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BANKING TRADE AND COMMERCE
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STATE AID TO INDUSTRIES
With a view to encouraging and developing small-scale and cottage industries the Government of Maharashtra has made them a special responsibility of the Department of Industries. The department gives financial assistance to these Industries under various schemes under which loans are granted for: —
(1) construction of buildings, godowns, warehouses, wells, tanks, etc.,
(2) purchase of land for buildings,
(3) purchase of and erection of plant and machinery,
(4) purchase of raw materials, and
(5) use as working capital.
The important small-scale and cottage industries in the Bhandara district are bidi making, handloom, brassware, rice milling, gur making, cane and bamboos works, saw milling, soap, cement tiles, oil ghanis, etc.
In 1960, the Government of Maharashtra passed the Maharashtra State Aid to Industries Act, to regulate grant of loans to small-scale and cottage industries in the State. Under the Act cottage industry is defined as an industry carried on by an artisan in or near his home with capital not exceeding Rs. 25,000. The Act defined small-scale industry as an industry with capital assets not exceeding Rs. 5 lakhs, regard being had to the nature of the undertaking and the number of persons employed therein. The loans granted under the Act were repayable by instalments together with interest from the date of the actual advance of the loan.
Subsequently, the Government passed the Maharashtra State Aid to Industries Rules 1961 with a view to granting loans to small-scale or cottage industries for the following purposes: —
(1) purchase of land required for an industry,
(2) construction of buildings for worksheds, godowns, warehouses, wells etc.,
(3) purchase of tools, equipment, appliances, plant and machines,
(4) erection of plant and machinery,
(5) purchase of raw materials, or for other use as working capital otherwise than as cash credit, and
(6) tiding over initial difficulties or bottlenecks.
Under the rules the following authorities are entitled to grant loans up to the amount specified against each of them as given below: —
|
Authority | Amount | |
Rs. | |
Secretary to Government, Industries and Labour Department |
1,00,000 | Director of Industries |
25,000 | Deputy Director of Industries |
5,000 | Assistant Director of Industries |
2,000 |
The loans, which are granted to the extent of Rs. 1,000 are to be secured by personal bond of the applicant, and in case of the applicant being a firm, by personal bonds of all partners. Loans exceeding Rs. 1,000 but not exceeding Rs.
5,000 are to be secured by one or more personal sureties.
[Statistics of the financial assistance given under this scheme
are not available].
Maharashtra State Financial Corporation: Financial assistance to small-scale and cottage industries is rendered through this agency also. Originally known as the Bombay State Financial Corporation, this institution was set-up in the year 1963 under the State Financial Corporation Act, 1951. Now its activities are restricted only to Maharashtra State.
The Corporation provides financial assistance to medium and small-scale industrial concerns in the State for purposes of purchase of land, plant and machinery and other assets, for renovation and expansion of new ones. It considers applications from small-scale units under the State Aid to Industries Rules for aid ranging between Rs. 10,000 and Rs. 75,000 and in exceptional cases up to Rs. 1 lakh.
The rate of interest for loan advanced is 6½ per cent. The period of loan is
decided on merit but is not generally more than ten years. The amount of loan is
to the extent of 59 per cent of the net value of the fixed assets consisting of
land, building, plant and machinery [Statistics of the financial assistance
given under this scheme are not available].
Assistance by Zilla Parishad: The following schemes are implemented in the district by the Zilla Parishad: —
(1) Grant of subsidy for management expenses,
(2) Grant of loans and subsidies for purchase of tools and equipment, and
(3) Grant of loans and subsidy for construction of godown and shed to the industrial co-operatives and weavers' societies. The funds for the schemes are provided by the Co-operation Department of the State Government. The schemes are being implemented to provide funds for the weak industrial co-operatives at their primary stage since they are unable to incur management expenses. The management subsidy is granted to them to cover the losses.
Under the State Aid to Industries Rules, 1961, the loans to the individual artisans numbering 759 have been granted by the Zilla Parishad since 1962-63. The funds are provided to the Zilla Parishad by the State Government.
