CHAPTER V

 

INDUSTRIES

 

(a)   Old- time Industries and Industrial Development

 

Fatehgarh Sahib District has been created as a new district on 13 April 1992 by taking out areas from Patiala, Ludhiana and Rupnagar Districts. Prior to formation of PEPSU in 1948, the most of the present area of Fatehgarh Sahib District was part of erstwhile Princely States of Patiala and Nabha. Manufacturing industry was conspicuous by its absence upto the beginning of the twentieth century in Patiala and Nabha ex-State areas. Among cottage industry mention, may be made of weaving of cotton cloth (susi, durries) gota and zari, azarbands (trouser strings) daryai(silk cloth) raw sugar (gur and shakkar) and khand country carts, desi jutties, blacksmthy gold and silver ornaments, agriculture implements and local furniture, pottery, etc. Amloh nizamat was very famous for ghabrun and susi. All these manufacturers were to met the simple requirement of local areas.

            In the beginning of the twentieth century (in 1902), Maharaja Hira Singh of Nabha State got started some industrial units at Gobindgarh. It was declared a free trade zone for steel by Maharaja Partap Singh in 1928. The first steel rolling mill was established at Gobindgarh in 1940. The Maharaja of Nabha allotted free land for industrial plots at Gobindgarh for the installation of steel re-rolling mills. He exempted them from octroi duty and helped them in getting quotas of iron and steel. These concessions led to the establishment of a large number of re-rolling mills at Gobindgarh.

            Gobindgarh is the most flourishing industrial town in Fatehgarh Sahib district and is known as ‘Steel Town’ of India. It is said that this town has flourished as ‘Steel Town  because of the blessings of Guru Harrgobind, ( the sixth Guru of Sikhs) who stayed here for sometime. The town itself derives its name from Guru Hargobind.

            After Independence, the supply of electricity from the Bhakra Nangal Project accelerated the pace of industrialisation both in expense and diversity. This area had registered progress in the industrial field during sixties of the twentieth century, as over one hundred iron and steel foundries and re-rolling mills mushroomed in the industrial town of Gobindgarh. It is due to vast industrial activity that Gobindgarh town has almost touched Khanna town( in Ludhiana District) and both towns look as one town. Since, now expansion towards Khanna town is not possible, a number of steel re-rolling mills are being established on Gobindgarh-Amloh road. In 1981, there were about 205 steel re-rolling mills in Gobindgarh which increased to 250 in 2001. These mills are exporting re-rolled steel to various parts of the country and also to some foreign countries.

 

                             (b) State Aid to Industries

 

            Keeping in view the role of industrial development in the economic prosperity of the State, after Independence the Government liberalized the provisions of the Punjab State Aid to Industries Act,1935. Under this Act, loans were advanced on liberal conditions to the entrepreneurs for construction of building, purchase of machinery and equipment, working capital, etc. The new industrial units set up in the State and the entrepreneurs who want to expand or modernize the  existing ones  were 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 during 1981-82 and now the industrial units set up in the State are given incentives on land, building, taxation, etc. under various industrial policies applicable from time to time.           

With a view to promote the growth of industry in the State, the Government of Punjab notified “Industrial Policy 1996” which provides for the growth of various incentives for new industrial units that comes into production or undertake expansion on or after 1 April 1996. Under the Industrial Policy, 1996, the Punjab Government have notified the Punjab Industrial Incentive Code to implement the schemes of incentives for the development of industry in the State. According to the Industrial Incentive Code the Fatehgarh Sahib District has been placed under B Grade Growth Area Category. Under B Category area 20 percent investment incentive (capital subsidy) of fixed capital investment, subject to maximum of Rs 30 lakhs is provided to the industrial units set up in the district. Besides, there are some special incentives which are provided to particular industries. A brief description of these incentives to these industries are as under:

(a) The agro-based industrial units, export oriented units (except medium and large scale units), village industries and fly ash based units established in the Fatehgarh Sahib district are provided investment incentive at the rate of 30 per cent of fixed capital investment subject to maximum of Rs 50 lakhs. Besides, the industrial units established under these categories are provided sales tax exemption or deferment upto 10 years, subject to a maximum of 300 percent of fixed capital investment. The agro-based industrial units are also provided subsidy, to purchase and install a new generator set, at the rate of 50 per cent of the captive cost of generator set subject to maximum of Rs 15 lakhs.

(b) The hotels, restaurants and amusement/adventure parks established in the district under the licence/registration from Tourism Department of Central or State Government are provided investment incentive at the rate of 25 percent of fixed capital investment subject to the maximum of Rs 25 lakhs. The amusement parks established in the district are also given rebate in entertainment duty as it is charged at the rate of 75 per cent instead of 125 per cent.

(c) With a view to promote the growth of electronic industry, the new electronic units established in the district after 24 June 1991 are provided exemption from sales/purchase tax for a period of ten years from the date of production and the units which came to production after 11 December 1986 but before 24 June 1991 are charged  sales/purchase tax at the rate of 1 per cent for a period 12 years after that for the next three years the rate of sale/purchase tax  will be 3.5 per cent. The electronic industrial units which under the expansion/modernization/diversification by investing more than 25 per cent of the investment and thus increasing the installed capacity/production by more than 25 per cent are allowed to avail sales/purchase tax exemption at par with new units.

 

Prime Minister Rojgar Yojna.-  The Government of India has started a Prime Minister Rojgar Yojna to provide self employment to educated unemployed youth in the country in 1993. Under this scheme, bank loans are provided to educated rural and urban youths to start their own works. In the Fatehgarh Sahib District, any educated unemployed youth, who fulfil the conditions of this scheme can get loan/financial aid from banks to establish his own work.

