CHAPTER 6
Cottage and Small Scale Industries
6.1
During 2005-06, 5023 new units under the small-scale industries (SSI)
sector commenced production out of which 3062 units are in the SSI sector and
1961 units are set up under the PMRY Scheme. In the current financial year
(2006-07) the Directorate of Cottage and Small Scale Industries has a target of
setting up 5000 new units. During 2006-07 (till September, 2006), 1501 numbers
of new units were set up. A sum of Rs. 49.76 crore is invested in these units. Thus
total investment in the sector has slightly decreased compared to previous years.
6.2
The registration of SSI units is not mandatory, but voluntary. The
registered SSI units enjoy various types of benefits and assistance from the
Government prompting such units to get themselves registered. There are two
stages of registration: provisional and permanent. Provisional registration is
granted in order to enable a unit to obtain all facilities and clearances required in
the pre production stage, while the permanent registration is granted upon the start
of production. Registration of SSI unit covers both SIDO and Non-SIDO units.
SIDO units are those which come under the purview of the Industries
(Development and Regulation ) Act,1951. On the other hand, the units, whose
manufacturing activities fall under the purview of any statutory Board or
Committee or Special Agencies like KVIC, Silk Board, Handicraft Board, Textile
Commissioner, Handloom Board, Coir Board, etc. are termed as Non-SIDO
industries. During 2002-03, there were 749 items reserved exclusively for SSI
sector. During 2005-06, the number of items reduced to only 326.
6.3
During 2005-06,11194 SSI units were registered out of which 1356 units
were permanently registered, while the remaining 9838 units were registered only
provisionally. During 2006-07 (till September,2006), only 2767 units were
registered (both SIDO & Non-SIDO) out of which only 352 SSI units were
permanent in nature and had started production.
6.4
A large number of temporary/ provisional registrations indicate that the
potentiality of investment in the small scale sector continues to be significant,
although the actual number of SSI units in operation has declined sharply each
year compared to those of the pre-liberalisation era. One of the reasons for the
decline may be gradual de-reservation of industrial items from the exclusive
domain of the small-scale sector. The other constraint, presumably, is lack of
credit. Table 6.1 shows registration of SSI units in different districts of West
Bengal during the year 2005-06.
160
Table 6.1
Registration of SSI Units in Different Districts of West Bengal in 2005-06
District/District
Industry Centre
Bankura
Birbhum
Burdwan
Durgapur
Kolkata
Coochbehar
Darjeeling
Siliguri
Uttar Dinajpur
Hooghly
Howrah
Jalpaiguri
Malda
Midnapur Paschim
Murshidabad
Nadia
South 24- Parganas
Purulia
North 24- Parganas
Dakshin Dinajpur
Midnapur Purba
West Bengal
(Number)
Permanent Final Provisional Temporary Grand
Total
33
5
281
81
400
11
16
145
34
206
54
18
446
87
605
83
3
244
2
332
191
34
1471
66
1762
36
18
206
18
278
2
10
9
11
32
20
22
62
5
109
12
1
81
12
106
47
13
253
11
324
154
19
866
56
1095
35
8
230
7
280
32
12
338
37
419
54
15
577
70
716
55
22
676
77
830
23
7
410
88
528
53
21
601
243
918
20
1
227
17
265
133
34
651
51
869
5
0
34
9
48
21
3
989
59
1072
1074
282
8797
1041
11194
Source: Department of Cottage and Small Scale Industries, Government of West Bengal.
6.5
It is evident from the above table that while the number of registration
continued to be significant in and around Kolkata, districts like Burdwan,
Murshidabad, Midnapur Paschim only had encouraging number of SSI
registrations. Coochbehar, Bankura, Malda, Jalpaiguri and Malda are doing well.
This indicates that opportunities have been created in such predominantly
agricultural districts for the growth of economic activities in the secondary sector
and, secondly, entrepreneurial talents are available to utilise such opportunities.
However, the growth in registration of units over the years is not very
encouraging(see Table 6.17 in Statistical Appendix).Disbursement of loans
through West Bengal Financial Corporation over the years also shows a dismal
picture. Percentage of total amount of loans disbursed by this agency to the SSI
units have decreased over the recent years.
161
West Bengal Financial Corporation
6.6
In order to encourage investment in this small scale sector the
Government of West Bengal has taken up a number of promotional activities and
has continuously extended supports to set up new units. West Bengal Financial
Corporation (WBFC) acts as the nodal agency for providing financial assistance
to the small-scale sector. In the year 2005-06, WBFC sanctioned a sum of
Rs.18996 lakh to 368 numbers of small and other ancillary units and actually
disbursed an amount of Rs.11473 lakh. As compared to previous years the
scenario has not improved much. Performance of the Corporation in respect of
sanction and disbursement of term loans to various types of industries is furnished
in Table 6.2.
