m Transport Cost m Electricity duty

m Market exemption
m Energy m Concession to new
m Labour industry
m Climate m Concessional tariffs

m Power subsidy m Power intensive

m Government strategies
Industry
m Incentives for project
m Area
report
m External economies
m Land
m Water supply & Power
m Oaw material oriented Industries will be closed to
sources of supply
For e.g. Tata Steel
m Depends upon type of raw material
3 Perishable
For e.g. Fruit Canning industries
3 Non perishable
For e.g. Pharmaceutical Industries
m Industries tends to be near their market

m Industries of perishable products

m Personal Contact

m Size of market is measured by its potential sales

m Source of energy
a) Coal Fields
b) Oivers

m Advancement in technology
m Most important factor of production which
influence the location of an industry
m Capital-intensive industries and Labour-intensive
Industries
m Three types of labour ± Skilled, Semi-skilled and
Unskilled
m Costlier in towns and cities than in ruler areas
m Plays very important role.

m Some industries require dry, some require humid.

m Cotton requires humid conditions.

m Textile industries require moist climate.

 m Granted to small scale units on power consumption

m The quantum admissible is difference between the actual rate

per unit and

1. 3 paise/unit to max. 12 paise/unit if population is upto

20,000
2. 6 paise/unit to max. 9 paise/unit if population is 20,000 to
1,00,000
3. 9 paise/unit to max. 16 paise/unit if population is above
1,00,000
m Earlier conditions: Industries were set up as per the
wish of entrepreneurs

m Oesults: congestion of industries, migration of labor,

Problems of housing ,soaring prices , awkward growth
and regional imbalance etc
m Steps taken State Industrial Development corporation

m Identify backward industrial areas

m Offer a package of incentives

m Give notifications bout such incentives

m Divided area into ±
a) Well Developed
b) Nearly developing
c) Developing
d) Underdeveloped
e) Undeveloped
m General type of incentives to industries
m Especial incentives or concession given in addition
`

m Special incentives :
a) Cash subsidies
b) Sales taxes exemptions
c) Interest-free sales tax loans
d) Power tariff concession etc

m Cash subsidies will be equivalent to fixed capital

investment in addition to 15% cash subsidary from
central government
m External economics are those which accrue to firms
as a result of the expansion and concentration

mAvailability of OM, tools, machi. & Transportation

cost
m Natural factors

m Infrastructures

m Historical accidents
m Sales tax exemption is given to small scale industries
m Sales tax exemption on purchase of machineries, raw
materials, process materials etc.
m For example Gujarat government has set up following
criteria-
a) Start the production on or after 11th November, 1977
b) Expansion , diversification or modernization of any industry
m 14 industries are exempted like flour mill, rice mill,
laundry, tailoring, photographing studio, preparing
farsan, khakra, papad etc.

m Units run by government are exempted from the

subsidies
m On power purchased for 5 year

m Concession for small scale Industries

m Substantial expansion are also exempted

m Concessional tariff of 90% for 1st 5 year

m Not applicable for expansion or extension

m Commence taking the supply on or after 1stNov.

1978.
m Oegister a contract demand of 2500 KVA or more

m Annual operational load factor should be 80% or above

m Examine request by the Gujarat Electricity Board

m The cost of electricity should be 25% or more of the

cost of the manufacture of the particular product
m If capital exceeds Os 50 lakhs then subsidy offered is
50% on project report or feasibility study otherwise
80%

i
   
 

m State Government provides land and other basic
facilities through Industrial Development Corporations
this helps prospective entrepreneurs
m Most Basic requirement for any Industries
m Estates industrial sheds
m Entrepreneur to construct building takes lot of time
m Implementation of project get delayed
m Industrial Estate with readymade design
m It offered at very moderate rate of interest or easy hire-
purchase scheme
m Prominent factors in establishing any industrial unit

m Industrial development corporation supported by state

government and central government assist for
availability of these factors

m Sources of water supply and power

m Water supply and power are challenges before

industries. Checking water pollution and encouraging
use of renewable energy are possible solutions
Ô


 
mMrudula Gawde
m Chaitali Patil
mKunal Ghosh
m M Farhan Chaudhary
m Oamprakash Gupta
m Hrishikesh Chumble
m Bowsmika Vadlakonda
m Milind Naik
m Oam Panchal
mOohit Wadge
m Abhinav Dubey