B.C. No. 79
ESTIMATES COMMITTEE *957-58
TWELFTH REPORT (SECOND LOK SABHA)
ACTION TAKEN BY GOVERNMENT ON THE RECOMMENDATIONS CONTAINED IN THE TWENTY-SECOND REPORT OF THE ESTI MATES COMMITTEE (FIRST LOK SABHA) RELATING TO NATIONAL INSTRU MENTS FACTORY, CALCUTTA.
LOK SABHA SECRETARIAT NEW DELHI April, 1958.
Price : Re. O'SO CONTENTS
Pagis
Compoudon of Com ii}ittee ...... (i) introduction »•••••••••• (ii) 1. R e p o r t ...... 1-2
2 . Recommendations that have been accepted by the Government 3— 10
3. Replies of the Government that have been accepted by the Commiaee 11— 21
Rmlies df the Government that have not been finally accepted by the Committee and are being p u r s u e d ...... 22— 39
A ppendices
1. Statement showing further action taken by Government on the re commendations made by the Paranjpe Comminee . 40— 44 I I X^opy of the Ministry of Commerce and Industry Resolution No. 40— LI (A) (57)/56 dated the 2nd June, 1956. 45*46 III Copy of the Mmistry of Production letter No. 6/52/55-Fy. II, dated the 23rd May, 1956...... 47— 5^
IV. Statement showing the delegation of additional Powers to General Manager after August, 1956. . . . 5^*52
'V . Analysis of the action taken by Govt, on the recommendations con tained in the Twenty-Second Report . . . 53 MEMBERS OF THE ESTIMATES COMMITTEE 1957-58 Shri Balvantray Gopaljee Mehta—C/tomrnni. 2. Shri S» A. Dange 3. Shri Jogendra Singh 4. Shri M ^ v ir Tyagi 5. Shri Satyendra Narayan Sinha 6. Shri Radha Charan Sharma Shri J^anhir Singh Chaudhuri i: Shri Gopalrao Khedkar 9. Shrimati Sucheta Kripalani 10. Shri R. R. Morarka 11. Shri M. Thirumala Rao 12. Shri ]. Rameshwar Rao 13. Shri C. R. Narasimhan 14. Shri Amjad All 15. Shri R. Ramanathan Chetdar 16. Shri Ahmed Mohiuddin* 17. Shrimati Renuka Ray 18. Shri Uma Charan Patnaik 19. Shri Raghubir Sahai 20. Pandit Dwarka Nath Tiwary 21. Shri Govind Malaviya 22. Shri R. L. Jaogde 23. Shri N. C. KasUwal 24. Shri Dodda Thimmaiah 25. Shri M. L. Dwivedi 26. Shrf A. E. T. Barrow 27. Shri V. P. Nayar 28. Shri R. K. Khadilkar 29. Shri B. K. Gaikwad 30. Shri Shraddhakar Supakar.
Secketariat Shri S. L. Shakdher — Joint Stcretay. Shri A. R. Shirali — Depu^ Secretary, Shri C. S. Swaminathan— Under Secreuay.
CcaiVd to be ■ Monbei on his appoinascnt as D^utjr Minister with cflca from and April, i9$i.
0) INTRODUCTION 1. the Chairman of the Estimates Committee having been authorised by the Committee, present this Twelfth Report of the Estimates Committee* of the Second Lok Sabha on the action taken by Government on the recommendations contained in the Twenty-Second Report of the Estimates Committee of the First Lok Sabha. 2. The Twenty-Second Report of the Estimates Committee of the First*Lok Sabha was presented to the House on die 19th Ma rch, 1956. 1 he Govej rment furnished their first replies to the recommendations pertaining to the National Instruments Factory on the 7/8th August, 1956 and furnished further information on the piogiess of action taken on the i8th September, 1957. A Sub- Committee of the Estimates Committee (1957-58) examined the replies on the 7th March, 1958. 3. The Report has been divided into four Chapters : I. Report II. Reconunendations that have been accepted by the Government. III. Replies of the Government that have been accq>ted by the Conmiittee. IV. Replies of the Government that have not been finally accepted by the Conmiinee and are b ^ g pursued. 4. An ilnalysis of the action taken by Government on die recommendations contained in the Twenty-Second Report is given at Appendix V.
