YES, YOU CAN ELIGIBLE :-
assessment of CDC services / BENEFITS by other stakeholders
6.1 Measures/ Schemes Being Provided for Development/Promotion of Consultancy Services
6.1.1 "Promotion and Support to Consultancy Services" scheme of Department of Scientific & Industrial Research (DSIR)
DSIR, Ministry of Science & Technology has a scheme to Enhance the Efficacy of Transfer of Technology (SEETOT) one of whose components is the Promotion and Support to Consultancy Services (PSCS). The main objectives of this Plan being implemented by Department of Scientific & Industrial Research (DSIR) which is also concerned with the task of promoting and strengthening the consultancy services in the country among its other responsibilities are to strengthen and promote consultancy services in various areas including:
Ø Promote and strengthen consultancy capabilities for both domestic and export markets
Ø Support to CDC and other promotional organizations related to consultancy
Ø Human resource development including fellowships to bright and promising engineers as apprentices with eminent consultancy organizations, arrange training etc.
Ø Support R & D efforts of consultancy organizations and commercialization of indigenous technologies
Ø Organize seminars, workshops etc and document consultancy capabilities
Ø Create awareness among users of consultancy
6.1.2 Guidelines for Support under PACS
Detailed guidelines have been drawn up for availing support from DSIR under PACS. DSIR Scheme Guidelines in respect of setting up consultancy clinics and for setting up Design and Engineering Service Centres are given as Annexures 6.1 & 6.2.
6.1.3 Illustrative Programmes/Activities Undertaken under PACS
Some of the programmes/activities carried out under Promotion and Support to Consultancy Services Scheme during 2002-2003 were as follows:
· Documentation of consultancy capabilities and experience covering as many as 38 reports on consultancy capabilities in specific industrial sectors and at state level have been printed so far under the scheme including two specific reports on Study of Consultancy Services in India and Policies and Incentives Available to Consultants in Other Countries.
· Study on role of consultants in R & D and innovation `Leveraging knowledge –Consultancy Capabilities and Needs of CSIR’
· Study on consultancy needs for improving performance/upgradation of textile industry in U.P.
· Study on consultancy capabilities for small hydro power development in India
· Promotion of design engineering centres and consultancy clinics – DSIR has evolved programmes for promotion of design and engineering facilities in specific sectors, such as food processing, textiles etc and consultancy clinics to support SMEs particularly those located in clusters.
· Food Processing Technologies and Services Centre (FPTSC) at Kanpur which is set up by U P Industrial Consultants Ltd (UPICO) in technical collaboration with CFTRI to help the food processing industries in the North Western region of the country on payment basis.
· Consultancy clinic for textile industry at Bhilwara to provide door step professional services for textile industry in the main was set up by Rajasthan Consultancy Organization (RAJCON)
· Consultancy clinic for LimeKiln industry at Katni with a view to provide doorstep professional services for limekiln industries in particular was set up by Madhya Pradesh Consultancy Organization Ltd.
· Similar proposals from other organizations for setting up consultancy clinics for different SME clusters as well as for setting up of design & engineering and consultancy services centres for areas such as small hydropower development etc. were under consideration.
· The scheme also provided advisory services to various consultancy related organizations and departments in relation to their programmes and activities including Consultancy Committee of FIEO, Governing Council of CEAI and the Ministry of Commerce Committee on WTO negotiations in respect of Trade in Services.
· A number of seminars/workshops/meetings related to the promotion of consultancy services were undertaken.
6.1.4 DSIR Support to TCDPAP
DSIR also supports the Technical Consultancy Development Programme for Asia and Pacific for which CDC was retained as the secretariat for 4 years w.e.f. September 1, 2000.
6.1.5 Role of EXIM Bank in the Promotion of Export of Consultancy Services
EXIM Bank set up in 1981 for the purpose of financing; facilitating and promoting foreign trade in India is the principal financial institution in the country for co-ordination working of institutions engaged in financing exports and imports. The Bank finances exports of Indian machinery, manufactured goods, consultancy and technology services on deferred payment terms. Lines of credit/buyer's credits are extended to overseas entities i.e. governments, central banks, commercial banks, development finance institutions, regional development banks for financing export of goods and services from India for project finance & trade finance.
