Employment generation and potential, Scope of future Industrialization of Himachal Pradesh

Employment generation and potential, Scope of future Industrialization of Himachal Pradesh

Industries in himachal pradesh

Micro and small enterprises

At the time of independence, Himachal Pradesh was predominantly an agrarian economy. Almost all other items of common use were imported. During the nineties, the growth rate remained more or less stable. The decade showed an average annual growth rate of 5.7 percent, which is at par with the national level. The pace of industrial development has picked up after the Grant of special package of incentive by Central govt.

district Kangra which accounted for 23.07% of the total units followed by district Solan and Mandi which accounted for 13.35% and 10.14% respectively of the total registered units. But the growths of registered industries in the state during the last three years have been recorded more in district Solan followed by district Sirmour and Una respectively.

Maximum No of units registered with the state industries department after the special package of incentives were in the unclassified product group (others) followed by food processing industries and then mechanical engg., electrical, packaging, electronics, pharmaceuticals, plastic & chemicals, footwear & automobiles etc., while this trend have been changed after the change in the definition of industries under the MSMED Act.

In terms of investment maximum amount of investment was made in the product group of Chemical & Allied Products followed by mechanical and electrical & electronic products while this trend has also been changed after the enhancement of investment limit for micro, small & medium enterprises under the MSMED Act, as a result of which chemical and mechanical products which were earlier in the category of medium enterprises due to the large investment involved have came under the preview of small scale sector by occupying the first, second and third position. Further considerable numbers of chemical, mechanical and electrical & electronics industries have come up in the State after the implementation of industrial package given by the Central Government to the State.

Large and medium scale enterprises

Industrial progress is one of the most important indicators of the economic development of a region. The industrial development, in turn, largely depends, on the large and medium scale industry due to its large employment potential, higher levels of industrial efficiency and ancillary spin off.

Industrialization in Himachal Pradesh, where there are severe topographical, geographical and socio-economic constraints, largely depends on infrastructure development. With the gradual increase in investment in infrastructural facilities, through successive five year plans and formulation of a well defined industrial policy, Himachal Pradesh has been able to offset the location disadvantages to some extent. As a result considerable numbers of small, medium and large scale units are coming up in the state. As on 31.12.2014, 502 Medium & Large Scale enterprises have been reported in Himachal Pradesh with an investment of 11300.62 Crores and providing employment to 60794 persons.

To provide services and facilities to the existing and prospective entrepreneurs. District industries Centers (DIC’s) have been functioning in all districts of the state. Besides, 5 Single Window Clearance Agencies have been setup in industrial areas of Parwanoo, Baddi, Paonta Sahib, Kala Amb & Golthai which provide services and facilities required by the industries under the single roof. With a view to provide umbrella support to existing and new ventures, the state government has set up a State Level Single Window Clearance and Monitoring Authority (SLSWC&MA).

At present the state has about 41 industrial areas established at Bilaspur, Gwalthai, Garnota, Hatli, Hamirpur, Nadaun, Nagrota Bagwan, Sansarpur Terrace, Nagri, Dhaliara, Bain Attarian, Badhal, Raja Ka-Bag, Nargala Jawali, Shamshi, Reckong Peo, Sauli Khad (Mandi), Ratti, Bhambla, Maigal, Shogi, Maindli, Jais, Jubber Hatti, Paonta Sahib, Kala Amb, Baddi, Barotiwala , Chambaghat, EPIP Baddi(Phase I&II), Banalgi, Mamlig, Katha Bhatoli, Mehatpur , Amb, Tahliwala, Gagret, Jeetpur Bheri and Basal.

Besides this 15 industrial estate have been developed with the infrastructure facilities at Sultanpur, Parel, Shivenagari (Holi), Kangra, Dhera , Jawali, keylong, Saigloo, Pali, Pandranu, Raighat, Sunda Bhonda, Parwanoo, Chambaghat and Dharmpur. In addition to this project of an industrial Growth Center is being implemented by the state Govt. with the assistance of Central Government at Sansarpur Terrace Ph.-I, Bain Attarian, Phase-II, Raja- Ka – Bag, Phase-III, Gwalthai Ph.IV and Banalgi Ph. V. To attract investment in the state and to ensure easy availability of land to the prospective entrepreneurs in various parts of the state, the department of industries has constituted a land Bank comprising of government and private land which are available for setting up industries. The department is providing escort and facilitation services in case the entrepreneurs are willing to purchase private land.

