UTTAR PRADESH. Integrated Handlooms Development Scheme

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1 UTTAR PRADESH Integrated Handlooms Development Scheme The schemes are the Deen Dayal Hathkargha Protsahan Yojana, the Integrated Handlooms Training Project, the Work shed cum Housing Scheme and the Integrated Handlooms Cluster Development Scheme. The implementation of the scheme will benefit the weavers in developing and diversifying new designs and products, their skill up gradation of looms, providing a suitable workplace, with market support, thereby improving their earnings and socio economic conditions. The scheme will be implemented for a period of five years beginning from and up to Marketing and Export Promotion Scheme will have two components marketing promotion and handlooms export promotion. Marketing promotion component includes organising of exhibitions, events and craft melas; setting up of urban haats and marketing complexes; publicity and awareness; geographical indication, handlooms marketing complex, Janpath, New Delhi and handloom mark. Handlooms export promotion includes export project, international fairs and exhibitions, setting up of design studios and miscellaneous promotion events/activities. With the assistance under the scheme, it is expected that the marketing promotion component will benefit more than 27 lakh handloom weavers and increase their sales of handlooms products in the domestic market. Further, the handlooms export promotion component will assist weavers in product diversification and the development of exportable products and give them exposure to international markets. Central Sector Scheme, Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization. The revised scheme will help in expanding marketing / post harvest infrastructure facilities in the country by inducing private / public and cooperative sector investment and will also help in improving the efficiency of existing infrastructure with the State Agencies Specialised Parks Name Export Promotion Industrial Park Export Promotion Industrial Park Export Processing Zone Leather Park Agro Park Agro Park Software Technology Park Software Technology Park Tata Nagri Industrial Township Tronica City Industrial Township Location Greater Noida Agra Noida Kanpur Barabanki Varanasi Kanpur Noida Aligarh Loni 1

2 New Integrated Kanpur Industrial Development Authority Apparel Park Kanpur Gaziabad These include exemption of entry tax on sugar, reimbursement of administrative charges and trade tax on molasses. Further, exemption from stamp duty and land registration fee, exemption and reimbursement of purchase tax on sugarcane, reimbursement of expenditure on transport of sugarcane and sugar are also provided. Details of State Level Incentives for Industries Category Now Investment Existing Units Capital Investment Subsidy Interest Subsidy Land Subsidy Registration Patents and other IPR Power Subsidy Other 10% for SSI units subject to a celling of US $ 15% for women and SC/ST entrepreneurs subject to a celling of US $ 17,400 Special Inventive package for large units with investment of US $ 11.6 million or more Investment Subsidy for 10% (up to US $ 46,500) for 100% 5% for SSI units for 5 years subject to a ceiling of US $ 5,800 p.a Concessional rate on land in industrial areas and estates in industrially backward districts Subsidy equivalent to trade tax paid on raw materials Exempted from electricity duty for 10 years 20% rebate (up to 5 years) on electricity bills for notified industrial estates and industries Exemption from entry tax, interest free loans for 15 years for pioneer units. Concession on trade tax, tax free purchase of inputs, cost of transportation, octroi rebate, special incentives for NRIs, for machinery in SSI units subject to a celling of US $ 5% for SSI units for 5 years subject to a ceiling of US $ 1,200 p.a Reimbursement of 50% expenditure (ceiling of US$ 11,600) For rehabilitation of sick units, minimum demand charges for the period of their closure will not be charged Deferment of Luxury in thrust areas for 5 years 2

3 Single Table System A system has been introduced in the State to facilitate the units for settlement at a single place. The scheme is very helpful for the disposal of various applications of entrepreneurs from various department relating to approvals, sanctions, licences, etc. This scheme is operative through DICs in the districts and proper disposal of various matters at one place as per time schedule. The outlay of Rs Lakh for 70 Rs. 30,000/ per district is being proposed for the year State Export Award Scheme 1. To encourage & honor outstanding export performance in various sectors, the State Government as initiated State Award in seventeen categories. For the year the approved outlay was Rs5.00 lakh. A total amount of Rs Lakh would be required for the financial year for awarding 49 exporters of the state in different categories for their excellence export performance. Market Development Assistance Scheme 2. To promote export from the State, the State Government is providing financial assistance to S.S.I exporters, which are registered with EPB and Directorate of Industries, U.P in the following four categories. (a) (b) (c) (d) Foreign fair and exhibition: Assistance to SSI exporting units for stall charges 60% upto maximum Rs. 60,000/ per year and one person per unit shall be allowed assistance in air fare 50% by economy class upto maximum Rs / per year. Publicity, advertisement work, development of web site etc: Assistance to SSI exporters units 60% of the total expenses upto maximum Rs. 50,000/ Free trade to foreign buyer: SSI exporting units are entitled to get financial assistance 75% of the expenses on air freight /courier for sending free trade samples to foreign buyers upto maximum Rs. 25,000/ per year. Facility for obtaining TSO 9000/BIS 14000: SSI exporting units are entitled to get financial assistance 50% of the total expenditure upto a maximum of Rs. 50,000/ per year. State Capital subsidy scheme 3. The districts of the Eastern and Bundelkhand Region of the state do not have adequate infrastructural facilities and industrial environment, due to which this region of the 3

