CHAPTER V

INDUSTRIES

 

(a)   Old-Time Industries and Industrial Development

 

          The area of present Nawashahr District (prior to its formation on 7 November 1995) was part of Jalandhar (Nawashahr Tahsil) and Hoshiarpur (Balachaur Tahsil) Districts. Though the Jalandhar District was not considered as industiral backward as that of Hoshiarpur District but the area of its Nawashahr Tahsil was industrially backward. In the name of old time industry in Nawashahr District only two references are available. First is of moulded work in brass and Kansi at six workshops in Banga. Of the articles the martvan, garva, hukka. gilas and degchi were produced by moulding, the alloy employed being 24 parts brass or copper, 16 parts zinc with one part  borax. Secondly Rahon had a great reputation for a superior cotton long-cloth called ghatti worn by well to do persons but its production ceased by the close of the nineteenth century. However lungi continued to be produced at Rahon. Besides there were village industries, which were principally, confined to cloth, sugar and manufacture of shoes. These suffered heavily from the factory made products in the beginning of twentieth century. The society was not so complex at the  end of 19th century. The people were not so ambitious as they are today. Only cottage industry existed in the areas of present Nawashahr District. There were, however, some traditional industries which were hereditary in character and were carried on by the rural or local artisans from the ancient times. Such industries mainly catered the local needs of the people and included the artisans like carpenters, blacksmiths, shoesmakers (mainly desi jutties), julahas (weavers), Kumhars (Potters), telies (Oilmen), etc. The manufactures carried on by the artisans were the simple trades by which the produce of the village was prepared to suit the simple wants of the agricultural population. The artisans were generally paid in kind.

                        These industries, particularly jutti making (Shoes making), oil crushing, spinning and weaving suffered a set back due to the keen competition faced from machine made products. The Government responsibility even in respect of technical education, commercial intelligence, survey, research in new techniques, etc; was tardy and reluctantly recognised and indifferently discharged in those days. After 1948, a vigorous and multipronged efforts has been made both by the Government and private agencies to serve such industries by extending financial assistance and training facilities and also to provide the area of present district with an industrial base.

 

(b) State Aid to Industries

 

            After Independence the Punjab Government have realized the importance of the development of the industrial sector, so the provisions of the State Aid to Industries Act, 1935, have been liberalized. Loans were advanced to the industries and entrepreneurs for the construction of factory building, purchase of machinery and equipment, working capital, etc., who want to set up new industrial units or to expend or modernize through its various industrial policies. These industrial units set up in the State were also eligible for grants-in-aid and subsidy on the loans advanced under the Punjab State Aid to Industries Act, 1935. But this practice has been discontinued since 1981-82 and now the industrial units set up in the State are given incentives on land, building and taxation, etc., under various industrial policies applicable from time to time.

                        The State Government in a bid to bring about industrial development in the industrial backward districts have announced a number of facilities under new Industrial Policy and Incentive Code, 1996. According to this Industrial Policy, the Nawashahr District has been categorized as “B” Grade Growth Area except Balachaur Block, which is designated Kandi Area and fall in “A” Grade Growth Area. Under “A” category area 30 per cent investment incentive (capital subsidy) of fixed capital investment, subject to maximum of Rs 50 lakh and under “B” category area 20 per cent investment incentive of fixed capital investment, subject to maximum of Rs 30 lakhs is provided.

                        Besides, these incentives, other incentives to special industries are also provided, which are described below:-

 

1 Agro Based Industry

 

(a)    Investment incentive at the rate of 30 percent of the fixed capital investment subject to maximum of Rs 50 lakh

(b)   Sale Tax exemption or deferment for 120 months subject to maximum of 300 percent of fixed capital investment

(c)    Generator set subsidy of the rate of 50 per cent of the cost of the  captive generator set, subject to maximum Rs 15 lakh provided the generator set is new

 

 

2 Tourism Industry

 

            Hotels, Restaurants and  Amusement/adventure parks which come up in an authorised manner and obtain a license/registration from Tourism Department of Central or State Government shall be entitled to incentives which are mentioned below:

(a)    Investment incentive at the rate of 25 per cent subject to maximum limit of Rs 25 lakh irrespective of their location

(b)   For amusement parks, the rate of entertainment duty would be 75 per cent instead of present rate of 125 per cent

 

3 Export Oriented Unit

 

(a)    Investment incentive at the rate of 30 percent of fixed capital investment subject to maximum of Rs 50 lakhs, in case of export oriented units in small scale sector and units situated in ‘A’ category area belonging to large and medium sector whereas for units of large and medium sector in ‘B’ category area investment incentive at the rate of 20 per cent of fixed investment subject to maximum of Rs 30 lakh is provided

(b)    Sales tax exemption of deferment for 120 months subject to maximum of 300 per cent of fixed capital investment in case of export oriented units in small scale sector and units situated in ‘A’ category area belonging to large and medium sector, whereas for units of large and medium sector in ‘B’ category area the sales tax exemption or deferment for 84 months subject to maximum of 150 percent of fixed capital investment

 

4 Village Industries Units

 

            Village Industries units are provided incentive at the rate of 30 per cent of fixed capital investment subject to maximum of Rs 50 lakhs.

 

5 Sick Industrial Units

 

            Under this scheme sick industrial units purchased by entrepreneurs from the Punjab Financial Corporation or other corporations are treated as new unit for the purpose incentive provided they are located in the areas eligible for incentives. Investment incentive only to the small scale industrial units is given to the extent the same has not been availed of earlier by the original promoter. This incentive is also be available on new machinery purchased by new entrepreneur. Sales tax incentive for the remaining period which has not been availed of by the original promoter subject to the maximum prescribed limit on the fixed capital investment is granted as per the procedure.

