Industrial Sector- Growth and recent trends(Mains)

1. The government of Rajasthan takes several reform initiatives for improving the industrial environment of the state. The reforms are biased toward generation of maximum employment opportunities and growth of state revenue.
2. In 2019-20(Economic Survey): The sectoral contribution of the Industries sector in the total Gross state Value Added(GSVA) of the state, stands at 27.81% at current price.
   1. 
   2. From the Industrial sector, contributions of the Manufacturing and mining sector to GSVA at Current price are 9.82% and 6.62%(2019-20).
3. Rajasthan has abundant physical resources, rich mineral wealth, handicrafts, handloom and outstanding skill.
   1. These provide great opportunities for manufacturing, beneficiation, processing activities and services in the MSME sectors.
   2. Rajasthan has a strong base/area of MSMEs in Gems and Jewelry, Handicrafts, Food Processing, Auto Components, Textiles, Leather and Dimensional Stones.

Index of Industrial Production(IIP)

1. It compares the growth in the general level of industrial activities in the economy with reference to a base year(Base 2011-12).
   1. The growth of IIP in Rajasthan state has shown positive trends in recent years.
   2. The IIP series is based on three broad groups of Manufacturing, Mining and Electricity.
   3. Manufacturing sector has played a major role in the growth of the General Index.

Micro, Small and Medium Enterprises(MSME)

1. It constitutes a major segment in the economy as their contribution towards the state’s industrial production, export, employment and creation of entrepreneurship base is quite significant.

In the state, various policies measures to promote and support MSME enterprises are implemented are:

Udhyog Aadhar Memorandum(UAM) of micro, small and medium enterprisesIn this, any MSME can file a memorandum on “UAM Portal” of the Government of India for registration.

Rajasthan Micro, Small and Medium Enterprises(Facilitation of Establishment and Operation) Act, 2019The Act provides for establishment of new micro, small and medium enterprises, on the Raj Udhyog Mitra Portal.After receiving “Acknowledgement Certificate” online, the MSME units in the state are exempted from the approvals and inspections under all the laws of the Govt of Rajasthan for a period of 3 years.

Mukhyamantri Laghu Udyog Protshan Yojana(MLUPY)Provide loan upto Rupees 10 crore through financial institutionsFor establishing new enterprises in the Manufacturing, Service and trade sector andFor expansion, modernisation, diversification of existing enterprises.

Exports

1. State government analysis that the scope in the exports of goods have major thrust for economic development.
   1. Seeing this, the Government introduced various exports oriented reforms such as Incubation of Rajasthan Export Promotion Council and development of Export Promotion Parks(EPIP).
2. The top 5 export items from Rajasthan accounts for more than 50% of exports from the state.
   1. These include engineering goods, textiles, chemical and allied products, gems and jewellery and handicrafts.
3. To encourage export, the two council were formed
   1. Rajasthan Export Promotion Council(8th Nov, 2019)
   2. Rajasthan Export Promotion Coordination Council(25th Oct, 2019)

For development of exports, state introducing various export promotion initiatives such as:

State Level Exports Award SchemeThe scheme was introduced in the Industrial Policy,1994Objective: To encourage exporters of state.Provision for selection of 31 outstanding exporters in 16 categories.Under this, 1 best exporter per year is Awarded with “Lifetime Achievement Export Ratna Award ”.

Training Program on Export Promotion, Procedure and Documentation schemeThis scheme was implemented during the 12th Five year Plan. For the aspiring trader that aims to start their own business.

Ease of Doing Business(EoDB)To improve the EoDB, the state is following and implementing the yearly Business Reforms Action Plans(BRAP) of Department for Promotion of Industry and Internal Trade(DPIIT) govt of India.DPIIT issues yearly Business Reform Action for the states.DPIIT and World Bank Group assess the reform implementation and release EoDB ranking for the states.BRAP includes recommendations relating to Transparency Enablers, Issuance of Online Approvals, Rationalisation of Inspections, single window clearance system and Policy reforms.

Department responsible for the Industrial development of Rajasthan

1. Department of Industries
   1. It is the Nodal Department to promote the development of industries and handicrafts in the state and provide necessary guidance, assistance and facilities for industrial activities.
      1. Presently 36 District Industries Centres and sub-centres are working in the state for providing inputs and other facilities to the entrepreneurs.
   2. For the convenience of entrepreneurs, MSME investor Facilitation Center(MIFC) has been established in Jaipur, Ajmer, and Jodhpur to provide necessary information to entrepreneurs.
   3. To encourage investment, and for smooth functioning of existing enterprises dispute and grievance redressal mechanisms have been established in the state.
      1. 4 Micro, Small Enterprises Facilitation Council
         1. These 4 councils formed under the power conferred in the Micro, Small and Medium Enterprises Development Act, 2006.

