DISTRICT INDUSTRIES CENTRE

INTRODUCTION

Karnal is one of the important Districts of Haryana State apart from the Historical importance; at present the District is Known for its central location on the National Highway, i.e. Grand Trunk Road, (G.T. Road) agricultural production of Rice, Wheat and Milk and as a center of Academic Institutions like NDRI, CSSRI and Wheat Directorate of Government of India; Karnal District lies on the western Bank of river Yamuna which- flows about 11 km. to the east forming eastern boundary of the district. The river yamuna separates Haryana from Utter Pardesh.

 HISTORICAL BACK GROUND

Karnal had a great historical importance since Mahabharata time and is named after King Karna. During medieval period it lost its importance, though the major battles were fought in its vicinity at Panipat in 1573 during Pathan period Ibrahim Hussain Mirza plundered it in his revolt against Akbar in 1739, Nadir Shah defeated Muhammad Shah at Karnal. Raja Gajpat Singh of jind captured Ladwa and Shamgarh situated at few Kilometers away from Karnal towards its north. Raja Gajpat Singh's son Bhag Singh lost Karnal to marathas first in 1787 and finally in 1795.
 In 1805, Britishers took over Karnal and handed it over to Muhamdi Khan and later they took it back and converted it in British cantonment. It was part and parcel of Panipat District which was created in 1842. Karnal became the Tehsil of Panipat District in 1851 with the head quarter at Gharaunda. Karnal was created as district in 1854 and also tehsil in 1868.

During Meerut Army's revolt against Britishers in 1857 sixteen villages in Naultha Jain of Karnal District refused to pay land revenue and attacked collector's camp Panipat which proved futile. They  captured Samalkha but afterwards was taken over by Britishers with the help of Jind and Patiala force. The wildfire of revolt had speed in the first freedom struggle.

For a long period the people of district Karnal continued their hecti cactivity of struggle. There was a renewed action when Lala Lajpat Rai addressed a political conference at Karnal in 1920. The fight continued till freedom of the country obtained in 1947.

TEHSILS, SUB- TEHSILS.

AT present Karnal, Distt. consists of five Tehsils Karnal. Assandh Indri, Gharunda and Nilokheri one sub-tehsil i.e. Nissing. Karnal Tehsil has a population of 8,86,770 (Area: 1,97,205.51 hectare) and Assandh Tehsil/Sub.Division has a population of 1,54,547 (Area:48,517.73) hectare

LOCATION

The Karnal District  including Panipat lies between 29'09'50" and 29'50' North latitude and 76 31' 15" and 77 12'45" East longitude, its height from sea level is between 235 and 252 meters. The Karnal District is surrounded by Kurukshetra District on its north-west, jind & Kaithal District on its west Panipat District on its south and Utter Pradesh on east.

PHYSICAL ASPECTS

Yamuna River forms eastern boundary of the district and flows from north to south. The district is a part of the Ganga-Sindus (Indo-Gangestic) plains and has a well spread net work of western Yamuna canal. Its geographical area has been divided in to three agro climatic regions, Khadar, Bhangar and Nardak belt. Khadar starts from Indri Karnal road one mile away from Karnal covering the area in between Yamuna river and national Highway Road No.1 upto Patti-Kalyana village. Bhangar area starts from west of Khadar area covering Gharaunda, development block. The nardak area lies in Nissing, Nilokheri and Assandh development block. However, its water is saline and not fit for irrigation.

AREA AND ADMINISTRATIVE SETUP

The total area of the Karnal distt. is 2475 sq. km Karnal and Assandh are two sub-divisions of the district. It has five Tehsils Karnal, Assandh, Indri, Gharaunda and Nilokheri and one sub-tehsil, i.e. Nissing. The district is under the overall charge of the Deputy Commissioner with Addl. Dy. Commissioner looking after the integrated Rural Development Programme. Each Tehsil is under the control of Sub-Divisional Officer (Civil).

IRRIGATION AND CLIMATE

The net irrigated area is 1,46,000 hectare while the gross irrigation area is 3,74,600 hectare percentage of the gross area irrigated to total cropped area is 98.72% Out of the net area irrigated 56,600 hectare is irrigated by Government canal and 90,400 hectare by Tubewells, the gross area irrigated crop-wise is wheat 103036 hectare Rice -155661 hectare Maize-2023 hectare Barley-206 hectare Bajra 1627 hectare In Distt. Karnal including Panipat there are four main branches of Yamuna canal called main branch, Delhi Branch, Delhi Parallel and Nek link with a Parallel , besides there are nine distributors called Nardak, Budhakhera, Karnal Bazida, Goll, Ghogripur Kheri, Gohana and Israna. The climate of district is dry and hot in summer and cold in winter. June is the hottest month while January is the coldest month of the year. Its maximum and minimum temperatures vary from 43 to 21.5' cin June and from 22' to 4'C in January.

Resources: Agriculture Scheme & Infrastructure.