Tourism in HP has been recognized as one of the most important sectors of the economy. It is being realized as a major engine of growth for future. Himachal Pradesh is endowed with all the basic resources necessary for thriving tourism activity, geographical and cultural diversity, clean monuments and the friendly and hospitable people.

Tourism Industry in Himachal Pradesh has been given very high priority and the Govt. has developed an appropriate infrastructure for its development which includes provision of public utility services, roads, communication, network, airport, transport, facilities of water supply and civic amenities etc.

The department has a proposal for setting up of seven ropeways in Bhuntar to Bijli Mahadev (Kullu), Palchan to Rohtang (Manali), Neugal (Palampur), Shahtalai to Deotsidh (Bilaspur), Khayara to Triund (Kangra), Anadpur Sahib to Naina Devi (Bilaspur) & Jai to Adi Himani Chamunda (Kangra) location in the State under PPP mode on Build, Operate & Transfer basis.

Employment

Himachal Pradesh is a hill State. Agriculture and horticulture are the mainstay of Himachal economy, as 71% of people are engaged in it. The State has also been gifted with vast natural resources and availability of cheap hydro electric power. Its priority Sectors are agro processing, Hydro- Electric Power, Tourism & Industry. Keeping in view the importance of industrialization and to attract industrial investment in the State, Govt. of H.P. has announced Industrial Policy in year 2004. Industrial Areas have been developed in Baddi, Barotiwala and Parwanoo in Solan District, Mehatpur, Tahliwala and Amb in Una District, Kala Amb & Paonta Sahib in Sirmaur District and Golthai in Bilaspur District. Over 90% of Industrial investment in Medium and Large Scale Industries has been implemented in these locations. Due to incentives and relaxation announced to investors, new industries are being set up and Employment opportunities in Private Sector are increasing.

Generation of Employment Opportunities for local people, especially the educated, skilled and technical youth is a major objective of encouraging industrialization in the State. Therefore, the incentives, concessions provided to industries under this policy are only justified if it contributes in achieving this objective. Keeping in view this fact, Government of Himachal Pradesh is trying to ensure 70% employment to Himachalis in Hydro Power Projects and Industrial Units set up in the State.

Lack of regular employment is also linked with backwardness of region. H.P. being an agricultural State, has high proportion of self-employed workers alongwith high proportion of casual workers and most of them are engaged in subsistence agriculture, leading to low levels of living. As per the results of the National Sample Survey conducted in 1999-2000, in India about 7% of the total workforce is employed in the formal or organized sector (all public sector and all non-agriculture establishments in private sector with 10 or more workers) while remaining 93% work in the informal or unorganized sector. The size of Organized Sector employment is estimated through The Employment Market Information Programme of DGE&T, Ministry of Labour & Employment. The capacity of the organized sector to absorb the additional increase in labour force, due to modernization and automation, is limited. Therefore, an overwhelming proportion of the increase in the labour force will have to be adjusted in the unorganized sector.

In view to tackle the situation over the recent years, Employment generation programmes (EGPs) have emerged as important employment policy tool in India, like other developing countries. This policy envelope includes a wide range of activities intended to increase labour demand; to increase the quality of labour supply or to improve the matching of workers and jobs. Significant economic and social benefits are expected to accrue from these measures. The major programmes that are currently in operation in India are: Mahatma Gandhi National Rural Employment Guarantee Act (MGNEREGA), Swaranjyanti Gram Swarozgar Yojna (SGSY), Swaran Jyanti Shahari Rozgar Yojna (SJSRY) and Prime Ministry’s Employment Generation Programme (PMEGP). These programmes are playing an important role to improve the livelihood of unemployed persons of different categories. But, out of these programmes MGNEREGA has addressed the problem of overall rural unemployment in India.

 

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