IDENTIFICATION OF BACKWARD AREAS IN INDIA
Dispersal of industries to prevent locational concentration has been one of the objectives of the industrial policy and the licensing mechanism. The 1960 Committee on Dispersal of Industries was the first to identify backward areas for the purpose of rural industries. In 1969, the Planning Commission set up two working groups. The one under B. D. Pande was to identify backward areas and formulate a set of criteria for this purpose. The other one under N. N. Wanchoo was to suggest fiscal and financial incentives to stimulate industrialisation of backward areas.
Based on the Pande Committee's ~:riteria for backward states and districts, the Planning Commission outlined the following conditions for identification of backward areas for the purpose of rural industrialisation:
1. per capita foodgrains or commercial" crop production;
2. ratio of agricultural workers in total population; 3. per capita industrial output;
4. number of persons per lakh population in secondary and tertiary activities;
5. peT capita electricity COJ1,sumption;
6. length of surfaced roa-ds or railway mileage per
population.
As per these criteria, there were ten industrially backward states-Assam, Nagaland, Himachal Pradesh, Rajasthan, Uttar Pradesh, Bihar, Orissa, Jammu and Kashmir, Andhra Pradesh, Madhya Pradesh-and all the union territories (including all the North-Eastern states and Goa) except Delhi, Chandigarh and Pondicherry. In all, 238 districts were id.entified as backward, comprising 60 per cent of the country's area and population.
The major incentives given by the centre to backward areas include (i) concessional refinance scheme of IDBI, (ii) interest subsidy, (iii) technical consultancy services; (iv) seed margin assistance; (v) income tax relief; (vi) special facility for importing raw materials; (vii) central investment subsidy (discontinued under new economic policy). Also, the states can provide land at concessional rates, relief fro sales tax, concessional rates for power, etc.
More Recent Criteria According to these criteria, total of 253 backward districts have been identified. The have been put into tl;\ree categories
A: No Industry Districts These include hilly and trib areas which have no large and medium industry. There a 87 such districts- Madhya Pradesh has 18, Uttar Prade~ has 11. Maharashtra, Tamil Nadu and Kerala have non
B : Backward Areas in Backward States These a eligible for central investment and subsidy. There are! such districts.
C : Backward Areas in Other States These are eligib for concessional finance and are from neither A nor There are 112 such districts.
These districts are entitled to investment subsidy at the following rates
A: 25 per cent, subject to a maximum of Rs 25 lak
B : 15 per cent, subject to a maximum of Rs 15 lak
C : 10 per cent, subject to a maximum of Rs 10 lak
Showing posts with label Industrial Region. Show all posts
Showing posts with label Industrial Region. Show all posts
Wednesday, November 4, 2009
Agra-Mathura-Meerut-Saharanpur and Faridabad-Gurgaon-Ambala Belts
Agra-Mathura-Meerut-Saharanpur and Faridabad-Gurgaon-Ambala Belts Both these belts merge in an agglom~ration in the vicinity of Delhi. A number of industrial clusters have assumed importance in this belt after indepenpence, helped by hydel power from Bhakra and thermal power from Harduaganj and Fc.ridabad. The majorio/ of industries in this belt are agro-balsed industries like sugiir and textiles. The important nodal centres and the indu~triestl;ley support are given below.
Agra: glassworks, iron foundries, leather goods;
Mathura: oil refinery, petrochemicals;
Faridabad: engineering, electronics;
Saharanpur, Yamunanagar: paper mills;
Meerut: sugar.
Agra: glassworks, iron foundries, leather goods;
Mathura: oil refinery, petrochemicals;
Faridabad: engineering, electronics;
Saharanpur, Yamunanagar: paper mills;
Meerut: sugar.
The Chhotanagpur Plateau Region
The Chhotanagpur Plateau Region The factors which favoured industrialisation of this region include the following.
(i) Discovery of coal and iron in the Bihar-Orissa belt, and location of these resources in close proximity to each other facilitated easy utilisation.
(ii) Easy availability of power from the Damodar Valley Project and from coal-based thermal power projects helped in industrialisation.
(iii) Availability of cheap labour from Bihar, Orissa and eastern Uttar Pradesh was of great advantage.
(iv) Proximity to port and access to large market in the vicinity also worked to the advantage of this belt.