 

Margin Money Scheme.-  Under this Scheme, Khadi and Village Industry Commission, through its financial aids, are providing the chances of self employment to unemployed youths in the district. This scheme is only applicable for rural industries which are established in all rural industrial focal points. Any unemployed youth can get financial assistance from banks to establish his own work.

.           Besides, nationalised/commercial banks and other financial institutions provide loans to these units keeping in view the national industrial policies. The subsidies are given by both Central and State Government through the Department of industries.

 

           National Bank for Agriculture and Rural Development (NABARD).- National Bank for Agriculture and Rural Development has been 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 matter connected therewith or incidental thereto. The total amount disbursed by NABARD under different developmental schemes in Fatehgarh Sahib District during 2000-2001 was Rs 2,322.33 lakhs.

            Besides the above, 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, marking and all types of services to the manufactures. Quality control helps to secure uniformity in specification also facilitates the inter-changeability in the products. Moreover, production cost can be reduced through continuous processing. There is no Quality Marking Centre functioning in the Fatehgarh Sahib District.

 

(2) Rural Industrialisation

 

          There are Rural Industrial Development Centres and Common Facility Workshops running in the State. The workshops besides rendering technical assistance, undertake the manufacture of all types of common agricultural implements, like gur making equipment, poultry feeders, grain storage bins, plough, etc.

 

(3) Other Organizations for the Development of Industries

 

            Besides the above mentioned measures, a number of organisation 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   for the purpose of granting medium and long-term loans to the industrial concerns located in the State of Punjab. It was reconstituted under the Punjab Re-organisation Act, 1966 on 1 April 1967, and grants loans under  the Act  of 1951.

It generally grants term loans for creation/acquisition of fixed assets like land, building, plant and machinery. It also 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 hotels, nursing homes/small hospitals, development of industrial estates, purchase of transport vehicles, etc. The corporation grants loans for setting up new industrial concerns, expansion and modernisation of existing concerns and rehabilitation of sick industrial concerns, which have been assisted by it. However, it also grants composite loan for meeting working capital requirements to new tiny and small units.

The public limited companies, private limited companies, cooperative societies, partnership firms, sole-proprietorship firms or HUF concerns are eligible for financial assistance from the corporation if these are engaged in or proposing to be engaged in: manufacture of goods; preservation of goods; mining or development of mines; hotel industry; transport of passengers or goods by road or by water or by rope way or by lift; generation or distribution of power; the setting up or development of an industrial area or industrial estate; the maintenance, repair, testing or servicing of machinery of any description or vehicles or vessels or motor boats or trail ones or tractors; assembling, repairing or packing any article with the aid of machinery or power; providing special or technical knowledge or other services for the promotion of industrial growth; providing weigh bridge facilities; and the research and development of any process or product in relation to any of the matter aforesaid. The amount of loan sanctioned and disbursed by the corporation to various industrial units in Fatehgarh Sahib District during 1992-93, 1996-97 to 2000-2001 is given below: 

(Rs in Lakhs)

Year

Sanction

Disbursements

 

1992-93

358.00

11.00

1996-97

453.00

122.00

1997-98

227.00

0.00

1998-99

659.00

326.00

1999-2000

376.00

275.00

2000-2001

387.00

240.00

 

                   (Source : Punjab Financial Corporation, Chandigarh)                     

(ii) The Punjab Small Industries and Export Corporation, Ltd, Chandigarh.- The Punjab Small Industries and Export Corporation Ltd. came into being 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 Punjab Small Industries and Export Corporation is the nodal agency for promoting industries in Punjab through the development of industrial infrastructure namely industrial focal points in various important cities and towns. Main emphasis is laid down on the development of focal points for small-scale sector, which further help in increasing employment and balanced growth.

The corporation has established a industrial focal point on  209 acre of land at Mandi Gobindgarh in Fatehgarh Sahib District. In this focal point, 414 industrial plots of different sizes viz. 250, 500, 1000, 2500, 5000 and 7500 sq. metre have been allotted. Out of these, 29 units have started its work in this focal point.

 

(iii) The Punjab State Industrial Development Corporation (PSIDC), limited, Chandigarh.-The corporation was incorporated in 1966, as an undertaking of the State Government, to act as a catalyst  for the development of large and medium scale industries in the State of Punjab. 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’. The main activities performed by the corporation are; to identify and investigate projects and obtains letters of intent/ registrations from the Government wherever required; undertakes project feasibility studies for various identified projects; provides financial support, both enquiry and term loan assistance, as and when required; plays an 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, as a second state level Financial Institution by the Industrial Development Bank of India, 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 Rs100 million. Under Equipment Refinance Scheme, industrial companies with good track record and sound financial position are provided term loan up to Rs 50 million for purchase of equipment for expansion, diversification/ modernization activities.

 

 

(c) Industrial Training Institutes

 

 In a developing economy industrial training plays an important role for the development of industries because it enable the residents of that particular area for a quick supply of skilled labour. The Directorate, Technical Education Punjab is charged with the responsibility of imparting training; industrial, technical and vocational 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.