The economy of the district is primarily agrarian and sizeable. Population of people (approx. 65%) is engaged in various agricultural activities. The main crops of food grain in the district are paddy in Kharif & wheat in rabbi. The district is the major contributor to the central pool from the state. Total food grain production in the district during 96-97 was about 10.72 lakhs M. Ton increase of about 16% per previous year.

PLANTATION/HORTICULTURE

Soil of the district is good for cultivation of all types of fruits and vegetables. Setting up of poly green houses for growing off season vegetables as above to raise disease free nurseries for various crops are also becoming popular among progressive farmers. One to locational advantage district offers vast potential for growing of flowers (Gladiolons, Tuberose, Roses.)

FORESTRY/WASTELAND DEVELOPMENT

As per details provided by D.F.O. an area of 7492.27 ha(including reserved forest area of 386.58 ha) was under forest coverd in the district as on 31.3.97. The deptt. provides sapling eucalyptus popular, Jammu etc. from their 15 nurseries to develop wasteland.

LIVE STOCK

The total animal population as per the animal census of 1988 was of which category wise animals were cows crossbreed 41282, indigenous-139427, Buffaloes 347205, sheep-42743, Goats-12489, Horses and ponies-2551, Mules-104, Donkeys-1950, Camels-57, Pigs-21150. the main breed available pure murrah, graded Murrah, Machi and ravi. As on 31.3.97 there were 658 poultry farms (128 layer and 530 broiler farms in the district with various capacity producing 7 Lakh eggs/daily and 7.20 lakh broiler per month. There are 12 hatcheries (for broilers)all in private sector. Animal Husbandry Deptt. is running extension centres at Karnal and Nilokheri where training facilities are provided.

FISHERIES

Catla, Rohu, Mrigul and Common carp are the main varieties cultured in the district. As per the basic data available from FFDA total No. of ponds in the district are 718 with a water area of 738.7 Ha cut of this 312 are pesemial with an area of 411.640 Ha. Most of the parts are in village land which are normally given to the farmers on lease for 5 years. The production during 96-97 was around 1061 tones.

EXISTING INFRASTRUCTURE:

1.Railway: The railway line between Delhi & Ambala runs parallel to G.T. Road; It is broad gauge double line track and connects the national capital to the city of Amritsar. Karnal is one of the important railway station on the route. Railway is being used for transportation of agriculture products like paddy, wheat etc. and industrial finished goods/raw materials, heavy machineries, any bulky articles and long distance haulage of many goods. New Delhi-Ambala line has been electrified. Karnal is 123 Kms. from Delhi and 130 Kms for Chandigarh.

2.ROADS: The total length of road (both metalled & unmetalled) in the district during the year 1990-91 was 1036 Kms, of which 32 Km. is the national highway and maintained by PWD (B&R), 986 Km. road are metalled state roads and 18 Km are unsurfaced roads. All the village have already been connected by road in Haryana State, besides important towns & villages are connected with regular state transport buses. The G.T. Road passing through the district connects it with the important trading/commercial center of Delhi and Punjab. The roads are maintained by the state Public works Deptt. and by the local bodies. 3.COMMUNICATIONS

Besides these, there is a  network of local PO booths, which are spread through out the district. Every village is linked up with the telephone connections. Escotel and Essar are providing mobile phone facilities in the town. Pager system has also been launched in the town with this the communications has been made easy, cheaper and accessible to all.

4. EDUCATION

Industrial training Institute at Karnal, Polytechnic and ITC at Nilokheri are imparting technical training and skills to the students. Vocational Institutes have been set up in different parts of the district catering to the needs of rural & Urban students. Prestigious institution N.D.R.I is a leading Institute in Northern India where students study in the subject of Microbiology, Milk products etc.

5. BANKS Karnal has well developed banking infrastructure in the urban as well as rural areas. There are 20 commercial banks in the District having 98 branches. The Karnal central Co-op. Bank Ltd. has 18 branches while primary Agri. Rural Devel. Bank (PARDB) Ltd. has 6 branches. There is a branch of HFC at Karnal. Karnal has highest number of branches of 54 followed by 16 branches in Nilokheri Block. The number of rural household per branch was 1177 in the District (Lowest 543 in Block Karnal, highest 1837 in block Nissing). The population per branch of the district is 10109 while that for the rural areas is 16378 and for urban areas is 46.39. The population per comm.Bank branches in the district is 13016 while that for rural branches is 21837 and for urban branches 5799.

6. CONTRIBUTION OF BANKS The total deposits of all banks in district karnal were Rs. 637.95 crores as in December ,1996 and Rs.674.48 crores as on March 1997 showing   increase of 7.32%. The total credit advanced in the district was Rs.679.16 crores as on December, 1997 against Rs.696.75 crores as on March,1997 The share of the commercial banks deposit (Rs.680.20 crores) was 94.2% of the urban deposit in December 1997 while that of the KOCB Ltd. was 6%. The share of the commercial bank advances (Rs.511.22 crores) was 73% while that the KOCB Ltd.(Rs.114.34 crores) was 17% PLDB (Rs.50.02 crores was 8% and HFC(Rs.20.58 crores) was 3% .

