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GSIA BI-MONTHLY NEWS BULLETIN

GOA STATE INDUSTRIES ASSOCIATION(An Apex Association for Micro, Small & Medium Enterprises in Goa)

ISO 9001:2008 Certified

THOffice: 4 FLOOR, GOA-IDC HOUSE, PATTO PLAZA, PANAJI, GOA 403 001.

Ph.: +91-832-2438395 Fax: +91-832-2438210 E-mail : [email protected] Website: www.gsia.in

www.GSIA.in

Presidents Message 4

Directory of Meetings for the months of January-February 2012 5

Important Correspondence 5

Your Business Compliance Calendar 6

Important Notifications and Circulars 7

GSIA & AEDI Sign MoU For Entrepreneurship Development 8

Events oragnised by GSIA 9

Upcoming Projects Organized By Asian Productivity Council (APO) 10

High Court of Bombay at Goa upholds the Rate Contract under PPS 11

100% FDI in Single Brand Retail 13

Industrialist of the year "Mr. Atul Pai Kane" 14

Role of SME Sector in the Emerging Indian Economy 15

Form "F" Procedure under CST Act 1956-Stock Transfer 17

SME Innovation: Is it A Hard Nut To Crack 18

NSIC -- Nurturing the MSME Sector 19

Wind Energy - Renewable Power in the 21st Century 21

News Gallery 24

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GSIA Co-ordination Committee for 2010 - 2013

GSIA Executive Committee Members for 2010-2013

STRIESU D AN S I SE OT CA IT A

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Goa State Industries Association GSIA News Bulletin January - February 2012

www.GSIA.in

Hon. TreasurerMr. Rajiv Negvi

Hon. SecretaryMr. Sandeep Sardesai

MembersMr. Rajkumar Kamat Mr. Sanat Raiturkar Mr. Sameer KenyMr. Abhijeet Naik Mr. Naresh Pai Mr. Kiran ShirsatMr. Shiv Kumar Patil Mr. Suharsh Usgaonkar Mr. Rajesh Khaunte (Co-opted)Mr. Parag Joshi (Co-opted)

Imm. Past President Mr. Atul P. Naik

Vice President Dr. Sangam Kurade

President Mr. Shekhar Sardessai

GSIA Advisory Committee Members for 2010-2013

President Mr. Shekhar Sardessai

Imm. Past PresidentMr. Atul P. Naik

Past PresidentsMr. Atul Pai Kane Mr. Sudin Naik Mr. Keshav Kamat

1. Entrepreneurship Development & Human Capital 6. Bio Technology Sector & Bio Incubator Committee Committee Chairman: Dr. Sangam KuradeChairman : Mr. Atul Pai Kane Members : Mr. Atul P. NaikMembers : Mr. Vivek Kamat, Director, DTE Mr. Shekhar Sardessai

Mr. Prabodh Kamat, SM, Dempo Group7. Communication & Publicity Committee

2. Micro Industries Development Committee Chairman: Mr. Shekhar SardessaiChairman : Mr. Rajkumar Kamat Members: Mr. Sandeep SardesaiMembers : Mr. Sameer Keny Mr. Sanat Pai Raiturkar Mr. Suharsh Usgaonkar Dr. Sangam Kurade

Mr. Atul P. Naik3. Industrial Estate Coordination CommitteeChairman : Mr. Sandeep Sardesai 8. Policy & Strategy CommitteeMembers: Mr. Kiran Shirsat Chairman: Mr. Parag Joshi

Mr. Abhijeet Naik Members: Mr. Sudin Naik Mr. Sameer Keny Mr. Atul Pai Kane Mr. Sanat Pai Raiturkar Mr. Keshav Kamat Mr. Rajiv Nevgi Mr. Atul P. Naik

4. Taxation/Legal Committee 9. ITI Development CommitteeChairman: Mr. Atul P. Naik Chairman: Mr. Sudesh RaneMembers: Mr. Keshav Kamat Members: Dr. Sangam Kurade Mr. Atul Pai Kane Mr. Rajkumar Kamat Adv. Y.S. Pai Bir Mr. Shivkumar Patil

5. Environmental Protection Committee 10. Training & Academic Programmes CommitteeChairman: Mr. Keshav Kamat Chairman : Mr. Rajkumar KamtMembers: Mr. Naresh Pai Mr. Lalit Saraswat Mr. Suharsh Usgaonkar Mr. Vikram Kamat

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GSIA's Representation on various Committees of the Government/ Government undertakings etc. for the tenure 2010-2013

The views expressed in this Bulletin are not necessarily those of the Association. All information is provided with the usual waiver of responsibility as neither the GSIA nor its members, employees or service providers can accept liability for loss and damage resulting from omissions and inaccuracy relating to articles, information, data, telephone numbers, addresses, wording, spacing or positioning of any listings, representations and other material regardless of the cause.

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COMMITTEE REPRESENTED BY

1 Goa Industrial Development Corporation (Goa IDC) Board. President

2 State Level Co-ordination Committee for State Investment Subsidy. President

3 Power Advisory Committee. President

4 Micro, Small & Medium Enterprises Facilitation Council. President

5 State Labour Advisory Board. President

6 Integrated Education Advisory Counci l, Goa University. President

7 Governing Board for Entrepreneurship and Business Development Center, Goa University. President

8 State Minimum Wages Advisory Board. President

9 State Planning Board/State Level Planning Committee. President

10 Goa State Pollution Control Board. President

11 Constitution of Skill Development Mission President

12 Goa State Employment Subsidy Scheme for Bio Technology Units, 2009 President

13 Interest Subsidy Scheme for Bio Technolo gy Units, 2009 President

14 Goa State Investment Subsidy Scheme for Bio Technology Units, 2009 President

15 Constitution of Sub-Committee to Skill Development Mission Mr. Sandeep Sardesai

16 Advisory Committee of Bio Incubator Facility (ACBIF) President /Dr. Sangam Kurade

17 Committee for Assessment of Pollution from specific Sources Mr. Keshav Kamat

18 State Level Steering Committee for Center of Excellence (COE) Scheme under World Bank. Dr. Sangam Kurade

19 Vocational Trai ning Provider (VTP) Evaluation Committee(VEC) for Skill Development Initiative Scheme.

Mr. Sandeep Sardesai

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State Board of Examination constituted by State Council for Vocational Training (SDCT). Mr. Sandeep Sardesai

21

Human Resource Development Foundation Society.

Mr. Sudesh Rane

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State Level Steering Committee for IMC's of ITI's.

Dr. Sangam Kurade

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Federation of Indian Micro and Small & Medium Enterprises (FISME). Mr. Atul P. Naik

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Goa Handicrafts Rural Small Scale Industries Development Corporation (GHRSSIDC). Mr. Atul P. Naik

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Rate Contract Committee under Preferential Purchase Scheme. Mr. Atul P. Naik

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MSME Development Institute, Margao.

Mr. Sandeep Sardesai

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Commercial Tax Advisory Committe e.

Mr. Atul P. Naik

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Public Grievance Committee for Customs & Central Excise.

Mr. Atul P. Naik

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Regional Advisory Committee (RAC) for Customs & Central Excise. Mr. Atul P. Naik

30

State Level of Inter-Institutional Committee (SLIIC).

President

31

State Level Bankers Committee (SLBC)

President

32

Goa Labour Welfare Board.

Mr. Naresh Pai

33

Regional Board / Local (ESIC) Employees State Insurance Corporation. Mr. Sameer Keny

34

State Level Committee on Standardization & Quality System.

Mr. Sameer Keny

35

Tool Room & Training Center.

Mr. Sanjeev Trivedi

36

Federation of Association of Small Industries of India (FASII).

Federation of Indian Chambers of Commerce & Industry(FICCI).Mr. Rajiv Nevgi

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Controller of Legal Metrology (Weights & Measures).