Table 6.2
Industry-wise Classification of Term Loan Sanctioned and Disbursed in
2005-06
Sl. Name of the industry
No
.
1
Food Manufacturing
except Rice Mill
2
Textiles
3
Paper & Paper Products
4
Manufacture of Rubber
& Jute Products
5
Basic Metal Industries
6
Metal Products except
Machinery & Transport
7
Chemicals and
Chemical Products /
Pharmaceuticals
(Rs. in lakh)
Sanctioned
Disbursed
SSI
Total
SSI
Total
No. Amount
No. Amount Amount
Amount
24
11
0
420
261
0
30
18
1
999
1724
470
233
237
0
422
587
0
5
0
250
0
6
0
376
0
48
0
48
0
2
245
17
4253
174
2659
7
201
8
581
187
187
0
0
0
0
8
Manufacture of
Electrical Machinery
except Electrical
Machinery
0
0
9
Manufacture of
Electrical Machinery
Manufacture of
2
52
2
52
1
1
0
0
0
0
0
0
10
162
11
12
13
14
15
Transport
Equipment
Rice Mill
Services
Electricity Generation
Gas & Steam
Plastic Products
Other Industries
Total
5
76
0
212
1617
0
5 212
84 3297
1 250
425
1207
0
425
1737
0
33
137
846
2322
43 2058
153 4724
757
1568
1545
3862
302
6426
368
18996
4837
11473
Source: Annual Report and Accounts (2005-06) of West Bengal Financial Corporation.
6.7
Table 6.2 shows that in 2005-06 major thrust was given on manufacturing
units like metal products except machinery and transport, food manufacturing,
manufacturing of electrical machinery and service units like hotels, road transport,
medical clinics/nursing homes, etc. Actual disbursement of loans was highest in
service sector indicating a growth in this sector.
6.8
The State Government launched ‘Bangla Swanirbhar Karmasansthan
Prakalpa’(BSKP) for promotion of self-employment. Under BSKP, a beneficiary
has to bear only 10 per cent of the project cost. Out of the rest, subsidy of 20 per
cent is provided by the State Government, while the remaining 70 per cent of the
project cost is financed by credit from banks and other financial institutions.
6.9 Under National Equity Fund Scheme (NEFS) the Corporation sanctioned
equity assistance amounting to Rs. 201 lakh to 97 small scale units in the year
2005-06. The Corporation also provides financial assistance under composite loan
scheme in order to assist smaller units in SSI sector, artisans and other skilled
persons.
6.10 WBFC assisted the units that undertake upgradation of technology under
the technology upgradation fund scheme (TUFS) for textiles. Under equipment
refinance scheme (ERS) the Corporation provides assistance for acquisition of
equipment to small and medium scale units, which are in operation for at least
four years and are earning profits with satisfactory track records. Under ERS and
TUFS schemes the Corporation sanctioned a total amount of Rs. 4271 lakh to 46
units in the financial year 2005-06.
6.11 WBFC also provided financial assistance to the tune of Rs. 1209 lakh for
setting up of 30 nursing homes and diagnostic centres with modern equipment in
the financial year 2005-06.
6.12
The Corporation provides financial assistance – both term and working
capital loans to selective SSI units with a view to helping the smaller ones of
small scale sector to launch their projects quickly with assistance from a single
163
source. During 2005-06, the Corporation sanctioned Rs.412 lakh to 26 units as
against Rs.459 lakh sanctioned to 28 units in the previous year.
6.13
During the financial year 2005-06 rate of growth in the area of recovery
of loan from the assisted units by the Corporation has slowed down a little, total
amount recovered being Rs.11824 lakh.
Small Industries Development Agency
6.14
The Small Industries Development Agency(SIDA) provides single
window services to SSI entrepreneurs. It provides escort services to investors with
proposed investment in plant and machinery over Rs. 2 lakh. SIDA provides
assistance/guidance in respect of (i) power connection from WBSEB/CESC, (ii)
finance from banks/financial institutions, (iii) no objection certificate (NOC) for
pollution from West Bengal Pollution Control Board (WBPCB) for registered SSI
units falling under ‘red’ category, and (iv) one-time compromise settlement of SSI
units with banks/financial institutions in case of sickness.
6.15
At first the activities of SIDA were confined mostly to the districts of
Kolkata, North and South 24- Parganas, Howrah and Burdwan. Now SIDA settles
unresolved cases that are referred to it by the respective District Industries Centres
(DIC) all over West Bengal. Since inception till March 2006, SIDA sponsored
1067 numbers of SSI projects involving total investment of Rs. 249.408 crore.
However, in recent time, inflow of new entrepreneurs at SIDA has slowed down
due to stringency in bank finance and non-availability of Government land/shed
in and around Kolkata and adjoining districts.