7.INDUSTRIAL ESTATES Present following industrial Estate have been developed by different state Govt. Department in the district.

HSIDC now also proposes to develop about 100 acres of land in phase-ii for industrial purpose.

WATER RESOURCES

As in April 1997, entire district has been categorised as Dark. The stage of development of ground water in all the six blocks is presently more than 100% . During the last year the district had a run of 10th successive years of good monsoon and received average rainfall of 857.00 mm as against normal rainfall of 602.00 mm. The main sources of irrigation in the district are tubewells and canals. As per deptt. of agriculture net area in the district was 2 Lac. ha. while 58000 ha. under canal irrigation and 142000 tubewell irrigated. According to deptt. the district has 55,199 tubewells of which 21658 tubewells are diesel operated and 33,541 are electric operated. 1) The whole of the district is already well irrigated. The Katcha water distributors are being cemented by HSMITC. ii) Sweet water is available. The district including Panipat there are four main branches of Yamuna canal, called main branch, Delhi branch Delhi parallel and NBK link with a parallel there are nine distributors called Nardak, Budha Khera, Karnal Bazida, Goki, Ghogripur , Kheri, Gharaunda & Israna.

EMPLOYMENT
No. of employment exchanges.	6
Total unemployed upto 94-95 as per live register	58452
Female unemployed upto 95-96 as per live register	12035
Registration during 93-94	15876
Persons employed during 93-94	326

ELECTRICITY POWER
1.	11 KV line	773881
2.	L T line	3274.878
3.	Transformer	1823 Nos
4.	Total No. of Connections	72957
5.	Domestic connections	50106
6.	Total energy consumed	1824.95 lacs units

HEALTH & FAMILY WELFARE
Hospitals	1
Dispensaries	16
Primary Health Centers	34
Community Health Centers	3
Unani/Ayurvedic/Homeopathic Institutes	26
No. of Institutes/lacs Population	18
No. of Hospitals 5 lacs  population	1
Birth rate	29.33
ESI dispensary	1
T.B. clinic	1

INCENTIVES

  SMERFH    

    Incentive Schemes for Small & Medium Industries

•     Incentives for ISO-9000 CERTIFICATION
•     Re-imbursement of Training Expenses
•     Re-imbursement of Stamp Duty Charges

     Small & Medium Enterprises Renewal Fund Societies of Haryana

1.  REIMBURSEMENT OF ISO-9000 CERTIFICATION  EXPENSES

        With the objective of promoting Quality Management Systems in the Small and Medium Industrial sector and for strengthening their products marketing and exports, the Society shall give away incentives to SMEs for acquiring  ISO-9000.  The Govt. of India has formulated a policy of giving away incentives to industrial units acquiring ISO-9000 certification.  A sum of Rs. 75000/- is given as subsidy to the ssi unit who is awarded ISO-9000 certification.  So supplement Govt. of India policy, SMERFH shall give Rs. 50,000/- or 50% of the expenditure, whichever is less, incurred in acquiring ISO-9000 equivalent certification if the unit has not availed the incentives of Government of India.  If the unit has availed the incentives granted by Govt. of India then no subsidy will be reimbursed to the unit by SMERFH.

       ELIGIBILITY

1. Small &  Medium industrial units with fixed capital investment upto Rs. 500 lacs shall be eligible for grant of incentives.               
2. Submission of copy of ISO-9000 or equivalent certification to the SME industrial unit.
3. Documents showing payment of charges (invoices & receipts) made to the certification agency, counsel and purchase of machinery.
4. The application should reach the Department for examining the case within 9 months from the date of issue of ISO-9000 or equivalent certification by the certification agency.
5. An affidavit from the unit that they have not received any subsidy from Govt. of India

2. REIMBURSEMENT OF TRAINING EXPENSES UNDER ENTREPRENEUR TRAINING PROGRAMME.    

            Suitable training programme will be arranged for improving the skills and managerial effectiveness of entrepreneurs and their first line Managers, through well accredited training agencies, of the Small and Medium  Industries.  Help of industries associations and NGOs providing training facilities shall be availed in arranging such programmes.  The special emphasis will be on Quality improvement, Total Quality Management, Modernisation, Technology upgradation, Marketing and reduction in costs.

        The entrepreneurs/ Ist line Managers possessing graduate degree in engineering/masters degree in management shall be considered for incentives for participating in the training programs arranged by Govt./Semi Govt. agencies.  Tuition  fee upto a maximum of Rs. 5000/- shall be considered  to be paid for a training course to a SME Unit.  In case of residential courses with built-in boarding and lodging charges, 50% of course fee or Rs. 10,000/- whichever is lower shall be paid to the entrepreneurs on successful completion of the course on production of certificate from the Govt./Semi Govt./Govt. approved training institute.