Programmes/Schemes of Industrial Development

Industrial Entrepreneurship Memorandum(I.E.M)Proposals for establishment of large industries

PM Employment Generation Programme(PMEGP)Aim: Generate employment opportunities by promoting industrial services and commercial activities in rural and urban areas.

Industrial Promotional CampThey are organised at district and panchayat samiti levels to promote industrial development and to aware the people for establishment of Industrial units.

Leather Training IndustriesTraining was given in leather dyeing/leather based product/improved technique

Rajasthan Investment Promotion Scheme 2014

Corporate Social Responsibility(CSR)Rajasthan CSR web Portal(www.csrrajasthangov.in) is a unique interactive portal created by DoI, Govt of Rajasthan.Companies Act 2013Section 135:The companies having net worth of rupees 500 crore or more; or turnover of rupees 1,000 crore; or net profit of rupees 5 crore or more during financial year, are required to spend 2% of the average net profit of the company made during the 3 immediate preceding financial years in activities stated in schedule-(7th) pf the Act This portal is designed for identity and listing of CSR companies and CSR projects/programmes within the state.3rd “Rajasthan CSR summit-2019” organised in JaipurThe Rajasthan corporate social responsibility(CSR) authority has been set up on dated 6th Nov, 2019 to utilise the funds in the state.

Registration of Partnership Firms

Artisans Identity Card

2.  Bureau of Investment Promotion(BIP)
   1. It was the Investment Promotion Agency of Rajasthan that facilitated the investment proposals in the state.
   2. It actively seeks to bring investment opportunities in various sectors to the attention of potential investors, both domestic as well as foreign companies through activities such as
      1. Investment activities
      2. Promotional Activities
      3. Single Window Clearance system(SWCS)

3. Rajasthan State Industrial Development and Investment Corporation   Limited(RIICO)
   1. RIICO is an apex organisation engaged in fostering the growth of industrialisation.
   2. It helps in developing infrastructure and providing financial assistance to attract investment in the state.

The Key progress made by RIICO

Infrastructure DevelopmentRIICO develops industrial areas and infrastructure facilities of the industrial units

Financial AssistanceRIICO provides financial assistance to industries and other projects for industrial development.It also provides rebates and incentives for development of small, medium and large scale unitsIt also provides technical and managerial assistance/services to entrepreneurs.One of major activities of RIICO is to provide term loan assistance to various projects.

Centrally Sponsored SchemesASIDE(Assistance to State for Development of Export Infrastructure and other Allied Activities) schemeAim: Developing infrastructure facilities for export promotion with assistance of Centre Govt.Mini Growth CentreAim: Provide integrated infrastructure in rural and undeveloped areas for the small scale industry.

Development of Special Parks(RIICO)Agro Food ParksRIICO developed four Food Parks atBoranada(Jodhpur)KotaAlwarSriganganagarRIICO has planned an “Agro Food Processing Zone” at industrial area TInwari, Jodhpur.Japanese ZoneRIICO has set Japanese Zone at Neemrana Industrial Area, Alwar.Multinational companies such as Nissin, Mitsui, Daikin and Dainichi colour are operating in the industrial park.Another Japanese Zone has been established at Ghiloth Industrial Area, Alwar.Special Economic Zone(SEZs)RIICO has established 2 SEZs, Gem and Jewellery I and II, at Sitapura Industrial Area, Jaipur.Mahindra group has established Multi Product SEZ in Partnership with RIICO in Mahindra World City(Jaipur)

Innovative Schemes/Initiatives taken up by the Corporation

RIICO has decided to develop Integrated Industrial Zone(IIZ) for establishment of industries based on Refinery cum Petrochemical complex project coming up at Pachpadra, Barmer.Village Thob, RamnagarVillage Borawas Kalawa

India Stone Mart-2019The 10th edition was organised at Jaipur on 31st Jan to 3rd Feb.National and international exhibitors showcased their products and was attended by a number of foreign buyers/supplies

Global Stone Technology Forum 2019Centre for Development of Stones(CDOS) organised an International stone technology conference(8th edition) in collaboration with GLobal Stone Technology Forum(GSTF) during 19-20 Dec 2019 at Udaipur.The Forum focuses on the latest innovative technological trends in the dimensional stone sector.

For Skill development, RIICO establish training infrastructure in NCR(National Capital Region)Establishment of Japanese Institute of Manufacturing Excellence(JIM) in Japanese Zone at Neemrana, Alwar.

