Industries And Mines Departement
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Nirmal Gujarat

» Annual Plans

Village and Cottage Industries

Administration and Supervision And Modernization of Head Office

6.45 Cottage and Rural Industries has been established as a new department independent of Industries Commissioner’s set up since long. Earlier, it was functioning under the Director, Cottage Industries. Subsequently, it was upgraded to Commissioner of Cottage & Rural Industries (CCI) in 1991. 

An outlay of Rs.7.00 lakh is provided for the year 2005-06.

Handloom Industry

6.46 Handlooms come only after agriculture in providing employment to the rural masses in the country. However, in Gujarat, its share is small. As per the handloom census conducted in 1987-88, out of 37000 looms 22570 were working in the state. But, as per the handloom census recently conducted, the working handlooms have reduced to 17500. This indicates that handloom activity is losing its importance in the rural economy. The Central Government has enacted a law to reserve many items for handloom production, in order to protect the sector from competition with powerlooms. About 0.90 lakh artisans are engaged in some activity relating to handlooms, out of which 0.38 lakh artisans are covered directly under one or other scheme of the Government, implemented either directly by DICs or through the Gujarat State Handloom and Handicraft Development Corporation. There are 1234 handloom co-operatives with 62,934 members. The schemes are primarily aimed to strengthen the primary co-operatives, so that benefits go directly to the weavers. However, some of the benefits are also to be extended to the district, regional & state level apex co-operative bodies where they provide marketing and other support to primary co-operatives, subject to the condition that benefit is not duplicated to the same beneficiary for the same purpose.

(1) Thrift Fund Scheme
6.47 The thrift fund scheme was started by the Central Govt. to encourage the habit of savings amongst weavers and to meet their customary and emergency expenses. This is a 50:50 matching based centrally sponsored scheme, for the purpose of economic assistance through the personal savings of weaver's earnings. The contribution by individual weavers, State Govt. and GOI is 50:25:25. 

(2) Group Insurance Scheme (Bunkar Vima Yojana)
6.48 The Group Insurance Scheme is introduced with the objective of meeting the contingency situation arising due to death, accident or other eventualities. This is 50:50 matching based centrally sponsored scheme. Central Govt. has discontinued this scheme & introduced new scheme called Bunkar Vima Yojana from 26-12-2003. In this scheme provision of Central share & Beneficiaries Share was made. But State Govt. has decided to contribute 50% of the share of beneficiaries. 

(3) Health Package Scheme
6.49 This is a centrally sponsored scheme. It is planned to cover 2,000 beneficiaries under the scheme during the year. 

(4) Development of Exportable Products and Marketing (DEPM)
6.50 This is a 100% centrally sponsored scheme. The State Handloom Development Corporation has planned to develop a project under the scheme.

(5) Enforcement of Handloom Reservation Act
6.51 This scheme is 20% tapering matching based centrally sponsored. The State Govt. has set up the machinery for the implementation of the Handloom Reservation Act.

(6) National Handloom Expo
6.52 National Handloom Expos are sponsored by the Central Govt. and are organized by all State Governments. The state handloom agencies frequently participate in the expos within and outside the state. This is an ambitious scheme to provide marketing platform throughout the country to the handloom cooperatives. 

(7) Workshed cum Housing Scheme
6.53 The State Govt. already has a workshed cum housing scheme for the weavers. The department has been implementing the scheme through the Rural Housing Board. A scheme of the Central Government also exists, which is more attractive than the state scheme. Hence, the department has decided to adopt the central scheme. 

(8) Dindayal Hathkargha Protsahan Yojana
6.54 This scheme has been launched by the Govt. of India since 1.4.2000. It is a comprehensive scheme for the handloom sector to take care of a wide gamut of activities, such as product development, infrastructure support, institutional support, training to weavers, supply of equipments and marketing support, both at macro and micro level in an integrated and co-ordinated manner, for the overall development of the sector and benefit to handloom weavers. 

An outlay of Rs.528.50 lakh is provided for 3236 beneficiaries for the annual plan 2005-06.

