CHAPTER -XV
Industry and Mining

15.1.0 Assam continue to make efforts for gearing up industrial activities with a view to create a strong industrial base by harnessing the un-tapped resources available in the State through various growth inducing factors besides taking steps for removal of existing infrastructure inadequacies. The Industries and Commerce Department of the State as well as some other agencies like AIDC are closely associated with implementation of various promotional schemes meant for industrial development of the State. Despite various constraints a favourable industrial climate is gradually being created in the State as discernible from the increasing interest shown by investors of the State as well as from outside. The Index of industrial Production in the State moved up to 132.46 in 2002-2003 from 125.87 in 2001-2002. The contribution of Manufacturing sector to the total economy was 10.1 percent at current prices in 2002-2003 which is however, not much encouraging.

NEW INDUSTRIAL POLICY FOR THE STATE:

15.1.1 The Industrial Policy of Assam, 2003 has been formulated in the light of the experience of implementation of the Industrial Policies of 1982, 1986, 1991 and 1997.

The Industrial Policy of Assam, 2003 is formulated to achieve the following aims and objectives.

1. To increase the share of the Industrial sector to the State Domestic Product (SDP) from the present level of 13.29 per cent to a level of at least 18 per cent at the end of the terminal year of the policy.

2. To generate more employment opportunities in the State.

3. To ensure development of adequate and appropriate infrastructures for industrial growth.

4. To make Assam one of the preferred destinations for investment for outside investors.

5. To encourage private investment in industrial infrastructure projects.

6. To ensure industrial development in hitherto industrially backward regions of the State.

7. To create avenues for sustained growth and development of the Small Scale and Tiny sectors.

8. To catalyse administrative and legal reforms with a view to simplify the procedure and to ensure time bound disposal of matters.

9. To take steps to promote rural handicrafts so as to conserve and enrich cultural heritage, traditions and customs of the State.

10. To promote establishment of medium and large-scale mother industries to create an industrial base, offering large-scale employment opportunities through backward and forward linkages.

11. To promote Information Technology, high-tech, knowledge based and biotech industries.

12. To promote export oriented industrial units.

13. To take steps to revive the potentially viable sick Public Sector Undertaking and to make the Public Sector Undertakings economically viable.

14. To provide Single Window Clearance of industrial proposal.

The policy has been made effective from 1^st October 2003 and will be valid for a period of five years, i.e. upto 30^th September 2008 unless modified/terminated earlier.

REGISTERED FACTORY:

15.2.0 As epr information available from office of the Chief Inspector of Factories, Assam, 183 Nos. of new factories were registered in the State under the Factory Registration Act during the year 2002-2003. The target and achievement of the State Inspectorate of Factories for the last few years are furnished in the Table – 15.1 while Table – 15.2 shows the trend of registered factories and their employment in Assam.

TABLE – 15.1
TARGET AND ACHIEVEMENT OF THE INSPECTORATE OF FACTORIES, ASSAM

TABLE – 15.2
NUMBER OF REGISTERED FACTORIES AND EMPLOYMENT

Data available on District-wise distribution of Registered Factories reveal that during 2002 the undivided Kamrup District had the highest number of 573 factories with 11,948 workers as against 521 factories with 12,625 workers in the previous year while the Dhemaji District had the lowest i.e. 3 Nos. of factories with 65 workers during the year. The District-wise distribution of Registered Factories and average Daily Number of employment in the State for the year 2002 is furnished at the Appendix.

ANNUAL SURVEY OF INDUSTRIES (ASI):

15.3.0 The Annual Survey of Industries provides some basic characteristics of the industries under manufacturing sector. The ASI results of 2001-2002 (Provisional) reveals that Assam have 1423 Nos. of functioning Registered Factories with an employment of 111030 persons against 1435 Nos. of Factories with 112542 employees during the previous year. The results also show that the value of output decreased by Rs 723.18 crore during the year 2001-2002 over the level of the previous year. The income by factories for the State was Rs 774.20 crore in 2001-2002 as against Rs 1019.13 crore during 2000-2001. The Table 15.3 shows some basic characteristics of Annual Survey of industries in Assam for last four years.

