The following thrust sectors for growth have been identified after an analysis of the State’s inherent strengths, growth potential of various sectors and their long term sustainability:
This list of thrust sectors will be periodically reviewed keeping in view the changing macro-economic environment, emerging technologies and other developments. The policy initiatives proposed for each thrust sector are being outlined in the succeeding sectcions.
18.1 GARMENTS AND KNITWEAR
The State already has nearly 600 units under this sector doing business worth Rs.1200 crores, constituting 7% of the country’s export. The following steps are envisaged to accelerate the pace of growth in this sector.
Need-based Infrastructural facilities for garment and knitwear Industry will be developed in RIICO’s Industrial Areas, which may, interalia, include land for warehousing facilities, access to in land container depots, exhibition centres, market places and land for flatted factories.
The State Government will support the efforts of Associations for establishment of an Apparel Design and Training Centre to provide services such as design and data base management, to conduct EDP and HRD programmes, to establish international linkages for the trade and to organise annual trade fairs.
Specific entrepreneurship development programmes will be designed to provide an impetus to growth in this sector.
With a view to making available trained technicians, Textile Training courses will be introduced in selected ITI’s/Institutions.
A few major international companies with State-of-the art-technology will be invited to shift their manufacturing set up to Rajasthan and specific incentives for this purpose will be provided.
18.2 GEMS AND JEWELLERY
Rajasthan has a good international presence in coloured gemstone. The strategy for the development of this Industry will be to boost the existing industry while simultaneously encouraging manufacture of studded jewellery and diamond polishing.
Availability of gold at international prices in Industry clusters will be facilitated by approaching the authorised Agencies in this regard.
Establishment of a custom bonded warehouse at an appropriate locations to make available gold, silver and precious stones would be supported.
RIICO will provide land for setting up an Artisan school in the Private/NGO sector for gemstone/ diamond polishing and studding.
Demand based flatted/built up factories would be provided to interested entrepreneurs to reduce the lead time in project execution.
Efforts will be made to provide assaying and hall marking facilities through a suitable agency, in a major industry cluster.
Exhibitions of Gems and Jewellery would be encouraged at Jaipur to facilitate strong national and international market linkage.
A centre for Jewellery design and training would be set up as a part of the Indian Institute of Crafts being established at Jaipur. Efforts will be made to involve the World Gold Council in setting up of this Centre.
Establishment of a Gem Bourse will be facilitated, as it is considered an essential infrastructural requirement for International Trade in gem stone. Land will be allotted for the Gem Bourse at a suitable location.
18.3 TEXTILES
There is ample scope for future growth in the textile sector and in order to realise this potential the following steps are envisaged.
A Special Textile Complex with the requisite infrastructural facilities like a common effluent treatment plant, warehousing, a training centre etc. would be developed by RIICO.
A Textile Research Institute on self-sustaining basis, to be managed by the industry on the ATIRA pattern, will be encouraged. RIICO will provide land for the purpose.
Manikyalal Verma Textile Institute will be strengthened to meet the emerging needs of the textile sector. Degree courses in Textile Engineering. Textile Design and Wool Technology would be started during the IXth Plan Period.
A new Cell for Textile Industry has been set up the Commissionerate of Industries, which will regularly address issues concerning the State’s Textile Sector.
18.4 ELECTRONICS AND TELECOMMUNICATIONS
In Rajasthan, production of electronic goods in the past ten years has increased from Rs.70 crores to about Rs.750 crores. The State occupies a prominent position in production of electronic components. Given its many positive features the Industry deserves continued support.
An Electronic complex encompassing Electronics Hardware Technology Park would be developed by RIICO at Kukas, Jaipur having interalia, the following facilities:
Assured supply of quality power;
Reliable telecommunication facilities-including data, voice and video;
Standard Test House in the private or public sector;
Custom clearance facility for export; and
Social infrastructure including Housing, School, Recreational facilities, shopping complex, Bank, Post Office, Hospital etc.
An Electronics Zone will be developed as a part of the Export Promotion Industrial Park at Jaipur.