Mr. Abhijit Naik

38 Regional Committee of Employees Provident Fund for the State of Goa (EPF). Mr. Sandeep Sardesai

39 College Development Council, Goa University.

President

40 Task Force Committee on GST Mr. Atul P. Naik

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At the time of writing this message, the new government under the

stewardship of our dynamic leader Shri. Mahohar Parrikar has taken the oath

of office. By all benchmarks, this has been a historic election in which Goa

has voted for development and social justice, which has eluded us for the

past several years with scams and corruption taking the centre stage.

For the industry, I believe there could have been no better situation. Who

other than Shri. Parrikar, an entrepreneur himself, could better steward the

cause of our Goan entrepreneurs.

It's an exciting time for all of us but beneath this excitement lies an anxiety.

The industrial development of Goa has been neglected for far too long and

for it to revive we not only need a progressive leader, but also a booster dose

of stimulus. How quickly can this Government deliver that stimulus, is a

question that is on our minds.

GSIA has taken immediate steps in terms of conveying to the new

administration its desire to see a quantum change. In our pre-budget

memorandum to our Chief Minister, we have presented a wish list both with

regards to the tax related stimulus, as well as policy revival initiatives.

Among other things, we have strongly advocated extension of VAT related

NPV scheme for the existing industries and abolition of entry tax for the

SMEs. We have further advocated setting up of Investment Promotion Board, a Venture Capital Fund, Water Harvesting and

Backup Power in Industrial Estates, extension of Industrial Promotion Schemes to new as well as to all existing units, etc.

Over the last few years, the entrepreneur has been left sulking and this has vitiated the entire industrial and entrepreneurship

climate in our state. Therefore, GSIA has also proposed that it would like to organize a mega industrial Trade Fair in

collaboration with Directorate of Industries with the intention of reinvigorating this climate.

The Union Budget has been a damp squib for the industry. However, we are confident that Shri. Parrikar who gave us a

patient listening in our first interaction with him, will agree to incorporate most of our proposals in his budget and which will

allow the industry to get a head start.

We as members of GSIA need to do our bit and I invite all of you to give me your ideas which could benefit the state of Goa in

general and our industry in particular. This will allow GSIA to continually engage with the Government for policy

initiatives based on your ideas.

Goans have given a mandate for a stable government headed by a competent leader. Let us use this opportunity to the best of

our ability and work towards building an industrially vibrant Goa. Let us not sulk on the lost opportunities but work on the

future with vigor and optimism.

,

President'sMessage

With warm regards,

Shekhar Sardessai.

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DIRECTORY OF MEETINGS FOR THE MONTHS OF

JANUARY - FEBRUARY 2012

Date Meeting Attended by

04th

January 2012 15th

Meeting of Micro& Small Facilitation Council

Mr. J B Pinto

Executive Secretary , GSIA

27th

January 2012

326th

Board Meeting of GIDC Mr. Shekhar Sardessai

President , GSIA

22nd February 2012 3rd Meeting of Screening and Review Committee

Mr. Shekhar Sardessai

President , GSIA

IMPORTANT CORRESPONDENCE

Letter Date Addressed to Subject

11th January 2012 The Managing Director,Goa Industrial Development CorporationEDC Complex, Patto PlazaPanaji Goa

Execution of Lease Deed of plot at Sancoale Industrial Estate

19th January 2012 The Director MSME Development InstituteMargao - Goa

Conducting of various entrepreneurship oriented programmes

7th February 2012IPR One day seminar (2 Nos)

27th February 2012 The Managing Director,GHRSSIDC,Nevgi Nagar,Panaji-Goa

Preferential Purchase SchemeProcurement of RCC Pipes through Rate Contract

27th February 2012 The Director,Directorate of Industries, Trade and CommerceUdyog BahvanPanaji – Goa

Generation of Entrepreneurs for Setting ofBiotechnology Enterprises in the State

The Director,MSME – DevelopmentInstitute, Margao Goa

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by CA Ashish Verlekar, GSIAYOUR BUSINESS COMPLIANCE CALENDAR

a. 05th Service Tax Payment by Companies

b. 07th TDS/TCS Payment

c. 15th PF Payment

d. 21st ESIC Payment

e. 20th VAT payment - Tax > 100000

g. 29th VAT payment - Tax < 100000

February 2012

a 05th Service Tax Payment by Companies for Februaryb 07th TDS/TCS Payment

c. 15thi) PF Payment

ii) Advance Income Tax

Final Installment all Assesses

d 20th VAT payment - Tax > 100000e 21st ESIC Paymentf. 30th VAT payment - Tax < 100000g 31st

i) Service Tax Payments by Individuals/Proprietors/Firms/Companies for March

March 2012

a 07th

TDS/TCS Payment

B 15th

PF Payment

C 20th

VAT payment - Tax > 100000

D 21st

ESIC Payment

E 25th

Service Tax Return for October to March

f. 30th

TDS Payment for amount credited on 31st

March 2012 G 30

th

VAT payment - Tax < 100000 H 30

thVAT quarterly returns for January to March

April 2012

a. 05th Service Tax Payment by Companies

b. 07th TDS/TCS Payment

c. 15th PF Payment

d. 15th TDS/TCS quarterly statement

e. 20th VAT payment - Tax > 100000

f. 21st

ESIC Payment

g. 30th VAT payment - Tax < 100000

May 2012

a 05th

b 07th

c. 15th

d 20th

e 21st

f. 30th

June 2012Service Tax Payment by Companies

TDS/TCS Payment

i) PF Payment ii) Advance Income Tax for Companies iii) TDS/TCS Quarterly Statement

VAT payment - Tax > 100000

ESIC PaymentVAT payment - Tax < 100000

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Please Note that as per above Public Notice it is mandatory to 1) 50% LATE FEES TO BE CHARGED update your existing IEC as stated in the notification:-

FOR NOT OBTAINING CONSENT TO 1) Complete PAN details, telephone Numbers, email IDs

OPERATE / ESTABLISH and Mobile Number (of the Signatory of the ANF2A)

have been made mandatory fields; while alternate Email Due to persistent follow up from GSIA, the ID, Website Address are optional. This is required to categorization of industries & restructuring of fees for facilitate updating the IEC records. No payment of consent to Operate / Establish have been notified by the application fee is required till 31.3.2012 for such Department Of Science, Technology & Environment updating of IEC recordsvide Notification No. 31/9/2010/ STE-DIR/614 & No.

31/9/2010/ STE-DIR/615 published in Official Gazette, 2) Email ID of the Banker would assist RA to cross check Govt. of Goa, Series I No. 19 dated 11/08/2011. the issuance of the Bank Certificate from the Banker, if

in doubt.Goa State Pollution Control Board (GSPCB) have now

advised that consequent to the above notifications, units 3) Several insistences have come to the notice of DGFT which have not obtained consent of the Board are wherein several IECs get allocated when the applicant required to pay the fees as in force and 50% late fees from does not indicate the full name of the individuals. Hence the date of operation of the unit till date. it is not being made mandatory that full name (in the

order First Name, Middle Name and Last Name) should All the industrial units are advised to obtain consent to be filled up, without using any individual abbreviations Operate / Establish under Water & Air as required by wherever in ANFA2A the name of an individual is GSPCB if so far not done as the fees have now been required to be filled up IEC Holders are requested to get considerably reduced as per the above notifications. their IEC modified accordingly.

2) UPDATION OF IMPORT EXPORT

CODE NUMBER

Updation of IEC as per Public Notice No.84/209-th2014(RE-2010) dated 11 November 2011.