EXIM Bank has been playing a pioneering role in promoting domestic consultancy services in overseas markets. The range of services offered by the Bank are administered through innovative funding solutions that cover the entire consultancy business cycle as follows:
Project Information Services: EXIM Bank identifies specific requirements for information on projects and assignments overseas, which may be initiated by requests from individual consulting organizations. The Bank then activates its network of offices abroad to obtain the requested information. Information and support services to Indian companies to help improve their prospects for securing business in multilateral agencies funded projects. EXIM Bank provides assistance in identifying select opportunities for Indian exporters in upcoming projects funded by various multilateral funding agencies such as World Bank (WB), Asian Development Bank (AsDB), African Development Bank (AfDB), and European Bank for Reconstruction and Development (EBRD). EXIM Bank has tie-ups with International Finance Corporation, Africa Project Development Facility, Africa Enterprise Fund, Technical Assistance & Trust Funds, Mekong Project Development Facility, Eastern & Southern African Trade & Development Bank (PTA Bank) and African Management Services Company (AMSCO), Netherlands. Cooperation arrangement with Africa Project Development Facility enables Indian consultancy firms to undertake specific assignments in Sub-Saharan Africa through grant financing. Cooperation arrangement with AMSCO enables Indian consultants to secure assignments in various projects that are managed by AMSCO in different parts of Sub-Saharan Africa through grant financing. Under the Multilateral Agencies Funded Projects Overseas (MFPO), the Bank provide the following services:
· Dissemination of business opportunities in funded projects
· Providing detailed information on projects of interest
· Information on Procurement Guidelines, Policies, Practices of Multilateral Agencies
· Assistance for Registration with Multilateral Agencies
· Bid Advisory Services: The Bank provides under MPFO guidance in the preparation of bids as per international standards. These bid advisory services including educating prospective domestic bidders on the nature and extent of technical and professional expertise required.
· Bid Intervention Services: The Bank has attempted under MPFO to appraise the funding authorities of any unfavourable impressions of Indian companies that might be carried over to the bid evaluation process. The Bank attempts this through formal channels.
· Procurement Seminars with Funding Agencies: Procurement seminars organized by the Bank both at national and international fora help to bring forward capabilities of domestic consultancy organizations to the funding agencies.
· Project Preparatory Services Overseas: This programme was set up in 1987 to promote Indian consultancy at preparatory stages in projects overseas with potential of Multilateral Funding and downstream linkages for Indian exports. The programme enables Indian consultancy firms to undertake project preparatory studies in developing countries by grant/loan financing. When consultancy organizations lack overseas experience, or the relevant overseas project experience, the Bank steps in to provide assistance to acquire such experience. Additionally, when firms are not short-listed, the Bank supports relevant research and preparatory work in the required areas.
· Strategic Market Entry Support: The Bank also provides market entry support services to consultancy organizations. The methodology involves assistance in information about the market and prevailing local conditions, including information on local contacts and local firms.
· Export Facilitation Programmes: The Bank enables the setting up of institutes for software training under this programme.
· Overseas Investment Finance: The Bank enables Indian promoters to finance equity contribution in ventures set up abroad.
· Export Product Development Finance: The Bank enables Indian firms to undertake product development and R & D for exports.
· Executive Services Overseas Programme: Under this programme, the Bank enables Indian experts to share their experiences with the beneficiaries overseas through provision of a variety of technical assistance.