Prime Minister’s Rojgar Yojana
6.16
The conditionality of Prime Minister’s Rojgar Yojana (PMRY) has been
modified over the last few years. The upper limits of the project cost for the
schemes under PMRY are Rs.1 lakh for business sector and Rs. 2 lakh for other
activities. The educational qualification of the beneficiaries has been relaxed from
matric appeared to class VIII passed. Preference is given to those who have been
in the trade for at least six months. The age limit under the scheme is 18-35 years
with a relaxation of 10 years for SC/ST, ex-servicemen, physically handicapped
and women. In September, 2000, Government of India enhanced the family
income ceiling under PMRY from Rs. 24000 to Rs. 40000 per annum.
6.17
Table 6.3 shows the performance under PMRY. The achievement under
the scheme is not very encouraging. Till 2000-01, disbursement of sanctioned
cases showed a downward trend. Signs of improvement is being noticed in recent
years.
164
Table 6.3
Performance under PMRY
Year
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07(till
Oct.,2006)
No.
of
Cases No. of Cases Average sanctioned
Sanctioned
by Disbursed
by project cost (Rs. in
Banks
Banks
lakh)
2315
628
0.616
2647
852
0.609
2834
1174
0.635
3758
1956
0.629
5542
3661
0.661
5487
5032
0.679
1670
899
N.A.
N. A. = Not available.
Source : Department of Cottage and Small Scale Industries, Government of West Bengal.
6.18
If we analyze the above table, the average project cost comes out to the
tune of Rs.60,900/- to Rs. 67,900/ -. It appears that schemes of higher project cost
up to Rs.1 lakh for business sector and up to Rs.2 lakh for industry sector are not
being selected or finally attracted. One of the reasons might be the low quantum
of maximum admissible subsidy. Increase in the existing ceiling of
subsidy(Rs.7500 per beneficiary) may change the present scenario of PMRY.
Poor recovery of PMRY loan cases is one of the reasons behind this poor
performance.
Ancillarisation Programme
6.19
The Directorate has a programme of encouraging the small units to
develop as ancillary to public sector undertakings. Under the programme, the
units get marketing support from the big industries. Nearly 150 numbers of SSI
units have been given ancillary status by large industries and plant level
committees have been formed by 15 public sector undertakings to support/guide
them. Moreover about 250 numbers of SSI units are registered as vendors by
different public sector undertakings and a few private sector industries in
Durgapur and Haldia and are getting orders regularly. Table 6.4 shows the offloading position of some of the public sector undertakings during the year 200405.
165
Table 6.4
Position of Off-loading of Some Public Sector Undertakings in 2004-05
Sl.
No.
Name of the
PSUs
Offloading to
SSI Units
(Rs.in
lakh)
Off-loading
to Ancillary
Units (Rs. in
lakh)
Total
purchase of
the PSUs
(Rs. in lakh)
1
2
3
Durgapur
Steel Plant
Eastern Coal
Fields Ltd.
IOC(Haldia
Refinery)
88.09
996.95
1000.00
1310.00
666.98
36.00
27741.00
11085.30
20000.00
% of offloading of SSI
& ancillary
units to total
purchase of
PSUs
5.00
15.01
5.20
Source : Department of Cottage and Small Scale Industries, Government of West Bengal.
6.20
The Eastern Coal Fields Ltd. purchases a major portion of its required
manufactured products from outside and accordingly, the percentage of its offloading (to the SSI and ancillary units) to its total purchase is higher.
6.21
The commissioning of Haldia Petro Chemical Limited had opened new
avenues setting up Petrochemicals downstream industries in the state. The
Directorate has laid great emphasis on development on plastic processing units in
the area. During the period 1998-99 to 2005-06 about 763 number of units have
been set up and total investment in Plant and Machinery is Rs.78.78 crore.
Technical Support
6.22 In order to meet the growing demand for tools and dies in the SSI sector
and to provide specialized training for increasing the availability of skilled
personnel, the State Government has decided to convert the existing tool room of
Central Engineering Organisation(CEO), Dasnagar, Howrah into modern mini
tool and training centre with the financial assistance from the Central
Government. So far the Central Government has released Rs.413 lakh and the
State Government has released about Rs.175 lakh till March’06. The State
Government has sanctioned the money partly towards cost of machinery and
partly towards working capital for the Central Tool Room Training Centre
(CTRTC), Kolkata. CEO also provides marketing assistance to the SSI units
affiliated to it. CEO obtains orders and farms it to the SSI units. It provides 80 per
cent down payment to the SSI units against the supply of orders by them. CEO
makes the balance payments when it receives payment from the customers. Only
a nominal service charge at the rate of 5 per cent is deducted by CEO for its
assistance.