IMPORTANT NOTIFICATIONS & CIRCULARS


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In Goa, every year Engineering Colleges are sending out around 790 fresh engineering graduates and another 855 Diploma holders from various Polytechnic Institutes. This is besides the large number of students coming out of various ITI Institutes in Goa. It is also found that most of our young graduates look out for jobs and many of them go out of Goa for employment. It was felt that atleast a small percentage of these graduates should start their own enterprise and help in the industrial development of the State. With this purpose in mind GSIA and AEDI have signed an MOU on 3/2/2012 to tap entrepreneurship talent at the grass root level and help in creating more entrepreneurs in Goa.

Goa State Industries Association being the apex body representing Micro, Small and Medium Enterprises (MSMEs) in Goa has been deliberating for some time the idea of having Entrepreneurship Development Cells in some of our Engineering Colleges and Government Polytechnic Institutes. Enabling entrepreneurship is the need of the hour because of the declining and sluggish industrial growth in Goa

Angel Entrepreneurship Development Institute (AEDI) part of Agnel Technical Education Complex, Verna was set up in July 2000 with the aim of promoting the spirit of Entrepreneurship through out the state of Goa. It has a well On behalf of GSIA the members present were Mr. Shekhar established norm that entrepreneur is not born but made. Sardessai (President GSIA), Dr. Sangam Kurade (Vice AEDI has grown over the years into a service provider for President GSIA), Mr. Sandeep Sardesai (Hon Secretary) the entire Sate for Entrepreneurship related activities. They Mr. Atul P Naik (Imm Past President GSIA) and other are conducting programmes of Department of Science and Executive/Advisory Committee Members. Technology, Govt of India, Entrepreneurship Development Programme of Directorate of Industries, trade and On behalf of Agnel Entrepreneurship Development Commerce, Govt of Goa and actively involved with many Institute Fr. Alfredo Almeida (Asst. Superior, Agnel other agencies in Goa connected with Entrepreneurship Ashram, Verna), Fr. Saturnino Almedia (Regional

Superior, Agnel Region of the Society of Pilar) & Mr. J M From the statistics that are available, you will find that there Noronha (General Manager – Projects of AEDI) were are around 7438 industries registered with Directorate of present.Industries, Trade and Commerce (DITC) as on March 2011, out of which, only 345 industries are registered during the last 5 years. This is in spite of the fact that Director of Industries and Government of Goa is doing its best for the industrial development of the State. Realizing the tremendous contribution of the MSMEs in the industrial production, employment generation and exports, Government of India has also introduced several policies to promote growth of MSMEs. However, this has not created positive results in our State.

GSIA & AEDI SIGN MOU

FOR ENTREPRENEURSHIP DEVELOPMENT

From left to right Fr. Alfredo Almeida, Asst. Superior, Agnel Ashram,Fr. Saturnino Almeida, Regional Superior, Agnel Charities,

Mr. Shekhar Sardessai (President GSIA) andDr. Sangam Kurade (Vice – President GSIA)

(Mr. Shekhar Sardessai, President GSIA addressing the press)

MSME units in Goa to know more about export markets. 1) SEMINAR ON "HOW TO EXPORT" He thanked EEPC India for organizing this seminar in Goa in association with GSIAA N D " R OA D S H O W O N I N D I A

ENGINEERING SOURCING SHOW"

2) ONE DAY SEMINAR ON I P R

(INTELLECTUAL PROPERTY RIGHTS)Goa State Industries Association (GSIA) jointly with

GSIA jointly with MSME-DI Margao organized a full day EEPC India (Formerly Engineering Export Promotion

seminar on “INTELLECTUAL PROPERTY RIGHTS” for Council) organised a Seminar on 27th January 2012 in Goa

Micro, Small & Medium Industries on 25th February 2012 on How to Export and Roadshow on India Engineering

at Kesarval Garden Retreat, Verna, Goa. nd thSourcing Show 2012 to be held in Mumbai from 22 to 24 March 2012. The workshop aimed at creating awareness about different

laws on IPR. The faculty for the seminar was Adv. E. O. Mr. Pankaj Chadha, Regional Chairman, EEPC India (WR)

Mendes of Oasis Counsel and Advisory Pvt Ltd. Mr. in his welcome address said it is high time for MSME units

Shekhar Sardessai, President-GSIA and Mr. Crasta, Asst in Goa to come forward and enter the export market. He

Director-MSME-DI were also present.said it is a wrong perception that only big companies can export and this has been proved by the fact that MSMEs Adv. E. O. Mendes made the participants aware about the contribute to around 45% of the total industrial output and Law on Patents, Designs, Trademarks, Copyrights and GI. 40% of country's exports. He said though there is economic He also spoke about the procedures to obtain Patents, slowdown in European countries, there is high potential for Designs and Trademarks.exports in countries like Africa, CIS, LAC, Middle East and ASEAN countries. The manufacturing sector in India is on Around 35 delegates from different companies attended in upward trajectory, not only in volume, but also in quality the seminar. standards, technology upgradation and adoption of best practices. EEPC India has played a lead role in building the “Brand India” image by organizing exhibitions around the globe. The India Engineering Sourcing Show 2012 will provide B2B platform in India for foreign delegates and industry leaders and will be a major step forward in building of the “Brand India” image. Indian companies will have never-before opportunity to meet international buyers from USA, Canada, Europe, Middle East, ASEAN, Africa, CIS and LAC.

Mr. Shekhar Sardessai, President GSIA speaking on the occasion said this Seminar is a good opportunity for

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EVENTS ORGANISED BY GSIA

(Left to Right: Adv. E O Mendes,Mr. Shekhar Sardessai & Mr. Crasta)

(Left to Right: Dr. Sangam Kurade, Mr. Shekhar Sardesai,Mr. Pankaj Chadda, Mr. Khalid Khan, Mr. Bhattacharya

and Mr. Avinash Naik)

Participants for the Seminar

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Incase you are interested to participate, kindly visit APO Website www.apo-tokyo.org (up coming projects-Project Notification) for more details.

UPCOMING PROJECTS ORGANIZED BY

ASIAN PRODUCTIVITY COUNCIL (APO)

S.N

Project Code Project Other Details

1 12-IN-29-GE-OSM-B Multicountry Observational Study Mission on Green House Gas Emission Reduction

Duration : 1st -5th October 2012Venue : Taipei, TaiwanImplementing Organization : China Productivity Centre (CPU)Closing Date for Nominations: 15th March 2012

2 12-IN-76-GE-TRC-B e-Learning Course on Green Productivity and Material Flow Cost Accounting (based on the Global Development Learning Network of the World Bank platform)

Duration &Timing: 23-26th April 2012Venue: New Delhi, IndiaClosing Date for Nominations: 23rd March 2012

3 12-In -48-GE-WSP-B Workshop on Public sector Productivity

Venue : Jakarta, IndonesiaClosing Date for Nomination: 16th March 2012

4 12-IN-01-GE-OSM-C Individual Country observational Study Missions

Duration up to one week (five working days) per missionVenue : Member CountriesImplementing Organizations: NPOs in host member countriesNumber of Participants: Approx. 10 (preferably minimum six, maximum 12) per missionClosing Date for Preliminary Applications: 31st

March 2012.

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The Judgment delivered by Hon'ble High Court is reproduced below:

IN THE HIGH COURT OF BOMBAY AT GOAWRIT PETITION NO. 381/2011

M/s. Shawa Conductors, Cables and Wires,having Factory / office at Plot No. P-16,Tivim Industrial Estate,Tivim, Bardez Goa,

. … Petitioner

V/s.

1. State of Goa,through Chief Secretary,Secretariat, Goa. …………. And Others

. … Respondents.

CORAM : S.C. DHARMADHIKARI AND U.V. BAKRE,JJ.

DATED : 15TH FEBRUARY, 2012.

ORAL JUDGMENT (PER S.C. DHARMADHIKARI):-

Heard.

