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ECONOMIC PROSPECTS
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CONDITIONING FACTORS.
THE ECONOMIC ACTIVITY IN A GIVEN REGION depends on the availability of resources, on their effective use and on the level of social awakening of the people. In the wake of the development of modern means of transport and communications distance is fast diminishing; markets are fast widening and inter-regional dependence and specialization in production is on the increase. Under these circumstances while estimating economic prospects of a district, it is necessary to take into account the factors that are likely to raise the general level of economic activity in the country.
Our country has accepted the principle of balanced economic growth through implementation of a series of developmental plans, the first of which has already been completed and the second is being implemented. To the extent that these plans are successful, economic prospects of a district will be favourably affected. No attempt is made, in this chapter, to assess in detail the impact of the plans, though their general influence is always borne in mind.
Economic prospects for the district of Kolhapur, as visualised in the preceding chapters of this volume, appear to be bright. The expanding sugar industry, the multi-purpose hydroelectric project of Radhanagari, the manufacture for the first time, of aluminium that the Koyna hydro-electric project envisages are the principal factors calculated to shape the economic prospects. The district has been very fortunate to get, almost simultaneously, increased irrigation facilities and increased supply of electric power. Irrigation facilities not only bring new land under plough, but enhance the productivity of land under cultivation, and also make rotation of crops possible. Supply of power, as is well known, is an essential pre-requisite for industrial development. Even then, it is not possible to anticipate with any definiteness the economic prospects of this district; for a variety of factors has to be taken into consideration the behaviour of which cannot be forecast with accuracy. These factors, among others, are enterprise, availability of finance and expert knowledge.
AGRARIAN REFORMS.
The district is primarily agricultural. In the absence of any scope for bringing new land under cultivation, the available land must be cultivated intensively. The Agricultural Depart-ment has launched an intensive drive to increase the yield per acre. It is extending to the cultivator better and modern methods of agricultural operations, and impressing on his mind the importance of manures and seeds of improved strains. Composting city and village refuge will add to the cultivators manure supply and at the same time establish a new bond of co-operation between the rural and the urban sectors. Inculcation of the spirit of co-operation will certainly place the isolated and poor cultivators on a better economic footing. It is to the success of these measures that the economic prospects of the district are related.
The multi-purpose project at Radhanagiri, is a major project which will considerably enhance the economic prospects of the district. The river Bhogawati which is now bunded, used to run practically dry in the summer. Villages on its banks could not depend on it for an assured water supply. As the region is hilly, flow irrigation is very expensive. The water in the river has to be lifted for irrigation purposes. The reservoir at Radhanagari is to be used for irrigation as well as for generation of electricity needed to lift water for irrigation. The project, when completed, will benefit the district [Taken from " First Five-Year Plan, Bombay State, Kolhapur District."] in the following way:-
(1) An assured water supply to irrigate 8,000 acres of sugarcane and 10,000 acres of rabi crops from Radhanagari up to Shirol.
(2) Rabi crops 10,000 acres upto Kolhapur.
(3) Power to lift water for irrigation from Radhanagari to Shirol and also to minor industries and lighting in Kolhapur, Ichalkaranji, Jaisingpur, etc.
The power generated is 4,800 K.W. in 1956.
(4) Sufficient water supply to a part of the Kolhapur city
to be fed through the water works situated on the bank of
the Bhogavati river.
NEW INDUSTRIES.
Development of Sugar Industry.
The sugar industry is likely to expand and acquire an important place in the economy of the district. Since irrigation facilities have become available the acreage under sugarcane has continuously been increasing. The total number of acres under sugarcane in this district has shot up to 48,000 in 1955-56 from 32,000 in 1945-46. The nature of the soil and climatic conditions are quite suitable to sugarcane cultivation and so the present percentage of recovery (13.5) of sugar from sugarcane grown in the district though high enough, can still be raised by appropriate measures.