4 state is industrially backward. As a result of this, there is a very slow rate of establishment of new industrial units in these districts which requires acceleration with the help of some assistance. In view of this, state capital subsidy scheme is being proposed in these districts so as to attract more capital investment. The implementation of the scheme will certainly result in establishment of more new industrial units which will pave the way for employment generation while boosting up the economy of the state. 10% of the fixed investment with maximum ceiling of Rs lakh will be admissible. 5% additional subsidy with maximum ceiling of Rs. 7.5 lakh will be admissible to SC/ST / Women Entrepreneurs. An Outlay of Rs lakh is proposed for the year Interest Subsidy Scheme 4 The application of W.T.O. provisions and regulations would further add to the challenges to the S.S.I. Sector from multinational as well as from large domestic players. Moreover, the domestic rate of interest for SSI units is much higher as compared to the international level. The high rate of interest not only affects investment in the State adversely, it also results in SSI units getting less competitive. 5. With a view to provide relief to SSI units on this front, interest subsidy scheme is being introduced. Interest 5% against the loans advanced by Nationalised banks / Financial Institutions for fixed assets for a period of 5 years with a maximum limit of Rs. 50,000/ per unit per year is proposed. An Outlay of Rs lakh is proposed for the year Catalytic Development Scheme 6. Central Silk Board has facilitated a comprehensive programme namely Catalytic Development Programme and has issued guidelines to implement different micro programmes numerated under the project. The total outlay of the scheme for the year is Rs lakh (State Share.) Marketing Development Assistance 7. Marketing has been considered to be the most complicated problem of Handloom Sector. In order to over come this problem the government of India has been implementing Marketing Development Assistance Scheme. This is being implemented on 50:50 matching financial assistance being provided by central & state Govt. This scheme envisages providing fixed amount to handloom agencies e.g. U.P. Handloom Corporation. UPICA, U.P. EXPORT Corporation, Apex organization as well as primary handloom co operative societies on the basis of maximum 6% annual turn over during last three years. For the clearance of old and new claims of agencies. An outlay of Rs Lakh has been proposed for state share for

5 Assistance for Development of Handloom Product Export 8. Marketing activities actually need to be properly diversified. During past few years handloom sector has shown vast export potential. The precious foreign exchange can be easily earned through the handloom product of the weavers. An outlay of Rs lakh has been proposed for the year Under this scheme dress material, Kushan cloth, Curtain cloth and Sarees are exported for Muradabad, Kanpur, Varanasi, Mau and from U.P. handloom Corporation Ltd. The assistance for development of sampling selection of designers is to be provided so that the exporters may be encouraged. Project Package Scheme 9. Commenced in the year for providing financial assistance to the weavers i.e. S.C., S.T., Women and minorities. community or community belonging to people below poverty line to develop social and economic status This is being implemented on 50:50 matching basis by central and state government.this scheme though has been dropped, an outlay of Rs lakhs is proposed for the year for clearing the remaining installments. Thrift Fund Scheme 10. Under the Thrift Fund Scheme, handloom weavers were covered on the pattern of provident fund scheme launched in as a welfare measure P.P.F. account of the weavers are open in post office, Under this scheme the maximum annual contribution is Rs out of which Rs is provided by Central and State Govt. together and remaining amount of Rs is borne by the weavers themselves. An outlay of Rs lakhs has been proposed for Development of Powerloom 11. Powerloom sector has a significant position in the economic condition of the state and is emerging as the Pioneer sector in the textile industry. The powerloom sector is producing varieties of cloth such as cotton dhoti, saree, sheeting lungi, shirtings, grey chadra, drill canvas, dusooti bedsheet, filter cloth noncotton silk saree, towels and twelling clothes. For the development of the powerloom weavers training program will be launched and about 500 persons will be benefited. This is the district sector scheme and outlay is to be allotted according to the demand of the district. U.P. Industrial and Service sector Policy, 2004 has been introduced for promoting the small, medium and large industries and Khadi and Agro based industries under which all out efforts are being initiated for overall improvement of industrialisation of the State. As per the proposed strategy envisaged in the new Policy, following points deserve special mention: 5