2. Rule.

3. The Respondents waive service.

4. This Writ Petition under Article 226 of the Constitution of India seeks direction to the respondent no.3 to follow the tender

conditions and place orders upon the petitioner, through respondent no.2, of all such requirements in terms of approval dated

12/07/2010 so as to abide by order dated 11/5/2010.

5. We need to only notice some basic facts in as much as the petitioner claims to be registered partnership concern carrying

on business as manufacture of conductors having a manufacturing unit at the address mentioned in the cause title. The

petitioner is registered as Small Scale (Micro) Industry with the Directorate of Industries, Government of Goa. The First

respondent is the State of Goa and the second respondent is the Corporation, which is stated to be a Nodal Agency. This

agency promotes Small Scale and other such industries and is performing public functions. It is the case of the petitioner that

in order to encourage the Small Scale Industries Sector and to provide a special treatment to them, it was decided that if any

tender floated by the Government Department or any purchase made by Government Department, Semi Government

Institution, Government Corporations etc., preference will be given to the said Small Scale Industrial Units provided the

said tender is of the items mentioned in the Rate Contract. Our attention is invited to the order dated 11/05/2010 of the

Government of Goa Industrial Department in respect of supply of preferential purchase of the products manufactured by

local Small Scale Industries Unit through Rate Contract. A copy of this order is annexed as annexure to this writ petition at

page 33 of the paper book and it is the contention of Shri Tamba that one of the items mentioned is “conductors”. It is stated

HIGH COURT OF BOMBAY AT GOA UPHOLDS THE RATE

CONTRACT UNDER PPS

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that the conditions for purchase of items which are enlisted in this order would denote that preference will have to be given to

the units like the petitioner. The items are identified. Small Scale Industries Units are selected for Rate Contract. The

petitioner is one such unit. However, despite the petitioner being such unit as identified by this corporation there is ample

evidence of purchases having been made by the concerned Department of the State Government, not from these Small Scale

Industries Units which have been empaneled and selected by the second respondent corporation. The materials are procured

from out side agencies and by means of a general tender. According to Shri Tamba this violates the scheme and status of the

petitioner as recognized by Respondent nos. 1 and 2. Our attention was invited to clause 2 of the order dated 11/5/2010 and it

is submitted that it is a mandate for the Government Department and autonomous body that without any No Objection ndCertificate from the 2 Respondent corporation, no purchases from outsiders are permissible.

5. After the petition was heard for sometime, we noticed that with regard to the procurement or purchase in question it will

not be possible for us to resolve the factual dispute between parties. We indicated to the counsel that if their anxiety is that the

corporation may be by-passed in future or an entity like the petitioner, which is Small Scale Unit, will not be given its due

recognition or opportunity, then, adequate protection in the form of some directions would be given. However, in case of

individual contracts or procurements, it will not be possible for this court to resolve the factual and a contractual dispute in

our limited jurisdiction.

6. Both sides agreed that if the court ensures due adherence to the Government Order which provides a scheme, that would

take care of the apprehensions of the petitioner. Mr. Tamba states that the anxiety of the petitioner is having been identified as

Industrial Rate Contractor or supplier or conductor, it should not happen that he does not get any opportunity to supply the

items in question whenever the same are required by the Government departments.

7. We enquired from the learned Advocate General and Mr. Nadkarni, learned senior counsel appearing for respondent no.2

corporation as to whether the scheme, which has been set out in the order of Department of Industries, Government of Goa

will be adhered to and if any deviation or departure from the mode of procurement of material specified therein will be

strictly in terms of clauses of the scheme itself, both clearly stated that the said order together with the Cabinet decision

would be abided by and adhered to by respondent nos. 1 and 2.

8. In addition, our attention was invited to the decision of the Cabinet wherein it has been pointed out that the Cabinet also

has taken a decision on the same lines.

9. In such circumstances, we dispose of this petition by accepting the statements of respondent nos. 1 and 2 as undertakings

to this Court and particularly that they would abide by and adhere to the scheme and also the decision of the Cabinet and

procure the items listed in the schedule through the Item Rate Contractors which have been identified, empanelled / selected

by the second respondent corporation. We also accept the further statement made on behalf of respondent no.1 that in case

any deviation or departure from the mode of procurement specified in the scheme is made that will be strictly in accordance

with the scheme and particularly clause 2 therein. The State has also assured us that all the Item Rate Contractors, who have

been selected by the second respondent for supply of the items listed in the schedule, who wish to bid at any General or open

tender, they would be permitted to do so and their bid would be considered along with other bidders from the open market.

10. All these statements, are accepted as undertakings to this Court. We do not deem it necessary to go into and adjudicate

other issues raised in the petition. The petition can be conveniently disposed off in accordance with the above and is

accordingly disposed off, but without any order as to costs. Rule absolute in the above terms.

S.C. DHARMADHIKARI,J.

U.V. BAKRE,J.

MV.

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Government of India, Ministry of Commerce & Industry

Department of Industrial Policy & Promotion (FC-I Section)

Press Note No.1 (2012 Series)

Subject: Review of the policy on Foreign Direct Investment- liberalization of the policy in Single - Brand Retail Trading.

1.0 Present Position:

Foreign Direct Investment (FDI), in retail trade, is prohibited except in single brand product retail trading, in which FDI, up to 51% is permitted, subject to conditions specified under paragraph 6.2.16.4 of 'Circular 2 of 2011- Consolidated FDI Policy'.

2.0 Revised Position:

The Government of India has reviewed the extant policy on FDI and decided that FDI, up to 100%, under the government approval route, would be permitted in Single-Brand Product Retail Trading, subject to specified conditions, as indicated in paragraph 3.0 below.

3.0 Accordingly, the following amendment is made in 'Circular 2 of 2011- Consolidated FDI Policy', dated 30.09.2011, issued by the Department of Industrial Policy & Promotion:

3.1 Paragraph 6.2.16.4 is substituted with the following:

100% FDI IN SINGLE BRAND RETAIL

(1) Foreign Investment in Single Brand product retail trading is aimed at attracting investments in production and marketing, improving the availability of such goods for the consumer, encouraging increased sourcing of goods from India, and enhancing competitiveness of Indian enterprises through access to global designs, technologies and management practices.

(2) FDI in Single Brand product retail trading would be subject to the following conditions:(a) Products to be sold should be of a 'Single Brand' only.(b) Products should be sold under the same brand internationally i.e. products should be

sold under the same brand in one or more countries other than India.(c) 'Single Brand' product-retail trading would cover only products which are branded

during manufacturing.(d) The foreign investor should be the owner of the brand.(e) In respect of proposals involving FDI beyond 51%, mandatory sourcing of at least 30%

of the value of products sold would have to be done from Indian 'small industries/ village and cottage industries, artisans and craftsmen'. 'Small industries' would be defined as industries which have a total investment in plant & machinery not exceeding US $ 1.00 million. This valuation refers to the value at the time of installation, without providing for depreciation. Further, if at any point in time, this valuation is exceeded, the industry shall not qualify as a 'small industry' for this purpose. The compliance of this condition will be ensured through self-certification by the company, to be subsequently checked, by statutory auditors, from the duly certified accounts, which the company will be required to maintain.

(3) Application seeking permission of the Government for FDI in retail trade of 'Single Brand' products would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. The application would specifically indicate the product/ product

6.2.16.4 Single Brand product retail trading I 100% I Government

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categories which are proposed to be sold under a 'Single Brand'. Any addition to the product/ product categories to be sold under 'Single Brand' would require a fresh approval of the Government.

(4) Applications would be processed in the Department of Industrial Policy & Promotion, to determine whether the products proposed to be sold satisfy the notified guidelines, before being considered by the FIPB for Government approval.

