Upload
saurabh-prasad
View
84
Download
0
Tags:
Embed Size (px)
Citation preview
Transport Cost Market Energy Labour Climate Power subsidy Government strategies Area External economies
Electricity duty exemption
Concession to new industry
Concessional tariffs Power intensive
Industry Incentives for project
report Land Water supply & Power
Factors Affecting Location Of The Firm
Raw material oriented Industries will be closed to sources of supplyFor e.g. Tata Steel
Depends upon type of raw material◦Perishable For e.g. Fruit Canning industries
◦Non perishable For e.g. Pharmaceutical Industries
Transport Cost
Market
Industries tends to be near their market
Industries of perishable products
Size of market is measured by its potential sales
Labour 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
Plays very important role.
Some industries require dry, some require humid.
Cotton requires humid conditions.
Textile industries require moist climate.
Climate
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
Power Subsidy
Government Strategy
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
Steps taken State Industrial Development corporation
Identify backward industrial areas
Offer a package of incentives
Give notifications bout such incentives
Government Strategy
Areas Divided area into –
a) Well Developedb) Nearly developingc) Developing d) Underdeveloped e) Undeveloped
General type of incentives to industries
Especial incentives or concession given in addition
Special incentives :a) Cash subsidiesb) Sales taxes exemptionsc) 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
Areas
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
Sales Tax Exemption
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
Sales Tax Exemption
External Economics External economics are those which accrue to firms
as a result of the expansion and concentration
Availability of RM, tools, machi. & Transportation cost
Electricity Duty Exemption
On power purchased for 5 year
Concession for small scale Industries
Substantial expansion are also exempted
Concessional tariff of 90% for 1st 5 year
Not applicable for expansion or extension
Commence taking the supply on or after 1stNov. 1978.
Concession To New Industries
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
Power Intensive Industry
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
Financial Incentives
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
Land
Water Suppy And Power 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