Gulbarga Taluk

Gulbarga District – Gulbarga Taluk Industrial Perspective Plan1

CHAPTER – 1

PREAMBLE

The Small Industries Development Organization, ministry of Small Scale Industries, Government of India, has been preparing MACRO Level State & District Industrial Potentiality Reports for the past many decades. The reports served as reference material towards planning for rapid Industrial development with emphasis towards Small Scale Sector and assisted in proper planning for the development of the districts.

The Government of Karnataka has now taken a positive step to conduct potentiality reports at the MICRO level to correct the regional imbalances with a delimitative objective of implementing the Nanjundappa Committee report recommendation for development of backward regions.

The District Industries Centers have prepared a prospective District wise Industrial Development Plan for development of Industrial activities for the period 2000-2005. This micro level taluks industrial potentiality report for each district seeks to serve as a guide for Rural industrialization for the period 2006-11.

The Department of Commerce & Industry has identified a number of professional agencies to prepare the potentiality report and is being coordinated by Tecsok The Director Small Industries Service Institute Hubli has been assigned the task of preparing the District Industrial Prospective Plan (DIPP) for all Taluks of Gulbarga & Bidar Districts.

1.1 Objectives of the Study: -

The District Industrial Prospective Plan will - Highlight the strength, resources, scope and opportunities in each

taluk of the district to provide the prospective entrepreneur in identifying the producer/activities and locating his project suitably.

Serve as a guide for the Department of Industry & Commerce, as well as other promotional agencies for taking action for the industrial growth

Help in monitoring the accelerated development and orderly growth of industries which will balance development throughout the district.

Enable the District Industries Centre to guide the prospective entrepreneur to set up industries in different locations of the district.

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Serve as an Action Plan for implementation by District Industries Centre, Taluk Industries Centre and other concerned promotional agencies.

1.2 Methodology :-The achievements and current status of the small scale sector was

obtained from the District Industries Center Gulburga. Besides various Government Departments/offices like KSFC, lead Bank NABARD, Agriculture Department, Horticulture Department, Sericulture Department, Animal Husbandry Department, Dairy, KIADB, KSSIDC, KVIV, Zilla Parishad, etc were also contacted and information were collected.

The team held useful discussions with the Small Scale Industries Association, Hyderabad-Karnataka Chamber of Commerce and Industry, Gulburga and knowledgeable persons in trade and industry regarding scope of industries, availability of raw materials, infrastructural skills in the district and at the taluk level, and problems of existing industries etc

The team also collected useful information in respect of places of interest / tourism in the taluk to identify the scope for the development of tourism to attract the floating population and thereby help the income generation of the local people.

The team collected secondary data from the office of Small Industries Service Institute Hubli,& Bangalore, State Planning Department, Bangalore, Director of Industry & Commerce, Bangalore, Director of Census Operation, Bangalore and some other concerned departments to draw conclusions on the scope of industries.

1.3 Disclaimer :- Data has been obtained from the latest available Government

Publication. As far as possible, Taluk wise data has been compiled and

incorporated in Taluk Report. Information as obtained from Government Departments/office was

incorporated in the taluk report without modification.

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1.4 Structuring of the Report :-

The Report is presented in two parts as follows -

Part – A comprising three chapters.

Chapter – 1 Commences with the Preamble

Chapter – 2 Presents the identified investment opportunities followed by

Chapter – 3 Action Plan for Implementation

Part – B comprising eight chapters, forms the basis for Part-A

Chapter – 4 Outlines the Statistical profile

Chapter – 5 Outlines the demography, geography and other features

Chapter – 6 Portrays the resources endowment – natural & human

Chapter – 7 Takes stock of infrastructural facilities and new developments

Chapter – 8 Recounts the existing industrial base

Chapter – 9 Presents the SWOT analysis forming the basis for identifying Investment Opportunities and the consequent Action Plan.

Chapter – 10 Outlines the Central & State Government Schemes

Chapter – 11 Address of Promotional Agencies.

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CHAPTER - 2LIST OF IDENTIFIED INDUSTRIES

GULBARGA TALUKA. Agro & Food based1. Dall Mill2. Edible Oil3. Banana chips4. Masala Powder5. Paped Making6. Roasted & Salted7. Decorating of G.nut8. Tomato Ketchup9. & syrup10. Tuti fruti11. polishing 12. Jam Jelly etc.13. Dehusking of pulses14. Fried gram15. Briquietted Fuel16. Agarabatti17. Vermi Compost18. Oil Ghana19. Poha20. Potato Chips21. Dehydration of onion22. Rice huller & Flour 23. Mill24. Jaggery Unit25. Milk Diary units26. Milk Product27. Bread & Bakery28. products29. Areated water &30. soft drinks31. Ice Candy

B. Glass & Ceramics 1. Hallow Concrete Blocks2. Stone ware pipes3. Mineral Pulverizing4. Stone crushing5. Mosaic tiles6. Hosiery Products

6. Stone Polising7. Table molded bricks8. Hydrated Lime9. Lime Powder10. Chalk Crayons11. Pottery

C. Chemical & Plastic1. Nylon Strapping2. H.D.E.P.Films & Printed Box3. P.V.C.Pipes & fittings4. Blow moulded plastic

container5. Thermo moulded Plastic

items6. Injection mouldedPlastic

items7. Camphor Tablet Making8. Plastic reprocessing9. Paints & Primer

manufacturing10. Electroplating 11. Synthetic gums12. Kumkum13. White Deodorant

D. Paper & Paper products1. Cardboard & Corrugated

Boxes2. Paper Envelopes3. Paper bags4. Book binding note Book

E. Textiles1. Readymade garments2. Surgical gauze &

bandage3. Power loom4. Hand loom5. Kamble weavings

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G. Engineering /Mechanical1. Agricultural implements2. Steel Furniture3. Aluminum Furniture4. Aluminum Utensils5. Wooden furniture6. Aluminum Auto Ornamental

Sittings7. Auto Body Building8. Sheet Metal works9. Builders Hardware(N.F)10. Fabrication Unit11. Umbrella Assembly12. Improved Bullock Cart

making13. T.V & Room Cooler Stand

F. Leather & Rubber 1. Leather Shoes & Chappals2. Tyre Retrading

19. Cyber Café20. Fire Injection Servicing21. Weigh Bridge22. Diesel Engine Servicing23. Automobile Servicing Station24. Mobile Phone Repairing

I. Tourism1. Hotel2. Fast Food Centre3. Travel Agencies4. Mini Bus 5. Auto6. Taxi Service

H. Servicing1. Footwear repairing2. Carpentry3. Repair of Electrical

appliances4. Vulcanising5. Textile Dyeing6. Laundry (Ironing)7. Rewinding of Electric motors8. Battery Reconditioning9. Automobile Garages10. Tailoring & Stitching11. Cycle Repairing12. Electronic service centre13. Fax,STD Booth14. Tractor servicing/repair15. Common Service centre16. Black Smith17. Agro Clinic18. Bulk Milk Cooling Unit

(BMCU)

J. Miscellaneous1. Cold Storage2. Aerated Water3. Computer Training Institute4. Rubber Stamp making5. D.P.T.6. Ice blocks & Ice manufacture7. Cane & bamboo item

manufacturing8. Bone Meal9. School Uniforms & Bags

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CHAPTER – 3ACTION PLAN

DISTRICT INDUSTRIAL PROSPECTIVE PLAN GULBARGA TALUK

OBJECTIVE: To evolve a practical implementation action plan for industrialization

at Taluk level-Gulburga Taluk based on the inferences of the study report.

Essential features of the report: Inadequate infrastructure in terms of Land, power, &

communication: Little Scope of Large & medium industries Scope for Agro based, Dairy, food products, consumer chemicals &

Ready-made garments industries.

Prominent Industry: Dal mill industry.

Target Group of entrepreneurs. For common items like - Women, SHGs. unemployed

Potato chips, Masila Power, educated.Papad Making etc.

Agro clinics - Agriculture graduates

Dal Mill, Oil Mill etc with - Young entrepreneurs fromheavy investments economically potential family

Workshops, repairing shops etc. - Skilled persons from ITI,ATI

& service industry.

Permit based industries & - Women, SHGs.BMP Milk Products etc.

Sophisticated Chemical Industries - Engineers, Experienced young entrepreneurs.

Mechanical sophisticated Industries - Engineers ,Experienced young entrepreneurs.

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IT/BT Industries persons - Engineers & Experienced Identification of projects :1. A consensus has to be arrived between Technical organizations,

promotional institutions and financial institutions on the potential projects, scale of investment and requisites for Engineering graduates, Agricultural graduates.

2. A proposed list of Tiny & self-employment industries for Unemployed graduates, women entrepreneurs, self-help groups, experienced entrepreneurs etc

Preparation of Project reports :Tecsok, Cedok, KVIC, & SISI must prepare project profiles of

identified industries for each category of target groups.

IMPLEMENTATION PLAN :

Linkages : Establishing effective linkages between SISI, DIC, NABARD,

KVIC, KVIB, LEAD BANK, CEO Zilla Panchayat , TECSOK & CEDOK : chairman CEO Zilla Panchayat

Agenda for a wholistic approach : To identify and approve of projects To formulate a system for identification of entrepreneurs. To prepare a schedule for implementation To define the escort services from each organization To define the financial and other commitments by each organization To devise a suitable reporting & monitoring system Coordination & establishing commonality between all development

schemes from all agencies Evolve common EDP & Training programme for all schemes for all

agencies.

Escort services : Industrial development at any level involves the following essential

steps. Identifying potential projects Preparation of project profiles Technical assistance to entrepreneurs in setting up the industry. Identifying entrepreneurs Motivation Entrepreneur development

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Skill development training Management development practices Financial assistance Marketing guidance.

The escort services to complete the whole process from motivation to selection of entrepreneurs, training, preparation of project reports, technical assistance financial assistance etc has to be made available to the entrepreneur on a continuous basis and momentum sustained to ensure success of the development activities.

Identification of Projects :The potential industries for each Taluk is identified based on past

experience, projected growth and availability of local resources in terms of HRD, raw material and demand etc.

Identification of entrepreneurs :Entrepreneurs are identified through motivation programmes and

promotional efforts of NGO’S & SHG’S in the taluks.

Identity of Entrepreneurs :Majority of entrepreneurs are from low-income group with modest

education and are first generation. Most are Women entrepreneurs. Educated [graduates] are few in numbers.

Hence the target group as potential entrepreneurs are those with formal education SSLC, PUC etc with no background of exposure in an industrial activity. The financial capabilities in terms of mobilization towards investment ranging from Rs 5000 to Rs. 25000/-

In effect the prospects for setting up new industries will be generally restricted to projects with Investments on capital & working capital of Rs 2 to 3 lakhs. At best these can be termed as Self-employment ventures for income generating opportunities and providing employment opportunities for one or two persons.

Projects with investments ranging from Rs 5 lakhs and more can be considered only by educated entrepreneurs with financial resources and capable of sustaining the unit through established markets.

Such entrepreneurs too would require escort services in terms of Technical information and assistance to guide in preparation of project reports, financial assistance etc. from professionals. They would also need

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to be encouraged with incentives and physical infrastructures and financial assistance with out delay.

The target group for a planned development at the taluk level at least during the initial two to three years, would therefore comprise of Entrepreneurs with minimum undergraduate level education and low investment potential. Women more than men, SHGs etc.

The potential industries that could be promoted by such entrepreneurs would therefore be restricted to KVIC projects Dairy products Consumer Chemicals for rural and semi –urban areas Ready made garments Skill oriented self-employment projects – Hand embroidery, Jute

bags, Rexene school bags, artificial jewelry, soft toys, etc. Home cooked food products,

All these projects fit into the schemes of PMRY, KVIC, etc and can be classified as “DO- ABLE” and “ACHIEVEABLE” through an integrated and a well-defined action plan.

Appropriate technologies and agencies to assist in implementing the projects is available and within the scope and targets of the organizations.

- ACTION PLAN -

An action plan can be envisaged ONLY IF the inputs in terms of providing all the essential escort services – consultancy, technical assistance, financial assistance and general motivation and guidance etc - are available to the entrepreneur for a sustained length of period.

All efforts at identification of entrepreneurs, conducting training programmes, etc would be an attempt in vain if the two most important elements are not made available to the entrepreneurs.

1. Financial assistance2. Sustained escort services at the taluks itself.

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Agencies providing escort services:District Industries CentersCEDOKTECSOKSmall Industries Service InstitutiveKVICKVIBDepartment of Animal HusbandryNationalized banks, Cooperative banks, Gramina banks etc

Phase 1 -All agencies should agree to promotional methods and adopt suitable

plans from selection of entrepreneurs, identification of projects and in the financing of projects for each taluk for each year.

Technical assistance and escort services must be made available by all these agencies on a systematic basis through mutually acceptable terms and a time frame to implement “DO- ABLE” and “ACHIEVEABLE” projects.

A suggestive operational mechanism to achieve implementation of plan:

1. Identify a Suitable location for all interactions between institutions, entrepreneurs etc a Knowledge Center to be the focal point for all activates.

2. All agencies agree on the action plan in terms of no. of entrepreneurs identified projects, financial assistance, scheme through which to implement, training , management and other escort services.

3. The center is positioned with at least one person from any one of the organizations at any moment of time to provide the escort services on rotational basis.

4. Ensure proper linkages with all schemes and organizations

“Motivation, Technical information and Assistance will be the key to success “

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Based on the above an action plan has been prepared

1. Meeting with all organizations providing technical assistance and escort services: SISI / DIC / TECSOK/ KVIC/KVIB/Dept.of Animal Husbandry/Dept. of Horticulture/ Zilla panchayat

Agenda : To identify and approve of projects To formulate a system for identification of entrepreneurs. To prepare a schedule for implementation To define the escort services from each organization To define the financial and other commitments by each

organization To devise a suitable reporting & monitoring system

2. Schedule for Programmes : Motivation Entrepreneur development Technical counseling Management development programmes Project report and financial assistance Project implementation Technical assistance and guidance.

3. Action Plan for each activity and agency Activity:

Agency: Schedule: Budget: No of beneficiaries: Government support etc.

Phase 2 (Providing Urban Amenities in Rural Areas) – Establishing Knowledge center

Establishing a Common facility and “Incubation Centre” for a group of entrepreneurs engaged in similar activities\

Establishing a brand image and exploring bigger markets

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CREDIT FACILITIES AND FINANCING

Availability of finance is essential for the speedy industrialization of an area. Finance is required both for fixed and working capital of the industry. State Bank of India is the lead Bank in the district. Other important banks in the taluk are Canara Bank, Syndicate Bank, State Bank of Hyderabad, Krishna Grameena Bank etc. Besides, Karnataka State Financial Corporation is also financing the industries. Gulbarga Taluk has 45 commercial bank branches and 9 branches of Krishna Grameena Bank. Among the Commercial banks the State Bank of Hyderabad has the maximum number of Branches. The bank network at present seems to be adequate. However, they should come forward to finance the entrepreneurs to set up the industries.

In addition to the above commercial banks Grameena Banks, KSFC etc there are six Branches of urban Co-operative Banks, and 4 PLD Banks who also provide finance. There are 479 number Credit Co-operative Societies in the taluk consisting of 89,598 members. The KSFC has financed 25 Nos. of units and disbursed Rs. 412.73 lakhs out of sanction of Rs. 432.65 lakhs in Gulbarga taluka during 2004-05.

The district Annual Credit plans for non farm sector (SSI) and trade and services in Gulbarga Taluk for the year 2003-04, 2004-05 and 2005-06 are placed below. Table 7.8 indicates Annual Credit Plans for three years.

