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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan

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CHAPTER – 1

PREAMBLE

The Small Industries Development Organization, ministry of Small


Scale Industries, Government of India, has been preparing MACRO Level
State & District Industrial Potentiality Reports for the past many decades.
The reports served as reference material towards planning for rapid
Industrial development with emphasis towards Small Scale Sector and
assisted in proper planning for the development of the districts.

The Government of Karnataka has now taken a positive step to


conduct potentiality reports at the MICRO level to correct the regional
imbalances with a delimitative objective of implementing the
Nanjundappa Committee report recommendation for development of
backward regions.

The District Industries Centers have prepared a prospective District


wise Industrial Development Plan for development of Industrial activities
for the period 2000-2005. This micro level taluks industrial potentiality
report for each district seeks to serve as a guide for Rural industrialization
for the period 2006-11.

The Department of Commerce & Industry has identified a number


of professional agencies to prepare the potentiality report and is being
coordinated by Tecsok The Director Small Industries Service Institute
Hubli has been assigned the task of preparing the District Industrial
Prospective Plan (DIPP) for all Taluks of Gulbarga & Bidar Districts.

1.1 Objectives of the Study: -

The District Industrial Prospective Plan will -


• Highlight the strength, resources, scope and opportunities in each
taluk of the district to provide the prospective entrepreneur in
identifying the producer/activities and locating his project suitably.
• Serve as a guide for the Department of Industry & Commerce, as
well as other promotional agencies for taking action for the industrial
growth
• Help in monitoring the accelerated development and orderly growth
of industries which will balance development throughout the district.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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• Enable the District Industries Centre to guide the prospective
entrepreneur to set up industries in different locations of the district.
• Serve as an Action Plan for implementation by District Industries
Centre, Taluk Industries Centre and other concerned promotional
agencies.

1.2 Methodology :-
The achievements and current status of the small scale sector was
obtained from the District Industries Center Gulburga. Besides various
Government Departments/offices like KSFC, lead Bank NABARD,
Agriculture Department, Horticulture Department, Sericulture
Department, Animal Husbandry Department, Dairy, KIADB, KSSIDC,
KVIV, Zilla Parishad, etc were also contacted and information were
collected.

The team held useful discussions with the Small Scale Industries
Association, Hyderabad-Karnataka Chamber of Commerce and Industry,
Gulburga and knowledgeable persons in trade and industry regarding
scope of industries, availability of raw materials, infrastructural skills in
the district and at the taluk level, and problems of existing industries etc

The team also collected useful information in respect of places of


interest / tourism in the taluk to identify the scope for the development of
tourism to attract the floating population and thereby help the income
generation of the local people.

The team collected secondary data from the office of Small


Industries Service Institute Hubli,& Bangalore, State Planning
Department, Bangalore, Director of Industry & Commerce, Bangalore,
Director of Census Operation, Bangalore and some other concerned
departments to draw conclusions on the scope of industries.

1.3 Disclaimer :-
• Data has been obtained from the latest available Government
Publication.
• As far as possible, Taluk wise data has been compiled and
incorporated in Taluk Report.
• Information as obtained from Government Departments/office was
incorporated in the taluk report without modification.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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1.4 Structuring of the Report :-

The Report is presented in two parts as follows -

• Part – A comprising three chapters.

Chapter – 1 Commences with the Preamble

Chapter – 2 Presents the identified investment opportunities


followed by

Chapter – 3 Action Plan for Implementation

• Part – B comprising eight chapters, forms the basis for Part-A

Chapter – 4 Outlines the Statistical profile

Chapter – 5 Outlines the demography, geography and other features

Chapter – 6 Portrays the resources endowment – natural & human

Chapter – 7 Takes stock of infrastructural facilities and new


developments

Chapter – 8 Recounts the existing industrial base

Chapter – 9 Presents the SWOT analysis forming the basis for


identifying Investment Opportunities and the
consequent Action Plan.

Chapter – 10 Outlines the Central & State Government Schemes

Chapter – 11 Address of Promotional Agencies.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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CHAPTER - 2
LIST OF IDENTIFIED INDUSTRIES
GULBARGA TALUK
A. Agro & Food based 6. Stone Polising
1. Dall Mill 7. Table molded bricks
2. Edible Oil 8. Hydrated Lime
3. Banana chips 9. Lime Powder
4. Masala Powder 10. Chalk Crayons
5. Paped Making 11. Pottery
6. Roasted & Salted
7. Decorating of G.nut C. Chemical & Plastic
8. Tomato Ketchup 1. Nylon Strapping
9. & syrup 2. H.D.E.P.Films & Printed Box
10. Tuti fruti 3. P.V.C.Pipes & fittings
11. polishing 4. Blow moulded plastic
12. Jam Jelly etc. container
13. Dehusking of pulses 5. Thermo moulded Plastic
14. Fried gram items
15. Briquietted Fuel 6. Injection mouldedPlastic
16. Agarabatti items
17. Vermi Compost 7. Camphor Tablet Making
18. Oil Ghana 8. Plastic reprocessing
19. Poha 9. Paints & Primer
20. Potato Chips manufacturing
21. Dehydration of onion 10. Electroplating
22. Rice huller & Flour 11. Synthetic gums
23. Mill 12. Kumkum
24. Jaggery Unit 13. White Deodorant
25. Milk Diary units
26. Milk Product D. Paper & Paper products
27. Bread & Bakery 1. Cardboard & Corrugated
28. products Boxes
29. Areated water & 2. Paper Envelopes
30. soft drinks 3. Paper bags
31. Ice Candy 4. Book binding note Book

B. Glass & Ceramics E. Textiles


1. Hallow Concrete Blocks 1. Readymade garments
2. Stone ware pipes 2. Surgical gauze &
3. Mineral Pulverizing bandage
4. Stone crushing 3. Power loom
5. Mosaic tiles 4. Hand loom
6. Hosiery Products 5. Kamble weavings
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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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G. Engineering /Mechanical
1. Agricultural implements F. Leather & Rubber
2. Steel Furniture 1. Leather Shoes & Chappals
3. Aluminum Furniture 2. Tyre Retrading
4. Aluminum Utensils
5. Wooden furniture
6. Aluminum Auto Ornamental 19. Cyber Café
Sittings 20.Fire Injection Servicing
7. Auto Body Building 21. Weigh Bridge
8. Sheet Metal works 22.Diesel Engine Servicing
9. Builders Hardware(N.F) 23.Automobile Servicing Station
10. Fabrication Unit 24. Mobile Phone
11. Umbrella Assembly Repairing
12. Improved Bullock Cart
making I. Tourism
13. T.V & Room Cooler Stand 1. Hotel
2. Fast Food Centre
3. Travel Agencies
4. Mini Bus
5. Auto
6. Taxi Service

H. Servicing J. Miscellaneous
1. Footwear repairing 1. Cold Storage
2. Carpentry 2. Aerated Water
3. Repair of Electrical 3. Computer Training Institute
appliances 4. Rubber Stamp making
4. Vulcanising 5. D.P.T.
5. Textile Dyeing 6. Ice blocks & Ice manufacture
6. Laundry (Ironing) 7. Cane & bamboo item
7. Rewinding of Electric motors manufacturing
8. Battery Reconditioning 8. Bone Meal
9. Automobile Garages 9. School Uniforms & Bags
10. Tailoring & Stitching
11. Cycle Repairing
12. Electronic service centre
13. Fax,STD Booth
14. Tractor servicing/repair
15. Common Service centre
16. Black Smith
17. Agro Clinic
18. Bulk Milk Cooling Unit
(BMCU)

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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CHAPTER – 3
ACTION PLAN

DISTRICT INDUSTRIAL PROSPECTIVE PLAN


GULBARGA TALUK

OBJECTIVE:
To evolve a practical implementation action plan for industrialization
at Taluk level-Gulburga Taluk based on the inferences of the study report.

Essential features of the report:


• Inadequate infrastructure in terms of Land, power, &
communication:
• Little Scope of Large & medium industries
• Scope for Agro based, Dairy, food products, consumer chemicals &
Ready-made garments industries.

Prominent Industry:
• Dal mill industry.

Target Group of entrepreneurs.


• For common items like - Women, SHGs. unemployed
Potato chips, Masila Power, educated.
Papad Making etc.

• Agro clinics - Agriculture graduates

• Dal Mill, Oil Mill etc with - Young entrepreneurs


from
heavy investments economically potential family

• Workshops, repairing shops etc. - Skilled persons from ITI,ATI


& service industry.

• Permit based industries & - Women, SHGs.


BMP Milk Products etc.

• Sophisticated Chemical Industries - Engineers, Experienced


young entrepreneurs.

• Mechanical sophisticated Industries - Engineers ,Experienced


young entrepreneurs.
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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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• IT/BT Industries persons - Engineers & Experienced


Identification of projects :
1. A consensus has to be arrived between Technical organizations,
promotional institutions and financial institutions on the potential
projects, scale of investment and requisites for Engineering graduates,
Agricultural graduates.
2. A proposed list of Tiny & self-employment industries for
Unemployed graduates, women entrepreneurs, self-help groups,
experienced entrepreneurs etc

Preparation of Project reports :


Tecsok, Cedok, KVIC, & SISI must prepare project profiles of
identified industries for each category of target groups.

IMPLEMENTATION PLAN :

 Linkages :
• Establishing effective linkages between SISI, DIC, NABARD,
KVIC, KVIB, LEAD BANK, CEO Zilla Panchayat , TECSOK &
CEDOK : chairman CEO Zilla Panchayat

 Agenda for a wholistic approach :


• To identify and approve of projects
• To formulate a system for identification of entrepreneurs.
• To prepare a schedule for implementation
• To define the escort services from each organization
• To define the financial and other commitments by each organization
• To devise a suitable reporting & monitoring system
• Coordination & establishing commonality between all development
schemes from all agencies
• Evolve common EDP & Training programme for all schemes for all
agencies.

 Escort services :
• Industrial development at any level involves the following essential
steps.
• Identifying potential projects
• Preparation of project profiles
• Technical assistance to entrepreneurs in setting up the industry.
• Identifying entrepreneurs
• Motivation
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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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• Entrepreneur development
• Skill development training
• Management development practices
• Financial assistance
• Marketing guidance.

The escort services to complete the whole process from


motivation to selection of entrepreneurs, training, preparation of
project reports, technical assistance financial assistance etc has to be
made available to the entrepreneur on a continuous basis and
momentum sustained to ensure success of the development activities.

Identification of Projects :
The potential industries for each Taluk is identified based on past
experience, projected growth and availability of local resources in terms of
HRD, raw material and demand etc.

Identification of entrepreneurs :
Entrepreneurs are identified through motivation programmes and
promotional efforts of NGO’S & SHG’S in the taluks.

Identity of Entrepreneurs :
Majority of entrepreneurs are from low-income group with modest
education and are first generation. Most are Women entrepreneurs.
Educated [graduates] are few in numbers.

Hence the target group as potential entrepreneurs are those with


formal education SSLC, PUC etc with no background of exposure in an
industrial activity. The financial capabilities in terms of mobilization
towards investment ranging from Rs 5000 to Rs. 25000/-

In effect the prospects for setting up new industries will be generally


restricted to projects with Investments on capital & working capital of Rs 2
to 3 lakhs. At best these can be termed as Self-employment ventures for
income generating opportunities and providing employment opportunities
for one or two persons.

Projects with investments ranging from Rs 5 lakhs and more can be


considered only by educated entrepreneurs with financial resources and
capable of sustaining the unit through established markets.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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Such entrepreneurs too would require escort services in terms of
Technical information and assistance to guide in preparation of project
reports, financial assistance etc. from professionals. They would also need
to be encouraged with incentives and physical infrastructures and financial
assistance with out delay.

The target group for a planned development at the taluk level at least
during the initial two to three years, would therefore comprise of
Entrepreneurs with minimum undergraduate level education and low
investment potential. Women more than men, SHGs etc.

The potential industries that could be promoted by such


entrepreneurs would therefore be restricted to
• KVIC projects
• Dairy products
• Consumer Chemicals for rural and semi –urban areas
• Ready made garments
• Skill oriented self-employment projects – Hand embroidery, Jute
bags, Rexene school bags, artificial jewelry, soft toys, etc.
• Home cooked food products,

All these projects fit into the schemes of PMRY, KVIC, etc and
can be classified as “DO- ABLE” and “ACHIEVEABLE” through an
integrated and a well-defined action plan.

Appropriate technologies and agencies to assist in implementing


the projects is available and within the scope and targets of the
organizations.

- ACTION PLAN -

An action plan can be envisaged ONLY IF the inputs in terms of


providing all the essential escort services – consultancy, technical
assistance, financial assistance and general motivation and guidance etc -
are available to the entrepreneur for a sustained length of period.

All efforts at identification of entrepreneurs, conducting training


programmes, etc would be an attempt in vain if the two most important
elements are not made available to the entrepreneurs.

1. Financial assistance
2. Sustained escort services at the taluks itself.
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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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Agencies providing escort services:
District Industries Centers
CEDOK
TECSOK
Small Industries Service Institutive
KVIC
KVIB
Department of Animal Husbandry
Nationalized banks, Cooperative banks, Gramina banks etc

Phase 1 -
All agencies should agree to promotional methods and adopt suitable
plans from selection of entrepreneurs, identification of projects and in the
financing of projects for each taluk for each year.

Technical assistance and escort services must be made available by


all these agencies on a systematic basis through mutually acceptable terms
and a time frame to implement “DO- ABLE” and “ACHIEVEABLE”
projects.

A suggestive operational mechanism to achieve implementation of plan:

1. Identify a Suitable location for all interactions between institutions,


entrepreneurs etc a Knowledge Center to be the focal point for all
activates.
2. All agencies agree on the action plan in terms of no. of entrepreneurs
identified projects, financial assistance, scheme through which to
implement, training , management and other escort services.
3. The center is positioned with at least one person from any one of the
organizations at any moment of time to provide the escort services
on rotational basis.
4. Ensure proper linkages with all schemes and organizations

“Motivation, Technical information and Assistance will be the key to


success “

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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Based on the above an action plan has been prepared

1. Meeting with all organizations providing technical assistance


and escort services:
SISI / DIC / TECSOK/ KVIC/KVIB/Dept.of Animal Husbandry/Dept.
of Horticulture/ Zilla panchayat

Agenda :
• To identify and approve of projects
• To formulate a system for identification of entrepreneurs.
• To prepare a schedule for implementation
• To define the escort services from each organization
• To define the financial and other commitments by each
organization
• To devise a suitable reporting & monitoring system

2. Schedule for Programmes :


 Motivation
 Entrepreneur development
 Technical counseling
 Management development programmes
 Project report and financial assistance
 Project implementation
 Technical assistance and guidance.

3. Action Plan for each activity and agency


Activity:

Agency: Schedule: Budget: No of beneficiaries: Government support etc.

Phase 2 (Providing Urban Amenities in Rural Areas) –


• Establishing Knowledge center

• Establishing a Common facility and “Incubation Centre” for a group


of entrepreneurs engaged in similar activities\

• Establishing a brand image and exploring bigger markets

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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CREDIT FACILITIES AND FINANCING
Availability of finance is essential for the speedy industrialization of
an area. Finance is required both for fixed and working capital of the
industry. State Bank of India is the lead Bank in the district. Other
important banks in the taluk are Canara Bank, Syndicate Bank, State Bank
of Hyderabad, Krishna Grameena Bank etc. Besides, Karnataka State
Financial Corporation is also financing the industries. Gulbarga Taluk has
45 commercial bank branches and 9 branches of Krishna Grameena Bank.
Among the Commercial banks the State Bank of Hyderabad has the
maximum number of Branches. The bank network at present seems to be
adequate. However, they should come forward to finance the entrepreneurs
to set up the industries.

In addition to the above commercial banks Grameena Banks, KSFC


etc there are six Branches of urban Co-operative Banks, and 4 PLD Banks
who also provide finance. There are 479 number Credit Co-operative
Societies in the taluk consisting of 89,598 members. The KSFC has
financed 25 Nos. of units and disbursed Rs. 412.73 lakhs out of sanction of
Rs. 432.65 lakhs in Gulbarga taluka during 2004-05.

