NEW ECONOMIC

POLICIES
 In the presence of a more globalized
environment all over the world, the
policies of a country act as a key
determinant for getting the real benefits
of the same. Particularly for the
developing nations, the Government's
policies largely affect its economic
environments. After the adoption of the
new economic policies in India, the
country has reviewed its policies and
 NEW ECONOMIC
POLICIES IN DIFFERENT
SECTORS OF THE
ECONOMY
 CIVIL AVIATION POLICY
 FOREIGN DIRECT INVESTMENT POLICY
 DRUG POLICY
 INDUSTRIAL POLICY
 BROAD BAND POLICY 2004
 NATIONAL ELECTRICITY POLICY
 AMENDMENTS TO COMPANIES ACT 1956
 FOREIGN TRADE POLICY
 FOREIGN TRADE POLICY SUPPLEMENT
 EXIM POLICY
 NEW TELECOM POLICY 1999
 NATIONAL MINERAL POLICY
 CIVIL AVIATION POLICY

The objectives of this policy are the creation

and continued facilitation of a competitive
and service-oriented civil aviation
environment in which:
 The interests of the users of civil aviation are
the guiding force behind all decisions,
systems and arrangements,
 Safe, efficient, reliable and widespread quality
air transport services are provided at
reasonable prices,
 There exists a well-defined regulatory
framework catering to changing needs and
circumstances,
 Private participation is encouraged and
opportunities created for investors to realize
adequate returns on their investments;
 Recognizing that aviation today is an
important element of infrastructure, rapid
upgradation of airport infrastructure to world
class with priority to the busiest airports and
those handling international flights;
 Recognizing that transportation of air cargo is
vital to the economic growth of the country,
creation and development of specific
infrastructure for air transportation of cargo
and express cargo is encouraged,
 "Airline operations and acquisition of aircraft"
is conferred "infrastructure" status for overall
growth of civil aviation sector in the country
 Domestic and international aviation in the
country are encouraged to grow at par with
world aviation industry;
 Inter-linkages with other modes of transport
are encouraged and stimulated;
 Trade, tourism and overall economic activity
and growth is encouraged;
 International cooperation in aviation and
development in tune with international trends
and best practices, consistent with airspace
sovereignty is promoted;
 Indigenous development of aircraft,
components and aviation products is
encouraged,
 Security of civil aviation operations is ensured
through appropriate systems, policies, and
practices, and
 Effective systems are put in place for timely
crisis and disaster management, including
investigation of incidents/accidents.
 A statutory autonomous Civil Aviation
Authority (CAA) will be constituted. The basic
objectives of setting up of the Authority will
be to ensure aviation safety, security and
effective regulation of air transport in the
country in the liberalized environment.
• Private sector participation will be a major
thrust area in the civil aviation sector for
promoting investment, improving quality and
efficiency and increasing competition.
• The Government will aim at ensuring
adequate world class airport infrastructure
capacity in accordance with demand,
ensuring maximum utilization of available
capacities and efficiently managing the
airport infrastructure by increasing
involvement of private sector.
 The central Government has increased the
FDI Limits in Air Transport Service (Domestic
Airlines) on 10th November 2004. Now
Foreign equity up to 49% and Non-Resident
Indian investment up to 100% will be
permitted for domestic passenger transport
services. However, equity participation from
foreign airlines either directly or indirectly will
not be permitted. Substantive ownership and
effective control by Indians will be a pre-
requisite.
• The Government will aim at ensuring
adequate capacity to fully meet the
requirement of international trade and
tourism.
 The government will give thrust on use of
Information technology in all aspects of civil
aviation sector. Each organisation will have
time-bound IT action plan.
 A thrust for international tourism in
India will be given by
 Providing freedom to International Tourist
Charters to all airports linking places of
tourist interest
 Declaring additional airports as
international airports resulting in easy
connectivity and better services,
 Upgradation of airports at places of Tourist
interest like Buddhist circuit, sanctuaries,
beach resorts etc.
 Standards for civil aviation safety for all
agencies will be set as per international
norms prescribed by ICAO and enforced by
CAA
 New Communication, Navigation Surveillance/
Air Traffic Management (CNS/ATM) system will
be introduced on a priority basis as per ICAO's
regional plan.
 A strict national civil aviation security
programme to safeguard civil aviation
operations against acts of unlawful
interference will be established through
regulations, practices and procedures, which
take account of the safety, regularity and
efficiency of flights.
 Periodic review of threat perception will be
carried out taking into account the
international situation, internal security
scenario and other relevant inputs. Security
arrangements and drills will be updated and
 The role of aviation support services like
human resource development, maintenance
facilities and manufacture of aircraft is very
important, as these are the backbone of civil
aviation services. These services should be
available in state-of-art condition in adequate
supply in accordance with demand. For this,
the role of private sector needs to be
emphasised.
 Training
 Standards and guidelines for training
institutions will be prescribed and enforced
by CAA.
 Private sector participation will be
 FOREIGN DIRECT
INVESTMENT POLICY
 FDI up to 100% is allowed under the
automatic route in all activities/sectors except
the following which will require approval of
the Government :
 Activities/items that require an Industrial
Licence;
 Proposals in which the foreign collaborator
has a previous/existing venture/tie up in India
in the same or allied field
 All proposals relating to acquisition of shares in an
existing Indian company by a foreign/NRI investor.
 All proposals falling outside notified sectoral
policy/caps or under sectors in which FDI is not
permitted.
• FDI policy is reviewed on an ongoing basis and
measures for its further liberalization are taken.
Change in sectoral policy/sectoral equity cap is
notified from time to time through Press Notes by the
Secretariat for Industrial Assistance (SIA) in the
Department of Industrial Policy & Promotion. Policy
announcement by SIA are subsequently notified by
RBI under FEMA. All Press Notes are available at the
website of Department of Industrial Policy &
Promotion.
 FDI Policy permits FDI up to 100 % from
foreign/NRI investor without prior approval in
most of the sectors including the services
sector under automatic route. FDI in
sectors/activities under automatic route does
not require any prior approval either by the
Government or the RBI. The investors are
required to notify the Regional office
concerned of RBI of receipt of inward
remittances within 30 days of such receipt
and will have to file the required documents
with that office within 30 days after issue of
 The Foreign Investment Promotion Board
(FIPB) considers approving all proposals for
foreign investment, which requires
Government approval. The FIPB also grants
composite approvals involving foreign
investment/foreign technical collaboration.