TABLE – 15.3
SOME PRINCIPAL CHARACTERISTICS OF ANNUAL SURVEY OF INDUSTRIES IN ASSAM

INDUSTRIAL ESTATE AND INDUSTRIAL GROWTH CENTRE:

15.4.0 There are 12 Nos. of Industrial Estates and 7 Nos. of Growth Centres under the Department of Industries and Commerce, Assam. The total number of sheds constructed in the Industrial Estates are 348 and the number of sheds functioning are 234 out of 340 sheds occupied till 2002-2003.

SMALL SCALE INDUSTRIAL UNITS (SSI):

15.5.0 The Small Scale Industries has a vital role in the process of industrialization of the State. There are more than 44,000 SSI units in Assam employing about 1.85 lakh persons till the year 2002. The Table – 15.4 shows the numbers of new units of various types of industries established during the last three years.

TABLE – 15.4
NUMBER OF NEW UNITS ESTABLISHED BY TYPE OF INDUSTRIES

REVIEW OF THE S.SI. UNITS AND HANDICRAFT

INDUSTRIES UNDER 9^TH FIVE-YEAR PLAN (1997-2002):

15.5.1 For development of Small Scale and Handicraft Industries the outlay for 9^th Five Year Plan was fixed at Rs 5763.00 lakh out of which Rs 445.00 lakh and Rs 394.00 lakh were fixed for Tribal Sub-Plan and Schedule Caste Component Plan respectively. The physical target proposed and achieved in respect of SSI and Handicraft Industries under 9^th Five Year Plan are shown in the Table – 15.5.

TABLE – 15.5
TARGET AND ACHIEVEMENT OF SSI UNITS AND HANDICRAFT INDUSTRIES UNDER NINTH FIVE YEAR PLAN

INDUSTRIALISATION DURING TENTH FIVE YEAR PLAN:

15.5.2 To encourage industrialisation, the 10^th Five Year Plan has given thrust on the objective to provide adequate infrastructure facilities for setting up of Industrial Units particularly SSI Units, Tiny Units, Handicrafts Units and Small Scale Business Enterprise.

The outlay for 10^th Five Year Plan is agreed at Rs 5450.00 for establishment of Small Sale & Handicraft units in the State. The outlay fixed for the Annual Plan 2003-2004 is Rs 1095.00 lakh.

PRIME MINISTER ROJGAR YOJANA (PMRY):

15.5.3 The Prime Minister Rojgar Yojana is another Scheme of Central Government implemented in the State to encourage the unemployed youths for establishment of Small Scale Industries, which in turn help in generation of employment and industrialisation. The scheme is being executed by State Department of Industries and Commerce. During the year 2002-2003 a total of 18187 applications were recommended for providing loan under PMRY and out of these sanction was given to 9712 applicants. The following table gives an idea about the performance of PMRY scheme in the State during the last few years.

TABLE – 15.6
PERFORMANCE OF PMRY FOR LAST FIVE YEARS IN ASSAM

SERICULTURE:

15.6.0 Sericulture is one of the most important agro-based labour intensive traditional rural industries of the State comprising culture of different varieties of silkworm. Rearing of Eri, Muga and Mulbery silk warm are playing an important role in the economic development of a large section of rural population of the State since about 1.73 lakh families are directly or indirectly involved with these culture. It is reported that the State has produce 92 M.T. of Muga Silk and 635 M.T. of Eri Cut cocoon during 2002-2003 which account for as much as 95 per cent and 80 per cent respectively of the total production of Muga Raw Silk and Eri Cut cocoon in N.E. States. The Oak Tasar Silk Worm rearing has been developed in the State and is now being practiced in the two hills districts. The State has monopoly in production of Golden Silk in the world as about 99 per cent of Muga Silk is produced in Assam.

During the 10^th Five Year Plan, the Directorate of Sericulture has implemented various schemes under the State Plan for development and expansion of Sericulture in the State. Some of the major schemes are as follows.

i) Development and expansion of Eri, Silk, Muga Silk, Mulbery Silk and Tasar Silk.

ii) Research and Training Scheme in Sericulture.

iii) Scheme for Cocoon Marketing.

iv) Scheme for Cocoon Marketing.

iv) Publicity and Motivation.

The target and achievement of Production and also the Financial Allocation and Expenditure for development of Sericulture under State Plan are shown in the Table – 15.7 and 15.8.

