Managerialeconomicsfinalcopy 110212013255-phpapp01


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Managerial Economics

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Managerialeconomicsfinalcopy 110212013255-phpapp01

  1. 1.  Transport Cost  Electricity duty Market exemption Energy  Concession to new Labour industry Climate  Concessional tariffs Power subsidy  Power intensive Government strategies Industry  Incentives for project Area report External economies  Land  Water supply & Power
  2. 2.  Raw material oriented Industries will be closed to sources of supply For e.g. Tata Steel Depends upon type of raw material ◦ Perishable For e.g. Fruit Canning industries ◦ Non perishable For e.g. Pharmaceutical Industries
  3. 3.  Industries tends to be near their market Industries of perishable products Size of market is measured by its potential sales
  4. 4.  Source of energy a) Coal Fields b) Rivers Advancement in technology
  5. 5.  Most important factor of production which influence the location of an industry Capital-intensive industries and Labour-intensive Industries Three types of labour – Skilled, Semi-skilled and Unskilled
  6. 6.  Plays very important role. Some industries require dry, some require humid. Cotton requires humid conditions. Textile industries require moist climate.
  7. 7.  Granted to small scale units on power consumption  The quantum admissible is difference between the actual rate per unit and1. 3 paise/unit to max. 12 paise/unit if population is upto 20,0002. 6 paise/unit to max. 9 paise/unit if population is 20,000 to 1,00,0003. 9 paise/unit to max. 16 paise/unit if population is above 1,00,000
  8. 8.  Earlier conditions: Industries were set up as per the wish of entrepreneurs Results: congestion of industries, migration of labor, Problems of housing ,soaring prices , awkward growth and regional imbalance etc
  9. 9.  Steps taken State Industrial Development corporation  Identify backward industrial areas  Offer a package of incentives  Give notifications bout such incentives
  10. 10.  Divided area into – a) Well Developed b) Nearly developing c) Developing d) Underdeveloped e) Undeveloped General type of incentives to industries Especial incentives or concession given in addition
  11. 11. Areas Special incentives : a) Cash subsidies b) Sales taxes exemptions c) Interest-free sales tax loans d) Power tariff concession etc Cash subsidies will be equivalent to fixed capital investment in addition to 15% cash subsidiary from central government
  12. 12.  Sales tax exemption is given to small scale industries Sales tax exemption on purchase of machineries, raw materials, process materials etc. For example Gujarat government has set up following criteria-a) Start the production on or after 11th November, 1977b) Expansion , diversification or modernization of any industry
  13. 13.  14 industries are exempted like flour mill, rice mill, laundry, tailoring, photographing studio, preparing farsan, khakra, papad etc. Units run by government are exempted from the subsidies
  14. 14.  External economics are those which accrue to firms as a result of the expansion and concentration Availability of RM, tools, machi. & Transportation cost
  15. 15.  Natural factors Infrastructures Historical accidents
  16. 16.  On power purchased for 5 year Concession for small scale Industries Substantial expansion are also exempted
  17. 17.  Concessional tariff of 90% for 1st 5 year Not applicable for expansion or extension Commence taking the supply on or after 1stNov. 1978.
  18. 18.  Register a contract demand of 2500 KVA or more Annual operational load factor should be 80% or above Examine request by the Gujarat Electricity Board The cost of electricity should be 25% or more of the cost of the manufacture of the particular product
  19. 19.  If capital exceeds Rs 50 lakhs then subsidy offered is 50% on project report or feasibility study otherwise 80%Infra Structural Facilities State Government provides land and other basic facilities through Industrial Development Corporations this helps prospective entrepreneurs
  20. 20.  Most Basic requirement for any Industries Estates industrial sheds Entrepreneur to construct building takes lot of time Implementation of project get delayed Industrial Estate with readymade design It offered at very moderate rate of interest or easy hire- purchase scheme
  21. 21.  Prominent factors in establishing any industrial unit Industrial development corporation supported by state government and central government assist for availability of these factors Sources of water supply and power Water supply and power are challenges before industries. Checking water pollution and encouraging use of renewable energy are possible solutions
  22. 22. Presented By Mrudula Gawde Chaitali Patil Kunal Ghosh M Farhan Chaudhary  Ramprakash Gupta Hrishikesh Chumble  Bowsmika Vadlakonda Milind Naik  Ram PanchalRohit Wadge  Abhinav Dubey