India has also consistently buttressed UNIDO's technical assistance support to developing countries. It currently pledges an annual contribution of $ one million to the Industrial Development Fund. Apart from funding a number of technical assistance projects in India, the amount is used to meet the needs of other developing countries in transferring Indian technology and know-how.

The UNIDO Office in India, is the main vehicle for providing UNIDO technical support at the country level. Its main responsibility is to develop, coordinate and support the overall cooperation between UNIDO and the Government of India, the academic community, the private sector and civil society for promoting industrialization. This includes the development of programmes for sustainable industrial development, resource mobilization at the country level and collaboration with various development partners (UN system, bilateral and multilateral agencies). The India office also covers Bhutan and Maldives and supervises the UNIDO focal points in Sri Lanka, Nepal and Bangladesh.

UNIDO has successfully implemented 325 projects in India in the last three decades since 1966. Currently, UNIDO has 31 projects in India with a total budget of US$ 27.1 million. Nine of which are regional, interregional or global projects with a budget of $ 11 million. Between 1997 and date, 22 projects with a total budget of US$ 20 million were completed. In addition, there are 35 pipeline projects to be finalised and resource mobilized within the next 3 years.

>Our support services in India are primarily focussed on investment and technology promotion, institutional capacity building, small and medium enterprise development, environmentally sustainable industrial development, including transfer of environmental technologies and promoting technical and economic cooperation between India and other developing countries.

Funding of programmes

UNIDO is a technical support organisation and not a funding agency and relies entirely on mobilizing resources for its technical cooperation programme. With regard to ongoing projects, 45% of the budget is financed by UNDP; 31 per cent by bi-lateral donor agencies; 5 per cent under Montreal protocol; 9 per cent by India’s contribution to the Industrial Development Fund and 6 per cent from non-India Industrial Development Fund.

WHAT’S UP !

The International Center for Science and High Technology of UNIDO is organising two workshops on

" Combinatorial Technologies-Awareness building and familiarization for Decision Makers" and "Methods, Applications and Economics of Combinatorial Chemistry and Combinatorial Technologies in Hyderabad on 23-24 October and 26-31 October 1998 respectively. The main objective of the workshop is to build awareness on industrial applications of CC/CT and provide basic training and information in this field. About 30 – 40 participants are expected to attend.

5- 6 November, 1998 – A two day workshop on the cluster development programme to discuss the cluster programme. The outcome of the workshop will provide the basis for discussion and review of the programme at the National Advisory Committee meeting in Bangalore on 7 November 1998.

4 – 6 December, 1998 Intechmart Gujarat - Ahmedabad. UNIDO in association with the Ministry of Industry, Government of India, State Government of Gujarat and Confederation of Indian industry is organizing Intechmart for Gujarat to promote business alliances between Indian and Foreign companies. About US$ 3.5 billion worth of projects in Agro-processing, Chemicals & Petrochemicals, Engineering, Infrastructure, Electronics have been earmarked for Joint ventures, technology transfer, technical support and financing. Investors from Singapore, Hong Kong, Japan, South Korea, U.K. Germany, Belgium, Netherlands, Denmark and Italy are expected to attend.

The Inter-Regional Centre for Entrepreneurship and Investment Training sponsored by UNIDO and the Government of India is organising the 9^th Training Programme on Industrial Project Preparation and Appraisal with special focus on woven Garment Sector from 4-23 December 1998 at the Entrepreneurship Development Institute of India, Ahmedabad, Gujarat, India. The seminar is designed for professionals engaged in promoting projects in the Garment sector, particularly those engaged in investment project preparation and appraisal in developing and LDCs.

19-20 March 1999 Intechmart West Bengal– Calcutta. In order to capitalize on the capabilities and potential of West Bengal, UNIDO, the Government of India, Confederation of Indian Industry and the West Bengal State Government are jointly organising intechmart West Bengal. Joint ventures, technology transfer, loans and other forms of collaboration will be sought in the following sectors: Electronics & Information technology, Metals and Engineering, Textile and Garments, Leather, Agro and Food Processing including packaging, Infrastructure, Chemicals & Petrochemicals and Services.

PROGRAMME/ACTIVITIES

Development and Transfer of Technology

One of the highlights of UNIDO's activities in India has been development of appropriate technologies and transfer of such technologies to industry. Research into technology development has been successful in a wide spectrum of area. This has lead to the creation of technical innovative capabilities providing the competitive edge to Indian entrepreneurs.