            The industrial training  programme in the Punjab received an impetus under the Government of India’s Programme. There are only one Government Industrial Training Institute in the district at Bassi Pathana. The   particulars   of  the  Government    Industrial  Training   Institutes functioning in the district during 2000-2001 are given below:

Serial No

Name and location of Institute

Year of establishment

Names of Trade Course

Number of seats

Number of students

1

Industrial Training Institute, Bassi Pathana

1963

Electronics

Electrician

Fitter

Turner

32

32

32

24

31

30

30

24

 

 

 

Machinist

24

24

 

 

 

Motor Mechanic

32

32

 

 

 

M. Instrument Mechanic

16

16

 

 

 

Radio/T.V

16

15

 

 

 

Wireman

32

-

 

 

 

Welder

12

-

 

 

 

Steno English

32

32

 

 

 

Steno Punjabi

32

16

 

 

 

Carpenter

16

7

 

 

 

Mechanic Tractor

32

32

 

 

 

Computer Operator Processing Assessment

40

40

 

 

 

Cutting and Stitching

32

12

 

 

 

Embroidery

16

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.

 

Industrial Focal Points.- In Fatehgarh Sahib District an Industrial Focal Point of 209 acres land has been developed at Mandi Gobindgarh. In this focal point 144 industrial plots of different size such as 250, 500, 1000, 2500, 5000 and 7500 sq. yards have been allotted and 29 units have started work on these focal points upto 31 March 2001.

 

Rural Industrial Focal Points.-  Punjab Government have set up 18 rural industrial focal points under the scheme of Rural Industrial Focal Points. Out of these, 9 are new and 9 are old focal points. There is no space for industrial plots in 3 rural focal points, but remaining 15 rural focal points have place for industry. So far, 72 plots have been allotted in this district and 6 units have started working. All the industrial units functioning in the focal points are provided incentives such as investment incentive (capital subsidy) 20 per cent of fixed capital investment subject to maximum Rs 30 lakh, sales tax exemption/deferment from sales tax to these units registered as dealer under Punjab General/Central Sales Tax Act for 120 months subject to maximum of 300 per cent of fixed capital investment, interest subsidy at the rate of 5 per cent of the total interest on term loan (by financial institutions/scheduled banks ) to small scale units, exemptions 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.

 

(e) Sources of Power

 

             Power has become synonymous with progress and there is hardly any need to elaborate on the power of  electric power in shaping the economy of the individual, the industry and the country as a whole. Power is one of the most important constituent of the infrastructure for any industrial development in the modern sense. Attempts were made to supply electricity to the areas now forming Fatehgarh Sahib District in mid-thirties of the last century.

Main sources of power are; electricity, wood-fuel, oil, Alcohol, 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 concentrated are too far off and its transportation entails heavy costs. The oil production in the country being too small can hardly meet the requirement. Thus, the ample supply of electricity has become main sources of power in the district. Thermal plants and power houses located at various places in the state are main suppliers of power. Besides above mentioned sources of power, solar energy and biogas have also become a significant source of power. District Rural Development Agency and Punjab Energy Development Agency are doing a good work in this field.

            The supply of electric power in the district is satisfactory. The district is served by one Operation Division at Fatehgarh Sahib. The district is serviced by a number of Grid substations functioning at Gobindgarh. (220 KV Gobindgarh-1 and 220 KV Gobindgarh-2), 132 KV. Substation Sihora and 66 KV substations at Fatehgarh Sahib, Badali Ala Singh, Bassi Pathana, Sirhind, Chaurwala, 3 at Mandi Gobindgarh, (Grain Market, G.T. Road and Amloh Road), Amloh, Bhai Rupa, Kotla Shamashpur, Badinpur, Bhari, Tandha Bandha and Talwara (Gobindgarh).

The consumption of electricity in the district during the years 1992-93, 1996-97 to 2000-2001 is given hereunder:

                                                                                         (Million K.W.H)

Year

Domestic

Commercial

Industrial

Agricultural

Other

Total

Percent-age of  consumpt-ion in Punjab

1992-93

37.4

7.6

283.7

180.6

1.4

510.7

3.68

 

1996-97

73.1

11.4

675.4

166.8

2.4

929.1

5.6

1997-98

82.9

12.7

717.0

187.4

2.4

1002.4

5.7

1998-99

91.87

14.54

767.91

231.50

2.76

1108.58

5.8

1999-2000

99.88

15.26

898.37

252.66

3.02

1269.19

6.06

2000-2001

105.31

16.85

998.61

167.44

3.79

1292.00

6.73

(Statistical Abstracts of Punjab 1993, 1996 to 2001)

Punjab Energy Development Agency

 

             Punjab Energy Development Agency (PEDA) is a nodal Agency for the development and propagation of renewable energy in the State of Punjab. It is a Punjab Government’s undertaking and helds the responsibility to implement Government policies and programmes on renewable energy sources. It came into existence in 1991 and since then it has been vigorously trying to take the concept of renewable energy to masses. To achieve this objective it has been organizing exhibitions and live demonstration on new and renewable energy devices, pamphlets/leaflets on various renewable energy programmes and devices were distributed among masses. Various new and renewable energy devices were sold to the people on subsidized rates with the purpose of making these devices popular among masses. A brief description of these is given as under :

           

1 Solar Cooker.- It is a renewable energy device to cook meals with solar energy. It consists of a small box made of metal or fiberglass, having four cooking containers and covered with toughened glass to prevent the escape of solar radiation reflected in the box by mirror fitted therewith. This helps in saving cooking fuel and gives healthy and vitamin D rich cooked food.

2 Biogas Plant.-  In common parlance known as gobar gas plant, this helps us to generate clean cooking fuel in the form of cooking gas from dung fuel and other bio waste. During the process we not only prevent the wastage of dung and agriculture waste but  also generate better and rich manure. Bio gas plants of various sizes suitable to the needs of individual families, local community and institutions are constructed.

