Defence production policy unveiled

The policy envisages creation of an eco-system, which is conducive for private defence industry in the country particularly for the small and marginal enterprises. The government will give preference to indigenous design development and manufacture of defence equipment.

The policy will design and integrate platform systems within the country in line with the sector's long-term integrate perspective plan. All viable approaches such as formation of consortium, JVs and PPPs will be suitably explored.

The 'make' category of the defence procurement procedure (DPP) 2011 will be simplified in such a manner that it enables both public and private industry to meet defence requirement as fast as possible.

Further, the government plans to set up a separate fund to provide for necessary resources to public and private sectors including the small and medium enterprises to support innovation and research and development activities to enhance the country's cutting edge technologies in defence.

Haryana Industrial Policy 2011

Bhupinder Singh Hooda, Chief Minister of Haryana on 30 December 2010 approved "Industrial & Investment Policy-2011" of the state.

The highlights of the policy include the following:

Coastal Regulation Zone notification 2011

The Union MoEF on 7 January 2011 notified the Coastal Regulation Zone notification, 2011. The new notification replaces CRZ 1991.

In the latest notification the 'no development zone' is being reduced from 200 mtrs from the high-tide line to 100 mtrs only to meet the increased demands of housing of fishing and other traditional coastal communities.

The notification allows slum projects to get a floor space index (FSI) of 2.5 to four. Earlier, the FSI was restricted between 1.25 and 1.6. The state government will have to partner with builders in redeveloping the slums and hold a minimum stake of 51 per cent.

The builders redeveloping the structures under CRZ II will get an FSI of between 2.5 and three, instead of an FSI of two that was allowed by CRZ 1991.

Under the new norms, projects above two lakh sq ft (built-up area) will need the Union MoEF's sanction. But before that, the state Coastal Zone Management Authority (CZMA) will have to evaluate the projects and recommend them to the Union Government.

Under the new coastal regulations, open spaces, parks, gardens and playgrounds indicated in development plans within CRZ II shall be categorised 'no-development zones' . No residential or commercial use of such open spaces will be allowed. However, an FSI of up to 15 per cent will be permitted for the construction of civic amenities, stadiums and gymnasiums meant for recreational or sports-related activities on such plots.

The new CRZ has special provision for Goa, Kerala, Greater Mumbai and critically vulnerable coastal areas such as Karwar and Kundapur in Karnataka, Vembanad in Kerala, Coringa, East Godavari and Krishna Delta in Andhra Pradesh and Gulf of Mannar in Tamil Nadu among others. Besides, a separate draft island protection zone notification has been issued for protection of islands of Andaman and Nicobar and Lakshadweep.

The ministry is likely to issue directives to the Coastal Zone Management Authority in the various states and Union Territories to identify all CRZ violations within the next four months and initiate necessary action within four months thereafter.

Also, a River Regulation Zone is likely to be set up to ensure that river beds are not destroyed by construction activity.

CCI okays extension of coal mines conservation schemes

The Cabinet Committee on Infrastructure (CCI) on 13 January 2011, approved the extension of schemes aimed at coal mines' conservation and developing transportation of infrastructure in coalfield areas for an undisclosed period.

Around `1,000 crore have been earmarked in the current Plan period ending 2012 towards the schemes. This includes an outlay of `690.75 crore for conservation and safety in coal mines and `395.58 crore for development of transportation.

Maritime Agenda 2020

The Union Government on 12 January 2011 unveiled Maritime Agenda 2020.

The new plan replaces the current National Maritime Development Project (NMDP). The perspective agenda entails an investment of `5 lakh crore by 2020 to take the ports capacity to 3,200 million tonne. Out of the `5 lakh crore investments proposed in the sector, `3 lakh crore will be in the port sector, while the remaining `2 lakh crore will be pumped in the Shipping sector.

The present `1.39 lakh crore NMDP plans, which were to expire on 31 March 2012, will be replaced by the new agenda. Of the 276 projects identified under the NMDP through PPP mode, the government plans to award 21 projects worth `13,952 crore projects in the current fiscal. Six such projects to augment the capacity of 13 major ports have already been awarded.

The government would set up two more major ports in the country - one each on the East and West coast, in addition to the existing 13 Major ports. Besides, four major ports - two on the east coast - Visakhapatnam and Chennai and two on the West coast - Jawaharlal Nehru Port Trust and Cochin port would be converted into major hubs.

New telecom policy soon

The Union Government is mulling to launch a new telecom policy framework - National Telecom Policy 2011 - soon.

The new policy aims at introducing the slew of measures that the government will introduce to bring in the much needed transparency into the telecom sector. In this regard, the government is likely to hold discussions with the key stakeholders to evolve a clear and transparent regime covering licensing, spectrum allocation, telecom tariffs, pricing, linkage with rollout performance, flexibility within licences, spectrum sharing, spectrum trading, mobile virtual network operators, unlicensed bands and mergers and acquisitions in a technologyagnostic environment.

It has been 11 years since the National Telecom Policy was introduced in 1999 and many changes have taken place thereafter.

SEZ policy of Chhattisgarh unveiled

The Chhattisgarh Government has unveiled the SEZ Policy 2010 in a bid to widen its investment horizon and attract more investors in different sectors. The state cleared the policy on 6 January 2011 proposed by the industry department.

Under the policy, exemption will be given to the developers, industrial units and other establishments within the zone from local taxes and levies. However, they would have to pay the mandi tax and land diversion fee.

The state government approved proposals to develop two SEZs in Raigarh. The two SEZs will house units related to Gems and Jewellery, and information technology. The state intends to develop solar energy parts SEZ as well in Rajnandgaon district.

The department of industry and commerce had been made the nodal department to facilitate the development of SEZs under the new policy. A single window system will be in place to clear all official formalities from a single desk. A high-level committee had also been formed to monitor and supervise the development of SEZs.

Government to formulate bidding norms for coal blocks

The Union Government is likely to finalise the norms for the proposed competitive bidding of coal blocks soon. Currently, the Union Ministry of Coal is giving final touches to the regulations. The bidding process for new coal blocks, currently being identified, may begin from April 2011. In August 2010, the Mines and Minerals Development and Regulation Amendment Bill-2010 was passed which paved the way for introduction of auction through competitive bidding for allocation of coal blocks for private companies for captive use. Hitherto, the coal block allocation was done by a Union Government screening panel that also included representatives from coal bearing states.

The MoC is likely to request the proposed Group of Ministers (GoM), being set up to resolve the environment related issues affecting the coal sector, to come up with an early solution.

The government has agreed to set up a GoM to frame guidelines for mining in restricted forest areas or "no-go" areas.