The industries where UNIDO's technology services have yielded tangible results include steel, newer fibers and composites, watch making and compressor technology. Other areas where research has been fruitful are in development of technology for production of synthetic rutiles, desalination processes for recovery of fresh water at refineries and coastal industries, production of bio-chemicals, photo-chemicals and steroid hormones.

Feasibility studies and investigations for development of specific industries has been another strong point in UNIDO's operations in this country. It has been able to finalise investigations needed to set up an industrial prototype plant for electrical metallurgical processing or ilmenite concentrates as well as for computer utilization in manufacturing industries. It has also been able to prepare reports needed to establish an industrial scale electrical smelting of sillimanite concentrates to aluminium-silicon alloys as well as schemes for producing synthetic oil from coal and for industrial usage of red-mud waste from bauxite processing.

The list of UNIDO feasibility reports also includes investigations to produce sulphur and sulphuric acid from Amjhore pyrite deposits, use of low grade rock phosphate, technical choice, and appraisal of appropriate metallurgical process routes and upgrading of technology of the Korba aluminium plant. These studies have helped improve the quality of investment projects and thus their profitability and long-term sustainability.

UNIDO has also played a substantial role in providing operational support to hone the competitiveness and efficiency of large number of Indian industries. An illustrative list for industries which have benefited from industry specific development programmes is as follows : synthetic resins and adhesive, aluminum silicon alloys, process engineering in petrochemicals and fertilizers, benification of low grade bauxite, metallurgical industry, textiles, electronics, pulp and paper production, agro industry, development of newer fibers and composites, hosiery knitwear industry, leather footwear, pesticides, asbestos, sponge iron, perfumes, non-ferrous metals, jute and textile machinery.

In providing a comprehensive umbrella of services for entrepreneurs, UNIDO has not forgotten the human element vital for the success of any venture. It has thus prepared a series of training programmes to develop the human resources needed for sustaining industrial growth. Training along with policy advice has been provided in several critical areas specifically tailored to meet Indian needs. The list of specific courses covers marketing and export promotion of industrial goods, technology transfer and technical training in specific industries like food processing, refractory products, modern tool design and manufacturing techniques, bagasse newsprint paper, environmental auditing and development of women entrepreneurs.

Integrated Investment Promotion Programme

UNIDO has developed an integrated technical assistance programme for investment and technology promotion. The primary goal of this programme is to gain access to foreign capital, technology, managerial skills and marketing as well as equipment. The integrated programme offers assistance at the policy, institutional and enterprise levels. At the policy and institutional levels, the Indian government and its institutions are provided with support in policy making and project identification. At the enterprise level, assistance is given directly to entrepreneurs through identification, formulation, appraisal and promotion of specific industrial projects with a view to attract investment and technology. The integrated investment programme in India is primarily involved in giving support at the enterprise level.

In India, UNIDO has already organized three national-level Investment and Technology promotion programmes described as Invesmarts and Intechmarts. These programmes were well received by industry and overseas investors. The success of these programmes led to the establishment of an Investment and Technology Promotion Initiative to consolidate gains made in the earlier programmes and to promote further events in various regions of India.

Results of these programmes :

1994-Invesmart

Only inward flow of investment in 247 projects. Attended by 216 foreign participants, 79 letters of intent with an estimate value of dollars 403 million were signed.

1995-Intechmart

Inward flow of both investment and technology. Attended by over 350 participants including 150 foreign companies. 28 letters of intent were signed and a total of 2850 business contacts were established.

1996-Intechmart

A new feature was the outward flow of technology from India to other developing countries. Attended by 660 Indian and foreign participants. 79 letters of intent were signed. 29 comprising outward flow of technology from India.

Investment and Technology Promotion Initiative

UNIDO's efforts to promote industrial cooperation between Indian and other developed and developing countries led to the setting up of the Investment and Technology Promotion Initiative. The programme's goal was mainly to help industries in developing countries gain access to foreign capital, technology managerial skills, marketing and equipment. The focus of ITPI's operations was on small and medium sector industrial units. This core area was identified since such enterprises needed more help to generate overseas investment and technology. They also have less access to international technology than large industries which are self-sufficient in tying up both foreign investment and availing of new technologies. On the other side, the overseas investors are similarly handicapped as there is far less information on the potential and capability of the small and medium sectors of Indian industry. The ITPI has been an instrument to spread this information to potential investors interested in these sectors. This level of support to small and medium companies is expected to upgrade their activities, make them more competitive in world markets and generate vital employment opportunities.