The district Annual Credit plans for non farm sector (SSI) and trade
and services in Gulbarga Taluk for the year 2003-04, 2004-05 and 2005-06
are placed below. Table 7.8 indicates Annual Credit Plans for three years.

Table no.7.8
Annual Credit plan for 2003-06 for Gulbarga Taluk
(Rs. In ‘000)
Year Non Farm Trade &
Sector Services
2003-04 152254 367100
2004-05 82535 452355
2005-06 153281 502750
Source: - Annual Credit Plan – Gulbarga District.

It can be seen from the table that there was less credit available in
2004-05 for the non-farm sector. However, the annual credit plan for 2005-
06 shows more credit available for both non-farm sector and Trade and
Services. It is expected that because of the higher outlay in non-farm and
trade and services sector, there will be more scope for setting up of SSIs
and Service Industries in future.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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Potential Linked Physical & Financial estimates for Non-farm
sector 2006-07
Estimates of some non farm sector for the 2006-07 of Gulbarga
Taluk prepared by NABARD is placed below which will reflect the
improvement in infrastructure and which will enhance industrialization.

Potential Linked Physical & Financial estimates for Non-farm sector


2006-07 - GULBARGA TALUK
(Rs. in Lakhs)
Activity Unit Unit Bank Unit Size
C Size Loan Physical Financial
o
s
t
Handloom/Power loom 0.300 Nos. 0.255 100 25.50
Tiny Industries 0.250 Nos. 0.213 195 41.44
Village Industries 0.250 Nos. 0.213 195 41.44
Rural Artisans 0.250 Nos. 0.213 195 41.44
SSI 4.500 Nos. 3.825 250 956.75
Miscellaneous 0.150 Nos. 0.128 200 25.50
NFS Total Block Capital 1131.56 of which Working Capital
Rs.452.62

The Potential linked Credit Plan of NABARD has projected a


credit outlay of Rs.1131.56 lakhs including working capital to an extent of
Rs. 452.62 lakhs. It may therefore be concluded that there is adequate
provision for credit through banks under various schemes of the
Government.

The above table indicates that in the future there will be


improvements in industrial sector because of the Potential Linked Plan.

Assessment and Phasing of the Potential in Base PLP and


Rephasing of Potential on account of infrastructure changes for the
year 2006 – 07 Gulbarga District.

Keeping in view the infrastructure available in the district, the base


PLP projections has been increased for the year 2006 -07 and shown in the
following table

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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(Rs.lakhs)
BASE PLP
Activity Updated PLP 2006 -07
2006 -07
Phy Fin Unit Unit Fin Bank
Cost outlay Loan
Handloom 200 60.00 400 0.30 120.00 102.00
Tiny Ind 200 50.00 600 0.25 150.00 127.50
Village 300 75.00 600 0.25 150.00 127.50
Ind
Rural 400 100.00 600 0.25 150.00 127.50
Artisans
SSI 500 2250.00 700 4.50 3150.00 2677.50
Misc. 1000 150.00 2000 0.15 300.00 225.00
TOTAL 2685.00 4020.00 3417.00
Of which 1074.00 1608.00 1366.80
WC

Provision of adequate working capital to industrial units hardly


needed emphasis. Number of small units become sick due to paucity
working capital. While the Working capital requirements for one
operating cycle is generally capitalized in the Project cost, many new as
well as existing units find it hard for arranging additional Working capital
for increased production. This is especially so in the case of units assisted
by KSFC. Lack of effective co-ordination between KSFC and banks has
led to sickness of many units. Keeping this in view, the working capital is
estimated at 40% of the Term Loan for the proposed units. Accordingly,
banks have to make adequate provisions for working capital to these units
in their service area plans. The block-wise and activity-wise allocations of
the various investments under the NFS during the year 2006-07 are
indicated below

Potential Linked Physical & Financial estimates for Non-farm sector


2006-07 -- GULBARGA TALUK
(Rs. in Lakhs)
Activity Unit Unit Bank Unit Size
Size Loan Physical Financial

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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Handloom/Power loom 0.300 Nos. 0.255 100 25.50
Tiny Industries 0.250 Nos. 0.213 195 41.44
Village Industries 0.250 Nos. 0.213 195 41.44
Rural Artisans 0.250 Nos. 0.213 195 41.44
SSI 4.500 Nos. 3.825 250 956.75
Miscellaneous 0.150 Nos. 0.128 200 25.50
NFS Total Block Capital 1131.56 of which Working Capital
Rs.452.62

Review of Ground Level Credit : -


The credit flow for NFS during the last five years for the district as
a whole was as under:
(Rs.lakh)
Purpose/Year 2000-01 2001-02 2002-03 2003-04 2004-05
Hand loom 0.36 0.30 7.79 6.15 6.55
Tiny Sec 2.10 0.70 6.43 5.51 16.17
Vill.Ind 8.66 8.29 5.61 8.88 15.67
Rural Art 11.26 20.47 21.99 17.36 25.48
SSI 278.05 536.43 1553.71 317.69 676.93
Misc. 60.52 91.10 46.68 1825.99 426.38
Total Ach 360.95 657.13 1642.21 2181.58 1167.18
Target 2007.65 2012.14 2162.85 2764.11 1912.32

The lending under NFS has increased from Rs. 1642.21 lakh during
2002-03 to Rs.2181.58 lakh during 2003-04 but decreased to Rs.1167.18
lakh during the year 2004-05 due to industrial sickness and stoppage of
lending by KSFC. The target for NFS under DCP 2005-06 is Rs. 2506.07
lakh as against the projection of Rs.3417.00 lakh under PLP 2005-06.
The agency-wise lending under NFS for last 5 years was as under:

(Rs. Lakh)
Agency/year 2000-01 2001-02 2002-03 2003-04 2004-05
Com. banks 285.71 445.78 1285.36 2026.92 942.80
RRB 72.58 48.0 23.16 148.61 223.11
PCARDBS 2.66 1.06 -- 1.53 1.27
DCCB -- -- -- 4.52 --
KSFC 0.00 162.29 333.69 -- --
Total 360.95 657.13 1462.21 2181.58 1167.18
The commercial banks lending has decreased while RRB lending
under NFS during 2004-05 has increased. Block-wise disbursement under

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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NFS during the year 2004-05
(Rs.lakh)
Afzalpur Aland Chincholi Chitapur Gulbarga
46.09 18.49 96.12 44.91 790.64
Jewargi Sedam Shahapur Shorapur Yadgir
18.02 4.076 19.59 21.92 70.64
New Strategies need
Out of nearly 7000 SHGs. Promoted by various NGOs/Voluntary
Agencies/Self Help Promoting Institutions is in the District about 90%
are women groups. But still there is large scope for encouraging women in
the field of economic development with the following strategies:-

 Co-ordination of the activities of different


agencies/Institutions engaged in development of women.
 Close liaison by Training Institutes with financial
Institutions for ensuring credit linkage to the trainees.
 Capacity building of inexperienced and junior
NGOs/Voluntary Agencies.
 Monitoring of credit flow to women by Controlling
Offices of banks.
 Involvement of certain Senior NGOs as Resources
Agencies for formation, strengthening, training and credit-linking
SHGs in co-ordination with banks and NABARD.
 Krishna Grameena Bank which is identified by
NABARD for replicating Cauvery Grameena Bank model has to
concentrate on some identified activities and groups for over-all
economic development of women through its Women Development
and Technical Monitoring and Evalation Cells.(TME)

 Krishna Grameena Bank has set up Technical


Monitoring and Evaluation (TME) Cell in its Head Office to give
impetus to financing of NFS sector and NABARD has been
providing grant assistance to this cell.
 DIC may identify locations for group activities based
on locally available raw materials and guide the rural people to take-up
such activities by co-ordinating with banks for extending credit
support.

 Targets under employment generation programme like


VISHWA, may be fixed keeping in view of the defects / shortcomings
identified in the evaluation study report.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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 Co-ordination between banks and KSFC to solve the
problem of providing working capital to sustain the units and effective
recycling of funds.
 NGOs / Voluntary Agencies to concentrate on the
development of RNFS through SHGs by ensuring straining on skill
development, financial assistance from Banks etc.

(Extract from Potential Linked credit Plan 2006-07 NABARD - Gulbarga District)

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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RECOMMENDED ACTION PLAN 2006 -07 TO 2010-11
(Rs.in lkhs)
Sl. Name of Industry Nos Investment Emp.in
No Nos.
1 Agro & Food based 231 564 1239
2 Glass & Ceramic 56 252 619
3 Chemical & Plastic 40 206 356
4 Paper & paper products 7 36 48
5 Textile Industry 52 156 343
6 Leather & Rubber 11 23 47
7 Engineering & Mechanical 52 146 316
8 Miscellaneous 48 98 258
9 Servicing 256 488 783
10 Tourism related 28 85 74
Total 781 2054 4083

Explanatory Note

 Though Gulbarga district is endowed with a variety of


natural resources, the district continues to be backward. One of the main
reason is the lack of local entrepreneurial talents.
 Though people do have surplus money on account of
various commercial crops and increase in trade and commerce activities,
they are shy of investing in industry and take risks.
 It is gathered from NABARD that 6,822 technical
graduates, 1,428 nos. of Diploma holder and 3,235 ITI trained persons
are unemployed. There is therefore, a need for the creation of strong
vibrant entrepreneurial base among the skilled and non-skilled persons
through intensive Motivation Campaign, seminar workshops and
training.
 Organizations like S.I.S.I., CEDOK at Dharwad, Rudsetti
etc be given responsibilities to encourage the people to set up industries
by providing basic information & need based training etc.
 It is learnt that there is significant development in
increasing Horticulture Crops production through a Programme already
initiated by National Commission on Horticulture. It is informed that
about Rs.14 crores will be spent for Horticultural Development of the
district during the next 7 years. As a result, Horticultural crops
production will go up significantly. Hence, there would be very good
scope for fruit processing industries in the near future.
 K.V.I.Board should provide finance to the rural artisans to
set up village industries and improve rural economy.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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 Government should encourage Mall or super markets in
different locations of the taluk to facilitate marketing of consumer items
manufactured by local industries.
 While discussing with officers of GESCOM at Gulbarga,
it was revealed that there would be no problems for the supply of
electricity.
 GMUL (Gulbarga Milk Union Ltd.) has one processing
plant at Gulbarga with capacity of 60,000 lpd. Average sale of milk by
GUML is only 32,000 lpd. It is learnt that GUML is operating only on
five main milk routes and 2 shuttle routes for collection of milk.
Therefore, GUML or Zilla Parishat may take action to promote more
numbers of Bulk Milk Cooling Units (BMCU) in areas where collection
route are not covered.
 The District has got 26 nos. of NGOs engaged in socio-
economic development of local people. Most of the NGO’s are
functioning in all the taluks. They may take action to motivate rural
young entrepreneurs to take up manufacturing activities in coordination
with DIC and local banks.
 There are significant nos. of S.H.G in the district who are
involved mostly in agricultural and on DAIRY activities. They may be
motivated to take-up processing activities.
 The Karnataka Udyoga Mitra or State Electronics
Corporation may initiate steps to invite IT industries located at
Bangalore or outside the State to set up industries in IT/BT.
 DIC may take effective steps for the revival of sick, which
are economically viable.
 Government may consider to provide more incentives to
attract entrepreneurs as industrial development is not progressing inspite
of the existing incentives and concessions.
 A Knowledge facilitation centre be established in each
taluk which will be a nodal centre for all activities to facilitate all
agencies for over all development.
 Last but not least, the banks should come forward to
finance the industrial activities liberally.
 The KIADB has taken measures to acquire suitable land in
the district. So far the KIADB has developed 320 Industrial plots of
which only 9 plots are to be allotted. So the other acquired areas may be
developed quickly and made ready for allotment.
 KSSIDC had developed 140 industrial plots in Industrial
areas in different taluks. Out of these plots only 17 plots are vacant.
However, out of 682 industrial shed more than 1/3rd of the sheds are
vacant. KSSIDC may take suitable steps like Motivation Campaign etc.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
21
to attract the Potential entrepreneur to come forward to setup industries
in vacant sheds.
 Besides, there are no developed industrial plots or
industrial sheds in two taluks viz., Afzalpur and Yadgir of the District.
Both KIADB and KSSIDC may take suitable steps to provide the above
facilities to the potential entrepreneurs of these two taluks. The
KSSIDC may also plan to construct 30 readymade sheds each at Shah
bad in Chittapur taluk and Aland taluk.
 There are about 7000 SHGs promoted in the district out of
which about 90% are women group. These SGHs may be motivated by
DIC ,KVIC, KVIB and NGOs to take up production of domestic
consumer products like Papad making, Vermicelli making, Agarbatti
rolling, Detergent Power etc. which would improve their economic
level.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
22

SCOPE FOR INDUSTRIES IN THE TALUK


The important factors considered for identifying suitable and
profitable lines of manufacture are resources, (material and human), future
improvement in resource mobilization due to NABARD Projects as well as
district credit plan, existing infrastructure, likely to give impetus to
infrastructure in the future, skill improvement due to proper training by
training organizations and motivating SHG Groups to take up
manufacturing activities. Besides, present industrial structure and demand
for both consumer and industrial goods and services required in the near
future have been kept in view while suggesting the scope of Industries in
the taluk. In addition to the above views expressed by prospective
entrepreneurs, knowledgeable person in trade and industry, Industry
Association, Hyderabad Karnataka Chamber of Commerce and Industry;
Taluk Industry offices and District Industries Centre, the candidate industry
for the next five years have been suggested below. However, the candidate
industries suggested are only illustrative but not exhaustive. The identified
industries and Matrix—for Development of candidate industry, Investment
and Employment Generation in Gulbarga Taluk are given in enclosure.
(Rs.in lkhs)
Sl. Name of Industry Nos Investment Emp.in
No Nos.
1 Agro & Food based 236 1173 1259
2 Glass & Ceramic 128 405 619
3 Chemical & Plastic 40 275 356
4 Paper & paper products 7 25 50
5 Textile Industry 52 194 343
6 Leather & Rubber 6 23 50
7 Engineering & Mechanical 54 224 326
8 Miscellaneous 48 112 228
9 Servicing 265 593 794
10 Tourism related 28 150 74
Total 864 3174 4099

Explanatory Notes
• The candidates industries suggested to be set up during the period
2006 to 2011 as projecting for every year seems to be not realistic.
• The industries suggested - Keeping in view of the trend of nos. of
industries set up during last five years.
• Agro clinics have been suggested considering availability of Agri-
graduates who could provide extension and technical services and for

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
23
production of bio-fertiliser and bio-pesticided including vermi
composing to the farmers.
• Bulk Milk Cooling Units (BMCU) have been suggested as milk
collection route of G.M.U. Ltd. are limited and milk is being spoiled due
to absence of collection agencies.
• No. of Artisans based industries have been suggested considering the
artisan available in the taluk which could also improve the rural
economy and provid employment to rural artisans.
• It is desired that Government may set up a complex at Gulbarga for
fruit processing activities.
• There is no scope for Ancillary industries.
• A Cluster Industry Complex may be set up at Gulbarga for catering
the need of Dal industries. It is reported that Dal mills are concentrated
in Gulbarga Town which has 67 mills. The Dal mills use traditional
technology. Many Dal Mills do not have dryers and sun drying is
commonly adopted. Therefore, it is desired that steps should be taken to
upgrade the technologies of these mills. It is wished that either the
Karnataka Tur Development Board located at Gulbarga or Karnataka
Centre for Technological up-gradation located at Bangalore may initiate
steps to undertake technological up-gradation of these Dal mill.
• A chapter has been written on tourism importance of Gulbarga taluk.
Therefore, tourism related activities have been suggested to facilitate the
tourists.
• Although beyond the scope, still the study team opined that the Zilla
Parishat may consider constructing some community centre with
dormitory facility accommodation important places of the taluk, low
cost ‘Sanchalaya’ (Toilet) through Rural Development Programme
which will fulfill some of the aspirations of rural people expressed in
‘PURA’ programme desired by the President of India in his speech.
Krishna Grameena Bank may provide A.T.M facilities to the rural
people through its branches.
• There is scope for setting up of one complex for readymade
garments manufacturing industries for domestic use as well as for
export.
• The Government may consider for setting up of one complex for
IT/BT industries at Gulbarga city. However, the investment may vary
from Rs. 50 crore to Rs.100 crore depending on requirement of IT
Industries. The proper infrastructure may also be created to cater the
need of IT Industries.
• The Government may also plan to encourage the SC/ST
entrepreneurs to take up rain water harvesting activity.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
24
Providing Urban Amenities in Rural Areas (PURA)
Vision 2020
Proposal for setting up an incubation centre for food products.