EXIM Bank conceived and promoted Global Procurement Consultants Ltd. (GPCL), a consultancy organisation established in late 1996 which is a unique venture amalgamating India's consultancy expertise in project management of key sectors of infrastructure and industry, and its shareholding is also a unique mix of Public and Private Sector Enterprises, bringing about a synergy of talent and experience available in both sectors. Many projects in developing countries funded by multilateral financial institutions like World Bank, Asian Development Bank and African Development Bank suffer from time and cost overruns due to poor procurement planning and adhoc decisions. To overcome this, a sound and independent advice and close monitoring of projects is necessary. Realising the tremendous potential for such consultancy opportunities globally, Export-Import Bank of India took the initiative in setting up GPCL with partnership from industry leaders in sectors such as Energy, Water Resources, Transportation, Mining, Chemical Industries, Agriculture, Health, Education, etc. It has also established its credentials with the World Bank having won through international competition, major consultancy assignments in conducting Procurement Audits of the World Bank funded projects in Turkey, Georgia and Armenia etc. In addition, GPCL is rendering procurement advice to Municipal Development Fund - a World Bank aided project in Georgia, which provides for an effective interface between the Bank and Project Authorities in judicious management of the project funds. GPCL has also been active in carrying out Environmental Audits, Valuation and Re-Engineering studies on projects supported by Exim Bank of India and PTA Bank, Kenya, so that the projects are eco-friendly and sustainable.
The Bank operates a wide range of financing and promotional programmes. The Finance for Technology and Consultancy Services Programme enables Indian exporters of consultancy and technology services to extend term credit to overseas importers. The Finance for Deemed Exports Programme enables Indian companies to meet cash flow deficits of contracts secured in India and financed by multilateral funding agencies. Similarly, Finance for Rupee Expenditure for Project Export Contracts Programme enables Indian project exporters to meet rupee expenditure incurred/required to be incurred for execution of overseas project export contracts. EXIM Bank also seeks to co-finance projects with global and regional development agencies to assist Indian exporters in their efforts to participate in such overseas projects.
The Bank is involved in promotion of two-way technology transfer through the outward flow of investment in Indian joint ventures overseas and foreign direct investment flow into India. EXIM Bank is also a Partner Institution with European Union and operates for facilitating promotion of joint ventures in India through technical and financial collaboration with medium sized firms of the European Union under European Community Investment Partners (ECIP) Scheme and between Asian firms under Asian Country Investment Partners (ACIP) Scheme.
EXIM Bank and CDC cooperate/share with each other in identifying consultants for business opportunities & development of local and international consultancy market. They also participate in seminars /training programmes conducted for promotion of consultancy services.
6.1.6 Role of Federation of Export Organizations (FIEO) in the Promotion of Export of Consultancy Services
FIEO membership, largely comprising professional exporting firms with strong credentials, called Government-recognized Export Houses, Trading Houses, Star Trading Houses and Super Star Trading Houses, and Consultancy exporting firms, contributes a major share of India’s total annual exports.
FIEO represents, directly or indirectly, over 100,000 exporters across India. Exports by FIEO members comprise a wide spectrum of products as well as a wide range of consultancy services.
FIEO's activities/programmes include the following:
· Organization of seminars/workshops/trade fairs etc.
· Interaction with Government
· Specialized Divisions for handling a broad spectrum of activities
· Maintaining a diverse database related to information on India's export sector
· Interaction with Banks/Financial Institutions
FIEO is the nodal agency nominated by the Government of India for promoting exports of consultancy and other services (161 tradable services in all covered under the head of services classified under 12 major categories, excepting software consultancy services which is under the ambit of Electronics & Software Export Promotion Council). The list of these services which includes consultancy services in different sectors/sub-sectors is given as Annexure-6.3. As part of its export promotion programme, FIEO has set up a separate department to promote export of services. Besides carrying on an ongoing programme of seminars and workshops to promote the sector, FIEO is planning to organize an International Congress on Trade in Services to create global awareness of India’s high capabilities and capacity to offer a vast and diverse spectrum of services. FIEO also provides various updates about services, including WTO negotiation in services.
It was indicated that Reserve Bank of India has initiated compilation of detailed data on export of services with due categorization recently to provide an insight on the nature of export of services (including consultancy services).
The Government of India has given special status to the services sector in its Export-Import Policy 2002-2007 announced on 31st March 2002. It included all the 161 tradable services covered under the head “Services” where payment for them is received in free foreign exchange.
A "Service Provider", according to the Exim Policy, means a person providing:
· `service’ from India to any other country;
· `service’ from India to the service consumer of any other country in India;
· `service’ from India through commercial or physical presence in the territory of any other country; and
· supply of a ‘service’ in India relating to exports paid in free foreign exchange or in Indian Rupee, which are otherwise considered as having been paid for in free foreign exchange by RBI.