18.5 Information Technology
The Software industry is growing at the rate of over 40% per annum and the potential for its development in locations like Jaipur is substantial. The following initiatives will be taken for development of computer software industry in Rajasthan:-
The Government will take steps to inculcate Information Technology(IT)-based work Culture in the State. Measures would be taken to develop a local market, first by introducing computerisation in the Government in a big way.
Facilities for I.T. education will be improved Courses such as MCA, BCA and Computer Science will be introduced in appropriate institutions. The capacity of ongoing courses will be expanded.
A large Information Technology Park will be promoted at Jaipur, in which built-up space and developed plots at reasonable prices would be made available.
A Production Incentive of 50% of land cost will be provided to entrepreneurs whose units go into commercial production within two years of allotment.
An Earth Station is being set up in the State to provide high speed data communication facility. MOU has been signed on 2.3.1998 with Department of Electronics, Government of India.
For promoting advanced software training, up to 5 acres of land at a concessional rate of 25% of the prevailing land rates will be allotted by RIICO in selected industrial areas.
Special measures will be undertaken to enlarge facilities for I.T. education in Technical Institutions and Colleges of the State.
Computer Software will be considered as an industry for the purpose of all incentives and concessions.
Software industries will be permitted to be established without any locational restriction in the urban areas.
Software units will be considered as industrial consumers and electricity tariff would be levied accordingly.
Software industry will be exempt from the provisions of Pollution Control Laws and regulations.
18.6 AUTOMOBILES AND COMPONENTS
The auto and auto components’ industry is expected to have a multiplier effect and generate a large number of employment opportunities. The following initiatives will be taken in order to given impetus to automobile and auto component industry in the State.
A sufficiently large are of land will be identified by RIICO and reserved for an auto park which would accommodate the expected investments in auto and auto component sector over the next 5 years. The specific infrastructural facilities required by the auto/ auto component industry will be provided in the auto park.
The State Government have already announced an attractive package of incentives for grassroot Car/automobile projects which includes interalia, investment in equity, purchase tax exemption for 7 years and Sales Tax exemption/deferment for a period of 12 years without any limit and octroi exemption for a period of 10 years. However, for premier units with a minimum investment of Rs.150 crores and regular employnment of atleast 500 persons, the State Government would offer more attractive, customised incentives. An equally attractive Incentive Package has been announced for auto component and other auto units like Motor Cycles, Scooters, Tractors, etc.
18.7 FOOTWEAR AND LEATHER GOODS
The focus of efforts in the foreseeable future would be on value added products made from leather namely, footwear, leather garments and leather goods. The major policy initiatives envisaged to encourage the industry will include, the following steps.
Leather industry clusters/zones will be developed by RIICO in identified locations complete with all physical and social infrastructure. Such complexes are being developed in the first phase at Manpur Machedi, Sitapura and Bhiwadi.
National institutes like FDDI/CLRI will be invited to set up a centre in Rajasthan. Land for such centre will be provided by the State Government.
The State Government will encourage trade fairs for leather goods in Rajasthan.
A few leading international manufacturers/global players will be invited to set up their leather goods production units in the State. A customised incentive package will be specially worked out for the first three such units to catalyse investment in this sector.
Steps will be taken to provide a variety of training courses to facilitate the availability of trained manpower for industry.
18.8 DIMENSIONAL STONES
The State’s rich dimensional stones’ deposits can be developed to create a vibrant dimensional stone industry. The following policy initiatives are envisaged to achieve this objective.
Scientific and mechanised mining will be enouraged to ensure optimum utilisation of the State’s resources.
In order to provide a fillip to systematic mechanised mining for dimensional stones and other minerals, the mechanised mining units would be given the status of an industry making them eligible for concessions and facilities as extended to other industries. This would spur development of processing capabilities within the State. The Mines Department would register such mechanised mining units and would act as the Administrative Department. The Mines Department would come out with a policy on concessions and incentives to mechanised mining units.
For safety and improved productivity, proper upkeep of mines is essential. Mines Department will specify dumping yards for mine waste and over-burden, wherever feasible, to achieve this objective.
Development of Model mines with facilities of training will be encouraged in the private sector for promoting scientific mining practices.
