FINANCE

STATE-AID TO INDUSTRIES

In an economy hampered by its natural backwardness the onus developing small scale and cottage industries falls naturally upon the State. The State encourages these industries by providing training facilities to artisans in the use of improved tools and equipment, by organising industrial co-operatives and by helping non-official institutions like the Maharashtra Village Industries Board in conducting certain industries in rural areas. It can also grant financial assistance to individual artisans and their co-operatives for the purchase of raw materials, tools and equipment, for payment of wages and for marketing.

The Government of Maharashtra has been following a liberal policy as regards financial assistance to the small-scale and cottage industries, which has found full support in the Five-Year Plans. This has had a very beneficial effect upon the co-operative societies in Jalgaon district whose number has considerably increased during the recent years. The district had by the end of 1955-56, 54 industrial co-operative societies of weavers who controlled over 3.000 handlooms. Naturally, the Government has been giving special attention and a larger financial help for its development. Similar assistance is also extended to tanning and leather working industry.

Schemes for financial assistance.

Recently, the Government of Maharashtra has established a separate department known as the Department of Industrial Co-operafives and Village Industries for executing various schemes under which financial assistance is granted to individual artisans and their co-operative societies. The details of these schemes are given below.

The co-operative societies of artisans are assisted under the following schemes: —

(1) Scheme for financial assistance to weavers' societies for working capital through Central Financing Agencies.—Loans up to Rs. 300 per handloom arc given to weavers' societies through the East Khandesh Central Co-operative Bank, Ltd., Jalgaon. It carries an interest of 2½ per cent repayable in ten years by equal yearly instalments. Figures for the last few years show a considerable increase in the assistance granted by the Government. The assistance given was to the tune of Rs. 2,88,758 in 1955-56. Rs. 18.000 in 1956-57 and Rs. 1.95,810 in 1957-58.

(2) Scheme for financial assistance to weavers' societies for share capital.—In order to enable the weavers to become members of co-operative societies loan up to 87.8 per cent of the value of the share of a society is given to the prospective applying member. The loan is free of interest and is repayable in ten monthly instalments. The loans received by the weavers' societies in 1955-56 and 1956-57 amounted to Rs. 18,915 and Rs. 2.955, respectively.

(3) Financial assistance to weavers' societies for purchase of improved tools and equipment.—Grants-in-aid to the extent of Rs. 72.520 have been given to weavers' societies for different purposes.

(4) Marketing Finance to Weavers' Co-operative Societies.—-In order to facilitate the purchase of finished goods of member societies, loan of Rs. 90,000 was given to the Jalgaon District Industrial Co-operative Association, Jalgaon.

(5) Financial assistance for dye-houses.—In order to improve the quality of finished goods of Weavers' Co-operative Societies loan of Rs. 1,500 and a subsidy of Rs. 15,000 were granted to nine weavers' co-operative societies.

(6) Financial assistance for other purpose under Handloom Development Scheme.—Grant-in-aid of Rs. 52,000 was given to twelve sale depots. Grants totalling Rs. 6,000 were given to the Jalgaon District Industrial Co-operative Association, Ltd.. Jalgaon, for conducting a central sale depot. A loan of Rs. 10,000 and a subsidy of Rs. 22.000 were given to the Jalgaon District Industrial Co-operative Association, Ltd., Jalgaon, for starting a pattern-making factory. The Association has since then introduced new varieties. Grants amounting to Rs. 16,000 are given to eight societies for preparation of samples of handloom cloth.

