Youth under the age of 35 in Rajasthan would be facilitated with funding for their industries along with land. The Government of Rajasthan is intended to encourage the youth and industries by offering concession under Rajasthan Industrial Incentive Scheme; the movement would help the youth to move forward. Considering forthcoming elections in the state, the government has decided to develop a cluster of small and medium sized industry through the Department of Industries and RFC. The projects from young entrepreneurs would be selected on basis of competition.
The selected youth would be offered loans on easy terms and low interest rates. RIICO would avail land in industrial area on lesser reserved rates and similarly the Department of Industries would offer additional rebates in terms of electricity, duty, vat and excise. There is a provision in RIICO to allot 30% land for small scale industries on reserved rates but in this scheme more than 30% industrial land would be availed in further less reserved rates.
Had to Take Decision: Small and Medium sized industries are in danger in the state. The village cottage industry in rural areas has almost died due to lack of quality, modern technology and marketing networks. The government has encouraged giant industries only in the name of capital investment from past one decade. Meanwhile the issues and problems of small scale industries have been overlooked. Large population is connected with tiny, small and medium scale industries and the government is trying to add them into their vote bank through reforms.
Government Undertaking is in Crisis: Several government undertakings providing relief to small scale industries, royal craftsmen and artisans is passing through a period of financial crisis from past several years. Certain undertakings are even striving for their wages. The government has provided financial aid to overcome the situation. Such undertakings include Rajasthan State Weavers Association, Rajasthan Small Scale Industries Corporation, National Handloom Corporation, SpinFed, Khadi and Village Industries Board etc.
Investments Increased – Not Industries and Employment: During the last seven years investment in small scale industries has risen but it has failed to generate proper employment in the region. The statistics from Department of industries revealed the facts that the investment has gone up from 155192.90 Lacs to 278806.43 Lacs from 2006 to 2012 but the employment rate in respect to investment has not moved much.
Self Help Groups are Not Considered as Small Scale Industries: There are around 2.50 Lac women in the state who are engaged in self help group to generate employment. The state government does not consider them as Small Scale Industries. These groups are involved in activities like making Papad, Rakhis, Mangori, Pickle, Stitching etc. Some women are running dairies too. According to the officials of Department of Industries that they face problem in registration as there are multiple proprietors are involved in the group and banks also avoid providing financial aid to such projects. It is recommended that such self help groups must register themselves as an institution to avail the benefits offered by the state government.
Problems of Small Scale industries:
- Increasing competition in the market.
- Lack of marketing networks.
- Lack of managerial capacity and staff.
- Lack of skilled and trained workers.
- Poor quality of products.
- Do not get government incentives.
- Lack of appropriate resources.
- Rising costs and declining profits led to closure.
- Lack of marginal money.
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NavdeepMay 16, 2013 at 12:22 pm
Will RFC go through an unbiased selection process? or is it that the people with the so called “JACK” will get their projects selected?
Still wondering whether the Govt. is bankable or not!