PURA kick-starts the economic growth and development in rural


areas by providing urban amenities in selected rural clusters around selected
towns that would set off further economic activities to generate ripple effect
in the surrounding areas

That PURA is based on the concept that villages around a town have
an in-built potential to foster fast and if infrastructural facilities are
extended to these villages, they not only develop themselves but become
growth centers to the adjacent areas too. The idea is to primarily build on
the extant schemes of the Central and State governments and meet
infrastructural gaps, if any, through funding from PURA.

The vision of transformation to a ‘developed’ India can only be


realized if we launch a mega mission for empowering the rural people. Such
Model of establishing a circular connectivity among the rural village
complexes will accelerate rural development process by empowerment.
Schools with best infrastructure and teachers who love teaching, primary
health centers, silos for storage of products and markets for promoting
cottage industries and business, employment opportunities for artisans are
some of the elements of PURA

The PURA has to be a business proposition economically viable and


managed by entrepreneurs and local people and small scale industrialists, as
it involves education, health, power generation, transport and management.
Government’s support should be in the form of empowering such
management agencies, providing initial economic support and finding the
right type of management structure and leaders to manage and maintain.

Knowledge facilitation centre


A Knowledge facilitation centre be established in each taluk which will
be a nodal centre for all activities to facilitate all agencies for over all
development. The centre may also provide facilities for training, common
facilities for packaging of products, demonstration & training in specified
trades etc. Such a facility would also be the first step towards implementing
PURA in taluks and a great motivating factor for the entrepreneurs.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
25
What infrastructure facilities can be created to sustain growth?
A meeting place for women entrepreneurs, self help groups , NGO’s
etc for discussions, interactions etc a place exclusively which can be called
their own with basic amenities like water, power ,toilets , teaching aids, and
some minimum furniture. This “centre” becomes the FUNCTIONAL
place for all economic activity and knowledge centre. Incubation centers
to train & encourage revenue generating activities. To act as a common
facility centre by providing facilities in selected income generating activity.
Pay & Use concept. Encourage cluster approach for all commercial gains.

What is an incubation center?


A centre that provides Training & Demonstration on any processing
or production activity using appropriate technology to produce goods
suitable for commercial markets. It will also provide the facilities for
producing goods by utilization of facility on nominal payment basis.

What are the advantages of such incubation centers/ common utility


centre?
 No initial investment on the part of the entrepreneur
 Can be trained on usage of appropriate technologies
 Practical training will lead to quality awareness and understanding of
financial & Commercials aspects of doing business.
 Helps in doing part time business. Does not affect regular work at
home especially for Women.
 A larger section of the society can utilize the facilities which will
encourage more Participation.
 Will have access to technical inputs from experts.
 Common Brand names can be established.
 Small quantities can be produced there by all resources of agro
produce like fruits, vegetables etc can be utilized and waste
eliminated.
 To provide the licensed facility for manufacturing food products
either for test market or commercial market.

What are the suggested areas for an incubation center?


• Emerging market trends indicate growth in
• Food products & Fruits & Vegetables processing
• Consumer Chemicals
• Ready Made garments
• These sectors also provide opportunities for creativity & community
working using common facilities.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
26
Budget estimates to set up a knowledge facilitation centre

Location: An existing ITI or an Industrial shed


Minimum space required. Built up area

Conference Hall/meeting room/office/computer room etc 2400 sq.ft.


Incubation center 2400 sq.ft.

Budget Amount
Rs.
Renovation/painting/lighting/computer connectivity etc 3,00,000
Conference hall Furniture / public address system/ OHP & 50, 000
screen/ etc
Mini meeting room with furniture 5, 000

Computer Systems with Internet connectivity 60,000

Office room with telephone / fax/photocopier 50,000

Incubation Center machinery & Equipment any one or more 10,00,000


Each activity
Food
Readymade garments
Consumer chemicals
Total 14,65,000
Rounded to 15,00,000

Staff
Two technical Staff on deputation / consultancy
Recurring cost:

Wages for two technical staff


Wages for Two skilled workers
Wages for watch & ward.

Electricity, Water, Machinery maintenance.


The estimated Budget for similar centers at the taluk level Rs. 10,00,000/-
on the following assumptions.

1] Government Building NO investment


2] There will be some modifications, electrification, painting etc.
3] Approximate Cost of Machinery & Equipment.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
27
Project Profile
Fr establishing a Food processing incubation center for
Processing of Spices, Ready to eat mixes, Juice, Jam, Jelly, Squash,
Ketchup, Sauce

Building
An covered area of 4000 Sq.ft. preferably with RCC roofing to provide for
an dust free and clean environment with three phase electrical connections
and water facilities {existing ITI’s can be one of the locations}
Cost Rs.300000/-

Machinery & Equipment: Rs 750000


List & layout plan attached

Recurring cost: per month


Raw material; all material to be brought by entrepreneurs
Cerials, spices, vegetables, fruits, preservatives, etc
Packaging material.

Power Rs 500
Water Rs 300

Staff & Labour.


Supervisor 2 nos Rs 2000
Workers 4 nos Rs 2000

The staff and labour can be trained in operation & simple


maintenance of machines

Women from the same locality can be identified and trained. They
can work in shifts or on mutually convenient days and times. All
entrepreneurs shall also be trained in operation & simple maintenance hence
dependence on others is not there. It also reduces costs and importantly
brings self confidence among the entrepreneurs.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
28
Management of center.
The center should function as a profit center generating revenue
through training and outsourcing of common facilities. Revenues can also
be generated by taking up marketing activities on behalf of the group or
individuals as dealers, distributors, agents etc.Ideally a Self Help Group or
an NGO should be entrusted with the task of managing the center with all
users having a stake either in equity or as a cooperative.

A cooperative gives them twin benefits. Earnings through profits and


dividends from the institution. It also gives them a sense of ownership
which increases active participation.

The tasks involved are multifarious:


 Needs good coordination to maintain and sustain logistic support for
inputs.
 To establish linkages with promotional & marketing outlets.
 Maintain proper books of account & documentation of activities.
 Maintain a Clean working environment
 Conduct training programmes frequently
 Constantly interact with government departments for information,
faculty, and incentives.
 Interact with financial institutions to assist entrepreneurs for working
capital etc. After attaining the self confidence to become independent
and work on their own.

Training
There are many government organizations providing technical
assistance and training. To mention a few KVIC, SISI, CEDOK etc the DIC
with help from the CEO Zilla panchayat can organize regular training
programmes. However training can also be imparted through food
consultants.

Marketing:
Marketing is one of the most difficult tasks at any level. An intensive
training on all aspects of marketing will have to be imparted from time to
time from experts in the field.
With the growth of retail industries the demand for goods from this sector is
expected to grow at 15 to 20% per year. The growth of retail industry
through malls and multiplexes are expected to reach the districts- Tier Two
cities -within the next five years which will create a huge market for
outsourcing. With developments in communication & transport systems
there will be a window of opportunities. Marketing at District level and in

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
29
big cities can be done through direct sales, participation in exhibitions,
through dealers or as direct vendors.

We could promote a few entrepreneurs to become self employed by


taking dealerships and retail selling through small vehicles under PMRY
scheme . This would complete the cycle.

It will also be appropriate if each District headquarters has an


exclusive marketing outlet for products made at taluk level. Small Space,
of about 10 Sq.Mtrs , can be rented for periods ranging from 15 days to
three months at a time at nominal costs. Such an outlet will provide
opportunities to a large section of entrepreneurs from the rural areas on a
continuous and rotational basis.

An entrepreneur from the district headquarters may be encouraged to


set up a market outlet as a commercial enterprise with assistance from
NABARD.

We strongly advocate a common facility center in each District or


taluk to foster quick industrial & economic growth of the rural areas.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
30
FOOD INCUBATION & COMMON FACILITY CENTER FOR
FOOD PROCESING INDUSTRIES.

Pure Spices and Spice products, Ready to Cook products, Ground nut
chikky, Food products packing, Pre cooked Turdal powder / Flakes

LIST OF MACHINERY

POWER
PLACE
COST
SL.
PARTICULARS CAPACITY PRICE
NO
Approx.

1 2 3 4 5 6
1. Roaster with ½ HP 5 Kgs per 4’ x 4’ Rs.30,000/ - ½
Geared Motor LPG batch HP
Operated
- - Rs.15,000/-
Digital Temperature -
indicator and
Controller
2. Chakki Mill 10 Kgs per 4’ x 4’ Rs.20,000/- 3
hour HP

3. Pulveriser/Hammer 10 Kgs/hour 3’ x 3’ Rs.40,000/- 5


Mill HP
4. Sieving Machine - 3’ x 3’ Rs.15,000/- 1
HP
5. Vertical Mixer 3 in 20 Kgs per 5’ x 5’ Rs.30,000/- 2
One batch HP

6. Dhal Cooking Vessel 10 Kgs 5’ x 5’ Rs.15,000/- -

7. Boiler Suitable to - - Rs.25,000/- -


above Vessel (Gas,
firewood)
8. Semi Automatic FFS 10-15 pouch 5’ x 5’ Rs.60,000/- 2
(Packing Machine per min. HP
Manually operated)

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
31
1 2 3 4 5 6
9. Tray drier (12 trays 30 Kgs per 8’ x 8’ Rs.50,000/- 3
conventional) batch HP

10. Groundnut Chikki 144 Chikkies 5’ x 5’ Rs.10,000/- -


Machine with one per batch
Mould 1 inch each
various
thickness

Total Rs.3,10,000

The above prices are exclusive of taxes, duties, transportation charges,


erection and commission charges .

TOTAL POWER REQUIREMENT FOR MACHINERIES 15 HP


GENERAL POWER REQUIREMENT - 5 HP
TOTAL SPACE REQUIRED 2400 SQ.FT.

EQUIPMENTS :

1. Electronic Platform Digital balance 100 Kgs- Rs.15,000/-


(Essae Teraoka )
150 Kgs - Rs.18,000/-

2. Working table 6’ x 2 .5’ x 36” with - Rs.15,000/-


SS Top
3. LPG fired steam generator capacity 150 kgs/hour- Rs.40,000/-
At one atmosphere pressure with piping
4. LPG Gas burners – Heavy duty with gas piping - Rs.10,000/-
And Cylinder handling with manifold
5. SS, Hindaulium vessels, ladles, trays, utensils - Rs.30,000/-
Refrigerator, etc.
6. Water purifier about 600 litres per hour - Rs.20,000/-
7. Hand operated impulse sealing machine - Rs. 2,000/-
8. Foot operated sealing machine - Rs.10,000/-
9. Food grade plastic crates - Rs.10,000/-
10. Frying pans – Hindaulium and Iron - Rs. 5,000/-
11. Mixer cum Grinder (domestic type) - Rs. 3,000/-
12. Miscellaneous items - Rs. 5,000/-
TOTAL: - Rs.1.83.000/-

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
32
The taxes, duties, transportation .packing and forwarding charges are
extra as applicable at the time of supplying.

Testing Laboratory equipments. – Rs.1,50,000/-

Estimated total cost of Machinery, Equipment &Laboratory

Rs.6,43,000/-

DAILY PRODUCTION CAPACITY

SL. PRODUCT PARTICULARS CAPACITY PER


NO. DAY (KGS.)

1. Pure Spices and Spice products 50 to 60 Kgs

2. Ready to Cook products 100 Kgs

3. Ground nut chikky 10 to 15 Kgs

4. Food products packing 100 Kgs.

5. Pre cooked Turdal powder / Flakes 100 Kgs

The man power requirement for Common facility center .

1. One in charge with basic knowledge in food processing.


2. Two assistants to assist the users of the facility.

Consultancy & Service Charges to set up the food incubation centre.

The services of a food consultant are necessary to establish the


centre. It is envisaged that, the centre can be established within six months.
However, it would be advisable to have a consultant for a longer period so
that the training programmes can also be started and standardized.

Initially, the services may be required, for at least 10 – 15 days in a


month with periodical visits. Subsequently, his services can be utilized
once a week as an adviser for the next six months. Revenue from training,
can be utilized to pay for the services.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
33
Consultancy cost:
Consultancy cost forfirst 6 months
Estimated cost of consultant @ Rs. 1000/- per day. For 15 days for first 6
months.
Estimated cost for 6 months = Rs. 90,000/-

Consultancy cost forNext 6 months to conduct training


During training period @ Rs. 1000/- per day for 7 days= Rs. 7,000/-
Estimated cost for 6 months = Rs. 42,000/-

Total cost of consultant for One year to establish and run the centre
= Rs.1,32,000/-
Total cost of project
Cost of Machinery Rs.3, 10,000
Cost of Equipment Rs.1, 83,000
Cost of Laboratory Rs.1, 50,000
Consultancy Rs 1, 32,000

Total cost of project = Rs 7, 75,000

Economics
Total investment Rs 10, 00,000/- including Building

Recurring cost per month 8000 per month


Consultancy cost 12000 per month

Total recurring cost per month = Rs. 20,000 /-


Total recurring cost per year = Rs 2, 40,000/-

Revenue estimates:
1] Common facility usage of machinery & equipment for 6 hrs per day
at Rs 120 per hr. for 25 days /mth. (6*120*25) Rs. 18, 000/-
Revenue per year Rs.2, 16,000/-

2] Entrepreneurship Development Programme & Training


Duration Three months
No. per batch 20 nos.
Fees per trainee Rs 1000/-
Revenue per batch Rs. 20,000
No. of batches per year 4
Revenue per year Rs 80,000/

Estimated Total Revenue per Year Rs. 2,96,000/-

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
34
CHAPTER - 4
GULBURGA TALUK AT A GLANCE
I General Characteristics : Taluk % District
Dist
a) Area in Square in hectares 173165 16,10,208
(1730 Sq.km) (16224 Sq.Km)
b) Number of Towns 1 18
c) Number of Municipalitie 1 12
d) Number of Gram Panchayats 37 336
e) Number of village (inhabilities) 136 1360
f) Average Rainfall 766 mm 777mm

II Resources :

A. Human Resources
(2001 census)
1. Population Male 3,48,665 15,92,789
Female 3,27,014 15,38,133

2. Literate Population 66.5 50.0


Male 76.3 61.8
Female 56.1 37.9

3. Density of Population / Sq Km. 391 192

4. Sex Ratio 938 966

B. Material Resources
1) Agricultural Resources
Bajra, Maize, Wheat, Gram, Tur, Paddy, Jawar, Bajra, Maize, Wheat,
Sunflower, Fruits, Vegetables, Gram, Tur, Groundnut, Sunflower,
Sugarcane Fruits, Vegetables, Sugarcane,
cotton.\

2) Horticultural Resources
(a) Mango, b) Banana
(b) Lemon, d) Gauva
(c) Pomogranate, Same for Taluks/District
(d) Papaya f)Fig
(e) Tomato g)Onion
(f) Green Chillies

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
35
3) Live stock Resources (Live stock Census 2003)
(a) Total animals 191255 2239870
(b) Poultry 75080 642534
(c) Veterinary Institutions 34 293

4) Mineral Resources: Building Stone, Shahabad Stone,


Shahabad Stone, Building Stone,
Murrum, Fullers Earth Murrum, Laterite,
Limestone,Shell
Moulding Stand,
Quartz, Fullers Earth
5) Infrastructure
a) Railway line (in kms) 38 225
b) Roads (km) 1494 8953
c) Surface Road (km) 883 5135
d) No.of Motor Vehicles
e) Lead Bank 77226 147887
State Bank of India State Bank of India
6) Technical Institutions
a) Engineering College 4 4
b) Polytechnics 6 9
c) Dental/Medical 8 8
7) Post and Telegraph Offices
a) Number of Post offices 82 622
b) Telegraph office 1 2
c) Telephone Exchange 27 160
d) Telephone 37093 77184
8) Existing Industrial
Structures
a) No. of Small Scale
Industries 3484 12056
b) No. of Medium & Large
Scale Industries 4 17

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
36
SUMMARY & CONCLUSIONS
1. Barren land available for industrialization 50111 hectors - 23 % of
all land.
2. Agricultural produce holds the sway. Scope for agro processing units
3. Scope for development of forestry & fisheries.
4. Scope for Cold storage, fruits & vegetables processing, live stock &
dairy products.
5. Knowledge connectivity through education, vocational training
centers for Farmers, artisans, craftsmen, & entrepreneurs.
6. Road connectivity from other taluks to Gulbarga City needs to be
improved.
7. Human resources in terms of engineers, skilled & unskilled work
force, & educated youth available for absorption in industries.
8. Good scope for marketing of consumer goods in the district.
9. Scope for promoting Tourism & tourism related service industries &
businesses.
10. PURA. – Common facility centers & incubation centers for fruits &
vegetables processing,
11. Mini marketing outlets for products from rural areas, SHG’s etc in
Gulbarga city.
12. Regular training programmes by experts / experienced faculty in
consumer chemicals, food products, Ready made garments. It has to be
joint effort by SISI / KVIC/ NABARD.
13. Scope for establishing a Biotechnology incubation center by
agriculture college Gulbarga has to be explored.
14. KBO. Knowledge Business Outsourcing to be encouraged by the
engineering colleges. Creation of center of excellence through TIFAC
assistance.
15. Department of Science & technology to set up promotional cells to
encourage innovations by students and linked to TePP DST New Delhi.

