INDUSTRY AND MINERALS

Important Levels of Development of Successor State of Madhya Pradesh Review of the Ninth Five Year Plan Approach to the Tenth Five Year Plan Salient Features of the Tenth Five Year Plan (2002~2007) Agriculture & Allied Services Rural Development Irrigation & Flood Control Power Industry & Minerals Transport Scientific Services & Environment General Economic Services Social & Community Services General Services Home Home

 

Economy as a whole has undergone substantial changes since last one decade with liberalisation of Government policies - resulting in flow of investments from private investors, across the areas of infrastructure, and sufficient incentives in selecting project location.

M.P. the third largest Indian state covering 9.5 % of country's area is endowed with natural resources, salubrious climate and fertile agro-climatic conditions. The states economy is largely agrarian. Continuous efforts have been made for industrialisation of the State. The industry sector contributes only 8 % to employment of the state's work force and 23% to G.D.P. The rate of Industrial growth has been varied between 4% to 6% in the resent past.

There are 952 industrial units in M.P. set up with an investment of Rs. 16237 crores and employing 312231 workers. Since 1994. Some 235 new units with an investment of Rs. 8832 crores have been set up providing employment to 38051 workers. Although State has large no. of S.S.Is but due to various reasons these units have become sick and in many cases non viable. In terms of investments the SSI's do not play a significant role in State's economy.

The State Government has come out with a "New Economic Development policy 2001" which seeks to consolidate the progress made in the past, and lay the foundation for a vibrant economy based on 'connectivity; the corner stone of the States Economic Development. Strategy- i.e. main thrust is to connect Industry to markets and suppliers, to infrastructure to technology, to Government and to skilled manpower, as an integrated effort towards economic development.

The policy also envisages to connect industrial development to over all Economic Development of the State by liveraging linkages and opportunities with other economic sector-

• Development Strategy and Objectives

• To maximise the trade and industrial development potential of State

• Facilitate rapid development of sustainable, competitive advantage with in the State.

• Provide access to world class infrastructure at the door step of industry.

• Simplify procedures and streamline administration so as to create conducive environment for industry and commerce to prosper.

• Promote exports by providing requisite support to industry to become internationally competitive.

• Encourage the development of small and medium enterprise, Tiny industries and Rural /Handloom industry.

• Generate employment in the State through the development of vibrant industrial sector.

• Promote balanced regional development through encouragement to rural industry and local enterprise.

2. Ninth Five Year Plan

2.1 During the ninth plan period proposed outlay is Rs. 851.60 crores of which777.12 crores under large and medium industries and Rs. 74.48 crores for small scale industries the total outlay Rs.744.40 crores was contemplated as contribution from Departmental undertakings.

2.2. The expenditure during the first four years is as follows :-

2.3 Approved outlay for Annual Plan 2001-2002 is Rs. 1672.51 lakh. which will be fully utilised.

2.4 During Ninth Plan - 23387 small scale units were establised. Assistance was given to compensate the losses of sick Textiles and Sugar Mills.

3. Tenth Five Year Plan

The Tenth Plan for industrial sector, is proposed at Rs. 87.41 crores be financed through State Budget (Rs.53.83 crores for SSI and Rs. 33.58 crores for LMI) further finances are also anticipated from by other sources viz. corporations own fund and loan, Government of India's assistance and private participation. The outlay for Annual Plan 2002-03 is proposed at Rs.17.40 (Rs. 11.22 crores for SSI and Rs. 6.18 crores for LMI). As per the M. P. new Economic Development policy 2001, sustainable solutions to Industries Development shall be solved keeping in view the strength of the state. This will be done by focussing on the following :-

1. Cluster Development around sectors, strategic advantage to M.P. such as food and agri processing Textiles and Garments, Minerals, Gems and Jewelry, Information Technology, life sciences, Tourism.
2. Access to world class infrastructure to investors so as to enable them to compete effectively in rapidly globalising world.
3. Ensure facilitative regime through Decentralisation, deregulation and self certification.
4. Provide incentive and concessions.
5. Develop Destinations as vibrant industry clusters for investment attraction.
6. Provide facilitative environment for development of Small / Medium / Tiny enterprises
7. Structure and mobilise "Udyog vikas Nidhi"
8. Develop a "Special Economic Zone" as a world city with Private Sector
9. Ensure power to Industry, Quality Road connectivity, Provide connectivity to major industrial towns.

3.4 District Plan - 2002 - 2003

For the District Sector an outlay of Rs. 407.14 lakh is proposed. The Schemes under small scale sector to be implemented at District Level are:-

1. Competitions, Seminars & Exhibition
2. Interest subsidy
3. Project Report cost reimbursement
4. Capital and subsidy
5. Enterpreneurship Development Programme
6. Margin Money loan to sick industrial units
7. ISO - 9000 certification.

