MADHYA PRADESH

7. DEVELOPMENT OF SMALL, MEDIUM AND LARGE INDUSTRIES

7.1 The importance of the small scale sector in the country's export effort, its role in balanced regional development and in providing employment opportunities is well established. It will be the endeavour of the State Government to make this sector more dynamic. The problem of sickness will be dealt with on priority. Tax incentive schemes will help develop synergistic linkages between units in this sector and those in the medium and large sector and contribute towards developing ancillarisation based on close and sustained mutual interest. Such linkages will also contribute to employment generation.

7.2 The existing marketing arrangements provided by the Madhya Pradesh Laghu Udyog Nigam for the small scale sector will be strengthened. The Laghu Udyog Nigam will not purchase from outside the State, items manufactured within the State itself. It will be incumbent upon government Departments and Corporations to strictly follow the Store Purchase Rules. Relaxation, if any, will be granted only by the Cabinet. The matter of introducing a rate contract system will be examined.

7.3 The role of the Laghu Udyog Nigam as a promotional and marketing agency for the small scale sector is being modified.

7.4 To facilitate purchases at the local level, powers will be delegated to district level officers of the Laghu Udyog Nigam. The process of decentralization will help streamline the mechanism for purchase and for making payments to small scale units.

7.5 The Laghu Udyog Nigam will develop new facilities with the help of the private sector for marketing the produce of small scale units.

7.6 Provisions regarding timely payments to small scale units will be strictly enforced. A committee of officials and representatives of associations will meet every quarter in the Directorate to review cases of delayed payments. If necessary, such cases will be brought to the notice of the Chief Secretary.

7.7 A system will be evolved for joint appraisal by Financial Institutions and Banks for fixed and working capital requirements of small scale units. With a view to ensuring effective financial arrangements for the small scale sector, the working of the Madhya Pradesh Financial Corporation will be reviewed periodically by a committee in which State-level small industries associations will also be represented.

7.8 There is a potential for synergistic linkages between the tiny, small medium and large sectors. Medium and large industries an act as centres around which tiny and small scale units can develop. In turn, the tiny and small sector can strengthen the functioning of large and medium industries by catering to their needs of raw materials and intermediate goods. Large and medium industries can also benefit from the upgradation of skills in the tiny and small sector. Synergy from such linkages will contribute to industrial development in a measure far greater, than the sum of their individual efforts. The State Government will encourage the developing and strengthening of such linkages.

7.9 Government will pay special attention to the problem of industrial sickness. A special scheme will be prepared to deal with this problem.

7.10 The readymade garment industry is not only labour intensive, like the electronics industry, but also has the potential of placing Madhya Pradesh on the export map of the world. A time bound programme will be chalked out for the development of this industry.

7.11 Special attention will be paid to the technological upgradation of small scale enterprises. Efforts will be made by the State Government to make modern technology accessible to them.

7.12 Seminars and workshops will be organised on different subjects to provide technical information to small scale units with the help of various research centres for the small scale industry established by the Government of India, technology institutes and universities.

7.13 In the context of economic liberalisation, government of India has commissioned a special study, on the conditions of small scale industry in Madhya Pradesh. All efforts will be made to draw full advantage from the results and findings of this study.

7.14 A high power committee under the Chairmanship of the Chief Minister will be constituted to accelerate the pace of developmetn of small scale industries.

7.15 The target for establishing one lakh new small scale enterprise has been set for the next five years.

7.16 In order to attract medium and large scale enterprise, the State Government will strengthen the facilitatory mechanism, in addition to providing excellent infrastructure facilities and concessions.

7.17 Subject to quality and price competitiveness, those items not reserved for the tiny and small scale sectors, will be purchased by the departments of the State Government from medium and large scale units located within the State.

7.18 The problem of sick textile mills will receive the Government's close attention. The Cabinet Sub-Committee on sick textile mills will submit its Report shortly. Government will also examine the points made in this Report for their applicability to other sectors.