FDI applications with NRI Investments and
100% EOU should be submitted to the Public
Relation & Complaint (PR&C) Section of
Secretariat of Industrial Assistance (SIA),
Department of Industrial Policy & Promotion.
 FDI is not permissible in Gambling and
Betting, or Lottery Business, Business of chit
fund, Nidhi Company, Housing and Real
Estate business, Trading in Transferable
Development Rights (TDRs), Retail Trading,
Atomic Energy Agricultural or plantation
activities or Agriculture (excluding
Floriculture, Horticulture, Development of
Seeds, Animal Husbandry, Pisiculture and
Cultivation of Vegetables, Mushrooms etc.
under controlled conditions and services
related to agro and allied sectors) and
 RBI has granted general permission under
Foreign Exchange Management Act (FEMA) in
respect of proposals approved by the
Government. Indian companies getting
foreign investment approval through FIPB
route do not require any further clearance
from RBI for the purpose of receiving inward
remittance and issue of shares to the foreign
investors.
 An Indian corporate can raise foreign currency
resources abroad through the issue of
American Depository Receipts (ADRs) or
Global Depository Receipts (GDRs).
 FCCBs are issued in accordance with the
scheme [the Scheme for issue of Foreign
Currency Convertible Bonds and Ordinary
Shares (Through Depository Receipt
Mechanism) Scheme, 1993] and subscribed
by a non-resident in foreign currency and
convertible into ordinary shares of the issuing
company in any manner, either in whole, or in
part, on the basis of any equity related
warrants attached to debt instruments;
 100% FDI is permitted under automatic route
for setting up of Special Economic Zone. Units
in SEZ qualify for approval through automatic
route subject to sectoral norms.
 100% FDI is permitted under automatic route
for setting up 100% EOU, subject to sectoral
norms.
 100% FDI is permitted under automatic route
for setting up of Industrial Park.
 FDI inflows are required to be under the
following modes:
 By inward remittances through normal
banking channels or
 By debit to the specified account of person
concerned maintained in an authorized
dealer/authorized bank. Issue of equity to
non-residents against other modes of FDI
inflows or in kind is not permissible.
 A foreign company planning to set up
business operations in India has the following
options:
 Joint Ventures; or
 Wholly Owned Subsidiaries
 Liaison Office/Representative Office
 Project Office
 Branch Office
The Reserve Bank of India's Exchange Control
Department, administers Foreign Exchange
Management Act, 1999, (FEMA) which has
replaced the earlier act , FERA, with effect
from June 1, 2000.
Prior approval of the RBI is required for acquiring
foreign currency above certain limits for the following
purposes:
 Holiday travel over US$ 10,000 p.a.
 Gift / donation over US$ 5,000 / US$ 10,000 per
beneficiary p.a.
 Business travel over US$ 25,000 per person
 Foreign studies as per estimate of institution or US$
100,000 per academic year
 Architectural / consultancy services procured from
abroad over US$ 1,000,000 per project
 Remittance for purchase of Trade Mark / Franchise
 Reimbursement of pre incorporation expenses over
US$ 100,000
 DRUG POLICY