166
6.23
The Electronic Test and Development Centre(ETDC), West Bengal,
provides services among electrical/electronic industries for improvement of
quality of their products and for conforming their products to national and
international standards. The services provided by ETDC include calibration, test
and evaluation of electric and electronic products and gadgets against national and
international standards. ETDC is also equipped to test performance of electric and
electronic products under different environmental stress and conditions. It also
imparts training on quality control, electronics and computers and arranges
seminar-cum-workshops at different DIC levels. It advises SSI units on quality
upgradation of their products. The overall performance of ETDC is shown in
Table 6.5.
Table 6.5
Performance of ETDC
Items
Calibration (in no.)
Tests (in no.)
No. of industries served
No. of persons trained:
i)
Electronics
ii)
Computers
iii)
Others
2003-04 2004-05 2005-06
431
564
405
149
185
118
200
230
170
60
90
40
64
61
30
197
Source: Department of Cottage and Small Scale Industries, Government of West Bengal.
Cluster Development
6.24
The State Government has a programme to develop SSI units that have
come up in clusters and there are 19 major SSI clusters in the state. Under the
cluster development programme, the Directorate has set up ferrous and nonferrous metal parts cluster in and around Bargachia of Howrah and surgical
instruments cluster at Baruipur, South 24- Parganas district in order to provide
better technical support to the small units. Under “National Programme for Rural
Industrialisation”(NPRI) the Central Government renders assistance to the tune of
167
Rs.5 lakh maximum for development of rural clusters the District Level
Implementation Committee(DLIC) of Hooghly and Howrah Districts have
forwarded proposals for cluster development in some villages. In order to enhance
productivity and competitiveness of Micro, Small and Medium enterprises in the
cluster, Small Industries Cluster Development Programme(SICDP) was
introduced. It is a centrally sponsored scheme and at present 92 clusters have been
identified in different districts in West Bengal. However, 20 proposals have
received approval. The total cost of cluster development programme in the state is
estimated at Rs.2626.27 lakh of which Central assistance is Rs.2117.21 lakh and
the balance fund will be shared between the State Government and the
Implementing agency.
.
Entrepreneurial Development Programme
6.25
The dearth of properly trained and knowledgeable entrepreneurs
among the beneficiaries under different self-employment programmes has been a
constraint on the effective functioning of the SSI units. The State Government has
accordingly undertaken the entrepreneurship development programme (EDP).
Apart from hands on training in various vocational fields the entrepreneurs are
given exposure to various aspects of running SSI units and business management
techniques. During 2006-07, a great numbers of entrepreneurs are covered under
six number of EDPs in the areas of cane and bamboo crafts and commercial
paintings, automobiles and other traditional crafts. An expenditure of Rs.18.17
lakh was incurred for the purpose.
Industrial Co-operatives
6.26
Any group of at least 10 artisans/ entrepreneurs/ workers forming a cooperative to establish a small scale unit for manufacturing and marketing of goods
is given registration as an industrial co-operative society. The skilled workers/
employees of closed or sick industrial units, who form co-operatives to run such
units are also registered as industrial cooperatives. During 2005-06, 15 number of
co-operatives were allowed registration. During 2006-07(till October,2006), 3
numbers of co-operatives were registered in the trade of clay modeling,
readymade garments and leather products.
West Bengal Small Industries Development Corporation
6.27
The West Bengal Small Industries Development Corporation(WBSIDC)
is a premier state level agency for promoting the small scale industries in the
state. It constructs industrial estates, assists SSI units in marketing their products,
arranges for the supply of scarce raw materials and provides various other
services.
6.28
WBSIDC has so far developed 38 industrial and commercial estates. A
joint sector company is being formed to develop a commercial estate at Kasba.
Joint sector ventures are also being formed to develop and modernize existing
estates and to develop new ones. Repair and maintenance of Kasba, Siliguri,
168
Dabgram industrial estates and Raiganj and Malda commercial estates are being
carried out. WBSIDC has also taken up the projects like construction of various
trade, commercial and office complexes. Apart from these, SSI units get
marketing support from WBSIDC under a common brand name. It has also taken
up two big projects for Rs.1.30 crore under RSVY in the district of Jalpaiguri.
6.29 During 2004-05, WBSIDC spent Rs.85 lakh on maintenance work for old
industrial and commercial estates. These maintenance work is necessary in order
to extend proper infrastructural facilities to SSI units.
Promotional Activities of the Directorate of Cottage and Small Scale
Industries
6.30
The DIC/Sub-DICs issue environmental clearance to SSI units. These
clearances are in 3 categories, green, orange and red (ordinary). Green category
units are permitted in any area of the state, orange category units are allowed in
all municipalities except Kolkata and Howrah Municipal Corporation areas or
within the industrial estates of these two cities. Red (ordinary) category units are
not allowed in the municipal limits of Kolkata Metropolitan Area. In 2005-06 the
total number of clearances issued by DICs/Sub-DICs are as follows:
i)
Consent to establish : Green: 3851, Orange: 3631, Red
(ordinary):201, Total:7683.
ii)
Consent to operate : Green: 931.