TABLE – 15.7
TARGET AND ACHIEVEMENT IN PRODUCTION OF SERICULTURE ACTIVITIES IN ASSAM FOR 2002-2003 (In lakh kg)

TABLE – 15.8
FINANCIAL ALLOCATION AND EXPENDITURE UNDER SERICULTURE ACTIVITIES IN ASSAM DURING 2002-03

HANDLOOM:

15.7.0 The Handloom Industry in the State of Assam has a long tradition in the socio-economic life of the people for supplementing the family income to a great extent and self-employment opportunities to lakh of people of poor and down trodden section of the society. The Directorate of Handloom and Textiles, Assam is looking after the activities of this sector. The Department is also implementing the scheme via the Deen Dayal Hathkargha Protsahan Yojana which was introduced in the year 2000-01 by the Government of India in place of Project Package Scheme throughout the State to take care of a wide gamut of activities such as Product Development, Infrastructure Support, Institutional Support, Training to Weavers, Supply of Equipments & Marketing Support etc. both at macro & micro level in an integrated and co-ordinated manner.

For the development of Handloom Sector of the State the Directorate has been implementing Health Package Scheme. Rural Work Shed cum Housing Scheme and Integrated Handloom Village Development Programme, Scheme for Marketing Handloom Products through Exhibition and Fairs, Development of Exportable Products and their Marketing Scheme sponsored by Government of India to increase production, marketing employment, earning etc. The Directorate is also implementing State Sectoral Plan Scheme for Production of Handloom Fabrics, Training Programme, District Development Scheme, Regional Development Scheme, Publicity and Advertisement, Development Scheme of Co-operative Societies and assistance to 4 nos. Autonomous Councils.

The Physical and Financial achievements made by the Directorate of Handloom and Textiles, Assam during 2001-02 to 2002-03 under different schemes are shown as below –

THE PHYSICAL AND FINANCIAL TARGET FIXED UP FOR 2003-04 FOR SOME SCHEMES ARE SHOWN BELOW –

KHADI AND VILLAGE INDUSTRIES (KVI):

15.8.0 With a view to generate rural employment and to uplift the rural economy, various Khadi and Village Industries are being promoted in the State by the Assam Khadi and Villages Industries Board with financial support from the Khadi and Village Industries Commission (KVIC), Government of India. The activities of Khadi and Village Industries in the State are briefly narrated below:

(i) Activities Under Khadi

There are 57 Nos. of Khadi Production Centres, 59 Nos. Sub-Khadi Production Centres in rural areas of both Plains and Hill Districts of the State. The production of Cotton Khadi, Silk Khadi (Endi, Muga & Pat) and Moslin Khadi are done in these Centres. The local artisans i.e. Spinners and Weavers work there and earn their wages as per norms of Khadi and Village Industries Commission. The achievement of Khadi production and employment for last five years are shown at Table – 15.9.

TABLE – 15.9
ACHIEVEMENT OF KHADI PRODUCTION AND EMPLOYMENT IN ASSAM

(ii) Activities under Village Industries:

(a) The Assam Khadi and Village Industries Board has been undertaking the following activities throughout the State for development of village industries sector.

These activities are directly implemented through its 28 Nos. of Departmental Training-Cum-Production Centres and 73 Nos. of development-Cum-Demonstration Centres in remote and rural areas of the State.

The achievement of village industries in Production and Employment for last five years shown at Table – 15.10

TABLE – 15.10
ACHIEVEMENT OF VILLAGE INDUSTRIES IN ASSAM

(b) Moreover, the Board has assisted following categories of Beneficiaries for setting up different Village Industrial Units with financial assistance of KVIC as per pattern of assistance of KVIC.

The value of production of these assisted units during the year, 2002-2003 who Rs 2236.19 lakh with an employment of 53,530 Nos.

RURAL EMPLOYMENT GENERATION PROGRAMME (REGP):

15.8.1 Moreover, for generation of rural employment and upliftment of rural economy of the State, the Assam Khadi & Village Industries Baord is implementing the rural employment genration programme throughout the state. The achievement of the Programme has been shown in the Table – 15.11.