 Abolition of industrial licensing for

manufacture of all drugs and pharmaceuticals
except for bulk drugs produced by the use of
recombinant DNA technology, bulk drugs
requiring in-vivo use of nucleic acids, and
specific cell tissue targeted formulation.
Reservation of 5 drugs for manufacture by the
public sector only was abolished in Feb.1999,
thus opening them up for manufacture by the
private sector also.
 Foreign investment through automatic route
was raised from 51% to 74% in March, 2000
and the same has been raised to 100%.
 Drugs and pharmaceuticals manufacturing
units in the public sector are being allowed to
face competition including competition from
imports. Wherever possible, these units are
being privatized.
 Introduction of the Patents (Second
Amendment) bill in the Parliament. It, inter-
alia, provides for the extension in the life of a
patent to 20 years.
 Two major issues have surfaced on account
of globalization and implementation of our
obligations under TRIPs which impact on
long-term competitiveness of Indian
industry. These have been addressed in the
Pharmaceutical Policy-2002.
The main objectives of this policy are:-
 Ensuring abundant availability at reasonable
prices within the country of good quality
essential pharmaceuticals of mass
consumption.
 pharmaceuticals by reducing barriers to
trade in the pharmaceutical sector.
 Strengthening the system of quality control
over drug and pharmaceutical production
and distribution to make quality an essential
attribute of the Indian pharmaceutical
industry and promoting rational use of
pharmaceuticals.
 Encouraging R&D in the pharmaceutical
sector in a manner compatible with the
country's needs and with particular focus on
diseases endemic or relevant to India by
creating an environment conducive to
channelising a higher level of investment
 Creating an incentive framework for the
pharmaceutical industry which promotes new
investment into pharmaceutical industry and
encourages the introduction of new technologies and
new drugs.
Industrial Licensing
Industrial licensing for all bulk drugs cleared by Drug
Controller General (India), all their intermediates and
formulations will be abolished, subject to stipulations
laid down from time to time in the Industrial Policy,
except in the cases of
 bulk drugs produced by the use of recombinant DNA
technology,
 bulk drugs requiring in-vivo use of nucleic acids as
the active principles, and
 specific cell/tissue targetted formulations.
 Foreign investment upto 100% will be
permitted, subject to stipulations laid down
from time to time in the Industrial Policy,
through the automatic route in the case of all
bulk drugs cleared by Drug Controller General
(India)
 Automatic approval for Foreign Technology
Agreements will be available in the case of all
bulk drugs cleared by Drug Controller General
(India).
 Imports of drugs and pharmaceuticals will be
as per EXIM policy in force.
 ENCOURAGEMENT TO RESEARCH AND
DEVELOPMENT (R&D)
 Maximum Allowable Post-manufacturing
Expenses (MAPE) will be 100% for
indigenously manufactured formulations.
 For imported formulations, the margin to
cover selling and distribution expenses
including interest and importer's profit shall
not exceed fifty percent of the landed cost.
 The DPCRC's recommendations to have
effective monitoring and enforcement system
and to move away from the "controlled
regime" to a "monitoring regime" is in the
present context an extremely important
recommendation as imports will increasingly
compete with local drugs and
pharmaceuticals in the domestic market. A
new system based on solely market prices
data is required to be evolved and controls
applied selectively only to cases where, either
profiteering or monopoly profit seeking is
 INDUSTRIAL POLICY
Objectives of the Industrial Policy
 Maintaining a sustained growth in
productivity;
 Enhancing gainful employment;
 Achieving optimal utilisation of human
resources;
 Attaining international competitiveness and
 Transforming the country into a major partner