Table no.7.8Annual Credit plan for 2003-06 for Gulbarga Taluk

(Rs. In ‘000)Year Non Farm

SectorTrade & Services

2003-04 152254 3671002004-05 82535 4523552005-06 153281 502750

Source: - Annual Credit Plan – Gulbarga District.

It can be seen from the table that there was less credit available in 2004-05 for the non-farm sector. However, the annual credit plan for 2005-06 shows more credit available for both non-farm sector and Trade and Services. It is expected that because of the higher outlay in non-farm and trade and services sector, there will be more scope for setting up of SSIs and Service Industries in future.

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Potential Linked Physical & Financial estimates for Non-farm sector 2006-07

Estimates of some non farm sector for the 2006-07 of Gulbarga Taluk prepared by NABARD is placed below which will reflect the improvement in infrastructure and which will enhance industrialization.

Potential Linked Physical & Financial estimates for Non-farm sector2006-07 - GULBARGA TALUK

(Rs. in Lakhs)Activity Unit

CostUnit Size

Bank Loan

Unit SizePhysical Financial

Handloom/Power loom 0.300 Nos. 0.255 100 25.50Tiny Industries 0.250 Nos. 0.213 195 41.44Village Industries 0.250 Nos. 0.213 195 41.44Rural Artisans 0.250 Nos. 0.213 195 41.44SSI 4.500 Nos. 3.825 250 956.75Miscellaneous 0.150 Nos. 0.128 200 25.50

NFS Total Block Capital 1131.56 of which Working Capital Rs.452.62

The Potential linked Credit Plan of NABARD has projected a credit outlay of Rs.1131.56 lakhs including working capital to an extent of Rs. 452.62 lakhs. It may therefore be concluded that there is adequate provision for credit through banks under various schemes of the Government.

The above table indicates that in the future there will be improvements in industrial sector because of the Potential Linked Plan.

Assessment and Phasing of the Potential in Base PLP and Rephasing of Potential on account of infrastructure changes for the year 2006 – 07 Gulbarga District.

Keeping in view the infrastructure available in the district, the base PLP projections has been increased for the year 2006 -07 and shown in the following table

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(Rs.lakhs)

ActivityBASE PLP

2006 -07Updated PLP 2006 -07

Phy Fin Unit Unit Cost

Fin outlay

BankLoan

Handloom 200 60.00 400 0.30 120.00 102.00Tiny Ind 200 50.00 600 0.25 150.00 127.50Village Ind

300 75.00 600 0.25 150.00 127.50

Rural Artisans

400 100.00 600 0.25 150.00 127.50

SSI 500 2250.00 700 4.50 3150.00 2677.50Misc. 1000 150.00 2000 0.15 300.00 225.00TOTAL 2685.00 4020.00 3417.00Of which WC

1074.00 1608.00 1366.80

Provision of adequate working capital to industrial units hardly needed emphasis. Number of small units become sick due to paucity working capital. While the Working capital requirements for one operating cycle is generally capitalized in the Project cost, many new as well as existing units find it hard for arranging additional Working capital for increased production. This is especially so in the case of units assisted by KSFC. Lack of effective co-ordination between KSFC and banks has led to sickness of many units. Keeping this in view, the working capital is estimated at 40% of the Term Loan for the proposed units. Accordingly, banks have to make adequate provisions for working capital to these units in their service area plans. The block-wise and activity-wise allocations of the various investments under the NFS during the year 2006-07 are indicated below

Potential Linked Physical & Financial estimates for Non-farm sector2006-07 -- GULBARGA TALUK

(Rs. in Lakhs)Activity Unit

CostUnit Size

Bank Loan

Unit SizePhysical Financial

Handloom/Power loom 0.300 Nos. 0.255 100 25.50Tiny Industries 0.250 Nos. 0.213 195 41.44Village Industries 0.250 Nos. 0.213 195 41.44Rural Artisans 0.250 Nos. 0.213 195 41.44SSI 4.500 Nos. 3.825 250 956.75Miscellaneous 0.150 Nos. 0.128 200 25.50

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NFS Total Block Capital 1131.56 of which Working Capital Rs.452.62

Review of Ground Level Credit : -The credit flow for NFS during the last five years for the district as

a whole was as under: (Rs.lakh)

Purpose/Year 2000-01 2001-02 2002-03 2003-04 2004-05

Hand loom 0.36 0.30 7.79 6.15 6.55Tiny Sec 2.10 0.70 6.43 5.51 16.17Vill.Ind 8.66 8.29 5.61 8.88 15.67Rural Art 11.26 20.47 21.99 17.36 25.48SSI 278.05 536.43 1553.71 317.69 676.93Misc. 60.52 91.10 46.68 1825.99 426.38Total Ach 360.95 657.13 1642.21 2181.58 1167.18Target 2007.65 2012.14 2162.85 2764.11 1912.32

The lending under NFS has increased from Rs. 1642.21 lakh during 2002-03 to Rs.2181.58 lakh during 2003-04 but decreased to Rs.1167.18 lakh during the year 2004-05 due to industrial sickness and stoppage of lending by KSFC. The target for NFS under DCP 2005-06 is Rs. 2506.07 lakh as against the projection of Rs.3417.00 lakh under PLP 2005-06. The agency-wise lending under NFS for last 5 years was as under:

(Rs. Lakh)

Agency/year 2000-01 2001-02 2002-03 2003-04 2004-05

Com. banks 285.71 445.78 1285.36 2026.92 942.80RRB 72.58 48.0 23.16 148.61 223.11PCARDBS 2.66 1.06 -- 1.53 1.27DCCB -- -- -- 4.52 --KSFC 0.00 162.29 333.69 -- --Total 360.95 657.13 1462.21 2181.58 1167.18

The commercial banks lending has decreased while RRB lending under NFS during 2004-05 has increased. Block-wise disbursement under NFS during

the year 2004-05(Rs.lakh)

Afzalpur Aland Chincholi Chitapur Gulbarga46.09 18.49 96.12 44.91 790.64Jewargi Sedam Shahapur Shorapur Yadgir18.02 4.076 19.59 21.92 70.64New Strategies need

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Out of nearly 7000 SHGs. Promoted by various NGOs/Voluntary Agencies/Self Help Promoting Institutions is in the District about 90% are women groups. But still there is large scope for encouraging women in the field of economic development with the following strategies:-

Co-ordination of the activities of different agencies/Institutions engaged in development of women.

Close liaison by Training Institutes with financial Institutions for ensuring credit linkage to the trainees.

Capacity building of inexperienced and junior NGOs/Voluntary Agencies.

Monitoring of credit flow to women by Controlling Offices of banks.

Involvement of certain Senior NGOs as Resources Agencies for formation, strengthening, training and credit-linking SHGs in co-ordination with banks and NABARD.

Krishna Grameena Bank which is identified by NABARD for replicating Cauvery Grameena Bank model has to concentrate on some identified activities and groups for over-all economic development of women through its Women Development and Technical Monitoring and Evalation Cells.(TME)

Krishna Grameena Bank has set up Technical Monitoring and Evaluation (TME) Cell in its Head Office to give impetus to financing of NFS sector and NABARD has been providing grant assistance to this cell.

DIC may identify locations for group activities based on locally available raw materials and guide the rural people to take-up such activities by co-ordinating with banks for extending credit support.

Targets under employment generation programme like VISHWA, may be fixed keeping in view of the defects / shortcomings identified in the evaluation study report.

Co-ordination between banks and KSFC to solve the problem of providing working capital to sustain the units and effective recycling of funds.

NGOs / Voluntary Agencies to concentrate on the development of RNFS through SHGs by ensuring straining on skill development, financial assistance from Banks etc.

(Extract from Potential Linked credit Plan 2006-07 NABARD - Gulbarga District)

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RECOMMENDED ACTION PLAN 2006 -07 TO 2010-11 (Rs.in lkhs)

Sl. No

Name of Industry Nos Investment Emp.in Nos.

1 Agro & Food based 231 564 12392 Glass & Ceramic 56 252 6193 Chemical & Plastic 40 206 3564 Paper & paper products 7 36 485 Textile Industry 52 156 3436 Leather & Rubber 11 23 477 Engineering & Mechanical 52 146 3168 Miscellaneous 48 98 2589 Servicing 256 488 78310 Tourism related 28 85 74

Total 781 2054 4083

Explanatory Note

Though Gulbarga district is endowed with a variety of natural resources, the district continues to be backward. One of the main reason is the lack of local entrepreneurial talents.

Though people do have surplus money on account of various commercial crops and increase in trade and commerce activities, they are shy of investing in industry and take risks.

It is gathered from NABARD that 6,822 technical graduates, 1,428 nos. of Diploma holder and 3,235 ITI trained persons are unemployed. There is therefore, a need for the creation of strong vibrant entrepreneurial base among the skilled and non-skilled persons through intensive Motivation Campaign, seminar workshops and training.

Organizations like S.I.S.I., CEDOK at Dharwad, Rudsetti etc be given responsibilities to encourage the people to set up industries by providing basic information & need based training etc.

It is learnt that there is significant development in increasing Horticulture Crops production through a Programme already initiated by National Commission on Horticulture. It is informed that about Rs.14 crores will be spent for Horticultural Development of the district during the next 7 years. As a result, Horticultural crops production will go up significantly. Hence, there would be very good scope for fruit processing industries in the near future.

K.V.I.Board should provide finance to the rural artisans to set up village industries and improve rural economy.

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Government should encourage Mall or super markets in different locations of the taluk to facilitate marketing of consumer items manufactured by local industries.

While discussing with officers of GESCOM at Gulbarga, it was revealed that there would be no problems for the supply of electricity.

GMUL (Gulbarga Milk Union Ltd.) has one processing plant at Gulbarga with capacity of 60,000 lpd. Average sale of milk by GUML is only 32,000 lpd. It is learnt that GUML is operating only on five main milk routes and 2 shuttle routes for collection of milk. Therefore, GUML or Zilla Parishat may take action to promote more numbers of Bulk Milk Cooling Units (BMCU) in areas where collection route are not covered.

The District has got 26 nos. of NGOs engaged in socio-economic development of local people. Most of the NGO’s are functioning in all the taluks. They may take action to motivate rural young entrepreneurs to take up manufacturing activities in coordination with DIC and local banks.

There are significant nos. of S.H.G in the district who are involved mostly in agricultural and on DAIRY activities. They may be motivated to take-up processing activities.

The Karnataka Udyoga Mitra or State Electronics Corporation may initiate steps to invite IT industries located at Bangalore or outside the State to set up industries in IT/BT.

DIC may take effective steps for the revival of sick, which are economically viable.

Government may consider to provide more incentives to attract entrepreneurs as industrial development is not progressing inspite of the existing incentives and concessions.

A Knowledge facilitation centre be established in each taluk which will be a nodal centre for all activities to facilitate all agencies for over all development.

Last but not least, the banks should come forward to finance the industrial activities liberally.

The KIADB has taken measures to acquire suitable land in the district. So far the KIADB has developed 320 Industrial plots of which only 9 plots are to be allotted. So the other acquired areas may be developed quickly and made ready for allotment.

KSSIDC had developed 140 industrial plots in Industrial areas in different taluks. Out of these plots only 17 plots are vacant. However, out of 682 industrial shed more than 1/3rd of the sheds are vacant. KSSIDC may take suitable steps like Motivation Campaign etc.

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to attract the Potential entrepreneur to come forward to setup industries in vacant sheds.

Besides, there are no developed industrial plots or industrial sheds in two taluks viz., Afzalpur and Yadgir of the District. Both KIADB and KSSIDC may take suitable steps to provide the above facilities to the potential entrepreneurs of these two taluks. The KSSIDC may also plan to construct 30 readymade sheds each at Shah bad in Chittapur taluk and Aland taluk.

There are about 7000 SHGs promoted in the district out of which about 90% are women group. These SGHs may be motivated by DIC ,KVIC, KVIB and NGOs to take up production of domestic consumer products like Papad making, Vermicelli making, Agarbatti rolling, Detergent Power etc. which would improve their economic level.

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SCOPE FOR INDUSTRIES IN THE TALUK

The important factors considered for identifying suitable and profitable lines of manufacture are resources, (material and human), future improvement in resource mobilization due to NABARD Projects as well as district credit plan, existing infrastructure, likely to give impetus to infrastructure in the future, skill improvement due to proper training by training organizations and motivating SHG Groups to take up manufacturing activities. Besides, present industrial structure and demand for both consumer and industrial goods and services required in the near future have been kept in view while suggesting the scope of Industries in the taluk. In addition to the above views expressed by prospective entrepreneurs, knowledgeable person in trade and industry, Industry Association, Hyderabad Karnataka Chamber of Commerce and Industry; Taluk Industry offices and District Industries Centre, the candidate industry for the next five years have been suggested below. However, the candidate industries suggested are only illustrative but not exhaustive. The identified industries and Matrix—for Development of candidate industry, Investment and Employment Generation in Gulbarga Taluk are given in enclosure.

(Rs.in lkhs)Sl. No

Name of Industry Nos Investment Emp.in Nos.

1 Agro & Food based 236 1173 12592 Glass & Ceramic 128 405 6193 Chemical & Plastic 40 275 3564 Paper & paper products 7 25 505 Textile Industry 52 194 3436 Leather & Rubber 6 23 507 Engineering & Mechanical 54 224 3268 Miscellaneous 48 112 2289 Servicing 265 593 79410 Tourism related 28 150 74

Total 864 3174 4099

Explanatory Notes The candidates industries suggested to be set up during the period 2006

to 2011 as projecting for every year seems to be not realistic. The industries suggested - Keeping in view of the trend of nos. of

industries set up during last five years. Agro clinics have been suggested considering availability of Agri-

graduates who could provide extension and technical services and for

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production of bio-fertiliser and bio-pesticided including vermi composing to the farmers.

Bulk Milk Cooling Units (BMCU) have been suggested as milk collection route of G.M.U. Ltd. are limited and milk is being spoiled due to absence of collection agencies.

No. of Artisans based industries have been suggested considering the artisan available in the taluk which could also improve the rural economy and provid employment to rural artisans.

It is desired that Government may set up a complex at Gulbarga for fruit processing activities.

There is no scope for Ancillary industries. A Cluster Industry Complex may be set up at Gulbarga for catering the

need of Dal industries. It is reported that Dal mills are concentrated in Gulbarga Town which has 67 mills. The Dal mills use traditional technology. Many Dal Mills do not have dryers and sun drying is commonly adopted. Therefore, it is desired that steps should be taken to upgrade the technologies of these mills. It is wished that either the Karnataka Tur Development Board located at Gulbarga or Karnataka Centre for Technological up-gradation located at Bangalore may initiate steps to undertake technological up-gradation of these Dal mill.

A chapter has been written on tourism importance of Gulbarga taluk. Therefore, tourism related activities have been suggested to facilitate the tourists.

Although beyond the scope, still the study team opined that the Zilla Parishat may consider constructing some community centre with dormitory facility accommodation important places of the taluk, low cost ‘Sanchalaya’ (Toilet) through Rural Development Programme which will fulfill some of the aspirations of rural people expressed in ‘PURA’ programme desired by the President of India in his speech. Krishna Grameena Bank may provide A.T.M facilities to the rural people through its branches.

There is scope for setting up of one complex for readymade garments manufacturing industries for domestic use as well as for export.

The Government may consider for setting up of one complex for IT/BT industries at Gulbarga city. However, the investment may vary from Rs. 50 crore to Rs.100 crore depending on requirement of IT Industries. The proper infrastructure may also be created to cater the need of IT Industries.

The Government may also plan to encourage the SC/ST entrepreneurs to take up rain water harvesting activity.