Intensive Handloom Development Programme

6.55 The Gujarat State Handloom Development Corporation is established to provide employment to the weavers outside the co-operative fold. The Corporation takes up various programmes for the upliftment of handloom weavers, such as modernization of looms, training, providing yarn, designing and marketing of goods produced by the weavers through emporia and sales depots within and outside the state, and also by organizing exhibitions and participating in expos.

6.56 The Self Employed Women’s Association (SEWA) plans to set up a SEWA Trade Facilitation Center in Ahmedabad as a part of a Garments Park. This will be a center for the marketing of craft products of Surendranagar, Patan and Kachchh districts and will act as a bridge between the rural micro- level enterprises and the national/international markets. The activities will be capacity building, product development and exploring new markets. This will be backed by research, data management, production related services and networking. It is decided to assist SEWA Trade Facilitation Center in its handlooms and handicrafts components.

An outlay of Rs.102.00 lakh is provided for 360 beneficiaries for the year 2005-06. 

Handicraft Industries

6.57 Most of the artisans live in rural and remote areas. More than 60% handicraft artisans are women. To promote the sector in a better way and to provide more and more employment, the Government is providing modern facilities and financial assistance to the handicraft societies and individual artisans. Every year, handicraft week is organized by CCI at Ahmedabad, for which special rebate on sale is given. Also, the best handicraft artisans are awarded under this scheme.

An outlay of Rs.52.00 lakh is provided for 2600 artisans for the Annual Plan 2005-06.

Gujarat State Handicraft Development Corporation

6.58 The Gujarat State Handicrafts Development Corporation was established in 1973. The main objectives of the Corporation are promotion of Gujarat's traditional handicrafts, identifying and reviving important dying crafts of Gujarat, their adoption for contemporary usage, utility items and interior décor, and generation of employment and income for the rural and urban craftsmen. With a view to achieve the above objectives, the Corporation has undertaken a number of development and marketing schemes.

6.59 The Corporation is providing facilities to artisans by giving raw material, design and technical inputs. The goods are directly purchased from the artisans at select centers. The Corporation is also having its sales outlets in various cities, such as Ahmedabad, Bombay, Calcutta, Chennai, Bangalore, Hyderabad etc.

6.60 The Corporation will provide training to schedule tribe youth for manufacturing of bamboo articles, through the Gujarat State Forest Development Corporation. The Corporation will take help of National Institute of Fashion Technology (NIFT) for design development.

6.61 An ambitious scheme for the rejuvenation of the Corporation, prepared by the doctoral students of the Indian Institute of Management, Ahmedabad and Indian Rural Management Institute, Anand, has been sent to the Government of India for approval. A provision of Rs.1.00 lakh is made for the rejuvenation and restructuring of the Corporation.

An outlay of Rs.101.50 lakh is proposed for 1122 beneficiaries in the annual plan 2005-06. 

Special Scheme for TASP

6.62 The Corporation plans to provide employment opportunities to artisans in the handicraft sector in the tribal area of the state. It will undertake the following activities in the tenth five-year plan to support the tribals, mainly those who already have some skill of craft and art. 

  1. To provide necessary training input.
  2. To provide market support to (a) organize Adivasi Hastkala 
  3. Mela in all major cities and (b) collect finished goods from targeted artisans. 
  4. An outlay of Rs.20.00 lakh is provided for 120 beneficiaries for the year 2005-06. 

Carpet Industries

6.63 Carpet Weaving is an ancient craft of Persia which was introduced by Emperor Akbar in India. After years of stagnation, it has emerged as a flourishing cottage industry, mostly in remote or tribal areas where other sources of employment are not available. Carpet weaving is an activity which requires skill formation at a young age. It has tremendous potential for employment generation, as well as earning foreign exchange. Since most of the carpet weaving activity is in remote areas, the condition of production centers is not good. Most of the centers are being run in small kuchcha premises. Therefore, it is decided to construct low cost pucca worksheds. Moreover in existing scheme technological upgradation & improved tools & equipment is a felt need. 

6.64 One modern Common Facility Carpet Center has been established in Gundlav G.I.D.C. of Valsad district in collaboration with Indian Institute of Technology, Delhi. This center has modern looms, washing and clipping facility, dryer etc. It is decided to sign an MOU with IIT, Delhi and establish more such modern centers in different districts of the state during 2005-06. This will bring about the much needed value addition in the carpet weaving sector in Gujarat, which is totally lacking presently.