and player in the global arena.

 BROAD BAND POLICY
 Keeping in view the present status, Broadband
connectivity is defined at present as
"An 'always-on' data connection that is able to
support interactive services including Internet access
and has the capability of the minimum download
speed of 256 kilo bits per second (kbps) to an
individual subscriber from the Point Of Presence
(POP) of the service provider intending to provide
Broadband service where multiple such individual
Broadband connections are aggregated and the
subscriber is able to access these interactive services
including the Internet through this POP. The
interactive services will exclude any services for
which a separate licence is specifically required, for
example, real-time voice transmission, except to the
extent that it is presently permitted under ISP licence
with Internet Telephony."
Various access technologies are:
Optical Fibre Technologies;
 This is being deployed in commercial
buildings and complexes and some metros /
big cities having high-density potential
broadband subscribers. There are more than
4.5 lakh route kms. of optical fibre laid by
BSNL / MTNL and more than 1 lakh route kms
laid by private operators.
Digital Subscriber Lines(DSL) on copper loop :
 Bharat Sanchar Nigam Limited (BSNL) and
Mahanagar Telephone Nigam Limited (MTNL)
as well as other access providers are
expected to aggressively use their copper
loop infrastructure for providing Broadband
services through this technology.
 Use of brand-name being treated as a part of
the value shall be permitted in commercial
arrangements.
 Management of BSNL and MTNL decided to
provide 1.5 million connections by the end of
2005
 Cable TV network can be used as franchisee
network of the service provider for
provisioning Broadband services. However, all
responsibilities for ensuring compliance of
terms & conditions of the licence shall vest
with the Licensee.
 Satellite Media
Very Small Aperture Terminals (VSAT) and
Direct-to-Home(DTH) services would be
encouraged for penetration of Broadband and
Internet services with the added advantage to
 Commercial VSAT service providers having
ISP licence shall be permitted use of same
hub station and remote station to provide
Internet service directly to the subscribers.
 DTH service providers shall be permitted to
provide Receive Only Internet Service after
obtaining ISP licence from Department of
Telecommunications.
 To accelerate penetration of Broadband and
Internet, the 5.15-5.35 GHz band shall be
de-licensed for the indoor use of low power
Wi-Fi systems.
 In the changing technology scenario, there is
a possibility of new options being used for
provisioning of Broadband services. These
technologies can also be utilised for
provisioning of such services within the
licensing framework of the service provider
and the spectrum management policy of
DoT.
 As per TRAI Act, 1997, TRAI has to prescribe
QoS parameters. Government recognises that
QoS parameters are extremely important and
have an impact on investment and roll-out
decisions of operators. TRAI would be
requested to prescribe QoS parameters for
provisioning of broadband service using
various access technologies at an early date.
 Government have recently decided to reduce
the licence fee for Infrastructure Provider
category-II, who provides end to end
bandwidth, to 6% of Adjusted Gross Revenue
(AGR). Further, the amount of bank guarantee
for such service provider has also been
reduced to Rs.5 crores from Rs.100 crores.
 National Internet Exchange of India (NIXI) has
been set up by DIT, Governmentof India to
ensure that Internet traffic, originating and
destined for India, should be routed within
India. It is expected that NIXI will take
 PCs, content and applications are important
constituents for overall growth of Internet and
Broadband services. Broadband services will
accelerate decentralised governance at
Panchayat level.
 NATIONAL ELECTRICITY
POLICY
 Under the provisions of section 3(1) of the
Electricity Act, 2003, the Central Government
is required to prepare the National Electricity
Policy for development of the power system
based on optimal utilization of resources. The
Policy has been evolved after extensive
consultations with the States, other stake
holders, the Central Electricity Authority and
after considering the advice of the Central
Electricity Regulatory Commission.
Objectives of the Policy
 Access to Electricity Available for all
households in next five years.
 Availability of Power Demand to be fully met
by 2012. Energy and peaking
 shortages to be overcome and spinning
reserve to be available
 Supply of Reliable and Quality Power of
specified standards in an efficient manner and
at reasonable rates.
 Financial Turnaround and Commercial
Viability of Electricity Sector.
 Protection of consumers interests.
 The Policy recognizes the need for ensuring
recovery of cost of service from consumers to
make the power sector sustainable.
 The National Electricity Policy lays special
emphasis on time bound reduction of
transmission and distribution losses and