The important nodal centres in the Chhotanagpur region.t\clpde Ranchi, Dhanbad, Chaibasa, Sindri, Hazaribagh, Jamshedpur, Daltonganj, Garwa and Japla. The important industries in this region include iron and steel, heavy engineering, machine tools, fertilisers, cement, paper, locomotives and heavy electricals.
(i) Discovery of coal and iron in the Bihar-Orissa belt, and location of these resources in close proximity to each other facilitated easy utilisation.
(ii) Easy availability of power from the Damodar Valley Project and from coal-based thermal power projects helped in industrialisation.
(iii) Availability of cheap labour from Bihar, Orissa and eastern Uttar Pradesh was of great advantage.
(iv) Proximity to port and access to large market in the vicinity also worked to the advantage of this belt.
The important nodal centres in the Chhotanagpur region.t\clpde Ranchi, Dhanbad, Chaibasa, Sindri, Hazaribagh, Jamshedpur, Daltonganj, Garwa and Japla. The important industries in this region include iron and steel, heavy engineering, machine tools, fertilisers, cement, paper, locomotives and heavy electricals.
Madurai-Coimbatore-Bangalore Region
Madurai-Coimbatore-Bangalore Region
It is a predominantly cotton and sugarcane growing region, and has developed around silk textiles, sugar, chemicals, machine tools and leather goods industries. The region receives hydel power from Mettur, Sharavathi, Sivasamudram, Pap ana sam and Pykara projects. Various public sector ent~rprises located in this belt include the Hindustan Machine Tools, the Visveshwaraiya Iron and Steel Works, the Bharat Electronics, the BHEL, the Indian \Telephone Industry and the Hindustan Aeronautics Limited. The important industrial centres in this belt include Madurai, Sivakasi, Tiruchirappalli, Bangalore, Madukottai,' Mandya, Mettur, Mysore and Coimbatore.
It is a predominantly cotton and sugarcane growing region, and has developed around silk textiles, sugar, chemicals, machine tools and leather goods industries. The region receives hydel power from Mettur, Sharavathi, Sivasamudram, Pap ana sam and Pykara projects. Various public sector ent~rprises located in this belt include the Hindustan Machine Tools, the Visveshwaraiya Iron and Steel Works, the Bharat Electronics, the BHEL, the Indian \Telephone Industry and the Hindustan Aeronautics Limited. The important industrial centres in this belt include Madurai, Sivakasi, Tiruchirappalli, Bangalore, Madukottai,' Mandya, Mettur, Mysore and Coimbatore.
Ahmedabad-Vadodara Region
Ahmedabad-Vadodara Region This region is characterised by an inland location in the cotton growing Gujarat plains. The following factors helped the industrialisation of this region.
(i) The decline of cotton textile industry of Mumbai due to high transportation costs of cotton from the peninsular region and easy access of Ahmedabad-Vadodara region to raw cotton worked to the advantage of this belt.
(ii) The petrochemical industry around Vadodara and Ankaleshwar developed after oil was discovered in the Gulf of Cambay.
(iii) Location of Kandla port is an obvious advantage. (iv) The densely populated northern plains in close proximity provided an easy market.
Now the region has diversified into diesel engines, textiles machinery, pharmaceuticals and food processing.
(i) The decline of cotton textile industry of Mumbai due to high transportation costs of cotton from the peninsular region and easy access of Ahmedabad-Vadodara region to raw cotton worked to the advantage of this belt.
(ii) The petrochemical industry around Vadodara and Ankaleshwar developed after oil was discovered in the Gulf of Cambay.
(iii) Location of Kandla port is an obvious advantage. (iv) The densely populated northern plains in close proximity provided an easy market.
Now the region has diversified into diesel engines, textiles machinery, pharmaceuticals and food processing.
Mumbai-Pune Industrial Region
Mumbai-Pune Industrial Region In 1774, the British acquired the island of Mumbai" as a site to develop a port. In 1853, the 34-km Mumbai-Thane rail ushered in industrialisation. Opening of routes through Bhorghat to Pune and through Thalghat to Nasik extended the region's influence to the hinterland. The opening of the Suez Canal in 1869 established closer links with Europe. Mumbai region had a favourable climate for cotton textiles because of the following reasons:
(i) easy availability of raw cotton from the black soil belt of Narmada and Tapti;
(ii) coastal humid climate which was ideal for weaving and spinning;
(iii) easy availability of hydel power fromm the Western Ghats;
(iv) location of the port on the west~oast which ensured ready access to western markets; and~
(v) easy import of capital goods through t. e port.