3.5 Some Important Schemes Under Small Scale Industries are :-

1. Centre for Enterpreneurship Development
2. Competitions Seminars, Exhibition
3. Awards / Prizes to SSI units.
4. Training and Study Tour Programme for Official and Non-official personals
5. Development of Infrastructure
6. Export promotion Industrial Park.
7. Gold Jewellery Park, Indore
8. Margin Money Scheme to SSI units.

9.2 Sericulture

Sericulture is a gainful land use activity with agro-forestry base, which can generate avenues of employment in rural areas. Its organisational set-up is industrial in nature, leading to the promotion of many subsidiary cottage and village industries which can provide supplementary employment in the rural areas during the lean agriculture period. The two activities under sericulture, include forest base tasar cocoon production from Saja & Arjuna trees and agro-based mulbarry cocoons production.

2. Targets and Achievements for the 9th Five Year Plan.

2.1 During the 9th Plan period an outlay of Rs. 17157.00 lakh was provided at the constant prices of 1996-97. As against the total plan outlay, expenditure during the year 1997-98, 1998-99, 1999-2000 and 2000-2001 was Rs. 505.00 lakh, Rs. 822.74 lakh, Rs. 1013.42 lakh and Rs. 1041.44 lakh respectively.

2.2 In the year 2001-02 an anticipated expenditure was Rs. 276.98 lakh as against the plan provision of Rs. 276.98 lakh.

2.3 During the 9th plan period it was proposed to produce 5.00 lac kg. cocoon as a main objective of the scheme. Against the target the production of cocoon was 2.076 lakh kg, through 6475 beneficiaries. The major achievement of the schemes during 9th plan is creation of separate Silk Federation for conducting the commercial activity of the scheme. Federation turnover during 9th Plan is Rs. 740.59 lakh, Secondly catalytic development schemes sponsored by Central Silk Board has also was a break-through during 9th Plan period. Under the scheme Rs. 122.64 lakh received as state share and about equal amount a central share. Catalytic Development Scheme has supported beneficiaries directly in cocoon production activities through provision of training, tool kits, irrigation facilities etc.

3. Proposals for the 10th Five Year Plan and Annual Plan 2002-2003.

3.1 During 10th Five Year Plan priod and Annual plan 2002-2003 provision of an amount of Rs. 14.06 crore and Rs. 2.77 crore has been made respectively.

3.2 During the 10th plan period 906.75 lakh tasar cocoon and 42.65 lakh kg mulberry cocoon production is targatted. From this programme total number of 64400 families will be benefitted with employment. In the year 2002-03 total no. of 68.85 lakh tasar cocoon and 2.40 lakh kg. mulberry cocoon is expected to be produced giving employment to 9295 families.

3.3 To achieve this target mulberry plantation in 2000 Acre of land in 10th Plan is proposed and 400 acre plantation in the year of 2002-03 is targatted.

Indian handicrafts form a part of India’s rich cultural heritage. They also play a very important role in the economic development of the country. Three fourth population of India lives in villages where the agriculture sector is unable to provide whole time employment to everybody. It is in this context that the handicraft sector has a vital role to play because with very little investment in infrastructure as well as human resource development and short gestation period handicaraft sector can generate large scale employment and provide supplimentary occupation to the rural population as well as the urban un-employed. The economic importance of handicrafts also lies in the vast opportunities of earning precious foreign exchange through exports. To add to all this handicraft is an extremely environment friendly activity.

The M.P. Hast Shilp Vikas Nigam Ltd. is implementing programmes with the financial assistance of the state Govt. and the various undertakings. Development-cum-collection centres are run at regional level for providing designs, technical help/guidance, raw material, job work training, marketing aid etc. The Nigam is also organising exhibitions at state and national levels.

2.1 During 9th Plan an amount of Rs. 1266 lakh at constant prices of 1996-97 was allocated to this subsector. During 1997-98, 1998-99, 1999-2000 and 2000-2001, as against the plan provision of Rs. 271.00 lakh 269.88 lakh, 329.88 lakh and Rs. 307.33 lakh an amount of Rs. 354.46 lakh, 242.91 lakh, 302.81 lakh and Rs. 310.19 lakh was sent respectively.

2.2 In the year of 2001-02 against the Annual Plan provisions of Rs. 439.65, the expenditure of Rs. 385.65 lakh is anticipated.

2.3 During 9th Plan period 127325 beneficiaries were benefitted under various programmes. The Nigam has spent Rs. 222.39 lakh on training, Rs. 137.61 lakh on Tools and Workshed Subsidy, Rs. 2223.75 on job work and procurement. MPHHSVN has increased the sale of handicraft from Rs. 665.00 lakh in 1996-97 to Rs. 1110.29 lakh in 2000-01.

