The document discusses various factors that influence the location of industries such as availability of raw materials, energy sources, labor, transportation costs, climate, government policies, and infrastructure. It outlines different types of incentives provided by state governments to promote industrialization, including subsidies, tax exemptions, low interest loans, and concessions on electricity tariffs. The document also differentiates incentives based on the level of development of the industrial area.

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

16.  Natural factors
 Infrastructures
 Historical accidents

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

23. 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