(7) Scheme for financial assistance to the Industrial Societies through Central Financing Agencies.—Loans are given to the Industrial Societies for purchase of tools and equipment and for working capital. In the beginning, the loans were advanced by the Department and were repayable in eight equated six-monthly instalments within a period of five years. The rate of interest was 4½ per cent. Subsequently, the loans were channelled through the Jalgaon Central Co-operative Bank. Ltd., jalgaon and were made repayable in one year. The interest charged was 2½ per cent. In 1955-56 loans amounting to Rs. 2.000 were given and during the two subsequent years the amount of leans sanctioned stood at Rs. 32.000 and Rs. 94.100, respectively

(8) Scheme for Financial Assistance to Industrial Societies for purchase of toots and equipment.—Under the scheme, loans are. repayable in eight equated six-monthly instalments, bearing a 4½ per cent rate of interest. In 1955-56, a loan of Rs. 3.750 and a sudsidy of Rs. 1.250 were given to one society. Now these loans are given through the Bank with 2½ per cent interest rate.

(9) Financial Assistauee to Forest Labourers' Co-operative Societies from scheduled areas.—Under this, contribution towards share capital amounted to Rs. 3,000. Grants towards welfare activities and management amounted to Rs. 1,500 and Rs. 1,200, respectively.

(10) Financial Aissistance to Indutrial Co-operative Societies (other than Forest Labourers and Labour Contract Societies) in seheduled areas.—In 1957-58, Rs. 2,000 were contributed towards share capital of one society.

(11) Financial Assistance to Labour Societies of Nomadic and Semi-Nomadic tribes.—Government contributes up to 51 per cent of the share capital of industrial societies and District Co-operative Associations under this scheme. Such contributions amounted to Rs. 1.340 and Rs. 41.000 in 1956-57 and 1957-58, respectively.

Where it is not possible to organise industrial co-operative societies of artisans, they are financed individually under schemes given below:—

Other Important Schemes.

(1) Loans to backward class artisans.—Loans to serve as working capital are given to hereditary backward class artisans. They are repayable in fifty monthly instalments and carry 4½ per cent rate of interest. A part of the loan is sanctioned free of interest. The loans sanctioned under this scheme in 1955-56, 1956-57 and 1957-58 totalled Rs. 5,550, Rs. 6,050 and Rs. 8,075, respectively.

(2) Loans to Educated Unemployed.—Loans are given to persons who have studied up to S. S. C. or Primary School Certificate Examination so as to enable them to develop any craft of their own undertaking wherein they are trained. The loans are repayable in 50 monthly instalments and the rate of interest is 4½ per cent. During 1955-56 only one artisan was granted this help amounting to Rs. 1.000.

(3) Financial Assistance under Stale-aid to Industries Rules of 1955.—Loans are given to artisans for purchase of tools and equipment and for working capital under the scheme. The loans are repayable in fifty monthly instalments, and bear a 4½ per cent rare of interest. Under this scheme no loans were given during the years 1955-56 and 1956-57; but in 1957-58 loans to the extent of Rs. 17,400 were advanced to the artisans coining under this scheme.

There has been an increasing; demand for financial assistance under the schemes noted above as new industrial societies are unable to raise adequate finance of their own. The stringency of finance has been considerably lessened due to the assistance extended by Government towards the share capital of the societies. Similarly, the difficulty faced by individual artisans in obtaining surety for loans has been removed due to the recommendation endorsed by social service organisation on loan applications.

State-aid to Fisheries.—The growing importance of fishries was recognised by the Government as far back as 1945 when a full-fledged Directorate of Fisheries was set up. The fisheries schemes have a dual importance. Firstly, they supplement the Grow More Food Campaign and secondly, they help the fishing community which is in a backward state.

As Jalgaon is not a coastal district, the scope of developing the fishing industry is restricted merely to inland fisheries. The activities of the department of fisheries in this district, therefore, relate to stocking of inland waters with fish and other fisheries schemes.

The department provides for the grant of loans and subsidies under certain terms and conditions to fishermen and their cooperative societies for various purposes like purchasing of engines, mechanisation of fishing crafts, purchasing or repairing of fishing equipment such as boats, nets, engines, trucks and ice plant. However, due to the extremely limited scope for the development of fisheries in the district, the demand for loans submitted to the department in recent years has been practically nil.

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