This Initiative was quite a success in organizing Intechmart programmes aimed at bringing foreign investors and technology providers together on a common platform with small and medium businesses in this country. Other developing countries interested in tying up with Indian companies also participated in the Intechmarts. Under this initiative two intechmarts were held, one for the Southern Region in Bangalore in 1997 and the other for the State of Madya Pradesh at Khajuraho, also in 1997. In Bangalore, more than 4000 one-to-one business meetings were held leading to signing of 47 letter of intent for investment and technology worth over US$ 300 million.In Khajuraho, there were more than 400 one-to-one business meetings resulting in 42 Memoranda of Understanding (MOUs) and letters of Intent worth more US$ 2 billion.

Institution Building

UNIDO has played a twin role in building up institutions supporting industrialization. Firstly, it has acted as a catalyst to provide support to existing institutions. Secondly, it has promoted the creation of new institutions needed to urgently to meet the requirements of industry seeking to transform itself to cope with a free market economy and the competitive pressures of such an environment. UNIDO has tried to supplement government initiatives in both cases by supplying services of international experts, installing equipment and transferring new technologies and know how.

UNIDO was associated with the International Centre for Genetic Engineering and Biotechnology (ICGEB) in 1983. The Centre is meant to foster international cooperation in biotechnology and genetic engineering for the benefit of developing countries through research, development and training. In its two laboratories, in Trieste and New Delhi, the Centre has achieved breakthroughs in AIDS and hepatitis diagnosis and in developing a peptide with the potential to become a vaccine against hepatitis B. ICGEB has assumed an autonomous status in 1994.

UNIDO has been associated with a Lignite Fuel and Energy Research Institute at Neyveli in Tamil Nadu to ensure that the potential value of lignite is fully realised and also that problems arising from its use are minimised.

UNIDO is actively associated in the establishment of a Centre for Electronics Design and Technology Process Control and Instrumentation in Calicut.

A process cum product development centre at Kannauj has been established to assist the essential oils and perfumery industry to modernise and upgrade its technological status.

Another important project completed by UNIDO in the electronics sector was the setting up of a Centre for Precision mechanical Design and Associated Electronics Industry at Gurgaon in Haryana.

With tremendous strides made in the automobile industry in recent years, an Institute for Auto parts technology has been set up at Ludhiana with UNIDO support. It will aim at improving the quality and reliability of automotive components manufactured by small scale producers.

A programme for the improvement of the glass industry is being implemented in Firozabad through the establishment of a centre to deliver technical advisory and training services.

UNIDO was instrumental in strengthening the handmade paper industry in Jaipur to assist the industry to produce high quality handmade paper and the Pesticide Development Centre, Gurgaon to assist the pesticide industry in developing, promoting safer, efficient and economic indegneous technologies for new generation pesticide formulations.

Strengthening the training capability of the Central Institute for Plastic Engineering and Technology, Gurgaon has also benefited from UNIDO’s technical support.

UNIDO is executing a project to facilitate the establishment of a Metals and Plastics Industries Service and Training Centre in Goa with the objective of providing support to small-scale industries in the region.

Clean Industry

As part of UNIDO's reshaping of priorities, the agency is stressing the importance of Environmentally Sustainable Industrial Development (ESID).

The emphasis on ESID and clean production techniques in UNIDO projects has emerged from the experience of industrialised countries over the last two decades. These countries have found that "end-of-pipe" pollution control can only be a short term approach to industrial environmental management. The UNIDO's ESID strategy, on the other hand, envisages clean production by reducing pollution generation at source and often with enhanced profitability.

The other benefits of clean production include better work environment, improvement in production quality, more environment-friendly image of industry and even creation of new market opportunities. Compliance with environmental regulations becomes easier and cheaper.

ESID concept is being translated into a host of projects in this country. One of the most important is the National Cleaner Production Centre being set up in cooperation with the National Productivity Council. The NPC was selected as the host institution by UNIDO and the United Nations Environmental Programme (UNEP). The NCPC of India is amongst twelve NCPCs in the world.