Requirement of Important Infrastructure.

 Knowledge facility center ITI’s should become the Hub of all


entrepreneurship activities and a nodal centre for all agencies to
train, demonstrate, discuss, disseminate information.

Primarily the progress at any level will depend upon the abilities of
the local people to leverage upon all the schemes & incentives offered by
Government. Its abilities to constantly interact with all promotional
agencies like SISI, KVIC, NABARD, AWAKE, NDDB, NGO’s, Training
institutions, financial institutions etc
SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
37

It is also important that there is interaction & linkages between all


the promotional agencies so that there is a wholistic approach and resources
mobilized and well utilized.
Information is the key to success.

At present each institution is engaged in its own sphere of activity


for different target groups as a result no definitive results are visible. There
is little follow up and escort services, which is essential for promoting
entrepreneurship. Most often there is no awareness nor publicity due to non
availability of a meeting place.
One of the major reasons is that there is no nodal or central meeting
place for all activities to take place. It is therefore proposed that a
Knowledge facility center is established in each taluk. This center should
be the springboard for entrepreneurs with the following facilities

• A meeting room for interaction between groups / entrepreneurs and


officials.
• A conference room for lectures with modern public address systems,
LCD projector, computer system/ Laptown and other teaching aids.
• Internet connectivity system
• An Incubation center for one or more trades i.e. food processing,
bakery products, processing of fruits & vegetables, ready-made
garments, biotechnology etc. with packaging machines.
• The center can be a common facility center by renting the facilities
on machine hr. basis for women, SHG’s and others for income
generation.
• To provide practical training & demonstrations in manufacture of
consumer chemical items
• To provide outlets (space) for marketing of products for short
duration for entrepreneurs from rural and other areas.

Such a knowledge center will facilitate in


• Conducting all meetings in permanent place.
• Common meeting place for all development & promotional agencies
to help better Coordination between all agencies.
• Will facilitate to invite knowledgeable people to impart information
& training
• Entrepreneurs will generate self-confidence and motivation.
• Group activities can be encouraged.
• Availability of officers / extension services routinely and regularly.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
38
• There will be a beehive of activities, which is the first step to
promote entrepreneurship.

 Better train connectivity between Gulbarga & Bangalore,


Hyderabad, &major districts in Karnataka.

 Airport to be developed.

 Improve State Highway & other roads connecting Gulbarga


and all taluks

 Broad Band connectivity to be provided

 Government of Karnataka Tourism Depts. To be strengthened


at Gulburga.

 Consortia of banks with targets for promoting


entrepreneurship lending on priority basis, ATM for rural areas etc.

 A master plan for promoting entrepreneurship linked to


PMRY and such rural development schemes.

 Tax concessions to be made more attractive to encourage


Large & Medium Industries.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
39
CHAPTER - 5
GENERAL OBSERVATIONS AND ECONOMIC
INDICATORS
Demography, Geography and other features

5.1 Geographical Position: -


Gulbarga Taluk is one of the ten taluks of the district. The taluk is
bounded by: Aland taluk and Bidar district in the North, Jewargi taluk in
the South, Aland and Afzalpur in West, and Chittapur & Chincholi taluk
in the East.

In formal days, Gulbarga was known as "Kalburgi" which means a


‘Stony Land’ of ‘Stone Roofing’ or a heap of stone in Kannada. The
taluk area is 1,730 sq. kms. The district headquarters is located in this
Taluk.

5.2 Soil: -
The district is grouped under North-Eastern Transition and Dry
Agro-Climatic Zone having an extensive plateau with an elevation of
365-610 meters above sea level. The soils in the district are mainly
categorized as shallow to medium black clay in major areas of North
Eastern Dry Zone and red laterite in the remaining area of North Eastern
Transition Zone - Aluvial soils are found on the banks of two major
rivers of Krishna and Bheema.

5.3 Rivers: -
Bennithora, Mulamari, Bheema and Kagina rivers are flowing in
the taluk.

5.4 Climate: -
The climate is generally dry and healthy. The seasons are in the
pattern of those generally in the deccan. The summer starts from the
middle of February and continues until end of June. The South-West
monsoon follows thereafter and extends upto the end of September. The
period from December to middle of February is the winter season.
The Normal rainfall in Gulbarga is 766 mm. During 2004, the rainfall
was 725.5 mm. The minimum temperature is between 14 °c to 15°c in
December and maximum temperature range between 42°c to 45°c in
summer.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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5.5 Administrative Division: -
The district has three sub division-namely Gulbarga, Sedam and
Yadgiri. Gulbarga sub division consists of four taluks - Gulbarga, Aland,
Afzalpur and Jewargi. Gulbarga taluk consists of 37 Gram Panchayats, 6
Hoblies, 136 inhabitated villages and one town.

5.6 Population and Occupational Structure: -


The total population of Gulbarga Taluk as per 2001 census are
6,75,679 of which 3,48,665 are male and 3,27,014 are female. The urban
and rural population are 4,30,265 and 2,45,414 respectively. The density
of population in the taluk is 391 per sq.km; which is higher than district
average of 192 persons per Sq.km. The sex ratio of the taluk is 938
compared to 966 in the district. The literacy rate in the taluk is highest of
all taluks at 66.5% as against district average of 50.50.

While reviewing the occupational distribution of population in


Gulbarga taluk as per 2001 census, it is revealed that, the main and
marginal category of workers constitute 81.7% and 18.3% respectively.
The non workers constitute 67% of the total population. Considering the
workers in different sectors, it was found that cultivators accounted for
15.8%. Agricultural labourer 22.9%, Forestry, Fisheries and other
activities accounted for 2% and other services constituted 59.8% to the
total workers. Of the total workers, male constitute 71.3% while 28.7%
represent female workers. In the district the male workers constitute
60.2% and female workers form 39.8%

5.7 Area and Land Utilisation Pattern: -


The land utilization pattern of Gulbarga Taluk during 2004-OS
was as under :
Table 2.1
Statement showing Land Utilisation in Gulbarga Taluk as on 2004-05
Sl.No. Category Area in Ha.
(2004-05)
1 Forest 4121
2 Land put to non-agriculture use 8150
3 Barren 4223
4 Cultivable waste 78
5 Permanent pastures 4322
6 Trees and Groves 39
7 Fallow land 37738
8 Net area sown 152464
9 Total 211135
Source: - District at a glance- Gulbarga – 2004-05
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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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Table 5.1 indicates that about 72.2% of the total area was under
agriculture which confirm the agrarian economy of the taluk. Further, the
Barren area, Land put to non-agri use and follow land constituted 50111
hectares which is about 23.7% of the total area, can be utilized for the
development of the industry.

5.8 Income: -
The income is a good indicator of economic development
achieved by various sectors of the economy in an area/district. However,
the sectoral composition of the taluk wise income in respect of Gulbarga
Taluk is not available. Hence, the sectoral composition of the district as a
whole, is analysed in the following paragraphs which more or less depict
of the economy of the taluk at constant prices in 1993-94. The gross
domestic product of the district stands at 8787 at constant prices (1993-
94) which is less than the total gross domestic income of the district of
Rs.280420.00 lakhs and this accounted to 3.88% of the total net domestic
income of Rs.7232038.00 lakhs of the state. The sectoral composition of
the district is presented in table 2.2

Table 5.2
SECTORAL COMPOSITION OF GROSS DISTRICT INCOME OF
GULBARGA DISTRICT AT CONSTANT (1993-94) PRICES
District State
Sl. Sectors Rs. In lakhs % to total (Rs. In
No. income lakhs)
1 2 3 4 5
1 Agriculture including 83141 29.65 1505902
Animal Husbandry
2 Forestry and logging 5296 1.89 103311
3 Fishing 334 0.12 29909
4 Mining and quarrying 4341 1.55 56839
5 Manufacturing 26388 9.41 1453983
6 Construction 31364 11.18 529310
7 Electricity, gas and 5209 1.86 159763
water supply
8 Railways 1045 0.37 30967
9 Transport by other 7568 2.70 217837
means
10 Storage 74 0.03 1827
11 Communication 13853 4.94 341523
12 Trade, hotels and 27209 9.70 957844
restaurants
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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
42
1 2 3 4 5
13 Banking and 7425 2.65 453576
Insurance
14 Real estates, 20975 7.48 491803
ownership of
dwellings, business
and services
15 Public Administration 10692 3.81 260651
16 Other Services 36507 13.02 636993
Total 280420 100.36 7232038
Source: - State Domestic Product Karnataka, Director of Economics,
Statistics – 2003-04

Table 5.2 indicates that the agriculture sector holds its sway in the
economy of the district as it contributes 29.65% to the districts income.
The next two sectors in terms of higher contribution are other services
and "Construction" which contribute 13.02% and 11.18% respectively to
the districts income. The table also indicates that the income of the
district from other key resources of the sectors is Forestry, Fishing and
Mining and Quarrying are very insignificant contribution being 1.89%,
0.12% & 1.55% respectively to the districts income. This suggests that
action may be taken to develop forestry and fishing sectors and
exploitation of minerals of the district for an overall development of
the district and improving its economy. At present, there is not much
scope for the resource based industry related to Forestry, Fishing and
Mineral. The per capita gross domestic product of the district stands at
Rs.8787.00 at constant prices in 93-94 which has less than the average
state per capita GDP of Rs.13429.00.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
43
CHAPTER - 6

RESOURCES OF THE TALUK


Portrays the resources endowment – natural & human

It is of vital importance to study the various resources available in


an area before embarking upon the identification of industries, having
scope for development in that area. It is a well-known fact that the
industrial development of an area depends to a great extent on its
resource endowment and its proper exploitation and utilization. In this
chapter, the resources of Gulbarga taluk have been analysed and this
would lead to justification of resource based industries in the Taluka.
The resources of the area can be distinctly classified into the following
categories.
(a) Material Resources,
(b) Human Resources.

(a) Material Resources:

6.1 Agriculture: -
(a) Land Holding: -

There are 52,089 land holdings in the taluk. Table 3.1 indicates the
category wise land holdings of the farmers in Gulbarga Taluk during
2004-05

Table 6.1
Category wise Land Holdings of farmers in Gulbarga Taluk in 2004-
05.
% to % to
Sl. Number Area in
Category total total
No Hectares
Nos. Area
1 Marginal - below 1 hec. 8105 15.6 5101 3.3
2 Small - 1-2 hec. 17470 33.5 26045 16.9
3 Semi-medium - 2-4 hec 15844 30.4 43820 28.5
4 Medium - 4-10 hec. 8805 16.9 52696 34.2
5 Large -More than10 hec. 1865 3.6 26214 17.0
J Total 52089 100.0 153876 100.0

Since, the No. of land holdings upto 4 acres constitute about 80% of
the total land holdings, mechanism of agricultural operation would not be
economical.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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(b) Agricultural Crops: -

Table 6.2 indicates the area and production of important


agricultural crops in Gulbarga Taluk during 2004-05.

Table 6.2
Important Agricultural Crops in Gulbarga taluk during 2004-05
Taluk Taluk District District

Est. Est.
Sl. Name of the Area (in % % Area in
Production Pro.
No. Crop Hectare) Area Prod. Hec.
(Tonnes) (Tonnes)

1 2 3 4 5 6 7 8
CEREALS
1 Paddy 727 1825 1.1 1.1 65687 164874
2 Jowar 34815 27155 11.9 12.2 292954 222645
3 Bajra 9807 17162 13.5 5 72378 126661
4 Maize 383 666 14.9 4.9 2568 4468
5 Wheat 1871 1590 10.7 10.7 17523 14895
PULSES
1 Gram 11227 7342 8.3 8.2 136025 88960
2 Tur 55850 50265 16.0 16.0 349894 314905
OIL SEEDS
1 Ground Nut 463 426 0.8 0.7 60947 56071
2 Sun flower 16342 8661 10.3 10.3 159194 84373

COMMERCIAL CROP
1 Sugarcane 801 44776 11.6 11.6 6876 384368
2 Cotton 15 38 0.1 0.1 17295 44448
Source: - District at a Glance - Gulbarga - 2004-05

It could be seen that in the taluk Jowar, Bajra and Wheat are
important cereals, Gram, and Tur are important pulses. Groundnut and
sunflower oil seeds are important oil seeds grown in the taluk. Sugarcane
has also got good acreage compared to that of the District. The area
under crops "more than one" constitutes 33% of the Net area sown in the
taluk.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
45
c) Agricultural Marketing: -
The agriculture produces grown in the area are generally brought to
the regulated market for fetching better prices for the farmers. In Gulbarga
Taluk, there is one main regulated market and one sub regulated market.
Total transactions for agriculture produce that has taken place during 2004-
05 was Rs. 19,239.07 crores against Rs.41,403.67 crores transacted in the
district.

6.2 Horticulture: -
The soil and climate of the taluk are favorable for growing
horticultural crops in the taluk. The farmers are not coming forward to
increase area under horticulture crops due to the absence of marketing
conditions and cold storage facilities. The production of horticulture crops
may go up if some cold storage facilities are established and some fruit
processing units are started in the taluk.

Table 6.3
Area and Production of horticultural crops in Gulbarga Taluk during
2004-05.
Taluk to District
Taluk (M.T)
District (M.T)
Sl. Crop Area Prod. % % Area Prod.
No in Hec. Area Prod. in
Hec.
1 2 3 4 5 6 7 8
1 Mango 310 2170 15.3 15.4 2028 14126
2 Banana 500 14060 19.9 19.6 2509 71836
3 Lemon 84 2100 5.2 5.6 1601 37720
4 Papaya 190 5700 76.6 56.3 248 10128
5 Grapes 13 300 12.3 17.7 106 1695
6 Tomato 146 4450 14.9 20.1 977 22130
7 Onion 444 8880 19.8 24.4 2240 36340
8 Dry Chillies 20 20 1.0 0.8 3073 3986
9 Green 180 1350 11.89 11.30 1513 14943
Chillies
Source: - Dy. Director of Horticulture – Gulbarga 2003-04

The table above shows the area and production of various


horticultural crops during 2003-04 in Gulbarga Taluk.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
46
6.3 Sericulture: -
The sericulture is not important in the district. It has been reported
that the area under Mulberry cultivation is going down in the taluk
gradually year by year due to lack of marketing facilities and low price
offered by the traders to the farmers. During 2004-05, the area under
mulberry in Gulbarga Taluk was around 51 hectares compared to 266
hectares in the District. The cocoon production in the taluk was 20 tonnes
and only 48 Farmers were engaged in that occupation.

6.4 Forest: -
The taluk has no significant forest resources. The forest area in the
taluk constitutes only 2.38% of the total geographical area. Even the district
forest area accounts for only 4% of the total geographical area of the
district. The taluk as well as the district do not have any significant minor or
major forest produce.

6.5 Water Resources and Irrigation: -


The irrigation facilities have improved in the taluk though not
significantly.