 

                        Prime Minister Rozgar Yojna.- Under this scheme at least middle passed, unemployed youth, are provided loan of Rs 2 lakh through banks to start their own work. On this loan subsidy at rate of 15 per cent is also given, which should not exceed Rs 7500. In Nawashahr District the progress made under this scheme for the years 1996-97 to 2000-2001 is given below :

 

Years

Target

Sanctioned by banks

cases

Amount

(Rs in Lakhs)

Disbursed by banks

Cases

Amount

(Rs in lakhs)

Number of Employees given employment

1996-97

200

220

118.45

190

103.70

223

1997-98

200

254

153.56

226

122.99

316

1998-99

200

240

151.50

206

119.80

274

1999-2000

200

227

144.45

200

100.93

221

2000-2001

200

217

136.95

201

113.53

223

(Source: General Manager, District Industries Centre, Nawashahr)

 

            Margin Money Scheme.- This scheme of Khadi and Village Industries Commission is meant for villages or those areas which are out of municipal limits or for those which have population less than 20,000, according to 1991 Census. Under this scheme, loans to individuals and trusts are provided upto Rs 25 lakhs, through nationalized banks, Punjab Financial Corporation and Regional Gramin Banks. For general categories loans upto Rs 10 lakhs are given at a subsidy of 25 per cent as margin money. But for units costing more than 10 lakhs upto 25 lakhs, the rate of subsidy for first 10 lakhs would be 25 per cent and for remaining it would be 10 per cent.

            For Scheduled Castes/Scheduled Tribes/women/physically challenged persons/ex-serviceman and for minority section entrepreneurs, this margin money share is 30 per cent for  Rs 10 lakhs. For units costing more than 10 lakhs the rate is as that of general category.

            Under this scheme, a loanee has to invest at least 10 per cent of the planned expenditure in general category. But for weaker section this rate is 5 per cent.

           

            NABARD Loans.- National Bank for Agriculture and Rural Development is established as a Development Bank for providing and regulating credit and other facilities for the promotion and development of agriculture, small industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promote integrated rural development and securing prosperity of rural areas and for matters connected therewith or incidental thereto.

            Rural Non Farm Sector (RNFS) holds the key to faster economic development. It has potential and promise for generating employment and increased income in the rural areas. Hence, NABARD  has identified financing, development and  promotion of rural non farm sector as one of its thrust areas.

            NABARD has evolved several refinance and promotional schemes over the years, viz., Composite Loan Scheme; Integrated Loan Scheme; Small Road and Water Transport Operators Scheme; etc., and has been making constant efforts to liberalise, broad base and refine/rationalise, the schemes in response to the field level needs. The focus has been on greater credit flow and provision of linkages for small, cottage and village industries, handicrafts and other rural crafts in the decentralised sector in the rural areas. In Nawashahr District, during 2000-2001, NABARD had advanced  loans worth Rs 1,176.14 lakhs, under various Schemes.

            The other measures taken for the promotion of industries in the district are discussed below:

 

(1)               Quality Marking Scheme

 

The department of Industries, Punjab has also set up Quality Marking Industrial Development Centres in the State for providing facilities of testing, making and all types of services to the manufactures. Quality control  secure uniformity of products. These centres facilities constant improvement of processing in manufacturing. The uniformity in specifications also facilitates the interchange ability in the products. Moreover, production cost can be reduced through continuous processing. There is no quality marking centre functioning in the district. However, the benefits of these services are obtained from quality marking centres functioning in other districts.

 

(2) Rural Industrialisation

 

There are rural industrial development centres and common facility workshops running in the State. The workshops besides rendering technical assistance, undertake to manufacture of all types of common agricultural implements, like gur making equipment, poultry feeders, grain storage bins, plough, etc.

 

(3) Other Organisation for the Development of Industries

Besides the above mentioned measures, a number of organisations have been set up for the development and promotion  of industries in the state. These are mentioned as under :

 

(i) The Punjab Financial Corporation, Chandigarh.- It was established in 1953 under the State Financial  Corporations Act, 1951, with the object of providing medium and long term loans to the industrial concerns located in the State of Punjab. It was reconstituted under the Punjab Reorganisation Act, 1966 on 1 April 1967.

            It generally grants term loans for creation/ acquisition of fixed assets like land, building, plant and machinery, provides guarantee against deferred payments for the purchase of capital goods and offers under-writing facility on issue of stocks and shares to companies. The corporation also provides financial assistance for setting up of hotels, nursing homes/small hospitals, development of industrial estates, purchase of transport vehicles, etc.

            The corporation also grants composite loan for meeting working capital requirements to new tiny and small units and working capital to small units with project cost up to Rs 100 lakhs under single window scheme. The  corporation also associates itself with Punjab State Industrial Development Corporation (PSIDC), commercial banks and other financial institutions for financing industrial projects costing up to Rs 10 crores.

            Corporation provides loans under the Punjab Financial Corporation Act, 1951. The amount of loans of Rs 150 lakhs is for public limited companies/private limited companies/ cooperative society. It is Rs 90 lakhs for partnership/sole proprietorship/others and the corporation in participation with the Punjab State Industrial Development Corporation. Commercial banks and all India financial institutions finances the projects costing upto Rs 10 Crores. The rate of interest varies from 13.50 per cent to 18.50 per cent per annum depending on the size and location of the unit.

            The Corporation also finances under various scheme viz. Special Scheme for Unemployed Person to set up Household Industry; Artisan Village and Cottage Industry Scheme (AVCI); Single Window Scheme for Financing of Fixed Assets and Working Capital; Mahila Udhyam Nidhi Scheme; Transport Industry; Special Scheme for Assistance to Ex-Servicemen; National Equity Fund Scheme; Scheme of Assistance for Marking Entrepreneurs; Equipment Refinance Scheme; Scheme for Loans to Scheduled Castes/Scheduled Tribes Entrepreneurs; Scheme for Technology Development and Modernization, Scheme for Acquisition of ISO 9000 Series (Certification by SSI units), Central Loan Scheme and Quick Finance Scheme.

            The amount of loan sanctioned and disbursed by the Corporation to various industrial units in the Nawashahr District during 1995-96 to 2000-2001 is given below:

                                                                   (Rs in Lakhs)

Year

Amount Sanctioned

Amount Disbursed

1995-96

-

-

1996-97

-

-

1997-98

50.00

-

1998-99

8.00

-

1999-2000

-

3.00

2000-2001

-

-

        (Source: Assistant General Manager, Punjab Financial  Corporation, Chandigarh )

 

(ii) The Punjab Small Industries and Export Corporation Ltd, Chandigarh.- The Punjab Small Industries and Export Corporation came into being in its present form in 1982 after the merger of the Punjab State Small Industries Corporation Ltd. (established in 1963) with the Punjab Export Corporation Ltd. (established in 1962).