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Providing Urban Amenities in Rural Areas (PURA) Vision 2020

Proposal for setting up an incubation centre for food products.

PURA kick-starts the economic growth and development in rural areas by providing urban amenities in selected rural clusters around selected towns that would set off further economic activities to generate ripple effect in the surrounding areas

That PURA is based on the concept that villages around a town have an in-built potential to foster fast and if infrastructural facilities are extended to these villages, they not only develop themselves but become growth centers to the adjacent areas too. The idea is to primarily build on the extant schemes of the Central and State governments and meet infrastructural gaps, if any, through funding from PURA.

The vision of transformation to a ‘developed’ India can only be realized if we launch a mega mission for empowering the rural people. Such Model of establishing a circular connectivity among the rural village complexes will accelerate rural development process by empowerment. Schools with best infrastructure and teachers who love teaching, primary health centers, silos for storage of products and markets for promoting cottage industries and business, employment opportunities for artisans are some of the elements of PURA

The PURA has to be a business proposition economically viable and managed by entrepreneurs and local people and small scale industrialists, as it involves education, health, power generation, transport and management. Government’s support should be in the form of empowering such management agencies, providing initial economic support and finding the right type of management structure and leaders to manage and maintain.

Knowledge facilitation centreA Knowledge facilitation centre be established in each taluk which will be a nodal centre for all activities to facilitate all agencies for over all development. The centre may also provide facilities for training, common facilities for packaging of products, demonstration & training in specified trades etc. Such a facility would also be the first step towards implementing PURA in taluks and a great motivating factor for the entrepreneurs.

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What infrastructure facilities can be created to sustain growth?A meeting place for women entrepreneurs, self help groups , NGO’s

etc for discussions, interactions etc a place exclusively which can be called their own with basic amenities like water, power ,toilets , teaching aids, and some minimum furniture. This “centre” becomes the FUNCTIONAL place for all economic activity and knowledge centre. Incubation centers to train & encourage revenue generating activities. To act as a common facility centre by providing facilities in selected income generating activity. Pay & Use concept. Encourage cluster approach for all commercial gains.

What is an incubation center?A centre that provides Training & Demonstration on any processing

or production activity using appropriate technology to produce goods suitable for commercial markets. It will also provide the facilities for producing goods by utilization of facility on nominal payment basis.

What are the advantages of such incubation centers/ common utility centre? No initial investment on the part of the entrepreneur Can be trained on usage of appropriate technologies Practical training will lead to quality awareness and understanding of

financial & Commercials aspects of doing business. Helps in doing part time business. Does not affect regular work at

home especially for Women. A larger section of the society can utilize the facilities which will

encourage more Participation. Will have access to technical inputs from experts. Common Brand names can be established. Small quantities can be produced there by all resources of agro

produce like fruits, vegetables etc can be utilized and waste eliminated.

To provide the licensed facility for manufacturing food products either for test market or commercial market.

What are the suggested areas for an incubation center? Emerging market trends indicate growth in Food products & Fruits & Vegetables processing Consumer Chemicals Ready Made garments These sectors also provide opportunities for creativity & community

working using common facilities.

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Budget estimates to set up a knowledge facilitation centre

Location: An existing ITI or an Industrial shedMinimum space required. Built up area

Conference Hall/meeting room/office/computer room etc 2400 sq.ft.Incubation center 2400 sq.ft.

Budget Amount Rs.

Renovation/painting/lighting/computer connectivity etc 3,00,000

Conference hall Furniture / public address system/ OHP & screen/ etc

50, 000

Mini meeting room with furniture 5, 000

Computer Systems with Internet connectivity 60,000

Office room with telephone / fax/photocopier 50,000

Incubation Center machinery & Equipment any one or more Each activity FoodReadymade garmentsConsumer chemicals

10,00,000

Total 14,65,000Rounded to 15,00,000

Staff Two technical Staff on deputation / consultancy Recurring cost:

Wages for two technical staffWages for Two skilled workersWages for watch & ward.

Electricity, Water, Machinery maintenance.The estimated Budget for similar centers at the taluk level Rs. 10,00,000/- on the following assumptions.

1] Government Building NO investment2] There will be some modifications, electrification, painting etc.3] Approximate Cost of Machinery & Equipment.

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Project Profile Fr establishing a Food processing incubation center for

Processing of Spices, Ready to eat mixes, Juice, Jam, Jelly, Squash, Ketchup, Sauce

BuildingAn covered area of 4000 Sq.ft. preferably with RCC roofing to provide for an dust free and clean environment with three phase electrical connections and water facilities {existing ITI’s can be one of the locations}Cost Rs.300000/-

Machinery & Equipment: Rs 750000List & layout plan attached

Recurring cost: per monthRaw material; all material to be brought by entrepreneursCerials, spices, vegetables, fruits, preservatives, etcPackaging material.

Power Rs 500Water Rs 300

Staff & Labour.Supervisor 2 nos Rs 2000Workers 4 nos Rs 2000

The staff and labour can be trained in operation & simple maintenance of machines

Women from the same locality can be identified and trained. They can work in shifts or on mutually convenient days and times. All entrepreneurs shall also be trained in operation & simple maintenance hence dependence on others is not there. It also reduces costs and importantly brings self confidence among the entrepreneurs.

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Management of center.The center should function as a profit center generating revenue

through training and outsourcing of common facilities. Revenues can also be generated by taking up marketing activities on behalf of the group or individuals as dealers, distributors, agents etc.Ideally a Self Help Group or an NGO should be entrusted with the task of managing the center with all users having a stake either in equity or as a cooperative.

A cooperative gives them twin benefits. Earnings through profits and dividends from the institution. It also gives them a sense of ownership which increases active participation.

The tasks involved are multifarious: Needs good coordination to maintain and sustain logistic support for

inputs. To establish linkages with promotional & marketing outlets. Maintain proper books of account & documentation of activities. Maintain a Clean working environment Conduct training programmes frequently Constantly interact with government departments for information,

faculty, and incentives. Interact with financial institutions to assist entrepreneurs for working

capital etc. After attaining the self confidence to become independent and work on their own.

Training There are many government organizations providing technical

assistance and training. To mention a few KVIC, SISI, CEDOK etc the DIC with help from the CEO Zilla panchayat can organize regular training programmes. However training can also be imparted through food consultants.

Marketing:Marketing is one of the most difficult tasks at any level. An intensive

training on all aspects of marketing will have to be imparted from time to time from experts in the field.With the growth of retail industries the demand for goods from this sector is expected to grow at 15 to 20% per year. The growth of retail industry through malls and multiplexes are expected to reach the districts- Tier Two cities -within the next five years which will create a huge market for outsourcing. With developments in communication & transport systems there will be a window of opportunities. Marketing at District level and in

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big cities can be done through direct sales, participation in exhibitions, through dealers or as direct vendors.

We could promote a few entrepreneurs to become self employed by taking dealerships and retail selling through small vehicles under PMRY scheme . This would complete the cycle.

It will also be appropriate if each District headquarters has an exclusive marketing outlet for products made at taluk level. Small Space, of about 10 Sq.Mtrs , can be rented for periods ranging from 15 days to three months at a time at nominal costs. Such an outlet will provide opportunities to a large section of entrepreneurs from the rural areas on a continuous and rotational basis.

An entrepreneur from the district headquarters may be encouraged to set up a market outlet as a commercial enterprise with assistance from NABARD.

We strongly advocate a common facility center in each District or taluk to foster quick industrial & economic growth of the rural areas.

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FOOD INCUBATION & COMMON FACILITY CENTER FORFOOD PROCESING INDUSTRIES.

Pure Spices and Spice products, Ready to Cook products, Ground nut chikky, Food products packing, Pre cooked Turdal powder / Flakes

LIST OF MACHINERY

SL. NO

PARTICULARS CAPACITY

PL

AC

E COST PRICEApprox. P

OW

ER

1 2 3 4 5 6

1. Roaster with ½ HP Geared Motor LPG Operated

Digital Temperature indicator and Controller

5 Kgs per batch

-

4’ x 4’

-

Rs.30,000/ -

Rs.15,000/-

½ HP

-

2. Chakki Mill 10 Kgs per hour

4’ x 4’ Rs.20,000/- 3 HP

3. Pulveriser/Hammer Mill

10 Kgs/hour 3’ x 3’ Rs.40,000/- 5 HP

4. Sieving Machine - 3’ x 3’ Rs.15,000/- 1 HP

5. Vertical Mixer 3 in One

20 Kgs per batch

5’ x 5’ Rs.30,000/- 2 HP

6. Dhal Cooking Vessel 10 Kgs 5’ x 5’ Rs.15,000/- -

7. Boiler Suitable to above Vessel (Gas, firewood)

- - Rs.25,000/- -

8. Semi Automatic FFS (Packing Machine Manually operated)

10-15 pouch per min.

5’ x 5’ Rs.60,000/- 2 HP

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1 2 3 4 5 6

9. Tray drier (12 trays conventional)

30 Kgs per batch

8’ x 8’ Rs.50,000/- 3 HP

10. Groundnut Chikki Machine with one Mould

144 Chikkies per batch1 inch eachvarious thickness

5’ x 5’ Rs.10,000/- -

Total Rs.3,10,000

The above prices are exclusive of taxes, duties, transportation charges, erection and commission charges .

TOTAL POWER REQUIREMENT FOR MACHINERIES 15 HP GENERAL POWER REQUIREMENT - 5 HPTOTAL SPACE REQUIRED 2400 SQ.FT.

EQUIPMENTS :

1. Electronic Platform Digital balance 100 Kgs- Rs.15,000/-(Essae Teraoka )

150 Kgs - Rs.18,000/-

2. Working table 6’ x 2 .5’ x 36” with - Rs.15,000/-SS Top

3. LPG fired steam generator capacity 150 kgs/hour- Rs.40,000/-At one atmosphere pressure with piping

4. LPG Gas burners – Heavy duty with gas piping - Rs.10,000/-And Cylinder handling with manifold

5. SS, Hindaulium vessels, ladles, trays, utensils - Rs.30,000/-Refrigerator, etc.

6. Water purifier about 600 litres per hour - Rs.20,000/-7. Hand operated impulse sealing machine - Rs. 2,000/-8. Foot operated sealing machine - Rs.10,000/-9. Food grade plastic crates - Rs.10,000/-10. Frying pans – Hindaulium and Iron - Rs. 5,000/-11. Mixer cum Grinder (domestic type) - Rs. 3,000/-12. Miscellaneous items - Rs. 5,000/-

TOTAL: - Rs.1.83.000/-

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The taxes, duties, transportation .packing and forwarding charges are extra as applicable at the time of supplying.

Testing Laboratory equipments. – Rs.1,50,000/-

Estimated total cost of Machinery, Equipment &Laboratory

Rs.6,43,000/-

DAILY PRODUCTION CAPACITY

SL. NO.

PRODUCT PARTICULARS CAPACITY PER DAY (KGS.)

1. Pure Spices and Spice products 50 to 60 Kgs

2. Ready to Cook products 100 Kgs

3. Ground nut chikky 10 to 15 Kgs

4. Food products packing 100 Kgs.

5. Pre cooked Turdal powder / Flakes 100 Kgs

The man power requirement for Common facility center .

1. One in charge with basic knowledge in food processing.2. Two assistants to assist the users of the facility.

Consultancy & Service Charges to set up the food incubation centre.

The services of a food consultant are necessary to establish the centre. It is envisaged that, the centre can be established within six months. However, it would be advisable to have a consultant for a longer period so that the training programmes can also be started and standardized.

Initially, the services may be required, for at least 10 – 15 days in a month with periodical visits. Subsequently, his services can be utilized once a week as an adviser for the next six months. Revenue from training, can be utilized to pay for the services.

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Consultancy cost:Consultancy cost forfirst 6 monthsEstimated cost of consultant @ Rs. 1000/- per day. For 15 days for first 6 months.Estimated cost for 6 months = Rs. 90,000/-

Consultancy cost forNext 6 months to conduct training During training period @ Rs. 1000/- per day for 7 days= Rs. 7,000/-Estimated cost for 6 months = Rs. 42,000/-

Total cost of consultant for One year to establish and run the centre= Rs.1,32,000/-

Total cost of projectCost of Machinery Rs.3, 10,000Cost of Equipment Rs.1, 83,000Cost of Laboratory Rs.1, 50,000Consultancy Rs 1, 32,000

Total cost of project = Rs 7, 75,000

EconomicsTotal investment Rs 10, 00,000/- including Building

Recurring cost per month 8000 per monthConsultancy cost 12000 per month

Total recurring cost per month = Rs. 20,000 /-Total recurring cost per year = Rs 2, 40,000/-

Revenue estimates:1] Common facility usage of machinery & equipment for 6 hrs per day at Rs 120 per hr. for 25 days /mth. (6*120*25) Rs. 18, 000/- Revenue per year Rs.2, 16,000/-

2] Entrepreneurship Development Programme & Training Duration Three monthsNo. per batch 20 nos.Fees per trainee Rs 1000/-Revenue per batch Rs. 20,000 No. of batches per year 4Revenue per year Rs 80,000/

Estimated Total Revenue per Year Rs. 2,96,000/-

SISI,Hubli


CHAPTER - 4GULBURGA TALUK AT A GLANCE

I General Characteristics :

a) Area in Square in hectares

b) Number of Townsc) Number of Municipalitie d) Number of Gram Panchayats e) Number of village (inhabilities) f) Average Rainfall

Taluk % Dist

District

173165(1730 Sq.km)

1137136

766 mm

16,10,208 (16224 Sq.Km)

18123361360

777mm

II Resources :

A. Human Resources (2001 census)

1. Population MaleFemale

2. Literate Population Male

Female

3. Density of Population / Sq Km.

4. Sex Ratio

3,48,6653,27,014

66.576.356.1

391

938

15,92,78915,38,133

50.061.837.9

192

966

B. Material Resources1) Agricultural ResourcesBajra, Maize, Wheat, Gram, Tur, Sunflower, Fruits, Vegetables, Sugarcane

Paddy, Jawar, Bajra, Maize, Wheat, Gram, Tur, Groundnut, Sunflower, Fruits, Vegetables, Sugarcane, cotton.\

2) Horticultural Resources(a) Mango, b) Banana(b) Lemon, d) Gauva(c) Pomogranate, Same for Taluks/District(d) Papaya f)Fig(e) Tomato g)Onion(f) Green Chillies

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3) Live stock Resources (Live stock Census 2003)(a) Total animals 191255 2239870(b) Poultry 75080 642534(c) Veterinary Institutions 34 293

4) Mineral Resources: Building Stone, Shahabad Stone, Murrum, Fullers Earth

Shahabad Stone, Building Stone, Murrum, Laterite, Limestone,Shell Moulding Stand, Quartz, Fullers Earth

5) Infrastructurea) Railway line (in kms)b) Roads (km)c) Surface Road (km)d) No.of Motor Vehiclese) Lead Bank

381494883

77226State Bank of India

22589535135

147887State Bank of India

6) Technical Institutionsa) Engineering Collegeb) Polytechnicsc) Dental/Medical

468

498

7) Post and Telegraph Officesa) Number of Post officesb) Telegraph officec) Telephone Exchanged) Telephone

82127

37093

6222

16077184

8) Existing Industrial Structures

a) No. of Small Scale Industries

b) No. of Medium & Large Scale Industries

3484

4

12056

17

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SUMMARY & CONCLUSIONS

1. Barren land available for industrialization 50111 hectors - 23 % of all land.

2. Agricultural produce holds the sway. Scope for agro processing units3. Scope for development of forestry & fisheries.4. Scope for Cold storage, fruits & vegetables processing, live stock &

dairy products.5. Knowledge connectivity through education, vocational training

centers for Farmers, artisans, craftsmen, & entrepreneurs.6. Road connectivity from other taluks to Gulbarga City needs to be

improved.7. Human resources in terms of engineers, skilled & unskilled work

force, & educated youth available for absorption in industries.8. Good scope for marketing of consumer goods in the district.9. Scope for promoting Tourism & tourism related service industries &

businesses.10. PURA. – Common facility centers & incubation centers for fruits &

vegetables processing,11. Mini marketing outlets for products from rural areas, SHG’s etc in

Gulbarga city.12. Regular training programmes by experts / experienced faculty in

consumer chemicals, food products, Ready made garments. It has to be joint effort by SISI / KVIC/ NABARD.