An attempt to run sugar factories on co-operative basis has caught the imagination of well-to-do cultivators in Maharashtra. In Kolhapur district, four such factories are under construction. If this attempt succeeds, it will lead to the expansion of the sugar industry. Co-operative management has many advantages. As the cultivators are also the owners of sugar factories there can be an assured supply of raw material. The difficulty of providing capital is minimised to the extent that the resources of many are pooled together.
At present most of the sugarcane grown in this district is utilised for the production of gur. But to the extent to which the sugar industry develops, production of gur might be curtailed unless sugarcane produce should be found to be in excess of what the sugar factories could crush.
Manufacture of organic solvents from molasses.
Manufacture of organic solvents from sugarcane molasses will be a new subsidiary industry. Molasses, a waste material in a sugar factory, can be converted into alcohol and organic solvents which are important industrial raw materials. Such organic solvents are: Ethnol, Butanol, Aceton, and other higher alcohols.
On account of the continuously increasing demand for plastics, alcohol manufactured from molasses is likely to be converted, at a later stage of production, into various plastics viz., Polyethylene, Polystrene, Polyvinyl, Chloride, Polyvinyl Acetate; into solvents such as Acetone Acetic acid and into Synthetic Rubber.
Manufacture of Citric Acid.
Sugarcane molasses are the main raw material for the production of citric acid, used mainly in the production of pharmaceutical grade citrates, as well as in soft drinks and food along with tartaric acid. Though correct figures regarding the existing demand are not available it is estimated that about 1,000 to 1,500 tons of acid can easily be consumed in the production of various products referred to above. As the size of a plant is adjustable to the available supply of molasses, subject to the minimum of five tons per day, citric acid is likely to be produced in the district. All these possibilities were absent in the past because manufacture of alcohol was prohibited.
Oil industry.
The total area under oil seeds is about 1,14,000 acres. The average yield per acre is about 1,000 to 1,200 lbs. Of the total production of 50,000 tons of oil seeds, only 12,500 tons are crushed in oil mills and an equal quantity in the country crushers called ghanies; the remaining 25,000 tons are exported. It is
quite possible that as the sugar industry develops, it may create conditions favourable to the expansion of the oil industry. The district is dependent on others for the supply of oil-cakes. This dependence will progressively increase as more and more acreage passes under sugarcane, to which oil-cake is an excellent manure. Thus the waste material of the oil industry has a ready and expanding market within the district.
Manufacture of Aluminium.
Manufacture of aluminium, which is an important non- ferrous metal required by various industries may be started, in the near future, in this district. Extensive bauxite deposits are known to be lying in the bowels of the earth in Kolhapur and Belgaum districts. There is an enormous demand in the country for aluminium in all forms. The Planning Commission has estimated the current annual demand for aluminium, in all forms, at about 20,000 tons as against the present production capacity of 7,500 tons. The necessary electric power for treating bauxite and other metallurgical operations, will be supplied in a couple of years by the Koyna Hydel Project, in addition to that supplied by the Radhanagari Project. The cost of generating electricity per unit is low in a Hydel Project and this will be an advantage to the factories located in the district over those located elsewhere. Petrolium coke used in manufacturing aluminium can be secured from the oil refineries at Bombay.
Development of Small-scale Industries.
Government is keen on developing small-scale industries and
in Pursuance of this policy, Kolhapur city is one of the nine centres selected by the State Bank of India for its "Pilot Project for the co-ordinated provision of credit to small-scale industries". In addition to this, facilities for training are also provided. People of the district have an aptitude for engineering. The demand for oil engines and pumping sets is likely to go up on account of increased irrigation facilities. This will open new opportunities for more engineering workshops repairing oil engines and also for the production of pumping sets and oil-engines, for which there exists no threat of external competition on account of the import policy pursued by the Government of India. Again as more and more electricity will be used in days to come, there is enough scope to manufacture small electric motors, other instruments and various spare parts.
