Lok Sabha Question No. 1734 (UNSTARRED), answered on 2022-07-27
Subject: Special Purpose Vehicle/Special Purpose Entity
Ministry: COMMERCE AND INDUSTRY
Asked by: Rajendra Dhedya  Gavit, Unmesh Bhaiyyasaheb Patil, Ramesh Chand Bind, Aparupa  Poddar

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA

UNSTARRED QUESTION NO. 1734.

TO BE ANSWERED ON WEDNESDAY, THE 27 TH  JULY, 2022.

## SPECIAL PURPOSE VEHICLE/SPECIAL PURPOSE ENTITY

## 1734.  SHRI RAJENDRA DHEDYA GAVIT:

SHRI UNMESH BHAIYYASAHEB PATIL:

SHRI RAMESH CHAND BIND:

SHRIMATI APARUPA PODDAR:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has initiated projects under Special Purpose Vehicle/Special Purpose Entity (SPV/SPE) during the last three years;
- (b) if  so, the details thereof along with the funds earmarked therefor during each of the last three years, project-wise;
- (c) the performance of Indian manufacturing sector in the recent years;
- (d) whether the  level  of  current  account  deficit  and  corresponding  adverse  balance  of payments position need immediate remedial measures by the Government; and
- (e) if so, the measures taken by the Government in this regard during the last two years?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री सोम प्रकाश ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b): Yes,  during  the  last  three  years, Department for Promotion of Industry & Internal  Trade  (DPIIT)  has  incorporated  three  Special  Purpose  Vehicles (SPVs) as part of National Industrial corridor Development Program with details at Annexure-I
- (c): The industrial growth as measured by Index of Industrial Production (IIP) which comprises of three sectors viz., Mining, Manufacturing and Electricity, for last 5 years is at Annexure-II
- (d) & (e): The current account in the Balance of Payments changed from a surplus of 0.9 per cent of GDP in 2020-21 to a deficit of 1.2 per cent of GDP in 202122 on the back of rising economic activity in India as the nation completed its economic recovery from the pandemic induced contraction of GDP. The current account deficit (CAD) was also a result of rising global commodity prices caused by disruption in supply chains the world over, initially triggered

by  lockdowns  imposed  to  fight  the  pandemic  and  subsequently  by  the Russia-Ukraine conflict. As the geopolitical conflict persists keeping global commodity  prices,  including  crude  oil  prices  elevated,  the  CAD  of  net commodity importers including India, continues to remain under stress.

In order to restrain the increase of CAD, Government has raised the duty on gold imports from 10.75 per cent to 15 per cent. Further, to finance the CAD, the RBI has implemented temporary measures to attract dollar inflows into the country. These include exempting foreign currency deposits from some regulations applicable to domestic deposits, raising interest rates on foreign deposits,  easing  foreign  portfolio  investment  into  debt  instruments  and increasing flexibility for borrowing overseas by banks and other entities.

*****

## ANNEXURE-I

## ANNEXURE REFERRED TO IN REPLY TO  PARTS (a) & (b) OF THE  LOK SABHA UNSTARRED QUESTION NO. 1734 FOR ANSWER ON  27.07.2022

|         |                                                             |                       | Project                                                                                                                                                                               | Equity structure   | Equity structure   | Purpose   | Financial Year   | Financial Year   | Financial Year   | Financial Year   | Total   |
|---------|-------------------------------------------------------------|-----------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------|-----------|------------------|------------------|------------------|------------------|---------|
| Sl. No. | Name of the SPV                                             | Date of Incorporation |                                                                                                                                                                                       | (%)                | (%)                | Purpose   | 2019- 20         | 2020- 21         | 2021-22          | 2022-23 (up to   |         |
|         |                                                             |                       |                                                                                                                                                                                       | Centre (NICDIT)    | State              |           |                  |                  |                  | 22.07.22)        |         |
| 1       | CBIC Ponneri Industrial Township Limited                    | 30.07.2022            | Industrial Node at Ponneri in Tamil Nadu under Chennai Bengaluru Industrial Corridor (CBIC)                                                                                           | 50%                | 50%                | Equity    | -                | 2.50             | -                | -                | 2.50    |
| 2       | The Kerala Industrial Corridor Development Corporation Ltd. | 21.04.2021            | Industrial Node at Palakkad in Kerala under Extension of CBIC to Kochi via Coimbatore                                                                                                 | 50%                | 50%                | Equity    | -                | -                | 2.50             | -                | 2.50    |
| 3       | Rajasthan Industrial Corridors Development Corporation Ltd. | 15.03.2022            | Industrial Node at Khushkhera- Bhiwadi-Neemrana Investment Region (KBNIR) and Jodhpur-Pali- Marwar Industrial Area (JPMAI) in Rajasthan under Delhi Mumbai Industrial Corridor (DMIC) | 49%                | 51%                | Equity    | -                | -                | -                | 4.90             | 4.90    |
|         | Total                                                       |                       |                                                                                                                                                                                       |                    |                    |           | -                | 2.50             | 2.50             | 4.90             | 9.90    |

(Source: National Industrial Corridor Development and Implementation Trust)

## ANNEXURE-II

## ANNEXURE REFERRED TO IN  REPLY  TO    PART  (c)  OF  THE    LOK  SABHA UNSTARRED QUESTION NO. 1734 FOR ANSWER ON  27.07.2022

| IIP General and Sectoral Indices for last 5 years   | IIP General and Sectoral Indices for last 5 years   | IIP General and Sectoral Indices for last 5 years   | IIP General and Sectoral Indices for last 5 years   | IIP General and Sectoral Indices for last 5 years   | IIP General and Sectoral Indices for last 5 years   |
|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|-----------------------------------------------------|
|                                                     | 2017-18                                             | 2018-19                                             | 2019-20                                             | 2020-21                                             | 2021-22*                                            |
| Mining                                              | 104.9                                               | 107.9                                               | 109.6                                               | 101.0                                               | 113.3                                               |
| Manufacturing                                       | 126.6                                               | 131.5                                               | 129.6                                               | 117.2                                               | 131.0                                               |
| Electricity                                         | 149.2                                               | 156.9                                               | 158.4                                               | 157.6                                               | 170.1                                               |
| General IIP                                         | 125.3                                               | 130.1                                               | 129.0                                               | 118.1                                               | 131.6                                               |

| IIP General and Sectoral Growth rate(in%) for last 5 years   | IIP General and Sectoral Growth rate(in%) for last 5 years   | IIP General and Sectoral Growth rate(in%) for last 5 years   | IIP General and Sectoral Growth rate(in%) for last 5 years   | IIP General and Sectoral Growth rate(in%) for last 5 years   | IIP General and Sectoral Growth rate(in%) for last 5 years   |
|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
|                                                              | 2017-18                                                      | 2018-19                                                      | 2019-20                                                      | 2020-21                                                      | 2021-22*                                                     |
| Mining                                                       | 2.3                                                          | 2.9                                                          | 1.6                                                          | -7.8                                                         | 12.2                                                         |
| Manufacturing                                                | 4.6                                                          | 3.9                                                          | -1.4                                                         | -9.6                                                         | 11.8                                                         |
| Electricity                                                  | 5.4                                                          | 5.2                                                          | 1.0                                                          | -0.5                                                         | 7.9                                                          |
| General                                                      | 4.4                                                          | 3.8                                                          | -0.8                                                         | -8.4                                                         | 11.4                                                         |

(Source: Economics Statistics Division, National Statistic office, Ministry of Statistics and Program Implementation)