BALVANTRAY G. MEHTA, New Delhi; Chairmm, The 12th Aprily 1958. Estimates Committee, CHAPTER I
REPORT
The Estimates Committee, in para 37 . af their Twraty-Second Beport commented on the unsatisfactory position-in regard to the National Instruments Factory being run as a department of Gov ernment and recommended the comt^y form of management for the Factory. The Committee are glai to note that the Government have accepted this recommendation and have formed a private limited company under the name of the National Instruments (Private) Limited and that the manag^ent of the Factory has been transferred to the company with effect from 2Sth June, 1957.
2. In para 8 of the Report, the Estimates Committee had recom* mended that the Report of the Paranjpe Committee ^ould be pub lished early and also that in all cases where a Committee ‘or an Officer was appointed by Government to examine a particular mat ter, prompt action should be taken to examine the report and to implement the decisions taken thereon. From the r^Ues„.it^is seen that the Government had set up another Coixuhitlee under the chairmanship of Dr. A. N. Khosla to examine tbe progress made so far in the manufacture of surveying, drawing and mathematical instruments in the country and to assess the country’s requirements of such instruments, to determine the gap between requirements and manufacturing capacity, to review the existing capacity in the private and public sectors and to examine other alli^ questions. It is observed that these terms of reference of the Khosla Com mittee cover a wide field and as such much of the groimd initially covered by the Paranjpe Committee Report woiild have been gone all over again. The draft of the final report of the Khosla Com mittee was stated to be xmder the consideration of the Government The Estimates Committee do not, therefore insist that the Paranjpe Committee Report, which is nearly ten years old, should be pub- luihed now but desire that the Report of the Khosla Committee and a statement showing action taken by Government on that report should be laid on the Table of the Lok Sabha. That statement should also contain an upto-date review of the action taken on the Paranjpe Committee Report. They also hope that in all cases where a Committee is appointed by Government to examine a particular matter, prompt action would be taken to examine the Report and implement the decisions taken thereon as also to publicise the re port and place copies in the Parliament Library, except when it is inexpedient to do so. 3. In para 38, the Estimates Committee recommended that in ■order to enable a comparison to* be made of the cost of production of the^ sdentiflc instruments in the factory with the cost of the manufacture in other concons, attempts should be made to work out the approximate cost of production from the sale price of the* private manufacturers making necessary deduction therefrom, for* such known factors as customs duty, transport cost etc., and a small amount on accoimt of profit. The Government have stated in reply that the overheads in the State imdertaking are necessarily some what high because of the higher degree of technical supervision in the production of precision instruments. Further it is said that a comparison between the products of a State undertaking and of the {Hivate sector, is not very apt, especially in th's case, because of the distinction between a well established and well supervised precision instruments factory and small scale industries run as cottage indus^es, and manufacturing only some of the less precise items manufactured by the State undertaking. Under one of its terms of reference, the Khosla Committee was required to suggest, in relation to the pro^jonme of manufacture in the private and public sectors, the priorities to be followed by the- Indian Standard Institution in prescribing certain quality standards and specifications for the article manufactured and imtil such standards were prescribed by the Institution, to suggest interim standards which should be observed. The Committee, therefore,, feel fiat difficulties of comparison of costs due to difference in standards would soon disappear. It was the main intention of the- Committee in making the earlier recommendation that the costs- should be kept down to the minimum by the Factory. They hope- that by following the company form of management, effective cost control would be introduced and that constant efforts would b«: made to keep the cost of production at the lowest possible level. S - a | ” “ , j j 5 S | 2 S S 6 §.2 S-a^S «