During the first two quarters of 2006-07 the clearances issued by DICs/Sub-DICs
are as follows:
i) Consent to establish: Green:1682, Orange:1793, Red (ordinary):
87,Total:3562
ii) Consent to operate : Green: 458.
6.31 The West Bengal Incentive Scheme (WBIS) 2000 has been replaced by
WBIS 2004 with effect from April 2004. During 2005-06, a sum of Rs. 3795.36
lakh was allotted to DICs/Sub-DICs and they utilized a sum of Rs. 3723.13 lakh
on account of payment of pending subsidy claims. 553 number of units were
benefited from the scheme. Under the scheme, certificates for waiver of electricity
duty were issued to 46 eligible units. During the period certificates for availing
concessional electricity charges were issued to 12 units.
6.32 The State Government extends marketing support to the SSI units and
handicraft artisans through participation in different exhibitions and trade fairs at
national, state and district levels. In 2005 the State Government spent Rs. 3.82
lakh to provide stalls/spaces to 56 units (against a nominal fee) in the India
International Trade Fair at New Delhi. At the district level, DICs assisted SSI
units to participate in a large number of fairs.
6.33
The national project on Biogas and Manure Management Programme is
being implemented by West Bengal Renewable Energy Development Agency
(WBREDA) as a nodal agency through the Directorate of Cottage and Small
Scale Industries and some NGOs. During the year 2005-06, the Directorate of
169
C&SSI has set up 3000 number of Bio Gas Plants in different districts of West
Bengal.
BSAI Act Loan
6.34 The basic purpose of extending loans under Bengal State Aid to Industries
Act, 1931 is to provide financial assistance especially to the different small
handicraft units/ artisans by the Government through the General Managers of
DICs of different districts. At present the limit of loan is Rs. 10,000/- per artisan
and the sanctioned amount of loan is required to be repaid in equal annual
installments not exceeding 15 commencing from the first anniversary of the
drawal of loan. The rate of interest is 8 per cent per annum subject to a subsidy of
2.5 per cent per annum for timely and regular payment in all cases. During the
current year the recovery position has improved considerably. In 2005-06, the
Government disbursed Rs. 50.10 lakh for this purpose. 519 units have been
benefited. The Government has also taken several steps to improve the recovery
of loans.
6.35 The State Government has also taken initiative for repayment of outstanding
loans. During 2005-06 an amount of Rs.19.50 lakh was realized. The State
Government also provides grants towards salary, maintenance and capital
assistance to the technical and industrial schools.
Leather
6.36 West Bengal plays a vital role in the processing and manufacturing of
leather and leather goods for the domestic market. The state contributes to 15 per
cent of total export of leather goods from India during 2005-06. West Bengal has
538 tanneries. Table 6.6 presents the comparative position of the state in export of
different types of leather products with respect to India.
Table 6.6
Export of Different Leather and Leather Products from
West Bengal and India
Product
Finished Leather
Leather Foot-wear
Foot- wear Components
Leather Garments
Leather Goods
Saddlery and Harness
Non Leather Foot-wear
2004-05
West
India
Bengal
145.585 2730.625
18.226 2955.518
5.731
805.212
60.927 1480.227
1563.998 2631.713
1.791
277.265
5.254
331.504
170
(Rs. in crore)
2005-06
West Bengal
India
134.092
17.446
1.580
64.354
1596.172
0.777
3.814
2683.226
3483.282
792.667
1454.133
2873.966
338.260
304.360
Total of Leather and
Leather Products
1801.512 11212.064
(16.07%)
1818.235 11929.894
(15.24%)
Source: Council of Leather Export.
6.37
The Government has an elaborate training infrastructure for upgrading the
knowledge and skill of the artisans and small entrepreneurs. Training programmes
on footwear and leather goods production are organised by the DICs in their
respective districts. Training programmes for women entrepreneurs on the
production of fancy leather goods are organised at Kolkata. In collaboration with
the Central Foot-wear Training Institute, Agra a footwear project has been started
in Bankura district under which training is given to the artisans and owners of
small units for upgrading skill in footwear production. The State Government
provides assistance to the small scale leather units/artisans through participation
in fairs like LEXPO, EXPO, IITF (New Delhi), etc. The West Bengal State
Leather Industries Development Corporation Ltd. provides marketing facilities to
the small scale units by selling their products through its retail outlets. WBSLIDC
also collects orders from various Government organizations and the orders are
executed by procuring finished products from the small leather good
manufacturing units.
Handicrafts Sector
6.38
West Bengal has a large number of artisans skilled in the production of
various handicraft products. The Government has wide ranging programmes for
promotion of handicraft industries in the state. The creation of new design and
arrangement of training programmes for artisans are important functions of the
Experimental Workshop-cum-Research Institute situated at Baruipur in the
district of South 24- Parganas. During the financial year 2005-06, 38 handicrafts
artisans were imparted advance training for different trades like batik print, soft
dolls, dry flowers, hand embroidery, fabric printing, etc. at the state level. DICs
also organize various training programmes for the development of skill and
design in different handicraft activities.