3 Compact Fluorescent Light (C.F.L).- C.F.L. is energy efficient light device. The use of C.F.L in place of condescend bulb saves up to 80 per cent on electricity consumption and gives soft and daylight. However, this device is relatively new to the people. To popularize the use of C.F.L. among masses, Punjab Energy Development Agency is supplying C.F.L at subsidized rates.

4  Solar Battery Charger.- This is also a solar energy device and it is used to charge battery. Punjab Energy Development supplies this device also at subsidized rates to introduce it and make it popular.

            5  SPV (Solar Photovoltaic).- Lights, Solar Lanterns, Solar Stills, Solar Home Light Systems are also supplied by Punjab Energy Development Agency at subsidized rates with the aim of creating awareness among masses regarding use of solar energy for various jobs. In these systems solar photovoltaic cells are used to convert solar radiation into electricity. This electricity is stored in batteries to light C.F.L.s during night time.

6 Smokeless Improved Chulhas.- Chulha is an integral part of every kitchen in the rural areas of the State. The Smokeless Improved Chulha Programme has been launched with a motive to save cooking fuel and to improve kitchen environment by making it smokeless and soot free and thus making the life of housewives comfortable by reducing kitchen drudgery. The renewable energy devices installed/sold by PEDA in Fatehgarh Sahib District upto 31 March 2001 are given below:

Serial No

    Item

Number of renewable Energy Devices Sold/installed

1

Solar Cooker

    584

2

Pressure Cooker

     419

3

Solar Still

       18

4

Battery Charger

         3

5

S.P.V. Lights

        49

6

Solar Lantern

      462

7

Domestic Home Lighting System

      128

8

Biogas Plant

      829

9

Smokeless Chula

13,574

10

Solar Water Pump

          2

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

 

(f) Growth and Development of Industries

 

      Under Punjab Government’s Incentive Policy 1996 the district has been categorized as ‘B’ Grade Growth Area, under which 20 per cent capital subsidy is provided. The district has made much industrial progress.

 

(g)  Industries and Manufactures of the District

 

            

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

 

(i) Large and Medium Scale Industries

 

At the time of creation of the district there were 17 large/medium units, in the area presently falling in Fatehgarh Sahib District. A number of medium scale units functioning in this group i.e. Large and Medium Scale Industries in Fatehgarh Sahib District are steel industries (mostly re-rolling mills) which are heavily localized at Mandi Gobindgarh an industrial town of the district. There were16 industrial units in large and medium scale category in the district, out of which 13 units were working during the year 2000-2001. A brief description of these units is given below :

 

(1) Aar Kay Industry, G.T. Road, Mandi Gobindgarh.- This industrial unit was established in February 1996. The total capital outlay of the unit at the end of 31 March 2001 was 378.17 lakhs. The main products produced by unit are structural steels (joists/channels/Angle). The bye- product of the unit is end cutting (melting scrap) of the main products. The raw material of this industry is steel ingots which is available in local market. During 2000-2001, the total goods produced in this industry was 18997.231 (M.T.) of main products and 1017.100 (M.T.) of bye products. The total value of goods produced was Rs 2,747.77 (lakhs) of main products and Rs 91.75 (lakhs) of Bye products. During 2000-2001, the unit gave employment to 75 persons.

 

(2) Inox Air Products Limited, G.T.Road, Mandi Gobindgarh.- This is also an important large-scale industry of the district. This unit was established in March 1981 at Mandi Gobindgarh  with the capital investment of Rs 773.33 lakhs . The main products of the unit are liquid oxygen, liquid nitrogen, oxygen gas, nitrogen gas, dissolved acetylene gas and LPG cylinders. The raw material used by this unit is calcium carbide and HR sheet of LPG Grade, which is imported from foreign countries and from other states of the country. During 2000-2001, the unit gave employment to 108 persons and produced goods worth Rs 2,078 lakhs

 

(3) Datt Steels Limited, Mandi Gobindgarh.- This unit was established at Mandi Gobindgarh in July 1997, with the fixed capital investment of Rs 942.06 lakhs. The main products of this industrial unit are auto tyre, cycle tyre bead wire, spring steel wire and cycle spoke wire. The raw material used by this unit is wire rod which is supplied by Tata Iron and Steel Company, Rashtriya Ispat Nigam Ltd., and Usha Martin Industries from their Ludhiana and Chandigarh depots.

              During 2000-2001, the unit produced goods worth Rs 1,311.49 lakhs and exported goods worth Rs 77.61 lakhs. In this period, unit gave employment to 156 persons.

 

(4) M.R. Alloys Pvt. Limited Mandi Gobindgarh.- M.R. Alloys Pvt. Limited was established on 12 June 1990 and  started commercial production in   January 1993. The total capital investment of the unit was Rs 161.30 lakhs. Its main product is non-alloy steel ingots and bye products are runners and risers. The raw material used by this units are iron scrap, sponge iron and ferro alloys which are imported from other countries and as well as available in the country.

During 2000-2001, the unit produced goods worth Rs 1,220 lakhs and gave employment to 75 persons.

 

(5) Kandhari Beverages Limited, Fatehgarh Sahib.-It was established at Fatehgarh Sahib (village Nabipur) on 29 March 2001, with the capital investment Rs 2,995.98 lakhs. The main product of the unit is  aerated water (soda) with or without sugar and bye product is ready syrup. The raw material used by the unit are; preforms, corrugated boxes, Bopp labels, crowns and closures, Co2 gas, sugar, essence which are imported from other states of the country and also from foreign countries.