The Corporation is acting as a nodal agency for promoting industries in Punjab through the development of infrastructure namely Industrial focal points in various towns and cities. Main emphasis is laid down on the development of focal points for small scale sector, which further helps in increasing direct and indirect employment and speedy industrialisation of the State.

In Nawashahr  focal point was developed by the Corporation during the year 1981-82 on about 50 acres of land and more than 100 plots have already been allotted to different entrepreneurs upto 31 March 2001.

 

(iii) The Punjab State Industrial Development Corporation, Limited, Chandigarh.- The Corporation was incorporated on 31 January 1966 as wholly Government owned undertaking to act as a catalyst for the development of large and medium scale industries in the State of Punjab. The Punjab State Industrial Development Corporation (PSIDC), since inception is performing well and is today reckoned as one of the foremost State Industrial Development Corporations in India. Since then, PSIDC has been acting as the prime mover in the State for promotion of industrial ventures and thus, playing the role of an ‘Institutional Entrepreneur’. It is a professionally managed public sector undertaking of the Government of Punjab with Managing Director looking after day to day affairs under overall administrative control of the Board of Directors headed by the Chairman. The main activities performed by the Corporation are to identify and investigate projects and obtain letters of intent/ registrations for the Government wherever required, undertakes project feasibility studies for various identified projects, provides financial support, both equity and term loan assistance as and when required, plays on important role as an effective facilitator for promoting ventures and acts as an agent of the Industrial development Bank of India (IDBI), Small Industrial Development Bank of India (SIDBI) and State Government for providing assistance and incentives to industry under various schemes.

The Punjab State Industrial Development Corporation has been designated a second State Level Financial Institution by the Industrial Development Bank of India. PSIDC had sanctioned loans of Rs 6,024.63 lakhs and disbursed loans of Rs 3,709.36 lakhs during 1999-2000 whereas in 2000-2001 amounts for sanctioned and disbursed loans were 214.50 lakhs and 1,464.28 lakhs respectively. Under Its Refinance Scheme, PSIDC extends financial assistance under the aegis of IDBI and provides term loan up to Rs 25 million to new industrial projects with capital cost of Rs 100 million. Under Equipment Refinance Scheme, industrial companies with good track record and sound financial position are provided term loans up to Rs 50 million for purchase of equipment for expansion, diversification/modernization activities.

 

(c) Industrial Training Institutes

 

            Industrial training  plays a vital role in  ensuring  a speedy flow of technicians for the ever-growing industrial activities. In order to impart training in improved methods of production. The State Government established training centres and industrial training centres. The Director of Technical Education and Industrial Training, Punjab provides training in various engineering and non-engineering trades to meet the requirements of the skilled manpower for the industries. The Directorate is charged with the responsibility to impart industrial, technical and vocational training to boys and girls through its various polytechnics and industrial training institutes.

            In addition to this Punjab Technical University, Jalandhar also provides technical education through various degree colleges. Besides, special training centres have been started to train the children belonging to the Scheduled Castes and Backward classes in various engineering and non-engineering trades. Passed out trainees are assisted in getting employment in public and private sectors.

 

            During 2000-2001, two Government Industrial Training Institutes, viz; Industrial Training Institute, Nawashahr and Industrial Training Centre, Sundh were functioning in the Nawashahr District.

            The detailed particulars regarding the Government Training Institutes in the Nawashahr District are given below:

 

SerialNo

Name  and location of Institute

Year of establishment

Duration

Name of trade/course

Number of state

1

Industrial Training Institute, Nawashahr

1963

2 years

Electrician

32

 

 

 

2 years

Fitter

32

 

 

 

2  years

Turner

24

 

 

 

2 years

Machinist

24

 

 

 

2 years

Wireman

32

 

 

 

2 years

Motor Vehicle Mechanic

32

 

 

 

1 year

Welder (Gas Electric

16

 

 

 

1 year

Stenography

(Punjabi)

16

 

 

 

1 year

Tractor Mechanic

32

 

 

 

1 year

Carpenter

16

 

 

 

1 year

Embroidary

16

 

 

 

1 year

Cutting and Tailoring

32

2

Industrial Training Centre, Sundh

1995

2 years

Refrigration and Air Conditioning

16

 

 

 

2 years

Electronic

16

 

 

 

2 years

Fitter

16

 

 

 

1 year

Stenography

(Punjabi)

16

 

 

 

1 year

Cutting and Tailoring

16

 (Source: Director, Technical Education and Industrial Training, Punjab, Chandigarh)

 

 

(d) Industrial Estates and Industrial Areas/ Focal Points

 

            The Scheme for the establishment of Industrial Estates was launched in the State with the object of dispersing industries to economically backward area and creating conditions for planned economic growth. The State Government gives assistance for establishing industrial estates, industrial areas and focal points. The industrial estates are used as mechanism to stimulate the growth and efficiency of small industries in the district. No industrial estate was set up in the Nawashahr District till 31 March, 2001.

 

Industrial Focal Points.- In Nawashahr District  one industrial focal point was  developed at Nawashahr on Banga road. In this focal point about 100 plots were earmarked and 5 sheds were developed for the entrepreneurs.

 

Rural Industrial Focal Points.- Rural Industrial Focal Points have been set up under the Rural Industrial Focal Points scheme. Under this scheme a tract of land measuring 10-20 acres is developed into focal points and plot of suitable sizes are allotted to the desirous entrepreneurs. The rural industrial focal points and area falling with a radius of ½ Km from the  periphery of focal points have been approved for industrial area. All the industrial units functioning in the focal points are provided in centives such as investment incentive  (capital subsidy) 30 per cent of fixed capital investment subject to maximum Rs 50 lakhs, sales tax exemption/deferment from sales tax to the units registered as a dealer under Punjab General/Central Sale tax Act for 120 months subject to maximum of 300 per cent of fixed capital investment, interest subsidy at the rate of 5 percent of the total interest on term loan (by financial institutions/Scheduled banks) to small scale units, exemption from payment of  electricity duty for a period of 5 years from the date of release of power connection on the electricity  consumption, etc. For the enhancement of business opportunities agro based industries such as poultry, hatchery, floriculture, fisheries, dairy farming and bee keeping have been granted the status of industry. Punjab Government has established 18 Rural Focal Points in the district for the development of rural industry. Out of these 18, the land of 5 rural focal points has been reserved for the establishment of industries. The detailed description of these is given below:

 

Serial No.

