2. 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
3. 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
4. Industries tends to be near their market
Industries of perishable products
Size of market is measured by its potential sales
5. Source of energy
a) Coal Fields
b) Rivers
Advancement in technology
6. 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
7. Plays very important role.
Some industries require dry, some require humid.
Cotton requires humid conditions.
Textile industries require moist climate.
8. Granted to small scale units on power consumption
The quantum admissible is difference between the actual rate
per unit and
1. 3 paise/unit to max. 12 paise/unit if population is upto
20,000
2. 6 paise/unit to max. 9 paise/unit if population is 20,000 to
1,00,000
3. 9 paise/unit to max. 16 paise/unit if population is above
1,00,000
9. 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
10. Steps taken State Industrial Development corporation
Identify backward industrial areas
Offer a package of incentives
Give notifications bout such incentives
11. 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
12. 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
13. 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, 1977
b) Expansion , diversification or modernization of any industry
14. 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
15. External economics are those which accrue to firms
as a result of the expansion and concentration
Availability of RM, tools, machi. & Transportation
cost
17. On power purchased for 5 year
Concession for small scale Industries
Substantial expansion are also exempted
18. Concessional tariff of 90% for 1st 5 year
Not applicable for expansion or extension
Commence taking the supply on or after 1stNov.
1978.
19. 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
20. 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
21. 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
22. 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