advocates promotion of competition aimed at
consumer benefits.
 The National Electricity Policy lays down the
approach for developing Rural Electrification
distribution backbone and village
electrification to achieve the target of
completing household electrification in next
five years as envisaged in the National
Common Minimum Programme.
 The policy also envisages financial support in
terms of capital subsidy to States for rural
electrification and special preference to Dalit
Bastis, Tribal Areas and other weaker sections
for rural electrification.
 The policy estimates that to meet the
objective of rapid economic growth and power
for all including household electrification, an
investment of the order of Rs.9,00,000 crores
would be required to finance generation,
transmission, sub-transmission, distribution
and rural electrification projects upto the year
2012.
 Open access in transmission will promote
competition and in turn lead to availability of
cheaper power.
 The policy emphasizes that the Regulatory
Commissions need to provide facilitative
framework for non-discriminatory open access
at the earliest including technological
upgradation of the State Load Dispatch
Centres by June 2006 to ensure data
acquisition capability on a real time basis.
 The policy also emphasises on higher
efficiency levels of generating plants through
renovation and modernization, transmission
capacity to have redundancy level and
margins as per international standards,
adequate transitional financial support for
 Per capita availability of electricity to be
increased to over 1000 units by 2012.
 Minimum lifeline consumption of 1
unit/household/day as a merit good by year
2012.
 CEA to notify first National Electricity Plan in
six months with a perspective up B12th Plan
period. The Plan prepared by CEA to be used
by prospective generating companies,
transmission utilities and transmission /
distribution licensees as reference document.
 Creation of adequate generation capacity with
a spinning reserve of at least 5% by 2012 with
availability of installed capacity at 85%.
 Exploitation of non-conventional energy
sources such as small hydro, solar, biomass
and wind for additional power generation
capacity.
 AMENDMENTS TO
COMPANIES ACT 1956
 The Union Cabinet has approved the proposal of
Ministry of Company Affairs for introducing limited
amendments in Companies Act, 1956 through a Bill
called Companies (Amendment) Bill, 2006 in the
ensuing session of Parliament.
Some of the major changes envisaged through
the proposed Amendment Bill are as follows:
 Allotment of Director Identification Number (DIN) to
any individual, intending to be appointed as director
in a company or for any existing director of a
company, for the purpose of his identification as
such, through electronic mode;
 Ensuring secure e filing and authentication of
documents consistent with Information Technology
Act, 2000 through Digital Signature Certificates. This
modality would prevent any tempering of e-
documents subsequent to filing. The e-documents
 Provision of such value added services by the
Government through electronic forms from
the electronic database created in the data
process.
 Enabling powers to the Government to
prescribe rules where necessary to facilitate e
filing by corporate entities and access to
corporate data statutorily placed in the public
domain
 FOREIGN TRADE
POLICY
 Unshackling of controls and creating an atmosphere
of trust and transparency to unleash the innate
entrepreneurship of our businessmen, industrialists
and traders.
 Simplifying procedures and bringing down transaction
costs.
 Neutralizing incidence of all levies and duties on
inputs used in export products, based on the
fundamental principle that duties and levies should
not be exported.
 Facilitating development of India as a global hub for
manufacturing, trading and services.
 Identifying and nurturing special focus areas which
would generate additional employment opportunities,
particularly in semi-urban and rural areas, and
 The new Policy envisages merchant exporters and manufacturer
exporters, business and industry as partners of Government in
the achievement of its stated objectives and goals.
 A new scheme called the Vishesh Krishi Upaj Yojana (Special
Agricultural Produce Scheme) for promoting the export of fruits,
vegetables, flowers, minor forest produce, and their value added
products has been introduced
 Funds shall be earmarked under ASIDE for development of Agri
Export Zones (AEZ)
 Specific funds would be earmarked for promoting handloom
exports.
 New Handicraft SEZs shall be established which would procure
products from the cottage sector and do the finishing for
exports.
 Import of gold of 18 carat and above shall be allowed under the
replenishment scheme.
 Duty free import entitlement of specified items shall be 5% of
FOB value of exports during the preceding financial year.
 FOREIGN TRADE POLICY
SUPPLEMENT
 Indian commerce minister, Kamal Nath has
proposed new trade initiatives and has
continued with the thrust on exports in his
Annual Supplement to Foreign Trade Policy
2004-09.