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U' ^ §c o& sligll •-i|-=i|i E. b o •&=§fis.s cSsa rS S a.'S-S i B 8 § 2^ - 2 5'o g | l i S S l l 3 APPENDIX I :Slta(i0fMMt dKWing further action taken on the recommendations made hy the Paranjpe Committee •No. Recommendation Ftirther aaion taken I 2 3 I. The MIO should be sc re- The recommendacion is being organised that in its new implemented as explained in form It will be able to satis- the late Ministry of Production faaorily serve the following letter No. i 5/47/55*Fy* purposes; dated 17-3-56. (t) to develop and numufaaure scientific instruments of all kinds, («) to serve as a model to other industrial concerns for efficient and precision workmanship, (tit) to assist Indian manu- faaurers of scientific in struments by placing at their disposd concrete and expert advice in matters of development, produc tion and test, and (te) to maintain a special sec tion within itself solely devoted, if necessary, to examine and serve the needs of the Defence De> panment. The MIO should be placed ' Government iiave formed • under an Advisory Board. private limited company under the name of tiv A Board of management should National Instruments replace the Superintendent. Ltd., under the Companies A a , 1956 to execute and administer the progrvnme of the factory. 41 The following officers should The management of the faaory be appointed with duties has been ta l^ over by the specified: Board of Direacrs as «- plained above. Chairman of the Board of Ma- nagemmi : General Supervision and control. Developmeru Manager : to be Recommendation implemented, incharge of development • and design. Production Manager : to be in The services of the Produaion charge of produaion and Manager, a foreigner, have manufacture of new ins been dispersed with since a truments. year. Commercial Manager ; to be Recommendation implemented, incharce of commercial relations, provisioning of materials etc. Executive officer: to be incharge Implemented by appoint- of Administration and m cnt of an Administrative Accounts. Officer. Store Holder : to be responsible Implemented. for provisionirg and maintenance of stores. Accounts Offcer : to be incharge Implemented. of accounts. All stores should be ccntralised No further action is necessary snd sub-stores should be as recommenda ion has been maintained in different sec- already put into operation, tions to facilitate speedy work. The latest method of costing and With a view to streamlining fixing overhead charges the costing procedure, the should be followed. Chief Cost Accounts Officer to the Govertunent of India had made cenain sugges tions. Thr«e on which ag reement has reached have been implemented idready. In regard to the others wlu^ are coimected with woria studies, action has been taken to set up a study team of experts in octtaboration with the Indian Telqjhone Irdustres Ltd., Bw^lore. After the study is completed the . recommendation will be fully implemsntcd. A new factory should be located The factcry building has on a speciaJ land where suffi been nearly completed except cient space for workshop and for air conditioning and residential accommodation provision of lifts. Gradual could be provided for the shift irg is in progress. The workers of the MIO. schemc of pro\+dirg housing accommodation for 45 % of the workers has tMxn acccptcd by the Government in principle but due to pau city of funds it cannot be implemented at present. 8. Some of the existing machiner>' Most of the replacement iM- which have run their life out chirer>‘ and balancing equip should be replaced by new ment have been rcceivcd machinerj'. and arc being installed in the new premises. Bottlenecks in the different With the corstruaion of new shops should be removed by factor>' buildings at Jadav- hiring additional accommo- pur Calcutta, the problem dation. has been solved. 10. Under the short term planning PriKluaion has already bee** all the instruments which were doubled. Full effect of th* being manufaaured by MIO re-organisation will be visible should be continued and the ot'.ly after la^se of some produaiiHi trebled in thiee titnc from the date of its years. completion. H i The instrtmients already manu The allocation of work between factured by private faaories the Government and private should be ascertained ar.d the faaories is under examina question of abandonirg their tion by • Ckonmittee cons manufacture by l.I.O . should tituted by the Ministry of be considered. Commerce and Industry under the Chairman»hip of Dr. A. N. KhMla. Final report is aw-aited. Under long term planning. The long term and short term inttrviDcrits icquired for plans are covered by (be FifSt csducBtion, research and and Second Five Year Ran s defer ce purposes shotud be The shon term planning manufactured. Detuls of the consisted of the reorgmtsa- long term T^iannirs should tion of the factopr which is be feady before the short nearing completion. As re> term plannirg is completed. gards the manufacture of the new Itemsincluded in the Second Five Year Plan, as a part of lorg term plan, please see remarks against item 7 para 14, tupra. 