RAJASTHAN STATE INDUSTRIAL POLICY

19. SMALL, TINY AND COTTAGE SECTOR

The small, tiny and cottage sector in Rajasthan has been the principal source of industrial dispersal and employment in the manufacturing sector. With the opening up of the economy, this sector faces major challenges and requires policy support to meet them. In addition to the specific steps envisaged for technological upgradation and fiscal support, the following additional measures are proposed to strengthen the sector.

Industry Associations will be encouraged to undertake commercially viable projects, for marketing, technological upgradation, supply of raw material etc. The DICs will play a catalytic role in this process.

The Commissionerate of Industries and the DICs will devote greater attention to maintaining data banks, carrying out industrial potential surveys, holding of Industrial Promotion Campaigns, EDPs and providing escort services.

With a view to providing effective and timely services to entrepreneurs all the DICs will be computerised in a phased manner and linked with the Commissionerate of Industries.

Efforts will be made to provide viable links for Cottage and rural industries sector with sources of raw material, marketing and credit institutions.

Excellence awards for quality and productivity would be introduced in the SSI sector.

20. HANDICDRAFTS

20.1 Indian Institute of Crafts and Design (IICD) has been set up by the State Government. IICD has entered into Memoranda of Undertaking with the National Institute of Design, Ahmedabad and the National Institute of Fashion Technology, New Delhi. Its mandate is to create a new cadre of highly skilled and motivated Design-Techno Managers who can contribute towards sustaining modernisation and accelerating the growth of craft centres in the State. The Institute will offer training courses to craft persons both at its principal seat at Jaipur and outreaches in the districts. It will also provide important inputs by way of designs, technological improvements, market intelligence and product innovation.

The marketing outlets of RSIC will be extended either through opening new emporia or through franchises. RSIC has undertaken a major renovation programme of its existing retail outlets, includingk Rajasthali, Delhi.

In order to facilitate the tourism, a Handicraft-cum-Tourism Complex is being built in Jaipur by RSIC to provide a single show-window for the crafts of Rajasthan and other parts of India along with tourism related facilities e.g. travel centres, exchange counters, etc. This would enable tourists to have a complete package under one roof.

In order to make the Indian handicrafts globally competitive in quality, RSIC

is developing quality bench-marking in association with internationally experienced agencies. All Rajasthali goods would be brought under this bench-marking and RSIC would offer this facility to all handicraft exporters by promoting and marketing a "Craftmark."

21. HANDLOOM

The Handloom Sector has an edge over the power-loom and mill sectors, in its ability to produce goods commercially in small volumes, rapid switchover to new designs and creation of aesthetically appealing designs which can not be woven on power-looms. According to the latest survey completed in the year 1995-96 there are 66,000 active weaver families in Rajasthan and about 700 weavers’ cooperative societies. The principal goal of the State Government’s efforts in the Handloom Sector would be to extend the coverage of weavers and to provide them with enhanced earnings. To achieve this goal, the following policy measures are proposed to be implemented. The main plank of the development strategy for the handloom sector would be a focused approach in respect of identified high value products and clusters.

RFC in collaboration with RHDC has worked out a scheme under which financial assistance to 10,000 weavers, most of whom belong to Scheduled Caste, will be extended. Under this scheme, financial assistance shall be released in favour of RHDC on behalf of the assisted weavers for procurement of yarn and supply to weavers on a regular basis round the year. The products made by the weavers shall be lifted by RHDC after payment of wages and a share under the scheme. The backward and forward linkages will be established and would enable the weavers to remain employed round the year. The recovery of RFC’s dues shall also be regularly made by RHDC from the sale proceeds of the products made by the weavers.

Handloom products which are no longer competitive will be phased out and greater attention given to commercially viable products meant both for the domestic and foreign markets.

An intensive Human Resource Development Programme will be taken up by Rajasthan Handloom Development Corporation and the Rajasthan Rajya Bunkar Sangh.

Efforts will be made to ensure easy access to adequate credit for weavers. Availability of yarn of requisite counts at reasonable and stable prices will be facilitated.

A mechanism will be evolved to disseminate information on design and technical developments on a continuing basis.

Comprehensive marketing support and availability of welfare measures for all handloom workers would be ensured.

A systematic effort will be made to ensure that benefits of various schemes reach the weavers in an integrated manner.

The Rajasthan Handloom Development Corporation (RHDC) and the Rajasthan Rajya Bunkar Sangh Ltd. are weak and unable to play their role effectively. Hence, the State Govt. will support measures to revitalise RHDC and the Rajasthan Rajya Bunkar Sangh Limited.

The Government will make efforts to enlarge the coverage of weavers co-operative’s and provide necessary support to strengthen the viable societies.

Given the current status of this sector and the financial status of weavers, the State Govt. will provide Sales Tax exemption on hand looms and accessories purchased by weavers.

22. KHADI & VILLAGE INDUSTRIES

Rajasthan is the biggest producer of woollen Khadi in the country and ranks third in the overall Khadi production. Under Village Industries, the State’s total production is of the order of Rs.270 crores. Through these twin activities, the sector provides regular subsidiary employment to an estimated 4.25 lac people.

In the context of the recent policy initiatives relating to Khadi and Village Industries, the strategy for this Sector would have to be increasingly market-oriented. Steps will be needed to ensure commercial viability of the activities which have so far been run on ‘no profit no loss’ basis.