During 2000-2001, the unit gave employment to 200 persons                             and produced goods worth Rs 0.54 lakhs.

 

(6) Nahar Sugar and Allied Industries Limited, Amloh .-This unit was set up under cooperative sector at  Amloh in 1993, for the production of crystal sugar and molasses with the  capital investment of Rs 5,768.01 lakhs . Later on it was handed over to the Nahar group of Industries and its name was changed to Nahar Sugar and Allied Industries Limited. Local produce of white sugarcane is used as its raw material. Along with the  main product of crystal sugar, it produces molasses and bagasse as bye-products.

During 2000-2001, this unit gave employment to 576 persons and produced goods worth Rs 5,139.22 lakh.

 

(7) Surendra Steel Rolling Mills, Mandi Gobindgarh.-Surendra    Steel Rolling Mills was established at Mandi Gobindgarh in August 1966. The total capital investment of the unit was Rs 118.17 lakhs. Its main and bye products are CTD Bars, Angles, channels, M.S. ingots, M.S. scrap, runners and risers etc. The raw material used by this units are M.S. scrap, sponge iron, ingots and billets/blocks/slabs. These material are available in local market as well imported from other country.          

During, 2000-2001 this unit gave employment to 204 persons and produced goods worth Rs 3,043.00 lakhs.

 

(8) Lakshmi Overseas Industries Ltd., Khamano.-This unit was established at  in September 1992, with the capital investment of Rs 7,116.36 lakhs. The main products of the unit are rice, rice bran oil, rice bran, paddy husk, cattle feed. The main raw material used by the industry is paddy, which is locally available.

During 2000-2001, this unit gave employment to 800 persons and produced goods worth Rs 10,118.13 lakhs.           

 

(9) Modern Steels Limited, Mandi Gobindgarh.- This is an important large-scale industry of the district. This unit was established at Mandi Gobindarh in 1974. The total capital investment in the unit was Rs 2,557 lakhs at the end of March 2001. The main products of this unit are steel billets, steel ingots, steel flat bars, steel rounds. The raw material of this industry is scrap iron which is available in the local market.        

During 2000-2001 the unit produced goods worth Rs 6,235 lakhs and provided  employment to 325 persons.

 

(10)  Northern India Steel Rolling Mills Mandi Gobindgarh.- Northern India Steel Rolling Mills was established in 1990 with capital outlay of Rs.6,553 lakhs. The main product of this unit is steel ingots. During 2000-2001, the unit produced goods worth Rs 17,884 lakhs and gave employment to 88 persons.

 

(11) Deepak Gases Pvt. Ltd., Mandi Gobindgarh.- This unit was established in 1995. The  total capital investment was 174.43 lakhs at the end of March 2001. The main product of this unit is industrial oxygen gas. The raw material of this unit is natural air.

During 2000-2001, this unit produced goods worth Rs 67.45 lakhs and  in this period gave employment to 18 persons.

 

(12) A.R. Alloys, Mandi Gobindgarh.- This unit was established at Mandi Gobindgarh in 1996. The capital investment of this unit as on 31 March 2002 was Rs 115.07 lakhs. The main products of the unit were steels ingot and runner riser. The unit gave employment to 51 persons and produced goods worth Rs 811.62 lakhs during 2001-2002.

 

(13) Sunrise Vanaspati and Allied Industry Pvt. Ltd. Village Shahpur (Tahsil Amloh).- It was established at village Shahpur in1997. The capital investment in this unit as on 31 March 2002 was to the tune of Rs 124 lakhs. The main products of the unit are Vanaspati Ghee and Refined Oil. During 2001-2002 the unit gave employment to 25 persons and produced goods worth Rs 633.75 lakhs.

   

(ii) Small Scale Industries

 

The small scale industries which occupy an important place in the economy of the State as a whole cover a wide range of units in the district. The small scale sector plays a significant role in industrial production and employment generation. The growth of small scale industries in the district recorded good progress  during the last few years. The industries in small scale sector in the district are mostly metal and basic metal products as 26.3 percent of the total units functioning in the district belongs to this category. This sector has been gaining constant attention of the State Government under a number of industrial developmental schemes. Under the National Industrial Policy 1996 Fatehgarh Sahib has been categorized as “ B Category”: industrial sector, under which industrial units under non-negative list are provided 20 per cent subsidy. At the time of creation of the district there were 3,514 small scale industries units. The number of small scale industrial units in the Fatehgarh Sahib district increased to 3,918 by 31 March 2001. These units gave employment to 20,770 persons and produced goods worth Rs 1,29,553 lakhs during 2000-2001.  The fixed investment of these units were Rs 19,993 lakhs in the area of present Fatehgarh Sahib District. The most important small scale industries which deserve mention are basic Metal Products (780), servicing and repair (737) followed by Machinery and parts (281), Metal Products (251), Food Products (211), Wood Industry (160) and Leather Products(157).

The details regarding the various small scale industries functioning in the Fatehgarh Sahib District during 2000-2001 are given below:

 

(1) Food Products.- There were 211 units engaged in the food products during 2000-2001 in the district. These units produced goods like ghee, ice cream, gram dal, bread, biscuits, cattle feed etc. These units gave employment to 1,069 persons and produced goods worth Rs 10,891.67 lakhs. The fixed investment of these units was Rs 573.38 lakhs.