4. Rajasthan Small Industries Corporation Limited(RAJSICO)
   1. RAJSICO was established in June,1961, to provide assistance to small scale industries and artisans to facilitate marketing of their products.
   2. Being a commercial organisation, it strives to introduce changes in design and introduce new products with new technology, in response to the market demand.
   3. RAJSICO also provides direct benefits to the artisans through welfare schemes with the objective of uplifting and promoting the rich handicraft.
   4. RAJSICO has providing employment, both directly and indirectly to more than 10,000 persons in a year
   5. The corporation is also providing export infrastructure services to the Rajasthan exporters/importers through dry ports(Inland Container Depots) situated at Jaipur, Jodhpur, Bhilwara and Bhiwadi
   6. At present, only export/import facilities are provided from inland Container Depots(ICD), Jodhpur and Jaipur.
   7. The other functions of RAJSICO include providing marketing assistance to Small Scale Industries(SSI) products, like barbed wires, desert coolers, RCC pipes, Tents and Tarpaulin, Steel Furniture, Polythene bags, Angle Iron posts etc.

5. Rajasthan Financial Corporation(RFC)
   1. RFC was established in 1955 under the State Financial Corporations Act, 1951 with the objective of fostering financial needs for setting up of new industries, expansion and renovation of existing ones, upto rupees 20 crore.

Loan Schemes of the Corporation

General Project Loan Scheme

Scheme for Service sector

Scheme for Commercial real Estate(CRE) sector

Special Service sector Scheme

Scheme for specified class/persons i.e. SC/ST/Specially abled person/Women Entrepreneurs

Single window scheme(For tiny and SSI units having project cost upto rupees 200 lakh)

Scheme for qualified professionals

Financing Against Assets Scheme

Saral scheme

Natural Calamities scheme

Top up Loan scheme for existing borrowers of MSME

Scheme for financing Solar Power Project

Scheme for financing against land allotted by RIICO for Industrial units, Hotels and Hospitals

Special Loan Scheme for Marble Processing

Yuva Udyamita Protsahan Yojana(YUPY)

Good Borrowers Loan scheme of Corporation

Short term Loan Scheme(STL)

Working Capital Loan Scheme

Special purpose WCTL Scheme

WCTL to non-assisted units Scheme

Gold Card Scheme

Platinum Card Scheme

Units promoted by Good Borrowers Scheme

Flexi Loan Scheme

6. Delhi-Mumbai Industrial Corridor(DMIC)
   1. Freight corridor between Dadri(UP) and JawaharLal Nehru Port (Mumbai) is constructed which covers a total length of 1,483km.
   2. About 39% of the Corridor passes through Rajasthan.
   3. The Corridor is India’s most ambitious infrastructure programme aiming to develop new industrial cities as Smart Cities and Converging next generation technologies across infrastructure sectors.
      1. Khushkhera-Bhiwadi-Neemrana Investment Region
      2. Jodhpur-Pali-Marwar Industrial Area(JPMIA)
   4. Rajasthan Special Investment Regions(SIR) Act, 2016
      1. To promote and monitor the development of SIR’s, a state level Rajasthan special Investment Regions Board” has constituted.
      2. SIR “Bhiwadi Integrated Township”(BIT), comprising 363 villages of Tehsil Behror, Mundawar, Neemrana, Kotkasim and Tijara of Alwar and “Bhiwadi Integrated Development Authority”(BIDA) constituted.

7. Khadi and Village Industries (KVI)
   1. “Khadi and Village Industries Board” was established to provide:
      1. Employment to artisans of the unorganised sector, 
      2. Help in production of high quality products, 
      3. Training to artisans, and 
      4. Inculcate the feeling of self-reliance.

Scheme of Khadi and Village Industries

Prime Minister Employment Generation Programme(PMEGP)PMEGP is conducted by the Khadi and Village Industries Board, through the Khadi and Village Industries Commission, GOI.

TrainingBoard provides training to rural and urban youth at ist training centres Pushkar(Ajmer), Sanganer(Jaipur) and Mount Abu(Sirohi).

RebateA 5% rebate was allowed by the State government on Khadi garments on the occasion of the 150th birth anniversary of the Father of Nation, Mahatma Gandhi.