TABLE – 15.11
ACHIEVEMENT OF RURAL EMPLOYMENT GENERATION PROGRAMME (REGP)

MARKETING OF KHADI AND VILLAGE INDUSTRIES BOARD:

15.8.2 The Board has a marketing wing with 56 Nos. of Khadi Gramodyog Bhandar at different places of the State, 3 Nos. of Khadi Gramodyog Bhawan (including one at Kolkata) and a Central Store its Headquarters Complex at Guwahati. The Khadi and Village Industries products and during 2002-2003 is shown at Table - 15.12.

TABLE – 15.12
SALE OF KHADI AND VILLAGE INDUSTRIES PRODUCT (Rs in lakh)

TEA INDUSTRY:

15.9.0 So far as Tea Industry is concerned, Assam is well known internationally in this sector since long back. The State continued to dominant the country’s tea map by producing more than half of the total tea production of India. The total area under tea cultivation was estimated to be 269 hectares during 2001 accounting for more than half of the total area (50 per cent) of 510 hectares of the country as a whole. In the year 2000, out of 1,11,996 Tea Estates in India 39,139 Tea Estates were located in Assam.

The estimated production of tea in Assam was 450 million kilogram in 2001, which constitute a major share of 53 per cent of the total tea production of the country. The average yield per hectare was 1675 kilogram in Assam as against 1672 kilogram per hectare in the country as a whole. The volume of tea sold through the State’s lone "Tea Auction Centre" at Guwahati was 131.4 million kilogram in 2002 as against 133.8 kilogram in 2001. The average price fetched per kilogram of CTC (Both leaf and dust) and orthodox tea (both leaf and dust) were Rs 60.25 and Rs 42.88 respectively. Although Assam produces more than 50 per cent of the country’s total tea production, the income earned from the tea sector of the State has been gradually decreasing in the last few years due to stiff competition being faced by the Indian Tea in the international market. The Table – 15.13 & Table – 15.14 exhibit some important statistics of tea sector in Assam.

TABLE – 15.13
TEA STATISTICS OF ASSAM AND INDIA

TABLE – 15.14
QUANTITY AND AVERAGE PRICE OF TEA SOLD IN GUWAHATI TEA AUCTION CENTRE
(Quantity in lakh Kgs.)

ACTIVITIES OF ASSAM INDUSTRIAL DEVELOPMENT CORPORATION (AIDC)

15.10.0 The AIDC is a state level institution, which is engaged with promotion of industrial units in the state sector as well as in joint/ private sector, Some of the activities of the Corporation is briefly discussed in the following paragraphs.

(A) INDUSTRIAL GROWTH CENTRE AT MATIA (GOALPARA)

The Growth Centre Project at Matia (Mornoi) in the district of Goalpara has been approved by the Government of India on 30.10.97 covering 1672 Bighas of land with a total project cost of Rs 2200.00 lakh out of which the grant from Government of India would be Rs 1500.00 lakh and the balance amount of Rs 700.00 lakh would be State Government’s equity share. The Corporation has incurred an expenditure of Rs 652.10 lakh upto 31-03-2003 for infrastructure development of the project like roads, power etc.

(B) GROWTH CENTRE AT CHARIDUAR (SONITPUR)

The Government of India has approved for setting up of an Industrial Growth Centre Project at Chariduar (Balipara) in Sonitpur District in April 1997 at a total project cost of Rs 2543.40 lakh out of which the grant from the Central Government would be Rs 1500.00 lakh and the balance amount of Rs 1043.40 lakh would be the State Government Equity Share. Land measuring 1500 Bighas has already been taken over by the AIDC for this project and construction of boundary wall, internal roads, power supply etc. have also been completed. It is reported that Corporation has constructed a Millennium Park in an area of 10 acres of land within the Project site and planned various Medicinal Plants, Fruits Bearing Plants, and Aromatic Plants etc. in the park through the DRDA, Sonitpur District. The Corporation has incurred an amount of Rs 742.05 lakh upto 31-3-2003 for infrastructural development of the project.

(C) INTEGRATED INFRASTRUCTURE DEVELOPMENT (IID) AT DALGAON (DARRANG):

The Government of India has approved the IID Centre at Dalgaon in the District of Darrang on 1-5-200. The approved project cost is Rs 418.00 lakh with 80 per cent grant from Government of India and 20 per cent as State Government assistance.

Land measuring 105 Bighas has been acquired. Master plan has already been prepared and detail engineering work of various activities like road, drainage, water supply, power supply etc. completed. The Assam State Electricity Board has accorded sanction for 1000 KVA power for the project. The Government of India has released an amount of Rs 200.00 lakh as grant to the Corporation. A sum of Rs 130.00 lakh has been spent on implementation of the project upto 30-10-2002.