6.39
The State Government organizes district level competitions in order to
encourage the handicraft artisans for creation of better and innovative handicraft
products. During 2005-06, 252 artisans were given district awards and 75 artisans
state awards. The Directorate also encourages artisans to participate in a number
of fairs and exhibitions thereby providing marketing assistance to the handicraft
artisans. Besides, the Government also provides financial assistance in the form of
grant of reimbursement of travel costs to the poor handicraft artisans for
participation in different exhibitions and fairs.
6.40
As per existing scheme of payment of pension of old age handicrafts
artisans, eligible artisans above the age of 60 and having no other source of
income are granted pension at the rate of Rs. 400 per month. In 2005-06, the
171
Government disbursed an amount of Rs.45.52 lakh among 876 artisans towards
old age pension through the DICs.
Coir Industry Development Scheme
6.41
There is sufficient potential for development of coir industry in the state.
It is the 5th largest state in production of coconut. The Government of West
Bengal has set up two training cum servicing centres for the coir industry, one at
Uluberia in Howrah and the other at Dhancheberia in South 24- Parganas.
During 2005-06 training programme for manufacture of coir yarn and coir
products are organized at Dhancheberia under ‘Mahila Coir Yojana’ of the Coir
Board, where 40 women were trained up. Machines for the said training were
provided by the Coir Board. Demonstration programme on preparation of coir
pith manure and on quality improvement of coir products have been organized in
different areas of Howrah and South 24- Parganas.
Lac Development Scheme
6.42
The State Government has implemented a number of schemes to develop
lac industry in the state. The basic raw material is cultivated in the mono-crop
drought prone areas of Purulia, Bankura, Midnapur , Murshidabad and Malda.
The processing units are mainly in Purulia district. During 2005-06, the state
produced only 90kg. of stick-lac, which cannot meet even 10 per cent of its
requirement.
6.43
During 2004-05 backward districts like Bankura and Purulia have come
under a new scheme called Rastriya Sam Vikash Yojana (RSVY).Both the
districts have prepared plans for implementation of different projects for lac
development under this new scheme.
6.44
The State Government has set up 23 brood lac farms in order to meet the
need for quality brood-lac of the farmers. Brood-lac produced in the state are
distributed free of cost to the lac cultivators as per recommendation of the
panchayats. During 2006-07(till December ,2006), 5240 kg. of brood-lac was
produced and 4465 kg. of brood-lac was distributed among 900 beneficiaries.
Sericulture
6.45 Sericulture is a labour intensive major agro-based cottage industry in the
state of West Bengal. It produces all the four commercially exported varieties of
silk. In this sector, the State Government aims at improving the production,
productivity and product quality in the pre-cocoon as well as post-cocoon stages
by transferring the new technologies developed by the Central Silk Board to the
sericulturists in the state. The Directorate of Sericulture has undertaken a number
of programmes for overall development of sericulture activities of the state. The
major objectives are as follows:
To replace local variety of mulberry with HYV mulberry ensuring that
loss to farmers in the process is compensated.
172
To supply rearing inputs/appliances to the beneficiaries at free of cost or at
subsidized rates under special schemes and to supply planting materials at
subsidized rates.
Maintenance and multiplication of basic silkworm seeds.
To promote post cocoon sector through development of reeling/twisting
technology for silk yarn.
To encourage cultivation of eri and muga in the district of Jalpaiguri and
Coochbehar respectively by providing necessary infrastructural
assistance to the tribals engaged in these activities.
To impart improved technological training to the officials, farmers, reelers
and private seed producers.
In addition, the State Government also aims at providing financial support and
necessary marketing support to the producers.
6.46 Apart from these normal routine activities, the Directorate has
implemented certain new schemes.
Catalytic Development Programme: A cluster of schemes was launched in the
year 1998-99 and the expenditure of the same is being co-shared by the State
Government and Central Silk Board. Major emphasis is given on areas like
construction of rearing houses for both mulberry and eri farmers, construction of
grainage building, supply of equipment to muga producers, augmentation of area
under eri culture, coverage of insurance for silkworm seeds in mulberry, tasar and
muga sector, supply of rearing equipments to the people in both mulberry and
non-mulberry sectors, providing working capital assistance to silk co-operatives
and strengthening of post cocoon areas through supply of reeling/spinning
machines to the beneficiaries in both mulberry and non-mulberry sectors.
Seri -2000: This programme was launched in 1998-99, but it was stopped in the
midway in July,2003. However, some of the major achievements of the
programme are 1) training of 112 reelers on improved reeling machine, 2)
establishment of 62 number of Quality clubs, 3) training of 173 licensed Seed
Preparers (LSP) at Silkworm Silk Technological Laboratory (SSTL), Bangalore
under Central Silk Board, 4) replacement of 945 acres of land having local variety
of mulberry.