Service providers are entitled to with mutatis-mutandis all the facilities listed in the Exim Policy for merchandise exporters. In addition, the Exim Policy extends the following specific benefits to the Services Sector (including consultancy services).
Ø Duty-Free Credit Entitlement
A Service Provider (other than hotels) is entitled to duty-free imports equivalent to 10% of the average foreign exchange earned by him in the preceding three years. The duty-free entitlement is to be used for import of any capital goods including Spares, office equipment(s) and professional equipment(s), office furniture & consumables other than agricultural products, dairy products, Motor Cars, Sports utility vehicles and all purpose vehicles covered under Chapter 22 of the ITC (HS) Classification.
The entitlement and the goods are non-transferable, and are available only to those service providers who have average foreign exchange earnings of over Rs. 30 lakh in preceding 1/2/3 licensing years.
Ø Import of Capital Goods at Concessional Duty
The Export Promotion Capital Goods (EPCG) Scheme allows import of capital goods for pre-production, production and post-production (including CKD/SKD thereof, as well as computer software systems) at 5% Customs duty subject to an export obligation equivalent to 8 times of duty saved on capital goods imported under the EPCG Scheme. The obligation has to be fulfilled over a period of 8 years reckoned from the date of issue of license by the Services unit of the company or any other Service units falling within the definition of group companies. However, in respect of the EPCG licenses with a CIF value of Rs.100 crore or more, the export obligation is required to be fulfilled over a period of 12 years.
Capital goods include spares, jigs, fixtures, dies and moulds. EPCG license may also be issued for import of components of such capital goods required for assembly or manufacture of capital goods by the license holder.
Moreover, spares, refractories, catalyst and consumables for the existing plant and machinery may also be imported under the EPCG scheme.
Second-hand capital goods upto 10 years old may also be imported under the EPCG scheme, subject to an export obligation equivalent to 8 times of duty-saved, to be fulfilled over a period of 8 years reckoned from the date of issue of license. The service providers are also not required to maintain average export as required by merchandise exporter.
Ø “Status” to Exporters of Services
Service Providers are eligible for recognition as “Status Holders”, as per the table given below:
Total foreign exchange earning by way of services, or during the preceding three licensing years. (in Rupees)
Star Trading House
Super Star Trading House
These status holders are eligible for the following special facilities:
· License/certificate/permissions and Customs clearances for both imports and exports on self-declaration basis.
· 100% retention of foreign exchange in EEFC account.
Ø Market Access Initiative (MAI)
Financial assistance is available under this scheme to Export Promotion Councils, industry, and trade associations, and other eligible entities, as may be notified from time to time, on the basis of the competitive merits of proposals received in this regard for the following purposes, which, inter-alia, include:
· Marketing studies on country, product/services;
· Setting up of common office under one roof and workshop facility in the identified centres on the basis of marketing studies carried out in important cities abroad;
· Participation in sales promotion campaigns through international display centres;
· Publicity campaign for launching identified services in selected markets;
· Participation in international trade fairs, seminars, buyer-seller meets;
· Setting up "business centres" in Indian missions abroad for visiting Indian service providers.
Ø Exemption from Service Tax on Services Rendered in Free Foreign Exchange
As notified by CBDT in their circular dated November 20, 2003, exemption from payment of service tax is available to any person rendering service in respect of which payment is received in India in convertible foreign exchange, provided when the payment so received in India in convertible foreign exchange for taxable services rendered is not repatriated from, or sent outside, India.
All service exporters (except software service providers) will need to register themselves with FIEO to avail various facilities given in Exim Policy.
6.2 Envisaged Role for CDC in India
The lead roles envisaged for CDC by the clients is as follows:
· CDC can play the role of facilitator to coordinate and interface between clients, consultants, academia and research organizations.
· CDC can play the role of a developer as the consulting industry needs considerable support to expand, grow and be competitive. This is especially true in the liberalized environment and the on set of several expatriate-consulting firms in India. This will include developing insights and methodologies for consultants to be able to add value to client capabilities, capacities and outputs.
· CDC can play a catalytic role in bring about the changes in legal, institutional, structural, financial and regulatory issues related to the consultancy profession, apart from conventional initiatives.