Name of Block

Rural Focal points

Number of Plots

1

Aur

Garcha

15

2

Balachaur

Tonsa

16

3

Banga

Pathlova

41

4

Nawashahr

Jabowal

40

5

Saroya

Sahiba

42

                              Total                                                              154

(Source : General Manager, District Industries Centre, Nawashahr)

            Power is an essential element for industrial and agicultural development of an area. The rate of development of a society can be measured in terms of power distribution and consumption.

 

(e)   Sources of Power

 

In present times, power has become the backbone of industrial growth. The main sources of power are; electricity, woodfuel, oil, alcohal, wind and water. Wood-fuel is too scarce to serve any useful purpose for industries. The position regarding  coal and oil is also far from satisfactory. The regions in which coal is available in abundance are  too off and its transportation entails heavy costs. The oil production in the country being too small can hardly meet the requirements. In Punjab, due to easy availability of power, there is a great scope for power consuming industry in the State. Punjab’s per capital consumption of power is the highest in the country. Thus, the ample supply of electricity has become main source of power in the district. Thermal plants and power houses located at various places in the State are the main suppliers of power. Besides above mentioned sources of power, solar energy and biogas have also become a significant source of power. Punjab Energy Development Agency is doing good work in this field.

The supply of hydroelectric power in the district is satisfactory. The district is served by Protection and Maintenance Division, Mahilpur; Distribution Divisions of Nawashahr, Banga and Garhshankar and Distribution & Construction Division, Nawashahr and Grid Maintenance Division, Nawashahr. Protection and Maintenance Division, Mahilpur is under the administrative control of Superintending Engineer P an M Circle Jalandhar, where as Distribution Division of Nawashahr, Banga and Garhshankar comes under the jurisdiction of Superintending Engineer Distribution Circle, Nawashahr. The main function of the divisions are to maintain the sub-stations. Detail regarding the sub-stations functioning in the district is given hereunder:

 

Division

Sub Division

Grid Sub Station

Mahilpur

Nawashahr

132 K.V Grid Sub Station Nawashahr

-do-

Banga

132 K.V Grid Sub Station Banga

Nawashahr

Rahon

66 K.V Grid Sub Station Rahon

-do-

Aur

66 K.V Grid Sub Station Aur

-do-

Jandla

66K.V Grid Sub Station Jandla

Banga

Behram-1

66 K.V Grid Sub Station Behram

-do-

Mukandpur

66K.V Grid Sub Station Mukandpur

Garhshankar

Saroya

66 K.V Grid Sub Station Saroya

-do-

Balachaur-1

66 K.V Grid Sub Station Karawar

-do-

Balachaur-2

66 K.V Grid Sub Station Balachaur

-do-

Balachaur-2

66 K.V. Grid Sub Station Kathgarh.

                ( Source: Superintending Engineer, P.S.E.B, Nawashahr)

 

The number of industrial consumers and the number of units consumed by the industrial concerns in the district, during 1995-96 to 2000-2001 is given below:

 

Year

Number of Industrial consumers

Number of units consumed

(in KWH)

1995-96

1,367

2,78,47,627

1996-97

1,377

2,52,80,195

1997-98

1,341

2,91,39,258

1998-99

1,319

2,34,12,791

1999-2000

1,300

2,33,48,631

2000-2001

1,338

2,52,63,072

(Source: Superintending Engineer, P.S.E.B, Nawashahr)

 

            Consumption of electricity in the district during the years 1996-97 to 2000-2001 is given below:

 

                                                                                    (Million KWH)

Year

Domestic

Commercial

Industrial

Agricultural

 

Others

Total

1996-97

82.6

11.6

124.1

145.1

1.2

364.6

1997-98

93.6

11.9

163.7

137.6

1.3

408.1

1998-99

102.42

13.43

130.49

169.52

1.56

417.42

1999-2000

110.15

14.64

157.78

184.17

1.79

468.53

2000-2001

116.10

15.97

145.70

131.27

2.48

411.52

                (Statistical Abstracst of Punjab 1997 to 2001)

 

            Besides electricity, some more areas have been chosen for lifting additional renewable energy viz. solar cooker, bio-gas plants, wind mills (wind power) and photovoltaic cells (solar energy). In order to supplement the power generation the State Government has formed Punjab Energy Development Agency (PEDA) in September 1991, as a nodal agency for promotion and development of non-conventional and renewable energy programmes/projects in the State. Main objectives of the PEDA include promotion of non-conventional energy sources/programmes in the State. Main objectives of the PEDA include promotion and development of sources programmes in the State. Promotion and development of projects based on non-conventional energy; implementation of rural non-conventional energy programmes in accordance with Ministry of Non-conventional Energy Sources, Government of India’s guidelines and to set in place the policies/guidelines for facilitating private sector participation in non-conventional energy based projects.

            In order to fulfill the above said objectives the main activities of PEDA includes; mini hydel power generation; solar energy based power generation projects; biomass/agro waste based power generation projects; power generation from urban/industrial waste; promotion and development of co-institutional/ night soil biogas plants, national project on bio-gas development programme; solar thermal extension programme; solar photo voltaic (SPV) water pumping systems; solar photovoltaic lights/ lanterns; solar cooker implementation programme; biomass gasification programme and national programme on improved chulha.

            Besides, the PEDA also installs/sells different renewable energy devices. The renewable energy devices installed/sold by PEDA in Nawashahr District upto 31 March 2001 are given below:

 

 

Serial No

           Item

Number of renewable energy devices sold/installed

1

Solar Lantern

65

2

Solar Domestic Home Lighting System

25

3

Solar Cooker

2

4

Family Size Biogas Plant

45

5

Night soil/Biogas/Institutional Biogas/Community Biogas Plants

1

6

Compact Florescent Lamps

-

7

Improved Chulhas

1,500

(Source: Managing Director, Punjab Energy Development Agency, Chandigarh)

 

 

 

(f) Growth and Development of Industries

 

Under the Punjab Governments Industrial Policy, 1996 the Nawashahr District has been categorized as “B” Grade Growth Area except Balachaur Tahsil, which is a designated kandi Area and falls in “A” Grade Growth Area. Under “A” Category area 30% investment incentive (capital subsidy) of fixed capital investment, subject to maximum of Rs 50 Lakh and under “B” category area 20% investment incentive of fixed capital investment, subject to maximum of Rs 30 lakhs is provided. Modernization and technology upgradation incentive provides for the subsidy on interest beyond 7% on loan advanced by financial institutions for the purchase of machinery for modernization; for installation of pollution control equipment for obtaining ISO standard and for purchase of testing equipment. Incentives are also provided to sick industrial units and agro-based units.