13. Arrangements should be made Please see remarics against item 4 by Government fcr the manu* para 11 above in r^ard to facture of different kinds of themanufacture of the raw materials by direaing optical ^ass. As to others, the several National Labora such as Bourden tubes, ther tories to concentrate their mometer tubings, thin walled attention on this. brass tubes, Teak wood (in replacement to Burma teak) and box wood for scales, efforts are being made to ?et them manufaaured locally or to find substitutes. 14. Government should I07 protec Import of a few types of ins tive tariff on import^ scien truments manufaaured in tific instruments or com- the countr>- has been com ptments if they are manu pletely banned and this factured indigenously. matter is annually reviewed to irclude any additional item, which is being/can be produced in ihe country. 15. Government should allow duty- Position remains the same a* free import of capital equip- explained in the late M inis^ me-'t and srir’tific instru of Produaion letter N a ments required for research 15/47'55-F y ., II. dated work. 17-3-57' 16. Government should make pro Advantages have been takm of vision fcr some of the tech different schemes of training nical staff of the M.I.O. to be under the G)lombo Plan, trained abroad. If this is not UNTAA etc. tc send employees possible, technicians from of the factory abrc^ for Germany should be imported training. Two German ex for short periods 00 con pens who were employed by tracts. the fiKtory have been re* placed. 44 17- The facilities available in the As explained in the late MIO should be utilised to Ministry of Psoduction provide suitable training to letter No, ‘•15/47/55-Fy. II, workmen. dated 17-3-56. l8. A training scheme as envisaged by the Committee should be implemented. 19. The produaion of instruments should be classified as a key industry. ao. Whatever system of wages is in As explained against recom vogue in similar Government mendation No. 20 of the shops should prevail in the Paranjpe Committee and sub M.I.O. mitted to the Estimates Com mittee in this Ministr/s statement forwarded with late Ministry of Production O.M. No. dated 17th i5/47/55-Fy- March, 1956. No further action seems to be neceMuy. APPENDn n G o v e r n m e n t o f n I d i a MINISTRY QF COMMERCE AND INDUSTORY N e w De l h i , The 2nd June, 19561. RESOLUTION No. 40-LI (A) (57)/56. The Government of India have decided tw- constitute a Cbminittee consisting of the following members to examine the^ progress made so far for the manufacture of Surveying, Drawmg, and Mathe^ matical I^truments in this country, and make recommendatioas for the fur>- ther development of this industry— 1. Shri A. N. Khosla, Vice Chancellor, Roorkee University ...... Chairman 2. The Director General, 'Ordnance Faaory, C a lc u tta ...... Member. 3. The Superintendent of Ordnance Factory, Calcutta ...... Do. 4. The General Manager, National Instruments, Factory, C a lc u tta ...... Do. 5. Tlie Development Commissioner, Small Scale Industries, New Delhi Do. 6. Shri V. N. Kohli, Direaor, Dirctorate General of Supplies and Disposals, New Delhi . Do. 7. Shri Lakman Prakash, Chairman, Cottage In.dustries Cooperative Society, Roorkee Do. 8. The Direaor, Indian Standards Institution, 19, University Road, Delhi . . Do. 9. Shri P. N. Narasiah, Deputy Develc^ment Officer, Office of the Development Commis sioner for Small Scale Industries, New Delhi ...... Secretary, 2. Without prejudice to th: general terir s of reference mentioned above the Committee would be particularly required ; (i; to assess the country’s requirements of these instruments ia different cat^ories and determine the gap between requirements* ^ and present manufacturing capacity. (2) to review the existing caiMdty of the surveying, drawii^ an N on : Since after the appointment o( this Committee the Chair* man had to proceed to States (m deputation as also the tub- comminees had not completed the collection of necessary data, the period 3 months ^fixed earlier had to be extended. APPENDIX ni No. 6/52/55-Fy. II G o v e r n m e n t o f n I d i a M IN IFY OF PRODUCTION D a t e d , e N w De l h i ; th0 2yrd May, 1956 To The General Manager, National fiistniments Faaory, 15, Wood Street, Calcutt»- Youis &ithfiilly» (NIZAMUDDIN ^HMEDT Depy^ Secretaty to the Goot. ef India. Oxpy together with copies of the enclosures referred to above for warded to the Ministiy of Finance (P.E.N. Diva.) with 3 spate copies with reference to their U.O. No. P-1766/56, dated 23>5~i956 for cooununication to die D.A.G. (P. C & I.)