Go ToModel Industrial Town or Industrial Estate or Industrial Estate in PPP mode
Go ToModel Industrial Town or Industrial Estate or Industrial Estate in PPP mode
Industry is an important sector among various sectors of any economy, which needs to be carefully planned to fasten economic growth and development. In fact, industrialization has come to be regarded as synonymous with national development. It is indeed a distinguishing factor between developed economy from an undeveloped one.
Rapid industrialization is thus, the need of present environment of economic reforms and globalization of industry in order to achieve faster economic growth, but in planned manner. Small scale industries plays an important role in the overall growth of industries. Its importance in Indian condition is more pronounce because of following factors: -
1. Finance is still a limited resource in our economy.
2. SSI units can concentrate on core competence very well.
3. Family trained manpower is gainfully employed without migration.
4. Local resources and aspirations are taken care off very well by such units.
Well planned industrial development exclusively for the small and tiny sector of industries shall generate employment opportunities, better utilization of scarce resources and development of backward areas on the one hand and shall correct the regional imbalance of industrial development and balanced ecological effect on environment on other hand. Promotion of Integrated Industrial Development centers and industrial estates with all basic infrastructures in backward areas is the important initiative step of the Government of India in this direction.
GOVERNMENT INITIATIVES
Considering the major blockage of industrial development in small and tiny sectors in the backward areas i.e. absence of infrastructure facilities the central government has chalked out the program for development of Integrated Industrial Development Centres in the districts not covered under erstwhile scheme of industrial growth centres of the Ministry of Industry.
The Central Government have planned a development of 50 such IID centres over a period of five years in the eighth five year plan (1992-97) for development of growth centres exclusively for small & tiny sector industries in the backward areas of the state/Union Territories.
It is intended that these growth centres will serve as gravity centres for attracting small and tiny sector industries in backward areas though adequate development of infrastructure in these growth centres.
These growth centres are to be located close to Taluka/Block head quarters of the district in order to minimize the travel distance for workers from their dwelling places and shall be so located that it would effectively use all local resources both man and material.
Each integrated industrial development center(IIDC) depending upon the locational potentiality shall be developed for about 50 hectares of land for allocation to only small and tiny sized units and for development of industrial and social infrastructure facilities. Each IIDC shall be provided with the funds of Rs. 5.00 crores in order to create Infra-structural facilities of a minimum order for the effective running of small-scale industries.
Gist of the scheme approved by the Government of India and various Ministries including Ministry of Industry Department of Industrial Development for the developmental of such Integrated Industrial Development center in the backward areas of the various states and union territories is given by way of separate enclosure which is enclosed to this chapter.
INDUSTRIAL SCENE OF MADHYA PRADESH:
Madhya Pradesh may have been a late starter in the field of industry, but the climate today is more conducive for industry then most other parts of the country. The state has rich agricultural, forest, mineral and live stock resources and these are carefully utilized for industrial pur-poses.
MP has Bhilai Steel Plant, BHEL Flagship unit at Bhopal, India's largest paper mill at Amlai, a dozen or so cement plants, the Gwalior Rayon Complex at Nagda, and unit by names respected in Industry Nationally or internationally like Tatas, Birlas, Kirloskar, Mafatlal, Bangurs, JK's Union Carbide, Levers, DCM, Eichers, Orlinkons, Bajaj, Brook Bonds etc., have already established industries in M.P. Owned by the State Government, MPSIDC is involved in providing assistance for setting up units in Madhya Pradesh and has so far assisted more than 400 units.
Reliance Industries Ltd. (RIL), which recently unveiled plans for a major foray into the information technology (IT) sector, has entered into a joint venture with the MPSIDC, aimed at bringing e-governance to the state.
Under a memorandum of understanding (MOU) signed between the two sides, Reliance will set up 500 information kiosks in the state by March 31, 2001, and 7,300 more the following year. These kiosks will enable citizens to access information from various state government departments. While the MPSIDC will not make any financial contribution to the joint venture's equity, it will procure land, ensure other sanctions for running the electronic information centers (EICs) and get a 5-percent equity in the joint venture. The venture will be managed by a joint board of directors. MPSIDC is also to establish hi-tech software technology park in the state.