 

(g)   Industries and Manufacturers of the District

 

            The industries in the Nawashahr District may be classified under three broad categories, viz. large and medium scale, small scale and cottage and village industries. A brief description of some of the important industries is given below:

 

Large and Medium Scale Industries

 

            There were 11 large and medium scale industrial units in Nawashahr District during 2000-2001. No single common industry is prevalent in the district. Varied type of industries i.e. from light commercial vehicles to milk products are there in this district. Majority of the industrial units are located in the Balachaur Tahsil of district. The total capital investment in these industries is Rs  65,211.60 lakhs and are providing employment to 5,956 workers. A brief account of these industrial units is given below:

 

Markfed Modern Rice Mill, Nawashahr.- The mill was established   at Nawashahr on Banga road in 1982 under Co-operative sector with total capital  out lay of Rs 1,819.77 lakhs. The raw-material used in the industry is paddy both of Basmati and non-Basmati variety. The main product is rice while bye products are, rise bran, paddy husk, etc.

            During the year 2000-2001, the unit gave employment to 7 persons and produced the goods worth Rs 1,149.91 lakhs. It  exported the goods worth Rs 185.82 lakhs during the same year.

 

Nawashahr Co-Operative Sugar Mills Ltd, Nawashahr.-The Nawashahr Cooperative Sugar Mill, Ltd., was set up on 26 April 1956 under cooperative sector in the industrial backward area of then Jalandhar District, with the capital investment of Rs 2,109.06 lakhs. Local produce of sugarcane grown within the 25 km radius of the mill is used as raw material. The main product of the unit is sugar and the bye-products are molasses and bagasse.

            During 2000-2001, 4,44,020 bags of sugar worth of Rs 6,197.63 lakhs were produced by the mill. Apart from sugar, 1,97,542.25 quintals molasses of value Rs 140.75 lakhs was also produced.  Total number of persons employed in the unit during the same year was 872.

 

Punjab Fibres Ltd, Rail Majra (Balachaur).- This  unit was established at Rail Majra on 22 February 1979 to manufacture yarn with the total capital investment of Rs 2,615.95 lakhs. The raw material used in the industrial unit is cotton, viscose and acrylic. The main products produced by it are cotton, viscose and acrylic blended yarns.

            During 2000-2001, 21,15,114 kgs of yarn was produced. The total number of persons employed during the same period was 787.

 

Swaraj Mazda Limited, Asron (Balachaur).- This automobile manufacturing unit  was established at village Asron in 1985 with the total capital investment of Rs 2,909.29 lakhs. It is established in the collaboration of Mazda of Japan. This is only unit in the entire State which is manufacturing commercial vehicles. The raw material used in the industrial unit is steel, sheet metal, plastic, rubber and other components which are manufactured and supplied by various vendors. The main product is light commercial vehicle. These vehicles are also  supplied to armed forces.

            During 2000-2001, vehicles of the value of Rs 22,144.45 lakhs were produced and during the same period, the vehicles of the value of Rs 942.90 lakhs were exported. The total number of persons employed in the unit during 2000-2001 was 637.

 

Shreyans Industries Ltd, Banah, Nawashahr.- The unit was established on 28 June 1982 at village Banah with the total capital  investment of Rs 4,786.25 lakhs. The raw materials used  by industry are: straw, grass and waste paper,  which is available in the State. The main products of the industry are writing and printing papers, whereas, the only bye product is soda ash.

            This unit produced 16,614 meteric tonnes of paper worth of Rs 4,291.61 lakhs during 2000-2001. During the same period 40 meteric tonnes of paper worth  Rs 14.37 lakhs was exported. The total number of persons employed in this unit during 2000-2001 was 445.

 

D.C.M. Engineering Products, Asron (Balachaur).- This unit was established at village Asron on 1 July 1977 with  total capital outlay of Rs 8,625 lakhs. The raw material used by industry is steel scrap, pig iron, Ferro silicon. Ferro manganese, ferro chrome, copper, tin, ferro moilly, super  seed, silica sand, resins, bentonite, starch, paint, coal and nickel. The main product of the industry is Grey Iron  castings.

            During 2000-2001, the unit produced goods worth Rs 10,452 lakhs and exported the goods valued of Rs 35 lakhs. The total number of persons employed in this unit during 2000-2001 was 1,792.

 

Capsugel India Limited, Fatehpur (Balachaur).- The Capsugel India limited was established at village Fatehpur in 1983 to manufacture empty hard gelatin capsules to be used by pharmaceutical units with the total capital out lay of Rs 896.40 lakhs. The main raw material used by the industry is gelatine and dye chem.

            During 2000-2001, the value of goods produced by the unit was 622.33 lakhs  out of which goods worth Rs 87.25 lakhs were exported. The total number of persons employed in this unit during 2000-2001 was 149.

 

DSM Anti-Infectives India Limited, Taunsa (Balachaur).- This industrial unit was established on 12 June 1985 at village Taunsa with total capital outlay of Rs 19,144.78 lakhs. The raw materials used in this industry are D.Salt, Pen-G and 6 APA. These are acquired from Pune, Baroda, China and Europe. The main products produced in this unit are Intermediates and Bulk drugs.

            During 2000-2001, the drugs worth of Rs 25,566.50 lakhs were produced out of which drugs valued  Rs 6,587.80 lakhs were exported. The total number of persons employed in this unit during 2000-2001 was 476.

 

Max Specialty Products, Rail Majra.- This Industrial unit was established  at village Rail Majra on 12 December 1989. The total  capital outlay of the unit at the end of March 2001 was Rs 6,473.89 lakhs. The main products of the industrial unit are BOPP film, leather finishing foil and metallised & narrow width films. The raw material used to manufacture these products is Polypropylene granules.