        Small and Medium industrial units with fixed capital investment upto Rs. 500 lacs shall be eligible for grant of incentives 

3. REIMBURSEMENT OF STAMP DUTY CHARGES FOR REGISTRATION OF LOAN DOCUMENTS.

          An entrepreneur has to get his loan documents registered for availing loan from Financial Institution or commercial Bank and Stamp Duty charges are paid to the State Govt. presently, no stamp duty is levied for registration of loan documents, in case of SSI Units.  However, stamp duty @ 1.5% of loan amount is charged from medium scale units for registration of loan documents.  Registration expenses shall be subsidised to the extent of 50% of the stamp duty charges for medium scale units of Haryana State, in case, they are availing term-loans from any Central/State Financial Institutions.  The amount shall be reimbursed after the entrepreneurs has incurred the expenditure and submit proof in lieu thereof.

        Small and medium industrial units with fixed capital investment upto Rs. 500 lacs shall be eligible for grant of incentives.

4. INTEREST SUBSIDY SCHEME UNDER MODERNISATION PROGRAMME

          The SME sector has played an important role in making the country self-sufficient in a number of items.  But many of the units are still operating with out-dated technology, using equipments of old designs which are less productive.  As a consequence, the industry is faced with high cost of production, poor quality, and low productivity.  With the consumer becoming more quality conscious, the small and medium scale industry has to keep abreast with the latest, appropriate and relevant technology in their field of operation to remain competitive in the market.  Technology up gradation and modernisation have become imperative for the SMEs to keep their share live in the market.

           Technology up gradation would ordinarily mean induction of State-of-the-art or near State-of-the art technology.  Accordingly, technology levels are bench-marked in terms of machinery/processes & technology levels lower than that specified in the diagnostic study will not be permitted for funding under the scheme.

        In order to encourage small and medium industrial units to adopt modern techniques by way of purchase of modern machines, tools etc. and in order to increase productivity, reduce the costs and improve the quality of products, following package of incentives shall be provided under SMERFH modernisation programme.

   INCENTIVES

1. Reimbursement of expenses towards diagnostic study, if required from approved/specified agencies    subject to a maximum of Rs. 25,000/- per unit.

        SSI units covered under SIDBI's Technology Development and Modernisation Scheme (RTDM) and assisted by Haryana Financial Corporation/commercial banks and State/Central FIs wil not be required to undertake any diagnostic study.  Small and Medium scale units who intend to get     the studies conducted in their units for modernisation/upgradation from consultants can avail the assistance upto Rupees 25,000/- under this scheme.

2.  Interest shall be reimbursed upto 5% and 3% for a period of 5 years to industrial units in        small            scale and medium scale respectively subject to a maximum of Rs. one lac per annum.  However, those SSI units which are availing financial assistance from HFC or commercial banks under SIDBI's Technology Development & Modernisation Scheme ( RTDM) will be reimbursed interest @ 3.5% p.a. with a maximum limit of Rs. one lac per annum.  This is so because a rebate of 1.5% p.a. is already available to the units from HFC/banks under RTDM Scheme.

        If an account becomes a non-performing asset (NPA), the interest reimbursement would not be available, the interest reimbursement will be available from the date of coming out of the NPA category.  In default-free rescheduled cases reimbursement will be as per the original repayment schedule.

ELIGIBILITY CONDITIONS

1. Applicant unit should be a SME Industrial Unit registered with GM, DIC or Govt. of India with fixed capital investment upto Rs. 500 lacs and its works (manufacturing facilities) should be located in the State of Haryana.

2. The unit should be in existence for at least for the last three years.

3. Only new machinery shall be eligible for incentives. However, second hand imported machinery with vintage upto 5 years can be considered.

4. Balancing equipments, waste reduction equipment and any other machinery equal to or higher than bench-marked technology specified in diagnostic study will be considered for incentives by a committee consisting Technical Expert (ME/CE) Coordinator (IAG) and representatives of HFC.

5. The following investments will also be eligible to the extent necessary towards the plant and equipment to be installed for Technology Up gradation and towards total of such investments will not normally exceed 25 % of the total investment in such plant and machinery.

   a)    Land and factory building including renovation of factory building and electrical installations.

   b)    Energy Saving Devices

   c)    Effluents Treatment Plant.

   d)    Water Treatment Plant for captive industrial use.

   e)    Captive power generation.

   f)    In-house R& D including design studio.

   g)    Information Technology including ERP.

   h)    Total quality management including adoption of appropriate ISO/BIS standards. 