 

(2) Cotton Textile.- There was one unit in the district engaged in cotton textile during the year 2000-2001 with capital investment of Rs 48.31 lakhs. During this year the unit provided employment to 30 persons and produced goods worth Rs 300 lakhs.

 

(3) Hosiery.- There were 45 units engaged in the district in the manufacture of various kinds of hosiery products and garments. The fixed capital investment in these units was 6.04 lakhs. The units produced hosiery goods like socks, woollen sweaters, mufflers, caps, under garments etc. These units gave employment to 67 persons and produced goods worth Rs 19.60 lakhs during the above referred year.

 

(4) Wood Industry.- During 2000-2001, there were 160 units comprising saw mills, manufacturing of wooden frames for doors, windows, wooden furniture, beds, packing cases, etc., with fixed invest of Rs 127.23 lakhs. These units gave employment to 434 persons and produced good worth Rs 1,066.81 lakhs during the same year. Furnished goods of this industry have local market.

 

(5) Paper and Printing.- There were 19 units engaged in the printing work and in the production of stationery items, paper bags, card-board boxes, etc. in the district. As on 31 March 2001 these units gave employment to 70 persons and produced goods worth Rs 271 lakhs. The fixed capital investment of these units was Rs 33.33 lakhs.

 

(6) Leather Products.- This is an important industry  and scattered all over the district. During 2000-2001, there were 157 units with a total capital investment of Rs 29.08 lakhs in the district engaged in the production of leather goods such as shoe making, leather bags, purses, attaché cases, etc. and leather tanning. These units gave employment to 281 persons and produced goods worth Rs 69 lakh during the same year.

 

(7) Rubber and Plastic Products.- As on 31 March 2001, there were 31 units engaged in the production of rubber and plastic goods such as tyre retreading, PVC footwear, tread rubber, polyethylene bags, plastic bags,  candles, grease, etc. These units gave employment to 186 persons and produced goods worth Rs 913.75 lakhs. The fixed investment of these units was Rs 188.47 lakhs.

(8) Chemical Products.- There were 29 units engaged in the production of chemicals in the district as on 31 March 2001. These units produced goods such as colour dyes, medicines/drugs, ayurvedic medicines, washing soaps, etc. These units gave employment to 331persons and produced goods worth Rs 2,771 lakhs. The fixed investment of these units was Rs 1,115.53 lakhs.

 

(9) Non Metallic Industries.- As on 31 March 2001 there were 18 units engaged in the production of non metal goods such as earthen wares, brick and tiles, lime, marble slabs, cement pipes, cement jallies, etc. These units gave employment to 471 persons and produced goods worth Rs 1,334 lakhs. The fixed investment of these units was Rs 327.92 lakhs.

 

(10) Basic Metal Products.- This industry is the main small scale industry of the district and mainly concentrated at Mandi Gobindgarh. There were 780 units engaged in the production of basic metal goods in the district as on 31 March 2001. These units produced goods like girders, channels, iron bars of different sizes, angle iron and sewing machines, etc. These units gave employment to 11,066 persons and produced goods worth Rs 9,45,177.49 lakhs. The fixed investment of these units was Rs 14,177.48 lakhs.

 

(11) Metal Products.- This is also an important industry and scattered all over the districts. There were 251 units, with fixed capital investment of Rs.618.76 lakhs engaged in the production of metal products in the district as on 31 March 2001.The main products of these units are trunks, petties, buckets, steel doors outer gates, steels furniture, railings, grills, etc. These units gave employment to 997 persons and produced goods worth Rs 31,052.10 lakhs.

 

(12) Machinery and Parts.- A large number of industrial units engaged in the production of machinery and their parts in the district with capital investment of Rs 1169.41 lakhs. During 2000-2001, in Fatehgarh Sahib District, 281 units were engaged in production of machinery and its parts viz. tractor-trolly, wheat thrashers, centrifugal pumps, agricultural implements, auto parts, nuts & bolts etc., by providing employment to 1,391 persons and produced goods worth Rs5,629.50 lakhs.       

 

(13) Electrical Machinery and Parts.- As on 31 March 2001, in Fatehgarh Sahib District 15 units with fixed capital investment of Rs 44.07 lakhs were engaged in the production of electrical apparatuses, machinery and their parts. These products were  in the form of electric generators, transformers, PVC wires, voltage stabilizers, assembling and reconditioning of batteries, assembling and rewinding of motors and fans, etc. These units gave employment to 57 persons and produced goods worth Rs 8,631 lakhs during 2000-2001.

 

(14) Transport Equipment and parts.-This is another important industry of the district. The transport equipment and parts cover a wide range of components. After Jalandhar, Sirhind is the most important centre for the fabrication of bus and truck bodies. A large number of ancillary units mushroomed around the town. During 2000-2001, in Fatehgarh Sahib District 83 units were engaged in this category, set-up with a capital investment of Rs 456.38 lakhs. During the same year, these units gave employment to 679 persons and produced goods worth Rs 2,162.51 lakhs.

 

(15) Miscellaneous Industries.- As on 31 March 2001, there were 11 units engaged in the manufacture of other articles such as, jewellery, silver articles, sports goods, painting, artistic works, etc. These units gave employment to 39 persons and produced goods worth Rs 62.30 lakhs. The fixed investment of these units was Rs 9.80 lakhs.

 

(16) Servicing and Repairing.-As many as,737 units were engaged in providing repair and other services in Fatehgarh Sahib District, during 2000-2001. The fixed investment of these units was to the tune of Rs 261.58 lakhs. During the same year these units gave employment to 1,213 persons and provided services worth Rs 743 lakhs.