HIGHLIGHTS OF THE FTP ANNUAL

SUPPLEMENT
• Exports zoom to record high of $ 80 billion in
2004-05 with highest ever growth rate - India
on way to doubling her share in world trade
 Measures to enhance competitiveness of
India's manufacturing sector and employment
generation
 Big thrust on agri exports -- removal of export
cess on agri and plantation commodities
proposed
 Additional EPCG benefits for agriculture and
SSIs - EPCG for retail sector operationalised
 New initiatives on infrastructure to reduce
congestion at major ports - EPCG extended to
minor ports, ICDs and CFs
 Big leap towards procedural simplification and
 Imports under 'served from India' scheme to
allow bulk sourcing
 Marine sector gets special attention in the
wake of tsunami
 Setting up of inter-state trade council
proposed
 India's exports in the very first year of the
comprehensive Foreign Trade Policy
announced by him last year touched a record
high of US $ 80 billion showing the highest
ever export growth rate of 24% (in US dollar
terms) surpassing the target set for the year.
 In a major leap towards paperless trading,
Nath has announced a series of initiatives in
the direction of moving towards reduced
paper transactions through procedural
simplifications. A single common application
form called "Aayaat Niryat Form" is being
introduced, reducing the documentation
requirements by more than 60%.
 Further, three categories of advance licences
are being merged into a single category and
annual advance licence, which was available
only to status holders, will now be available to
all exporters with some export performance.
 In the area of service exports, to enable
service providers to upgrade infrastructure in
their associate companies, goods imported
under the "Served from India" Scheme will be
transferable within the group companies and
managed hotels. This provision would allow
bulk sourcing and better utilization of the
entitlement.
 In order to develop niche market with distinct identity
for quality products, Indian commerce minister said
that the Government would develop a trademark for
Handloom also on lines similar to 'Woolmark' and
'Silkmark'.
 To promote export of 'Minor Forest Produce' products
Shellac Export Promotion Council has been
designated as a nodal EPC for minor forest produce.
 The Target Plus Scheme aimed at rewarding
incremental exports would continue in the year 2005-
06 with such modifications as will be notified,
separately for preventing misuse, if any.
 All Export Promotion Council (EPCs) shall open a
separate Cell to involve and encourage youth and
women entrepreneurs in the export effort
 EXIM POLICY