5        TESTING EQUIPMENT SUBSIDY SCHEME

            In view of the importance of quality of products, the SME industry have to upgrade the quality of the products for which they are required to process testing facilities for testing of raw materials and end products. In order to encourage entrepreneurs to have testing facilities at their door steps, expenditure on purchase of testing equipments shall be subsidised from the SME renewal fund .  Subsidy to the extent of 50% of the value of the equipment subject to a maximum of Rs. 50,000/- shall be disbursed to SMEs units. The interested SMEs should apply to G.M. DIC in prescribed Performa within three months from the date of actual receipt of the testing equipment.  The subsidy will be admissible on the purchase of new testing equipment only.  The units will not disposed off the testing equipment purchase for period of five years by way of sale, transfer, gift, exchange, mortgage etc. without the prior permission of Director of Industries, Haryana.  The applicant shall have to furnish a personal surety of persons who should be solvent for the double the amount of subsidy applied for or a bank guarantee for the amount of subsidy to avoid misutilization of the subsidy amount advanced. 

6.        TECHNOLOGY GENERATION THROUGH RESEARCH AND  DEVELOPMENT 

            Two main indicators of technology activity are R&D investment and patenting.  In general, it is seen that the countries that excel in R&D investment and patenting, also excel in exports.  A patent can be seen as the basic product of technology activity which includes R&D investments.  It is an intangible asset, it gives its holder a monopoly and has market value.   The patent recognises an invention, which may be in industrial process, or for a new product for material.  Under this scheme the society shall provide incentives to the small and medium industrial units of  Haryana who are awarded patents for the technology generated by them.  The small and medium industrial units shall be given one time grant-in-aid of Rs, one lakh whose item of manufacture is awarded patent by Govt. of India.  Small and medium industrial units with fixed capital investment upto Rs. 500 lacs shall be eligible for grant of incentives. The application forms can be obtained from the office of General Manager, D.I.C., Karnal.       

DETAILS OF CANDIDATE INDUSTRY

Basic requirements for development of industries in any area are the availability of resources like raw materials, power, infrastructure facilities, trading centres, educational facilities and above all entrepreneurship. Karnal district has all these primary requirements for a rapid development of small scale sector in that area. The district has emerged as  agricultural implements town. The availability of fairly good agriculture resources live stock gives scope for setting up industries based thereon. On account of its location on G.T. Road and main Railway line and also proximity to national capital Delhi there is good scope to establish new industries based on the raw material availability.

Criteria for identifying candidate  industries:-

For identification of candidate industries through analysis local resources, infrastructural facilities available for industrial development and requirement of various goods & services is made and industries suggested based on the demand potential. Moreover, traditional skills available in the area which could be also identified for promoting such industries in the area which have a key role in the economic development in any rural backward area.

Small Scale Industries:-

Field investigations have revealed that the district has potential for development of small scale industries in the area like handlooms, agriculture, textile, machinery agro based industries, industries based on agriculture, waste material and other local resources available in the district. Some cottage industries like leather based units desi juti footwear, leather garments, tannery etc. can also be set up in the district. While recommending new industries the demand of manufactured products has to be assured within the district/state and also in the country and the demand potential taken into consideration.

Resources Based Industries

Agro Based industries In view of the available resources the following industries have good prospectus for development in the district:- Rice Mill,  Solvent Extraction,  Mustard Oil , Sun Flower Oil , Flour Mill ,Card Board Unit

Mineral based Industries:-

District is poor in respect of mineral resources. No mineral is available except sand which is found parallel to Yamuna Belt of the district, being used locally for construction purpose. There are number of brick kilns engaged in manufacturing of bricks and tiles to meet the local demand of the area for construction purposes.

Live stock based Industries:-

1) Poultry/Hatchery ii) Milk Plant iii) Animal Meat iv) Egg Powder v) Animal Glue vi) Tannery vii) Fish Farming

Forest Based Industries:-

Forest products have an important place into in rural and urban economy of the district. Forest supply supports saw mills, wood-based industries and paper industries. (The district is poor in respect of forestry, there are however a number of units engaged in manufacturing of wooden furniture. These units are mostly located at Karnal. Besides, there are number of cottage type units for wooden furniture scattered through out the district and working with traditional hand tools. It is felt that there is a need to improve their working technique. Some mfg. units in the line of wooden furniture with modern wood work machines can be set up. The trees of Eucalyptus are found in the district mostly side by side to roads, canal banks and other compact plantation areas. In view of the above there appears scope for extraction of Eucalyptus oil which is being used in Ayurvedic medicines and few small scale units can come up in the line of production.

Demand/Skill based industries:-

Food products have good domestic demand as such these units can come into existence. There is good production of spices, hence units can be setup for grinding & packing of spices. If these units obtain 'AG MARK' certificates from the Govt. this mark will help in marketing. The important vegetables grown in the district are onions, potatoes, cabbage, peas carrot etc. These vegetables are either consumed locally or sent to Delhi. The demand for these dehydrated vegetables is rising on account of increasing demand from armed forces, increase in the level of income change of taste and habits etc. Bakeries and breads are the other industries which can be setup on the basis of local and outside demand. Clothing is the basic need of every human being. With the growing civilization, the trend for using readymade garments is increasing day by day. Ready to wear garments have been finding more acceptance in the domestic as well as export market mainly due to low cost of fabrication. Readymade garment can be mainly export oriented . Karnal being closer to Delhi and center of textile has good scope for developing this industry. The following industries have further scope in the district:

• Paper product: Like card Boards, File Covers, rexine footwear.
• Leather & rexine products Leather jackets, Handgloves, handbags, rexine footwear.
• Rubber Products: Hawai Chapels, Rubber moulded goods, Oil seals.
• Plastic Products: PVC pipe, shoes, baby cycle, plastic bottles, plastic packaging materials.
• Chemical & Chemical products. Medicines, Soap, detergent powder, Sulfuric Acid.