During 2000-2001, the unit produced goods worth Rs 4,106.78 Lakhs, and provided employment to 283 persons. The exports during the same year were Rs 601.66 lakhs.

 

Doaba Alco Chemicals, Chandpur Rurki.- This industry was established on 15 December 1996  with the capital investment of Rs 870 lakhs at Chandpur Rurki. The main products the industrial unit are industrial alcohol and rectified spirit. Molasses is the only raw material that is used to manufacture the products.

The production of the unit during 2000-2001 was valued at only Rs 1.80 lakh *with an employment potential of 30 persons. It exported goods worth Rs 184 lakhs during 2000-2001.

 

Ranbaxy Laboratories Limited, Taunsa.- Ranbaxy  group is one of the largest drug manufacturing groups in India and this unit is the part of this group. This  unit was established at village  Taunsa on 20 August 1987. The total capital outlay of the unit at the end March 2001 was Rs 14,961.21 lakhs. The main-products and bye-products produced in the unit are as under:          

           

(a)   Cephalosporin range of Antibiotics

Cephalexin Monohydrate

 

(b)   Synthetic-Organic Bulk Drugs

Ampicillin Trihydrate/ Amoxycillin Trihydrate; Doxycyyline Hel; Terfenadine/Fexofenadyne; Ranitidine Hel/Base

 

(c)    Semi-Synthetic Organic Bulk Drugs

Fluoxetine Hel; Midazolam; Simvastatin; Ofloxacin; Atrovastatin; Pioglitazone; Cefadroxil; Enalapril; Lisinopril; Lorazapam; Candasartan; Isotretionin; Benazepril

 

(d)   Bye-Products

Methyl Acetoacetate; Pivalic Acid;

 

The raw material used to prepare above mentioned products are Methylene Chloride, Picoline, Acetone, Ammonia Soln, N-Chloro-Succinamide, Methanol, Cyclohexane, Rodium Trichloride, Copper salt,

 

* The production in the unit was suspended from April 2000

Chloroform, Hexane, Sulphuric acid, Caustic, Methylene Chloride, 3 Methylamino-1-Phenyl-propane-1-ol (MPHA), Activated carbon, Ethyl Acetate, Potassium Hydroxide Sulpholane, Toluene, Triethyl Phosphond Acetate (TEPA) Lithium Aluminium Hydride (LAH), Activated Maganese Dioxide, Sodium Borohydriede, 4-Flurobenzaldehyde, Pivalic Acid, Di-isopropyl Amine, Lovastatin, Hexane, Cyclohexane, Ethyl Chloroformate, Cyclic Ketone, N-Methyl Piprazine, Silica Gel, Acetic Anhydride, L-Proline, Maleic Acid and many other chemicals.

            The unit produced goods worth Rs 20,247.62 lakhs and provided employment to 478 persons during 2000-2001. It exported goods worth 12,363.50 lakhs during the same year.

 

(ii) Small Scale Industries

 

            The small scale industries which acquired a prominent place in the economy of the State as a whole and covers a wide range of small scale industrial units in the district. The growth of small scale industries in this area recorded a good progress after the creation of this district in 1995 and this sector plays a significant role in industrial production and employment generation. This sector has been gaining constant attention of the State Government under a number of industrial development schemes. The largest number of the industrial units in small scale sector in the district are in servicing and repair sector as 40 per cent of total units, functioning in the district during 2000-2001, belonged to this category. As on 31 March 2001, a total number of 2,505 small scale units were functioning in the district employing 6,889  workers. The important small scale industries which deserve mention are the servicing and repairs (1,048), metal products (261), leather products (291), wood products (331) and food products (260). The different small scale industries existing in the Nawashahr District during 2000-2001 are mentioned below:

 

(1) Food Products.- There were 260 units engaged in the production of food products during 2000-2001 in the Nawashahr District. These units gave employment to 628 persons and produced goods worth Rs 2,040.20 lakhs, the fixed investment of these units was Rs 587.90 lakhs.

 

 (2) Hosiery and Garments.- The district had 36 units engaged in the manufacture of various kinds of hosiery products an garments such as under garments, track suits, T-shirts, woolen sweaters, etc. These units had a total investment of Rs 38.40 lakhs, their out put during 2000-2001 was amounted to Rs 44.70 lakh and provided employment to 136 persons.

 

(3) Beverages.- There were 3 units engaged in the production of beverages.  A sum of Rs 2.20 lakhs was invested in the industry and goods worth Rs 7.50 lakhs were produced during 2000-2001, engaging 12 persons.

 

(4) Wooden Products.- There were 331 units engaged in wooden products including saw mills in Nawashahr District during 2000-2001. The fixed investment of these units was Rs 288.01 lakhs during 2000-2001.The manufacturing of wooden furniture, doors, windows, boxes etc. is done by these units. These units gave employment to 940 persons and produced goods worth Rs 510.90 lakhs. The products of these units have good market within and out side the district.

 

(5) Paper Products.- There were 28 units engaged in the production of paper and paper products. These units gave employment to 200 persons and produced goods worth Rs184.30 lakhs. The fixed investment involved in these units was Rs 107.20 lakhs.

 

(6) Leather Products.-  This industry is scattered all over the district. There were 291 units engaged in the production of leather and leather goods during 2000-2001 in the district. These units produced goods such as leather shoes, leather bags, etc. These units gave employment to 654 persons and produced goods worth Rs 124.50 lakhs during the same year. The fixed investment  involved in these units amounted to Rs 32.40 lakhs.

 

(7) Rubber and Plastic Industry.- There were 19 units engaged in the production of rubber and plastic goods such as, auto motive seals and treade rubber, polythene bags, plastic cases, plastic bobbins. These units gave employment to 116 persons and produced goods worth Rs 55.90 lakhs. The fixed investment of these units was 90.63 lakhs.

 

(8) Chemical Products.- There were 332 units in the district engaged  in chemical products as on 31 March 2001. These units produced goods such as washing soaps, detergents, etc. These units had  fixed investment of  Rs 109.67 lakhs during 2000-2001, produced articals worth Rs 372.50 lakhs by employing 127 persons.

 

(9) Non Metallic Industries.- There were 46 units engaged in the production of non–metal goods such as earthern wares, bricks and tiles, concrete hollow slabs, cement jallies, etc. These units gave employment to 345 persons and produced goods worth Rs 264.70 lakhs. The fixed investment of these units was Rs 162.06 lakhs.