The Khadi and Village Industries Board (KVIB) will have to both upscale its operations and function on the lines of a Development Finance Institution. It is essential, therefore, to strengthen the Board’s managerial, technical and marketing capabilities. Special emphasis will have to be given to human resource development which would include designing of new policy for personnel, their training and orientation as well as placement.

The Khadi and Village Industries institutions will be strengthened by the Board through support in the field of management, design and credit. Training to institution personnel will be imparted to reoriented their outlook. The Khadi Institutions will be made more market and product conscious.

Steps will be taken to net work the Khadi and Village Industries Sector with National Institute of Fashion Technology, National Institute of Design, Wool Development Board, Jodhpur and Wool Research Association, Pune. Linkages would also be established with the private sector for marketing and export of khadi products.

Product and project profiles in simple language will be arranged through professional agencies and distributed at the District / Block levels. Appropriate entrepreneurship development programmes for entrepreneurs engaged in village industries will be designed and organised at the block level.

22.7 The Khadi Sector is facing the crisis of declining number of quality weavers. A promotional package will be devised by the Board for ensuring medical benefits and development of community assets for this set of weavers. The spinners and weaves will be encouraged to adopt the Self Group Scheme of NABARD.

22.8 Exchange visits of artisans, institutions and Board employees will be sponsored by; the Rajasthan Khadi and Village Industries Board to other States to learn from their experience. Experts from successful institutions will be asked to visit the State to share their experience.

23. DEVELOPMENT OF RURAL FARM SECTOR

Rajasthan is the first State in the country to have announced the Rural Non-farm Development Policy for promoting the non-farm sector as an alternate

strategy for generating additional avenues of employment particularly in

rural areas. Looking to the maximum potential, three sub-sectors – leather, wool and minor-mineral have been taken up for focused development.

Keeping in view the large natural resource base of hides and skins produced in the State, RUDA has taken up integrated package by providing all backward and forward linkages in selected areas like Mangrol(Baran), Manpur-Machedi(Jaipur), Beawar(Ajmer) and Nagaur; as as to develop them as areas of excellence. An integral part of the strategy is to organise the artisans into producer groups and providing them incentives as well as creating proper infrastructure facilities by setting up several Common Facilities Centre for development of leather shoes, goods and garments.

23.3 Wool Sub-sector

Rajasthan produces around 40% of the country’s raw wool and this sector supports nearly 30 lakh persons. It is aimed that greater value addition may be given to raw wool through promoting scientific methods of shearing, sorting, grading and other services. Sheep rearers are being organised into producers associations. Product diversification of woollen products is being done in association NIFT. To augment the skill base of carpet industry, RUDA is supporting it by providing training of artisans. The traditional Namda industry in Tonk districts being given a special thought in product development and design upgradation. In view of the critical importance of the wool sub-sector, RUDA would continue to devise need based interventions in areas like training, design, technology upgradation, market support, seminars etc.

23.3 Minor Mineral Sub-sector

The strategy for the development of this sector aims at improving the skills of the workers engaged in the mineral processing industry. Also additional employment is being generated through programmes which impart skills in diamond cutting and polishing; gang saw training; promotion of stone stching through design and market led inputs. A major intervention has been started for design upgradation for potters in Dausa and Sawai Madhopur.

24. MARKETING SUPPORT

So far, marketing support to tiny and SSI sector has been extended through preferential procurement by Government agencies and direct trading by Public Sector Corporations like RSIC. Central Stores Purchase and Price

Preference Rules will continue to be implemented to provide such support by way of purchasing at least 70% of the requirement of the State Government Departments/State PSUs and Autonomous Bodies from the local SSI units at the competitive rates subject to their production capacity and quality. The local valid tendering units entering into parallel rate contract would be allowed the lowest of the tenders from outside the State including CST/concessional CST. The earnest money required to be deposited by SSI units while tendering, has been reduced from 1% to 0.5% of the value of the quantity offered by them.

RSIC will be designated as an agency for procuring larger number of items for other Government Departments. This will give a further boost to local SSI units.

Efforts will be made to develop and maintain databases of manufacturers as well as buyers, preferably through Industry Associations or in the private sector.

The State Government will promote and organise Trade Fairs in collaboration with private organisations.

In order to evolve effective marketing strategies for SSI/Tiny sector, identification and promotion of 10 products which have a major competitive advantage in India and abroad will be undertaken on a pilot basis. This will be followed by identifying two or three major clusters for each of the 10 products which can be influenced to form an association or a co-operative for marketing. These associations or co-operatives would be supported in their marketing efforts. This support would be extended to other products and clusters in a phased manner.

25. DEVELOPMENT OF SALT AREAS

Rajasthan is the third biggest salt producing State in India. Over 1200 units are producing salt in various saline areas of the State and providing employment to approximately 70,000 workers in rural areas. Recently the Rajasthan Land Revenue (Saline Areas Allotment) Rules, 1970 have been comprehensively amended whereby powers of allotment, renewal, transfer and lease execution have been delegated at district level. In order to develop Salt Industry in the State, following further measures are proposed to be taken.:-

The State Government will support establishment of Model Salt Farm-cum-Research Centre with the assistance of Central Salt & Marine Research Institute for scientific development of salt sources and recovery of valuable bye products.

Infrastructure facilities like Roads, Drinking Water, Electricity, Telecommunication, Labour welfare works etc. will be made available in saline areas in a phased manner.

The vacant saline lands measuring about 18,000 acres will be brought under cultivation in a phased manner.

Major industrial units based on local salt will be encouraged to promote value addition.