6.65 It is decided to establish a revolving fund for the carpet industry in the State; with a view to make the cooperatives financially strong to withstand the clout of the carpet traders and agents from other states and also to enable the sector to directly export the finished product.

An outlay of Rs.275.00 lakh is provided for 7540 beneficiaries for the year 2005-06.

Promoting Khadi and Village Industries

6.66 Khadi and village industries (KVI) are employment oriented. Khadi is not a mere cloth, but a way of life and thinking. Village industries are at the core of India’s rich past and culture. With the adoption of improved technology in KVI, there has been an increase in production. It has resulted in better quality products. The main objective of the Gujarat State Khadi Gramodyog Board is to ensure that the benefits of the schemes of the Khadi & Village Industries Commission reaches the KVI sector in the state, to provide training in KVI, to adopt modern technology, to undertake survey and publicity, and to provide marketing facilities by organizing fairs and exposure of KVI products, so that more employment can be generated. For modernization and innovation, the Board has decided to establish one dyeing and bleaching unit as a Pilot Project to help the khadi institutions.

For the year 2005-06, Rs.815.00 lakh is provided to cover 8175 beneficiaries.

Promotion of Co-operative Sector (Package Yojana)

6.67 The co-operative sector is well developed in the state. It has played a remarkable role in bringing green and white revolution. It is surprising to note that in spite of this, industrial cooperatives have not made much headway, probably due to very high competition from the private industries. Therefore, Government has initiated a package scheme to give financial assistance to industrial co-operatives for various purposes. Some of the items of assistance in the package are share loan, share contribution, rebate on sale/purchase, managerial subsidy, subsidy on purchase of fixed assets, interest subsidy for machinery and working capital, publicity, participating in trade exhibitions and fairs etc.

An outlay of Rs.136.00 lakh is provided for 1840 beneficiaries for the annual plan 2005-06. 


6.68 INDEXT-C (Industrial Extension Cottage) is established with the objective of promoting cottage sector activities in an organized way. Its creation was suggested in the State Industrial Policy of 1990-95 and it was registered on 3-12-1992. Indext-C is provided with the role of catering to the needs of the cottage sector and rural artisans, provide guidance through open house meetings, publicity of cottage sector products like handlooms and handicrafts, and promotional work like providing market to the artisans of co-operative societies by organizing fairs, festivals and expos, conducting survey and identifications of artisans.

6.69 Indext-C is coordinating the overall activities of the cottage sector to motivate and guide the artisans to upgrade the quality of their products and bringing them and the markets closer. For this purpose, a website is also opened. Indext-C is constructing urban haats, doing a very comprehensive census of artisans, organizes fairs within and outside the state, implementing scheme of providing identity cards and acting as a window for the weavers and artisans of the state. 

An outlay of Rs.200.00 lakh is provided for the annual plan 2005-06. 

Shilpgram/Urban Haat

6.70 The scheme envisages setting up of Urban Haats and Crafts Parks at prime locations in the state. The participating artisans/craftsmen are allotted stalls on a rotating basis and can sell their products directly to the customers, thereby eliminating middlemen or any other agency. This is a scheme of the Ministry of Textiles, Government of India and provision is made for the state’s share in the scheme. Urban haats have been sanctioned in Ahmedabad, Bhuj and Surat by GOI. Construction is in full swing in the Ahmedabad haat and is expected to start very soon. Another feature of the haat is to provide stalls selling authentic cuisines of various regions in the State. 

6.71 It is also decided to construct crafts parks by providing assistance to reputed NGOs on 75:25 sharing basis between the State Government and the NGOs.

An outlay of Rs.102.50 lakh is provided for the year 2005-06

Gramodyog Vikas Kendra

6.72 Earlier this scheme was known as Gramodyog Sankul Yojana. Another scheme, the Common Workshed Scheme also existed. Both the schemes had some lacunae that created difficulties in their implementation. Now, both the schemes have been amalgamated and new scheme is now called GRAMUDYOG VIKAS KENDRA.

