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Bihar elections - the Rajaji formula worked Another Indian music maestro at the UN Make standards certification mandatory... A glass full of corruption The ‘Jayanthi Tax.’ Pharma – overdose of copying Towards speedy justice Naidu will soon build a new Hyderabad Build close rapport with business leaders A Grand Finale for SN’s MS centenary at the US… L&T: focus on infrastructure and more infrastructure… Online not in line with brick and mortar businesses... Funding the un-funded Sweet news for TN sugar mills When small is no larger beautiful.. The rise and fall of Annamalai University Wanted: a second airport for Chennai Colour-Chem’s colourful KRVS Tihar, Puzhal not different from Parappana Agrahara Tribute The Gulf aviation boom Convulsions in The Hindu Tatas moving out of urea production... Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Noble nonagenarians... 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Tax agriculture SoA @ 80 The Ports’ Pasha expands into Tamil Nadu Nuclear power at the nucleus Secularism and anti-Hinduism Shaming of Tamils by Tamil farmers at Delhi Vibrant Gujarat GM Technology at last! PC’s preference for professionals London, London Narayan Not just in-laws (and outlaws); they’ve renowned academics at the helm! Permanent secretariat for TN GIM More heat than light Shale gas and its shallow future Demise of a media baron... The why of tax incentives TELANGANA at last…BUT TN-leverage strength of BHEL, NLC... Insurance companies bleeding, yet no decision on increasing FDI limit! F C Kohli - his concerns all embracing Measuring roof tops in terms of KW/MW Infrastructure funding – lessons learnt For whom the bell tolls? Which side are you, Montek? CII projects higher growth… Revving up the manufacturing sector Return to king coal for urea... Liberal imports idling indigenous capacities Parliament in paralysis... Streamlining mandatory third party cover Strengthen the base... CRS, a jewel among managers, is no more. EVM is tamper-proof Small units prefers to remain small... Alexa – Talking Wikipedia S Ramanathan – a versatile musician, musicologist There was flood of milk. Reason: no milk commissioner! When nations steal growth from one another… Modi and the lady to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines Poor quality of university VCs Discoms deserve better… Scientists urged to take up farmer-oriented research Quality silica from Neyveli GNS - 100: our first subscriber The ‘Ayyo-yes’ is no more Whistle-Stop Tour of Raghuram Rajan The power-full Hindujas A C Muthiah – his munificent bequeaths to science Cutting the nose to spite the face How Air-India loses customs... Robber barons everywhere Waning interest in public discussions… Adapt Vajpayee dinner diplomacy B H Kothari - a tribute Inflation: are we emulating Argentina and Brazil? Editor's Says A friendly business group Polls and promises Limit foreign borrowings to hi-tech, export potential projects... Come elections, come advertisements... Welcome thrust on trade in Modi’s foreign visits... No mega rail project for Tamil Nadu Diamond jubilee of Egmore Samskrt School When online building permits work…. Haul over the coal The Jan Dhan bonanza Where a state respects its litterateurs… Cement prices continue to rise… Focus on quality of power - its only around 170-180V Excel Generators provide the vital back-up A more liberated TN… Cleaning Ganga – relocate tanneries and install electric crematoria Bihar – Nitish Kumar adopts the Lalu model Road development slows down Boy, can you beat these? A professional at the helm of IRDA... Fall in crude prices help in oil sector reform Eternal support for capitalisation of PS banks Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai
 
Liberal imports idling indigenous capacities

Prime Minister Modi’s Make in India exhortation makes great sense. The country has capabilities to produce many of its requirements on its own. 

Unfortunately, policymakers do not spend the needed attention to ensure such capacities created are fully utilised. We see the spectacle of a large number of industrial units – steel, power equipment, cement, automobiles... performing to a fraction of their capacities. This depresses interest in investments for creating new capacity.  We have a grim situation.

BHEL recorded huge expansion of capacity to provide 20,000 MW of power equipment per annum. The Tiruchi unit and its satellites had a record production, valued around Rs 20,000 crore, during 2012-13. Other renowned companies like Mitsubishi, Toshiba and Alstom invested on creating capacity for power equipment manufacture that would enable the country to meet demand for such equipment in full.

Yet one witnesses a curious spectacle of China, Korea, Japan and other countries dumping their products into India at lower prices. In recent times we also witness Chinese companies successfully contesting contracts awarded to BHEL in the Madras High Court leading to the cancellation of orders placed on BHEL.

A similar spectacle is witnessed in regard to steel. The industry riding on the post 2000 boom made handsome investments. A capacity for around 115 million tonnes has been created; but simultaneously the clamour for imports has also increased. One witnesses again the sad spectacles of capacity created at great expense remaining under-utilised and exports on the increase.

Consistent with WTO commitments there is need for a mechanism to ensure indigenous industry is provided a measure of encouragement and even protection to perform to capacity. This in due course will lead to investments to expand capacity and hence support the Prime Minister’s Make in India slogan meaningful.

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