MPSIDC, formerly known as M P Audyogik Vikas Nigam, started functioning in 1965 primarily to augment industrial growth in Madhya Pradesh. Since 1994, the focus of MPSIDC has been infrastructure development to attract and promote industries, both domestic and foreign, in the state. It has plans to develop and implement infrastructure projects like air cargo complexes, dry ports, express highways, power plants and industrial water supply projects. MPSIDC is the central point and hub which co-ordinates, activates and ensures implementation of mega projects to strengthen infrastructure in Madhya Pradesh.
Hindustan Lever, TISCO, Raymond, Grasim, SRF, Crompton Greaves, Cadbury, Godrej Soaps, Eicher Motors, Hindustan Motors, Kinetic Honda, L&T, Tata Exports, Century Textiles, Procter & Gamble and Fujitsu Optel are just some of the big names already here. Today 7 of India's top 10 Groups have a sizeable presence in MP, making it among the top 4 states in terms of industrial investment.
According to Economic and Political Weekly, taking 100 as index of rural infrastructure, while Indian average is at 52.7, for MP it is only 42. In comparison with other states, it has only Rajasthan with it, to occupy a place at the bottom of the list.(Krishak Jagat, 12-18 July 1999)
Till now the state was known to be industrially backward state and most of the districts were classified as backward districts but the industry is getting attention and is expanding rapidly. The state has always been a land of opportunities, but it is only in recent years that is has developed into a land of industrial opportunities. The industrial development climate is as it was never before and industrialists now have already started rating it amongst the four states in the country having good investment climate. MPAKVN has retained services of MPCON for preparation of project report of the setting up an IIDC at Manasa of Neemuch District in MP.
Disclaimer clause : MPCON has studied the requirements of the Company, evaluated the projections and related assumptions relied upon by them, inter-alia, in the light and based on investment decision taken by the promoters duly supplemented with the further clarifications, information orally or expressly obtained from the promoters and disclosures made by them.
The observations made by MPCON about the financial and technical viability of the project/venture are nothing but an expert opinion formulated by it keeping in view, inter-alia, the prevailing external environment visualized and the same in no way be con-strued or interpreted to be the approved by the MPCON.
MPCON has only examined the project and its estimation furnished by the Company with a view to establish that under the given circumstances the project is technically feasible and financially viable. This has been done after giving due weightage to the information and data available for the industry to which this project belongs. It is the company and its promoters who are responsible for correctness of the information provided by them required for the purpose of said report.
PROPOSED PROJECT
Proposed Integrated Industrial Development Center 'Manasa' is situated 25 km from district head quarter Neemuch, a newly formed district. Neemuch has a rich history since it was inhabited by Europeans before World War I as their garrison headquarter. A Victoria cross winner Mr James Blair lived here in 1857. Though Neemuch now has only CRPF, at one time it was a military centre also. Although the proposed area falls under backward district i.e. Neemuch but it is connected to Indore, the premier industrial city of Madhya Pradesh by road and rail.
The selected location is ideal for the proposed IIDC as it is in closed proximity to the large number of existing medium and large scale industry in the field of textile, fertilizers and chemicals, steel and minerals, woolen and grocery and net wares and thus would be able to generated good number of small and medium scale units for the manufacturing of various product and material used in these industries.
IIDC Manasa is being promoted by MPAKVN (I) Ltd., Indore a specialised state government corporation engaged in development and promotion of industrial growth centers and infrastructure facilities in the western part of the state.
Proposed project envisages development of a Mini Growth center in a backward area and shall promote the Industrial Growth and development in the backward district Neemuch where large potential lies has to the development of small industries including ancillary industries based upon the local availability of raw material and other resources. The proposed integrated industrial development center is aimed to bring approx. 300 units in the center. Considering an average direct employment of 20 person per industry, it will generate direct employment to around 6000 number of persons, besides indirect employment to thousands in a backward area.
In view of the very low cost of infrastructural development, the project for mini growth center/Integrated Industrial Development Center seems to be financially viable.