13. Scope for establishing a Biotechnology incubation center by agriculture college Gulbarga has to be explored.

14. KBO. Knowledge Business Outsourcing to be encouraged by the engineering colleges. Creation of center of excellence through TIFAC assistance.

15. Department of Science & technology to set up promotional cells to encourage innovations by students and linked to TePP DST New Delhi.

Requirement of Important Infrastructure.

Knowledge facility center ITI’s should become the Hub of all entrepreneurship activities and a nodal centre for all agencies to train, demonstrate, discuss, disseminate information.

Primarily the progress at any level will depend upon the abilities of the local people to leverage upon all the schemes & incentives offered by Government. Its abilities to constantly interact with all promotional agencies like SISI, KVIC, NABARD, AWAKE, NDDB, NGO’s, Training institutions, financial institutions etc

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It is also important that there is interaction & linkages between all the promotional agencies so that there is a wholistic approach and resources mobilized and well utilized.Information is the key to success.

At present each institution is engaged in its own sphere of activity for different target groups as a result no definitive results are visible. There is little follow up and escort services, which is essential for promoting entrepreneurship. Most often there is no awareness nor publicity due to non availability of a meeting place.

One of the major reasons is that there is no nodal or central meeting place for all activities to take place. It is therefore proposed that a Knowledge facility center is established in each taluk. This center should be the springboard for entrepreneurs with the following facilities

A meeting room for interaction between groups / entrepreneurs and officials.

A conference room for lectures with modern public address systems, LCD projector, computer system/ Laptown and other teaching aids.

Internet connectivity system An Incubation center for one or more trades i.e. food processing,

bakery products, processing of fruits & vegetables, ready-made garments, biotechnology etc. with packaging machines.

The center can be a common facility center by renting the facilities on machine hr. basis for women, SHG’s and others for income generation.

To provide practical training & demonstrations in manufacture of consumer chemical items

To provide outlets (space) for marketing of products for short duration for entrepreneurs from rural and other areas.

Such a knowledge center will facilitate in Conducting all meetings in permanent place. Common meeting place for all development & promotional agencies

to help better Coordination between all agencies. Will facilitate to invite knowledgeable people to impart information

& training Entrepreneurs will generate self-confidence and motivation. Group activities can be encouraged. Availability of officers / extension services routinely and regularly. There will be a beehive of activities, which is the first step to

promote entrepreneurship.

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Better train connectivity between Gulbarga & Bangalore, Hyderabad, &major districts in Karnataka.

Airport to be developed.

Improve State Highway & other roads connecting Gulbarga and all taluks

Broad Band connectivity to be provided

Government of Karnataka Tourism Depts. To be strengthened at Gulburga.

Consortia of banks with targets for promoting entrepreneurship lending on priority basis, ATM for rural areas etc.

A master plan for promoting entrepreneurship linked to PMRY and such rural development schemes.

Tax concessions to be made more attractive to encourage Large & Medium Industries.

SISI,Hubli


CHAPTER - 5GENERAL OBSERVATIONS AND ECONOMIC

INDICATORSDemography, Geography and other features

5.1 Geographical Position: -Gulbarga Taluk is one of the ten taluks of the district. The taluk is

bounded by: Aland taluk and Bidar district in the North, Jewargi taluk in the South, Aland and Afzalpur in West, and Chittapur & Chincholi taluk in the East.

In formal days, Gulbarga was known as "Kalburgi" which means a ‘Stony Land’ of ‘Stone Roofing’ or a heap of stone in Kannada. The taluk area is 1,730 sq. kms. The district headquarters is located in this Taluk.

5.2 Soil: -The district is grouped under North-Eastern Transition and Dry

Agro-Climatic Zone having an extensive plateau with an elevation of 365-610 meters above sea level. The soils in the district are mainly categorized as shallow to medium black clay in major areas of North Eastern Dry Zone and red laterite in the remaining area of North Eastern Transition Zone - Aluvial soils are found on the banks of two major rivers of Krishna and Bheema.

5.3 Rivers: -Bennithora, Mulamari, Bheema and Kagina rivers are flowing in

the taluk.

5.4 Climate: -The climate is generally dry and healthy. The seasons are in the

pattern of those generally in the deccan. The summer starts from the middle of February and continues until end of June. The South-West monsoon follows thereafter and extends upto the end of September. The period from December to middle of February is the winter season.The Normal rainfall in Gulbarga is 766 mm. During 2004, the rainfall was 725.5 mm. The minimum temperature is between 14°c to 15°c in December and maximum temperature range between 42 °c to 45°c in summer.

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5.5 Administrative Division: -The district has three sub division-namely Gulbarga, Sedam and

Yadgiri. Gulbarga sub division consists of four taluks - Gulbarga, Aland, Afzalpur and Jewargi. Gulbarga taluk consists of 37 Gram Panchayats, 6 Hoblies, 136 inhabitated villages and one town.

5.6 Population and Occupational Structure: -The total population of Gulbarga Taluk as per 2001 census are

6,75,679 of which 3,48,665 are male and 3,27,014 are female. The urban and rural population are 4,30,265 and 2,45,414 respectively. The density of population in the taluk is 391 per sq.km ; which is higher than district average of 192 persons per Sq.km . The sex ratio of the taluk is 938 compared to 966 in the district. The literacy rate in the taluk is highest of all taluks at 66.5% as against district average of 50.50.

While reviewing the occupational distribution of population in Gulbarga taluk as per 2001 census, it is revealed that, the main and marginal category of workers constitute 81.7% and 18.3% respectively. The non workers constitute 67% of the total population. Considering the workers in different sectors, it was found that cultivators accounted for 15.8%. Agricultural labourer 22.9%, Forestry, Fisheries and other activities accounted for 2% and other services constituted 59.8% to the total workers. Of the total workers, male constitute 71.3% while 28.7% represent female workers. In the district the male workers constitute 60.2% and female workers form 39.8%

5.7 Area and Land Utilisation Pattern: -The land utilization pattern of Gulbarga Taluk during 2004-OS

was as under : Table 2.1

Statement showing Land Utilisation in Gulbarga Taluk as on 2004-05Sl.No. Category Area in Ha.

(2004-05)1 Forest 41212 Land put to non-agriculture use 81503 Barren 42234 Cultivable waste 785 Permanent pastures 43226 Trees and Groves 397 Fallow land 377388 Net area sown 1524649 Total 211135

Source: - District at a glance- Gulbarga – 2004-05

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http://sq.km/

http://Sq.km/


Table 5.1 indicates that about 72.2% of the total area was under agriculture which confirm the agrarian economy of the taluk. Further, the Barren area, Land put to non-agri use and follow land constituted 50111 hectares which is about 23.7% of the total area, can be utilized for the development of the industry.

5.8 Income: -The income is a good indicator of economic development

achieved by various sectors of the economy in an area/district. However, the sectoral composition of the taluk wise income in respect of Gulbarga Taluk is not available. Hence, the sectoral composition of the district as a whole, is analysed in the following paragraphs which more or less depict of the economy of the taluk at constant prices in 1993-94. The gross domestic product of the district stands at 8787 at constant prices (1993-94) which is less than the total gross domestic income of the district of Rs.280420.00 lakhs and this accounted to 3.88% of the total net domestic income of Rs.7232038.00 lakhs of the state. The sectoral composition of the district is presented in table 2.2

Table 5.2SECTORAL COMPOSITION OF GROSS DISTRICT INCOME OF

GULBARGA DISTRICT AT CONSTANT (1993-94) PRICESDistrict State

Sl. No.

Sectors Rs. In lakhs % to total income

(Rs. In lakhs)

1 2 3 4 51 Agriculture including

Animal Husbandry83141 29.65 1505902

2 Forestry and logging 5296 1.89 1033113 Fishing 334 0.12 299094 Mining and quarrying 4341 1.55 568395 Manufacturing 26388 9.41 14539836 Construction 31364 11.18 5293107 Electricity, gas and

water supply5209 1.86 159763

8 Railways 1045 0.37 309679 Transport by other

means7568 2.70 217837

10 Storage 74 0.03 182711 Communication 13853 4.94 34152312 Trade, hotels and

restaurants27209 9.70 957844

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1 2 3 4 513 Banking and

Insurance7425 2.65 453576

14 Real estates, ownership of dwellings, business and services

20975 7.48 491803

15 Public Administration 10692 3.81 26065116 Other Services 36507 13.02 636993

Total 280420 100.36 7232038

Source: - State Domestic Product Karnataka, Director of Economics, Statistics – 2003-04

Table 5.2 indicates that the agriculture sector holds its sway in the economy of the district as it contributes 29.65% to the districts income. The next two sectors in terms of higher contribution are other services and "Construction" which contribute 13.02% and 11.18% respectively to the districts income. The table also indicates that the income of the district from other key resources of the sectors is Forestry, Fishing and Mining and Quarrying are very insignificant contribution being 1.89%, 0.12% & 1.55% respectively to the districts income. This suggests that action may be taken to develop forestry and fishing sectors and exploitation of minerals of the district for an overall development of the district and improving its economy. At present, there is not much scope for the resource based industry related to Forestry, Fishing and Mineral. The per capita gross domestic product of the district stands at Rs.8787.00 at constant prices in 93-94 which has less than the average state per capita GDP of Rs.13429.00.

SISI,Hubli


CHAPTER - 6

RESOURCES OF THE TALUKPortrays the resources endowment – natural & human

It is of vital importance to study the various resources available in an area before embarking upon the identification of industries, having scope for development in that area. It is a well-known fact that the industrial development of an area depends to a great extent on its resource endowment and its proper exploitation and utilization. In this chapter, the resources of Gulbarga taluk have been analysed and this would lead to justification of resource based industries in the Taluka. The resources of the area can be distinctly classified into the following categories.

(a) Material Resources,(b) Human Resources.

(a) Material Resources:

6.1 Agriculture: -(a) Land Holding: -

There are 52,089 land holdings in the taluk. Table 3.1 indicates the category wise land holdings of the farmers in Gulbarga Taluk during 2004-05

Table 6.1 Category wise Land Holdings of farmers in Gulbarga Taluk in 2004-05.

Sl.No

CategoryNumber

% to totalNos.

Area inHectares

% tototalArea

1 Marginal - below 1 hec. 8105 15.6 5101 3.32 Small - 1-2 hec. 17470 33.5 26045 16.93 Semi-medium - 2-4 hec 15844 30.4 43820 28.54 Medium - 4-10 hec. 8805 16.9 52696 34.25 Large -More than10 hec. 1865 3.6 26214 17.0

J Total 52089 100.0 153876 100.0

Since, the No. of land holdings upto 4 acres constitute about 80% of the total land holdings, mechanism of agricultural operation would not be economical.

(b) Agricultural Crops: -SISI,Hubli


Table 6.2 indicates the area and production of important agricultural crops in Gulbarga Taluk during 2004-05.

Table 6.2Important Agricultural Crops in Gulbarga taluk during 2004-05

Taluk Taluk District District

Sl.No.

Name of theCrop

Area (inHectare)

Est.Production(Tonnes)

%Area

%Prod.

Area inHec.

Est.Pro.

(Tonnes)

1 2 3 4 5 6 7 8

CEREALS1 Paddy 727 1825 1.1 1.1 65687 1648742 Jowar 34815 27155 11.9 12.2 292954 2226453 Bajra 9807 17162 13.5 5 72378 1266614 Maize 383 666 14.9 4.9 2568 44685 Wheat 1871 1590 10.7 10.7 17523 14895

PULSES1 Gram 11227 7342 8.3 8.2 136025 889602 Tur 55850 50265 16.0 16.0 349894 314905

OIL SEEDS

1 Ground Nut 463 426 0.8 0.7 60947 56071

2 Sun flower 16342 8661 10.3 10.3 159194 84373

COMMERCIAL CROP

1 Sugarcane 801 44776 11.6 11.6 6876 384368

2 Cotton 15 38 0.1 0.1 17295 44448

Source: - District at a Glance - Gulbarga - 2004-05

It could be seen that in the taluk Jowar, Bajra and Wheat are important cereals, Gram, and Tur are important pulses. Groundnut and sunflower oil seeds are important oil seeds grown in the taluk. Sugarcane has also got good acreage compared to that of the District. The area under crops "more than one" constitutes 33% of the Net area sown in the taluk.

c) Agricultural Marketing: -

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The agriculture produces grown in the area are generally brought to the regulated market for fetching better prices for the farmers. In Gulbarga Taluk, there is one main regulated market and one sub regulated market. Total transactions for agriculture produce that has taken place during 2004-05 was Rs. 19,239.07 crores against Rs.41,403.67 crores transacted in the district.

6.2 Horticulture: -The soil and climate of the taluk are favorable for growing

horticultural crops in the taluk. The farmers are not coming forward to increase area under horticulture crops due to the absence of marketing conditions and cold storage facilities. The production of horticulture crops may go up if some cold storage facilities are established and some fruit processing units are started in the taluk.

Table 6.3Area and Production of horticultural crops in Gulbarga Taluk during 2004-05.

Taluk (M.T)Taluk to District

District(M.T)

Sl.No

Crop Areain Hec.

Prod. % Area

% Prod.

Area in

Hec.

Prod.

1 2 3 4 5 6 7 81 Mango 310 2170 15.3 15.4 2028 141262 Banana 500 14060 19.9 19.6 2509 718363 Lemon 84 2100 5.2 5.6 1601 377204 Papaya 190 5700 76.6 56.3 248 101285 Grapes 13 300 12.3 17.7 106 16956 Tomato 146 4450 14.9 20.1 977 221307 Onion 444 8880 19.8 24.4 2240 363408 Dry Chillies 20 20 1.0 0.8 3073 39869 Green

Chillies180 1350 11.89 11.30 1513 14943

Source: - Dy. Director of Horticulture – Gulbarga 2003-04

The table above shows the area and production of various horticultural crops during 2003-04 in Gulbarga Taluk.

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6.3 Sericulture: - The sericulture is not important in the district. It has been reported

that the area under Mulberry cultivation is going down in the taluk gradually year by year due to lack of marketing facilities and low price offered by the traders to the farmers. During 2004-05, the area under mulberry in Gulbarga Taluk was around 51 hectares compared to 266 hectares in the District. The cocoon production in the taluk was 20 tonnes and only 48 Farmers were engaged in that occupation.

6.4 Forest: -The taluk has no significant forest resources. The forest area in the

taluk constitutes only 2.38% of the total geographical area. Even the district forest area accounts for only 4% of the total geographical area of the district. The taluk as well as the district do not have any significant minor or major forest produce.

6.5 Water Resources and Irrigation: -The irrigation facilities have improved in the taluk though not

significantly.