 

(17) Cold Storage.- During 2000-2001 facilities for storage of perishable articles, such as vegetables and fruits were available in 4 cold storage units in the district. About Rs 269.70 lakhs were invested in these units as fixed capital. During the same year these units did business to the tune of Rs 265.00 lakhs by providing employment to 30 persons.

 

(iii) Cottage and Village Industries

    At the turn of the twentieth century, there were a number of cottage industries manufacturing handloom cloth, desi jutties, (footwear), pottery, village oil industry (kohlu), etc. Most of the industries in the present area of Fatehgarh Sahib District were hereditary engaging the persons of certain social group. Handloom weaving was the most important cottage industry. Even in present era the cottage and village industries are playing an important role in improving the economic condition of the rural population of the district. The Punjab Government have set up the, Punjab Khadi and Gram Udyog Board, under the Punjab Khadi and Gram Udyog Board Act, 1956 for the development of cottage and village industries in the State. The loans are provided to the new projects with capital outlay upto Rs 25.00 lakhs and the rate of subsidy varies between 25 per cent to 30 per cent for different categories. These industries serve dual purpose of providing employment in the rural areas and bettering the economic lot of the inhabitants of the villages. Important cottage and village industries functioning in the district are described below:

 

(1) Leather.- Leather goods produced in the district have a good market both inside and out side the district. The items of manufacturing include bags, chappals, shoes, suit cases, etc. In Fatehgarh Sahib District, 141 units were engaged in the production of leather goods during 2000-2001 which produced goods worth Rs 128.20 lakhs, and provided employment to 322 persons (161 full time and 161 part-time).

 

(2) Processing of Cereals and Pulses Industry.- During 2000-2001, there were 35 units engaged in the processing of cereals and pulses in the District. Most of the units were engaged in the processing of pulses (dal making) and manufacture of flour. These units produced goods worth Rs 153.45 lakhs and provided employment to 212 persons (104 full time and 108 part time) during the above mentioned year.

 

(3) Village Oil Industry.-There was only one unit engaged in village oil Industry in Fatehgarh Sahib District. This unit produced goods worth Rs 1.70 lakhs and provided employment to 2 persons (1 full time and 1 part time) during 2000-2001. The sale value of this unit was Rs 2.05 lakhs.

 

(4) Match Industry- There were 2 units engaged in the production of match (match boxes and match-sticks) during 2000-2001, which produced goods worth Rs 2.30 lakhs and provided employment to 8 persons (4 full time and 4 part time).

 

(5) Gur and Khandsari Industry.- This constituted the most important village industry in the district affording maximum employment. It is the most important subsidiary industry of the rural economy. There were 551 units engaged in this industry, giving employment to 1,342 persons (607 full time and 735 part time) during 2000-2001 and produced goods worth Rs 325.80 lakhs. Most of the persons engaged in this industry are part time, generally they are cane growers. The  traditional method is used in the manufacture of gur and shakkar.

 

    (6) Non-Edible Oil and Soap.- Among the oil seeds only mustard is grown in the district. In Fatehgarh Sahib District, only 4 units were engaged in producing non-edible oils by crushing oil seeds and making washing soap during 2000-2001. These units produced goods worth Rs 46.15 lakhs and provided employment to 26 persons (13 full time and 13 part time) during the same year. The products of these units are locally utilised.

 

(7) Bee keeping.- Bee keeping is the recent profession adopted by the rural people as village industry. Most of the people are doing it as a subsidiary occupation. There were 14 units engaged in the bee keeping occupation during 2000-2001, which produced honey worth Rs 5.80 lakhs, and provided employment to 32 persons (12 full time and 20 part time).

 

(8) Pottery.- One of the oldest industries of the district, pottery still contributes substantially to the economic life of the people. There were 35 units engaged in the production of pottery during 2000-2001, and provided employment to 1,161 persons (303 full time and 858 part time). These units produced goods worth Rs 122.95 lakhs during the same year.

 

(9) Fibre.- During 2000-2001 in Fatehgarh Sahib District, 262 units were engaged in the production of fibre, which produced goods worth Rs 67.80 lakhs and provided employment to 432 persons (262 full time and 170 part time).

 

(10) Carpentry and Blacksmithy.- Wooden frames for doors and windows, beds and some pieces of furniture are manufactured by the old families of the carpenters in all the villages of the district in the same way the metal products are prepared and repaired by the blacksmiths.

During 2000-2001,there were 152 units engaged in the carpentry and blacksmithy work which produced goods worth Rs 211.95 lakhs, and provided employment to 580 persons (329 full time and 251 part time). The industry is scattered all over the district.

 

(11) Lime.- In Fatehgarh Sahib District, there were 14 units engaged in the production of lime during 2000-2001 which produced goods worth Rs 17.20 lakhs and provided employment to 31 persons (14 full time and 17 part time). The product is mainly utilized in house building and their maintenance.

(12) Bamboo and Cane Industries.- Cane furniture and baskets of different sizes are manufactured from bamboo and cane. In Fatehgarh Sahib District 30 units were engaged in the production of bamboo and cane articles during 2000-2001. These units produced goods worth Rs 12.45 lakhs and provided employment to 60 persons (30 full time and 30 part time) during the same year.

(13) Fruit Processing Industries.- There were 27 units engaged in the processing of fruits in Fatehgarh Sahib District, during 2000-2001, which provided processing services worth Rs 24.60 lakhs by providing employment to 68 persons (33 full time and 35 part time).