NCPC's mission is to encourage cleaner production in small and medium industrial enterprises to ensure sustainable development. It aims at demonstrating the clean production concept in Indian industries especially small scale units, conduct demonstration projects and training programmes, disseminating information on cleaner production and carrying out policy level intervention. The impact of the programme and the need to enhance outreach capacity has led to the establishment of Regional Cleaner Production Centres in collaboration with State Governments of Karnataka and Gujarat.

Apart from the NCPC, several other programmes are being carried out with UNIDO support with the aim of attaining ESID in India. These include providing assistance in treatment of tannery effluents in Tamil Nadu; giving demonstrations to small units on reducing emissions and wastes; projects for eliminating ozone depleting substances in the solvent sector; conducting workshops on the Indian chemicals industry; instituting an area-wide environmental quality management plan for the Dhanbad Bokaro area in eastern India and applying market based instrument for pollution prevention in a case study of the steel sector.

Some of the environmentally friendly projects are being carried out in India as part of the umbrella schemes for the Asian region. These include a scheme for pollution control in the tanning industry in South East Asia, energy conservation systems for the food processing and plastic forming industry in India and Pakistan and the regional network on pesticides for Asia and the Pacific.

Technical Cooperation Among Developing Countries

South-South cooperation is increasingly becoming important to enhance flows of appropriate technology to developing countries. UNIDO has been taking the lead in inter-country, inter-regional and global programmes to promote such technology flows. The concept of Technical Cooperation among Developing Countries (TCDC) has thus become an integral facet of UNIDO’s operations. The basis of the concept lies in the fact that training costs are rising all over the world. It is essential to make effective and efficient use of less costly and more appropriate technologies, facilities and expertise available in developing countries. Not only does TCDC ensure that appropriate technologies are well meshed in developing countries it also encourages greater regional integration and linkages to provide mutual benefit.

As part of UNIDO's on-going activities in TCDC, it has undertaken a scheme to help tiny enterprises from Bangladesh, Egypt, Malawi, Malaysia, and the Philippines to negotiate with selected Indian small and medium enterprises. The project forms part of the programme for enterprise to enterprise cooperation for transfer of technology to small and medium industries in the engineering sector. UNIDO is the only agency which can provide the infrastructure to help such tiny units upgrade technology with appropriate levels of assistance from other developing countries like India.

Technical cooperation is also being carried out for the small scale sector where India's expertise can be gainfully put at the disposal of African countries. One such project plans to provide exposure to Indian policies, strategies and experience to improve national policies, organizational structure and administrative procedures in African countries seeking to promote development of small scale industry.

The establishment of industrial estates and science and technology parks is yet another area where cooperation between developing economies has been beneficial with UNIDO acting as the facilitator. A special study was carried out to formulate guidelines for such estate and parks in developing economies with a view to improve their effectiveness as instruments of regional development. The countries involved in the programme, apart from India, are Cyprus, Egypt, Kenya, Mauritius, Nepal, Korea and Turkey.

The India Intechmart held in February 1996 has also been focussed on technical cooperation between developing countries especially in small and medium scale industries in selected sectors which have potential for exports.

In addition, UNIDO has promoted participation by Indian industry in investors' forums held in other countries. For instance a delegation of 12 Indian industrialists was fielded to the Zanzibar Investors' Forum in April 1995 while 11 industrialists went to the Technology Market Forum in Zambia held in October 1995. A team of 11 Indian businessmen also attended the Techmart Comesa in Uganda.

UNIDO is similarly using workshops and seminars to boost exchange of information between developing economies. A workshop on utilising wastes and byproducts in meat and fish industries in Africa was organized in Madras in November in 1995. A seminar was also arranged by UNIDO at Wisitex'96 to encourage industrialists from foreign countries to engage in partnership or joint venture dialogue with interested Indian manufacturers. A specialised meeting on cooperation in technology monitoring in developing countries was held in November 1994 to focus on the need for both governments and industry to monitor technologies, especially new and emerging technologies, and to study the implications of technology trends.

FUTURE PERSPECTIVES

India and the UNIDO will continue to work together to support industries in meeting the challenges of globalisation and economic liberalization and to strengthen India’s south south cooperation. In this regard, UNIDO in consultation with the Government of India has identified five focus areas for UNIDO's future programme that are consistent with its business plan. These are :

* development of small and medium enterprises

* rural industrial development & women entrepreneurship

* industrial information, investment and technology promotion

* environment and energy

* innovation, productivity and quality for international competitiveness.