7.19 The Madhya Pradesh Audyogik Vikas Nigam, will work as the nodal agency for the development of large and medium industries in the State. This Corporation will be responsible for reviewing the performance of the Audyogik Kendra Vikas Nigams and for the development of infrastructure in the Growth Centres and its expansion and up-keep. The Madhya Pradesh Audyogik Vikas Nigam will play the role of a coordinator for encouraging the development of industrial infrastructure in Growth Centres in partnership with the private sector and industries associations. The Madhya Pradesh Audyogik Vikas Nigam will consider proposals for equity participation in large and medium industries within the framework of the assisted and joint sectors.

7.20 A target for establishing four hundred new large and medium enterprises has been set for the next five years.

8. SPECIAL FACILITIES FOR SELECTED IMPORTANT INDUSTRIES

8.1 Thrust sector industries will be given special facilities.

8.2 The State Government will make special efforts for developing hi-technology and frontier areas in electronics industries.

8.3 The Electronics Testing and Development Centre at Indore will become fully operational in a few month time.

8.4 A technology Park for units engaged in hi-tech and frontier areas of electronics will be developed.

8.5 Looking to the extremely dynamic and fast changing nature of the electronics industry, a Working Group of officials and specialists in the field of electronics will be constituted. This Group will meet ever quarter, share information and recommend measures for the future growth of the electronics sector in the State.

8.6 Looking to the increasing use of electronic items, training facilities will be made available for their maintenance and repair, so that employment opportunities are created for the unemployed. They will be given training under the Prime Minister's Rozgar Yojna for Educated Unemployed Youth, Nehru Rozgar Yojna and Trysem with a view to maximising employment opportunities.

8.7 The Cooperative Sector will be encouraged with a view to increase the involvement of larger numbers in agro-based industries. Not only will this increase employment opportunities, it will also ensure better economic returns to cultivators. A Cabinet Sub-Committee will be constituted to make a detailed study and give its recommendations on the subject, and suggest, if necessary, changes in rules and regulations. Special schemes will be prepared for industries based on minor forest produce and horticulture.

8.8 Food processing and agro-industries will received the government's close attention. A scheme will be launched whereby an industrial unit will be permitted to adopt an entire tehsil and secure for itself an uninterrupted raw material linkage. Subject to detailed terms and conditions, the supply of raw materials to such units will be ensured from that one area. The details of this arrangement will be spelt out in a Memorandum of Understanding to be signed between the industrial unit, the district administration and the industries department. Among other matters, the Memorandum will provide for the manner in which the price of raw materials will be determined year to year, as well as the social infrastructure facilities for common use to be developed by the unit.

8.9 The Soya Processing Industry continues to have tremendous potential. Soya processing units will be given facilities provided to industries under the thrust sector. To encourage value addition, units producing proteins and oil from de-oiled cakes will be given special facilities. The inventory holding restriction will be removed. A High Level Committee will be set up to look into the question of multiplicity of licenses required by Soya Processing units and suggest rationalisation. The question of raw material gradation will also be examined by this Committee.

8.10 With a view to accelerate the development of agro-based food processing industry, private sector participation in wasteland cultivation will be encouraged. The question of making necessary provisions for such units under the land ceiling act will be examined.

8.11 Private sector will be encouraged to take up Commercial Forestry. It will also be encouraged to go into dedicated forestry for industrial use.

8.12 Being in the thrust sector, mineral based industries will enjoy special concessions. Private sector participation in mining will be encouraged. a "Diamond Park" will be set up. This will help focus on the future possibilities of the diamond polishing and processing industry in the State. Every effort will be made to fully realise the employment and revenue generating potential of mineral based industries.

8.13 Garment, leather and silk industry have been placed in the thrust sector to fully exploit their export and employment potential. The development of the ready-made garment complex at Indore will be speeded up. Given the fast changing consumer tastes and the need for these sectors to keep pace with changes, a Working Group, comprising officials and representatives of these sectors will be constituted. The Working Group will met every three months, formulate strategies for the further development of these sectors and make its recommendations to the Government.

8.14 A plan for down stream projects will be prepared based on the Oil Refinery being set up at Bina in Sagar district by Bharat Petroleum

8.15 Units which will be set up to convert agricultural waste and urban waste into fertilizer will be encouraged. These units, besides helping reduce health and environmental hazards, are also of direct benefit to cultivators.