Mechanical Engineering:

The agriculture implements mfg. in the district are not only sold locally but also find a market in other states and today are being exported also. There is good market for the product and as such few units of agriculture implements can be setup with the increase in the constructions as the demand for rolling shutters grills gates increasing. Being an agrarian economy there are number of tractors owned by the farmers and the demand for tractor parts, bolts, pulley exist.

Electronics and Electricals Industries.

With rapid pace of industrialization in the district there appears to be a scope for various electric items.

Misc. Industries

Besides, industries mentioned above there are a number of other industries which do not come under the preview of SSI such as cold storage, cotton ginning etc. and printing having scope in the area.

Small Scale Establishment:-

Govt. has decided that industry related service/business enterprises with investment upto Rs. 5 Lacs in fix assets excluding land & building can be registered with D.I.C. Following SSBE units are enlisted as:- i) Type retreading ii) Motor Winding iii) Agril-Impls. repairing workshop iv) Auto repairing workshop v) T.V. radio repairing workshop vi) Domestic Elect. appliances, repairing workshop. vii) Cycle repair shop.

ANCILLIARY AND DOWN STREAM INDUSTRIES.

There is a good scope of setting up of small scale tiny industries unit, working as ancillary to liberty group. These units can be engaged in the manufacturing of shoe laces, shoe uppers etc. As Karnal district is having largest number of Rice Shellers there is a good scope of jute bag manufacturing units including printing, because most of the Basmati Rice is packed in small packing of jute bag ranging from 5 Kg. to 100 Kg.

TRAINING INSTITUTE.

The traditional skills available in the district are Weavers, Carpenters, Blacksmith, Tanners shoes makers etc. The main occupation of the people in the district are agriculture trade and service. In spite of running a number of ITIs in the district there is dearth of skilled personal and such they have to be brought from outside the district at higher wages At present state Govt. is running ITIs/Polytechnics at karnal & Nilokheri. Keeping in view the demand for rice sheller operators in the district, ITI has recently planned to start a 2 Years course on rice sheller plant technology and maintenance.

Common Facilities center, Department of industries, Haryana has set up a quality marking center for leather at Karnal. The center is manned by qualified persons who provide technical knowledge and guidance to the potential entrepreneurs. The center also helps in upgrading of quality of the products.

S.I.S.I. Karnal :-

Government of India, Ministry of Industry has set up S.I.S.I. Karnal which provides consultancy services in different fields like technical, managerial, economic and statistical etc. to existing small scale units and prospective entrepreneurs. Besides the institute conducts entrepreneurial development programme, management development course, motivational campaigns, seminar for the benefits of entrepreneurs. There has been tremendous increase in private institutes which provide training in computer, data processing, food processing, designing , thus helping training of man power required for the industry. other institutions of national importance are National Dairy Research Institute (deemed university), Regional wheat research center, Indian Agricultural Research Institute (deemed university). Regional wheat research center, Indian Agriculture Research Institute, Regional education center of IGNOU and H.A.U. central soil salinity Research Institute and sugarcane breeding regional research center.

EXPORT

Karnal has become a major city of the state from Export point of view. At present number of units with their products have occupied an important place in the foreign market in rice, shoes, which are being exported to European, Asian, and some other developed countries. It is expected that the demand of these products would increase in the future. It is suggested that Govt. should provide all the required facilities to the exporting units as they earn valuable foreign exchange for the nation.

VILLAGE INDUSTRIES

A vast majority of population resides in the rural areas of the district. The aim of Govt. New Industrial policy is to exploit the resources fully with a view of generate more employment opportunities in the rural area. It has become necessary to develop small entrepreneurs mainly by self employed artisans at village level by utilizing the local resources fully. Efforts are being made in this direction by the Haryana Govt. and a number of incentives, subsidies under R.I.S. have been announced in the state's New industrial Policy. The KVIC is formulating the policies and state KVIC are implementing the programmes for development of village industries in the district. In view of these industries which may be encouraged as village industries are listed below:- 1. Processing of cereals & pulses. 2. Village Carpentry & black smithy. 3. Tannery. 4. Desi Jutti. 5. Bee Keeping. 6. Ghanies. Further it is mentioned that HKVIB helps the rural artisans by providing all the facilities. The function of the board is to develop and extend the Khadi & Gramodyog Industry in the state. The main objectives and functions of the board are as follows:- a) To arrange for training of persons engaged in Khadi & village industries. b) To arrange for distributions of raw material & tools among the persons who are engaged in the production of KVI Products c) To arrange for marketing of KVI products. d) To provide financial assistance. e) To encourage the spirit of co-operative among persons engaged in the KVI industries. Industries which come under the jurisdiction of the board are as follows. 1) Khadi clothes which are made from cotton, woolen silk on handloom village industries. 2) Village Industries:- An industry established in rural area run with or without power and process any product where fixed capital per employee does not exceed Rs. 15000/- KVI B provides economic assistance to artisans to purchase the tools with 50% subsidies and 50% loans.