4.0 The above decision will take immediate effect.

5.0 The above provisions will be incorporated in the next Circular on Consolidated FDI Policy to be issued on 31.3.2012.

(Anjali Prasad)Joint Secretary to the Government of India

The Pai Kane group that began, from a small garage in Atul Pai Kane's backyard has gradually grown into one of the

most respected companies with over two decades of operations in the manufacture of generators. The company was

founded in 1989 with the vision of facilitating uninterrupted power supply. A technology driven organization, the

company has embarked with missionary zeal to transform Gensets into 'A' Class white goods.

Till 1995, the company's products were called Powerkat and the company would dabble in just about anything in the

engineering and fabrication space. After working for a couple of years out of his garage, Atul's dream of making it big

took him a step further with the setup of a manufacturing unit in Tuem, eventually expanding to five factories. Over

the years, the group has spread to nine offices across India, 75 plus service personnel across 35 locations in India and

an office in UK. Some of their partners include Perkins, Doosan, Mitsubishi, Stamford and MTU.

The group believes in customer delight, striving hard to provide customers with a smooth, clean and dependable

power supply. Apart from being true to their work, acting ethically and taking responsibility, the Pai Kane Group

strives to achieve quicker reactions to market changes, faster product development and deeper relationship with its

customer by building a lean culture.

BUSINESS GOA AWARDS FOR CORPORATE EXCELLENCE, 2012

HAS CHOSEN MR. ATUL PAI KANE, PAST PRESIDENT OF GSIA AS

"THE INDUSTRIALIST OF THE YEAR"

Mr. Atul Pai Kane - Founder of Pai Kane Group

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The small and medium enterprises today constitute a very 7. Raw Material Procurement

important segment of the Indian economy. The 8. Manpower Training

development of this sector came about primarily due to the 9. Technical & Managerial skills

vision of our late Prime Minister Jawaharlal Nehru who 10. Tooling & Testing support

sought to develop core industry and have a supporting 11. Reservation for Exclusive Purchase by Government

sector in the form of small scale enterprises. SMEs sector 12. Export Promotion

has emerged as a dynamic and vibrant sector of the 13. Growth in demand in the domestic market size due to

economy. Today, it accounts for nearly 35% of the gross overall economic growth

value of output in the manufacturing sector and over 40% 14. Increasing Export Potential for Indian products

of the total exports from the country. In terms of value 15. Growth in Requirements for ancillary units due to the

added this sector accounts for about 40% of the value added increase in number of green-field units coming up in

in the manufacturing sector. The sector's contribution to the large scale sector.

employment is second highest next to agriculture.Great Potential

The SMEs sector has grown rapidly over the years. The SMEs sector has performed exceedingly well and enabled growth rates during the various plan periods have been very our country to achieve a wide measure of industrial growth impressive. The number of small-scale units has increased and diversification. By its less capital intensive and high from an estimated 6.79 million units in the year 1990-91 to labour absorption nature, SMEs sector has made over 13 million in the year 2007-08. When the performance significant contributions towards employment generation of this sector is viewed against the growth in the and rural industrialisation. SMEs sector in India creates manufacturing and the industry sector as a whole, it instills largest employment opportunities for the Indian populace, confidence in the resilience of the SMEs Sector. next only to agriculture. It has been estimated that 100,000

rupees of investment in fixed assets in the SMEs sector The opportunities of growth in the SMEs sector are generates employment for four persons. enormous due to the following factors:

Statistics from Ministry of Micro, Small & Medium

Enterprises also reflect the growth trajectory of SSI

industry in India. The number of SSI units has increased

from 6.79 million in 1990-91 to 13.37 million in 2007-08

providing employment to more than 32 million people in

India. SMEs Sector plays a major role in India's present

export performance. 45%-50% of the Indian Exports is

contributed by the sector. Direct exports from the sector

account for nearly 35% of total exports. Besides direct

exports, it is estimated that small-scale industrial units

contribute around 15% to exports indirectly. This takes

place through merchant exporters, trading houses and

export houses. They may also be in the form of export

orders from large units or the production of parts and

components for use for finished exportable goods. The

exports from SMEs sector have shown excellent growth 1. Less Capital Intensive

rates in this decade. The product groups which dominate 2. Extensive Promotion & Support by Government

the exports from SMEs sector include sports goods, 3. Reservation for Exclusive Manufacture by small scale

readymade garments, woolen garments and knitwear, sector

plastic products, processed food and leather products. The 4. Project Profiles

SMEs sector is reorienting its export strategy towards the 5. Funding - Finance & Subsidies

new trade regime being ushered in by the WTO.6. Machinery Procurement

ROLE OF SME SECTOR IN THE EMERGING INDIAN ECONOMY

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Promising Outlook which includes simplification of procedures, incentives for

This sector is ideally suited to build on the strengths of the higher production of exports, preferential treatments to

traditional skills and knowledge, by infusion of MSMEs in the market development fund, simplification of

technologies, capital and innovative marketing practices. duty drawback rules, etc. Products of MSME exporters are

This is the opportune time to set up projects in the sector. It displayed in international exhibitions free of cost under

may be said that the outlook is positive, indeed promising, SIDO Umbrella abroad.

given some safeguards. This expectation is based on an Need of Scientific Packagingessential feature of the Indian industry and the demand Role of packaging for exports has gained much structures. The diversity in production systems and demand significance in view of trends in the world markets. The structures will ensure long term co-existence of many need for better and scientific packaging for exports from layers of demand for consumer products / technologies / small sector was recognised long back. With a view to processes. There will be flourishing and well grounded acquaint MSME Exporters of the latest Packaging markets for the same product/process, differentiated by standards, techniques etc. training programmes on quality, value added and sophistication. This characteristic packaging for exports are organised in various parts of the of the Indian economy will allow complementary existence country. These programmes are organised in association for various diverse types of units. The promotional and with Indian Institute of Packaging which has requisite protective policies of the Government of India have expertise on the subject. Basic objective of these ensured the presence of this sector in an astonishing range programmes is to generate the much needed consciousness of products, particularly in consumer goods. However, the in the industry and to educate the entrepreneurs about the bottleneck of the sector has been the inadequacies in scientific techniques of packaging. Technical & managerial capital, technology and marketing. The process of consultancy services to the MSME manufacturers/ liberalisation coupled with Government support will exporters is also provided through a network of field offices therefore, attract the infusion of these in this sector.of this office so as to ensure higher level of production and

generation of higher exports.

Motivation

In order to encourage the small scale units for producing

Quality goods, National Awards for Quality Products are

given to the outstanding small scale units, who have made

significant contribution for improving quality of their

products. The scheme is being operated since 1986.

Winners of National Awards get a Trophy, a Certificate and

a Cash Prize. National Awards encourage Small Scale

Industries units to produce quality goods which further

enable them to enter into export market.

The performance of the SMEs Sector has been promising

till date. If adequate assistance is provided by the

Government towards marketing of SSI products, this sector

will increase employment opportunities as well as earn The capability of Indian MSME products to compete in valuable foreign exchange. international markets is reflected in its share of about 34%

in national exports. In case of items like readymade

garments, leather goods, processed foods, engineering

items, the performance has been commendable both in

terms of value and their share within the MSME sector

while in some cases like sports goods they account for

100% share to the total exports of the sector. In view of this,

export promotion from the small scale sector has been

accorded high priority in India's export promotion strategy

Source : SME Times

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To constitute interstate sales, one of the basic requirements manufactures some goods and send theses goods after

is that there should be sale person sends goods outside from manufacturing to its branch office situated at Delhi where

its state to its branch office in another state then it is not sale from the goods are sold in delhi. Now the movement of

because you cannot sell goods to yourself. Similarly if as goods from Punjab to Delhi will be treated as stock transfer

dealer sends goods to its agent in another state who stocks or branch transfer and for which no CST liability arises and

and sells goods on behalf of the dealer, such agent is called F form will be issued by Delhi Branch to Punjab dealer.

consignment agent and such stock transfer is also not But if the Person B in Delhi wants to purchase some goods considered as interstate sales since there is no sales of special description which is not normally manufactured involved in it sales will take place when such agent wills ell by A and Mr. B places order with A in Punjab for goods. But to prove such stock/branch transfer, F Form is manufacturing special description goods. Now if A required to be produced as proof.manufactures such ordered goods and send them to its

F from required for stock transfer-F from is required to be branch at Delhi then such movement will be an interstate

produced as proof of stock transfer. As per section 6A (1) sales and not a branch transfer since the movement of goods

submission of F from is mandatory to prove stock transfer. was due to a predetermined contract of sales.