Table 6.5
Irrigation Facilities in Gulbarga Taluk during the year 2004-05
Area in Hectares
Sl. Sources Taluk % to District
No Districts
1 Canals 175 0.11 1,49,074
2 Tanks 90 2.71 3,324
3 Wells 3504 11.15 31,410
4 Borewell 285 3.95 7,208

Total 4054 2.06 1,96,304


Source: - District at a glance – Gulbarga 2004-05

6.6 Fisheries: -
Since Gulbarga is a land-lacked taluk inland fisheries is the only
source of fish catch. However, the fisheries resource is insignificant in the
taluk as well as in the district. The Districts fish catch is around 4,358
Tonnes during 2004-05.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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6.7 Animal Husbandry: -

Gulbarga Taluk has a live stock population of 1,91,255 numbers as


against the district total of 2239870 (8.5% of the district). Category wise
live stock population in Gulbarga Taluk is given in table No. 3.5

Table 6.7
Live stock population of Gulbarga Taluk during 2004-05
Category wise population
Sl. Category Numbers District
No.
1 Cattles 83,819 8,33,339
2 Buffaloes 22,575 2,27,249
3 Sheep 8,481 4,60,804
4 Goats 57,771 5,64,114
5 Pigs 4,145 41,103
6 Dogs 14,235 1,10,462
7 Other Live Stocks 229 2,799
Total 191255 2239870
8 Poultry 75,080 6,42,534
Source: - Gulbarga District Glance 2004-05

There are 2 veterinary hospitals, 8 veterinary dispensaries, 12


primary veterinary centers, one mobile dispensary and 11 artificial
insemination center, in 2004-05, to take care of medical needs of cattle and
other animals in Gulbarga district.

Establishment of milk dairy, Karnataka Dairy Development


Corporation has given a big boost to the development of live stock and
dairy industry in the taluk. During 2004-05, there were 23 milk producer
co-operative societies in the taluk as against 180 numbers in the district.

6.8 Minerals: -
Gulbarga taluk is not very rich in minerals. Minerals like Fullers
Earth, Shahabad Stone, building stone, Murrum are available in Gulbarga
Taluk.

6.9 Human Resources:


Availability of natural resources in a particular area is not alone not
sufficient for industrial development. There should be adequate availability
of skilled manpower among its human resources to exploit natural
resources.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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6.10 Population: -
According to 2001 census, the population of Gulbarga Taluk was
6,75,679 consisting of 3,48,665 males and 3,27,014 female. The taluk has
2,45,414 rural population and 4,30,265 urban population. The urban
population of the taluk constitutes more than 50% of the District urban
population of 8,52,621. The taluk population is about 21.58% of that of the
district i.e. 31,30,922 persons. The density of the population of the taluk is
391 persons per Sq. km. compared to the district average of 192 persons per
Sq. km. The literacy rate of the taluk constitutes 66.5% with literacy rate
among men 76.3% and Female 56.17%. The literacy rate of the taluk is very
high compared to that of the district average of 50.0%

6.11 Unemployed Registered: -


The details of persons with education registered in employment
register in the district for the year 2004-05 are noted below. Table 3.6
registered unemployed persons category wise in Gulbarga District
Employment exchange during the year 2004-05. It is reported that male
unemployed persons is gradually decreasing from year to year. In case of
Female unemployed persons, it is also showing decreasing trend. This
indicates the scope for employment is gradually increasing because of the
different projects implemented in the district, besides scope created for self
–employment. The same thing is confirmed if we review the registered
unemployed persons in Gulbarga Taluk during the year 2004-05 which is
shown below.
Table 6.11
Details of persons registered in Employment Exchange in the District
as on 31-03-05
2001-02 2002-03 2003-04 2004-05
Sl. Category M F M F M F M F
No
1 Middle 5702 1082 5440 1122 5043 1058 4808 1006
School
2 SSLC 37844 6802 37117 6959 35568 6543 34862 6340
3 BA 1678 782 1683 789 1558 787 1554 799
4 B.Sc. 541 215 535 222 588 219 581 239
5 B.Com. 612 226 608 232 802 233 784 231
6 Diploma 1620 196 1578 219 1444 203 1390 222
Holders
7 Artisans 4673 263 4391 245 3804 224 3626 217
8 Others 32682 11040 31619 10966 30053 10849 28231 10762
Grand 85352 20606 82971 20754 78860 20116 75836 19816
Total
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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
49
Registered unemployed persons in Gulbarga Taluk Employment Exchange
year wise during the year 2004-05

Table 6.12
Taluk wise Details of persons registered in employment exchange in
Gulbarga Taluk as on 31-03-2005
2001-02 2002-03 2003-04 2004-05

Sl. District M F M F M F M F
No
Gulburg 2762 6861 2697 6922 2587 6700 2561 6476
1
a 0 0 7 2

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
50
CHAPTER - 7

INFRASTRUCTURE
Availability of sufficient infrastructure facilities like land, factory
accommodation, railways, Roads, Airlines, Post offices, financial
institutions are essential for development of industry in an area. While
thinking infrastructure development, it can be kept in view to provide Urban
facilities in Rural Areas (PURA) as the present President of India envisaged
in his vision 2020 on resurgent Rural India. The PURA consisting of four
connectivity of the village cluster through quality road and transport;
electronic connectivity through tele-communications with hi band width,
fiber optics cables reaching rural areas from urban cities and through
internet ‘Ki soks’ knowledge connectivity through education, vocational
training for farmers, artisans and craft men and entrepreneurship
programme; these three connectivity’s leading to economic connectivity
through starting of enterprises with the help of banks; micro-credit and
marketing the products.

It is in this context, the present infrastructure facilities available in


the taluk as well as in the district are analyzed below and further
improvement of the same will be discussed later.

The infrastructure facilities are classified into two broad categories


i.e. physical infrastructure and social infrastructure.

(a) Physical Infrastructure: -


It is mentioned earlier that 12373 hectares of land not available for
‘cultivation’ and follow land constitute 37,738 hectares in Gulbarga Taluk.
That is to say 50111 hectares of land in the taluk can be allotted for setting
up of industries. The area can be utilized for setting of industry in future
either allotting the area to prospective entrepreneurs or the Government
agencies may acquire them, develop the land for industrialization .

The taluk receives water supply from Bheema River, Bennithora


river and Bhosga tank due to implementation of water supply projects by
Karnataka Water Supply and Development Board. In addition, Gulbarga
taluk also receives water from Mullamari River. The water received may be
used to supply to the industries coming up in the near future.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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7.1 Roads: -
Proper road network is very essential for acquiring raw materials
from different sources as per the requirement of existing and new industries.
The same also helps in marketing of the finished products of the industries
located in an area.

The road network of Gulbarga taluk is placed in table 7.1

Table 7.1
Total Road length in Gulbarga Taluq during 2004-05

Sl. Type of Road Taluk District


%
No
1 State Highways 112.50 10.28 1094.00
2 Major District Roads 48.20 2.78 1731.73
3 Other District Roads 26.50 40.64 65.20
4 Village Roads 648.79 11.67 5560.97
5 Municipality Road 657.46 79.70 824.89

Total 1732.45 21.17 8184.73


Source: District at a Glance Gulbarga 2004-05

There is no national highway in the taluk as well as in the district.


This is a serious draw back for the development of trade, commerce and
industry of the taluk as also that of the district.

7.2 Road Transport: -


Road transport plays a vital role in industrial development of an area.
There are various kinds of road transport available in the taluk right from
bullock cart to heavy goods carrier vehicle. Category wise number of
vehicles registered in Gulbarga taluk as on 31-3-2005 placed below in the
table 7.2.

Table 7.2
Category wise number of vehicles in Gulbarga Taluk as on 31-3-2005
Sl. Type of Vehicle Taluk % District
No
1 2 3 4 5
1 Scooters/Motor Cycles 59719 56.62 105470
2 Cars 3212 65.75 4885

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
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3 Lorries (Goods Vehicles) 2676 48.84 5479
4 Omni Bus 1035 46.39 2231
1 2 3 4 5
5 Cabs 167 38.66 432
6 Auto Rickshaws 4384 62.41 7025
7 Tractors & Trailers 2566 16.86 15217
8 Ambulance 22 64.71 34
9 Others 3445 118.43 7114
Total 77226 52.22 147887
Source: - District at glance – Gulbarga-2004-05

The road transport position in the taluk is reported to be not


satisfactory. The vehicles of the taluk constitute more than 50% of the
district. It is reported that during five years, the number of vehicles
increased by 40%.

7.3 Railways: -
The railway track in the district is 225 kms of which Gulbarga Taluk
accounts for 38 kms. Gulbarga is connected by Mumbai & Chennai route
and also Bangalore-New Delhi route. However, the railway coverage in the
taluk as well as in the district is not satisfactory.

7.4 Air Transport: -


Neither Gulbarga Taluk nor Gulbarga district has air transport
facility. However, there is a proposal for an airport in Gulbarga.

7.5 Communication: -
Post and telecommunication facilities available in Gulbarga Taluk
are given below.

Table 7.3
Postal & Telecommunication Network in Gulbarga Taluk
as on 31.3.2005

Sl. Numbers
No. Category Taluk % District
1 Post Offices 82 13.18 622
2 Telegraph Office 1 50.00 2
3 Telephone Exchange 27 16.88 160
4 Telephones 37093 48.06 77184
Source: - District at a glance – Gulbarga – 2004-05
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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
53

It has been reported that telephone net work is quite satisfactory in the
Taluk and accounts for 48.1% of the district. Besides, it is reported that there is
a very large no. of mobile phones from Hutch, Airtel, BSNL, Reliance, Spice,
etc. across the various sections of the population in the taluk which is very
significant and has made the communication speedier, easier, reliable and more
economical.

7.6 Power :-
All 136 villages in Gulbarga Taluk have been electrified. There are
two Power-receiving stations (33/11 k.v.) in Gulbarga one at Farthabad with
1x5 MVA and 1x1 MVA and the other at Jambaga 1x5 MVA. The future
plan for establishing power receiving stations are at Hadgil Harthi. 2x5
MVA and at azadpur 2x5 MVA. The discussion with offices of GESCOM
reveal that the electric supply position in the district is quite satisfactory and
there would be no problem for the supply of electricity to new industries.

Table 7.4 provides details about category wise number of electric


connection and units consumed in Gulbarga Taluk as on 31-3-2005.

Table 7.4
Category wise number of consumers and consumption of Electricity in
Gulbarga Taluk as on 31-03-2005
Consumption of units in lakhs
Sl. No. of Consumers Taluk District
No. Category Taluk District
1 House 118316 423002 742.50 1546.38
Consumption
2 Industrial 3156 10145 315.00 503.39
Consumption
3 Commercial 19084 40099 172.50 450.36
Consumption
4 I.P. Sets 7474 46055 9.00 1178.79
5 Others 738 2717 420.20 669.22
Total 148768 522018 1659.20 4348.14
Source: - District at a glance – Gulbarga – 2004-05

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
54
7.7 INDUSTRIAL AREA & INDUSTRIAL SHEDS

Karnataka Industrial Area Development Board acquired 253.48 acres


land in Kapnoor and Mundargi and created 320 industrial plots of which
only 9 plots are presently vacant for allotment. KIADB has further
acquired 620 acres land in Nadur-Kesaratgi and has taken up development
of 200 acreas under Phase-I.

Karnataka State Small Industries Development Corporation


Ltd(KSSIDC) has created plots and sheds in industrial area in the district as
under:-

SL Industrial Industrial plots Industrial


NO. area sheds
Constructed Vacant Constructed Vacant
1 Gulbarga 37 0 50 0
2 Kapanoor 63 3 157 25
3 Shabad 8 4 34 0
4 Chittapur 8 3 44 30
5 Aland 4 0 50 0
6 Shorapur 4 0 15 8
7 Sadam 8 5 45 17
8 Jewargi 0 0 23 14
9 Chincholi 8 2 24 15
10 Shahapur 0 0 240 120
Total 140 17 682 229

7.8 Industrial Estate and Area: -


Availability of readymade factory sheds/developed area facilitates
setting of industries since all entrepreneurs are not capable of developing
their own lands or construct their factory sheds. The Karnataka Small Scale
Industries Development Corporation, has constructed industrial sheds in the
district for encouraging industrialization. In Gulbarga Taluk, two industrial
estates are functioning – one at Gulbarga and the other at Kapanoor. In
Gulbarga, 86 number of sheds/plots are allotted for setting up of industries.
In this industrial estate there are 31 General Engineering industries and 16
chemical / ceramic, cement pipe manufacturing units, besides other
industries like plastic, food processing etc. In Kapanoor industrial estate
194 sheds/plots were allotted to the prospective entrepreneurs for setting up
of industries. In this estate, there are 60 numbers of General Engineering
units followed by 41 plastic industry and 15 Dal mills, besides other type of
industries like chemical, stone polishing etc. In addition, the Karnataka

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
55
Industrial Area Development Board (KIADB) has also developed industrial
plots at Kapanoor in Gulbarga Taluk. The information regarding industrial
plots developed and allotted in Kapanoor I and II Stage and Nandur –
Kesartagi in Gulbarga Taluk are as under

Table No.7.5
Statement showing the details of Industrial area developed by KIADB
in Gulbarga Taluk as on 15-6-2005
Sl. Kapnoor Kapnoor Nandnur-
No Ist stage IInd stage Kesartagi
1 Year of Acquisition 1982 1986 1998
2 Year of Development 1987 1990 1998
3 Area available for 59.80 acres 145.00 acres 515.00 acres
allotment
4 No. of units allotted 87 141 9
5 No. of plots vacant - 4 420 acres
6 No. of units under 68 64 2
Production
Source: - KIADB – Gulbarga

II Social Infrastructure:

7.9 Education: -
Education plays a vital role in the industrial development, since every
industry needs skilled, semi-skilled or unskilled workers. The smooth
functioning/ running of the industries depend upon the supply of suitable
persons by the educational institutions in an area. The number of
Educational Institutions and the students take off in Gulbarga Taluk as on
31-3-2005 are given in the table below.

Table No. 7.6


Category wise Educational Institutions in Gulbarga Taluk
during 2004-05.

Sl. Category-wise No. of No. of Students


No Institutions Institutions Boys Girls
1 2 3 4 5
1 Primary Schools 397 49,247 43,970
2 High Schools 156 9,960 8,417
3 Pre University 53 8,168 3,509
4 General College 13 4,544 3,120
1 2 3 4 5

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5 Medical College 6 226 144
6 Polytechnic 6 790 365
7 Engineering 4 908 226
8 Dental College 2 23 47
Source – District at a Glance – Gulbarga 2004-05.

It is worth to be mentioned that 50% Colleges in the District belongs


to Gulbarga Taluk. Besides Gulbarga Taluk has got all the Medical,
Engineering and Dental Colleges in the district. Out of 9 polytechnics in the
district, six are in Gulbarga Taluk. It is expected that there is no dearth of
skilled and unskilled persons for manning the industries to be set up in the
near future. It is also informed that there is an Agriculture College in the
district where from the agriculture graduates will be available who can
establish Agri-Clinics for providing extension and technical services for
production of Bio-fertilizers and bio-pesticide including Vermi Composting
in the taluk as well as in the district.

Besides above, there is one Artisan training Institute which provides


training in the trade of Carpentry, General Engineering / Black Smith and
electrician in Gulbarga Taluk which produce skilled workers who can be
employed by industries or start their own ventures. There are also
traditional artisans in the taluk as well as in the district. Table 7.7 indicates
details of artisans in Gulbarga Taluk

Table 7.7
Statement showing the details of Artisans in the Gulbarga Taluk
and District as on 31-3-2005.

Sl. Category/Trade Taluk % to District District


No. No. No.
1 2 3 4 5
1 Carpentry 593 12.32 4,813
2 Black Smiths 413 12.83 3,218
3 Pottery 302 11.35 2,661
4 Cobbler 613 11.25 5,448
5 Goldsmith 121 11.91 1,016
6 Basket Maker 313 11.08 2,824
7 Mat Weaver 221 10.95 2,018
8 Food Processor 441 10.35 4,262
9 Barbers 453 11.01 4,115
10 Tailors 953 10.99 8,672
11 Dhobies 381 10.80 3,529
12 Masons 621 10.63 5,816
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1 2 3 4 5
13 Bee-Keeper 7 9.00 78
14 Lime 28 11.62 241
15 Agarbathy Roller 165 11.55 1,428
16 Beedi Roller 75 10.25 732
17 Others 1,082 12.84 8,430
Total 6,782 11.44 59,301

7.10 Health and Family Welfare: -


Medical facilities plays a crucial role for the smooth functioning of
industries. Workers employed in the industries need to be provided with
proper medical as and when required to keep them fit. During 2004-05,
there were three hospitals, 12 primary health centers, five dispensaries, two
family welfare centres and 52 family welfare sub-centres in the taluk with
835 beds.