6 to encourage private participation in industrial development. to give attention to the development of small village and cottage industries. to promote exports. to provide better law and order situation and secured industrial climate. creation of sensitive and responsive administrative machinery in the industries department for industrial growth to promote service sector. special incentive packages for industries. creation of conducive climate for industrial development steps to be taken to attract new investment in the industrial sector Vis à vis converting sick and unproductive industrial units into profit generating ones In the Agro sector, the State Government has established 4 Agri export zones out of which 2 for Mango, one for potato and one for basmati rice has been approved by the Government of India. Some development Zones for shahad, banana, awla and menthe has also been notified Agro Park Projects: 12. UPSIDC is developing Agro Parks at Kursi Road, in district Barabanki and at village Karkhiyaon, in district Varanasi with the financial assistance of Ministry of Food Processing Industries, GOI, to promote the agro processing industries in the state. With the establishment of these parks, new opportunities for investment in agro processing and employment would be available. The development work in both the Agro Parks is in progress. There is a provision of grant of Rs. 400 lakhs for each park under the Food Park Scheme of the Ministry of Food Processing Industries, Govt. of India. This grant is provided for the establishment of common infrastructure facilities e.g. Modern cold Storage, Quality Control Lab, Water supply and power supply etc. in the Agro Parks. Out of which, MFPI has also provided a grant of Rs.200 Lakhs each for Agro Park Barabanki and Agro Park Varanasi. The second instalment of grant of Rs lakhs for Agro Park, Barabanki has also been released by the Ministry of Food Processing Industries, Govt. of India. U.P. Govt. has also sanctioned grant of Rs crore for each of the Agro park. An Outlay for Rs lakh is proposed for the financial year for the development of Agro Park Projects. Development of Growth Centres The Corporation is implementing 5 growth centers at Jhansi, Shahjahanpur, Moradabad, Jainpur(Kanpur Dehat) and Dibiyapur (Oraiya). 6

7 Special Economic Zones (SEZ) As per policy, these SEZs shall be developed in public /private /joint sector /State Govts. over a minimum area of 2,500 acres equipped with international level facilities. Products exported from these SEZs shall not attract any duty. Successful implementation of these SEZs shall help the States in industrial development as well as create employment opportunities. Govt. of U.P. on had announced policy to develop three SEZs at Kanpur, Bhadohi (Varanasi) and Taj area (Noida Greater Noida Agra belt). This policy covers incentives and issues related to levy of various duties, approvals environment, power, taxes labour laws and utilities. As per this policy, these SEZs shall work as autonomous bodies. A committee under chairmanship of chief Secretary shall monitor their successful promotion, development and management. State Govt. shall select promoter for development of these SEZs. Consultants shall be selected for preparation of project reports and help the State Govt. in selection of such promoter. State Govt. shall also constitute a committee for assistance in selection of the consultants. To provide for closer interaction with manufacturers and exporters, and a stronger support system for identified export sectors, ten Product Promotion Groups comprising of exporters, manufacturers and experts will be established. The ten Groups will be as follows: Handicrafts Promotion Group Carpets Promotion Group Leather Goods Promotion Group Agro and Processed Foods Products Promotion Group Textiles and Readymade Garments Promotion Group Toys and Sports Goods Promotion Group Engineering and Hardware Promotion Group Electronics and Software Promotion Group Gems and Jewellery Promotion Group Chemicals and Herbal Products Promotion Group The Agro and Processed Foods Group will work closely with the Department of Agricultural Exports. The work of the Bureau at field level will be executed through Export Promotion Cells which will be set up in District Industries Centres at selected export production centres. The Cells will be set up at the following DICs : Jhansi; Moradabad; Aligarh; Firozabad; Rudrapur; Kanpur; Meerut; Gorakhpur; Varanasi; Agra; Lucknow; Saharanpur; Bhadohi; Noida; Bareilly. An Export Marketing Information and Servicing Centre, equipped with modern telecom facilities, will be set up in the Bureau. Surveys of international markets will be undertaken; research and trade related information will be collected ; and exporter importer supplier directories will be prepared and kept updated. 7