6.3 Gaps in CDC Services
6.3.1 The responses of other stakeholders interviewed as part of the study have indicated their expectations of CDC services at different levels in the following broad areas/aspects. The gaps have been identified on basis of qualitative comments from the respondents. The survey responses have been analysed and classified under broad heads to allow greater focus.
· Strengthening and Projection of Indian Consultancy Capabilities
· Information on Business Opportunities
· Consultancy Assignments
· Client Education
· Upgradation of CDC Website
· Working of Sub-Committees
· Export of Consultancy Services
· Linkages with Promotional Agencies for Consultancy
· ISO 9000 /ISO 14000 Certification
· Exchange Visits of Consultancy Delegations
· Participatory Involvement
· CDC Chapters
· Consultancy Assignments
· Technical Consultancy Development Programme for Asia and the Pacific
· Mechanisms for Dialogue
· Consultancy Procurement Processes
· Registration with CDC
· Pooling of Consultant Resources
· Applied Research
6.4 Analysis of Services / Benefits Expected from CDC
The specific services expected by other stakeholders in the above areas/aspects are indicated below.
6.4.1 Strengthening and Projection of Indian Consultancy Capabilities
Ø CDC needs to strengthen its operations to identify new disciplines and areas of consultancy which would meet the future needs of the country and in facilitating their development.
Ø CDC should represent the constituency of individual consultants in various fora.
Ø CDC should support continuing education and skill upgradation to consultants in new areas. CDC can conduct training programmes in certain specialized areas alongwith its members. CDC members who have large reservoir of technical and professional manpower can contribute effectively in this direction.
Ø CDC should lay more emphasis as a facilitator on business development for individual consultants, who may have expertise in a particular field, but lack in financial and organizational capability to undertake projects.
Ø CDC should nurture building up of consultancy expertise in emerging areas of consultancy such as renewable energy, composite technologies, environment and biotechnology etc to exploit the potential opportunities for Indian consultancy profession.
Ø CDC should have a facilitator role in establishing and promoting linkages between R & D laboratories/institutions and consultants for application and commercialization of indigenously developed technologies. While the laboratory role will be in development of technologies, upscaling from lab to pilot scale, basic engineering, know-how transfer, etc; the role of consultants will be significant in detailed engineering, trouble shooting, process optimization, supervision, yield improvement, and other advisory functions on an on-going basis for the client.
Ø CDC has a role in bringing accountability to consultancy profession through third party validation in similar areas, particularly as the level of expertise of consultants is considered to be low in some cases. For example, IIT has taken up the role of 'Proof Consultant' to validate civil structural design of consultants.
6.4.2 Information on Business Opportunities
Ø CDC has linkages in establishing leverage with Government of India in pursuing consultancy opportunities in countries under reconstruction/transition (such as Sri Lanka) and the same should be continued to be given due priority.
Ø CDC should eventually strive to get referrals from clients in respect of appropriate consultants within the country to meet their specific consultancy needs on an automatic basis as this will lead to facilitating business opportunities for the consultancy profession in India.
6.4.3 Consultancy Assignments
Ø CDC itself may not undertake consultancy assignments as a policy, but encourage/facilitate consultancy assignments for members from Government and Public Sector with CDC as the front organization.
6.4.4 Client Education
Ø CDC needs to strengthen and expand its activities in the way of creating awareness amongst Government agencies connected with the development work to use consultancy services on a regular basis.
6.4.5 Upgradation of CDC Website
Ø CDC should study other similar trade and industry associations/bodies to introduce innovative services as part of assimilation of successful strategies. These include Institution of Engineers (India), Indian Concrete Institute, APCTT, some of which offers web enabled services in order to enhance the level of services to its members, including online payment, access to Journal, change of address, access to the members’ profile, status of subscripttion dues, etc. These would be available to only selected categories of members against individual confidential password. Some organizations provide exhibition services and provision to submit technical proposals/offers and provide access to technical papers (APCTT); provide sector specific information of events and regional study tours and classifieds (International Solid Waste Association), certification information (NASSCOM), downloads of industry research publications (American Society of Civil Engineers), information on library facilities (All India Management Association), information of Chapter/Branch Activities and members quarter (The Institution of Structural Engineers, UK), media gallery (Consulting Engineers Association of India), on-line applications (Ahmedabad Management Association), job forum (Structural Engineers Association International), Acts, rules and regulations (Council of Architecture ), industry monitor and trade zone (Confederation of Indian Industry), international news (FICCI) etc.