6.47
Extra Departmental Schemes: The Directorate receives fund from
different sources under various programmes like RSVY, SGSY, SGRY, BCWD,
etc. Different schemes under RSVY are being implemented for development of
Mulberry,Tasar, Eri culture in the districts of Uttar Dinajpur, Dakshin Dinajpur,
Midnapur, Birbhum, Bankura, Purulia and Jalpaiguri.
6.48
The status of sericulture sector as on March,2006 is shown in Table 6.7.
Table 6.7
Status of sericulture in West Bengal as on 31.03.06
173
Sl.
No.
1.
2.
3.
4.
5.
6.
Item
Mulberry
Tasar
Eri
Muga
Plantation (acre)
No.of farmers (families)
DFL consumption (lakh)
Cocoon production
34892
108000
481.72
14961MT
524
780
0.57
1552.48
512.00
12823
9000
6.63
22339
kahan
26.63
14.35
3.65
-
795
700
0.53
9.54
(lakh nos.)
0.20
0.10
2.80
0.26
0.01
0.015
62
16
4
59
12
2
2
5
12
8
1
1
1
-
2
1
-
Silk production (MT)
Silk waste production
(MT)
7.
Employment generation
(lakh nos.)
8.
Government
Infrastructure:
i)
Farms
ii)
Grainage
iii) Cold storage
iv) T.S.C.*
v)
Cocoon market
vi) Filature
vii) Twisting Plants
viii) Reeling
Training
Centers
ix) Sericulture
Training
Institute**
9
Infrastucture at private
level
i)
Reeling Units:
Ghosh Basin
Charka
Cottage Basin
ii)
Drying Chamber
iii) Powerlooms
iv) Handlooms
v)
Weavers
vi) Matka
spinners(Women)
4.57MT
(pierced)
2
2965
4248
264
110
128
18621
30000
35760
(Takli)
870
(improved)
174
207
46
(improved)
(improved)
1180
3800
230
(improved)
112
160
(takli)
147
(improve
d)
24
29
(improved)
vii)
Dyeing
units
and
printing
200
*TSC covers for both Mulberry and Non-mulberry sector.
**Training Institute imparts training in Mulberry and Non-mulberry sector.
Source : Directorate of Sericulture, Government of West Bengal.
6.49
As compared to previous year the total area under plantation of each of
four variety has marginally increased. However, additional 1332.91 acres of land
was brought under new mulberry plantation and additional 919.73 acres, 161.40
acres and 207.10 acres of land were brought under Tasar, Muga and Eri
plantation respectively during 2005-06.
6.50
In 2005-06, 1552.48 MT mulberry raw silk and 26.63 MT of tasar raw
silk was produced. Also, 3.65MT of eri spun yarn and 0.20MT of muga raw silk
were produced. Production of all the varieties have thus increased marginally
compared to previous year.
6.51
Under the Project for Development of Mulberry Production, 2802
farmers were benefited. Among them, 571 belonged to scheduled castes and 104
to scheduled tribes. Under the project for Institutional Finance for Development
of Sericulture, a sum of Rs. 1.86 lakh was utilized for providing subsidy to only
40 number of rearers. Under the Human Resource Development Project, a sum of
Rs. 4.96 lakh was utilized in order to impart training to 1982 sericulturists.
6.52
A number of special schemes were also implemented in the year 200506. A sum of Rs. 42.65 lakh was incurred for the execution of various
maintenance works at various Government farms. A sum of Rs.7.62 lakh was
utilized to purchase tasar and muga seeds. 193 SC and 466 ST sericulturists were
benefited by the scheme.
6.53
Apart from the normal schemes, a few need-based schemes were
implemented for improving the quality and quantity of production. During 200506, assistance was provided to 47 rearers for adopting shelf- rearing, 390 rearers
for remodeling of their rearing houses.
6.54
Under catalytic Development Project, 888 rearing houses were built in
the Mulberry Sector. Cost of Rs. 7.80 lakh mulberry saplings was reimbursed
benefiting 831 number of sericulturists. In the Tasar sector, assistance was
provided to 464 Tasar rearers for development of chawki rearing and maintenance
of host plants. Assistance was also provided to 190 Tasar rearers for purchasing
rearing equipment. In the eri sector, assistance was provided for augmentation of
eri host plant in 75 units. 15 eri rearers were assisted to construct rearing housescum-grainage building. In the Muga sector, assistance was provided for
augmentation of muga host plant on 125 acres of land and 142 muga rearers were
assisted to procure start up tools. In post cocoon sector, assistance was provided
to 159 spinners and 25 reelers to procure improved spinning wheel and reeling
devices.