8. Factories and Boilers
   1. The main function of Department is to enforce the provision of
      1. Factories Act, 1948
      2. Boilers Act, 1923
      3. Payment of Wages Act, 1936
      4. Safety provision of Building and other construction workers(Regulation of employment and condition of service) Act, 1996.
   2. Department launched the website www.rajfab.nic.in to guide the new entrepreneurs regarding important provisions of the Act enforced by the department and developed a web application for registration, renewal and map approval granted under the above Act in time.
   3. Industrial Hygiene Laboratory has been established for ensuring a safe and healthy working environment and to check the occupational diseases in the factories.

9. Mining Sector

Schemes/Approach

Intensive Mineral Survey and Prospecting Scheme

Mining Approach road under District Mineral Foundation Trust(DMFT)

2. Rajasthan State Mines and Minerals Limited(RSMML)
   1. RSMML, under the provision of Companies Act, 1956, was established on 30th Oct 1974 to explore and excavate scientifically the minerals available in the state.
   2. RSMML is primarily engaged in mining and marketing of industrial minerals in the state.
   3. The main objective of the company is to achieve cost effective technological innovations in the mining of minerals and to diversify into mineral-based downstream projects.
   4. The company has a long-term low Silica Limestone supply agreement with Steel Authority of India.

10. Oil and Natural Gas
    1. India is the third largest consumer of crude oil in the world, after the US and China.
       1. The country accounts for about 5% of total world oil consumption.
       2. India produces about 16% of total domestic consumption. Rest 84% consumption requirements are met by import.
    2. Rajasthan is a significant producer of crude oil in India.
       1. The state contributes about 22-23% to total crude oil production in India and is the 2nd largest producer after Bombay High which contributes about 40%.
    3. Petroleum Producing area in the state is spread over an area of about 1.5 lakh sq.Km(14 districts) under 4 Petroliferous Basins.
       1. Barmer-Sanchore Basin
          1. District: Barmer, Jalore
       2. Jaisalmer Basin
          1. District: Jaisalmer
       3. Bikaner-nagaur Basin
          1. District: Bikaner, Nagaur, Sri Ganganagar, Hanumangarh, Churu
       4. Vindhyan Basin
          1. District: Kota, Baran, Bundi, Jhalawar, part of Bhilwara and Chittorgarh
    4. Rajasthan Refinery Project
       1. 9MMTPA(Million Metric Tonnes Per Annum) Refinery cum Petrochemical complex at Pachpadra, Barmer.
       2. The Joint Venture project between Hindustan Petroleum Corporation Limited(HPCL) and Government of Rajasthan with an equity participation of 74& and 26% respectively.
       3. Products: Fuels and Petrochemicals

11. Labour
    1. The Department prepares a cordial industrial environment to maintain:
       1. High industrial production
       2. Timely payment of wages and allowances to the workers and 
       3. Protect their interests according to the terms and conditions of employment through enforcement of various labour laws.

Schemes implemented by Building and Other Construction Workers(BOCW) welfare Board for Construction worker in Industries

Nirman Shramik Shiksha Kaushal Vikas Yojana

Nirman Shramik Sulabhya Avaas Yojana

Nirman Shramik Jeevan Bhavishya Suraksha Yojana

Maternity Assistance Scheme(Prasuti Sahayata Yojana)

Shubh Shakti Yojana

Scheme of Assistance in case of normal or accidental death/injury of construction worker

Scheme for Silicosis affected workers

Nirman Shramik Auzar/Toolkit Yojana

12. Employment Department
    1. The department organises Rozgar Sahayta Shivirs to facilitate employment/self-employment/training opportunities to the candidates.
    2. Rajasthan Unemployment Allowance Scheme(Mukhay Mantri Yuva Sambal Yojana)
       1. State govt provide an unemployment allowance worth rupees 3,000 for males and 3,500 rupees for female, transgender and specially abled persons.
       2. To the eligible unemployment youth per month for a maximum of two years or till they got employed, whichever is earlier.

13. Rajasthan Skill and Livelihoods Development corporation(RSLDC)
    1. Rajasthan Mission on Livelihood
       1. Objective: To formulate appropriate and innovative strategies for promoting and facilitating large scale livelihoods for the poor and vulnerable people of the state.

Schemes for development of skill and entrepreneurship

Employment Linked Skill Training Programme

Regular Skill Training Programme

Pandit Deen Dayal Upadhyaya Grameen Kaushalya Yojana

Pradhan Mantri Kaushal Vikas Yojana

3. Mukhya Mantri Yuva Kaushal Yojana(MMYKY)
   1. Launched on 7th Nov 2019
   2. Objective: Provide employability skills through a combination of soft skills and domain based skills to students across colleges so that after training they can avail wage or self-employment opportunities.
   3. Scheme is implemented in joint collaboration of RSLDC and College Education Department(Commissionerate of College Education, Rajasthan)