UNIDO studies show that small and medium industry along with rural industries play a key role in India's social and economic development. They contribute largely to output, employment, exports, and growth, but are not able to reach their full potential for various reasons. These include management problems, limited institutional finance, low technology levels and insufficient data. But it is these sectors which need to urgently adapt to meet the challenges and opportunities arising out of the economic reforms to meet the needs of the global economy. Such industries need major technical assistance support to reach the level of competitiveness essential to operate internationally. The support can be through better institutional arrangements, new policy directives and innovative approaches to make the small, medium and rural industries more responsive to the demands of a free market economy.

The changes in the Indian economy over the last five years have brought in investment and technology at a relatively fast pace but the benefits of these flows have mainly been reaped by large industries. Big industrial houses have the infrastructure to tie up collaborations with multinationals, as a result of which many large scale projects with advanced technology are being approved by the government. Smaller companies however, have a little access to foreign investment and technologies. It is these companies which urgently need inputs to improve productivity, quality and competitive levels.

UNIDO recognizes the constraints of small and rural industries. It wants to work in these sectors since the future strength and sustainability of industrial production is largely dependent on the extent to which innovations, new technology, higher productivity and quality improvements can be attained. UNIDO seeks therefore to become part of the country's thrust for building up the capacity to manage technological innovations in small and medium enterprises.

Industrial pollution is another area of concern for UNIDO. In India now many industrial operations posing threats to the environment are facing strictures from the judicial system and many are being forced to close down. Technical assistance support is needed on a priority basis for many of the small and medium enterprises to achieve the twin goal of cutting down industrial pollution and successfully remaining in business. Clean industry concepts are being looked for in a bid to ensure that Indian units can avoid "end-of-pipe" solutions in the long run.

UNIDO therefore envisages that new technical assistance activities will be demand driven, meeting industry's needs, in line with priorities established by the government and itself jointly. As a corollary to the five focus areas, there will be a greater focus on projects having an impact on poverty alleviation, employment generation, increased participation of women in development and ecologically sustainable industrial development.

To sum it up, UNIDO wants to work with the government, the private sector and other development partners to help provide a stimulus to industrial growth in the long run especially for sectors which lack the capacity to attract and absorb fresh investment and technologies. As in the past, UNIDO hopes to play a catalytic role by acting as an honest broker who brings together both the provider of investment and technology with the user industries. As in the past too, UNIDO hopes to make a lasting contribution to the Indian industrial scene by its support efforts.

REQUEST FOR UNIDO SERVICES

The Department of Industrial Policy and Promotion, Ministry of Industry, is the nodal agency designated by the Government of India for the coordination of UNIDO activities in India. Request for UNIDO services are channeled through them at the contact address below:

Director
Department of Industrial Policy and Promotion
Ministry of Industry
Udyog Bhawan
New Delhi - 110 011
Tel : 301 2651 Fax : 301 1770

The Resident Representative of the United Nations Development Programme in India may be contacted to seek UNIDO services using UNDP funds for technical assistance programmes in India. The address is :

Resident Representative
United Nations Development Programme
55 Lodi Estate, Post Box No.3059
New Delhi - 110 003
Tel : 462 8877 Fax 462 7612 Tlx : 31-61652
Email : fo.ind@undp.org Cable: UNDEVPRO, New Delhi

Requests for UNIDO services can be discussed with the UNIDO Representative at the following address:

UNIDO Representative
55, Lodi Estate, Post Box No.3059
New Delhi 110 003
Tel : 462 8877 464 3484 Fax : 462 0913 Tlx:31-61652
e-mail. unido.in@undp.org

In order to widen the scope and spread of UNIDO activities in India three focal points have been established and can also be contacted for information on UNIDO services.

UNIDO Focal Points

1. Mr Ratan Ghoshal
Economist
Bengal Chamber of Commerce & Industry
Royal Exchange
6, Netaji Subhas Road
Calcutta-700 001
Tel : 033 220 8393 Fax: 033 1289

2. Mr T. Ramappa
Secretary-II
Federation of Karnataka Chambers of
Commerce and Industry
Federation House, K.G. Road
Bangalore - 560 009
Tel : 080 - 226 2355/56 Fax : 080 225 1826

3. Mr P.N. Mogre
Secretary-General
Indian Merchants' Chamber
LNM IMC Building
IMC Marg, P.B. 11211
Churchgate
Mumbai - 400 020
Tel : 022 - 204 6633 Fax : 022 - 204 8508