(D) INTEGRATED INFRASTRUCTURE DEVELOPMENT (IID) CENTRE AT BHOMORAGURI AND NALTALI (NAGAON):

The Government of India has approved a project for the IID Centre at Bhomoraguri/Naltoli in Nagaon District of Assam. The approved project cost in Rs 510.00 lakh with 80 per cent grant from Central Government and 20 per cent as State Government assistance.

Land measuring 71 Bighas at Bhomoraguri and 52 Bighas at Naltoli in the District of Nagaon has been acquired. The detail engineering works of various activities like road, drainage, water supply, power supply, etc. are in progress. The works for construction of 11 KV powr line and installation of two 100 KVA sub-station to meet initial requirement of power at the project sites at Bhomoraguri are in progress. The Corporation has incurred an expenditure of Rs 311.40 lakh upto 30-3-2003 for the project.

(E) INTEGRATED INFRASTRUCTURE DEVELOPMENT (IID) CENTRE AT MALINIBEEL (CACHAR):

The Government of India has approved and sanctioned another IID Centre in July 2002 with total Project Cost of Rs 510.00 lakh at Malinibeel near Silchar Town in Cachar District. Out of about said Project Cost 80 per cent will be grant from Government of India and rest 20 per cent will be State Government’s share. For the Project, Government Land measuring 90 Bighas at Malinibeel has been taken over by the AIDC. The infrastructure works is reported to be under progress and the Project is expected to be commissioned by May 2005.

(F) INTEGRATED INFRASTRUCTURE DEVELOPMENT (IID) CENTRE AT DEMOW (SIBSAGAR):

Another IID Centre has approved and sanctioned by the Central Government in July, 2002 at Demow in Sibsagar District with project cost Rs 470.00 lakhs out of which 80 per cent as grant from Central Government and 20 per cent will be the State Government’s share. The Government of India has released first instalment of Rs 50.00 lakh against State Government’s sanction of Rs 20.00 lakh for implementation of the Project Work and the same is expected to be commissioned by May 2005.

BORDER TRADE CENTRE AT MANKACHAR (DHUBRI):

The Government of India approved the Border Trade Centre Project at Mankachar under Dhubri District August 2001. The Total cost of the project will be Rs 426.00 lakh out of which Central Government share is RS 340.83 lakh (80 per cent) as a grant and the balance amount of Rs 85.71 lakh (20 per cent) will be State Government share. An area of 7.5 Bighas of Government land has already been taken over by AIDC for setting up the project. The infrastructure works for the project is reported to be in progress.

INSTITUTIONAL FINANCE TO INDUSTRY:

15.11.0 Availability of adequate finance is one of the most important pre-requisites for development of industry sector and in this regard different financial institutions of the country have been playing a pivotal role. However, the flow of institutional finance to the industry sector of the State is found to be quite inadequate and meagre when compared with the position in many other States of the country.

The amount sanctioned as well as disbursement of loan of these banks in the State constitute a small fraction of 0.40 per cent and 0.38 per cent respectively in the national level. The Table – 15.15 gives an idea about the flow of funds sanctioned and disbursed by some term lending institutions.

TABLE – 15.15
AMOUNT SANCTIONED AND DISBURSED BY FINANCIAL INSTITUTIONS IN ASSAM
(Rs Million)

MINING:

15.12.0 Assam is widely known for its abundant mineral resources. The exploitation of minerals in the State comprises of mainly Petroleum (Crude), Natural Gas (Utilised), Coal and Limestone. Out of these four major minerals of the State, the production of Natural Gas (Utilised) and Limestone have increased by 59 million cubic Mete and 72 thousand tonnes respectively while the production of Petroleum Crude and Coal have decreased by 361 thousand tonnes and 11 thousand tones respectively in 2002-2003. Thus mixed performance in production of these major minerals have reflected the Index of Mineral Production and it declined to 97.47 in 2002-2003 from 101.76 in 2001-2002. The Table – 15.18 shows the production of Mineral in Assam during last three years.

TABLE – 15.18
MINERAL PRODUCTION IN ASSAM
(Value in thousand Rs.)