7.11 Trade, Commerce and Marketing: -


Marketing has assumed great importance today. The liberalization in
the Indian economy has created acute competition in the marketing of
products. Manufacturer has now to produce the items which consumers
desire, sell them the required quality and quantity at a desired place where it
is convenient to them to purchase. There exists good Market Potential
within the taluk, in the district as well as in the neighboring districts.
Besides, the large population of the district provides good scope for the
marketing of consumer goods. With a gradual increase in the per capita
income, the purchasing power has increased which created scope for
marketing of the products. Railways connect Gulbarga to big cities like
Mumbai, Chennai, Hyderabad, Bangalore etc. A quality products
manufactured in the district can find market in the metros mentioned above.

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CHAPTER – 8

INDUSTRIAL SCENARIO
A study of the present industrial structure of Gulbarga Taluk will
enable to understand the extent of Industrial development that has taken
place in the taluk, type of existing industries, and the area where they are
concentrated. It will help in identifying new industrial opportunities.

8.0 Large and Medium Scale Industry: -

There are four large and medium scale industry in the taluk. Out of four –
M/s. Hoysala Cement-manufacturing cement
M/s. MSK Mills – manufacturing cloth,
M/s. Gulbarga Agro Extractions – a solvent plant are not working, only
M/s. Detergent India ltd, established in 1993, manufacturing soap and
detergent powder is working. The investment, employment and capacity of
the unit are Rs.73 crores, 50 workers and 500 tons per day respectively.

8.1 Small Scale Industry: -


Table 8.1 indicates the growth of small scale industry in Gulbarga
Taluk during the five years from 2001 to 2004. The table indicates that the
trend of growth of SSI Units have been erratic. At the end of 2004-05, there
were only 3,484 SSI Units in Gulbarga Taluk with an investment of Rs.
7,510 lakhs(approximately) and employment of 17,634 workers.

Table No. 8.1


No. of SSI Units Registered in Gulbarga Taluk
during 2000-01 to 2004-05

During April to March Cumulative


Investment
No. of No. of Inv. In
in P&M Emp. Emp.
Year SSI SSI P&M (Rs.
(Rs. In (Nos) (Nos)
Units Units In Lakhs)
Lakhs)
2000-01 158 616.59 764 2843 6065.08 14873
2001-02 169 329.47 645 3012 6394.55 15518
2002-03 198 406.34 884 3210 6800.89 16402
2003-04 152 356.55 643 3362 7157.44 17045
2004-05 122 350.04 589 3484 7507.48 17634
Source: - DIC Gulbarga.

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While reviewing the Table 6.2 indicating the category wise of Small
Scale Industry established in Gulbarga Taluk, it is revealed that during the
year 2004-05, the highest number of Industries established is in the area of
“Food and Food Products” category followed by “Repair and Servicing”
and “Textile Garments” It is worthwhile to mention here that no industry
has been set up in the categories of “Glass & Ceramics”, “Metal Products”,
“Machinery & Machinery” and “Transport and Equipment” in Gulbarga
Taluk during 2004-05

Table 8.2
Category wise No. of Small Scale Industry in Gulbarga Taluk
during 2004-05

Industry Group Investment in

Employment
Sl. Plant and
No. of Machinery
No. units (Rs. In lakhs)
Particulars

1 Food & Food products including 35 87.50 280


beverages
2 Textile garments 15 45.30 45
3 Wood and wood based products 12 36.25 36
4 Printing and paper products 2 6.05 8
5 Leather products 12 36.35 35
6 Rubber and plastic products 4 12.08 12
7 Glass and Ceramics
8 Metal products
9 Machinery & Machinery parts
10 Electronic & Electronic Products
11 Chemical & Chemical Products 2 6.04 8
12 Transport and equipment
13 Repair & Servicing 18 54.35 54
14 Miscellaneous 22 66.10 111
Source: - DIC Gulbarga

8.2 Khadi and Village Industry: -


Khadi and Village Industries Board is the agency which helps the
rural artisans in pursuing their traditional avocation. The Board assists
entrepreneur by providing training for upgrading their skill and financial
support for their ventures. The board also helps the units in marketing of
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their products through their outlets. The main purpose of the Board is to
encourage Khadi and Village Industries for creating employment and raise
village economic level. The KVI Board has encouraged 686 individual with
loan of Rs.302/- lakhs to set up Khadi and Village industries in the district
till 31-3-2005. The Board also encouraged 275 Nos. of registered
institutions to set up KVI industries by providing loan amounting to
Rs.233/- lakhs, which employed 579 persons, 52 co-operative societies also
availed loan amounting to Rs.128/- lakhs under KVIC Scheme.

Under CBC Scheme, the KVIB encouraged 150 Nos. of units in


Gulbarga taluk with a total investment of Rs.1,254 lakhs employing 393
persons. Of these, 42 units are working. Under the scheme, in the whole
district, 374 No. of units were encouraged with a total investment of
Rs.2,945 lakhs, employing 1300 persons of which 93 units are working.

Under, KVIC Margin Money Scheme 11 No. of units were


encouraged in the taluk by KVB with an investment of Rs.69 lakhs. 67 units
in the district with a total investment of Rs.96 lakhs. All these units are
working.

The details of activity wise KVI industries encouraged by KVI


Board are given below in the table 8.3

Table 8.3
Khadi & Village Industries Activity wise in Gulbarga District
as on 31-03-2004
(Rs. In lakhs)
Sl. Activity No. of Sanctioned
No. units Amount
1 2 3 4
1 Khadi 1 43.36
2 Wool 1 120.00
3 Cereal Cleaning 244 143.01
4 Jaggery & Khandkari 33 6.66
5 Electronics 5 10.16
6 Mineral based Lime 78 40.22
7 Polymer Chemicals 8 2.37
8 Readymade garments 44 5.73
9 Cane & Bamboo Works 66 2.00
10 Coir 12 2.37
11 Agri based 216 52.01
12 Agarbathi/Matches 62 21.91
1 2 3 4
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13 Handmade paper 4 4.96
14 Fruit Preservation 2 3.23
15 Leather 196 15.20
16 Non Edible Oil, Soap 18 18.71
17 Silk 1 6.30
18 Ghani 144 42.96
19 Service 37 4.92
20 Neera Palm 8 2.13
21 Pottery 61 29.51
22 Polybastra 1 3.19
Total 1242 580.91
Source: - K.V.I. Board

8.3 Prime Ministers Rozgar Yojana: -


Under this programme, Government decided to encourage
unemployed youth belonging to the age group of 18-35 years, with a
minimum qualification of 8th std. Pass and ITI Pass to start their own
venture for self-employment in Table 8.4(a) indicates finances sanctioned
and disbursed under the scheme to the entrepreneurs in Gulbarga during
2001 to 2004.

Table 8.4(a)

Entrepreneurs assisted under PMRY in Gulbarga Taluk


during 2001-04
Rs. In lakhs
2001-02 2002-03 2003-04
No. of Application Recommended to 1754 1744 1085
Bank
No. of Application sanctioned by 927 916 939
Bank
Amount sanctioned 342.81 449.49 581.39
No. of cases to whom loan Disbursed 633 693 930
Amount Disbursed 275.01 244.56 502.04
Source: - PMRY Progress Report – DIC – Gulbarga.

From the table above, it could be seen that there is a progressive


increase in terms of sanctions and disbursement both in terms of Nos. and
amount.

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Table 8.4 (b)
No. of Entrepreneur and Amount sanctioned activity wise under
PMRY Programme during 2001-04.
Amt. In Rs.Lakhs
2001-02 2002-03 2003-04
Activity Nos. Amount Nos. Amount Nos. Amount
Industry 95 24.00 98 53.10 60 27.00
Service 240 98.75 280 147.11 338 152.10
Business 542 200.06 517 238.23 647 384.29
Agro & Allied 50 20.00 21 11.00 40 18.00
Source: - DIC Gulbarga

The table indicates that there is an increasing activity, in general in


the PMRY Programme in the taluk.

8.4 Handloom and Power loom Industry: -


Handlooms are another type of traditional industries existing since
time immemorial. The industry has provided good employment
opportunities to weavers community in rural areas. In Gulbarga Taluk, there
were 136 Nos. of Handlooms with an investment of Rs. 9.52 lakhs and an
employment of 392 persons as on 31-3-2005. These units produced the
handloom cloth to the tune of Rs.44 lakhs per annum.

There were 30 Nos. of power looms with an investment of Rs.37.50


lakhs in Gulbarga Taluk. The units are yet to start production.

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CHAPTER - 9
SWOT ANALYSIS – GULBARGA DISTRICT
A. STRENGTH

1. Due to geographical position of the taluk as well as the district


has got advantage of growing cash crops and pulses, which may
result in setting up of industries based on such crops.
2. Agriculture and Horticulture is now predominant in the
district which may help in bringing up industries based on the
resources.
3. The irrigation facilities which have grown significantly in the
taluk as well as in the district may also improve the productivity.
Rivers namely, Krishna, Bheema, Amarja, Kagina, Marimulla ,
Bennithora and Borie flow through the district which create scope
for irrigation facilities.
4. There are nos. of Engineering Colleges, Medical Colleges,
Polytechnics, ITI’s in the taluk as well as in the district which may
provide skilled persons to man the new industries. Besides this,
technical youth entrepreneurs may be motivated to start new
industries. There is one Agriculture College in the district. These
young Agricultural graduates may be encouraged to start Agro based
industries / Agro clinics.
5. The taluk is well connected through rail to Metros like
Hyderabad, Bangalore and Mumbai.
6. Out of 10 taluks in the district Gulbarga is categorized in
Zone - 2 (Backward Taluk) and the other taluks in Zone-1(Most
Backward Taliks). The existing industries and new industries are
eligible for some incentives and concessions.
7. The headquarters of Hyderabad Karnataka Chamber of
Commerce and Industries located at Gulbarga, may help industries to
grow and trade, and commerce to flourish.
8. There are some useful minerals in the district which may be
commercially exploited.
9. Karnataka Tur Development Board is located at Gulbarga.

B. WEAKNESS

1. Absence of large numbers of Dairy firms, poultry firms, cattle


feed units, cold storage.
2. Agriculture and Horticulture produce have not been exploited
properly to increase the agro-based industry.

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3. Inadequate infrastructure facilities like Industrial Estate,
transport etc.
4. Absence of no National Highway in whole of the district.
5. Remoteness and backwardness
6. Presence of high incidence of poverty
7. Lack of entrepreneur talent and lack of initiative to motivate
the prospective entrepreneurs.
8. Sickness in both SSI and large/medium scale sector industries.
Absence of proper initiative to revive the viable ones.

C. OPPORTUNITIES

1. Immense scope for promoting value added industries.


2. Agriculture and Horticulture produce may be exploited to explore
industries.
3. Dairy farm, poultry farm, cattle feed/Poultry feed manufacturing
may be encouraged through significant nos. of S.H.G with the help
of Wellnit NGOs functioning in the district.
4. Minerals could be exploited to give rise the scope of minerals based
industries.
5. One Airport is likely to be established at Gulbarga which may give
further scope for Trade and Commerce and Export.
6. One bench of Karnataka High court is likely to function at Gulbarga
soon. This will increase floating population and result in demand for
consumer items.

D. TREAT

1. Cement based industries promoted earlier are sick.


2. Poor R&D facilities
3. Unhealthy competition by setting of same type of industries in large
numbers.
4. Threats emerging from MNC due to globalization and liberalization.
5. Lack of awareness of W.T.O, implications and intellectual
properties.
6. Lack of quality consciousness among industries in general.
7. Core competition existing among the selected industrial groups like
Dal Mills, Stone Polishing etc.

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CHAPTER – 10

NEW INDUSTRIAL POLICY 2006-2011


Government of Karnataka
Annexure - A
1. Introduction:
1.1 Karnataka is one of the top 5 industrialized States in the country. It
has a history of pioneering industrial development initiatives since
the time of the Princely State of Mysore and subsequently in the post
independence era. The State was the first in the country to have
brought out a State Industrial Policy during 1983, followed by
successive State Industrial Policies in 1988, 1990, 1993, 1996 and in
2001.

1.2 During the just concluded 2001-06 Industrial Policy period,


investment approvals of mega projects [ with investments of over Rs.
50 crores each] by the State High Level Clearance Committee
[SHLCC] and large & medium projects by the State Level Single
Window Agency [SLSWA] have shown sustained increase / growth.
The number of projects approved by the SHLCC is 148 with an
investment of Rs.1,15,882 crores and with an employment potential
of 11,03,824 persons. Similarly, the number of projects approved by
SLSWCC is 861 with an anticipated investment of Rs.19,043.73
crores and employment potential of 5,90,869 persons. During the
same Policy period 65,231 SSI units registered with Rs.2,079.62
crores of investment and provide employment to 2,95,487 persons.

1.3 The State GDP growth rate during 2005-06 is 8.7% with industrial
sector accounting for 18%. Having regard to this it is felt that the
new policy should have a mission to achieve GSDP growth of over
9%.

1.4 The industrial recession, which was prevalent upto 2002-03 has now
given way to increased investments & growth, as is evident in the
year - wise investment approvals by SHLCC & SLSWCC.

1.5 However, this increased flow of investment need to be supported


with (i) On demand infrastructure availability, (ii) Human resource
for diverse sectors, (iii) Support to technology up-gradation, quality
improvement and (iv) Single Window support and facilitation
mechanism, so that the projects are implemented expeditiously and
go into operation.

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1.6 Today, there is intense competition between States for attracting
investments. Investors naturally choose the State that offers best
combination of (i) Industrial & Social infrastructure, (ii) Human
resources, (iii) Technology savvy work force and (iv) The State that
offers “Ease of doing Business".

1.7 The fiscal / taxation regime and incentives & concessions offered by
the States & Government of India also have important bearing on the
locational decision of projects.

1.8 His Excellency, the President of India Dr. A.P.J.Abdul Kalam, in his
address to the members of the Karnataka Legislature on 20-11-2005
on the occasion of "Suvarna Karnataka celebrations" had advocated 11
Missions for Karnataka's prosperity. Of these, Missions on Textiles,
Bio-fuel, Agro processing and Entrepreneurship are related to
industries sector and addressed in this Policy.

1.9 Government accords highest priority to the objectives of dispersal of


industrial investments in various backward regions / districts of the
State so that the fruits of economic development and employment
opportunities are shared by all segments of society and in all parts of
State in as equitable manner as possible.

1.10 The New Industrial Policy 2006-2011 attempts to address the above
aspects in a balanced manner.

2. VISION:
2.1 Policy to help facilitate the State achieve a GSDP growth of over 9%,
which in turn call for an industrial sector growth of over 12%.

2.2 To focus on strengthening of the manufacturing industry in the State


and to increase it's percentage share of the GSDP from the present
average of 16.70% to over 20% by the end of the policy period.

2.3 To achieve an increased share of Karnataka's exports in the National


exports from the present 15% to 20% by the end of the policy period.

2.4 To create additional employment generation to at least 10.00 lakh


persons in the manufacturing and service sectors during the Policy
period.

2.5 Promote diversified industrial base with strength in both old economy
& new economy fields.

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2.6 Facilitate reduction of regional imbalance in the matter of economic


opportunities, employment and growth.

2.7 Endeavor to promote sustained industrial growth by facilitating


accelerated flow of investments.
2.8 In short, to promote sustained, growth oriented industrialization with
employment & revenue generation, for overall socio-economic
development of the State.

3. STRATEGY:
Keeping the above objectives in mind, the strategy for further
industrialization of the State during the next 5 years would be:

3.1 To classify various taluks of the State into 3 Zones for the purpose of
focused attention:

(i) Zone-1:-
79 Taluks - most / more backward Taluks as categorized by
Dr. D.M.Nanjundappa Committee Report.

(ii) Zone-2 :-
85 Taluks - [ Taluks not covered in Zone 1 & 3].