> Calcutta. (NIZAMUDDIN AHMED) Deputy Secutary to the Qoverrmmtt e f India^ A P P B M > B IV (yid4 s. No. 19) lAomw ilw Mmotien t f iMkkmal pnnbm to Qmurai Managtw ^ 4ttr August, 195/6. 3. BtteNithnmtt and Administrative Pouer. 1. Powen to create temporary posts for any specified period in the Industrial establishment and forsixmoBths m the Non-Industrial cadres o f 'Non-Gaisetted servants carrying a maximum scale of Rs. 500/- p. m. subjea to Rule TO of the Book of financial powers and concurrence of load Mimstiy <{ Finance. 2. Powers to jtrant all kmds of leave to non-gazetted emfdoyees except* ing special disability leave. 3. In refird to ^wers to make officiating arrangements in leave vacan cies in non-gazetted pests, the orders contained in the Miatstry of Finance •O.M. Nc. F-ia (45)-Est. III/51, dated 8-6-55 read with O. M. cf even No. dated 19-3-56 may be applied. 4. Powers to direct the Accounts Officer to inveaftigate cumins to arrear •of p^ etc. which have remained m abeyance for a period exceeding one year but not exceeding three years. 5. So far as class III posts are concerned, General Manager has been •delegBted full powers regarding appointments as well as penalties. a. COHtiffgient Charges. 1. PowcH to mcur recurring expenditure upto a limit of Rs. 500/- per ■annum and Rs. t^ooo/- per annum in case of non-recurring expendfture for the purchase of fixture and furnitures. 2. Powers to incur expenditure in respea of Electrici^, Gas and Water -cfaattes, sub)et.\ to requirements of the factory and availability of budget pro vision. 3. Powers to mak: necessary arrangements for fire proteaion by pro- -irision of fire fighting equipment and with necessary staff to operate them. 4. Powers to purdiase books and publications uptc a limit of Rs. 400/* per annum in case of recurring expenditure and upto fo . 1,000/- per annum .m caae of non-recurrirg expenditure. bines and other office ap* ; and Stationeiy, Calcutta. 6. Powers to incur contingent expenditure to a limit of Rs. per im um (recurriniO *nd Rs. 2,oooh in each case (non-recurring provided that the ibove limits would apply to ill cases of contin^t expenditure inddentd t o nmning of the fiKtory or office, where no specific limits have been laid •do»nlnAppendloca>*& *B*orApp. 8inG.E.R.Vcl. IL 91 Powers to sanction advertiseinent expenditure up to a limit oT lU. #D0/- per annum (recurring) and Rs. aooo/- per annum (non>iecunlng). The powers under item Nos. 3 (i) and 3(a) are delegated under the- Ministry's own powers. 8. Powers to incur expenditure for departmental experiments without wa financial limit subject to the availability of finds within an anaual De vmpment Grant to be provided for the purpose. 3. Pmehast qf Stores, Powers to make cash purchase of small quantities of stores sul^ect to • limit o f Rs. 300/- moodily from the imprest account. 4. MitedUmeous. 1. Powers to incur expenditure upto a limit of Rs. 3,00c/- per annum for the maintenance of truck, fire eng^e and pick up van. 2. This sanction is accorded in exercise of the powers ddegated to- Ministries under Ministry of Finance O. M. No. F-6(4)-E.G.F./55,. dated the 12-5-55 and subjea to period specified therein. 3. Idle time paymmtt. Powers to incur eaqienditure upto a limit of Rs. 1,000/- pjn. 4. Powers to write off losses of stores not due to theft, fiaud or ne^kcr iqyto a limit t i Rs. 1,000/- in each case. 5. MisedloMOus expeiidiuire. Powers to incur miscellaneous expenditure upto a limit of Rs. 1,000/- per annum on objects for which no scale or limit is prescribed any Act^ Rules, Code or Orders, e^., expenditure on emertainments on special occKi.- aioDS vit., viait o f a tton- Analj^of the aetim taken by Government on the reeommendatiom < tabud OH the zand'Repert of the Estimates Committges {firtt Loh Sabha)^ « 1. Total nutaaber of recommendations . jo 2. Recommendations accepted fully by the Government No...... 9 Percentage to t o t a l ...... 30 percett. 3- Reomynendations accepted by the Govern ment partly or with some modifications No...... 3 Percentage to to ta l...... 10 percent.- 4. Recommendations noc accepted by the Gov ernment but replies in respM of which have been accepted by the Committee No...... 6 Percentage to t o t a l ...... 20 percent. 5. Recommendations not accepted by Government and pursued by Committee (including those which are still under consideration by Gov- flR u n e n t) ...... No...... Percentage to total .... 40 peroenl^ S3 Printed at the Parliamentary Wing of the Govkrnmeni of India Press. N e w D e lh i a n d Published by the Lok Sasha Seci^etakiat under Rule 382 OF the Rules of Procedure and Conduct or Business in Lok Sarha (F i f t h Ed i t i o n )