 

(10) Basic Metal Products.- There were 30 units engaged in the production of basic metal goods. These units engaged in C.I  only. These units gave employment to 30 persons and produced goods worth Rs 82.30 lakhs. The fixed investm,ent of these units was Rs 48.55 lakhs.

 

(11) Metal Products.- This industry is scattered all over the district and  had fixed investment of Rs 143.33 lakhs. There were 261 units engaged in the production of metal goods in the district as on 31 March 2001 and produced goods such as  trunks/ petties, buckets, steel doors, almirahs, steel furniture, etc. with capital investment of Rs 93.1 lakhs.  These units gave employment to 821 persons and produced goods worth Rs 285.50 lakhs during 2000-2001.

 

(12) Machinery and Parts.- There were 60 units engaged in the production of machinery and  its parts in the district with capital investment of Rs 93.01 lakhs.  These units produced goods such as, tractor trolley parts of diesel engine, piston pin, air cooler, tubewell  boring, auto axle, nuts and bolts, etc. During 2000-2001 this industry provided employment to 244 person and produced goods worth Rs 116.20 lakhs.

 

(13)  Electrical Machinery and Appliances.- There were 13 units in the district engaged  in the production of electrical machinery and appliances with fixed capital investment of Rs 24.86 lakhs. These units produced goods such as electric generators, transformers, PVC wires, fans, voltage stablizers, rewinding of electrical motors, etc., besides, few units were engaged in assembling and reconditioning of batteries. These units gave employment to 58 persons and produced goods worth Rs 47.50 lakhs.

 

(14)   Transport Equipments and Parts.- There were 9 units engaged in the manufacture of transport equipment and their parts in the district during 2000-2001. These units gave employment to 947 persons and produced goods worth Rs 35.50 lakhs during the same year. The fixed capital investment of these units was Rs 14.62 lakhs in the district during 2000-2001.

 

(15) Miscellaneous Industries.- There were 5 units engaged in the manufacture of other article such as, jewellery, silver sports goods paining, artifitic work,etc. These units gave employment to 19 persons and produced goods worth Rs 9.00 lakhs. The fixed investment of these units was Rs 3.10 lakhs.

 

(16) Cold Storage.- Cold storage facilities for the preservation of food articles /particularly fruits and vegetables were provided by 32 cold storage units in the district. These units had  fixed investment of Rs 141.02 lakhs, during 2000-2001, did a business of Rs 737.00 lakhs and 221 persons got employment in them.

 

(17) Repairing and Servicing.- This category is the most important in the small scale sector as the highest number of units of this category are functioning in the district. There were 1,048 units engaged in repairing and servicing in the district. These units were set up with a fixed capital investment of Rs 390.72 lakhs. These units gave employment to 2,092 persons and provided services worth Rs 587.40 lakhs during 2000-2001.

 

(iii) Cottage and  Village Industries

 

            The area presently falling in Nawashahr District is noted for centuries past for certain types of cottage industries. The earthen ware, cotton, cloth,  artificial silk, utensils of brass and kansi are some of the cottage industries which enjoy reputation, not only within the area but also in the other parts of the State. Most of the cottage industries in this area were traditional in character engaging the person of only certain casts. With the development of technology and modernization, and due to heavy competition from the machine-made goods, the cottage industry suffered a set back. It was only after Independence that the Government took steps giving financial as well as technical assistance, the cottage industry in this district to-day are organized individual or on cooperative basis and creating employment to a number of village artisans. The Punjab Khadi and Village Industries Board in the main agency that helped the cottage industries. Its brief account is given below:

            Punjab Khadi and Village Industries Board (PKVIB) is a semi-government organization which is established under Punjab Khadi and Village Industries Board Act, 1956, to provide loans with liberal terms and conditions approved under Khadi Commission’s Schemes, to the people residing in the rural areas of Punjab for starting their own industries. The main objective is to encourage self employment for the upliftment of rural economy and to improve the economic condition of weaker sections of rural society. The Government is taking deep interest in setting up of village and cottage industries. The industries which are carried on in the homes of the artisans assisted by the members of their families are called cottage industries. These industries provide part time job to the agriculturists in the off-season and these, help in removing unemployment to some extent. The government is laying much stress on the growth and development of cottage and village industries, particularly handloom, weaving, leather and handicrafts in various parts of the State. These industries supply the daily requirements of the rural population. Several places, however, have specialization in the production of certain articles. In Nawashahr District during 2000-2001 there were 6 units in this sector.

            In its bid to provide self employment to the rural masses PKVIB and Khadi Commission have jointly initiated a margin money scheme. This scheme has already been discussed in detail in the beginning of this chapter.

(iv) Jail Industries

 

As there is no jail in the Nawashahr District, so there is no jail industry in the district.

 

(h)  Role of Industrial Co-operatives

 

The development of industrial cooperatives is essential for the growth of industries especially in the cottage and small scale sector. The industrial cooperative societies are voluntary associations of craftsmen and artists organized for the promotion of their economic interests. Stress is therefore laid on the development of small and cottage industries through cooperatives. The main objectives of the industrial cooperative societies are: to give better directions to the industrial activities of the members so that the maximum out put might be obtained with minimum of efforts; to give technical advice and assistance; to provide training facilities to their members; to buy raw material and supply it to their members; to dispose of the finished goods in more profitable manner as well as to obtain grants, subsidies and other facilities from finance agencies and Government. The industrial cooperatives ensure that the decentralization of industry is accompanied by the economic improvement of their members who generally belong to weaker sections of the society. The members of these societies are mainly the weavers, blacksmiths, carpenters, tanners, shoe makers, etc. They are mostly illiterate and require subsistence employment. The state government has attached great importance to the economic uplift of the artisans.

The weaver’s societies have two-tier structure in Punjab State. The Punjab State Cooperative Handloom Weavers Apex Cooperatives Society, Limited ( WEAVCO) functions at the State level and Primary Handloom Societies are functioning at the base level.