To sum up, the district of Kolhapur, fortunate enough to get increased irrigation facilities and supply of electric energy, has a hopeful outlook. Its economic prospects tend to be bright in view of the expected developments in agriculture, industry and finance.
DISTRICT UNDER THE PLANS.
INTRODUCTORY.
Introductory.-This section presents in brief an account of the development programme in the district under the Five Year Plans. The bulk of the schemes included in the State plans are of a general nature and benefit all the districts of the State far and near. Certain schemes, however, belong so predominantly to the district that the benefits accruing from them necessarily pertain to the economy of the district. All such schemes are outlined below:-
Situation.-With a fairly compact area of 2,794.4 [Land Records.] sq. miles, this district is bounded by Ratnagiri district on the west, the Varana river (N. Satara) on the north, the South Satara and Belgaum districts on the east and Belgaum and Ratnagiri on the south. Traverse of Sahyadris in the west region, raises the height of this part at places up to 3,000' above sea level. The height of eastern part which is rather flat varies between 1,900 and 2,000 feet above sea level. The population of the district (1951) is 12,27,547, of which 2,27,457 is urban. The principal industries of the district are sugar, tanning, film, hand-loom and oil extracting.
AGRICULTURE AND ALLIED PROBLEMS.
Agricultural and Allied Problems.-The development schemes under the Five Year-Plans include schemes of compost making, seed improvement, vegetable development, mechanical cultivation, lift irrigation works, etc.
(a) Compost making.-In pursuance of Grow More Food campaign and to supplement the production of bulky manures in Bombay State, scheme for preparation of compost manure from organic wastes was undertaken. In the Second Plan the same programme is to be continued in additional fields.
(b) Seed Improvement.-For the improvement of the yield of crops, schemes for multiplication and distribution of improved strains of important food crops through the registered seed cultivators was undertaken in the district in 1951-52. The cultivators sell their produce to the Agricultural Department at a premium. During the Second Plan period special agricultural land is kept reserve (to be utilised) for meeting the requirements of seed in all the talukas of the district.
(c) Agricultural School.-The scheme aims at imparting
agricultural education, which other than research training,
includes subjects like animal husbandry, dairying, horticulture, co-operation and other complementary agricultural
occupation.
(d) Boring Scheme.-In order to augment the supply of
water by drilling bores in the wells, this scheme was undertaken
by and carried through the District Local Board. In the First
Plan period nearly ten wells were sunk every year. Repairs
to the old wells also is being carried out on a wide scale.
(e) Land Improvement Scheme.-In order to realise a balanced development of agriculture three fold improvement schemes viz., to minimise the denudation of land, to mechanise the methods of operation and to turn a fallow land into a cultivable land, is undertaken. In Kolhapur district during First Plan period construction of Bundharas and digging trenches to restrict denudation, was carried in 74,675 acres of land. A unit consisting of six tractors and a bulldozer has been attached to the district. Survey of more than 2/3rd of the fallow land was completed under the First Plan period, and that of the rest will be completed during the Second Plan.
(f) Co-operative Lift Irrigation.-Establishment of five lift irrigation and four dam construction societies in 1954 has facilitated the construction work of a jack-well and inlet pipe-line. Works under Minor Irrigation scheme is carried on in this district on a considerable scale.
POWER PROJECTS.
Power Projects.-Two schemes viz., Radhanagari Hydro-Electric Project and Emergency Irrigation and City Concession Scheme completed at the end of the first Plan, provide an assured water supply for irrigation of sugarcane and rubby crops, and generate power which is utilised in lifting water for irrigation and running minor industries. A construction of a dam on Varna river for water supply has been concieved in the Second Plan. This will irrigate 7,500 acres of land.
INDUSTRIES AND MINING.