Table 6.5Irrigation Facilities in Gulbarga Taluk during the year 2004-05

Area in HectaresSl.No

Sources Taluk % to Districts

District

1 Canals 175 0.11 1,49,0742 Tanks 90 2.71 3,3243 Wells 3504 11.15 31,4104 Borewell 285 3.95 7,208

Total 4054 2.06 1,96,304Source: - District at a glance – Gulbarga 2004-05

6.6 Fisheries: -Since Gulbarga is a land-lacked taluk inland fisheries is the only

source of fish catch. However, the fisheries resource is insignificant in the taluk as well as in the district. The Districts fish catch is around 4,358 Tonnes during 2004-05.

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6.7 Animal Husbandry: -

Gulbarga Taluk has a live stock population of 1,91,255 numbers as against the district total of 2239870 (8.5% of the district). Category wise live stock population in Gulbarga Taluk is given in table No. 3.5

Table 6.7Live stock population of Gulbarga Taluk during 2004-05

Category wise populationSl. No.

Category Numbers District

1 Cattles 83,819 8,33,3392 Buffaloes 22,575 2,27,2493 Sheep 8,481 4,60,8044 Goats 57,771 5,64,1145 Pigs 4,145 41,1036 Dogs 14,235 1,10,4627 Other Live Stocks 229 2,799

Total 191255 22398708 Poultry 75,080 6,42,534

Source: - Gulbarga District Glance 2004-05

There are 2 veterinary hospitals, 8 veterinary dispensaries, 12 primary veterinary centers, one mobile dispensary and 11 artificial insemination center, in 2004-05, to take care of medical needs of cattle and other animals in Gulbarga district.

Establishment of milk dairy, Karnataka Dairy Development Corporation has given a big boost to the development of live stock and dairy industry in the taluk. During 2004-05, there were 23 milk producer co-operative societies in the taluk as against 180 numbers in the district.

6.8 Minerals: -Gulbarga taluk is not very rich in minerals. Minerals like Fullers

Earth, Shahabad Stone, building stone, Murrum are available in Gulbarga Taluk.

6.9 Human Resources:Availability of natural resources in a particular area is not alone not

sufficient for industrial development. There should be adequate availability of skilled manpower among its human resources to exploit natural resources.

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6.10 Population: -According to 2001 census, the population of Gulbarga Taluk was

6,75,679 consisting of 3,48,665 males and 3,27,014 female. The taluk has 2,45,414 rural population and 4,30,265 urban population. The urban population of the taluk constitutes more than 50% of the District urban population of 8,52,621. The taluk population is about 21.58% of that of the district i.e. 31,30,922 persons. The density of the population of the taluk is 391 persons per Sq. km. compared to the district average of 192 persons per Sq. km. The literacy rate of the taluk constitutes 66.5% with literacy rate among men 76.3% and Female 56.17%. The literacy rate of the taluk is very high compared to that of the district average of 50.0%

6.11 Unemployed Registered: -The details of persons with education registered in employment

register in the district for the year 2004-05 are noted below. Table 3.6 registered unemployed persons category wise in Gulbarga District Employment exchange during the year 2004-05. It is reported that male unemployed persons is gradually decreasing from year to year. In case of Female unemployed persons, it is also showing decreasing trend. This indicates the scope for employment is gradually increasing because of the different projects implemented in the district, besides scope created for self –employment. The same thing is confirmed if we review the registered unemployed persons in Gulbarga Taluk during the year 2004-05 which is shown below.

Table 6.11Details of persons registered in Employment Exchange in the District

as on 31-03-052001-02 2002-03 2003-04 2004-05

Sl.No

Category M F M F M F M F

1 Middle School

5702 1082 5440 1122 5043 1058 4808 1006

2 SSLC 37844 6802 37117 6959 35568 6543 34862 63403 BA 1678 782 1683 789 1558 787 1554 799

4 B.Sc. 541 215 535 222 588 219 581 2395 B.Com. 612 226 608 232 802 233 784 231

6 Diploma Holders

1620 196 1578 219 1444 203 1390 222

7 Artisans 4673 263 4391 245 3804 224 3626 2178 Others 32682 11040 31619 10966 30053 10849 28231 10762

Grand Total

85352 20606 82971 20754 78860 20116 75836 19816

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Registered unemployed persons in Gulbarga Taluk Employment Exchange year wise during the year 2004-05

Table 6.12Taluk wise Details of persons registered in employment exchange in Gulbarga Taluk as on 31-03-2005

2001-02 2002-03 2003-04 2004-05

Sl. No

District M F M F M F M F

1 Gulburga 27620 6861 26970 6922 25877 6700 25612 6476

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CHAPTER - 7

INFRASTRUCTURE

Availability of sufficient infrastructure facilities like land, factory accommodation, railways, Roads, Airlines, Post offices, financial institutions are essential for development of industry in an area. While thinking infrastructure development, it can be kept in view to provide Urban facilities in Rural Areas (PURA) as the present President of India envisaged in his vision 2020 on resurgent Rural India. The PURA consisting of four connectivity of the village cluster through quality road and transport; electronic connectivity through tele-communications with hi band width, fiber optics cables reaching rural areas from urban cities and through internet ‘Ki soks’ knowledge connectivity through education, vocational training for farmers, artisans and craft men and entrepreneurship programme; these three connectivity’s leading to economic connectivity through starting of enterprises with the help of banks; micro-credit and marketing the products.

It is in this context, the present infrastructure facilities available in the taluk as well as in the district are analyzed below and further improvement of the same will be discussed later.

The infrastructure facilities are classified into two broad categories i.e. physical infrastructure and social infrastructure.

(a) Physical Infrastructure: -It is mentioned earlier that 12373 hectares of land not available for

‘cultivation’ and follow land constitute 37,738 hectares in Gulbarga Taluk. That is to say 50111 hectares of land in the taluk can be allotted for setting up of industries. The area can be utilized for setting of industry in future either allotting the area to prospective entrepreneurs or the Government agencies may acquire them, develop the land for industrialization .

The taluk receives water supply from Bheema River, Bennithora river and Bhosga tank due to implementation of water supply projects by Karnataka Water Supply and Development Board. In addition, Gulbarga taluk also receives water from Mullamari River. The water received may be used to supply to the industries coming up in the near future.

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7.1 Roads: -Proper road network is very essential for acquiring raw materials

from different sources as per the requirement of existing and new industries. The same also helps in marketing of the finished products of the industries located in an area.

The road network of Gulbarga taluk is placed in table 7.1

Table 7.1Total Road length in Gulbarga Taluq during 2004-05

Sl. No

Type of Road Taluk%

District

1 State Highways 112.50 10.28 1094.002 Major District Roads 48.20 2.78 1731.733 Other District Roads 26.50 40.64 65.204 Village Roads 648.79 11.67 5560.975 Municipality Road 657.46 79.70 824.89

Total 1732.45 21.17 8184.73Source: District at a Glance Gulbarga 2004-05

There is no national highway in the taluk as well as in the district. This is a serious draw back for the development of trade, commerce and industry of the taluk as also that of the district.

7.2 Road Transport: -Road transport plays a vital role in industrial development of an area.

There are various kinds of road transport available in the taluk right from bullock cart to heavy goods carrier vehicle. Category wise number of vehicles registered in Gulbarga taluk as on 31-3-2005 placed below in the table 7.2.

Table 7.2Category wise number of vehicles in Gulbarga Taluk as on 31-3-2005

Sl. No

Type of Vehicle Taluk % District

1 2 3 4 51 Scooters/Motor Cycles 59719 56.62 105470

2 Cars 3212 65.75 4885

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3 Lorries (Goods Vehicles) 2676 48.84 54794 Omni Bus 1035 46.39 22311 2 3 4 5

5 Cabs 167 38.66 4326 Auto Rickshaws 4384 62.41 70257 Tractors & Trailers 2566 16.86 152178 Ambulance 22 64.71 349 Others 3445 118.43 7114

Total 77226 52.22 147887

Source: - District at glance – Gulbarga-2004-05

The road transport position in the taluk is reported to be not satisfactory. The vehicles of the taluk constitute more than 50% of the district. It is reported that during five years, the number of vehicles increased by 40%.

7.3 Railways: - The railway track in the district is 225 kms of which Gulbarga Taluk

accounts for 38 kms. Gulbarga is connected by Mumbai & Chennai route and also Bangalore-New Delhi route. However, the railway coverage in the taluk as well as in the district is not satisfactory.

7.4 Air Transport: -Neither Gulbarga Taluk nor Gulbarga district has air transport

facility. However, there is a proposal for an airport in Gulbarga.

7.5 Communication: -Post and telecommunication facilities available in Gulbarga Taluk

are given below.

Table 7.3Postal & Telecommunication Network in Gulbarga Taluk

as on 31.3.2005

Sl. No. Category

Numbers

Taluk % District

1 Post Offices 82 13.18 6222 Telegraph Office 1 50.00 23 Telephone Exchange 27 16.88 1604 Telephones 37093 48.06 77184

Source: - District at a glance – Gulbarga – 2004-05

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It has been reported that telephone net work is quite satisfactory in the Taluk and accounts for 48.1% of the district. Besides, it is reported that there is a very large no. of mobile phones from Hutch, Airtel, BSNL, Reliance, Spice, etc. across the various sections of the population in the taluk which is very significant and has made the communication speedier, easier, reliable and more economical.

7.6 Power :-All 136 villages in Gulbarga Taluk have been electrified. There are

two Power-receiving stations (33/11 k.v.) in Gulbarga one at Farthabad with 1x5 MVA and 1x1 MVA and the other at Jambaga 1x5 MVA. The future plan for establishing power receiving stations are at Hadgil Harthi. 2x5 MVA and at azadpur 2x5 MVA. The discussion with offices of GESCOM reveal that the electric supply position in the district is quite satisfactory and there would be no problem for the supply of electricity to new industries.

Table 7.4 provides details about category wise number of electric connection and units consumed in Gulbarga Taluk as on 31-3-2005.

Table 7.4Category wise number of consumers and consumption of Electricity in

Gulbarga Taluk as on 31-03-2005Consumption of units in lakhs

Sl. No. Category

No. of Consumers Taluk DistrictTaluk District

1 House Consumption

118316 423002 742.50 1546.38

2 Industrial Consumption

3156 10145 315.00 503.39

3 Commercial Consumption

19084 40099 172.50 450.36

4 I.P. Sets 7474 46055 9.00 1178.795 Others 738 2717 420.20 669.22

Total 148768 522018 1659.20 4348.14Source: - District at a glance – Gulbarga – 2004-05

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7.7 INDUSTRIAL AREA & INDUSTRIAL SHEDS

Karnataka Industrial Area Development Board acquired 253.48 acres land in Kapnoor and Mundargi and created 320 industrial plots of which only 9 plots are presently vacant for allotment. KIADB has further acquired 620 acres land in Nadur-Kesaratgi and has taken up development of 200 acreas under Phase-I.

Karnataka State Small Industries Development Corporation Ltd(KSSIDC) has created plots and sheds in industrial area in the district as under:-

SL NO.

Industrial area

Industrial plots Industrial sheds

Constructed Vacant Constructed Vacant

1 Gulbarga 37 0 50 02 Kapanoor 63 3 157 253 Shabad 8 4 34 04 Chittapur 8 3 44 305 Aland 4 0 50 06 Shorapur 4 0 15 87 Sadam 8 5 45 178 Jewargi 0 0 23 149 Chincholi 8 2 24 1510 Shahapur 0 0 240 120

Total 140 17 682 229

7.8 Industrial Estate and Area: -Availability of readymade factory sheds/developed area facilitates

setting of industries since all entrepreneurs are not capable of developing their own lands or construct their factory sheds. The Karnataka Small Scale Industries Development Corporation, has constructed industrial sheds in the district for encouraging industrialization. In Gulbarga Taluk, two industrial estates are functioning – one at Gulbarga and the other at Kapanoor. In Gulbarga, 86 number of sheds/plots are allotted for setting up of industries. In this industrial estate there are 31 General Engineering industries and 16 chemical / ceramic, cement pipe manufacturing units, besides other industries like plastic, food processing etc. In Kapanoor industrial estate 194 sheds/plots were allotted to the prospective entrepreneurs for setting up of industries. In this estate, there are 60 numbers of General Engineering units followed by 41 plastic industry and 15 Dal mills, besides other type of industries like chemical, stone polishing etc. In addition, the Karnataka

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Industrial Area Development Board (KIADB) has also developed industrial plots at Kapanoor in Gulbarga Taluk. The information regarding industrial plots developed and allotted in Kapanoor I and II Stage and Nandur – Kesartagi in Gulbarga Taluk are as under

Table No.7.5Statement showing the details of Industrial area developed by KIADB

in Gulbarga Taluk as on 15-6-2005Sl.No

KapnoorIst stage

Kapnoor IInd stage

Nandnur-Kesartagi

1 Year of Acquisition 1982 1986 19982 Year of Development 1987 1990 19983 Area available for

allotment59.80 acres 145.00 acres 515.00 acres

4 No. of units allotted 87 141 95 No. of plots vacant - 4 420 acres6 No. of units under

Production68 64 2

Source: - KIADB – Gulbarga

II Social Infrastructure:

7.9 Education: - Education plays a vital role in the industrial development, since every industry needs skilled, semi-skilled or unskilled workers. The smooth functioning/ running of the industries depend upon the supply of suitable persons by the educational institutions in an area. The number of Educational Institutions and the students take off in Gulbarga Taluk as on 31-3-2005 are given in the table below.

Table No. 7.6Category wise Educational Institutions in Gulbarga Taluk

during 2004-05.

Sl. No

Category-wise Institutions

No. of Institutions

No. of StudentsBoys Girls

1 2 3 4 5

1 Primary Schools 397 49,247 43,9702 High Schools 156 9,960 8,4173 Pre University 53 8,168 3,5094 General College 13 4,544 3,120

1 2 3 4 5

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5 Medical College 6 226 1446 Polytechnic 6 790 3657 Engineering 4 908 2268 Dental College 2 23 47

Source – District at a Glance – Gulbarga 2004-05.

It is worth to be mentioned that 50% Colleges in the District belongs to Gulbarga Taluk. Besides Gulbarga Taluk has got all the Medical, Engineering and Dental Colleges in the district. Out of 9 polytechnics in the district, six are in Gulbarga Taluk. It is expected that there is no dearth of skilled and unskilled persons for manning the industries to be set up in the near future. It is also informed that there is an Agriculture College in the district where from the agriculture graduates will be available who can establish Agri-Clinics for providing extension and technical services for production of Bio-fertilizers and bio-pesticide including Vermi Composting in the taluk as well as in the district.

Besides above, there is one Artisan training Institute which provides training in the trade of Carpentry, General Engineering / Black Smith and electrician in Gulbarga Taluk which produce skilled workers who can be employed by industries or start their own ventures. There are also traditional artisans in the taluk as well as in the district. Table 7.7 indicates details of artisans in Gulbarga Taluk

Table 7.7Statement showing the details of Artisans in the Gulbarga Taluk

and District as on 31-3-2005.

Sl. No.

Category/Trade Taluk No.

% to District District No.

1 2 3 4 51 Carpentry 593 12.32 4,8132 Black Smiths 413 12.83 3,2183 Pottery 302 11.35 2,6614 Cobbler 613 11.25 5,4485 Goldsmith 121 11.91 1,0166 Basket Maker 313 11.08 2,8247 Mat Weaver 221 10.95 2,0188 Food Processor 441 10.35 4,2629 Barbers 453 11.01 4,11510 Tailors 953 10.99 8,67211 Dhobies 381 10.80 3,52912 Masons 621 10.63 5,816

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1 2 3 4 513 Bee-Keeper 7 9.00 7814 Lime 28 11.62 24115 Agarbathy Roller 165 11.55 1,42816 Beedi Roller 75 10.25 73217 Others 1,082 12.84 8,430

Total 6,782 11.44 59,301

7.10 Health and Family Welfare: -Medical facilities plays a crucial role for the smooth functioning of

industries. Workers employed in the industries need to be provided with proper medical as and when required to keep them fit. During 2004-05, there were three hospitals, 12 primary health centers, five dispensaries, two family welfare centres and 52 family welfare sub-centres in the taluk with 835 beds.