Allotment of larger mining leases will be considered for lease-holders who are well equipped for undertaking exploitation of mineral resources through state-of-the-art mining technology. Export-oriented units will be invited to undertake prospecting and mining of large virgin deposits. The Mines Department will separately announce a scheme for this purpose.
Director of Mines & Geology will create a data bank on quality and reserves of various categories of dimensional stones. The information thus collected would be published and widely disseminated for the benefit of entrepreneurs.
A Centre for Development of Stones (C-DOS), with the active association of industry will be promoted to serve as a data –bank, a centre for training, research, technological dissemination and other activities to support the growth of dimensional stone industry on a sustainable basis. Annual buyer-seller meets/stone fairs will be organised in collaboration with Industry Association and interested foreign collaborators. RIICO would contribute to the setting up of this Centre by providing suitable land in one of its industrial areas at Jaipur.
Basic infrastructural facilities like roads, power, water and drainage will be provided in a phased manner in mining centres like Rajnagar and Makrana by the Mines Department.
An award would be instituted by the State Government for Architects who make an outstanding contribution in promoting the use of Dimensional Stones of Rajasthan.
18.9 CEMENT
Given the huge investments required for infrastructure development and industrial growth, the long term prospects for cement industry remain bright.
Presently, Rajasthan has a share of around 10% in all India cement production whereas its limestone reserves constitute nearly 20% of the country’s reserves. The following initiatives are proposed for ensuring the maximum share of the proposed investment in this sector in the coming years.
The mines department will proactively identify good limestone reserves for new cement plants.
New broad gauge rail linkages to potential cement project sites would be identified and the Railway Board approached for conversion of existing lines from meter gauge to broad gauge.
Provision of basic infrastructural inputs like power lines, water supply and roads from quarries to project sites would be facilitated through coordinated, time-bound action by concerned agencies, so as to expedite project execution.
18.10 GLASS AND CERAMICS
The State has a vast scope for the development of ceramic and glass industries based on the availability of natural resources. The following initiatives will be taken to encourage ceramic and glass based industries.
Infrastructure in the Ceramic Complex at Khara, Bikaner will be further strengthened.
The State Government will encourage setting up of a Ceramic Institute in the private sector for the development of the required manpower. Efforts will also be made to develop training facilities in Ceramic Technology through the existing Technical Institutions.
Central Glass and Ceramic Institute, Calcutta will be invited to set up an extension centre in the State; land upto 5 acres will be allotted to the Centre free of cost.
18.11 AGRO BASED INDUSTRIES
In order to take advantage of the buoyancy in the State’s Agriculture Sector special emphasis on agro-processing industries is proposed. The following package to promote investments in the Agro-processing sector is proposed.
RIICO will develop an industrial zone exclusively for the agro-processing sector in the Indira Gandhi Canal Project area.
In order to promote Integrated agro-industrial complexes, the State Government has announced a policy under which wasteland up to 500 hectares can be allotted. In special cases, wasteland even up to 1000 hectares can be considered for allotment. The allotment under the scheme will be made after a techno-economic appraisal of the project.
In order to promote value addition, purchase tax, sales tax and octroi rates would be rationalised in respect of identified agricultural commodities.
As a special incentive new agro-based units will be provided 50% reimbursement of the market fees deposited byi them during the financial year, for the first five years of their operation.,
Capital investment subsidy scheme for promotion of Agro-based units, 1996 being implemented by the Rajasthan State Agriculture Marketing Board with effect from 1st April,1996 will be amended to provide enhanced capital subsidy for agro-based units. The ceiling of capital investment for eligible units will be increased for Rs.One crore to Rs. Three crores. The ceiling of subsidy amount will be increased from the present Rs.15 lacs.to Rs.20 lacs. Thus subsidy will now be paid at the rate of 20% of eligible fixed capital investment, subject to a maximum of Rs.20 lacs.
An Agro-Information Centre will be established at Jaipur in collaboration with Confederation of Indian Food Trade and Industry(CIFTI).
A Food Testing Laboratory will be established in Jaipur in order to facilitate testing.
The Central Food Technology Research Institute(CFTRI) will be invited and supported to set up a regional office at Jaipur so that technical consultancy food processing industry in the State is made available.