Otherwise, the transaction will be treated as sale for all Thus where goods were sold through branch, but buyer was purpose of CST Act.known and identified before goods were dispatched from

F form is issued by the branch office/consignment agent factory. Obviously this was held as inter state sales and not

receiving goods as branch/stock transfer to its head a stock transfer-Electric Construction and Equipment Co.

office/principal who is sending the goods by way of Ltd. V State of Haryana (1991) 77 STC 424 (P7H HCDB)

stock/branch transfer. The H.O/Principal produces such In South India Viscose Ltd. v. State of Tamilnadu-(1981) 48 stock/branch transfer.STC 232 (SC) = AIR 1981 SC 1604 it was held that if there

One F Form for one month: First Proviso to Rule 5 of CST is a conceivable link between contract of sale and the

rules 1957 provides that one F form covering receipts movement of goods from one state to another in order to

during the month can be issued. If space in F form is not discharge the obligation under the contract of sale, the

adequate a separate list may be attached as annexure to interposition of the agent of seller who may temporarily

form F giving details, provided that the annexure is firmly intercept the movement will not alter the interstate

attached to the form. The blank form has to be obtained character of the sale.

from sales tax authority in which the transferee is situated, F form is not conclusive evidence but it is conclusive after i. e State where goods were received. If the form is lost, assessing officer passes an order: Submitting F form is not a indemnity bond has to be given and duplicate form clearly conclusive evidence per se to prove beyond doubt any stock marked as Duplicate can be issued.or branch transfer. The assessing officer may make enquiry

When Stock transfer is treated as Inter State sales: When as to whether declaration furnished by dealer are true or

goods are dispatched to Branch office or Consignment not. The sales tax authorities can investigate if they are of

agent in other state and thereafter theses goods are sold the opinion that the movement of goods is an interstate sale

from the branch office or by the consignment agent then and not stock transfer.

this is not a sales and is stock or branch transfer hence no Section 6A (1) provides that the dealer may submit form F CST liability arises.along with evidence of dispatch if goods. If dealer fails to

However if the movement of goods occasioned on account furnish such declaration, the movement shall be deemed for

of sales, the movement will be treated as interstate sales. It all the purposes of the Act to have been occasioned as a

can be explained with an example. result of sale. Section 6A(2) provides that if assessing

authority is satisfied after making enquiry that the Suppose the dealers A registered in Punjab who declaration furnished by dealer are true, he shall make an

FORM "F" PROCEDURE UNDER CST ACT 1956-STOCK

TRANSFER

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order to that effect and thereupon, the movement of goods form F. the dealer has to prove that in form F are true. If he is

to which the declaration relates shall be deemed for the unable to do so, transfer of good scan be taken as on account

purpose of the CST Act to have been occasioned other than of inter state sales.

as a result of sale.It has been held that by production of form F and providing

In Assam Company (India) Ltd. v. CT Assam (1997) 107 proof of dispatch of goods, the initial burden of proof on the

STC 154 (Gau HC DB), it was held that F form is not dealer is discharged – state of AP v Dairy Development

conclusive . Sales Tax Officer can make enquiry whether Corporation Ltd – (1994)95 STC 478 (AP HC)

the declaration is true and can reject the F form, if the Once assessing officer had made enquiry and passed order transaction is found not to be genuine.that the particulars stated are correct, the presumption that

In D Dandapni v state of Tamilnadu-(1995) 96 STC the movement has occasioned otherwise that as a result of

989Mad HC DB), it was held that section 6A(2) of CST Act sale is conclusive. Reopening of assessment under State

authorizes Assessing officer to make enquiry that particular Sales tax would not be permissible only on limited grounds

s contained in the declaration furnished by the dealers are of fraud, collusion, misrepresentation or suppression of

true and for this purpose other evidence produced by dealer material facts-Ashok Leyland Ltd v State of Tamilnadu

is also to be considered. Authority can call for other 2004 AIR SCW 1001.

information to verify the truth of particulars contained in Source : TANSTIA

The key here is to sizing innovation. The objective of innovation should not be considered as a mere one dimensional function to introduce 'new to world' breakthroughs. Instead, SMEs should seek innovation through small and incremental improvements, applications of new ideas, creativity by staff, and other similar measures that involve small costs. Also, innovation should be a continuous process, which transcends all areas of operation, such as production, marketing, finance, and human resource, and not only technology.

This approach will help SMEs a lot. Resource constraints may make it impossible for cash-strapped small firms to With the rate of economic globalization becoming faster access formal R&D programmes, but that should not be an and faster every day, our small and medium enterprises excuse for them to ignore all other sources where have seen an increasing market competition. This, in turn, innovation can come from. Some cost-effective measures, has pushed the importance of innovation for them. Today, such as new marketing methods, new ways of organizing an SME that fails to innovate runs the risk of losing market human resources, new sources of raw materials, or opening share, and even going out of business. As such, in the new up of new markets can play a significant role in enhancing landscape, innovation has emerged as the necessary core SMEs' competitiveness. competence for every SME -- to compete, survive and

grow. Fortunately, compared to large corporations, SMEs enjoy more innovation advantages. For example, their small size, But many small businesses are put off by the very idea and direct relationship with customers, quick adaptability to word innovation. They nurture a common misconception changing market conditions, strong social networks – all that innovation is all about application of new technologies these can be key drivers of innovation. But what is or carrying out extensive R&D activities, which require important is awareness. A small firm can make the best of huge funds and therefore, do not fit into their budget. But these advantages only when it believes in being an the reality, in contrast to this widely held view, is that small innovator. firms do not necessarily need to invest large amounts of

money in innovation. They just need to act smart.

SME INNOVATION: IS IT A HARD NUT TO CRACK

Source : SME Times

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The National Small Industries Corporation Ltd., a Public Raw Material Assistance Scheme

Sector Undertaking under the administrative control of the The Scheme a ims a t he lp ing Sma l l Sca l e

Ministry of Micro, Small and Medium Enterprises was Industries/Enterprises by way of financing the purchase of

established in 1955. NSIC has been engaged in promoting, Raw Material (both indigenous & imported). This gives an

aiding and fostering the growth and development of opportunity to MSMEs to focus better on manufacturing

MSMEs in the country. To enhance the competitiveness of quality products.