7.11 Trade, Commerce and Marketing: -Marketing has assumed great importance today. The liberalization in

the Indian economy has created acute competition in the marketing of products. Manufacturer has now to produce the items which consumers desire, sell them the required quality and quantity at a desired place where it is convenient to them to purchase. There exists good Market Potential within the taluk, in the district as well as in the neighboring districts. Besides, the large population of the district provides good scope for the marketing of consumer goods. With a gradual increase in the per capita income, the purchasing power has increased which created scope for marketing of the products. Railways connect Gulbarga to big cities like Mumbai, Chennai, Hyderabad, Bangalore etc. A quality products manufactured in the district can find market in the metros mentioned above.

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CHAPTER – 8

INDUSTRIAL SCENARIO

A study of the present industrial structure of Gulbarga Taluk will enable to understand the extent of Industrial development that has taken place in the taluk, type of existing industries, and the area where they are concentrated. It will help in identifying new industrial opportunities.

8.0 Large and Medium Scale Industry: -

There are four large and medium scale industry in the taluk. Out of four – M/s. Hoysala Cement-manufacturing cementM/s. MSK Mills – manufacturing cloth,M/s. Gulbarga Agro Extractions – a solvent plant are not working, only M/s. Detergent India ltd, established in 1993, manufacturing soap and detergent powder is working. The investment, employment and capacity of the unit are Rs.73 crores, 50 workers and 500 tons per day respectively.

8.1 Small Scale Industry: -Table 8.1 indicates the growth of small scale industry in Gulbarga

Taluk during the five years from 2001 to 2004. The table indicates that the trend of growth of SSI Units have been erratic. At the end of 2004-05, there were only 3,484 SSI Units in Gulbarga Taluk with an investment of Rs. 7,510 lakhs(approximately) and employment of 17,634 workers.

Table No. 8.1No. of SSI Units Registered in Gulbarga Taluk

during 2000-01 to 2004-05

During April to March Cumulative

YearNo. of

SSI Units

Investment in P&M (Rs. In Lakhs)

Emp. (Nos)

No. of SSI

Units

Inv. In P&M (Rs. In Lakhs)

Emp.(Nos)

2000-01 158 616.59 764 2843 6065.08 148732001-02 169 329.47 645 3012 6394.55 155182002-03 198 406.34 884 3210 6800.89 164022003-04 152 356.55 643 3362 7157.44 170452004-05 122 350.04 589 3484 7507.48 17634

Source: - DIC Gulbarga.

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While reviewing the Table 6.2 indicating the category wise of Small Scale Industry established in Gulbarga Taluk, it is revealed that during the year 2004-05, the highest number of Industries established is in the area of “Food and Food Products” category followed by “Repair and Servicing” and “Textile Garments” It is worthwhile to mention here that no industry has been set up in the categories of “Glass & Ceramics”, “Metal Products”, “Machinery & Machinery” and “Transport and Equipment” in Gulbarga Taluk during 2004-05

Table 8.2Category wise No. of Small Scale Industry in Gulbarga Taluk

during 2004-05

Industry Group

No. of units

Investment in Plant and

Machinery(Rs. In lakhs)

Em

plo

ymen

t

Sl.No.

Particulars

1 Food & Food products including beverages

35 87.50 280

2 Textile garments 15 45.30 453 Wood and wood based products 12 36.25 364 Printing and paper products 2 6.05 85 Leather products 12 36.35 35

6 Rubber and plastic products 4 12.08 127 Glass and Ceramics

8 Metal products

9 Machinery & Machinery parts10 Electronic & Electronic Products11 Chemical & Chemical Products 2 6.04 812 Transport and equipment13 Repair & Servicing 18 54.35 5414 Miscellaneous 22 66.10 111

Source: - DIC Gulbarga

8.2 Khadi and Village Industry: -Khadi and Village Industries Board is the agency which helps the

rural artisans in pursuing their traditional avocation. The Board assists entrepreneur by providing training for upgrading their skill and financial support for their ventures. The board also helps the units in marketing of

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their products through their outlets. The main purpose of the Board is to encourage Khadi and Village Industries for creating employment and raise village economic level. The KVI Board has encouraged 686 individual with loan of Rs.302/- lakhs to set up Khadi and Village industries in the district till 31-3-2005. The Board also encouraged 275 Nos. of registered institutions to set up KVI industries by providing loan amounting to Rs.233/- lakhs, which employed 579 persons, 52 co-operative societies also availed loan amounting to Rs.128/- lakhs under KVIC Scheme.

Under CBC Scheme, the KVIB encouraged 150 Nos. of units in Gulbarga taluk with a total investment of Rs.1,254 lakhs employing 393 persons. Of these, 42 units are working. Under the scheme, in the whole district, 374 No. of units were encouraged with a total investment of Rs.2,945 lakhs, employing 1300 persons of which 93 units are working.

Under, KVIC Margin Money Scheme 11 No. of units were encouraged in the taluk by KVB with an investment of Rs.69 lakhs. 67 units in the district with a total investment of Rs.96 lakhs. All these units are working.

The details of activity wise KVI industries encouraged by KVI Board are given below in the table 8.3

Table 8.3Khadi & Village Industries Activity wise in Gulbarga District

as on 31-03-2004(Rs. In lakhs)

Sl. No.

Activity No. of units

Sanctioned Amount

1 2 3 41 Khadi 1 43.362 Wool 1 120.003 Cereal Cleaning 244 143.014 Jaggery & Khandkari 33 6.665 Electronics 5 10.166 Mineral based Lime 78 40.227 Polymer Chemicals 8 2.378 Readymade garments 44 5.739 Cane & Bamboo Works 66 2.0010 Coir 12 2.3711 Agri based 216 52.0112 Agarbathi/Matches 62 21.911 2 3 4

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13 Handmade paper 4 4.9614 Fruit Preservation 2 3.2315 Leather 196 15.2016 Non Edible Oil, Soap 18 18.7117 Silk 1 6.3018 Ghani 144 42.9619 Service 37 4.9220 Neera Palm 8 2.1321 Pottery 61 29.5122 Polybastra 1 3.19

Total 1242 580.91

Source: - K.V.I. Board

8.3 Prime Ministers Rozgar Yojana: -Under this programme, Government decided to encourage

unemployed youth belonging to the age group of 18-35 years, with a minimum qualification of 8th std. Pass and ITI Pass to start their own venture for self-employment in Table 8.4(a) indicates finances sanctioned and disbursed under the scheme to the entrepreneurs in Gulbarga during 2001 to 2004.

Table 8.4(a)

Entrepreneurs assisted under PMRY in Gulbarga Taluk during 2001-04

Rs. In lakhs

2001-02 2002-03 2003-04

No. of Application Recommended to Bank

1754 1744 1085

No. of Application sanctioned by Bank

927 916 939

Amount sanctioned 342.81 449.49 581.39No. of cases to whom loan Disbursed 633 693 930Amount Disbursed 275.01 244.56 502.04

Source: - PMRY Progress Report – DIC – Gulbarga.

From the table above, it could be seen that there is a progressive increase in terms of sanctions and disbursement both in terms of Nos. and amount.

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Table 8.4 (b)No. of Entrepreneur and Amount sanctioned activity wise under

PMRY Programme during 2001-04.Amt. In Rs.Lakhs

2001-02 2002-03 2003-04Activity Nos. Amount Nos. Amount Nos. Amount

Industry 95 24.00 98 53.10 60 27.00Service 240 98.75 280 147.11 338 152.10Business 542 200.06 517 238.23 647 384.29Agro & Allied 50 20.00 21 11.00 40 18.00

Source: - DIC Gulbarga

The table indicates that there is an increasing activity, in general in the PMRY Programme in the taluk.

8.4 Handloom and Power loom Industry: -Handlooms are another type of traditional industries existing since

time immemorial. The industry has provided good employment opportunities to weavers community in rural areas. In Gulbarga Taluk, there were 136 Nos. of Handlooms with an investment of Rs. 9.52 lakhs and an employment of 392 persons as on 31-3-2005. These units produced the handloom cloth to the tune of Rs.44 lakhs per annum.

There were 30 Nos. of power looms with an investment of Rs.37.50 lakhs in Gulbarga Taluk. The units are yet to start production.

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CHAPTER - 9SWOT ANALYSIS – GULBARGA DISTRICT

A. STRENGTH

1. Due to geographical position of the taluk as well as the district has got advantage of growing cash crops and pulses, which may result in setting up of industries based on such crops.

2. Agriculture and Horticulture is now predominant in the district which may help in bringing up industries based on the resources.

3. The irrigation facilities which have grown significantly in the taluk as well as in the district may also improve the productivity. Rivers namely, Krishna, Bheema, Amarja, Kagina, Marimulla , Bennithora and Borie flow through the district which create scope for irrigation facilities.

4. There are nos. of Engineering Colleges, Medical Colleges, Polytechnics, ITI’s in the taluk as well as in the district which may provide skilled persons to man the new industries. Besides this, technical youth entrepreneurs may be motivated to start new industries. There is one Agriculture College in the district. These young Agricultural graduates may be encouraged to start Agro based industries / Agro clinics.

5. The taluk is well connected through rail to Metros like Hyderabad, Bangalore and Mumbai.

6. Out of 10 taluks in the district Gulbarga is categorized in Zone - 2 (Backward Taluk) and the other taluks in Zone-1(Most Backward Taliks). The existing industries and new industries are eligible for some incentives and concessions.

7. The headquarters of Hyderabad Karnataka Chamber of Commerce and Industries located at Gulbarga, may help industries to grow and trade, and commerce to flourish.

8. There are some useful minerals in the district which may be commercially exploited.

9. Karnataka Tur Development Board is located at Gulbarga.

B. WEAKNESS

1. Absence of large numbers of Dairy firms, poultry firms, cattle feed units, cold storage.

2. Agriculture and Horticulture produce have not been exploited properly to increase the agro-based industry.

3. Inadequate infrastructure facilities like Industrial Estate, transport etc.

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4. Absence of no National Highway in whole of the district.5. Remoteness and backwardness6. Presence of high incidence of poverty 7. Lack of entrepreneur talent and lack of initiative to motivate the

prospective entrepreneurs.8. Sickness in both SSI and large/medium scale sector industries.

Absence of proper initiative to revive the viable ones.

C. OPPORTUNITIES

1. Immense scope for promoting value added industries.2. Agriculture and Horticulture produce may be exploited to explore

industries.3. Dairy farm, poultry farm, cattle feed/Poultry feed manufacturing

may be encouraged through significant nos. of S.H.G with the help of Wellnit NGOs functioning in the district.

4. Minerals could be exploited to give rise the scope of minerals based industries.

5. One Airport is likely to be established at Gulbarga which may give further scope for Trade and Commerce and Export.

6. One bench of Karnataka High court is likely to function at Gulbarga soon. This will increase floating population and result in demand for consumer items.

D. TREAT

1. Cement based industries promoted earlier are sick.2. Poor R&D facilities3. Unhealthy competition by setting of same type of industries in large

numbers.4. Threats emerging from MNC due to globalization and liberalization.5. Lack of awareness of W.T.O, implications and intellectual

properties.6. Lack of quality consciousness among industries in general.7. Core competition existing among the selected industrial groups like

Dal Mills, Stone Polishing etc.

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CHAPTER – 10

NEW INDUSTRIAL POLICY 2006-2011Government of Karnataka

Annexure - A1. Introduction:1.1 Karnataka is one of the top 5 industrialized States in the country. It

has a history of pioneering industrial development initiatives since the time of the Princely State of Mysore and subsequently in the post independence era. The State was the first in the country to have brought out a State Industrial Policy during 1983, followed by successive State Industrial Policies in 1988, 1990, 1993, 1996 and in 2001.

1.2 During the just concluded 2001-06 Industrial Policy period, investment approvals of mega projects [ with investments of over Rs. 50 crores each] by the State High Level Clearance Committee [SHLCC] and large & medium projects by the State Level Single Window Agency [SLSWA] have shown sustained increase / growth. The number of projects approved by the SHLCC is 148 with an investment of Rs.1,15,882 crores and with an employment potential of 11,03,824 persons. Similarly, the number of projects approved by SLSWCC is 861 with an anticipated investment of Rs.19,043.73 crores and employment potential of 5,90,869 persons. During the same Policy period 65,231 SSI units registered with Rs.2,079.62 crores of investment and provide employment to 2,95,487 persons.

1.3 The State GDP growth rate during 2005-06 is 8.7% with industrial sector accounting for 18%. Having regard to this it is felt that the new policy should have a mission to achieve GSDP growth of over 9%.

1.4 The industrial recession, which was prevalent upto 2002-03 has now given way to increased investments & growth, as is evident in the year - wise investment approvals by SHLCC & SLSWCC.

1.5 However, this increased flow of investment need to be supported with (i) On demand infrastructure availability, (ii) Human resource for diverse sectors, (iii) Support to technology up-gradation, quality improvement and (iv) Single Window support and facilitation mechanism, so that the projects are implemented expeditiously and go into operation.

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1.6 Today, there is intense competition between States for attracting investments. Investors naturally choose the State that offers best combination of (i) Industrial & Social infrastructure, (ii) Human resources, (iii) Technology savvy work force and (iv) The State that offers “Ease of doing Business".

1.7 The fiscal / taxation regime and incentives & concessions offered by the States & Government of India also have important bearing on the locational decision of projects.

1.8 His Excellency, the President of India Dr. A.P.J.Abdul Kalam, in his address to the members of the Karnataka Legislature on 20-11-2005 on the occasion of "Suvarna Karnataka celebrations" had advocated 11 Missions for Karnataka's prosperity. Of these, Missions on Textiles, Bio-fuel, Agro processing and Entrepreneurship are related to industries sector and addressed in this Policy.

1.9 Government accords highest priority to the objectives of dispersal of industrial investments in various backward regions / districts of the State so that the fruits of economic development and employment opportunities are shared by all segments of society and in all parts of State in as equitable manner as possible.

1.10 The New Industrial Policy 2006-2011 attempts to address the above aspects in a balanced manner.

2. VISION:2.1 Policy to help facilitate the State achieve a GSDP growth of over 9%,

which in turn call for an industrial sector growth of over 12%.

2.2 To focus on strengthening of the manufacturing industry in the State and to increase it's percentage share of the GSDP from the present average of 16.70% to over 20% by the end of the policy period.

2.3 To achieve an increased share of Karnataka's exports in the National exports from the present 15% to 20% by the end of the policy period.

2.4 To create additional employment generation to at least 10.00 lakh persons in the manufacturing and service sectors during the Policy period.

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http://Dr.A.P.J.Abdul/


2.5 Promote diversified industrial base with strength in both old economy & new economy fields.

2.6 Facilitate reduction of regional imbalance in the matter of economic opportunities, employment and growth.

2.7 Endeavor to promote sustained industrial growth by facilitating accelerated flow of investments.

2.8 In short, to promote sustained, growth oriented industrialization with employment & revenue generation, for overall socio-economic development of the State.

3. STRATEGY:Keeping the above objectives in mind, the strategy for further

industrialization of the State during the next 5 years would be:

3.1 To classify various taluks of the State into 3 Zones for the purpose of focused attention:

(i) Zone-1:-79 Taluks - most / more backward Taluks as categorized by Dr. D.M.Nanjundappa Committee Report.