(iii) Zone-3 :-
12 Taluks - of Bangalore Urban & Rural Districts
[excluding Taluks of Kanakapura & Magadi]
Mangalore and Mysore Taluks.

Details of Taluks indicated in Annexure –B

3.2 To develop industrial infrastructure facilities ahead of the


requirements, in various key location of the State through the
KIADB / KSSIDC. Annually a minimum of 5,000 acres of quality
industrial infrastructure would be created, during the Policy period.
Such Industrial Areas will be developed in an integrated manner
reserving up to 25% of the area for housing and other social
infrastructure. The equity base of KIADB would be strengthened
through greater support.

3.3 Keeping in view the fact that water is a crucial support requirement
for industrialization, Government would facilitate implementation of

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mega industrial water supply schemes for potential locations through
Special Purpose Vehicles [SPVs].

3.4 A comprehensive Power Policy would be formulated by the


Department of Energy. This Policy would encourage power
generation from IPPs and also through captive power generation.

3.5 To meet the rising energy requirements of the State on account of


rapid industrialization, Government would facilitate preparation of a
"Gas Distribution Master Plan" to enable public / private sector
players to bring in gas from diverse sources for distribution.
3.6 Apart from standard infrastructure in the form of industrial areas and
industrial estates, specialized industrial infrastructure for specific
sectors and Special Economic Zones [Multi-product, Product specific,
Sector specific and Free Trade Zones] would be encouraged to be
established through both KIADB as well as private sector promoters.
The establishment of multi-product and product specific SEZs will be
encouraged in all districts of the State except Bangalore Urban
District. However, establishment of SEZs even in Bangalore Urban
District will also be encouraged if the proponent of SEZ comes
forward to do so in his/her own land or through a joint development
agreement with the land owners.

3.7 The ONGC in association with Govt. of Karnataka is already


implementing a large Multi-product SEZ that would predominantly
house Petroleum refining and Petro-Chemical projects. Govt. would
take up with Govt. of India for enlargement of the size and scope of
Mangalore SEZ Ltd. in to Petroleum, Chemicals & Petro-chemicals
Investment Region (PCPIR).

3.8 Industrial corridor / Cluster development would be encouraged in


potential locations.

3.9 State would encourage alternate partnership & financing options for
infrastructure development.

3.10 Focused attention on sub-sectors / areas where the State has core
competency i.e., Aerospace, Engineering, Automobile, Machine-
tools, Steel, Cement, Pharmaceuticals, Food Processing, Apparel &
Textiles, Electronics, Information Technology, Bio Technology etc.

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3.11 In view of the fact that the silk reeling sector is highly employment
oriented, a separate package will be formulated in consultation with
the Sericulture Department.

3.12 Impetus for development of renewable & non-conventional energy


sources through Mission approach.

3.13 Human Resource Development - Government would promote / help


facilitate establishment of specialized skill development institutions
at key locations suitable for the manufacturing industries and
emerging vocations in the service sector. A scheme of State support
through public, private partnership would be evolved &
implemented. The Government assistance will be in the form of
providing land and financial assistance for creation of basic
infrastructure facilities as follows:
(i) Grant of up to 5 acres of Government land will be considered
along with capital contribution of 50% of the project cost
subject to a ceiling of Rs.2 crores per Training establishment for
sector specific training.
(ii) Recurring cost for running the training institution an amount of
Rs.750/- p.m./ per trainee will be provided subject to a ceiling of
Rs.15 lakhs per year for a period of 3 years.
(iii) Government will launch a new scheme to provide Rs.750/- p.m.
stipend for on-the-job training of unemployed educated youth
for training in different vocations through industrial / service
establishments. The Training Institutions would also consider
providing matching contribution towards stipend to the trainees
and other required facilities during the training period.

The modalities of the scheme will be worked out by the


Government separately.

3.14 Promote Agro Food Processing industries in the potential location to


help farmers realize better value / price for their produce, through
increased localized processing of agricultural output. As an incentive
for setting up of new agricultural produce processing industries,
APMC cess in respect of such procurement by the processing
industries directly from the farmers will be exempted. Necessary
amendments to the existing law will be brought about by the Co-
operation Department in this regard.

3.15 In the context of globalised economy, survival & growth of SSI


sector depend up on its ability to modernize, improve quality & cut

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70
costs. Karnataka Council for Technology Upgradation [KCTU]
would be strengthened to take up promotional programmes in this
regard.

3.16 Programmes for promotion of local entrepreneurship would be


strengthened through appropriate restructuring of institutional
mechanism to impart entrepreneurship training to 3,00,000 persons
during the Policy period.

3.17 Special Incentives for entrepreneurs setting up units in backward


areas.
Additional incentives for units promoted by entrepreneurs from the
category of SC/ST Minority, Women, Physically challenged & Ex-
Servicemen.

3.18 Government would work in close co-ordination with Industry


Associations / Chambers of Commerce / Trade bodies to have
continuous feed back on the state of industries and the support
measures needed.

3.19 Improvement of investment climate and business environment


through decentralized governance measures and efficient facilitation.

3.20 Government would take up comprehensive rationalization &


simplification of provisions of various labour laws to enable
flexibility & increased productivity in the industry.

3.21 Government would come up with a separate revival package for sick
SSI units and BIFR cases, after consultation with all the stake
holders viz; Industry Associations, Financial Institutions / Banks,
Service providers, labour representatives. A clear cut Exit Policy
would be attempted.

3.22 Local Amendments to The SEZ Act 2005 & Rules 2006 [Central
Act] would be effected, providing for State level facilitation &
incentives, labour law rationalization etc.

3.23 The BMRDA has taken up 5 New Townships around Bangalore. As


per BM RDA Master Plan economic activities would be encouraged
within these townships by creating industrial infrastructure.

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3.24 The District Industries Centre(DIC) would be designated as Nodal
Agency at the district level for implementation of Self-Employment
Programmes and Self-Help Groups.

3.25 Global Information Centres would be set up at all DICs at district


headquarters for the benefit of entrepreneurs.

3.26 Industry relevant skills would be identified and training programme


would be provided to one lakh educated unemployed youth for
taking self-employment ventures and wage-employment.

3.27 The Government shall encourage setting up of various institutions


and centres of excellence in the field of automobile / machine tools /
food processing l building materials and other fields and also
encourage setting up of Technology Business Incubators in these
areas. The Government assistance will be in the form of providing
financial assistance for creation of basic infrastructure facilities,
subject to a ceiling of Rs.50.00 lakhs per incubator / centre.

3.28 Existing areas of concentration of industries would be converted in to


"Industrial Township" for efficient maintenance of civic amenities
and services etc.

3.29 Implementation of Kaigarika Vikas Scheme will be speeded up for


development of 79 most and more backward Taluks as identified by
Dr.D.M.Nanjundappa Committee Report on redressal of regional
imbalances. G.O. No. CI 154 CSC 2005 dated 8-12-2005 already
issued for implementation of the Scheme will be integrated with this
new policy. It envisages creation of new economic opportunity by
utilising local resources, skill and demand, by providing ready to use
infrastructure, human resource development etc.

3.30 Khadi institutions assisted by KVIC / KVIB would be provided


improved Charakas for increasing productivity, which in turn, will
help increased wage earning by artisans.

3.31 In order to encourage, sustain and safeguard the interests of SSI units
of Karnataka, Government is committed to extend the facility of
price preference of 15% for the purchases and purchase preference
made from SSIs units of the State. This incentive as provided in the
2001-06 Policy would be extended in this Policy for the next five
years.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
72
3.32 In order to achieve envisaged export growth rate of 20% during the
Policy period Visvesvaraya Industrial Trade Centre (VITC) will be
strengthened in this regard.

3.33 Incentives and concessions for various categories of industries and


locations are indicated in Annexure-C. Negative list of units in-
eligible for incentives & concessions is indicated in Annexure-D.

4. ACTION PLAN:
4.1 KIADB would focus on development of large industrial areas of 500
or more acres each in potential locations.

4.2 KIADB would endeavour to complete implementation of SEZ projects


taken up at Hassan, Mangalore & Shimoga.

4.3 One time Upgradation of Infrastructure in existing industrial areas /


estates developed by KIADB / KSSIDC respectively would be carried
out. Financial assistance would be provided to KIADB / KSSIDC to
carry out the work subject to the condition that the Local Authorities
& Industrial Associations come forward to take up future
maintenance. An Infrastructure Upgradation Fund of Rs. 500 crores
would be created for this purpose.

4.4 The Apparel Park taken up by KIADB at Doddaballapur and


Integrated Textile Park at Anekal, Bellary, Davanagere, Mysore,
Kanakapura would be completed and commissioned early.

4.5 6 Food Parks taken up at Malur, Bagalkot, Maddur, Hiriyur, Jewargi


and Belgaum would be completed by end of 2007.

4.6 Government would adopt the "Mega Food Park" concept being
formulated by Ministry of Food Processing, Govt. of India, for
Implementation in select Districts by providing infrastructure, forward
and backward linkages.

4.7 Accelerated development of food processing industries would be


encouraged. Karnataka has 11 Agro Climatic Zones ideally suited for
cultivation of a variety of cereals, oil seeds, fruits & vegetables,
spices, flowers etc. These agro resources would be harnessed to the
fullest extent to create value chain for farmers, processors &
Consumers.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
73
4.8 Agriculture produce processing industries will be permitted to procure
agriculture produce like cereals, oil seeds, fruits & vegetables directly
from farmers without going through the APMC.

APMC cess in respect of such procurement by processing industries


would be exempted.

4.9 25 Small Industrial areas for development of Cluster in potential


Taluks through out the State would be taken up for the benefit of
Tiny / SSI Units by KSSIDC and would be completed by 2007-08.

4.10 Private Sector entrepreneurs would be encouraged to set up a multi-


product, product specific, sector specific and free trade zones in
various potential locations and need based infrastructure support
would be extended from KIADB.

4.11 Industrial Corridor / Cluster development would be taken up in


potential locations viz: (i) Bangalore-Mysore (ii) Mysore-Nanjangud,
(iii) Hubli-Belgaum, (iv) Hospet-Bellary (v) Mangalore-Udupi, (vi)
Bhadravathi-Shimoga (vii) Nelamangala-Kunigal (viii) Davanagere-
Harihar (ix) Kolar-KGF etc.

4.12 Human Resource Development -A High Level Committee chaired by


Principal Secretary to Govt., Commerce & Industries Department
and with Representatives of Higher Education, IT & BT, Agriculture
& Horticulture and Vice-Chancellor of Universities of VTU /
Agriculture Universities and others would be constituted to work out
detailed plans for Human Resource Development / Skill sets required
for various segments of Industry. An amount of Rs. 25 crores would
be earmarked for this purpose.

4.13 Man Power Training Institutions for emerging vocations like


retailing, apparels & textiles, construction, repair and service of earth
moving equipments etc. would be set up with Private Sector
participation in PPP mode.

4.14 A State Level Industrial Development Council with Hon'ble CM as


Chairman & Hon'ble Minister for Large & Medium Industries as
Vice-Chairman and consisting of Captains of Industries, Chiefs of
Chamber of Commerce & Industries / Trade bodies would be
constituted to aid and advise the Government on policy issues
pertaining to Industrial development & Investment Promotion in the
State.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
74

4.15 Besides physical infrastructure, fiscal / financial incentives, the key


aspect enabling timely implementation & commissioning of projects
is "de-regulation & ease of doing business". The Karnataka
Industries (Facilitation) Act 2002 and Rules 2003 would be
implemented more effectively for efficient delivery of services to the
entrepreneurs.

4.16 Karnataka Udyog Mitra would be strengthened and assigned a


dominant role in the task of Investment Promotion and Investors
support to facilitate speedy implementation of projects. The Single
Window Mechanism would further be rationalised and strengthened
to this effect.

4.17 Under Kaigarika Vikasa scheme, GTTC would set up additional sub-
centres in tool and die making and implementation of Sector specific
scheme of various Boards and Corporations, conducting EDP's,
Rrsource mapping of Taluks, upgradation / creation of Industrial
Infrastructure will be taken up by integrating various schemes of
other Departments. Financial assistance would be provided for sector
specific scheme implemented by Boards / Corporations.

4.18 Existing 6 spindle charakas will be replaced by 8 spindle improved


charakas at subsidised rates through Khadi institutions assisted by
KVIC / KVIB in phased manner to increase productivity and wage
earnings of artisans.

5. TERMS & CONDITIONS:


5.1 The incentives and concessions under this policy will come into
force with retrospective effect from 1 S' April 2006. However,
industrial units which have already been granted a Package of
Incentives & Concessions as per the previous policies will continue
to enjoy the benefits already granted till the expiry of the earlier
sanction orders. All new investments made after 1S'April 2006 will
be covered by this Policy.

5.2 Industrial units are eligible for Incentives & Concessions on new
investment made on fixed assets only. Investments in taken over
industrial concerns or assets would not qualify for incentives.
However for additional investment made by the new entrepreneur
during this Policy period in creation of new assets under new unit/
expansion programme would qualify for assistance.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
75
5.3 Incentives and concessions for investments in the Information
Technology/ Bio Technology Sectors will however continue to be
governed by the IT policy as per Government Order " MAHITI " and
the Bio Technology Policy.

5.4. Incentives and Concessions as per this Policy will not be available
for the industries specified in Annexure - 3.

5.5 Definitions :
a) Tiny Industry: Tiny Scale industry is one in which the investment
in plant and machinery is less than Rs.25 lakhs irrespective of the
location of the unit.
b) Small Scale Industry: An industrial undertaking in which the
investment in plant and machinery whether held on ownership
terms or on lease or by hire purchase does not exceed Rs.100 lakhs.

c) Medium & Large Scale Industry: An industrial unit which is not


classified as Tiny/ Small Scale/Ancillary Industry shall be
classified as Medium/ Large Scale Industry.

d) 100% Export Oriented Units [Export Oriented Units]: A 100%


Export Oriented Units is one which undertakes to export its entire
production of goods subject to relaxation as permitted by Govt. of
India from time to time and as defined by it. Such units may be set
up either under the Export Oriented Units or under EPIP [Export
Promotion Industrial Park] Scheme or under the EHTP [Electronic
Hardware Technology Park] Scheme or Software Technology Park
Scheme or Special Economic Zone.

e) Mega Project: shall mean Projects with an investment of IRS. 100


Cr. and above in fixed assets.

f) Fixed Asset: Fixed assets shall mean the total investment made on
land, building and plant and machinery and such other productive
assets like tools, jigs, and fixtures, dies, utilities like boilers,
compressors, diesel generating sets, cranes, material handling
equipments and such other equipments directly related to
production purposes.

5.6 SANCTION OF INCENTIVES AND CONCESSIONS IS


SUBJECT TO THE FOLLOWING TERMS AND
CONDITIONS:

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
76
a) All new industrial investments shall create maximum possible
additional employment opportunities and provide a minimum 80%
of employment to the local people on an overall basis [100%
employment to local people in case of Group C & D categories
will be insisted] and this will be monitored during disbursement of
incentives and concessions.
The above requirements regarding employment to local
people will be monitored by the DIC for a period of 5 years.
Failure of the industries to provide employment to local people as
stipulated above will be reported to the concerned DLSWA/
SLSWCC/ SHLCC, which will recommend for recovery of
investment subsidy sanctioned to the unit, for which purpose a
suitable under-taking will have to be furnished by the unit
concerned before disbursal of subsidy.
b) The quantum of investment subsidy shall be computed on the
value of fixed assets as specified in Sub Para-[f] of Para 5.5 and as
approved by the financial institutions, commercial banks.
c) The definition of tiny, small or medium and large scale industries
as indicated above shall automatically stand revised as and when
Government of India makes any changes in such definition and
benefits under this package shall be available to the Tiny, Small
Medium & Large scale units as per the new definition from the
respective dates.
d) The validity of incentives and concessions as per this order shall be
for a period of five years from 15'April 2006 [i.e., upto 315' March
2011].
e) Wherever industrial units avail subsidy under any other schemes of
Govt. of Karnataka / Govt. of India, only differential amount of
Subsidy, if any, would be provided under this policy.
f) Commerce & Industries Dept. would administer the package of
Incentives & Concession under this Industrial Policy. Separate
guidelines for administration of these incentives and concessions
will be issued for the guidance of the concerned agencies and
officers. Interpretation of this Government Order and the decision
thereon of the Commerce & Industries Department, Government of
Karnataka shall be final.