MSMEs, integrated support through marketing,

technology, credit and support services is provided by Credit facilitation

NSIC under its various schemes. NSIC facilitates MSMEs in preparing their loan proposals

and sanction of loans from commercial banks. NSIC has Training-cum-incubators entered into tie-up arrangements with several banks for Incubation i.e. providing hand holding support to MSMEs sanction of term loan and working capital facilities.in selection and operation of selected enterprises is one of Government Store Purchase Programmethe best ways to nurture entrepreneurship. NSIC has set up

The Government is the single largest buyer of a variety of three such Training-cum-Incubator Centres (TIC) at New goods. With a view to increase the share of purchases from Delhi, Howrah and Guwahati for providing hands on the small scale sector, the Government Stores Purchase training to small enterprises. In addition to its own TIC, Programme was launched in 1955-56. NSIC registers NSIC has started leveraging the resources available in the micro and small enterprises (MSEs) under Single Point private sector by setting up NSIC -Training-cum-Registration scheme for participation Government Incubation Centre (NSIC-TIC) in the Public-Private Purchases.Partnership (PPP) mode to provide hands on training to

MSMEs throughout the country. 43 such NSIC-TIC have Consortia marketing schemebeen set up under PPP Mode.MSMEs in its individual capacity faces problem very often

to procure & execute large orders, which inhibits and Technological facilitation through NTSCsrestricts the growth of MSMEs. NSIC, accordingly NSIC Technical Service Centres (NTSCs) provide adopted Consortia Approach and built groups/consortia of common facility and support services through its various units manufacturing same products, thereby easing out branches and Extension Centres in the area of material marketing problem of MSMEs. The Corporation explores testing, machining, EDM, CNC facility, energy and market and secures orders for bulk quantities. These orders environment services, classroom, practical training for are then farmed out to small units in tune with their skill upgradation, etc.production capacity.

Infomediary servicesTender marketing schemeNSIC is providing information services with respect to The Corporation participates in bulk global tender tender and trade information, technological resources in enquiries and local tenders of Central & State Government India and abroad, national and international leads, joint and Public Sector Enterprises on behalf of small scale units. v e n t u r e s o p p o r t u n i t i e s , G o v e r n m e n t It is aimed to assist MSMEs with ability to manufacture schemes/programmes, large data base with respect to quality products but which lack brand equity & credibility MSMEs etc. These are on-line facilities provided by NSIC or have limited financial capabilities. Under this scheme, to its members. In addition, NSIC has launched its web the Corporation has identified large number of items for portal which is available at www.nsicindia.com and which it actively participates in tenders of these www.nsicpartners.com which contain information about Departments and Enterprises. On receipt of the orders, 2,50,000 Indian MSMEs and also information about its Corporation farms out these orders to the units on whose counterpart organizations in 28 countries for B2B behalf it has quoted.facilitation.

NSIC -- NURTURING THE MSME SECTOR

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Marketing assistance scheme as a trusted third party opinion on the capabilities and

NSIC is implementing the scheme on behalf of Ministry of creditworthiness of the small enterprises. An independent

MSME. NSIC acts as a facilitator to promote marketing rating by an accredited rating agency has a good acceptance

efforts and enhance the competency of the small enterprises from the Banks/Financial Institutions, Customers/Buyers

for capturing the new market opportunities by way of and Vendors.

organizing/ participating in various domestic & To extend the benefits of the various schemes and international exhibitions/trade fairs, buyers-seller meets, increasing its reach, NSIC has entered into Memorandum intensive campaigns/seminars and consortia formation.of Understanding (MoU) with various industry

associations so that information about the schemes and Performance & credit rating schemetheir benefits can be extended to larger number of MSMEs NSIC is implementing the scheme on behalf of Ministry of through them. MoUs have been entered into with 57 MSME. The Scheme aims to create awareness amongst Industry Associations out of which four have been signed micro and small enterprises (MSEs) about the strengths and during 2010-2011. (PIB Feature).weakness of their existing operations and to provide them

an opportunity to enhance their organizational strengths

and credit worthiness. The rating under the scheme serves Source : SME Times

GSIA Advertisement Rates for 6 issues

Our next six issues will start from March/April 2012 till January/ February 2013

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Introduction 200 B.C. The windwheel of Heron of Alexandria marks one India is facing an acute energy scarcity which is hampering of the first known instances of wind powering a machine in its industrial growth and economic progress. Setting up of history. However, the first known practical windmills were new power plants is inevitably dependent on import of built in Sistan, a region between Afghanistan and Iran, from highly volatile fossil fuels. Non renewable resources of the 7th century. These "Panemone" were vertical axle energy in India are the natural resources of energy that windmills, which had long vertical driveshafts with cannot be produced, renewed, re-grown or recycled on a rectangular blades. Made of six to twelve sails covered in large scale. These non renewable resources generally exist in reed matting or cloth material, these windmills were used to a fixed amount and are consumed much faster than nature grind grain or draw up water, and were used in the grist can produce them. Fossil fuel including Indian coal, milling and sugarcane industries.petroleum, oil and natural gas are some examples of non-

Windmills first appeared in Europe during the middle ages. renewable resources of energy in India. These non The first historical records of their use in England date to the renewable resources of energy needs millions of years to 11th or 12th centuries and there are reports of German form naturally and cannot be replaced as rapidly as they crusaders taking their windmill-making skills to Syria consumed. In due course natural resources will become too around 1190. By the 14th century, Dutch windmills were in expensive to reap and mankind will look for alternate source use to drain areas of the Rhine delta.of energy. At present most important energy source used by

the Indian population are non-renewable source of energy. The first electricity generating wind turbine, was a battery Thus, it is essential to tackle the energy crisis through charging machine installed in July 1887 by Scottish judicious utilization of abundant the renewable energy academic James Blyth to light his holiday home in Marykirk, resources, such as biomass energy, solar energy, wind energy Scotland. Some month's later American inventor Charles F and geothermal energy. Apart from augmenting the energy Brush built the first automatically operated wind turbine for supply, renewable resources will help India in mitigating electricity production in Cleveland, Ohio. Although Blyth's climate change. India is heavily dependent on fossil fuels for turbine was considered uneconomical in the United its energy needs. Most of the power generation is carried out Kingdom electricity generation by wind turbines was more by coal and mineral oil-based power plants which contribute cost effective in countries with widely scattered populations. heavily to greenhouse gases emission. In Denmark by 1900, there were about 2500 windmills for mechanical loads such as pumps and mills, producing an The average per capita consumption of energy in India is estimated combined peak power of about 30 MW. The around 500 W, which is much lower than that of developed largest machines were on 24-metre (79 ft) towers with four-countries like USA, Europe, Australia, Japan etc. However, bladed 23-metre (75 ft) diameter rotors. By 1908 there were this figure is expected to rise sharply due to high economic 72 wind-driven electric generators operating in the US from growth and rapid industrialization. The consumption of 5 kW to 25 kW. Around the time of World War I, American electricity is growing on the worldwide basis. Energy is a windmill makers were producing 100,000 farm windmills necessity and sustainable renewable energy is a vital link in each year, mostly for water-pumping. By the 1930s, wind industrialization and development of India. A transition generators for electricity were common on farms, mostly in from conventional energy systems to those based on the United States where distribution systems had not yet renewable resources is necessary to meet the ever-increasing been installed. In this period, high-tensile steel was cheap, demand for energy and to address environmental concerns. and the generators were placed atop prefabricated open steel

Growing concern for the environmental degradation has led lattice towers.to the world's interest in renewable energy resources. Wind

A forerunner of modern horizontal-axis wind generators was is commercially and operationally the most viable in service at Yalta, USSR in 1931. This was a 100 kW renewable energy resource and accordingly, emerging as generator on a 30-metre (98 ft) tower, connected to the local one of the largest source in terms of the renewable energy 6.3 kV distribution system. It was reported to have an annual sector.capacity factor of 32 per cent, not much different from

History current wind machines. In the fall of 1941, the first Windmills were used in Persia (present-day Iran) as early as megawatt-class wind turbine was synchronized to a utility

Wind energy - Renewable Power in the 21st CenturyShubhangi G. Kumbhar

M.Sc. Environmental science,Env. Trainee, Mantras Resources, Nashik.