(ii) Zone-2 :-85 Taluks - [ Taluks not covered in Zone 1 & 3].

(iii) Zone-3 :-12 Taluks - of Bangalore Urban & Rural Districts [excluding Taluks of Kanakapura & Magadi] Mangalore and Mysore Taluks.

Details of Taluks indicated in Annexure –B

3.2 To develop industrial infrastructure facilities ahead of the requirements, in various key location of the State through the KIADB / KSSIDC. Annually a minimum of 5,000 acres of quality industrial infrastructure would be created, during the Policy period. Such Industrial Areas will be developed in an integrated manner reserving up to 25% of the area for housing and other social infrastructure. The equity base of KIADB would be strengthened through greater support.

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3.3 Keeping in view the fact that water is a crucial support requirement for industrialization, Government would facilitate implementation of mega industrial water supply schemes for potential locations through Special Purpose Vehicles [SPVs].

3.4 A comprehensive Power Policy would be formulated by the Department of Energy. This Policy would encourage power generation from IPPs and also through captive power generation.

3.5 To meet the rising energy requirements of the State on account of rapid industrialization, Government would facilitate preparation of a "Gas Distribution Master Plan" to enable public / private sector players to bring in gas from diverse sources for distribution.

3.6 Apart from standard infrastructure in the form of industrial areas and industrial estates, specialized industrial infrastructure for specific sectors and Special Economic Zones [Multi-product, Product specific, Sector specific and Free Trade Zones] would be encouraged to be established through both KIADB as well as private sector promoters. The establishment of multi-product and product specific SEZs will be encouraged in all districts of the State except Bangalore Urban District. However, establishment of SEZs even in Bangalore Urban District will also be encouraged if the proponent of SEZ comes forward to do so in his/her own land or through a joint development agreement with the land owners.

3.7 The ONGC in association with Govt. of Karnataka is already implementing a large Multi-product SEZ that would predominantly house Petroleum refining and Petro-Chemical projects. Govt. would take up with Govt. of India for enlargement of the size and scope of Mangalore SEZ Ltd. in to Petroleum, Chemicals & Petro-chemicals Investment Region (PCPIR).

3.8 Industrial corridor / Cluster development would be encouraged in potential locations.

3.9 State would encourage alternate partnership & financing options for infrastructure development.

3.10 Focused attention on sub-sectors / areas where the State has core competency i.e., Aerospace, Engineering, Automobile, Machine-tools, Steel, Cement, Pharmaceuticals, Food Processing, Apparel & Textiles, Electronics, Information Technology, Bio Technology etc.

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3.11 In view of the fact that the silk reeling sector is highly employment oriented, a separate package will be formulated in consultation with the Sericulture Department.

3.12 Impetus for development of renewable & non-conventional energy sources through Mission approach.

3.13 Human Resource Development - Government would promote / help facilitate establishment of specialized skill development institutions at key locations suitable for the manufacturing industries and emerging vocations in the service sector. A scheme of State support through public, private partnership would be evolved & implemented. The Government assistance will be in the form of providing land and financial assistance for creation of basic infrastructure facilities as follows:

(i) Grant of up to 5 acres of Government land will be considered along with capital contribution of 50% of the project cost subject to a ceiling of Rs.2 crores per Training establishment for sector specific training.

(ii) Recurring cost for running the training institution an amount of Rs.750/- p.m./ per trainee will be provided subject to a ceiling of Rs.15 lakhs per year for a period of 3 years.

(iii) Government will launch a new scheme to provide Rs.750/- p.m. stipend for on-the-job training of unemployed educated youth for training in different vocations through industrial / service establishments. The Training Institutions would also consider providing matching contribution towards stipend to the trainees and other required facilities during the training period.

The modalities of the scheme will be worked out by the Government separately.

3.14 Promote Agro Food Processing industries in the potential location to help farmers realize better value / price for their produce, through increased localized processing of agricultural output. As an incentive for setting up of new agricultural produce processing industries, APMC cess in respect of such procurement by the processing industries directly from the farmers will be exempted. Necessary amendments to the existing law will be brought about by the Co-operation Department in this regard.

3.15 In the context of globalised economy, survival & growth of SSI sector depend up on its ability to modernize, improve quality & cut

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costs. Karnataka Council for Technology Upgradation [KCTU] would be strengthened to take up promotional programmes in this regard.

3.16 Programmes for promotion of local entrepreneurship would be strengthened through appropriate restructuring of institutional mechanism to impart entrepreneurship training to 3,00,000 persons during the Policy period.

3.17 Special Incentives for entrepreneurs setting up units in backward areas.Additional incentives for units promoted by entrepreneurs from the category of SC/ST Minority, Women, Physically challenged & Ex-Servicemen.

3.18 Government would work in close co-ordination with Industry Associations / Chambers of Commerce / Trade bodies to have continuous feed back on the state of industries and the support measures needed.

3.19 Improvement of investment climate and business environment through decentralized governance measures and efficient facilitation.

3.20 Government would take up comprehensive rationalization & simplification of provisions of various labour laws to enable flexibility & increased productivity in the industry.

3.21 Government would come up with a separate revival package for sick SSI units and BIFR cases, after consultation with all the stake holders viz; Industry Associations, Financial Institutions / Banks, Service providers, labour representatives. A clear cut Exit Policy would be attempted.

3.22 Local Amendments to The SEZ Act 2005 & Rules 2006 [Central Act] would be effected, providing for State level facilitation & incentives, labour law rationalization etc.

3.23 The BMRDA has taken up 5 New Townships around Bangalore. As per BM RDA Master Plan economic activities would be encouraged within these townships by creating industrial infrastructure.

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3.24 The District Industries Centre(DIC) would be designated as Nodal Agency at the district level for implementation of Self-Employment Programmes and Self-Help Groups.

3.25 Global Information Centres would be set up at all DICs at district headquarters for the benefit of entrepreneurs.

3.26 Industry relevant skills would be identified and training programme would be provided to one lakh educated unemployed youth for taking self-employment ventures and wage-employment.

3.27 The Government shall encourage setting up of various institutions and centres of excellence in the field of automobile / machine tools / food processing l building materials and other fields and also encourage setting up of Technology Business Incubators in these areas. The Government assistance will be in the form of providing financial assistance for creation of basic infrastructure facilities, subject to a ceiling of Rs.50.00 lakhs per incubator / centre.

3.28 Existing areas of concentration of industries would be converted in to "Industrial Township" for efficient maintenance of civic amenities and services etc.

3.29 Implementation of Kaigarika Vikas Scheme will be speeded up for development of 79 most and more backward Taluks as identified by Dr.D.M.Nanjundappa Committee Report on redressal of regional imbalances. G.O. No. CI 154 CSC 2005 dated 8-12-2005 already issued for implementation of the Scheme will be integrated with this new policy. It envisages creation of new economic opportunity by utilising local resources, skill and demand, by providing ready to use infrastructure, human resource development etc.

3.30 Khadi institutions assisted by KVIC / KVIB would be provided improved Charakas for increasing productivity, which in turn, will help increased wage earning by artisans.

3.31 In order to encourage, sustain and safeguard the interests of SSI units of Karnataka, Government is committed to extend the facility of price preference of 15% for the purchases and purchase preference made from SSIs units of the State. This incentive as provided in the 2001-06 Policy would be extended in this Policy for the next five years.

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3.32 In order to achieve envisaged export growth rate of 20% during the Policy period Visvesvaraya Industrial Trade Centre (VITC) will be strengthened in this regard.

3.33 Incentives and concessions for various categories of industries and locations are indicated in Annexure-C. Negative list of units in-eligible for incentives & concessions is indicated in Annexure-D.

4. ACTION PLAN:4.1 KIADB would focus on development of large industrial areas of 500

or more acres each in potential locations.

4.2 KIADB would endeavour to complete implementation of SEZ projects taken up at Hassan, Mangalore & Shimoga.

4.3 One time Upgradation of Infrastructure in existing industrial areas / estates developed by KIADB / KSSIDC respectively would be carried out. Financial assistance would be provided to KIADB / KSSIDC to carry out the work subject to the condition that the Local Authorities & Industrial Associations come forward to take up future maintenance. An Infrastructure Upgradation Fund of Rs. 500 crores would be created for this purpose.

4.4 The Apparel Park taken up by KIADB at Doddaballapur and Integrated Textile Park at Anekal, Bellary, Davanagere, Mysore, Kanakapura would be completed and commissioned early.

4.5 6 Food Parks taken up at Malur, Bagalkot, Maddur, Hiriyur, Jewargi and Belgaum would be completed by end of 2007.

4.6 Government would adopt the "Mega Food Park" concept being formulated by Ministry of Food Processing, Govt. of India, for Implementation in select Districts by providing infrastructure, forward and backward linkages.

4.7 Accelerated development of food processing industries would be encouraged. Karnataka has 11 Agro Climatic Zones ideally suited for cultivation of a variety of cereals, oil seeds, fruits & vegetables, spices, flowers etc. These agro resources would be harnessed to the fullest extent to create value chain for farmers, processors & Consumers.

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4.8 Agriculture produce processing industries will be permitted to procure agriculture produce like cereals, oil seeds, fruits & vegetables directly from farmers without going through the APMC.

APMC cess in respect of such procurement by processing industries would be exempted.

4.9 25 Small Industrial areas for development of Cluster in potential Taluks through out the State would be taken up for the benefit of Tiny / SSI Units by KSSIDC and would be completed by 2007-08.

4.10 Private Sector entrepreneurs would be encouraged to set up a multi-product, product specific, sector specific and free trade zones in various potential locations and need based infrastructure support would be extended from KIADB.

4.11 Industrial Corridor / Cluster development would be taken up in potential locations viz: (i) Bangalore-Mysore (ii) Mysore-Nanjangud, (iii) Hubli-Belgaum, (iv) Hospet-Bellary (v) Mangalore-Udupi, (vi) Bhadravathi-Shimoga (vii) Nelamangala-Kunigal (viii) Davanagere-Harihar (ix) Kolar-KGF etc.

4.12 Human Resource Development -A High Level Committee chaired by Principal Secretary to Govt., Commerce & Industries Department and with Representatives of Higher Education, IT & BT, Agriculture & Horticulture and Vice-Chancellor of Universities of VTU / Agriculture Universities and others would be constituted to work out detailed plans for Human Resource Development / Skill sets required for various segments of Industry. An amount of Rs. 25 crores would be earmarked for this purpose.

4.13 Man Power Training Institutions for emerging vocations like retailing, apparels & textiles, construction, repair and service of earth moving equipments etc. would be set up with Private Sector participation in PPP mode.

4.14 A State Level Industrial Development Council with Hon'ble CM as Chairman & Hon'ble Minister for Large & Medium Industries as Vice-Chairman and consisting of Captains of Industries, Chiefs of Chamber of Commerce & Industries / Trade bodies would be constituted to aid and advise the Government on policy issues pertaining to Industrial development & Investment Promotion in the State.

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4.15 Besides physical infrastructure, fiscal / financial incentives, the key aspect enabling timely implementation & commissioning of projects is "de-regulation & ease of doing business". The Karnataka Industries (Facilitation) Act 2002 and Rules 2003 would be implemented more effectively for efficient delivery of services to the entrepreneurs.

4.16 Karnataka Udyog Mitra would be strengthened and assigned a dominant role in the task of Investment Promotion and Investors support to facilitate speedy implementation of projects. The Single Window Mechanism would further be rationalised and strengthened to this effect.

4.17 Under Kaigarika Vikasa scheme, GTTC would set up additional sub-centres in tool and die making and implementation of Sector specific scheme of various Boards and Corporations, conducting EDP's, Rrsource mapping of Taluks, upgradation / creation of Industrial Infrastructure will be taken up by integrating various schemes of other Departments. Financial assistance would be provided for sector specific scheme implemented by Boards / Corporations.

4.18 Existing 6 spindle charakas will be replaced by 8 spindle improved charakas at subsidised rates through Khadi institutions assisted by KVIC / KVIB in phased manner to increase productivity and wage earnings of artisans.

5. TERMS & CONDITIONS:5.1 The incentives and concessions under this policy will come into

force with retrospective effect from 1 S' April 2006. However, industrial units which have already been granted a Package of Incentives & Concessions as per the previous policies will continue to enjoy the benefits already granted till the expiry of the earlier sanction orders. All new investments made after 1S'April 2006 will be covered by this Policy.

5.2 Industrial units are eligible for Incentives & Concessions on new investment made on fixed assets only. Investments in taken over industrial concerns or assets would not qualify for incentives. However for additional investment made by the new entrepreneur during this Policy period in creation of new assets under new unit/ expansion programme would qualify for assistance.

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5.3 Incentives and concessions for investments in the Information Technology/ Bio Technology Sectors will however continue to be governed by the IT policy as per Government Order " MAHITI " and the Bio Technology Policy.

5.4. Incentives and Concessions as per this Policy will not be available for the industries specified in Annexure - 3.

5.5 Definitions :a) Tiny Industry: Tiny Scale industry is one in which the investment

in plant and machinery is less than Rs.25 lakhs irrespective of the location of the unit.

b) Small Scale Industry: An industrial undertaking in which the investment in plant and machinery whether held on ownership terms or on lease or by hire purchase does not exceed Rs.100 lakhs.

c) Medium & Large Scale Industry : An industrial unit which is not classified as Tiny/ Small Scale/Ancillary Industry shall be classified as Medium/ Large Scale Industry.

d) 100% Export Oriented Units [Export Oriented Units] : A 100% Export Oriented Units is one which undertakes to export its entire production of goods subject to relaxation as permitted by Govt. of India from time to time and as defined by it. Such units may be set up either under the Export Oriented Units or under EPIP [Export Promotion Industrial Park] Scheme or under the EHTP [Electronic Hardware Technology Park] Scheme or Software Technology Park Scheme or Special Economic Zone.

e) Mega Project: shall mean Projects with an investment of IRS. 100 Cr. and above in fixed assets.

f) Fixed Asset : Fixed assets shall mean the total investment made on land, building and plant and machinery and such other productive assets like tools, jigs, and fixtures, dies, utilities like boilers, compressors, diesel generating sets, cranes, material handling equipments and such other equipments directly related to production purposes.

5.6 SANCTION OF INCENTIVES AND CONCESSIONS IS SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS:

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a) All new industrial investments shall create maximum possible additional employment opportunities and provide a minimum 80% of employment to the local people on an overall basis [100% employment to local people in case of Group C & D categories will be insisted] and this will be monitored during disbursement of incentives and concessions.

The above requirements regarding employment to local people will be monitored by the DIC for a period of 5 years. Failure of the industries to provide employment to local people as stipulated above will be reported to the concerned DLSWA/ SLSWCC/ SHLCC, which will recommend for recovery of investment subsidy sanctioned to the unit, for which purpose a suitable under-taking will have to be furnished by the unit concerned before disbursal of subsidy.

b) The quantum of investment subsidy shall be computed on the value of fixed assets as specified in Sub Para-[f] of Para 5.5 and as approved by the financial institutions, commercial banks.

c) The definition of tiny, small or medium and large scale industries as indicated above shall automatically stand revised as and when Government of India makes any changes in such definition and benefits under this package shall be available to the Tiny, Small Medium & Large scale units as per the new definition from the respective dates.

d) The validity of incentives and concessions as per this order shall be for a period of five years from 15'April 2006 [i.e., upto 315' March 2011].

e) Wherever industrial units avail subsidy under any other schemes of Govt. of Karnataka / Govt. of India, only differential amount of Subsidy, if any, would be provided under this policy.

f) Commerce & Industries Dept. would administer the package of Incentives & Concession under this Industrial Policy. Separate guidelines for administration of these incentives and concessions will be issued for the guidance of the concerned agencies and officers. Interpretation of this Government Order and the decision thereon of the Commerce & Industries Department, Government of Karnataka shall be final.

