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MEMBERS :
1. AMIRUL ZAKWAN HARIZ BIN ARMAN (23DLS17F1006)
2. MUHAMAD FADHIL BIN ABD WAHAB (23DLS17F1062)
3. MOHAMAD SIRAJ MUNIR BIN MOHAMAD SAADOM (23DLS17F1009)
4. AMMAR BIN SHAMSHUL ANUAR (23DLS17F1076)
5.
ANAS BASYIR BIN ZAMZURI (23DLS17F1071)
6. NURUL ANIM NATASHA BINTI A RAHIM (23DLS17F1007)
7. NURUL SHAHIRA BINTI MOHD HASHIM (23DLS17F1012)
In a planned economy like India, plant location
is encouraged/discouraged at particular places
due to government policy. For example,
government offers several incentives for
location of plants in backward areas. Again,
government has put restrictions on granting
licences to certain industries to be setup in
metropolitan cities with a certain figure of
population.
The fundamental objective of government policy on location is
to achieve balanced regional development of the economy
through decentralization of industries, with a view to ensuring
the following benefits:
1. Reduction of inequalities of income and wealth, in various
regions.
2. Provision of employment opportunities on an equitable basis.
3. Increase in the standard of living in backward areas through
removal of poverty.
4. Avoid overconcentration of industries in particular regions
for strategic defence considerations.
5. Controlling social problems like – development of slums,
overcrowding, pollution, trafficcongestion etc.
Measures taken by government
towards dispersal of industries are of
two types:
Negative Measures
Positive Measures
- restraining
- encouraging
establishment of
location of
industrial units in
industrial units in
overconcentrated
backward areas
areas
Following is a brief account of positive and negative measures,
of the government’s policy on industrial location :-
Provision of basic Provision of social services
infrastructure and public like education, health,
utility services like – water, entertainment, training etc.
electricity, gas, transportation for development of backward
etc. in backward areas. regions.
Positive
Measures
Granting of direct subsidies (like
supply of rawmaterials and
machinery at lower prices) and Granting of incometax, salestax
indirect subsidies (like reducing the and excise duty exemptions to the
cost of certain services to offset the units set up in backward areas.
influence of unfavorable factors), for
industrial location in rural areas.
Assistance to the State Governments Giving assurance by the
for the development of government to purchase the
infrastructural facilities in ‘no products of industrial units
industry districts’ of their respective established in backward areas.
States.
Public financial institutions to
provide finance at low rates of
interest to industrial units to be
set up in 246 backward districts,
specified by the government.
Setting up of growth centres
Development of industrial estates throughout the country to attract
in backward areas, to provide industries to backward areas; each
benefits of common services like growth centre to be endowed with
land, power, water etc. to a large best possible infrastructural
number of industrial units located facilities like water, power, banking,
in the industrial estate. telecommunications etc.
Enhanced rates of local
taxes in urban areas.
Absolute prohibition to set up new
Negative industries in particular areas. Big
Measures industrial units shall not be set up
within certain limits of big cities.
Not to allow establishment of
chemical and other industries
involving hazards to human life in
populated areas; in view of Bhopal
Gas Tragedy of 1984.