3.1 For the 10th Five Year Plan period the proposal outlay is Rs. 2233.00 lakh and an amount of Rs. 446.60 lakh is provided for the year 2002-03.

3.2 During the 10th Plan Period the Nigam has proposed to give emphasis on the human resource development. The accent will be on providing highly advanced training to talented artisans selected from amongst those who have already received the training. Provision of improved tools and workshed to the artisans immediately after completion of training will also be an important thrust area. During 10th plan in implementation of various programmes the role of NGO’s and SHG’s has been proposed, by giving them direct financial assistance - The Nigam has also proposed to spent Rs. 1091.00 lakh for establishment of development centre.

3.3 During 10th plan period the Nigam proposed to benefit 17750 craftsman to establish their workshop under the scheme Establishment of Development Centres. Training is proposed to be imparted to 5100 craftsmen and 175 societies will be benefitted with interest subsidy. For the publicity of various products 155 exhibitions are proposed to be organised. Financial assistance to 25 societies are provided. In addition to these targets the Nigam has proposed to benefit 2960 craftsmen under various schemes.

M.P. Khadi & Village Industries Board had been established to promote village industries in the rural areas and to create new avenues of employment. Broadly main objectives of the Board are as under :-

(i) To promote the growth of Khadi and village industries sector.

(ii) To render assistance for the marketing of the Khadi & Village Industries production.

(iii) To organise training for artisans

(iv) To assist in the supply of improved implements and raw materials.

2.1 An amount of Rs. 2071.00 lakh at constant prices of 1996-97 was allocated for the 9th Five Year Plan period. During 1997-98, 1998-99, 1999-2000 and 2000-01 as the plan provision of Rs. 443.00 lakh, Rs. 308.00 lakh, Rs. 310.00 lakh and Rs. 326.45 lakh an amount of Rs. 317.57 lakh Rs. 261.00 lakh Rs. 266.26 lakh and Rs. 346.45 lakh was spent respectively.

2.2 In the year 2001-02 as against the plan provision of Rs. 318.93 lakh Rs. 318.93 lakh is anticipated to be spent.

2.3 During the 9th plan period financial assistance was given 6626 beneficiaries by spending an amount of Rs. 495.42 lakh. Training was imparted to 3233 beneficiaries during 9th Plan period. Main emphasis was given in 9th plan period in areas like subsidy to spinners, investment subsidy, Assistance to Family oriented units, Marketing Assistance and Assistance to raw material etc.

3.0 Proposals for the 10th Plan and Annual Plan 2002-03

3.1 A provision of Rs. 1700.00 lakh is proposed for the 10th plan period, whereas for the year 2002-03 an amount of Rs. 340.00 lakh is provided.

3.2 For the intensive rural industrialisation, effective action will be taken for promotion, extension and quantitative improvement to raise capacity/efficiency by imparting training to the rural youth in the use of improved tools and modern techniques. Cluster approach will be followed for intensive development of the various industries. It is proposed to establish minimum five units in those villages having population ranging from 1000 to 2000 during the 10th Plan period and hence about 51000 units would be established, that will provide employment to about 1,65,000 rural folks in rural areas. During 10th Plan Period it is proposed to give rebate on Khadi production to 22500 units, like wise to promote the spin 40,000 spinners are proposed to be benefitted. Under this scheme the Board proposes to benefit 100% women beneficiaries. For improvement the quality and efficiency 1500 artisans are proposed to impart training during 10th plan period. To create new employment in rural areas 7250 beneficiaries are proposed to assist. Assistance in Raw Material and Marketing 5500 & 2000 beneficiaries respectively are proposed to be assisted. To communicate the activities of the Board and demonstrate the products 200 exhibitions are proposed to organise during 10th plan period.

9.5 Handlooms

In may 1990 Department of Rural Industries has been established with the aim to promote handloom, powerloom and small industrial co-operatives to provide employment to the people. The strategy to development in the handlooms sector comprises expansion of handloom industry, training of weavers and non-weavers for skill up-gradation, improving the quality and design of handloom cloth, providing modernised handlooms and ensuring development of enterpreneurship in the weaver community.

In 8th and 9th plan the emphasis was on development and strengthening of this sector through co-operatives, beside this the welfare schemes were also taken up to uplift the living standard of weavers. To increase the productivity the weavers need a congenial environment and suitable infrastructure. Considering the problems faced by weavers its essential to take necessary steps to provide better workplace and security.

2. Targets and Achievements in 9th Plan

2.1 A provision of Rs. 3190.00 lakh at the constant prices of 1996-97 prices was provided for the 9th Plan period. In the year 1997-98, 1998-99, 1999-2000 and 2000-2001 as against the plan provision of Rs. 695.00 lakh Rs. 655.50 lakh, Rs. 655.00 lakh and Rs. 419.62 lakh an amount of Rs. 521.28 lakh Rs. 570.64 lakh, Rs. 521.27 lakh and Rs. 298.78 lakh was spent respectively. Schemes implemented during 9th plan period were mostly for the welfare of the weavers and for the improvement of their skills.