An outlay of Rs.107.50 lakh is provided for 400 beneficiaries in the annual plan 2005-06. 

Gujarat Rural Industries Marketing Corporation Ltd. (GRIMCO) 

6.73 Government of Gujarat has set-up the Gujarat Rural Industries Marketing Corporation Ltd. (GRIMCO) in 1979 to promote marketing of the products of rural industries and to provide technical and managerial assistance to rural artisans. It also aims to impart practical training to artisans to organize production through production centers. GRIMCO will provide employment to the really needy artisans with necessary training and easy conversation with technique and design. The Corporation will also cover areas inside and outside the state by opening new emporia, franchise system of sales and mobile vans for tribal areas. Further, it will boost sales by encouraging participating in exhibitions, haats and tribal melas so that products can be easily sold and the requirements can be purchased from the emporia. Thus, GRIMCO will require share capital and loan to fulfill its objectives and provide new employment, so that the standard of living can be uplifted and the rush towards urban areas be reduced to considerable extent.

An outlay of Rs.30.00 lakh is provided for 600 beneficiaries for the annual plan 2005-06. 

Leather Corporation

6.74 The leather industry has very good potential because Gujarat has the second highest population of cattle. We have not been able to exploit this potential due to lack of intermediary processing facilities. To streamline the leather activities, various programs like upgradation of tanneries, providing training to unemployed youth for skill development and upgradation, and marketing facilities have been chalked out. The Leather Development Corporation has been merged with GRIMCO as per the recommendations of the P.K. Das Committee.

Village Tannery and Flaying Centre

6.75 Big tanneries, as in Tamil Nadu and West Bengal, have not been established in Gujarat though the potential for leather industry is very good. The people engaged in processing leather in the state employ traditional methods. It is time consuming and not cost effective. At present, the cost of setting up a tannery and flaying centre is Rs.2.50 lakh, which is financially unviable. To make the scheme viable, the department has proposed to modify it so that higher employment can be generated. Moreover so as to make existing tannery & Flaying Centre viable & productive department has provided new scheme also.

An outlay of Rs.9.00 lakh is provided for 45 beneficiaries for the annual plan 2005-06.

Training Centers

6.76 Industries play an important role in providing employment in rural and urban areas. Thus, proper training to the artisans is necessary. The department is providing training in the traditional and modern trades, such as turner, fitter, smithy, welding, motor rewinding, refrigeration, radio/T.V./air-condition repairing, printing & composition, auto repair etc. to cater to the requirement of industries as well as the market. The department runs regional training centers and training cum production centers in the state. As most of the trainees are either from ST, SC, OBC or minority community or BPL, Government also provides monetary assistance to the trainees by giving S.T. bus pass concession. The department is undertaking an ambitious programme of modernization of important trades of the training centers, changing the syllabus and training the trainers. For the first time, the private sector has been associated in this venture in training the trainers, in-plant training, providing modern equipment, learning material etc. Provision is also made to reimburse the traveling expenses incurred by trainees undertaking short in-plant training in private enterprises.

6.77 It is necessary to give basic tool kit to the trainees who have completed the course, for the purpose of starting some activity. Provision is made to give a tool kit related to the trade in which the trainee has completed his training.

6.78 It is necessary to give training to Scheduled Caste youth to meet present consumer market potential, department has provided scheme for training for plastic article at CIPET, Ahmedabad.

An outlay of Rs.373.00 lakh is provided to cover 1472 trainees in the year 2005-06.

Rural Technology Institute

6.79 The prime objective of the institute is to examine and improve the technology presently used by the artisans in cottage and rural industries. It also aims to identify and develop appropriate technology and get it accepted and adopted by rural artisans by disseminating information, publicity and extension work and also by mass media communication. The institute is carrying out R&D to develop more efficient tools/equipments/machines for the use of rural artisans or other institutions. 

An outlay of Rs.108 lakh is provided for 1044 beneficiaries for the annual plan 2005-06.