6.4.6 Working of Sub-Committees
Ø CDC should expand the sub-committees on issues of significance for the consultancy profession and which are of sectoral importance for the benefit of members. For example, a core group on Export of Consultancy was constituted within CDC. This will assist CDC in determining the select countries for obtaining and storing information of interest to consultants.
Ø CDC has made a policy level representation to the Ministry of Programme Implementation to advise all Government Departments to do away with the need for EMD in the award of consultancy contracts. This should be pursued by CDC for the benefit of consultancy community.
Ø CDC should facilitate/pursue with CEAI for the enactment of Engineers Bill as well as in its implementation as a facilitator and through awareness generation amongst consulting practitioners. The Continuing Education Cells of academic institutions (such as IIT, Chennai) would be able to provide the necessary training to meet the requisite number of hours /year in specific areas/sectors for consultancy practitioners.
6.4.8 Export of Consultancy Services
Ø CDC should organize consortia of Indian consultants for bidding against large consulting assignments
Ø CDC can play a role in the promotion of joint cooperation between R & D organizations and consultants for export of projects and services
Ø CDC can initiate efforts in formation of a Project Export Promotion Council with assistance of GoI and can develop linkages with similar type of foreign associations for providing effective & relevant services. This would be useful in the context of Government of India (GoI) having set up a Task Force in Prime Minister’s office for review of Consultancy Projects. One of the recommendations of the Task Force was to establish Project Export Promotion Council for consultancy development in India as well as abroad.
Ø Significant scope exists for CDC to expand database of existing consultancy organizations/individual experts in different disciplines as also in updating of database. CDC has around 1100 consultants and consultancy firms in its database and has around 20,000 contacts in its mailing list which comprises of members of other organizations such as AIMA, CII as well as large corporates, academic and R & D organizations, trade associations, CEAI, IMCI etc. There is thus a longway to go for the Centre in building its database of Indian consultancy profession as presently the existing database does not adequately cater to the needs of users and other stakeholders.
Ø CDC should update its database and information of various international financial institutions.
6.4.10 Linkages with Promotional Agencies for Consultancy
Ø CDC should function as apex body for all type of consultancies. Appropriate linkages needs to be developed with other organizations such as Institute of Architects, Institute of Chartered Accountants, Institute of Insurance, Management Institutes, Institute of Engineers, etc.
6.4.11 ISO 9000 /ISO 14000 Certification
Ø CDC should strengthen its Quality and Environmental Management group to provide training, consultancy and facilitation to consultancy and service sectors for ISO 9000/ISO 14000 certification.
Ø CDC could have linkages with entities such as Quality Management Institute in the private sector and the National Institute of Standardization & Quality Control of BIS as part of promoting ISO 9000 quality management system in consultancy profession to provide for a competency index, consistency in quality and establish improved business practices.
6.4.12 Exchange Visits of Consultancy Delegations
Ø CDC should lead delegation of consultants and consultancy organizations into regions of developed and developing countries to showcase India’s potential and capabilities in consultancy services.
Ø CDC should closely coordinate with Ministry of External Affairs to organize interaction between visiting professionals/consultants from abroad with CDC members
6.4.13 Participatory Involvement
Ø CDC should provide the motivation to enhance the proactiveness of consultants in terms of interaction with CDC on issues of common interest to the consultancy profession which is currently inadequate.
6.4.14 CDC Chapters
Ø CDC does not have an All-India reach and should work towards this to promote growth of consultancy profession in the country. This should include enrolment of new members and opening of new chapters to help facilitate replication of key activities/programmes of CDC on a national level.
Ø In the initial stage, CDC can depute part time assistant /support staff for the new local chapters till such time they generate sufficient activities for employing full time staff.