 EXIM POLICY 2002-07

 EXIM POLICY 2004-09
 NEW TELECOM POLICY
1999
 The Government of India (Government) recognizes
that provision of world class telecommunications
infrastructure and information is the key to rapid
economic and social development of the country.
 It is Anticipated that going forward, a major part of
the GDP of the country would be contributed by this
sector.
 In 1994, the Government announced the National
Telecom Policy which defined certain important
objectives, including availability of telephone on
demand, provision of world class services at
reasonable prices, ensuring India's emergence as
major manufacturing / export base of telecom
equipment and universal availability of basic telecom
services to all villages.
 It also announced a series of specific targets to be
achieved by 1997. As against the NTP 1994 target of
provision of 1 PCO per 500 urban population and
coverage of all 6 lac villages, DoT has achieved an
urban PCO penetration of 1 PCO per 522 and has
been able to provide telephone coverage to only 3.1
lac villages. As regards provision of total telephone
lines in the country, DoT has provided 8.73 million
telephone lines against the eighth plan target of 7.5
million lines.

 NTP 1994 also recognized that the required resources

for achieving these targets would not be available
only out of Government sources and concluded that
private investment and involvement of the private
The objectives of the NTP 1999 are as under:
 Strive to provide a balance between the provision of
universal service to all uncovered areas, including
the rural areas, of and the provision high-level
services capable of meeting the needs of the
country's economy
 Encourage development of telecommunication
facilities in remote, hilly and tribal areas of the
country;
 Create a modern and efficient telecommunications
infrastructure taking into account the convergence
of IT, media, telecom and consumer electronics and
thereby propel India into becoming an IT
superpower;
 Convert PCO's, wherever justified, into Public
Teleinfo centres having multimedia capability like
ISDN services, remote database access,
government and community information systems
etc.
 Strengthen research and development efforts in the
country and provide an impetus to build world-class
manufacturing capabilities
 Achieve efficiency and transparency in spectrum
management
 Protect the defence & security interests of the
country
 Enable Indian Telecom Companies to become truly
global players.
 Make available telephone on demand by the year
2002 and sustain it thereafter so as to achieve a
teledensity of 7 by the year 2005 and 15 by the
year 2010
 Encourage development of telecom in rural areas
making it more affordable by suitable tariff
structure and making rural communication
mandatory for all fixed service providers
 Increase rural teledensity from the current level of
0.4 to 4 by the year 2010 and provide reliable
transmission media in all rural areas
 Achieve telecom coverage of all villages in the
country and provide reliable media to all exchanges
by the year 2002
 Provide Internet access to all district head quarters
by the year 2000
 Provide high speed data and multimedia capability
 The New Policy Framework would look at the
telecom service sector as follows –
 Cellular Mobile Service Providers,
 Fixed Service Providers and
 Cable Service Providers, collectively referred
to as 'Access Providers'.