Manav Kalyan Yojana

6.80 This scheme provides additional tools/equipment to socially backward class community so as to generate adequate income and self employment. This scheme has been introduced since 11.9.95 in place of the earlier self employment scheme, to uplift the economic condition of artisans/persons living below poverty line. The persons engaged in 46 activities, such as hawkers, vegetable vendor, carpentry etc. are provided financial assistance up to Rs.1700 in the form of tools and equipments, so as to give self employment opportunity to the poorest of the poor. 

An outlay of Rs.400.00 lakh is provided for 23500 beneficiaries for the annual plan 2005-06.

Shri Vajpayee Bankable Yojana

6.81 This scheme provides self employment opportunity to educated unemployed and artisans. This scheme covers activities in industry, business and services sector. The scheme provides for general assistance for employment generation through individual efforts. At present, 368 project profiles are prepared for benefits under P.M.R.Y./Bankable. These profiles are updated and revised constantly and the last such major exercise has been completed in 2003-04. The activities under this sector will increase with diversification of the economy, due to advancement in technology and new ideas. The Bankable and Vajpayee Yojana is merged from 1-4-2001 as Shri Vajpayee Bankable Yojana. The limit of loan is increased up to Rs.2.00 lakh. 

An outlay of Rs.2851.00 lakh is provided for 27560 beneficiaries for annual plan 2005-06.

Poverty Alleviation (Salt Workers)

6.82 As salt workers get average employment for only 6-8 months in a year, the welfare scheme for them includes training in activities such as handicrafts or other cottage and rural industries, training through GRIMCO/RTI for revival of salt industrial cooperative societies, financial assistance for starting individual salt works through bankable scheme.

Poverty Alleviation (Leather Workers)

6.83 Artisans of the state engaged in hide tanning activity use traditional methods without updated tools and equipments. They are not aware of modern processes such as vegetable tanning. It is, therefore, decided to train the artisans through Central Leather Research Institute, Chennai/ Kanpur.

6.84 The Central Government has sanctioned a large project for the leather industry in the state during 2003-04. The portion of state’s contribution under the project that is likely to be spent during 2005-06 is also to be provided for in the annual plan.

An outlay of Rs.12.00 lakh is provided for 73 beneficiaries for the Annual Plan 2005-06.

The Gujarat Soil Work Artisans Board, Gandhinagar

6.85 The Gujarat Soil Work Artisans Board (Matikam Kalakari Board) has been established in March 1997, with the objective of helping the artisans engaged in clay work, by providing them raw material, marketing support, upgradation of technology, giving incentives for selling products etc. In the initial stage, the Board plans to give assistance to village level artisans and undertake common work shed programme. 

An outlay of Rs.50.00 lakh is provided for 717 beneficiaries for the year 2005-06.

Coir Industry

6.86 The training activities undertaken for this sector are covered under the provision made for Rural Technology Institute.

Cluster Development Scheme

6.87 The steering group formed by the State Government for preparing the Tenth Five Year Plan for the Cottage & Rural Industries sector recommended the scheme of Cluster Development from the year 2003-2004. 65 clusters have been identified by the department. Reputed institutions such as National Institute of Design (NID) and National Institute of Fashion Technology (NIFT) have been appointed as cluster development agents. The diagnostic survey work has begun from 2003-04. After the survey is completed, the inputs such as skill development, design and product development, improved tools and equipments, marketing assistance, publicity, export assistance, common facility center, artisans’ welfare schemes and margin money for working capital will be implemented in the clusters.

An outlay of Rs.370.00 lakh is provided for 260 beneficiaries for the year 2005-06.

Venture Capital Fund for Cottage & Rural Industries

6.88 This concept for the development of cottage and rural industries is introduced for the first time. The venture capital will be available for the following:

  1. Seed money for preliminary study;
  2. Assistance for prototype project;
  3. Assistance for pilot project;
  4. Assistance for commercial project.

An outlay of Rs.90.00 lakh is provided for the year 2005-06.

Cluster Development Scheme for Kite Manufacturing

6.89 In Gujarat during Makar Sankranti days Uttaryan festival is being celebrated every year by soaring kites. Kites and allied things viz. String, Manja and firki (Spool) has very good market potential. This activity is developed as Cottage Industry in cluster. Minorities and socially weaker section of the society is engaged in this industry and thus they get self employment.