6.4.15 Consultancy Assignments
Ø A referral mechanism of consultancy assignments by Government agencies to CDC will help increase the beneficiaries. It appears that 19 consultancy proposals were sent to Ministries by CDC and 4 assignments secured and given to member consultants in 2002-2003. These constitute very few beneficiaries.
Ø CDC should take up projects in consultancy and studies of national interest jointly/under support of funding agencies.
Ø CDC should endeavour to form consortium of consultants comprising of CDC members, in which, CDC should also participate to take up consultancy jobs and studies/reports from various clients/government departments. In this arrangement, CDC can market the project, whereas, the actual execution can be done by the member consultants. The revenue sharing between participants can be worked out in proportion of their job responsibility.
6.4.16 Technical Consultancy Development Programme for Asia and the Pacific
Ø UN-ESCAP supported Technical Consultancy Development Programme for Asia and the Pacific (TCDPAP), of which CDC is the Secretariat, should operate on a higher trajectory, leading to an ultimate setting-up of its permanent Secretariat in Delhi, to service the Asia Pacific Region. In other words, the present programme needs to be converted into a full-fledged centre, undertaking all activities embodied within TCDPAP which was initiated in 1994 with the support of ESCAP, DST and ITC.
Ø CDC should initiate an evaluation of the benefits of TCDPAP to review the collaborative arrangements and training opportunities for Indian consultants which have fructified as a result of this programme as a number of Delegation of Indian consultants have visited other members countries such as China, Bangladesh, Nepal, Malaysia etc as part of the yearly event where the participating consultants in the delegation from India bear full costs of their visit.
6.4.17 Mechanisms for Dialogue
Ø CDC should institute mechanisms for continual dialogue and interaction with the consultants to understand the issues concerning their business and taking up the arising issues to find solutions.
Ø No systematic mechanism and linkages between the government agencies and CDC exist for referral by clients on consultancy assignments and there is a significant scope for improvement in this area. No Individual/organizational targets should be set in this area within CDC.
Ø Regarding interaction at national and regional level on policy options in the areas of promoting growth of consultancy profession, barring a few representations (such as related to tax exemption of export of services), there is no systematic and periodic brainstorming with member consultants to take up policy issues of interest with the Government.
Ø CDC may consider entering into MoUs with national laboratories to formalize the arrangements, roles and responsibilities for promotion of consultancy services from the laboratories to industry and other organizations. NRDC has been involved in the promotion of commercialization of R & D and technologies developed by R & D organizations (not promotion of consultancy services) based on a standard format for MoU prescribed as a model agreement by the Ministry of Science & Technology. The role of NRDC is to identify potential clients and facilitate arrangements for completion of legal agreements etc between the client and the R & D organization for which a commission is leviable by NRDC. A similar model is considered to be appropriate for adoption by CDC in forging linkages with national R & D organizations.
6.4.18 Consultancy Procurement Processes
Ø CDC should compile and disseminate information on funds budgeted under consultancy component by various Ministries/Departments of Government of India at central and state levels for projects, sector schemes and programmes of interest for consultants as a single source of critical information for the benefit of consultancy profession. Ongoing updating of this information will also be required.
Ø CDC should encourage/foster the outsourcing of consultancy services in specific areas not available in-house with R & D organizations as part of opening of avenues for business opportunities for consultancy profession.
6.4.19 Registration with CDC
Ø CDC should extend its role equivalent to that of Industry associations like CII and FICCI etc but relevant to issues concerning consultants. CDC should improve their image in the country so that certain prestige should be attached to being their member.
6.4.20 Applied Research
Ø CDC needs to initiate and undertake joint studies with international institutions in developing countries or elsewhere to improve the quality and quantity of intellectual interchange relevant to consultancy profession.
Ø CDC should closely network with other associations such as FICCI, CII and ASSOCHAM
Ø CDC could have closer linkages with export promotion councils and industry associations such as CAPEXIL, PHARMAXIL, CHEMEXIL, Bulk Drug Manufacturers Association, Pesticide Formulation Association of India, Indian Chemical Manufacturers Association of India etc and R & D laboratories to address the technical problems faced by the industry with the involvement of consultants as interface.