8 1.1 Empowered Committee : An Empowered Committee will be constituted under the chairmanship of the Chief Secretary for export related inter departmental coordination and policy formulation Board of Trade : A Board of Trade under the chairmanship of the Chief Minister, including representatives of exporters, has already been constituted as an advisory institution for export promotion at the highest level Open House Meetings : Regular meetings for solving problems will be held between exporters and concerned departments / institutions at the export centre as well as at the State level. 1.4 Market Information Service : For success in the field of exports, it is important to obtain comprehensive and up to date information about international markets. It would be difficult for each individual exporter to obtain this information. Hence a special market information service will be provided for this purpose. 1.5 Green Card : Exporting units and entrepreneurs of the State will be registered in the Export Promotion Bureau. Of the registered units, those with an annual export turnover of Rs. 20 lakhs or more will be provided a Green Cards on the basis of which it will be possible for their export import cargo to be transported to its destination without hindrance. In addition, Green Card holders will get, on priority, all facilities and concessions made admissible by the State Government 2.1. Setting up of Export Parks : Export parks will be set up for the various export products so that all the necessary infrastructure facilities are available at one place and regular monitoring is possible. Such parks are proposed to be set up, in the first instance, at NOIDA, Moradabad and Kanpur Unnao. 2.2 Trade Centres : State of the art Trade Centres equipped with all trade related facilities for display of goods, conduct of buyer seller meets etc., will be made available to desirous exporters. A Trade Centre will become operational at Noida in 1999 and subsequently at Agra. 8

9 2.3 Warehousing and Container Facilities : ICD/dry port facilities at the following export centers will be provided so that there are no difficulties in cargo storage, customs clearance and container availability : Noida Agra Rudrapur Mirzapur 3.1 Export Freight subsidy : U.P. is a land locked State. As a result, the cost of transport of export cargo to the ports affects their competitiveness adversely. In order to offset this disadvantage the State Government will extend assistance to subsidize export freight costs in respect of selected export products. (4.3.6) Organization of trade fairs, buyer seller meets : Opportunities will be provided for exhibiting export products at national/international fairs. Buyer seller meets will be organized by the Export Promotion Bureau and exporters will be provided facilities for participation in trade fairs. Special efforts will be made to explore new markets. 4. Handknotted Woollen Carpets and Durries Modernization of production processes. Design development and quality up gradation. Product diversification in accordance with changing demands in importing countries. Publicity, including presentation of correct information, and contesting of adverse publicity, on the child labour issue raised by importing countries. Establishment of a Trade Centre with integrated facilities including showrooms, near Delhi. Activating the Institute of Carpet Technology. Creation of a special trade mark as an indicator of product specialties and quality. Infrastructure development in the carpet producing centres Bhadohi, Mirzapur, Varanasi, Agra, Shahjahanpur including modern telecom facilities, uninterrupted electricity, water supply, roads, dry port etc. Yarn, Textiles and Readymade Garments Technology and skill up gradation, design development. Setting up of mechanical processing centers for textile dyeing, washing, finishing etc State of the art laboratory for quality testing. Establishment of State level branches of the NIFT,NID, etc.. 9

10 Improvement in the quality of dyes used for handloom textiles. Introduction of modern looms and improved processes. Infrastructure development in areas of weaver concentration. Quality and technology upgradation in the Kanpur hosiery industry. Supply of high quality silk yarn to weavers at Varanasi and adjoining areas. Leather and Leather Products Abolition of Mandi Cess on raw leather to be considered. Establishment of a branch of CLRI at Jajmau. Setting up of a Leather Complex with modern pollution control equipment and common facilities in the Kanpur Unnao area. Establishment of effluent treatment plants in keeping with standards in importing countries. Product development and diversification. State of the art testing laboratory for raw material and finished products as per international standards. Prototype Development Centre at Kanpur under aegis of NSIC to be established. Extension of (UNDP supported) National Leather Development Programme to expanded coverage in Agra and in Kanpur. Artware of Brass and Other Metals Technology and process upgradation. Product development and diversification. Industrial areas with integrated infrastructure facilities to be established at Moradabad and Aligarh. Showroom and other facilities at the Trade Centre at Noida. Increase in F.A.R. for exporting units and speedy clearance of building plans by the Moradabad Development Authority. Strengthening of infrastructure facilities in Moradabad and Aligarh so that impediments in the way of export production may be removed. Products of Wood Extension of facilities for wood processing. Product development and diversification. Technology and process upgradation. Design and skill development. Exploration of alternative raw materials to ʹsheeshamʹ and other protected varieties. Large scale plantation of ʹsheeshamʹ in and around Saharanpur. Creation of required infrastructure facilities. Publicity in importing countries. 10