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grid in Vermont. The Smith-Putnam wind turbine only ran some criticism in areas such as Britain is associated to for 1,100 hours before suffering a critical failure. The unit theplacement of some wind farms.Some renewable energy was not repaired because of shortage of materials during the experts are stating the efficiency of some wind farm war.The first utility grid-connected wind turbine to operate developments is not economically viable, and the only in the U.K. was built by John Brown & Company in 1951 in reason for placement is dueto government financial the Orkney Islands. incentives, and meeting energy targets.However you see the

use of wind energy in Britain, India or anywhere else in the Wind Energy - What is it? world for that matter, It is set to play a vital role in generating Wind is the natural movement of air across the land or sea. some of thefuture electricity demand.The wind is there for Wind is caused by uneven heating and cooling of the earth's everyone; it is renewable and reduces the costs of having to surface and by the earth's rotation. Land and water areas purchase expensive fossil fuels.absorb and release different amount of heat received from

India surprisingly enough, emerged last month as one of the the sun. As warm air rises, cooler air rushes in to take its fastest growing wind energy producers, behind only place, causing local winds. The rotation of the earth changes Germany (the highestproducer in the world), Spain, the the direction of the flow of air.United States and Denmark.All together, these five

Wind power is one of the most efficient alternative energy countries produce 80 per cent of the 14,000 MW that make sources. There has been good deal of development in wind up theentire world's capacity of wind energy.India is no turbine technology over the last decade with many new stranger to renewable energy, whether it's solar energy, companies joining the fray. Wind turbines have become wind, hydro orbiomass.Wind power, however, can be used larger, efficiencies and availabilities have improved and on a much larger scale. It uses a very simple principle to wind farm concept has become popular. It could be convert wind (which spins aturbine) into mechanical energy, combined with solar, especially for a total self-sustainability which is then converted into electrical power.India currently project.The economics of wind energy is already strong, produces approximately 3,000 MW of wind energy annually despite the relative immaturity of the industry. The (only marginally behind Denmark, which is at atotal downward trend in wind energy costs is predicted to installed capacity of 3,117 MW, according to a recent World continue. As the world market in wind turbines continues to Wind Energy Association report), and had a growth rate boom, wind turbine prices will continue to fall. lastyear of over 40 per cent.As glowing as these sounds,

however, India's wind power potential is 45,000 MW, Wind Energy in India making the amount harnessed less than 7per cent of total During 2001, India produced around 1000 MW of wind potential capacity.energy making it the third largest user of wind energy in theworld.India trails just behind Europe and the United It is said that between 2020 and 2050, fossil fuel demands States for the lead in renewable energy production from the will push prices higher than we have ever seen; hopefully winds energysource.For India, renewable energy production this will be the next big step to the morewidespread use of such as wind power plays a huge role in supporting future renewable energy sources.The current capacity of wind generations andproviding them with a source of clean, low energy in India stands at around 7,000 MW (2007), this cost electricity.India now ranks as a “wind superpower” shows how the average annual increase of Indian wind having a net potential of about 45000 MW only from 13 energy is set at afantastic 1,000 MW per year.Mainly driven identified states. by the increase in energy demand, India faces to see a much

larger capacity of wind energy production for the future.The use of wind turbines globally is on the increase, yet

State Andhra Pradesh

Gujarat Karnataka KeralaMadhya Pradesh

Maharashtra RajasthanTamil Nadu

West Bengal

Others Total

Up to March'2002

93.2 181.4 69.3 2.0 23.2 400.3 16.1 877.0 1.1 3.2 1666.8

2002-03 0.0 6.2 55.6 0.0 0.0 2.0 44.6 133.6 0.0 0.0 242.0

2003-04 6.2 28.9 84.9 0.0 0.0 6.2 117.8 371.2 0.0 0.0 615.2

2004-05 21.8 51.5 201.5 0.0 6.3 48.8 106.3 675.5 0.0 0.0 1111.7

2005-06 0.45 84.60 143.80 0.0 11.40 545.10 73.27 857.55 0.0 0.0 1716.17

Wind Power Installed Capacity (MW) in INDIA (Up To August 2011)

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How Do Wind Turbines Work turbine to be used for many purposes, for example How wind turbines work, in order to provide a basic agriculture.understanding on the process of electricity production from · Newer technologies are making the extraction of wind the wind.Firstly, it is important to understand the design of energy much more efficient. The wind is free, and we the two main types of wind turbines available today.It is are able to cash in on this free source ofenergy.significant to ask this question as the two main types of · Wind turbines are a great resource to generate energy in wind turbines are horizontal and vertical, and these remote locations, such as mountain communities and designs use the wind in slightly different waysregarding the remote countryside. Wind turbines canbe a range of wind energy harnessing process. different sizes in order to support varying population

levels.Horizontal wind turbines are the more common design, and

· Another advantage of wind energy is that when use angled propeller type blades to create friction when

combined with solar electricity, this energy source is facing the wind, resulting in the spinning motion.The

great for developed and developing countries toprovide vertical turbine design uses the wind to spin on a centre

a steady, reliable supply of electricity.point on the ground, resulting in the whole construction

· A project with the fastest payback period. spinning round.

· Operation and Maintenance (O&M) costs are low.

· No marketing risks, as the product is electrical energy. The process of electricity production is significantly similar in both designs. The construction only makes a · A permanent shield against ever increasing power difference in the position and design of the bladeswhich are prices. The cost per kw/h reduces over a period of time used to create friction with the wind.A good way of as against rising cost for conventional power projects. thinking about the basics of wind power is by comparing a

Conclusionwind turbine to an electric fan.An electric fan uses Climate change concerns, coupled with high oil prices, electricity to create the blowing motion (which is your peak oil, andincreasing government support, are driving wind), and a wind turbine works in theopposite direction, increasing renewable energy legislation, incentives and using wind energy to blow the blades, which are attached to commercialization. New government spending,regulation a generator, creating the electricity.So when the wind and policies helped the industry weather the global turbines blades are spinning, blades are attached to a long financial crisisbetter than many other sectors. According to shaft (inhorizontal wind turbines). Inside the long neck of a 2011 projection by the International Energy Agency, wind the wind turbine design, the shaft begins to turn whichis power generators may produce most of theworld's connected to a generator, and this generates the electricity within 50 years, dramatically reducing the electricity.So there is the basic understanding of how wind emissions ofgreenhouse gases that harm the environment. turbines work. Wind power generation is a fairly simple There is an urgent need for transition from petroleum-based process, andsome people have had great success in building energy systems to one based on renewable resources to a home wind turbine from scratch.Wind power is seen as a decrease reliance on depleting reserves of fossil fuels and to very good source of renewable electricity.mitigate climate change. In addition, renewable energy has the potential to create many employment opportunities at Advantages:all levels, especially in rural areas. An emphasis on · Wind energy is friendly to the surrounding presenting the real picture of massive renewable energy environment, as no fossil fuels are burnt to generate potential, it would be possible to attract foreign electricity fromwind energy.investments to herald a Green Energy Revolution in India.· Wind turbines take up less space than the average power

station. Windmills only have to occupy a few square meters for the base; this allows the landaround the

2006-07 0.80 283.95 265.95 0.0 16.40 485.30 111.90 577.90 0.0 0.0 1742.05

2007-08 0.0 616.36 190.30 8.50 130.39 268.15 68.95 380.67 0.0 0.0 1663.32

2008-09 0.0 313.6 316.0 16.5 25.1 183.0 199.6 431.1 0.0 0.0 1484.9

2009-10 13.6 197.1 145.4 0.8 16.6 138.9 350.0 602.2 0.0 0.0 1564.6

2010-11 55.4 312.8 254.1 7.5 46.5 239.1 436.7 997.4 0.0 0.0 2349.3

2011-12 7.7 160.9 46.4 0.0 0.0 83.2 153.4 381.9 0.0 0.0 833.4

Total 199.20 2337.30 1773.20 35.10 275.90 2400.00 1678.50 6286.00 1.10 3.20 14989.40

Source : MACCIA

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