Thus, this region emerged as the 'cottonopoJis' o. India. With cotton textiles, a chemical industry also deveh:. ed soon. Today, the belt has extended to Kurla, Jogeshwa. j, Ghatkopar, Villeparle, Andheri, Kalyan, Pimpri, Pune, Bhandup and Thane. The product range of the industry in the Mumbai-Pune belt includes textiles, chemicals, engineering, electricals, drugs, transport equipment, plastic and synthetic goods, leather goods and ship-building. The major problems faced by this belt after independence indude the following.
(i) Eighty per cent of the irrigated, long staple cotton growing areas went to Pakistan.
(ii) Congestion is a serious problem and reclamation of more land from the sea is not going to be economical.
(i) easy availability of raw cotton from the black soil belt of Narmada and Tapti;
(ii) coastal humid climate which was ideal for weaving and spinning;
(iii) easy availability of hydel power fromm the Western Ghats;
(iv) location of the port on the west~oast which ensured ready access to western markets; and~
(v) easy import of capital goods through t. e port.
Thus, this region emerged as the 'cottonopoJis' o. India. With cotton textiles, a chemical industry also deveh:. ed soon. Today, the belt has extended to Kurla, Jogeshwa. j, Ghatkopar, Villeparle, Andheri, Kalyan, Pimpri, Pune, Bhandup and Thane. The product range of the industry in the Mumbai-Pune belt includes textiles, chemicals, engineering, electricals, drugs, transport equipment, plastic and synthetic goods, leather goods and ship-building. The major problems faced by this belt after independence indude the following.
(i) Eighty per cent of the irrigated, long staple cotton growing areas went to Pakistan.
(ii) Congestion is a serious problem and reclamation of more land from the sea is not going to be economical.
Hooghly Industrial Belt
Hooghly Industrial Belt This belt developed around Kolkata as the nucleus. The mouth of River Hooghly presented ideal conditions for development of a port. The Ganga and Brahmaputra linked the belt with rich hinterland. These links were later supplemented and strengthened by rail and road links. The following factors helped in industrialisation of this belt.
(i) Kolkata was the British Indian capital from 1773 to 1912. This ensured continuous British capital investment.
(ii) Tea plantations in close proximity in Assam and Bengal, processing of indigo earlier and jute later coupled with the discovery of coal and iron ore in the Chhotanagpur Plateau region contributed to the industrial development of Hooghly industrial region.
(iii) Cheap labour was easily available from thickly populated and out-migrating states of Bihar, Orissa and eastern Uttar Pradesh.
By 1921, the Hooghly region accounted for two-thirds of the total factory employment in the country. Presently, this region supports a variety of industries which include iron and steel, heavy engineering, rail equipment, transport equipment, chemicals, oil refining, agro-processing, textiles, paper, fertilisers and diverse consumer goods.
The major problems faced by this region, after independence, include the following.
(i) Eighty per cent of the jute hectarage went to Bangladesh, while most of the factories were located on the banks of Hooghly.
(ii) The direct inland link with Assam got brok~n.
(iii) Silting of Kolkata port is a major p~oblem. Farakka barrage is expected to help the situation, while the new Haldia port may ease the pressure to some extent.
(i) Kolkata was the British Indian capital from 1773 to 1912. This ensured continuous British capital investment.
(ii) Tea plantations in close proximity in Assam and Bengal, processing of indigo earlier and jute later coupled with the discovery of coal and iron ore in the Chhotanagpur Plateau region contributed to the industrial development of Hooghly industrial region.
(iii) Cheap labour was easily available from thickly populated and out-migrating states of Bihar, Orissa and eastern Uttar Pradesh.
By 1921, the Hooghly region accounted for two-thirds of the total factory employment in the country. Presently, this region supports a variety of industries which include iron and steel, heavy engineering, rail equipment, transport equipment, chemicals, oil refining, agro-processing, textiles, paper, fertilisers and diverse consumer goods.
The major problems faced by this region, after independence, include the following.
(i) Eighty per cent of the jute hectarage went to Bangladesh, while most of the factories were located on the banks of Hooghly.
(ii) The direct inland link with Assam got brok~n.
(iii) Silting of Kolkata port is a major p~oblem. Farakka barrage is expected to help the situation, while the new Haldia port may ease the pressure to some extent.
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