(14) Electronics.-During 2000-2001only one unit was engaged in the production of electronic goods in the district. This unit produced goods worth Rs 1.10 lakhs and provided employment to 2 persons (1 full time and 1 part time) during the same year.

(15) Hand Paper Industries.-Only 4 units were engaged in the production of hand paper which produced goods worth Rs 1.60 lakhs and provided employment to 8 persons (4 full time and 4 part time) during 2000-2001. 

(16) Polymer.- There were only 2 units engaged in the production of polymer in the district during 2000-2001, which produced goods worth Rs 7.60 lakhs and provided employment to 10 persons (5 full time and 5 part time).

(iv) Jail Industries

 

There is no jail industry in the Fatehgarh Sahib District.

 

(h) Role of Industrial Cooperatives

 

The industrial cooperative societies are voluntary associations of artists and craftsmen organized for the promotion of their economic interests. 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 furnished products in more profitable manner as well as to obtain grants, subsidies and other facilities from financing agencies and Government. During 2000-2001 there were 48 industrial cooperative societies in the Fatehgarh Sahib District. The members of these societies generally belong to weaker sections of the society and mainly are 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 Handloom Weavers Apex Cooperatives Society Limited (WEAVCO) at the State Level and primary handloom societies 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 cooperative societies of the State and products furnished by these societies from the yarn are purchased/ sold by the WEAVCO show rooms. 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 textiles designs it has installed a small computer in its head office.

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

The  details  regarding  the  industrial  cooperative  societies functioning     in    the   Fatehgarh   Sahib    District    during    the    year 1992-93,1996-97 to 2000-2001 are given below:

 

Year

Number of societies

Membership

Production

(Rs in lakhs)

Sale

(Rs in lakhs)

Subsidy

1992-93

55

788

49.92

47.90

-

1996-97

55

796

50.61

49.21

-

1997-98

55

796

55.62

51.62

-

1998-99

57

818

57.87

53.84

-

1999-2000

56

807

57.62

54.82

-

2000-2001

48

715

51.86

34.30

-

                (Source: Deputy Registrar Cooperative Societies, Fatehgarh Sahib)

 

 

(i) Labour and Employer’s Organisation

 

The area of the present Fatehgarh Sahib District, prior to Independence was the part of erstwhile Princely States of Patiala and Nabha, so the life of workers was worse than that of workers in the areas under British. Not much emphasis seems to have been given for the welfare of industrial labour in the areas under the princely states. However, after Independence the Trade Union Act and Labour Laws were extended to the area presently falling in the District. There are a number of labour organizations functioning in district. These organisations have established not only health conventions, but as they grow in strength have put pressure upon the Government to incorporate these conventions in the laws of the country through Parliamentary Legislation, prior to 1919, the labour legislation of India was rudimentary related only to factories, mines and migration. The first Act, which gave recognition the right of the labour to combine, themselves in to a union to secure redress of their grievances was the Trade Union Act of 1926. This Act recognised the All India Trade Union Congress, which had been holding annual sessions since 1920 and had a number of unions affiliated to it. In spite of the stupendous difficulties in the way of trade union movement because of the peculiar conditions prevailing in India such as the floating character of the labour population, its heterogeneity, indiscipline, poverty, illiteracy, etc., the movement had made considerable heading. The representation given to labour, first by the Government of India Act, 1935, and later by the constitution through special constituencies comprising registered trade unions had been responsible for not only an increase in the number of unions, but has also promoted the efficiency of their working. The compulsory  reorganization by the employers of the trade unions (made possible by the Indian Trade Union Act, 1947) have given further impetus to the movement by imparting more strength and vitality to the unions. Besides, the trade union movement provides not only security of employment to the workers but also enables them to secure advancement in their wages.

The particulars of Trade Unions registered under the Indian Trade Union Act, 1926 functioning in the district are given in I Appendix  at Page160.

 

(j) Welfare of Industrial Labour

 

The welfare comprised all matters affecting the health, safety, comfort and general welfare of the workmen 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, housing cooperative societies, grain and cloth shops, provision of canteens, etc.

            The welfare of the industrial labour is 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 allies and varied reasons.

            The constitution itself provides that the State shall endeavour to secure by suitable legislation or economic organisation or in any other way, to all workers, agricultural, industrial and otherwise, living wage, condition of work ensuring decent standards of living and full enjoyment of leisure and social and cultural opportunities.

 

 

 

 

                       


APPENDIX I                       (Vide page 158)

 

List of Registered Trade Unions in Fatehgarh Sahib District as on 31 March 2001

 

Serial No.

Name of the Union

Date of Registration

1

Punjab Dehat Mazdoor Congress Union, Mandi Gobindgarh

21 October1975

2

Sanyati Mazdoor Union,  Mandi Govindgarh

26 April1993

3

Steel Industries Trade Union ,Mandi Gobindgarh

31 January1981

4

Iron and Steel Karamchari Sangh (Union), Mandi Gobindgarh

2 February1968

5

Steel Industries Labour Union, Mandi Gobindgarh

9 December1974

6

Rashtriya Metal Mazdoor Union, Mandi Gobindgarh

11 April1977

7

District Iron and Steel Workers Union, Mandi Gobindgarh

24 September 1974

8

Turner Trade Union, Sirhind

26 July 1988

9

Labour Union, Mandi Gobindgarh

10 March 1954

(Source: Labour Commissioner   Punjab, Chandigarh)

 

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