6.90 Though separate scheme for Cluster Development of Handicraft, Handloom and Cottage Industry is in existence in the state new scheme for Kite Industry Development is provided because special situation prevailing in the market for this industry i.e. 10 months production and 2 months selling of kites.

6.91 By implementation of this new scheme 2 clusters will be developed annually, whereby 100 artisans will get direct employment and 100 persons will get indirect employment. Thus 200 new employment opportunities will be created.

Raw Material Bank for Kite Manufacturers

6.92 Efforts are being made to develop this industry by making wide publicity for soaring of Kites event in the State and at International level. This will increase demand for kites, which in turn will create more employment opportunities. A separate policy is formulated by the experts where in route cause of its development and suggestions for its remedies are also made. New scheme will be implemented considering the possibilities of establishment of Raw Material Bank for this industry.

6.93 By the implementation of this new scheme 2 institutions will be benefited and 100 artisans will get direct employment/. Approximate turn over of this institution will be Rs. 200.00 lakh/ann. This will create indirect employment opportunities for 200 persons.

Assistance to Government Undertakings 
Gujarat State Financial Corporation Gandhinagar

6.94 Corporation got the following financial restructuring agreed from its guaranteed bond holders.

  1. 13.25% Priority Sector Bonds Series-I : Rs. 120.00 crore
  2. 11.75% Priority Sector Bonds Series-II : Rs. 49.00 crore

In these categories, interest is reduced to 8%.

Corporation is also carrying unguaranteed debt of Rs. 642.53 crore as shown below as on 31.3.2004.

    (Rs. in crore)
1. Priority Sector Bonds 44.73
2. SIDBI 537.79
3. IDBI 19.87
4 Indian Bank 16.00
5 Bank of India 1.71
6 Dena Bank 22.43
  Total 642.53

6.95 SIDBI while considering the reschedulement of defaults during Five Year 2003 reduced the interest rate from 12.5% to 10.5%. It also extended moratorium of repayment of principal and rephased accumulated interest to be recovered in five years. Likewise, three nationalized banks i.e. Dena Bank, Bank of India and Indian Bank also rescheduled the principal amount by deferring it to use. Even after considering this reschedulement, the projected cash flow of the Corporation is showing substantial gap in its resources.

6.96 Incidentally, it may be mentioned that GSFC has accumulated losses as on 31.3.2004 of Rs. 734.58 crore and gross NPAs is 88% of the total advances. The expected gap in resources incorporating the one time settlement scheme with unguaranteed lenders is Rs. 40.00 crore.

Gujarat Infrastructure Development Board

6.97 The activities of the Board for the year 2005-06. 

Estimated Expenditure of the Board

Sr. No. Approximate details of activities Approximate expenditure (Rs. in lakh)
1. To undertake feasibility studies in the Infrastructure sector such as Urban Infrastructure, Roads, Water supply, Industrial Park, Information Technology, Energy and gas, distribution etc. 430.00
2. Regulatory frame work, sectoral studies and model concessional expenses 50.00
3. Establishment and other office expenses and advance 150.00
4. Promotional / Training / Seminar Expenses 150.00
4. Capital expenses such as furniture, fixtures, computers, electrification etc. 50.00
  Total 830.00

Infrastructure Finance Company Gujarat Ltd , Gandhinagar

6.98 Non-resident Indians and Gujaratis residing out side the state are desirous of investing funds for infrastructures development of the state. Therefore, it is decided Sto create "Funds" with attractive returns for infrastructures as well as social development of the region and make available them for such investors to invest these Funds. The security of investment and such funds are utilized for its marked purpose is to be administered by Non-government Company. Govt. of Gujarat would also contribute in the funds on matching basis. The nominees of investors are given representation in the administration of the fund. The Funds to be created are Gujarat Infrastructure Development Fund, Gujarat Venture Capital Fund, Gujarat Social Development Fund, And Gujarat Charity Fund.

6.99 In order to create such funds and to take necessary actions to make these funds operative, it is decided to provide necessary grant to GIIC/IFCG to meet initial expenditures.

6.100 Accordingly, a provision made of Rs. 100.00 lakh is made for financial year 2005-06

Statement-II-A (Schemewise Outlays)