11 Orientation of producers towards the use of environment friendly production techniques and raw materials. Glass and Ceramics Modernization of production processes. Ensuring supply of LPG to glass units in Ferozabad. Development of inexpensive, good quality packing material. Extension and strengthening of facilities being provided by the Central Glass and Ceramics Research Institute. Provision of necessary infrastructure facilities including pollution control equipment at production centres. Product development and diversification in accordance with changing demand. Ensuring regular supply of furnace oil. Agro and Processed Food Products Thrust area status will be accorded to export of agro and processed foods, horticulture and floriculture. Provision of ʹCold Chainʹ for exports of fruits and flowers. Cold storage facilities near Delhi, and at Rudrapur, Kanpur and Varanasi. Efforts will be made to attract foreign investment. A corpus fund will be created towards ʹearnest money depositsʹ for producersʹ groups to participate in global tenders. Refrigerated vehicles/ containers at reasonable rates for transportation to air ports / ports. Information regarding high quality seeds and exportable varieties. Product development and diversification. Training and support inputs for improvement of packaging. R and D facilities for production and quality control. Suitable measures to bring fallow land under cultivation of appropriate exportable varieties. Abolition of mandi levies on agro products, horticulture products and processed foods for export. Post harvest centres in areas of major export production. Special efforts for brand promotion. Setting up of Agro Export Promotion Parks at major export production centres. Technical assistance for improving the rose varieties grown near Aligarh and Etah. Engineering Goods and Hardware Provision of the necessary infrastructure facilities in export centres Aligarh, Ghaziabad, Noida, Agra, etc. Product development and diversification. Assistance in supply of high quality raw material. Modernization of production processes and techniques. Development of ʹTalanagriʹ in Aligarh as an export park. 11

12 Gems and Jewellery Provision of modern equipment, computer aided design facilities and regular training. Modern testing laboratories. Training of workers in the use of new machines and equipment. Setting up of a Gems and Jewellery Export Promotion Park near Delhi. Provision of catalogues and brochures pertaining to changing fashions and demand in importing countries. Assistance in obtaining space in the proposed Trade Centre near Delhi. Establishment of an Institute of Gems and Jewellery equipped with facilities for research, training, design development, etc. Chemicals, Pharmaceuticals and Herbal Products: Modern international standard testing laboratory. Capital goods import facilities for modern machines and equipment. Effective pollution control measures and efforts to invite private investment for setting up common or unit effluent treatment plants. Quality upgradation through the use of modern machines in case of medicines produced by small and medium enterprises. Assistance for entry into new markets for medicines, basic chemicals and cosmetics, especially herbal cosmetics. Special testing laboratories for material used in herbal cosmetics. Technological improvement and development of the natural perfume industry at Kannauj. Strengthening of the PPDC at Kannauj. Extensive publicity for natural perfumes keeping in view the growing interest in natural products in the West. Special trade mark for natural perfumes produced in the State to avoid piracy. Toys and Sports Goods Collection and dissemination of latest information among exporters. Development of new products like equipment for water sports, fitness and gymnastics. Export Promotion Park at Meerut Ghaziabad. Facilities for toy exporters in the Toy City near Delhi. Access to information on changing demand and techniques. Establishment of a specialized institute for packaging. Efforts to make available Kashmir willow wood. Efforts to attract foreign investment. Electronics and Computer Software Establishment of Electronics and Software Technology Parks at : 12

13 Noida Kanpur Agra Allahabad Lucknow Varanasi Dehradun Meerut Uninterrupted supply of quality power, satellite connectivity and other State of the artfacilities at such Technology Parks. Attracting foreign investment in the establishment of Technology Parks. Wide overseas publicity. Provision of opportunities for software professionals to establish contact with overseas clients. Uttar Pradesh Mandi Parishad has gained permission from APEDA to start running of MANGO PACK HOUSES by related Mandi Samities. Three Species of Mangoes of Uttar Pradesh named Dusshari, Chausa & Langra were launched in the International Market with the Brand name of ʺNAWABʺ. Exports Facilitation Plan: Exports Facilitation Plan for agricultural produces is under progress & in this connection Study of National & International Markets, Buyers Sellers Meets, Trade Development & Training etc are done. Agricultural Processing Units: To encourage Agricultural Processing Units in the state, those units of more than Rs. 10 Crores, shall get Exemption in Mandi Fee for 05 years. Krishak Seva Kendra: KRISHAK SEVA KENDRA in Pilibhit, Hapur, Etawah & Urai are now complete in order to make sure of the provision of Agricultural machinery, Seeds, Agricultural fertilizers & Preservatives for the farmers of Naveen Mandi Sthal. 13