FINANCIAL CORPORATION

The Haryana financial Corporation is an agency which grants financial assistance to medium & large & small scale industries. Corporation advances loan upto Rs.90.00 lacs in case of private/public limits companies and Rs.60.00 lacs in case of proprietary/partnership concerned at various interest rates i.e. minimum 11.5% of maximum 19% for acquiring fixed assets like land, building, machinery and equipment's etc. The corporation came into existence after the re-organization of Punjab Financial with effect from 1st April,1967. Presently HFC is also operating number of schemes for engineering persons, SC/ST, EX-serviceman and woman entrepreneurs. Recently HFC has started advancing composite loans to small scale units whose cost of project including working capital margin does not exceed Rs. 20.00 lacs and total working capital requirements is up to Rs. 10.00 lacs.

Haryana State Small Industries & Export Corporation.

The corporation came into existence in July,1967 after the partition of joint Punjab and is playing a crucial role in the rapid industrial development of the state by assistance units, by supply of scale raw material, marketing of products of small scale units, marketing's assistance to RI units and export assistance. It has 16 raw material depots in Haryana. Material supplied are iron and steel, pig iron, paraffin wax, chemicals etc.

Haryana State Industrial Development Corporation.

The HSIDC was setup in 1967 and playing  a role for rapid pace of industrial development in the state. The main objectives and functions of the corporation are as follows:- 1) Identifying and promotion medium & large scale industries projects in public/joint assisted sectors. ii) Financing of medium & large scale industries through underwriting of participation in shore capital of companies, grant of term loans to them and issue of guarantees on their behalf. iii) Setting up of industrial estates and developing infrastructure facilities. iv) Term lending to industrial units under the refinance of IDBI. HSIDC provides loans upto Rs.150.00 lacs payable with in a period of 10years. Loans can also be obtained through commercial Bank. Further, it is also mentioned that terms loan above Rs.240 lacs are available from all India financial institutions like IDBI, ICICI etc.

EXPORTS

Karnal has become a major city of the state from export point of view. At present number of units with their various products have occupied an important place in the foreign markets particularly in Rice and leather shoes. The total export during 2000-2001 was Rs.61437.05 lac.  It is expected that export will increase in the near future.  

SPECIAL INFRASTRUCTURE NEEDED

Industrial development of any area depends on availability of raw material, basic infrastructure, organized market for finished products, entrepreneurship etc. It is essential to take into consideration every aspect including demand of various products/services not only in district but also in state as a whole. Karnal district is one of the districts in state which has advantage of proximity to national capital Delhi-one of the largest centres for trade & commercial activities . All infrastructural facilities like National Highway (G.T.Road), Roads Communications Services transportation power etc. are available for industrial development in the district. In order to implement the programme of industrial development the following aspects should be given the consideration.

ENTREPRENEURSHIP

During the field survey it has been observed that entrepreneurship was generally satisfactory particularly in urban areas but lacking in rural areas. The possible reason can be predominance of agricultural and allied activities. In this regards, Govt. promotional agencies can play a key role and they will have to do much more than what has been done so far to develop entrepreneurship among the people by organation enterpreneurship motivation programme at important places of the district from time to time. Wide publicity should be given by the SISI and other nodal agencies regarding various incentives, facilities available for industrial activities in State. Attention may be given in selection of right type of candidates , product identification and project formulation to ensure better services in setting up and running of small scale industrial units.

NEW INDUSTRIAL AREAS

Industrial development has taken place in areas near to G.T. Road in district. Concentration of Agro based/agriculture implements industry in karnal, urged the need to develop labour colony around the industry as most of the labour comes from far off villages and outside the state. Keeping in view the anticipated industrial growth in the distt. There is good scope for carving out a new industrial estate in karnal city. Further more, there is a scope for industries at the Panipat- Karnal border due to setting up of Panipat refinery at village Bohli. In district there is no industrial Zone, where industrialist can setup industries without any hindrance, except a few limited pockets that villages Kohand to Panipat district boundary. Daha-Bazida road, Kutail Road of Gharaunda block be declared as industrial zone. Steps are also being taken at district level for declaration of this area as industrial zone. The existing area under industrial use is approx. 102 Hects. Keeping in view the location, wind direction 313 North West, South East, infrastructure available, floodable and natural trends a planned industrial area of 415 hectare adjoining the existing HSIDC, Sector-3 and Sector-4,41,42, and some area on G.T.Road (Near Old Mugal Canal) is proposed.