 Radio Paging Service Providers

The Radio Paging Service Providers (RPSP)
shall be permitted to provide paging services
within their service area of operation
 Public Mobile Radio Trunking Service
Providers
Direct interconnectivity between licenced
PMRTSP's and any other type of service
provider in their area of operation shall be
permitted after examining the legal
implications in view of the CMSP licences
 National long distance service beyond service
area to the private operators will be opened
for competition with effect from January 1,
2000
 For applications like tele-banking, tele-
medicine, tele-education, tele-trading, e-
commerce, other service providers will be
 On line Electronic Commerce will be encouraged so that
information can be passed seamlessly
 The Government has decided to separate the policy and
licensing functions of DoT from the service provision functions
as a precursor to corporatisation
 The corporatisation of DoT shall be done keeping in mind the
interests of all stakeholders by the year 2001.
 Provide voice and low speed data service to the balance 2.9 lac
uncovered villages in the country by the year 2002 Achieve
Internet access to all district head quarters by the year 2000
Achieve telephone on demand in urban and rural areas by 2002
 Setting up an empowered Inter-Ministerial Group to be called as
Wireless Planning Coordination Committee (WPCC) as part of the
Ministry of Communications for periodical review of spectrum
availability and broad allocation policy.
 The Telecom Regulatory Authority of India (TRAI) was formed in
January 1997 with a view to provide an effective regulatory
framework and adequate safeguards to ensure fair competition
and protection of consumer interests
 AMENDMENT TO NTP 1999
Government, in the public interest in general and
consumer interest in particular and for the proper
conduct of telegraphs and telecommunications
services, has decided that there shall also be the
following categories of licences for
telecommunication services:
 (i) Unified Licence for Telecommunication Services
permitting Licensee to provide all telecommunication/
telegraph services covering various geographical
areas using any technology;

(ii) Licence for Unified Access (Basic and Cellular)

Services permitting Licensee to provide Basic and /or
Cellular Services using any technology in a defined
 NATIONAL MINERAL
POLICY
 To explore for identification of mineral wealth
in the land and in off-shore areas;
 To develop mineral resources taking into
account the national and strategic
considerations and to ensure their adequate
supply and best use keeping in view the
present needs and future requirements;
 To promote necessary linkages for smooth
and uninterrupted development of the mineral
industry to meet the needs of the country;
 To promote research and development in
minerals;
 To ensure establishment of appropriate
educational and training facilities for human
resources development to meet the
manpower requirements of the mineral
industry;
 To minimise adverse effects of mineral
development on the forest, environment and
ecology through appropriate protective
measures; and
 The Strategy for development of any mineral
should naturally keep in view its ultimate end
uses. The guiding principle in the strategy of
development of any mineral or mineral
deposit at any location shall ordinarily be the
economic cost.
 The national inventory of mineral resources
including those of ocean bed will be based on
a comprehensive review of exploration data.
 Mine development and mineral conservation
as governed by the rules and regulations will
be on sound scientific basis, with the
regulatory agencies closely interacting with
R&D organisation, scientific and professional
 Studies for fixation of productivity norms and goals
will be taken up to promote productivity of men,
machines and to improve the consumption norms of
fuel and materials.
 Research organisations, including the National
Mineral Processing Laboratories of the Indian Bureau
of Mines should be strengthened for development of
processes for beneficiation and mineral and
elemental analysis of ores and ore dressing products.
 As an important conservation measure, recycling of
metallic scrap like steel, copper, aluminium, zinc,
lead etc. shall be encouraged and facilitated by
fixation of appropriate standards for classification and
grading of scrap and adoption of fiscal measures.
 Indigenous industry for manufacture of mining
equipment and machinery shall be
strengthened.
 Existing facilities for basic and specialised
training shall be constantly reviewed and
upgraded from time to time to ensure that
adequately trained manpower at all levels is
available for the development of mines and
minerals industries.
 Information about technological changes
leading to substitution of the mineral or the
products made out of such a mineral shall be
compiled and disseminated from time to time
 Steps shall be taken to facilitate the financing
of mine development and also of exploration
integral to the mining project.
 Induction of foreign technology and foreign
participation in exploration and mining for
high value and scarce minerals shall be
pursued.
 To facilitate the choice or order of land use
keeping in view the needs of development as
well as needs of protecting the forests,
environment and ecology.
 Steps will also be taken to minimise the
adverse impact of mining on the health of
 Whenever mine closure becomes necessary, it
should be orderly and systematic and so
planned as to help the workers and the
dependent community rehabilitate
themselves without undue hardship.
 While compensation is generally paid to the
owner for the acquisition of his land, efforts
shall be made to ensure suitable rehabilitation
of affected persons.