Industries and Mining.-In order to foster the development of Small-scale and Cottage Industries, Government has organised institutions, like Industrial Co-operatives and Bombay Industrial Board which furnish rural artisan with the technical education, advice and guidance on different aspects on the one hand and give finance for the installation of a small modern machine and improved equipment on the other. At the end of the First Plan 97 Industrial Co-operative Societies were formed, prominent among them being hand-loom, bee-keeping oil extraction and tanning. 179 new co-operative societies will be started during the Second Plan and a grant-in-aid to the tune of Rs. 6.59 lakhs will be given to them. Besides Rs. 650 lakhs will be distributed under the rules of State aid to Industries. Bombay Industries Board proposes to start the following Industries during Second Plan:-
(1) Power-loom.
(2) Tanning.
(3) Umbrella Making.
TRANSPORT AND COMMUNICATIONS.
Transport and Communications.-The need for good roads in Kolhapur district is of utmost importance due to three reasons, viz., (a) Roads emanating from Kolhapur connect Konkan with ghats, (b) There is no railway in Konkan region and (c) During rainy-season coastal traffic practically disappears
and when Bangalore-Poona road is the only means of communication between these two regions. The development programmes completed under the First Plan are:-
(i) Modernisation of (Bangalore-Poona Road), National Highways by black-topping the road surface with premia chips.
(ii) Improvement of the State Highways.
(iii) Construction of Bridges on five rivers was undertaken in the First Plan and will be completed in the Second Plan. New Roads of a length of 130 miles are to be constructed in the Second Plan.
(iv) Construction of approach roads in order to join small villages to the main roads, is also to be undertaken.
RURAL DEVELOPMENT.
Rural Development.-A co-ordinated scheme of rural development contemplates; better housing, labour and social welfare, local development schemes and development of local bodies like Village Panchayats. This programme has been divided under different heads and separate institutions have been created to look after them. District Development Boards holds a large fund to be distributed for the uplift of agriculture, public health and sanitation, education, cottage industries, etc.
Health.
Health.-Schemes are also devised to provide people with increased facilities for medical aid, prevention of communicable diseases, and measures are adopted to improve sanitary and hygenic condition, water supply. Facilities in training of medical personnel are also provided for.
Sugarcane cultivation.
Sugarcane cultivation.-An ample supply of canal water provides a good scope for the cultivation of sugarcane in this district. In Second Plan period, one more factory will be added to two co-operative sugar factories established during 1951-55.
Fishery.
Fishery.-With a view to provide people and Gram- panchayats with an additional source of income and to augment the supply of fish in the Kolhapur district, scheme has been undertaken since 1951. The fry of local type called "Tambeer" were caught and fattened scientifically in twelve tanks which resulted in 1,95,670 lbs. of additional fish in the First Plan. Remoteness from the sea, however restricts the growth of this business beyond certain limits. The Second Plan contemplates:-
(a) Fattening of fry of select varieties of fish in fresh water
tanks.
(b) Stimulate the growth of rapidly growing varieties of
carp-fry.
(c) Provision of preservation of fish during the period
extending their catch to marketing.
RURAL DEVELOPMENT.
Co-operation, Warehousing and Marketing.-Co-operative schemes under the Plans relate mostly to the rural development which include co-operative creameries and milk supply unions, Backward class housing societies, co-operative farming societies etc Under the Second Plan number of co-operative societies will be established to help farming, fishery, sugarcane producing, etc. on co-operative basis.
Warehousing.
Warehousing.-This scheme under the Second Plan will enable farmers to store their produce, and sell it only when it is profitable to do so. Regulated markets and co-operative marketing societies will also help removing the mal-practices and underhand dealings.
Community Development.
Community Development.-A Community Development project was undertaken in 1952 in three blocks, viz., Shirol, Bhudargad and Karvir-Panhala. Other schemes such as N. E. S., Sarvodaya scheme and Grampanchayat Vikas Scheme are meant to foster both cultural and material development of villages.
Welfare of Backward Class.
Welfare of Backward Class.-The programme for the socio- economic development of the backward class community includes, formation of co-operative housing societies, allotment of fallow lands for cultivation and extension of such facilities as require in the process of agriculture, etc.
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