-sharing between government & private sector.

National Land Monetization Corporation (NLMC)

●​ Special Purpose Vehicle (SPV).


●​ Task: Monetise surplus land of Central Public Sector Enterprises (CPSEs) and other
government bodies.

Challenges

●​ Delays in land record digitization.


●​ Regulatory & legal hurdles.

Key Facts

●​ Only brownfield assets (not greenfield).


●​ No asset ownership transfer.
●​ NLMC - land monetisation of CPSEs.
●​ Largest share - Roads & Railways.

National Industrial Corridor Development Programme (NICDP)

Objective

●​ Develop futuristic smart industrial cities with:


○​ ‘Plug-n-Play’ infrastructure (ready-to-use facilities).
○​ ‘Walk-to-Work’ concept (integrated residential & industrial zones).
●​ Enhance global manufacturing competitiveness & attract investment.

First Corridor

●​ Delhi-Mumbai Industrial Corridor (DMIC) - approved 2007.


●​ Spans 6 states, major boost to manufacturing & connectivity.

Implementation Structure

●​ Lead Bodies:
○​ National Industrial Corridor Development and Implementation Trust
(NICDIT) - policy oversight & coordination.
○​ National Industrial Corridor Development Corporation Ltd. (NICDC) - project
execution.
●​ Under DPIIT, Ministry of Commerce & Industry.
●​ Apex Monitoring Authority chaired by the Finance Minister.

Recent Developments

●​ Union Budget 2024-25: Proposal for 12 new industrial nodes/cities across 10 states.

Key Facts

●​ Plug-n-Play = Ready-to-use industrial facilities.


●​ Walk-to-Work = Live-work integrated township design.
●​ First corridor - DMIC (2007).
●​ NICDP not implemented solely by NICDC - NICDIT also involved.
●​ Under DPIIT (not Ministry of Heavy Industries).

Railway Safety Initiatives


Rashtriya Rail Sanraksha Kosh (RRSK)

●​ Launched: 2017-18.
●​ Fund Size: ₹1 lakh crore over 5 years.
●​ Objective: Upgrade critical railway safety infrastructure.
●​ Key Focus Areas:
○​ Track renewals.
○​ Signaling system upgrades.
○​ Level crossing elimination.
○​ Safety-related rolling stock improvements.

KAVACH System

●​ Type: Indigenous Automatic Train Protection (ATP) system.


●​ Functions:
○​ Automatically applies brakes to prevent collisions.
○​ Works effectively in foggy weather and high-speed operations.
○​ Ensures adherence to speed limits.
●​ Status: Progressive deployment on high-density routes.

Linke Hofmann Busch (LHB) Coaches

●​ Origin: German design, now manufactured in India.


●​ Safety Features (vs ICF coaches):
○​ Anti-telescopic design - prevents coaches from piling over each other in
accidents.
○​ Better crashworthiness.
○​ Fire-retardant materials.
●​ Conclusion: Safer than ICF coaches, contrary to the incorrect claim in statement 3.

Key Trends & Concerns

●​ Railway accidents declined from 473 (2000-01) to 48 (2022-23).


●​ Derailments remain the most common cause.
●​ Priority: Faster rollout of KAVACH across the network.

Prelims Pointers:

●​ RRSK - ₹1 lakh crore, 5 years, safety infra upgrade.


●​ KAVACH - ATP system, indigenous, prevents collisions.
●​ LHB is safer than ICF - anti-telescopic + fire safety.

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