WEAVCO provides facilities like supply of raw material and marketing of finished goods. It also provides technical know-how to the primary weavers societies. Broadly the activities taken up by this institution include marketing infrastructure  for sale of handloom products produced by the primary handloom societies, providing  technical guidance and new designs  to the primary handloom societies, providing raw material  on prevailing market rates and providing processing facilities to the primary handloom  societies. WEAVCO has also established five yarn banks through which it is supplying excise free yarn to primary co-operative weavers societies of the State and products furnished by these societies from the yarn are purchased/sold by the WEAVCO showrooms. It also supplies blankets to defence as well as other paramilitary forces through a nodal agency approved by the Ministry of Textiles, Government of India. For providing textile designs it has installed a computer in its head office.

The Punjab State Industrial Co-operative Federation is the apex society of non-weavers co-operative primary industrial societies. Its main objectives are to encourage development of village small-scale co-operative cottage industries.

The particulars regarding the Industrial Co-operative Societies falling in the Nawashahr District during the years 1995-96 to 2000-2001 is given below:

 

Year

Number of societies

Membership

Production

(Rs in lakhs)

Sale

(Rs in lakhs)

Subsidy

(Rs in lakhs)

1995-96

67

773

21.10

19.71

-

1996-97

68

789

21.45

22.06

-

1997-98

92

833

23.90

24.10

-

1998-99

80

927

25.19

24.81

-

1999-2000

80

927

27.02

28.81

-

2000-2001

81

938

28.05

29.26

-

        (Source: Deputy Registrar, Cooperative Societies, Nawashahr)

 

 

 

(i) Labour and Employer’s Organisations

 

            The main objective of the labour organizations is to secure better conditions of work, payment of real wages and welfare of labour as a whole, while the employers organizations aim at protecting what they regard as the legitimate interest of management through mutual settlement.

 

            Labour Organizations.- Labour organization are formed for  the protection of workers from the exploitation by the employer and capitalist and to look after the interest of the working class. Earlier it was uncommon to think that a worker used to work for specified working hours. No welfare measures were taken. Exploitation of the worker was the accepted norm. Any talk of any reform in wages or working conditions of the workers was despised by the owners. In the development of trade unionism in the country, the existence of the international Labour Organization has played an important part.

            It afforded opportunities to Indian labour to  associate themselves with  such movements in other countries. In order to guide to the trade union movement on right lines and regularize its activities, the Trade Union Act of 1926 was passed. In, 1937, the registered trade unions were given special representation in provincial legislatures. During World War II (1939-45), the movement made a great headway. The number of unions and their membership increased considerably.

            The primary function of a trade union is to promote and protect the interest of its members. Welfare activities like organizing mutual benefit societies, co-opertives, employment assistance, libraries, games and cultural programmes have been recognized as the normal activities of a trade union in the Trade Unions Act, 1926. Since the Independence of the country in 1947, there has been a considerable growth of trade union movement and as a result there has been constant increase in the number of registered trade unions. The particulars of trade unions, registered under the Indian Trade Unions Act, 1926, functioning in the Nawashahr District as on 31 March 2001 are given in the following table:-

 

 

Serial No

Name of Trade Unions

Year/date of Registration

1

2

3

1

Punjab P.W.D. Mulazam Union, Nawashahr

27 March 1997

2

Mohil Gaila Employees Union,Nawashahlr

3 April 2000

3

Municipal Employees Union, Banga

22 July 1967

4

Mujicipal Subordinate Service Union, Nawashahr

11 December 1963

1

2

3

5

Banga Block Co-op societies Employees Union, Banga

27 November 1980

6

Poor Workers Union, Doaba Co-operative Sugar Mills, Nawashahr

14 May 1980

7

Doaba Co-op Sugar Mills Mazoor Union, Nawashahr

2 April 1969

8

The Doab Co-op Sugar Mills Labour Union, Nawashahr

1 March 1989

9

Janta Workers Union, Nawashahr

20 July 1978

10

The Khand Mill Mazdoor Sangh, Nawashahr

9 February 1979

11

Lal Jhanda Punjab Fibre Mazdoor Union, Rail Majra

1988

12

Punjab Fibre Kirti Union, Rail Majra

23 November 1987

13

United Paper Mazdoor Union, Asron, Nawashahr

24 March 1986

14

United Pulp and Paper Mills workers Union, Asron, Nawashahr

11 June 1983

15

Mohan Paper Mazdoor Union, Rail Majra, Nawashahr

11 May 1989

16

Ranbaxy Workers Union Taunsa, Balachaur

6 September 1988

17

Ravi Dass Bhattha Mazdoor Union, Balachaur

19 January 1981

18

Lal Jhanda Montari Workers Union, Taunsa

22 March 2000

19

Harijan Bhatta Mazdoor Union, Solan, Nawashahr

2 April 1979

20

P.U.F. Mazdoor Union, Rail Majra, Nawashahr

2 December 1983

21

Asron D.C.M. Union AITUC, Asron, Nawashahr

8 August 1989

22

D.C.M. Karamchari Sangh, Asroan, Nawashahr

17 November 1982

23

Asron Engineering Workers Union, Asron, Nawashahr

23 January 1984

24

Swaraj Mazda workers Union, Asron, Nawashahr

16 July 1987

25

Punjab United Forging Working Union, Rail Majra, Nawashahr

17 December 1979

26

Surya Mazdoor Union, Rail Majra, Nawashahr

18 October 1988

27

Trade Employees Union, Nawashahr

14 November 1975

28

Munim Union, Nawashahr

21 February 1962

                (Source: Labour Commissioner, Punjab, Chandigarh)

 

(j) Welfare of Industrial Labour

           

            Welfare comprises all matters affecting the health, safety, comfort and general welfare of the workman and includes provisions for education, recreation, thrift schemes, convalescent homes, etc. It falls into two categories viz. activities inside the factory or intra-mural welfare work and activities outside the factory or extra-mural welfare work. The various welfare measures include education, medical aid, maternity benefits, recreation, housing, co-operative societies, grain and cloth shops, provision of canteens, etc.

            The Welfare of the industrial labour in mainly of two types,  viz. statutory and voluntary. In the first type fall those concessions, which are to be provided under law and secondly which are provided voluntary by the management on humanitarian grounds or other allied and varied reasons. The Constitution itself provides that the State shall endeavor to secure, by suitable legislation or economic organization or in any other way to all workers, agricultural, industrial and otherwise, a living wage condition of work ensuring decent standards of living and fall enjoyment of leisure and social and cultural opportunities.

 

 

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