Upto October 1969, 37 industrial co-operatives took financial, assistance provided by the Zilla Parishad under the State Aid to small-scale industries and backward class workers schemes.
The following tables furnish the statistics of financial assistance to individual artisans and goldsmiths and to industrial co-operatives in the district by the Zilla Parishad: —
TABLE No. 25
FINANCIAL AID TO INDIVIDUAL ARTISANS AND GOLDSMITHS UNDER STATE AID TO INDUSTRIES RULES, 1961, BY ZILLA PARISHAD,
BHANDARA.
|
Sr. No. |
Name of scheme |
|
1962-63 |
1963-64 |
1964-65 |
1965-66 |
1966-67 |
1967-68 |
1968-69 |
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) |
(10) | 1 |
Loans to backward class artisans under S.A.I., Rules* 1961. |
Loan |
4,583 |
-- |
-- |
-- |
-- |
-- |
-- |
2 |
Loans to educated unemployed bonafide craftsmen under S. A. I. Rules, 1961. |
Loan |
1,000 |
-- |
-- |
-- |
-- |
-- |
-- |
3 |
Loans for financial assistance to industrial artisans under S.A.I. Rules, 1961. |
Loan |
7,000 |
2,51,000 |
59,700 |
48,750 |
40,500 |
49,700 |
41,500 |
4 |
Total number of loanees |
|
16 |
48 |
94 |
88 |
95 |
116 |
115 |
5 |
Loans to Goldsmiths under S.A.I. Rules, 1961. |
|
-- |
38,850 |
19,400 |
8,200 |
-- |
2,500 |
-- |
6 |
Number of loanees |
|
-- |
110 |
49. |
23 |
-- |
5 |
-- |
* S.A.I.—State-Aid to Industries Rules.
TABLE No. 26
FINANCIAL ASSISTANCE TO INDUSTRIAL CO-OPERATIVES BY ZILLA PARISHAD, BHANDARA.
|
Name of scheme |
Loan or subsidy |
1962-63 |
1963-64 |
1964-65 |
1965-66 |
1966-67 |
1967-68 |
1968-69 |
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) | *S.S.I.-11 Plan Schemes- |
| | | | | | | |
|
Tools and equipments to industrial co-operatives.
|
Loan |
2,000 |
3,000 |
6,000 |
3,000 |
600 |
3,600 |
3,000 |
|
Subsidy |
1,000 |
1,500 |
3,000 |
1,500 |
600 |
3,600 |
3,000 |
|
Godown and shed to industrial cooperatives. |
Loan |
-- |
-- |
-- |
8,000 |
11,000 |
6,000 |
6,000 |
|
Subsidy |
-- |
-- |
-- |
4,000 |
4,600 |
3,900 |
3,000 |
|
Management subsidy to industrial co-operative societies. |
Subsidy |
5,663 |
6,000 |
3,351 |
4,202 |
3,517 |
3,000 |
1,855 |
|
Management subsidy to handicraft workers. |
Subsidy |
1,000 |
900 |
2,000 |
-- |
-- |
-- |
-- |
|
Total |
|
9,663 |
11,400 |
14,351 |
20,702 |
30,317 |
20,100 |
16,855 |
†B.C.W.-3 Management Subsidy— |
|
|
|
|
|
|
|
|
|
Scheduled Castes |
-- |
-- |
1,400 |
3,000 |
2,000 |
500 |
1,000 |
200 |
|
Scheduled Tribes |
-- |
-- |
600 |
1,000 |
1,000 |
-- |
-- |
-- |
|
Other Backward Classes |
-- |
-- |
500 |
600 |
600 |
-- |
-- |
-- |
|
Total |
-- |
-- |
2,500 |
4,700 |
3,600 |
500 |
1,000 |
200 |
*S.S.I.—Small-scale Industries. †B.CW.—Backward Class Workers. |