175
Handloom
6.55
The handloom industry is the largest cottage industry, which provides
widest avenue of employment. There are about 351 thousand handlooms in the
state providing full time and part time employment to about 667 thousand
handloom weavers.
6.56
The strategy of the Government in the handloom sector is to form cooperatives of poor handloom weavers and to assist these co-operative with inputs,
marketing assistance, etc. The State Government encourages the co-operatives to
produce fabric according to market demand. Every effort is made by the
Government to provide the handloom sector with information about current
fashion, designs, colour combinations, etc.
6.57
At the end of 2005-06 as many as 298228 handloom weavers have been
brought effectively under 613 active co-operatives till date.
6.58
Total production of handloom cloth has remained almost stagnant as
compared to previous year. In the year 2005-06 total production of this sector was
to the tune of 1080.00 million metres. The State Government supplies yarn to the
handloom co-operatives and other poor handloom weavers through Tantuja (apex
Soceity) and Tantusree. The yarn is produced by six spinning mills under the
control of the State Government. The State Government had set up a monitoring
committee to oversee the operation of the mills. It also provides sufficient fund to
the spinning mills in order to improve their working efficiency through
upgradation and modernization of their manufacturing facilities. The annual
export of handloom products from this sector is about Rs.12.00 crore.
6.59
The six spinning mills now functioning under the direct control of the
C&SSI department are: West Bengal Co-operative Spinning Mills Ltd.,
Tamralipta Spinning Mill, Kangsabati Spinning Mill, Kalayni Spinning Mill,
West Dinajpur Spinning Mills Ltd., Mayurakshi Cotton Mills Ltd. Kangsabati
Spinning Mills is producing acrylic and synthetic yarn and other mills are
producing only cotton yarn. Yarn produced by these mills are marketed through
Tantuja , Tantusree and West Bengal Handloom & Powerloom Development
Corporation (WBHPDC). In the year 2004-05, the total turnover of West Bengal
State Handloom Weavers Co-operative Society Ltd. was Rs. 28.35 crore and that
of WBHPDC was Rs. 10.85 crore. Entire requirement of cotton for the six mills
is purchased from Cotton Corporation of India under the supervision of the
monitoring committee of the State Government. The State Government also
provides financial assistance to these mills for their renovation and modernisation.
However, as compared to previous year total turnover has fallen with the fall in
total production.
6.60
In view of globalisation of market leading to the change of taste of
modern consumers for fashion fabrics, the sustenance of handloom industry is
176
now solely dependent on the production of value added products through
development in designs and improvement in finishing quality and colour. The
production of high quality fabric with new designs is being promoted by schemes
like Din Dayal Hathkargha Protsahan Yojana (DDHPY) and development of
exportable products and their marketing (DEPM), etc. In 2005-06 one CAD/CAM
centre for design development was to be set up at Samudragarh near Burdwan.
6.61
The State Government also formulated a number of welfare schemes for
the poor handloom weavers in the state. Weavers are covered under provident
fund/thrift fund and during 2005-06 there was a budget provision of Rs. 10 lakh
for 4200 number of weavers. So far 6905 weavers have been covered under a
workshed-cum housing scheme. Apart from these the Directorate has also
introduced old age pension scheme for weavers under co-operatives and health
insurance schemes.
Powerloom Sector
6.62
At present there are about 6089 powerlooms in West Bengal and 40
powerloom co-operatives, out of which only 18 co-operatives are working. Only
658 powerlooms are working under co-operative societies. Annual production of
this sector is estimated to be 152.90 million metres. These looms mostly produce
coarse /medium count dhuti, saree, markin, long cloth, tikkin cloth, etc. Some of
these looms also produce polyester blended fabrics. Most of these looms are
running on job work basis for paucity of working capital and adequate marketing
facilities.
Hosiery
6.63
There are about 17900 hosiery units in the state. These units are located
mainly in Kolkata and Howrah and there are nine registered co-operative societies
out of which only four units are active. These units are engaged in activities like
knitting, processing, cutting and stitching. The annual production of this sector is
estimated to be 1600 million square metres approximately. The State Government
provides financial assistance to the co-operatives under the state plan schemes. It
also encourages the entrepreneurs to set up new hosiery units by providing
assistance in the formulation of bankable schemes.
Readymade Garments
6.64
There are 699 licensed readymade garment units in the state, located
mostly in Metiabruz, Gardenreach, Santoshpur, Bankra and Jagdishpur. Most of
these units are tiny units and operate with outdated machinery and technology.
There are 71 registered readymade garment co-operative societies of which only
10 societies are active. The annual production of this sector was estimated to be
Rs.10340 crore. The State Government arranges training programmes in tailoring
institutes located in Kolkata, Malda and Coochbehar. The Government is also
considering a proposal for setting up of an apparel park at Uluberia, Howrah. The
177
Government encourages entrepreneurs in various ways for setting up modern
readymade garment manufacturing units.
178