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ANNEXURE –BThe following taluks of Gulbarga District are classified in ZONE – 1

Most Backward for purpose of administering graded scale of incentives & Concessions.

(1) Sedam (2) Shorapur (3) Yadgir (4) Chitapur (5) Afzalpur (6) Shahapur (7) Aland (8) Chincholi and (9) Jewargi

Gulbarga Taluk has been classified in Zone – 2 under Backward Taluka.

ANNEXURE –C

Incentives & Concessions for Small Scale Industries1 Capital Investment

Subsidy Zone – 1

25% of the value of fixed assets subject to a maximum of Rs. 15 lakhs per unit

Zone - 2

20% of the value of fixed assets, subject to a maximum of Rs. 10 lakhs per unit

Zone 1 & 2 Addl. Subsidy of 5% of the value of fixed assets, subject to a ceiling of Rs. 1 Lakh for SC/ST/PH/ Minority & X-servicemen.

Note : This incentive is available only to units financed by KSFC/KSSIIDC/Banks/Other financial institutions.

2 Exemption of Electricity duty on Captive power Generation

Currently available under EnergyDept. policy continued up to 2011.

3 Exemption of Stamp Duty & Reduction of Registration Charges

Zone – 1 : Full ExemptionZone - 2 : 75% exemption

Stamp duty :In respect of Loan & Credit deeds executed for availing term from Financial institutions/ Banks and for execution of Lease, Lease cum Sale & absolute Sale Deeds by KIADB/ KSSIDC in respect of Industrial land /plots allotted.Reduction of Registration Charges: Concessionl registration charges at Re. 1 per Rs.1000/-

4 Waiver of conversion (on

Zone – 1 : Full exemption subject to Maximum of 10 acres per unit.

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lands for industrial use). Zone – 2 : 75% exemption subject to a Maximum

of 10 acres per unit,5 Acquisition &

allotment of land through KIADB

In respect of lands acquired for development of industrial area/ estates or single unit complex KIADB acquisition charges to be levied is 10% in respect of areas in Zone : 1 & 2. (For the areas in Zone 3 acquisition charges would be 28%.)

6 Subsidy for setting up of Effluent Treatment plants [ETPs]

One time capital subsidy up to 50% of the cost of ETP, subject to a ceiling of Rs. 100 lakhs per unit for all categories of industries for Zones.

7 Entry Tax & Sperical Entry : Tax concession

Zone 1 & 2

i. ET & Special ET exemption on “Plant & Machinery and Capital Goods” for an initial period of 3 years from the date of commencement of project implementation. For this purpose, the term “Plant & Machinery and Capital goods” also includes Plant & Machinery and capital goods i.e., equipment etc. which is put up in the power project units for captive generation of electricity.

ii. On raw materials, inputs, component parts & consumables (excluding petroleum products) [wherever applicable ] for a period of 5 years from the date of commencement of commercial production.

8 Human Development

i. Grant of up to 5 acres of Government land will be considered along with capital contribution of 50% of the project cost subject to a ceiling of Rs.2 crores per Training Establishment for sector specific training.

ii. Recurring cost for running the training institution an amount of Rs. 750/- p.m./ per trainee will be provided subject to a ceiling of Rs. 15 lakhs per year for period of 3 years.

iii. Government will launch a new scheme to provide Rs.750/- p.m. stipend with suitable matching contribution by training institutions for on-the-job training of unemployed educated youth for training in different vocations

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through industrial/ service establishments.

9 Technology Upgradation

Zone 1 & 2 :(i) Existing scheme of 4% interest subsidy for

TU loans availed from KSFC/ KSSIDC shall be extended to cover TU loans availed from scheduled Commercial Banks, which are not covered under CLCS Scheme of Govt. of India.

Zone 1, 2 & 3

(ii) Existing incentive scheme for SSI units going in for BIS product certification or ISO series certification is continued with enhanced financial allocation.

(iii) Encouragement to Patents Registration : Subsidy at 50% of the cost of Patents registration, subject to a ceiling of Rs.2 lakhs per unit.

Funding will be provided for certain commercially viable research projects In collaboration with IITs, universities and other reputed institutions. An amount of Rs. 25 crores is earmarked for this purpose during the policy period.

10

Industrial Infrastructure Development/Common Infrastructure/facilitiesin Notified Industrial Clusters

A separate Infrastructure Upgradation Fundof Rs. 500 crores would be created for upgradation of infrastructure facilities in existing industrial areas / estates and alsofor maintenance. This fund may also be utilized for new industrial areas. Separate guidelines would be issued for utilizing this fund.

11 Agricultural ProduceProcessing Industries- Exemption of APMC Cess

APMC Cess in respect of direct procurement of agricultural produce for processing from farmers by processing industries is exempted.

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ANNEXURE – D

List of Industrial activities / Units In-eligible for Incentives & Concessions

SI.No

Activity

1 Breweries & Distilleries of all types

2Units utilizing molasses / rectified spirit / denatured spirit as main raw material for manufacture of potable alcohol

3 Khandasari units

4 Photo Studios & Color processing units

5 Photo Copying & Xerox Machines

6 Fertilizer Mixing

7Re-packing of Drugs / Medicines / Chemicals, without any processing or value addition

8 All types of Saw Mills

9 Beedies / Cigarettes / Cigars / Gutka & Tobacco based products

10 Azoic / Reactive Dyes

11 Fire Crackers

12 Industries manufacturing and or utilizing Ozone depleting substances

13 Power Laundries

14Brick making units Excluding Cement Hallow Blocks, wire cut & fly ash Bricks

15 Poultry

16 Popcorn & Ice candy making units

17 Coffee Roasting and Grinding

18 Clock and Watch Repair shops

19 Cassette recording [Audio & vedio]

20 Cyanide

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SMALL INDUSTRIES DEVELOPMENT ORGANIZATION (Govt. of India) INCENTIVES &

PROMOTIONAL SCHEMESSIDO operates a number of promotional schemes for the SSI sector

Credit Linked Capital Subsidy Scheme for Technology Up gradation (CLCSS) - Govt. of India is encouraging SSI Units by way of subsidy to the tune of 12% to 15% on loan amount availed for Modernizing / Technology upgradation of SSI units.

Credit Guarantee Trust for Small Industries (CGTSI) - A blessing in disguise for all SSI entrepreneurs with good viable projects on Manufacturing / Service & IT related project, but those who could not arrange collateral security or third party guarantee against 75% of the project cost subject to a max. of Rs. 25.0 lakhs for starting SSI ventures.

ISO-9000/ISO-14001 Certification Reimbursement Scheme - Reimbursement of upto Rs. 75,000/- after acquiring the ISO certification.

Participation in International Fairs Purchase and Price Preference Policy for SSI’s National Awards for outstanding SSI entrepreneur, Research &

Development effort in small-scale sector and Quality Products in small-scale sector.

BAR coding - subsidy upto Rs. 5,000/- on equipment. Scheme for Trade Related Entrepreneurship Assistance and

Development for Women (TREAD) :

Salient Features of the Scheme -The Govt. Grant upto 3o°% of total project cost as appraised by

lending institutions which would finance the remaining 70% as loan assistance to applicant women who have no easy access to credit from banks due to cumbersome procedures and the inability of the poor and usually illiterate / semi illiterate women to provide adequate security demanded by banks in the form of collaterals.1. Credit2. Training & Counselling3. Eliciting information on Related needs.

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Criteria for Registration of NGOs:

a. Be a legal entity with a minimum registration of three years.b. Having experience in thrift and saving programmes with SHGs /

individuals.c. Be engaged in Entrepreneurship and income generation activities for

women.d. Have basic infrastructure, qualified support staff and services to

undertake micro-enterprise development for women. Prepare project proposals on behalf of women Entrepreneurs / women self Help Groups for income activity and take loan from financial institutions for onward disbursement to them.

Schemes – Khadi & Village Industries Commission

Rural employment Generation programme –1. To generate employment in rural area.2. To develop entrepreneurial skill among the rural unemployed youth.3. To achieve the goal of rural industrialization.4. To mobilize Bank Finance looking to the limited resources of KVIC

Policy & Development Initiatives of NABARD

With the objective of facilitating development and ensuring rural prosperity, NABARD continued to support initiatives related to watershed development, integrated development of backward areas, promotion of cultivation of medicinal crops, Agri-Export Zones, agri-clinics and agri-business centers, contract farming, bio-fuels, non-farm activities, improving the outreach of the rural credit delivery system through Micro-Finance institutions/Self-Help Groups(SHGs), women empowerment, environmental; protection, human resources development in the rural banking sector and research and development activities in agriculture and rural sector.

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FACILITIES OFFERED BY ORGANISATION/INSTITUTIONS DEVOTED TO THE

DEVELOPMENT OF SMALL SCALE INDUSTRIESSLNo

NAME OF THE ORGANISATION

TYPE OF ASSISTANCE

1 2 31 Small Industries Service Institute,

Rajjajinagar, Bangalore 5600 044

Br. Small Industries Service Institute, L-11, Yeyyadi Indl.Estate Mangalore – 575008

Small Industries Service InstituteIndustrial Estate, Gokul Road,Hubli -580030.

Br. Small Industries Service Institute,C-1 Indl. Estate, M.S.K.Mill Road,Gulbarga –585 102

Industrial Extension Service on -1) Technical

Consultancy2) Preparation of project

profiles, feasibility reports3) Training

programmes/ demonstrations

4) Common Facility Service

5) Economic Information

6) Management Consultancy

7) Modernization8) Chemical/Glass &

Ceramics/Leather/Lab. Facilities/Testing/ product development

9) EDPs/Management Programmes

10) Organizing Open House Discussions/Clinics/ Seminars/Buyer-Seller Meet

11) Designs & Development Services etc.

12) Marketing assistance13) Industrial Potential

Surveys/ Market Surveys2 Field Testing Station

SISI Campus, Rajajinagar, Bangalore.-560044.

a) Testing of Household electrical appliancesConsultancy service for setting up testing & Inspection facilities.

SISI,Hubli


3 National Small Industries Corporation Ltd.,ISCICOS Building No. 6 & 7,Industrial Town, Rajajinagar,Bangalore -560 044

1. Supply of machinery on hire/ lease purchase basis to SSIs2. Marketing assistance

4 Directorate of Industries & Commerce, Govt. of Karnataka, Khanija Bhavan, Race Course Road, Bangalore 560001

Regulatory functions - Registration of units Credit Facilities Consultancy Service

Subordinate offices of DICs in the respective Districts

Economic Information Raw Materials etc. Marketing assistance Disbursement of capital

subsidy etc

5 Technical Consultancy Services Organisation of Karnataka (TECSOK), Basava Bhavan, High Grounds, Bangalore - 560001.

Consultancy Services for Small, Medium & large scale entrepreneurs

Preparation of project reports

Management assistance Turn key assistance to SSIs Training programmes &

EDPs etc.

6 Karnataka State Small Industries Development Corporation Ltd., Industrial Estate, Rajajinagar,Bangalore 560 044

Management of Industrial Estates, Allotment of sheds

Supply of scarce raw materials etc., Exhibition, Technical Library

7 Karnataka State Electronics Development Corporation Ltd., No.29/1 Race Course Rd.Bangalore 560 001

Consultancy services in Electronic fields, Training programmes in Computers

8 Karnataka State Finance Corporation, No.1/1Thimmaiah Road, Bangalore-560052.

1. Financial assistance - medium/long term

2. Seed Capital Assistance Single Window Scheme etc.

9 Karnataka State Khadi & Village Industries Board, No.10 Jasma

1. Financial assistance to Khadi,

SISI,Hubli


Bhavan Rd. Bangalore.560052 Cotton, Woollen, Silk & Village industries

2. Marketing assistance

10 Karnataka State Social Welfare Advisory BoardNo.13, 10th Cross, 5th Main12th Block, Kumaarapark WestBangalore.560020.

Financial assistance to existing voluntary women's organizations

11 Karnataka Leather Industrial Development Corporation, J.C. Road, Bangalore-560002.

a. Development of leather & leather board industries in the State

b. Supply of raw materials

c. Marketing assistance

12 Karnataka State Handicrafts Development CorporationNo.45 MG Road, Bangalore.560001.

1. Encouraging different types of artisans

2. Supply of raw materials

3. Marketing assistance through internal & export destinations

4. Assistance to Co-operative establishments

13 National Productivity CouncilNo.11 Langford RoadBangalore.560001

a. Productivity Service to Small Scale sector

b. Training & Consultancy services

14 Bureau of Indian Standards, Peenya I Stage, Tumkur Road, Bangalore 560 058

i) Preparation of Standards relating to products, commodities, materials & process etc.

SISI,Hubli


ii) Certification of quality goods for National & International levels

15 Visveswarayya Industrial Trade Centre, Kasturba RoadBangalore-560 001

1. Export Marketing assistance to SSIs

2. Display of various trade journals relating to export marketing

3. Exhibition & periodical films

16 Electronic Test & Development Centre, Ind,Estate, Ring Road, 1st Stage, Peenya, Bangalore-560058.

Testing, Calibration & Development assistance in the field of -a) Electrical

& Electronic Componentsb) Personal

Computersc) Colour/B

& W Tvs/Video Display unit

d) Various power supplies including SMPs

17 Karnataka Industrial Area Development Board, No.14/3 Rastrothana Parishat Bhavan, Nrupatunga Rd. Bangalore-560001.

1. Acquires and allots developed land for industrial ventures in the State

2. Set up an export promotion Industrial park at Whitefield.

SISI,Hubli


CHAPTER - 11

ADDRESSES OF PROMOTIONAL AGENCIES

Joint Director, Tel.: 08472-223988District Industries Centre,M S K Mill Road,Gulbarga - 585 101.

District Statistical Officer, Tel.: 08472-220578Gulbarga – 585 102

Deputy Director,(Horticulture), Tel.: 08472-220627Gulbarga - 585 101.

Senior Geologist, Tel.: 08472-222637Mini Vidhana Soudha,Gulbarga - 585 101.

Chief Planning Officer,Zilla Panchayat Office,Gulbarga - 585 101.

Taluk Industries Promotion Officer,Taluk Office, Afzalpur

Asst.General Manager,KSFC, Kings Complex No.31 & 32 I Floor, Station Road, Gulbarga - 585 102

District Development Manager, Tel: 08472-253126NABARD, Preethi Nilaya, Opp.Old Post Office,Godutai Nagar,Gulbarga – 585 102.

SISI,Hubli


Managing Director,Gulbarga-Bidar Co.op.Milk Producers Societies Union Ltd.,Humnabad Road,Gulbarga – 585 104

Deputy Manager,State Bank of India,Lead Bank Office,Aiwan-E-Shahi Road,Gulbarga- 585 102

Development Officer,KIADB Zonal Office,Kapnoor I-stage,I.A,Humnabad Road,Gulbarga- 585 104

District Development Officer,KVIB,Near Sanman Lodge,Saraswathi Godham,Gulbarga- 585 101

President, HKCCI,Supermarket,Gulbarga - 585 102.

Chief Engineer (Elec)Station Road,Gulbarga – 585 102.

State Director, Tel.: 080-26614581O/o the Commissioner forKhadi & Village Industries,No. 6, Dr. DVG Road, Gandhi Bazar, Basavangudi,Bangalore – 560 004.

The Director Tel: 0836-2330389Small Industries Service Institute,Industrial Estate, Gokul Road,Hubli – 580 030.

SISI,Hubli

Gulbarga Taluk

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Transcript of Gulbarga Taluk