TECHNICAL SKILLS

Technical skill plays a key role to accelerate the pace of industrial development in an area. It is suggested that one engineering college with textile and mechanical engineering discipline and vocational training institute to train the manpower available at various locations may be setup. A sophisticated dye-house with modern amenities is needed to look after the demand of textile/handloom industry at kohand.

MARKETING

Field investigations have revealed that rural and small scale units find problems in marketing their products. There is also need to explore more marketing avenues for the sale of products of these units in consultation with the Associations. Priority should be given to products of R.I units in consultations with the Associations. Priority should be given to products of R.I units in Government purchase programmes.

RAW MARKETING

There is a large concentration of Engineering foundry industries using iron & steel, pig iron at karnal. The opening of stock yard by steel authority of India is necessary in order to provide facilities for supply of raw materials to these units. Besides, there is a necessity of opening coal dump by coal India Limited at Karnal to ensure smooth supply of coal and hard coke to the industrial units in area.

POLLUTION CONTROL

Most of the units have been setup on both side of the G.T. Road where is an urgent need for proper disposal of industrial effluents and waste water to maintain hygienic working conditions in area and check pollution caused by the industries. During the field visits, discussions were held with the associations/entrepreneurs and was felt that there is a need to educate the local entrepreneurs about labour laws in order to avoid unnecessary harassment. Although, the district is rich in respect of electricity and water as mentioned in foregoing chapters, power tripping or breakdown is a common phenomenon which hampers the industrial production and results in poor capacity utilization. Delays in new power connections to SSI units has also adversely affected the industrial development.

CREDIT REQUIREMENT

As per district credit plan for the year 1998-99 prepared by lead Bank karnal, they have placed the target for SSI sector by banks and H.F.C. as under:-

P.M.R.Y.

In order to remove the unemployment among educated youth, the Govt. of India had announced in 1983 a scheme Named SEEUY was implemented by DICs, which is now called PMRY. The objective of the scheme is to encourage the educated Unemployed youth to undertake self employment venture in industry business & service through the provision of a matriculate in the age group of 18to 35 and for Women/SC persons the age limit is 18 to 45 years, their family income is below 40,000/- per annum. Women and technically trained persons are given due consideration. An amount of Rs. 1.00 lacs is granted as loan with 5% margin and a subsidy is also provided. During 2000-2001 a target of 500 was fixed and 523 cases were got sanctioned from banks and the same was achieved. The loan under PMRY Scheme was disbursed to 306 beneficiaries till 31.3.2002 and training was provided to 389 applicants as on date. 

PRESENT INDUSTRIAL STRUCTURE

General Industrial Climate

District Karnal is not lagging behind with other districts of the state in the development of small scale as well as medium and large scale industries. Karnal is internationally reputed for its Agro and Agriculture implements products. Its location and proximity at Delhi gateway of international market gives tremendous boost to its industrialization. Except Karnal and Gharaunda, blocks of district, rest of blocks-Nissing, Indri, Assandh, Nilokheri has already been declared by state Govt. industrially backward areas of the district. By the passage of time Karnal district has witnessed a phenomenal growth in all spheres of development, particularly in industrialization and urbanization process. This development could be possible mainly because of the availability of entrepreneurship, basic infrastructural facilities and economic resources in the area. Field investigations have revealed that growth of small scale and medium and large industries has been quite impressive. The detailed particulars of the existing large & medium scale as well as small scale sector are discussed below.

Large & Medium Scale Industries

On the industrial front, rapid strides have been taken during the last years. At present, there are 13 medium & large scale industries existing in the district. The total fixed investment in the sector is estimated to be about Rs.9579.55 lacs. This sector provides direct employment to 3480 persons and accounts for production to the tune of Rs.9579.55 lacs as on 31.3.2002. The large scale units are engaged in the manufacturing of sugar, shoes, dehydrated vegetables, woolen fabrics, edible oils by solvent extraction process, rice, milk products.

Small Scale Industries

Karnal has achieved a phenomenal growth in the field of small scale industries sector. Earlier most of the small scale units were engaged in the Agriculture implements sector but after partition all round industrial development has taken place in the district. As on 31.3.98 the number of small scale units registered with the industries departments was 3754. Earlier the units were mostly engaged in manufacturing wheat flour, shoes, Hawaii Chapel electricals, non worsted yarn, wood sawing, rope bags, leather & leather products agricultural implements, casting, food products, agro chemicals, wood products textiles & agricultural implements. The industrial development in the area is the result of sincere efforts on the part of the entrepreneurs and potentialities of the area. The incentives and facilities have also played as important role for industrial development in the district.

DIC | IndustrialDevelopment | Industry Policy-2005(Haryana)| SISI