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Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
77
ANNEXURE –B
The following taluks of Gulbarga District are classified in ZONE – 1
Most Backward for purpose of administering graded scale of incentives &
Concessions.

(1) Sedam (2) Shorapur (3) Yadgir (4) Chitapur (5) Afzalpur
(6) Shahapur (7) Aland (8) Chincholi and (9) Jewargi

Gulbarga Taluk has been classified in Zone – 2 under Backward Taluka.

ANNEXURE –C

Incentives & Concessions for Small Scale Industries


1 Capital Investment
Subsidy
25% of the value of fixed assets subject to a
Zone – 1 maximum of Rs. 15 lakhs per unit

20% of the value of fixed assets, subject to a


Zone - 2 maximum of Rs. 10 lakhs per unit

Addl. Subsidy of 5% of the value of fixed


Zone 1 & 2 assets, subject to a ceiling of Rs. 1 Lakh for
SC/ST/PH/ Minority & X-servicemen.

Note : This incentive is available only to units financed by


KSFC/KSSIIDC/Banks/Other financial institutions.

2 Exemption of Currently available under Energy


Electricity duty Dept. policy continued up to 2011.
on Captive power
Generation

3 Exemption of Zone – 1 : Full Exemption


Stamp Duty & Zone - 2 : 75% exemption
Reduction of Stamp duty :In respect of Loan & Credit deeds
Registration executed for availing term from Financial
Charges institutions/ Banks and for execution of Lease,
Lease cum Sale & absolute Sale Deeds by
KIADB/ KSSIDC in respect of Industrial land
/plots allotted.
Reduction of Registration Charges:
Concessionl registration charges at Re. 1 per
Rs.1000/-
4 Waiver of Zone – 1 : Full exemption subject to Maximum of
conversion (on 10 acres per unit.
SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
78
lands for industrial
use). Zone – 2 : 75% exemption subject to a Maximum
of 10 acres per unit,
5 Acquisition & In respect of lands acquired for development of
allotment of industrial area/ estates or single unit complex
land through KIADB acquisition charges to be levied is 10% in
KIADB respect of areas in Zone : 1 & 2. (For the areas in
Zone 3 acquisition charges would be 28%.)

6 Subsidy for setting One time capital subsidy up to 50% of the cost of
up of Effluent ETP, subject to a ceiling of Rs. 100 lakhs per unit
Treatment plants for all categories of industries for Zones.
[ETPs]

7 Entry Tax & Zone 1 & 2


Sperical Entry :
Tax concession i. ET & Special ET exemption
on “Plant & Machinery and
Capital Goods” for an initial period of 3 years
from the date of commencement of project
implementation. For this purpose, the term
“Plant & Machinery and Capital goods” also
includes Plant & Machinery and capital goods
i.e., equipment etc. which is put up in the power
project units for captive generation of electricity.
ii. On raw materials, inputs,
component parts & consumables (excluding
petroleum products) [wherever applicable ]
for a period of 5 years from the date of
commencement of commercial production.

8 Human i. Grant of up to 5 acres of


Development Government land will be considered along
with capital contribution of 50% of the project
cost subject to a ceiling of Rs.2 crores per
Training Establishment for sector specific
training.
ii. Recurring cost for running
the training institution an amount of Rs. 750/-
p.m./ per trainee will be provided subject to a
ceiling of Rs. 15 lakhs per year for period of 3
years.
iii. Government will launch a new
scheme to provide Rs.750/- p.m. stipend with
suitable matching contribution by training
institutions for on-the-job training of
unemployed educated youth for training in
SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
79
different vocations through industrial/
service establishments.

9 Technology Zone 1 & 2 :


Upgradation (i) Existing scheme of 4% interest subsidy for
TU loans availed from KSFC/ KSSIDC shall be
extended to cover TU loans availed from
scheduled Commercial Banks, which are not
covered under CLCS Scheme of Govt. of India.
Zone 1, 2 & 3

(ii) Existing incentive scheme for SSI units going in


for BIS product certification or ISO series
certification is continued with enhanced financial
allocation.
(iii) Encouragement to Patents Registration : Subsidy
at 50% of the cost of Patents registration,
subject to a ceiling of Rs.2 lakhs per unit.

Funding will be provided for certain commercially viable research


projects In collaboration with IITs, universities and other reputed
institutions. An amount of Rs. 25 crores is earmarked for this purpose
during the policy period.

10 Industrial A separate Infrastructure Upgradation Fund


Infrastructure of Rs. 500 crores would be created for
Development/Common upgradation of infrastructure facilities in
Infrastructure/facilities existing industrial areas / estates and also
in Notified Industrial for maintenance. This fund may also be
Clusters utilized for new industrial areas. Separate
guidelines would be issued for utilizing this
fund.

11 Agricultural Produce APMC Cess in respect of direct procurement


Processing Industries- of agricultural produce for processing from
Exemption of APMC farmers by processing industries is exempted.
Cess

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
80
ANNEXURE – D

List of Industrial activities / Units In-eligible for Incentives & Concessions


SI.
Activity
No

1 Breweries & Distilleries of all types

Units utilizing molasses / rectified spirit / denatured spirit as main raw


2
material for manufacture of potable alcohol
3 Khandasari units
4 Photo Studios & Color processing units
5 Photo Copying & Xerox Machines
6 Fertilizer Mixing
Re-packing of Drugs / Medicines / Chemicals, without any processing or
7
value addition
8 All types of Saw Mills
9 Beedies / Cigarettes / Cigars / Gutka & Tobacco based products
10 Azoic / Reactive Dyes
11 Fire Crackers
12 Industries manufacturing and or utilizing Ozone depleting substances
13 Power Laundries
Brick making units Excluding Cement Hallow Blocks, wire cut & fly ash
14
Bricks
15 Poultry
16 Popcorn & Ice candy making units
17 Coffee Roasting and Grinding
18 Clock and Watch Repair shops
19 Cassette recording [Audio & vedio]

20 Cyanide

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
81
SMALL INDUSTRIES DEVELOPMENT
ORGANIZATION (Govt. of India) INCENTIVES &
PROMOTIONAL SCHEMES
SIDO operates a number of promotional schemes for the SSI sector

• Credit Linked Capital Subsidy Scheme for Technology Up


gradation (CLCSS) - Govt. of India is encouraging SSI Units by way
of subsidy to the tune of 12% to 15% on loan amount availed for
Modernizing / Technology upgradation of SSI units.
• Credit Guarantee Trust for Small Industries (CGTSI) - A blessing
in disguise for all SSI entrepreneurs with good viable projects on
Manufacturing / Service & IT related project, but those who could not
arrange collateral security or third party guarantee against 75% of the
project cost subject to a max. of Rs. 25.0 lakhs for starting SSI
ventures.
• ISO-9000/ISO-14001 Certification Reimbursement Scheme -
Reimbursement of upto Rs. 75,000/- after acquiring the ISO
certification.
• Participation in International Fairs
• Purchase and Price Preference Policy for SSI’s
• National Awards for outstanding SSI entrepreneur, Research &
Development effort in small-scale sector and Quality Products in
small-scale sector.
• BAR coding - subsidy upto Rs. 5,000/- on equipment.
• Scheme for Trade Related Entrepreneurship Assistance and
Development for Women (TREAD) :

Salient Features of the Scheme -


The Govt. Grant upto 3o°% of total project cost as appraised by
lending institutions which would finance the remaining 70% as loan
assistance to applicant women who have no easy access to credit from
banks due to cumbersome procedures and the inability of the poor and
usually illiterate / semi illiterate women to provide adequate security
demanded by banks in the form of collaterals.
1. Credit
2. Training & Counselling
3. Eliciting information on Related needs.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
82
Criteria for Registration of NGOs:

a. Be a legal entity with a minimum registration of three years.


b. Having experience in thrift and saving programmes with SHGs /
individuals.
c. Be engaged in Entrepreneurship and income generation activities for
women.
d. Have basic infrastructure, qualified support staff and services to
undertake micro-enterprise development for women. Prepare project
proposals on behalf of women Entrepreneurs / women self Help Groups
for income activity and take loan from financial institutions for onward
disbursement to them.

Schemes – Khadi & Village Industries Commission

Rural employment Generation programme –


1. To generate employment in rural area.
2. To develop entrepreneurial skill among the rural unemployed youth.
3. To achieve the goal of rural industrialization.
4. To mobilize Bank Finance looking to the limited resources of KVIC

Policy & Development Initiatives of NABARD

With the objective of facilitating development and ensuring rural


prosperity, NABARD continued to support initiatives related to watershed
development, integrated development of backward areas, promotion of
cultivation of medicinal crops, Agri-Export Zones, agri-clinics and agri-
business centers, contract farming, bio-fuels, non-farm activities, improving
the outreach of the rural credit delivery system through Micro-Finance
institutions/Self-Help Groups(SHGs), women empowerment,
environmental; protection, human resources development in the rural
banking sector and research and development activities in agriculture and
rural sector.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
83
FACILITIES OFFERED BY
ORGANISATION/INSTITUTIONS DEVOTED TO THE
DEVELOPMENT OF SMALL SCALE INDUSTRIES
SL NAME OF THE TYPE OF ASSISTANCE
No ORGANISATION
1 2 3
1 Small Industries Service Institute, Industrial Extension Service
Rajjajinagar, Bangalore 5600 044 on -
1) Technical
Br. Small Industries Service Institute, Consultancy
L-11, Yeyyadi Indl.Estate 2) Preparation of project
Mangalore – 575008 profiles, feasibility reports
3) Training
Small Industries Service Institute programmes/
Industrial Estate, Gokul Road, demonstrations
Hubli -580030. 4) Common Facility
Service
Br. Small Industries Service Institute, 5) Economic
C-1 Indl. Estate, M.S.K.Mill Road, Information
Gulbarga –585 102 6) Management
Consultancy
7) Modernization
8) Chemical/Glass &
Ceramics/Leather/Lab.
Facilities/Testing/ product
development
9) EDPs/Management
Programmes
10) Organizing Open
House Discussions/Clinics/
Seminars/Buyer-Seller
Meet
11) Designs &
Development Services etc.
12) Marketing assistance
13) Industrial Potential
Surveys/ Market Surveys
2 Field Testing Station a) Testing of Household
SISI Campus, electrical appliances
Rajajinagar, Bangalore.-560044. Consultancy service for setting
up testing & Inspection
facilities.
SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
84
3 National Small Industries 1. Supply of machinery on hire/
Corporation Ltd., lease purchase basis to SSIs
ISCICOS Building No. 6 & 7, 2. Marketing assistance
Industrial Town, Rajajinagar,
Bangalore -560 044
4 Directorate of Industries & Regulatory functions -
Commerce, Govt. of Karnataka, • Registration of units
Khanija Bhavan, Race Course Road, • Credit Facilities
Bangalore 560001 • Consultancy Service

Subordinate offices of DICs in the • Economic Information


respective Districts • Raw Materials etc.
• Marketing assistance
• Disbursement of capital
subsidy etc

5 Technical Consultancy Services • Consultancy Services for


Organisation of Karnataka Small, Medium & large scale
(TECSOK), Basava Bhavan, entrepreneurs
High Grounds, Bangalore - 560001. • Preparation of project
reports
• Management assistance
• Turn key assistance to SSIs
• Training programmes &
EDPs etc.

6 Karnataka State Small Industries • Management of Industrial


Development Corporation Ltd., Estates, Allotment of sheds
Industrial Estate, Rajajinagar, • Supply of scarce raw
Bangalore 560 044 materials etc., Exhibition,
Technical Library

7 Karnataka State Electronics • Consultancy services in


Development Corporation Ltd., Electronic fields, Training
No.29/1 Race Course Rd. programmes in Computers
Bangalore 560 001
8 Karnataka State Finance 1. Financial assistance -
Corporation, No.1/1Thimmaiah medium/long term
Road, Bangalore-560052. 2. Seed Capital Assistance
Single Window Scheme etc.

9 Karnataka State Khadi & Village 1. Fina

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
85
Industries Board, No.10 Jasma ncial assistance to Khadi,
Bhavan Rd. Bangalore.560052 Cotton, Woollen, Silk &
Village industries
2. Mar
keting assistance

10 Karnataka State Social Welfare • Financial assistance to


Advisory Board existing voluntary women's
No.13, 10th Cross, 5th Main organizations
12th Block, Kumaarapark West
Bangalore.560020.

11 Karnataka Leather Industrial a. Development of


Development Corporation, J.C. leather & leather board
Road, Bangalore-560002. industries in the State
b. Supply of raw
materials
c. Marketing
assistance

12 Karnataka State Handicrafts 1. Enc


Development Corporation ouraging different types of
No.45 MG Road, artisans
Bangalore.560001. 2. Sup
ply of raw materials
3. Mar
keting assistance through
internal & export destinations
4. Assi
stance to Co-operative
establishments

13 National Productivity Council a. Productivity Service


No.11 Langford Road to Small Scale sector
Bangalore.560001 b. Training &
Consultancy services

14 Bureau of Indian Standards, i) Preparation of Standards


Peenya I Stage, Tumkur Road, relating to products,
Bangalore 560 058 commodities, materials &
SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
86
process etc.
ii) Certification of quality
goods for National &
International levels

15 Visveswarayya Industrial Trade 1. Export Marketing


Centre, Kasturba Road assistance to SSIs
Bangalore-560 001 2. Display of various
trade journals relating to
export marketing
3. Exhibition &
periodical films

16 Electronic Test & Development Testing, Calibration &


Centre, Ind,Estate, Ring Road, 1st Development assistance in the
Stage, Peenya, Bangalore-560058. field of -
a) Electrical
& Electronic Components
b) Personal
Computers
c) Colour/B
& W Tvs/Video Display
unit
d) Various
power supplies including
SMPs

17 Karnataka Industrial Area 1. Acquires and allots


Development Board, No.14/3 developed land for industrial
Rastrothana Parishat Bhavan, ventures in the State
Nrupatunga Rd. Bangalore-560001. Set up an export promotion
Industrial park at Whitefield.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
87
CHAPTER - 11

ADDRESSES OF PROMOTIONAL AGENCIES

Joint Director, Tel.: 08472-223988


District Industries Centre,
M S K Mill Road,
Gulbarga - 585 101.

District Statistical Officer, Tel.: 08472-220578


Gulbarga – 585 102

Deputy Director,(Horticulture), Tel.: 08472-220627


Gulbarga - 585 101.

Senior Geologist, Tel.: 08472-222637


Mini Vidhana Soudha,
Gulbarga - 585 101.

Chief Planning Officer,


Zilla Panchayat Office,
Gulbarga - 585 101.

Taluk Industries Promotion Officer,


Taluk Office,
Afzalpur

Asst.General Manager,
KSFC, Kings Complex
No.31 & 32 I Floor, Station Road,
Gulbarga - 585 102

District Development Manager, Tel: 08472-253126


NABARD, Preethi Nilaya,
Opp.Old Post Office,
Godutai Nagar,
Gulbarga – 585 102.

SISI,Hubli
Gulbarga District – Gulbarga Taluk Industrial Perspective Plan
88

Managing Director,
Gulbarga-Bidar Co.op.Milk Producers
Societies Union Ltd.,
Humnabad Road,
Gulbarga – 585 104

Deputy Manager,
State Bank of India,
Lead Bank Office,
Aiwan-E-Shahi Road,
Gulbarga- 585 102

Development Officer,
KIADB Zonal Office,
Kapnoor I-stage,I.A,
Humnabad Road,
Gulbarga- 585 104

District Development Officer,


KVIB,Near Sanman Lodge,
Saraswathi Godham,
Gulbarga- 585 101

President, HKCCI,
Supermarket,
Gulbarga - 585 102.

Chief Engineer (Elec)


Station Road,
Gulbarga – 585 102.

State Director, Tel.: 080-26614581


O/o the Commissioner for
Khadi & Village Industries,
No. 6, Dr. DVG Road, Gandhi Bazar, Basavangudi,
Bangalore – 560 004.

The Director Tel: 0836-2330389


Small Industries Service Institute,
Industrial Estate, Gokul Road,
Hubli – 580 030.

SISI,Hubli