2.2 In the year 2001-2002 an amount of Rs. 566.90 lakh is expected as expenditure against the plan provision of Rs. 579.76 lakh.

2.2 During 9th plan period 8106 weavers were given training for skill-upgradation. For this purpose an amount of Rs. 532.54 lakh was spent, 352 weavers primary societies were benefitted with marketing aid of Rs. 382.00 lakh, 3526 members of societies were given Rs. 51.26 lakh in form of working capital.

3. Proposals for the 10th Plan and Annual Plan 2002-2003

3.1 The 10th Plan's main objectives are :-

1. Implementation of Government policies through motivation to expand rural industrial sector.

2. To ensure availability of raw material

3. To provide facilities to impart training to weavers for skill up-gradation.

4. To provide design inputs, publicity, marketing incentive, working capital loans, product development and infrastructure support.

5. Marketing support at Micro & Macro level to societies and state organisation.

6. Installation of CAD/CAM system for improvement of designs.

7. To provide information to weavers about changing consumer preferences, fashion trends and technological development.

8. To strengthen competitiveness of products by creating technological awareness.

9. To give substantial impetus to export of fabrics, made ups and handicrafts.

10. To organize marketing through National Handloom Expos, District level events, fairs, Melas etc.

11. Assistance to be made available under welfare schemes to construct workshed cum housing, Thrift fund, group insurance and health package.

12. Strict inforcement of Handloom Reservations Act through enforcement machinary provided under 9th plan to protect the interest of weavers.

13. To establish better co-ordination with rural development deptt. programmes to achieve maximum development of rural areas.

14. To create and reactivate defunct societies/units.

15. To provide maximum work to weavers in govt. supplies.

16. Integrated development of areas through cluster approach.

3.2 During the 10th plan period the proposed outlay is Rs. 2943 lakh and provision of Rs. 580.00 lakh provided for the annual plan 2002-03.

3. 3 During the annual plan 2002-2003 40 societies are proposed to be assisted for management reorganisation and 118 societies will be given aid to strengthen their marking arrangements.

9.6 Mineral Resources

The state of Madhya Pradesh is richly endowed with huge reserves of basic raw materials and ores which form the spearhead of the state’s industrial growth. The un-devided Madhya Pradesh used to provide a large spectrum of mineral resources right from the minerals of key sector (lime-stone, dolomite, bauxite, iron ore) and energy sector (coal) to diamonds and gemstones. Out of the total known mineral resources (of ten major minerals) of the un-divided M.P., 62.25% still lie in the new Madhya Pradesh and even now it is one of the seven mineral rich states of the country.

The primary objective of the plan schemes of mineral development has been to locate new mineral belts, improve process of exploitation of the existing mines and to encourage setting up mineral based industries. The Directorate of Geology and Mining, Madhya Pradesh carried out investigation for varieties of minerals occurring in the state under and specific planned programme contemplated periodically for the 9th plan period.

2. Targets and Achievements in 9th Plan

2.1 For the 9th plan the proposed outlay was Rs. 2103 lakh at constant prices of 1996-97. During 1997-98, 1998-99, 1999-2000 and 2000-01 as against the plan provision of Rs. 450.00 lakh, Rs. 995 lakh, Rs. 895 lakh and Rs. 528.14 lakh an amount of Rs. 518.13 lakh, Rs. 587.58 lakh, Rs. 619.75 lakh and Rs. 558.02 lakh was spent respectively.

2.2 In the year 2001-2002 an expected expenditure is Rs. 362.13 lakh as against the plan provision of Rs. 523.68 lakh.

2.3 During the 9th plan period (up to year 2000-01) survey and mapping, pitting and trenching and drilling and chemical analysis of samples was done in 76,787 sq.km., 767 Cum., 39996 meters and 144967 radicals, respectively.

3. Proposals for the 10th Plan and Annual Plan 2002-03

3.1 The following programmes/activities will be undertaken during the 10th Five Year Plan:-

• Survey and Mapping of Minerals in 45000 sq.km., pitting and trenching 300 cu.m., drilling 25000 meters and sampling 22500 Nos.
• Training to staff and officers (25 Nos.) in modern technology.
• Construction of office building for Head Office and Regional Offices.
• Strengthening and Modernisation of Laboratories.
• To equip the deptt. by computers.

3.2 An outlay of Rs. 32.15 crore is proposed to for the 10th five year plan and Rs. 7.35 crore for the Annual Plan 2002-03 is provided.

3.2 For the 10th plan the department have proposed three new schemes e.g. construction of office building for Head Office and Regional Office, modernisation of laboratories and computerisation.